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Aircraft Equipment Maker Business Plan

Stretch 'r Wings

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Company Summary

Stretch 'r Wings is a start-up company which provides quality-designed and manufactured medical units for aircraft and helicopters. The business will be located in the Metro, IL area. This area has many advantages for shipping and receiving, including: manpower, access to State University's engineering program, and an abundance of manufacturing space for lease.

2.1 Company Ownership

Stretch 'r Wings will be incorporated. The company will be privately owned by **, who has worked for thirty-four years in the aircraft field. For fourteen years, the owner has designed and manufactured aircraft medical units under the FAA, STC, and PMA.

**Names have been removed for confidentiality.

2.2 Start-up Summary

Stretch 'r Wings' start-up costs will be £82,000. This includes £12,000 for start-up expenses, £60,000 for cash reserve, and £10,000 in shop equipment assets (furnished by the owner). High cash reserves are required to offset the operating expenses before the company reaches its sales targets. The start-up expenses will be covered by the owner, a second investor, and a £20,000, five-year loan from the bank.

Start-up Funding
Start-up Expenses to Fund £12,000
Start-up Assets to Fund £70,000
Total Funding Required £82,000
Assets
Non-cash Assets from Start-up £10,000
Cash Requirements from Start-up £60,000
Additional Cash Raised £0
Cash Balance on Starting Date £60,000
Total Assets £70,000
Liabilities and Capital
Liabilities
Current Borrowing £0
Long-term Liabilities £20,000
Accounts Payable (Outstanding Bills) £0
Other Current Liabilities (interest-free) £0
Total Liabilities £20,000
Capital
Planned Investment
Owner £35,000
Investor 1 £27,000
Other £0
Additional Investment Requirement £0
Total Planned Investment £62,000
Loss at Start-up (Start-up Expenses) (£12,000)
Total Capital £50,000
Total Capital and Liabilities £70,000
Total Funding £82,000
Start-up
Requirements
Start-up Expenses
Legal £1,000
Stationery etc. £800
Accounting £600
Jig and Fabricating Equipment £1,000
Aug. Rent and Security Deposit £1,050
Research and Development Prototype £3,000
Aluminum Inventory £1,000
Software £500
Engineering Fee - April, May, June, July £2,500
Other £550
Total Start-up Expenses £12,000
Start-up Assets
Cash Required £60,000
Start-up Inventory £0
Other Current Assets £10,000
Long-term Assets £0
Total Assets £70,000
Total Requirements £82,000
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Start-up Funding
Start-up Expenses to Fund £12,000
Start-up Assets to Fund £70,000
Total Funding Required £82,000
Assets
Non-cash Assets from Start-up £10,000
Cash Requirements from Start-up £60,000
Additional Cash Raised £0
Cash Balance on Starting Date £60,000
Total Assets £70,000
Liabilities and Capital
Liabilities
Current Borrowing £0
Long-term Liabilities £20,000
Accounts Payable (Outstanding Bills) £0
Other Current Liabilities (interest-free) £0
Total Liabilities £20,000
Capital
Planned Investment
Owner £35,000
Investor 1 £27,000
Other £0
Additional Investment Requirement £0
Total Planned Investment £62,000
Loss at Start-up (Start-up Expenses) (£12,000)
Total Capital £50,000
Total Capital and Liabilities £70,000
Total Funding £82,000
Start-up
Requirements
Start-up Expenses
Legal £1,000
Stationery etc. £800
Accounting £600
Jig and Fabricating Equipment £1,000
Aug. Rent and Security Deposit £1,050
Research and Development Prototype £3,000
Aluminum Inventory £1,000
Software £500
Engineering Fee - April, May, June, July £2,500
Other £550
Total Start-up Expenses £12,000
Start-up Assets
Cash Required £60,000
Start-up Inventory £0
Other Current Assets £10,000
Long-term Assets £0
Total Assets £70,000
Total Requirements £82,000