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Plan Outline
Direct Mail Business Plan
Arrow Mail
Company Summary
Arrow Mail is a creative and high-quality personalized direct mail business for the financial services companies that focus on small businesses. The company office and production facility is a 5,000 sq. ft. building in Monroe, Oregon (22 miles northeast of Portland).
Over the past twenty years, the competition in the financial services industries has intensified. The range of financial services available and the number of companies that are offering these services is extraordinary.
Arrow Mail's expertise selling to small businesses has facilitated the development of a number of successful strategies in reaching the target market groups. By focusing even further on the growing opportunities in equipment loans and motor vehicle lease programs, Arrow Mail has created an attractive niche for its services.
2.1 Company Ownership
Arrow Mail is owned by Todd Graham and a silent partner. The business will operate as a Limited Partnership.
2.2 Start-up Summary
The start-up expense for Arrow Mail is focused primarily on production and assembly setup. Todd will invest £80,000. A silent partner will invest £125,000. In addition, Todd will secure a £125,000 long-term loan.
The start-up costs will cover the production and assembly equipment and the capital to cover losses the first year. This will include computers, laser printers, scanners, and equipment to prep material for mailing.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | £1,000 |
| Stationery etc. | £400 |
| Brochures | £8,000 |
| Insurance | £1,000 |
| Rent | £3,000 |
| Setup | £20,000 |
| Expensed Equipment | £140,000 |
| Total Start-up Expenses | £173,400 |
| Start-up Assets | |
| Cash Required | £152,600 |
| Start-up Inventory | £4,000 |
| Other Current Assets | £0 |
| Long-term Assets | £0 |
| Total Assets | £156,600 |
| Total Requirements | £330,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | £173,400 |
| Start-up Assets to Fund | £156,600 |
| Total Funding Required | £330,000 |
| Assets | |
| Non-cash Assets from Start-up | £4,000 |
| Cash Requirements from Start-up | £152,600 |
| Additional Cash Raised | £0 |
| Cash Balance on Starting Date | £152,600 |
| Total Assets | £156,600 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | £0 |
| Long-term Liabilities | £125,000 |
| Accounts Payable (Outstanding Bills) | £0 |
| Other Current Liabilities (interest-free) | £0 |
| Total Liabilities | £125,000 |
| Capital | |
| Planned Investment | |
| Todd Graham | £80,000 |
| Silent Partner | £125,000 |
| Additional Investment Requirement | £0 |
| Total Planned Investment | £205,000 |
| Loss at Start-up (Start-up Expenses) | (£173,400) |
| Total Capital | £31,600 |
| Total Capital and Liabilities | £156,600 |
| Total Funding | £330,000 |
2.3 Company Locations and Facilities
The company office and production facility is a 3,000 sq. ft. building in Monroe, Oregon (22 miles northeast of Portland).
This site was chosen for the following reasons:
- Low production overhead.
- Facility is located two miles from the FedEx and US Mail regional processing centers.