Business Grant Plan Sample
This small business grant application sample was originally located at www.businesstown.com.
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Business Plan Summary : Rainbow Kites, Inc.
Business Concept
The Kite industry has rapidly expanded in the past several years and growth is expected to continue at a strong pace for the foreseeable future.
This will offer excellent opportunities for new companies to enter this market.
We intend to address the needs of customers in this market who seek higher quality, higher priced kites.
We will address this need by importing, selling and distributing higher end kites in the US and Canada.
Distinguishing characteristics of our business will be top quality products, special emphasis on higher end independent retailers and high levels of service.
Current Situation
We are a start-up, that was incorporated in 1998 in the State of California.
The main owner is Tom Peterson whose title is President and who has many years of experience in the toy industry.
Other key personnel include Nancy Peterson, his spouse who has experience in customer service, bookkeeping and office work.
At this time we are seeking some further equity capital in order to compliment our own equity investment and seeking to arrange a bank line for inventory and receivables financing.
We have firm commitments to distribute several highly sought after overseas kite manufacturers and have verbal commitments from independent retailers primarily along the West Coast in order to stock on our products.
We hope to ship our first products within six months of finalizing financing arrangements.
Key Success Factors
The success of our business will be a large result of superior products, superior service, extra attention to detail throughout our operation, personnel and our high level of experience in the industry.
In particular what really sets us apart from the competition is that we are planning to only sell high end kites and we will only sell to higher end outlets.
This will allow us to give absolutely top service and product selection for these accounts without getting distracted from the very different product and service demands of the more mass market outlets.
Financial Situations / Needs
In order to launch the business effectively, we project a total need for $300,000 in equity financing.
Principal uses for the funds will be to finance operations until cash flow becomes positive and to create a stronger balance sheet in order to help secure additional bank lending to finance inventory and receivables.
To this date, we have raised $132,000 from founders, Tom and Nancy Peterson and their relatives.
We project that the company will be profitable within two years.
We project that within three years of reaching break-even that this new investment could be cashed out by either the founding partners buying this investment stake or by replacing the investment stake with further bank financing.
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