1. On the Spot
Cleaners
Gabe Sandreth
BA 499 Business Planning
Donna Lane, Ph. D
Winter 2015

2. Company Description
Eco-friendly dry cleaner
Limited Liability Company
Located in San Jose, California
Operations begin January of 2016

3. Income Statement
Year 1 Year 2 Year 3
Sales $216,228 $220,556 $224,961
Less Cost of Sales $9,864 $10,061 $10,261
Gross Profit $206,364 $210,495 $214,700
TotalOperating Expense $170,295 $216,462 $217,756
Earnings Before Interest & Taxes $36,069 ($5,967) ($3,056)
Interest Expense $0 $0 $0
Earnings Before Taxes
Income Tax $8,017 $0 $0
Net Income $28,052 ($5,967) ($3,056)

4. Balance Sheet
Year 1 Year 2 Year 3
Current Assests $43,241 $11,026 $7,722
Property & Equipment $52,024 $62,024 $62,024
Less Accumulated Depreciation ($12,213) ($25,965) ($40,717)
Total Fixed Assests $39,811 $36,059 $21,307
Total Assests $83,052 $47,085 $29,029
Total Liabilities $0 $0 $0
Stock Paid-in-Capital $55,000 $55,000 $55,000
Retained Earnings $0 ($1,948) ($22,915)
Current Year Earnings $28,052 ($5,967) ($3,056)
Total Equity $83,052 $47,085 $29,029
Total Owner's Equity and Liabilities $83,052 $47,085 $29,029

5. Cash Flow
Year 1 Year 2 Year 3
Net Income $28,052 ($5,967) ($3,056)
Depreciation $12,213 $13,752 $14,752
Inventories ($50) $0 $0
Accounts Payable $0 $0 $0
Net Cash Provided By Operating Activities $40,215 $7,785 $11,696
Building/Leasehold Improvements $5,560 $0 $0
Machinery & Equipment $24,687 $10,000 $0
Net Cash Used in Investing Activities $52,024 $10,000 $0
Sale Of Stock $55,000 $0 $0
Payment of Dividends $0 $30,000 $15,000
Net Cash Provided/Used in Financing Activities $55,000 ($30,000) ($15,000)
Net Increase/Decrease In Cash $43,191 ($32,215) ($3,304)
Plus Beginning Cash $0 $43,191 $10,976
Ending Cash $43,191 $10,976 $7,672

6. Industry
NAICS 81232 Dry Cleaning and Laundry
2014-2019 Annual Revenue Rate -0.6%
Annual Revenue totals $8.5bn
Vulnerability to Economic Factors
Barriers to Entry
Sources: (IBISWorld Industry Report: Dry Cleaners in the US)

7. Target Market
Five Mile Radius
Average household income >
$100,000
Average household income:
$104,448
Age range: 25 – 65
265,105 households
Work + strong interest in self
appearance
Socially responsible
+
Environmentally conscious
Sources: (IBISWorld Industry Report: Dry
Cleaners in the US 2014)
(Esri San Jose Income Profile from
2009-2013)

8. Target Market Potential
Sources: (Esri San Jose Income Profile from
2009-2013)

9. Sales Forecast
Sources: (Esri San Jose Income Profile from 2009-2013)
`(Lanfri, K. (2015, January).

10. Competition Matrix

11. Management

12. Operations
11 Race St, San Jose , CA 95126
Hours
Improvements
Quality Control
Customer Service
Order Fulfillment

13. Goals
Increase Sales by 15% over the first five years
Turn a 10% profit by the end of year two
To create a popular and highly respected brand that
provides a convenient and quality service

14. Questions