Questions On Financial Plan For Tempshadow Ink - 1629 Words

Financial Plan Overview TempShadow Ink’s financial plan is based on conservative estimates and assumptions. TempShadow Ink plans to start operations January 1, 2015; the financial statements will be for a 5-year period covering 2015-2019. Start-up Funding The start-up funding for TempShadow Ink will consist of the Research Development (RD) that will be needed to develop the temporary tattoo ink. The company plans to hire the RD Company Cargill. The contract states that an ink will need to be developed within 6 months of the starting date, January 2015. Once the tattoo ink is developed, TempShadow Ink will begin a two-year testing phase with volunteer test subjects. This will happen from mid-2015 through mid-2017. The start-up funding will last about two and a half years. At that time, the goal is to have the ink distributed to tattoo parlors around the United States. The company estimates it will need approximately $600,000 to make this happen. Use of Funds Each owner of TempShadow Ink plans on contributing $50,000, which will total $200,000. Danny Smith and Mark Sanchez are going to get a SBA Loan (Veteran’s Advantage) of $100,000 and then the company is asking for investor funds of $300,000. The total budget for TempShadow Ink will be $600,000. The first two years 2015-2016 will be unprofitable for TempShadow Ink, once the testing phase is successfully completed and ink is being distributed, TempShadow Ink plans to begin making a profit. Income