BUSINESS PLAN
For start-up of the
Small Computer Retail Store


Name of principles:
Lawrence Hitch, CEO
Brandon Koepek, Chief Accountant

Company ?Coop-Store, Ltd?
3141 Euclid Avenue
Boulder, Colorado 80309
Tel: 303-492-1411















2006


TABLE OF CONTENTS
Statement of Purpose 3
Objectives 3
Mission 3
Key Success Factors 3
The Business 4
Description of the Business 4
The Market 5
Competition and Feasibility Study 5
Location of Business 6
Management 6
Personnel 6
Application and Expected Effect of Loan or Investment 7
Summary 7
Financial Data 8
Sources and Application of Funding 8
Capital Equipment and Furniture Lists 8
Balance Sheet 9
Break-Even Analysis 10
Income Statement 11
Cash Flow Statement 12
Cash Flow Statement (Long-Term) 13
Resources 13







STATEMENT OF PURPOSE
Coop-Store, Ltd operates retail apparel stores known as ?Coop-Store?. Each retail location runs the business on campuses of Colorado University in Denver and Colorado. These two primary revenue sources are both high in revenues and sufficient in inventory supplies. Many branded apparel items are marketed under the ?Coop-Store?, ?CU?, ?American Outfitter? brand names.
Each Coop-Store shop is 2,000 square feet and it utilizes a contemporary Enterprise Resources Planning System (ERP). Popular American brands are present in the stores. Private label and brand name are also included in the product mix.
Coop-Store plans to diversify its local business by launching a new line of activities ? selling computers, accessories and software. The new business will operate independently from existing apparel business and thus will require an outside financing. To start-up the computer retail business the company wants to take a loan of 72 000 USD. The cost of capital will amount to 8% annually, paid monthly as a compound interest on the non-repaid amount, and it is expected to be repaid within 12 months.

Objectives
Open a computer retailing business on Colorado University campus in Boulder, CO.
Get a bank loan at the amount 72 000 USD to finance the start-up and to repay it within one year.
Mission
Be a local leader in providing computer retail service to students.
Key Success Factors
Coop-Store has a similar experience in providing apparel retail service to the local community.
THE BUSINESS
Description of the Business
Coop-Store, Ltd is positioned to fill the growing need for both computer hardware and software of Colorado University students. It will offer a variety of demanded IT products.
Coop-Store, Ltd was found by Lawrence Hitch in 1998. It is now a publicly owned corporation. Another stockholder is Brandon Koepek.
The previous operating history of Coop-Store, Ltd includes the retail sales of the apparel on Colorado University campuses in both Denver and Boulder. The revenues to date are approximately 210 000 USD yearly from operations of existing stores.
For the purposes of the expansion the new computer retail store will be treated as a start-up as of January 2007 with total split of assets and operations from apparel business.
Coop-Store will develop a new computer retail business utilizing the same tools for conducting business as they did while retailing apparel.
The location for the business will be chosen according to the availability of retail space with extra opportunities for short-term keeping the inventories at the store warehouse to assure the monthly sales stock of computers and software.
The new computer retail store location chosen at the launch of this expansion and diversification plan will be in one of the several spots already investigated. Retail and storage space is agreed to lease at approximately 5 USD per square foot on totally 900 square feet in most desirable Boulder location. The substantial precondition to use that space is to pay the annual rent amount of 54 000 USD in advance.
Both warehouse and pay desks will be equipped with inventory control equipment. Corresponding Enterprise Resources Planning licensed software and equipment will be purchased and installed to assure the quality of customer satisfaction and internal corporate control. To control the temperature in the store the air conditioning systems will be set up and to help the visitors to keep their luggage safe the store entrance place will be equipped with Coat Check and Lockers. For ERP system, air conditioning system, selves and lockers one-time investment of 17 150 USD will be required as a part of the start-up expenses.

The Market
In order to effectively analyze the local computer retail market, it is necessary to look at both the consumer?s need and the retail environment in the IT industry. Much information and data is available.
Overall students? spending on computers and software exceeds 18 million USD yearly (primarily desktops and licensed software).

Competition and Feasibility Study
At the present moment 53 computer stores are dealing in Boulder. All of them are dealing in the competitive environment. Office Depot is apparently the largest company in the vicinity. A few others have also enjoyed