Free Tuxedo Rental Service Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $75,000 for the development of a tuxedo rental business while showcasing the expected financials and operations over the next three years. Tuxedo Rental Service, Inc. (“the Company”) is a New York based corporation that will provide rental of tuxedos (and occasional sales of tuxedos) to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
Tuxedo Rental Service, Inc. will generate extremely high gross margins from the ongoing rental of tuxedos to the general public. The business, as a secondary revenue center, will also generate substantial gross incomes from the sale of tuxedos. The business will develop ongoing relationships with local event planners, schools (for prom tuxedo rentals), and wedding planners so that Tuxedo Rental Service, Inc. can receive a constant stream of referrals. The third section of the business plan will further describe the services offered by the Tuxedo Rental Service, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $75,000 via a bank loan for the development of the business. The terms, interest rate, and loan covenants are to be determined at the time of negotiation. However, this business plan assumes that the Company will receive a 10 year loan with a 9% interest rate due on the outstanding principal balance.
1.3 Mission Statement
Tuxedo Rental Service, Inc.’s mission is to develop an expansive facility that will provide an expansive array of tuxedos for all types of special events.
1.4 Mangement Team
Mr. Doe is an experienced business person that will be able to effectively manage the day to day operations of Tuxedo Rental Service, Inc. His biography can be found in the sixth section of the business plan.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and local event planners within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Tuxedo Rental Service, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Tuxedo Service Rental, Inc. requires $75,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Tuxedo Rental Service, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Tuxedo Rental Service, Inc. Based on historical numbers, the business could fetch a sales premium of up to 3 times earnings.
3.0 Products and Services
As stated in the executive summary, the Company’s primary revenue stream will come from the continued rental of tuxedos to the general public for special events such as proms, weddings, Bar/Bat mitzvahs, and other events that require black tie attire. The Company will charge approximately $100 for a nightly rental of a tuxedo, which will provide Tuxedo Rental Service will a substantial return on clothing purchase investments. The Company’s secondary revenue center will come from the occasional sale of tuxedos to people that wish to purchase a black tie suit rather than needing to continuously rent one. Additionally, in the event where a customer loses their rented tuxedo, they will be required to pay for its replacement. This segment of the Company’s operations will account for approximately 25% of the Company’s revenues.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the tuxedo rental industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
4.2 Industry Analysis
Within the United States, there are approximately 2,700 companies that specialize in the rental of tuxedos to the general public. Many of these businesses operate more than one retail location. In each of the last five years, these businesses have aggregate generated more than $920 million of revenue while providing jobs to more than 20,000 people. Annual payrolls in each of the last five years have exceeded $250 million. The growth rate of these businesses has been in step with that of the general growth of the economy.
4.3 Customer Profile
Tuxedo Rental Service’s average client will be a middle to upper middle class man living in the Company’s target market. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Tuxedo Rental Service, Inc.. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish relationships with schools, event planners, and wedding planners.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Tuxedo Rental Service to easily target the general public, wedding planners, and event planners within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Company will also use an internet based strategy. This is very important as many people seeking local services, such as tuxedo rental services, now use the Internet to conduct their preliminary searches. Mr. Doe will register Tuxedo Rental Service, Inc. with online portals so that potential customers can easily reach the business. The Company will also develop its own online website. Tuxedo Rental Service, Inc. will also develop ongoing referral relationships with wedding planners, event planners, and schools that will send their clients to the Company’s retail location for black tie attire for planned events.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Tuxedo Rental Service, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $75,000 of debt to develop the business.
• Management will settle most short term payables on a monthly basis.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, rental of tuxedos are always in demand among individuals. As such, only a continued severe economic downturn would result in a decline in revenues.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis