Assuming Jeff buys the business in 1998, write a Business Plan for him which will guide him to take the business forward in the next 3 years. Use the Business Plan Content Details as a guide to write your Business Plan which should:

Be professionally written and formatted.

All the heads/titles listed in the content details (eg Executive Summary, Marketing Plan etc) may be included.

Include the following in you Plan and ensure the Plan answers the following questions:

Would you rationalize Smittys product range? Why or why not?

Make a detailed table for sales as projected for the next 3 years.

Marketing Plan

Describe current operations of Smittys. Do you agree on improvements?

What will constitute the Management Team? Any other persons to be hired?

Include legal considerations in the Plan (among owners, what happens to Once a Tree, shifting of operations outside of Shedden and so on).

Projected or Pro Forma Income Statement for the next 3 years.

Is $100,000 a fair price? Why or why not?

Once a Tree is part of the deal. What can Jeff do about it in the future?

Jeff has calculated that it will take $30,000 to improve quality, design and operations. Should he spend this additional money? When?

Should Jeff finance his buy-out through a loan or equity?

Calculate:

o Return on investment

o Return on equity

o Payback period (no. of years it will take for Jeff to get his investment back).

o Internal Rate of Return (additional marks).