Preliminary Information

Real Business Opportunity - Small Business Venture

Our client wants to start a small business within the state of Ohio. The individual wants to start a woodworking/metal manufacturing business. The product byline is "anything wood or metal", i.e. cabinets, kitchen tables, other major furniture products, craft type, (cutting boards, signs, etc.).

The owner has invested $70,000 in capital equipment to purchase (5) major pieces of equipment, (4) of which are CNC, (Computer Numerical Control) pieces. These pieces include an Axiom 2' x 3' CNC Router, Rabbit CNC Laser, CNC Automate FTL lathe, and a CNC Automate Mill. The fifth machine is a Saw Stop table saw.

Other miscellaneous equipment includes Festool hand power tools, in the amount of $15,000.

The owner does intend to make money through the sale of products but, equally important is the ability to take advantage of tax breaks for the business and write off the capital equipment.

The owner has constructed building, approximately 32' x 48' with two large overhead doors for equipment and material. The cost of the building was $70K.

Since this is a potential entrepreneurial situation, which has invested his own money, total of ($155K) financial borrowing is not required.

Assignment

A simple Financial Plan should be included. Assume an appropriate Depreciation Schedule, a Break Even Analysis, and ROI, income statement and balance sheet.

Current Product pricing:

Kitchen Tables $500 - $1500

Signs$50 - $500

Cabinets$150 - $650

Cutting Boards, Vases, etc.$35 - $150

i am just seeking the help for the financial planning. Depreciation Schedule, a Break Even Analysis, and ROI, income statement and balance sheet.