FeelFit Inc. is a startup company that sells healthy food and beverages through convenience stores, restaurants located in gyms. The document provides details on FeelFit's plans to raise startup capital through bank loans and angel investors. It also includes FeelFit's initial balance sheet, projected year 1 balance sheet, monthly income statement and sales projections, and cash flow projection for the first 5 months. FeelFit projects raising $800,000 in startup capital and estimates sales of over $2.6 million in the first year of operation.
1. Entrepreneur Business Plan
Paper 3
Entrepreneurship
ENTR 3310
Team Number 10
Team 10
Jacob Atwood
Nicolas Montoya
Ashley Moreno
Joshua Shea
Stephaine Williams
Dr. John Karonika
University of Houston
Summer 2013
2. I. Source(s) of Start-Up Capital
One of the foremost questions on an entrepreneur’s mind is; how am I going to raise capital to
get this venture off the ground? It is an important question, but just because it is important does not
necessarily mean it is complicated or complex. Team 10 agrees that the key way we will raise capital for
this venture is through a bank or small business loan.
Every company starting off faces many challenges. As discussed above a major challenge is
start-up capital, but as important as capital is FeelFit needs to establish themselves through reliability
and trustworthiness as a business to the general public.
• A way that we can raise capital for FeelFit is through selling of stock. Selling stock will
bring in capital and has the potential for developing FeelFit by getting investors interested
in the venture. It is important that others feel comfortable investing their assets in FeelFit
this will give FeelFit more recognition to other potential investors, possibly worldwide
investors. We recognize that this form of raising capital will not come right off the bat but
we feel that as FeelFit grows and develops that selling of stock would come into play. And
because we are selling stock this means that FeelFit would be a corporation. This means
that FeelFit has made an initial public offering (IPO). An IPO is a great way to raise capital
but as stated earlier this would not come until FeelFit has developed into a successful
business.
• A way to raise capital that would be available to FeelFit almost immediately would be
through angel investors. An angel investor is ordinarily a well-to-do business man or
women who set aside a portion of their net worth to invest in small early-staged
businesses. To get angel investors aboard with FeelFit we would provide them with a
complete business plan accompanied with an investor’s executive summary.
3. II. Initial Balance Sheet
FeelFit Inc.
Initial Balance Sheet
ASSETS LIABILITIES
CURRENT ASSETS CURRENT LIABILITIES
Cash 800,000.00 Accounts Payable -
Net Accounts Receivable - Notes Payable -
Inventory 250,000.00 Accrued Payroll -
Other Current Assets - Current Long-Term Debt 185,000.00
Total Current Assets 1,050,000.00 Total Current Liabilities 185,000.00
FIXED ASSETS LONG-TERM LIABILITIES
Plant Property and Equipment 150,000.00 Loan Payable 790,000.00
Total Fixed Assets 150,000.00 Other Liabilities 125,000.00
Total Long-Term Liabilities 915,000.00
OTHER ASSETS
Other Assets 100,000.00 TOTAL LIABILITIES 1,100,000.00
Long-Term Investments -
Total Other Assets 100,000.00 EQUITY
Common Stock -
TOTAL ASSETS 1,300,000.00 Treasury Stock -
Current Earnings -
Retained Earnings -
Additional Paid in Capital -
Other Equity 200,000.00
TOTAL EQUITY 200,000.00
TOTAL LIABILITIES AND
EQUITY 1,300,000.00
4. III. Balance Sheet (End of Year 1)
FeelFit Inc.
Balance Sheet
As of year ended 12/31/2013
ASSETS LIABILITIES
CURRENT ASSETS CURRENT LIABILITIES
Cash 720,000.00 Accounts Payable 102,350.00
Net Accounts Receivable 196,875.00 Notes Payable -
Inventory 203,000.00 Accrued Payroll 324,876.00
Other Current Assets - Current Long-Term Debt 200,000.00
Total Current Assets 1,119,875.00 Total Current Liabilities 627,226.00
FIXED ASSETS LONG-TERM LIABILITIES
Plant Property and Equipment 612,000.00 Loan Payable 890,000.00
Depreciation on PP&E (26,090.00) Other Liabilities 49,792.00
Total Fixed Assets 585,910.00 Deferred Long-Term Liability Charges 96,725.00
Total Long-Term Liabilities 1,036,517.00
OTHER ASSETS
Other Assets 114,570.00 TOTAL LIABILITIES 1,663,743.00
Long-Term Investments 74,500.00
Total Other Assets 189,070.00 EQUITY
Common Stock -
TOTAL ASSETS 1,894,855.00 Treasury Stock -
Current Earnings -
Retained Earnings 31,112.00
Additional Paid in Capital -
Other Equity 200,000.00
TOTAL EQUITY 231,112.00
TOTAL LIABILITIES AND EQUITY 1,894,855.00
