Hero’s Thrift Store

This place is very unorganized. How can anybody shop here.

• Thrift stores are flooded with messy unorganized stores.

• These stores offer a poor experience and quality

• Hard to tell the good from the from the bad

We Keep It Clean and Simple

• Our Solution: Excellent service and superior organization

• Our Mission: understand what our customers' needs and hopes are after buying from the Hero's Thrift Store.

• Vision: Organization to thrift stores• Values: Big harts, superior service• Strategy: Organize one item at a time

The Industry

• A shop that sells used articles, especially clothing, as to benefit a charitable organization.

• The number of private sector thrifts supervised by OTS stood at 765 with assets of $941.7 billion at the end of 2009.

• Thrift earnings showed signs of stabilizing in 2009 as the

• industry posted a profit of $505 million in the fourth quarter and essentially broke even for the year.

• Office of Thrift Supervision / 2009 Fact Book

The Market

• Today’s economy is helping the resale industry continue to grow at record rates. In fact, there are more than 25,000 consignment, resale and thrift stores in the United States.

• Society’s increasing awareness of the importance of reducing waste and recycling will influence the entire resale industry in a positive way.

• According to America’s Research Group, approximately 16 - 18% of Americans will shop at a thrift store during a given year.

The Competition

• The Goodwill- Strong customer base with strong reputable name.

• The Salvation Army- recognizable name with a great cause.

• Thrift Mart- Huge store with a verity of products.

Business Model

• Provide an organized alternative to other thrift store shoppers.

• Hero's Thrift Store will maintain our service and balance while delivering a quality product to our customers.

• We encourage our customers to help our cause and support injured firefighters and police officers.

• Provide a excellent product at a low fixed price that will beat the competition.

Start Up Cost

• All cost will vary with sponsorships and donations, but a rough estimate:

• Startup Expenses: $10,000• Startup Assets: $5,500 with many donations• Cash for Recurring Costs:$3,600• Total Startup Costs:$19,100

Income Statement years 1 to 3Year 1 Year 2 Year 3

Sales $245,000 $269,500 $296,450 Cost of Sales $85,000 $83,000 $85,000

Gross Profit $160,000 $186,500 $211,450Wages Exp. $85,000 $83,000 $80,000

Depreciation $7,000 $6,500 $6,000

Other $3,000 $3,000 $3,000Total Exp. $95,000 $92,500 $89,000

Net Income Before Taxes

$160,000 $186,500 $211,450

Interest Exp. $9,000 $7,800 $6,900Taxes $16,000 $19,300 $22,400Net Income After Taxes

$47,000 $52,800 $55,300

Sales forecast

• Sales are expected to increase by 10 to 15% by year two

• Net profit of $47,000 in the first year of opening.

• Start up cost of about $20,000 will be paid in about 5 years with an interest rate of 6.5%

Cash Flow SummaryNet Income- $47,000 Opening Year 1 Year 2 Year 3

Rent $0.00 $10,000 $10,000 10,000

Utilities $0.00 $6,000 $6,000 $6,000

Telephone $0.00 $360.00 $360.00 $360.00

Advertising $500.00 $2,500 $2,500 $2,500

Total operating expense $500.00 $18,860 $18,860 $18,860

Inventory $300.00 $550.00 $750.00 $950.00

Cash on hand $28,690 $28,890 $29,090

Summary of Balance SheetYear 1 Year 2 Year 3

Assets

Cash on hand $28,690 $28,890 $29,090

Inventory $550.00 $750.00 $950.00

Total current assets $29,240 $29,640 $30,040

Total current liability $18,860 $18,860 $18,860

Total Equity $10,380 $10,580 $11,180