business plan on healthcare Cooperatives

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FEASIBILITY PLAN

Table of Contents

1.Executive Summary
A. Statement of Purpose.
Second Life Gifts will provide affordable ecofriendly products comprised of recycled materials that will be handmade by disadvantaged artisans in third world and developing countries. Second Life Gifts will strive to provide its global customer base with an option in gift giving that helps at risk individuals while being environmentally friendly.

B. Description of Business
Second Life Gifts will be structured as a for profit, limited liability company (LLC) and will be considered a small business under the North American Industry Classification System (NAICS) code 45322 (gifts, novelties, and souvenirs). The U.S. based company will be owned and operated by Allison MacDonald - CEO and Founder, in addition to 4 other partners. Second Life Gifts will employ a limited number of full and part time equivalents, based on anticipated product demand. The management team will be comprised of the 4 other partners and will be responsible for the majority of the day-to-day operations of the company. In an effort to keep startup costs low, the owners will conduct operations on a part-time basis, until the business is in a position to provide income. Even though the products will be made overseas, it is important to note that the company is a U.S. based company and will employ Americans in management, administration, and in distribution, appealing to a small number of the Buy American consumers. The products will initially be sold online and at farmers markets and will be operated out of a secure home office, in Washington, D.C. As operations expand, Second Life Gifts will procure a secure storage facility to store additional inventory during the third year of operations.

Second Life Gifts is an attractive company given its expected year-end financial statement that shows zero liabilities ($0 accounts payable, $0 short-term debt, and $0 long-term debt) during its startup; based on the expected paid in capital. The business model also makes use of the owners’ home office, realizing savings in utility costs and making use of the security-monitoring device already installed. The company will be in a good position to leverage additional sources of funding to expand its operations due to its low startup costs, anticipated good credit rating, and projected sales volume in the first year of operations. Additionally, as operations continue and economies of scale is realized, the net profit margin is expected to increase as the cost associated with making the goods decrease and sales prices strategically increase. The forecasted sales for fiscal year (FY) 2014 are $33,150, $72,000 in FY215, and $133,000 in FY2016. This shows a 46% and 54% increase in revenue in years FY15 and FY16, respectively. As such, Second Life Gifts anticipates that it will reach its breakeven point within a few months. The research conducted in this plan, shows that the Second Life Gifts business is not only feasible but it is likely to be a very profitable company over time.

Green products are going mainstream and Second Life Gifts will be in a good position to continue to increase its profitability over time. in 2006, one in five Americans claimed to never buy green products; and in 2008 only 10% of those surveyed made such claims. (Consumers Plan…, 2008) As part of its long-term growth strategy, Second Life Gifts will plan to procure a brick and mortar storefront to appeal to a greater number of consumers to include the growing green baby boomer population. According the Better Business Bureau, “[s]ocially conscious shopping goals drive 54 percent of older Americans according to a recent survey by AARP. This means more than 40 million baby boomers are also "green boomers" who say they are more likely to purchase environmentally friendly products and use services from companies that are socially responsible.

C. Product...