Type of Business:

My business is based on the manufacturing and sale of Adirondack furniture. Initially, I will only by making and selling chairs, however, if the demand is sufficient, I will begin to produce other adirondack furniture.

Major Goods:

The major product for the first half of the initial fiscal year will be the adirondack chair. It will be available in either Eastern White Pine or Western Red Cedar, and in both painted/varnished and unfinished versions.

PFWW is designed to produce a jumping off point for another business that I intend to start in the next 5-10 years. The Loudest Sound is a service based corporation that will offer Freelance Audio Engineering services, as well as Sound Mixing for

film production companies.

1.To meet the sales goals set in the cash flow forcast.

2.To expand our customer base through not only advertising, but through word-of-mouth praise from previous clients.

3.To raise $100,000 for capital funding for The Loudest Sound.

I intend to run a sole proprietorship, and Paul Fujimoto Woodworks is owned and operated by Paul Fujimoto, who owns 100% of the company.

Description of Facilities & Equipment:

All shopwork will take place in the garage at 95 Summerfield ave.

in Stouffville, Ontario.

Currently, I have a high quality tablesaw, router, and hand tools available in my shop. I intend to add 2 Fluorescent shoplights to improve the lighting conditions in the garage. I will also be purchasing a high capacity dust collector, and 2 shop heaters for use in the winter months.

I will be adding any remaining core woodworking machinery, including: a thickness planer, a bandsaw, and hopefully later a jointer. A router table remains on the long term list of priorities. Also, to speed the assembly of the chairs, I will purchase a high quality cordless drill kit.

Major Goods:

The major product for the first half of the initial fiscal year will be the adirondack chair. It will be available in either Eastern White Pine or Western Red Cedar, and in both painted/varnished and unfinished versions.

Initially, I will only by making and selling chairs, however, if the demand is sufficient, I will begin to produce other adirondack furniture.

The primary operation of PFWW will be the construction of the furniture. I will dress the lumber myself, thereby ensuring each piece of stock is square and true.

Using power tools for drilling, planing, shaping, and cutting of the stock, work will proceed at far higher speeds than possible with hand tools.

Using hand tools for the finishing touches, and sanding, adds the human touch to the finished workpiece.

Industry & Competition Analysis:

Most of my competitors are far away from my target area, and therefore pose little threat.

For comparison, "The County Woodshop" sells a chair, of the exact same design I am going to use, made of white cedar, for $179.95.

I offer the same chair, made of western red cedar, (a better wood), for $159.00. Both chairs are finished with spar varnish, but my chair doesn't require staining, to achieve the golden colour so coveted by cottagers 'round the world.

The same chair, from "Adirondack Wood Products", costs $169.95 US, plus shipping.

The remainder of these companies in the Ontario region offer their chairs for about the same cost.

Description of Operations & Activities:

The primary operation of PFWW will be the construction of the furniture. I will dress the lumber myself, thereby ensuring each piece of stock is square and true.

Using power tools for drilling, planing, shaping, and cutting of the stock, work will proceed at far higher speeds than possible with hand tools.

Using hand tools for the finishing touches, and sanding, adds the human touch to the finished workpiece.

Initially, I will only by making and selling chairs, however, if the demand is sufficient, I will begin to produce other adirondack furniture.

The target group of individuals of PFWW is adults of all ages who

either rent or own cottages. They will be aware of the importance of my product, as well as of the usefulness of it. They will be impressed by the quality of the work, but more importantly, they will notice the difference in price.

Industry & Competition Analysis:

Most of my competitors are far away from my target area, and therefore pose little threat.

For comparison, "The County Woodshop" sells a chair, of the exact same design I am going to use, made of white cedar, for $179.95.

I offer the same chair, made of western red cedar, (a better wood), for $159.00. Both chairs are finished with spar varnish, but my chair doesn't require staining, to achieve the golden colour so coveted by cottagers 'round the world.

The same chair from "Adirondack Wood Products", costs $169.95 US, plus shipping.

The remainder of these companies in the Ontario region offer their chairs for about the same cost as the two mentioned above.

For comparison, "The County Woodshop" sells a chair, of the exact same design I am going to use, made of white cedar, for $179.95.

I offer the same chair, made of western red cedar, (a better wood), for $159.00. Both chairs are finished with spar varnish, but my chair doesn't require staining, to achieve the golden colour so coveted by cottagers 'round the world.

The same chair from "Adirondack Wood Products", costs $169.95 US, plus shipping.

The remainder of these companies in the Ontario region offer their chairs for about the same cost as the two mentioned above.

For comparison, "The County Woodshop" sells a chair, of the exact same design I am going to use, made of white cedar, for $179.95.

I offer the same chair, made of western red cedar, (a better wood), for $159.00. Both chairs are finished with spar varnish, but my chair doesn't require staining, to achieve the golden colour so coveted by cottagers 'round the world.

The same chair from "Adirondack Wood Products", costs $169.95 US, plus shipping.

The remainder of these companies in the Ontario region offer their chairs for about the same cost as the two mentioned above.

2.1 Marketing Strategy

I intend to advertise by posting advertisements around the town of stouffville on community bulletin boards, such as the ones found at most of the bank branches in town.

I plan to print 200 such ads and hope to find a place in town for about 150 of them.

I will also take out a weekly classified ad in the Stouffville Tribune, and the Stouffville Sun. Also, I will purchase ad space once a month in the Markham Economist & Sun.

Sales, Promotion & Pricing:

I am relying on word of mouth to produce the majority of customers. See above for the newspaper Ads. I also have a free website from yahoo/geocities. I am still in the construction stages, but it will eventually allow orders to be placed online.

Distribution is done on a monthly basis by the family van. Gas costs are included in the cash flow forecast.

I am the sole employee. I do everything needed to keep my business running at peak efficiency.

a. Our revenue projections by product and by month for the first year are:

b. Our revenue projections by product for Years 2 and 3 are:

a. We assume that the percent of our sales which are collected in the month they are made, in the month following, in the two months, and in the three months are:

b. Based on these assumptions, we have projected how much we will collect from our sales in each month. The following table also identifies any adjustments we may have made to these figures.

c. Not all of our sales in the first year will be collected during that year. Based on the assumptions shown above, our Accounts Receivable at the end of Year 1 will be:

d. We assume that our Accounts Receivable at the end of Years 2 and 3 will be:

a. Our assumptions regarding the amount that we will pay each month in Year 1 for Cost of Sales items listed below. These figures show up on our cash flow statements.

b. Our assumptions regarding the amount that we will pay in Year 2 and 3 for Cost of Sales items listed below. These figures show up on our annual Cash Flow Statement.

c. Some of these payments may have been to produce or purchase goods which we won't have sold yet. We estimate the value of such goods which we will have in inventory at the end of Years 1, 2, and 3 will be:

d. Apart from what we have already paid for, there may be additional Cost of Sales goods or services which we have received but we won't have paid for yet. We estimate the amount that we will owe (have as an Account Payable) for Cost of Sales items at the end of Years 1, 2, and 3 will be:

e. Based on these assumptions, we have calculated our Cost of Sales expenses. These figures, which show up on our Income Statement, are shown in both dollar values and as a percent of our projected revenues.

a. Our assumptions regarding the amount that we will pay each month in Year 1 for Sales and Marketing items are listed below. These figures show up on our cash flow statements.

b. Our assumptions regarding the amount that we will pay in Year 2 and 3 for Sales and Marketing items are listed below. These figures show up on our annual Cash Flow Statement.

c. Apart from what we have already paid for, there may be additional Sales and Marketing items which we have received by we won't have paid for yet. We estimate the amount that we will owe (have as an Account Payable) for Sales and Marketing items at the end of Years 1, 2, and 3 will be:

d. Based on these assumptions, we have calculated our Sales and Marketing expenses. These figures, which show up on our Income Statement, are shown in both dollar values and as a percent of our projected revenues.

a. Our assumptions regarding the amount that we will pay each month in Year 1 for Property & Utilities items are listed below. These figures show up on our cash flow statements.

b. Our assumptions regarding the amount that we will pay in Year 2 and 3 for Property & Utilities items are listed below. These figures show up on our annual Cash Flow Statement.

c. Apart from what we have already paid for, there may be additional Property & Utilities items which we have received by we won't have paid for yet. We estimate the amount that we will owe (have as an Account Payable) for Property & Utilities items at the end of Years 1, 2, and 3 will be:

d. Based on these assumptions, we have calculated our Property & Utilities expenses. These figures, which show up on our Income Statement, are shown in both dollar values and as a percent of our projected

revenues.

a. Our assumptions regarding the amount that we will pay each month in Year 1 for Operations items are listed below. These figures show up on our cash flow statements.

b. Our assumptions regarding the amount that we will pay in Year 2 and 3 for Operations items are listed below. These figures show up on our annual Cash Flow Statement.

c. Apart from what we have already paid for, there may be additional Operations items which we have received by we won't have paid for yet. We estimate the amount that we will owe (have as an Account Payable) for Operations items at the end of Years 1, 2, and 3 will be:

d. Based on these assumptions, we have calculated our Operations expenses. These figures, which show up on our Income Statement, are shown in both dollar values and as a percent of our projected revenues.

a. Our assumptions regarding the amount that we will pay each month in Year 1 for Banking & Other items are listed below. These figures show up on our cash flow statements.

b. Our assumptions regarding the amount that we will pay in Year 2 and 3 for Banking & Other items are listed below. These figures show up on our annual Cash Flow Statement.

c. Apart from what we have already paid for, there may be additional Banking & Other items which we have received by we won't have paid for yet. We estimate the amount that we will owe (have as an Account Payable) for Banking & Other items at the end of Years 1, 2, and 3 will be:';

d. Based on these assumptions, we have calculated our Banking & Other expenses. These figures, which show up on our Income Statement, are shown in both dollar values and as a percent of our projected revenues.

a. Our assumptions regarding the amount that we will pay each month in Year 1 for Wages & Other items are listed below. These figures show up on our cash flow statements.

b. Our assumptions regarding the amount that we will pay in Year 2 and 3 for Wages & Other items are listed below. These figures show up on our annual Cash Flow Statement.

c. Apart from what we have already paid for, there may be additional Wages & Other items which we have received by we won't have paid for yet. We estimate the amount that we will owe (have as an Account Payable) for Wages & Other items at the end of Years 1, 2, and 3 will be:

d. Based on these assumptions, we have calculated our Wages & Other expenses. These figures, which show up on our Income Statement, are shown in both dollar values and as a percent of our projected revenues.

a. Our assumptions regarding other sources of funding for our business in Year 1 are:

b. Our assumptions regarding other sources of funding for Years 2 and 3 are:

a. Our assumptions regarding payments to owners and repayment of loan principal and interest in Year 1 are:

b. Our assumptions regarding payments to owners and repayment of loan principal and interest in Years 2 and 3 are:

c. Our assumptions regarding other payments in Year 1 are:

d. Our assumptions regarding other payments in Year 2 and 3 are: