Quebec Entrepreneur

Programme

Business
Plan

Contents
Executive Summary.................................................................................................... 3
Background of Applicant............................................................................................. 4
Market Analysis.......................................................................................................... 4
Industry................................................................................................................... 5
Target Market.......................................................................................................... 6
Products and Services................................................................................................ 6
Products.................................................................................................................. 6
Services................................................................................................................... 7
Company and Ownership Structure............................................................................8
Operations.................................................................................................................. 8
Location................................................................................................................... 8
Suppliers................................................................................................................. 9
Competition.............................................................................................................. 10
General Description............................................................................................... 10
Competitive Advantage......................................................................................... 11
Marketing................................................................................................................. 12
Promotional Activities............................................................................................ 12
Advertisement....................................................................................................... 12
Price...................................................................................................................... 13
SWOT Analysis.......................................................................................................... 13
Strengths............................................................................................................... 13
Weaknesses........................................................................................................... 13
Opportunities........................................................................................................ 13
Threats.................................................................................................................. 13
Personnel Plan.......................................................................................................... 14
Sales person.......................................................................................................... 14
Landscaping Consultant........................................................................................ 14
Personnel Plan....................................................................................................... 15
Financial Analysis..................................................................................................... 15
Breakdown of Investment...................................................................................... 15
Sales Promotion Activities & Advertising Material.................................................16
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Leasehold Improvements...................................................................................... 16
Website Design and Required Software.................................................................16
Cash Required....................................................................................................... 17
Sales Forecast....................................................................................................... 17
Income Statement................................................................................................. 18
Balance sheet........................................................................................................ 19
References................................................................................................................ 20
Appendix.................................................................................................................... 1
Product Summary....................................................................................................... 1
Farming and Lawn Care Supplies.............................................................................1
Gardening and Landscaping Supplies......................................................................1
Storage & Tools....................................................................................................... 2
Power Equipment.................................................................................................... 2

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Executive Summary
The proposed business is a new start up, sole proprietorship, wholly
owned and managed by Mr. Rahmani. The business will engage in the retail
and rental of garden, farm and landscaping equipment and supplies to
farmers, businesses such as landscaping contractors, and home owners in
Trois Rivieres, QC either directly from its store or through its website. The
provided equipment will be in four main categories: lawn care, gardening,
storage and tools, and power equipment. The business will also offer
landscape counselling primarily to homeowners who have a low level of
familiarity with gardening and landscaping, and prefer an expert opinion on
landscaping their lawns and yards. Renting popular lawn and garden
equipment as well as providing landscape counseling services will distinguish
this business from the competitors in the market.
The aim of the proposed business is to provide one stop shopping for
the best quality and environmentally friendly lawn, garden and farming
equipment and machinery. The business plans to invest in its website to
promote it as a reliable authority in the lawn, gardening and farming
information for Trois Rivieres and the surrounding area. The website will also
increase the reach of the business beyond Trois Rivieres by playing the role
of an online store where customers can order their necessary equipment and
tools and have it delivered to their doorstep.
The business plans to sell its equipment and supplies to professionals
such as farmers, landscaping contractors, gardening experts as well as
amateur lawn and garden enthusiasts. It will supply farming, gardening and
landscaping equipment to the local market in, and around Trois Rivieres QC.
A number of factors such as low competition relative to the city size, low
operating costs, and distance from major cities make Trois Rivieres an ideal
location for this business.
The founder will be investing development time, experience, and 100%
of start-up costs of $175,000. Mr. Rahmani will be the managing director of
this business running its day to day operations and will see to planning,
staffing, managing and controlling the whole business. Apart from Mr.
Rahmani, the business will hire one full-time employee as a sales person as
well as one part-time employee as a landscaping consultant.
Mr. Rahmani has vast experience with cultivation and farming, and
during the years as the manager of his vineyards, he has been able to gain
valuable knowledge and business skills such as financial, operational, sales
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and marketing, and human resource management. His background in

farming gives him complete familiarity with the equipment and tools in the
proposed business and this will give him an edge in the target market.

Background of Applicant
Mr Rahmani became the owner and manager of Rahmanis Vinyards in
May 2009 and has been managing the farm ever since. After graduating in
the field of medicine at Shahrekord University of Medical Sciences in 1996,
Mr Rahmani was a general physician at Shanestagh Sofla & Nehavand
Treatment Center for two years which afterwards he established his own
medical office. He was a full time general physician at his office until he
became the manager of the vineyard. Now Mr Rahmani manages his
vineyards full time.

Market Analysis
Every year, more and more individuals decide to take up gardening as
a way to spend their leisure time. In fact, gardening is the number one hobby
in the US and is among the most popular hobbies in Canada suggesting that
beyond the professional market of farmers and landscapers, there is a
growing market for gardening equipment and supplies among the amateur
enthusiasts.
In the past five years, like many other industries, the lawn, garden and
farming equipment retail industry has felt the effects of the recession which
increased unemployment rates, and unstable economic conditions led to low
disposable income. Consequently, households delayed spending on
discretionary products, including lawn and gardening equipment. However,
over the next five years to 2019, renewed confidence in the economy and
increased discretionary incomes are expected to boost industry revenue.
The lawn, garden and farm equipment industry is highly fragmented
and shows low levels of market share concentration. Based on the study by
IBISWorld, no single operator accounts for more than 1.0% of the industry
revenue. This fact demonstrates that there is no sizable competitor with a
dominant market share in this industry and that the majority of businesses
are focused on local demand in, and around their store locations.
With the help of the industrial development advisor at Innovation et
Dveloppement conomique Trois-Rivires, Ms. Julie Cloutier, we were able
to gain insight into the lawn, garden and farming market of the city as well
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as some valuable information about the gardening and farming activities in

the area. The table below compares the number of competitors in major
cities of Quebec. Relative to its size, Trois Rivieres has a limited number of
competitors in the lawn, garden and farming equipment retail business. Its
population to competition ratio is about 16,863 which is one of the best
among the cities studied for this business.
City

Populatio
n

Nearb
y
major
City

Distanc
e from
major
city
(km)

Population/Competit
ion

158

Potential
FarmLawn
equipmen
t
Competito
rs
22

Sherbrook
e
Laval

154,601

Montreal

401,553

Montreal

20

40

10,038

Qubec

516,622

49

10,543

Trois
Rivieres

151,773

Qubec

126

16,863

7,027

The distance of Trois Rivieres from major cities (126 KM from Quebec
City) means that bigger competitors in Quebec City do not pose a threat to
this business and farmers and homeowners in Trois Rivieres need to supply
their tools and equipment from the local stores. Due to the fact that Trois
Rivieres is a regional administrative hub, the city possesses a large pool of
skilled labour which makes it easier for the business to hire experts and
professionals in its field.
Another advantage of choosing Trois Rivieres as the city to operate for
this business is low set up cost for businesses. According to the KPMG 2012
Competitive Alternatives Survey, Trois Rivieres has the lowest set-up costs in
Eastern Canada and the US. Property prices in Trois Rivieres are among the
lowest in Canada. For example, the average property in Trois Rivieres costs
$157,907, compared to $266,998 in Quebec City, $281,300 in Montreal,
$187,500 in Sherbrooke and $819,700 in Vancouver. This supports the fact
that businesses running in this city enjoy lower overhead costs (such as rent)
compared to other big cities in the region.

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Industry
Lawn and Garden Equipment and Supplies Stores (NAICS code
4442) consists of establishments primarily engaged in retailing lawn, garden
and farming equipment and supplies. From all the lawn, garden and farm
equipment and supply stores active in Canada, 15.2 percent are located in
the province of Quebec.
The primary source of operating revenues for the vast majority of lawn,
garden and farm retail businesses is sales. Other sources of revenues
includes commissions, manufacturing sales, labour revenues and revenues
from rental and leasing. Based on the statistics of CIS in 2011, sales
represented 98.2% of total operating revenues while other sources of
revenues accounted for 1.8%. According to the Canadian Business Patterns
Database, the average annual revenues for small and medium-sized
businesses in the lawn and garden equipment and supplies stores industry
group was $454,900 in 2010.

Target Market
The target market for the proposed business will be farmers,
landscaping contractors, municipalities and homeowners in Trois Rivieres QC,
who need farming, gardening and landscaping equipment. Based on the
information provided by Innovation et Dveloppement conomique TroisRivires, there are currently 62 landscaping contractors active in Trois
Rivieres which are potential customers for the business.
Many homeowners who landscape their properties spend an average of
10 percent of the value of their house on landscaping. This includes not only
the plants and statuary, but also the design, installation, and maintenance of
the landscape. Although the proposed business will primarily be involved in
providing tools and equipment for landscaping, it still plans to gain revenue
from other activities involved in lawn, gardening and farming industry in the
region mainly through commissions and affiliate deals with landscaping
contractors and consultants in Trois Rivieres. The business will sign a deal
with contractors and consultants in the area to receive a percentage of the
revenue from the clients it refers.

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Products and Services

Products
The proposed business will offer tools and equipment for farming,
gardening and landscaping use in four main categories: Lawn care,
Gardening, Storage and, Tools and Power Equipment. The tools and
equipment are mainly used for plant nurseries, farms, beekeeping,
gardening, lawn care and landscaping. The product offerings each category
will cover include:
1- Farming and Lawn Care Supplies: includes fertilizers and plant food,
herbicides and fungicides, insecticides and pest control, landscaping
and lawn care, soils and conditions, spreaders and garden seeders, etc.
2- Gardening and Landscaping Supplies: includes seeds, garden
maintenance and supplies, planters and lawn dcor, water gardening,
etc.
3- Storage and Tools: consists of hoses and sprinklers, lawn and garden
hand tools, sprayers, storage, wheelbarrows and carts, etc.
4- Power Equipment: consists of grass trimmers and blowers, tractors and
mowers, woodcutting, leaf blowers, etc.
Products will be available according to customers needs and can be
purchased directly from the store or online through the business website.
Also, complete information about the products and training videos will be
available on the website of the business.

Services
Equipment Rental

Besides the sales of garden, landscape and farming equipment and

supplies, the business will also be renting popular and sought after
machinery and tools such as lawn mowers, chainsaws, hedge trimmers,
garden tractors and utility vehicles. The business will also arrange the rental
of heavy farming machinery for farmers of the area who need extra tools and
machinery for their tasks. The business will act as an intermediary between
agricultural rentals in other cities and regions, and farm owners in and
around Trois-Rivieres.

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Delivery & Warranty

The business also provides services such as warranties, deliveries, and

repairs. In case a customer requests for a product that is not in stock, the
business will make the arrangements for offering the required product as a
part of its service.
Landscaping Consultant

Customers who do not possess the knowledge and skill to landscape

their own yard and lawn may use the service of a professional landscaping
consultant which will be provided by the firm on demand. The consultant will
solely offer designs and suggestion based on the tastes of the customer, and
for plantation and landscaping, will refer the customer to the affiliate
landscaping contractor with which the firm has referral contract. All the
necessary equipment for gardening and farming will be bought from the
store and delivered to the location the customer needs.
Website

The business will provide a website with a secure online ordering

system which enables the customers to order the products online. Customers
who order their products over the internet can have it delivered directly to
their doorstep. Deliveries of the business will be handled by a third party
delivery company and will include virtually all the products in stock.
The website of the business intends to be a hub, not only for local, but
for customers interested in farming and gardening in the larger regional
market which will increase the reach of the proposed business to a wider
area. The website will offer complete information on the products, along with
information about how to use the products, and video training files that offer
useful information about farming and gardening.

Company and Ownership Structure

The business will be operated as a single proprietorship type of
business. The benefits of this structure are lower levels of legal and tax
formalities and less expensive cost of setting up the business. Also, the
control and profit remain entirely with the business owner. The business will
seek to enter into distributorship arrangements with farm supply
manufacturers and distributors. The funds that will be required to start this
business will come from the savings of Mr. Rahmani. He will be investing
development time, experience, and 100% of start-up costs of $175,000.
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Operations
The proposed business will supply its wide range of tools and
equipment from suppliers in Canada and the United States. It also plans to
gain dealership of a number of respected brands in this industry so that it
can provide better product and services for its customers. Environment
friendly products will be the primary choice of the business. The immediate
customers will be businesses such as landscaping contractors and farmers
along with households in need of landscaping equipment.
The business plans to distinguish itself from the competitors in the
region by providing the best quality products, offering a wide range of tools
and equipment to meet all needs, providing complete information about
each product and offering consultancy services. The products will be
environment friendly, and will be chosen according to the needs and
conditions of the customers in, and around Trois Rivieres. Consultancy
services will also be available for customers who are not familiar with lawn,
gardening and farming equipment and activities.

Location
The total area needed for office use, display and storage of the
products will be from 1,500 to 2,500 Square Feet. An ideal location for the
business is a commercial space located at 2182 Rue St-Philippe, TroisRivires. The proposed location is a commercial rental space with a detached
office of 3,100 Square feet. It includes a storage space in the back, as well as
a small office area. The asking price for the property is $1,500 per month.

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Key features of this property are:

Huge commercial space of 3,100 Sq ft

Storage area in the back of 29x21 ft
Small office area
Proximity to the Autoroute Felix-Leclerc highway

Suppliers
The proposed business will have a wide range of suppliers to meet all
the needs of its customers. The focus is on high quality and environmentally
friendly products. The business also plans to enter into dealership
arrangements for the garden and farm equipment products. A favourable
supplier for arranging a dealership agreement is Ferris industries
(www.ferrismowers.com). Ferris Industries produces quality outdoor power
equipment and is famous for its top of the line lawn mowers. Currently, Ferris
Industries does not have a dealer in Trois Rivieres and this makes it a perfect
dealership candidate for the business.
Other potential suppliers of tools and equipment for the business are:

True Temper: www.amestruetemper.com

Sunlight Supply Inc. www.sunlightsupply.com
OESCO. Inc. www.oescoinc.com
Terrebonne Limited www.terrebonnelimited.com
Grower Central; Environmentally Friendly Fertilizers and Pesticides
www.growercentral.com
BWGS; Bloomington Wholesale Garden Supply www.bwgs.com
Rain Bird Corporation www.rainbird.com

Competition
General Description
As mentioned, 9 businesses are active in the same field as the
proposed business in Trois Rivieres which in one form or another, will be
competing in the market. The table below lists the competitors in Trois
Rivieres. These competitors comprise of privately owned stores, big
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department stores and landscaping contractors which all or some part of

their activities overlap with those of the proposed business.
N
o.

Competitor
's Name

Description

Pepiniere
1 Cormier

Garden center and farm supplies,

gardening equipment and plants

2 Walmart

Department Store with a small

division for gardening equipment

3 Walmart

Department Store with a small

division for gardening equipment

Botanix
Gaetan
4 Chasse Inc

Garden center & farm supply,

Gardening and farming equipment
and plants

Major Mini
5 Moteur Inc

Industrial equipment including lawn

mower sales, maintenance and
repair

Machineries
Baron &
6 Tousignant

Outdoor power equipment, including

lawn mowers, leaf blowers, chain
saws, etc.

F Labonte
Paysagiste
7 Inc

Garden center & farm supply

8 Pro-Dam

Garden center & farm supply

Canadian
9 Tire

Department store with a small

division for gardening equipment

Location
2420 Boul
Thibeau
Phone: (819)
376-3081
300 Rue Barkoff
Phone: (819)
379-2992
4520 Boul Royal
Phone:(819) 3721181
5350 Boul JeanXxiii
Phone: (819)
378-4666
541 Boul SainteMadeleine
Phone: (819)
372-0399
7515 Boul Des
Forges
Phone: (819)
378-3472
8400 Boul Des
Forges
Phone: (819)
373-6103
Phone: (819)
699-3905
6 Rue Fusey
G8T 2T1
Phone: (819)
376-9646

There are also a small number of indirect competitors who in the area.
Although their field of activity isnt the same as the proposed business, they

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are active in landscaping consultancy and provide basic lawn and garden
equipment from various retailers for their clients.

Cedres De
La Maurice

Landscaping services & plant and

tree nursery

Techni
Irrigation

Irrigation systems and equipment,

landscaping consultancy

2185 Rue LudgerMadore

Phone: (819) 3726619
735 Rue Des
Dominicains
Phone: (819) 3734472

Competitive Advantage
While the competitors in Trois Rivieres are varied from small gardening
equipment shops to big international department stores such as Walmart,
the proposed business plans to rely on its competitive advantage to gain a
considerable market share.
The main competitive advantage of the business will be the fact that
unlike some of its competitors such as big department stores, which provide
a very wide range of products and only dedicate a small portion of their store
space to lawn, gardening and farming equipment, the proposed business will
only specialize in this industry and focus all its effort on providing products
and services in this category. Further, it will be renting popular equipment
and tools for the use of contractors and homeowners.
The website of the business will drive the online customers searching
for lawn, gardening and farming equipment and supplies to the store. It will
also become a hub for the gardening enthusiast of Trois Rivieres for finding
new tips and advice about farming, landscaping and gardening in the area.
This aspect of the business is unique in the area and will give it a competitive
edge in the market.
Lastly, while the business is primarily involved in providing equipment
and supplies for lawns, gardens and farms, it will also engage in providing
top quality landscaping consulting services for business and homeowners
who prefer having an expert design and plan their landscaping expansions.
This differentiates the business form the retail stores which only provide the
equipment and supplies to the customer.

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Marketing
Promotional Activities
The key promotion strategy will be differentiating the business from
other competitors in the region by including landscaping consultation next to
the tools and machinery sold in the store.
Also, the business will focus a lot of its effort on promoting the website
as a reliable authority in lawn, gardening and farming information for Trois
Rivieres and the surrounding area. The business plans to drive a large
amount of traffic through its main website in hopes that a percentage of it
will translate into sales for the store.
For this reason, the business plans to dominate the local online
searches for lawn, gardening and farming equipment through powerful
content on the site and using a strong content management system (CMS).
The business will also consult with SEO (search engine optimization) experts
from the beginning of the process to ensure the website has a good place
among search engines and will even invest in online advertisements such as
banner ads, Facebook targeted ads and Google AdWords.

Advertisement
The business will use banner advertisements in different locations
around the city and print leaflets and flyers for distribution among potential
customers. Also, the business will advertise in directories such as the Yellow
Pages and trade show magazines. All the advertisement material will include
a brief description of the products and services provided by the business.
The material will refer the potential customers to the store and the website
of the business.
As for online advertisements, the business will invest in Google AdWords
for its first year and use banner ads on related websites in the field of lawn,
gardening and agriculture to drive traffic to its website and promote it as a
reliable source of information and tips about gardening and landscaping in
the area.

Price
The preferred pricing strategy for this business is market-oriented
pricing. Based on this strategy, the business sets a price based upon analysis
and research compiled from the market in Trois-Rivieres. Depending on the
pricing of the competitors, the business will decide to either price its goods
at an above price or below, to achieve its goals. As for renting, the business
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will rent popular lawn, garden and farming equipment at a price range
between $20 - $270 per day depending on the equipment and machinery.

SWOT Analysis
Strengths

Business start-up and operations entirely funded by the owner, no debt

burden or interest expense
Having a series of revenue sources besides direct sales in the store
such as commissions, affiliates and online sales
Uniqueness of the business due to not only providing and renting tools
and equipment in its store, but also providing landscape consulting
services
An online presence and distribution of lawn, gardening and farming
equipment through its high traffic website
Creating a large online follower base through the website and social
media for gardening and landscaping enthusiasts

Weaknesses

Lack of experience in running a retail store of this nature

May need time to fully understand the dynamic of the market in the
area

Opportunities

Over the next five years, renewed confidence in the economy and
increased discretionary incomes are expected to boost industry
revenue
Distance of Trois Rivieres from the major cities means that the market
is available for local businesses
Possible opportunity for future expansion of the business into the
landscaping consulting and landscaping contracting industries

Threats

Existing competition in the area

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Personnel Plan
In addition to the services of Mr. Rahmani, who will be the managing
director of this firm, the business will employ one full-time sales person for
the store as well as a part-time landscaping consultant.
Mr. Rahmanis duties will include:
Supervising daily operations of the store
Conducting market research and competitor analysis
Managing companys finances and controlling expenses
Ensuring that the activities of the business are in line with the laws of
Quebec and Canada as a whole
Consulting with suppliers and ensuring that the store has a stock of the
newest and latest lawn, gardening and farming equipment
Negotiating with potential customers and clients
Establishing relations and entering into distributorship arrangements
with suppliers

Sales person
The salesperson needs to have considerable knowledge about lawn,
gardening and farm equipment and have experience repairing and
maintaining gardening and farm machinery. The sales persons
responsibilities are:
Greeting customers and offering them assistance
Advising customers by providing information on products
Helping customers make selections by building customer confidence;
offering suggestions and opinions.
Maintaining and repairing stores tools and machinery
Documenting the sale by creating or updating customer profile
Processing payments by totaling purchases; processing checks, cash,
and credit cards
Keeping clientele informed by notifying them of preferred customer
sales and future merchandise of potential interest
Arranging the delivery of the product and services to the desired
location by the customer

Landscaping Consultant
The proposed business plans to hire a part-time landscaping consultant
primarily to assist private homeowners who might prefer to have an expert,
design and conduct their lawn, garden or yard expansions. The landscaping
consultant will observe the specific location for the job and depending on the
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customers preference, suggest designs and plan the landscape, garden or

the distinct space. The landscaping consultant needs to have two years of
experience in either gardening or landscaping with an acceptable knowledge
of various shrubs, plants and trees.
The landscaping consultants responsibilities are:
Giving advice to the customer about their needs and preferences
Scouting out the area and gathering necessary information for the
landscaping design
Offering various designs and ideas for landscaping projects
Deciding on the appropriate tools, equipment and machinery for the
job
Referring customers to the affiliate landscape contractors
Cooperating with landscape contractors to ensure that the designs are
implemented as planned
The landscaping consultant will be hired at a per-hour basis. The average
salary for a landscaping consultant is roughly $30 an hour.

Personnel Plan
Personnel Plan
Manager
Sales Person
Total People

Year 1
$35,000
$27,500
2

Year 2
$36,750
$31,500
2

Year 3
$38,588
$33,075
2

Total Payroll

$62,500

$68,250

$71,663

Financial Analysis
The $175,000 capital investment of the proposed business is broken
down as follows:

Breakdown of Investment

List of expenses
Legal & Business fees
Sales Promotion Activities & Advertising Material
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Estimated
Cost
$6,000
$10,000

Signage and Store branding

Leasehold Improvements

$3,000
$14,000

Insurance

$2,000

Miscellaneous

$3,000

Total Start-up Expenses

$38,000

Long-term Assets
Computers, POS, printers, fax machine and telephone

$12,000

Equipment for rent

$10,000

Website Design and required software

$10,000

Store Furniture

$10,000

Total Long-term Assets

$42,000

Cash Required

$45,000

Start-up Inventory

$50,000

Total Assets
Total Requirements

$137,000
$175,000

Sales Promotion Activities & Advertising Material

The $10,000 budget estimate will serve to cover costs related to the
grand opening and advertising, as well as marketing and promotional
materials and expenses. The main focus of the advertising campaign will be
on online advertising such as Google AdWords, banner ads on related
website and targeted advertisements on Facebook, however the business
also plans to print leaflets and flyers and advertise on yellow pages and local
magazines in Trios Rivieres and the surrounding areas.

Leasehold Improvements
A budget of $14,000 is estimated for the renovation of the desired
location of the business. Since the desired location is a commercial building
of 3,100 Square Feet, the budget for leasehold improvements will include the
following: interior design and layout of the location, such as modification,
expenses for trade contractors, such as painters, IT components, telephone
installations and renovation of the faade of the building.

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Website Design and Required Software

The estimated budget of $10,000 will be set aside for software such as
accounting software and the design of the website. A webmaster who will
design the companys website will be hired for this project. The website will
include a complete list of products available in the store all with instructional
videos or photos. Also the website will have an online ordering system so
that customers can order the products directly from the site and have it
delivered to their doorstep. Some part of this budget will be dedicated to
hiring an SEO (search engine optimization) consultant to optimize the
content of the site and increase its position among search engines.

Cash Required
The amount of $45,000 will be set aside to support ongoing expenses
such as payroll, utility costs, rent, taxes, permits, and other miscellaneous
costs to the extent that these costs are not covered by gross revenues.

Sales Forecast
Sales Forecast
Year 1

Year 2

Year 3

Unit Sales
Lawn Care
Gardening
Storage & Tools
Small Power Equipment
Large Power Equipment
Rent
Consultation Service
Total Unit Sales

1,381
1,012
1,122
356
96
88
133
4,442

1,808
1,325
1,469
462
126
115
264
5,905

2,079
1,524
1,689
531
145
132
324
6,811

Unit Prices
Lawn Care
Gardening
Storage & Tools
Small Power Equipment
Large Power Equipment
Rent
Consultation Service

Year 1
$30.00
$40.00
$50.00
$100.00
$1,100.00
$40.00
$60.00

Year 2
$30.00
$40.00
$50.00
$100.00
$1,100.00
$40.00
$60.00

Year 3
$30.00
$40.00
$50.00
$100.00
$1,100.00
$40.00
$60.00

Sales
Lawn Care
Gardening
Storage & Tools
Power Equipment
Rent

$41,430
$40,480
$56,100
$141,200
$3,520

$54,236
$52,992
$73,440
$184,844
$4,608

$62,371
$60,941
$84,456
$212,570
$5,299

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Consultation Service
Total Sales

$7,980
$290,710

$15,840
$385,959

$19,440
$445,077

Direct Unit Costs

Lawn Care
Gardening
Storage & Tools
Power Equipment
Rent
Consultation Service

Year 1
$18.30
$24.40
$30.50
$122.00
$0.00
$30.00

Year 2
$18.30
$24.40
$30.50
$122.00
$0.00
$30.00

Year 3
$18.30
$24.40
$30.50
$122.00
$0.00
$30.00

Direct Cost of Sales

Lawn Care
Gardening
Storage & Tools
Power Equipment

$25,272
$24,693
$34,221
$86,132

$33,084
$32,325
$44,798
$11
2,755
$0
$7,920
$230,882

$38,046
$37,174
$51,518
$129,668

Rent
Consultation Service
Subtotal Direct Cost of Sales

$0
$3,990
$174,308

$0
$9,720
$266,126

Income Statement
Pro Forma Profit and Loss
Sales
Commissions
Direct Cost of Sales
Total Cost of Sales

Year 1
$290,710
$1,454
$174,308
$174,308

Year 2
$385,959
$5,789
$230,882
$230,882

Year 3
$445,077
$6,676
$266,126
$266,126

Gross Margin
Gross Margin %

$117,856
40.54%

$160,866
41.68%

$185,627
41.71%

$62,500
$2,040
$3,200
$18,000
$6,000
$2,000
$4,000

$68,250
$11,000
$3,200
$18,000
$8,000
$4,000
$5,000

$71,663
$12,000
$3,200
$18,000
$9,000
$4,000
$6,000

Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Delivery, shipping and warehouse
expenses
19 | P a g e

Repair and maintenance

Professional and Business fees
Startup Costs
Other

$1,000
$1,000
$38,000
$3,000

$1,500
$6,000
$0
$4,000

$2,000
$7,000
$0
$4,500

Total Operating Expenses

$140,740

$128,950

$137,363

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

($22,884)
($19,684)
$0
$0

$31,916
$35,116
$0
$2,800

$48,264
$51,464
$0
$15,550

Net Profit
Net Profit/Sales

($22,884)
-7.87%

$29,116
7.54%

$32,714
7.35%

Balance sheet
Pro Forma Balance Sheet
Start Up

Year 1

Year 2

Year 3

Assets
Current Assets
Cash
Inventory
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Other Long term Assets
(Website, Software)
Total Long-term Assets
Total Assets

$45,000
$50,000
$95,000

$32,000
$0
$10,000
$42,000
$137,000

Liabilities and Capital

$56,061
$81,405
$137,466

$32,000
$3,200
$10,000
$38,800
$176,266
Year 1

$62,082
$110,823
$172,905

$32,000
$6,400
$10,000
$35,600
$208,505
Year 2

$91,734
$118,949
$210,683

$32,000
$9,600
$10,000
$32,400
$243,083
Year 3

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current
Liabilities

$0
$0
$0
$0

$24,150
$0
$0
$24,150

$27,273
$0
$0
$27,273

$29,137
$0
$0
$29,137

Long-term Liabilities
Total Liabilities

$0
$0

$0
$24,150

$0
$27,273

$0
$29,137

20 | P a g e

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and
Capital

$175,000
($38,000)
$0
$137,000
$137,000

$175,000
$0
($22,884)
$152,116
$176,266

$175,000
($22,884)
$29,116
$181,232
$208,505

$175,000
$6,232
$32,714
$213,946
$243,083

Net Worth

$137,000

$152,116

$181,232

$213,946

References
http://pss.uvm.edu/ppp/articles/lscaper.html
http://realestate.heraldtribune.com/2013/06/03/boost-value-to-yourhome-with-landscaping/
https://www.ic.gc.ca/app/scr/sbms/sbb/cis/benchmarking.html?
code=4442&lang=eng
http://www.idetr.com/en/portrait-of-trois-rivieres/businessfriendly/index.aspx
http://www.bls.gov/oes/current/naics4_444200.htm
http://www.ibisworld.ca/industry/lawn-outdoor-equipment-stores.html
http://www.ibisworld.ca/industry/plant-flower-growing.html
http://www.ibisworld.ca/industry/landscaping-services.html
http://www.ibisworld.ca/industry/default.aspx?indid=1037

21 | P a g e

Appendix
Product Summary
The business will have four main product categories of lawn care, gardening,
storage & tools, and power equipments. Each product category has several
sub categories which include a number of products. Below a summary of
each sub category and their price range is provided.
Farming and Lawn Care Supplies

Fertilizers &

Herbicides &

Plant food
$5.99 - $44.99

Fungicides
$8.99 - $29.99

Insecticides
& Pest Control
$5.99 - $13.99

Landscaping
& Lawn Care
$2.50 - $44.99

Soils &
Conditioners
$1.59 - $14.99

Spreaders &
Garden Seeders
$59.99 - $100

Gardening and Landscaping Supplies

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Bulbs and
Seeds
$1.69 - $8.99

Water
Gardening
$12.99 - $124.99

Garden
Maintenance Supplies
$3.99 - $30.49

Planters &
Lawn Dcor
$5.99 - $14.99

Beekeeping
$54.99 - $119.99

Storage & Tools

Hoses &
Sprinklers
$6.99 - $89.99

Lawn &
Garden Hand Tools
$7.99 - $25

Sprayers &
Dusters
$5 - $59.99

Power Equipment

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Snow
Removal
$5 - $22.99

Storage
$20 $150

Wheelbarrow
s & Carts
$40 - $70

Grass
Trimmers & Blowers
$33 - $200

Leaf Blowers
$35 - $159.99

Lawn
Tractors & ATV
Attachments
$65 - $400

Snow
Blowers & Accessories
$24.99 - $799.99

Specialty
Power Equipment
$300 - $800

Tractors &
Lawn Mowers
$180 - $3,190

Tractor &
Lawn Mower Parts
$3.99 - $60

$90 -$200

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ATV
Accessories
$20 - $80

Woodcutting

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