Case Study: Chagadama Christian Bookstore

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Assignment # 2 Expanding Your Business Joel Chagadama Professor Angela Harris Bus 402 8/25/12 Chagadama Christian Bookstore is a start-up business, apart from selling Christian books we also provide clients with photocopying, fax transmittal and reception services and access to self-serve computer workstations with a full array of software and Internet capabilities. Located down town near the Salisbury University, Chagadama Christian Bookstore has been in operation for Four months. Sales and business in general have been good and exceeding all expectations. We are currently running a more than 40 percent sales increase from our initial sales projection and we are now thinking of expanding the business opening a second location…show more content…
Based on the assumptions contained in this plan, I estimate that the businesses will break-even in its first year of operations. Cash Flow Statement As the owner of Chagadama Christian Bookstore, I will invest $60,000. This money will be used to cover startup costs of $12,725 and initial operating costs. Fixed costs are limited to our office space and equipment lease at $1,800 per month, which includes a 1,000 square foot store on Main Street, a telephone system, and two photocopiers. As continued positive cash flows permit, the amounts I invested will be repaid. Balance Sheet Inventory at the end of the year amounted to $2,345. We want to control our inventory levels very carefully. We will purchase only what we need based on our sales projections and maintain a stock of goods and supplies in the range of $2,000 -…show more content…
I believe that it is an opportune time to start a business like Chagadama Christian Bookstore since the retail services industry in Maryland is currently worth $350 million; in Salisbury, the industry is estimated to be worth $20 million. Furthermore, since new small businesses are being launched with great frequency, the potential market for our services is growing exponentially. I bring more than 20 years of technical repair and sales skills to the table and am investing $60,000 personally to start this business. I anticipate being able to repay my loan to the company beginning in August 1999. So as to ensure the success of the new location and the business I will hire a marketing manager who will be in charge of all the marketing of the two locations. I will try and be a little aggressive, hire a well-qualified and experienced individual to oversee the marketing department. With this person we will come up with a physical marketing budget and choosing the best channel choices to reach our target

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