Business Plan

Style to Your Door

WG12_Group 7

Soobeen Lee - 11977485

Sofia Bernhard - 13175807
Wiktoria Woźniak - 13142992
Momoka Tsuruoka - 12558168
Noa Anneveldt - 12681415
Executive Summary:
The Business Opportunity
The fashion industry contributes 8-10% of global carbon emissions, exploits workers and
animals and uses massive amounts of water. Rental clothing is not only an affordable option to
experiment with personal style, but it is also thought to be a more environmentally friendly approach
to expanding our wardrobe (Rauturier, 2021). Style to Your Door is a sustainable rental clothing
website that provides customers with a unique subscription box. Our service focuses on sustainability
while conveniently elevating your closet with vintage and new clothing pieces, striving towards a
circular economy.

The Target market

Targeting fashion-forward women and men who want to become more sustainable while
exploring fashion monthly. The website offers customers who want to expand their personal style or
don’t want to spend their time shopping, a quick solution. Through a few clicks, you will receive a box
with pieces based on your personal style, size and preferences.

The Competition
The rental clothing market is already well established with large companies like H&M, Zara
and Zalando offering rental clothing services. We, therefore, set ourselves apart through the company’s
main competitive advantages, which include a robust network of apparel merchants, environmental
consciousness, a high degree of customisation of the box and unlike most competitors we provide
vintage and new clothing pieces.
We plan to engage in extensive targeted social media marketing to reach a broad potential customer
base.

Financials and funding

We expect first earnings of 57,830€ by December 2022, and earnings of 105,740€ by
December 2023. As well as a cash balance of 77,400€ by December 2022 and 84,100€ by December
2023. And expected revenues of 382,800€ by 2022 and 516000€ by 2023.
To achieve this, we identify the following funding needs:
Style to Your Door will issue 10,000 common shares in its founding where 8,000 will be
distributed to the five founders and 2,000 shares will be held in treasury for future use. To receive
extra we hope to work with Angel Investors and for further funding, 49% of ownership will be sold to
venture capitalists.
 Figure 1.

Note. The founding team

Industry analysis:
The e-commerce fashion industry has been estimated to have an average annual growth rate of
13.5% (Statista Research Department, 2022). Moreover, it is predicted to reach a value of $672.71
billion by 2023 (The Business Research Company, 2021). The industry has been growing due to
several factors such as an increase in disposable income and the ability of more and more consumers
to access shops online (Orendorff & Dopson, 2019).
The whole fashion industry has been experiencing a shift as customers become more aware of
the environmental impacts of the fashion industry and started demanding more sustainable options.
This megatrend majorly impacted the second-hand clothing market and rental clothing market. The
second-hand clothing market is predicted to grow 127% as shown in Figure 2, within the next five
years hitting the valuation of $77 billion. (ThredUP, 2022). The online rental clothing market, with
North and South America and Europe holding the majority of the market, (Inside Fashion’s Rental
Market, 2021) is predicted to have a growth rate of 25.96% (Technavio, 2022). A lot of the growth
will be happening in the Asia-Pacific region (Technavio, 2022) but the US and UK markets are also
predicted to grow exponentially(Inside Fashion’s Rental Market, 2021).
 Figure 2.

Note. ThreadUP predictions for the second-hand market, derived from

https://www.thredup.com/resale/.
Major trends in the industry are pushing the growth of the market. One of the major trends, as
previously mentioned, in the fashion industry at the moment is the increasing emphasis on
sustainability in fashion. As consumers demand more sustainable products also the reselling or
second-hand market has been growing and with that other trends started emerging in the industry
(Savilia, 2022). There has been a focus on the authenticity aspect of high-end fashion and solutions
that ensure and prove authenticity (Savilia, 2022).
Another trend is the strive for more diversity, there has been a focus on including models of
different sizes and ethnicities to better represent the customers and their diversity (Savilia, 2022).
Lastly, digitalization is becoming more and more important in the industry. Using big data to
personalize the experience for the user has been very significant in the industry (Schmidt, 2020).
Generally, more companies rely on online channels instead of brick-and-mortar shops (Schmidt,
2020).
Our business ideas address those trends in a few ways. Firstly our business revolves around
the idea of personalization and we strive to create a very individual experience for every user where
the focus lies on their personal preferences. Through our algorithms, we want to get to know our users
and adjust our recommendations continuously as they use our platform. Moreover, the platform would
fully function online without owning physical stores. Furthermore, as we focus on vintage clothing we
incorporate the trend for sustainable options and we do not add to the overproduction of clothing. We
also want to address the trend for authenticity and find solutions that our users trust that our clothing is
authentic, because of the emerging trend and the nature of our business we believe it is important to
provide some authentication proof to our end users.
SWOT Analysis:
According to the company's analysis, the strengths of Style to Your Door include being
ecologically sustainable, having excellent relationships with suppliers, and providing the chance to test
the marketability of clothing. This business strategy sets us apart from other clothing retailers and fast
fashion rivals by promoting responsible consumption and production, one of the sustainable
development goals. Additionally, it emphasizes responsible customer service. It offers live chat help so
that consumers can have back-and-forth dialogues with support staff members in real-time. Most
significantly, its operation offers possibilities for suppliers to examine actual trends and determine the
feasibility of clothing in a market.
Style to Your Door's weaknesses is made clear by the existence of rival companies that offer
comparable services, a reliance on suppliers, and a need for ongoing technological upkeep. There are
already large firms that offer clothing rental services, such as H&M and Zara; so, to set its service
apart from rivals, the concept of a customized collection of clothes is made available to customers.
Additionally, suppliers are crucial to the operation of the company since, without a specific quantity of
clothing, it cannot function. Technology is an important part of the business as well, therefore it needs
to be regularly checked, maintained, and developed to increase the level of service. Engineers are
constantly needed to complete this job, which can be one of the weaknesses, but once a team is built, it
becomes the firm's strength.
There are opportunities to offer a clothing rental service in a customized box thanks to the
growing trend of sustainable fashion, a continuous system of ratings and reviews, the digitization of
utilities, and cutting-edge websites and social media. As explained before, the growing emphasis on
sustainability in fashion is one of the primary trends now occurring in the fashion business since the
fashion sector is one of the most polluting industries. According to the Environmental Protection
Agency, c, compared to 13 million tons in 2009, and 9.4 million tons in 2000 (EPA, 2022). To respond
to this environmental issue, large companies start shifting their operation to rental clothes services
which encourage the whole industry bigger and more popular.
As previously indicated, the rental clothing services sector faces intense competition from
established retail companies like H&M and Zara. To gain more clients and raise their purchasing
power, those businesses mostly compete on product quality and pricing in the market. As competition
increases, it may be assumed that prices will decrease and quality will rise. Therefore, to distinguish
Style to Your Door from rivals, it is essential to highlight the original concept of creating a customized
box for each customer. Additionally, it is crucial to keep product quality good to develop trust. The
cleanliness of used clothing can be difficult to regulate, but Style to Your Door makes it possible by
setting up well-organized operations to inspect each item before delivery.
 Additionally, since the industry is extremely competitive and subscription services cannot
continue if clients are dissatisfied with the service, customer happiness is a crucial component of the
business.
Company description:
​'Style to your door' is an online platform where people can buy fashion items by monthly
payment from Spa brands to Designer brands. This online platform provides individual users with
random boxes with a varied range of prices from spa brands to designer brands. The users do not need
to choose each item. When a customer chooses a style that he or she pursues through a simple fashion
taste quiz when making an ID, "style to your door" automatically selects clothes that suit an
individual's taste based on an algorithm.
Style to your door has been brought into existence by 5 business students at the University of
Amsterdam. When going through multiple things that excite us and align with our interests, we found
that the five of us all had an interest in both fashion and technology. When diving deeper into these
subjects, we found one hurdle that in our opinion had yet to be overcome by the fashion industry:
providing a platform to make shopping more convenient while also giving everyone the possibility to
wear what they love. After an extensive brainstorming session, the concept of a fashion subscription
box based on an algorithm was developed.
Style to Your Door will be set up as a limited liability company with each of the founders
initially receiving a 20% stake. However, as a significant amount of funding is needed to get the
business up and running, we are willing to work with Angel Investors or Venture Capitalist firms to
receive funding in exchange for a maximum of 49% ownership in total.
As Style to Your Door is still in its early stage, many milestones have yet to be achieved.
Some of the most important steps have been taken. The preliminary business plan has been written.
This includes an industry analysis, and financial prospects but also the finalization of the concept
itself. Apart from this, a mock-up website has already been developed. This website will be taken to
the web developer as a template and will help to make sure the website aligns with our view as best as
possible.
​'Style to your door' provides physical fashion items so we are looking for a clothing supplier,
shipping partner, warehouse and packaging partner. Since the start is a business with 5 members, we
plan to use outsourcing for major activities.
Our main key partners would be clothing suppliers. We plan to offer fashion items with a
varied range of prices, from cheap SPA brands to high-end designer brands. Therefore, we would have
to work closely with a lot of fashion brands to be able to get the products.
Warehouse and packaging partners are needed since we offer the fashion stuff, and a large warehouse
to keep the clothing and other items is needed. We plan to use two warehouses 1 for receiving the
returned package and 1 for the main pickup point to send the packages. By dividing two different main
points, easier customer management is expected. We would need to find a shipping partner to deliver
our product. Since we plan to start our business in Amsterdam and later spread across the Netherlands,
we need a shipping partner that can deliver across larger areas. We desire to do business with Pinterest
to better connect to the customers' styles. As an algorithm-based online platform, the principle of
operation is to provide a fashion item in the style desired by the customer by automatically
recommending products by linking the reference of the style desired by the customer with Pinterest.
Therefore, collaboration with Pinterest is necessary to automatically recommend individual
consumers' styles.

Mission:
​'Choose your style and the item will be picked and delivered to your doorstep.' People often
reveal their identities through fashion items. In the rapidly changing fashion industry, our mission is to
bring convenience to people who have difficulty shopping offline due to their circumstances, or people
who want to try various styles of items that suit their taste.

Vision:
'Style to your door' leads to serving fashion items by random picking based on an algorithm.
Through the website and smartphone app, customers can choose categories of what they want from
cheap and reasonable prices to high-quality and high-end fashion stuff. The 'style quiz' and the
subscription create an opportunity for people can try various types of styles at once.

Market analysis:
The clothing rental market is mostly segmented by demographic factors such as gender, age
and economic class system. The most prominent share is held by the women segment (Mordor
Intelligence, 2019). Moreover, the market can be segmented by the types of clothing rented for
example casual wear, sportswear and formal wear, in the market, the customers tend to purchase casual
wear and maintain large amounts of everyday clothes while only purchasing formal wear infrequently
(Mordor Intelligence, 2019). Therefore, the market can be segmented by the types of apparel that are
rented, with the rental of formal wear holding a large share. Lastly, the market can be divided into
geographical areas, with the North American market experiencing a lot of growth at the moment
(Mordor Intelligence, 2019). The geographical region of the end-users can impact consumers' rental
behaviour.
Some barriers to entry in the market are presented below:
Barriers to entry:
1. High initial investment in inventory, storage, cleaning services etc.
2. Access to suppliers- the assortment owned is very important in clothing rental so obtaining
good suppliers is essential.
 3. Moderate switching costs for customers after becoming a part of one rental platform
customers may be reluctant to switch to a different one.
The market for online clothing rentals was valued at US$ 1,215 million in 2021 and is
projected to increase at an average yearly growth rate of 10.6 per cent from 2022 to 2027 to reach US$
2,247 million by 2026 (Ltd, M. D. F, 2022). By the end of 2027, the global online clothing rental
market is anticipated to generate revenues of roughly US$ 2,143.8 million, expanding at a CAGR of
10.2 per cent (Thomas, 2021). Given that companies like Rent the Runway have a market share of
around 5% in the global online rental market, we have calculated that Style to Your door can expect to
capture a market share of 1.5%.

Competitor
Our company Competitor 1 Competitor 2 Competitor 3
Analysis

Company Style to Your Door Zalon Litchy Nuuly

Location Amsterdam Berlin Amsterdam Philadelphia

Revenue 57,830 € $32.7 Million N/A $26 Million

Founded 2022 2015 2019 2019

Employees 5 205 10 99

​Our mission is to
bring convenience We're Nuuly.
to people who have We're a curated
Mission difficulty shopping Litchy help you destination for
offline due to their save time, money anyone who loves
own circumstances, Your style expert, and space in your fashion and is
or people who want personal advice, closet, but above exploring how to
to try various styles and trusted all, light up festive wear, buy and sell
of items that suit convenience of moments with it in ways that are
their taste. Zalando incredible items. gentler on the
planet—and their
bank accounts.

Clothing
Services Rental clothing Style advice Rental clothing subscription
website service website service
 big selection of
ecologically clothes, excellent sustainable,
sustainable, having distribution promotes circular
excellent services, economy, unique
Strengths relationships with available in 6 selection of event
suppliers, and countries, large wear offers new as well
providing the customer base as vintage options,
chance to test the due to Zalando multiple lifestyle
marketability of categories, option
clothing to purchase

selection of
existence of rival clothes only from
companies that Zalando, no unlimited
offer comparable employees have return option,
Weaknesses services, a reliance to call customers only for women, limited to 6 items
on suppliers, and a individually, purely focused on per box, spans
need for ongoing doesn’t include event wear, small high customer
technological vintage/ used target market, high acqusition and
upkeep clothing dry cleaning costs, shipping costs

Price 50€ - 200€ 9.95€ 30 € - 300 € $88

The economics of the business:

This section is going to introduce the financial part of Style to Your Door business plan and
dive into more detail in the financial projections section. The financial section of the business plan
highlights one of the key components around which the company is formed. For its business to
"break-even" and eventually generate a profit, we will look into the fundamental logic for how
revenues will be created and how many of our subscriptions should be sold.
The core of the business is to provide textile products and fashion guidance via subscription
for individuals who are interested in clothes but do not have the time and energy to choose what to
wear every day. There are two principal revenue streams in the business: subscription service fee
(starting from 50 euros) and purchasing fee when customers buy products. The core revenue driver is a
high-quality algorithm for selecting clothes and making customized boxes because fashion items need
to satisfy customers’ wants to profit from subscription services.
Based on the industry analysis, the business’ initial sales are discussed and estimated above in this
paper. The average variable cost is €28.80 per monthly rental clothes plan and the average price is
€120. So, the contribution margin is €120 - €28.80 = €91.2.
Style to Your Door will be offering a premium fashion guideline and high-quality items to
fulfil the specific needs in a textile market; therefore, instead of fixating on fully driving down the
costs, its focus lies on being value-driven and providing a high-quality service. The variable costs
consist of the cost of fashion items from suppliers, cost of packaging and delivery per unit. Fixed costs
include marketing costs, the salary of employees, the rent of the warehouse where inventory would be
stored and app and website maintenance costs. Additionally, developing an algorithm to create
personalized boxes of clothes and the costs of delivery trucks are part of start-up costs (table 2). High
variable expenses and low to moderate fixed costs are a result of the nature of the firm. Even though
the company's operating leverage is on the lower end of the spectrum and the break-even point can be
reached pretty quickly, it still might take some time.

Table 1: Variable costs and fixed costs

Delivery costs (average of €11,40/hour
and 20 minutes per delivery) (€11,40/3) = €3.80
Clothes costs (€5*5) = €25
Total average variable costs (per box) €28.80

Employee salary 2400*6 workers * 12 months = €172.800

Marketing costs $68.370
Rent of warehouse 1250m^2 * €7.8m^2 * 12 months = €117.000
App and website maintenance costs $3.400
Total fixed costs (per year) $361.570,00
Table 2: Start-up costs
Delivery Trucks * 4 €14.750,00*3 = €44.250,00
Algorithm development costs 11.500,00
Total Start-up costs 55.750,00

The total estimated fixed costs per year is $361570 which can be found in table1. The
break-even point for Style to Your Door is, therefore; $361570 / (€120 - €28.80) = 3964.58
The number means that we will have to sell 3965 subscriptions in a year to break even at the current
average selling price of $120 per unit. Based on a 52-week year, the amount to the sale of 77
subscriptions per week is on average. Once more than 77 subscriptions are purchased per week on
average, Style to Your Door will start to make a profit.

Marketing plan:
Style to your door will concentrate on developing a clientele consisting primarily of
fashion-forward and time constraint women and men. Our service specialises in the concept of
customised clothing boxes which save time and hassle when selecting clothes for various occasions.
Hereby the main point of differentiation is the customization aspect that will set the company apart
from rivals. The boxes range from 50€ for the basic box to 200€ for the VIP box. Customers will get
charged monthly and can unsubscribe from the service at any given time. Making the service
accessible to a broad range of people with different budgets without the need for a minimum
subscription time. Our service is easily accessible through our website and app where the box will
conveniently be shipped to their home. New customers will get a 20% discount on their first box and
can get another 10% discount by referring a friend. The target audience will be reached through
advertisements on various social media platforms such as Instagram and Tiktok to directly target a
broad amount of customers.

Design and Development plan:

The clothing available for rental would be acquired through various vintage clothing suppliers
such as Bulk Vintage Wholesale or Rerags Vintage Clothing Wholesale, as well as some individual
suppliers. The clothes would be selected by our employees to maintain a curated selection.
The essential components of our business that will help create a valuable product will be our
website and our app. Hence, a lot of effort will be put into setting these two portals up with them being
customer-friendly and alluring as a target. Diving deeper, two additional components of great
importance are the algorithm picking out suitable clothes for the customers as well as the available
clothes themselves being on-trend and to the customer’s liking.
To be able to set up the algorithm, a team including both data specialists as well as stylists are
needed. Through their extensive knowledge of the subject and the use of panels, the algorithm will be
fed. Once the algorithm has been set up, the team of stylists can be narrowed down to a small team of
two to three to be able to keep it aligned with the trends.
The website includes the main page with all information required. Through the main page, the
customer can be informed about who we are and what we do, as well as learn about the subscription
types we offer. Moreover, through the main page, the user will be encouraged to sign up and take the
online quiz that is based on the algorithm set up by the team of data specialists and stylists (Figure 3)
through which we can gain data about their personal preferences and the user can learn more about
their personal style. In this way, the algorithm will constantly be reinforced.
Figure 3.

Note. An example of what the style quiz will look like on the website
 The website and app will be developed in a similar colour scheme to create a brand identity
and condition the users to associate the colours with Style to Your Door.
The approval of the final version of the website, which is our only sales channel, is planned
for the end of August. Currently, the website provides a good overview of how everything will look
stylistically and some basic mechanisms behind the website. The link to the website mockup:
https://tsuruokamomoka.wixsite.com/styletoyourdoor.
After having taken the quiz and picking out clothes to their liking, the contents of the box are
final and ready to be packed and shipped. The box will be neatly folded and put in a carton box. The
carton box will be filled by one of the pickers in the fulfilment centre. During the packing process, the
clothes are misted with Style to Your Door’s signature scent and after being put in the box, the clothes
are topped by a piece of tissue paper. Both are meant to give the customers a sense of luxury.

Operations Plan:
Development Phase:
To be able to start our business, several departments need to be set up and processes put into
place. This can be divided into our office on the one hand, and the shipping department, which we will
outsource, on the other hand. Before being able to house our staff, we ought to find a suitable office
location preferably close to Amsterdam. At our office, the team working on curating our selection of
clothes and responsible for feeding the algorithm will be housed. It all starts with the team of stylists
building our stock filled with clothes and accessories from previous collections. These clothes will
have to be stocked in our external warehouse as we don’t want to put money towards building and
setting up our warehouse as a startup. Once input has been delivered, the data analysts will combine
the stylists’ knowledge with their expertise and create a self-enforcing algorithm. One of the risks is
letting the stylists and data analysts go once the business has been built and the operation is running,
hence we want to keep a (smaller) team that makes sure the algorithm is being fed with on-trend
pieces as well as reinforcing the algorithm based on customers’ buying habits.
We want to join Fashion Group International inc. to stay visible and connected to the fashion
industry’s bigger players to make sure we have the right partners whose clothes we stock our
warehouse with. We would like to start with an amount of 20 vendors to collaborate with. Some in
different industries like sports apparel, accessories, party wear and day-to-day clothes.
Once the algorithm has been fully set up, the boxes are ready to be filled. As mentioned, the
stock is put away in an external warehouse that we’re partnering with. The orders that have been
made, will be put forward to them as they’re responsible for packaging and shipping as well. As
previously stated, the boxes will be filled with the chosen items as well as topped with a piece of paper
and sprayed with perfume. To make sure the boxes are filled with what the customer orders, we
manage a four-eyes principle in which the packed clothes are compared with the shipping note by
employees with poor job prospects (distance to the labour market). All to limit the number of mistakes
as much as possible. Once the sales increase and revenues grow, we’re planning on building our
warehouse which has an automatic system with a low error rate.
We desire the external warehouse to have the employees working in a 2-shift system. This will
minimise extra labour costs. If the amount of orders coming in becomes too big to be handled during
these hours, we want to have the option to scale to a 3-shift or even 5-shift system. This will all be
written down in the contract agreed upon by our partner. The raw materials like the boxes, perfume
and pieces of tissue paper needed in the packaging process, will be bought by STYD at a supplier to
stay as independent as possible from our shipping partner in case of having to switch partners due to
quality or capacity problems. They will ship the raw materials directly to our shipping partner instead
of using intermediaries.
Before packing and shipping the boxes, we plan to test the process and feasibility by making
50 boxes. These boxes will be shipped to individuals out of a consumer test panel. They will have to
answer basic questions about the content, shipping, packaging and service as well as send back one or
more products to test the return process. After having completed the test phase, operations will start on
an on-order basis.

Note. BPMN diagram of Style to Your Door operations

Managing team:
We need an organizational structure that allows the value generated from products and
services delivered to our customers to seamlessly convert to revenue and a personnel plan that meets
both internal and external needs at any time in 'style to your door' operations.

First, we present the organizational structure with the role of the management of the founder.
After depicting the structure, ownership structure and founders’ salaries will be mentioned.
Organization, Management and Ownership

The company's internal structure is as follows: Product management, R&D, Sales and
marketing, Data management and Operations. Core to 'Style to your door' activities is our R&D
department which has to find and manage retail partners and offer online platform services. The data
management part is responsible to supervise customers' information and conducting customer analysis.
Each founder is directly responsible for one of the functional units. In the following, we
describe the founder's role for each department as well as the function of the ownership structure.

Product Management [Founder 1]

The Product Management department is responsible for the entire process of receiving the
product from the supplier and delivering the product to the customer. This unit is closely connected
with the Sales and Marketing department since PM has to supervise the products and services to
deliver to our customers. PM's other tasks are technical support and cooperation with key partners
such as technology companies which can help set up algorithms and shipping companies.
Product Management is led by [Founder 1] who majored in the supply chain. Founder 1 is the
general manager representing the company as a chief and started working full-time in 'Style to your
door' in April 2022.

R&D [Founder 2]
The R&D department deals with research and development whole business such as App and
website development and maintenance. Website management is performed by the Sales and Marketing
Department together. Other important responsibilities include finding retail partners and managing the
relationship with suppliers. Managing suppliers is one of the most responsible work because it is the
primary task of our business.
The leader of the R&D unit is [Founder 2] who holds a Business Administration degree with
entrepreneurship specialization. [Founder 2] is an expert in managing and planning the business tasks
of our company. [Founder 2] join as a full-time worker in May 2022.

Sales and Marketing [Founder3]

The Sales and Marketing units cover overall customer and product services. Tasks belonging
to the scope of Sales and Marketing include social media marketing, customer relationship
management and stock, purchase and selecting fashion items. Other responsibilities include checking
website and App services with the R&D department. Because it is an online-based platform, web
service management is one of the main tasks.
 Head of the 'Style to your door' department is [Founder 3] who studies business as a major and
communication science as a minor. She had experienced work in the fashion industry for a few years.
[Founder 3] started working in May and will start working full-time in July 2022.

Data Management [Founder 4]

The Data Management department is responsible for the organization of data processing
including internal and external. The tasks belonging to this unit are legal support and customer
information management. The protection of individual data is the most important responsibility of this
unit. Other tasks are analyzing customers' product preferences and linking the data to algorithms.
Therefore, it is closely related to the Product Management department that manages the algorithm
cooperate company.
[Founder 4] is the head of the Data Management unit. She is a BSc in Business Administration
and studying Data Analysis. With [Founder1], she started working for this company in April 2022.

Operations [Founder 5]
The operation department covers all operation activities including financial tasks. The main
tasks of these units are accounting, financial analysis and inventory checks as well as physical
operation. This department also has responsibility for Human Resources.
Operations units are led by [Founder 5], who studied Finance as a specialization and take
Human resource management as a minor. She joined this company in May 2022 as a full-time worker.

Ownership structure & founders’ salaries

The 'Style to Your Door' company issued 10,000 common shares in its founding. Among
10,000 shares, 8,000 of the shares are distributed to the founders. The rest of the 2,000 shares will be
held in the treasury for future use. Distribution is done appropriately through meetings, and although
everyone has equal responsibility, the meeting is organized by the chief manager [Founder 1].
 To motivate founders and improve work efficiency, it was agreed by founders that 40% of the
shares would be issued under vesting conditions. We have set the vesting period at three years, which
means that it will take 3 years for the company's shares to become completely the founder's shares. In
addition, the company evaluate the company's performance and pay the vesting at the same time by
designating quarterly. After the business performance evaluation is conducted every quarter for 3 years
if the target performance is reached, a total of 1/36th (2.78%) of the promised vesting stock will be
given to founders.
When it comes to income, all the founders agreed to work at a full-time salary of €46,000 per
year, which translates to an hourly rate of €25.55. The detailed amount of salary may vary slightly
depending on performance and past efforts. Since the company size is small and it is difficult to hire
other employees with limited initial investment funds, the founders agreed to work with minimal staff
for two years after the start-up and hire employees based on whether the company is growing.

Overall schedule:
Gantt Chart of Style to Your Door

Crowdfunding
https://www.kickstarter.com/projects/1493306840/1641637329?ref=a98kqq&token=3e502bf3

Financial projections:
The section contains the pro forma income statement, balance sheet, and cash flow statement.
A table showing profitability, liquidity, and financial stability ratios is also included below the
projected financial statements. In order to create the pro forma financial statements, we conducted a
thorough analysis of the industry, its development, and the expected economic conditions in the next
two years. In order to break down every expense related to our business, we also examined every
aspect of our operating processes.

Income statements
December 31, 2023 December 31, 2022

Net sales €516,400 €382,800

Cost of sales 260,500 206,600

Gross profit 255,900 176,200

Operating expenses

Selling, general expenses 104,500 86,400

Depreciation 4,300 3,800

Operating income 147,100 86,000

 Other income

Interest income 1,300 900

Interest expense (10,140) (7,020)

Other income (expense), net 8,700 1,100

Income before income taxes 146,960 80,980

Income tax expense 41,220 23,150

Net income 105,740 57,830

Earnings per share

Balance Sheet (1/1)

Assets December 31, 2023 December 31, 2022

Current assets

Cash and cash equivalents 41,900 36,400

Accounts receivable, less allowance 29,900 30,200

for doubtful accounts

Inventories 12,300 10,800

Total current assets 84,100 77,400

Property, plant, and equipment

Land - -

Buildings and equipment 297,000 260,200

Total property, plant, and equipment 297,000 260,200

Less: accumulated depreciation 23,000 17,800

Net property, plant, and equipment 274,000 242,400

Total assets 358,100 319,800

Balance Sheet (1/2)

Liabilities and shareholders' equity December 31, 2023 December 31, 2022

Current liabilities
Accounts payable 16,400 20,200

Accrued expenses 6,100 5,500

Total current liabilities 22,500 25,700

Long-term liabilities

Long-term debt 168,000 155,000

Long-term liabilities 57,000 46,000

Total liabilities 225,000 201,000

Shareholders' equity

Common stock 10,000 10,000

Retained earnings 360,740 255,000

Total shareholders' equity 370,740 265,000

Total liabilities and shareholders' equity 595,740 466,000

Cash Flows
December 31, 2023 December 31, 2022

Cash flows from operating activities

Net income 105,740 57,830

Additions (source of cash)

Depreciation 4,300 3,800

Decreases in accounts receivable 2,200 900

Increase in accrued expenses 1,370 1,100

Decrease in inventory 980 760

Subtractions (uses of cash)

Decrease in account payable (3,100) (2,400)

Total adjustments 5,750 4,160

Net cash provided by operating activities 111,490 61,990

Cash flows from investing activities

Purchase of building and equipment (220,050) (186,600)

Net cash flows provided by investing (220,050) (186,600)
activities

Cash flows from financing activities

Proceeds from increase in long-term debt 113,000 90,100

Net cash flows provided by financing 113,000 90,100

activities

Increase in cash 4,440 (34,510)

Cash and cash equivalents at the 33,800 29,100

beginning of each year

Cash and cash equivalents at the end of 38,200 (5,410)

each year
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