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The company owner, Mary Lenton, will use personal funds to finance the start of this business. The monthly cash flow is shown in the illustration, with one bar representing cash flow per month and the other representing the monthly balance.
Since a home office is already established and there is a large area in the basement available for inventory storage, the primary start-up costs are associated with website store design, starting inventory, and licensing approval. A monthly breakdown of the cash-flow analysis, balance sheet, business ratio, break-even analysis, and other financial details are shown in the appendix.


As we gain experience with what the average cost is for Item Fees, Final Value Fees, and PayPal fees, we may need to change the Profit and Loss table to reflect the correct cost. Industry profile ratios based on the North American Industry Classification (NAICS) and Standard Industrial Classification (SIC) data for the Maternity Wear industry.
At this point we have placed high estimates to make sure that we are realistic about the cost of doing business on eBay. We want to make sure that we have enough money to buy some search placements as well as buying "bolded" listings in the eBay search results.


As we sell more items we will adjust the marketing expenses either lower or higher -- depending on what is working for us. Based on our research, we don't expect any problems meeting either of those goals early in our plan.



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