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Display Solutions Inc. 6 <br /> • 4. Operating Plan <br /> DSI is seeking financing to start manufacturing store fixtures in Elk River. The company will <br /> be managed by the three founders and employ approximately 6 people the first six months of <br /> business. The company expects to rapidly outgrow this location and intends to build or lease <br /> a larger building in the Elk River, industrial park. DSI will employ approximated 20 to 30 <br /> workers at the new location. <br /> DSI's business plan requires a total of$300,000. The funds will be used to purchase <br /> equipment,renovate, advertise, and fund the projected negative cash flows during the first <br /> few months of operations. <br /> 4.1 Location <br /> DSI's proposed manufacturing site is located in a light commercial district in Elk River <br /> r Minnesota. The area is properly zoned by the city to allow DSI to conduct all of its <br /> ` manufacturing and related activities. The site is located on a major highway, allowing <br /> excellent truck access for shipping finished product.. The site also is close to a major <br /> airport hub connecting all national and international locations. Also,being centrally <br /> located in the US will give us an advantage with national accounts. <br /> 4.2 Facility <br /> The facility is a newer building of 4,500sq. ft. of the total space. 1,000 square feet is <br /> finished office space,which will be used for sales and administration. The remaining <br /> fah space will be used for manufacturing, assembly, shipping,receiving, and storage. <br /> `era <br /> The facility is not a showroom for potential clients or customers. It is utilized exclusively <br /> for product assembly,marketing, and internal corporate administration. The facility is <br /> located in the hometown area of the company's owners. <br /> The company does not own the building,but has negotiated a year lease with an option to <br /> f early out to accommodate expected growth. The short term lease was established <br /> anticipating the need for additional space. If the building proves adequate,the lease term <br /> may be extended. The annual lease rate is $5.33 per square foot,which is a lower rate <br /> between comparable office and industrial space in the area. <br /> 43 Operating Equipment <br /> The company needs to secure some manufacturing equipment to implement full-scale <br /> manufacturing of store fixtures. Below is a listing of the equipment required by DSI and <br /> their respective costs: <br /> CNC Router (130,000) <br /> Edge bander($34,000) <br /> Compressor($7,000) <br /> Dust collector($4,000) <br /> Fork Lift($8,000) <br /> ID Table saw($3,500) <br />