Vita Bakes Final

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Unique Bakery Business Plan complete and for Sale or seeking investors

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Vita Bakes Final

  1. 1. Inspiration/VitaBakes Steven Gara 305.491.0417 www.vitabakes.com • info@vitabakes.com SGBIZSERVICES, INC.  1    
  2. 2. Business Plan / Investment Prospectus Non-Disclosure Agreement By proceeding within this document (the “Plan”), you, any company, entity or organization that you are employed by or are otherwise the agent of, and all other employees thereof (collectively, “Recipient”), and Inspiration/VitaBakes agree that: • The plan has been submitted by Inspiration/VitaBakes to Recipient solely for the purpose of evaluating a potential investment by Recipient in Inspiration/VitaBakes. The plan is not for use by any other person(s) or for any other purpose, and may not be reproduced, disseminated or otherwise disclosed to any person(s), other than any employees or agents of Recipient, including, without limitation, any legal counsel or accountants of Recipient, who have a need to know the contents of the Plan in connection with the evaluation of a potential investment in Inspiration/VitaBakes (collectively, “Representatives”) who agree to the confidentiality provisions herein. Recipient shall be responsible for any and all acts of its Representatives. • Recipient agrees to hold in the strictest confidence, and not use or disclose to anyone other than the employees of Recipient, its Representatives and Inspiration/VitaBakes, the information contained in the Plan or supplied to the Recipient, orally or in writing, by Inspiration/VitaBakes (the “Confidential Information”). Confidential Information includes, without limitation, concepts, cost data, techniques, designs, work in progress, and other technical know-how; the identity of customers, suppliers, and subcontractors of Inspiration/ VitaBakes; financial, marketing and other business information; or any other trade secrets of Inspiration/VitaBakes disclosed by Inspiration/VitaBakes to Recipient or its Representatives; or any summaries, analyses or other documents bases thereon. Confidential Information further includes any information Inspiration/VitaBakes has received from others, which Inspiration/ VitaBakes is obligated to treat as confidential or proprietary. If the Recipient has any questions as to what comprises Confidential Information, the Recipient agrees to consult with an officer of Inspiration/VitaBakes prior to making any disclosure thereof. • It is further agreed that any violation of this agreement by the Recipient or its Representatives will cause irreparable injury to Inspiration/VitaBakes and that Inspiration/VitaBakes shall be entitled to extraordinary relief in court, including, but not limited to, temporary restraining orders, preliminary injunctions, and permanent injunctions or other equitable relief. If court proceedings are required to enforce any provision or remedy any breach of this agreement, Inspiration/VitaBakes shall be entitled to an award of reasonable attorney’s fees incurred in connection therewith. The laws of the State of Florida shall govern this agreement. If any provision of this agreement is void or is so declared, such provision shall be severed from this agreement, which shall otherwise remain in full force and effect. This business plan does not constitute an offering. Any offering will be made by a definitive offering agreement. This plan has been submitted on a confidential basis solely to determine whether selected individuals or organizations have an interest in making  2 an equity investment.  
  3. 3. Table of Contents 3 Table of Contents 12 Multiple Revenue Streams 4 Executive Summary 13 ive Forces Analysis Standard Forces F 5 Business Overview Model 5 Value Proposition 14 SWOT Analysis 5 Business Offering 15 Strengths 6 Products 15 Weaknesses 6 Standard Offerings 15 Opportunities 6 Specialized Offerings 15 Threats 6 Enhanced Offerings 16 Management Summary 7 Target Market Profile 17 Financial Summary 7 Market Size 8 Industry 8 Large Factories 8 S mall Independent Bakeries 8 Chain Stores 11 Competitive Landscape 12 Potential Market Opportunities 12 Market Expansion 12 Market Demand Drivers 12 Unique Concept 12 Quality Products 12 Trend-Setting Industry 12 Diverse Products  3  
  4. 4. Executive Summary The bakery industry is one that has been Inspiration/VitaBakes will be the furture of is existing for centuries. From hand-made baked goods. Our strategy includes many artisan creations to current advanced options and multiple revenue streams. The factories, baked goods are a staple within all initial outlet will be carry-out only. Customers societies and that trend is not decreasing. can view our products and purchase them From breads to desserts, people love the fresh in the store. Our facility will house bakery approach of a local bakery. production for retail items and catering products. Our next generation model will Enter Inspiration/VitaBakes. Inspiration/ consist of the same facility with an added VitaBakes is an innovative local-bakery dine-in cafe. The cafe will also feature approach that provides ‘old world’ tradition beverages such as coffee and teas. This with a twist. That twist is offering products ‘cafe’ model will be the basis for our future that cater to today’s society. Whether it be franchise market. a sugar-free offering ar providing gluten-free menu items, Inspiration/VitaBakes will prove Inspiration/VitaBakes will be the future of to be the source for healthy baked goods. baked goods! Inspiration/VitaBakes is a community theme business and will use local products when available. This build trust within the community and provides customers with a sense of support within the community.  4  
  5. 5. Business Overview Bakery will launch its first location in South Our value propositions include: Florida, to serve consumers and build a 1) We bake regular items but also cater to the local brand which can be leveraged into food allergy population. building additional locations. Bakery will build a following through advertising, referral 2) Our products also include No Sugar or marketing, wholesale relationships and by Sugar Alternative baked goods building local following. 3) All items offered also contain at least 25% of Recommended Daily Allowances of most Value Proposition nutritional vitamins, hence the name “Vita Our three main categories consist of Regular, Bakes” Low/Sugar Alternative and also the No Gluten segments of products. Business Offering The business model for Bakery is to provide an innovative product line that appeal to many demographic groups. Convenience Health Easy & Healthy Easy & Guilt Enjoyable Free   Pleasure5  
  6. 6. Products Enhanced Offerings • Cakes Our enhanced offerings are exactly that, • Muffins enhanced. These offerings will include variations of our standard and specialized • Cookies offerings but they will include additional • Brownies ingredients such as: • Pastries • Vitamin enriched powders Our offering will focus on three main channels • Nutritional supplements of baked goods. These channels include: • Herbs and organic ingredients • Standard Offerings • Specialized Offerings • Enhanced Offerings Standard Offerings Standard offerings will include your typical baked goods that are created using conventional ingredients. Similar to the so- called ‘sugar crowd’, these offerings contain standard mixtures that include sugar, flour, wheat, dairy and common additives. Specialized Offerings Our specialized offerings are culture- focused. These focuses are based on current market and health trends as well as health requirements. There are many individuals that desire and/or require healthier options with baked goods.  6  
  7. 7. Target Market Profile Market Size The market has repeatedly seen sales increases over the past few decades, The US bakery industry, consisting of over especially since 1990 (illustration provided 2,800 commercial bakeries, has combined below). annual revenue of about $30 billion, along with about 6,000 retail bakeries with combined annual revenue of about $3 billion. Within the bakery industry the 50 largest companies generate 75 percent of revenue with the retail side of the industry being highly fragmented: the 50 largest companies generate about 15 percent of revenue, and the typical company operates just one facility. Consumer Price Index for All Urban Consumers: Cereals and bakery products Source: U.S. Department of Labor: Bureau of Labor Statistics 280 240 200 (Index 1982-84 = 100) 160 120 80 40 0 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 Shaded areas indicate US recessions. 2011 research.stlouisfed.org  7  
  8. 8. Industry Small Independent The bakery industry is one of the staples Bakeries of most communities. Baked items and These are typically family-owned or ‘one- man confections continue to be a strong performer show’ establishments. even during recessionary times. There are three main categories of bakeries in the U.S. Chain Stores These are: This category includes franchises and • Large Factories supermarket/grocery outlets. • Small Independent Bakeries • Chain Stores Large Factories Large factories consist of major manufacturers such as Hostess and Sara Lee but also include factory production for major retail outlets such as Wal Mart and Sam’s Club. Consumption Rate of Bakeries 14% 54% 32% n Low Consumers n Medium Consumers n Heavy Consumers  8  
  9. 9. Individual Desserts Establish Foothold in Cake Category Total U.S. cakes dollar share by subcategory 52 weeks ending 10/31/09 Wedding cakes 0.3% Decorated cakes 34.2% Mousse cakes 0.7% Dessert cakes Tortes 0.9% 17.3% Specialty dessert cakes 1.7% Cupcakes Ice cream cakes 6.1% Cream/ 9.8% Snack Pudding Individual desserts 6.5% cakes cakes 7.1% 8.8% Cheesecakes 6.6% Source: Perishables Group In recent years with the growing consumer awareness of the inherent connection Since consumer needs between certain foods and diseases, the bakery industry is becoming increasingly are constantly evolving, health oriented. As consumers try to it is imperative for incorporate value-enhanced products into manufacturers to closely their diet, bakeries are providing innovative options deliver products that suit the tastes of monitor consumer the avidly health-conscious customer. Whole purchasing patterns and meal products as well as natural, nutritionally demographics to deliver enhanced foods are the preferred choices. products in sync with these developments.  9  
  10. 10. The indulgence factor has created an baked goods. Foods fortified with ingredients increase in the demand for gourmet and such as vitamins, minerals, Omega-3 and -6 specialty products. While supermarkets fatty acids, prebiotics, and probiotics have and malls, which have become the chosen bolstered the demand for baked goods, destinations for many shoppers, account fetching more revenue for this market. These for a major portion of bakery industry sales trends have spawned a whole gamut of there is still a tremendous demand local, products, especially low-fat, sugar-free items, target-focused establishments. Food service providing an interesting and diverse mix of convenience stores and small retail outlets health, convenience, and indulgence. comprise the other distribution points for Against the Grain A new study shows that people can have a reaction to gluten even if they don’t have a wheat allergy or celiac disease. Gluten Sensitivity Wheat Allergy Celiac Disease Prevalence 6% of U.S. population Less than 1% of 1% of U.S. population children; some adults after exercise Symptoms Some stomach issues, Hives, nasal Bloating, diarrhea, also headaches, balance congestion, nausea malnutrition, problems, many others and anaphylaxis osteoporosis, cancer Triggers Gluten, amount Wheat proteins, but Even small amounts of unknown may coss react with gluten other grains Treatment Gluten-free diet, Avoid wheat products Strict gluten-free diet although small amounts may be tolerable Source: WSJ reporting  10  
  11. 11. Competitive Landscape Sara Lee Corp: Operating Profit by Segment 45 FY2010 (adjusted), Total = US$ 1 178 min 60 n Intl. Beverage (coffee & tea)* 149 n N. American Retail (meats, frozen desserts)* n N. American Foodservice (meats, pastries, coffee & tea)* 586 n N. American Fresh Bakery n Intl. Bakery 338 *core businesses  11  
  12. 12. Potential Market Opportunities Market Expansion Trend-Setting Industry The Bakery offering will be a defining Market Demand Drivers standard with new bakery outlets. Our combination of unique offerings in a retail Unique Concept and wholesale environment gives us the opportunity to define a new niche in the Our concept is unique in the sense that we bakery industry. are providing a very broad offering but doing so with a targeted focus. Diverse Products Quality Products Multiple Revenue Streams Our baked goods will use only the highest quality ingredients, locally produced when available.  12  
  13. 13. Five Forces Analysis Standard Forces Model Absolute Cost Advantages None Brand Identity None Barriers Proprietary Learning Curve None Access to Distribution None To Access to Inputs None Proprietary Products None Entry Government Policy Minor Threat Economies of Scale Minor Threat Capital Requirements None (if needed) Threat Client Inclination to Substitutes Minor Switching Costs None of Threat Competition Price Performance None Bargaining Leverage None Brand Identity None Bargaining Power of Client Volume Minor Price Sensitivity None Clients Threat Product Differentiation Minor Client Information None Threat Resource Concentration Minor Switching Costs of Firms in the None Bargaining Threat Industry Power of Differentiation of Inputs None Presence of Substitute Inputs None Company Threat of Forward Integration None Exit Barriers None Industry Growth None Degree Industry Concentration None Brand Identity None of Rivalry Fixed Costs/Value Added None Diversity of Rivals None  13  
  14. 14. SWOT Analysis STRENGThS l The ConCepT l LoCaTion wEakNESSES l LaCk of funding oppoRTuNiTiES l The demands of The markeT ThREaTS l new markeT enTries  14  
  15. 15. Strengths Opportunities The concept. Whereas most of the The demands of the market. As competitors in the segment that VitaBakes the economy rebounds from what insiders will be entering offer mainstream food have dubbed, “The Great Recession”, choices, VitaBakes will bring a much broader consumers have taken on a renewed mindset scope of menu options. The novelty of the that includes new consumption patterns, concept will at the very least drive traffic and including those related to dining and food place the restaurant in a strong position to choices. Gone are the days when consumers drive a sale that adds to the profit margin. would automatically flock to traditional meal Location. Miami/Ft. Lauderdale is the choices; in its place a new type of consumer ideal geographic location to launch a concept that demands out of the box yet healthy meal of this type. The consumer tastes are as options. diverse as the city itself. The diversity in tastes will give VitaBakes the opportunity to gain Threats traction in the marketplace and drive profits New market entries. With a that can be used for expansion and any debt successful model such as VitaBakes new service that might be incurred. market entries pose a threat should they attempt to enter the marketplace. Weaknesses Lack of funding. The lone weakness in an otherwise sound business model is the lack of funding. When funding is acquiesced, founder Steven Gara is confident that he can guide the VitaBakes venture towards a position of market leadership and long-term viability.  15  
  16. 16. Management Summary Steven J. Gara, Originally developed by Bill Smith at Motorola MS, PHR, CBAP in 1986, the Six Sigma Training program was created using some of the most innovative Mr. Gara, owner of SGBIZSERVICES, is a multi quality improvement methods from the faceted business professional with a wide preceding six decades. The term “Six Sigma” array of skills and experience in a variety of is derived from a field of statistics known as industries including Software, Entertainment process capability. (including being a musician), Travel, Banking, Insurance and Tax Lien investments. These credentials make both him and the Educationally, he holds a Bachelor’s Degree company uniquely qualified to handle a from Temple University and a Master’s Degree variety of disparate business issues and offer from Cornell University. He has over a total of a diverse array of services. 15 years of experience combined in Human Resources and Information Technology consulting, has an entrepreneurial personality and a creative side that allows “thinking out of the box” for any given issue. The ability to think creatively and to step back and see the bigger picture is what sets him and the company apart from others. He is also a Green Belt in Six Sigma principles and this experience helps his clients to maximize their profits and minimize losses.  16  
  17. 17. Financial Summary Assumptions: M1Y1 Jan-12 Restaurants to be added 5 Current Facilities 0 Rate at which restaurants are launched 1 per year to 4 additional units Site Funding Raised per added facility: $400,000 Total Site Funding $400,000 Debt/Equity Split of Site Funding 90% / 10% Total Site Funding - Debt $40,000 Total Site Funding - Equity $360,000 Total Holding Company Equity Raise $40,000 Depreciation Time Period 420 Months Interest Rate on Debt 6.5% Amortization Period 300 Months Principal Payment Rate on Debt - Annually 3.5% Equity Guaranteed Annual Return 8%  17  
  18. 18. 18 Profit and Loss Year 1 Year 1 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Totals   Operating Income: Initial Location $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $306,675 $306,675 $306,675 $2,945,025 Location #2 $- Location #3 $- $- $- $- $- $- $- $- $- $- $- $- $- Location #4 $- $- $- $- $- $- $- $- $- $- $- $- $- Location #5 $- $- $- $- $- $- $- $- $- $- $- $- $- Total Operating $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $306,675 $306,675 $306,675 $2,945,025 Income: Expenses: Salary/Wages $55,000 $101,250 $101,250 $101,250 $101,250 $101,250 $101,250 $101,250 $94,500 $119,603 $116,537 $113,470 $1,207,860 Total Summary $45,000 $105,750 $105,750 $105,750 $105,750 $105,750 $103,500 $103,500 $103,500 $141,071 $141,071 $141,071 $1,307,462 G&A Other Operating $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $9,200 $9,200 $9,200 $88,351 (3% of Income) Total Operating $106,750 $213,750 $213,750 $213,750 $213,750 $213,750 $211,500 $211,500 $204,750 $269,874 $266,807 $263,741 $2,603,672 Expenses: EBITDA $118,250 $11,250 $11,250 $11,250 $11,250 $11,250 $13,500 $13,500 $20,250 $36,801 $39,868 $42,935 $341,353 EBITDA (%) $1 5.00% 5.00% 5.00% 5.00% 5.00% 6.00% 6.00% 9.00% 12.00% 13.00% 14.00% 11.59% Other Expenses Depreciation/ $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $11,429 Amortization Interest Expenses $212 $212 $212 $212 $212 $212 $212 $212 $212 $212 $212 $212 $2,548 Total Other $1,165 $1,165 $1,165 $1,165 $1,165 $1,165 $1,165 $1,165 $1,165 $1,165 $1,165 $1,165 $13,977 Expenses Net Income: $117,085 $10,085 $10,085 $10,085 $10,085 $10,085 $12,335 $12,335 $19,085 $35,636 $38,703 $41,770 $327,377 Profit Margin 52.04% 4.48% 4.48% 4.48% 4.48% 4.48% 5.48% 5.48% 8.48% 11.62% 12.62% 13.62% 11.12% 
  19. 19. 19 Profit and Loss Year 2 Year 2 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Totals   Operating Income: Initial Location $306,675 $315,875 $315,875 $315,875 $315,875 $315,875 $315,875 $315,875 $315,875 $320,085 $320,085 $320,085 $3,793,932 Location #2 $225,000 $216,061 $236,325 $254,093 $266,460 $286,163 $273,853 $273,853 $273,853 $273,853 $273,853 $273,853 $3,127,220 Location #3 $- $- Location #4 $- $- $- $- $- $- $- $- $- $- $- $- $- Location #5 $- $- $- $- $- $- $- $- $- $- $- $- $- Total Operating $531,675 $531,936 $552,200 $569,968 $582,335 $602,038 $589,728 $589,728 $589,728 $593,938 $593,938 $593,938 $6,921,152 Income: Expenses: Salary/Wages $226,939.50 $229,209 $231,501 $233,816 $236,154 $238,516 $240,901 $243,310 $245,743 $248,200 $250,682 $253,189 $2,878,161 Total Summary $141,776 $233,930.16 $235,100 $236,275 $237,457 $238,644 $239,837 $241,036 $242,242 $243,453 $244,670 $245,893 $2,780,313 G&A Other Operating $15,950 $15,958 $16,566 $17,099 $17,470 $18,061 $17,692 $17,692 $17,692 $17,818 $17,818 $17,818 $207,635 (3% of Income) Total Operating $384,666 $479,097 $483,167 $487,190 $491,081 $495,221 $498,430 $502,038 $505,676 $509,471 $513,171 $516,901 $5,866,109 Expenses: EBITDA $147,009 $52,839 $69,033 $82,778 $91,254 $106,817 $91,298 $87,690 $84,052 $84,467 $80,767 $77,037 $1,055,044 EBITDA (%) 27.65% 9.93% 12.50% 14.52% 15.67% 17.74% 15.48% 14.87% 14.25% 14.22% 13.60% 12.97% 15.24% Other Expenses Depreciation/ $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $11,429 Amortization Interest Expenses $205 $205 $205 $205 $205 $205 $205 $205 $205 $205 $205 $205 $2,459 Total Other $1,157 $1,157 $1,157 $1,157 $1,157 $1,157 $1,157 $1,157 $1,157 $1,157 $1,157 $1,157 $13,887 Expenses Net Income: $145,852 $51,682 $67,876 $81,621 $90,097 $105,660 $90,141 $86,533 $82,895 $83,309 $79,610 $75,880 $1,041,156 Profit Margin 27.43% 9.72% 12.29% 14.32% 15.47% 17.55% 15.29% 14.67% 14.06% 14.03% 13.40% 12.78% 15.04% 
  20. 20. Profit and Loss Year 3 Year 3 Annual Annual Q1 Q2 Q3 Q4 Totals Totals Totals Operating Income: Initial Location $960,255 $960,255 $960,255 $1,003,368 $3,884,133 $4,013,472 $4,334,550 Location #2 $880,983 $880,983 $880,983 $880,983 $3,523,932 $3,680,100 $3,841,020 Location #3 $861,175 $880,983 $880,983 $880,983 $3,504,124 $3,667,086 $3,827,610 Location #4 Location #5 $- $- $- $- $- $(13,014) $(13,410) Total Operating $2,702,413 $2,722,221 $2,722,221 $2,765,334 Income: Expenses: Salary/Wages $1,150,745 $1,162,252 $1,173,875 $1,185,614 $4,672,486 $4,859,386 $5,053,761 Total Summary $1,109,286 $1,112,060 $1,114,840 $1,117,627 $4,453,813 $4,498,351 $4,543,335 G&A Other Operating $81,072 $81,667 $81,667 $82,960 $327,366 $340,429 $359,693 (3% of Income) Total Operating $2,341,104 $2,355,979 $2,370,381 $2,386,201 $9,453,665 $9,698,166 $9,956,789 Expenses: EBITDA $361,309 $366,242 $351,840 $379,133 $1,458,524 $1,649,478 $2,032,981 EBITDA (%) 13.37% 13.45% 12.92% 13.71% 13.37% 14.54% 16.96% Other Expenses Depreciation/ $2,857 $2,857 $2,857 $2,857 $11,429 $11,429 $11,429 Amortization Interest Expenses $593 $593 $593 $593 $2,373 $2,290 $2,210 Total Other $3,450 $3,450 $3,450 $3,450 $13,801 $13,718 $13,638 Expenses Net Income: $357,859 $362,792 $348,389 $375,683 $1,444,723 $1,635,760 $2,019,343 Profit Margin 13.24% 13.33% 12.80% 13.59% 13.24% 14.41% 16.84%  20  
  21. 21. Statement of Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flows from Operations Net Income: $327,377 $1,041,156 $1,444,723 $1,635,760 $2,019,343 Capital Ex. For Site $400,000 $- $- $- $- Development* Other Capital $- $- $- $- $- Expenditures Depreciation (+) $11,429 $11,429 $11,429 $11,429 $11,429 Total Cash Flows from $(61,195) $1,052,585 $1,456,151 $1,647,188 $2,030,771 Operations Cash Flows from Investing Cash Investments $- $- $- $- $- Investment Returns $- $- $- $- $- Total Cash Flows from $- $- $- $- $- Investing Cash Flows from Financing Equity Investments Received: Equity Investments - $360,000 $- $- $- $- Site Development Equity Investments - $40,000 $- $- $- $- Holding Company Debt Capital Received $40,000 $- $- $- $- Dividends/Shareholder $32,000 $32,000 $32,000 $32,000 $32,000 Distributions - Guaranteed Return Repayment of Debt $1,400 $1,351 $1,304 $1,258 $1,214 Total Cash from $406,600 $(33,351) $(33,304) $(33,258) $(33,214) Financing Cash at the Beginning $500,000 $845,405 $1,864,639 $3,287,487 $4,901,417 of the Period Cash at the End of the $845,405 $1,864,639 $3,287,487 $4,901,417 $6,898,974 Period * (This represents the funding raised for building each unit at $400,000 per bakery)  21  
  22. 22. Statement of Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flows from Operations Net Income: $327,377 $1,041,156 $1,444,723 $1,635,760 $2,019,343 Capital Ex. For Site $400,000 $- $- $- $- Development* Other Capital $- $- $- $- $- Expenditures Depreciation (+) $11,429 $11,429 $11,429 $11,429 $11,429 Total Cash Flows from $(61,195) $1,052,585 $1,456,151 $1,647,188 $2,030,771 Operations Cash Flows from Investing Cash Investments $- $- $- $- $- Investment Returns $- $- $- $- $- Total Cash Flows from $- $- $- $- $- Investing Cash Flows from Financing Equity Investments Received: Equity Investments - $360,000 $- $- $- $- Site Development Equity Investments - $40,000 $- $- $- $- Holding Company Debt Capital Received $40,000 $- $- $- $- Dividends/Shareholder $32,000 $32,000 $32,000 $32,000 $32,000 Distributions - Guaranteed Return Repayment of Debt $1,400 $1,351 $1,304 $1,258 $1,214 Total Cash from $406,600 $(33,351) $(33,304) $(33,258) $(33,214) Financing Cash at the Beginning $500,000 $845,405 $1,864,639 $3,287,487 $4,901,417 of the Period Cash at the End of the $845,405 $1,864,639 $3,287,487 $4,901,417 $6,898,974 Period * (This represents the funding raised for building each unit at $400,000 per bakery)  22  
  23. 23. Balance Sheet Year / Ending Year 1 Year 2 Year 3 Year 4 Year 5 Assets: Cash and Cash Equivalents $845,405 $1,864,639 $3,287,487 $4,901,417 $6,898,974 Accounts Receivables 0 0 0 0 0 Capitalized Assets: $400,000 $400,000 $400,000 $400,000 $400,000 Accumulated Depreciation: $11,429 $22,857 $34,286 $45,714 $57,143 Remaining value of $388,571 $377,143 $365,714 $354,286 $342,857 Capitalized Assets Total Net Assets $1,233,977 $2,241,782 $3,653,201 $5,255,703 $7,241,831 Liabilities and Owner’s Equity Debt Notes $40,000 $40,000 $40,000 $40,000 $40,000 Accumulated Principal $1,400 $2,751 $4,055 $5,313 $6,527 Repayment Remaining Note Value $38,600 $37,249 $35,945 $34,687 $33,473 Stock Issued - All Classes $400,000 $400,000 $400,000 $400,000 $400,000 Retained Earnings $795,377 $1,804,533 $3,217,256 $4,821,015 $6,808,358 Owners Equity $1,195,377 $2,204,533 $3,617,256 $5,221,015 $7,208,358 Total Liabilities and Owner’s $1,233,977 $2,241,782 $3,653,201 $5,255,703 $7,241,831 Equity  23  

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