1. 1
BUSINESS PLAN FINANCIAL SECTION
FRENCH BISTRO
BY: CHRISTINA CECIL
11/17/2014
ACC 604

2. When I was visited family in Seattle Washington I was able to go to Pier 57 which has a
shopping mall with several stories and few places to eat in it. The main places to eat in that
shopping center are Bubba Gump’s Seafood and a little cafe that serves sandwiches. With the
Seattle Area having access to fresh seafood I have decided to open up a French Bistro in the area
in the Seattle, Washington Pier 57 shopping mall.
By being in a good location with heavy foot traffic I hope to do little advertising and rely
more on my customers spreading the word about the restaurant by word-of-mouth advertising.
We will be able to seat up to 60 customers at a time having 10 tables that can seat 4 people each
table and 10 tables that can seat 2 people each table. Our image will be that of a classic French
bistro with authentic French decor and food. Since we are French Bistro we will serve authentic
dishes from the coastal regions of France. We also plan on decorating in classic French decor to
give the air of being in an upscale cafe on the coast in France. We will accept payments in the
form of cash or credit card. The credit card system will cost us $250 for the credit card
processing machine and additional processing fees of 1.95% per transaction for the credit card
processing company.
The typical person in Seattle, Washington is between the ages of 25 to 35 there are twice
as many males as there are females in the area the average household size is 2 people with an
annual average income of $75,539. The buying pattern of people in Settle is the major of
expenses coming from housing followed by transportation. People in Seattle spend about 12.8%
of their income on food related expenses with almost as much money being spent on eating at
home as is spend on eating out. Pier 57 is a very nice coastal region of Seattle of with great
attractions and beautiful views.
The average cost of advertising on a small billboard is $300 a month or will be $3,600
annually in the Seattle Washington area this will give the restaurant the potential to reach an
audience of up to 653,405 people. The kitchen equipment, table, chairs and table settings will
cost $60,000 and will be financed by $12,000 in down payment and $48,000 in a bank loan at
10% interest. The cost of remodeling is $40,000 with another $10,000 for sales registers,
computer system and office equipment which will all be paid for in cash. All equipment and
furniture should have a life span of 5 years and 20% annual depreciation rate. The rental space is
on a 5 year lease at $2,000 a month plus 3% gross revenue. With the equity in my home I can
obtain a line-of-credit loan for up to $75,000 at 8% interest this can be used as an additional cash
investment if needed by the business. Since the equity on the house is a personal loan it will not
appear on the company books.
The only borrowing the company can do in the first two years would be the $48,000 in
the bank loan. With not being on the payroll as a salaried employee I still hope to draw $4,000 a
month for living expenses which half of this amount can be treated as officer salaries and the
other half as payroll expenses. Based on the number of tables and the size of restaurant I will
need 8 employees that work on average 20 hours a week and at the minimum wage in Seattle
being $15 per hour. I have to also calculate in the $1,000 in yearly corporate attorney fees, and
$840 for state small business tax. The total for all of this will come to be $117,040 this does not
include my $4,000 a month for living expenses. Payroll system costs are $200 though Paychex
which is a payroll service and all checks and deposits will be recorded weekly though Peachtree
computer accounting software the bookkeeping will be done by my niece who will be paid $200
2

3. per month. A CPA will make any needed adjustments and compile a year-end financial statement
and prepare the federal and state tax returns for an estimated $2,000 annual fee.
3
To calculate the estimated volume of sales we can determine that on average we can
serve 60 customers per hour during the lunch rush which will be from 11am to 1pm and the
dinner rush which will be from 4pm-8pm the hours between these two rushes we can estimate
serving 40 customers per hour. This will lead us to making about $1,800 for the lunch rush and
$4,800 for the dinner rush. If during the time between the lunch and dinner rush we are able to
serve 40 customers per hour that would give us about $1,200 during the time frame of 1pm to
4pm. If we are able to serve an additional 40 people from 8pm to 9pm we would be able to make
$800 in the last hour of daily operations. This would give us a weekly sales projection of $23,048.
With the calendar year having 52 weeks in it we should be able to make roughly $310,976 in the
first year if the projected number of customers is accurate.
We have to get a bank loan of $48,000 to help finance the costs of kitchen equipment,
tables, chairs, and table settings. I will also have to obtain the line-of-credit loan of $75,000
using the equity on my home. I might also look into trying for a small business grant in the area
to help me with my start-up costs and to help insure a profit is being made within the first year of
operations.
The start-up cost will have to be estimated to figure out how much we will have to
borrow from the bank as well as if we will need additional loans in the future.
Fixtures and Equipment costs $60,000
Starting Inventory $0
Decorating and Remodeling $40,000
Installation of Equipment $10,000
Legal and Professional Fees $1,000
License and Permits $840
Advertising for the opening $3,600 yearly
Starting cost $115,440
Accounts Receivable $123,000
Operating Cash $12,000
Total amount to invest $135,000
Total: $19,558
This total does not include the rental costs, salaries, or my monthly $4,000 living
expenses this only takes into account the basis costs of starting up with the accounts receivable
being the loan amounts that I can obtain and the operating cash being the $12,000 I plan on
putting down on the equipment cost.

4. 4
Income Projection Statement Seattle
Gross Profit $23,048 $310,976
Controllable Expenses
Salaries/wages $9,600 $115,200
Payroll Expenses $4,000 $48,000
Legal/Accounting $250 $3,000
Payroll Account Program $200 $2,400
Advertising $300 $3,600
Supplies $3,406 $40,872
Utilities $1,000 $12,000
Miscellaneous $500 $6,000
Total Controllable Expenses $19,256 $231,072
Fixed Expenses
Rent $2,691.44 $32,297.28
Depreciation $250 $3,000
Insurance $162 $1,944
Licenses/Permits $70 $840
Loan Payments $1,000 $12,000
Miscellaneous $0 $0
Total Fixed Expenses $4,173.44 $50,081.28
Total Expenses $23,429.44 $281,153.28
Net Profit (Loss) Before Taxes $2,485.19 $29,822.28
Taxes $351.17 $4,214
Net Profit (Loss) After Taxes $2134.02 $25,608.28
Based on my income projection statement my restaurant should be able to turn over a
slow but steady profit while insuring that all of the bills are meet. By obtaining the loans needed
and by doing research on the area where I plan on opening up the restaurant I think that this
could be a worthy investment. As far as loans go I would not see that getting any addition loans
as being beneficial but having investment opportunities could be another way to get profits.
Another option could be to try for a small business grant or fundraising which could be done in
the form of vouchers or hosting community events.
Our methods of record keeping include using the payroll service Paychex to pay
employees on a bi-weekly term. We will also have my niece doing the book keeping on the
computer though a program called Peachtree which will be checked over by a CPA. We will also

5. 5
have records of all sales thought the computer systems we will use in ringing up customers’
orders.
As far as insurance goes as a restaurant we will have to have workman’s compensation,
property insurance, and unemployment insurance. The shopping mall comes with its own
security measures so having additional security is not needed.
Balance Sheet
Assets
Liabilities
Current Assets
Current Liabilities
Cash $62,000
Accounts Payable $3,406
Petty Cash $500
Notes Payable $0
Accounts Receivable $34,400
Interest Payable $4,800
Inventory $11,352
Fed. Income Tax $95,688.16
Short-term Investments $0
State Income Tax $0
Prepaid Expenses $162
Self-employment $4,000
Long-term investments $123,000
Sales Tax (SBE) 9.50%
Property Accrual $0
Fixed Assets
Long-term Liabilities
Land $0
Notes Payable 48,000
Buildings $0
Improvements $10,000
Total Liabilities $155,894.16
Equipment $5,000
Furniture $60,000
Net Worth (Owner Equity) 75,000
Other Assets
Proprietorship equity 0
or Corporation
Capital Stock 0
Surplus paid in 0
Retained Earnings
Total Net Worth 75000
Total Assets $306,414
Total Liabilities and Net
Worth $80,894.16
I believe that my restaurant will be successful because not only do we offer great food but
we also offer something no one else in the same general area is offering which is authentic
French costal cuisine. We also plan on doing some advertising and since Seattle is a commuter
city we believe that the small billboard along with great customer service, good food, and word
of mouth from our customer that we can be a very successful business.

6. 6
If I were to open this same business in a shopping center in Bakersfield, California the
statistics I would get would be different. Let us look at how things would change. By being in a
good location with heavy foot traffic I hope to do little advertising and rely more on my
customers spreading the word about the restaurant by word-of-mouth advertising. We will be
able to seat up to 60 customers at a time having 10 tables that can seat 4 people each table and 10
tables that can seat 2 people each table.
Our image will be that of a classic French bistro with authentic French decor and food.
Since we are French Bistro we will serve authentic dishes from the coastal regions of France. We
also plan on decorating in classic French decor to give the air of being in an upscale cafe on the
coast in France. We will accept payments in the form of cash or credit card. The credit card
system will cost us $250 for the credit card processing machine and additional processing fees of
1.95% per transaction for the credit card processing company.
The typical person in Bakersfield, California is between the ages of 30 to 35 there are and
equal number of males to females in the area. The average household size is 3 people with an
annual average income of $53,693. The buying pattern of people in Bakersfield is the major of
expenses coming from housing followed by transportation in their own cars. People in
Bakersfield spend about 10.2% of their income on food related expenses with almost as much
money being spent on eating at home as is spend on eating out. Rosedale area of Bakersfield
California is a newer up and coming area.
The average cost of advertising on a small billboard is about $300 a month or will be
$3,600 annually in the Bakersfield California area this will give the restaurant the potential to
reach an audience of up to 358,597 people. The kitchen equipment, table, chairs and table
settings will cost $60,000 and will be financed by $12,000 in down payment and $48,000 in a
bank loan at 10% interest. The cost of remodeling is $40,000 with another $10,000 for sales
registers, computer system and office equipment which will all be paid for in cash. All
equipment and furniture should have a life span of 5 years and 20% annual depreciation rate. The
rental space is on a 5 year lease at $2,000 a month plus 3% gross revenue. With the equity in my
home I can obtain a line-of-credit loan for up to $75,000 at 8% interest this can be used as an
additional cash investment if needed by the business. Since the equity on the house is a personal
loan it will not appear on the company books.
The only borrowing the company can do in the first two years would be the $48,000 in
the bank loan. With not being on the payroll as a salaried employee I still hope to draw $4,000 a
month for living expenses which half of this amount can be treated as officer salaries and the
other half as payroll expenses. Based on the number of tables and the size of restaurant I will
need 8 employees that work on average 20 hours a week and at the minimum wage in
Bakersfield being $8 per hour. I have to also calculate in the $1,000 in yearly corporate attorney
fees, and $800 for state small business tax. The total for all of this will come to be $63,240 this
does not include my $4,000 a month for living expenses. Payroll system costs are $200 though
Paychex which is a payroll service and all checks and deposits will be recorded weekly though
Peachtree computer accounting software the bookkeeping will be done by my niece who will be
paid $200 per month. A CPA will make any needed adjustments and compile a year-end
financial statement and prepare the federal and state tax returns for an estimated $2,000 annual
fee.

7. 7
To calculate the estimated volume of sales we can determine that on average we can
serve 60 customers per hour during the lunch rush which will be from 11am-1pm and the dinner
rush which will be from 5pm-8pm the hours between these two rushes we can estimate serving
40 customers per hour. This will lead us to making about $1,800 for the lunch rush and $3,800
for the dinner rush. If during the time between the lunch and dinner rush we are able to serve 40
customers per hour that would give us about $1,200 during the time frame of 1pm to 5pm. If we
are able to serve an additional 40 people from 8pm to 9pm we would be able to make $800 in the
last hour of daily operations. This would give us a weekly sales projection of $22,048. But this is
an overestimation of the selling since people in Bakersfield have less disposable income.
We have to get a bank loan of $48,000 to help finance the costs of kitchen equipment,
tables, chairs, and table settings. I will also have to obtain the line-of-credit loan of $75,000
using the equity on my home. I might also look into trying for a small business grant in the area
to help me with my start-up costs and to help insure a profit is being made within the first year of
operations.
The start-up cost will have to be estimated to figure out how much we will have to
borrow from the bank as well as if we will need additional loans in the future.
Fixtures and Equipment costs $60,000
Starting Inventory $0
Decorating and Remodeling $40,000
Installation of Equipment $10,000
Legal and Professional Fees $1,000
License and Permits $800
Advertising for the opening $3,600 yearly
Starting cost $115,400
Accounts Receivable $123,000
Operating Cash $12,000
Total amount to invest $135,000
Total: $19,600
This total does not include the rental costs, salaries, or my monthly $4,000 living
expenses this only takes into account the basis costs of starting up with the accounts receivable
being the loan amounts that I can obtain and the operating cash being the $12,000 I plan on
putting down on the equipment cost.
With the population of Bakersfield being half the size of Seattle, Washington being able
to make even close to same amount of sales will be extremely hard if not impossible.

8. 8
Income Projection Statement Bakersfield
Total net sales Monthly Total Annual Total
(Revenues) $32,200 $386,400
Costs of Goods Sold $11,352 $136,224
Gross Profit $20,848 $250,176
Controllable Expenses
Salaries/wages $5,120 $61,440
Payroll Expenses $4,000 $48,000
Legal/Accounting $250 $3,000
Payroll Account Program $200 $2,400
Advertising $300 $3,600
Supplies $3,406 $40,872
Utilities $1,000 $12,000
Miscellaneous $500 $6,000
Total Controllable Expenses $14,776 $177,312
Fixed Expenses
Rent $2,691.42 $32,297.00
Depreciation $250 $3,000
Insurance $162 $1,944
Licenses/Permits $67 $800
Loan Payments $1,000 $12,000
Miscellaneous $0 $0
Total Fixed Expenses $4,170.42 $50,041.00
Total Expenses $18,946.42 $227,353.00
Net Profit (Loss) Before Taxes $1,901.58 $22,823.00
Taxes $268.75 $3,225.00
Net Profit (Loss) After Taxes $1,632.83 $19,598.00
Based on my income projection statement my restaurant should be able to turn over a
slow but steady profit while insuring that all of the bills are meet. By obtaining the loans needed
and by doing research on the area where I plan on opening up the restaurant I think that this
could be a worthy investment. As far as loans go I would not see that getting any addition loans
as being beneficial but having investment opportunities could be another way to get profits.
Another option could be to try for a small business grant or fundraising which could be done in
the form of vouchers or hosting community events.

9. Our methods of record keeping include using the payroll service Paychex to pay
employees on a bi-weekly term. We will also have my niece doing the book keeping on the
computer though a program called Peachtree which will be checked over by a CPA. We will also
have records of all sales thought the computer systems we will use in ringing up customers’
orders.
9
As far as insurance goes as a restaurant we will have to have workman’s
compensation, property insurance, and unemployment insurance. The shopping mall comes with
its own security measures so having additional security is not needed.
Balance Sheet
Assets
Liabilities
Current Assets
Current Liabilities
Cash $62,000
Accounts Payable $3,406
Petty Cash $500
Notes Payable $0
Accounts Receivable $34,400
Interest Payable $4,800
Inventory $11,352
Fed. Income Tax $95,688.16
Short-term Investments $0
State Income Tax $26,656
Prepaid Expenses $162
Self-employment $4,000
Long-term investments $123,000
Sales Tax (SBE) 7.50%
Property Accrual $0
Fixed Assets
Long-term Liabilities
Land $0
Notes Payable 48,000
Buildings $0
Improvements $10,000
Total Liabilities $182,550.16
Equipment $5,000
Furniture $60,000
Net Worth (Owner Equity) 75,000
Other Assets
Proprietorship equity 0
or Corporation
Capital Stock 0
Surplus paid in 0
Retained Earnings
Total Net Worth 75000
Total Assets $306,414
Total Liabilities and Net Worth $107,550.16
I believe that my restaurant will be successful only if I open it up in the Seattle,
Washington area. In Bakersfield California it does not seem like I will be able to get enough
sales to make this invest worth the cost of starting up. Even with on doing some advertising and

10. relying on word of mouth I doubt sales will be enough to cover all costs incurred with the loans
and the operating cost.
10
The difference in profits and advertising effectiveness is huge between Bakersfield,
California vs. Seattle, Washington. The profit difference is $6010.28 that will be lost if the
restaurant is opened in Bakersfield vs being opened in Seattle. So by doing this comparison we
see that our money will be best spent setting up in Seattle rather than setting up in Bakersfield.