Prepare ByZalavadiya Crystal                      Submitted to                     Dr. Rajesh Patel
Plan Outline    1. Executive Summary      a. Objectives      b. Mission    2. Company Summary    3. Services    4. Market ...
1. Executive SummaryThis restaurant business plan is for magic, a new medium-sized restaurant located in aneighborhood of ...
a. Objectives   1. Sales of $350K the first year, more than half a million the second.   2. Personnel costs less than $300...
2. Company SummaryMagic is a single-unit, medium-sized restaurant. We focus on organic and creative food.The restaurant wi...
Start-up FundingStart-up Expenses to Fund           $3,000Start-up Assets to Fund           $138,000Total Funding Required...
Current Borrowing                                $0Long-term Liabilities                       $100,000Accounts Payable (O...
Total Capital and Liabilities   $138,000Total Funding                   $141,000
3. ServicesThe MenuThe menu is going to be extremely simple but changing every day. We will keep a smallgroup of constants...
4. Market Analysis SummaryBecause of the founders connections within the very trendy area of Portland, we havean excellent...
Market Analysis                            Year 1    Year 2    Year 3    Year 4    Year 5Potential                  Growth...
Rich Hippies      6%   250,000    265,000   280,900   297,754   315,619 6.00%Dieting Women     7%   350,000    374,500   4...
5. Strategy and Implementation SummaryOur strategy is simple, we intend to succeed by giving people a combination ofgreat,...
Sales Forecast                     Year 1     Year 2     Year 3Unit SalesMeals                22,822     35,000     45,000...
Drinks                           $22,830    $35,000    $45,000Other                             $2,400     $5,000    $10,0...
6. Management SummaryMr.K.R.Patel has great experience managing personnel and we are quite confident ofhis ability to find...
Total People          8         10         12Total Payroll   $282,000   $357,000   $410,000
7. Financial PlanWe expect to raise $40,000 of our own capital, and to borrow $100,000 guaranteedby the SBA as a 10-year l...
Assumptions:Average Per-Unit Revenue                                                         $10.66Average Per-Unit Variab...
Pro Forma Profit and Loss                                  Year 1     Year 2     Year 3Sales                           $36...
Utilities                                      $1,200           $1,260          $1,323Payroll Taxes                       ...
Pro Forma Cash Flow                                  Year 1     Year 2     Year 3Cash ReceivedCash from OperationsCash Sal...
Additional Cash ReceivedSales Tax, VAT, HST/GST Received             $0         $0         $0New Current Borrowing        ...
Subtotal Spent on Operations                   $399,968    $542,584   $667,538Additional Cash SpentSales Tax, VAT, HST/GST...
Pro Forma Balance Sheet                            Year 1     Year 2     Year 3AssetsCurrent AssetsCash                   ...
Liabilities and Capital           Year 1      Year 2      Year 3Current LiabilitiesAccounts Payable                 $14,79...
Net Worth                                       ($9,204)         $12,713         $68,776Business RatiosBusiness ratios for...
Long-term Liabilities               94.38%    74.97%    43.22%    28.50%Total Liabilities                   109.25%   88.6...
Total Debt to Total Assets    109.25%   88.64%    56.84%    61.20%Pre-tax Return on Net Worth   501.98%   229.87%   109.29...
Liquidity RatiosNet Working Capital         $84,663   $96,580   $137,643   n.aInterest Coverage             -3.78      4.2...
AppendixSales Forecast             Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont              h 1 h 2 h 3 h ...
Drink                                                                            $2.0             $2.00 $2.00 $2.00 $2.00 ...
s         %                                                                        0        0.00                          ...
h1    h2    h3    h4    h5    h6    h7    h8    h 9 h 10 h 11 h 12Mana 0 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $...
General Assumptions        Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont         h1   h2   h3   h4   h5   h6...
h1    h2    h3   h4   h5   h6    h7   h8   h 9 h 10 h 11 h 12          $12,6 $17,0 $24, $25, $26, $26, $18,9 $24, $33, $41...
Marketi           0      0   50    50    50   50      0    50   50    50    50   50ng andOtherExpensesDepreci 5           ...
InterestExpens      $829 $825 $821 $817 $813 $808 $804 $800 $795 $791 $787 $782eTaxes              $0      $0   $0   $0   ...
Sales                65    49 281 049 632 329        69 520 256 832 417 561SubtotalCash                   $12,6 $17,0 $24,...
NewLong-term           $0    $0   $0   $0   $0   $0    $0   $0   $0   $0   $0   $0LiabilitiesSales ofOther               $...
OperationsCash            $23,5 $23,5 $23, $23, $23, $23, $23,5 $23, $23, $23, $23, $23,Spendin              00    00 500 ...
gOtherLiabilities               $0    $0   $0   $0   $0   $0    $0   $0   $0   $0   $0   $0PrincipalRepaymentLong-termLiab...
Net                ($12, ($15, ($8,8 ($9,0 ($7,5 ($8,1 ($15, ($8,8 ($92 $6,4 $18, $23,Cash                 606) 441) 38) 5...
Curren      000 ,394 ,954 ,115     058   472   369   981   120   198   625   408   459tAssetsLong-termAssetsLong-term     ...
ts           0   95   87    66    66   077   032    27   78   961   123   965   796PayableCurrentBorrow      $0   $0   $0 ...
gsEarnin         ($19, ($34, ($44, ($52, ($60, ($67, ($81, ($90, ($92, ($86, ($68, ($46,          $0gs              312) 8...
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Business plan

  1. 1. Prepare ByZalavadiya Crystal Submitted to Dr. Rajesh Patel
  2. 2. Plan Outline 1. Executive Summary a. Objectives b. Mission 2. Company Summary 3. Services 4. Market Analysis Summary 5. Strategy and Implementation Summary 6. Management Summary 7. Financial Plan Appendix
  3. 3. 1. Executive SummaryThis restaurant business plan is for magic, a new medium-sized restaurant located in aneighborhood of Suraj funword, Junagadh. Magics emphasis will be on organic andcreative ethnic food. An emphasis on organic ingredients is based on magics dedicationto sustainable development. Additionally, the restaurant procures local foods whenpossible, reducing their dependence on fossil fuels used for transportation.Servicesmagic offers Junagadh a trendy, fun place to have great food in a social environment.Chef Mario Langostino has a large repertoire of ethnic ingredients and recipes. Magicforecasts that the majority of purchases will be from the chefs recommendations. Ethnicrecipes will be used to provide the customers with a diverse, unusual menu. Chef Mariowill also be emphasizing healthy dishes, recognizing the trend within the restaurantindustry for the demand for healthy cuisine.CustomersMagic believes that the market can be segmented into four distinct groups that it aims totarget. The first group is the lonely rich which number 40000 people. The second groupthat will be targeted is young happy customers which are growing at an annual rate of8% with 15000 potential customers. The third group is rich hippies who naturally desireorganic foods as well as ethnic cuisine. The last group which is particularly interested inthe menus healthy offerings is dieting women which number 35000 in the Junagadharea.ManagementMagic has assembled a strong management team. Mr.K.R.Patel will be the generalmanager. Andrew has extensive management experience of organizations ranging fromsix to 45 people. Jane Flap will be responsible for all of the finance and accountingfunctions. Janes financial control skills will be invaluable in keeping Magic on track andprofitable.Most important to Magic is the financial success which will be achieved through strictfinancial controls. Additionally, success will be ensured by offering a high-quality serviceand extremely clean, non-greasy food with interesting twists. Magic does plan to raisemenu rates as the restaurant gets more and more crowded, and to make sure that theyare charging a premium for the feeling of being in the "in crowd."The market and financial analyses indicate that with a start-up expenditure of$141,000, Magic can generate over $365,000 in sales by year one $5,65,000 in salesby the end of year two and produce net profits of over 7.5% on sales by the end of yearthree. Profitability will be reached by year two.
  4. 4. a. Objectives 1. Sales of $350K the first year, more than half a million the second. 2. Personnel costs less than $300K the first year, less than $400K the second year. 3. Profitable in year two, better than 7.5% profits on sales by year three. b. Mission Magic is a great place to eat, combining an intriguing atmosphere with excellent,interesting food that is also very good for the people who eat there. We want fair profitfor the owners, and a rewarding place to work for the employees.
  5. 5. 2. Company SummaryMagic is a single-unit, medium-sized restaurant. We focus on organic and creative food.The restaurant will be located in a prime neighborhood of Portland. Most important to usis our financial success, but we believe this will be achieved by offering high-qualityservice and extremely clean, non-greasy food with interesting twists.Company OwnershipThe restaurant will start out as a simple sole proprietorship, owned by its founders.Start-up SummaryWe have found the location and secured the lease for $2,000 per month. We will beable to set up shop in time to begin turning back a profit by the end of month eleven andbe profitable in the second year. The place is already equipped as a restaurant so weplan to come up with a total of $40,000 in capital, plus a $100,000 SBA-guaranteedloan, to start up the company.
  6. 6. Start-up FundingStart-up Expenses to Fund $3,000Start-up Assets to Fund $138,000Total Funding Required $141,000AssetsNon-cash Assets from Start-up $50,000Cash Requirements from Start-up $88,000Additional Cash Raised $0Cash Balance on Starting Date $88,000Total Assets $138,000Liabilities and CapitalLiabilities
  7. 7. Current Borrowing $0Long-term Liabilities $100,000Accounts Payable (Outstanding Bills) $1,000Other Current Liabilities (interest-free) $0Total Liabilities $101,000CapitalPlanned InvestmentInvestor 1 $25,000Investor 2 $15,000Additional Investment Requirement $0Total Planned Investment $40,000Loss at Start-up (Start-up Expenses) ($3,000)Total Capital $37,000
  8. 8. Total Capital and Liabilities $138,000Total Funding $141,000
  9. 9. 3. ServicesThe MenuThe menu is going to be extremely simple but changing every day. We will keep a smallgroup of constants on the menu and then feature a chefs recommendation that we planto have 85% of meals ordering. This will help us to reduce waste and plan ingredientsand purchasing.Organic IngredientsThe organic ingredient element will allow us to price to the extremely wealthy Internetentrepreneurs who are looking to spend an exorbitant amount of money to have peaceof mind that their money is still coming back to themselves. We will be extremelyecologically conscious as well, and spread this across our literature. Eating at Magic willfeel like having contributed to the Sierra Club and drinking fresh squeezed orange juice.Ethnic Ingredients and RecipesOur chef will have great latitude in designing and producing menu offerings from manydifferent world cultures. We will endeavor to procure all the traditional, authenticingredients necessary to hold true to these varied and interesting cultural recipes.Interior AccoutrementsPeople need to keep life interesting, and our artwork will reflect the world influences thatare core to the attitude of the Magic chef.
  10. 10. 4. Market Analysis SummaryBecause of the founders connections within the very trendy area of Portland, we havean excellent feel for the area and its core group of customers. They will all sharesomething alike, which is a feeling of being in the "in crowd" and having "gotten it" in life.Although the crew will be different and not connect with each other in each segment,each segment is complementary to the others. We do plan to raise menu rates as therestaurant gets more and more crowded, and to make sure we are charging a premiumfor the feeling of being in the "in crowd."Market SegmentationThe Lonely RichMost of the lonely rich are tech workers these days, and most of those tech workers areInternet workers. Their life has become their website servers and code they write, andthe people who help them to make the decisions in that world. They hang out with eachother, but desperately want to get away from it and use the money they are racking up.Because this wealth has come fairly easily for them, it is particularly easy to separatethem from their money again - they spend the most on drinks, appetizers and tips.Young Happy CouplesThe restaurant will have an atmosphere that encourages people to bring dates and tohave couples arrive. It wont be awkward for others, and Magic does want to be a socialplace where people meet each other and develop a network. These young couples aregenerally very successful but balanced and wont be spending as much on drinks.The Rich HippiesThe rich hippies in Portland are a massive group with tremendous influence over thecitys government and private enterprise. They wear tie-die but drive BMWs and cravethe feeling of being in a social circle that is changing the world - even if in different waysthan in their glory days. We will cater to their ecological ideology and contribute tocharities to help them part with more of their money.Dieting WomenThe organic food menu will always have a line of extremely delicious very low-fat meals.Magic will have tables of women meeting like they do in shows like Sex and the City, todiscuss all types of matters while feeling good about the food they eat.
  11. 11. Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5Potential Growth CAGRCustomersLonely Rich 10% 400,000 440,000 484,000 532,400 585,640 10.00%Young Happy 8% 150,000 162,000 174,960 188,957 204,074 8.00%Couples
  12. 12. Rich Hippies 6% 250,000 265,000 280,900 297,754 315,619 6.00%Dieting Women 7% 350,000 374,500 400,715 428,765 458,779 7.00%Other 5% 50,000 52,500 55,125 57,881 60,775 5.00%Total 7.87% 1,200,000 1,294,000 1,395,700 1,505,757 1,624,887 7.87%
  13. 13. 5. Strategy and Implementation SummaryOur strategy is simple, we intend to succeed by giving people a combination ofgreat,healthy, interesting food, and an environment that attracts "trendy" people like amagnet. Implementation isnt simple, but thats in the doing of it, not in the plan.Competitive EdgeOur competitive edge is the menu, the chef, the environment, and the tie-in to whatstrendy.Sales StrategyAs the table shows, we intend to deliver sales of about $350K in the first year, and todouble that by the third year of the plan.
  14. 14. Sales Forecast Year 1 Year 2 Year 3Unit SalesMeals 22,822 35,000 45,000Drinks 11,415 17,500 22,500Other 240 500 1,000Total Unit Sales 34,477 53,000 68,500Unit Prices Year 1 Year 2 Year 3Meals $15.00 $15.00 $15.00Drinks $2.00 $2.00 $2.00Other $10.00 $10.00 $10.00SalesMeals $342,330 $525,000 $675,000
  15. 15. Drinks $22,830 $35,000 $45,000Other $2,400 $5,000 $10,000Total Sales $367,560 $565,000 $730,000Direct Unit Costs Year 1 Year 2 Year 3Meals $2.00 $2.00 $2.00Drinks $0.50 $0.50 $0.50Other $1.00 $1.00 $1.00Direct Cost of SalesMeals $45,644 $70,000 $90,000Drinks $5,708 $8,750 $11,250Other $240 $500 $1,000Subtotal Direct Cost of Sales $51,592 $79,250 $102,250
  16. 16. 6. Management SummaryMr.K.R.Patel has great experience managing personnel and we are quite confident ofhis ability to find the best staff possible. Our chef, Mario Langostino, is already on boardand has a published cookbook that will add prestige to the restaurant immediately. Wewill be looking to find a young, ultra-hip staff to make sure we add the edge that makesMagic so trendy.Personnel PlanAs the personnel plan shows, we expect to invest in a good team, fairly compensated.We think the planned staff is in good proportion to the size of the restaurant andprojected revenues.Personnel Plan Year 1 Year 2 Year 3Manager $60,000 $65,000 $70,000Hostess $42,000 $45,000 $50,000Chef $54,000 $60,000 $65,000Cleaning $30,000 $35,000 $40,000Waiters $72,000 $100,000 $130,000Other $24,000 $52,000 $55,000
  17. 17. Total People 8 10 12Total Payroll $282,000 $357,000 $410,000
  18. 18. 7. Financial PlanWe expect to raise $40,000 of our own capital, and to borrow $100,000 guaranteedby the SBA as a 10-year loan. This provides the bulk of the start-up financing required.Break-even AnalysisOur break-even analysis is based on the average of the first-year numbers for totalsales by meal served, total cost of sales, and all operating expenses. These arepresented as per-unit revenue, per-unit cost, and fixed costs. We realize that this is notreally the same as fixed cost, but these conservative assumptions make for a betterestimate of real risk.Break-even AnalysisMonthly Units Break-even 3,205Monthly Revenue Break-even $34,171
  19. 19. Assumptions:Average Per-Unit Revenue $10.66Average Per-Unit Variable Cost $1.50Estimated Monthly Fixed Cost $29,375Projected Profit and LossAs the profit and loss table shows, we expect to become barely profitable in the secondyear of business, and to make an acceptable profit in the third year.
  20. 20. Pro Forma Profit and Loss Year 1 Year 2 Year 3Sales $367,560 $565,000 $730,000Direct Cost of Sales $51,592 $79,250 $102,250Other $0 $0 $0Total Cost of Sales $51,592 $79,250 $102,250Gross Margin $315,969 $485,750 $627,750Gross Margin % 85.96% 85.97% 85.99%ExpensesPayroll $282,000 $357,000 $410,000Sales and Marketing and Other $27,000 $35,830 $72,122ExpensesDepreciation $0 $0 $0
  21. 21. Utilities $1,200 $1,260 $1,323Payroll Taxes $42,300 $53,550 $61,500Other $0 $0 $0Total Operating Expenses $352,500 $447,640 $544,945Profit Before Interest and Taxes ($36,532) $38,110 $82,806EBITDA ($36,532) $38,110 $82,806Interest Expense $9,673 $8,887 $7,637Taxes Incurred $0 $7,306 $19,105Net Profit ($46,204) $21,917 $56,063Net Profit/Sales -12.57% 3.88% 7.68%Projected Cash FlowThe cash flow projection shows that starting cost and provisions for ongoing expensesare adequate to meet our needs until the business itself generates its own cash flowsufficient to support operations.
  22. 22. Pro Forma Cash Flow Year 1 Year 2 Year 3Cash ReceivedCash from OperationsCash Sales $367,560 $565,000 $730,000Subtotal Cash from Operations $367,560 $565,000 $730,000
  23. 23. Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $0 $0 $0Subtotal Cash Received $367,560 $565,000 $730,000Expenditures Year 1 Year 2 Year 3Expenditures from OperationsCash Spending $282,000 $357,000 $410,000Bill Payments $117,968 $185,584 $257,538
  24. 24. Subtotal Spent on Operations $399,968 $542,584 $667,538Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $0 $0 $0Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $6,133 $10,000 $15,000Purchase Other Current Assets $0 $0 $0Purchase Long-term Assets $0 $0 $0Dividends $0 $0 $0Subtotal Cash Spent $406,101 $552,584 $682,538Net Cash Flow ($38,541) $12,416 $47,462Cash Balance $49,459 $61,875 $109,337Projected Balance SheetThe table shows projected balance sheet for three years.
  25. 25. Pro Forma Balance Sheet Year 1 Year 2 Year 3AssetsCurrent AssetsCash $49,459 $61,875 $109,337Other Current Assets $50,000 $50,000 $50,000Total Current Assets $99,459 $111,875 $159,337Long-term AssetsLong-term Assets $0 $0 $0Accumulated Depreciation $0 $0 $0Total Long-term Assets $0 $0 $0Total Assets $99,459 $111,875 $159,337
  26. 26. Liabilities and Capital Year 1 Year 2 Year 3Current LiabilitiesAccounts Payable $14,796 $15,294 $21,693Current Borrowing $0 $0 $0Other Current Liabilities $0 $0 $0Subtotal Current Liabilities $14,796 $15,294 $21,693Long-term Liabilities $93,867 $83,867 $68,867Total Liabilities $108,663 $99,161 $90,560Paid-in Capital $40,000 $40,000 $40,000Retained Earnings ($3,000) ($49,204) ($27,287)Earnings ($46,204) $21,917 $56,063Total Capital ($9,204) $12,713 $68,776Total Liabilities and Capital $99,459 $111,875 $159,337
  27. 27. Net Worth ($9,204) $12,713 $68,776Business RatiosBusiness ratios for the years of this plan are shown below. Industry Profile ratios basedon the Standard Industrial Classification (SIC) code 5813, Eating Places, are shown forcomparison.Ratio Analysis Industry Year 1 Year 2 Year 3 ProfileSales Growth n.a. 53.72% 29.20% 7.60%Percent of Total AssetsOther Current Assets 50.27% 44.69% 31.38% 35.60%Total Current Assets 100.00% 100.00% 100.00% 43.70%Long-term Assets 0.00% 0.00% 0.00% 56.30%Total Assets 100.00% 100.00% 100.00% 100.00%Current Liabilities 14.88% 13.67% 13.61% 32.70%
  28. 28. Long-term Liabilities 94.38% 74.97% 43.22% 28.50%Total Liabilities 109.25% 88.64% 56.84% 61.20%Net Worth -9.25% 11.36% 43.16% 38.80%Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 85.96% 85.97% 85.99% 60.50%Selling, General & Administrative 98.90% 82.32% 78.45% 39.80%ExpensesAdvertising Expenses 0.65% 1.77% 6.16% 3.20%Profit Before Interest and Taxes -9.94% 6.75% 11.34% 0.70%Main RatiosCurrent 6.72 7.31 7.34 0.98Quick 6.72 7.31 7.34 0.65
  29. 29. Total Debt to Total Assets 109.25% 88.64% 56.84% 61.20%Pre-tax Return on Net Worth 501.98% 229.87% 109.29% 1.70%Pre-tax Return on Assets -46.46% 26.12% 47.18% 4.30%Additional Ratios Year 1 Year 2 Year 3Net Profit Margin -12.57% 3.88% 7.68% n.aReturn on Equity 0.00% 172.40% 81.52% n.aActivity RatiosAccounts Payable Turnover 8.91 12.17 12.17 n.aPayment Days 27 30 26 n.aTotal Asset Turnover 3.70 5.05 4.58 n.aDebt RatiosDebt to Net Worth 0.00 7.80 1.32 n.aCurrent Liab. to Liab. 0.14 0.15 0.24 n.a
  30. 30. Liquidity RatiosNet Working Capital $84,663 $96,580 $137,643 n.aInterest Coverage -3.78 4.29 10.84 n.aAdditional RatiosAssets to Sales 0.27 0.20 0.22 n.aCurrent Debt/Total Assets 15% 14% 14% n.aAcid Test 6.72 7.31 7.34 n.aSales/Net Worth 0.00 44.44 10.61 n.aDividend Payout 0.00 0.00 0.00 n.a
  31. 31. AppendixSales Forecast Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12UnitSales 3,83Meals 0% 779 1,053 1,505 1,553 1,652 1,633 1,173 1,520 2,066 2,602 3,451 5Drink 1,91 50% 390 527 753 777 826 817 587 760 1,033 1,301 1,726s 8Other 0% 20 20 20 20 20 20 20 20 20 20 20 20Total 5,77Unit 1,189 1,600 2,278 2,350 2,498 2,470 1,780 2,300 3,119 3,923 5,197 3SalesUnit Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont MontPrice h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12s $15.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.Meals 0 0 0 0 0 0 0 0 0 0 0 00
  32. 32. Drink $2.0 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00s 0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.Other 0 0 0 0 0 0 0 0 0 0 0 00Sales $11,6 $15,7 $22,5 $23,2 $24,7 $24,4 $17,5 $22,8 $30,9 $39,0 $51,7 $57,Meals 85 95 75 95 80 95 95 00 90 30 65 525Drink $1,05 $1,50 $1,55 $1,65 $1,63 $1,17 $1,52 $2,06 $2,60 $3,45 $3,8 $780s 4 6 4 2 4 4 0 6 2 2 36Other $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200Total $12,6 $17,0 $24,2 $25,0 $26,6 $26,3 $18,9 $24,5 $33,2 $41,8 $55,4 $61,Sales 65 49 81 49 32 29 69 20 56 32 17 561Direct Unit Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont MontCost h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12s 0.00 $2.0Meals $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 % 0 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50Drink 0.00 $0.5
  33. 33. s % 0 0.00 $1.0Other $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 % 0DirectCostofSales $1,55 $2,10 $3,01 $3,10 $3,30 $3,26 $2,34 $3,04 $4,13 $5,20 $6,90 $7,6Meals 8 6 0 6 4 6 6 0 2 4 2 70Drink $195 $264 $377 $389 $413 $409 $294 $380 $517 $651 $863 $959sOther $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20SubtotalDirec $1,77 $2,39 $3,40 $3,51 $3,73 $3,69 $2,66 $3,44 $4,66 $5,87 $7,78 $8,6t 3 0 7 5 7 5 0 0 9 5 5 49CostofSalesPersonnel Plan Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
  34. 34. h1 h2 h3 h4 h5 h6 h7 h8 h 9 h 10 h 11 h 12Mana 0 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00 $5,00ger % 0 0 0 0 0 0 0 0 0 0 0 0Hoste 0 $3,50 $3,50 $3,50 $3,50 $3,50 $3,50 $3,50 $3,50 $3,50 $3,50 $3,50 $3,50ss % 0 0 0 0 0 0 0 0 0 0 0 0 0 $4,50 $4,50 $4,50 $4,50 $4,50 $4,50 $4,50 $4,50 $4,50 $4,50 $4,50 $4,50Chef % 0 0 0 0 0 0 0 0 0 0 0 0Cleani 0 $2,50 $2,50 $2,50 $2,50 $2,50 $2,50 $2,50 $2,50 $2,50 $2,50 $2,50 $2,50ng % 0 0 0 0 0 0 0 0 0 0 0 0Waite 0 $6,00 $6,00 $6,00 $6,00 $6,00 $6,00 $6,00 $6,00 $6,00 $6,00 $6,00 $6,00rs % 0 0 0 0 0 0 0 0 0 0 0 0 0 $2,00 $2,00 $2,00 $2,00 $2,00 $2,00 $2,00 $2,00 $2,00 $2,00 $2,00 $2,00Other % 0 0 0 0 0 0 0 0 0 0 0 0TotalPeopl 8 8 8 8 8 8 8 8 8 8 8 8eTotal $23,5 $23,5 $23,5 $23,5 $23,5 $23,5 $23,5 $23,5 $23,5 $23,5 $23,5 $23,5Payro 00 00 00 00 00 00 00 00 00 00 00 00ll
  35. 35. General Assumptions Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont h1 h2 h3 h4 h5 h6 h7 h8 h 9 h 10 h 11 h 12PlanMont 1 2 3 4 5 6 7 8 9 10 11 12hCurrent 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00Intere % % % % % % % % % % % %stRateLong-term 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00Intere % % % % % % % % % % % %stRateTax 30.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00Rate % % % % % % % % % % % %Other 0 0 0 0 0 0 0 0 0 0 0 0Pro Forma Profit and Loss Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
  36. 36. h1 h2 h3 h4 h5 h6 h7 h8 h 9 h 10 h 11 h 12 $12,6 $17,0 $24, $25, $26, $26, $18,9 $24, $33, $41, $55, $61,Sales 65 49 281 049 632 329 69 520 256 832 417 561Direct $1,77 $2,39 $3,4 $3,5 $3,7 $3,6 $2,66 $3,4 $4,6 $5,8 $7,7 $8,6Cost of 3 0 07 15 37 95 0 40 69 75 85 49SalesOther $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total $1,77 $2,39 $3,4 $3,5 $3,7 $3,6 $2,66 $3,4 $4,6 $5,8 $7,7 $8,6Cost of 3 0 07 15 37 95 0 40 69 75 85 49SalesGross $10,8 $14,6 $20, $21, $22, $22, $16,3 $21, $28, $35, $47, $52,Margin 92 60 875 535 895 635 10 080 588 958 632 912Gross 86.00 85.98 85.9 85.9 85.9 85.9 85.98 85.9 85.9 85.9 85.9 85.9Margin % % 7% 7% 7% 7% % 7% 6% 6% 5% 5%%Expenses $23,5 $23,5 $23, $23, $23, $23, $23,5 $23, $23, $23, $23, $23,Payroll 00 00 500 500 500 500 00 500 500 500 500 500Sales $2,25 $2,25 $2,2 $2,2 $2,2 $2,2 $2,25 $2,2 $2,2 $2,2 $2,2 $2,2and
  37. 37. Marketi 0 0 50 50 50 50 0 50 50 50 50 50ng andOtherExpensesDepreci 5 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0ation % 5Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 %Payroll 15 $3,52 $3,52 $3,5 $3,5 $3,5 $3,5 $3,52 $3,5 $3,5 $3,5 $3,5 $3,5Taxes % 5 5 25 25 25 25 5 25 25 25 25 25Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0TotalOperati $29,3 $29,3 $29, $29, $29, $29, $29,3 $29, $29, $29, $29, $29,ng 75 75 375 375 375 375 75 375 375 375 375 375ExpensesProfitBefore ($18,4 ($14,7 ($8,5 ($7,8 ($6,4 ($6,7 ($13,0 ($8,2 ($78 $6,5 $18, $23,Interest 83) 16) 01) 41) 80) 41) 66) 95) 8) 83 257 537andTaxes ($18,4 ($14,7 ($8,5 ($7,8 ($6,4 ($6,7 ($13,0 ($8,2 ($78 $6,5 $18, $23,EBITDA 83) 16) 01) 41) 80) 41) 66) 95) 8) 83 257 537
  38. 38. InterestExpens $829 $825 $821 $817 $813 $808 $804 $800 $795 $791 $787 $782eTaxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0IncurredNet ($19,3 ($15,5 ($9,3 ($8,6 ($7,2 ($7,5 ($13,8 ($9,0 ($1,5 $5,7 $17, $22,Profit 12) 41) 22) 57) 93) 49) 70) 95) 83) 91 470 755Net - - - - - - - - - 13.8 31.5 36.9Profit/S 152.4 91.15 38.3 34.5 27.3 28.6 73.12 37.0 4.76 4% 3% 6%ales 9% % 9% 6% 8% 7% % 9% %Pro Forma Cash Flow Mont Mont Mont Mont Mont Mont Mont Mont Mon Mon Mon Mon h1 h2 h3 h4 h5 h6 h 7 h 8 th 9 th 10 th 11 th 12CashReceivedCashfromOperationsCash $12,6 $17,0 $24, $25, $26, $26, $18,9 $24, $33, $41, $55, $61,
  39. 39. Sales 65 49 281 049 632 329 69 520 256 832 417 561SubtotalCash $12,6 $17,0 $24, $25, $26, $26, $18,9 $24, $33, $41, $55, $61,from 65 49 281 049 632 329 69 520 256 832 417 561OperationsAdditional CashReceivedSalesTax,VAT, 0.0HST/GS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0%TReceivedNewCurrent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0BorrowingNewOtherLiabilitie $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0s(interest-free)
  40. 40. NewLong-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0LiabilitiesSales ofOther $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0CurrentAssetsSales ofLong- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0termAssetsNewInvestment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0ReceivedSubtotalCash $12,6 $17,0 $24, $25, $26, $26, $18,9 $24, $33, $41, $55, $61,Receive 65 49 281 049 632 329 69 520 256 832 417 561dExpendi Mont Mont Mont Mont Mont Mont Mont Mont Mon Mon Mon Montures h1 h2 h3 h4 h5 h6 h 7 h 8 th 9 th 10 th 11 th 12Expendituresfrom
  41. 41. OperationsCash $23,5 $23,5 $23, $23, $23, $23, $23,5 $23, $23, $23, $23, $23,Spendin 00 00 500 500 500 500 00 500 500 500 500 500gBill $1,28 $8,49 $9,1 $10, $10, $10, $10,3 $9,3 $10, $11, $12, $14,Payment 3 8 23 106 214 423 43 65 156 379 604 475sSubtotalSpent $24,7 $31,9 $32, $33, $33, $33, $33,8 $32, $33, $34, $36, $37,on 83 98 623 606 714 923 43 865 656 879 104 975OperationsAdditional CashSpentSalesTax,VAT, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0HST/GST PaidOutPrincipalRepaym $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0ent ofCurrentBorrowin
  42. 42. gOtherLiabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0PrincipalRepaymentLong-termLiabilities $488 $492 $496 $500 $505 $509 $513 $517 $522 $526 $530 $535PrincipalRepaymentPurchase Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0CurrentAssetsPurchase Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0termAssetsDividend $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0sSubtotal $25,2 $32,4 $33, $34, $34, $34, $34,3 $33, $34, $35, $36, $38,Cash 71 90 119 106 219 432 56 382 178 405 634 510Spent
  43. 43. Net ($12, ($15, ($8,8 ($9,0 ($7,5 ($8,1 ($15, ($8,8 ($92 $6,4 $18, $23,Cash 606) 441) 38) 57) 87) 03) 387) 62) 2) 27 783 051FlowCash $75,3 $59,9 $51, $42, $34, $26, $10,9 $2,1 $1,1 $7,6 $26, $49,Balance 94 54 115 058 472 369 81 20 98 25 408 459Pro Forma Balance Sheet Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12 Start ingAssets Bala ncesCurrentAssets $88,0 $75, $59, $51, $42, $34, $26, $10, $2,1 $1,1 $7,6 $26, $49,Cash 00 394 954 115 058 472 369 981 20 98 25 408 459Other $50,0 $50, $50, $50, $50, $50, $50, $50, $50, $50, $50, $50, $50,Current 00 000 000 000 000 000 000 000 000 000 000 000 000AssetsTotal $138, $125 $109 $101 $92, $84, $76, $60, $52, $51, $57, $76, $99,
  44. 44. Curren 000 ,394 ,954 ,115 058 472 369 981 120 198 625 408 459tAssetsLong-termAssetsLong-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0AssetsAccumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0DepreciationTotalLong- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0termAssetsTotal $138, $125 $109 $101 $92, $84, $76, $60, $52, $51, $57, $76, $99,Assets 000 ,394 ,954 ,115 058 472 369 981 120 198 625 408 459Liabilities Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Montand h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12CapitalCurrentLiabilitiesAccoun $1,00 $8,1 $8,7 $9,7 $9,8 $10, $10, $9,0 $9,7 $10, $12, $13, $14,
  45. 45. ts 0 95 87 66 66 077 032 27 78 961 123 965 796PayableCurrentBorrow $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0ingOtherCurrent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0LiabilitiesSubtotalCurren $1,00 $8,1 $8,7 $9,7 $9,8 $10, $10, $9,0 $9,7 $10, $12, $13, $14,t 0 95 87 66 66 077 032 27 78 961 123 965 796LiabilitiesLong-term $100, $99, $99, $98, $98, $97, $97, $96, $95, $95, $94, $94, $93,Liabiliti 000 512 020 524 024 519 010 497 980 458 932 402 867esTotal $101, $107 $107 $108 $107 $107 $107 $105 $105 $106 $107 $108 $108Liabilit 000 ,707 ,807 ,290 ,890 ,596 ,042 ,524 ,758 ,419 ,055 ,367 ,663iesPaid-in $40,0 $40, $40, $40, $40, $40, $40, $40, $40, $40, $40, $40, $40,Capital 00 000 000 000 000 000 000 000 000 000 000 000 000Retain ($3,0 ($3,0 ($3,0 ($3,0 ($3,0 ($3,0 ($3,0 ($3,0 ($3,0 ($3,0 ($3,0 ($3,0 ($3,0ed 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00)Earnin
  46. 46. gsEarnin ($19, ($34, ($44, ($52, ($60, ($67, ($81, ($90, ($92, ($86, ($68, ($46, $0gs 312) 853) 174) 832) 124) 673) 543) 638) 221) 429) 959) 204)Total $37,0 $17, $2,1 ($7,1 ($15, ($23, ($30, ($44, ($53, ($55, ($49, ($31, ($9,2Capital 00 688 47 74) 832) 124) 673) 543) 638) 221) 429) 959) 04)TotalLiabilit $138, $125 $109 $101 $92, $84, $76, $60, $52, $51, $57, $76, $99,ies 000 ,394 ,954 ,115 058 472 369 981 120 198 625 408 459andCapitalNet $37,0 $17, $2,1 ($7,1 ($15, ($23, ($30, ($44, ($53, ($55, ($49, ($31, ($9,2Worth 00 688 47 74) 832) 124) 673) 543) 638) 221) 429) 959) 04)

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