Class 11 7-25

1. Summerfuel Finance
Class 10: 7-25-2016

2. Today
Mr Mac does a quick Business
Plan Business Presentation
To give you a sense of how to go
about it.
Stock Reports 3 Prepared in
Class

3. Business Plan Outline
1. Executive Summary
2. Part I: The Organizational Plan
3. Part II: The Marketing Plan
4. Part III: Financial Documents
 Work on In Class : Today, Tomorrow
 Present Wednesday
You will get out of this what you put into it !

4. KMAC Brewing LLC Summary
 After honing his skills as master brewer for Samuel
Adams, Kevin McWilliams is taking his talents to create
his own craft brewing company.
 The emphasis of KMAC brewing will be to make craft
beer of exceptional quality to sere the higher end of the
gourmet craft beer market,
 Market data indicates a clear trend from standard beer
to which has seen flat sales to increasing growth in the
craft beer market showing a consumer preference for
quality beer.
 KMAC Brewing is seeking capital financing of:
 In a 10 year bank loan at the rate of 4%
 Private Equity invest of no more than 4 investors for

5. The Organizational Plan
 The inaugural signature beer” KMAC’s
Heavenly Hoppyness IPA” ; an IPA
made with world best hops: Amarillo
Hops. These hops will be privately
grown only by Virgil Gamache Farms in
Toppenish, Washington.
 A sample batch was created was very
successful in obtaining agreements
with over 50 New England Restaurants
and the and a contract to distribute with
Guild Craft Beer Distributers
 The initial production will be created
and packaged by leasing the facilities
of Dorchester Brewing Company

6. The Organizational Plan
Initial staffing will be 5 employees:
brewing assistants, delivery people
and one sales person.
A small warehouse office will be
leased in South Boston , close
proximity to Dorchester Brewing
aand with easy access to the regions
highways

7. The Marketing Plan
Although the there are numerous and growing creators of
craft beer , the growing demand in the market for craft
indicates that there continues to be space on the supply
side of the market.
KMAC brewing will target the beer enthusiast , selling high
end, high price beer made with exceptional quality.
Product – The inaugural signature beer” KMAC’s
Heavenly Hoppyness IPA” ; an IPA made with world best
hops: Amarillo Hops.
 KMAC Brewing will use only the finest quality
ingredients including:
 Amarillo Hops. These hops will be privately grown only
by Virgil Gamache Farms in Toppenish, Washington.
 The purest water that has been run a special triple
filters process to eliminate any undesirable mineral or
chemical taste to the water

8. The Marketing Plan
Place – KMAC Brewing will distribute in the New England
Region of the United Sates
 Guild Craft will market and distribute the regions retail beer
stores
 KMAC Brewing will supply the regions restaurants directly
Promotion-
Advertising will be comprised of 3 mediums
1. A presence at all craft beer festivals in the region
2. A full page advertisement in Beer Aficionado magazine for
two months
3. A Billboard for 3 months on the Mass Turnpike just outside
of Boston
In addition promotions will be run at the bars and restaurants
where KMAC’s Heavenly Hoppyness IPA will be sold.

9. The Marketing Plan
Pricing
 Heavenly Hoppyness IPA will be priced at at
the higher end of the craft beer market
reflecting its quality ingredients and top
craftsmanship.
 4 packs will retail for $13 and wholesale for
$10.
 The all in cost to create six packs
approximate $5 per 4 pack
 Kegs for restaurant draft distribution will be
priced at $100 to restaurants and to bars .
 The cost of each keg will be approximate $25

10. KMAC Brewing Beginning Balance Sheet
Assets $ in (000) Liabilities $ in (000)
Cash 10Bank Loan 45
Supplies- Hops,
Barley Etc. 10
Beer Inventory 30
Delivery Trucks 40
Warehouse &
Delivery
Equipment- 10 Total Liabilities 45
Equity
Equity Kevin
McWilliams 25
Equity Others 30
Total Assets $100
Total Assets &
Liabilities $100

11. Income Statement
Income statement $ in (000)
Keg Sales ( project 500 sold) 50
4 pack sold (project 5,000 sold) 50
Cost of Goods sold- Kegs -12.5
Cost of Goods sold - Bottles -25
Gross Profit Margin 62.5
Operational Expenses -25
Earning before Interest & Tax 37.5
Interest Expense -1.8
Earnings Before Tax 35.7
Tax (15%) -5.36
Net Income $30.35
Dividend paid to private equity (7%
of 30) -2.1
Loan Repay year 1 -4.5
Retained Earnings 23.75

12. Ending Balance Sheet
Assets $ in (000) Liabilities $ in (000)
Cash 29Bank Loan 40.5
Supplies-
Hops, Barley
Etc. 10
Beer Inventory 30
Delivery Trucks 40
Warehouse &
Delivery
Equipment- 10Total Liabilities 45
Equity
Retained
Earnings 23.75
Equity Kevin
McWilliams 25
Equity Others 30
Total Assets $119
Total Assets &
Liabilities $119

13. Stock Reports
A Little Competition
An additional KMAC Buck each
day to the stock analyst who
presents the stock that has had
the greatest percentage increase
over its 52 week low
But you need to explain why

14. The S & P 500 Index
2175 points at Friday’s Close
Up Just 0.46 % for the 52 weeks

15. Micron Technology
Micron Technology, Inc. is engaged in semiconductor
systems. The Company's portfolio of memory technologies,
including dynamic random-access memory (DRAM),
negative-AND (NAND) Flash and NOR Flash are the basis
for solid-state drives, modules, multi-chip packages and
other system solutions
https://www.google.com/finance?q=NASDAQ%3AMU&ei=fuGUV_GtKpLGe8O_u6AF
Current – $13.13
52 Week Low – $9.31
13.13 – $9.31 = $3.82
$3.82/ $9.31 = 41%

16. Why Micron Is Doing Well
 Micron' competitors have downsized their
Dram exposure so Micron is set to win
market share here.
 Nand is the future which is why the
company is restructuring to concentrate
resources & Micron has a leading cost
position here.
 3D X-point technology will be on the market
before many think. Micron along with Intel
should have first movers advantage here.

17. Stock Reports
 Tuesday
Oliver, Javier, Ali, Joseph, Eduardo,
Joao
 Wednesday
Kaan, Gonzalo, Francisco, Gabriel,
Mathilda, Niki, Nasia
 Thursday
Rafael, Soraya, Bea, Pablo, Aboud,
Ben