1. Business Plan
2016
Founder/Operator: April Christensen
Business Address: 6121 Reynolds Drive, Las Cruces, NM 88011
E-mail: thevillagelc@gmail.com
Phone: (575) 382-1662
Presented by MBA consultants:
Ashlee Matlock
Ashley Matsko
Aisol Casillas
Samuel Buckingham

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Table of Contents
I. Table of Contents..........................................................................................................................2
II. Confidentiality Agreement and Disclaimer…………………………………………………….4
A. Confidentiality Agreement
B. Disclaimer
III. Executive Summary...................................................................................................................4
A. Summary
B. Founder/Operator Biography
IV. Business Description ...............................................................................................................5
A. Shared-use kitchen
B. The Village
C. Customer Profile
D. Services
E. Location
V. Mission, Vision, Values, and Objectives………………………………….…………………...9
A. Mission
B. Vision
C. Values
D. Objectives
VI. Business Structure/ Corporate Governance………………………………………………….10
A. Legal Structure
B. Corporate Governance
C. Management and Organization
VII. Market Analysis ....................................................................................................................12
A. Industry Analysis
B. Industry Analysis
C. Interest Survey
D. Market Study
VIII. Risk Analysis………………………………………………………………………………21
A. Legal Issues
B. SWOT Analysis

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IX. Business Operations………………………………………………………………………….25
A. Scheduling
B. Client Requirements
C. Pricing Strategy
X. Startup Expenses and Capitalization ........................................................................................29
A. Permit and Licensing Fees
B. Kitchen Equipment
C. Financing
XI. Pro Forma Financial Statements……………………………………………………………..32
A. Assumptions
B. Pro Forma Statement of Activity
C. Pro Forma Statement of Financial Position
D. Pro Forma Statement of Cash Flows
E. Cost-Volume-Profit analysis
XII. Strategic Recommendations...................................................................................................41
XIII. Feasibility and Exit Strategy……………………………………………………………….42
A. Feasibility
B. Exit Strategy
XIV. Future of The Village………………………………………………………………………43
XV. Appendices………………………………………………………………………………….45

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II. Confidentiality Agreement and Disclaimer
A.) Confidentiality Agreement
The information in this document is confidential to the person(s) to whom it is addressed and
should not be disclosed to any other person. It may not be reproduced in whole, or in part, nor
may any of the information contained therein be disclosed without the prior consent of the
founder of The Village. A recipient may not solicit, directly or indirectly (whether through an
agent or otherwise) the participation of another institution or person without the prior approval of
the directors of the Company. The contents of this document have not been independently
verified and they do not purport to be comprehensive, or to contain all the information that a
prospective investor may need. No representation, warranty or undertaking, expressed or implied
is or will be made or given and no responsibility or liability is or will be accepted by the
Company or by any of its directors, employees or advisors in relation to the accuracy or
completeness of this document or any other written or oral information made available in
connection with the Company. Any form of reproduction, dissemination, copying, disclosure,
modification, distribution, and/or publication of this material is strictly prohibited.
B.) Disclaimer
Although the information contained herein is believed to be reliable, The Village, its Advisors or
Consultants make no representation as to the accuracy or completeness of any information
contained herein or otherwise provided by The Village. The terms set forth herein are intended
for discussion purposes only and subject to the final expression as set forth in a definitive
agreement and/or confirmation. The Village, or its Advisors or Consultants are not providing tax,
accounting or legal advice and the prospective investor should rely on its own accounting, tax
and legal advisors for definitive guidance as to the applicability of the enclosed information to
specific circumstances. To the best of the knowledge of the Directors of The Village, the
information contained in this business proposal is correct. The aims, strategies, target, plans,
intentions and projections referred to in this business proposal are based upon assumptions which
the directors consider reasonable, but any projections do not constitute forecasts and are subject
to variation.
III. Executive Summary
A.) Summary
Food-based businesses are growing in number and variety all across the country. Because of this
trend, there is greater demand for accessible resources to the small business entrepreneur.
The Village is a shared-use kitchen and culinary incubator coming to Las Cruces, New Mexico
during the Summer of 2016. A shared-use kitchen is a commercial kitchen space where
entrepreneurs, caterers and instructors can prepare and process food-based products for the

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consumer market. The Village gives the entrepreneurs the chance to test their skills in a fully
equipped, licensed commercial kitchen without taking on the personal investment of buying or
building a private kitchen. To begin, The Village will be providing a variety of services that
include kitchen rental space, incubation, Meals on-the-Go and educational workshops. The area
in which The Village will be operating has been identified as a largely underserved market that
will benefit from the economic impact that the business strives to create.
B.) Founder/Operator Biography
Founder and operator, April Christensen, is a part-time entrepreneur and full time wife and
mother to three young children. Originally from Northern California, April was raised in a family
that owned and operated a small business that rented heavy equipment and special event
supplies. During her childhood, April developed her skills in organization and customer service
and became an office manager by the age of 16. Before settling in New Mexico, April received
her Bachelor of Business Administration with a focus in
accounting and finance from Southern Utah University in
2003. Her passion for small business and what they can do
for a community is what led her to create The Village. She
believes that these small enterprises keep resources local and
help build stronger economies. Her personal mission is to
make connections and give opportunities to entrepreneurs
that are currently not available in the Las Cruces area.
Through The Village, she hopes to foster economic growth
and create new jobs. To quote April directly she feels
“chosen” to see the project through. “I’ve been sitting on the
project for a while. IT’S TIME…and the community is in
need, ready to use what The Village has to offer.”
IV. Business description
A.) Shared-use kitchen
“A shared-use commercial kitchen is a kitchen facility where local entrepreneurs, caterers and
instructors can prepare and process their food products for the consumer market or hold
cooking classes and demonstrations. These facilities are generally rented by the hour. Instead of
taking on the considerable financial commitment of opening a private commercial kitchen, new
or expanding small food businesses can take advantage of shared-use commercial kitchens to
help grow their enterprise.”1
1
Retrieved on March 10, 2016 from http://www.farmtotablecoop.com/fooddevelopment.htm

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Incubation services can help with avoiding some of the most common barriers that food-based
entrepreneurs encounter when attempting to start or expand their business.
 Capital investment - By providing a commercial grade kitchen space that can be rented
by the hour, this model can significantly reduce the amount of startup capital that an
entrepreneur would need to start producing in bulk.
 Scheduling - Trying to schedule time to use other community kitchens (churches,
community centers, etc.) can be difficult due to variations in volunteer hours.
 Supervision - Supervisors and other staff members may not always be around to assist
clients with kitchen equipment issues or cleanup.
 Liability - When entrepreneurs are ready to leave the home kitchen environment to sell
their products to the general public, they need to transition to a licensed kitchen where
they can legally produce and sell their products.
 Batch size - Shared-use kitchens are equipped with commercial grade tools and
appliances that are designed to produce large quantities of food. This is something that a
home-based kitchen cannot usually accommodate.
B.) The Village
The Village is a shared-use kitchen and collaborative workspace that provides licensed
commercial cooking equipment to food-based entrepreneurs, who are in the process of starting or
expanding their own small business. This arrangement saves the client the cost of building his or
her own kitchen and reduces the liability that comes from selling food out of a residential
kitchen. Aside from its primary function of business incubation, local catering companies and
small businesses can rent the commercial kitchen for additional preparation space. The ‘Meals
on-the-Go’ program will be the third service provided by The Village. Meals on-the-Go will
offer community members a healthier alternative to the fast-food options surrounding the
location.
The Village will provide professional business education workshops for incubator clients free of
charge through strategic partnerships with The Mesilla Valley Economic Development Alliance
(MVEDA), WESST Consulting, La Semilla, The City of Las Cruces and other local businesses.
The strategic partnerships associated with The Village share a common vision of developing the
community through education and small businesses. These commitments are important to the
foundation of The Village.

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C.) Customer Profile
The following is a list of The Village’s potential customers.
 Startup food businesses in need of their first cooking facility
 Caterers who need additional production space for birthdays, weddings, etc.
 Farmers’ market vendors who need additional space for production
 Home-based businesses that wish to legalize and grow their operation
 Established businesses looking to grow or reach new markets
The primary purpose of culinary incubation is to provide food-based entrepreneurs, who do not
have sufficient startup capital, to work and experiment in a commercial kitchen space, while they
grow their business. Most food entrepreneurs start their businesses in their own home kitchen,
but once the product has been perfected and is ready to hit the shelves, the home-based kitchen
automatically becomes a liability. This is where incubation services become necessary. Due to
U.S. laws surrounding food safety, chefs are required to produce their products in a commercial
kitchen that is FDA approved and in compliance with the State Department of Agriculture and
other local codes.
D.) Description of Services
Kitchen Rental - Kitchen rental will offer tenants the ability to lease a fully equipped,
commercially licensed kitchen space needed to create or expand their product/service. This
service is offered to entrepreneurs wanting to get their business off the ground or for current food
based businesses wanting to expand production or introduce new products. In addition, the
kitchen space will be available to catering companies who require extra space to mass produce
food and beverages for special events such as weddings, birthday parties, holiday parties, etc.
Kitchen Incubation - Kitchen incubation is a program that offers food-based entrepreneurs the
space, tools, and education to get their small business started. The educational aspect of this
service is what sets it apart from the rental service. Clients of the incubator will have access to
business consultation as well as mentorship in food production and cooking techniques from an
experienced Chef. Clients will gain information pertaining to food preparation and develop new
methods for efficient practices. In addition, incubation will provide networking opportunities
through the strategic partnerships.
Meals on-the-Go – Meals on-the-Go will offer pre-made meals that will be sold out of the
kitchen from 4:00 pm to 8:00 pm, Monday through Thursday. This service is meant to offer
surrounding communities and commuters traveling from White Sands and Central Las Cruces a
substitute for the fast-food restaurants that dominate I-70. Meals will be homemade using fresh

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ingredients and local produce. For example, Chicken Parmesan with pasta or Meatloaf with
mashed potatoes will be offered. Meals will be different on a daily basis to provide a variety of
options to customers.
Education Courses - Education courses will be provided by the strategic partners to The
Village’s clients and Las Cruces community members. These courses will focus on business
management and food education. The Village has a room available in the space that it is
occupying suitable for classroom-style teaching. This area will provide the collaborative space to
local businesses to facilitate networking amongst community members.
E.) Location
The Village will be located at The Sage Cafe, which is part of the East Mesa Recreation Center
owned by The City of Las Cruces. The building is located in the East Mesa area of Las Cruces,
NM. In 2013, BBQ Heaven was occupying the kitchen space at The Sage Cafe and provided a
restaurant space for the East Mesa community. Currently, the kitchen inside The Sage Cafe is
vacant. The building is primarily used for senior activities such as fitness classes, knitting
groups, and “Coffee & Current Events” sessions. The senior programming city group will
relocate to a different building within the East Mesa Recreation Center once The Village moves
into The Sage Cafe, but the library-related services offered by Thomas Branigan Library will
remain. Currently, there are no renovations needed but additional kitchen equipment will be
purchased for services offered by The Village.
The contractual agreements required to move into this space are being drawn up by The City of
Las Cruces. The Village’s lease for the Sage Cafe is a five-year commitment. Part of the contract
terms requires The Village to report annually on its economic impact to determine financial
obligations to the city. Another nonprofit is working on a contract with the city for a portion of
the space in the building, which has limited the amount of space available to The Village. Once
The Village reaches full capacity and financial means to expand, the founder plans to move the
business to a larger facility in the Amador Proximo, which is a revitalized neighborhood west of
the railroad tracks off of Amador Avenue.

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The Sage Cafe on the East Mesa
V. Mission, vision, and core values
A.) Mission
To provide a space where food-based entrepreneurs and other community members can gather
to collaborate on projects that create value for the city of Las Cruces.
B.) Vision
To facilitate economic development by nurturing local entrepreneurs, promoting job creation,
and providing education that encourages self-reliance.
C.) Values
Entrepreneurship - The Village has a strong belief in encouraging and facilitating
entrepreneurship among clients and the community at large.
Education – The Village believes in educating the community on healthy living practices and
educating the clients on cooking techniques and business skills.

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Community – The Village is firmly centered on boosting the local economy and providing a
place for community members to gather and collaborate on projects that add value to Las Cruces.
Creativity – The Village continuously encourages clients to experiment freely by testing areas
outside of their comfort zone while on the path to reaching their personal goals.
D.) Objectives
In the short term, The Village seeks to achieve the following goals:
 Create a self-sustaining cash flow by the end of 2017
 Gain nonprofit tax status by the start of 2017
 Expand past the capacity of the Sage Cafe by the end of 2018
In the long term, The Village seeks to achieve the following goals:
 Create additional revenue streams (Cooking Lessons, Birthday parties, Retail space, etc.)
 Build or lease a larger facility in the Amador Proximo or downtown area of Las Cruces
VI. Business Structure/Governance Structure
A.) Legal Structure
There are several legal structures to consider when establishing a kitchen incubator. Each
structure has advantages and disadvantages. In 2013, Econsult Solutions conducted a study of
135 kitchen incubators in the United States. The study found an almost even split between for-
profit and not for profit structures with 61 percent of the culinary incubators classified as a for-
profit and the remaining 59 percent as nonprofit. For-profit kitchens are typically located in large
urban areas that are exposed to a wider customer base, while nonprofit incubators are typically
located in a community in need of economic development. Given this research and the mission
of The Village, the ultimate goal is to be a non-profit entity. The Village’s legal structure will
initially be setup as a C-Corporation. Once operations are established, The Village will submit
Form 1023 to apply for non-profit status with a 501(c)3 designation under the education
category.
The vision and mission of The Village focus on stimulating economic development through
supporting food-based entrepreneurs and creating local jobs. The social service that the Village
provides makes it ideal for a not-for-profit entity. There are several benefits that come with non-
profit status. The major advantage is that non-profit activities are exempt from federal, state, and
local income taxes. The Village will be able to reinvest the money into the business that it saves

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from not paying income taxes. The Village will not be subject to sales tax when purchasing
equipment and supplies. Additionally, the status will allow The Village to qualify for special
grants and government funding. The Village is more likely to generate donations as a not-for-
profit entity because donors can deduct their contributions from their individual taxes. Grant
funding and donations will prevent The Village from taking on debt through loans in the future.
Non-profits enjoy the same benefits as a corporation in terms of limited personal liability. Once
granted non-profit status, The Village will be eligible to receive the taxes it pays during its time
as a C-Corp.
Filing for nonprofit status is a lengthy and involved process. It can take anywhere from two to
twelve months for the IRS to approve a 501(c)3 status. When April applies for nonprofit status,
she will date the Form 1023 application to the first day of business because her activity will
remain the same from day one. Due to the time it takes to earn nonprofit status, The Village will
initially be structured as a C-Corporation filing for articles of incorporation in with the state of
New Mexico with the state’s Public Regulation Commission. If The Village does not receive
non-profit designation from the IRS, then The Village will remain structured as a C-Corporation.
Other significant benefits of this structuring decision include the advantage of being a separate
legal entity as opposed to a flow-through entity.
B.) Corporate Governance
Under the rules of a non-profit entity determined by the Internal Revenue Service, a 501(c)3
organization must have a board of directors made up of independent members (not solely
employees). In addition, a C-Corporation must have at least two officers. The following table
represents The Village’s initial board of directors.
Board of Directors
April Christensen, Founder President
Tori Terrazas, Local Artist Secretary/Treasurer
April Christensen will be the sole shareholder of the company if The Village does not receive
non-profit designation. She will have sole control over the decisions of the business. Since non-
profits do not have owners, there will be no stockholders’ equity once the status is granted. The
officers will meet regularly to discuss the position of the business. The duties of the board
members include an annual meeting, bi-annual reporting to New Mexico Public Regulation
Commission, and an annual filing regarding the financial position of the company. The board
members will be responsible for defining the structure, processes, and policies of the business.
With regards to the direction and future success of the non-profit organization, board members

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should consider all stakeholder input. All board members must remain ethical in the financial
reporting and business decisions. The board of directors consists of members with diverse skills
such as accounting, art, and culinary expertise. As the business grows, The Village aims to add
more board members that will incorporate more skillsets.
C.) Management and Organization
April will be the exclusive on-site manager for The Village during operational hours. The
commercial kitchen will be a fully licensed space available for rental, incubation, food
distribution, and educational courses for members of the community. April will be certified as a
food safety manager required by the New Mexico Food and Drug Administration. She will
coordinate work that needs to be done with the independent contractor according to customer
needs. April will organize the kitchen schedule to ensure optimal use. In addition, April will be
in charge of communicating with other organizations to ensure that educational workshops are
scheduled for community members. In regards to Meals on-the-Go, April will work with the
independent contractor to ensure quality and safety of the meals. April must be on the premises
during business hours to act as oversight for all activity in the building to ensure safety and
operational efficiency. In addition, April will manage The Village’s online presence via social
media outlets and The Village’s official website.
In reference to the organizational structure, April will be the President and on-site manager.
Ceara Angel is an independent contractor that will be contracted for the kitchen incubation and
Meals on-the-Go. Ceara is licensed with all necessary food handling requirements. At this point
in time, these are the only people involved in the day-to-day operations. Besides April, no other
employees will be hired until business increases and additional assistance is required. While The
Village is at The Sage Cafe, April will be able to maintain the business efficiently.
VII. Market Analysis
A.) Industry Analysis
Econsult Solution reported that as of 2013, there are approximately 135 shared-use commercial
kitchen spaces throughout the U.S.2
The industry is relatively new, however, interest in kitchen
incubation has become increasingly popular due to recent trends in the food industry including
health consciousness, the locally grown food movement, and fascination with artisanal foods.
Since the industry is so new, there is no defined business model or structure. Some incubators are
geared towards niche services like organic and locally grown products, while others are aimed at
expanding existing food businesses. Some incubators offer product packaging/co-packaging for
clients. Although little data exists in regards to economic impact, the number of culinary
2
Retrieved on March 6, 2016 from http://www.econsultsolutions.com/wp-content/uploads/2013/08/ESI-
SharedKitchenReport_2013.pdf

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incubators is expected to rise within the next five years. Kitchen incubators introduce a new
market into the food industry as a whole and the city of Las Cruces.
As mentioned in the business description, the industry that The Village is most likely to affect is
the restaurant industry. In our time spent conducting market research we discovered some very
important statistics that collectively give a snapshot of the industry on a national level and state
level. These measures come directly from The National Restaurant Association.
National Level: 3
 By 2026, restaurant industry employment is projected to hit 16.1 million, adding 1.7
million jobs over the next decade. As of 2016, industry employment is at 14.4 million, or
about one in ten working Americans.
 As of 2016, the restaurant industry generates 47% of the total revenue that comes from
food. This is a major step from the 25% of total revenue the industry created in 1955.
 Restaurant industry sales have consistently increased over the last 36 years from $42.8
billion in 1970 to $782.2 billion in 2016.
 70% of consumers order healthier options at restaurants than they did two years ago.
State Level:4
 In 2014, there were 3,317 drinking and eating establishments in New Mexico.
 There were $3.3 billion in sales from restaurants in New Mexico in 2016.
 As of 2016 there are 90,300 restaurant and food service jobs in New Mexico, which
equates to 12% of employment in the state. By 2026, that number is projected to grow by
10.1%, which equals 9,100 additional jobs, for a total of 99,400.
B.) Market Statistics
The Village aims to serve the Las Cruces community and the surrounding Doña Ana County.
Doña Ana County is approximately 3,815 square miles with a population of over 214,000
people. The heart of Doña Ana County is the city of Las Cruces, which contains more than
101,000 citizens as reported on the 2014 U.S. Census.5
The median household income for this
area is $40,600, about ten thousand less than the national average. Nearly 24 percent of the Las
3
Retrieved on March 6, 2016 from https://www.restaurant.org/Downloads/PDFs/News-
Research/PocketFactbook2016_LetterSize-FINAL.pdf
4
Retrieved on March 6, 2016 from http://www.restaurant.org/Downloads/PDFs/State-
Statistics/2016/NM_Restaurants2016
5
Retrieved on February 4, 2016 from http://www.census.gov/quickfacts/chart/IPE120213/3539380

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Cruces community lives in poverty. Part of The Village’s mission is to counter this wealth
disparity by stimulating economic development and creating jobs. Based on research from the
Labor Market Review done by the Department of Workforce Solutions in New Mexico, jobs in
the leisure and hospitality market have remained unchanged over the last year.6
There are no specific statistics on in-home cooks in Las Cruces. The Village will provide
opportunities for these people to grow their customer base and earn an income through the food
they cook. There are 50 food based vendors at the local Farmer’s Market, and a majority of them
prepare their food products in their home kitchens that are licensed and certified. While these 50
vendors are customers The Village will target, they do not represent all people in town that cook
in their home.
We focused our analysis on the neighborhoods surrounding The Sage Cafe for a definition of the
market. The total population of the neighborhoods surrounding the location is 7,000-9,000
people north of I-70 and 13,000-15,000 people south of I-70. The percentage of people above the
age of 18 surrounding the location is 66-76% of the total population. Along with that, the
average income north of I-70 is $48,000-$55,000 and the average income south of I-70 is
$69,000-$76,000. Total consumer expenditure on dining out or food away from home is $3.2M-
$7.2M in the area north of I-70 and $19M-$23M in the area south of I-70 as of 2014.
Figure 1: This image represents the average income of the population in the area surrounding The Sage Cafe.
Figure 2: This image represents the consumer expenditures on dining out for the area surrounding The Sage Cafe.
6
Retrieved on April 15, 2016 from http://www.dws.state.nm.us/Labor-Market-Information/Publications/Labor-
Market-Review

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As of 2015, there were 321 firms in the accommodation and food service industry in Las Cruces.
These firms could potentially need additional commercial kitchen space for special events or to
test a new recipe, which The Village is able to provide. The accommodation and food service
industry employs over 6,000 people in the city. According to the Las Cruces city government,
there were 7 new business applications filed for food service businesses in 2015. These food-
based entrepreneurs would have benefited from testing their products and receiving business
consultation before spending the extensive capital required to establish a restaurant. According to
Small Business Administration and the Bureau of Labor Statistics, 60% of restaurants fail in the
first year. The Village aims to combat this statistic by providing the tools to test their ideas.7
The
Village is expected to stimulate the economy through direct employment in the food service
industry as well as preparing entrepreneurs to enter the market.
The services offered by The Village target similar markets. The target market for culinary
incubation and kitchen rental are people between the ages of 18 and 55, who are passionate about
culinary arts and seeking a career in the industry. The target market for Meals on-the-Go are
people between the ages of 21 and 50, who desire a convenient, healthful and fresh dinner
option. There is not a specific gender or racial demographic for the consumers of The Village.
The aim of The Village is to provide products and services that are not present in the community.
Currently, the home real estate market along I-70 is increasing, but the business market is not
increasing in conjunction. Food options are limited along I-70. This area has potential for
economic growth through additional businesses.
C.) Interest Survey
In order to gauge the level of interest in the services The Village will offer, our team composed a
survey that was dispersed among local community members. The survey contained questions
regarding the different types of services offered, price ranges for those services, and the potential
frequency of use. The survey was issued using two methods, one paper-based and one electronic.
This survey was a critical step in anticipating demand and setting prices. Revenues were
projected from the information collected, which aided in creating the subsequent financial
statements. When the survey was initially dispersed, the results suggested that most participants
were more interested in the retail space than the kitchen incubation program. Unfortunately, due
to space requirements, the retail space will not be available at the Sage Cafe. However, if The
Village makes a transition to a larger facility, then retail space will be available to all kitchen
rental and incubation clients.
The paper survey was issued at the Las Cruces Farmers’ Market, which takes place every
Wednesday and Saturday from 8:30 am to 1:00 pm on Main Street. This market hosts over 300
vendors in various product categories where 17% are composed of food/beverage vendors. Using
7
Retrieved on April 24, 2016 from http://www.bloomberg.com/news/articles/2007-04-16/the-restaurant-failure-
mythbusinessweek-business-news-stock-market-and-financial-advice

16. 16
the paper version of the survey, the majority of those food/beverage vendors were surveyed on
Saturday, February 18, 2016. In addition to the in-person survey, an online version was
published that was promoted through The Village’s Facebook page and several other Facebook
groups centered on the food culture of Las Cruces (E.g. Las Cruces Food Vendors, Las Cruces
Foodies, Las Cruces Food Trucks). For more details, please visit the link below:
https://www.surveymonkey.com/r/J6QG5M7
The results of the in-person paper-based survey are as follows:
Question Response Percentage Number of
Responses
Are you or someone you know interested in
using a culinary incubator to develop a product
or business?
Yes 33% 5
No 64% 10
Do you believe you have access to tools to grow
your product/business?
Yes 60% 9
No 40% 6
Are you interested in classes to help develop
business and culinary skills?
Yes 33% 5
No 64% 10
Do you need a retail space to sell your product? Yes 40% 6
No 60% 9
This survey was an initial analysis of the expected demand for the products and services offered
by The Village. The results show 33% are interested in the culinary incubation, 40% do not
believe they have access to necessary tools for business growth, 33% are interested in classes to
help develop business and culinary skills, and 40% expressed interest in a retail space. The
expressed interest is lower than expected because most vendors at the Las Cruces Farmers’
Market have established businesses and are content with the tools and resources available to
them. There is some interest in the products and services offered by The Village, which led to a
more in depth survey to reach more consumers in Las Cruces.

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The online survey results are as follows:
*Data collected through Survey Monkey from February 11th, 2016 - March 6th, 2016
Question Response Percentage
Number of
responses
Are you or someone you know interested
in using a culinary incubator to develop
your product or business? Yes 62% 26
No 38% 16
How much are you willing to spend per
hour to use a culinary incubator? $0 8% 2
$5-10 4% 1
$10-15 4% 1
$16-20 35% 9
$21-25 38% 10
$26-30 4% 1
$50 4% 1
$75 4% 1
How many hours per week are you going
to need the culinary incubator? 1-5 22% 4
6-10 56% 10
11-15 17% 3
16-20 6% 1
Do you believe you have access to tools to
grow your product/business? Yes 47% 16
No 52% 17
Check mark any of the following services
that you are interested in: Food Business Start Up 18
Commercial Kitchen Rental 13
Promotional/Films Kitchen 7
Cooking Lessons 19
Summer Camps 11
After school enrichment 8

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Junior Chef Birthday 9
Work Time Lunch Clubs 5
Meals on-the-go 16
Pop Up Restaurant 1
Diabetic Foods 1
Community Kitchen/Restaurant 1
Pay What You Can Community
Cafe 1
Bake for service 1
Nutritional Education Programs 1
How much are you willing to spend per
cooking lesson? $10-15 61% 20
$16-20 15% 5
$21-25 24% 8
Do you need a retail space to sell your
product? Yes 32% 12
No 66% 25
N/A 3% 1
How much are you willing to pay for a 6
day a week, indoor market (retail space)
to sell your product each month? $50-75 28% 5
$76-100 33% 6
$101-125 6% 1
$126-150 17% 3
$200+ 6% 1
N/A 6% 1
Already at
Farmers’ Market 6% 1
Based on the online survey results, which reached a wider socioeconomic audience than the
paper-based survey, more than half of respondents were interested in kitchen incubation and the
business consultation services. Thirty-five percent of those respondents indicated that they are
willing to pay $16-$20 per hour for rental and incubation services and 38% indicated that they
are willing to pay $21-$25 per hour. The specific services that generated the most interest were

19. 19
incubation, cooking courses, Meals on-the-Go, and commercial kitchen rental time. Furthermore,
the majority of respondents indicated that they would be interested in using the commercial
kitchen space for 6 to 10 hours per week. Overall, these results contain positive feedback on The
Village’s current and potential services.
D.) Market Study
In order to gain a better insight into the number of people that are patrons of the restaurants
closest to the Sage Cafe, managers of these locations provided estimates on how many customers
they serve between the hours of 4pm and 8pm on a typical weekday (Monday - Thursday).
Below is a list of the restaurants that provided data and a map that displays their proximity to the
Sage Cafe. McDonald’s and Church’s Chicken are approximately 1.5 miles away from The
Village. Subway and Los Compas Mexican Restaurant are less than a mile away from The
Village.
Figure 3: The Sage location (green circle) in comparison to restaurants (red pin) targeted for Market Study.

20. 20
Meals On-The-Go Market Research
Location Meal price for family of 4 Time Customers
Subway at
5995 Bataan Memorial, Las
Cruces, NM 88012
$42.00 4PM-8PM 7-8
Los Compas at
6335 Bataan Memorial, Las
Cruces, NM 88012
$44.00 4PM-8PM 133
Church's Chicken on
Bataan Memorial, Las Cruces,
NM 88012
$43.19 4PM-8PM 70
McDonald’s at
4810 Mesa Grande Dr., Las
Cruces, NM, 88012
$25.88 4PM-8PM 230
The meal price for a family of four was found from the respective menus of each restaurant. The
meal price for Subway was based on two footlong sandwiches, two six-inch sandwiches, four
bags of chips and four drinks. The meal price for Los Compas was based on four enchilada plates
and four drinks. The meal price for Church’s Chicken was based on twenty piece mixed chicken,
four large sides and eight biscuits. The meal price for McDonald’s was based on four Big Mac
meals.
While locations closer to the Sage Cafe like Subway experience lower customer traffic,
restaurants such as McDonalds and Los Compas attract the highest traffic on weeknights. Easy
accessibility to these locations is available for commuters from Holloman Air Force Base and
White Sands Missile Range. Call ahead and drive-thru services offered by these locations allow
for convenience and quick pick up. The Village will target the consumers who commute and
those residing in nearby neighborhoods by offering fresh, ready-to-eat dinner meals.
E.) Competitor Analysis
Although there are no existing entities in Las Cruces that directly compete with The Village in
all services, there are several businesses that offer stand-alone services that compete with
specific revenue streams. The Village will be the first shared-use kitchen/kitchen incubator to
enter the Las Cruces market, which is an opportunity that The Village can capitalize on.
However, when each service is isolated we can see that there are a number of competitors.

21. 21
Community Kitchens - Some community members may already have access to other large
kitchen spaces through their Church or Community Center. By taking advantage of those other
resources, some potential clients may not see the need to rent the kitchen at The Village.
Fast-food Restaurants - The Village’s Meals on-the-Go will be directly competing with the
traditional fast-food restaurants that surround the Sage Cafe. For example, you can get a 20 piece
chicken meal with 4 large side dishes and 8 biscuits from Church’s Chicken for $43.19 whereas
you can get a meal that feeds 4 from The Village for approximately $40 as well. In the market
research section, we discuss the prices of all of the food service competitors in the area (see table
of marketing research in the marketing section).
Fit Meals 2 Go - The Dickerson Group, LLC is a local catering company in Las Cruces. One of
the services The Dickerson Group, LLC provide are fit meals on the go. Fit Meals 2 Go has 6
different programs. The programs require 5 or 10 meals to be purchased a week with meals
costing $10 each. The meals can be picked up between 10 am and 2 pm during the week or
delivered for $15 per week. Fit Meals 2 Go is a direct competitor because they provide a healthy
food option, but they are limited on pickup time and require customers to commit to buy in bulk.
DACC Classes - The Dona Ana Community College (DACC) Community Education Program
offers a ‘Cooking Methods’ class to local citizens. The DACC cooking methods class includes
mentorship from a professional Chef. This class could potentially take away clients from The
Village’s incubation services. The class is a 30-day course averaging 5 hours per week. Students
who enroll in the course pay $395 for tuition, which averages out to $19.75 per hour. Currently,
this program has not received any enrollment.
VIII. Risk Analysis
A.) Legal Issues
As a food based establishment, there are several legal risks The Village can face impacting both
short term and long term growth. Food safety is a major liability to this organization as the
kitchen space is subject to exposure of foodborne illness. While users renting the kitchen space
are personally responsible for any food products sold to the public and their potential risk, The
Village will be liable for any harm caused by its Meals on-the-Go business segment. Foodborne
illnesses and spoiled products can cause reputation and image risk. A non-profit organization that
seeks to provide products and services to the community must be trusted. Brand image and trust
are key for The Village to succeed, especially as a first mover. The company risks future
business growth if they cause any harm to their consumers. The Village seeks to eliminate this
risk by establishing ethical, thorough, clean and safe cooking procedures and food-handling
standards. The Food and Drug Administration provides a Food Code model that outlines and
establishes guidelines to reduce factors causing many food-associated risks.8
By following the
8
Retrieved on February 7, 2016 from
http://www.fda.gov/downloads/Food/GuidanceRegulation/RetailFoodProtection/FoodCode/UCM374510.pdf

22. 22
FDA’s model on proper food handling and storage, The Village can avoid food liability risk
factors and continue to operate safely and properly.
Due to its relationship with the independent contractor, The Village is exposed to labor law risk.
There is often a gray area when deciding whether someone is an employee or independent
contractor. The IRS does not provide a clear definition between these roles but rather criteria to
define an independent contractor. It is critical for business managers to be vigilant in their
designation of independent contractors. The Village’s founder has established kitchen Chef,
Ceara Angel, as an independent contractor in charge of incubation and Meals-on-the-Go. In
addition, Ceara Angel will hold the Vice President position on the company’s Board of
Directors. Should a mislabeling occur, there are tax and wage implications that will result. In
addition, The Village faces the risk of the independent contractor filing a complaint with the
Department of Labor regarding misclassification.9
The Village can eliminate labor risk by
establishing a contract with the Independent Contractor that is based on IRS definitions.
The Village will be engaging in a series of written contracts with The City of Las Cruces, its
independent contractor, and kitchen clients. Due to the legal risk associated with these contracts,
there must be clear and specific details defining the relationship between the parties. A valid
contract must include consideration, offer and acceptance, legality, and competency. Should a
contract be missing any of these specified elements, it will be considered void, putting The
Village at risk. In addition a clear definition of breach should be included in each contract and
the result of such breach. It is critical that The Village receive legal consultation and guidance in
contract preparation. The Village seeks to eliminate legal risk by having contracts reviewed by a
legal professional, which could be provided through current organizational relationships.
The Village faces risk to long-term goals based on the designation of non-profit status. If The
Village does not receive non-profit status from the IRS, many assumptions are subject to change
for the business. The Village will still have the contract with the city for The Sage Café however,
at the annual economic impact review, The Village can be subject to rent and utility fees. The
potential for grant funding, discounted services and tax-free income will alter. There is no
foreseeable reason that The Village will not receive non-profit designation, but it is key to
acknowledge this risk. The Village seeks to eliminate this risk by properly, efficiently and
correctly applying for nonprofit status with the IRS Form 1023 with the assistance of a
professional public accountant.
9
Retrieved on April 2, 2016 from https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-
Contractor-Self-Employed-or-Employee

23. 23
B.) SWOT Analysis
Strengths  Low Startup/Monthly Costs: Many resources are provided by The
City of Las Cruces at no extra cost including utilities, Internet, and
kitchen equipment.
 Strategic Partnerships: The Village will be partnering with several
well-established Las Cruces businesses that will act as additional
resources. (WESST Consulting, MVEDA, La Semilla, etc.)
 Team: There are many community members committed to fulfilling
the mission and vision of The Village.
 Experience: Ceara has a culinary education and expertise in the food
industry.
Weaknesses  Location: The Sage Cafe is about 15 minutes away from high traffic
areas in downtown Las Cruces.
 Web/Social Media: Online presence is weak, unclear, and inconsistent
with the mission and vision.
 Contracts: There are no firm, written contracts with strategic partners.
 Management: April has limited experience/background in food
industry.
Opportunities  Location: The Sage Cafe is located in an underdeveloped and
underserved area of Las Cruces with few eating establishments.
 Relationships: Founder has many personal connections and well-
established relationships with influential community members.
 First Mover: The business is the first of its kind to enter the Las
Cruces market.
 Amador Proximo: Las Cruces Downtown Planning is focusing on
growing the downtown area by attracting new businesses like The
Village.
 Cultural Shift: Interest in food-based small businesses like food trucks
and specialty restaurants is a growing market.
 Diversity: There is a lack of variety in local restaurants.

24. 24
 Health Trends: Health consciousness among consumers is growing
due to cultural trends.
 Competitors: Few competitors exist in the healthy meals to go
segment around Las Cruces.
Threats  Competition: There are several other businesses/entities that offer
similar services like those of The Village.
 Complacency: Most Farmers’ Market participants are happy where
they are and many do not see the need to develop their business
further.
 Food Safety: Strict standards in the food industry threaten operations
if not met.
 Partners: There is inherent risk when taking on multiple partners who
may or may not meet expectations.
 Legal Structure: Non-Profit Status is not received.
 Price & Variety: Nearby restaurants offer a larger menu selection with
comparable prices.
The Village faces some internal weaknesses in regards to its business model. With no significant
financial support, The Village is initially limited to the amount of capital it can raise on its own.
The owner plans on opening a line of credit under the business name that will be used for startup
resources including kitchen equipment. The line of credit will offer limited funding for business
operations. Another significant weakness in The Village’s business plan includes its web/social
media presence. While a Facebook page and crowd funding account exist for The Village, both
are weak in content and inconsistent with the company’s mission and vision. Social media
advertising has increased in the past years reaching a wider audience than traditional marketing
methods. This weakness can become a strength for The Village by investing in professional
graphic design to update and revitalize the image and content it is portraying online.
The Village faces many opportunities in the market. The location of the Sage Cafe offers closer
proximity to residents in the East Mesa area of I-70 and those commuting from military bases.
This area is currently underserved with extremely limited food options. The Village has the
potential to offer the community a new dining option that allows consumers to take home pre-
prepared meals. In addition, The Village is the first culinary incubator to reach the Las Cruces
area, meaning it is not subject to any direct competition. The closest kitchen incubator is 200
miles away in Albuquerque, NM. Although initial business operations will commence at the
Sage Cafe, future plans are already in place to expand into the Amador Proximo Project. The

25. 25
Amador location will provide increased kitchen space for more client rental and incubation. The
Amador space will also be centrally located in a higher traffic area attracting additional potential
users. Meals on-the-Go offered by The Village will introduce a new healthy to-go cuisine option
in Las Cruces. Dickerson’s Catering Company currently holds the entire market share for healthy
meals-on-the-go with their Fit Meals 2 Go service. The Village has the opportunity to gain
market share from the current monopoly.
While The Village faces many opportunities, the business is also exposed to a variety of threats.
There are numerous existing food businesses in Las Cruces that offer food options. These food
options compete with The Village’s Meals on-the-Go. Secondly, the growth in the Food Truck
industry has attracted many customers and potential clientele. If a food truck were to set up
operations near the Sage Cafe it would likely take some of the market share for quick and
convenient meals. In addition, The Dickerson’s Group, LLC offers Meals 2 Go that are aimed at
health conscious consumers. On the commercial kitchen side, The Village markets its services to
Farmers’ Market participants by providing additional space for increased production of their
product. However, many food-based participants do not feel the need for additional space or
further product development.
IX. Business Operations
A.) Scheduling
The Village has a specific schedule for its different business activities. There are constraints on
the times and availability because of the limitations of the location, the owner and the
independent contractor. A total of 6 hours are designated for kitchen rentals in the morning. The
rental hours in the morning are geared towards established entrepreneurs that have availability
during the daytime. A total of 4 hours are designated for kitchen incubation in the evening. The
incubation hours are focused on clients starting businesses in the food industry that may have
day jobs, which restrict their availability during the day. All renters must schedule in two-hour
increments for a maximum of four hours for incubation and a maximum of six hours for kitchen
rental per day. Two hours in the late afternoon are set-aside for prep time and cook time for
Meals on-the-Go, which allows meals to be ready for dinner time. Customers can come to The
Village between the hours of 4:00 pm and 8:00 pm to pick up Meals on-the-Go. There is a gap in
between kitchen rental time and Meals on-the-Go time for the owner to have a break and ensure
the kitchen is ready for the afternoon clients. This two-hour time break will also act as a catalyst
in case renters go over their scheduled time in the morning or meal prep needs to start earlier
than 2:00 pm.

26. 26
Day Hours for Kitchen Hours for Incubation Hours to prep meals on the go
Monday 6 am - 12 pm 4 pm - 8 pm 2 pm - 4 pm
Tuesday 6 am - 12 pm 4 pm - 8 pm 2 pm - 4 pm
Wednesday 6 am - 12 pm 4 pm - 8 pm 2 pm - 4 pm
Thursday 6 am - 12 pm 4 pm - 8 pm 2 pm - 4 pm
Friday 6 am - 12 pm 4 pm - 8 pm N/A
Saturday 7 am - 1 pm N/A N/A
All clients must include cleanup time in their schedule time block. All renters are required to
leave the kitchen cleaned and ready for the next renter. All incubation time and Meals on-the-Go
preparation is subject to constraints based on the agreement with the independent contractor,
Ceara Angel, and her availability. The on-site manager must be present while the kitchen is
being used and the independent contractor must be present for incubation and for Meals on-the-
Go preparation.
Renters must schedule at least a day in advance. A calendar of the schedule will be available
through The Village’s website, which provides an efficient and convenient method for renters.
The online schedule will give the on-site manager a clear expectation for how many clients will
be using the kitchen and what tasks are expected of the independent contractor. The online
schedule will include details about renting the kitchen, hours of availability, photos of the
kitchen equipment, a map of the location and an option to book rental hours based on the
customer’s needs. The following image is an example of what will be provided on The Village’s
website.
Figure 4: Example of online schedule.

27. 27
B.) Pricing Strategy
Kitchen Incubation $25/hour
Kitchen Rental $20/hour
Meals on-the-Go $10/meal
The pricing strategy was established based on the survey and market analysis. From the interest
survey, 35% of respondents were willing to spend $16-$20 per hour for kitchen incubation and
38% of respondents were willing to spend $21-$25 per hour for kitchen incubation. Kitchen
rental price was set at $20 per hour because consumers stated they were willing to spend that and
is comparable to similar services. Incubation price was set at $25 per hour because of the
independent contractor involvement and the portion of the cost that must go to her. The minute
difference between rental and incubation prices will encourage new clients to participate in
incubation.
The pricing of $10 per meal was established through surrounding restaurant options, Fit Meals 2
Go pricing and the costs of production. With food costs at 35% and independent contractor costs
at 25%, the meal cost is $10 to the consumer. This price is competitive with local restaurants and
Fit Meals 2 Go (refer to the table in marketing research section and the competitor analysis
section). Ten dollars per meal is more expensive than McDonald’s but the quality of the food
distinguishes The Village’s Meals-on-the-Go from dining options in the area. Meals on-the-Go is
not a direct substitute for these dining options but it is a meal option that families will be willing
to purchase on a regular basis.
Pricing will be re-evaluated depending on the usage of the kitchen; for example, if the kitchen is
not being used as often as expected, The Village should consider lowering prices or offering
special discounts. On the other hand, if The Village is at full capacity, a price increase should be
considered. Pricing will also be re-evaluated on an annual basis by the Board of Directors when
they conduct their report for The City of Las Cruces. Pricing could change significantly if the
business opens a location in central Las Cruces based on resources and equipment available.
C.) Client Requirements
Clients using the incubation and rental services offered by The Village will need to have specific
requirements fulfilled before authorized use of the kitchen is granted. All users, regardless of
their service needs, must carry general liability insurance. Users must also obtain product
liability insurance if they plan on selling the product they cook in the kitchen. In addition, users
must obtain a food handler's certificate from SafeServ or any other online training site approved

28. 28
by New Mexico Environmental Health Department (NMEHD) in accordance with Subsection D
of 7.6.2.8 of the New Mexico Administrative Code10
(NMAC) outlining the food handlers’
requirements.
Clients must complete an application outlining purpose, product, and estimated hours of usage.
Incubation clients will be required to submit a business plan to better align users with
educational courses offered by The Village and its consulting partners. Contractual agreements
will be required of each client. These contracts will outline the code of conduct and policies
users must follow in regards to behavior and procedures. Kitchen clients and tenants will be held
to the highest standards regarding hygiene and safety. All users will be required to attend a
mandatory kitchen training session, conducted by April and Ceara, before using the kitchen to
learn about the rules and regulations. Users who do not follow these policies and procedures will
not be permitted to use the kitchen.
D.) Marketing Strategy
The marketing strategy of The Village is a critical step in introducing the business to the
community. The location has limited visibility to traffic, which makes it important to reach the
community through multiple advertising methods. The Village plans on using social media such
as Facebook and Instagram to develop an online presence with the food based community. With
a professional and informative presence on social media, community members can follow what
The Village is doing and share information amongst their own friend groups. The Village will
share photos of client interactions, upcoming events, special discount offers, networking
opportunities and educational opportunities. The Village will also be promoting their strategic
partners online and vice versa. April will be managing the social media presence and keeping
information regularly updated.
The Village plans to use The Las Cruces Bulletin to distribute print advertisements. The Village
will have a standard advertisement run every month with information on hours of operation and
services offered. In addition, specialty ads will be distributed when special events occur or
special promotions are offered. The Las Cruces Sun News will run a free press release to
announce The Village’s opening. Another form of print advertising The Village will utilize is
paper flyers. Flyers will be distributed at local events, shopping areas, and strategic partners’
offices. Print advertising will aid in reaching community members who do not participate in
social media. The Village also plans to create two vinyl banners; one to be placed outside of The
Sage Cafe for aesthetic appeal and another used at community events.
The strongest strategic marketing plan is through the partner relationships with MVEDA, La
Semilla, WESST consulting and other local businesses. The Village plans on hosting educational
10
Retrieved on March 20, 2016 from http://164.64.110.239/nmac/parts/title07/07.006.0002.htm

29. 29
workshops in conjunction with local non-profit businesses at the Sage Cafe. These strategic
relationships will allow The Village to become a part of the community through their established
customer bases. The Village has chosen to offer educational workshops at no charge because of
the non-profit mission of the company. This will help develop a relationship with the strategic
partners, community members, and clients. Offering educational workshops will establish The
Village as a business that aims to assist the local community. MVEDA and WESST will refer
their food-based clients to The Village’s incubation and rental services. Because The City of Las
Cruces owns the building and wants to assist economic development, they will promote The
Village through its official government website.
X. Startup Expenses and Capitalization
A.) Permit & Licensing Fees
The Village will operate as a certified commercial kitchen space available for incubation and
kitchen rental. Currently, The Village holds a business permit granted by The City of Las Cruces
under an LLC Tax ID. A legal structure transition will occur before June 2016 establishing The
Village as a C-Corporation. There are no fees associated with the transition since initial business
license fees have already been paid. However, The Village will incur an annual $40 registration
fee to continue operations. In addition, the New Mexico Environmental Health Department11
(NMED) will require a $200 annual food handling permit fee for operation purposes. There are
no application fees associated with either The City of Las Cruces or NMED. The on-site
manager must obtain a Food Safety Manager Certification as required from the New Mexico
FDA Food Code12
. The certification will cost $125 and is subject to re-examination every 5
years. In the future, The Village is subject to possible fees if the city changes its regulations in
regards to food facilities and operations.
B.) Kitchen Equipment
The Sage Cafe includes most of the kitchen equipment needed for operations at no extra cost to
The Village. The space provides enough equipment to accommodate one renter in the cooking
area at a time. The following table lists the commercial kitchen equipment included in the rental
of The Sage Cafe.
11
Retrieved on March 20, 2016 from https://www.env.nm.gov/fod/Food_Program/applications.html
12
Retrieved on March 19, 2016 from
http://www.foodsafetytrainingcourses.com/new_mexico_food_safety_training_course.html

30. 30
6 Burner Range with Oven Gas Griddle with Oven
Gas Deep Fryer Ice Machine
Reach in Freezer Reach in Refrigerator
Prep Tables with Sink Exhaust Hood
Hand Sink Dishwasher
Storage Shelving Work Tables
Food Processor Convection Oven
Janitor’s Sink Cool and Hot Serving Stations
Steamer Oven Floor Drains with Grates
Disposer Dish Sink
Vegetable Sink Pot Rack
Bun Rack Receiving Cart
Serving Dishes Utensils
Given that the large equipment is provided, The Village will only need to purchase a relatively
small amount of additional equipment. Below is a list of the additional equipment The Village
will buy prior to beginning operations. The clients will provide any equipment not listed in the
table above and below, as they deem necessary.
20 qt Mixer 20 qt Mixer Bowl
12” Manual Slicer Scale 50 lbs
Small Portion Scale Juicer
Industrial Garbage Can (23G) Aluminum Baking Sheets
Miscellaneous Cooking Supplies Packaging Materials (Meals on-the-Go)
C.) Financing
The Village will not incur significant startup costs in the beginning of its operations. Since The
City of Las Cruces has a commitment to supporting local businesses and advancing the local
economy, they have agreed to allow The Village to operate out of the Sage Cafe at a rent-free
rate. They understand the impact The Village will have on the local economy providing support

31. 31
and services to local food-based entrepreneurs. Contractually, this is done by subtracting the
economic impact the business is projected to have on the community from the fair market value
of the space. In addition, the city has agreed to pay all the utility expenses associated with The
Village. Because the building is already equipped with most of the industrial kitchen items
needed, The Village will only need to purchase minor appliances to fulfill the commercial
kitchen requirements. This equipment will be purchased through a line of credit provided by the
company’s current financial institution, Pioneer Bank or another local bank like Citizen’s Bank.
The business line of credit is based off an 8% annual interest rate13
. In addition, the line of credit
will provide funding for initial food costs associated with the Meals on-the-Go due to limited
cash inflows during the first seven months of operations. The line of credit will be primarily used
to fund these initial expenses but is available for additional use as determined by the Board of
Directors.
Upon approval of The Village’s non-profit status, the business will be capable of applying for
additional funding to support the expansion through grants and donations. Non-profit kitchen
incubators are more successful at receiving grant money than for-profit incubators because there
is a larger pool of grant funding options available to non-profit organizations. The Village will be
able to apply for FundIT, a program developed by a group of New Mexico agencies assisting in
financing methods to community projects.14
The Village will be eligible to apply for this
program under the business incubator and revitalization description. In addition, the United
States Department of Agriculture offers a variety of specific grants available to The Village due
to its operations as a non-profit. One example is the Local Food Promotion Program (LFPP)
grant that offers funds for the development and expansion of local food businesses increasing the
promotion of domestic consumption. Awards for the LFPP can range from $25,000 to $500,000
depending on whether the business is looking to establish or to expand its operations.15
For better
success in receiving the grants available, The Village will need to collaborate with an
experienced grant writer. Grants are very specific in the requirements and distribution of funds.
Each grant received by The Village will need to be kept separate and accounted for to make
certain grant funds were spent for their intended purposes. Funding from USDA and other
business/agriculture programs will allow The Village to grow and impact a larger community.
13
Retrieved on April 2, 2016 from http://fitsmallbusiness.com/sba-loan-rates/
14
Retrieved on February 2, 2016 from https://gonm.biz/business-resource-center/edd-programs-for-
business/finance-development/fundit/
15
Retrieved on February 2, 2016 from
https://www.ams.usda.gov/sites/default/files/media/LFPP%20RFA%202016.pdf

32. 32
XI. Pro Forma Financial Statements
A.) Assumptions
The following financial statements are based on receiving non-profit status, maintaining the no-
cost rent and utilities, increased activity along I-70 and the results received from the market
studies, including the interest survey. Refer to the market analysis section and cost narrative
section for more details.
B.) Pro Forma Statement of Activity
Appendix I portrays The Village’s Pro Forma Statement of Activity at year-end 2016, 2017,
2018, and 2019. Keep it mind that operations are expected to begin June 2016, so the financial
position shown in the activity statement for year 2016 is based on 7 months. The statement of
activity was built on the most likely scenario of our revenue streams. Net income by the end of
2016 is projected to be over $7,000. As you can see, net income is expected to grow year after
year, with the exception of 2016 to 2017. More explanation will be provided in the following
discussion.
Appendix IV-VI refers to the 42-month projection of cash flows, which demonstrates the cash
inflows and outflows. The inflows represent the revenues during our best-case, mid-case and
worst-case scenario. The revenues were projected based on time constraints, scheduling
constraints, responses received from the surveys and market research from restaurants in the
area. The Village’s capacity for Meals on-the-Go are 30 meals made per day. The Village will
increase production of meals as demand increases or adjust projections as the manager
recognizes trends in sales. The Village will donate any meals that do not sell before their sell-by
date to local shelters, such as Community of Hope or Gospel Rescue Mission. Overall, kitchen
rental and kitchen incubation hours decrease during the months of December and January
because of the assumption that clients will not be using the kitchen during the week of major
holidays.
In the best-case scenario, the kitchen rental hours begin at 60 hours a month in June 2016 and
increase to 144 hours per month by November 2016. Kitchen rentals remain maxed out at 144
hours for 2017-2019 except for the holiday months. The kitchen incubation hours begin at 50
hours a month in June 2016 and increase to 80 hours per month by November 2016. Kitchen
incubation hours remain maxed out at 80 hours for 2017-2019 except for the holiday months.
Kitchen rental and kitchen incubation hours decrease in December and January because of the
holiday seasons. During June 2016, 20 meals will be sold and 80 meals will be sold a month by
December 2016. Meals on-the-Go sales will increase to 90 meals in 2018 and 100 meals in 2019.
Kitchen rental hours and kitchen incubation hours have a time constraint but Meals on-the-Go
have more flexibility to increase sales.

33. 33
In the mid-case scenario, the kitchen rental hours begin at 50 hours a month in June 2016 and
increase to 100 hours per month by November 2016. Kitchen rentals increase to 110 hours in
June 2017, 120 hours in February 2018, 130 in July 2018 and 140 in February 2019. Kitchen
rentals remain the same for in between months except for the holiday months. The kitchen
incubation hours begin at 25 hours a month in June 2016 and increase to 50 hours per month by
November 2016. Kitchen incubation hours increase to 60 hours in February 2018, 70 hours in
February 2019, and remain the same for months in between except for the holiday months.
Kitchen rental and kitchen incubation hours decrease in December and January because of the
holiday seasons. During June 2016, 10 meals will be sold and 30 meals will be sold a month by
December 2016. Meals on-the-Go sales will increase to 40 meals in January 2018, 50 meals in
July 2018, 60 meals in January 2019 and remain the same for months in between. Kitchen rental
hours and kitchen incubation hours have a time constraint but Meals on-the-Go have more
flexibility to increase sales.
In the worst-case scenario, the kitchen rental hours begin at 25 hours a month in June 2016 and
increase to 50 hours per month by November 2016. Kitchen rental hours decrease in December
and January because of the holiday seasons. Kitchen rentals increase to 60 hours in February
2017, 70 hours in July 2017, 80 hours in February 2018, 90 in July 2018 and 100 in February.
The kitchen incubation hours begin at 20 hours a month in June 2016 and increase to 40 hours
per month by September 2016. Kitchen incubation hours remain the same for the rest of 2016-
2019 because of the assumption that kitchen incubation might not have a market in the
community. During June 2016, 5 meals will be sold and 10 meals will be sold a month by July
2016. Meals on-the-Go sales will increase to 30 meals in January 2018, 40 meals in July 2018,
50 meals in January 2019 and remain the same for months in between. Kitchen rental hours and
kitchen incubation hours have a time constraint but meals on the go have more flexibility to
increase sales.
Figure 5: Revenue projections.

34. 34
Now that the revenues have been explained, the cost side of the statement of financial activity
will be reviewed. The expenses are broken down between variable costs of goods sold and fixed
operating costs. The following cost narrative will provide explanation for each line item.
Independent Contractor Compensation - Ceara Angel is a graduate in culinary arts and has
extensive experience in the food industry through her personal catering company. Ceara is an
independent contractor for The Village. As the independent contractor, she will use her
experience and expertise to provide mentorship in the kitchen incubation and to prepare the
meals. She will receive a percentage of the revenue when a customer uses kitchen incubation or
purchases a meal on the go from The Village. The percentage ranges from 25-35% based on her
direct impact on that revenue stream as well as the fixed costs related to each revenue stream.
She will be compensated for the work she agrees to participate in.
Revenue Stream Fee Percent of Revenue Total Per Person
Kitchen Incubation $25/hour 35% $25 x .35=$8.75
Kitchen Rental $20/hour 0% $0
Meals on the go $10/meal 25% $10 x .25=$2.50
Accounting Fees – The Village will file for articles of incorporation with intent to apply for non-
profit status with the IRS. The process to file a Form 1023 is extensive and requires a thorough
understanding of different tax articles and requirements for non-profit status. The Village will
need to seek consultation through a local accounting firm to ensure she properly fills out tax
forms and understands the tax implications with respect to a non-profit organization. This
consultation could cost $145-225 per hour, which was a rate range provided by a local
accounting firm, Beasley, Mitchell & Co. LLP. The Village is projected to spend $1,200 for
professional accounting consultation during the non-profit application process. Following that,
The Village will file taxes with a professional accounting firm for the first year of business for an
average cost of $800. This is necessary because of the implications of not receiving non-profit
status. In the future, The Village aims to have an accounting professional on the board to assist in
tax filings.
Rent and Utilities - As previously mentioned, The Village will be operating out of the Sage
Cafe. The Sage Cafe is owned by The City of Las Cruces. The city’s community and economic
development departments have a commitment to supporting local businesses and advancing the
local economy. The city acknowledges the impact that The Village will have on the local
economy by fostering food-based entrepreneurs. Thus, the city has agreed to provide the Sage
Cafe to The Village at a rent-free rate. Contractually, this is done by subtracting the economic
impact the business is projected to have on the community from the fair market value of the

35. 35
space. In addition, the city has agreed to pay all the utility expenses associated with The Village.
The city currently covers utility costs for the building because of the community activities,
including a computer lab, library and senior center. Utilities covered include electric, gas, waste,
and water. This type of arrangement is not uncommon. Many other kitchen incubators including
The Mixing Bowl in Albuquerque operate out of city or county owned facilities.16
Other services
provided by the city at no additional cost to The Village are Internet access and a uniformed
security officer.
Kitchen Equipment - The location The Village is leasing includes most of the commercial
kitchen equipment required for operations of the culinary incubator. However, some additional
equipment is needed and will have to be purchased by The Village. The estimated kitchen
equipment start-up cost is $2,700. Fortunately, the large, expensive items are included keeping
the equipment expense relatively low. Additional equipment not provided by the city includes a
mixer, slicer, scale, juicer, industrial garbage can, baking sheets, and other small cookware. All
kitchen equipment was valued using a licensed commercial kitchen equipment dealer.17
It is
important to note that the cost for used equipment was utilized for all equipment excluding the
baking sheets and garbage bin, as these items were considered necessary to be purchased new. If
The Village bought all new equipment the estimated start-up cost for additional equipment
would be closer to $3,400. This indicates that The Village can save approximately $700 by
acquiring used kitchen equipment.
Maintenance and Repairs - Given that the city owns the kitchen equipment, they will be
responsible for any maintenance or repairs. However, The Village will be required to regularly
service the equipment and keep it up to the standards set by the New Mexico Environmental
Health Department and FDA. For example, ventilation hoods in particular must be cleaned
regularly to prevent grease fires from occurring. The kitchen manager who runs the test kitchen
through New Mexico State University’s Hotel Restaurant Tourism Management program, Chef
Hartley, recommended the same company that services his kitchen, Facilitec. A representative
from Facilitec was able to provide a quote on service fees based on the size of The Village’s
kitchen and the average expected usage. He estimated $385 per service and suggested a bi-
annual cleaning of the ventilation system for 2016 and 2017. Since kitchen usage is forecasted to
increase by 2018, a tri-annual maintenance service will be required.
Permits & Licensing - The business will incur a $40 annual registration fee with The City of Las
Cruces to continue operations. In addition, the New Mexico Environmental Health Department
requires a $200 annual food handling permit fee but no application fee. The manager’s food
handling certificate costs $125 to obtain and must be renewed every five years.
Insurance - Generating an insurance quote for a kitchen incubation business was difficult as this
concept is fairly new to the New Mexico and even newer to Las Cruces. After several attempts at
various insurance agencies, Charlie Estrada from Pat Campbell Insurance provided a quote
based on the business and its operations. Business coverage includes Commercial General
16
Retrieved on April 20, 2016 from http://www.rgcdc.org/2014/03/the-mixing-bowl-welcomes-new-clients/
17
Retrieved on March 13, 2016 from http://www.webstaurantstore.com/cooking-equipment.html

36. 36
Liability Insurance (CGLI) to protect The Village against any claims, packaged with Product
Liability Insurance (PLI) combating against injury/damage resulting from production/distribution
of the businesses Meals on-the-Go segment. In addition, Professional Indemnity Liability
Insurance (PLII) will provide The Village protection in regards to negligence claims made by
clients pertaining to advice or service given by The Village. Additional coverage is
recommended as The Village grows and expands its operations.
Advertising - As discussed in the marketing strategy section, The Village will reach the
community through traditional paper methods and social media. After getting rate-quote cards
from the advertising managers at each of our local newspapers we have decided that the best
choice would be to take out a half page, full color advertisement under the business section using
a package deal that provides 12 ads over 12 months. This package will cost $970 for the Las
Cruces Bulletin. In addition, The Village will submit a press release when operations begin,
which the Las Cruces Sun News will publish at no charge. Flyers are relatively inexpensive
when bought in bulk, so The Village will order 500, full page, full color flyers for distribution
across Las Cruces. The most cost effective option for the 500 flyers will be approximately $105-
$130 dollars or about $0.20 per page. The initial signage for the Sage Cafe will be a 3x6 ft vinyl
banner. A second banner will also be purchased for advertisement at events outside of the
physical location. Together these will cost $118, or $59 each.
Flyers Quantity Price (one time)
FedEx 500, regular paper $300
PrintRunner 500, 80 lb. glossy paper $100
VistaPrint 500, regular paper $130
GoPrint.net 500, 80 lb. gloss paper $103
Staples 500, regular paper $145
Wages/Payroll Taxes- As discussed under the management section of this paper, April
Christensen will be the on-site manager of The Village. The on-site manager will be responsible
for opening and closing the kitchen daily in addition to being present while the kitchen is in
operation. The manager will not take a salary during the first 7 months of operation during 2016
to allow the organization to develop and grow through minimal fixed costs. The manager will
receive a salary of $17,500 during 2017, which is based on the amount of hours she will work at
The Village and an approximate hourly rate of $8.41. The salary will increase to $19,500 in 2018
and $21,500 in 2019. The salary is scheduled to increase because of the increase in customer

37. 37
usage and the amount of time she will need to spend with outreach and in meetings with strategic
business partners. The payroll taxes are based on $2.30 a quarter for New Mexico workers
compensation’, 6% of first $7,000 for FUTA and 2.25% of the first $24,100 for SUTA.
Vehicle Allowance - In order to maintain her relationship with her strategic partners, the
manager will need to travel downtown for meetings and other events. Thus, we have budgeted
for a vehicle allowance to compensate gas and the wear and tear on her personal vehicle. The
$1,244 expense was calculated based on the distance between The Village’s location off I-70 to
downtown Las Cruces which is 8 miles, or 16 miles round trip. The strategic partners WESST,
MVEDA, and city offices are all located in the downtown area. The vehicle allowance is based
on three trips per week or 192 miles per month.
Office/Cleaning Supplies- The Village will need necessary office and cleaning supplies to
conduct business successfully. The following supplies and units needed on annual basis are
estimated. The quantity per unit and cost per unit were found on Office Depot Business’s
website.18
The monthly cost was rounded up to $170 in case of discrepancies in cost. The
monthly cost of supplies increases proportionally as business increases.
18
Retrieved on March 15, 2016 from https://business.officedepot.com/

38. 38
Cleaning/ Office Supply Quantity per unit Cost per unit ($) Units needed Annual Cost($)
Paper 10 reams of 500 sheets 33 1 33
Ink cartridge 1 50 2 100
All purpose cleaner 2 liter by 4 74 2 148
Stainless steel cleaner 17 oz by 12 50 1 50
Ultra natural pH disinfectant 2 liter by 4 132 2 264
Bleach 1 gallon by 6 19 2 38
Drain maintainer, floor cleaner,
spotter 1 gallon by 4 54 3 162
Quat stat disinfectant 1184 oz by 4 93 3 279
Pink hand soap 1 gallon by 4 56 2 112
60 gallon trash bags white box of 100 40 6 240
Toilet paper 550 sheets by 80 rolls 37 1 37
Facial tissue 100 tissues by 30 boxes 33 1 33
Paper towel roll 8 by 800 case of 6 25 6 150
Mop head 1 5 12 60
Scrubbing pads 40 pads/box 2 boxes 27 1 27
Sponges 20 pads 29 1 29
Scouring pads 20 pads 12 2 24
Total Annual
Cost $1,786
Monthly Cost $149
Plus Tax $161

39. 39
Figure 6: 42-month projected cash flows.
C.) Pro Forma Statement of Financial Position
Appendix II portrays The Village’s Pro Forma Statement of Financial Position at year-end 2016,
2017, 2018, and 2019. Straight-line accumulated depreciation is used based on 43 months with
equipment fully depreciated by 2019. Accounts payable represents the amount still owed to the
bank from the line of credit. Debt incurred from the line of credit will be paid off by mid-year
2018. Assets representing cash and cash equivalents are carried over from the statement of cash
flow seen in appendix III.
D.) Pro Forma Statement of Cash Flow
Appendix III portrays The Village’s Pro Forma Statement of Cash Flow at year-end 2016, 2017,
2018, and 2019. Cash flows are based on a 42-month basis starting in June 2016. Appendix V
displays middle range projections, which represent The Village’s most likely scenario. With net
income rising each year (exception of 2017 due to wage implementation), The Village will incur
positive cash flow from operations allowing for investing activities. The capital expenditure
outflow is due to additional kitchen equipment needed prior to operations. Additions to debt
include costs that will be paid through The Village’s line of credit such as food costs and
professional accounting fees. Payments of debt are based on a monthly payment of $125 until the
line of credit is paid in full. While cash and cash equivalents decrease substantially between 2016
and 2017 due to wages, The Village experiences a 54% increase between 2018 and 2019
indicating a promising return.
E.) Cost-Volume-Profit Analysis
Below is The Village’s Cost-Volume-Profit analysis, which is based on revenue and cost
projections. Calculations are based on hours as a unit of measurement for rental and incubation
services. Meals on-the-Go contribute variable costs but no fixed costs. The following chart

40. 40
includes detailed inputs used to calculate projected break-evens for best, mid, and worst
scenarios:
Total Revenue: Sum of Revenues
Total Fixed Costs: Fixed Costs associated with Rental and Incubation Services
Meals Variable Costs: Meals-on-the-Go Revenue x (Compensation % of IC* + % of Food
Costs)
Incubation Variable Costs: Incubation Revenue x Compensation % of IC*
Total Variable Costs: Rental VC + Meals VC + Incubation VC
Contribution Margin: Total Revenue - Total Variable Costs
Contribution Margin per hour: Contribution Margin / (Rental Hours + Incubation Hours)
Breakeven: Total Fixed Costs / Contribution Margin per hour
*IC = Independent Contractor
The mid-case scenario indicates The Village is likely to break even at 450 operating hours. This
will be reached within 45 days of operations equaling roughly 2.5 months time at projected
capacity. Even at the worst-case scenario with revenue streams significantly lower, The Village
is expected to break even at 476 hours, only 16 more than the most likely scenario. This
communicates promising expectations for The Village.
Figure 7: Break-even projection.

41. 41
XII. Strategic Recommendations
After several months of adjusting the business model and conducting extensive market research,
we as the MBA consultants have compiled a list of recommendations that we believe will
positively affect The Village and/or aid in avoiding any negative repercussions.
Client Requirements
 We believe that potential rental and incubation clients should be encouraged to invest in
The Village’s services with or without the submission of a written business plan and
currently required licenses and insurances. In essence, we want to be sure that the
requirements in place will not deter anyone from becoming a client. In addition, we
believe that The Village should offer a service that helps those without a clear business
plan to develop one during their time spent as an incubation client. The Village should
require licenses and insurance as clients progress through the program as well as teach
them the importance of these.
Kitchen Manager
 Because of the numerous legal implications involved, we recommend that The Village
hire a Kitchen Manager as a full-time employee rather than have an independent
contractor facilitate incubation and prepare meals for Meals on-the-Go. A kitchen
manager is imperative to oversee the operations that involve risks like Meals on-the-Go
and culinary incubation hours because The Village has more say in the duties of an
employee versus an independent contractor. Hiring the kitchen manager as an employee
eliminates the risk of misclassification of employees under the Department of Labor. This
employee should be consistent, experienced and knowledgeable in culinary skills.
Expansion
 In the event that The Village does not receive its non-profit status, or it does not meet the
projected demand within the first two years of operation, we recommend that the Board
of Directors not move forward with plans for expanding into a larger location at the
Amador Proximo or any other location.
Narrowing the Scope
 Although our client wishes to implement several new revenue streams quickly, we
recommend that she continue to refine and narrow the scope of the business rather than
adding too many additional services. When she decides to add new services or product
offerings, we recommend that they be designed to match the vision, mission and values
of the business. For example, we do not believe that hosting birthday parties and summer
day camps in The Village’s facility are relevant to the overall objectives of the business.

42. 42
Accountant on Board of Directors
 Because of the importance of the non-profit status to The Village’s success, we
recommend the business add a local accountant to the Board of Directors. An accountant
will be able to help prepare financial statements and other required material that must be
submitted to the IRS. In addition, it would allow The Village to save on fees associated
with accounting services in the future.
Online Management
 As discussed, The Village will have an extensive online presence through social media,
its website, and its strategic partners. To date The Village’s web presence has been
inconsistent among the different outlets and incongruent with the business’s mission and
vision. Currently, there are multiple Facebook pages and a crowd funding account that
state different missions and visions for the organization. Additionally, the web presence
does not portray a professional image. The website domain ownership has expired;
therefore, potential clients will encounter errors when they click the link to the business’s
website provided on social media sites. We recommend The Village hire an experienced,
local web designer to develop a professional website. In addition, we recommend the
manager maintain the social media sites in congruence with its website and business
goals.
Rebranding
 The manager, with the help of a local consulting firm, designed the current logo for The
Village. The Village’s logo presents a tree with the trunk spelling out the business name.
The overall image including the logo and the name is not specific to the Las Cruces area
and does not communicate the vision of the business. When searching “The Village Las
Cruces” online consumers will see results for local senior living neighborhoods and
Village Inn restaurant. Because of this, we recommend The Village alter its name to
something unique and distinguishable from other Las Cruces based businesses. Based on
feedback from professionals and community members, we recommend that The Village
rebrand to better reflect the intentions and vision of the business.
XIII. Feasibility and Exit Strategy
A.) Feasibility
Based on the best-case and most likely scenarios, The Village is a feasible business venture due
to several factors. First, the business will have very low startup costs and recurring monthly costs
due to its location and non-profit status. Moreover, the information collected from the interest
survey supports the projected demand for the services The Village will be offering. Furthermore,
The Village is projected to have positive cash flows at the best and mid situation projections,

43. 43
which allow the business to reinvest and develop more programs for the community. During
operations, the board should analyze the continued feasibility of the business on a annual basis or
if cash flows are consistently negative.
B.) Exit Strategy
If The Village does not meet the short-term objectives listed in section V. subsection D. of this
document, the Board of Directors must re-evaluate the business feasibility. The Board of
Directors must ensure that they have exhausted all possible resources for the business through
grant funding, whether national or local. If the business is no longer feasible, not generating
profit, and all funding options have been exhausted, the Board of Directors will take steps
towards an exit strategy. Board of Directors can execute this transition together or appoint a
Board Member to oversee this activity. Based on the worst-case scenario 42-month cash flow
projections shown in Appendix VI, The Village could incur negative cash flows totaling more
than $5,000 around August of 2017. Since the initial investment into beginning operations
equaled a $5,000 line of credit, the owner should begin implementation of the exit strategy once
the loss surpasses this amount. By mid-year 2017, The Village will have a full year of activity to
determine if the business is sustainable based on usage. Also, by this point, The Village will
know if the IRS granted non-profit status. If The Village does not receive non-profit status, the
board should strongly consider dissolving the business due to the tax and funding implications.
With non-profit status as a 501(c) 3, the organization has specific requirements for how they
dissolve the business. The implementation of the exit strategy will depend on the point in time. If
the business is no longer feasible within the first three years, then the owner will sell the kitchen
equipment that was purchased by The Village. With the money collected from the asset
liquidation, the Board of Directors will pay off what is left on the line-of-credit. Because of the
tax-exempt status, the IRS is particular as to how leftover funds are distributed. If any funds are
left over from this liquidation, The Village will give the remaining funds, split equally, to the
strategic partners, La Semilla, WESST and MVEDA. If the business is no longer feasible after
three years and there are no existing debts, The Village will donate the kitchen equipment and
other assets to La Semilla, WESST, and MVEDA. In addition, The Village will need to
document its actions to cover itself from future inquires. Clients will be given a one-month
notice before terminating operations, so they are able to transition out of The Village.
XIV. Future of The Village
After The Village has reached the financial means and exceeded the capacity of the Sage Cafe,
The Village will be able to enter new revenue streams that will complement the existing ones.
These additional revenue streams are projected to include a retail storefront where clients can sell
the products made in the kitchen. Additional revenue streams include cooking classes for adults
and children, gardening plot rental, and test restaurant. The Village seeks to establish a space in

44. 44
Central Las Cruces through the Amador Proximo project or through the Downtown
Revitalization plan.
The success of The Village in The Sage Cafe will be imperative to the growth into a central Las
Cruces building and growth into different business segments. The Village strives to have the
following areas in their future building:
 Four fully functioning kitchens to allow multiple clients to use the space at one time
 Classrooms to educate members of the community on food, business, and art topics
 Gardening space to grow local produce and educate members of the community
 Retail space to sell locally made products, both perishable and non-perishable
 Food Hub to sell locally grown produce
 Office space to teach incubation clients business techniques
 Locked storage space to allow clients to leave items such as equipment and food products
 Large area near kitchen to act as test restaurant for incubation clients
The future vision of The Village will be possible through grant funding and an initial investment
from the capital raised in the first few years of business. Based on our market research, other
kitchen incubators in the state generate 64% of their revenue from their kitchen clients, while the
other 46% of capital comes from grant funding. Established relationships with local businesses
will continue as The Village obtains a larger building. The Village’s larger building and the
nurtured relationships with local businesses will allow the members of the community a greater
opportunity to make a strong economic impact on the city of Las Cruces.
Amador Proximo in Central Las Cruces

45. 45
XV. Appendix
I.) Pro Forma Statement of Activity
PRO FORMA
STATEMENT OF
ACTIVITY
2016* 2017 2018 2019
Revenues
Rentals 11,500 24,600 28,600 31,600
Incubation 7,250 14,500 17,375 20,250
Meals on the go 1,600 3,600 5,400 7,200
Total Revenues 20,350 42,700 51,375 59,050
Cost of Sales
Independent Contractor 2937.5 5975 7431.25 8887.5
Food supplies 560 1260 1890 2520
Total Costs of Goods Sold 3498 7235 9321 11408
Gross Income 16,853 35,465 42,054 47,643
Operating Expenses
Rent 0 0 0 0
Utilities 0 0 0 0
Wages 0 17500 19500 21500
Payroll Taxes 0 823 868 913
Advertising 1200 1080 1080 1080
Insurance 2625 4500 4500 4500
Permit/Licensing Renewal 325 240 240 240
Accountant Fee 1200 800 0 0
Cleaning/Office Supplies 1190 2040 2400 2700
Maintenance & Repairs 385 770 1155 1155
Vehicle Allowance 1244 1244 1244 1244
Debt Payment 875 1500 1500 942
Total Operating Expenses 9044 30497 32487 34274
Operating Income $7,808 $4,968 $9,567 $13,368
Net Income $7,808 $4,968 $9,567 $13,368
*Calculated at a 7 month basis

46. 46
II.) Pro Forma Statement of Financial Position
PRO FORMA
STATEMENT OF
FINANCIAL POSITION
2016* 2017 2018 2019
Assets
Cash & Cash Equivalents 9010 3468 8067 12426
Equipment 2700 2700 2700 2700
Accumulated Depreciation 440 1193 1947 2700
Total Assets 11270 4975 8820 12426
Liabilities
Accounts Payable 3942 2442 942 0
Total Liabilities 2725 2442 942 0
Retained Earnings 8545 2533 7878 12426
Net Assets 8545 2533 7878 12426
Total Liabilities and Net Assets $11,270 $4,975 $8,820 $12,426

47. 47
III.) Pro Forma Statement of Cash Flows
PRO FORMA
STATEMENT OF
CASH FLOWS
2016* 2017 2018 2019
Operating Activities
Net Income 7,768 4,968 9,567 13,368
Cash Flow from Operations 7,768 4,968 9,567 13,368
Investing Activities
Capital Expenditures -2700 0 0 0
Cash Flow from Investments -2700 0 0 0
Financing Activities
Additions to debt 4,817 0 0 0
Payments on Debt -875 -1500 -1500 -942
Cash Flow from Financing 3,942 -1500 -1500 -942
Cash & Cash Equivalents at end of
year $9,010 $3,468 $8,067 $12,426
Beginning Balance 0 $9,010 $12,478 $20,545
Ending Balance $9,010 $12,478 $20,545 $32,971

48. 48
IV.) Best Case Cash Flows: 42 months
Best Case Scenario: Projected 42-Month
Cash Flows 16-Jun 16-Jul 16-Aug 16-Sep 16-Oct 16-Nov 16-Dec
Cash Inflow
Kitchen rental 1,200 1,600 2,000 2,400 2,880 2,880 2,000
Kitchen incubation 1,250 1,500 1,750 2,000 2,000 2,000 1,500
Meals on-the-go 200 300 400 500 600 700 800
Total 2,650 3,400 4,150 4,900 5,480 5,580 4,300
Cash Outflow
Independent Contractor 488 600 713 825 850 875 725
Food supplies 70 105 140 175 210 245 280
Wages 0 0 0 0 0 0 0
Payroll Taxes 0 0 0 0 0 0 0
WC Quarterly 0 0 0 0 0 0 0
Advertising 1200 0 0 0 0 0 0
Insurance 375 375 375 375 375 375 375
Permit/Licensing
renewal 325 0 0 0 0 0 0
Cleaning/office
supplies 170 170 170 170 170 170 170
Maintenance & repairs 0 0 0 0 0 0 385
Debt Payment 125 125 125 125 125 125 125
Accountant Fee 0 0 1200 0 0 0 0
Vehicle Allowance 104 104 104 104 104 104 104
Total 2856 1479 2826 1774 1834 1894 2164
Inflow-Outflow
Cash Flow from
Current Month -206 1,921 1,324 3,126 3,646 3,686 2,136
Cash Flow from
Previous Month 0 -206 1,715 3,039 6,165 9,812 13,498
Total Cash Flow $601 $1,715 $3,039 $6,165 $9,812 $13,498 $15,634

49. 49
17-Jan 17-Feb 17-Mar 17-Apr 17-May 17-Jun 17-Jul 17-Aug 17-Sep 17-Oct 17-Nov 17-Dec
2,000 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,000
1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 1,500
800 800 800 800 800 800 800 800 800 800 800 800
4,300 5,680 5,680 5,680 5,680 5,680 5,680 5,680 5,680 5,680 5,680 4,300
725 900 900 900 900 900 900 900 900 900 900 725
280 280 280 280 280 280 280 280 280 280 280 280
1458 1458 1458 1458 1458 1458 1458 1458 1458 1458 1458 1458
875 875 875 875 875 875 875 875 875 875 875 875
2.3 0 0 2.3 0 0 2.3 0 0 2.3 0 0
0 0 0 0 0 1080 0 0 0 0 0 0
375 375 375 375 375 375 375 375 375 375 375 375
0 0 0 0 0 240 0 0 0 0 0 0
170 170 170 170 170 170 170 170 170 170 170 170
0 0 0 0 0 385 0 0 0 0 0 385
125 125 125 125 125 125 125 125 125 125 125 125
0 800 0 0 0 0 0 0 0 0 0 0
104 104 104 104 104 104 104 104 104 104 104 104
4114 5086 4286 4289 4286 5991 4289 4286 4286 4289 4286 4496
186 594 1,394 1,391 1,394 -311 1,391 1,394 1,394 1,391 1,394 -196
15,634 15,820 16,414 17,808 19,199 20,592 20,281 21,672 23,066 24,459 25,850 27,244
$15,820 $16,414 $17,808 $19,199 $20,592 $20,281 $21,672 $23,066 $24,459 $25,850 $27,244 $27,047

50. 50
18-Jan 18-Feb 18-Mar 18-Apr 18-May 18-Jun 18-Jul 18-Aug 18-Sep 18-Oct 18-Nov 18-Dec
2,000 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,000
1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 1,500
900 900 900 900 900 900 900 900 900 900 900 900
4,400 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 4,400
750 925 925 925 925 925 925 925 925 925 925 750
315 315 315 315 315 315 315 315 315 315 315 315
1625 1625 1625 1625 1625 1625 1625 1625 1625 1625 1625 1625
975 975 975 975 975 975 975 975 975 975 975 975
2.3 0 0 2.3 0 0 2.3 0 0 2.3 0 0
0 0 0 0 0 1080 0 0 0 0 0 0
375 375 375 375 375 375 375 375 375 375 375 375
0 0 0 0 0 240 0 0 0 0 0 0
200 200 200 200 200 200 200 200 200 200 200 200
0 0 0 385 0 0 0 385 0 0 0 385
125 125 125 125 125 125 125 125 125 125 125 125
0 0 0 0 0 0 0 0 0 0 0 0
104 104 104 104 104 104 104 104 104 104 104 104
4471 4644 4644 5031 4644 5964 4646 5029 4644 4646 4644 4854
-71 1,136 1,136 749 1,136 -184 1,134 751 1,136 1,134 1,136 -454
27,047 26,976 28,113 29,249 29,998 31,134 30,951 32,085 32,836 33,972 35,106 36,243
$26,976 $28,113 $29,249 $29,998 $31,134 $30,951 $32,085 $32,836 $33,972 $35,106 $36,243 $35,789