2. TABLE OF CONTENTS
Executive Summery
3
Company Summery
8
Products & Services
9
Business Model
10
Industry Analysis
13
Competitive Analysis
15
Marketing
17
Pricing & Sales Strategy
20
Financial Strategy
21
3. EXECUTIVE SUMMERY
Description:
The promising drive behind the business idea is to create a lounge/pintxo
bar (translated to small bite in english from spanish basque) to incorporate the
perfect combination between alcohol and palate pleasing tastes from various
Spanish centered cuisine. The name ‘#coalición’ is specifically titled to represent
the three main business focuses which my company will exemplify toward the
customers and community: food & beverage, arts & entertainment, and also
philanthropy.
Coalición ,translated to coalition in english, can be defined as an alliance
of combined action, and will be the primary focus behind the purpose of the
business. The idea of having a social gathering venue which provides
entertainment from various perspectives and interests in an alliance toward the
main goal, which is to enhance the customers utmost satisfaction levels, sets the
tone for the meaning behind the word coalición. The business will help promote
people to understand and see the ‘fusion’ between cuisine, nightlife, and even
cultures within the community of fellow consumers themselves. The reason
behind putting a # symbol in front of coalición is to heighten the emphasis on
knowing that the space is more than just a small bite bar, but also a sorts of a
modern lounge for social interaction and music.
Throughout the social media networking of companies such as Twitter,
Facebook, and Instagram, the # symbol is used to represent subjects under
particular categories. Integrating this modern idea from the cyber world to my
business will be a large part in showcasing artists, DJ’s, and entertainers of any
sort, since the subject will be too search under #coalición. This also sets the
theme for a design and layout of the space knowing it’s going to continue out with
a modern twist toward every aspect of the venue.
My final business objective will be to develop and adopt some sort of
philanthropy to help give back toward the community. Supporting local farmers,
artists, and causes in need of help are some ideas looking to incorporate into the
business one way or another (ex. having certain ‘adoption’ days (certain
percentage of proceeds go toward a charity of choice that particular day) or
donations of leftovers to the homeless, etc). This can ultimately be used as a
‘free’ marketing tool as well, since the idea of supporting a local cause may drive
business in that normally would venture to another competitor instead.
4. Coalición encompasses the lifestyle that sociable beings want to be apart
of; offerings from authentic bite size Spanish cuisine to dancing and nightlife. The
main purpose is to create an enriching environment where others are able to
enjoy the social atmosphere of fellow patrons, whether that connection be
through food, drinks, or dance. By integrating two deep passions, of music and
culinary cuisine, the business will exasperate and share this passion with other
members of the community. The business will exploit the concept behind ‘small
plate’ dining experiences, and going even beyond that and highlighting the native
idea of northern basque ‘pinxto’ eats. Pinxto, a term relating to the basque region
of Spain, simply translates to small bites, meaning my business won’t offer full
course meals, but instead will encompass bite sized treats enough to please the
palate. The company will also be exploit EDM (electronic dance music) artists,
which is rapidly growing in popularity, especially toward the younger clientele.
There are a handful amount of nightclubs and dance venues in the area, but very
few that offer more of a lounge and gathering setting.
The business will be successful because of a ‘exclusivity’ concept behind
the scenes. No idea behind the business is something simply thought of and can
easily be reproduced; attention to detail and focusing on the customers wants will
bring repeated customers back, and will be a main reason why it can be
successful. My business will be reducing the lack of a venue which offers quality
food and music, in a easily accessible location with competitive and fair prices.
The majority of customers who will initially visit the venue will either have a
shared passion of either food, dance music, or both which is why they’ll be
visiting since they’re needs are initially met. To ensure newcomers and existing
customers are happy with the products and services provided, managers and/or
public relation personnels would continually check sites such as Yelp! or
UrbanSpoon in seeing what continual complaints are being made in order to find
a way to change them. Having a website with a direct email line and/or business
phone number will allow customers to directly get ahold of myself or other
management to address immediate problems as well. The unfortunate reality is
that the business will not necessarily accommodate everyone’s wants, since
there’s an exclusivity aspect behind the works.
The first five customers will most likely be fellow EDM enthusiasts, as the
opening day/night would feature some sort of headlining artist to draw initial
5. attention. There wouldn’t be a cover charge on opening night (which normally
charge between $10-$15 or more for presale tickets), but could expect to spend
upwards of $50 in alcohol sales once prices are finalized. With food added along
with it, it may add close to $75. People should use the company as a place to
interact with other customers. An idea behind the business is less focused on
one particular item, but meant to enrich the whole experience of the customer as
a whole, unlike other similar services where there lies only one main focus.
Advertising and promotion will be the key successes in ensuring to get 1000+
customers. Word of mouth is a huge self and free promotion tactic, but that can
only lead so far. The business will have to rely on hiring or volunteering
promoters to help sell the venue through flyers, news articles, etc. Facebook and
social media advertising will be key factors as well, since event pages can be
created for headlining nights, or the venue page alone will keep customers up to
date with deals, events, etc. Continuing to offer high quality products and
services will ultimately what keeps the customers coming back and appeal to
new ones as well.
The business will make sure make sure that the owners (myself and/or any
co-owners), and other management primarily take charge of customer service
problems, that being said; my business is in the hospitality industry which means
workers will have to deal with customer issues on the spot. I will achieve
maximum positive customer service issues by:
1) Training staff properly so they can prepare for issues on the spot
2) Treat each guest equally and with respect
3) Replying immediately to customer complaints/concern
4) Offering free services/compensations to guests (extreme cases)
5) Implying ‘the customer is always right’ in most cases
My final business objective will be to develop and adopt some sort of
philanthropy to help give back toward the community. Supporting local farmers,
artists, and causes in need of help are some ideas looking to incorporate into the
business one way or another (ex. having certain ‘adoption’ days (certain
percentage of proceeds go toward a charity of choice that particular day) or
donations of leftovers to the homeless, etc). This can ultimately be used as a
‘free’ marketing tool as well, since the idea of supporting a local cause may drive
business in that normally would venture to another competitor instead.
TITLE: Lounge and Restaurant Bar
6. PROBLEM: Lack of small plate/pintxo bars which also serves as a lounge and
socializing venue which attracts mostly younger market segments as well as
older
SOLUTION: Offer authentic pintxo eatery options and alcoholic beverages in a
modern and ‘hip’ atmosphere which also has a featured focus toward the arts
UNDERLYING MAGIC: Having selected nights of local and nationally recognized
artists perform
BUSINESS MODEL: Once opened and customers have been acquired, prices
and services will be the first to be judged, so in order to maintain a fine
reputation, I’ll need to make sure I’m competitive with pre existing businesses by
offering high quality products (food, cleanliness, appealing atmosphere, state of
the art sound systems, etc.). Using artists (both local and internationally
recognized) to help promote via the artist themselves by having them perform at
the venue. To keep customers, my business will focus on doing different outreach
programs, blogs, sign up emails, business letters, contests, events, community
work, loyalty programs, etc. in order to create a sense of belonging to the
business. Once this has been going for a while, the business will be able to up-
sell and next-sell customers in hoping that word of mouth and referrals to the
lounge will naturally create it’s own
MARKETING SALES: #1 word of mouth (Yelp!, Urbanspoon+); Social Media
(Facebook, Twitter, Instagram); Ad’s/reviews in local paper (The Stranger; Seattle
Weekly, etc.)
COMPETITION: Pintxo Restaurant (pintxo bar located downtown), Harvest Vine
(authentic spanish basque cuisine [full service restaurant]), Foundation Nightclub
(similar music segment artists[EDM]), various eatery/bar/lounge venues around
the greater Seattle area
TEAM: Sole proprietor (possibility of teaming up with another more experienced
restaurant/nightlife enthusiast)
PROJECTION: After 3 months of opening, projecting to have weekend nights
75% full, and event nights at 100% capacity (offered advanced ticket prices)
STATUS: In progress (still in brainstorming/mapping out stages)
7. TIMELINE: [not reality] 2 years away from opening [concluding brainstorming
process; finding venue to lease out; hiring of staff; finalize financing/budget, etc.]
Mantra:
“Enriching social beings through food, culture, and dance”
Tagline:
“Eat one, drink two, live free”
COMPANY SUMMERY
#coalición Pintxo Lounge & Bar will feature an outstanding Spanish
influenced menu with a touch of local influence in an upscale and modern
atmosphere.The menu is inspired from the basque region of Spain (ex. San
Sebastian) and will appeal to a wide and varied clientele. We will offer particular
events or discounted events such as Ladies Night (Wednesday), Happy Hours
(everyday from 4pm-6pm), and other exclusive evenings.
We will be open 5 days a week. Starting with Happy Hours Tuesday -
Friday 4pm - 6 PM. Regular service hours Tuesday-Saturday from 6pm-10pm.
Thursday-Saturday After Dinner (Club hours*limited food offering) 10 PM - 2 AM.
The lounge will be open until 2 AM Friday and Saturday. Tuesday and
Wednesday the lounge will stay open till 12 AM. We will be closed on
Thanksgiving Day and Christmas Day. We will be open on large holidays such as
Memorial Day, Fourth of July, New Years Eve and Labor Day weekend. These
are three big weekends 'down the shore' that brings many tourists to the area.
The venue will combine paintings and drawings from some of the areas
most notable new artists. Once a month the lounge will feature a new artist and
their work. This will give the art community an opportunity to show their work in a
friendly and exciting atmosphere. We will send out special invitations for the
opening night and attract many people and newspapers. The showing will only
take place in the lounge so we can still seat people in the restaurant. Along with
local artwork, the business will also have featured/highlighted artists both local
and nationally recognized to perform. These events will take place on weekend
evenings, and would be apart of the after hours (club) time slots.
Every Tuesday night (most bars and restaurants are closed in Monmouth
County on Mondays) we will have 'Restaurant Night.' This will give the other
restaurant owners and employees a chance to socialize on a 'night off' and it will
contribute to a sense of community in the local industry.
8. We will have special Wine Tasting Evenings, a five course meal featuring new
wines sponsored by our distributors. Customers can come and learn more about
wine and food! Also 10% of proceeds on Tuesday evenings will be given toward
a different charity chosen for each month. This gives the company a chance to
give something back to the community which supports us.
#coalición Pintxo Lounge and Bar will be the perfect place when customers
need that 'special social interaction.' They can have business meetings here, a
fun place for a first date during restaurant hours, or for a fun night out on the
town for special occasions/weekends. Social interaction, community, and various
forms combined are all offered under the same venue. Thus why our tagline
being, “Eat one. Drink two. Live free.”
PRODUCTS & SERVICES
Below is a sample menu of the featured products that would be offered in
#coalición. The menu would vary from time to time depending on the season of
year and production quality from farms each quarter. Regardless, the cuisine
offered will all be made in house, supported from local businesses/farms, and is
meant to be enjoyed in flavor burst bites. There will be a separate wine & spirit
menu offered as well which would go into further detail about the wine bottles,
mix drinks, champagne, and more to give customers descriptive-in depth detail
about our products listed.
#coalición
Lounge and Pinxto Bar
MENU
Idiazabal Goat Cheese w/ quince paste, candie walnut, and lemon zest
3
Roasted Button Mushroom w/ rioja vinaigrette, stuffed chorizo salad
3
Golden Beet Soup w/ parsley infused olive oil
2
Skewered Duck Confit w/ piquillo pepper & salt cod potato mouse
5
9. Trio de Flan w/ vanilla, pumpkin, and espresso
5
WINE & SPIRITS
*Albarino (White Wine)
8, 30
*Rioja (Red Wine)
7, 27
*Cava (Champagne)
5, 23
*Cocktails
10-15
*Martini
10-12
Estrella (Beer)
6
Spanish Coffee
5
*complete wine & spirit offerings listed on separate menu
BUSINESS MODEL
Canvas
1) Customer Segments:
•Tapas/small plate enthusiasts
•Entertainment seekers *those who enjoy paying to see live musicians/
artists
•Night goes/socialites *clubbers/young adults/interactive guests (able to
make it to 2am)
•”Foodies” *those who enjoy the art of dining out
•Mature Audience *attraction to older crowd, or at least ‘exclusive’
members with lots of $
10. 2) Value Propositions:
•Newness (blend of unfamiliar Spanish tapas [specifically pinxto]/and
modern nightlife)
•Quality (true authentic cuisine and recipes, focus on food as ‘art’)
•Healthy (promote sources of ‘local organic’ businesses, even with a
higher cost)
•Quantity (being small bites, provide plenty of options and mass amounts
of those options)
•Exclusivity (having dress code/standard, cover charge during ‘primetime’
hours, booking of certain artists)
3) Channels:
•Marketing tactics (FREE internet/social media sources + word of mouth;
advertisements in the Stranger)
•Company Website (able for guests to leave reviews, comments,
concerns, or artist ideas)
•Online Ticketing Vendors (purchase online ahead for nights of concerts)
•In-shop Samples (each guest presented a sample before ordering off
menu)
•Post ‘In House’ Service (email sign up list for customers who want first
dibs on concert events/exclusive deals/ and community news)
4) Customer Relationships:
•Dedicated personal assistance (knowledgeable and helpful staff/hire
those already established in community)
•Competitive pricing (affordable yet reasonable pricing to attract many
customers)
•Discounted rates to regulars/artist meet and greet
•Interactive reviews (ex. Yelp; respond to users to create personal
experience beyond the venue)
•Outreach Programs (donations end of night, charity work, community
involvement/events)
5) Revenue Streams:
•Gift Cards (ex. traditional gift cards and/or have certain times of year
where you can pay $25 for $50 worth[or something along those lines])
•Cover fee ‘after hours’ [10pm-2am](especially nights of entertainment)
•Fixed ‘menu’ pricing (menu may change depending on the quarter/
season)
•Advertising (see earlier example)
•Happy Hour Specials, Ladies Nights, etc. (Price Discrimination)
11. 6) Key Resources:
•Certified and trained staff (both in kitchen and bar staff)
•Location of venue
•Access to local businesses (bakery’s, winery,’s etc.)
•Supporting ‘behind scene’ staff (accountant, management, hiring agent,
etc.)
•Financing (food, leasing space, entertainers, etc.)
7) Key Activities
•Developing Daily Food Routine {DDFR} (prep, cooking, and donations of
what’s salvageable)
•Proper Sanitization
•Alcohol Training (understanding of all types of alcohol and checking
quality
•Interactive exchanges between customers
•Keeping up to all different codes
8) Partnerships:
•Advertisers (the Stranger, Seattle Weekly, Seattle Times, etc.)
•Local Businesses (see above examples)
•Community Members (charity, partnered programs)
•Booking Agents
•Other competitors (ex. other owners/chefs)
9) Cost Structure:
•Leasing fees (location/building costs)
•Licensing fees (alcohol permits/ food permits, etc.)
•Artist booking fees
•Staff pay
•Utilities costs
•Supplies (food, beverage, and decor/furniture/audio system)
INDUSTRY ANALYSIS
Five Forces
When reviewing over a business strategy, there are many complexities that
go into the process of being able to develop and furthermore allow a company to
become sustainable. According to Michael Porter there are five main forces that
are widely used to asses the structure of any industry. These five forces include:
12. ◦ Bargaining Power of Suppliers
◦ Bargaining Power of Buyers
◦ Threat of New Entrants
◦ Threat of Substitutes
◦ Rivalry Among Competitors
The restaurant lounge and bar industry, dealing with food and alcohol, have a
very wide and competitive market between small privately owned business, quick
services, full services, various cuisine options, etc; which may be beneficial or
hindering toward coalición. This being said, by targeting a more specific
demographic of customers, the goal is to create a sense of exclusivity within in
the business. However; the bargaining of power between suppliers and buyers
may become a factor which affects my business.
The idea of having locally grown produce and food products (as much as
possible) with still being authentic toward Spanish basque cuisine may be tricky.
Cost wise, suppliers may be more expensive compared to other businesses who
may not go this route, which would lead to more expensive menu items for
customers. This more exclusive route and thinking potentially gives suppliers
more power because of the lack of natural farm sources. This also allows
potential rivals to take advantage of this and be able to sell similar services for
cheaper prices by going through a non natural source. By incorporating alcohol
and entertainment sources into my revenue, the idea would be to focus less on
just the food aspect of my business, and more on the whole experience that all
three combined will make.
In Seattle alone, there are a limited number of Spanish cuisine
restaurants, and an even smaller number of ‘pintxo’ eatery options. By
incorporating a new and unique twist to the average style restaurant, the
company believes it can attract more customers from all types of crowds who
may not normally go for this experience. By being more exclusive, but also still
offering interest from different types of crowds, the buying power between
customers should be able to swing in my favor. The largest factor in acquiring
business is going to be to attract people from already existing companies who
are structurally sound. There always lays the threat of new entrants into the field,
but by offering such a unique place of social gathering, but believing through
reputation of the atmosphere and musical artist promotion, my venue will be one
people will continually be apart of.
13. By offering specific and outstanding customer service, and extensive
knowledge over the products and services being offered; the lounge and bar
venue will become one that the public eye will view as more than just a profit
seeking business. Incorporating the community through donations, public
service, etc. extends another aspect to the business which offers the community
to be apart of an exclusive idea. The threat of substitutes would be very minimal
because of the rare and unique products my company can offer, which many
places cannot. In all, the business will provide aspects appealing to all sorts of
business partners and customers, especially toward the younger demographic.
Five Forces Matrix
Minimum Score = 5 (Very Attractive)
Maximum Score = 125 (Very Unattractive)
Importance Threat to Industry
Weighted Score
(1-5) (1-5)
Force
-Rivalry Among Companies 5 2 10
-Bargaining Power of Suppliers 2 2 4
-Bargaining Power of Buyers 4 3 12
-Threat of New Entrants 3 2 6
-Threat of Substitute Products/Service 5 2 10
Total: 42
*This total comes from the idea of having a niche market within the very
competitive restaurant/nightlife industry itself. The business having a very specific
Spanish and electronic dance music (EDM) market will stand out individually
amongst existing businesses. Though the pintxo/tapas restaurant scene is very
slim in Seattle (and America in general); the restaurant industry is very
competitive, so #coalición would have numerous potential threats
COMPETITIVE ANALYSIS
SWOT Analysis
14. Strengths:
1.Drive and knowledge over Spanish Basque cuisine
2.Focus/attraction on entertainment aspect as business
3. Enforcement of dress code; create a ‘premiere’ location factor
4. Access to local and natural resources
5. Positive and intuitive reputation
Weaknesses:
1.Lack of experience owning/operating a business
*Either bring in a partner with more experience, or wait to gain
more industry experience
2.Liabilities of serving alcohol (permits)
*Be sure to follow procedures and guidelines at all times (NO
underage whatsoever)
3.Creating a staff that fits ‘image’ and shares same passion
*Create and have a very intensive hiring process to make sure the
best are selected
4.Dollar amount it will cost to book artists
*Hire company accountant control finances, and make sure to book
artist within budget
5.Limited selection of options for food (not being traditional restaurant)
*This won’t budge; will offer as many variety’s within means of
traditional cuisine
Opportunities:
1. Attraction for younger and older clientele
2. Use of technology for free marketing tool (Facebook, Twitter, etc.)
3. Limited number of Spanish Basque cuisine locations esp. pintxo bars
4. Location will immediately attract curiosity
5. Loosening of alcohol regulations
Threats:
1. Growing number of new restaurants, bars, and lounges
2. Already established businesses in area; particularly successful Spanish
3. Competition between pricing of similar products
4. Outsourcing prices for authentic basque products
5. New taxes (higher alcohol tax, ‘dance’ taxes’, etc.)
15. Key Success Factor How Your Company Rates
1. Specialized Setting (Menu & Aesthetics) 1 2 3 4 5 6 7 8 9 10
2. Advertisement through Artist Bookings 1 2 3 4 5 6 7 8 9 10
3. Intensive Alcohol/Wine Knowledge 1 2 3 4 5 6 7 8 9 10
4. Positive Public Relations 1 2 3 4 5 6 7 8 9 10
5. Proper Upper Management (GM, Accountant) 1 2 3 4 5 6 7 8 9 10
Conclusion:
These key success factors will be what keeps and drives the business into
succeeding long after the initial hype is over. It will have to to start from upper
management making sure that everything is able to stay afloat and be able to
afford the expenses and services being offered. Having specialized menus,
artists, and knowledge are all secondary factors that are as equally important to
make customers want to revisit the business. If these initial factors remain at a
high level, then the rest of my business can run smoothly and be a place where
customers will want to spend their money.
MARKETING
Demographic Data/Strategies
Seattle-Tacoma Greater Area
Geography QuickFacts
Land area in square miles, 2010: 83.94
Persons per square mile, 2010: 7,250.9
Counties: King County
Cite: www.census.gov
Target Age Group (22-35)
153,512 people [27.24% of population in Seattle]
38, 160 people [19.71% of population in Tacoma]
Cite: www.ersys.com
Target Income Range (20k-75k)
137,140 households [53.02% of households in Seattle]
16. 44,672 households [58.69% of households in Tacoma]
Cite: www.ersys.com
Major Media Sources (Advertisement)
Local Newspaper
Post-Intelligencer, Times, Puget Sound Business Journal, Stranger, Weekly
Local Television
KING, KIRO, KOMO, KCTS, KHCV
Cite: www.ersys.com
Business Quick Facts
-Retail Sales, 2007 ($1000): 15,968,835 [Seattle]; 92,968,519[WA State]
-Retail Sales per capita, 2007: $26,945 [Seattle]; $14,380 [WA State]
-Accommodation and food services sales, 2007 ($1000): 2,730,802 [Seattle];
12,389,422 [WA State]
Cite: www.census.gov
Travel & Tourism Impact
“In 2012, 10.2 million visitors spent $5.9 billion in Seattle and King County,
contributing $479 million in state and local tax revenues. Direct visitor spending
benefits hotels, retailers, restaurants, attractions, transportation services and
other businesses, and supports jobs for more than 53,500 people in the Seattle
region.”
Cite: www.visitseattle.org
Guerrilla Marketing Strategies
1) Find a niche and fill it: The specific niche would contain a focus on Spanish
pinxto cuisine and electronic dance music
2) Use the power of publicity: Coalición would use publicity through local papers
(ex. the Stranger, Seattle Weekly, etc.) and free internet publicity (Facebook,
Twitter, Instagram, etc.) and also word of mouth
3) Strive to be unique: The business will stand out because of it’s focus on the
social interactions of customers, more than just simply being a restaurant or
nightclub (thus why all the food will be small bite size)
4) Create an identity for the business: An identity behind the venue will be a
place of exclusivity and social fun, and also one looked positively toward the
community by trying to give back as much as possible (ex. donations of
17. leftovers at the end of nights unless food can be used again, and/or have
Wednesday's dedicated toward different community programs [10% of profit
given to local charity])
5) Embrace social networking: As mentioned above, the company will use social
networking to send out invites on specific artist events (Facebook), take
updated pictures of new menu items (Instagram), and update recent activity/
trends (Twitter)
6) Focus on the customer: The goal is to ensure every customer has enhanced
customer service, to do so the business would have a e-mailing list to send
out all sorts of upcoming events, and continually meet with guests, so if there
are any problems they will be addressed immediately opposed to later on
7) Be devoted to quality: The food/drink menus will contain as much local farming
ingredients to ensure the freshest quality. The business would also hire a
professional chef whose focus is on Spanish cuisine to ensure the level of
food is up to par with that being served in Spain itself, and also a wine
connoisseur as well as mixologist to give assure the highest quality and
knowledge in our alcoholic beverages offered
8) Give attention to convenience: The venue would be located somewhere
easily accessible to parking lots, bus lines, or even walking distance for some.
The business will also contain automatic transaction machines (ATM),
reasonable pricing, and even charging stations for phones to make sure
guests are able to enjoy everything without the worry of going bankrupt or not
being able to contact/update others. The company would also utilize/develop
an app which guests could use to book tables, make reservations, check on
events, purchase tickets, current menus, updates, etc. so everyone has the
availability to look up everything about the business through a phone
9) Be dedicated to service: As mentioned above, the whole business directly
relates to customer service, so we would hire professionals who share the
same level of passion and drive toward the service industry. The business
would also try and keep the staff turnover rate to a minimum so workers
develop a sense of understanding and community (“family”) to the customers,
which will better enhance service, especially toward repeated guests
18. Pricing Strategy
*Price Discrimination- In order to obtain business on nights that would normally
be considered ‘slower’, the company would try and implant an idea of offering
discounts to certain groups to attract customers on slower nights. For example,
Wednesday’s can either be a hit or miss depending on your location, so it could
offer a ‘Ladie’s Night’ covering drinks for ½ the price of normal and no cover fee.
This would not only attract ladies into the bar offering lower pricing, but also lure
men assuming men will be interested in a venue with a ratio of more women than
more men (unless it was a gay bar).
*Price Lining- The business wouldn’t use a price lining strategy on most of
products, but when it comes to alcoholic drinks that would be a different story.
Assuming there are provided multiple beers on tap or in house, the prices would
vary and charge more for expensive ‘premium/specialty beers’ (ex. Pike Brewing
Company) opposed to beer on tap for cheaper (ex. Coors Light). This could go
the same for mixed drinks (products using Grey Goose vodka vs. Smirnoff vodka)
or almost anything offered in a bar in general.
FINANCIAL PLAN
Estimating Start-Up Capital
#coalición, Inc.
June 12, 2013
Monthly
Cash
Needed % of
Expenses to Start Total Source of Estimate
19. MONTHLY COSTS
Salary of owner-manager $10,000 $20,000 4.2% Payroll
All other salaries and wages 15,000 45,000 9.4% Payroll
Rent 2,420 7,260 1.5%
Retail Leasing Space
Downtown
Advertising 300 900 0.2% Stranger Ad
Delivery expense 500 1,500 0.3% Spanish Table
Supplies 25,000 75,000 15.7%
Spanish Table, Wine/
Alcohol Sale
Telephone 60 180 0.0% Phone company
Other utilities 800 2,400 0.5% Seattle Public Utilities
Insurance 1,000 1,000 0.2% Insurance Company
Taxes, including social security 300 1,200 0.3% Accountant
Interest 250 750 0.2% Accountant
Maintenance 400 1,200 0.3% Accountant
Legal and other professional
fees 2,000 6,000 1.3% Attorney
Miscellaneous 20,000 60,000 12.6%
Artist Booking Fees,
etc.
Subtotal $222,390 46.5%
ONE-TIME COSTS
Fixtures and Equipment $150,000 31.4%
Sound System,
Furniture, etc.
Decorating and remodeling 75,000 15.7%
Modern/Antique
Remodel
Installation charges 1,000 0.2% Sears
Starting inventory 25,000 5.2% Spanish Table
Deposits with public utilities 1,000 0.2% Electric company
Legal and other professional
fees 1,000 0.2% Attorney
20. Licenses and permits 1,000 0.2% Accountant
Advertising and promotion for
opening 500 0.1% Stranger Ad
Cash 750 0.2% Bank Withdrawal
Other 200 0.0% Budgeted Extra
Subtotal $255,450 53.5%
TOTAL ESTIMATED START-UP
CAPITAL $477,840 100%
Small Business Cash Flow Projection
[#coalición]
Starting date
Jan-1
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8
Jul
-18
Au
g-1
8
Se
p-1
8
Oc
t-1
8
No
v-1
8
De
c-1
8
Tot
al
Cash on hand
(beginning of
month)
450,0
00
450,
000
663,
720
657,
440
661,
160
674,
880
713,
600
852,
320
941,
340
1,08
0,36
0
1,09
4,38
0
1,08
8,40
0
1,06
7,42
0
CASH RECEIPTS
Cash sales
50,0
00
55,0
00
65,0
00
75,0
00
100,
000
200,
000
150,
000
200,
000
75,0
00
55,0
00
40,0
00
40,0
00
1,10
5,00
0
Returns and
allowances 0 0 0 0 0 0 0 0 0 0 0 0 0
Collections on
accounts receivable 0
Interest, other
income 0
22. and heighten of students returning for summer (as well as tourists), my greatest
sales are expected to be over the summer months. The hospitality industry can
vary greatly though, so all projected numbers are subjected to change
considering the events going around the city, but on average the business can
expect to follow this general pattern.
