This document presents a business plan for a Chinese food stall. It discusses the location, competitors, financial budget, operating expenses, capital expenses, sensitivity analysis, and marketing budget. The sensitivity analysis shows that with 110 customers per day, the projected profit is $17,093 and payback period is 4 years. With 130 customers per day, the base case, profit is $51,754 and payback period is 3 years.

1. Present by:
(Amy) Yu Shuang Lim & (Angela) Qi An
yul270@mail.usask.ca

3. Soy Milk
Jellied Tofu Soup
Steamed stuffed bun
Chinese Long Doughnut
Chinese Pancake

4. • Prime Location
• Easy access to target market
• Competitors:
Where are we?

5. Total Operating Expenses $325,495
(81%)
Furniture and Fixtures
$75,000 (19%)
First Year Capital Expenses
Total Operating Expenses Furniture and Fixtures
Financial Budget
On year 2018:
• Equity Investment $ 80,000
• Long-term Debt $ 0

6. ü Number of customer per day
Critical Risk Factors
Sensitivity Analysis
Number Cust /day
Average 5
Year Profit ERR
Year 5
Dividend
Payback
Period
100 (1,832) - - 6 Bankrupt
110 17,093 25.4% 45,338 4
120 34,876 34.3% 63,044 3
130 51,754 42.4% 80,749 3 Base Case
140 67,728 49.6% 98,455 2
150 83,702 56.7% 116,160 2
160 99,676 63.4% 133,866 2

7. 72,728
141,603
222,352
316,227
1 2 3 4 5
Cumulative Cash Flow
üPayback Period = 3 Years
üAverage dividend per year over 5 years= $86,671
Initial Investment 80,000
Gross Payback 1,972,113
Net Payback 1,892,113
Payback and Owners’ Compensation

9. Marketing Budget: $10,504
(Excludes the $40,000 delivery order
revenue that goes to Skip the Dishes)