Mktg490 Business Plan Final

Marketing Plan
Francisco Guerrero
Meron Gurmu
Giuliana Plut
Juan Carlos Lomeli
Izumi Hara
Garrett Bogar

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Table of Contents
I. Executive Summary…………………………………………………………….3
II. The industry, the company, and its products or services…………………...4
III. MarketResearchand Analysis………………………………………………6
IV. The Economics ofthe Business………………………………………………8
V. Marketing Plan………………………………………………………………...8
VI. Designand Development Plans………………………………………………9
VII. Manufacturing and Operations Plan……………………………………...10
VIII. ManagementTeam………………………………………………………..12
IX. Sustainability and Impact…………………………………………………..12
X. Overall Schedule……………………………………………………………...13
XI: Critical Risks, Problems, andAssumptions……………………………….14
XII. The Financial Plan………………………………………………………….15
XIII. ProposedCompany Offering……………………………………………..16

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I. Executive Summary
Behind Closed Doors.1920’s Prohibition Era Speakeasy Bar. During the prohibition era
illegal bars opened up in back rooms of restaurants, basements of buildings, and in other secret
and easily hidden locations. These bars were called speakeasies. They allowed patrons to sneak in
and enjoy alcohol and the entertainment of the roaring 20’s during a time when it was strictly
outlawed. Often they were lavishly decorated and filled with people, and mobsters speaking in
hushed tones and bands playing low blues music. Our idea is to open a bar in the spirit and theme
of these old speakeasies. We will legally open one of these bars with, location, atmosphere, food,
and drinks themed of the era.
There is no other kind of experience here in the Palouse area, they are popular in big cities
but we believe it is going to be a big hit here in Pullman. Our idea is going to change the way bar
enthusiasts view bars. In Pullman, we have several bars with similar atmosphere but we want to
provide a different kind of environment. Our styled bar is going to provide live entertainment and
a representation of a speakeasy bar.
We plan to bring something new to the Palouse area. We want to bring people together and
have them experience a speakeasy bar. We surveyed several people and asked them various
questions such as would they enjoy a prohibition themed bar and also if they enjoyed live
entertainment. The majority said yes to both questions:
Would you enjoy a prohibition themed bar?

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We have competitive advantage because there is no other bar in the area providing the same
services as we are. Behind Closed Doors is distinctive against the other bars here in Pullman.
The Behind Closed Doors team consists of a mix of different majors and different
personalities, but we all have the same goal and motivation. Giuliana suggested the idea and we
all liked it. Everyone has something different to bring to the table. We all have our own experiences
and skills that will help and carry the business. We are focused and excited to plan, organize, and
implement our ideas.
II. The industry and the company and its products or services
The industry
The Bars and Nightclubs industry has experienced strong growth over the past five years.
While revenue growth got off to a slow start over the early half of the five-year period, primarily
as a result of shaky consumer confidence causing more people have been more content to drink at
home rather than at bars or nightclubs, the industry is still expected to grow by 1.5% per year on
average to $24.0 billion over the five years to 2015.
Industry revenue is expected to grow by 1.2% in 2015 alone, as consumer confidence and
disposable income pick up, allowing people to spend more of their pay at bars and nightclubs.
Competitors
The Bars and Nightclubs industry is highly competitive, with competition coming from
both within the industry (internal competition) and from operators in similar industries (external
competition). This owes to the relatively low barriers to entry associated with opening a bar or

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nightclub. There are a large number of small business establishments and the industry is highly
fragmented.
Internal competition
Price is an important competitive factor. Operators that can serve food and beverages at the
most value will normally attract and retain patrons, even during times of anemic economic growth.
Location is another important competitive factor for a bar or nightclub. Establishments are usually
located in areas where people congregate for entertainment purposes and businesses are prominent.
Bars and nightclubs also take advantage of agglomeration, meaning they will usually benefit from
being located within proximity to competitors.
Service is one of the most important competitive factors for bars and nightclubs, especially
those with a high-end focus. Upscale bars and nightclubs need to provide world-class service to
guests that expect a seamless and enjoyable visit. Front-of-house staff like bartenders and wait
staff are trained to be professional, courteous and accommodating and to portray concern for the
well-being of patrons. It has become increasingly common for operators to chase higher earning
patrons by renovating venues and providing higher quality beverages and menus. Within the
changing alcohol consumption market, bars have moved toward providing cocktails and providing
high-quality food in unique environments.
External competition
The industry also faces competition from the wider on-and-off premises alcohol
consumption market. The industry exhibits a high level of external competition from licensed
restaurants and cafes, to supermarkets, casinos and retail liquor stores. Many of these compete
with bars off-premises alcohol sales on a price basis, particularly for high turnover products.
Market Share Concentration
The industry is highly fragmented and consists of a large number of small businesses that
are often family owned and operated. The top four players in the industry account for well under
5.0% of total revenue. Census information indicates that just more than 77.6% of establishments
are small businesses employing up to nine people, and a total of 98.3% employ less than 50 people.
There are limited economies of scale to be found by owning more than one venue due to the labor
intensive and location-specific nature of the industry. Also, the varying state liquor laws make it
difficult for owners to form large chains. Due to the fragmented and small-business nature of this
industry, especially in the way it operates, the level of concentration is not expected to change over
the next five years.
Concept
Our concept is to start up a speakeasy styled bar in Pullman. We are trying to bring the 1920
Prohibition experience to a local bar. We will be offering unique cocktails to accommodate our
style of bar. Our principal customers will be 21-35 years old, mainly college students since WSU
is located in Pullman.

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Products/services
We will not mainly be focused on providing products, rather provide services for
customers. We hope to fulfill and provide customers needs with the speakeasy idea. We could have
done any kind of theme for this bar, but the speakeasy idea is more cohesive and more enticing.
From our venue to the music, all will be styled as if in the 1920 era. We will decorate the venue as
a backroom. Inside the room, will be decorations, a live jazz band, 1920 wardrobe, and themed
drinks. We will also provide a photo booth for customers, so they remember this memorable event.
Unique features/added value
Since we will be providing a service focused business rather than product, we are still going
to focus on delivering value to the customer. We want them to feel comfortable and really enjoy
the experience of a speakeasy bar. In Pullman, there is nothing like a speakeasy themed bar. We
would be bringing something unique to the bar scene. The bar will have live entertainment and
dancing that most bars don’t provide; we want to provide a memorable night for the customers.
We know it is going to be successful and hope it expands and adapts to the bar that we choose to
have this theme at.
III. MarketResearchand Analysis
Customers
We surveyed several people around Pullman and family members; we have used this
information to conclude our potential customers. From the information that we collected we have
decided to move forward with opening the speakeasy bar. We surveyed 80 individuals who
consisted of students and non-students. 90% of respondents were between 21-35 years old leading
us to believe that to by our target age range. The remaining 10% will be our secondary target
group consisting of those 36 years old and up.
Since the age range corresponds to mostly college students and young adults, our customers
will be easily reached because the bars are close to Washington State University campus and also
Pullman is a small town so word of mouth will get out. College towns seems to have the same
make up which leads us to believe our system will work state wide on other campuses.
Market size and trends
Market Size
The Market size is large for bars. Specifically Pullman offers seven different competitors,
Stubblefields, Valhalla, The Coug, The ZZU, Rico’s, My Office, and Sports Page. With WSU-
Pullman students making up roughly 70% of those interested in our bar, and a WSU studying
showing 68.8% of student having drank in the last 30 days, we estimate a market of about 13,592
students. We got this total by figuring out how much 68.8% of total WSU-Pullman students was.
Total market share divided by our seven competitors gives us a 1,941 piece of the market. With

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time we expect our share to grow and become a dominant player.
There is a large amount of bars opening and also closing. What makes a bar successful is
dependent on various factors and one factor that ours focuses on is differentiation. Many bars are
themed such as sports bars, but not many are speakeasy themed. The 1920 Era was hectic not only
for the country but for the alcohol consumption. Alcohol was banned and made people sneak into
bars to drink illegally. That secrecy was popular, now alcohol is available everywhere but if we
bring back that time of secrecy and give the full experience of live jazz music, customers can enjoy
their time as if they were back in time.
Consumption trends
After peaking in 1981, per capita alcohol consumption slowly declined until the mid-1990s,
before undergoing a brief resurgence. Over the past five years, per capita alcohol consumption has
remained flat, reflecting increased awareness of the harmful effects of overdrinking and "zero
tolerance" laws in some states regarding underage drinking. Stricter laws for drunk driving and
public intoxication have also influenced consumption patterns. Industry revenue has been hurt by
an alcohol consumption trend toward consuming wine, spirits and ready-to-drink products at home
or in other licensed venues instead of drinking at the bar.
Rising consumer interest in higher quality food and beverages (known broadly as
“premiumization”) has helped boost industry revenue, as hundreds of gastropubs, brewpubs, wine
bars and other establishments with a focus on quality have opened at the expense of traditional
dive bars and sports bars. The rising popularity of craft beer, cider, specialty cocktails and wine
has helped sustain the industry. No longer a beer alternative limited only to local brewpubs and
small-time hobbyists, craft beer has emerged as one of the fastest-growing alcoholic beverage
industries in the United States. Consumers have increasingly purchased craft beer for its perceived
higher quality, greater attention to detail, finer ingredients and wider variety of flavors than
traditional light beers. Likewise, the market for hard cider, once considered a niche alcoholic
beverage industries relegated to local cider houses across New England, has grown into a major
competitive force in the market for alcoholic beverages.
The factor that affects market growth is if the bars located in Pullman create similar
services as ours or if new bars open and provide similar services for better incentives.
C. Competition
There are many bars in Pullman but each provides its own experience. Stubblefields, a big
competitor, provides a large social environment as well a great location. It is located in the center
of Greek row and food providers such as Dominos and a taco shop surrounds it. Also one of our
main competitors is Ricos, it has a similar service as Behind Closed Doors. They also provide a
calm social environment with live entertainment. They’re weakness is their location, it is too far
off into town that college students wouldn’t want to drive all the way over there for a bar. Our bar
will be located near campus, near our target market. We are a styled bar, so our disadvantage could
be preference. Some people may not like the idea of a speakeasy bar, they just want to go out and
get drunk. But a styled bar can be also our biggest advantage because we are the only bar that will
have that back in time environment. It will be something new in the area and it is a unique idea.

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Our intention is not to worry mostly about profit, more of a positive review. We know that
opening a bar is difficult and starting in the industry the first few years will be hard, but we want
to start one and get the idea out and hopefully it catches on and we become big.
IV. The Economics ofthe Business
According to Ibisworld, revenue continues to increase in the bar industry as well as the
growth percentage.
I know to start up a bar; the first few years will not be about making revenue, more of breaking
even. It will take approximately two to three years to break even and start making profit. All the
start up costs is what leads to losing money the first year, but after the first year, if the business is
successful. The bar will start making profit but we are teaming up with another bar to provide this
experience. We will be avoiding all the start up costs such as equipment expenses.
V. Marketing Plan
Entry and growth strategy
As a team, we asked Rico’s to use their location. We have chosen Pullman as our base
location with the information that we collected from our surveys. 73% of those who took our
survey said they would enjoy a prohibition themed bar, and were willing to pay $6.67 per drink on
average. First location will be the official Behind Closed Doors in Pullman for about $8000 a year
to rent a Main St Location. BCD has a unique theme, live music, classy-fun environment, serves
specialty drinks, and offers an exclusive environment. As we expand to other college campuses
we will begin with similar partner trial runs with use password, special drinks, jazz music and pool
tables.
Pricing
Our pricing for cocktails was based on our survey information. We asked over 80 people
how much they would be willing to pay for a cocktail, the answers ranged from zero dollars to ten

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and up. On average those surveyed were willing to pay $6.67 per drink, but decided on $7.00 per
drink at our event and feel it appropriate to continue to do so. Our survey information also indicated
7% were willing to pay $10.00 and up with an average of $14.87 per drink. This indicates a very
positive opportunity in providing high end drinks, and also vertical integration into premium
liquor.
Advertising and promotion
We will be using the power of social media to promote our speakeasy themed bar. We will
be posting on Facebook, Instagram, and Twitter about our events to better reach a larger market,
WSU students, who heavily rely on these social media plat forms for communication. Our
Facebook and Twitter pages have over 700 followers and growing.We will create an event page
on Facebook and invite all our friends. We think this is effective because our friends will go
because we are putting it on, so they’re going to tell their other friends to come and word of mouth
will spread about this event. Hopefully it will create buzz and get a lot of people to come check
out our bar. We will also be posting pictures on Instagram leading up to the event just so our
followers will know what to expect and get them excited. We will be gaining followers by going
to WSU groups of social media and posting on there about our Idea. We will be posting daily or
weekly until opening day.
We will also, when it gets closer to opening day, be passing out flyers at the Washington
State University Campus and also posting posters all over campus with detailed information. We
want to let the whole community know that this is a class project for an upper level class. Most
people will go to support since students put it on and they know it will be affordable. This will be
the most important step in getting a good turn out for our business.
VI. Designand Development Plans
Development tasks
We will be developing a layout for the bar and how it will be set up. We have an idea of
how it will be. We want to make a secret door like they had in the actual speakeasies back then, so
it can be secretive and stick to our theme. Ultimately we are tying to recreate that moment in time
into a bar. We are going to buy decorations to make the bar more 1920’s. We will also provide a
section for the live jazz band, and also a dance floor. We are going to have photo-shoot set up, so
customers can leave with a souvenir to remember the night that they went to a speakeasy bar. Also
all the staff, which is the team, will be dressed up in style of the 1920’s.
The only products we will be providing are the drinks but that’s collaborative with the bar.
We will not be providing the alcohol, therefore all profits will go the bar provide us their venue.
We will talk to the owner and bartender to make 1920 inspired drinks but we are not responsible
for providing the supplies. No money will be going in or out from the alcohol consumption.

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Costs
Our expenses are going to be all our decorations, the jazz band, costumes, and maybe if we
have to pay rent for the venue. We are going to ask if we can use the venue for free, because we
will not be interfering with their profitability with their alcohol. We are not sure if we are going to
charge an additional entry fee, its up to change. all our total costs for everything should between
$0-$300. We will be possibly fundraising for our business or we will be putting in money from
our own pockets for costs. Our budget is limited. We will ask for donations during opening day
during the speakeasy bar to raise money for a charity. We want to make this experience as selfless
as possible. It is a business but we are trying to get experience running a business so we are not
focused on making money for ourselves. We care more of putting the maximum effort to run a
business but to give back to the community simultaneously.
Proprietary issues
Our contractual agreement will be with the bar we choose, we will agree to compliment
their service not substitute their service. We plan to work with the bar rather than take their
business. We are just renting the venue and providing our speakeasy experience, we don’t own
any part of the bar we rent. Also, our staff will be qualified. If our team plans to serve alcohol, the
member(s) will have licenses to legally do so. We will operate in legal terms and will follow every
policy regulated to bars.
Our ownership of the business is dividing as accordingly and is subject to change:
Giuliana Plut 19%
Francisco Guerrero 17%
Meron Gurmu 16%
Izumi Hara 16%
JC Lomeli 16%
Garrett Bogar 16%
VII. Manufacturing and Operations Plan
Operating Cycle
Very important to the success of our business in the quick delivery of drinks and food to
our customers. Servers will need to quickly take and deliver drink orders within the established 8
minute time period. As soon as food is prepared it should quickly follow. Alcohol should be
properly stocked and accounted for using an electronic bar code system. Said system would require
bar tenders to scan out alcohol thus increasing shrink accountability.
During peak services times (10p.m. – 1a.m.) one extra bar tenders will be present to quickly
fill drink orders. Weekends, holidays, and special events will be staffed with one extra server who
will help with taking orders, cleaning and prep.
Geographical location
Behind Closed Doors should be located in a social-downtown area. Although the specific
location has not yet been decided it is planned to be in the Spokane/Pullman area. Our survey

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found that about 40% of participants preferred Stubblefields in Pullman, 32% Valhalla, 16% The
ZZu, 18% Rico’s, and 16% The Coug. Our two prime host-bar picks would be Stubblefields and
Valhalla because of their large customer base.
Both of our top picks are great locations because they are in high foot traffic area. Along with
high foot traffic both bars have high brand recognition on campus. Proper licenses have been
awarded to both establishments.
Facilities and improvements.
Any space would been to provide large enough space for a live band and dancing. A bar
area and plenty of table space would be idea with an estimated 15 tables.
During out startup period we plan to team up with another bar. This bar would already have
the necessary equipment. Such equipment would include industrial grade kitchen grills, fryer,
freezers, refrigerators, sinks, and comply with all state health regulations. Finding our own location
would be considered after proven success.
Our future location would require all stated kitchen equipment and dish wear along with
proper health inspector approval. Tables and minimal stage equipment would also be of great
advantage.
Strategy and plans
All food and drinks will be made in house by our qualified staff.
Potential suppliers would include Sysco the food delivery service. They will do weekly
food drops consisting of the needed supply list given to them. Several beer companies would be
responsible in bringing our bar alcohol.
Regulatory and legal issues
Food handler licenses will be required by staff who fall under Washington state laws and
regulations. The liquor control board will sign off on all necessary paper work and permits need
for the sale of alcohol.
During our partnership with a host bar there will be an established contract stating how
much revenue will go to behind closed doors. This document will be legally binding and notarized
by a licensed official.
All members of management will be obligated to sign a non-compete contract. This
contract will unsure the lively hood of Behind Closed Doors. Said contract would be legally
enforceable and call for individual to reframe from managing any other bar with in a 50 mile radius
for a three years period.

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VIII. ManagementTeam
Organization
General Manager: Giuliana Plut
Photographer: Francisco Guerrero
Social Media: Meron Gurmu
Marketing: Izumi Hara
Marketing & Time Period Specialist: Francisco Guerrero
Business Operations Coordinator: JC Lomeli
Event Promotion & Performance Coordination: Garrett Bogar
Division of Business ownership: GP-19%, FG-17%, MG-16%,IH-16%, JC-16%, GB-16%
Key management personnel
All members of management will perform the roles they were assigned along with filling
in for every other position. Each member of management (listed above) will double as servers, bar
tenders, cooks, cleaners, and any other position with in the business.
Giuliana Plut, our acting General Manager, would be in charge of overseeing all business
operations along with every one under him. Mr. Guerrero will also be our photographer on nights
the service is offered. Meron Gurmu will be in charge of Social media with in the business. Ms.
Gurmu will update social media accounts and maintain Behind Closed Doors on social media
platforms. Izumi Hara will act as or head of marketing. Ms. Hara will increase our market exposure
through the use of various marketing avenues. Marketing and Time Period Specialist will help
coordinate due dates and give aid in marketing as well. JC Lomeli our Business Operations
Coordinator will manage and help organize all business functions. Garrett Bogar will be head of
Event promotion and Performance Coordination. Mr. Bogar will make sure all live performances
with in the business go according to plan. He will also make sure customer experience is up to par.
Management compensation and ownership
All workers including management will be paid state minimum wage. Members of
management will earn bonuses depending of year-end revenues and percentage of business
ownership.
Because of our minimum wage policy most employees and members of management will
be earning less than they had in previous jobs.
IX. Sustainability and Impact
Building a sustainable business with minimal impact to the environment is a core
component of Behind Closed Doors. We believe that the key to business success is abiding by all
environmental regulations all the while leading the way to a more profitable cleaner earth. At

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Behind Closed Doors we hope to spread the message of clean business practices by way of
continued business expansion.
Used oil left can pose as a huge problem for the environment that is way Behind Closed
Doors will donate all of our used oil to bio-fuel refinery companies. By doing this we will be able
to reduce waste and our overall carbon footprint. Another key element in our sustainability
approach will be the use of recycling bins. All staff will separate plastics, cans, papers, and
biodegradable material as such. Our Biomaterial will be donated to local community gardens to be
used as compost. All other material will be taken to recycling facilities. Any proceeds from
recycled material will be donated to local Boys and Girls Clubs.
Behind Closed Doors will screen and only do business with individuals and organizations
that abide by all environment safety laws.
Our business will support select community cleanup efforts via staff volunteering and cash
donations.
As Behind Closed Doors begins to grow into a fruitful business it will continue to go above
and beyond with matters of environmental conservation. Our business hopes to pave the way and
establish procedures other business could follow.
X. Overall Schedule
Deadlines & Timelines
 Incorporation of the Venture: Completed
 Completion of design and development:
a. Social Media Account Implementation: Completed
b. Social Media Graphics Implementation: 02/27/2015
c. Social Media Promotion Frequency: Friday & Saturday of Every Week
d. Hard Print Promotion Materials Obtained: 03/20/2015
e. Hard Print Promotion Materials Distributed: Friday & Saturday, Weekly
 Event Trial Run: 04/13/2015
 Interior Event Furnishings Obtained: 04/03/2015
 Event Date: April 17th, 2015
Ramp-Up Consideration
During peak services times (10p.m. – 1a.m.) one extra bar tenders will be present to quickly
fill drink orders. Weekends, holidays, and special events will be staffed with one extra server who
will help with taking orders, cleaning and prep.
Schedule Slippage
Schedule slippage will be of most concern regarding sufficient inventory. Potential
slippage will occur if there are misallocated orders or deliveries with Sysco (our food delivery
service), and/or with our local alcoholic beverage distributors. To counteract the potential for

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insufficient operation supplies, an overstock of 25% of food/alcoholic beverages will be
perpetually maintained.
XI: Critical Risks, Problems, andAssumptions
Implicit Assumptions & Risks
 Overconsumption of alcoholic beverages
o Violence
 Proper Bouncing Staff will be in constant supervision and regularly
intervaled facility patrol to ensure patron safety; in the nearby
outside facility, and within all spaces that reside within the facility.
o Sexual Assault
o Drunk Driving
This includes expertise awareness for patrons intending to operate a
motor vehicle while impaired. Supplemental taxi companies will be
on standby to accommodate and taxi information will be readily
available.
o Alcohol Poisoning
 Wait staff and bartenders are educated on recognizing patron limits,
and will not over serve. The staff are required to attend mandatory
bi-weekly training to remind and continually train on recognizing
when patrons are reaching unsafe intoxication capacities and the
severity that can ensue if not handled carefully.
o Vandalism
 Proper Bouncing Staff will be in constant supervision and regular ly
intervaled facility patrol to prevent potential vandalism.
 Food Safety
o Necessary Certification
 Cooks and wait staff are required to stay current with food handler
permit certification guidelines pertinent to the business and state
standards. Behind closed doors will remain compliant with the food
and health administration and make it a point to keep it a high
priority.
o Proper equipment
 Necessary industrial equipment will be utilized to keep all food
products safe and ready for consumption.
o Equipment maintenance

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 Hill yard’s appliance maintenance corporation is regularly
scheduled to ensure all food and beverage equipment is above
condition standard.
 Illegal Activity associated with the nature of a Speakeasy
o All business interaction, communication to financial quality, as well as all
patron interaction will be transparent in nature to deter any suspicion of
illegal activity that may be associated with the nature of our business; such
as illegal drug use or sales, or illegal gambling.
Major problems or other risks
Price cutting by competitors will not be of concern. The unique nature and environment
that our business venture provides will allow us to be partially negligible to competitor pricing
focuses.
Design or manufacturing costs in excess of estimates: The company partners will plan for
such an occurrence by establishing a minimum design and manufacturing cost of any essential
items, while pursing an ideal cost on favorable items in hopes of over performing our set base.
To counter balance the possibility of sales projections we will establish all costs of
favorable production and operation material, buy material of lesser than desirable quality, and
again, hope to over perform our projection.
To counter the possibility of unmet product development schedules we have given all
deadlines a grace period for management operation flexibility.
Critical Assumptions, problems, and risks.
The most critical assumption, problems, and risks that we have accounted for are low
attendance, inaccurate food and beverage acquisition, and patron apathy towards a nuance in
themed bar events such as ours. In hopes of a healthy attendance, we have focused our marketing
efforts towards a strong social media campaign to raise awareness. We have conducted online
surveys and in person questionnaire’s to research what the consumer wants at an event such as
ours. To account for proper food and beverage allocation we have obtained expert advice from
local bar owners and work to build a report with food and beverage distributors in the area to
ensure accurate and timely delivery requests. To combat apathy our focus is on brining a more
than sufficient quality live performance individuals.
XII. The Financial Plan
Behind Closed Doors plans to operate, and accrue revenue on a low-risk financial basis,
for one calendar year. Partnering with existing venues and splitting profits will raise initial
Capital. During our first year of operation, Behind Closed Doors intends to hold bi-weekly
events, and strictly assumes a $200.00 sale and marketing expense per event. Profits will be
reached only if drink sales exceed average unit sold at the partnering venue, and/or when drinks
are purchased from our exclusive Behind Closed Door’s drink menu. Profits reached strictly
from these sale circumstances will be our source of revenue. Profits will be invested towards
purchasing our first location. Additional capital, if and how much needed will be acquired
through small business loans, validated by sales records through partner events over the past

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year. Projected sales were calculated from past events, and expenses were calculated from
balance sheets from bars with similar business plans, staffing, and expenses.
Pro Forma Income Statement
Shared Venue Purchased Location
Sales (bi-weekly
event)
$41,600 Projected Sales $520,000
Direct Cost of Sales $0.00 Direct Cost of Sales $47,000
Other Cost of Goods $0.00 Other Cost of Goods $0.00
Total Cost of Sales $0.00 Total Cost of Sales $47,000
Gross Margin in $ $41,600 Gross Margin in $ $473,000
Gross Margin in % 0% Gross Margin in % 91%
Expenses: Expenses:
Payroll $0.00 Payroll $70,000
Sales & MKTG Exp. $5,200.00 Sales & MKTG Exp. $10,400
Rent $0.00 Rent $8,000
Utilities $0.00 Utilities $4,600
Insurance $0.00 Insurance $8,500
Payroll Taxes $0.00 Payroll Taxes $10,500
Total Operating Exp: $5,200 Total Operating Exp: $112,000
Net Profit/Sales in $ $36,400 Net Profit/Sales in $ $408,000
Net Profit/Sales in % 87.5% Net Profit/Sales in % 78.5%
XIII. ProposedCompany Offering
We know that in this type of market, being themed night life venues, have the propensity
to fall short of expected revenue or surpass sales predictions. Our dollar figures in our pro forma
income statement were comprised from one single event, and therefore lack a more precise
projection that would be possible from aggregating over several events. Because of this, and
other unforeseen variable fluctuations in cost of sales or operating expenses, we are seeking 75%
of the net profit of sales in dollars during our first year with a purchased location totaling
$302,000. During our first year partnering with local venues we fully expect to obtain, at the
very least, $36,400 in net profit from sales. We are confidant in reaching this number because
our market research strongly indicates there is a demand for our unique type of night life
experience, barriers to entry are low, and competitive themed venues are minor.
Net profit in sales for our year of partnering with local venues will serve the sole purpose
of financing our first purchased location in the following year. If our $36,400 is reached and we
can acquire small business loans than no outside investors will be sought. If it is the case that one
of the two are not reached and we fall short of the capital we need to purchase our first location

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than we will look towards outside investment options. For every $25,000 acquired from outside
investors, Behind Closed Doors is willing to offer 5% ownership of our business. 70% of net
profit in sales, starting our first calendar year with our purchased location, will go towards
paying our founders salaries relative to their ownership percentage, 15% is budgeted towards
unexpected changes in expenses, and 15% will be budgeted and invested towards expansion to
new Behind Closed Doors locations.

Mktg490 Business Plan Final

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