De Fan Restaurant is a proposed specialty Mongolian restaurant in the Greater Vancouver Area, offering unique grilled fish dishes aimed primarily at the local Chinese-Canadian demographic. The owner, Ms. Wenyan Yip, brings five years of successful restaurant management experience from China and plans to attract customers through a penetration pricing strategy during its initial months. The business anticipates total start-up costs of $575,000 and predicts breaking even after four months of operation, with projected sales growth over its first three years.

1. NOTE: This is a business plan sample prepared by Newton Group Marketing. Names and locations
have been changed for client privacy. Any similarities to any actual business are a coincidence.
2014 - 2018
Business Plan | De Fan Restaurant

2. Table of Contents
I. EXECUTIVE SUMMARY ........................................................................................................................................... 2
II. BUSINESS OVERVIEW ........................................................................................................................................... 3
III. COMPANY AND OWNERSHIP STRUCTURE ................................................................................................... 4
IV. MANAGEMENT STRUCTURE .............................................................................................................................. 4
V. OPERATIONS ............................................................................................................................................................ 5
BUSINESS OPERATIONS .................................................................................................................................................................... 5
SUPPLIERS ........................................................................................................................................................................................... 6
LOCATION & OUTLAY ....................................................................................................................................................................... 6
CAPITAL EQUIPMENT REQUIREMENTS ......................................................................................................................................... 6
VI. STAFFING ................................................................................................................................................................. 7
VII. MARKET ANALYSIS ............................................................................................................................................. 8
TARGET SEGMENTS ........................................................................................................................................................................... 8
PRICING STRATEGY ........................................................................................................................................................................... 9
SALES, PROMOTION & DISTRIBUTION ........................................................................................................................................... 9
COMPETITORS .................................................................................................................................................................................... 9
COMPETITIVE EDGE ....................................................................................................................................................................... 10
SWOT ANALYSIS ............................................................................................................................................................................ 10
VIII. FINANCIAL ANALYSIS .................................................................................................................................... 11
START-UP COST REQUIREMENTS ................................................................................................................................................ 11
SALES FORECAST FOR YEAR 1 ..................................................................................................................................................... 12
PRO FORMA INCOME STATEMENT (YEARS 1-3) ...................................................................................................................... 13
PRO-FORMA CASH FLOW PROJECTIONS (YEAR 1) .................................................................................................................. 14
PRO-FORMA CASH FLOW STATEMENTS (YEARS 1-3) ............................................................................................................ 16
PRO-FORMA BALANCE SHEET (YEARS 1-3) ............................................................................................................................. 17

3. 2
I. Executive Summary
Introduction
De Fan Restaurant is a specialty Mongolian restaurant which will compete in the Greater Vancouver
Area (GTA) restaurant industry in British Columbia. The start-up will stand out from competitors
with its unique grilled fish specialty dishes and will cater primarily towards the target audience of
Chinese-Canadians living and working in close proximity to the restaurant. Owner, Ms. Wenyan Yip
has spent the past 5 years running a small successful chain of restaurants overseas in China: Yu
Shang Grill Fish Qiaohua, Yu Shang Grill Fish Wanda and Yu Shang Grill Fish Zhongshan restaurant
all located in Hohhot city. All three restaurants are currently in full operation and generate annual
revenues of approximately $1.4 million (CAD). Ms. Yip plans to bring her restaurant business
experience, cash flow management skills and industry knowledge to the Mongolian restaurant
start-up to create a successful business that stands out in the GTA marketplace.
The Market
According to research firm MarketLine, the Canadian restaurants industry had total revenues of
$51.1 billion in 2011, representing a compound annual growth rate (CAGR) of 3.7% between 2007
and 2011. The industry's volume is expected to rise to from 1.083 million employees (2011) to
1.149 million employees by the end of 2016, representing a CAGR of 1.2% for the 2011-2016
period. Additionally, the performance of the industry is forecast to accelerate, with an anticipated
CAGR of 4.1% for the five-year period 2011 - 2016, which is expected to drive the industry to a
value of $62.4 billion (an increase of 22.1% since 2011) by the end of 2016.
De Fan Restaurant will target both Chinese locals and visitors to the city with its authentic
Mongolian cuisine. Management will initially open with a penetration pricing strategy to drive trial
usage and drive new customers within the first 6 months.
Financial Considerations
The Company will require total start-up costs of $575,000, and is projected to breakeven in month
4 of its first year. The following is the revenue, expenses and profit projections for the Company’s
sales over the first 3 years of operations.
YR 1 YR 2 YR 3
SALES $2,399,352 $2,886,991 $3,147,774
GROSS MARGIN $625,452 $835,916 $989,615
NET PROFIT $63,007 $155,187 $192,362
This target is seen as attainable through effective promotional efforts and years of management’s
experience opening profitable restaurant start-ups. This business plan will discuss the tactics and
strategies to generate the revenues as stated, and the implementation to successfully become a
profitable restaurant in the marketplace.

4. 3
II. Business Overview
Business Model
The proposed company, De Fan Restaurant (The Company) is a Mongolian restaurant start-up,
which offers delicious Chinese food and specialty grilled fish dishes with Mongolian flavors unique
to the Vancouver restaurant market. The restaurant will be located in the Lower Mainland, and will
be owned and managed by Ms. Wenyan Yip, who has spent the past 5 years running a small
successful chain of three restaurants overseas in China.
• Yu Shang Grill Fish Restaurant in Saihan District – Hohhot City (open since September
2009) sitting 170 people with total 16 employees
• Yu Shang Grill Fish Restaurant in Wanda Square, Saihan District- Hohhot City (open since
November 2010) sitting 120 people with total 23 employees
• Yu Shang Grill Fish Restaurant On Zhongshan Road West, Saihan District - Hohhot City
(open since April 2011) sitting 350 people with total 25 employees
All three restaurants are currently in full operation and generated 1.4 million (CAD) in 2013. Prior
to this role she was the owner of a fashion store for 4 years from 2004-2008. Yip plans to bring her
restaurant business experience, cash flow management skills and industry knowledge to the
Mongolian restaurant start-up and create a successful business that stands out in the Lower
Mainland marketplace.
Commercial Viability of the Business
Restaurant Growth in Canada
According to MarketLine, the Canadian restaurants industry had total revenues of $51.1 billion in
2011, representing a compound annual growth rate (CAGR) of 3.7% between 2007 and 2011. The
industry's volume is expected to rise to from 1.083 million employees (2011) to 1.149 million
employees by the end of 2016, representing a CAGR of 1.2% for the 2011-2016 period1
.
Industry Forecast to Accelerate
The performance of the industry is forecast to accelerate, with an anticipated CAGR of 4.1% for the
five-year period 2011 - 2016, which is expected to drive the industry to a value of $62.4 billion (an
increase of 22.1 since 2011) by the end of 20161
.
This market research combined with the owner’s proven capabilities of generating profits with
multiple restaurant locations demonstrates a strong commercial viability for De Fan Restaurant.
1
Restaurants Industry Profile: Canada. (2013). Restaurants Industry Profile: Canada, 1-29.

5. 4
Management
Ms. Wenyan Yip brings 5 years experience owning restaurants and is currently the co-owner of Yu
Shang Grill Fish Restaurant, where she holds 45% company shares. The company currently
manages 3 successful and well-managed restaurants in China, which generates approximately $1.4
million (CAD) annually in sales.
Ms. Yip brings many years of restaurant experience to the start-up and possesses a strong level of
both cooking skill and industry experience for the success of De Fan Restaurant. She is excited to
bring her skills and experience to the new restaurant, and help generate new employment
opportunities for the Canadian hospitality industry through the business.
III. Company and Ownership Structure
Business Structure
De Fan Restaurant will be formed as a limited company, offering services in the hospitality industry.
Percent Ownership
The company will be owned 100% by Ms. Yip, and will be fully financed by her company’s assets.
IV. Management Structure
Organizational Chart
De Fan Restaurant will operate under the following organizational chart, where staffing recruitment
will take place between Months 2-3.
• Owner/Manager
• Head chef
• Cooks/Dishwasher/Kitchen staff
• Bussers/Cleanup
• Cashiers/Wait staff

6. 5
Table 1 - Organizational Chart
In the first year of operations, total staff will consist of 14 employees (full time and part time), and
will grow with sales growth to 20 and 25 employees in Years 2 and 3 respectively.
V. Operations
Business Operations
De Fan Restaurant will operate as a typical restaurant business operation, for full dining lunch and
dinner service. Patrons will receive exceptional service by waiting staff and will choose from a
delicious array of unique Mongolian dishes at a reasonable price closely matched to the quality and
size of the meal ordered.
Table 2 - Customer Experience Schematic
Customer
Greeted &
Seated
è
Order Drinks &
Present Menu +
Specials
è Customer Orders è
Meal is Prepared &
Served
ê
Cleanup Staff
Cleans Table
For Next
Customers
ç
Customer Leaves
With Warm Service ç
Finished Customer
Pays At Cashier ç
Continued
Customer Service
Throughout Meal
Owner
Manager
Chef
Cooks / Diswashers
Bussers Cashiers /Wait Staff

7. 6
Staff will maintain a continual workflow to match the customer volume, from greeting/waiting on
customer tables, to cooking and preparing dishes, to directing the paying customers to the cashier
and table cleanup. Everything will be done to maximize pleasure of experience for the customer,
and create a consistently exceptional impression of cleanliness, professionalism, with positive and
friendly staff interactions at an excellent cost.
Food ingredients, cleaning and cooking equipment will all be restocked on a weekly basis to match
regular levels of consumption, with a surplus of 10-15% available on hand. Ms. Yip will work to
ensure the business runs fluidly with strong cash flow management.
Suppliers
Food will be sourced from local market to ensure freshness and quality of dishes, while
simultaneously supporting local growers and reducing overhead costs.
Location & Outlay
De Fan Restaurant will require between 1000-1500 sq. feet for its restaurant premises, and will be
located in a popular area in the Greater Vancouver Area (GTA). Although the exact location has not
yet been decided, the cities in order of preference are:
• Vancouver
• Richmond
• Burnaby
Location will be largely determined by its degree of accessibility and proximity to the major Chinese
communities in the GTA.
Capital Equipment Requirements
Management will form De Fan Restaurant either by creating new restaurant or through purchasing
an existing restaurant. The final decision will be determined primarily on management’s ability to
secure the final location at the lowest price, with the balance between (a) time and costs of
renovation and purchasing new equipment versus (b) purchase price of an existing restaurant and
staff. Management projects total start-up cost requirements to be $575,000, with the most
significant costs being: Cash on hand requirements, start-up inventory, purchase of long-term
assets and $75,000 in total start-up expenses.

8. 7
Startup Requirements
Startup Expenses
Legal $3,000
Menu/Stationary $2,500
Brochures $5,000
Consultants $10,000
Insurance $3,000
Debt Service $5,000
Licenses/Tax/Deposits $12,000
Lease Deposit $15,000
Accounting $2,500
Soft Opening Expense $5,000
Grand Opening Advertising $10,000
Misc. Expenses $2,000
Total Startup Expenses $75,000
Startup Assets
Cash Required $50,000
Startup Inventory $50,000
Other Current Assets $0
Long-term Assets $400,000
Total Assets $500,000
Total Requirements $575,000
All start-up expenses will be provided by the applicant and no external funding will be required.
VI. Staffing
Ms. Yip will hire a total of 14 employees in Year 1 in the following roles: chef, bussers, cooks,
dishwashers and cashiers. All staff members will be hired between Months 2-3 of operations, and
total personnel costs are projected at $233,009 in Year 1, $278,000 in Year 2 and $337,000 in Year
3.
Personnel Plan
Year 1 Year 2 Year 3
Owner/Manager $60,000 $70,000 $80,000
Chef $48,000 $50,000 $55,000
Cooks/Dishwasher/Kitchen Staff $20,000 $26,000 $32,000
Bussers/Cleanup $33,000 $40,000 $50,000
Servers $42,000 $60,000 $84,000
Cashier $30,000 $32,000 $36,000
Total People 14 20 25
Total Payroll $233,000 $278,000 $337,000

9. 8
VII. Market Analysis
Target Segments
Management segments its customers into the following target market groups: (a) local residents,
(b) guests of nearby hotels, convention centres and visitors to Vancouver, and (c) business workers,
or individuals who work nearby and drive a large majority of lunch time sales.
Breakdown of Local Resident Segment
Management identifies its target audiences within the local resident segment as (a) local Chinese
demographic individuals who live within 25 minutes drive to De Fan Restaurant, and (b) Vancouver
“foodies” or food enthusiasts.
Local Chinese Restaurant-Goers - The primary market for De Fan Restaurant is Chinese
Vancouverites (first and second generation) that live within 25 minutes drive to the restaurant. This
segment is already familiar and has a certain level of openness and likability to authentic Mongolian
foods, and will likely resonate very positively to De Fan Restaurant’s opening near their
neighbourhood.
Vancouver “Foodies” - Vancouver “foodies” are adults between the ages 25-45 who follow food
blogs and frequent both new and favourite restaurants in constant search for the their city’s best
food. They pride themselves on their food quality knowledge, and are very open and expressive
with their critiques/reviews on both social media and rating website such as Yelp. This target
segment is a highly influential group on the start-up’s brand reputation as it enters the marketplace,
as reviews gain wide reach of viewers and can significantly affect the attitude of new potential
customers.

10. 9
Pricing Strategy
Management will open with a penetration pricing strategy, where the restaurant will offer high
quality food at a low price. This is selected to maximize food trial and drive initial customers. After
5-6 months, after the restaurant has solidified a customer base, management will gradually
increase the price to match the market value of the food, and implement a value-based pricing
strategy to maximize potential company profits.
Sales, Promotion & Distribution
Management’s primary marketing and promotion activities will be: print advertisement, internet
marketing, coupons, discount cards (for current customers) and Chinese festival promotions.
Competitors
The Company’s competitors include other Mongolian BBQ Grill style restaurants in the GTA. There
is currently no restaurant in Vancouver like De Fan Restaurant with grilled fish specialties; Yu
Shang Grill Fish restaurant can provide about 100 different kinds of food made by different recipes
and condiments. This means that De Fan Restaurant will be a unique restaurant and the first
restaurant to serve customers with traditional and authentic Mongolian food.
Management identifies its closest type of direct competition as Mongolian BBQ Grill style
restaurants throughout the GTA, which serve BBQ meals by frying meats on a large frying pan,
however is very different from authentic Mongolian restaurants in China, and from the food that
will be served by De Fan Restaurant. The following is a list of such Mongolian BBQ Grill style
restaurants in the GTA area:
1. Mongo’s Stir Fry Grill (Previously Great Wall Mongolian BBQ) – Kitsilano - Mongo’s
allows customers to select the items they want such as beef, chicken, pork and lamb plus fresh
vegetables. Customers can add their sauces using a sauce chart, then watch the staff cook the
food in front of them. Restaurant offers “All-you-can-eat” or discounted single bowl options are
available. Recently changed its name from Great Wall Mongolian Grill. They are located close to the
University of British Columbia
2. Great Han Mongolian BBQ - Located in the Mount Pleasant neighbourhood, Great Han
Mongolian BBQ offers an all-you-can-eat Mongolian buffet for $11.95/person. The restaurant
recently renovated in early 2013 and garners a large number of positive customer reviews on food
quality and cleanliness.
3. Mongolie Grill - Mongolie Grill offers a Mongolian style eatery with two locations in Vancouver
and Surrey. It allows customers to choose their own ingredients and have them cooked on a flat
grill in front of them. The customer is able to creatively concoct her own meal and pays by weight,
and they offer an interesting promotion where if the customer guesses the cost correctly the meal
is free.

11. 10
Competitive Edge
De Fan Restaurant’s competitive edge lies in that it will be the first restaurant to bring authentic
Mongolian cuisine of unique grilled fish specialty dishes to the Vancouver restaurant market.
Although there are many BBQ “Mongolian” fried meat restaurants common to Vancouver areas,
one can hardly find this type of restaurant in China. Instead, De Fan Restaurant will bring authentic
Mongolian foods to Vancouver and will mimic the successful dishes of Yu Shang Grill Fish, which
offers approximately 100 different kinds of food made by different recipes and condiments. This
means that De Fan Restaurant will be a unique restaurant and the first restaurant to serve
customers with traditional and authentic Mongolian food.
By bringing this new unique food style to the Vancouver market, the restaurant will provide a
memorable, high-quality restaurant experience that is delicious, convenient and enjoyable for the
customer.
SWOT Analysis
Strengths
• Strong management with track record of success with 3 start-up Chinese restaurants
overseas
• Management can leverage its “newness factor” as a new entrant to the market place, and
generate interest, curiosity and excitement as a new Vancouver restaurant
Weaknesses
• New business, and no brand reputation, customer base or familiarity entering the market
• Being a new entrant can translate into initial inability to secure lower vendors costs, which
could negatively impact profits and/or ability to price competitively
Opportunities
• Growing popularity of reality shows such as MasterChef, Man v. Food, Kitchen Nightmares,
Hell’s Kitchen and Top Chef is increasing both customer awareness and appreciation for
quality restaurant experiences, which could lead to increased profits for an exotic Chinese
specialty restaurant.
• In North America people are increasingly “time-crunched” and moving towards going out
for meals rather than cooking at home. This trend will benefit both De Fan Restaurant and
the restaurant industry as a whole.
• Growing Chinese community in the GTA translates into an ever-growing target market for
De Fan Restaurant and demand for its Chinese specialty dishes.
Threats
• A growing Canadian public health concern for fish consumption following Japan’s nuclear
disaster could have a negative impact on demand for the Company’s specialty fish dishes.

12. 11
• A worsened Canadian economic state could have a negative impact on disposable income
levels, economic outlook and spending habits of Canadians. Any of which could negatively
affect company profits.
VIII. Financial Analysis
Start-up Cost Requirements
The following are the required start-up costs for the business, and throughout the first year of
operations.
Startup Requirements
Startup Expenses
Legal $3,000
Menu/Stationary $2,500
Brochures $5,000
Consultants $10,000
Insurance $3,000
Debt Service $5,000
Licenses/Tax/Deposits $12,000
Lease Deposit $15,000
Accounting $2,500
Soft Opening Expense $5,000
Grand Opening Advertising $10,000
Misc. Expenses $2,000
Total Startup Expenses $75,000
Startup Assets
Cash Required $50,000
Startup Inventory $50,000
Other Current Assets $0
Long-term Assets $400,000
Total Assets $500,000
Total Requirements $575,000

13. 12
Sales Forecast For Year 1
Pro Forma Profit and
Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month
10
Month
11
Month
12
Sales $132,605 $147,446 $155,638 $167,487 $182,582 $198,240 $212,540 $224,020 $240,731 $240,506 $245,567 $251,990
Direct Cost of Sales $98,023 $108,870 $114,888 $124,730 $134,747 $147,558 $156,760 $165,094 $179,089 $177,353 $181,120 $185,670
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $98,023 $108,870 $114,888 $124,730 $134,747 $147,558 $156,760 $165,094 $179,089 $177,353 $181,120 $185,670
Gross Margin $34,583 $38,576 $40,750 $42,757 $47,835 $50,683 $55,781 $58,927 $61,642 $63,153 $64,447 $66,320
Gross Margin % 26.08% 26.16% 26.18% 25.53% 26.20% 25.57% 26.24% 26.30% 25.61% 26.26% 26.24% 26.32%
Expenses
Payroll $17,500 $17,500 $17,500 $17,500 $18,500 $18,500 $19,500 $19,500 $19,500 $22,500 $22,500 $22,500
Sales and Marketing
and Other Expenses
$7,500 $5,000 $7,500 $5,000 $7,500 $5,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Depreciation $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Leased
Equip/Van/Dispensing
Systems
$1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050
Utilities $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Insurance $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745 $1,745
Other Taxes $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Taxes 30% $5,250 $5,250 $5,250 $5,250 $5,550 $5,550 $5,850 $5,850 $5,850 $6,750 $6,750 $6,750
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating
Expenses
$42,045 $39,545 $42,045 $39,545 $43,345 $40,845 $47,145 $47,145 $47,145 $51,045 $51,045 $51,045
Profit Before Interest
and Taxes
($7,463) ($969) ($1,295) $3,212 $4,490 $9,838 $8,636 $11,782 $14,497 $12,108 $13,402 $15,275
EBITDA ($2,463) $4,031 $3,705 $8,212 $9,490 $14,838 $13,636 $16,782 $19,497 $17,108 $18,402 $20,275
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($2,239) ($242) ($324) $803 $1,123 $2,459 $2,159 $2,945 $3,624 $3,027 $3,351 $3,819
Net Profit ($5,224) ($727) ($971) $2,409 $3,368 $7,378 $6,477 $8,836 $10,873 $9,081 $10,052 $11,456
Net Profit/Sales -3.94% -0.49% -0.62% 1.44% 1.84% 3.72% 3.05% 3.94% 4.52% 3.78% 4.09% 4.55%

14. 13
Pro Forma Income Statement (Years 1-3)
Pro Forma Income Statement
Year 1 Year 2 Year 3
Sales $2,399,352 $2,886,991 $3,147,774
Direct Cost of Sales $1,773,900 $2,051,075 $2,158,159
Other $0 $0 $0
Total Cost of Sales $1,773,900 $2,051,075 $2,158,159
Gross Margin $625,452 $835,916 $989,615
Gross Margin % 26.07% 28.95% 31.44%
Expenses
Payroll $233,000 $278,000 $337,000
Sales and Marketing and Other Expenses $97,500 $125,000 $150,000
Depreciation $60,000 $60,000 $60,000
Leased Equip/Van/Dispensing Systems $12,600 $12,600 $12,600
Utilities $24,000 $24,000 $24,000
Insurance $20,940 $22,000 $23,000
Other Taxes $24,000 $24,000 $24,000
Payroll Taxes $69,900 $83,400 $101,100
Other $0 $0 $0
Total Operating Expenses $541,940 $629,000 $731,700
Profit Before Interest and Taxes $83,512 $206,916 $257,915
EBITDA $143,512 $266,916 $317,915
Interest Expense $0 $0 $0
Taxes Incurred $20,505 $51,729 $65,553
Net Profit $63,007 $155,187 $192,362
Net Profit/Sales 2.63% 5.38% 6.11%

15. 14
Pro-Forma Cash Flow Projections (Year 1)
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month
10
Month
11
Month
12
Cash Received
Cash from Operations
Cash Sales $132,605 $147,446 $155,638 $167,487 $182,582 $198,240 $212,540 $224,020 $240,731 $240,506 $245,567 $251,990
Subtotal Cash from
Operations
$132,605 $147,446 $155,638 $167,487 $182,582 $198,240 $212,540 $224,020 $240,731 $240,506 $245,567 $251,990
Additional Cash
Received
Sales Tax, VAT,
HST/GST Received
15.00% $19,891 $22,117 $23,346 $25,123 $27,387 $29,736 $31,881 $33,603 $36,110 $36,076 $36,835 $37,799
New Current
Borrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities
(interest-free)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current
Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term
Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment
Received
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash
Received
$152,496 $169,563 $178,984 $192,610 $209,969 $227,976 $244,421 $257,623 $276,841 $276,582 $282,402 $289,789
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month
10
Month
11
Month
12
Expenditures from
Operations
Cash Spending $180,851 $154,021 $157,627 $169,920 $184,231 $198,673 $210,265 $218,518 $238,854 $224,689 $234,281 $240,084
Bill Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Spent on
Operations
$180,851 $154,021 $157,627 $169,920 $184,231 $198,673 $210,265 $218,518 $238,854 $224,689 $234,281 $240,084
Additional Cash Spent
Sales Tax, VAT,
HST/GST Paid Out
$16,907 $18,799 $19,844 $21,355 $23,279 $25,276 $27,099 $28,563 $30,693 $30,665 $31,310 $32,129
Principal Repayment
of Current Borrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

16. 15
Other Liabilities
Principal Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities
Principal Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other
Current Assets
$0 $0 $0 $0 $0 $10,000 $0 $10,000 $5,000 $0 $5,000 $0
Purchase Long-term
Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $197,758 $172,820 $177,471 $191,275 $207,510 $233,948 $237,364 $257,080 $274,547 $255,354 $270,591 $272,213
Net Cash Flow ($45,263) ($3,257) $1,513 $1,335 $2,459 ($5,972) $7,057 $543 $2,294 $21,228 $11,811 $17,576
Cash Balance $4,737 $1,480 $2,993 $4,328 $6,787 $815 $7,872 $8,414 $10,708 $31,936 $43,747 $61,323

17. 16
Pro-Forma Cash Flow Statements (Years 1-3)
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $2,399,352 $2,886,991 $3,147,774
Subtotal Cash from Operations $2,399,352 $2,886,991 $3,147,774
Additional Cash Received
Sales Tax, VAT, HST/GST Received $359,903 $433,049 $472,166
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $2,759,255 $3,320,040 $3,619,940
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $2,412,015 $2,683,764 $2,887,018
Bill Payments $0 $0 $0
Subtotal Spent on Operations $2,412,015 $2,683,764 $2,887,018
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $305,917 $368,091 $401,341
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $30,000 $50,000 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $75,000 $100,000
Subtotal Cash Spent $2,747,932 $3,176,855 $3,388,360
Net Cash Flow $11,323 $143,185 $231,580
Cash Balance $61,323 $204,507 $436,088

18. 17
Pro-Forma Balance Sheet (Years 1-3)
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $61,323 $204,507 $436,088
Inventory $185,670 $197,630 $189,236
Other Current Assets $30,000 $80,000 $80,000
Total Current Assets $276,993 $482,137 $705,324
Long-term Assets
Long-term Assets $400,000 $400,000 $400,000
Accumulated Depreciation $60,000 $120,000 $180,000
Total Long-term Assets $340,000 $280,000 $220,000
Total Assets $616,993 $762,137 $925,324
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities $53,985 $118,943 $189,768
Subtotal Current Liabilities $53,985 $118,943 $189,768
Long-term Liabilities $0 $0 $0
Total Liabilities $53,985 $118,943 $189,768
Paid-in Capital $575,000 $575,000 $575,000
Retained Earnings ($75,000) ($86,993) ($31,806)
Earnings $63,007 $155,187 $192,362
Total Capital $563,007 $643,194 $735,556
Total Liabilities and Capital $616,993 $762,137 $925,324
Net Worth $563,007 $643,194 $735,556