Business Plan Template: Business Plan Ice Cream Parlor



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[COMPANY NAME]

Eatery * Ice Cream Parlor

Business Plan

Contact: [NAME]

[ADDRESS]

[CITY, STATE  ZIP]

XXX-XXX-XXXX Phone

XXX-XXX-XXXX Cell

XXX-XXX-XXXX Fax

[EMAIL]

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [COMPANY NAME] in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [COMPANY NAME].

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to [COMPANY NAME].

Upon request, this document is to be immediately returned to [COMPANY NAME].

 

 

 

___________________

Signature

___________________

Name (typed or printed)

___________________

Date

 

 

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary 1

Chart: Highlights 2

1.1 Objectives 2

1.2 Mission 2

1.3 Keys to Success 3

2.0 Company Summary 3

2.1 Company Ownership 3

2.2 Start-up Summary 4

Table: Start-up 4

Chart: Start-up 5

3.0 Services 6

4.0 Market Analysis Summary 7

4.1 Market Segmentation 7

Table: Market Analysis 7

Chart: Market Analysis (Pie) 8

4.2 Target Market Segment Strategy 8

4.3 Service Business Analysis 8

4.3.1 Competition and Buying Patterns 9

5.0 Strategy and Implementation Summary 10

5.1 SWOT Analysis 10

5.1.1 Strengths 10

5.1.2 Weaknesses 10

5.1.3 Opportunities 10

5.1.4 Threats 11

5.2 Competitive Edge 11

5.3 Marketing Strategy 11

5.4 Sales Strategy 12

5.4.1 Sales Forecast 12

Table: Sales Forecast 12

Chart: Sales by Year 13

5.5 Milestones 14

Table: Milestones 14

6.0 Management Summary 14

6.1 Personnel Plan 14

Table: Personnel 14

7.0 Financial Plan 15

7.1 Start-up Funding 15

Table: Start-up Funding 15

7.2 Important Assumptions 16

7.3 Break-even Analysis 16

Table: Break-even Analysis 16

Chart: Break-even Analysis 16

7.4 Projected Profit and Loss 17

Table: Profit and Loss 17

Chart: Profit Monthly 18

Chart: Profit Yearly 18

Chart: Gross Margin Monthly 19

Chart: Gross Margin Yearly 19

7.5 Projected Cash Flow 20

Table: Cash Flow 20

Chart: Cash 21

7.6 Projected Balance Sheet 22

Table: Balance Sheet 22

7.7 Business Ratios 23

Table: Ratios 23

Table: Ratios (continued) 24

Table: Sales Forecast 1

Table: Personnel 2

Table: Profit and Loss 3

Table: Cash Flow 4

Table: Balance Sheet 6

Executive Summary

[COMPANY NAME]

Contact: [NAME]

[ADDRESS]

[CITY, STATE ZIP]

(XXX)XXX-XXXX Phone

(XXX)XXX-XXXX Cell

(XXX)XXX-XXXX Fax

[EMAIL]

[COMPANY NAME] was established in [DATE] and is located in [LOCATION].  [COMPANY NAME] is a family managed restaurant whose owner, [NAME], brings over 15 years of managerial experience in the Restaurant Industry.  [COMPANY NAME] serves homemade recipes including Breakfast, Lunch and Dinner and is open from 6:30 am until 9:00 pm seven days a week.  [COMPANY NAME] is a full-service family restaurant and ice-cream parlor resembling a country-style kitchen that is clean, family friendly and geared towards social and business gatherings.  The decor is a genuine Americana theme including white lace curtains, ivy stenciling, handmade patriotic hangings, an old wooden radio, a soda fountain, nostalgic pictures of Coca-Cola bottles and classic cars.  There is no similar dining experience within [COUNTY] County.  [COMPANY NAME] is favorably located off a highly traveled intersection [ADDRESS] just minutes from a 232 acre Park and Recreation Complex.  The restaurant contains approximately 1,200 square feet of commercial space with 60 parking spaces available on site.

 

The affordable menu features classic hometown recipes from burgers and soups to milkshakes and banana splits.  Seating capacity in the restaurant is 65, including 12 barstool seats at a counter.  There is a large outdoor deck covered by a canopy, which can accommodate an additional 25 customers.  The restaurant hosts community events including, after-school functions, sports team functions, outdoor movies, and a weekly Sunday old-fashioned classic car show.  The restaurant prides itself on customer service and community involvement.

 

Clearly the competitive edge of [COMPANY NAME] is its reputation for quality food and affordability.  The homemade recipes are fresh, the portions are large and the desserts are delicious.  In addition, the clean atmosphere creates an inviting and comfortable meeting place for individuals and groups, which is conveniently located with ease of access.

 

[COMPANY NAME] is seeking grant funding in the amount of $500,000. The funding will be used to cover building expansions and updates, new equipment, and to hire additional staff.  Based on the detailed financial projections, [COMPANY NAME] future sales for Year 1, Year 2 and Year 3 are expected to be $167,651, $250,000 and $300,000. 

Chart: Highlights

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1.1 Objectives

[COMPANY NAME] has three main objectives:

 

1.  To be rated one of the top sit-down dining restaurants in [COUNTY], [STATE].

 

2.  To support the local youth in [COUNTY], [STATE].

 

3.  To accomplish annual gross sales of $160,000 in 2010; $250,000 in 2011; and $300,000 in 2012.

1.2 Mission

The mission of [COMPANY NAME] is to provide an inexpensive eatery for families on the go throughout the county of [COUNTY], [STATE].  In turn, the Restaurant's mission is also to give back to the community by creating employment opportunities for high-school students, college students and stay-at-home mothers; subsidizing programs and sports activities that are in jeopardy of being deleted from high-school curriculum; and contribute to local organizations like the Glee Club and others that are in need of assistance.

1.3 Keys to Success

The keys to success of the Restaurant are as follows:

 

1.  Good hometown cooking

2.  Affordable prices

3.  Daily community activities

4.  Commitment towards youth and school activities

2.0 Company Summary

[COMPANY NAME]

Contact: [NAME]

[ADDRESS]

[CITY, STATE ZIP]

(XXX)XXX-XXXX Phone

(XXX)XXX-XXXX Cell

(XXX)XXX-XXXX Fax

[EMAIL]

[COMPANY NAME] was established in April 2010 and is located in the City of [CITY], [STATE] at the [PLACE].  [COMPANY NAME] is a family managed restaurant whose owner, [NAME], brings over 15 years of managerial experience in the Restaurant Industry.  [COMPANY NAME] serves homemade recipes including Breakfast, Lunch and Dinner and is open from 6:30 am until 9:00 pm seven days a week.  [COMPANY NAME] is a full-service family restaurant and ice-cream parlor resembling a country-style kitchen that is clean, family friendly and geared towards social and business gatherings.  The decor is a genuine Americana theme including white lace curtains, ivy stenciling, handmade patriotic hangings, an old wooden radio, a soda fountain, nostalgic pictures of Coca-Cola bottles and classic cars.  There is no similar dining experience within [COUNTY].  [COMPANY NAME] is favorably located off a highly traveled intersection just minutes from a large Park and Recreation Complex.  The restaurant contains approximately 1,200 square feet of commercial space with 60 parking spaces available on site.

 

The affordable menu features classic hometown recipes from burgers and soups to milkshakes and banana splits.  Seating capacity in the restaurant is 65, including 12 barstool seats at a counter.  There is a large outdoor deck covered by a canopy which can accommodate an additional 25.  The restaurant hosts community events including, after-school functions, sports team functions, outdoor movies, and a weekly Sunday old-fashioned classic car show.  The restaurant prides itself on customer service and community involvement.

2.1 Company Ownership

[COMPANY NAME] is a Limited Liability Company solely owned by [NAME], as [COMPANY NAME], LLC.  [NAME] brings over 15 years of managerial experience in the Restaurant Industry.

2.2 Start-up Summary

Total start-up expense comes to $7,750.  Start-up assets required include $62,200 including $12,000 in initial cash to handle the operational expenses.  The following table and chart show the start-up costs for [COMPANY NAME].

Table: Start-up

|Start-up | |

| | |

|Requirements | |

| | |

|Start-up Expenses | |

|Legal |$2,500 |

|Stationery etc. |$500 |

|Insurance |$650 |

|Rent |$2,100 |

|Other |$2,000 |

|Total Start-up Expenses |$7,750 |

| | |

|Start-up Assets | |

|Cash Required |$12,000 |

|Start-up Inventory |$6,000 |

|Other Current Assets |$4,200 |

|Long-term Assets |$40,000 |

|Total Assets |$62,200 |

| | |

|Total Requirements |$69,950 |

Chart: Start-up

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3.0 Services

[COMPANY NAME] affordable homemade menu offers Breakfast, Lunch, Dinner and Dessert including:

• Breakfast Sandwiches

• Egg Platters

• Omelets

• Homemade Flapjacks/ French Toast

• Burgers

• Sandwiches

• Platters

• Healthy Choice

• Sides and Snacks

• Kids Menu

• Ice Cream Sundaes and Banana Splits

For a first-time visit, [NAME] recommends these dishes: 

• Fresh-made chicken cutlets with corn, fresh-peeled mashed potatoes and applesauce

• Spaghetti and meatballs

• Grilled Salisbury steak

• Grilled Pork Chops

• Pulled-pork Sandwiches

• Meat loaf with mashed potatoes and gravy, string beans and a side salad 

All prices are below $10.00.  Recent specials include:

• Four sliders with fries and soda $5.00

• Pulled pork with fries $6.00

• Sausage, peppers, onions on sub roll with fries $6.00

• Sliced beef with fries and gravy on hard roll  $6.00

• Fish and chips with slaw $6.00

• Chicken cutlet on hard roll with lettuce, tomato, mayo, side of slaw or potato salad $5.25

• Stuffed cabbage with fries $7.00

• Hot roast beef with fries and gravy $6.00

Eight kids' menu specials priced from $3.75 to $5.50 are each given kid-friendly titles:

• Horseback Riding (mini-Italian sub with fries)

• Miniature Golf (cheeseburger with fries)

• Movies (pizza burger with fries)

• Basketball (half-tuna sandwich with fries)

[COMPANY NAME] vegetable ingredients are all purchased fresh and locally from [COMPANY].  The soft and hard serve ice cream is from [COMPANY]. 

 

[COMPANY NAME] offers a meeting place for family, youth, business and community events.  The restaurant features a large outdoor deck and is located conveniently close to a [COMPANY].  The restaurant is focused on community involvement, especially with the youth.  In the near future, [COMPANY NAME] will be expanding its facilities to include a larger deck and new canopies. 

4.0 Market Analysis Summary

The U.S. restaurant industry, which consists of fast food, casual dining and upscale chains, is facing its toughest stretch in three decades. This is due to declining guest traffic as well as a decline in sales. To survive, restaurant operators will need to balance incentives and discounts with added value and brand enhancement.

 

[COMPANY NAME] business plan focuses solely on the restaurant and dining industry.  The Company has the services necessary to flourish within this industry.  The restaurant will market its services to families seeking a dining experience away from daily routine, businesses, and those looking for a place to celebrate a special event including birthdays, fund raisers, organizations in need of a meeting place, etc.  Forms of marketing include newspaper ads, coupon specials in direct mail circulations, flyers, community involvement and word of mouth.

4.1 Market Segmentation

[CITY] is one of [STATE]’s most livable communities offering a wonderful quality of life for residents young and old.  While [CITY], [STATE] and the immediate area is the primary market, [COMPANY NAME] market segment comes from the entire county of [COUNTY], [STATE] seeking a unique and quality dining experience.  The information contained in the market analysis table displays the details of the County's residential and business populations.

Table: Market Analysis

|Market Analysis | | | |

| | Year 1 | Year 2 | Year 3 |

|Sales | | | |

|Food |$134,121 |$200,000 |$240,000 |

|Beverage |$33,530 |$50,000 |$60,000 |

|Total Sales |$167,651 |$250,000 |$300,000 |

| | | | |

|Direct Cost of Sales | Year 1 | Year 2 | Year 3 |

|Food |$26,824 |$40,000 |$48,000 |

|Beverage |$6,706 |$10,000 |$12,000 |

|Subtotal Direct Cost of Sales |$33,530 |$50,000 |$60,000 |

Chart: Sales Monthly

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Chart: Sales by Year

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5.5 Milestones

The management team has established some basic milestones to keep the business plan priorities in place.  Responsibility for implementation falls on the shoulders of [NAME].  Set forth below are the mail milestones of this plan.

Table: Milestones

|Milestones | | | |

| | Year 1 | Year 2 | Year 3 |

|Management |$0 |$26,000 |$26,780 |

|Cooks |$18,000 |$36,000 |$37,080 |

|Waiting Staff |$54,980 |$56,629 |$72,629 |

|Total People |7 |8 |9 |

| | | | |

|Total Payroll |$72,980 |$118,629 |$136,489 |

7.0 Financial Plan

[COMPANY NAME] is expected to grow an average of 35% a year with the success of the $500,000 Grant expected in Year 1.  The company plans to use the funds to cover a $40,000 building expansion and updates, $55,000 for new equipment, and $36,000 to hire additional staff.

7.1 Start-up Funding

The start-up costs of [COMPANY NAME] will consist primarily of inventory and equipment.  The Company is seeking a $500,000 grant to cover the costs.

Table: Start-up Funding

|Start-up Funding | |

|Start-up Expenses to Fund |$7,750 |

|Start-up Assets to Fund |$62,200 |

|Total Funding Required |$69,950 |

| | |

|Assets | |

|Non-cash Assets from Start-up |$50,200 |

|Cash Requirements from Start-up |$12,000 |

|Additional Cash Raised |$0 |

|Cash Balance on Starting Date |$12,000 |

|Total Assets |$62,200 |

| | |

| | |

|Liabilities and Capital | |

| | |

|Liabilities | |

|Current Borrowing |$0 |

|Long-term Liabilities |$0 |

|Accounts Payable (Outstanding Bills) |$0 |

|Other Current Liabilities (interest-free) |$0 |

|Total Liabilities |$0 |

| | |

|Capital | |

| | |

|Planned Investment | |

|Owner |$0 |

|Investor |$0 |

|Additional Investment Requirement |$69,950 |

|Total Planned Investment |$69,950 |

| | |

|Loss at Start-up (Start-up Expenses) |($7,750) |

|Total Capital |$62,200 |

| | |

| | |

|Total Capital and Liabilities |$62,200 |

| | |

|Total Funding |$69,950 |

7.2 Important Assumptions

The assumptions used in this plan are that the Average Percent Variable Cost is 20% and the Estimated Monthly Fixed Cost is expected to be $13,039.

7.3 Break-even Analysis

The Monthly Revenue needed to Break-even is $16,299.

Table: Break-even Analysis

|Break-even Analysis | |

| | |

|Monthly Revenue Break-even |$16,299 |

| | |

|Assumptions: | |

|Average Percent Variable Cost |20% |

|Estimated Monthly Fixed Cost |$13,039 |

Chart: Break-even Analysis

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7.4 Projected Profit and Loss

[COMPANY NAME] expected net profit for Year 1, Year 2 and Year 3 is -$22,352, -$15,436 and $483, respectively.  Sales are expected to be $167,651, $250,000 and $300,000, for Year 1, Year 2 and Year 3, respectively.  The net profit as a percentage of sales is -13.33%, -6.17% and 0.16%, for Year 1, Year 2 and Year 3, respectively.  Items that fall under "Other" expenses are Phone/ Fax, Repair/Maintenance and Auto/Truck Expense.

Table: Profit and Loss

|Pro Forma Profit and Loss | | | |

| | Year 1 | Year 2 | Year 3 |

|Sales |$167,651 |$250,000 |$300,000 |

|Direct Cost of Sales |$33,530 |$50,000 |$60,000 |

|Other Costs of Sales |$0 |$0 |$0 |

|Total Cost of Sales |$33,530 |$50,000 |$60,000 |

| | | | |

|Gross Margin |$134,121 |$200,000 |$240,000 |

|Gross Margin % |80.00% |80.00% |80.00% |

| | | | |

| | | | |

|Expenses | | | |

|Payroll |$72,980 |$118,629 |$136,489 |

|Marketing/Promotion |$2,400 |$3,600 |$4,800 |

|Depreciation |$1,050 |$4,243 |$4,243 |

|Rent |$23,100 |$23,793 |$24,507 |

|Utilities |$15,000 |$15,450 |$15,914 |

|Insurance |$3,600 |$3,708 |$3,819 |

|Payroll Taxes |$10,947 |$17,794 |$20,473 |

|Other |$27,396 |$28,218 |$29,064 |

| | | | |

|Total Operating Expenses |$156,473 |$215,436 |$239,309 |

| | | | |

|Profit Before Interest and Taxes |($22,352) |($15,436) |$691 |

|EBITDA |($21,302) |($11,193) |$4,934 |

| Interest Expense |$0 |$0 |$0 |

| Taxes Incurred |$0 |$0 |$207 |

| | | | |

|Net Profit |($22,352) |($15,436) |$483 |

|Net Profit/Sales |-13.33% |-6.17% |0.16% |

Chart: Profit Monthly

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Chart: Profit Yearly

[pic]

Chart: Gross Margin Monthly

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Chart: Gross Margin Yearly

[pic]

7.5 Projected Cash Flow

As portrayed in the Monthly Cash Flow chart, [BUSINESS NAME] net cash flow for Year 1, Year 2 and Year 3 is forecast to be $398,025, -$11,176 and $6,008, respectively.  The Cash Balance is projected at $410,025, $398,848 and $404,857 for Year 1, Year 2 and Year 3, respectively.

Table: Cash Flow

|Pro Forma Cash Flow | | | |

| | Year 1 | Year 2 | Year 3 |

|Cash Received | | | |

| | | | |

|Cash from Operations | | | |

|Cash Sales |$167,651 |$250,000 |$300,000 |

|Subtotal Cash from Operations |$167,651 |$250,000 |$300,000 |

| | | | |

|Additional Cash Received | | | |

|Sales Tax, VAT, HST/GST Received |$0 |$0 |$0 |

|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 |$500,000 |$0 |$0 |

|Subtotal Cash Received |$667,651 |$250,000 |$300,000 |

| | | | |

|Expenditures | Year 1 | Year 2 | Year 3 |

| | | | |

|Expenditures from Operations | | | |

|Cash Spending |$72,980 |$118,629 |$136,489 |

|Bill Payments |$101,646 |$142,547 |$157,503 |

|Subtotal Spent on Operations |$174,626 |$261,176 |$293,992 |

| | | | |

|Additional Cash Spent | | | |

|Sales Tax, VAT, HST/GST Paid Out |$0 |$0 |$0 |

|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 |$0 |$0 |$0 |

|Purchase Long-term Assets |$95,000 |$0 |$0 |

|Dividends |$0 |$0 |$0 |

|Subtotal Cash Spent |$269,626 |$261,176 |$293,992 |

| | | | |

|Net Cash Flow |$398,025 |($11,176) |$6,008 |

|Cash Balance |$410,025 |$398,848 |$404,857 |

Chart: Cash

[pic]

7.6 Projected Balance Sheet

[COMPANY NAME] Net Worth for Year 1, Year 2 and Year 3 is forecasted to be $539,848, $524,412 and $524,896, respectively. The net worth results are based upon receipt of $500,000 in grant funds.

Table: Balance Sheet

|Pro Forma Balance Sheet | | | |

| | Year 1 | Year 2 | Year 3 |

|Assets | | | |

| | | | |

|Current Assets | | | |

|Cash |$410,025 |$398,848 |$404,857 |

|Inventory |$1,554 |$3,537 |$3,416 |

|Other Current Assets |$4,200 |$4,200 |$4,200 |

|Total Current Assets |$415,779 |$406,586 |$412,473 |

| | | | |

|Long-term Assets | | | |

|Long-term Assets |$135,000 |$135,000 |$135,000 |

|Accumulated Depreciation |$1,050 |$5,293 |$9,536 |

|Total Long-term Assets |$133,950 |$129,707 |$125,464 |

|Total Assets |$549,729 |$536,293 |$537,937 |

| | | | |

|Liabilities and Capital | Year 1 | Year 2 | Year 3 |

| | | | |

|Current Liabilities | | | |

|Accounts Payable |$9,881 |$11,881 |$13,041 |

|Current Borrowing |$0 |$0 |$0 |

|Other Current Liabilities |$0 |$0 |$0 |

|Subtotal Current Liabilities |$9,881 |$11,881 |$13,041 |

| | | | |

|Long-term Liabilities |$0 |$0 |$0 |

|Total Liabilities |$9,881 |$11,881 |$13,041 |

| | | | |

|Paid-in Capital |$569,950 |$569,950 |$569,950 |

|Retained Earnings |($7,750) |($30,102) |($45,538) |

|Earnings |($22,352) |($15,436) |$483 |

|Total Capital |$539,848 |$524,412 |$524,896 |

|Total Liabilities and Capital |$549,729 |$536,293 |$537,937 |

| | | | |

|Net Worth |$539,848 |$524,412 |$524,896 |

7.7 Business Ratios

The industry used for comparison to [COMPANY NAME] is "Full-Service Restaurants".  The 49% sales growth in the second year from the first year shown is due to the rapid expected growth business from marketing efforts and referrals from customers.  Third year growth is still expected to be high and is forecast at 20%.

Table: Ratios

|Ratio Analysis | | | | |

| | Year 1 | Year 2 | Year 3 |Industry Profile |

|Sales Growth |n.a. |49.12% |20.00% |1.65% |

| | | | | |

|Percent of Total Assets | | | | |

|Inventory |0.28% |0.66% |0.64% |6.34% |

|Other Current Assets |0.76% |0.78% |0.78% |43.25% |

|Total Current Assets |75.63% |75.81% |76.68% |53.12% |

|Long-term Assets |24.37% |24.19% |23.32% |46.88% |

|Total Assets |100.00% |100.00% |100.00% |100.00% |

| | | | | |

|Current Liabilities |1.80% |2.22% |2.42% |25.40% |

|Long-term Liabilities |0.00% |0.00% |0.00% |73.91% |

|Total Liabilities |1.80% |2.22% |2.42% |99.31% |

|Net Worth |98.20% |97.78% |97.58% |0.69% |

| | | | | |

|Percent of Sales | | | | |

|Sales |100.00% |100.00% |100.00% |100.00% |

|Gross Margin |80.00% |80.00% |80.00% |58.06% |

|Selling, General & Administrative Expenses |93.33% |86.17% |79.84% |23.02% |

|Advertising Expenses |1.43% |1.44% |1.60% |1.74% |

|Profit Before Interest and Taxes |-13.33% |-6.17% |0.23% |6.52% |

| | | | | |

|Main Ratios | | | | |

|Current |42.08 |34.22 |31.63 |1.25 |

|Quick |41.92 |33.93 |31.37 |1.00 |

|Total Debt to Total Assets |1.80% |2.22% |2.42% |99.31% |

|Pre-tax Return on Net Worth |-4.14% |-2.94% |0.13% |4325.19% |

|Pre-tax Return on Assets |-4.07% |-2.88% |0.13% |29.65% |

| | | | | |

Table: Ratios (continued)

|Additional Ratios | Year 1 | Year 2 | Year 3 | |

|Net Profit Margin |-13.33% |-6.17% |0.16% |n.a |

|Return on Equity |-4.14% |-2.94% |0.09% |n.a |

| | | | | |

|Activity Ratios | | | | |

|Inventory Turnover |21.08 |19.64 |17.26 |n.a |

|Accounts Payable Turnover |11.29 |12.17 |12.17 |n.a |

|Payment Days |27 |27 |29 |n.a |

|Total Asset Turnover |0.30 |0.47 |0.56 |n.a |

| | | | | |

|Debt Ratios | | | | |

|Debt to Net Worth |0.02 |0.02 |0.02 |n.a |

|Current Liab. to Liab. |1.00 |1.00 |1.00 |n.a |

| | | | | |

|Liquidity Ratios | | | | |

|Net Working Capital |$405,898 |$394,705 |$399,432 |n.a |

|Interest Coverage |0.00 |0.00 |0.00 |n.a |

| | | | | |

|Additional Ratios | | | | |

|Assets to Sales |3.28 |2.15 |1.79 |n.a |

|Current Debt/Total Assets |2% |2% |2% |n.a |

|Acid Test |41.92 |33.93 |31.37 |n.a |

|Sales/Net Worth |0.31 |0.48 |0.57 |n.a |

|Dividend Payout | 0.00 |0.00 |0.00 |n.a |

Table: Sales Forecast

Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12SalesFood$10,000 $10,200 $10,404 $10,612 $10,824 $11,041 $11,262 $11,487 $11,717 $11,951 $12,190 $12,434 Beverage$2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 $3,108 Total Sales$12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 $15,542 Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Food$2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 Beverage$500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609 $622 Subtotal Direct Cost of Sales$2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 $3,108 

Table: Personnel

Personnel Plan Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Management$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cooks$1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Waiting Staff$4,375 $4,375 $4,419 $4,463 $4,508 $4,553 $4,598 $4,644 $4,691 $4,737 $4,785 $4,833 Total People8 7 7 7 7 7 7 7 7 7 7 7 Total Payroll$5,875 $5,875 $5,919 $5,963 $6,008 $6,053 $6,098 $6,144 $6,191 $6,237 $6,285 $6,333 

Table: Profit and Loss

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 12Sales$12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 $15,542 Direct Cost of Sales$2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 $3,108 Other Costs of Sales$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cost of Sales$2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 $3,108 Gross Margin$10,000 $10,200 $10,404 $10,612 $10,824 $11,041 $11,262 $11,487 $11,717 $11,951 $12,190 $12,434 Gross Margin %80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% ExpensesPayroll$5,875 $5,875 $5,919 $5,963 $6,008 $6,053 $6,098 $6,144 $6,191 $6,237 $6,285 $6,333 Marketing/Promotion$200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 Depreciation$0 $0 $0 $0 $0 $0 $0 $0 $0 $350 $350 $350 Rent$0 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 Utilities$1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 Insurance$300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 Payroll Taxes15% $881 $881 $888 $894 $901 $908 $915 $922 $929 $936 $943 $950 Other$2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 Total Operating Expenses$10,789 $12,889 $12,940 $12,990 $13,042 $13,094 $13,146 $13,199 $13,252 $13,656 $13,711 $13,766 Profit Before Interest and Taxes($789)($2,689)($2,536)($2,378)($2,217)($2,053)($1,884)($1,712)($1,536)($1,705)($1,521)($1,332)EBITDA($789)($2,689)($2,536)($2,378)($2,217)($2,053)($1,884)($1,712)($1,536)($1,355)($1,171)($982) Interest Expense$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0  Taxes Incurred$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Profit($789)($2,689)($2,536)($2,378)($2,217)($2,053)($1,884)($1,712)($1,536)($1,705)($1,521)($1,332)Net Profit/Sales-6.31% -21.09% -19.50% -17.93% -16.39% -14.87% -13.39% -11.92% -10.48% -11.41% -9.98% -8.57% 

Table: Cash Flow

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 12Cash ReceivedCash from OperationsCash Sales$12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 $15,542 Subtotal Cash from Operations$12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 $15,542 Additional Cash ReceivedSales Tax, VAT, HST/GST Received0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 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 $500,000 $0 $0 $0 Subtotal Cash Received$12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $514,646 $14,939 $15,237 $15,542 Table: Cash Flow (continued)

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Expenditures from OperationsCash Spending$5,875 $5,875 $5,919 $5,963 $6,008 $6,053 $6,098 $6,144 $6,191 $6,237 $6,285 $6,333 Bill Payments$164 $4,998 $7,486 $9,577 $9,708 $9,769 $9,830 $9,893 $9,957 $10,022 $10,088 $10,155 Subtotal Spent on Operations$6,039 $10,873 $13,405 $15,540 $15,716 $15,821 $15,928 $16,037 $16,147 $16,259 $16,373 $16,488 Additional Cash SpentSales Tax, VAT, HST/GST Paid Out$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 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 $0 $0 $0 $0 $0 $0 $0 Purchase Long-term Assets$0 $0 $0 $0 $0 $0 $0 $0 $0 $95,000 $0 $0 Dividends$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Spent$6,039 $10,873 $13,405 $15,540 $15,716 $15,821 $15,928 $16,037 $16,147 $111,259 $16,373 $16,488 Net Cash Flow$6,461 $1,877 ($400)($2,275)($2,186)($2,020)($1,851)($1,678)$498,498 ($96,321)($1,135)($946)Cash Balance$18,461 $20,339 $19,939 $17,664 $15,478 $13,458 $11,607 $9,928 $508,427 $412,106 $410,971 $410,025 

Table: Balance Sheet

Pro Forma Balance Sheet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12AssetsStarting BalancesCurrent AssetsCash$12,000 $18,461 $20,339 $19,939 $17,664 $15,478 $13,458 $11,607 $9,928 $508,427 $412,106 $410,971 $410,025 Inventory$6,000 $3,500 $1,350 $1,301 $1,327 $1,353 $1,380 $1,408 $1,436 $1,465 $1,494 $1,524 $1,554 Other Current Assets$4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 Total Current Assets$22,200 $26,161 $25,889 $25,439 $23,191 $21,031 $19,038 $17,214 $15,564 $514,091 $417,800 $416,695 $415,779 Long-term AssetsLong-term Assets$40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $135,000 $135,000 $135,000 Accumulated Depreciation$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $350 $700 $1,050 Total Long-term Assets$40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $134,650 $134,300 $133,950 Total Assets$62,200 $66,161 $65,889 $65,439 $63,191 $61,031 $59,038 $57,214 $55,564 $554,091 $552,450 $550,995 $549,729 Table: Balance Sheet (continued)

Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Current LiabilitiesAccounts Payable$0 $4,750 $7,167 $9,253 $9,383 $9,441 $9,501 $9,561 $9,623 $9,685 $9,749 $9,815 $9,881 Current Borrowing$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Current Liabilities$0 $4,750 $7,167 $9,253 $9,383 $9,441 $9,501 $9,561 $9,623 $9,685 $9,749 $9,815 $9,881 Long-term Liabilities$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Liabilities$0 $4,750 $7,167 $9,253 $9,383 $9,441 $9,501 $9,561 $9,623 $9,685 $9,749 $9,815 $9,881 Paid-in Capital$69,950 $69,950 $69,950 $69,950 $69,950 $69,950 $69,950 $69,950 $69,950 $569,950 $569,950 $569,950 $569,950 Retained Earnings($7,750)($7,750)($7,750)($7,750)($7,750)($7,750)($7,750)($7,750)($7,750)($7,750)($7,750)($7,750)($7,750)Earnings$0 ($789)($3,479)($6,014)($8,392)($10,610)($12,662)($14,547)($16,259)($17,794)($19,499)($21,020)($22,352)Total Capital$62,200 $61,411 $58,722 $56,186 $53,808 $51,590 $49,538 $47,653 $45,941 $544,406 $542,701 $541,180 $539,848 Total Liabilities and Capital$62,200 $66,161 $65,889 $65,439 $63,191 $61,031 $59,038 $57,214 $55,564 $554,091 $552,450 $550,995 $549,729 Net Worth$62,200 $61,411 $58,722 $56,186 $53,808 $51,590 $49,538 $47,653 $45,941 $544,406 $542,701 $541,180 $539,848 

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