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Table of Contents

1.0 Executive Summary.....................................................................................................................1

Chart: Highlights...........................................................................................................................1
1.1 Mission...........................................................................................................................................1
1.2 Keys to Success.........................................................................................................................2
1.3 Objectives....................................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Start-up Summary....................................................................................................................2
Table: Start-up Funding..............................................................................................................2
Chart: Start-up..............................................................................................................................3
Table: Start-up...............................................................................................................................3
2.2 Company Ownership................................................................................................................4
3.0 Products and Services.................................................................................................................4
4.0 Market Analysis Summary.........................................................................................................4
4.1 Market Segmentation..............................................................................................................5
Table: Market Analysis................................................................................................................5
Chart: Market Analysis (Pie).....................................................................................................5
5.0 Strategy and Implementation Summary.............................................................................5
5.1 Competitive Edge......................................................................................................................5
5.2 Sales Strategy............................................................................................................................6
5.2.1 Sales Forecast....................................................................................................................6
Chart: Sales Monthly...............................................................................................................7
Chart: Sales by Year................................................................................................................7
Table: Sales Forecast...............................................................................................................7
6.0 Management Summary...............................................................................................................8
6.1 Personnel Plan............................................................................................................................8
Table: Personnel............................................................................................................................8
7.0 Financial Plan..................................................................................................................................9
7.0 Financial Plan..................................................................................................................................9
7.1 Important Assumptions..........................................................................................................9
Table: General Assumptions.....................................................................................................9
7.2 Break-even Analysis...............................................................................................................10
7.2 Break-even Analysis...............................................................................................................10
Table: Break-even Analysis.....................................................................................................10
Chart: Break-even Analysis....................................................................................................10
7.3 Projected Profit and Loss......................................................................................................11
Chart: Profit Monthly.................................................................................................................11
Chart: Profit Yearly.....................................................................................................................11
Table: Profit and Loss................................................................................................................12
Chart: Gross Margin Monthly.................................................................................................12
7.4 Projected Cash Flow...............................................................................................................13
Chart: Cash...................................................................................................................................13
Table: Cash Flow.........................................................................................................................13
7.5 Projected Balance Sheet......................................................................................................15
7.5 Projected Balance Sheet......................................................................................................15
Page 1

Table of Contents

Table: Balance Sheet.................................................................................................................15

7.6 Business Ratios........................................................................................................................16
7.6 Business Ratios........................................................................................................................16
Table: Ratios.................................................................................................................................16
Table: Sales Forecast...........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: General Assumptions.............................................................................................................3
Table: General Assumptions.............................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Table: Profit and Loss..........................................................................................................................4
Table: Cash Flow...................................................................................................................................5
Table: Cash Flow...................................................................................................................................5
Table: Balance Sheet...........................................................................................................................7
Table: Balance Sheet...........................................................................................................................7

Page 2

The Spot

1.0 Executive Summary

The Spot is a new night club that will focus on attracting the students of South Delhi University,
with a student population that exceeds 100,000 and growing by 15% each year. The night
club will be located one block away from the main campus. The area already has three bars that
have been thriving for the past 10 years. Each establishment has long lines waiting for entry
each weekend. Recently, commercial space has become available next to the campus when two
adjacent business relocated. The Spot will consolidate this space into a 5,000 square foot night
club. The location is on the main street most often used by students.
Once opened, the Spot will have the exceptional management team to guide its success. The
Spot's three owners, Satish Chauhan, Neeraj Sajwan, and Nisha Rawat, have over 25 years of
night club management experience between them. Robert has been the manager of Tom's
Landing, the most popular bar in the university area, for the past five years. Satish and Nisha
are co-owners of Olympus, a popular downtown night club that has dominated the city's club
scene for the past four years.

Chart: Highlights

1.1 Mission
It's not the lights; it's not the liquor; and it's not the sound. It's the people!
And its the FUN! Successful nightclubs are based on an accurate understanding of the
core customers. The mission of the Spot is to create a nightclub environment that satisfies the
changing tastes and expectations of our core customers; i.e. college-age women. If the women
come, the men will follow. In order to achieve this goal, we must constantly improve our
response to the customers' entertainment needs.

Page 1

The Spot

1.2 Keys to Success

Provide exceptional service that leaves an impression with our core customers.
Consistent entertainment atmosphere and product quality.
Managing our internal finances and cash flow to enable upward capital growth.
Strict control of all costs, at all times, without exception.

1.3 Objectives

Capitalize on excellent location opportunity.

Launch the venue with a highly publicized grand opening event in the spring of Year 1.
Maintain tight control of costs, operations, and cash flow through diligent management and
automated computer control.
Maintain food costs below 33% of food revenue.
Maintain total beverage costs below 25% of beverage revenue.
Exceed $1 million in annual sales by the third year of plan implementation.

2.0 Company Summary

The key elements of The Spot are:
1. Focus on attracting college-age women. The company will focus on design and musical
themes that have mass appeal to college-age women.
2. Location. One of the major advantages that the Spot will have over its competition will be
its location next to the university campus.
3. Exceptional service. In order to reach and maintain a unique image of quality, the Spot
will provide attentive and friendly service.

Page 2

The Spot

2.1 Start-up Summary

The Spot has three owners, Satish Chauhan, Neeraj Sajwan, and Nisha Rawat, who will each
invest $70,000.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$112,500
$97,500
$210,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$20,000
$77,500
$0
$77,500
$97,500

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$0
$0
$0
$0

Capital
Planned Investment
Satish Chauhan
Neeraj Sajwan
Nisha Rawat
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

Total Capital and Liabilities

Total Funding

$70,000
$70,000
$70,000
$0
$0
$210,000
($112,500)
$97,500

$97,500
$210,000

Page 3

The Spot

Chart: Start-up

Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Consultants
Insurance
Rent
Research and Development
Interior Refit
Expensed Equipment
Air Cond. Upgrade
Audio/Lighting
Bar Equipment/Supply
Fees and Permits
Bathroom Upgrades
Initial Marketing
Opening Salaries Deposits
Other
Total Start-up Expenses

$2,000
$500
$0
$1,000
$4,000
$0
$30,000
$20,000
$5,000
$10,000
$10,000
$7,000
$5,000
$3,000
$15,000
$0
$112,500

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

$77,500
$0
$0
$20,000
$97,500

Total Requirements

$210,000

Page 4

The Spot

2.2 Company Ownership

The Spot has three owners, Satish Chauhan, Neeraj Sajwan, and Nisha Rawat.
Satish Chauhan has a BS in business administration from State University. He successfully
managed three bars over the past 10 years. He is currently in his fifth year as manager of
Tom's Landing, the most popular bar in the university area.
Neeraj Sajwan holds a BA in marketing. She has held a marketing positions with Nike and Sony
before starting the Olympus nightclub with Nisha Rawat in 1996.
Nisha Rawat has a BS in business administration. Before co-owning the Olympus, Sheila
managed two successful nightclubs, the Arena and the Power Plant, over a 10 year period.
3.0 Products and Services
The Spot represents a unique opportunity create a high energy, dance-theme venue that will
cater to college-age women. The development's central location, demographics, and lack of
direct competition are major advantages to this project. The new venue will specialize in highenergy themes and will offer beer, wine and an array of liquors and mixed drinks. In addition,
the venue will sell nonalcoholic beverages such as soft drinks, juices and bottled water. A
"casual" food menu consisting mostly of appetizers and small entrees ranging in cost from six to
nine dollars will also be available. The initial hours of operation will be 6:00 P.M. to 2:00 A.M.,
four nights a week. The establishment will draw primarily from the student population at State
University while attracting guests and visitors from outside the area as well.
4.0 Market Analysis Summary
The Spot will focus on college-age women who are looking for a high energy, fun nightclub
environment to socialize and dance. Of course, we are also focused on college-age men but it
has been our observation that the club scene is driven by where women choose to spend their
money when they go out with friends. At present, none of the local bars create an environment
that is responsive to the entertainment demands of this core customer group. This also
extends to the areas surrounding the university that we expect will attract new customers to
the Spot.
4.1 Market Segmentation
Our target market segmentation is divided between college-age women and men in and around
the State University.
Table: Market Analysis
Market Analysis
Potential Customers

Growth

College-age Women
College-age Men
Other
Total

15%
10%
0%
12.70%

Year 1

Year 2

Year 3

Year 4

Year 5

22,000
20,000
0
42,000

25,300
22,000
0
47,300

29,095
24,200
0
53,295

33,459
26,620
0
60,079

38,478
29,282
0
67,760

CAGR
15.00%
10.00%
0.00%
12.70%

Page 5

The Spot

Chart: Market Analysis (Pie)

5.0 Strategy and Implementation Summary

Our strategy is simple, we intend to succeed by giving our core customers (college-age
women) exactly what they want in a nightclub.
5.1 Competitive Edge
There are three elements to The Spot's competitive edge.
The first is the location which is in easy walking distance for the entire university community.
The area around The Spot is already a regular place students gather to socialize in the evening.
The second is the exceptional management team that has extensive experience and success
managing nightclubs and bars.
The third is our focus on attracting our core customer in every aspect of our planning. The Spot
will have the following to attract and retain our core customers:

A larger ladies room area. Beyond its traditional uses, it's also a place of social gathering
and conversation. As a result, we will add additional square footage to this part of the venue
including a couch, TV, music, and plenty of social space.

Floor design. No doubt, females are more observant of design, and the impression it
conveys, than males are. Therefore, careful consideration will be put into everything from
colors, to fabrics, and materials.

Music. This is a critical one. We will hire DJs who have the best satisfaction rate with the
female clientele.

Page 6

The Spot

5.2 Sales Strategy

There will be a grand opening weekend March of 2002, which the cover charge will be waved for
all women customers. We will then establish a traditional Ladies Night, every wednesday.
The cover charge will be $10. This is cheaper than the downtown clubs.
Our sales strategy is to open earlier and provide entertainment to bring in an early crowd
before 10 P.M. Comedians and Comedy Acts will be booked into the early evening time slot.
We will also have contests sponsored by businesses and products that are marketing to our
core customers.
5.2.1 Sales Forecast
As the following table shows, we intend to deliver sales of $550K in the first year, and double
that by the third year of the plan.
Chart: Sales Monthly

Page 7

The Spot

Chart: Sales by Year

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

19,500
56,000
14,000
13,600
103,100

36,000
68,000
25,000
17,000
146,000

42,000
75,000
33,000
22,000
172,000

Year 1
$10.00
$3.00
$7.00
$8.00

Year 2
$10.00
$3.00
$7.00
$8.00

Year 3
$10.00
$3.00
$7.00
$8.00

$195,000
$168,000
$98,000
$108,800
$569,800

$360,000
$204,000
$175,000
$136,000
$875,000

$420,000
$225,000
$231,000
$176,000
$1,052,000

Year 1
$0.00
$0.75
$2.45
$4.00

Year 2
$0.00
$0.80
$2.62
$4.28

Year 3
$0.00
$0.86
$2.81
$4.58

$0
$42,000
$34,300
$54,400
$130,700

$0
$54,570
$65,538
$72,760
$192,868

$0
$64,401
$92,565
$100,751
$257,717

Unit Sales
Cover
Drinks
Food
Entertainment
Total Unit Sales
Unit Prices
Cover
Drinks
Food
Entertainment
Sales
Cover
Drinks
Food
Entertainment
Total Sales
Direct Unit Costs
Cover
Drinks
Food
Entertainment
Direct Cost of Sales
Cover
Drinks
Food
Entertainment
Subtotal Direct Cost of Sales

Page 8

The Spot

6.0 Management Summary

The management team is a strong one. Together we share a single vision: to provide a unique
and entertaining experience through exceptional service.
6.1 Personnel Plan
The following table shows forecasted personnel needs for the first three years.
Table: Personnel
Personnel Plan
Year 1

Year 2

Year 3

Manager
Bartenders
Cooks
Cleaning
DJ
Serving Staff
Other
Total People

$50,000
$120,000
$65,000
$38,000
$25,000
$50,000
$0
0

$68,000
$120,000
$70,000
$40,000
$30,000
$60,000
$0
12

$72,000
$120,000
$73,000
$42,000
$35,000
$70,000
$0
12

Total Payroll

$348,000

$388,000

$412,000

7.0 Financial Plan

The financial projections for this plan are presented in the tables and charts of the following
subtopics.
7.1 Important Assumptions
The table below presents the assumptions used in the financial calculations of this business
plan.
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1

Year 2

Year 3

1
10.00%
10.00%
0.00%
0

2
10.00%
10.00%
30.00%
0

3
10.00%
10.00%
30.00%
0

Page 9

The Spot

7.2 Break-even Analysis

Our Break-even Analsysis is shown in the following table and chart.
Table: Break-even Analysis
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even

10,220
$56,482

Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost

$5.53
$1.27
$43,527

Chart: Break-even Analysis

Page 10

The Spot

7.3 Projected Profit and Loss

The following table and chart will show the projected profit and loss for The Spot.
Chart: Profit Monthly

Chart: Profit Yearly

Page 11

The Spot

Table: Profit and Loss

Pro Forma Profit and Loss
Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

$569,800
$130,700
$0
$130,700

$875,000
$192,868
$0
$192,868

$1,052,000
$257,717
$0
$257,717

Gross Margin
Gross Margin %

$439,100
77.06%

$682,133
77.96%

$794,283
75.50%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

$348,000
$22,900
$2,618
$33,000
$3,600
$12,000
$48,000
$52,200
$0

$388,000
$25,000
$2,856
$40,000
$3,600
$12,000
$40,000
$58,200
$0

$412,000
$27,300
$2,856
$40,000
$3,600
$12,000
$40,000
$61,800
$0

Total Operating Expenses

$522,318

$569,656

$599,556

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

($83,218)
($80,600)
$42
$0

$112,477
$115,333
$250
$33,668

$194,727
$197,583
$0
$58,418

Net Profit
Net Profit/Sales

($83,260)
-14.61%

$78,559
8.98%

$136,309
12.96%

Expenses

Chart: Gross Margin Monthly

Page 12

The Spot

7.4 Projected Cash Flow

The following table and chart are the projected cash flow for three years.
Table: Cash Flow
Pro Forma Cash Flow
Year 1

Year 2

Year 3

$512,820
$45,082
$557,902

$787,500
$81,127
$868,627

$946,800
$101,504
$1,048,304

$0
$5,000
$0
$0
$0
$0
$0
$562,902

$0
$0
$0
$0
$0
$0
$0
$868,627

$0
$0
$0
$0
$0
$0
$0
$1,048,304

Year 1

Year 2

Year 3

$348,000
$289,115
$637,115

$388,000
$410,803
$798,803

$412,000
$498,897
$910,897

Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$0
$0
$0
$0
$0
$0
$637,115

$0
$5,000
$0
$0
$0
$0
$0
$803,803

$0
$0
$0
$0
$0
$0
$0
$910,897

Net Cash Flow

Cash Balance

($74,213)
$3,287

$64,824
$68,111

$137,407
$205,518

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Page 13

The Spot

Chart: Cash

Page 14

The Spot

7.5 Projected Balance Sheet

The following is the projected balance sheet for the three years.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1

Year 2

Year 3

$3,287
$11,898
$15,593
$0
$30,778

$68,111
$18,271
$26,089
$0
$112,471

$205,518
$21,967
$31,567
$0
$259,053

$20,000
$2,618
$17,382
$48,160

$20,000
$5,474
$14,526
$126,997

$20,000
$8,330
$11,670
$270,723

Year 1

Year 2

Year 3

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$28,919
$5,000
$0
$33,919

$34,198
$0
$0
$34,198

$41,615
$0
$0
$41,615

Long-term Liabilities
Total Liabilities

$0
$33,919

$0
$34,198

$0
$41,615

$210,000
($112,500)
($83,260)
$14,240
$48,160

$210,000
($195,760)
$78,559
$92,799
$126,997

$210,000
($117,201)
$136,309
$229,108
$270,723

$14,240

$92,799

$229,108

Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

7.6 Business Ratios

The Ratios table below outlines important ratios for this night club. The last column, Industry
Profile, is derived from the Standard Industrial Classification (SIC) Index code 5813, for
Drinking Places.

Page 15

The Spot

Table: Ratios
Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

53.56%

20.23%

1.90%

Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

24.71%
32.38%
0.00%
63.91%
36.09%
100.00%

14.39%
20.54%
0.00%
88.56%
11.44%
100.00%

8.11%
11.66%
0.00%
95.69%
4.31%
100.00%

4.60%
3.10%
44.60%
52.30%
47.70%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

70.43%
0.00%
70.43%
29.57%

26.93%
0.00%
26.93%
73.07%

15.37%
0.00%
15.37%
84.63%

28.20%
23.10%
51.30%
48.70%

100.00%
77.06%
91.67%
3.86%
-14.60%

100.00%
77.96%
68.98%
2.74%
12.85%

100.00%
75.50%
62.55%
2.47%
18.51%

100.00%
42.30%
23.40%
2.40%
2.80%

0.91
0.45
70.43%
-584.67%
-172.88%

3.29
2.53
26.93%
120.94%
88.37%

6.23
5.47
15.37%
84.99%
71.93%

1.14
0.74
51.30%
5.20%
10.60%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

-14.61%
-584.67%

8.98%
84.65%

12.96%
59.50%

n.a
n.a

4.79
57
10.91
11.00
27
11.83

4.79
63
9.25
12.17
28
6.89

4.79
70
8.94
12.17
27
3.89

n.a
n.a
n.a
n.a
n.a
n.a

2.38
1.00

0.37
1.00

0.18
1.00

n.a
n.a

($3,142)
-1,997.23

$78,273
449.91

$217,438
0.00

n.a
n.a

0.08
70%
0.10
40.01
0.00

0.15
27%
1.99
9.43
0.00

0.26
15%
4.94
4.59
0.00

n.a
n.a
n.a
n.a
n.a

Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 16

Appendix
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 12

0
0
0
0
0

0
0
0
0
0

1,500
4,000
1,000
800
7,300

2,000
5,000
1,500
1,500
10,000

2,000
5,000
1,500
1,500
10,000

2,000
6,000
2,000
1,800
11,800

2,000
6,000
1,000
1,000
10,000

2,000
6,000
1,000
1,000
10,000

2,000
6,000
1,500
1,500
11,000

2,000
6,000
1,500
1,500
11,000

2,000
6,000
1,500
1,500
11,000

2,000
6,000
1,500
1,500
11,000

Unit Sales
Cover
Drinks
Food
Entertainment
Total Unit Sales

0%
0%
0%
0%

Unit Prices

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cover

$0.00

$0.00

$10.00

$10.00

$10.00

$10.00

$10.00

$10.00

$10.00

$10.00

$10.00

$10.00

Drinks

$0.00

$0.00

$3.00

$3.00

$3.00

$3.00

$3.00

$3.00

$3.00

$3.00

$3.00

$3.00

Food

$0.00

$0.00

$7.00

$7.00

$7.00

$7.00

$7.00

$7.00

$7.00

$7.00

$7.00

$7.00

Entertainment

$0.00

$0.00

$8.00

$8.00

$8.00

$8.00

$8.00

$8.00

$8.00

$8.00

$8.00

$8.00

Cover

$0

$0

$15,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

Drinks

$0

$0

$12,000

$15,000

$15,000

$18,000

$18,000

$18,000

$18,000

$18,000

$18,000

$18,000

Food

$0

$0

$7,000

$10,500

$10,500

$14,000

$7,000

$7,000

$10,500

$10,500

$10,500

$10,500

Entertainment

$0

$0

$6,400

$12,000

$12,000

$14,400

$8,000

$8,000

$12,000

$12,000

$12,000

$12,000

Total Sales

$0

$0

$40,400

$57,500

$57,500

$66,400

$53,000

$53,000

$60,500

$60,500

$60,500

$60,500

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0.00
$0.00
$0.00
$0.00

$0.00
$0.00
$0.00
$0.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

$0.00
$0.75
$2.45
$4.00

Cover

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Drinks

$0

$0

$3,000

$3,750

$3,750

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

$4,500

Food

$0

$0

$2,450

$3,675

$3,675

$4,900

$2,450

$2,450

$3,675

$3,675

$3,675

$3,675

Entertainment

$0

$0

$3,200

$6,000

$6,000

$7,200

$4,000

$4,000

$6,000

$6,000

$6,000

$6,000

Subtotal Direct Cost of Sales

$0

$0

$8,650

$13,425

$13,425

$16,600

$10,950

$10,950

$14,175

$14,175

$14,175

$14,175

Sales

Direct Unit Costs

Cover
Drinks
Food
Entertainment

0.00%
0.00%
0.00%
0.00%

Direct Cost of Sales

Page 1

Appendix
Table: Personnel

Personnel Plan
Manager
Bartenders
Cooks
Cleaning
DJ
Serving Staff
Other
Total People
Total Payroll

0%
0%
0%
0%
0%
0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0
$0
$0
$8,000
$0
$0
$0
12

$0
$0
$0
$0
$0
$0
$0
12

$5,000
$12,000
$5,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$5,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$5,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$5,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$5,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$8,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$8,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$8,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$8,000
$3,000
$2,500
$5,000
$0
0

$5,000
$12,000
$8,000
$3,000
$2,500
$5,000
$0
0

$8,000

$0

$32,500

$32,500

$32,500

$32,500

$32,500

$35,500

$35,500

$35,500

$35,500

$35,500

Page 2

Appendix
Table: General Assumptions

General Assumptions
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Plan Month

Other

Month 12

Page 3

Appendix
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 12

Sales

$0

$0

$40,400

$57,500

$57,500

$66,400

$53,000

$53,000

$60,500

$60,500

$60,500

$60,500

Direct Cost of Sales

$0

$0

$8,650

$13,425

$13,425

$16,600

$10,950

$10,950

$14,175

$14,175

$14,175

$14,175

Other Production Expenses

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$0

$0

$8,650

$13,425

$13,425

$16,600

$10,950

$10,950

$14,175

$14,175

$14,175

$14,175

$0

$0

$31,750

$44,075

$44,075

$49,800

$42,050

$42,050

$46,325

$46,325

$46,325

$46,325

0.00%

0.00%

78.59%

76.65%

76.65%

75.00%

79.34%

79.34%

76.57%

76.57%

76.57%

76.57%

$8,000

$0

$32,500

$32,500

$32,500

$32,500

$32,500

$35,500

$35,500

$35,500

$35,500

$35,500

$75

$2,075

$2,075

$2,075

$2,075

$2,075

$2,075

$2,075

$2,075

$2,075

$2,075

$2,075

Gross Margin
Gross Margin %

Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Leased Equipment
Utilities

$0

$238

$238

$238

$238

$238

$238

$238

$238

$238

$238

$238

$0

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$300

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$1,200
$0

$0
$0

$4,875
$0

$4,875
$0

$4,875
$0

$4,875
$0

$4,875
$0

$5,325
$0

$5,325
$0

$5,325
$0

$5,325
$0

$5,325
$0

$14,575

$10,613

$47,988

$47,988

$47,988

$47,988

$47,988

$51,438

$51,438

$51,438

$51,438

$51,438

Profit Before Interest and Taxes

($14,575)

($10,613)

($16,238)

($3,913)

($3,913)

$1,812

($5,938)

($9,388)

($5,113)

($5,113)

($5,113)

($5,113)

EBITDA

($14,575)

($10,375)

($16,000)

($3,675)

($3,675)

$2,050

($5,700)

($9,150)

($4,875)

($4,875)

($4,875)

($4,875)

Interest Expense

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$42

Taxes Incurred

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

($14,575)

($10,613)

($16,238)

($3,913)

($3,913)

$1,812

($5,938)

($9,388)

($5,113)

($5,113)

($5,113)

($5,155)

0.00%

0.00%

-40.19%

-6.81%

-6.81%

2.73%

-11.20%

-17.71%

-8.45%

-8.45%

-8.45%

-8.52%

Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses

Net Profit
Net Profit/Sales

15%

Page 4

Appendix
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 12

Cash Sales

$0

$0

$36,360

$51,750

$51,750

$59,760

$47,700

$47,700

$54,450

$54,450

$54,450

$54,450

Cash from Receivables

$0

$0

$0

$135

$4,097

$5,750

$5,780

$6,595

$5,300

$5,325

$6,050

$6,050

Subtotal Cash from Operations

$0

$0

$36,360

$51,885

$55,847

$65,510

$53,480

$54,295

$59,750

$59,775

$60,500

$60,500

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$5,000

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

$0

$0

$36,360

$51,885

$55,847

$65,510

$53,480

$54,295

$59,750

$59,775

$60,500

$65,500

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$8,000

$0

$32,500

$32,500

$32,500

$32,500

$32,500

$35,500

$35,500

$35,500

$35,500

$35,500

$219

$6,702

$11,143

$33,432

$33,752

$28,897

$34,831

$20,207

$26,876

$33,304

$29,875

$29,876

$8,219

$6,702

$43,643

$65,932

$66,252

$61,397

$67,331

$55,707

$62,376

$68,804

$65,375

$65,376

Sales 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

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$8,219

$6,702

$43,643

$65,932

$66,252

$61,397

$67,331

$55,707

$62,376

$68,804

$65,375

$65,376

Net Cash Flow

($8,219)

($6,702)

($7,283)

($14,047)

($10,405)

$4,113

($13,851)

($1,412)

($2,626)

($9,029)

($4,875)

$124

Cash Balance

$69,281

$62,579

$55,296

$41,249

$30,843

$34,956

$21,105

$19,693

$17,068

$8,038

$3,163

$3,287

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

Expenditures

0.00%

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Subtotal Cash Spent

Page 5

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$77,500
$0
$0
$0
$77,500

$69,281
$0
$0
$0
$69,281

$62,579
$0
$0
$0
$62,579

$55,296
$4,040
$9,515
$0
$68,851

$41,249
$9,655
$14,768
$0
$65,672

$30,843
$11,308
$14,768
$0
$56,919

$34,956
$12,198
$18,260
$0
$65,414

$21,105
$11,719
$12,045
$0
$44,869

$19,693
$10,423
$12,045
$0
$42,162

$17,068
$11,173
$15,593
$0
$43,833

$8,038
$11,898
$15,593
$0
$35,529

$3,163
$11,898
$15,593
$0
$30,654

$3,287
$11,898
$15,593
$0
$30,778

$20,000
$0
$20,000
$97,500

$20,000
$0
$20,000
$89,281

$20,000
$238
$19,762
$82,341

$20,000
$476
$19,524
$88,375

$20,000
$714
$19,286
$84,958

$20,000
$952
$19,048
$75,967

$20,000
$1,190
$18,810
$84,224

$20,000
$1,428
$18,572
$63,441

$20,000
$1,666
$18,334
$60,496

$20,000
$1,904
$18,096
$61,929

$20,000
$2,142
$17,858
$53,387

$20,000
$2,380
$17,620
$48,274

$20,000
$2,618
$17,382
$48,160

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0
$0

$6,356
$0
$0
$6,356

$10,029
$0
$0
$10,029

$32,301
$0
$0
$32,301

$32,797
$0
$0
$32,797

$27,719
$0
$0
$27,719

$34,164
$0
$0
$34,164

$19,319
$0
$0
$19,319

$25,762
$0
$0
$25,762

$32,308
$0
$0
$32,308

$28,879
$0
$0
$28,879

$28,879
$0
$0
$28,879

$28,919
$5,000
$0
$33,919

Long-term Liabilities
Total Liabilities

$0
$0

$0
$6,356

$0
$10,029

$0
$32,301

$0
$32,797

$0
$27,719

$0
$34,164

$0
$19,319

$0
$25,762

$0
$32,308

$0
$28,879

$0
$28,879

$0
$33,919

$210,000
($112,500)
$0
$97,500
$97,500

$210,000
($112,500)
($14,575)
$82,925
$89,281

$210,000
($112,500)
($25,188)
$72,312
$82,341

$210,000
($112,500)
($41,426)
$56,074
$88,375

$210,000
($112,500)
($45,339)
$52,161
$84,958

$210,000
($112,500)
($49,252)
$48,248
$75,967

$210,000
($112,500)
($47,440)
$50,060
$84,224

$210,000
($112,500)
($53,378)
$44,122
$63,441

$210,000
($112,500)
($62,766)
$34,734
$60,496

$210,000
($112,500)
($67,879)
$29,621
$61,929

$210,000
($112,500)
($72,992)
$24,508
$53,387

$210,000
($112,500)
($78,105)
$19,395
$48,274

$210,000
($112,500)
($83,260)
$14,240
$48,160

$97,500

$82,925

$72,312

$56,074

$52,161

$48,248

$50,060

$44,122

$34,734

$29,621

$24,508

$19,395

$14,240

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

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