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Pita Pal is a new restaurant that serves fresh and healthy pita sandwiches. Strategically located in downtown Washington, PA, Pita Pal will quickly become the premier lunch
destination downtown, serving locals and students. Pita Pal will attract 35% new customers a year after the second year and will reach profitability by the end of year two.

Pal %35 ΩΪΟ ˯ϼϤϋ ΏάΟ .Ώϼτϟ΍ϭ ϦϴϴϠΤϤϟ΍ ϥΎϜδϟ΍ ϡΪΨΗ ˯΍έίϮϟ΍ βϴ΋έ ˯΍Ϊϐϟ΍ ΔϬΟϮϟ΍ ςγϭ ΔϋήδΑ ΢ΒμΗ ϑϮγ "ΎΘϴΑ ϝΎΑ" ˬΔϴϨϴτδϠϔϟ΍ ΔτϠδϟ΍ ˬϦτϨη΍ϭ ΔϨϳΪϣ ςγϭ ϲϓ ϲΠϴΗ΍ήΘγ΍ ϊϗϮϣ .ΔϴΤλϭ ΍˱ΪϳΪΟ ΎΘϴΑ ή΋Ύτη ϡΪΨϳ ΪϳΪΟ Ϣότϣ Ϯϫ ΎΘϴΑ
ΔϴϧΎΜϟ΍ ΔϨδϟ΍ ΔϳΎϬϧ ϲϓ ΔϴΤΑήϟ΍ ϰϟ· ϞμΘγϭ ΎΘϴΑ ϝΎΑ ΔϴϧΎΜϟ΍ ΔϨδϟ΍ ΪόΑ Ύ˱ ϳϮϨγ.



Pita Pal has identified three keys that will be instrumental in its success. The first is the design and implementation of strict financial controls, which will be important, since the
restaurant industry is quite competitive. The second requirement is that it offers high-quality fresh and healthy food to clearly stand out from the competition. The last key is
the need to ensure proper visibility. Pita Pal must have a effective, targeted marketing campaign to support the opening of the store in order to ensure enough business.

Ϧϣ ΡϮοϮΑ ίήΒΘϟ ΓΩϮΠϟ΍ ΔϴϟΎϋ ΔϴΤλϭ ΔΟίΎτϟ΍ ΔϳάϏϷ΍ ήϓϮϳ ϥ΃ ϲϧΎΜϟ΍ ΐϠτϤϟ΍ϭ .΍˱ΪΟ ΔϴδϓΎϨΗ ϢϋΎτϤϟ΍ ΔϋΎϨλ ϥϷ ΍˱ήψϧ ˬϢϬϤϟ΍ Ϧϣ ϥϮϜϴγ ˬΔϣέΎλ ΔϴϟΎϣ ςΑ΍Ϯο άϴϔϨΗϭ ϢϴϤμΗ Ϯϫ ϝϭϷ΍ .ΎϬΣΎΠϧ ϲϓ ΓΪϴϔϣ ϥϮϜΘγ ΢ϴΗΎϔϣ ΔΛϼΛ ΎΘϴΑ ϝΎΑ ΕΩΪΣ Ϊϗϭ
ΔϳέΎΠΘϟ΍ ϝΎϤϋϷ΍ Ϧϣ ϲϔϜϳ Ύϣ ϥΎϤπϟ ϥΰΨϤϟ΍ ΢Θϓ ϢϋΪϟ ΔϓΩΎϫϭ ΔϟΎόϓ ΔϴϘϳϮδΗ ΔϠϤΤϟ ΎΘϴΑ ϝΎΑ ϥϮϜϳ ϥ΃ ΐΠϳ .ΔΤϴΤμϟ΍ Δϳ΅ήϟ΍ ΡϮοϭ ϥΎϤο ϰϟ· ΔΟΎΤϟ΍ Ϯϫ ήΧ΁ ΡΎΘϔϣ .ΔδϓΎϨϤϟ΍.


Pita Pal will offer the community an exciting menu of pita sandwiches, salads, deserts and coffee beverages. Pita bread, Middle Eastern flat bread, is used as a healthy, tasty
foundation for a variety of sandwiches. The customers will have the choice of Middle Eastern filling such as Hummus and Tabouli or more traditional American filling.

κϤΤϟ΍ ϞΜϣ ςγϭϷ΍ ϕήθϟ΍ ˯Ϟϣ έΎϴΘΧ΍ ˯ϼϤόϟ΍ ϥϮϜϴγϭ .ή΋Ύτη Ϧϣ ΔϋϮϨΘϣ ΔϋϮϤΠϤϟ άϳάϟ ˬΔϴΤλ ΔδγΆϤϛ ˬςγϭϷ΍ ϕήθϟ΍ ΔΤτδϣ ΰΒΨϟ΍ϭ ˬΰΒΨϟ΍ ΎΘϴΑ .ΓϮϬϘϟ΍ ΕΎΑϭήθϤϟ΍ϭ ϱέΎΤμϟ΍ϭ ˬΔτϠδϟ΍ϭ ˬΎΘϴΑ ή΋Ύτη ΓήϴΜϣ ΔϤ΋Ύϗ ϊϤΘΠϤϠϟ ΢ϴΘϴγ ΎΘϴΑ ϝΎΑ
ΔϳΪϴϠϘΗ ήΜϛϷ΍ ΔϴϜϳήϣϷ΍ Ϟϐη ϭ΃ ϲϟϮΑΎΗϭ.






Pita Pal will be lead by Steve Jones, a veteran of the restaurant industry. Steve worked for his parents at the family's restaurant for several years before moving on to work in
one of Washington's finest restaurants while in college, as well as participating in Washington and Jefferson's Entrepreneurship Program.

Through a combination of extensive business experience, valuable academic course work, and the award of a starter loan from the school's Entrepreneurship Program, Steve
will develop a profitable niche lunch restaurant. Sales for year two and three are $145,299 and $203,676 respectively. Profitability will be reached by the end of year two.

ϢϴψϨΗ ΞϣΎϧήΑϭ ϦτϨη΍ϭ ϲϓ ΔϛέΎθϤϟ΍ Ϛϟάϛϭ ˬΔϴϠϜϟ΍ ϲϓ ϩΩϮΟϭ ˯ΎϨΛ΃ ϦτϨη΍Ϯϟ ΓήϴΧ ϢϋΎτϤϟ΍ ΪΣ΃ ϲϓ ϞϤόϟ΍ ϰϟ· ϞϘΘϨϳ ϥ΃ ϞΒϗ Ε΍ϮϨγ ΓΪόϟ Γήγϸϟ Ϣότϣ ϲϓ ϩ΍Ϊϟ΍ϭ ϥΎϛ ϞϤϋ ϒϴΘγ .ϢϋΎτϤϟ΍ ΔϋΎϨλ ϡήπΨϣ ΰϧϮΟ ϒϴΘγ ϩΩϮϘϳ ΎΘϴΑ ϝΎΑ ϥϮϜϴγϭ
ϥϮγήϔϴΟ ϊϳέΎθϤϟ΍.

ϰϠϋ 203,676 $ ϭ 145,299$ ϲϫ ΚϟΎΜϟ΍ϭ ϲϧΎΜϟ΍ ϡΎόϠϟ ΕΎόϴΒϤϟ΍ .Ύ˱ ΤΑήϣ ˯΍ΪϏ Ϣότϣ ϒϴΘγ ϊπΘγ ˬΔγέΪϤϟ΍ "ϊϳέΎθϤϟ΍ ϢϴψϨΗ ΞϣΎϧήΑ " Ϧϣ Ϧϴ΋ΪΘΒϤϟ΍ νήϗ ΢Ϩϣϭ ΔϤϴϘϟ΍ ΔϴϤϳΩΎϛϷ΍ ΓέϭΪϟ΍ ϝΎϤϋ΃ϭ Δόγ΍Ϯϟ΍ ΔϳέΎΠΘϟ΍ ΓήΒΨϟ΍ Ϧϣ Ξϳΰϣ ϝϼΧ Ϧϣ
ϦϴϨΛ΍ ΔϨδϟ΍ ΔϳΎϬϨΑ ΔϴΤΑήϟ΍ ϰϟ· ϞλϮΘϟ΍ ϢΘϴγ .ϲϟ΍ϮΘϟ΍.


It is Pita Pal's mission to offer the finest, healthiest and best tasting pita sandwiches in Washington, PA. Pita Pal will offer the finest customer service, no customer will leave
who is dissatisfied.

ν΍έ ήϴϏ Ϯϫ Ϧϳάϟ΍ ˯ϼϤόϟ΍ ϻ έΩΎϐϳ ϑϮγϭ ˬϰϗέ΃ ˯ϼϤόϟ΍ ΔϣΪΧ ϡΪϘΘγ ΎΘϴΑ ϝΎΑ .ΔϴϨϴτδϠϔϟ΍ ΔτϠδϟ΍ ˬϦτϨη΍ϭ ϲϓ ΎΘϴΑ ή΋Ύτη ϕϭάΗ Ϟπϓ΃ϭ ΢λ΃ϭ Ϟπϓ΃ ϢϳΪϘΘϟ "ϝΎΑ ΎΘϴΑ" ΔΜόΒϟ΍ Ϯϫ.





à Employ strict financial controls. This is extremely important in a retail food establishment.
à Offer the highest-quality lunch time fare.
à Ensure sufficient visibility. A strong marketing campaign required..
à ‡ Δ΋ΰΠΘϟΎΑ ϊϴΒϟ΍ ˯΍άϐϟ΍ ϊοϭ ϲϓ ΔϴϤϫϷ΍ ώϟΎΑ ήϣ΃ ΍άϫ .ΔϣέΎλ ΔϴϟΎϣ ςΑ΍Ϯο ϡ΍ΪΨΘγ΍.
à ¶ ΓΩϮΟ ϰϠϋ΃ ˯΍Ϊϐϟ΍ Ζϗϭ ΓήΟ΃ ϡΪϘΗ.
à ¶ ΔΑϮϠτϤϟ΍ ΔϳϮϗ ϖϳϮδΗ ΔϠϤΣ .ϲϓΎϜϟ΍ ΡϮοϮϟ΍ ϥΎϤο.



 

à To become the premier sandwich shop in downtown Washington, PA.

à To continually draw students off campus for lunch at a rate of 35% new customers per year after the second year.
à To become profitable within the first two years.
à ‡ ΔϴϨϴτδϠϔϟ΍ ΔτϠδϟ΍ ˬϦτϨη΍ϭ ΔϨϳΪϣ ςγϭ ϲϓ ϲϨϴμϟ΍ ΔϟϭΪϟ΍ βϠΠϣ βϴ΋έ ζΘϳϭΪϧΎγ ϞΤϣ ΢ΒμΗ ϥ΃.
à ¶ ΔϴϧΎΜϟ΍ ΔϨδϟ΍ ΪόΑ Ύ˱ ϳϮϨγ ΩΪΠϟ΍ ˯ϼϤόϟ΍ Ϧϣ Δ΋ΎϤϟ΍ ϲϓ 35 ΎϫέΪϗ ΔΒδϨΑ ˯΍Ϊϐϟ΍ ϡΎόσ ϝϭΎϨΘϟ ϲόϣΎΠϟ΍ ϡήΤϟ΍ ΝέΎΧ Ώϼτϟ΍ ϪϴΟϮΗ έ΍ήϤΘγ΍ ϰϟ·.
à ¶ ϦϴϴϟϭϷ΍ ϦϴΘϨδϟ΍ ϲϓ ΔΤΑήϣ ΢ΒμΗ ϥ΃.

n !



Pita Pal is a recently formed PA based L.L.C. formed by Steve Jones. The company is wholly owned by Steve. The business will be based in downtown Washington and will
serve the lunch and early evening crowd.

Pal ˯Ύδϣ ΪθΤϟ΍ϭ ˯΍Ϊϐϟ΍ ϲϓ Ϊϴϔϴγϭ ϦτϨη΍ϭ ΔϨϳΪϣ ςγϭ ϲϓ ϩήϘϣ ϥϮϜϴγ ϝΎϤϋϷ΍ .ϒϴΘγ ϞϣΎϜϟΎΑ ΔϛϮϠϤϣ Δϛήθϟ΍ . ΰϧϮΟ ϒϴΘγ ΎϬΘϠϜη ˯ΎϤϧϹ΍ αΎγ΃ ϰϠϋ ΍ήΧΆϣ ΖϠϜη ΔϴϨϴτδϠϔϟ΍ ΔτϠδϟ΍ ΎΘϴΑ.


"!
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As a start-up organization, Pita Pal will require a decent amount of equipment to begin operations. The following is a somewhat complete list of the needed equipment:

Δϣίϼϟ΍ Ε΍ΪόϤϟΎΑ Ύϣ ΪΣ ϰϟ· ΔϠϣΎϛ ΔϤ΋Ύϗ ϲϠϳ Ύϣ .ΕΎϴϠϤόϟ΍ ˯ΪΒϟ Ε΍ΪόϤϟ΍ Ϧϣ Ϣϳήϛ ώϠΒϣ "ΎΘϴΑ ϝΎΑ" ΐϠτΘϴγ ˬ˯ΪΑ ΔϤψϨϤϛ:

à Cash register;
à Computer system, including printer, CD-RW, Internet connection;
à Convection oven;
à Refrigeration unit;
à Blender/food processor;
à Assorted knives, cutting boards, serving dishes, silverware, food containers;
à Shelving units;
à Tables, chairs, table clothes and other table accessories;
à Lighting units;
à Espresso machine and coffee maker (these items are subsidized by the coffee vendor who sells the coffee/espresso beans).
à ‡ ˭ΔϳΪϘϨϟ΍ ϞϴΠδΗ
à ¶ ˭ΖϧήΘϧϹΎΑ ˬϞϴΠδΘϟ΍ ΓΩΎϋϹ ϞΑΎϗ ρϮϐπϣ ιήϗ ΔόΑΎτϟ΍ ϚϟΫ ϲϓ ΎϤΑ ˬήΗϮϴΒϤϜϟ΍ ϡΎψϧ
à ¶ ˭ϱέ΍ήΤϟ΍ ϥήϔϟ΍
à ¶ ˭ΪϳήΒΘϟ΍ ΓΪΣϭ
à ¶ ˭ΔϳάϏϸϟ ρϼΧ ΞϟΎόϤϟ΍
à ¶ ˭ΔϳάϏϷ΍ ΕΎϳϭΎΣ ˬΓΪ΋ΎϤϟ΍ Ε΍ϭΩ΃ ˬϕΎΒσϷ΍ ϡΪΨΗ ˬΔϛήΘθϤϟ΍ βϟΎΠϤϟ΍ ϦϴϛΎϜδϟ΍ ϮϠΣ
à ¶ ˭Ε΍ΪΣϮϟ΍ ϑϮϓέ
à ¶ ˭ϝϭΪΠϟ΍ ΕΎϘΤϠϤϟ΍ Ϧϣ ΎϫήϴϏϭ βΑϼϤϟ΍ ϝϭΪΠϟ΍ϭ ϲγ΍ήϛ ˬϝϭ΍ΪΠϟ΍
à ¶ ˭Γ˯ΎοϹ΍ Ε΍ΪΣϭ
à ¶ ϮγήΒγ΍/ϦΒϟ΍ ΏϮΒΣ ϊϴΒϳ ϱάϟ΍ ΓϮϬϘϟ΍ ϊ΋ΎΒΑ ΔϣϮϋΪϤϟ΍ ΩϮϨΒϟ΍ ϩάϫ) ΓϮϬϗ ΔόϧΎλϭ ϮγήΒγ΍ Δϟ΁).


"!*0123)'/*+,-.

Start-up Expenses to Fund $5,500 ϕϭΪϨμϟΎΑ ϞϤόϟ΍ ˯ΪΑ ΕΎϘϔϧ

Start-up Assets to Fund $59,500

Total Funding Required $65,000

Assets

Non-cash Assets from Start-up $25,000

Cash Requirements from Start-up $34,500

Additional Cash Raised $0

Cash Balance on Starting Date $34,500

Total Assets $59,500

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

Entrepreneurship Program Loan $40,000

Investor 2 $25,000
Additional Investment Requirement $0

Total Planned Investment $65,000

Loss at Start-up (Start-up Expenses) ($5,500)

Total Capital $59,500

Total Capital and Liabilities $59,500

Total Funding $65,000


"!

Requirements

Start-up Expenses

Legal $3,000

Stationery etc. $300

Brochures $500

Consultants $1,000

Rent $700

Total Start-up Expenses $5,500

Start-up Assets

Cash Required $34,500

Other Current Assets $0

Long-term Assets $25,000

Total Assets $59,500

Total Requirements $65,000

à 2.2 Company Ownership Δϛήθϟ΍ ΔϴϜϠϣ

à Pita Pal has been formed as a limited liability company in Pennsylvania. The L.L.C. business formation has been chosen as a way of protecting the owner from
personal liability while avoiding double taxation associated with a traditional corporation.

à ‡ ΔϳΪϴϠϘΗ ΔϛήθΑ ΔτΒΗήϤϟ΍ ϲΒϳήπϟ΍ Ν΍ϭΩίϻ΍ ΐϨΠΗ ϊϣ ΔϴμΨθϟ΍ ΔϴϟϭΆδϤϟ΍ Ϧϣ ϚϟΎϤϟ΍ ΔϳΎϤΤϟ ΔϠϴγϮϛ ˯ΎϤϧϹ΍ ΔϳέΎΠΘϟ΍ ϊϳέΎθϤϟ΍ ϦϳϮϜΗ έΎϴΘΧ΍ ϢΗ .ΎϴϧΎϔϠδϨΑ Δϳϻϭ ϲϓ ΓΩϭΪΤϣ ΔϴϟϭΆδϣ Ε΍Ϋ Δϛήθϛ ΎΘϴΑ ϝΎΑ ϞϴϜθΗ.





Pita Pal is a downtown based sandwich shop serving the lunch time hour as well as early evening, weekdays from 10-6 pm. Pita bread is chosen for several reasons: it is
unusual, healthy, and quite versatile. Each customer will have their choice of different fillings for the pita sandwiches. The range of options for fillings (not an exhaustive list)
are: tofu pate, falafel, hummus, baba ganouj, tabouli, turkey, ham, chicken, pesto, assorted vegetables and assorted cheeses. In addition to the pitas, there will be several
different salads available, both green as well as pastas, assorted deserts, espresso and coffee.

Pal Ε΍ϮθΣ ΎϬϧϭέΎΘΨϳ ϞϴϤϋ ϞϜϟ ϥϮϜϳ ϑϮγϭ .΍˱ΪΟ Δϧήϣϭ ΔϴΤλϭ ΔϳΩΎϋ ήϴϏ ΎϬϧ΃ :ΏΎΒγ΃ ΓΪόϟ ΎΘϴΑ ΰΒΨϟ΍ έΎΘΧ΍-ϡ 6 10 Ϧϣ ωϮΒγϷ΍ ϡΎϳ΃ ϝϼΧ ˬ˯ΎδϤϟ΍ Ϟ΋΍ϭ΃ ϲϓ Ϛϟάϛϭ ˬΖϗϮϟ΍ ΔϋΎγ ˯΍Ϊϐϟ΍ ϡΪΨΗ ΔϨϳΪϣ ςγϭ ϰϟ· ΍˱ΩΎϨΘγ΍ ζΘϳϭΪϧΎγ ϞΤϣ Ϯϫ ΎΘϴΑ
ˬΝΎΟΪϟ΍ϭ ήϳΰϨΨϟ΍ ϢΤϟ ΎϴϛήΗ ϰϟϮΑΎΗ ˬΎΑΎΑ ϲϧΎΟ ˬκϤΤϟ΍ Ϟϓϼϓ ϮϓϮΘϟ΍ ΕΎΑ :(ΔϳήμΣ ΔϤ΋Ύϗ Ζδϴϟ) ϮθΤϟ΍ ΕΎϴϠϤόϟ Ε΍έΎϴΨϟ΍ Ϧϣ ΔϋϮϤΠϤϟ΍ .ΎΘϴΑ ή΋Ύτη ΔϔϠΘΨϣpesto ϙΎϨϫ ϥϮϜϴγ ˬβΘϴΑ ϰϟ· ΔϓΎοϹΎΑ .ΔϋϮϨΘϤϟ΍ ϦΒΠϟ΍ϭ ΔϋϮϨΘϤϟ΍ Ε΍ϭήπΨϟ΍ϭ ˬ
Ϛϟάϛϭ ˬ˯΍ήπΨϟ΍ ˯΍Ϯγ ˬΔΣΎΘϤϟ΍ ΓΪϋ ΔϔϠΘΨϣ ΕΎτϠγ pastas ϦΒϟ΍ ϮγήΒγ΍ ΔϋϮϨΘϤϟ΍ ϱέΎΤμϟ΍ϭ.

4
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Pita Pal will be serving the Washington, PA lunch time and early evening crowd. Two distinct market segments will be targeted: students of Washington and Jefferson College
and "towners." The students will be attracted to Pita Pal as a better alternative to their on-campus meal plan. The towners will appreciate the selection and change from the
more traditional offerings currently available on Main Street. Main Street has been chosen in Washington because of the recent renaissance of the downtown area. Currently,
there are lots of different businesses that have hungry lunch time workers.

The competitive environment that Pita Pal faces is not too stiff. Most of the lunch time fare in downtown can be categorized as traditional offerings, diner food. While this
might appeal to older residents of the town, this does not appeal to many college students and to a growing population of people who are in search of more healthy food, Pita
Pal should be a big hit.

7
4



<,=)89:;.
Pita Pal has segmented the market into two distinct segments:

Students
this group is primarily from Washington and Jefferson College, a liberal arts school, a tenth of a mile from downtown. The students are looking for food vendors for two main
reasons, the first is the desire to get off campus, the second is to have an alternative to the on-campus food service. Demographic data and behavioral traits for the students
is as follows:

à 75% of the students are on some sort of financial aid;

à 67% have a part-time job;
à Ages 17-22;
à 42% of the students were in the top 15% of their high school class;
à 36% of the students were in the 85th percentile for the SAT;
à 89% of the students eat out at least twice per week;
à 75% of the students are on the school food program.
à ‡ 75 ˭ΔϴϟΎϤϟ΍ ΔϧϮόϤϟ΍ Ϧϣ ωϮϧ ϰϠϋ ΔΒϠτϟ΍ Ϧϣ Δ΋ΎϤϟ΍ ϲϓ
à ¶ 67 ˭ΖϗϮϟ΍ ξόΑ ϞϤϋ ϰϠϋ ϝϮμΤϟ΍ Δ΋ΎϤϟ΍ ϲϓ
à ¶ ˭22 17 ϦϴΑ ϢϫέΎϤϋ΃ Ρϭ΍ήΘΗ Ϧϳάϟ΍
à ¶ ˭ΔϳϮϧΎΜϟ΍ ΔΌϔϟ΍ ϚϠΗ Ϧϣ %15 ϰϠϋ΃ ϲϓ ΔΒϠτϟ΍ Ϧϣ Δ΋ΎϤϟ΍ ϲϓ 42 ΖϧΎϛ
à ¶ ˭ΔϛήθϠϟ ϦϴϧΎϤΜϟ΍ϭ βϣΎΨϟ΍ ϦϴΌϤϟ΍ ϲϓ ΔΒϠτϟ΍ Ϧϣ Δ΋ΎϤϟ΍ ϲϓ 36 ϥΎϛ
à ¶ 89 ˭ωϮΒγ΃ Ϟϛ ϞϗϷ΍ ϰϠϋ ϦϴΗήϣ ΝέΎΧ ϡΎότϟ΍ ϝϭΎϨΗ ΔΒϠτϟ΍ Ϧϣ Δ΋ΎϤϟ΍ ϲϓ
à ¶ 75% ϲγέΪϤϟ΍ ˯΍άϐϟ΍ ΞϣΎϧήΑ ϲϓ ϥϮϠϤόϳ Ώϼτϟ΍.

This information pertains to the Washington and Jefferson students. There will be a few community college students who will trickle in, but since their campus is six miles
away, there will not be a significant number of community college students.

Towners
This group is the people that live and work in Washington, primarily in the downtown area.

à Ages 24-55;
à The average individual income is $38,000;
à 55% of the people have at least some undergraduate schooling;
à 44% of the people work within a seven minute walk from the downtown area;
à 76% of the group go out for lunch one to two times a week.


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5
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Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Students 8% 2,285 2,468 2,665 2,878 3,108 7.99%

Towners 8% 45,989 49,668 53,641 57,932 62,567 8.00%

Total 8.00% 48,274 52,136 56,306 60,810 65,675 8.00%

4.2 Target Market Segment Strategy

The two different market segments that Pita Pal will be going after are distinct enough that there will be two different marketing campaigns, one for each group. This is
necessary because the two groups respond to different forms of communication. Students spend the majority of their day on campus, but typically venture off campus during
the day for lunch. The marketing effort to reach the students will be based on their forms of written media, The General, student newspaper.

The towners can be reached through different sources of communication. These are people who work downtown and tend to patronize the other downtown businesses. These
people are more in tune with the different business organizations that exist downtown. Pita Pal will attempt to communicate with this group via the local newspaper.

4.3 Service Business Analysis

Pita Pal exists within the general restaurant industry. There are many different categories within the restaurant industry. Pita Pal fits within two different niches within the
industry, fast food and fast casual. Their offerings are similar to fast food in that orders are placed at the counter and served within a few minutes, and the menu is somewhat
limited in selection. It is also similar to fast casual where the clientele tends to spend more time at a table relative to a fast food restaurant. The food is more expensive than a
normal fast food restaurant and there is a larger product offering.

For the restaurant industry, it is normal for a venture to reach profitability by year two. If they reach it any earlier it is likely that they are cutting corners and that profit is unlikely
to be sustainable. If it takes more than two years than it is quite questionable whether they will ever reach profitability.

4.3.1 Competition and Buying Patterns

Pita Pal's competition exists in many forms:

à Fast food: This takes the form of the traditional restaurants such as McDonald's, Burger King, and Wendy's, as well as healthier alternatives such as Subway.
à Pizza: The predominant pizza place for sit down food is Brothers pizza, owned by two brothers who are professors at the college. This place is more popular with locals
than with college students based primarily on the fact that the professor owners are not very well liked as professors so many students avoid the place.
à Deli: There are two different delis located downtown that serve deli style sandwiches. These delis serve very basic, standard deli fare, generally sliced deli meats.
à Diners: Based on the aging demographic of Washington, a function of its steel industry roots, there are several diners located in Washington, one of them downtown.
These are very traditional diners, the menus are right out of the 1950's.
à On-campus food service: At least for the students, this is an alternative in terms of food offerings. Most of the students have a food plan. Because of the poor food
offerings and the need for variety, many of the students are looking for other alternatives regardless of the fact that their food is already paid for via the plan.
à ‡ ϕΎϔϧϹ΍ ϭήΘϣ ϞΜϣ ΔΤλ Ϧϋ ϼπϓ ˬϞ΋΍ΪΒϟ΍ ˬϱΪϨϳϭ ˬώϨϴϛ ήϏήΑϭ ίΪϟΎϧϭΪϛΎϣ ϞΜϣ ΔϳΪϴϠϘΘϟ΍ ϢϋΎτϤϟ΍ ϞϜη άΨΘϳ ΍άϫϭ :Δόϳήδϟ΍ ΕΎΒΟϮϟ΍.
à ¶ ΪϳΪόϟ΍ ΐϨΠΗ ϰΘΣ ΓάΗΎγ΄ϛ ΍ΪϴΟ ΐΤϳ ϻ ΫΎΘγ΃ ϲϜϟΎϣ ϥ΃ ΔϘϴϘΣ ϰϠϋ ΎγΎγ΃ ϡϮϘϳ ΕΎόϣΎΠϟ΍ ϪΒϠσ Ϧϣ ϦϴϴϠΤϤϟ΍ ϥΎϜδϟ΍ ϊϣ ΔϴΒόη ήΜϛ΃ ϥΎϜϤϟ΍ ΍άϫ .ΔϴϠϜϟ΍ ϲϓ ΓάΗΎγ΃ Ϣϫ Ϧϳάϟ΍ ϥΎϘϴϘθϟ΍ ΎϬϜϠϤϳ ˬΓϮΧϷ΍ ΍ΰΘϴΒϟ΍ Ϯϫ ˯΍άϐϟ΍ βϠΠϧ ΔΒϟΎϐϟ΍ ΍ΰΘϴΒϟ΍ :΍ΰΘϴΒϟ΍
ϥΎϜϤϟ΍ ϲϓ ΔΒϠτϟ΍ Ϧϣ.
à ¶ ϡϮΤϠϟ΍ϭ ϲϟΩ ΢΋΍ήη ΎϣϮϤϋ ήϔδϟ΍ ΓήΟ΃ϭ ˬ˱΍ΪΟ ΔϴγΎγϷ΍ ΔϴγΎϴϘϟ΍ ϲϟΩ ΓΰϫΎΠϟ΍ ΕΎΒΟϮϟ΍ ΕϼΤϣ ϩάϫ ϡΪΨΗ .ϲϟΩ ςϤϧ ή΋Ύτη ϡΪΨΗ ϲΘϟ΍ ΔϨϳΪϤϟ΍ ςγϭ ϊϘΗ ΔϔϠΘΨϣ ΓΰϫΎΠϟ΍ ΕΎΒΟϮϟ΍ ΕϼΤϣ Ϧϣ ϦϴϨΛ΍ ϙΎϨϫ :ϲϟΩ.
à ¶ ΕΎϨϴδϤΨϟ΍ Ϧϣ ΝϭήΨϟ΍ ϲϓ ϖΤϟ΍ Ϣ΋΍ϮϘϟ΍ ˬ˱΍ΪΟ ΔϳΪϴϠϘΗ ίήϨϳ΍Ωϭ ϩάϫ .ΔϨϳΪϤϟ΍ ςγϭ ϢϬϨϣ ΪΣ΍ϭ ˬϦτϨη΍ϭ ϲϓ ΩϮΟϮϤϟ΍ ίήϨϳ΍Ωϭ ΓΪϋ ϙΎϨϫ ˬΐϠμϟ΍ ΔϋΎϨλ έϭάΟ Δϟ΍Ω ˬϦτϨη΍Ϯϟ Δϴϓ΍ήϐϤϳΪϟ΍ ΔΧϮΨϴθϟ΍ ϰϟ· ΍˱ΩΎϨΘγ΍ :ίήϨϳ΍Ωϭ.
à ¶ ήψϨϟ΍ ξϐΑ ϯήΧ΃ Ϟ΋΍ΪΑ Ϧϋ ΚΤΒΗ Ώϼτϟ΍ Ϧϣ ΪϳΪόϟ΍ ˬΔϋϮϨΘϣ ΔΟΎΤϟ΍ϭ ϡΎότϟ΍ ˯Ϯγ νϭήόϟ ΍˱ήψϧ .˯΍άϐϟ΍ ΔτΧ ΎϨϳΪϟ Ώϼτϟ΍ Ϣψόϣ ϥ΃ .νϭήόϟ΍ Ϧϣ ˯΍άϐϟ΍ ΚϴΣ Ϧϣ ϞϳΪΑ ΍άϫϭ ˬΏϼτϠϟ ϞϗϷ΍ ϰϠϋ :ϲόϣΎΠϟ΍ ϡήΤϟ΍ ϲϓ Δϴ΋΍άϐϟ΍ ΕΎϣΪΨϟ΍
ΔτΨϟ΍ ήΒϋ ϞόϔϟΎΑ ϢϬΘϳάϏ΃ ϊϓΪϳ ϥ΃ ΔϘϴϘΣ Ϧϣ Ϧϋ.




> !6





Pita Pal's business strategy will be to emphasize its healthy, custom food alternatives. Most of the competitors cannot compete with Pita Pal's healthy menu. Most places uses
a lot of fried foods, compromising the nutritional value of their food. Additionally, no one offers the same flexibility or ability to customize the product offerings. This competitive
edge will also be stressed in the marketing campaign.

As mentioned earlier, Pita Pal's marketing strategy will be distinct for each of the two market segments that it is seeking to attract.

The sales effort will be based on obtaining 100% satisfaction. Pita Pal will work hard to ensure that every customer has a wonderful experience at Pita Pal. Almost anything
will be done to ensure any problems that arise are corrected.

?n !

c

Pita Pal has two competitive edges that will help it succeed in its business. The first edge is its healthy menu. Pita Pal takes pride in the fact that the only thing fried on the
menu is falafel. Everything else is oil free, or at least free of any oils other than olive oil. In addition to the absence of oil based fats, much of its offered ingredients are
vegetables, ensuring a healthy meal.

The other competitive edge that Pita Pal will leverage is customization. Customers are offered a laundry list of ingredients that they get to choose from. It is Pita Pal's goal to
serve the customer in whatever capacity is needed. This takes the form of its competitive edge where it will build the patrons pita pocket any way that they want.

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Pita Pal will employ a two pronged marketing strategy in an attempt to reach potential customers within the two market segments. To reach the students, Pita Pal must use
resources that are successful in reaching the students. Recognizing that the students spend the majority of their time on campus, Pita Pal will rely on print advertisements and
coupons within the student publications. The print advertisements will serve to draw notice to Pita Pal, increasing the student's awareness about this new restaurant
alternative. Pita Pal will emphasize its menu as a tasty, healthy alternative to the campus meal plan as well as other local food vendors. Pita Pal will also use coupons as a
way drawing in students. Coupons are quite effective for students, most of them are on a fixed budget and jump at the chance to save money by using a coupon.

Print advertising will be used for the towners, however, Pita Pal will choose a different media source to reach these people. The readership levels for the local paper, The
Sentinel are 67% of the targeted population. This will prove to be an effective method for reaching this group. Since the majority of this market segment work downtown, flyers
will be passed around the downtown area calling attention to Pita Pal's opening. Coupons will be used, but to a lesser degree with this segment as they tend to have much
lower response rates relative to the other market segment.

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As previously mentioned, Pita Pal will emphasize its 100% customer satisfaction to win over customers. The fact that it advertises 100% satisfaction is far less significant
relative to its actions that ensure total satisfaction. This effort is based on the philosophy that it is far cheaper to maintain a current customer than it is to attract a new
customer. Additionally, it is far easier and cheaper to remedy any problems with a customer as it occurs instead of dealing with an unhappy customer. With this in mind, the
organization has the firm belief that if all customers leave the store happy, there will be a significant increase in sales in the long term, directly correlated with the fact that
customers are being properly taken care of.

This sales philosophy is a way of treating customers. While the service offered customers is quite important, there is a need to have a quality product, otherwise the service
aspect is in vain in the long term because the customers are treated well but do not perceive value in the food that they are buying. That being said, Pita Pal must offer fresh,
healthy, quality food in order to fully support its customer-centered service. The menu has been devised in order to offer a wide selection with menu items that are easy to
prepare, remain fresh, and are cost effective to serve. Having both a quality product and excellent service will ensure realization of the sales forecast.

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6



Pita Pal has decided to take a conservative viewpoint toward its sales forecast in order to increase the likelihood of achieving the stated goals. Pita Pal has reason to believe
that the first three months of business will be fairly slow. It is forecasted that business will steadily increase over the first two years. Profitability is forecasted to be achieved
toward the end of year two.


6




Year 1 Year 2 Year 3

Sales

Food $48,361 $102,323 $143,434

Beverages $20,312 $42,976 $60,242

Total Sales $68,673 $145,299 $203,676

Direct Cost of Sales Year 1 Year 2 Year 3

Food $14,508 $30,697 $43,030

Beverages $4,062 $8,595 $12,048

Subtotal Direct Cost of Sales $18,571 $39,292 $55,079

5.4 Milestones
Pita Pal has identified four milestones that are clear in terms of the goals, and are achievable:

1. Business plan completion. The final version will be accomplished with in the first two months.
2. $50,000 in revenue. A date of expectancy has been established and it will be useful to gauge performance on whether the revenue is realized on schedule.
3. Profitability. Very important, it is forecasted to occur within two years.
4. Payback of entrepreneurship loan. While non-payment of the loan will not result in serious consequences it is a matter of pride to be able to take a loan from the
College's Entrepreneurship Program and turn it into a successful business.

6



Milestone Start Date End Date Budget Manager Department

Business plan completion 1/1/2003 3/1/2003 $0 Steve Operations

$50K in revenue 3/1/2003 11/1/2003 $0 Steve Sales

Profitability 3/1/2003 10/15/2003 $0 Steve Accounting

Payback of loan 3/1/2003 1/1/2007 $0 Steve Accounting

Totals $0







Steve Jones is the driving force behind Pita Pal. Steve has lived in Washington, PA for the last four years while studying for his Bachelor of Arts from Washington and
Jefferson College. Steve's introduction to the restaurant industry came at the early age of 14 when he worked in his family's restaurant in Cleveland.

While pursuing his degree Steve was a server at a fine dining restaurant called Angelo's, where he received more insight into the restaurant industry. He enrolled in
the Entrepreneurship Program which combined coursework with speakers and empirical experience. For lucky few, it also provided them with a low interest loan which if the
business fails does not personally obligate the borrower to repay.

While Steve became more and more active in this program, he began to realize that he would not be truly happy unless he was operating his own business. He also realized
that he would be most effective if he worked within the restaurant industry due to all of his experience as well as the wealth of contacts that he had access to because of his
parent's business. With this in mind, at the end of the last semester of his last year, Steve applied for the a loan through the Entrepreneurship Program and was pleasantly
surprised that he won. Steve has written a business plan in response to the application requirements for the loans, however by the time the loan was awarded, many months
had passed and Steve felt the need to rewrite the plan before beginning the business. He undertook this task and the business has begun.

M@

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Steve will be the main employee of Pita Pal. For the first two months of operation, Steve will be the sole employee. During this period he will oversee the finishing touches on
the retail space, will develop the product recipes, and will establish vendor relationships. Month three will mark the first month of sales. Steve will have at least two employees
present during open hours. Steve will also have one employee working 1.5 hours before opening to help with food prep and both employees for .5-1 hour after closing. As
business ramps, Steve will employ additional employees to help out with food prep, front restaurant help, as well as back kitchen activities such as dishes and clean up.

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Year 1 Year 2 Year 3

Steve $24,000 $27,000 $30,000

employee 1 $9,000 $10,800 $10,800

employee 2 $9,000 $10,800 $10,800

employee 3 $7,200 $10,800 $10,800

employee 4 $5,400 $10,800 $10,800

Total People 5 5 5

Total Payroll $54,600 $70,200 $73,200



6@6


The following sections will detail important financial information.

A> !
5 !
The following table will detail important Financial Assumptions.

B


65 !

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00%

Other 0 0 0

AC

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The following table and chart show our Break-even Analysis.

C

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Monthly Revenue Break-even $9,799

Assumptions:

Average Percent Variable Cost 27%

Estimated Monthly Fixed Cost $7,149

7.3 Projected Profit and Loss

The following table and charts illustrate the Projected Profit and Loss.

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Year 1 Year 2 Year 3

Sales $68,673 $145,299 $203,676

Direct Cost of Sales $18,571 $39,292 $55,079

Other Costs of Goods $0 $0 $0

Total Cost of Sales $18,571 $39,292 $55,079

Gross Margin $50,102 $106,007 $148,598

Gross Margin % 72.96% 72.96% 72.96%

Expenses

Payroll $54,600 $70,200 $73,200

Sales and Marketing and Other Expenses $2,400 $2,400 $2,400

Depreciation $5,004 $5,004 $5,004

Rent $9,000 $9,000 $9,000

Utilities $3,600 $3,600 $3,600

Insurance $3,000 $3,000 $3,000

Payroll Taxes $8,190 $10,530 $10,980

Other $0 $0 $0

Total Operating Expenses $85,794 $103,734 $107,184

Profit Before Interest and Taxes ($35,691) $2,273 $41,414

EBITDA ($30,688) $7,277 $46,418

Interest Expense $0 $0 $0

Taxes Incurred $0 $682 $12,424

Net Profit ($35,691) $1,591 $28,990

Net Profit/Sales -51.97% 1.09% 14.23%

7.4 Projected Cash Flow

The following table and chart will indicate Projected Cash Flow.

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n
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Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales $68,673 $145,299 $203,676

Subtotal Cash from Operations $68,673 $145,299 $203,676

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 $0 $0 $0

Subtotal Cash Received $68,673 $145,299 $203,676

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $54,600 $70,200 $73,200

Bill Payments $40,474 $67,160 $94,183

Subtotal Spent on Operations $95,074 $137,360 $167,383

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 $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $95,074 $137,360 $167,383

Net Cash Flow ($26,401) $7,939 $36,293

Cash Balance $8,099 $16,037 $52,331

7.5 Projected Balance Sheet

The following table will indicate the Projected Balance Sheet.

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F



Year 1 Year 2 Year 3

Assets

Current Assets

Cash $8,099 $16,037 $52,331

Other Current Assets $0 $0 $0

Total Current Assets $8,099 $16,037 $52,331

Long-term Assets

Long-term Assets $25,000 $25,000 $25,000

Accumulated Depreciation $5,004 $10,008 $15,012

Total Long-term Assets $19,996 $14,992 $9,988

Total Assets $28,095 $31,030 $62,319

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $4,287 $5,630 $7,930

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $4,287 $5,630 $7,930

Long-term Liabilities $0 $0 $0

Total Liabilities $4,287 $5,630 $7,930

Paid-in Capital $65,000 $65,000 $65,000

Retained Earnings ($5,500) ($41,191) ($39,601)

Earnings ($35,691) $1,591 $28,990

Total Capital $23,809 $25,399 $54,389

Total Liabilities and Capital $28,095 $31,030 $62,319

Net Worth $23,809 $25,399 $54,389

7.6 Business Ratios

The following table displays Business Ratios of this company as well as those within the restaurant industry.

&
5
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Year 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 111.58% 40.18% 6.96%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 28.39%

Total Current Assets 28.83% 51.68% 83.97% 37.68%

Long-term Assets 71.17% 48.32% 16.03% 62.32%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 15.26% 18.15% 12.72% 19.17%

Long-term Liabilities 0.00% 0.00% 0.00% 29.21%

Total Liabilities 15.26% 18.15% 12.72% 48.38%

Net Worth 84.74% 81.85% 87.28% 51.62%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 72.96% 72.96% 72.96% 59.31%

Selling, General & Administrative Expenses 124.93% 71.86% 58.72% 39.09%

Advertising Expenses 0.00% 0.00% 0.00% 2.75%

Profit Before Interest and Taxes -51.97% 1.56% 20.33% 1.59%

Main Ratios

Current 1.89 2.85 6.60 1.26

Quick 1.89 2.85 6.60 0.87

Total Debt to Total Assets 15.26% 18.15% 12.72% 54.38%

Pre-tax Return on Net Worth -149.91% 8.95% 76.14% 3.27%

Pre-tax Return on Assets -127.04% 7.32% 66.45% 7.17%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -51.97% 1.09% 14.23% n.a

Return on Equity -149.91% 6.26% 53.30% n.a

Activity Ratios

Accounts Payable Turnover 10.44 12.17 12.17 n.a

Payment Days 27 26 26 n.a

Total Asset Turnover 2.44 4.68 3.27 n.a

Debt Ratios

Debt to Net Worth 0.18 0.22 0.15 n.a

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

Liquidity Ratios

Net Working Capital $3,812 $10,407 $44,401 n.a

Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios

Assets to Sales 0.41 0.21 0.31 n.a

Current Debt/Total Assets 15% 18% 13% n.a

Acid Test 1.89 2.85 6.60 n.a

Sales/Net Worth 2.88 5.72 3.74 n.a

Dividend Payout 0.00 0.00 0.00 n.a

5!!
 


6




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

Food 0% $0 $0 $3,248 $3,939 $4,828 $4,577 $4,044 $4,348 $5,430 $6,148 $6,346 $5,454

Beverages 0% $0 $0 $1,364 $1,654 $2,028 $1,922 $1,699 $1,826 $2,281 $2,582 $2,665 $2,291

Total Sales $0 $0 $4,612 $5,593 $6,855 $6,499 $5,743 $6,174 $7,711 $8,730 $9,011 $7,745

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 12

Food $0 $0 $974 $1,182 $1,448 $1,373 $1,213 $1,304 $1,629 $1,844 $1,904 $1,636
Beverages $0 $0 $273 $331 $406 $384 $340 $365 $456 $516 $533 $458

Subtotal Direct Cost of Sales $0 $0 $1,247 $1,512 $1,854 $1,757 $1,553 $1,670 $2,085 $2,361 $2,437 $2,094

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Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Steve 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

employee 1 0% $0 $0 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900

employee 2 0% $0 $0 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900

employee 3 0% $0 $0 $0 $0 $900 $900 $900 $900 $900 $900 $900 $900

employee 4 0% $0 $0 $0 $0 $0 $0 $900 $900 $900 $900 $900 $900

Total People 1 1 3 3 4 4 5 5 5 5 5 5

Total Payroll $2,000 $2,000 $3,800 $3,800 $4,700 $4,700 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600

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Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
12

Plan Month 1 2 3 4 5 6 7 8 9 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%

Other 0 0 0 0 0 0 0 0 0 0 0 0

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Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
12

Sales $0 $0 $4,612 $5,593 $6,855 $6,499 $5,743 $6,174 $7,711 $8,730 $9,011 $7,745

Direct Cost of Sales $0 $0 $1,247 $1,512 $1,854 $1,757 $1,553 $1,670 $2,085 $2,361 $2,437 $2,094

Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $0 $0 $1,247 $1,512 $1,854 $1,757 $1,553 $1,670 $2,085 $2,361 $2,437 $2,094

Gross Margin $0 $0 $3,365 $4,081 $5,001 $4,742 $4,190 $4,505 $5,626 $6,369 $6,574 $5,650

Gross Margin % 0.00% 0.00% 72.96% 72.96% 72.96% 72.96% 72.96% 72.96% 72.96% 72.96% 72.96% 72.96%
Expenses

Payroll $2,000 $2,000 $3,800 $3,800 $4,700 $4,700 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600

Sales and Marketing and Other Expenses $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Depreciation $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417

Rent $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750

Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Payroll Taxes 15% $300 $300 $570 $570 $705 $705 $840 $840 $840 $840 $840 $840

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $4,217 $4,217 $6,287 $6,287 $7,322 $7,322 $8,357 $8,357 $8,357 $8,357 $8,357 $8,357

Profit Before Interest and Taxes ($4,217) ($4,217) ($2,922) ($2,206) ($2,321) ($2,580) ($4,167) ($3,852) ($2,731) ($1,988) ($1,783) ($2,707)

EBITDA ($3,800) ($3,800) ($2,505) ($1,789) ($1,904) ($2,163) ($3,750) ($3,435) ($2,314) ($1,571) ($1,366) ($2,290)

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 ($4,217) ($4,217) ($2,922) ($2,206) ($2,321) ($2,580) ($4,167) ($3,852) ($2,731) ($1,988) ($1,783) ($2,707)

Net Profit/Sales 0.00% 0.00% -63.36% -39.45% -33.85% -39.70% -72.56% -62.40% -35.42% -22.77% -19.79% -34.95%

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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 $0 $0 $4,612 $5,593 $6,855 $6,499 $5,743 $6,174 $7,711 $8,730 $9,011 $7,745

Subtotal Cash from Operations $0 $0 $4,612 $5,593 $6,855 $6,499 $5,743 $6,174 $7,711 $8,730 $9,011 $7,745

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $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 $0 $0 $0 $0

Subtotal Cash Received $0 $0 $4,612 $5,593 $6,855 $6,499 $5,743 $6,174 $7,711 $8,730 $9,011 $7,745

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 $2,000 $2,000 $3,800 $3,800 $4,700 $4,700 $5,600 $5,600 $5,600 $5,600 $5,600 $5,600

Bill Payments $60 $1,800 $1,851 $3,326 $3,598 $4,056 $3,960 $3,897 $4,023 $4,434 $4,703 $4,765

Subtotal Spent on Operations $2,060 $3,800 $5,651 $7,126 $8,298 $8,756 $9,560 $9,497 $9,623 $10,034 $10,303 $10,365

Additional Cash Spent

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

Subtotal Cash Spent $2,060 $3,800 $5,651 $7,126 $8,298 $8,756 $9,560 $9,497 $9,623 $10,034 $10,303 $10,365

Net Cash Flow ($2,060) ($3,800) ($1,038) ($1,533) ($1,443) ($2,257) ($3,817) ($3,323) ($1,912) ($1,305) ($1,292) ($2,621)

Cash Balance $32,440 $28,640 $27,602 $26,069 $24,625 $22,369 $18,552 $15,229 $13,317 $12,012 $10,719 $8,099

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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
Assets
Balances

Current Assets

Cash $34,500 $32,440 $28,640 $27,602 $26,069 $24,625 $22,369 $18,552 $15,229 $13,317 $12,012 $10,719 $8,099
Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

Total Current
$34,500 $32,440 $28,640 $27,602 $26,069 $24,625 $22,369 $18,552 $15,229 $13,317 $12,012 $10,719 $8,099
Assets

Long-term Assets

Long-term Assets $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

Accumulated
$0 $417 $834 $1,251 $1,668 $2,085 $2,502 $2,919 $3,336 $3,753 $4,170 $4,587 $5,004
Depreciation

Total Long-term
$25,000 $24,583 $24,166 $23,749 $23,332 $22,915 $22,498 $22,081 $21,664 $21,247 $20,830 $20,413 $19,996
Assets

Total Assets $59,500 $57,023 $52,806 $51,351 $49,401 $47,541 $44,867 $40,633 $36,893 $34,564 $32,842 $31,133 $28,095

Liabilities and
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Capital

Current Liabilities

Accounts Payable $0 $1,740 $1,740 $3,207 $3,463 $3,924 $3,830 $3,763 $3,876 $4,278 $4,544 $4,617 $4,287

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

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

Subtotal Current
$0 $1,740 $1,740 $3,207 $3,463 $3,924 $3,830 $3,763 $3,876 $4,278 $4,544 $4,617 $4,287
Liabilities

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

Total Liabilities $0 $1,740 $1,740 $3,207 $3,463 $3,924 $3,830 $3,763 $3,876 $4,278 $4,544 $4,617 $4,287

Paid-in Capital $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000

Retained Earnings ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500) ($5,500)

Earnings $0 ($4,217) ($8,434) ($11,356) ($13,562) ($15,883) ($18,463) ($22,630) ($26,483) ($29,214) ($31,202) ($32,985) ($35,691)

Total Capital $59,500 $55,283 $51,066 $48,144 $45,938 $43,617 $41,037 $36,870 $33,017 $30,286 $28,298 $26,515 $23,809

Total Liabilities
$59,500 $57,023 $52,806 $51,351 $49,401 $47,541 $44,867 $40,633 $36,893 $34,564 $32,842 $31,133 $28,095
and Capital
Net Worth $59,500 $55,283 $51,066 $48,144 $45,938 $43,617 $41,037 $36,870 $33,017 $30,286 $28,298 $26,515 $23,809