Professional Documents
Culture Documents
IceDreams Live
IceDreams Live
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This is a sample business plan and the names, locations and numbers may have been
changed, and substantial portions of the original plan text may have been omitted to
preserve confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have
permission to reproduce, publish, distribute or even copy this plan as it exists here.
Requests for reprints, academic use, and other dissemination of this sample plan should be
emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For
product information visit our Website: www.paloalto.com or call: 1-800-229-7526.
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Confidentiality Agreement
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___________________
Name (typed or printed)
___________________
Date
Table of Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
2
2
2.0
Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1
Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2
Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3
Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
2
3
4
3.0
Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1
Product Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2
Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3
Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.4
Sourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5
Future Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
5
5
5
5
5
4.0
6
6
6
7
8
8
8
5.0
9
9
9
9
10
10
10
10
6.0
Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.1
Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2
Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.3
Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
11
11
12
7.0
Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.1
Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.2
Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.3
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.4
Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.5
Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.6
Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.7
Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
13
14
15
16
17
19
19
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
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1.0
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Because shave ice is so tender and made with the thickest, best-tasting tropical fruit flavors,
it is preferred by adults and children of all ages and ethnic backgrounds.
A drive-through business will be built on privately-owned commercial property on Highway 86
(Adams Avenue) in El Centro, California. Other products which will be incorporated into the
business including beverages (soft drinks and licuados).
Highlights
$120,000
$100,000
$80,000
$60,000
Sales
Gross Margin
Net Profit
$40,000
$20,000
$0
1997
1998
1999
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1.1 Objectives
To construct a drive-through building (12' x 20') on existing privately-owned
commercial property (50' x 120').
To produce a net profit of at least $50,000 by the third year of operation.
To sell 20 different tropical and Mexican flavored syrups.
To sell other products such as soft drinks and licuados.
1.2 Mission
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Ice Dreams will produce and sell shave ice with 20 different flavored syrups, soft drinks, and
licuados to consumers in El Centro, California. Retail customers will be in the low- to midincome bracket, and will range in age from children to adults.
3.
4.
5.
6.
Will be the first business of its kind in the city of El Centro, California.
Business will be located on a major city highway, next to several housing
developments, the city pool, near schools and parks, and along a major restaurant
and motel strip.
Product quality will include a large variety of tropical and Mexican flavored syrups.
Business has the potential for expansion into other Imperial County communities.
City of El Centro experiences warm to hot weather approximately seven months of the
year.
Two-way traffic on Highway 86 averages 48,300 vehicles on a daily basis.
Ice Dreams will be known for selling shave ice with 20 different tropical and Mexican flavored
syrups to children and adults in El Centro, California. Other products will include soft drinks
and licuados.
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Start-up Expenses
Consultants
Insurance
Other
Total Start-up Expenses
Start-up Assets Needed
Cash Balance on Starting Date
Start-up Inventory
Other Current Assets
Total Current Assets
$10,000
$1,325
$675
$12,000
Long-term Assets
Total Assets
Total Requirements
$4,000
$16,000
$52,010
Funding
Investment
Investor 1
Other
Total Investment
$0
$10,000
$10,000
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Current Liabilities
$0
$42,010
$0
$42,010
Long-term Liabilities
Total Liabilities
$0
$42,010
Loss at Start-up
Total Capital
Total Capital and Liabilities
($36,010)
($26,010)
$16,000
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Start-up
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
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$0
Expenses
Assets
Investment
Loans
Ice Dreams will be located on Highway 86 in El Centro, California which experiences a high
volume of traffic on a daily basis. According to a study by Cal Trans (Traffic Volumes, 1995),
approximately 48,300 vehicles pass through this location on a daily basis making it an ideal
location for business. The majority of traffic enters and exits via Imperial Avenue and Fourth
Avenue traveling through Highway 86.
A 240 square foot drive-through facility will be built on a privately-owned commercial
property which will also include parking facilities, landscaping, and a small sitting area. Other
major businesses located on Highway 86 include Carl's Jr., Roberto's Restaurant, La Fonda
Restaurant, Raging Bull Restaurant, China Restaurant, Donut Shop, Steak House, Big John
gas station, Recreation Center, and several motels.
The appendices provide additional information on the company facilities, a tentative plot plan,
and highlights of the traffic study conducted by Cal Trans.
3.0 Products
Main products to be sold through the Ice Dreams business will be shave ice topped with
tropical and Mexican flavored syrups in three main sizes: small, medium, and large. Other
products will include three soft drinks (Sprite, Coke, and Diet-Coke), and licuados.
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No other business in El Centro specifically caters to the shaved ice market on a large scale. It
is anticipated that prices will be competitive with other businesses who sell shave ice on a
smaller basis.
Sales literature to be distributed to the general community will include fliers, advertisement
in the local newspaper (Imperial Valley Press), and other print media.
3.4 Sourcing
Ice Dreams will purchase products from Crystal Fresh, Inc. which manufactures and
distributes high-quality syrups and ice shavers. All equipment and supplies are available
through a regional distributor. Mexican flavored syrups will be purchased in Mexicali, Baja
California, Mexico.
It is anticipated that 10-15 additional syrups will be added such as Spearmint, Black Cherry,
Cinnamon, Blueberry, Peach, Red Apple, Tutti Frutti, Coconut, Cola, Green Apple, Tangerine,
and Vanilla. Also, future products to be sold will include ice cream in vanilla and chocolate
flavors.
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According to Advertising Age (September, 1995), premium ice cream and frozen yogurt
products are losing market share to mid-priced and other frozen dessert products.
Information Resources reported that frozen ice products comprised a third of the $2.4 billion
ice cream category for the year ending May 21, 1995, generating $717.7 million, up 9.3%
from the previous year.
Based on this information, it is anticipated that the frozen dessert market can be divided into
two customer segments. The first segment prefers premium ice cream and frozen yogurt
products. The other segment obviously includes those that prefer frozen ice products. Shave
ice products are ideal for today's health-conscious consumers. They boast no fat, no
cholesterol, and are relatively low in calories.
Ice Dreams will target all segments of El Centro's population: children, teenagers, and adults.
The Hispanic population will be of special interest since it comprises 65% of El Centro's total
population. This population will be targeted with Mexican flavored syrups and licuados.
Ice Dreams will target the low- to mid-income consumers who want to have a high quality
dessert for moderate prices. Ice Dream's shave ice meets the quality required by these
customers since it will also cater to the large Latino population in El Centro with its Mexican
flavored syrups.
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4.
5.
Compared to other food service products, Ice Dreams will be a relatively simple
business to operate.
Shave ice is similar to a Mexican favorite called raspado, but because it is softer and
tastier, it is preferred over raspados.
Shave ice has a low food cost and is easy to prepare, which keeps speed-of-service at
optimum levels to keep up with high-traffic volumes.
Ice Dreams will be easy to maintain and clean.
Shave ice is a product that has yielded a considerable profit in terms of cost to
produce at $0.16.
Shave ice is an ideal product for the health-conscious consumer.
6.
Market research conducted in El Centro did surface one raspado (sno-cone) business on a
small scale called "Snow Shack" located on State Street. Snow Shack consists of a small
trailer that accommodates only one employee. Sno-cones are sold in cups at prices ranging
from $1.00 (small), $1.25 (medium) to $1.50 (large).
Sno-cones were also found to be sold at Garcia's Food Market and Wal Mart. Each sold snocones in one regular size at $1.00 each.
Research conducted in Bullhead City, Arizona noted that the Sno Biz dealership only sells
shave ice as their primary product. Shave ice units sold for $1.25 (small), $1.75 (medium) to
$2.25 (large) per unit. In interviewing the current owner, he indicated that during his first
year in business he was selling 200 units per day.
Research in San Diego, California revealed that shave ice is sold along with other products.
Several businesses in Mission Bay sold shave ice with prices ranging from $1.79 (small),
$1.99 (medium) and $2.39 (large). In terms of licuados, prices were $2.79 (regular) and
$3.15 (large).
Research conducted in Honolulu, Hawaii, showed that in some locations, shave ice sold as
high as $5.00 for a regular size. However, the majority of sno-cones were sold by the flavor
and not necessarily by the size. For example, one flavor was $1.79, two flavors were $2.29,
and three flavors sold for $2.79.
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The shave ice business will be new to El Centro. Competitors in this type of business primarily
sell raspados or sno-cones and do not focus on the shave ice market. One major competitor
is the "Snow Shack" located on State Street. Snow Shack sells sno-cones through a small,
one person trailer with limited choices of syrups. Other competitors sell sno-cones through
Garcia's Market and the Wal-Mart store which also have limited syrup selections and do not
necessarily focus on the sno-cone or shave ice industry as their primary product.
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The keys to success will definitely focus on selling shave ice and not sno-cones made with
coarse ice and selling high quality syrups. Prices will also be competitive with those of the
competition.
Main competitors include the Snow Shack, Garcia's Market, and Wal-Mart. The following are
strengths and weaknesses of each.
Snow Shack
Strengths: The main strength of Snow Shack is that it is the only business in El
Centro that caters to the sno-cone market. It also has very reasonable prices.
Weaknesses: The primary weakness of Snow Shack is that it does not sell
shave ice but rather sno-cones made from very coarse ice. Syrups are also not
of good quality.
Garcia's Market
Strengths: The main strength of sno-cones sold by Garcia's Market is their low
price of $1.00 and the convenience to the shopper in buying sno-cones while
doing their shopping.
Weaknesses: The main weakness of sno-cones sold by Garcia's Market is that
they do not sell quality syrups and prefer to sell the more inexpensive brand
with lower quality taste.
Wal-Mart
Strengths: Main strength of sno-cones sold by Wal-Mart is the convenience to
the shopper and low price.
Weaknesses: Wal-Mart's weakness, like Garcia's Market, is that they do not
sell quality syrups. Also, the sno-cone business is not their primary focus or
product.
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Ice Dream's overall marketing strategy will be to create an image of offering the highest
quality shave ice in Imperial County. The business will be located in a high traffic area of El
Centro. Customers will be reached through advertisements such as fliers, newspaper ads, and
through its grand opening ceremonies.
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A special marketing program will also be incorporated by offering special coupon prices for
nearby restaurants, motels, city pool, the donut shop, and the gas station to customers who
purchase any product at Ice Dreams.
Distribution of shave ice will be through the business facility only. It is anticipated that in the
future, a small portable ice shaver will be purchased such that the product could be sold on
site at various fund raising functions through churches, schools, etc.
Soft Drinks
Regular $0.79
Large $0.99
Licuados
Regular $1.35
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Major marketing will be conducted through newspaper advertisements and local flier
distribution during the first three months of operation. Total costs will be approximately
$500.
Sales strategy will be directly linked to marketing programs since all sales will be through the
business facility only.
Consumer sales will start in January, 1997 (or sooner if construction is completed before the
targeted date) with a grand opening anticipated by then. Sales and units costs for the first six
months of 1997 are shown in the sales forecast as projected numbers. As indicated, primary
sales will occur during the peak warm weather months as noted in the following chart and
table.
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Sales Monthly
$6,000
$5,000
$4,000
Sales
$3,000
Other
$2,000
$1,000
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$0
Jul
Ice Dreams will hire an employee to assist with the business. Ice Dreams will require
minimum daily supervision after it has been established since all three products are fairly
easy to make.
Ofelia R. Arellano, the owner, will have one individual assisting her with the business. Long
range plans will include a second employee to assist with the weekend hours.
Ofelia R. Arellano is the most important member of the management team. Dr. Arellano is a
graduate of the University of California, Santa Barbara with several advanced degrees
(Masters and Doctorate in Psychology). She has spent the last six years working as an
administrator overseeing a budget of approximately $800,000. Ofelia will oversee the
business primarily during the weekend hours and Frank Arellano will oversee the business
during weekdays along with one employee.
Business expertise include:
Budget Control
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Community Leadership
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Advisory Boards
Business and Educational Partnerships
Frank Arellano will serve as a consultant on a volunteer basis. Mr. Arellano spent over 35
years in the retail business handling marketing and inventory for a major food chain. He is
familiar with all aspects of business management and operations having owned and operated
his own grocery store in El Centro. Mr. Arellano will also assist in the building design,
landscaping layout and business marketing. Mr. Arellano will supervise the business during
the week days which means managing one employee.
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Personnel Plan
1997
$10,800
$0
1
$10,800
Assistant
Owner
Total People
Total Payroll
1998
$11,232
$0
1
$11,232
1999
$11,681
$0
1
$11,681
We want to finance growth mainly through cash flow. We recognized that this means
we will have to grow slowly.
The most important indicator in our case is that minimal inventory will have to be
stored for these products.
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Monthly sales are the largest indicator for this business. There are some seasonal variations
with the months of March through September being the highest sales months.
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
1997
1
13.50%
0.00%
30.00%
0
1998
2
13.50%
0.00%
30.00%
0
1999
3
13.50%
0.00%
30.00%
0
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Benchmarks
4.0
3.0
2.0
1.0
1997
1998
1999
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0.0
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Break-even Analysis
$2,000
$1,500
$1,000
$500
$0
($500)
($1,000)
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($1,500)
($2,000)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
Break-even Analysis:
Monthly Units Break-even
Monthly Revenue Break-even
3,125
$3,125
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$1.00
$0.36
$2,000
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1998
$77,383
$17,772
$0
-----------$17,772
$59,611
77.03%
1999
$104,446
$24,227
$0
-----------$24,227
$80,219
76.80%
$10,800
$1,410
$2,196
$0
$1,720
$1,200
$0
$0
$2,484
$0
-----------$19,810
$20,293
$5,672
$4,386
$10,235
19.60%
$11,232
$1,466
$2,284
$0
$1,789
$1,248
$0
$0
$2,583
$0
-----------$20,602
$39,009
$5,672
$10,001
$23,336
30.16%
$11,681
$1,525
$2,375
$0
$1,861
$1,298
$0
$0
$2,687
$0
-----------$21,427
$58,792
$5,672
$15,936
$37,184
35.60%
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1997
$52,217
$12,114
$0
-----------$12,114
$40,103
76.80%
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Cash
$20,000
$15,000
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$10,000
$5,000
$0
($5,000)
Jul
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1998
1999
$52,217
$0
$52,217
$77,383
$0
$77,383
$104,446
$0
$104,446
$0
$3
$0
$0
$0
$0
$0
$52,220
$0
$0
$0
$0
$0
$0
$0
$77,383
$0
$0
$0
$0
$0
$0
$0
$104,446
1997
1998
1999
$0
$38,254
$38,254
$0
$51,652
$51,652
$0
$64,796
$64,796
$0
$0
$0
$10,500
$0
$0
$0
$48,754
$0
$0
$0
$10,500
$0
$0
$0
$62,152
$0
$0
$0
$10,500
$0
$0
$0
$75,296
$3,466
$13,466
$15,231
$28,697
$29,150
$57,847
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
Bu
sin
es
sP
lan
Pro
Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution. Pg 18
Sa
m
ple
1998
$28,697
$458
$675
$29,830
Bu
sin
es
sP
lan
Pro
Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
1999
$57,847
$624
$675
$59,146
$4,000
$2,196
$1,804
$16,257
$4,000
$4,480
($480)
$29,350
$4,000
$6,855
($2,855)
$56,291
1997
$519
$42,013
$0
$42,532
1998
$776
$42,013
$0
$42,789
1999
$1,032
$42,013
$0
$43,045
Long-term Liabilities
Total Liabilities
($10,500)
$32,032
($21,000)
$21,789
($31,500)
$11,545
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$10,000
($36,010)
$10,235
($15,775)
$16,257
($15,775)
$10,000
($25,775)
$23,336
$7,561
$29,350
$7,561
$10,000
($2,439)
$37,184
$44,745
$56,291
$44,745
Standard business ratios are included in the table that follows. The ratios show a plan for
balanced, healthy growth. The standard industry indicators shown are for SIC 5812, eating
places.
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution. Pg 19
Ratio Analysis
Sa
m
ple
Table: Ratios
1997
0.00%
1998
48.20%
1999
34.97%
Industry Profile
7.60%
0.00%
1.92%
4.15%
88.90%
11.10%
100.00%
0.00%
1.56%
2.30%
101.64%
-1.64%
100.00%
0.00%
1.11%
1.20%
105.07%
-5.07%
100.00%
4.50%
3.60%
35.60%
43.70%
56.30%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
261.62%
-64.59%
197.03%
-97.03%
145.79%
-71.55%
74.24%
25.76%
76.47%
-55.96%
20.51%
79.49%
32.70%
28.50%
61.20%
38.80%
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
100.00%
76.80%
57.20%
1.15%
38.86%
100.00%
77.03%
46.88%
0.81%
50.41%
100.00%
76.80%
41.20%
0.62%
56.29%
100.00%
60.50%
39.80%
3.20%
0.70%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
0.34
0.33
197.03%
-92.69%
89.94%
0.70
0.69
74.24%
440.92%
113.59%
1.37
1.36
20.51%
118.72%
94.37%
0.98
0.65
61.20%
1.70%
4.30%
1997
19.60%
0.00%
1998
30.16%
308.64%
1999
35.60%
83.10%
n.a
n.a
0.00
0
11.84
74.69
18
3.21
0.00
0
46.18
66.90
4
2.64
0.00
0
44.79
63.02
5
1.86
n.a
n.a
n.a
n.a
n.a
n.a
0.00
1.33
2.88
1.96
0.26
3.73
n.a
n.a
($28,079)
3.58
($12,959)
6.88
$16,100
10.37
n.a
n.a
0.31
262%
0.33
0.00
0.00
0.38
146%
0.69
10.23
0.00
0.54
76%
1.36
2.33
0.00
n.a
n.a
n.a
n.a
n.a
Bu
sin
es
sP
lan
Pro
Sales Growth
Additional Ratios
Net Profit Margin
Return on Equity
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
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution. Pg 20
Sa
m
ple
Feb
$2,751
$0
$2,751
Mar
$5,691
$0
$5,691
Apr
$5,691
$0
$5,691
May
$5,691
$0
$5,691
Jun
$5,691
$0
$5,691
Jul
$5,691
$0
$5,691
Aug
$5,691
$0
$5,691
Sep
$5,691
$0
$5,691
Oct
$2,751
$0
$2,751
Nov
$2,751
$0
$2,751
Dec
$1,376
$0
$1,376
Jan
$623
$0
$623
Feb
$623
$0
$623
Mar
$1,330
$0
$1,330
Apr
$1,330
$0
$1,330
May
$1,330
$0
$1,330
Jun
$1,330
$0
$1,330
Jul
$1,330
$0
$1,330
Aug
$1,330
$0
$1,330
Sep
$1,330
$0
$1,330
Oct
$623
$0
$623
Nov
$623
$0
$623
Dec
$312
$0
$312
us
ine
ss
Pla
nP
ro
Jan
$2,751
$0
$2,751
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution.
Pg 21
Sa
m
ple
Feb
$900
$0
1
$900
Mar
$900
$0
1
$900
Apr
$900
$0
1
$900
May
$900
$0
1
$900
Jun
$900
$0
1
$900
Jul
$900
$0
1
$900
Aug
$900
$0
1
$900
Sep
$900
$0
1
$900
Oct
$900
$0
1
$900
Nov
$900
$0
1
$900
Dec
$900
$0
1
$900
us
ine
ss
Pla
nP
ro
Assistant
Owner
Total People
Total Payroll
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution.
Pg 22
Sa
m
ple
Feb
2
13.50%
0.00%
30.00%
0
Mar
3
13.50%
0.00%
30.00%
0
Apr
4
13.50%
0.00%
30.00%
0
May
5
13.50%
0.00%
30.00%
0
Jun
6
13.50%
0.00%
30.00%
0
Jul
7
13.50%
0.00%
30.00%
0
Aug
8
13.50%
0.00%
30.00%
0
Sep
9
13.50%
0.00%
30.00%
0
Oct
10
13.50%
0.00%
30.00%
0
Nov
11
13.50%
0.00%
30.00%
0
Dec
12
13.50%
0.00%
30.00%
0
us
ine
ss
Pla
nP
ro
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution.
Pg 23
Sa
m
ple
23%
Feb
$2,751
$623
$0
-----------$623
$2,128
77.35%
Mar
$5,691
$1,330
$0
-----------$1,330
$4,361
76.63%
Apr
$5,691
$1,330
$0
-----------$1,330
$4,361
76.63%
May
$5,691
$1,330
$0
-----------$1,330
$4,361
76.63%
Jun
$5,691
$1,330
$0
-----------$1,330
$4,361
76.63%
Jul
$5,691
$1,330
$0
-----------$1,330
$4,361
76.63%
Aug
$5,691
$1,330
$0
-----------$1,330
$4,361
76.63%
Sep
$5,691
$1,330
$0
-----------$1,330
$4,361
76.63%
Oct
$2,751
$623
$0
-----------$623
$2,128
77.35%
Nov
$2,751
$623
$0
-----------$623
$2,128
77.35%
Dec
$1,376
$312
$0
-----------$312
$1,064
77.33%
$900
$180
$183
$0
$85
$100
$0
$0
$207
$0
-----------$1,655
$473
$473
$0
$0
0.01%
$900
$180
$183
$0
$85
$100
$0
$0
$207
$0
-----------$1,655
$473
$473
$0
$0
0.01%
$900
$105
$183
$0
$85
$100
$0
$0
$207
$0
-----------$1,580
$2,781
$473
$693
$1,616
28.39%
$900
$105
$183
$0
$85
$100
$0
$0
$207
$0
-----------$1,580
$2,781
$473
$693
$1,616
28.39%
$900
$105
$183
$0
$85
$100
$0
$0
$207
$0
-----------$1,580
$2,781
$473
$693
$1,616
28.39%
$900
$105
$183
$0
$185
$100
$0
$0
$207
$0
-----------$1,680
$2,681
$473
$663
$1,546
27.16%
$900
$105
$183
$0
$185
$100
$0
$0
$207
$0
-----------$1,680
$2,681
$473
$663
$1,546
27.16%
$900
$105
$183
$0
$185
$100
$0
$0
$207
$0
-----------$1,680
$2,681
$473
$663
$1,546
27.16%
$900
$105
$183
$0
$185
$100
$0
$0
$207
$0
-----------$1,680
$2,681
$473
$663
$1,546
27.16%
$900
$105
$183
$0
$185
$100
$0
$0
$207
$0
-----------$1,680
$448
$473
($7)
($17)
-0.63%
$900
$105
$183
$0
$185
$100
$0
$0
$207
$0
-----------$1,680
$448
$473
($7)
($17)
-0.63%
$900
$105
$183
$0
$185
$100
$0
$0
$207
$0
-----------$1,680
($616)
$473
($327)
($762)
-55.38%
us
ine
ss
Jan
$2,751
$623
$0
-----------$623
$2,128
77.35%
Pla
nP
ro
Sales
Direct Costs of Goods
Other
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution.
Pg 24
Sa
m
ple
0.00%
Feb
Mar
Apr
$2,751
$0
$2,751
$2,751
$0
$2,751
$5,691
$0
$5,691
$5,691
$0
$5,691
$0
$0
$0
$0
$0
$0
$0
$2,751
$0
$0
$0
$0
$0
$0
$0
$2,751
$0
$0
$0
$0
$0
$0
$0
$5,691
$0
$0
$0
$0
$0
$0
$0
$5,691
Feb
Mar
$0
$1,963
$1,963
Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations
$0
$1,135
$1,135
$0
$0
$0
$875
$0
$0
$0
$2,010
$741
$10,741
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$5,691
$0
$5,691
$5,691
$0
$5,691
$5,691
$0
$5,691
$5,691
$0
$5,691
$5,691
$0
$5,691
$2,751
$0
$2,751
$2,751
$0
$2,751
$1,376
$0
$1,376
$0
$0
$0
$0
$0
$0
$0
$5,691
$0
$3
$0
$0
$0
$0
$0
$5,694
$0
$0
$0
$0
$0
$0
$0
$5,691
$0
$0
$0
$0
$0
$0
$0
$5,691
$0
$0
$0
$0
$0
$0
$0
$5,691
$0
$0
$0
$0
$0
$0
$0
$2,751
$0
$0
$0
$0
$0
$0
$0
$2,751
$0
$0
$0
$0
$0
$0
$0
$1,376
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$0
$2,559
$2,559
$0
$4,576
$4,576
$0
$3,892
$3,892
$0
$3,894
$3,894
$0
$3,962
$3,962
$0
$3,962
$3,962
$0
$3,962
$3,962
$0
$3,895
$3,895
$0
$1,980
$1,980
$0
$2,473
$2,473
$0
$0
$0
$875
$0
$0
$0
$2,838
$0
$0
$0
$875
$0
$0
$0
$3,434
$0
$0
$0
$875
$0
$0
$0
$5,451
$0
$0
$0
$875
$0
$0
$0
$4,767
$0
$0
$0
$875
$0
$0
$0
$4,769
$0
$0
$0
$875
$0
$0
$0
$4,837
$0
$0
$0
$875
$0
$0
$0
$4,837
$0
$0
$0
$875
$0
$0
$0
$4,837
$0
$0
$0
$875
$0
$0
$0
$4,770
$0
$0
$0
$875
$0
$0
$0
$2,855
$0
$0
$0
$875
$0
$0
$0
$3,348
($87)
$10,654
$2,257
$12,911
$240
$13,152
$924
$14,075
$925
$15,000
$854
$15,854
$854
$16,708
$854
$17,562
($2,019)
$15,542
($104)
$15,438
($1,972)
$13,466
us
ine
ss
Jan
May
Pla
nP
ro
Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Jan
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution.
Pg 25
Sa
m
ple
Jan
$10,741
$702
$675
$12,118
Feb
$10,654
$623
$675
$11,952
Mar
$12,911
$1,330
$675
$14,916
Apr
$13,152
$1,330
$675
$15,157
May
$14,075
$1,330
$675
$16,080
Jun
$15,000
$1,330
$675
$17,005
Jul
$15,854
$1,330
$675
$17,859
Aug
$16,708
$1,330
$675
$18,713
Sep
$17,562
$1,330
$675
$19,567
Oct
$15,542
$707
$675
$16,924
Nov
$15,438
$623
$675
$16,736
Dec
$13,466
$312
$675
$14,453
$4,000
$0
$4,000
$16,000
$4,000
$183
$3,817
$15,935
$4,000
$366
$3,634
$15,586
$4,000
$549
$3,451
$18,367
$4,000
$732
$3,268
$18,425
$4,000
$915
$3,085
$19,165
$4,000
$1,098
$2,902
$19,907
$4,000
$1,281
$2,719
$20,578
$4,000
$1,464
$2,536
$21,249
$4,000
$1,647
$2,353
$21,920
$4,000
$1,830
$2,170
$19,094
$4,000
$2,013
$1,987
$18,723
$4,000
$2,196
$1,804
$16,257
$0
$42,010
$0
$42,010
Jan
$810
$42,010
$0
$42,820
Feb
$1,336
$42,010
$0
$43,346
Mar
$3,376
$42,010
$0
$45,386
Apr
$2,692
$42,010
$0
$44,702
May
$2,692
$42,010
$0
$44,702
Jun
$2,760
$42,013
$0
$44,773
Jul
$2,760
$42,013
$0
$44,773
Aug
$2,760
$42,013
$0
$44,773
Sep
$2,760
$42,013
$0
$44,773
Oct
$827
$42,013
$0
$42,840
Nov
$1,348
$42,013
$0
$43,361
Dec
$519
$42,013
$0
$42,532
Long-term Liabilities
Total Liabilities
$0
$42,010
($875)
$41,945
($1,750)
$41,596
($2,625)
$42,761
($3,500)
$41,202
($4,375)
$40,327
($5,250)
$39,523
($6,125)
$38,648
($7,000)
$37,773
($7,875)
$36,898
($8,750)
$34,090
($9,625)
$33,736
($10,500)
$32,032
$10,000
($36,010)
$0
($26,010)
$16,000
($26,010)
$10,000
($36,010)
$0
($26,010)
$15,935
($26,010)
$10,000
($36,010)
$1
($26,009)
$15,586
($26,009)
$10,000
($36,010)
$1,616
($24,394)
$18,367
($24,394)
$10,000
($36,010)
$3,232
($22,778)
$18,425
($22,778)
$10,000
($36,010)
$4,848
($21,162)
$19,165
($21,162)
$10,000
($36,010)
$6,394
($19,616)
$19,907
($19,616)
$10,000
($36,010)
$7,940
($18,070)
$20,578
($18,070)
$10,000
($36,010)
$9,486
($16,524)
$21,249
($16,524)
$10,000
($36,010)
$11,032
($14,978)
$21,920
($14,978)
$10,000
($36,010)
$11,014
($14,996)
$19,094
($14,996)
$10,000
($36,010)
$10,997
($15,013)
$18,723
($15,013)
$10,000
($36,010)
$10,235
($15,775)
$16,257
($15,775)
us
ine
ss
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
Pla
nP
ro
Starting Balances
$10,000
$1,325
$675
$12,000
Copyright Palo Alto Software, Inc. 1995-2003 All rights reserved. www.paloalto.com No reproduction, publication, or distribution.
Pg 26