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New World Deli - Restaurant Business Plan
New World Deli - Restaurant Business Plan
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This is a business plan. It does not imply an offering of securities.
Table of Contents
1.0 Executive Summary.............................................................................................................................1
1.1 Keys to Success ........................................................................................................................1
Chart: Highlights ......................................................................................................................2
1.2 Mission........................................................................................................................................2
1.3 Objectives ...................................................................................................................................2
2.0 Company Summary.............................................................................................................................2
2.1 Start-up Summary ......................................................................................................................3
Table: Start-up .........................................................................................................................3
Table: Start-up Funding ..........................................................................................................4
Chart: Start-up .........................................................................................................................5
2.2 Company Locations and Facilities ..........................................................................................5
2.3 Company Ownership .................................................................................................................5
3.0 Products and Services........................................................................................................................5
3.1 Product and Service Description .............................................................................................6
3.2 Competitive Comparison..........................................................................................................7
3.3 Sales Literature ..........................................................................................................................7
3.4 Future Products and Services ..................................................................................................8
4.0 Market Analysis Summary..................................................................................................................8
4.1 Market Segmentation ................................................................................................................9
Table: Market Analysis ...........................................................................................................9
Chart: Market Analysis (Pie) ..................................................................................................9
4.2 Target Market Segment Strategy.............................................................................................9
4.2.1 Market Trends .............................................................................................................10
4.2.2 Market Needs ..............................................................................................................10
4.2.3 Market Growth .............................................................................................................10
4.3 Service Business Analysis .....................................................................................................10
4.3.1 Competition and Buying Patterns .............................................................................11
4.3.2 Main Competitors .......................................................................................................11
4.3.3 Business Participants.................................................................................................11
5.0 Strategy and Implementation Summary..........................................................................................12
5.1 Marketing Strategy ..................................................................................................................12
5.1.1 Promotion Strategy.....................................................................................................12
5.1.2 Positioning Statement ................................................................................................12
5.1.3 Pricing Strategy...........................................................................................................12
5.2 Milestones ................................................................................................................................13
Chart: Milestones ..................................................................................................................13
Table: Milestones..................................................................................................................13
5.3 Sales Strategy..........................................................................................................................13
5.3.1 Sales Forecast ............................................................................................................14
Table: Sales Forecast.................................................................................................14
Chart: Sales Monthly ...................................................................................................15
Chart: Sales by Year ...................................................................................................15
5.4 Strategic Alliances...................................................................................................................15
5.5 Competitive Edge....................................................................................................................16
6.0 Management Summary ....................................................................................................................16
6.1 Management Team .................................................................................................................16
6.2 Management Team Gaps .......................................................................................................16
Page 1
Table of Contents
6.3 Personnel Plan.........................................................................................................................16
Table: Personnel ...................................................................................................................17
7.0 Financial Plan ....................................................................................................................................18
7.1 Important Assumptions............................................................................................................18
Table: General Assumptions ...............................................................................................18
7.2 Key Financial Indicators ..........................................................................................................18
Chart: Benchmarks ...............................................................................................................19
7.3 Break-even Analysis................................................................................................................20
Table: Break-even Analysis .................................................................................................20
Chart: Break-even Analysis .................................................................................................20
7.4 Projected Profit and Loss .......................................................................................................21
Chart: Profit Monthly .............................................................................................................21
Chart: Profit Yearly................................................................................................................22
Chart: Gross Margin Monthly ...............................................................................................22
Chart: Gross Margin Yearly..................................................................................................23
Table: Profit and Loss ..........................................................................................................23
7.5 Projected Cash Flow...............................................................................................................24
Table: Cash Flow..................................................................................................................24
Chart: Cash ...........................................................................................................................25
7.6 Projected Balance Sheet ........................................................................................................26
Table: Balance Sheet ...........................................................................................................26
7.7 Business Ratios .......................................................................................................................27
Table: Ratios .........................................................................................................................28
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................5
Table: Balance Sheet ................................................................................................................................6
Page 2
Repeat business. Every customer who comes in once should want to return, and
recommend us. Word-of-mouth marketing is a powerful ally.
Location. Convenience is essential to us, we need to be close to our market bec ause
we are not trying to get people to travel to reac h us.
The right food, variety with a Pacific Rim theme, with a price high enough to establish
credibility, but not so high as to limit customers.
Page 1
1.2 Mission
The New World Delicatessen will be an upsc ale deli specializing in a combination of fast hot or
cold sandwiches and salads plus specific recipes foc using on the Pacific Northwest cuisine.
Based on this distinct menu, New World Deli will follow a differentiation strategy that will
provide unique or hard to find choices to deli patrons. This will provide Ms. Ericson with the
ability to charge slightly more for its food services than most competitors and return a significant
profit.
1.3 Objectives
New World Deli seeks to ac hieve the following goals:
Page 2
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Rent
Expensed Equipment
Other
Total Start-up Expenses
$500
$300
$1,000
$3,000
$1,000
$5,800
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$28,200
$0
$2,000
$24,000
$54,200
Total Requirements
$60,000
Page 3
$5,800
$54,200
$60,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
$26,000
$28,200
$0
$28,200
Total Assets
$54,200
$30,000
$0
$0
$10,000
$40,000
Capital
Planned Investment
Owner/founder
Other
Additional Investment Requirement
$20,000
$0
$0
$20,000
($5,800)
Total Capital
$14,200
$54,200
Total Funding
$60,000
Page 4
Caesar Salad.
Greek Salad.
Page 5
In addition, Ms. Ericson will be offering her own salmon dressing to compliment these offerings.
Finally, New World Deli will offer its unique Pacific Northwest style cuisine. This includes Ms.
Ericson's own c reations such as:
Coos Bay Hot Crab Sandwiches.
Columbia Salmon Rolls.
Anac ortes Seafood Burgers.
Smoked Salmon Sourdough Bread.
Washington Bruschetta Steak Sandwiches.
Hood River Fresh Apple Cake.
Widbey Loganberry Tarts.
In addition, Ms. Ericson is negotiating with a loc al coffee and espresso provider to form a
strategic alliance that will allow New World Deli patrons to enjoy those products.
Lunch:
Entrees
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Turkey Sub.
Ham and Cheese Sub.
Roast Chicken Club.
Veggie Sandwich.
Tuna Sub.
Coos Bay Hot Crab Sandwiches.
Columbia Salmon Rolls.
Anac ortes Seafood Burgers.
Smoked Salmon Sourdough Bread.
Washington Bruschetta Steak Sandwiches.
Hood River Fresh Apple Cake.
Widbey Loganberry Tarts.
Page 6
Chips.
Homemade Organic Willamette Chili.
Organic Vegetable and Chicken Soup.
Salads
1.
2.
3.
4.
5.
6.
Caesar Salad.
Greek Salad.
Watercress and Sesame Salad.
Homemade Potato Salad.
Italian Eggplant Salad.
Maury Island Cranberry Arctic Salad.
Drinks
1.
2.
3.
4.
5.
Take-home dinners consist of the lunch entrees pac kaged for the customers. Any of the
breakfast or lunch entrees can be premade, or prepared in two to three minutes to insure rapid
service and high customer satisfac tion.
People who work in the downtown area during the day, who will be looking for walk-in
good food and convenience for late breakfast and lunch.
Surrounding businesses looking for phone-in lunch for business meetings.
Workers with families looking for take-out food to take home for family dinner at the
end of the workday.
Each of these market segments consists of people who either work in the downtown area or flow
through this area during the normal work week. As such, there will be a undetermined
percentage of eac h market that will be seeking an eating establishment that will meet the
requirements of healthy food, fast service, and pleasant atmosphere. Furthermore, New World
Deli will cater to the growing trend of middle-class professionals who seek a differing cuisine than
that of the established food chains.
Page 8
Growth
0%
2%
1%
1.55%
Year 1
Year 2
Year 3
Year 4
Year 5
500
20,000
15,000
35,500
500
20,400
15,150
36,050
500
20,808
15,302
36,610
500
21,224
15,455
37,179
500
21,648
15,610
37,758
CAGR
0.00%
2.00%
1.00%
1.55%
Page 9
Page 10
Price is not very sensitive as long as we are not too high. Low price or lowest price is not
essential. Many target customers mistrust low price in a deli.
Quality of food matters. If the price isn't too high and the food is good, we'll have
growth through repeat business.
Foc us is an advantage; foc using on Pacific Rim food will draw customers from the
competition.
Page 11
5.2 Milestones
The following table lists important program milestones, with dates and managers in c harge, and
budgets for eac h. The milestone schedule indicates our emphasis on planning for implementation.
Table: Milestones
Milestones
Milestone
Website plan
Website implementation
Recruitment marketing person
Sales contacts and networking
Start Date
1/1/2002
2/15/2002
1/15/2002
1/15/2002
End Date
3/1/2002
5/1/2002
3/1/2002
4/1/2002
Budget
$1,000
$9,000
$2,000
$2,000
Manager
Designato
Designato
Founder
Founder
Department
Website
Website
Management
Management
3/15/2002
12/1/2001
1/1/2002
6/1/2002
1/1/2002
3/31/2002
$5,000
$0
$2,000
Marketing
Founder
Founder
Marketing
Management
Management
3/31/2002
4/1/2002
5/1/2002
5/1/2002
$2,000
$2,000
$25,000
Marketing
Marketing
Marketing
Marketing
Page 13
Year 2
Year 3
Sales
Breakfast lines
$181,585
$190,664
$200,197
Lunch lines
Coffee lines
Take-out dishes
Other
Total Sales
$140,605
$113,876
$154,135
$59,020
$649,221
$147,635
$119,570
$161,842
$61,971
$681,682
$155,017
$125,548
$169,934
$65,070
$715,766
Year 1
$63,555
$49,212
Year 2
$72,452
$56,101
Year 3
$76,075
$58,906
$39,857
$53,947
$23,608
$230,178
$45,437
$61,500
$23,549
$259,039
$47,708
$64,575
$24,726
$271,991
Page 14
Page 16
Year 1
$36,000
$72,000
$42,000
$36,000
9
Year 2
$45,000
$45,000
$30,000
$15,000
9
Year 3
$50,000
$60,000
$35,000
$25,000
9
$186,000
$135,000
$170,000
Page 17
Year 1
1
10.00%
10.00%
30.00%
0
Year 2
2
10.00%
10.00%
30.00%
0
Year 3
3
10.00%
10.00%
30.00%
0
Page 18
Page 19
$39,158
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
35%
$25,275
Page 20
Page 21
Page 22
Year 1
$649,221
$230,178
Year 2
$681,682
$259,039
Year 3
$715,766
$271,991
$36,000
$266,178
$40,000
$299,039
$45,000
$316,991
Gross Margin
Gross Margin %
$383,043
59.00%
$382,643
56.13%
$398,775
55.71%
Expenses
Payroll
$186,000
$135,000
$170,000
$81,000
$0
$2,400
$6,000
$27,900
$0
$57,500
$0
$2,400
$6,600
$20,250
$0
$76,000
$0
$2,400
$7,200
$25,500
$0
$303,300
$221,750
$281,100
$79,743
$79,743
$3,678
$22,819
$160,893
$160,893
$1,257
$47,891
$117,675
$117,675
$0
$35,303
Net Profit
Net Profit/Sales
$53,245
8.20%
$111,745
16.39%
$82,373
11.51%
Page 23
Year 2
Year 3
$649,221
$649,221
$681,682
$681,682
$715,766
$715,766
$0
$15,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$664,221
$681,682
$715,766
Year 1
Year 2
Year 3
$186,000
$135,000
$170,000
Bill Payments
Subtotal Spent on Operations
$400,625
$586,625
$435,119
$570,119
$460,699
$630,699
$0
$19,868
$10,000
$0
$0
$0
$25,132
$0
$0
$40,000
$0
$0
$0
$0
$0
$0
$25,000
$641,493
$50,000
$25,000
$710,251
$0
$60,000
$690,699
$22,728
$50,928
($28,568)
$22,360
$25,067
$47,427
Cash Received
Cash from Operations
Cash Sales
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
Page 24
Page 25
Year 2
Year 3
$50,928
$24,979
$2,000
$77,907
$22,360
$26,723
$42,000
$91,082
$47,427
$26,179
$42,000
$115,606
$24,000
$0
$24,000
$101,907
$74,000
$0
$74,000
$165,082
$74,000
$0
$74,000
$189,606
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
$34,330
$25,132
$0
$35,892
$0
$0
$38,042
$0
$0
$59,462
$35,892
$38,042
Long-term Liabilities
Total Liabilities
$0
$59,462
$0
$35,892
$0
$38,042
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
Liabilities and Capital
Paid-in Capital
$20,000
$20,000
$20,000
Retained Earnings
Earnings
Total Capital
($30,800)
$53,245
$42,445
($2,555)
$111,745
$129,191
$49,191
$82,373
$151,563
$101,907
$165,082
$189,606
$42,445
$129,191
$151,563
Net Worth
Page 26
Page 27
Year 1
n.a.
Year 2
5.00%
Year 3
5.00%
Industry Profile
7.60%
24.51%
1.96%
76.45%
23.55%
100.00%
16.19%
25.44%
55.17%
44.83%
100.00%
13.81%
22.15%
60.97%
39.03%
100.00%
3.60%
35.60%
43.70%
56.30%
100.00%
58.35%
0.00%
58.35%
41.65%
21.74%
0.00%
21.74%
78.26%
20.06%
0.00%
20.06%
79.94%
32.70%
28.50%
61.20%
38.80%
100.00%
59.00%
100.00%
56.13%
100.00%
55.71%
100.00%
60.50%
50.80%
5.08%
12.28%
39.74%
3.67%
23.60%
44.18%
5.59%
16.44%
39.80%
3.20%
0.70%
1.31
2.54
3.04
0.98
0.89
58.35%
179.21%
74.64%
1.79
21.74%
123.57%
96.70%
2.35
20.06%
77.64%
62.06%
0.65
61.20%
1.70%
4.30%
Additional Ratios
Year 1
Year 2
Year 3
8.20%
125.44%
16.39%
86.50%
11.51%
54.35%
n.a
n.a
10.91
12.67
27
6.37
10.02
12.17
29
4.13
10.28
12.17
29
3.78
n.a
n.a
n.a
n.a
1.40
1.00
0.28
1.00
0.25
1.00
n.a
n.a
$18,445
21.68
$55,191
128.04
$77,563
183,568,059.24
n.a
n.a
0.16
58%
0.89
15.30
0.47
0.24
22%
1.79
5.28
0.22
0.26
20%
2.35
4.72
0.73
n.a
n.a
n.a
n.a
n.a
Activity Ratios
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 28
Appendix
Table: Sales Forecast
Sales Forecast
Sales
Breakfast lines
Lunch lines
Coffee lines
Take-out dishes
Other
Total 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
0%
$3,960
$8,515
$10,855
$13,015
$13,735
$16,615
$14,635
$13,735
$20,808
$21,732
$23,688
$20,292
0%
0%
0%
$9,240
$7,920
$11,000
$9,756
$8,495
$12,145
$10,476
$8,855
$13,315
$11,155
$9,095
$13,765
$11,695
$9,275
$13,675
$11,875
$9,575
$13,855
$10,525
$8,135
$11,245
$10,615
$8,195
$11,335
$13,315
$10,416
$12,775
$14,215
$11,155
$13,315
$14,904
$11,965
$13,405
$12,834
$10,795
$14,305
0%
$3,212
$35,332
$3,891
$42,802
$4,350
$47,851
$4,703
$51,733
$4,838
$53,218
$5,192
$57,112
$4,454
$48,994
$4,388
$48,268
$5,731
$63,045
$6,042
$66,459
$6,396
$70,358
$5,823
$64,049
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Breakfast lines
Lunch lines
35%
35%
$1,386
$3,234
$2,980
$3,415
$3,799
$3,667
$4,555
$3,904
$4,807
$4,093
$5,815
$4,156
$5,122
$3,684
$4,807
$3,715
$7,283
$4,660
$7,606
$4,975
$8,291
$5,216
$7,102
$4,492
Coffee lines
Take-out dishes
35%
35%
$2,772
$3,850
$2,973
$4,251
$3,099
$4,660
$3,183
$4,818
$3,246
$4,786
$3,351
$4,849
$2,847
$3,936
$2,868
$3,967
$3,646
$4,471
$3,904
$4,660
$4,188
$4,692
$3,778
$5,007
Other
Subtotal Direct Cost of Sales
40%
$1,285
$12,527
$1,556
$15,175
$1,740
$16,965
$1,881
$18,342
$1,935
$18,868
$2,077
$20,249
$1,782
$17,371
$1,755
$17,113
$2,293
$22,352
$2,417
$23,563
$2,558
$24,945
$2,329
$22,708
Page 1
Appendix
Table: Personnel
Personnel Plan
Owner/founder
Counter Clerks
Kitchen
0%
0%
0%
Busboys
Total People
0%
Total Payroll
Month 1
$3,000
$6,000
$3,500
Month 2
$3,000
$6,000
$3,500
Month 3
$3,000
$6,000
$3,500
Month 4
$3,000
$6,000
$3,500
Month 5
$3,000
$6,000
$3,500
Month 6
$3,000
$6,000
$3,500
Month 7
$3,000
$6,000
$3,500
Month 8
$3,000
$6,000
$3,500
Month 9
$3,000
$6,000
$3,500
Month 10
$3,000
$6,000
$3,500
Month 11
$3,000
$6,000
$3,500
Month 12
$3,000
$6,000
$3,500
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$3,000
9
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Month 1
1
10.00%
Month 2
2
10.00%
Month 3
3
10.00%
Month 4
4
10.00%
Month 5
5
10.00%
Month 6
6
10.00%
Month 7
7
10.00%
Month 8
8
10.00%
Month 9
9
10.00%
Month 10
10
10.00%
Month 11
11
10.00%
Month 12
12
10.00%
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
Other
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Month 1
$35,332
$12,527
Month 2
$42,802
$15,175
Month 3
$47,851
$16,965
Month 4
$51,733
$18,342
Month 5
$53,218
$18,868
Month 6
$57,112
$20,249
Month 7
$48,994
$17,371
Month 8
$48,268
$17,113
Month 9
$63,045
$22,352
Month 10
$66,459
$23,563
Month 11
$70,358
$24,945
Month 12
$64,049
$22,708
$3,000
$15,527
$3,000
$18,175
$3,000
$19,965
$3,000
$21,342
$3,000
$21,868
$3,000
$23,249
$3,000
$20,371
$3,000
$20,113
$3,000
$25,352
$3,000
$26,563
$3,000
$27,945
$3,000
$25,708
Gross Margin
Gross Margin %
$19,805
56.05%
$24,627
57.54%
$27,886
58.28%
$30,391
58.75%
$31,350
58.91%
$33,863
59.29%
$28,623
58.42%
$28,155
58.33%
$37,693
59.79%
$39,896
60.03%
$42,413
60.28%
$38,340
59.86%
Expenses
Payroll
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$9,000
$9,000
$9,000
$9,000
$9,000
$9,000
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$500
$2,325
$0
$27,525
$27,525
$27,525
$27,525
$27,525
$27,525
$23,025
$23,025
$23,025
$23,025
$23,025
$23,025
($7,720)
($7,720)
$247
($2,898)
($2,898)
$244
$361
$361
$303
$2,866
$2,866
$362
$3,825
$3,825
$359
$6,338
$6,338
$355
$5,598
$5,598
$352
$5,130
$5,130
$348
$14,668
$14,668
$345
$16,871
$16,871
$341
$19,388
$19,388
$213
$15,315
$15,315
$209
($2,390)
($943)
$17
$751
$1,040
$1,795
$1,574
$1,434
$4,297
$4,959
$5,753
$4,532
Net Profit
($5,577)
($2,199)
$41
$1,753
$2,426
$4,188
$3,673
$3,347
$10,026
$11,571
$13,423
$10,574
Net Profit/Sales
-15.78%
-5.14%
0.08%
3.39%
4.56%
7.33%
7.50%
6.93%
15.90%
17.41%
19.08%
16.51%
Utilities
Insurance
Payroll Taxes
Other
Taxes Incurred
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
$35,332
$35,332
$42,802
$42,802
$47,851
$47,851
$51,733
$51,733
$53,218
$53,218
$57,112
$57,112
$48,994
$48,994
$48,268
$48,268
$63,045
$63,045
$66,459
$66,459
$70,358
$70,358
$64,049
$64,049
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$7,500
$0
$7,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$35,332
$42,802
$55,351
$59,233
$53,218
$57,112
$48,994
$48,268
$63,045
$66,459
$70,358
$64,049
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
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
$15,500
Bill Payments
Subtotal Spent on Operations
$1,306
$16,806
$38,962
$54,462
$32,477
$47,977
$34,337
$49,837
$35,990
$51,490
$35,973
$51,473
$38,533
$54,033
$26,738
$42,238
$29,609
$45,109
$43,197
$58,697
$40,794
$56,294
$42,708
$58,208
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$387
$391
$394
$397
$400
$404
$407
$411
$414
$417
$15,421
$424
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$25,000
$17,194
$54,853
$48,371
$50,234
$51,890
$51,877
$54,440
$42,649
$45,523
$59,115
$71,715
$93,633
$18,138
($12,051)
$6,980
$8,999
$1,328
$5,235
($5,446)
$5,619
$17,522
$7,344
($1,356)
($29,584)
Cash Balance
$46,338
$34,287
$41,268
$50,267
$51,595
$56,830
$51,383
$57,003
$74,525
$81,869
$80,512
$50,928
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
Starting Balances
Current Assets
Cash
Inventory
$28,200
$0
$46,338
$13,779
$34,287
$16,693
$41,268
$18,662
$50,267
$20,176
$51,595
$20,755
$56,830
$22,274
$51,383
$19,108
$57,003
$18,825
$74,525
$24,588
$81,869
$25,919
$80,512
$27,440
$50,928
$24,979
$2,000
$30,200
$2,000
$62,118
$2,000
$52,980
$2,000
$61,930
$2,000
$72,443
$2,000
$74,350
$2,000
$81,103
$2,000
$72,491
$2,000
$77,827
$2,000
$101,112
$2,000
$109,788
$2,000
$109,952
$2,000
$77,907
Long-term Assets
Long-term Assets
$24,000
$24,000
$24,000
$24,000
$24,000
$24,000
$24,000
$24,000
$24,000
$24,000
$24,000
$24,000
$24,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$24,000
$54,200
$24,000
$86,118
$24,000
$76,980
$24,000
$85,930
$24,000
$96,443
$24,000
$98,350
$24,000
$105,103
$24,000
$96,491
$24,000
$101,827
$24,000
$125,112
$24,000
$133,788
$24,000
$133,952
$24,000
$101,907
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
$0
$37,882
$31,334
$33,137
$34,794
$34,675
$37,644
$25,767
$28,167
$41,840
$39,362
$41,525
$34,330
Current Borrowing
Other Current Liabilities
$30,000
$10,000
$29,613
$10,000
$29,222
$10,000
$36,328
$10,000
$43,431
$10,000
$43,030
$10,000
$42,627
$10,000
$42,219
$10,000
$41,809
$10,000
$41,395
$10,000
$40,977
$10,000
$25,556
$10,000
$25,132
$0
$40,000
$77,494
$70,556
$79,465
$88,225
$87,705
$90,271
$77,986
$79,975
$93,235
$90,339
$77,081
$59,462
Long-term Liabilities
Total Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$40,000
$77,494
$70,556
$79,465
$88,225
$87,705
$90,271
$77,986
$79,975
$93,235
$90,339
$77,081
$59,462
Paid-in Capital
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
Retained Earnings
($5,800)
($5,800)
($5,800)
($5,800)
($5,800)
($5,800)
($5,800)
($5,800)
($5,800)
($5,800)
($5,800)
($5,800)
($30,800)
Earnings
Total Capital
$0
$14,200
($5,577)
$8,623
($7,776)
$6,424
($7,735)
$6,465
($5,982)
$8,218
($3,556)
$10,644
$632
$14,832
$4,305
$18,505
$7,652
$21,852
$17,678
$31,878
$29,249
$43,449
$42,671
$56,871
$53,245
$42,445
$54,200
$86,118
$76,980
$85,930
$96,443
$98,350
$105,103
$96,491
$101,827
$125,112
$133,788
$133,952
$101,907
Net Worth
$14,200
$8,623
$6,424
$6,465
$8,218
$10,644
$14,832
$18,505
$21,852
$31,878
$43,449
$56,871
$42,445
Page 6