The Daily Perc - Sample Plan

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Copyright © Palo Alto Software, Inc., 1995-2007 All rights reserved.

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Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com

Table of Contents
1.0 Executive Summary.............................................................................................................................1 1.1 Objectives ...................................................................................................................................2 1.2 Mission........................................................................................................................................3 1.3 Keys to Success ........................................................................................................................3 2.0 Company Summary.............................................................................................................................3 2.1 Company Ownership .................................................................................................................4 2.2 Start-up Summary ......................................................................................................................4 2.3 Company Locations and Facilities ..........................................................................................7 3.0 Products ...............................................................................................................................................7 3.1 Product Description...................................................................................................................7 3.2 Competitive Comparison..........................................................................................................8 3.3 Sourcing ......................................................................................................................................8 3.4 Technology..................................................................................................................................9 3.5 Future Products ..........................................................................................................................9 4.0 Market Analysis Summary..................................................................................................................9 4.1 Market Segmentation..............................................................................................................10 4.2 Target Market Segment Strategy...........................................................................................12 4.2.1 Market Trends .............................................................................................................12 4.2.2 Market Growth .............................................................................................................13 4.2.3 Market Needs ..............................................................................................................13 4.3 Industry Analysis.......................................................................................................................13 4.3.1 Distribution Patterns ...................................................................................................14 4.3.2 Competition and Buying Patterns .............................................................................14 4.3.3 Main Competitors .......................................................................................................15 4.3.4 Industry Participants....................................................................................................16 5.0 Strategy and Implementation Summary..........................................................................................17 5.1 Strategy Pyramid .....................................................................................................................17 5.2 Value Proposition ....................................................................................................................18 5.3 Competitive Edge....................................................................................................................18 5.4 Marketing Strategy ..................................................................................................................18 5.4.1 Promotion Strategy.....................................................................................................19 5.4.2 Distribution Strategy ...................................................................................................19 5.4.3 Marketing Programs ...................................................................................................20 5.4.4 Positioning Statement ................................................................................................21 5.4.5 Pricing Strategy...........................................................................................................21 5.5 Sales Strategy..........................................................................................................................21 5.5.1 Sales Forecast ............................................................................................................22 5.5.2 Sales Programs ..........................................................................................................25 5.6 Strategic Alliances...................................................................................................................26 5.7 Milestones ................................................................................................................................26 6.0 Management Summary ....................................................................................................................27 6.1 Management Team .................................................................................................................28 6.2 Management Team Gaps .......................................................................................................29 6.3 Organizational Structure..........................................................................................................29 6.4 Personnel Plan.........................................................................................................................30 7.0 Financial Plan ....................................................................................................................................31 7.1 Important Assumptions............................................................................................................32
Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com

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Table of Contents
7.2 Key Financial Indicators ..........................................................................................................32 7.3 Break-even Analysis................................................................................................................33 7.4 Projected Profit and Loss .......................................................................................................34 7.5 Projected Cash Flow...............................................................................................................38 7.6 Projected Balance Sheet ........................................................................................................40 7.7 Business Ratios .......................................................................................................................41 7.8 Exit Strategy .............................................................................................................................43

Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com

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The Daily Perc
1.0 Executive Summary
The Daily Perc (TDP) is a specialty beverage retailer. TDP uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time-efficient way. TDP provides its customers the ability to drive up and order (from a trained Barista) their choice of a custom-blended espresso drink, freshly brewed coffee, or other beverage. TDP is offering a high-quality option to the fast-food, gas station, or institutional coffee. The Daily Perc offers its patrons the finest hot and cold beverages, specializing in specialty coffees, blended teas, and other custom drinks. In addition, TDP will offer soft drinks, fresh-baked pastries and other confections. Seasonally, TDP will add beverages such as hot apple cider, hot chocolate, frozen coffees, and more. The Daily Perc will focus on two markets: The Daily Commuter- someone traveling tofrom work, out shopping, delivering goods or services, or just out for a drive. The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. The Daily Perc will penetrate the commuter and captive consumer markets by deploying Drive-thru facilities and Mobile Cafes in the most logical and accessible locations. The Drive-thru facilities are designed to handle two-sided traffic and dispense customerdesigned, specially ordered cups of premium coffees in less time than required for a visit to the locally owned cafe or one of the national chains. In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as good publicity coverage and media support, we will be donating up to 7.5% of revenue to local charities based upon customer choices. The Daily Perc's financial picture is quite promising. Since TDP is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and TDP recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it and TDP's competition. For the purpose of this pro-forma plan, the capital expenditures of facilities and equipment are financed. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. The Daily Perc anticipates the initial combination of investments and long term financing of $425,000 to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially-sound growth based on customer request and product demand.
Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com

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causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share. Midwest.000. www.000 $5.075.000. Not for resale.000.000. publication.000 Sales Gross Margin Net Profit $3. Thirteen Drive-thru locations and four fully booked Mobile Cafes by the end of the third year.000.000. based on 13 Drive-thrus and four Mobile Cafes.000 $4. it is not unrealistic to put a market value of between $4 and $9 million on the company.428. Highlights $6.1 Objectives The Daily Perc has established three firm objectives it wishes to achieve in the next three years: 1.969 for the third year. The balance sheet estimates a Net Worth of $1. Net After-tax Profit above 15% of Sales.000 $0 FY 2002 FY 2003 FY 2004 1. The danger in this is that competitors would rise up and establish a foothold on a community before--or in the midst of--the arrival of The Daily Perc.000 $2.000 $1.The Daily Perc The Daily Perc chooses to become the Drive-thru version of Starbucks between the mountains. reproduction. 1995-2008 All rights reserved.paloalto. and South with a population of over 150. or distribution.623 and earnings of $860. such companies are trading in multiples of four to 10 times earnings. Inc. At present. 3. Knowing these risks--and planning for them--gives TDP the edge needed to make this scenario work. This is the preferred Exit Strategy of the Management Team. obtaining several million dollars through an initial public or private offering that would allow the company to open twenty to thirty facilities per year in all metropolitan communities in the North. Copyright © Palo Alto Software. and it is simple mathematics to multiply the success of TDP by the number of major and smaller metropolitan areas between the mountain ranges of the United States.000. 2. cash balances of $773. Gross Margin of 45% or more.com Page 2 .

Operate and grow at a profitable rate through sound economic decisions. consistent flavor. freshly brewed coffee. TDP uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time-efficient way. 1. Copyright © Palo Alto Software.visibility. The finest reputation .Provide customers the finest quality beverage in the most efficient time. 2.cheerful. Inc. skilled. promotion of our community mission of charitable giving. with each being as integral to our success as the next.paloalto. reproduction. The best products . articulate.0 Company Summary The Daily Perc is a specialty beverage retailer. Product Mission .The Daily Perc 1.freshest coffee beans. premium serving containers.Provide community support through customer involvement. The greatest locations . or distribution. Not for resale. 3. three of which are virtually the same as any food service business.com Page 3 . publication. and institutional coffee. TDP provides its customers the ability to drive up and order from a trained Barista their choice of a custom blended espresso drink.word-of-mouth advertising.3 Keys to Success There are four keys to success in this business. TDP is offering a high quality option to the fast-food. professional. Economic Mission . 4. www. 2.2 Mission The Daily Perc Mission is three-fold. high traffic pattern. cleanest equipment. 1. It is our fourth key--the Community Mission--that will give us that extra measure of respect in the public eye. Community Mission . The friendliest servers . or other beverage. 1995-2008 All rights reserved. convenient access. gas station.

000 $173.2 Start-up Summary The Daily Perc's start-up expenses and funding are shown in the tables and chart below. Not for resale. Table: Start-up Start-up Requirements Start-up Expenses Legal Office Equipment Drive-thru Labor (6 months) Drive-thru Finance Payment (6 months) Drive-thru expenses (6 months) Land Lease (6 months) Vehicle Finance (6 months) Administration Labor (6 months) Website Development & Hosting Identity/Logos/Stationary Other Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements $3.com Page 4 . The Daily Perc anticipates the need for operating capital for the first few months of operation.500 $35.000 $5.500 $4. or a minimum investment of $21. www.950 $65.1 Company Ownership The Daily Perc is a Limited Liability Corporation.900 $365. Each membership unit in the company is priced at $4. initial inventory and other one-time expenses. If all funds are raised.200 $3. pay deposits. with a minimum of five units per membership certificate.paloalto. All membership shares are currently owned by Bart and Teresa Fisher.300 $8.000 $5.000 $0 $131. 2. and Angel Investors. or distribution.400 $191. The majority of these funds will be used to build the first facility.The Daily Perc 2.670 Copyright © Palo Alto Software. and provide capital for six months of operating expenses. Inc. publication.250. friends. The plan calls for the sale of 100 membership units in the company to family members.250 per investor.700 $54. based on the pricing established in the financial section of this plan. 1995-2008 All rights reserved. reproduction.000 $12.520 $7.770 $25. with the intent of using a portion of the shares to raise capital.600 $4. Bart and Terri Fisher will maintain ownership of no less than 51% of the company.

1995-2008 All rights reserved.000 $90. or distribution.000 $150. reproduction.000 $180.000 $60.000 $120. Not for resale.com Page 5 .The Daily Perc Start-up $210.000 $30.paloalto. Inc. publication.000 $0 Expenses Assets Investment Loans Copyright © Palo Alto Software. www.

900 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Partner 1 Partner 2 Partner 3 Partner 4 Partner 5 Partner 6 Partner 7 Partner 8 Partner 9 Partner 10 Partner 11 Partner 12 Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital $9.270 ($173. or distribution.paloalto.400 $25.900 $365. Not for resale.500 $11.000 $10.500 $10.000 $11.400 $10.670 Copyright © Palo Alto Software.770 $0 $225. www.770 $191.500 $191.500 $10.000 $10. Inc.500 $97.770) $51.500 Total Capital and Liabilities Total Funding $191.The Daily Perc Table: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $173.000 $11.000 $11.500 $10.400 $0 $0 $140.000 $11.000 $10.670 $166.900 $365.000 $131.500 $0 $25. reproduction.com Page 6 . 1995-2008 All rights reserved. publication.

and more. TDP will offer select domestic soft drinks. 3.000+ on store side. Italian sodas. www. with exceptional attention to detail. the ability to custom order a coffee beverage that will be blended to their exact specifications. blending. Each of TDP's Baristas will be trained in the fine art of brewing. Through the website and certain locations. Copyright © Palo Alto Software. Easy entry with light if less than 30. and other confections. Inc. 1995-2008 All rights reserved.0 Products The Daily Perc provides its patrons the finest hot and cold beverages. frozen coffees. or distribution. domestic and Italian sodas. pastries. ball caps. publication. seasonal specialty drinks. whether at a Drive-thru facility or one of the Mobile Cafes. The Daily Perc will offer teas. Established retail shops in area. Visible from roadway.The Daily Perc 2. T-shirts and sweatshirts. fresh-baked pastries. Seasonally. and more. reproduction. In addition. and other baked goods. TDP will add beverages such as hot apple cider. The drive-thru in the Colonial Square Shopping Center will serve as the commissary for the first mobile unit. and serving the highest quality hot and cold beverages. 3. specializing in specialty coffees and custom blended teas. hot chocolate. The demographic and physical requirements for a Drive-thru location are: Traffic of 40. Not for resale. Besides coffees. frozen coffee beverages.1 Product Description TDP provides its customers.com Page 7 .paloalto. Twelve more drive-thru facilities will be placed throughout the metropolitan area over the next three years. TDP will market premium items such as coffee mugs.3 Company Locations and Facilities The Daily Perc will open its first drive-thru facility on Manchester Road in the Colonial Square Shopping Center.000 cars.

or distribution. Locally owned and operated cafes.The Daily Perc 3. The Daily Perc's primary competition will come from three sources: 1. Not for resale. wait in a long line. or other institutions.com Page 8 . or at one of the Mobile Cafes. 3. 3. Inc. and clean up the mess left by a previous patron. National coffee houses such as Starbucks and Panera. 2. Coca-Cola. TDP also has wholesale purchasing agreements for other products with Major Brands. Fulfillment equipment suppliers include PJ's Coffee. Talbert Ford. and Retail Image Programs. and drive off. www. Al's Famous Filled Bagels. reproduction. The Drive-thru facilities are manufactured by City Stations and the Mobile Cafes are manufactured by Tow Tech Industries. order their beverage.2 Competitive Comparison The Daily Perc considers itself to be a player in the retail coffee house industry. Copyright © Palo Alto Software. This separates TDP from the competition in that its customers won't need to find a parking place. City Stations. TDP customers can drive or walk up. 1995-2008 All rights reserved.paloalto. and Royal Distribution. jockey for a seat. The second differentiator is The Daily Perc's focus on providing a significant benefit to the community through a possible 7. The Daily Perc's computer equipment and Internet connectivity is provided by NSI Communications. schools. it knows that competition for its products range from soft drinks to milk shakes to adult beverages. However. L&amp.5% contribution to customer-identified charities. Fast food chains and convenience stores.N Products. Big Train.3 Sourcing The Daily Perc purchases its coffees from PJ's Coffee. receive and pay for the beverage. publication. Two things will make The Daily Perc stand out from all its competitors: The Daily Perc will be providing products in the most convenient and efficient way available--either at one of the two-sided Drive-thru shops.

During summer months. The Daily Perc's primary desire will be to listen to its customers to ascertain what they are looking for most. two-sided. and provide it. 4.The Daily Perc 3. and other cold beverages.someone traveling to or from work. or just out for a drive.paloalto. 3. TDP will subsidize lower hot beverage sales with frozen coffee drinks. Inc. 2. TDP will also have special beverages during holiday seasons.0 Market Analysis Summary The Daily Perc will focus on two markets: 1.someone who is in a restricted environment that delivering goods or services. An architectural exterior diagram of the Drive Thru building can be found on the following page (removed from this sample plan). such as Egg Nog during the Christmas season and Hot Apple Cider in the Fall. corporate campuses.5 Future Products As seasons change. publication. The Daily Perc has also designed state-of-the-art Mobile Cafes that will be deployed from time to time on high school and college campuses. as well as soft drinks. out shopping.com Page 9 . reproduction. 1995-2008 All rights reserved. The Captive Consumer . www. or where refreshments stands are an integral part of the environment. does not allow convenient departure and return while searching for refreshments. or distribution. TDP is using state-of-the-art.4 Technology The Daily Perc's delivery system is based on its technology. and at special events. The Daily Commuter . Not for resale. Copyright © Palo Alto Software. Drive-thru facilities to provide convenience and efficiency for its clientele. The Daily Perc will be offering products that will enhance sales and satisfy its customers' desires.

000 commuters in the metropolitan area.582 locations at which we could place a Mobile Cafe.700. The following chart and table reflect the potential numbers of venues available for the Mobile Cafes and what growth could be expected in those markets over the next five years. Captive Consumers would include those who are tethered to a campus environment. The Daily Perc is showing that there are a total of 2. and special events--such as carnivals. For the captive consumer. fairs or festivals--where there is an admission price to enter the gate.500. TDP has the Mobile Cafe. giving us an additional 1. or in a restricted entry environment that does not allow free movement to and from. but in many cases. Examples would include high school and college campuses. multiply the total number of venues in the year by 1. TDP has two different delivery systems. Inc. special events.com Page 10 .The Daily Perc 4. and various charitable organizations. hospital campuses.700 corporate facilities that house more than 500 employees. or distribution. or where refreshments are an integral part of the festivities. TDP has the Drive-thru coffee house. It can also be assumed that these commuters do not make only one purchase in a day. or total of 2.1 Market Segmentation The Daily Perc will focus on two different market segments: Commuters and Captive Consumers. but regarding meetings and project deadlines. and corporate campuses where the same time constraints are involved. 1995-2008 All rights reserved. There are over 1. To access both of these markets. or those out on their lunch break. Copyright © Palo Alto Software." The Daily Perc's greatest concentration will be on commuters heading to or from work. in the first year.paloalto. but exiting would mean another admission fee. reproduction. and others. That would equate to a Captive Consumer potential of 2. For a conservative estimate of the number of Captive Consumers this represents.000.000 prospective customers. The chart reflects college and high school campuses. Not for resale.582 venues at which we might position a Mobile Cafe. vacationers. as well as visitors. A segment that is not reflected in the chart (since it would skew the chart so greatly) is the number of corporate campuses in the metropolitan area. two and even three beverage purchases. As an example. publication. Commuters are defined as any one or more individuals in a motorized vehicle traveling from point "A" to point "B.000. where there is limited time between classes.582. there are well over 2. For the commuters. Similarly. www.

1995-2008 All rights reserved.00% 0. www.00% 0.25% 2.10% 80 88 77 99 43 362 100 849 2002 81 88 77 99 44 369 100 858 2003 82 88 77 99 45 376 100 867 2004 83 88 77 99 46 384 100 877 2005 84 88 77 99 47 392 100 887 CAGR 1.23% 0.00% 1.com Page 11 . or distribution. publication.paloalto.01% 0.00% 2. Inc.The Daily Perc Market Analysis (Pie) Public High School Campuses Private High Schools College Campuses Golf Courses Special Events Non-Profits w/$500K+ Budgets Hospital Campuses Table: Market Analysis Market Analysis 2001 Potential Customers Public High School Campuses Private High Schools College Campuses Golf Courses Special Events Non-Profits w/$500K+ Budgets Hospital Campuses Total Growth 1% 0% 0% 0% 3% 2% 0% 1.10% Copyright © Palo Alto Software. reproduction. Not for resale.

these units will do what they were designed to do. such as Gloria Jeans and others. arrangements will be made to visit a high school. tournaments. Copyright © Palo Alto Software. The Daily Perc will take the cafe to the customer! By using the community support program TDP is instituting. reproduction..S.2 billion in global sales are now rushing kids to soccer and basketball games. painless way for the institution to gain a financial reward while providing a pleasant and fulfilling benefit to their students or employees. or a corporate campus once or twice a month (Even visit these facilities for special games. drive-thru environment at a price that is competitive to the national coffee houses.1 Market Trends Nearly twenty years ago. And. Yet. we have also become more rushed for time during that same period. recruiting events. and people began to have coffee tastings..paloalto. www. specially blended product in a convenient. a portion is returned to the high school or college.com Page 12 . It becomes a tremendous. or distribution. To penetrate the target market for the Mobile Cafes. Those same consumers who helped push Starbucks to $2. publication. Lately. along came Starbucks .The Daily Perc 4.. or corporate open houses). but no time to linger in a cafe. and excellent taste in a choice of beverage. for every cup or baked good sold. 4. There had always been specialty coffee stores. or to get to the next soccer game. specially blended coffee each morning. The market is primed for the introduction of a company that offers a superior quality. Not for resale. but people began to buy espresso machines for their homes and offices. the quintessential bastion of the upwardly mobile professional who wanted to take control over how their beverage would taste and smell.2 Target Market Segment Strategy TDP's target market is the mobile individual who has more money than time.00 for these sub-standard beverages. Inc. they still have the desire for that refreshing. However. a trend towards more unique coffees began to develop in the U.2. By locating the Drive-Thrus in high traffichigh visibility areas. college campus. inevitably. poorly blended cappuccinos in flavors such as french vanilla or mocha. running to the grocery and trying to get to work on time and back home in time for dinner . Then espresso bars began to appear and. we've seen the introduction of beverage dispensers at convenience stores that spit out overly-sweet. 1995-2008 All rights reserved. and consumers are paying as much as $3.. this unique--and abundant--consumer will seek The Daily Perc out and become a regular guest.

2 Market Growth According to industry statistics. Even general coffee sales have increased with international brands such as Folgers. the national leader. 4. as with many metropolitan areas in the country.3 Market Needs The United States is a very mobile society. there is a migration away from the cities. However. Yet.000 retail outlets by 2005. www. Inc. Copyright © Palo Alto Software. half of whom are too old. Statistically. The largest national brand for retail coffee outlets achieved $2.S. over the past five years. and Safari coffee reporting higher sales and greater profits.paloalto. and disposable income. The segment of that market we are targeting is the commuter and that number is increasing. That is the coffee consumer market.5 million commuters driving to and from work each day in our market. It has only gotten worse. or distribution.3 Industry Analysis The coffee industry has grown by tremendous amounts in the U. There are over 250 million men. That gives The Daily Perc a significant daily target for its products. Those numbers are growing by 6% per year. And that mobility has created a unique need in our society.2 billion in sales in 2000 with 3. women and children in America. Starbucks plans to increase revenues to over $6. 4. Not for resale. too young. a desire for quality.2.com Page 13 . As much as they would like the opportunity to sit in an upscale coffee house and sip a uniquely blended coffee beverage and read the morning paper. they don't have the time. publication.000 retail outlets. or too poor to drive an automobile. In the metropolitan area. It is estimated that there are well over 2. America is definitely a coffee drinking country and the coffee industry is reaping the rewards. 1995-2008 All rights reserved. we became a nation that thrived on the further freedom of going where we wanted when we wanted. reproduction. had revenues in fiscal 2000 of $2. They are anticipating opening 7. Maxwell House.000 more outlets in the next five years and increasing revenues to over $6 billion. Our market is made up of consumers who have busy schedules. the consumption of coffee and flavored coffee products is growing rapidly. there are more licensed vehicles in the country than people. Starbucks.2 billion. With the introduction of the automobile. at least 50% of those are coffee drinkers. they still have the desire for the uniquely blended beverage as they hurry through their busy lives.The Daily Perc 4.6 billion from 10. That is an increase of 32% over Fiscal 1999.2.

The consumers in this environment are looking for a quick. They pay for their gas and they are back on the road to work. Patrons of the fast food restaurants or the convenience stores are just the opposite. 1995-2008 All rights reserved. Competitors to the Mobile Cafes on campuses would include fast food restaurants-assuming they are close enough to the consumer that they can get there and back in the minimal allotted time. are looking for the "experience" of the coffee house. class. reproduction. masks an average product at a premium price. local coffee houses--or cafes--with an established clientele and a quality product. vending machines. such as Starbucks and Panera. or other activity. as long as it's quick. slow paced environment. or to one of the local cafes. Not for resale. and company or school cafeterias. quality refreshment that will allow them to purchase the product and return to work. www.com Page 14 . smell the fresh pastry.paloalto. However. They want the ability to "design" their coffee. There is a dramatic distinction among the patrons of each of these outlets. Patrons to a Starbucks. The customer comes in to a beautifully decorated facility.The Daily Perc 4.1 Distribution Patterns The cafe experience comes from the Italian origins of espresso. fairly priced. Although they have the desire and good taste to know good from bad. and read the local paper or visit with an acquaintance.3.3. It is a duplication of the same delivery process as currently exists in Europe. It is a relaxing. time is more valuable to them. listen to the soothing Italian music. They have no time for idle chatter and are willing to over-pay for whatever beverage the machine can spit out. They are the national specialty beverage chains. the proliferation of cafes in the United States proves the viability of the market. convenient. or distribution. Inc. Attendees to such events expect to pay a premium price for a quality product. more often than not. 4. surrounded by wondrous aromas and finds himself involved in a sensory experience that. and convenience stores. Copyright © Palo Alto Software. publication. Competitors to the Mobile Cafes at events such as festivals and fairs would include all the other vendors who are licensed to sell refreshments. fast food restaurants.2 Competition and Buying Patterns There are four general competitors in The Daily Perc's drive-thru market.

the national leader. publication. we have found that there are none in the metropolitan area. Inc. 1995-2008 All rights reserved. However. Any local cafe has a customer base that is dedicated and highly educated. The competitive edge The Daily Perc has on the local cafes is based on the attributes of: Drive-thru Service Supply Discounts Mobile Cafe Consistent Menu Community Benefit Quality Product Drive-thru Coffee Houses: There is not a drive-thru specialty beverage retailer with significant market presence in the central United States. www. there is still significant competition from traditional coffee houses and other retailers.2 billion. National Chains: Starbucks. The Daily Perc will be the first double-sided. or distribution. direct competitors. drive-thru coffee house in the metropolitan area. TDP knows the quality and pride that the local cafe has in the product purchase by their customers.6 billion from 10. had revenues in fiscal year 2000 of $2.3. Panera had revenues of $151 million from corporate owned stores and $350 million from franchised locations in fiscal year 2000. This fiscal year revenue was an increase in 28. The only company with similar depth to that of The Daily Perc Copyright © Palo Alto Software.paloalto.The Daily Perc 4.9% on a per store basis versus fiscal year 1999.3 Main Competitors When measuring head-to-head. The quality of beverages served at an established cafe will surpass any of the regional or national chains.000 retail outlets by 2005. reproduction. That is an increase of 32% over fiscal year 1999. Not for resale.com Page 15 . The Daily Perc believes it has a significant competitive advantage over these chains because of the following benefits: Drive-thru Service More Substantial Customer Service Community Benefit Mobile Cafes Selection Higher Product Quality Local Cafes: The toughest competitor for The Daily Perc is the established locally owned cafe. Starbucks plans to increase revenues to over $6.

but never duplicated. locations. In the drive-thru specialty beverage market. TDP believes that the corporate missions and even the organizational design will be imitated. due to: Mobile Cafes Consistent Menu Community Benefit Quality Product Supply Discounts Valued Image Greater Product Selection Fast Food and Convenience Stores: These are two industries where The Daily Perc will experience a certain level of competition. publication. others will try to follow. Quikava operates predominantly on the East Coast and in the Upper Great Lakes. and Caffe Diva. and corporate missions to ensure that it remains a leader in the specialty beverage industry.4 Industry Participants There is only one national Drive-thru coffee franchise operation in the U. or distribution. www. Panera and locally owned and operated coffee shops or "cafes. Quikava has limited its corporate footprint to the East Coast and the Great Lakes Region. TDP will constantly evaluate its products. and even Quikava. Java Espress.S. a wholly owned subsidiary of Chock Full 'o Nuts. Java Drive. The Daily Perc has a competitive edge over the smaller retailers. Gloria Jean's. 4. However. However. Caribou Coffee. However.paloalto. The national fast food chains and national convenience store chains already serve coffee. other players in the premium coffee service industry would include Starbucks. 1995-2008 All rights reserved. TDP knows the quality of our products." Copyright © Palo Alto Software. Not for resale. TDP knows that within the specialty coffee and tea market. reproduction. and that is a subsidiary of Chock Full 'o Nuts called Quikava. Other competition: The Daily Perc knows that once it has entered the market and established a presence. and some breakfast foods. Inc. gives it a competitive edge over fast food and convenience stores. along with the addition of domestic soda and the ease of drive-thru. have smaller local drive-thru chains such as Caffino. Crane Coffee. The national fast food chains obviously know the benefits and value to customers of drive-thru. The addition of domestic soda sales for these stores is a large part of revenue. The East and West coasts. Sunrise Coffee. and even some Mountain and Midwest states.com Page 16 .The Daily Perc is Quikava. the quality of the products sold will be much greater than what can currently be purchased at fast food and convenience stores. service. with any legs.3. soda.

convenient accessibility. www. publication. TDP is pricing its product competitively and training the production staff to be among the best Baristas in the country. or distribution. Provided the customer with a more convenient method for obtaining their 3. Demonstrated how TDP appreciates their loyalty and patronage by donating desired product.The Daily Perc 5.0 Strategy and Implementation Summary The Daily Perc will penetrate the commuter and captive consumer markets by deploying Drive-thru facilities and Mobile Cafes in the most logical and accessible locations. as well as positive public and media support. TDP will involve the customers in community support efforts by explaining that a portion of their purchase price will be donated to a charity of their choosing.5% of revenue from each cup sold in individual Drive-thrus to the charities of the customers' choice. TDP has: 1. Then.1 Strategy Pyramid The Daily Perc's strategy is to show people that TDP has an excellent product. 1995-2008 All rights reserved. specially ordered cups of specialty beverages in less time than required for a visit to the locally owned cafe or one of the national chains. through coupons and display ads at the locations. To execute on this strategy. Not for resale. Provided a customer with a quality product at a competitive price. reproduction. and with a community benefit. 2.com Page 17 . high quality beverage or baked item while commuting to or from work or school. In addition to providing a quality product and an extensive menu of delicious items. The Drive-thrus are designed to handle two-sided traffic and dispense customer-designed. TDP is placing the Drive-thrus and Mobile Cafes at easily accessible locations throughout the metropolitan area. In so doing. The Daily Perc could be donating up to 7. Inc. money to their personal cause. mobile people whose time is already at a premium. to ensure customer awareness and loyalty. 5.paloalto. Copyright © Palo Alto Software. The Daily Perc has identified its market as busy. but desire a refreshing.

reproduction. having wasted little time in the process.paloalto. assuming they have sufficient time to linger over the cup. www. exit the vehicle. stand in line to order. charities and corporations to provide significant free publicity because of its community support program. clean up the previous patron's mess. The Daily Perc concept is that the customer drives up.4 Marketing Strategy First and foremost. Not for resale.. The Daily Perc is also providing a significant community value to patronizing TDP. places the order. Copyright © Palo Alto Software.com Page 18 . wait for the beverages ahead of him to be produced. For every purchase a customer makes from us. The Daily Perc will be implementing a low cost advertisingpromotion campaign which could involve drive-time radio. 5. TDP provides a high quality product at a competitive price in a Drive-thru environment that saves time. but not much more. receives a high quality product at a competitive price. 1995-2008 All rights reserved. or on a shopping expedition. The Daily Perc will rely on building relationships with schools. In addition. which will be a branding feature of its own. Inc.The Daily Perc 5.2 Value Proposition The Drive-thru facilities provide a substantial value proposition in that the customer does not have to find a parking place. or distribution. or while they are out for lunch. then enjoy their coffee . The Daily Perc will be placing its Drive-thru facilities in locations of very high visibility and great ease of access. By giving charitable contributions to these institutions.. the media will be more than willing to promote the charitable aspects of TDP and provide the opportunity for more exposure every time TDP writes a check to another organization.3 Competitive Edge The Daily Perc's competitive edge is simple. They will be located on high traffic commuter routes and close to shopping facilities in order to catch customers going to or from work. Word of mouth has always proven to be the greatest advertising program a company can instill. pay a premium price for average product. The Drive-thrus are very unique and eye-catching. they will get the word out to their studentsfacultyemployeespartners about TDP. publication. and drives away. find a place to sit.5% of the sale to the local charity selected by the customer. 5. TDP will donate up to 7.

can be reached and those who didn't have the time to stop off that morning at their favorite Daily Perc.1 Promotion Strategy The long-range goal is to gain enough visibility to leverage the product line into other regions and generate inquiries from potential inventors. reviews. in the start-up phase. Not for resale. As with the school fundraising program.000 per month for the next year intended to generate awareness of editors and product information insertions. However. minimize--or even eliminate--the need for a publicist. The Daily Perc will also make arrangements for the Mobile Cafes to be at as many schools. those who come in from areas where TDP may not have a Drive-thru facility. etc.The Daily Perc 5. publication.2 Distribution Strategy The Daily Perc will locate Drive-thru facilities in high traffic areas of the city where it knows working commuters will be passing. The Daily Perc will experiment with different stations. To do that.4. so that new customers. Copyright © Palo Alto Software.000 per month concentrating on drive time radio. businesses. The Daily Perc needs: Public relations services at $1. TDP expects the facilities and signage to be a substantial portion of our advertising. www. TDP needs to let people know where to look for the facilities. 1995-2008 All rights reserved. Advertising at $1. perhaps. keeping careful track of results. It is anticipated that the school fundraising program will generate a fair amount of publicity on its own and will. reproduction.paloalto. or distribution. Inc.com Page 19 . and events as possible every year.4. 5.

www.000 to local schools and charities.The Daily Perc 5. with the majority of the advertising budget being spent on drive time radio. so that it is easy to recognize. Papo is already an awarding winning logo. As in the previous years. TDP has worked closely with the manufacturer to make the building distinctive. and other charitable events. Papo won in the New Artist Category of the 2001 Not Just Another Art Director's Club (NJAADC).4. The Fund-raising and Catering Trailer: The Mobile Cafe will be a key marketing tool.000 to local Copyright © Palo Alto Software. festivals. corporations and other entities. publication. That is why the use of the sun lends itself to being the corporate identifier. TDP will continue to use publicity as a key component of the marketing program. Distinctive Buildings: TDP is using diner style buildings for its Drive-thru facilities. so most of the funds will be spent on a good publicist who will get the word out about the charitable contribution program and how it works in conjunction with the website. Not for resale. The Daily Perc will negotiate visits with the Mobile Units at schools. TDP also believes that word-of-mouth advertising and free beverage coupons will be better ways to drive people to the first and second locations. since TDP could be contributing over $70. In the second year. Advertising and Promotion: In the first year. The Daily Perc plans to spend moderately on advertising and promotion. The exposure these units will provide cannot be measured in dollars. The sun touches every human being every day. Obviously. In the case of schools and certain corporations. In the third year. TDP will get substantial publicity from the donation of nearly $200. The Daily Perc will double its advertising and promotion budget.3 Marketing Programs Distinctive Logo: "Papo" is a very happy and conspicuous sun. a portion of all sales made while on their campus could go to a program of their choice. with particular emphasis on announcing these openings and all the other locations. TDP wants to touch every customer every day. after the opening of the first Drive-thru. since it will need to promote several locations. hospitals. The Daily Perc is increasing the budget.com Page 20 . The similarities between the Mobile Cafes and the Drive-thru facilities will be unmistakable. This would not be considered a serious advertising budget for any business. The organization would promote its presence to their constituency and encourage them to frequent the Drive-thru establishments so that their charitable cause is nurtured. This will give those patrons an opportunity to taste the products and become a regular customer of the Drive-thru facilities. reproduction. but TDP feels the exposure will come from publicity and promotion. The Mobile Cafes will also be appearing at community events such as fairs. Inc.paloalto. 1995-2008 All rights reserved. or distribution. and functional. with the program beginning in September. The sun is one of infinite mental pictures.

1995-2008 All rights reserved. publication. but with the value-added feature of immediate.4. or distribution. TDP will also develop window sales techniques such as the Baristas asking if the customer would like a fresh-baked item with their coffee. 5.4. but desire a refreshing.paloalto. www.The Daily Perc schools and charities. including posting specials on high-profit items at the drive-up window. reproduction. mobile people whose time is already at a premium. 5.4 Positioning Statement For busy.com Page 21 .5 Pricing Strategy The Daily Perc pricing will be comparable to the competition. 5. Not for resale. drive-thru service and convenience. The Baristas will also hand out free drink coupons to those who have purchased a certain number of cups or something similar. Inc. high quality beverage or baked item while commuting to or from work or school.5 Sales Strategy There will be several sales strategies put into place. Copyright © Palo Alto Software.

TDP expects to see 264. The third year.000 tickets in the second year and 2. TDP is building in a certain amount of ramp-up for each facility while commuters become familiar with its presence.000.1 Sales Forecast In the first year.177. In the second year. Not for resale.000 tickets each. TDP expects all three mobile units to generate 150. The Daily Perc will deploy one mobile unit in the fourth quarter of the first fiscal year. The Daily Perc will add two more Drive-thrus and.5. The Drive-thrus will generate 288. where it will sell "The Daily Perc" t-shirts. TDP is not expecting this to be a significant profit center. TDP will add an additional nine Drive-thru facilities. TDP expects revenues from this portion. In the third fiscal year. publication. The first location will open in the third month of this plan and be fully operational beginning on the 1st day of September. TDP expects this mobile unit to generate 10.402. www.paloalto. to begin in the second fiscal year. The Daily Perc will deploy a second and third mobile unit.000 per month in the third fiscal year. with the addition of such a significant number of outlets. 1995-2008 All rights reserved. to reach as much as $3. Inc. The Daily Perc is also showing revenue from the commerce portion of our website. at an average ticket price of $2.000 mobile unit tickets. The addition of these facilities will increase the revenue from Drive-thrus with a total of over 1. In the second quarter of the second fiscal year.992.000.000 tickets in the first year of operation. Copyright © Palo Alto Software.as a function of developing our brand and building product awareness.45. with an additional fourth mobile unit deployed. pre-packaged coffee beans.000 tickets in the third.000 tickets in the second year. The Daily Perc anticipates having two Drive-thru locations in operation. but it is an integral part of the marketing plan -. in the third year.675.The Daily Perc 5. Total first year unit sales should reach 298. and other premium items. sweatshirts. insulated coffee mugs. we will see unit sales increase to 2. The second year will see unit sales increase to 1. In addition to the Drive-thrus.com Page 22 . reproduction.400. The second Drive-thru will open six months later. or distribution.

000 $1.000.000 $40.000 $60. #9.000 $30.000 $90.000. Inc.000.000 $20.paloalto. or distribution. & #13 Mobile Cafe #1 $0 FY 2002 FY 2003 FY 2004 Copyright © Palo Alto Software.com Page 23 .000.000 $0 Jul Sep Nov Jan Mar May Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8. publication.000 $50.000 $3.The Daily Perc Sales Monthly $100. #9. www. reproduction.000 $5.000 $70. Not for resale.000 $80. & #10 Drive-thrus #11. #12. #12.000 Drive-thrus #8. & #13 Mobile Cafe #1 Sales by Year $6. & #10 Drive-thrus #11.000.000 Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 $4. 1995-2008 All rights reserved.000 $10.000 $2.000.

400 FY 2003 $1.00 $0.59 $0.59 $0.95 $1.61 $0.50 $2.000 $0 $0 $0 $0 $150.000 325.000 45.61 $633.300 $168.750 $585.95 $1.750 $633.55 $2.90 $2.000 300.750 $168.000 3.177.000 450.389 $158.00 $0. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Total Sales Direct Unit Costs Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 202. & #10 Drive-thrus #11.300 $168.500 $0 $0 $0 $0 $558.348.The Daily Perc Table: Sales Forecast Sales Forecast FY 2002 Unit Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8.61 $0.00 $0.900 FY 2003 $0.61 $0.90 $1.55 $2.000 $522. reproduction. & #10 Drive-thrus #11.300 $168.95 $1. #12.500 $438. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8.00 $2. publication. #9.00 $0.00 $0. #12.000 325.90 $1.90 $1.00 $0.000 0 0 0 0 60.000 325.400 1.50 $2.402 FY 2002 $1.022.50 $11.59 $0. #12.00 $0.61 $0. & #10 Drive-thrus #11.950 FY 2004 $0.400 $2.000 $877.55 $12.00 $0.500 $877. or distribution.489 0 0 0 0 0 0 10.95 $2.500 $112.59 $0. www.90 $1.50 $2.95 $1. 1995-2008 All rights reserved. #9.00 $0.043 FY 2002 $0.55 $2.154 $0 $0 $0 $0 $0 $0 $24.000 2.00 $375.61 $0.59 $0.000 0 2.992.000 275.90 $1.000 0 0 0 0 298.000 $570.90 $1.85 $0. Inc.000 225.00 FY 2004 325.59 Copyright © Palo Alto Software.00 FY 2003 300.000 300.64 $0. #9.750 $633.95 $1.500 $0 $26.000 FY 2004 $1.000 $112.300 $36.64 $0.85 $1.000 45.com Page 24 .000 $6. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Total Unit Sales Unit Prices Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8.000 66.90 $1.95 $1.45 $0.00 $0.000 66.95 $1.paloalto. Not for resale.000 66.00 $570.000 150.500 $285.000 66.750 $633.913 85.00 $0.000 450.

The Daily Perc Drive-thrus #8. but equally important are the contacts and opportunities made available for deploying a Mobile Cafe--or even two--at a special event. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Subtotal Direct Cost of Sales $0.00 $0.Because of the need to sell the Mobile Cafe services.com Page 25 .00 $0. at the introduction of each season.500 $0 $0 $0 $0 $36.61 $0.59 $0. #12. #12.500 $132.450 $0 $15. Each quarter.59 $0.59 $0. and Specialty Beverage Associations.5.940 $38.000 $265. Food Service Associations. we will be giving away drink coupons as door prizes or awards.At fundraising events for schools and corporate events. This encourages the person to come in for their free beverage and bring a friend or buy a baked item or a package of our premium coffee.59 $0. & #10 Drive-thrus #11.750 $191.750 $191. www. or distribution.750 $177.59 $6. Copyright © Palo Alto Software.00 $0. publication.paloalto.713 $0 $0 $0 $0 $0 $0 $6.977 $183. Chamber of Commerce and Professional Memberships .61 $0.2 Sales Programs Corporate Tasting Events .TDP plans to host tasting events for customers on a quarterly basis.940 $38. The exposure and education that these organizations provide is outstanding. & #10 Drive-thrus #11.500 $265.600 $27.750 $38.59 $0. 1995-2008 All rights reserved. TDP will be an active participant in the Regional Chamber.61 $0. Not for resale.750 $91.350 $191.940 $38.500 $1.61 $6.00 $0.64 $0.600 $732.864 $54.000 $183. The Drive Thru units will also be distributing coupons for special menu items or new product introductions.783. Drink Coupons .750 $191. #9.00 $0.61 $0. #9. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Direct Cost of Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8. reproduction. Inc.50 $129.000 $167.450 $27. TDP will be adjusting its menu to reflect the changes in the flavors served.400 $0 $0 $0 $0 $190. local Chambers of Commerce.940 $19.010 5.50 $0.61 $0.00 $0.

900 $105.000 $2. our website launch and subsequent visitor interaction function. as well as our alliances with the Mobile Cafe and Drive-thru facility manufacturers and consumable products providers. Admin.200 $316.6 Strategic Alliances The Daily Perc has and will continue to depend heavily on our alliance with PJ's Coffees. Copyright © Palo Alto Software. 12. since they are providing exposure to our products and we are providing them a financial benefit.500 $105.000 $100. and other key markers that will help us measure our success in time and accomplishment. Not for resale. Admin.800 $316.400 $21.450 $12.000 $45.400 $172. 9 and 10 Open Drive-thrus 11. Inc. COO/Dir. COO COO CFO CFO Department Mktg. Admin. launching the first Drive-thru and subsequent Drive-thrus. we will always be looking for better quality products.122. Mgnt. The Daily Perc also defines our break-even month.200 $176. However. and 13 Expand to Kansas City Open First Franchise Initiate Exit Strategy Totals Start Date 6/1/2001 7/15/2001 12/1/2001 12/15/2001 3/1/2002 5/1/2002 4/15/2002 7/15/2002 12/15/2002 12/1/2002 4/1/2003 4/15/2003 4/15/2003 7/15/2003 10/15/2003 1/15/2004 1/15/2004 10/31/2003 10/1/2004 End Date 8/15/2001 8/31/2001 12/31/2001 2/1/2002 3/30/2002 6/1/2002 6/1/2002 9/1/2002 2/1/2003 2/1/2003 5/15/2003 6/1/2003 6/1/2003 9/15/2003 12/15/2003 3/1/2004 6/1/2004 9/1/2004 1/1/2005 Budget $5. non-profit organizations.com Page 26 . 1995-2008 All rights reserved. or more timely delivery from other potential alliances.400 $0 $105. or distribution. more favorable pricing.943 $45. Mktg.400 $86. Finance Mgnt. Admin. 5. Admin. We also consider the schools. www.The Daily Perc 5.600 $105.paloalto. Table: Milestones Milestones Milestone Light Website Open First Drive-thru First Break-even Month Open Second Drive-thru Receive First Mobile Unit Launch Website Voting Open Third Drive-thru Receive Second and Third Mobile Units Open Fourth Drive-thru Install Point-of-Sale System Occupy Headquarters Open Fifth Drive-thru Receive Fourth Mobile Unit Open Drive-thrus 6 and 7 Open Drive-thrus 8. reproduction. MIS Admin. Admin. Admin.000 $105.400 $86. Mgnt. publication. COO/Dir. Mgnt.450 $210. Finance Admin. and even corporations who host one of our Mobile Cafes as a strategic alliances. as well as deployment of the mobile units. Admin.043 Manager COO COO COO COO COO COO COO COO COO CIO COO COO Equip.7 Milestones The Milestone table reflects critical dates for occupying headquarters.

and a facilities manager to oversee the maintenance and stocking of the Mobile Cafes. reproduction.com Page 27 . as well as overseeing the maintenance and replacement of equipment in the Drivethru facilities. At the zenith of this three-year plan. www. Inc. there will be four "Executive" positions: chief operating officer. or distribution. publication. and director of marketing. 12. There is no intention of having a top-heavy organization that drains profits and complicates decisions. 1995-2008 All rights reserved. chief information officer. Not for resale. chief financial officer.paloalto. Overhead for management will be kept to a minimum and all senior managers will be "hands-on" workers.0 Management Summary The Daily Perc is a relatively flat organization. and 13 Open Drive-thrus 6 and 7 Open Fifth Drive-thru Install Point-of-Sale System Receive Second and Third Mobile Units Launch Website Voting Open Second Drive-thru Open First Drive-thru 5/31/20011/30/200 5/31/2002 1/30/2005/31/2003 1/30/2005/31/20041/30/2004 6.The Daily Perc Milestones Open First Franchise Open Drive-thrus 11. Copyright © Palo Alto Software. such as district managers for every four Drive-thrus. There will be other mid-management positions.

Some merchandising experience is a welcome addition. Over those four years.) that ran in the black within three months of inception. Chuck has been working for Nabisco. for the past four years. Inc. Bart has a highly entrepreneurial spirit and has already started a company from scratch (NetCom Services. 1995-2008 All rights reserved. leadership. merchandising. www. Chuck will use his knowledge in conjunction with the rest of the team to establish inventory and warehouse policies. Copyright © Palo Alto Software. Barton Fisher to perform the duties of chief operating officer. Mary has been the business administrator of Jones International. she will be working with Mr. publication. Mary has written numerous corporate policies and directed the financial reporting and reconciliation. and desire with three years of research in speciality drinks and drive-thru service. Mr. Working with the mobile and drive-thru Baristas will be integral to his task as well. Jones is a $4 million company that retails vitamins and other betterment products. Inc. Mary Jamison has been selected to fulfill the position of bookkeeper and office manager. as a service representative for over ten years. Guy has over five years in the business-to-business sales realm. knowledge of ergonomics and health issues would be important. and TDP knows that Bart is the individual who will get the company out of the gate and up to full speed for a long time to come.The Daily Perc 6. Tony Guy has been selected to perform the duties of corporate events coordinator on a part time basis. The warehouse manager is responsible for inventory of all products sold by The Daily Perc. The Daily Perc considers Mary to be a great addition to the team when she becomes available in November of 2001. or distribution. reproduction. and paid off all initial debt within six months. Inc. Upon leaving NSI in April 2001. Combine his experience. Chuck's domain will be the headquarters. and inventory control is a welcome addition to The Daily Perc team. Last year he was responsible for over $250.com Page 28 . Also. the trailers. and the drivethrus--ensuring that minimum and maximum inventories are maintained. Ms. Until that time. Training in the First In First Out (FIFO) style of inventory control is a requirement.000 in sales of promotional material to corporate and educational clients. Mr. Chuck McNulty has been selected to fulfill the position of warehousetrailer manager. Inc. Mr. the company had again paid off all debt and was running a profit monthly. His experience in account services. Not for resale. Fisher on a part-time basis to help establish the corporate accounts and policies.paloalto.1 Management Team The Daily Perc has selected Mr.

Sales and Marketing will handle the promotion and scheduling of the Mobile Cafes.2 Management Team Gaps The Daily Perc knows that it is going to require several quality management team members over the next three years. By the beginning of the third year. the training of the Baristas. They are: a chief financial officer. reproduction. who will be manning the Drive-thrus and Mobile Cafes and blending the beverages for the customers. and a director of marketing. as the need arises. and General and Administrative. and other basic. Sales and Marketing. They will be required to visit between locations and possibly even join administrative personnel on training or marketing travel.The Daily Perc 6. a chief information officer.com Page 29 . but it is an integral part of the General and Administrative function. or Customer Service Specialists. Copyright © Palo Alto Software. General and Administrative manage the facilities. publication. The Daily Perc will hire three key senior managers. since the majority of personnel are involved in production and there will be a relatively low headcount in management. and customer satisfaction. This individual will be responsible for the operation of up to four drive-thrus under hisher management. inventory. There are three functioning groups within the company: Production. it will be able to promote from within for this position. 6. Clearly. as well as the promotion of the Drive-thrus and the Community Contribution program. or distribution. 1995-2008 All rights reserved. as The Daily Perc grows. Inc.3 Organizational Structure The organization will be a relatively flat one. beginning with a district manager for every four Drive-thrus. the inventory management.paloalto. Production involves the Baristas. www. payroll. operational processes. equipment. Ideally. these individuals will ideally be selected from the Mobile Cafe or Drive-Thru team. The role of each of these individuals will be discussed in subsequent sections of this plan. Not for resale. For purposes of this plan--and to show the details of adding senior level management--The Daily Perc has broken management down as a separate segment. This person will oversee the quality of product.

www. and customer service (production). Inc. a chief information officer. as well as the significant increase in the senior management team. The headcount will increase by nearly 100% in the second year to 29. Specifically. with a payroll and payroll burden total expenditure as shown in the following table and in the monthly breakdowns appendices. publication. Equipment Technician. with the addition of a chief financial officer. or distribution. The chief financial officer will be brought on to oversee the increase in numbers of retail outlets and to manage a dramatically more detailed P&amp.4 Personnel Plan The Daily Perc expects the first year to be rather lean. The third year will see the most dramatic growth in headcount. and administrative support. knowledge in establishing technology guidelines for the company and franchisees in the future. with a proportionale increase in payroll of and payroll burden.The Daily Perc 6. Ideally. including management. public relations firms. There will also be a second and third district manager. Total personnel will reach 81.L statement and to manage the Balance Sheet. and our website. 1995-2008 All rights reserved. as well as a district manager and some additional support staff at headquarters. and a director of marketing. there will also be an increase of 180% over the previous year. the media. administrative support. Not for resale.com Page 30 . The director of marketing will be charged with managing the relationships with advertising agencies.paloalto. and a corporate events sales executive. Also. will be 15. with the addition of two Drive-thrus and two mobile units. how to tie in POS systems to the Internet and inventory controls. reproduction. This individual will also be added in fiscal year three. The chief information officer will be brought in to help us with the deployment of a Point-of-Sale computerized cash register system that will make tracking and managing receipts and charitable contributions more robust. due to the addition of nine Drive-thrus and another mobile unit. this individual will have a large amount of point of sale and Internet experience. since there will only be two locations and one mobile unit--none of which will be deployed for the entire year. The total headcount for the first year. The Daily Perc will add customer service personnel. Copyright © Palo Alto Software. In the third year. Total payroll and payroll burden for the third year will reflect this. including an Inventory Clerk. The second year.

098.000 $84.000 $6.000 $646.000 $96. Not for resale.800 $22. reproduction.250 $172.000 $72. or distribution. The Daily Perc anticipates the initial combination of investments and long-term financing to carry it without the need for any additional equity or debt investment.000 $24.paloalto.000 $54. www. These items are capital expenditures and will be available for financing. This will mean growing a bit more slowly than might be otherwise possible.000 $0 $0 $0 $22. Inc.000 $42.000 $0 $258.000 $0 $185. Copyright © Palo Alto Software.000 15 $242. Since TDP is operating a cash business.The Daily Perc Table: Personnel Personnel Plan FY 2002 Production Personnel Drive-thru Team Mobile Cafe Team Equipment Care Specialist (Headquarters) Other Subtotal Sales and Marketing Personnel District Manager (Four Drive-thrus) Corporate Events Sales Exec Director of Marketing Other Subtotal General and Administrative Personnel Bookkeeper/Office Administrator Warehouse/Site Manager Inventory Clerk Other Subtotal Other Personnel Chief Operating Officer Chief Financial Officer Chief Information Officer Other Subtotal Total People Total Payroll $0 $0 $0 $0 $0 $22.000 $66. the initial cost is significantly less than many start-ups these days.024.000 81 $2.000 $0 $0 $0 $66. The process is labor intensive and TDP recognizes that a higher level of talent is required.874 FY 2003 $439.250 7.000 $77.000 $48.000 $156. publication.500 $46.000 $36.425.650 $225.000 $1.500 $7.000 $42.com Page 31 .000 $12.000 $12.374 $72. 1995-2008 All rights reserved.000 $0 $0 $31. when and if they should occur.474 $9. financially sound growth based on customer request and product demand.250 $24. The financial investment in its employees will be one of the greatest differentiators between it and TDP's competition.050 $78. beyond the purchase of equipment or facilities. There will be a minimum of inventory on hand so as to keep the product fresh and to take advantage of price drops.000 $0 $0 $0 $72.400 $0 $0 $144. For the purpose of this pro-forma plan.000 29 $846.600 $77.050 FY 2004 $1.000 $12. the facilities and equipment are financed.000 $135.000 $106. but it will be a solid.0 Financial Plan The Daily Perc's financial picture is quite promising.

The Daily Perc 7. collection days. most of which are shown in the following table. 1995-2008 All rights reserved. operating expenses.1 Important Assumptions The financial plan depends on important assumptions.00% 9. Copyright © Palo Alto Software. The Daily Perc assumes of course that there are no unforeseen changes in public health perceptions of its general products. but no more than three weeks. since our payroll expenses will increase substantially as it grows into new areas and faces new competition. but it doesn't anticipate anything higher than 46%. without major recession. Not for resale. publication. TDP expects to keep gross margin above the 38% projected for the first year.00% 0.paloalto.00% 0 FY 2004 7. Inc. gross margin. The Daily Perc assumes access to equity capital and financing sufficient to maintain its financial plan as shown in the tables.00% 0 FY 2003 3 10. or distribution.00% 0.00% 9. The only time it would consider holding larger stores of inventory is if there was some catastrophic event that could cause a dramatic rise in the price of its coffees or teas. Table: General Assumptions General Assumptions FY 2002 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10. reproduction. The projections for inventory turnover show that TDP will maintain a relatively stable amount of inventory in its headquarters warehouse so that it has no less than two weeks of inventory on hand. and inventory turnover.2 Key Financial Indicators The following chart shows changes in key financial indicators: sales.com Page 32 . in order to keep products fresh.00% 0 2 10. The key underlying assumptions are: The Daily Perc assumes a slow-growth economy. www.00% 0.00% 9. The growth in sales exceeds 250% each year.

580 $1.0 0.3 Break-even Analysis To arrive at the average monthly fixed costs. divided into the fixed costs of operation.0 8. less the average cost per unit.0 6.817 $29.0 10. www.The Daily Perc Benchmarks 11. or distribution.paloalto.0 3. Table: Break-even Analysis Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 15.0 5.0 1. The Daily Perc calculated the fixed costs for the Drive-thru.0 7.457 Copyright © Palo Alto Software.0 4.64 $19.0 2.0 Sales Gross Margin% Operating Expenses Inventory Turnover FY 2002 FY 2003 FY 2004 7.com Page 33 .0 9. 1995-2008 All rights reserved. Using the average price per unit.87 $0. reproduction. Not for resale. Inc. publication. TDP concludes that we will need to sell at least the number of units shown in the following table and chart to reach break-even each month.

000 $16. raise our operating expenses. which will drive sales. publication.A costs. www.02%. outside of production. and help improve Gross Profit Margin. This loss will provide TDP with a tax loss carry-forward for the second year. due to the addition of two more Drivethrus and two more Mobile Cafes.000 $4. Although operating expenses double in the second year. G&amp. Not for resale.000 $0 ($4. reaching healthy sales and Gross Profit Margin by the end of the first year. Aside from production costs of 60%. reproduction.The Daily Perc Break-even Analysis $20. 1995-2008 All rights reserved. the single largest expenditures in the first year are in the general and administrative (G&amp. totaling 23% of sales. increase in production costs. but it is down from 23% in the first year and 18. as well as those for increased equipment leases and rents.000 $12. These increases.000) ($16. or distribution. TDP will see nine additional Drive-thru facilities open in the third year.paloalto. Several expenses take substantial jumps this year--advertising increases and donations increase as well--and TDP will be adding several key management team members. TDP will make substantial charitable contributions.000) ($12. Inc. which include actual production of product and commissions for sales efforts. In that same year.4 Projected Profit and Loss The Daily Perc is expecting some dramatic growth in the next three years.000) ($8.000) 0 3000 6000 9000 12000 15000 18000 21000 24000 27000 30000 33000 7.A) area.5% in the second year to just 15. is still G&amp. Copyright © Palo Alto Software.com Page 34 . The third year is when The Daily Perc has the opportunity to break into markets outside the metropolitan area. The single largest expense sector in the third year. however leave a Net After-tax loss.000 $8. Sales increase by nearly 400% in the second year. The Daily Perc will be able to realize a Net After-tax profit. Expenses during the first year will. leaving a respectable Net After-tax profit. and the payroll burden for all employees.A includes expenses for rents. equipment leases. utilities.

paloalto.000 $1.400. or distribution.000 $0 FY 2002 FY 2003 FY 2004 Copyright © Palo Alto Software. Inc.com Page 35 .000 $300.000 $1.500. Not for resale.The Daily Perc Gross Margin Yearly $2.200.000 $600. reproduction. 1995-2008 All rights reserved.800. publication. www.000 $1.000 $2.100.000 $2.000 $900.700.

reproduction.05% $106.095 $18.413.977 $144.50% $156.572 $36.500 $70.043 $190.332 $26. Inc.02% $66.910 $6.000 $15.620 $50.689 $474.022.com Page 36 .662 $346.09% $681.915 $1.000 $0 $12.872) -5.234 $1.paloalto.000 $36.050.17% $72.000 $4.000 $0 $36.344 $3.743 15.604 $2.000 $96.651 23.967 6. 1995-2008 All rights reserved.88% $1.500 $78.000 $1.638 $0 $904.24% $258.56% FY 2003 $2.010 $1.000 $0 $92.010 $77.000 4.400 $126.500 14.82% FY 2004 $6.785 $0 $9.640 $12.000 $303.000 $72.350 $646. www.023 9.17% Copyright © Palo Alto Software.000 $15.The Daily Perc Table: Profit and Loss Pro Forma Profit and Loss Sales Direct Cost of Sales Production Payroll Sales Commissions Total Cost of Sales Gross Margin Gross Margin % Operating Expenses Sales and Marketing Expenses Sales and Marketing Payroll Advertising/Promotion Website Travel Donations Total Sales and Marketing Expenses Sales and Marketing % General and Administrative Expenses General and Administrative Payroll Sales and Marketing and Other Expenses Depreciation Leased Offices and Equipment Utilities Insurance Rent Payroll Taxes Other General and Administrative Expenses Total General and Administrative Expenses General and Administrative % Other Expenses: Other Payroll Consultants Legal/Accounting/Consultants Total Other Expenses Other % Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales FY 2002 $558.000 $0 $196.72% $22.000 $22.908 $0 $434.950 $1.267 $220.348.247.356 $0 $128. publication.332 4.800 $32.416 $337.88% $31.605 $253.07% $233.102 $0 $973.078 $16.689 7.638 18.000 $19.050 $35.483 ($12.000 $294.267 39.000 $180. Not for resale.000 $0 $24.673.346 45.000 $3.100 $63.298.425.812 16.000 $7.000 $41.639 $0 $217.431 $1.634 $935.500 $0 $21.707) $9.23% $0 $18.776 39.800 $36.000 4.467 $150.900 $732.910 $126.165 $0 ($28.874 $1.250 $90.570 $16.43% $185. or distribution.724.783.

paloalto.000 $0 FY 2002 FY 2003 FY 2004 Copyright © Palo Alto Software.000 $6.000. www.000 $0 ($3.000 $400. Not for resale.com Page 37 .The Daily Perc Profit Monthly $9.000 $200.000) ($9.000 $3.000) ($6. 1995-2008 All rights reserved.000 $600. or distribution. reproduction. Inc.000) ($12. publication.000 $800.000) Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Profit Yearly $1.

paloalto. the business will become relatively self-sustaining. Copyright © Palo Alto Software. Not for resale. With the exception of seasonal dips. but The Daily Perc is also the beneficiary of operating a cash business. reproduction. as there will be certain accounts payable coming due.000 $8.000 $12. www. The Daily Perc anticipates no cash flow shortfalls for the first year or beyond. TDP sees heavier than normal drains of cash in December and January. publication.The Daily Perc Gross Margin Monthly $40. Assuming an initial investment and financing. 1995-2008 All rights reserved. or distribution.000 $0 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 7.000 $24. Inc. since TDP will be experiencing the cost of second drive thru and mobile unit start-up. Again.000 $20.000 $4.000 $16. which would include operating capital. which TDP has attempted to account for. as in any business. through changes in the menu items.000 $28. After the initial investment and start-up costs are covered.000 $32.5 Projected Cash Flow Cash flow will have to be carefully monitored.000 $36. March and May are the greatest cash drains.com Page 38 .

191 $515.122 $29.993 $0 $6.904.469 $0 $191. or distribution.463 $0 $0 $0 $739.870 FY 2003 $0 $0 $0 $729.850 $0 $735.315 Copyright © Palo Alto Software.950 $0 $0 $0 $181.992 $0 $0 $0 $6.236.348.301 $436.043 $2.000 $0 $1.950 $6.paloalto.900 $6.540. Inc.000 $0 $50.819 $62.119 $2.880.The Daily Perc Table: Cash Flow Pro Forma Cash Flow FY 2002 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax.641 $528.622 $0 $2.970 $0 $0 $0 $2.308 $0 $1.356.022.500 $0 $26.com Page 39 .348.506 FY 2002 $0 $0 $0 $253.043 $558.050 $1.024.051 $91. reproduction.082. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.942 FY 2004 $242.374 $273.069 $2. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance FY 2003 FY 2004 $558.250 $2. publication.058 $4.700 $0 $2. VAT. www.384 $4.752.900 $2. Not for resale.316.565 $846.000 $0 $429.022.674 $0 $5.000 $0 $27. 1995-2008 All rights reserved. VAT.602.

000) ($10.000 $25.6 Projected Balance Sheet The Daily Perc's projected balance sheet shows an increase in net worth in 2004.000 $5. The Daily Perc has no intention of paying out dividends before the end of the third year. www.96% after-tax profit on sales. reproduction.000 $20. or distribution.000 $15. Copyright © Palo Alto Software. 1995-2008 All rights reserved. Inc. TDP expects to build a company with strong profit potential.com Page 40 . and a solid balance sheet that will be asset heavy and flush with cash at the end of the third year.000) Net Cash Flow Cash Balance 7.000 $35. at which point it expects to be making 11.000 $10.000 $0 ($5.The Daily Perc Cash $40. using the excess cash for continued growth.paloalto.000 $30. Not for resale. With the present financial projections. publication.

315 $328.695 $638. Copyright © Palo Alto Software.270 $14.com Page 41 .655. The Drive Thru and Mobile business model is lean thus allowing for increase return ratio and providing a lower Net Worth.255 $864.109.499 $528. healthy growth.724 $7.770) ($28.628 $366.754 $239.246 FY 2002 $752.720 $1.The Daily Perc Table: Balance Sheet Pro Forma Balance Sheet FY 2002 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 Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $49.246 $22.240 $5.628 $106.364 $625. TDP's return on net worth and net worth number differ from the Industry Profile due to the lack of overhead when compared to a typical walk-in cafe.465 $366. The Daily Perc's position within the industry is typical for a heavy growth startup company.500 $0 $111.356 $1.567 $323.872) $22.paloalto.902 $1.642) $217.213.224 $286.651 $864.826 $0 $226.785 $301. Eating Places.799.950 $114. this pro-forma plan appears to be within an acceptable difference margin.258 $225. Not for resale.252 $0 $856. reproduction.812 $1. Comparing the ratios in the third year with the industry.754 FY 2003 $2.023 $239.193.153 $2.402 $500 $0 $248.463 FY 2003 FY 2004 $29.442. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5812.740 $513.622 $35. www.720 FY 2004 7.674 $134.463 $2. publication.618 $225.7 Business Ratios Standard business ratios are included in the following table.394 $343.104 $225.655.213.270 ($202.500 $0 $57.270 ($173.790 $1.381 $973.651 $248.250 $21. Inc.781 $91. or distribution.943 $310. are shown for comparison. 1995-2008 All rights reserved.159 $0 $64. The ratios show a plan for balanced.

or distribution.25% 36.60% 43.79 $114.80% 3.00% 45.paloalto. to Liab.92 $607.a 7.00% 39.36% 0.00% 60.a n.92% 59.92% FY 2004 156.666 13.60% -7.17% 80.20% 1.12 4.00% 26.12 54.13 0.a n.18 1.17 21 2.74% 3.00% 32.17 2.63% 1.59% 0.61 0.62% 78.49 27 1.60% 35.31% 100.a n.29% 27.80% 100.70 12.50% 61.69% 82.42% Industry Profile 7.65 61.98 0.23% 29.19% 73.60% 2. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout FY 2002 0.18% 15.31% 45.19 0.70% 1.24% 90.30% n.52 24.28% 100.a n. publication.66 16% 0.29% 90. reproduction.00 n.37% 44.66 0.00% 12.70% 4.70% 28.80 0.20% 0. 1995-2008 All rights reserved.60% 0.63 n.37% 72.19 0.82 9.88% FY 2002 -5.50% 39.27 n.82% 6. www.20% 17.60% 9.00% 15.81% 100.a n. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.The Daily Perc Table: Ratios Ratio Analysis Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling.a n.69% 3.53% 10.17 n.82% 30.82% -127.00 0.25% 67.71% 12.80% 100.15% 1.70% 56.23% -2.03 0.52 8.557 -0.00 0.20% 38.a 15.com Page 42 .56% 25.a n.31% 80.56% 3.00% 17.45% 100.72 7.a 0.a $7.67% FY 2004 16.30% 100.75% 100.02 6.17% -127.00% 39.00% FY 2003 320.44 2.82 72.96 0.10% FY 2003 9.a n.a n.a Copyright © Palo Alto Software. Not for resale.94% 54.20% 93.56% 44.00% 32.25% 0.00% 9.760 6.52 93.a n.62 12. Inc.37 13% 0.17 22 2.44 9% 2.

000. any buyout will most likely involve a cashstock combination. and Taco Bell. However. 1995-2008 All rights reserved. the management team prefers Scenario #2. This is the preferred Exit Strategy of the Management Team. The danger in this is that competitors would rise up and establish a foothold on a community before--or in the midst of--the arrival of The Daily Perc. www. and be destroyed by one or two franchisees who fail to deliver the consistency or value on which the founding company had built its reputation. Knowing these risks--and planning for them-gives TDP the edge needed to make this scenario work. but to make an Copyright © Palo Alto Software. Not for resale. since the buying company would pay a higher price and the transaction would not have such severe tax consequences to the sellers. Burger King. or distribution. It can be assumed that competitors.5 million. that constitutes a Return on Investment of 705% over the three years. Scenario Three: By the third year. Conclusion: Of the three scenarios. This opens the door for franchising opportunity. such as Starbucks or Quikava.paloalto. With each unit selling at $4. the value of franchising a great idea cannot be dismissed. reproduction. publication. Kentucky Fried Chicken. causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share.com Page 43 . Inc.8 Exit Strategy There are three scenarios for the investors and management to recover their investment-two with significant returns on each dollar invested. This will make TDP an attractive target for buyout. Wendy's. Taking a conservative approach to valuation and estimating that The Daily Perc would be valued at $7. developing a franchise can be extremely costly. The same numbers would relate to a public or private offering as are used in Scenario #3. in both major and small metropolitan communities. will have seen the press and realized the value proposition in The Daily Perc's business plan. Scenario Two: The Daily Perc chooses to become the Drive-thru version of Starbucks. take years to develop. A cashstock buyout would be favorable. Scenario One: The Daily Perc becomes extremely successful and has requests from other communities for Daily Perc operations to be opened there. However. and assuming that all 250 units of ownership in TDP are distributed to investors. When one looks at the wealth that has been created by the likes of McDonald's.250. The company could be purchased by a much larger competitive concern by the end of the third year. obtaining several million dollars through an initial public or private offering that would allow the company to open twenty to thirty facilities per year in the region of the country between the mountain ranges. the growth and community support for The Daily Perc will have made the news in more than just the metropolitan area.The Daily Perc 7. a cash purchase of TDP would net each unit $30.

Inc.500. it is not unrealistic to put a market value of $15 million to $25 million on the company.250.000 shares at the price of $3.paloalto. based on 13 Drive-thrus and four Mobile Cafes. there would be a dilution of shares that would provide additional shares for sale to the new investors. there will be 250 units of the company in the hands of investors. perhaps 5. TDP would raise an additional $2. such companies are trading in multiples of 20 to 30 times earnings. By offering the 750. Assuming the capital acquisition described in this plan is completed.com Page 44 .000.000 units. At present. there would be a total of 2. Using the balance sheet for the third year.000 units.000. Cash Balances and Earnings.000 to one. turning the current 250 units into 1.The Daily Perc offering available. which estimates Net Worth.75 per unit. 1995-2008 All rights reserved. Copyright © Palo Alto Software. each of the new units would have a market value of $6unit. and it is simple mathematics to multiply the success of TDP by the number of commuter heavy metropolitan areas in the United States. reproduction. www. it will be necessary to authorize a stock split of. constituting 100% of the authorized and issued units. By authorizing an additional 750. With a corporate valuation of $7. or distribution.000 units with a market value of $3.812.75 per share. which would be sufficient to open locations in an additional three to five cities. publication. Not for resale. For purposes on future fundraising.500 in expansion capital.

00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Jul $1.85 $1.85 $1.45 $10.85 $1.85 $1.00 22.85 $1.45 $2.85 $1.895 23.45 $2.45 $2.85 $1.45 $2.85 $1.637 $0 $0 $0 $0 $0 $44.85 $1.45 $2.85 $1.85 $1.85 $2.85 $1.047 0 0 0 0 0 0 0 0 0 0 0 0 23.45 $10.85 $2.85 $2.500 Sep $1.85 $1.769 $0 $0 $0 $0 $0 $42.45 $2.85 $1.85 $1. 1995-2008 All rights reserved. Not for resale.45 $10.85 $1. #12.85 $2.45 $2.45 $2.85 $1.45 $2.85 $1.85 $1.85 $1.530 $0 $0 $0 $0 $0 $42.036 Mar $1.85 $1.85 $1. #9.942 May $1. publication.85 $1.45 $2.45 $10.047 0 0 0 0 0 0 5.637 $0 $0 $0 $0 $42. Inc.45 $2.85 $1.85 $2.85 $2.047 0 0 0 0 0 0 0 0 0 0 0 0 23.45 $2.45 $10.85 $1.85 $1.989 23.45 $2.45 $2.989 Dec $1. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Total Unit Sales Unit Prices Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8.85 $1.45 $2.85 $1.00 17.00 24.85 $1.45 $2.Appendix Table: Sales Forecast Sales Forecast Jun Unit Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8.45 $2.85 $1.85 $2.85 $1.199 0 0 0 0 0 0 0 0 0 0 0 0 24.85 $2.45 $2.85 $1.45 $10.45 $2.85 $1.85 $1.85 $1.699 Feb $1.85 $1.85 $1.047 0 0 0 0 0 0 0 0 0 0 0 46.85 $1.00 23.85 $1.047 21.505 $42.85 $1.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Aug $1. reproduction.85 $1.000 0 0 0 0 49.199 Nov $1.85 $1.00 21.85 $1.769 $32.85 $1.047 Oct $1.85 $1.85 $1.530 $42.45 $2.000 0 0 0 0 49.45 $2.85 $1.500 0 0 0 0 0 0 0 0 0 0 0 0 17.85 $1.45 $10.00 22.85 $1.85 $1.45 $10.85 $1. #9.85 $1.00 23.85 $1.45 $2.85 $1.45 $2.85 $1.895 0 0 0 0 0 0 5.85 $1.85 $1.85 $1.637 $0 $0 $0 $0 $0 $44.637 $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 Jun $1.45 $2.45 $2.85 $1. & #10 Drive-thrus #11.paloalto.00 24. #12.85 $1. or distribution.85 $1.85 $1.45 $2.85 $1. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $32.375 $0 $0 $0 $0 $0 $42.00 23.199 17.85 $2. & #10 Drive-thrus #11.85 $1.45 $2.85 $1.85 $1.85 $2.45 $2.85 $1.45 $2.85 $1.45 $2.85 $1.85 $1.45 $10.85 $1.85 $1.45 $10.com Page 1 .00 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Copyright © Palo Alto Software.85 $1.45 $2.375 $0 $0 $0 $0 $42.85 $1.637 $40.85 $2.85 $1.45 $2.45 $2.45 $2.500 0 0 0 0 0 0 0 0 0 0 0 41.85 $2.505 $0 $0 $0 $0 $40.989 0 0 0 0 0 0 0 0 0 0 0 0 22.85 $1.45 $10.85 $1.85 $1. www.047 Jan $1.45 $10.85 $1.85 $1.45 $2.942 Apr $1.85 $1.85 $1.45 $2.85 $1.85 $1.

375 Sep $0.64 $6.64 $0.167 Mar $0.50 $0 $0 $0 $0 $0 $0 $0 $44.64 $0.64 $0.64 $0.64 $0.64 $6.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.392 Apr $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.50 Copyright © Palo Alto Software.Appendix Drive-thrus #8.64 $0.64 $0.64 $0.200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $26.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.713 $14. 1995-2008 All rights reserved.64 $0. #12.00% 0.50 $0 $0 $0 $0 $0 $0 $0 $85.50 $0 $0 $0 $0 $0 $0 $0 $0 Aug $0.64 $0.64 $0.64 $0.64 $0.64 $0. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Total Sales Direct Unit Costs Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Subtotal Direct Cost of Sales $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 $11.64 $0.64 $0.64 $0.64 $0.750 $15.64 $0.713 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $14.64 $0.713 $14.64 $0.013 $14.64 $6.64 $0.64 $0.00% 0.64 $0.64 $0.50 $0 $0 $0 $0 $0 $0 $0 $42.64 $0.64 $0.463 $14.64 $0.64 $0.750 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $14. reproduction. & #10 Drive-thrus #11. & #10 Drive-thrus #11.64 $0.64 $0.64 $0.64 $0.64 $0. publication.64 $0.64 $6.00% 0.64 $0.64 $0.64 $0.64 $0. & #10 Drive-thrus #11. www.50 $0 $0 $0 $0 $0 $0 $0 $32.00% 0.00% 0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0.64 $0. #9.200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11.64 $0. #12.50 $0 $0 $0 $0 $0 $0 $0 $0 Jul $0.750 $15.00% 0.64 $0.64 $0.50 $0 $0 $0 $0 $0 $0 $0 $42.200 $0 $0 $0 $0 $31.64 $0.00% 0.64 $6.00% 0. Not for resale.paloalto.64 $0.488 $11.64 $0.64 $0.64 $0.637 Jan $0.250 $0 $0 $0 $0 $95.64 $0.64 $0.64 $0.488 $14.00% $0 $0 $0 $0 $0 $0 $0 $0 Jun $0.64 $0.64 $0.64 $0.200 $14. #12.64 $0.64 $0.64 $6.200 $0 $0 $0 $0 $31.64 $0.750 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $14.64 $0.64 $0.64 $6.64 $6.64 $0.750 $14.64 $0.64 $0.013 $0 $0 $0 $0 $0 $0 $3.64 $0.637 Oct $0.64 $0. or distribution.com Page 2 .488 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15.688 $14.64 $0.64 $0.64 $0.64 $0.64 $0. & #13 Mobile Cafe #1 Mobile Cafe #2 Mobile Cafe #3 Mobile Cafe #4 Website Sales/Premium Items Direct Cost of Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 & #7 Drive-thrus #8.00% 0.144 Feb $0.64 $0.769 Nov $0.64 $0.64 $0.64 $0.00% 0.64 $0.00% 0.64 $0.64 $0.963 0.00% 0.64 $0.750 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $29.64 $0.64 $0.64 $6.64 $0.64 $0.64 $0.50 $0 $0 $12. #9.64 $6.64 $0.64 $0. #9.750 $0 $0 $0 $0 $0 $0 $3. Inc.64 $0.64 $0.64 $0.64 $0.64 $6.530 Dec $0.64 $0.250 $0 $0 $0 $0 $95.50 $0 $0 $0 $0 $0 $0 $0 $42.64 $0.64 $0.963 $14.64 $0.392 May $0.64 $0.64 $0.64 $0.64 $6.64 $0.50 $0 $0 $12.64 $0.64 $0.64 $0.50 $0 $0 $0 $0 $0 $0 $0 $77.

www.500 $5.500 11 $28.500 $0 $0 $0 $5.500 $0 $0 $0 $3.Appendix Table: Personnel Personnel Plan Jun Production Personnel Drive-thru Team Mobile Cafe Team Equipment Care Specialist (Headquarters) Other Subtotal Sales and Marketing Personnel District Manager (Four Drive-thrus) Corporate Events Sales Exec Director of Marketing Other Subtotal General and Administrative Personnel Bookkeeper/Office Administrator Warehouse/Site Manager Inventory Clerk Other Subtotal Other Personnel Chief Operating Officer Chief Financial Officer Chief Information Officer Other Subtotal Total People Total Payroll $5.000 $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 $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 $10.500 $0 $0 $0 $5.000 $3.500 $0 $0 $0 $5.800 $9.624 $5.500 11 $30.500 $10.500 $0 $0 $7.000 $5.paloalto. or distribution.700 $5.500 $0 $0 $0 $10.500 $0 $0 $0 $5.500 $0 $0 $0 $3.500 $0 $0 $0 $5.500 6 $17.com Page 3 .500 6 $18.800 $0 $0 $0 $9.700 $0 $0 $26.900 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1.500 $3.700 $21. Not for resale.750 $0 $0 $0 $1.500 $0 $0 $0 $5.750 $0 $0 $0 $1.800 $5.500 $3. 1995-2008 All rights reserved.500 6 $18. publication.800 $10.500 $0 $0 $0 $5.100 $5.500 $0 $0 $0 $5.500 $3.500 $0 $0 $0 $5.500 5 $16. Inc.750 $3.500 $5.800 $0 $0 $0 $9.624 $0 $0 $0 $19.850 $9.500 $0 $0 $0 $3.500 1 $5.700 $4.500 $0 $0 $0 $5.500 $3.500 $5.400 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Copyright © Palo Alto Software.500 $0 $0 $0 $10.500 1 $5.500 $3.500 $0 $0 $0 $5.500 $5.500 1 $5.500 15 $38.500 $0 $0 $0 $3.200 $5.050 $5.500 15 $38.624 $21.500 $19.500 $0 $0 $7.500 6 $19.700 $0 $0 $0 $21.700 $0 $0 $25.000 $4.500 $3.850 $0 $0 $0 $10. reproduction.750 $1.500 $0 $0 $0 $5.700 $21.

00% 0 Dec 8 10.paloalto.00% 0 Jan 9 10.00% 0 Nov 7 10. 1995-2008 All rights reserved.00% 0.00% 0.00% 0 Mar 11 10.Appendix Table: General Assumptions General Assumptions Jun Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10.00% 0 2 10.00% 0.00% 9.00% 0.00% 0.00% 9. publication.00% 9. Not for resale.00% 0. Inc. www.00% 0.00% 0 Aug 4 10.00% 9.00% 0 Apr 12 10.00% 0 Sep 5 10.00% 0 Feb 10 10.00% 9.00% 9.00% 9.00% 0 Oct 6 10. reproduction.00% 0.00% 9.00% 0 Jul 3 10.00% 9.00% 0.00% 9.00% 9.00% 0. or distribution.00% 0.00% 9.00% 0.com Page 4 .00% 0 May Copyright © Palo Alto Software.

47% $0 $2.392 $31.92% $0 $2.850 $0 $1.288 $19.250 $17.050 $1.100 6.750 $10.321 19.713 $9.050 $1.79% $3.800 $0 $25.222 22.017 42.963 $26.00% Jul $0 $0 $0 $0 $0 $0 0.632 18.31% $1.257 $2.257 $2.850 $0 $25.94% $0 $2.257 $1.497 26.257 $1.com Page 5 .200 $2.000 $100 $0 $1.637 $14.000 $100 $0 $0 $2.257 $1.100 2.00% $0 $0 $1.407 22.000 $100 $0 $0 $2.000 $0 $3.050 $1.100 4.312 $30.257 $1.500 $0 $2.294 $0 $15.26% $0 $0 $0 $0 $0 $0 0.769 $15.32% $7.700 $0 $51.287 22.516 3.513 $18.96% Nov $44.000 $100 $1.675 32.565 $0 $1.00% $0 $0 $100 $1.66% $3.163 $34.050 $1. Not for resale.050 $1.565 $0 $800 $1.000 $0 $3.93% $0 $2.688 $19.52% Dec $42.565 $0 $920 $1. or distribution.00% $0 $0 $0 $0 $0 $0 0.86% $3.000 $100 $1.565 $0 $920 $1.481 43.100 6.paloalto.43% $0 $0 $0 $0 $0 $0 0.200 $825 $0 $4.637 $14.97% Mar $85.35% $7.250 20.392 $31.916 $5.144 $26.257 $1.715 $0 $9.021 38.36% Jan $42.000 $100 $0 $0 $2.375 $11.257 $1.000 $100 $0 $0 $2.500 $0 $1.78% Feb $77.00% Sep $32.700 $10.100 0. reproduction.08% Copyright © Palo Alto Software.200 $10. Inc.400 $4.93% Apr $95.016 5.800 $0 $24.925 $0 $11.600 $17.416 $3.500 $0 $2.00% $0 $2.820 $0 $11.93% $0 $2.00% Aug $0 $0 $0 $0 $0 $0 0.000 $1.000 $0 $1.167 $29.81% May $95.463 $21.963 $25.200 $2.200 $2.00% $0 $0 $310 $0 $700 $1.200 $2.69% $0 $2.02% $0 $2.100 4.Appendix Table: Profit and Loss Pro Forma Profit and Loss Jun Sales Direct Cost of Sales Production Payroll Sales Commissions Total Cost of Sales Gross Margin Gross Margin % Operating Expenses Sales and Marketing Expenses Sales and Marketing Payroll Advertising/Promotion Website Travel Donations Total Sales and Marketing Expenses Sales and Marketing % General and Administrative Expenses General and Administrative Payroll Sales and Marketing and Other Expenses Depreciation Leased Offices and Equipment Utilities Insurance Rent Payroll Taxes Other General and Administrative Expenses Total General and Administrative Expenses General and Administrative % Other Expenses: 15% $0 $0 $0 $0 $0 $0 $0 $825 $0 $825 0.392 22.06% $1.750 $0 $1.292 0.371 $37.400 $4.558 $0 $9.605 $0 $15.97% Oct $42.037 39.624 $0 $46. 1995-2008 All rights reserved.850 $0 $1.004 39.488 $9.400 $5.000 $100 $1.00% $0 $0 $310 $0 $0 $0 $0 $825 $0 $1.050 $1.96% $3.135 0.49% $0 $2.200 $2.730 $0 $21.257 $2. publication.832 39.100 4.500 $0 $25.530 $14.700 $708 $58.100 4.400 $708 $59.820 $0 $1.400 $5.750 $0 $1.257 $2.565 $0 $1. www.500 $0 $1.400 $0 $7.835 $0 $21.387 40.500 $0 $21.820 $0 $1.321 38.392 26.000 $0 $3.000 $100 $0 $0 $2.000 $0 $3.071 $36.750 $10.

867) 0.500 $0 $1.87% $5.500 $0 $1.500 $0 $1.00% $7.24% $20.892) ($11.730) -8.825) ($7.325) $1.042 $0 ($8.500 15.00% $7. or distribution.paloalto.203 1.08% $15.019 $0 ($2.500 14.019 $0 ($388) -0.070 9.67% $5.825) $1.500 $0 $1.24% $18.702 $0 $8.000 $6.500 $0 $1. reproduction.582) $1.000 $6.568 $2.04% $5.00% $5.000 $6.500 $7.018 $0 ($8.413 $7.058 $0 ($12.772 $12.892 ($11.000 $6.500 15.436 3.210 $0 $1.63% $24.000 0.000 $6.282 $0 $3.500 $0 $1.500 20. 1995-2008 All rights reserved.007 ($970) $595 $1.75% $5.019 $0 ($1.000 $6.28% $19.653) 0.500 $0 $1.500 6.500 0.500 7.000 $6.166) -19.000 $6.500 $0 $1.05% $5.921 $5.500 0.582) $1.52% $18.81% $32.197 $1.500 $0 $1.019 $0 ($3.825 ($7.718 $9.635 ($7.500 6.263 $2.com Page 6 .000 $6.303 $5.097 ($2. publication.500 15.145) $1.156 5.81% $31.732 $1.822 ($5.00% $5. Inc.43% $24.60% $5.990) -4.592 $1.756 $0 $4.500 $0 $1.950) 0.000 $6.00% $5.500 $0 $1.00% $11.710) ($1.992 ($1.147) ($3.Appendix Other Payroll Consultants Legal/Accounting/Consultants Total Other Expenses Other % Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales $5.232 $9.000 $6. Not for resale.39% $5.019 $0 ($6.908 $3.500 8.912 $8.635) ($7.26% Copyright © Palo Alto Software.850 $632 $2.500 $0 $1.48% $5.994) -7.975) ($410) $1. www.

826 $0 $500 $0 $0 $0 $86.622 $5.paloalto.637 $44.981 $1.530 $42.637 $77.156) $33.392 May Copyright © Palo Alto Software.144 $85. publication.342 $43.500 $24.203 $0 $0 $0 $0 $0 $0 $0 $43.217 $0 $0 $0 $0 $0 $0 $0 $28.965 ($11.187) $2. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.500 $0 $0 $0 $8.769 $18.051 $19.507 $20.031 $38.200 $46.637 Oct $0 $0 $0 $0 $0 $0 $0 $44.167 $95.624 $26.530 Dec $0 $0 $0 $0 $0 $0 $0 $42.216 $0 $0 $0 $92.769 $42.981 $6. Not for resale.719 $34.375 $32.216 $0 $1.184 $0 $0 $0 $175.228 $18.984 $40.328 Feb $0 $0 $0 $0 $0 $0 $0 $85.300 $0 $0 $0 $5.390 $35.831 $85.112 ($8.00% $0 $0 $0 $0 $0 $0 $0 $0 Jun $0 $0 $0 $0 $0 $0 $0 $0 Jul $0 $0 $0 $5.979 $0 $0 $0 $173.944 $30.392 $95.849 $5.487 ($3.500 $3.166 $0 $0 $0 $28.594) $29.615 $91.700 $54.422 $0 $0 $0 $0 $0 $0 $0 $8.388 $0 $0 $0 $3.471 $0 $0 $0 $100.487 $16.000 $7.392 $95.323 ($7.144 $77.769 Nov $0 $0 $0 $0 $0 $0 $0 $42.500 $112 $5. reproduction.515 $0 $0 $0 $0 $0 $0 $32.500 $2.724 $0 $0 $0 $0 $0 $0 $0 $46.107 $38.030 $28.236 $0 $0 $0 $5. or distribution.842 $28. VAT.167 $85.375 Sep $0 $0 $0 $0 $0 $0 $0 $42.394 $3.228 $23.637 $42. www.Appendix Table: Cash Flow Pro Forma Cash Flow Jun Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax.375 $42.986 ($5.320 $54. 1995-2008 All rights reserved. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $2.400 $0 $160.800 $27.300 Aug $0 $0 $0 $0 $0 $0 $0 $32.051 ($3. Inc.982 $0 $0 $0 $7.130 $14.407 $85.998 $0 $0 $0 $0 $0 $105.637 Jan $0 $0 $0 $98.769 $44.344 $14.965) $5.392 $95.167 Mar $0 $0 $0 $77.000 $0 $8.349 $8.112) $17. VAT.116 $0 $0 $0 $11.100 $10.371 Apr $0 $0 $0 $0 $0 $0 $0 $95.637 $42.530 $42.130 $17.842 ($1.205) $25.769 $10.900 $52.com Page 7 .392 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 0.724 $0 $0 $0 $0 $0 $0 $0 $34.000 $30.987 $8.450 $0 $171.050 $17.612 $5.521) $27.251 $46.

400 $310 $131.159 $0 $64.622 $35.016 $21.770) ($17.000 $0 $18.388 $5.236 $6.085 $222.497 $9.185 $129.853 $9.225 $0 $42.618 $225.749 $9.762 $52.500 $0 $57.492 $167.270 ($173.918 $144.770) ($45.900 $8.935 $305.400 $140.090 $171.422 $35.270 ($173.500 $17.800 $11.400 $0 $131.633 $2.400 $225.500 $191.826 $32.255 $128.900 $141.749 $125.690 $21.400 $183.780 $168.750 $127.949 $30.270 ($173.315 $375.512 Jul $131. Inc.236 $35.902 $9.441 $125.770) ($30.902 $131.800 $0 $30.955 $225.400 $8.770) ($30.907 Dec $131.076 $216.159 $0 $70.760 $27.425 $49.690 Apr $323.388 $35.512 $33.445 $122.270 ($173.962 $225.724 $16.781 Starting Balances Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May $131.215 $159.715 $288.223 $40.203 $16.520) $33.989 $288.000 $0 $11.000 $0 $52.225 $0 $36.246 May Copyright © Palo Alto Software.338 $33.907 $9.770) ($33.com Page 8 .400 $0 $131.785 $301.724 $17.246 $22.863 $16.000 $0 $9.400 $620 $130.500 $3.416 $225.500 $0 $59.626) $12.008) $9.030 $9.492 $24.270 ($173.998 $16.497 $125.359 $225.599 $12.900 $51.076 $9.255 $9.000 $0 $37.178 $5.000 $0 $33.250 $17.762 $165.980 $6.236 $35.486 $173.784 $137.000 $0 $54. publication.770) ($42.520 $167.770) $0 $51.270 ($173.498 $125.770) ($28.867) $42.387 $25.315 $126. www.918 $45.770) ($38.270 ($173.270 ($173.400 $294.356 $0 $70.178 Jan $236.807 $9.030 $168.982 $29.102 $285.865 $354.951 $17.989 $50.185 $0 $43.270 ($173.375 $29.265 $225.014) $12.498 $9.918 $159.853 $224.770) ($36.886 $270.410 $0 $66.918 $161.874 $26.441 $9.232 Sep $131.216 $35.155 $225.800 $14.000 $0 $40.986 $225.000 $0 $35.788 Jun $131.270 ($173.880 $124.533 $225. Not for resale.400 $191.265 $225.873 $9.000 $0 $61.955 $165.250 $21.900 $131.270 ($173.637) $14.000 $0 $32.500 $35.535 $295.Appendix Table: Balance Sheet Pro Forma Balance Sheet Jun 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 Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $9.788 $42.918 $158. or distribution.874 $164.872) $22.400 $2.951 Mar $323.400 $5.017 $20.224 $286.400 $3.075) $21.845 $12.980 $171.425 $375.873 Feb $236.217 $23.628 $25.084 $146.451 $9.394 $343.270 ($173.725 $225.599 Oct $131.918 $295.270 ($173.000 $131.451 $125.486 $23.724 $7.465 $366. 1995-2008 All rights reserved. reproduction.511) $17.paloalto.000 $0 $60.422 $2.036 $0 $47.000 $0 $12.400 $6.369 $225.000 $0 $25.000 $0 $15.650 $164.770) ($41.085 $173.633 $183.232 $14.628 $366.470) $21.770) ($8.845 Nov $131.016 Aug $131.415 $225.863 $159.738) $5.807 $125.582) $9.918 $151.770) ($39.

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