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Business Plan

Mohammad Faisal
Sufiyan Farooq
M.Kamrul Hassan
Maithreyi Muralidharan
Jeciya Abdul Jabbar
Amanda Sequeira
Amber Fernandes
Sip ‘n’ Surf Club Business Plan Confidential

Table of Contents

1.0 Executive Summary 3

1.1 Objectives 3
1.2 Mission 3
1.3 Risks 4

2.0 Company Summary 5

2.1 Company Ownership 5
2.2 Start-up Summary 5
2.3 Company Locations and Facilities 6

3.0 Services 8
3.1 Service Description 8
3.2 Competitive Comparison 8
3.3 Fulfillment 8
3.4 Technology 9
3.5 Future Services 9

4.0 Market Analysis Summary 10

4.1 Market Segmentation 10
4.2 Target Market Segment Strategy 10
4.3 Market Needs 10
4.4 Service Business Analysis 11

5.0 Strategy and Implementation Summary 12

5.1 SWOT Analysis 12
5.2 Marketing Strategy 13
5.3 Pricing Strategy 14
5.4 Sales Strategy 14
5.5 Sales Forecast 14

6.0 Management Summary 16

6.1 Personnel Plan 16

7.0 Financial Plan 17

7.1 Projected Profit and Loss 18
7.2 Projected Cash Flow 18
7.3 Projected Balance Sheet 19 Page | 2
Sip ‘n’ Surf Club Business Plan Confidential

Executive Summary

1.0 Executive Summary

Sip ‘n’ Surf Club will provide a unique forum for communication and entertainment through
the medium of the Internet. Sip ‘n’ Surf is the answer to an increasing demand. The public
wants: (1) access to the methods of communication and volumes of information now
available on the Internet, and (2) access at a cost they can afford and in such a way that they
aren't socially, economically, or politically isolated. The main goal is to provide the
community with a social, educational, entertaining, atmosphere for worldwide

Sip ‘n’ Surf will be incorporated as a partnership business. This will shield the owners,
Mohammad Faisal, Sufiyan Farooq, M.Kamrul Hassan, Maithreyi Muralidharan, Jeciya
Abdul Jabbar, Amanda Sequeira and Amber Fernandes, from issues of personal liability. The
first two partners will invest AED1,75,000 each and the rest will invest AED70,000 each.
The profit sharing ratio will be defined according to the capital invested by each partners.

The financing from the owners will allow the Club to successfully open and maintain
operations through year one. The large initial capital investment will provide its customers
with a full featured Club. A unique, upscale, and innovative environment is required to
provide the customers with an atmosphere that will spawn socialization. Successful operation
in year one will provide a customer base that will allow it to be self sufficient in year two.

1.1 Objectives

Sip ‘n’ Surf’s objectives for the first three years of operation include:

• The creation of a unique, upscale, innovative environment that will differentiate it

from local clubs.
• The formation of an environment that will bring people with diverse interests and
backgrounds together in a common forum.
• Good coffee and bakery items at a reasonable price.
• Affordable access to the resources of the Internet and other online services.

1.2 Mission

As the popularity of the Internet continues to grow at an exponential rate, easy and affordable
access is quickly becoming a necessity of life. Sip ‘n’ Surf provides communities with the
ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a
comfortable environment. People of all ages and backgrounds will come to enjoy the unique,
upscale, educational, and innovative environment that the Club provides. Page | 3
Sip ‘n’ Surf Club Business Plan Confidential

1.3 Risks

The risks involved with starting Sip ‘n’ Surf Club are:

• Will there be a demand for the services offered by the Club in the Emirates City-
• Will the popularity of the Internet continue to grow?
• Will individuals be willing to pay for the service Sip ‘n’ Surf offers?
• Will the cost of accessing the Internet from home drop so significantly that there will
not be a market for Internet Cafes? Page | 4
Sip ‘n’ Surf Club Business Plan Confidential

Company Summary

2.0 Company Summary

Sip ‘n’ Surf Club, soon to be located in Emirates City-Ajman, will offer the community easy
and affordable access to the Internet. Sip ‘n’ Surf will provide full access to email, WWW,
FTP, Usenet and other Internet applications such as Telnet. Sip ‘n’ Surf will also provide
customers with a unique and innovative environment for enjoying great coffee, specialty
beverages, bakery items and a gaming zone.

Sip ‘n’ Surf will appeal to individuals of all ages and backgrounds. The instructional Internet
classes, and the helpful staff that Sip ‘n’ Surf provides, will appeal to the audience that does
not associate themselves with the computer age. This educational aspect will attract younger
and elderly members of the community who are rapidly gaining interest in the unique
resources that online communications have to offer. The location will provide business
people with convenient access to their morning coffee and online needs.

2.1 Company Ownership

Sip ‘n’ Surf Club is a privately held by 7 partners, Mohammad Faisal, Sufiyan Farooq,
M.Kamrul Hassan, Maithreyi Muralidharan, Jeciya Abdul Jabbar, Amanda Sequeira and
Amber Fernandes. The first two are active partners, who will be taking the major decision of
the Club, while others are inactive.

2.2 Start-up Summary

Sip ‘n’ Surf Club’s start-up costs will cover coffee making equipment, site renovation and
modification, capital to cover losses in the first year, and the communications equipment
necessary to get its customers online.

The communications equipment necessary to provide customers with a high-speed

connection to the Internet and the services it has to offer make up a large portion of the start-
up costs. These costs will include the computer terminals and all costs associated with their
set-up. Costs will also be designated for the purchase of a laser printer and a scanner.

In addition, costs will be allocated for the purchase of coffee making equipment. Cutlery
items will be purchased from Jashanmal Department Stores.

The site at Emirates City-Ajman will require funds for renovation and modification. A single
estimated figure will be allocated for this purpose. The renovation/modification cost estimate
will include the costs associated with preparing the site for opening business. Page | 5
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Start-up Expenses
Down payment for the land acquired AED204,000
Legal AED25,000
Stationary items AED2,000
Brochures AED2,000
Insurance AED3,500
Consultants AED4,000
Automatic Coffee Machine AED24,300
Computer System (40) AED120,000
Billiards Table (4) AED36,000
Foosball Table(4) AED40,000
Communication Lines (Al Mawrood, Landline, Mobile) AED3,500
Fixtures AED70,800
Total Start-up Expenses AED5,35,100

2.3 Company Locations and Facilities

A site has been chosen at Emirates City-Ajman. This site was chosen for various reasons,

• Proximity to the Ajman City Center, Dubai and Sharjah International Airports.
• Parking availability.
• Beautiful Green parks and lake view.
• Proximity to the shopping malls.
• No traffic problem.
• Low cost – AED 102 per square foot for 4000 square feet.
• High visibility as it is located on the side of the Emirates Road that run from Ras Al
Khaimah, through Umm Al Quwain, Sharjah and Dubai to Abu Dhabi. Estimated time
from Dubai is 25 minutes.

All of these qualities are consistent with Sip ‘n’ Surf Club’s goal of providing a central hub
of communication and socialization for the Ajman community. Page | 6
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3.0 Services

Sip ‘n’ Surf Club will provide full access to email, WWW, FTP, Usenet and other Internet
applications such as Telnet with the help of 20 high speed computers. Printing, scanning, and
introductory courses to the Internet will also be available to the customer. Sip ‘n’ Surf will
also provide customers with a unique and innovative environment for enjoying great coffee,
specialty beverages, bakery items and a gaming zone which includes video games, billiards,
foosball and 20 computers for playing games.

3.1 Service Description

Sip ‘n’ Surf is divided into 3 zones namely Internet Zone, Gaming Zone and Food Zone.
Internet zone will consist of 20 high speed computers which will provide customers to access
external POP3 email accounts, sign up for a Sip ‘n’ Surf email account, which will be
managed by the club, FTP, telnet and other popular application, access to Internet Explorer
and Firefox Mozilla browsers, color laser printer, scanner and popular software applications
like Adobe Photo Shop and MS office.

Gaming zone will also include 20 high speed computers with latest games, PS3’s with
Plasma screen, four billiard and foosball tables. Food zone will provide hot and cold
beverages and fresh bakery items.

Sip ‘n’ Surf Club will also provide its customers with access to introductory Internet and
email classes. These classes will be held in the afternoon and late in the evening. By
providing these classes, Club will build a client base familiar with its services. A comfortable
environment will provide Sip ‘n’ Surf customers with a home away from home, a place to
enjoy the benefits of computing in a comfortable and well-kept environment.

3.2 Competitive Comparison

This type of Club will be the first in Ajman. Sip ‘n’ Surf will differentiate itself from the
strictly-coffee clubs by providing its customers with Internet and computing services, gaming
zone and a food zone.

3.3 Fulfillment

Sip ‘n’ Surf will obtain computer support and Internet access from Etisalat, who will provide
the Internet connections, network consulting, and the hardware required to run the internet
zone. Jashanmal Department Stores will provide with coffee equipment, Nestle Middle East
Consumer Service with bulk coffee, Uniliver Gulf FZE with bulk tea bags and stationary
items will be provided by Farook stationary. The contract for the bakery items will be given
to Al Reem bakery. The fruits for juices will be provided by Al Manama Food Stuff. Page | 8
Sip ‘n’ Surf Club Business Plan Confidential

3.4 Technology

Sip ‘n’ Surf will invest in high-speed computers to provide its customers with a fast and
efficient connection to the Internet. The computers will be reliable and fun to work with. It
will continue to upgrade and modify the systems to stay current with communications
technology. The gaming zone will include plasma screens for PS3 and good performance
computers to play latest games.

3.5 Future Services

As Sip ‘n’ Surf Club grows, more communications systems will be added. The possibility of
additional units has been accounted for in the current floor plan. As the demand for Internet
connectivity increases, along with the increase in competition, it will continue to add new
services to keep its customer base coming back for more. Page | 9
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Market Analysis Summary

4.0 Market Analysis Summary

Sip ‘n’ Surf Club is faced with the exciting opportunity of being the first-mover in the
Emirates City-Ajman. The consistent popularity of coffee, combined with the growing
interest in the Internet, has been proven to be a winning concept in other markets and will
produce the same results in the City.

4.1 Market Segmentation

Sip ‘n’ Surf’s customers can be divided into two groups. The first group is familiar with the
Internet and desires a progressive and inviting atmosphere where they can get out of their
offices or bedrooms and enjoy a great cup of coffee. The second group is not familiar with
the Internet, yet, and is just waiting for the right opportunity to enter the online community.
Sip ‘n’ Surf target market falls anywhere between the ages of 12 and 50. This extremely wide
range of ages is due to the fact that we will be providing a internet, gaming and food zone
which appeals to a variety of people.

4.2 Target Market Segment Strategy

Sip ‘n’ Surf intends to cater to people who want a guided tour on their first spin around the
Internet and to experienced users eager to indulge their passion for computers in a social
setting. Furthermore, the Club will be a magnet for local and traveling professionals who
desire to work or check their email messages and have refreshments in a friendly atmosphere.
These professionals will either use Club's PCs, or plug their notebooks into Internet
connections (Wi-Fi). Sip ‘n’ Surf target market covers a wide range of ages: from members
of modern generation who grew up surrounded by computers, to Baby Boomers who have
come to the realization that people today cannot afford to ignore computers.

4.3 Market Needs

Factors such as current trends, addiction, and historical sales data ensure that the high
demand for beverages and bakery items will remain constant over the next few years. The
potential growth of the Internet is enormous, to the point where one day, a computer terminal
with an online connection will be as common and necessary as a telephone. This may be 10
or 20 years down the road, but for the next five years, the online service provider market is
sure to experience tremendous growth. Being the first Club in Emirates City, Sip ‘n’ Surf will
enjoy the first-mover advantages of name recognition and customer loyalty. Initially, the
Club will hold a 100 percent share of the Club market in the City. In the next five years,
competitors will enter the market. Sip ‘n’ Surf Club has set a goal to maintain greater than a
50 percent market share. Page | 10
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4.4 Service Business Analysis

The popularity of the Internet is growing exponentially. Those who are familiar with the
Internet are well aware of how fun and addictive surfing the Net can be. Those who have not
yet experienced the internet, need a convenient, relaxed atmosphere where they can feel
comfortable learning about and utilizing the current technologies. The Club seeks to provide
its customers with affordable Internet access in an innovative and supportive environment.

Due to expected intense competition, cafe owners must look for ways to differentiate their
place of business from others in order to achieve and maintain a competitive advantage. The
founders of Sip ‘n’ Surf Club realizes the need for differentiation and strongly believes that
combining a Club with complete Internet service along with a food and gaming zone will be
the key to success. The fact that no such Club is established in the Emirates of Ajman,
presents Sip ‘n’ Surf Club with a profitable avenue in this market. Page | 11
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Strategy and Implementation Summary

5.0 Strategy and Implementation Summary

Sip ‘n’ Surf Club has two main strategies. The first strategy focuses on attracting novice
Internet users. By providing a novice friendly environment, the Club hopes to educate and
train a loyal customer base. It will also focus on pulling in power Internet users. Power
Internet users are extremely familiar with the Internet and its offerings. This group of
customers serves an important function at the Club. Power users have knowledge and web-
browsing experience that novice Internet users find attractive and exciting.

The second strategy focuses on building a social environment for Sip ‘n’ Surf customers. A
social environment, that provides entertainment (food and gaming zone), will serve to attract

5.1 SWOT Analysis

The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses Sip ‘n’ Surf must address. It also allows us to examine the opportunities
presented to the Club as well as potential threats.

Sip ‘n’ Surf Club has a valuable inventory of strengths that will help it succeed. Strengths are
valuable, but it is also important to realize the weaknesses. Sip ‘n’ Surf’s strengths will help it
capitalize on emerging opportunities and avoid threats faced in the market.

5.1.1 Strengths

1. Knowledgeable and friendly staff. We've gone to great lengths to find people with a
passion for teaching and sharing their Internet experiences. Our staff is both
knowledgeable and eager to please.
2. State-of-the art equipment. Part of the Club experience includes access to state-of-the-art
computer equipment. Our customers enjoy beautiful flat-screen displays, fast machines,
and high-quality printer and scanner.
3. Up-scale ambiance. When you walk into the Club, you'll feel the technology. Flat-screen
monitors and plasma screens inset into the walls provide a cozy hideaway for meetings
and small friendly gatherings. Aluminum track lighting and art from local artists sets the
mood. Last, but not least, quality cappuccino machines and a glass pastry display case
provide enticing refreshments.
4. Clear vision of the market need. The Club knows what it takes to build an upscale Club.
We know the customers, we know the technology, and we know how to build the service
that will bring the two together. Page | 12
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5.1.2 Weaknesses

1. A dependence on quickly changing technology. Sip ‘n’ Surf Club is a place for people to
experience the technology of the Internet. The technology that is the Internet changes
rapidly. It needs to keep up with the technology because a lot of the Club experience is
2. Cost factor associated with keeping state-of-the-art hardware. Keeping up with the
technology of the Internet is an expensive undertaking. The Club needs to balance
technology needs with the other needs of the business. One aspect of the business can't be
sacrificed for the other.

5.1.3 Opportunities

1. Growing population of daily Internet users. The importance of the Internet almost equals
that of the telephone. As the population of daily Internet users increases, so will the need
for the services the Club offers.
2. Social bonds fostered by the new Internet communities. The Internet is bringing people
from across the world together unlike any other communication medium. It will capitalize
on this social trend by providing a place for smaller and local Internet communities to
meet in person. The Club will grow some of these communities on its own by establishing
chat areas and community programs. These programs will be designed to build customer

5.1.4 Threats

1. Rapidly falling cost of Internet access. The cost of access to the Internet for home users is
dropping rapidly. Internet access may become so cheap and affordable that nobody will
be willing to pay for access to it. Sip ‘n’ Surf is aware of this threat and will closely
monitor pricing.
2. Emerging local competitors. Currently, it is enjoying a first-mover advantage in the local
Club market. However, additional competitors are on the horizon, and we need to be
prepared for their entry into the market. Many of our programs will be designed to build
customer loyalty, and it is our hope that our quality service and up-scale ambiance won't
be easily duplicated.

5.2 Marketing Strategy

Sip ‘n’ Surf Club will position itself as an upscale internet, gaming and food zone provider. It
will serve high-quality coffee and beverages at a competitive price. It will use advertising as
its main source of promotion. Ads placed in Gulf News, Khaleej Times and Emirates Today
will help build customer awareness. Accompanying the ad will be a coupon for a free hour of
Internet travel. Furthermore, the Club will give away three free hours of Internet use to
beginners who will sign-up for the club’s membership.

The Club has budgeted AED4,000 for this promotional efforts. Sip ‘n’ Surf Club realizes that
in the future, when competition enters the market, additional revenues must be allocated for
promotion in order to maintain market share. Page | 13
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5.3 Pricing Strategy

The Club bases its prices for coffee and specialty drinks on the "retail profit analysis"
provided by our suppliers, Nestle Middle East Consumer Service, Uniliver Gulf FZE and Al
Manama Food Stuffs.

Determining a fair market, hourly price, for online use is more difficult because there is no
direct competition from another cyber-cafe in the City. Therefore, the Club considered a
pricing strategy wherein the customers pay AED1 for each 15 minutes which comes up to
AED4 for an hour. This pricing strategy is flexible for those people who wish to use internet
for a limited time.

5.4 Sales Strategy

As a retail establishment, Sip ‘n’ Surf Club employs people to handle sales transactions.
Computer literacy is a requirement for the Club employees. If an employee does not possess
basic computer skills when they are hired, they are trained by our full-time technician. Our
full-time technician is also available for customers in need of assistance. Sip ‘n’ Surf’s
commitment to friendly, helpful service is one of the key factors that will distinguish the Club
from other competitors.

5.5 Sales Forecast

Sales forecast data is presented in the chart and table below.

Sales Forecast
2009 2010 2011
Unit Sales
Coffee (based on average) 18,250 20075 22083
Specialty Drinks (based on average) 18,250 20075 22083
Email Memberships 9,125 10038 11042
Hourly Internet Fees 36,500 40150 44165
Baked Goods (based on average) 21,900 24090 26499
Total Unit Sales 1,04,025 1,14,428 1,25,872
Unit Prices
Coffee (based on average) AED5.0 AED5.0 AED5.0
Specialty Drinks (based on average) AED6.0 AED6.0 AED6.0
Email Memberships AED2.0 AED2.0 AED2.0
Hourly Internet Fees AED4.0 AED4.0 AED4.0
Baked Goods (based on average) AED5.0 AED5.0 AED5.0
Coffee (based on average) AED91,250 AED1,00,375 AED1,10,415
Specialty Drinks (based on average) AED1,09,500 AED1,20,450 AED1,32,498
Email Memberships AED18,250 AED20,076 AED22,084
Hourly Internet Fees AED1,46,000 AED1,60,600 AED1,76,660
Baked Goods (based on average) AED1,09,500 AED1,20,450 AED1,32,495
Total Sales AED4,74,500 AED5,21,951 AED5,74,152 Page | 14
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Direct Unit Cost

Coffee (based on average) AED2.50 AED2.5 AED2.5
Specialty Drinks (based on average) AED3.0 AED3.0 AED3.0
Email Memberships AED1.50 AED1.5 AED1.5
Hourly Internet Fees AED0.49 AED0.49 AED0.49
Baked Goods (based on average) AED2.50 AED2.50 AED2.50
Direct Cost of Sales
Coffee (based on average) AED45,625 AED50,188 AED55,208
Specialty Drinks (based on average) AED54,750 AED60,225 AED66,249
Email Memberships AED13,688 AED15,057 AED16,563
Hourly Internet Fees AED17,885 AED19,674 AED21,641
Baked Goods (based on average) AED54,750 AED60,225 AED66,248
Total Direct Cost of Sales AED1,86,698 AED2,05,369 AED2,25,909 Page | 15
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Management Summary

6.0 Management Summary

Sip ‘n’ Surf Club owned and operated by seven partners, out of which two will be involved in
the management decisions and the remaining five will be inactive partners.

6.1 Personnel Plan

The staff will consist of six full-time employees working 336 hours a month at AED1,000 per
month. In addition, one full-time technician (who is more technologically oriented to handle
minor terminal repairs/inquiries) will be employed to work 336 hours a month at AED1,200
per month. This simple structure provides a great deal of flexibility and allows
communication to disperse quickly and directly. Because of these characteristics, there are
few coordination problems seen at Sip ‘n’ Surf Club that are common within larger
organizational chains. This strategy will enable the Club to react quickly to changes in the

Personnel Plan
Partner 1 AED13,075
Partner 2 AED13,075
Partner 3 AED5,230
Partner 4 AED5,230
Partner 5 AED5,230
Partner 6 AED5,230
Partner 7 AED5,230
Full-Time 1 AED12,000
Full-Time 2 AED12,000
Full-Time 3 AED12,000
Full-Time 4 AED12,000
Full-Time 5 AED12,000
Full-Time 6 AED12,000
Technician AED14,400 Page | 16
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Financial Plan
7.0 Financial Plan

Sales: Sip ‘n’ Surf estimated 100 people coming to our club on a daily basis and an average
of 50 customers will be opting for coffee and other eatables.

Cost of Goods Sold: The cost of goods sold for hot and cold beverages will be 50% of the
selling price and the cost of bakery items will also be 50% of the selling price. The cost of
Internet hours sold will be 12.25%of the selling price and the cost of e-mail accounts will be
34% of the selling price.

Fixture Costs: Fixture costs associated with starting Sip ‘n’ Surf are the following: 40
computers = AED1,20,000, one color laser printer = AED1,150, one scanner = AED350, one
espresso machine = AED24,300, two coffee/food preparation counters = AED3,600, one
information display counter = AED3,600, fifteen stools = AED2,000, forty computer desks
and w/chairs = AED10,000, stationery goods = AED2,000, two telephones = AED100,
decoration expense = AED50,000, four billiard tables = AED36,000, four foosball table =
AED40,000 for a total fixture cost of AED2,193,100.

Profit Distribution: The partners Mohammad Faisal and Sufiyan Farooq will share 25% of the
total net profit each and the rest M.Kamrul Hassan, Maithreyi Muralidharan, Jeciya Abdul
Jabbar, Amanda Sequeira and Amber Fernandes, each will share 10% of the net profit of Sip
‘n’ Surf Club.

Payroll Expense: Sip ‘n’ Surf Club intends to hire six full-time employees at
AED1,000/month and a full-time technician at AED1,200/month. The total cost of employing
seven people at these rates for the first and second year is AED7,200/month and as the
payrolls of the employees will be increased in the third year the total expense will be

Ownership Expense: Sip ‘n’ Surf will acquire the land of 4,000 square foot for
AED102/sq.foot which comes up to AED4,08,000.

Utilities Expense: The only utilities expense that the club must pay is the phone bill, DSL
connection, fax and data service, a mobile line and electricity expense. The basic monthly
charge for landline is AED50, fax and data AED25/quarter, DSL AED350/month.

Marketing Expense: The Club will allocate AED4,000 for promotional expenses at the time
of start-up. These amounts will be used for advertising in local newspapers in order to build
consumer awareness. For additional information, please refer to section 5.0 of the business

Insurance Expense: The Club has allocated AED10,500 for insurance only for the internet
zone for its first year of operation. As revenue increases in the second it will allocate a total
amount of AED15,000 which will cover both internet and gaming zone and in the third year
of business, it will intend to invest more money for all the three zones, which will be
AED20,000 for insurance coverage. Page | 17
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Legal Expenses: The cost of obtaining legal consultation for the first year of the operation, in
order to draw up the paper work necessary for a partnership business is AED25,000 and
thereafter it will be AED10,000 every year. The amount is subjected to change according to
the rules and regulations of the government.

Depreciation: In depreciating our capital equipment, the Club will use straight line method.
We depreciated our computers over a three-year time period and our fixtures over five years.

7.1 Projected Profit and Loss

P & L data is presented in the table below.

Projected Profit and Loss

Sales AED4,74,500
Direct cost of sales AED1,86,698
Gross Margin AED 2,87,802
Operating Expenses:
Payroll AED86,400
Marketing Expenses AED4,000
Legal Expenses AED10,000
Insurance AED10,500
Utilities AED20,600
Land Installments AED1,02,000
Other Expenses AED2,000
Total Operating Expenses AED2,35,500
Net Profit AED52,302

7.2 Projected Cash Flow

Cash flow data is presented in the table below:

Projected Cash Flow

Cash Receives:
Cash Sales AED4,74,500
Total Cash Receives AED4,74,500
Expenditures from operations:
Payroll AED86,400
Utilities AED20,600
Marketing Expenses AED4,000
Insurance AED10,500
Legal Expenses AED10,000
Land installments AED1,02,000
Other Expenses AED2,000
Total Cash Spent AED2,35,500
Net Cash Flow AED2,39,000
Cash Balance AED3,26,012 Page | 18
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7.3 Projected Balance Sheet

Our projected balance sheet is presented in the table below:

Projected Balance Sheet for the Year Ended 2009

Capital and Liabilities Amount Assets Amount
Current Liabilities Current Assets
Accounts Payable --- Cash AED326012
Current Borrowings --- Inventory AED1,990

Long Term Liabilities Fixed Assets

Repayment of property Land AED3,06,000
installments AED1,02,000 Computers AED1,20,000
Billiard Tables AED36,000
Owners Capital Foosball Tables AED40,000
Paid-in Capital AED7,00,000 Coffee Machines AED24,300
Net Profit AED52,302

Total AED8,54,302 Total AED8,54,302 Page | 19