[Insert logo]

INSERT COMPANY NAME

BUSINESS PLAN

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Contact: OWNER’S NAME

INSERT ADDRESS/CONTACT INFO

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INSERT WEBSITE
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by COMPANY NAME in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of COMPANY NAME.

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means and
that any disclosure or use of same by reader may cause serious harm or damage to COMPANY NAME.

Upon request, this document is to be immediately returned to COMPANY NAME.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a business plan. It does not imply an offering of securities.

 Table of Contents

1.0 Executive Summary...............................................................................1

Chart: Highlights...................................................................................1
1.1 Objectives..........................................................................................2
1.2 Mission..............................................................................................2
1.3 Keys to Success..................................................................................2
2.0 Company Summary................................................................................2
2.1 Company Ownership............................................................................3
2.2 Start-up Summary..............................................................................3
Table: Start-up......................................................................................4
Chart: Start-up......................................................................................4
3.0 Products...............................................................................................5
4.0 Market Analysis Summary.......................................................................5
4.1 Market Segmentation...........................................................................6
Table: Market Analysis............................................................................6
Chart: Market Analysis (Pie)....................................................................7
4.2 Target Market Segment Strategy...........................................................7
4.3 Industry Analysis................................................................................7
4.3.1 Competition and Buying Patterns.....................................................7
5.0 Web Plan Summary................................................................................7
5.1 Website Marketing Strategy..................................................................8
5.2 Development Requirements..................................................................8
6.0 Strategy and Implementation Summary....................................................8
6.1 SWOT Analysis....................................................................................8
6.1.1 Strengths.....................................................................................8
6.1.2 Weaknesses..................................................................................9
6.1.3 Opportunities................................................................................9
6.1.4 Threats........................................................................................9
6.2 Competitive Edge................................................................................9
6.3 Marketing Strategy..............................................................................9
6.4 Sales Strategy..................................................................................10
6.4.1 Sales Forecast.............................................................................10
Table: Sales Forecast.........................................................................10
Chart: Sales Monthly.........................................................................11

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 Table of Contents

Chart: Sales by Year..........................................................................11

6.5 Milestones........................................................................................11
Table: Milestones.................................................................................12
7.0 Management Summary.........................................................................12
7.1 Personnel Plan..................................................................................12
Table: Personnel..................................................................................13
8.0 Financial Plan......................................................................................13
8.1 Start-up Funding...............................................................................13
Table: Start-up Funding........................................................................14
8.2 Important Assumptions......................................................................14
8.3 Break-even Analysis..........................................................................15
Table: Break-even Analysis....................................................................15
Chart: Break-even Analysis...................................................................15
8.4 Projected Profit and Loss....................................................................15
Table: Profit and Loss...........................................................................16
Chart: Profit Monthly............................................................................17
Chart: Profit Yearly...............................................................................17
Chart: Gross Margin Monthly..................................................................18
Chart: Gross Margin Yearly....................................................................18
8.5 Projected Cash Flow...........................................................................18
Table: Cash Flow..................................................................................19
Chart: Cash.........................................................................................20
8.6 Projected Balance Sheet.....................................................................20
Table: Balance Sheet............................................................................21
8.7 Business Ratios.................................................................................21
Table: Ratios.......................................................................................22
Table: Sales Forecast...................................................................................1
Table: Personnel.........................................................................................2
Table: Profit and Loss..................................................................................3
Table: Cash Flow.........................................................................................4
Table: Balance Sheet...................................................................................5

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 COMPANY NAME Business Plan

1.0 Executive Summary

COMPANY NAME will be located in INSERT NAME subdivisions of INSERT LOCATION. The

restaurant will provide a moderately priced, quick-casual style restaurant serving Baja fresh
food. It is this Company's intent to become the leading quick-casual restaurant in this area.

To do so, INSERT NAME is applying for $545,000 in grant money, to support its plan to purchase
real estate start-up equipment for both the kitchen and the dining room as well as to cover legal
expenses, permits, design and engineering costs. INSERT NAME also intends to take out a loan
in order to cover the cost of purchasing the land and construction costs for building the
restaurant & surrounding campus The Company is projecting annual sales to exceed $2.5
million by the end of the third year.

COMPANY NAME will operate in an established area of INSERT LOCATION implementing its past
experience within this Industry (currently operating the number one restaurant out of 13
franchises), Our plans are to take advantage of an opportunity to capture a large market in this
underserved area of town.. COMPANY NAME competitive edge lies in the quality of the food it
produces, which goes hand in hand with the professional service it offers. INSERT NAME plans to
expand so that he can fulfill the needs and desires of its guests, at a high level, while still paying
attention to the details that will provide patrons with a fun and family friendly dining experience.

Chart: Highlights

Highlights

$2,400,000

$2,100,000

$1,800,000
Sales
$1,500,000
Gross Margin
$1,200,000
Net Profit
$900,000

$600,000

$300,000

$0
Year 1 Year 2 Year 3

Page 1
 COMPANY NAME Business Plan

1.1 Objectives

COMPANY NAME is a land purchase with new restaurant development. The Company has several
objectives, which are:-

1. Secure the property.

2. Complete drawings, obtain permits and all necessary licenses.
3. Construct the building and therefore stimulate and fuel neighborhood growth.
4. Complete construction and be operating within 6 months.
5. Create the leading fast-casual restaurant in this community
6. Improve & support these communities.

1.2 Mission

COMPANY NAME will establish itself as the premier casual dining restaurant in this area while
maintaining uncompromising principles as the Company continues to grow its restaurant
business. The six following guiding principles will help to measure the appropriateness of its
decisions:

1. Provide a fun and friendly work environment, treating the Company’s employees with dignity

and respect.

2. Embrace diversity as an essential component in the way that it conducts business

3. Apply standards of excellence to the food production, preparation, and service to its guests.

4. Build lasting relationships with the restaurant’s employees and guests.

5. Contribute positively to communities and the environment.

6. Recognize that profitability is essential to future success.

1.3 Keys to Success

COMPANY NAME has several keys to success. They are as follows:-

1. Good leadership skills with 6 years of experience leading the number Berryhill1 franchise
restaurant in annual sales.

2. Good location with minimal competition in this established community in [CITY], [STATE].

3. Strong network team at existing location in the [CITY] Heights.

4. Quality food offered at affordable prices.

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 COMPANY NAME Business Plan

5. Atmosphere - COMPANY NAME is a casual & exciting dining experience.

2.0 Company Summary

The proposed location of the restaurant is in the INSERT NAME area of INSERT LOCATION. 
COMPANY NAME is an exciting casual atmosphere concept. This concept requires a free standing
building, a lease space or a mall location of approximately 2700 square feet to 5000 square feet.
This proposed site will be a newly constructed free standing (4,500 square foot) building with
2200 sq. ft. patio area. There will be a minimum of 80 parking spaces available, as well as
additional dedicated areas for bicycle and motorcycle parking, to meet the demands of
anticipated customer traffic.

The décor for COMPANY NAME restaurant can be described as a Baja theme: beach on the
ocean, palm trees, with the hint of a cool breeze. COMPANY NAME invites its guests to feel
relaxed in a casual atmosphere. The restaurant will have approximately 100 seats in the dining
area and another 50 seats in the bar area. Additionally there will have another 100+ seats
available in the outside patios. Patios will be inviting with two water features. The restaurant will
also provide catering services providing deliveries as well as catering to offsite parties. The
furnishings will reflect the projected image of the décor and restaurant concept.

2.1 Company Ownership

COMPANY NAME will be owned and operated by INSERT NAME.

2.2 Start-up Summary

INSERT NAME intends to secure $545,000 in grant funding to help purchase current assets. A
bank loan will be taken out to help pay for the long term asset of land acquisition and building
construction, additionally INSERT NAME will supplement $300,000 as Owner’s investment.

In order to start up this new restaurant, INSERT NAME will first need to hire the professional
services of an architect and engineer ($45,000), as well as a lawyer (at $1,500 for lease and
incorporation) and a project consultant and an accountant ($4,000). All these services add up to
an approximate total of $50,500.

Organizational and Development costs ($35,900) will also be covered by grant funding. This
includes $12,5000 for deposits (utilities, sales tax, etc), insurance binders (property, causality,
liability) at $7,500 and working permits costing $1,400. Other licenses and permits will cost
$7,400, operating banks & petty cash will total $2,100, menu/menu boards will cost $3,500 and
travel, research and concept development will amount to $1,500.

Exterior finishes and equipment will total $28,200 and includes landscaping ($21,000) and the
purchase of exterior signs and decorations ($17,200).

Pre-opening expenses amount to $45,200 and includes construction period utilities. It also
covers opening inventories, such as food & beverage ($14,000), paper ($2,400), retail
merchandise ($600) as well as other restaurant supplies ($1,100). Marketing costs will also need
to be taken into account, with $5,400 being spent on advertising, $7,200 on public relations and
$12,000 on opening parties.

The Company will also need to purchase Current Assets such as kitchen equipment ($65,000),
dining room furniture ($60,000 for chairs and tables etc) and interior finishes and equipment
Page 3
 COMPANY NAME Business Plan

($71,140 for kitchen small wares, phone systems, office equipment/computers, office supplies,
security system, cash registers, artwork & specialty decor), for a total of $196,140.

The Company's long-term asset consists of purchasing the plot of land at $1,750,000 and hiring
contractors to construct the building, at a cost of approximately $900,000. A $2,350,000 loan
will cover this purchase, alongside $300,000 of the Owners investment.

Table: Start-up

Start-up

Requirements

Start-up Expenses
Professional Services $50,700
Organizational & Development $35,900
Pre-Opening Expenses $45,400
Total Start-up Expenses $132,000

Start-up Assets
Cash Required $300,000
Other Current Assets $113,000
Long-term Assets $2,650,000
Total Assets $3,063,000

Total Requirements $3,195,000

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 COMPANY NAME Business Plan

Chart: Start-up

Start-up

$2,800,000

$2,400,000

$2,000,000

$1,600,000

$1,200,000

$800,000

$400,000

$0
Expenses Assets Investment Loans

3.0 Products

COMPANY NAME will be a moderately priced, quick-casual style restaurant serving Baja fresh
food. The menu will include fish tacos, our namesake COMPANY NAME tamales, Enchiladas,
Quesadillas, Sizzling Fajitas, Seafood & quality specialty platters amongst other exciting specials.
There will also be fresh made soups, salads and a variety of appetizers and deserts. There will
be a Breakfast, Lunch, Dinner and a Late Night menu. The service style of the restaurant will be
counter service where the guest will order from the counter and the food will be delivered to
their table. The restaurant will also accommodate a full bar and lounge area. This area will also
be a comfortable and exciting part of this location, with six 42-inch TV's and a 70-inch
projector TV celebrating special events, sports and entertainment. There will also be a 2,200sf
outside patio area with two inviting water features.

COMPANY NAME will be open seven days a week. The restaurant anticipates serving
continuously through breakfast, lunch & dinner, meal periods. The expected hours of operation are
as follows:

  Breakfast Lunch Dinner

Monday 8:00am- 11:00am- 4:00pm-
11:00am 4:00pm 10:00pm
Tuesday 8:00am- 11:00am- 4:00pm-
11:00am 4:00pm 10:00pm
Wednesday 8:00am- 11:00am- 4:00pm-
11:00am 4:00pm 2:00am

Thursday 8:00am- 11:00am- 4:00pm-

11:00am 4:00pm 2:00am

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 COMPANY NAME Business Plan

Friday 8:00am- 11:00am- 4:00pm-

11:00am 4:00pm 2:00am
Saturday 8:00am- 11:00am- 4:00pm-
11:00am 4:00pm 2:00am

Sunday 8:00am- 11:00am- 4:00pm-

11:00am 4:00pm 10:00pm

 
The restaurant should be perceived as a quick, casual, kid-friendly establishment appealing to a
comfortable mix of people, both families and singles of all ages.

4.0 Market Analysis Summary

Approximately 48% of all food dollars spent by consumers is spent in eating and drinking
establishments. That figure is up dramatically since 1955 in which only 25% of all consumers
spending for food and drink went to restaurants. 43% of adults are of the opinion that eating
away is as cost effective as cooking at home and cleaning up.
 
Expenditures on food away from home rise dramatically for households with income before taxes
of $30,000 or more. Household incomes of greater than $75,000 have increased to 28%. Higher
income households tend to spend more of their food dollar in meals away from home.
 
According to the National Restaurant Association’s Restaurant Spending the typical American
household spent $2,634 on food away from home, a per capita expenditure of $1054.
Households in metropolitan areas tend to spend more than households in non-metropolitan
areas. Households with income over $70,000 spent an average of $4,544, $1,466 per capita on
food away from home. Other trends noted in the report showed that adults between 35 and 54
spend more on food away from home as a result of their higher incomes. Of that group,
households headed by 35-44-year-olds spent an average of $3,234 for food away from home.
The baby boomer population, the demographic segment that has the most significant impact in
terms of marketing and menu mix, is getting older. By the year 2010, 19% of the population will
be between the ages of 50 and 64. The changing dining habits of this group will greatly influence
menus and restaurant concepts in the coming years.
 
Statistics show that the average adult purchased a meal 5.3 times per week in 2004. Flourishing
economic growth, changing lifestyles and a diverse ethnic population have contributed to the
variety of cuisine and restaurant concepts, making the U.S. a world leader in restaurant
innovation. Ethnic cuisines have mingled with traditional restaurant fare resulting in varied
menus at every industry segment.
  
Eating places, defined as full-service, limited service, cafeterias, social caterers and snack bars
by the NRA, contribute the bulk of industry food and drink sales. Of that segment, full-service
restaurant sales for 2009 are projected to reach $183 billion, a real-growth decline of 2.5% over
2008. Quick-service sales are set to increase by .4% and topping $157 billion in 2008.

4.1 Market Segmentation

COMPANY NAME analyzed the potential population growth of the adult population, as research
has shown that these are the customers who will spend the most amount of money dining
outside of the home.

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 COMPANY NAME Business Plan

Early to mid 20 year olds eat out a lot, especially at affordable and casual restaurants, both for
the convenience of not having to clean up at home and to socialize.

The convenience factor also plays a large role in why late 20-early 40s decide to eat out,
especially as the size of their family begins to grow, it becomes a lot easier to eat at a relatively
inexpensive and convenient restaurant that serves good food.

The mid 40s to later 50s represent the population who are earning the most, and as studies
show, the more people earn, the more money they spent eating outside, therefore representing
another part of our target market.

Also, COMPANY NAME plans to target the baby boomers who are now in their late 50s to early
60s.

Table: Market Analysis

Market
Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Growth CAGR
Customers
20-24 2% 161,754 164,989 168,289 171,655 175,088 2.00%
year olds
25-34 2% 354,444 361,533 368,764 376,139 383,662 2.00%
year olds
35 to 54 2% 540,987 551,807 562,843 574,100 585,582 2.00%
year olds
55 to 64 2% 59,438 60,627 61,840 63,077 64,339 2.00%
year olds
Total 2.00% 1,116,623 1,138,956 1,161,736 1,184,971 1,208,671 2.00%

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 COMPANY NAME Business Plan

Chart: Market Analysis (Pie)

INCLUDEPICTURE "ooxWord://word/media/image3.emf" \* MERGEFORMATINET

Market Analysis (Pie)

20-24 year olds

25-34 year olds

35 to 54 year olds

55 to 64 year olds

4.2 Target Market Segment Strategy

The target market for the quick casual dining industry is very broad and should incorporate most
demographic regions.  Almost all ages, genders, races, and incomes should be considered
potential customers. COMPANY NAME plans to target these groups through public relations and
advertising, as well as raise awareness of the new restaurant via the Company's first restaurant,
COMPANY NAME in the Heights. They also plan on having an email campaign where it can
promote special events and offers to guests on their mailing list.

4.3 Industry Analysis

There are no specific competitors in the INSERT NAME area at this time other than Dominos
Pizza and other fast-food chains such as Subway, Burger King and Jack in the Box. COMPANY
NAME will be an exciting casual dining experience for all.

4.3.1 Competition and Buying Patterns

COMPANY NAME plans to open in an established and family friendly area of INSERT LOCATION.
Currently, the competition is from fast-food chains like Subway, Dominos Pizza and Burger King.
This gives COMPANY NAME an opportunity to take advantage of this gap in the market and give
the local community a place in which to dine enjoying quality food while also spending some
quality time together as a family. 

Within the restaurant business, customers put price and reputation above all else - their
willingness to pay a higher price is directly proportional to a higher level of food quality within a
comfortable atmosphere. COMPANY NAME reputation as one of the top Mexican restaurants in
[CITY], [STATE] has already been solidified through word of mouth from repeat customers who
enjoy their fresh quality food, offered at reasonable prices, in a relaxing fun and family-friendly

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 COMPANY NAME Business Plan

environment.  COMPANY NAME aims to build up a reputation of the same caliber at this new
location.

5.0 Web Plan Summary

Nearly two thirds of all restaurants now have websites including 9 out of 10 fine dining
restaurants. In addition to posting information such as menu and location, an increasing number
are expected to offer other services such as reservations, delivery and takeout ordering. The
website for the COMPANY NAME in the Heights restaurant matches the decor of the restaurant,
has a detailed map, location and contact information alongside a menu, gallery, events list
and party catering information. COMPANY NAME therefore plans on using this as a template
for its website.

5.1 Website Marketing Strategy

COMPANY NAME plans on having a link to their website at the bottom of every email it sends out
as part of the mailing list, so that guests can access information about upcoming events and
look at the menu in advance.  The Company will also buy target key word searches to
ensure the website comes up as one of the first search results for casual dining in INSERT
LOCATION.  Word of mouth will also help to market the website.

5.2 Development Requirements

The restaurant plans on using the same web designer who created the current website

(www.COMPANY NAME.com) to use it as the template to design the COMPANY NAME website.

6.0 Strategy and Implementation Summary

The receipt of $545,000 in grant funding will be used by INSERT NAME for the following:-

Amount Use of Funds

$65,000 Bar/Kitchen equipment
$60,000 Bar/Dining room furniture
$71,140 Interior Finishes & Equipment (phone & music systems, office supplies, signs &
artwork, etc)
$35,900 Organization & Development (deposits, building permits & menus, etc)

$50,500 Professional Services (legal, architect, engineering & accountant, etc)

$38,200 Exterior Finishes & Equipment (landscaping, exterior signs, etc)

$45,200 Pre-Opening Expenses (opening inventories & marketing)

$179,06 Working capital
0
$545,00 Total
0
 

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 COMPANY NAME Business Plan

6.1 SWOT Analysis

INSERT NAME’s major strengths lies in his six years of experience owning & operating the top
COMPANY NAME franchise restaurant in INSERT LOCATION. It is this that will propel the
Company forward to create a new and fresh restaurant with a fun and friendly atmosphere,
where people can come to eat quality food in a relaxing atmosphere. The restaurant's
current opportunity is also its weakness, as INSERT LOCATION is dependent upon the sale of a
piece of land that is in a highly desirable location, in an established part of [CITY] [STATE]. This
area has minimal competition in terms of similar restaurants, therefore INSERT NAME would
then have to start looking at other location options within this community. The only threat
that they currently foresee is another economic downswing, however COMPANY NAME is
fortunate enough to be located in [CITY], [STATE] and is therefore not as at risk as other parts
of the US, according to most studies.

6.1.1 Strengths

INSERT NAME’s strengths will come first from the success of the Company's existing restaurant,
COMPANY NAME In the Heights, which produces a bottom line of 22-25% net profit, well above
the industry par.  By transferring these operations skills with controllable practices, the
restaurant will be able to create a fun and casual environment for our guests to relax in and
enjoy.  It will also remember the importance of guest services and employee care and
maintain these at a high level. Its last major strength will come from securing the location they
are currently looking to purchase, as there is limited restaurant competition of this magnitude
servicing these communities.

6.1.2 Weaknesses

The only current weakness comes from the fact that INSERT NAME is dependent upon the
current land owner selling his property. If he chooses not to take INSERT NAME’s offer, he will
have to look elsewhere for land upon which to develop.

6.1.3 Opportunities

The major opportunity for INSERT NAME lies in securing this specific piece of land so that it can
build the restaurant in a highly underserved area of INSERT LOCATION.

6.1.4 Threats

Although INSERT LOCATION economy has not been hit as hard compared to other areas of the
US, there's always the possibility of another economic downturn, which could potentially
threaten any business. Currently however, INSERT LOCATION has been listed as forth in
metropolitan areas for coming out of the current recession.

6.2 Competitive Edge

The restaurant's main competitive edge lies in the fact that the owner already has the
knowledge and skills to run a number one restaurant. He can therefore bring this experience to
another location and capitalize on the fact that this will be the first restaurant of its kind in the
area offering affordable fresh quality food in a casual and relaxing environment.

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 COMPANY NAME Business Plan

6.3 Marketing Strategy

COMPANY NAME will aggressively seek to build a database of our guests. Guests will have an
opportunity to be included in the database so they can participate in restaurant promotions such
as birthday or anniversary cards, email notification of upcoming specials, coupons,
etc. Employees will gather names in a variety of manners including: business card drop for free
lunch, guests signup book with promotional signage and menu insert promotion, amongst
others.
 
COMPANY NAME anticipates capitalizing on their customer database by also instituting an
effective email marketing strategy. They will give customers the option to receive email
communications from the restaurant. Customer’s privacy will be protected and they will not
email customers without their permission. The email marketing strategy will therefore include an
awareness not to inundate guests with email. Promotional content will be developed with the
goal of enticement versus quantity. The program should also incorporate tools to measure
effectiveness and customer satisfaction.
 
The restaurant’s marketing plan will include an active Frequent Diner program. The program will
allow us to reward our guests for their continued patronage. The program shall have flexibility to
allow us to be creative in our reward structure. Additionally, it should allow us to adapt to
changing market trends.
 
COMPANY NAME anticipates implementing a Frequent Diner program as a function of our POS
(Point of Sale) system. Several of the major POS systems have this feature. Alternatively, there
are several stand alone programs and the management team will thoroughly review each
program to determine which system most effectively meets the requirements to make COMPANY
NAME successful. Management will also constantly find methods to promote the restaurant to
our guests on a daily basis.
 

6.4 Sales Strategy

Management has already established relationships with qualified suppliers that can provide

competitively priced quality products, delivered according to the schedule that benefits the
restaurant.  Alternate suppliers will be identified for use if the regular supplier cannot deliver the
products needed, or if there are others who can provide the same quality at a lower price.
 
Management will also endeavor to create and maintain a positive, appealing image for the
restaurant. This image will be consistently portrayed throughout all sales promotions. Employees
will be trained in guest services, in order to help secure a loyal base of patrons, across the range
of our target markets.

6.4.1 Sales Forecast

COMPANY NAME sales forecast is based upon the success it has at its current restaurant, INSERT
NAME. The new restaurant, will be providing moderately priced meals for people of all
ages within the immediate and surrounding areas.   The receipt of grant money will enable it to
reach these targets.  By securing the plot of land which is in an established neighborhood with
minimal competition, COMPANY NAME will be a very attractive option for the local populations.
Based off of the economic trends of the past few years, these sales forecast numbers will be
attainable even with the economy the way it is today: reaching these sales will increase cash
flow and allow the Company to reach its goals over the coming years. 

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 COMPANY NAME Business Plan

11 12
Table: Sales Forecast

10 Month
9 Month
Sales Forecast

8 Month
Year 1 Year 2 Year 3

7 Month
Sales
Food & Beverages $2,322,780 $2,369,244 $2,416,629

6 Month
$0 $0

5 Month
Total Sales $2,322,780 $2,369,244 $2,416,629

4 Month
Direct Cost of Sales Year 1 Year 2 Year 3

3 Month
Food & Beverage $511,014 $568,291 $579,991
Paper 2 Month
1 Month $69,684 $82,924 $84,582
Subtotal Direct Cost of Sales $580,698 $651,215 $664,573
MonthMonth

Chart: Sales Monthly

Sales Monthly

$210,000

$180,000

$150,000
Food & Beverages
$120,000

$90,000

$60,000

$30,000

$0

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 COMPANY NAME Business Plan

Chart: Sales by Year

Sales by Year

$2,400,000

$2,100,000

$1,800,000
Food & Beverages
$1,500,000

$1,200,000

$900,000

$600,000

$300,000

$0
Year 1 Year 2 Year 3

6.5 Milestones

INSERT NAME’s major milestone is to secure the land, Develop site & complete construction of
restaurant and be operating within six months. His other main goal is to increase annual sales
exceeding $2.5 million by the end of the third year of operations.  The restaurant also seeks to
help improve the local community by providing them with the option to eat fresh quality food in
a fun and family friendly environment at affordable prices.

Table: Milestones

Milestones

Milestone Start End Date Budget Manager Department

Date
Secure Grant $545,000 INSERT NAME Financial
Funding
Secure Land $1,750,000 INSERT NAME Acquisitions
Complete $900,000 INSERT NAME Construction
Construction in 6
months
Improve N/A INSERT NAME Operations
Neighborhood
Annual sales of N/A INSERT NAME Sales
$2.5+
Operating & $514,488 INSERT NAME Operations
employing
approximately 35

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 COMPANY NAME Business Plan

employees

Totals $3,709,488

7.0 Management Summary

COMPANY NAME plans on employing 35 employees total, including managers, cooks, cashiers,
food runners and bartenders. 
 
A thorough training program will be implemented for every position in the restaurant. Qualified
people filling those positions will be provided training materials and personal instruction. They
will learn the COMPANY NAME method of how to operate a successful restaurant.
 
Newly hired personnel will be instructed in guest services, safety, and health laws in addition to
the job functions of their respective positions. Training manuals for each position will be edited
to reflect the unique requirements of COMPANY NAME. Training programs will include specific
material to teach our employees about service attitudes, customer perception and how to deal
with guest requests. Management will conduct periodic staff meetings intended to review policy,
increase guest satisfaction and to keep a general line of communication between staff and
management.
 
All guest concerns will be empathetically acknowledged by the staff and immediately referred to
management. Programs will be in place to systematically to deal with various types of guest
concerns. More serious concerns will be documented and kept on file.

7.1 Personnel Plan

Employees receive discounted meals at the restaurant, for a total cost of approximately $200
per month. These figures are based on a certain number of shifts per week, which could alter
dependent upon how much business the Company is receiving any given day.

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 COMPANY NAME Business Plan

Table: Personnel

Personnel Plan
Year 1 Year 2 Year 3
Prep Cooks $44,052 $45,064 $46,064
Fry Cooks $43,321 $44,144 $45,144
Grill Cooks $51,617 $52,688 $53,688
Line cook $45,466 $45,640 $46,640
Counter Cashier $36,125 $37,384 $38,384
Counter cashier $31,020 $32,584 $33,584
Food Runner $40,708 $44,296 $45,296
Food Runner $64,956 $70,432 $71,432
Bar Tender $33,546 $34,256 $35,256
Management $120,000 $123,642 $126,762
Total People 35 35 35

Total Payroll $510,812 $530,130 $542,250

8.0 Financial Plan

COMPANY NAME growth depends on the ability to take advantage of the existing opportunities
identified in the SWOT analysis. Grant funding will enable the business to take care of start-up
costs and help secure a loan, which will ensure land acquisition and fund building
construction. By the end of the third year in business, COMPANY NAME intends to reach annual
sales of $2.5 million. Operating income then be able to provide on-going funding and cash flow,
producing steady growth and profits.

8.1 Start-up Funding

The receipt of $545,000 in grant funding will primarily be used to purchase both long and short
term assets in order to help with the start-up requirements, such as kitchen and dining room
equipment ($125,000) as well as help pay for professional services such as legal fees (total of
$50,500) and interior furnishings and equipment (security & phone systems, cash registers,
artwork/decor, music/sound systems and kitchen small wares all for $71,140. Exterior finishes
will total $38,200 and will include landscaping and signs. A total of $284,840 will therefore be
spent on starting up COMPANY NAME. The rest of the grant funding will be kept as working
capital.  

Owner Investment ($300,000) and long-term borrowing in the amount of $2,350,000 will cover
the purchase of the land ($1,750,000) and construction of the restaurant building ($900,000).

Page 15
 COMPANY NAME Business Plan

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $132,000
Start-up Assets to Fund $3,063,000
Total Funding Required $3,195,000

Assets
Non-cash Assets from Start-up $2,763,000
Cash Requirements from Start-up $300,000
Additional Cash Raised $0
Cash Balance on Starting Date $300,000
Total Assets $3,063,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding $0
Bills)
Other Current Liabilities (interest- $0
free)
Total Liabilities $0

Capital

Planned Investment
Owner $300,000
Investor (Grant funding) $545,000
Additional Investment Requirement $2,350,000
Total Planned Investment $3,195,000

Loss at Start-up (Start-up ($132,000)

Expenses)
Total Capital $3,063,000

Total Capital and Liabilities $3,063,000

Total Funding $3,195,000

Page 16
 COMPANY NAME Business Plan

8.2 Important Assumptions

The Average Percent Variable Cost is 25%

Estimated Monthly Fixed Cost is $88,086.

8.3 Break-even Analysis

The monthly revenue needed to break-even is $117,448.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $117,448

Assumptions:
Average Percent Variable 25%
Cost
Estimated Monthly Fixed Cost $88,086

Chart: Break-even Analysis

Break-even Analysis
$80,000

$60,000

$40,000

$20,000

$0

($20,000)

($40,000)

($60,000)

($80,000)
$0 $40,000 $80,000 $120,000 $160,000 $200,000
$20,000 $60,000 $100,000 $140,000 $180,000 $220,000

Page 17
 COMPANY NAME Business Plan

8.4 Projected Profit and Loss

The profit and loss table for COMPANY NAME is based on the performance of its existing INSERT
NAME restaurant which produces a slow but steady growth rate in sales.  These numbers are
somewhat dependent upon a recovering economy and the receipt of grant funding which would
enable the Company to cover all start-up expenses such as furnishings and equipment as well as
legal fees and insurance.

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $2,322,780 $2,369,244 $2,416,629
Direct Cost of Sales $580,698 $651,215 $664,573
Other Costs of Sales $0 $0 $0
Total Cost of Sales $580,698 $651,215 $664,573

Gross Margin $1,742,082 $1,718,029 $1,752,056

Gross Margin % 75.00% 72.51% 72.50%

Expenses
Payroll $510,812 $530,130 $542,250
Marketing/Promotion $38,400 $39,552 $40,739
Depreciation $69,816 $69,816 $69,816
Occupancy Costs $172,884 $176,341 $179,868
Utilities $77,160 $79,475 $81,859
Repairs & Maintenance $16,800 $17,304 $17,823
Payroll Taxes $76,622 $79,520 $81,338
Other $94,537 $97,378 $100,299

Total Operating Expenses $1,057,030 $1,089,516 $1,113,992

Profit Before Interest and $685,052 $628,514 $638,065

Taxes
EBITDA $754,868 $698,330 $707,881
Interest Expense $117,647 $113,788 $111,313
Taxes Incurred $170,221 $154,418 $158,026

Net Profit $397,183 $360,308 $368,726

Net Profit/Sales 17.10% 15.21% 15.26%

Page 18
 COMPANY NAME Business Plan

Chart: Profit Monthly

Profit Monthly

$40,000

$36,000

$32,000

$28,000

$24,000

$20,000

$16,000

$12,000

$8,000

$4,000

$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Chart: Profit Yearly

Profit Yearly

$400,000

$360,000

$320,000
$280,000

$240,000

$200,000

$160,000

$120,000
$80,000

$40,000

$0
Year 1 Year 2 Year 3

Page 19
 COMPANY NAME Business Plan

Chart: Gross Margin Monthly

Gross Margin Monthly

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

Chart: Gross Margin Yearly

Gross Margin Yearly

$1,800,000

$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0
Year 1 Year 2 Year 3

8.5 Projected Cash Flow

In 2010, INSERT NAME received $545,000 in grant funding which enabled him to purchase
current assets such as dining room, bar and kitchen equipment for a total of $196,140. INSERT
NAME additionally invested $300,000 also took out a loan in order to purchase the land and pay

Page 20
 COMPANY NAME Business Plan

for the development of the new restaurant COMPANY NAME for a total amount of $2,350,000 at
a long-term interest rate of 6%. The yearly interest repayment in 2011 totaled $149,738, with
principal payment adding up to $44,785. For 2012, monthly interest repayment will be $14,697
with annual principal repayments of $47,547.

Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $2,322,780 $2,369,244 $2,416,629
Subtotal Cash from Operations $2,322,780 $2,369,244 $2,416,629

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $80,000 $0 $0
New Other Liabilities (interest- $0 $0 $0
free)
New Long-term Liabilities $2,350,000 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $4,752,780 $2,369,244 $2,416,629

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $510,812 $530,130 $542,250
Bill Payments $1,227,424 $1,410,727 $1,433,630
Subtotal Spent on Operations $1,738,236 $1,940,857 $1,975,880

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current $80,000 $0 $0
Borrowing
Other Liabilities Principal $0 $0 $0
Repayment
Long-term Liabilities Principal $49,498 $49,498 $49,498
Repayment
Purchase Other Current Assets $196,140 $0 $0
Purchase Long-term Assets $2,650,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $4,713,874 $1,990,355 $2,025,378
Page 21
 MonthM7
COMPANY NAME Business Plan

Month
3 Month
4 Month
5 6
Net Cash Flow $38,906 $378,889 $391,251

Month
Cash Balance $338,906 $717,795 $1,109,046

MonthMonth
1 2
Chart: Cash

Cash
$400,000

$300,000

$200,000

Net Cash Flow

$100,000
Cash Balance
$0

($100,000)

($200,000)

8.6 Projected Balance Sheet

In 2010, INSERT NAME invested ($300,000) took out a loan for the amount of $2,350,000 in
order to secure purchase of land and develop new restaurant location “COMPANY NAME “INSERT
NAME also received grant funding in the amount of $545,000 to help purchase start-up assets
and as a result, was able to sustain a comfortable net-worth for the first year of operation,
onwards.

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 COMPANY NAME Business Plan

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $338,906 $717,795 $1,109,046
Other Current Assets $309,140 $309,140 $309,140
Total Current Assets $648,046 $1,026,935 $1,418,186

Long-term Assets
Long-term Assets $5,300,000 $5,300,000 $5,300,000
Accumulated Depreciation $69,816 $139,632 $209,448
Total Long-term Assets $5,230,184 $5,160,368 $5,090,552
Total Assets $5,878,230 $6,187,303 $6,508,738

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $117,544 $115,807 $118,014
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $117,544 $115,807 $118,014

Long-term Liabilities $2,300,502 $2,251,004 $2,201,506

Total Liabilities $2,418,046 $2,366,811 $2,319,520

Paid-in Capital $3,195,000 $3,195,000 $3,195,000

Retained Earnings ($132,000) $265,183 $625,491
Earnings $397,183 $360,308 $368,726
Total Capital $3,460,183 $3,820,491 $4,189,218
Total Liabilities and Capital $5,878,230 $6,187,303 $6,508,738

Net Worth $3,460,183 $3,820,491 $4,189,218

8.7 Business Ratios

The Industry used to create this profile was 'full service restaurant', using an Annual Sales
figure of $1,000,000-$249,999. With the securing of grant funding, COMPANY NAME will be able
to reach sales figures of over $2,499,999, thus creating small discrepancies between some of
the ratios. However, the ratios do suggest a growth in the Industry for the years 2010 and 2011,
which is concurrent with its Sales projections.

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 COMPANY NAME Business Plan

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry
Profile
Sales Growth n.a. 2.00% 2.00% 4.16%

Percent of Total Assets

Other Current Assets 6.19% 6.10% 6.00% 34.96%
Total Current Assets 23.76% 26.00% 28.31% 42.21%
Long-term Assets 76.24% 74.00% 71.69% 57.79%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 40.71% 40.14% 39.49% 16.39%

Long-term Liabilities 38.67% 35.06% 31.50% 26.65%
Total Liabilities 79.38% 75.20% 70.99% 43.04%
Net Worth 20.62% 24.80% 29.01% 56.96%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 75.00% 72.50% 72.50% 53.23%
Selling, General & 60.76% 60.92% 60.59% 28.00%
Administrative Expenses
Advertising Expenses 1.57% 1.59% 1.60% 4.61%
Profit Before Interest and Taxes 31.87% 29.09% 28.85% 1.09%

Main Ratios
Current 0.58 0.65 0.72 1.22
Quick 0.58 0.65 0.72 0.74
Total Debt to Total Assets 79.38% 75.20% 70.99% 54.18%
Pre-tax Return on Net Worth 38.06% 25.86% 22.79% 5.90%
Pre-tax Return on Assets 7.85% 6.41% 6.61% 2.70%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 14.24% 11.58% 11.91% n.a
Return on Equity 26.64% 18.10% 15.96% n.a

Activity Ratios
Accounts Payable Turnover 11.71 12.17 12.17 n.a
Payment Days 27 30 30 n.a
Total Asset Turnover 0.39 0.39 0.39 n.a

Debt Ratios
Debt to Net Worth 3.85 3.03 2.45 n.a
Current Liab. to Liab. 0.51 0.53 0.56 n.a

Liquidity Ratios
Net Working Capital ($1,073,769) ($909,694) ($731,570) n.a
Interest Coverage 2.76 2.32 2.44 n.a

Additional Ratios
Assets to Sales 2.59 2.58 2.57 n.a
Current Debt/Total Assets 41% 40% 39% n.a
Page 24
 COMPANY NAME Business Plan

Acid Test 0.58 0.65 0.72 n.a

Sales/Net Worth 1.87 1.56 1.34 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page 25
 Appendix

Table: Sales Forecast

Sales
Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Sales
Food & $173,185 $176,649 $180,182 $183,786 $187,462 $191,211 $195,035 $198,936 $202,915 $206,973 $211,112 $215,334
Beverages
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $173,185 $176,649 $180,182 $183,786 $187,462 $191,211 $195,035 $198,936 $202,915 $206,973 $211,112 $215,334

Direct Cost Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
of Sales 10 11 12
Food & $38,101 $38,863 $39,640 $40,433 $41,242 $42,067 $42,908 $43,766 $44,641 $45,534 $46,445 $47,374
Beverage
Paper $5,196 $5,300 $5,406 $5,514 $5,624 $5,736 $5,851 $5,968 $6,087 $6,209 $6,333 $6,460
Subtotal $43,297 $44,163 $45,046 $45,947 $46,866 $47,803 $48,759 $49,734 $50,728 $51,743 $52,778 $53,834
Direct Cost
of Sales

Page 1
 Appendix

Table: Personnel

Personnel Plan
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Prep Cooks $3,121 $3,121 $3,121 $3,521 $3,521 $3,521 $3,521 $4,121 $4,121 $4,121 $4,121 $4,121
Fry Cooks $2,985 $2,985 $2,985 $3,485 $3,485 $3,485 $3,485 $4,085 $4,085 $4,085 $4,085 $4,085
Grill Cooks $3,590 $3,590 $3,590 $4,224 $4,224 $4,224 $4,224 $4,790 $4,790 $4,790 $4,790 $4,790
Line cook $3,162 $3,162 $3,162 $3,720 $3,720 $3,720 $3,720 $4,220 $4,220 $4,220 $4,220 $4,220
Counter Cashier $2,577 $2,577 $2,577 $2,877 $2,877 $2,877 $2,877 $3,377 $3,377 $3,377 $3,377 $3,377
Counter cashier $2,237 $2,237 $2,237 $2,537 $2,537 $2,537 $2,537 $2,832 $2,832 $2,832 $2,832 $2,832
Food Runner $3,067 $3,067 $3,067 $3,367 $3,367 $3,367 $3,367 $3,608 $3,608 $3,608 $3,608 $3,608
Food Runner $4,918 $4,918 $4,918 $5,318 $5,318 $5,318 $5,318 $5,786 $5,786 $5,786 $5,786 $5,786
Bar Tender $2,285 $2,285 $2,285 $2,688 $2,688 $2,688 $2,688 $3,188 $3,188 $3,188 $3,188 $3,188
Management $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Total People 35 35 35 35 35 35 35 35 35 35 35 35

Total Payroll $37,943 $37,943 $37,943 $41,738 $41,737 $41,737 $41,737 $46,007 $46,007 $46,007 $46,007 $46,007

Page 2
 Appendix

Table: Profit and Loss

Pro Forma Profit and
Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Sales $173,185 $176,649 $180,182 $183,786 $187,462 $191,211 $195,035 $198,936 $202,915 $206,973 $211,112 $215,334
Direct Cost of Sales $43,297 $44,163 $45,046 $45,947 $46,866 $47,803 $48,759 $49,734 $50,728 $51,743 $52,778 $53,834
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $43,297 $44,163 $45,046 $45,947 $46,866 $47,803 $48,759 $49,734 $50,728 $51,743 $52,778 $53,834

Gross Margin $129,888 $132,486 $135,136 $137,839 $140,596 $143,408 $146,276 $149,202 $152,187 $155,230 $158,334 $161,500
Gross Margin % 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00% 75.00%

Expenses
Payroll $37,943 $37,943 $37,943 $41,738 $41,737 $41,737 $41,737 $46,007 $46,007 $46,007 $46,007 $46,007
Marketing/Promotion $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200
Depreciation $5,818 $5,818 $5,818 $5,818 $5,818 $5,818 $5,818 $5,818 $5,818 $5,818 $5,818 $5,818
Occupancy Costs $14,407 $14,407 $14,407 $14,407 $14,407 $14,407 $14,407 $14,407 $14,407 $14,407 $14,407 $14,407
Utilities $6,430 $6,430 $6,430 $6,430 $6,430 $6,430 $6,430 $6,430 $6,430 $6,430 $6,430 $6,430
Repairs & $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400
Maintenance
Payroll Taxes 15% $5,691 $5,691 $5,691 $6,261 $6,261 $6,261 $6,261 $6,901 $6,901 $6,901 $6,901 $6,901
Other $7,879 $7,878 $7,878 $7,878 $7,878 $7,878 $7,878 $7,878 $7,878 $7,878 $7,878 $7,878

Total Operating $82,768 $82,767 $82,767 $87,131 $87,131 $87,131 $87,131 $92,041 $92,041 $92,041 $92,041 $92,041
Expenses

Profit Before Interest $47,120 $49,719 $52,369 $50,708 $53,465 $56,277 $59,145 $57,161 $60,146 $63,189 $66,293 $69,459
and Taxes
EBITDA $52,938 $55,537 $58,187 $56,526 $59,283 $62,095 $64,963 $62,979 $65,964 $69,007 $72,111 $75,277
Interest Expense $10,241 $10,136 $10,032 $9,927 $9,822 $9,718 $9,671 $9,654 $9,637 $9,620 $9,603 $9,585
Taxes Incurred $11,064 $11,875 $12,701 $12,234 $13,093 $13,968 $14,842 $14,252 $15,153 $16,071 $17,007 $17,962

Net Profit $25,815 $27,708 $29,636 $28,547 $30,550 $32,592 $34,632 $33,255 $35,356 $37,498 $39,683 $41,911
Net Profit/Sales 14.91% 15.69% 16.45% 15.53% 16.30% 17.04% 17.76% 16.72% 17.42% 18.12% 18.80% 19.46%

Page 3
 Appendix

Table: Cash Flow

Pro Forma
Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Cash
Received

Cash from
Operations
Cash Sales $173,185 $176,649 $180,182 $183,786 $187,462 $191,211 $195,035 $198,936 $202,915 $206,973 $211,112 $215,334
Subtotal $173,185 $176,649 $180,182 $183,786 $187,462 $191,211 $195,035 $198,936 $202,915 $206,973 $211,112 $215,334
Cash from
Operations

Additional
Cash
Received
Sales Tax, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Received
New Current $80,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-
free)
New Long- $2,350,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term
Liabilities
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investment
Received
Subtotal $2,603,185 $176,649 $180,182 $183,786 $187,462 $191,211 $195,035 $198,936 $202,915 $206,973 $211,112 $215,334
Cash
Received

Page 4
 Appendix

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

Expenditures
from
Operations
Cash $37,943 $37,943 $37,943 $41,738 $41,737 $41,737 $41,737 $46,007 $46,007 $46,007 $46,007 $46,007
Spending
Bill $3,454 $103,661 $105,234 $106,815 $107,740 $109,414 $111,124 $112,882 $113,919 $115,798 $117,715 $119,670
Payments
Subtotal $41,397 $141,604 $143,177 $148,553 $149,477 $151,151 $152,861 $158,889 $159,926 $161,805 $163,722 $165,677
Spent on
Operations

Additional
Cash Spent
Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Paid Out
Principal $15,000 $15,000 $15,000 $15,000 $15,000 $5,000 $0 $0 $0 $0 $0
Repayment
of Current
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125
Liabilities
Principal
Repayment
Purchase $196,140 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Purchase $2,650,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $2,891,661 $160,729 $162,302 $167,678 $168,602 $170,276 $161,985 $163,014 $164,051 $165,929 $167,847 $169,802
Cash Spent

Net Cash ($288,476) $15,920 $17,880 $16,108 $18,860 $20,935 $33,050 $35,922 $38,864 $41,044 $43,265 $45,532
Flow
Cash $11,524 $27,444 $45,324 $61,433 $80,293 $101,229 $134,278 $170,200 $209,065 $250,108 $293,374 $338,906
Balance
Page 5
 Appendix

Table: Balance Sheet

Pro Forma
Balance
Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting
Balances

Current
Assets
Cash $300,000 $11,524 $27,444 $45,324 $61,433 $80,293 $101,229 $134,278 $170,200 $209,065 $250,108 $293,374 $338,906
Other $113,000 $309,140 $309,140 $309,140 $309,140 $309,140 $309,140 $309,140 $309,140 $309,140 $309,140 $309,140 $309,140
Current
Assets
Total $413,000 $320,664 $336,584 $354,464 $370,573 $389,433 $410,369 $443,418 $479,340 $518,205 $559,248 $602,514 $648,046
Current
Assets

Long-term
Assets
Long-term $2,650,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00 $5,300,00
Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Accumulated $0 $5,818 $11,636 $17,454 $23,272 $29,090 $34,908 $40,726 $46,544 $52,362 $58,180 $63,998 $69,816
Depreciation
Total Long- $2,650,00 $5,294,18 $5,288,36 $5,282,54 $5,276,72 $5,270,91 $5,265,09 $5,259,27 $5,253,45 $5,247,63 $5,241,82 $5,236,00 $5,230,18
term Assets 0 2 4 6 8 0 2 4 6 8 0 2 4
Total Assets $3,063,00 $5,614,84 $5,624,94 $5,637,01 $5,647,30 $5,660,34 $5,675,46 $5,702,69 $5,732,79 $5,765,84 $5,801,06 $5,838,51 $5,878,23
0 6 8 0 1 3 1 2 6 3 8 6 0

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

Current
Liabilities
Accounts $0 $100,155 $101,675 $103,226 $104,094 $105,712 $107,362 $109,087 $110,061 $111,876 $113,728 $115,617 $117,544
Payable
Current $0 $80,000 $65,000 $50,000 $35,000 $20,000 $5,000 $0 $0 $0 $0 $0 $0
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilities
Subtotal $0 $180,155 $166,675 $153,226 $139,094 $125,712 $112,362 $109,087 $110,061 $111,876 $113,728 $115,617 $117,544
Current
Liabilities

Long-term $0 $2,345,87 $2,341,75 $2,337,62 $2,333,50 $2,329,37 $2,325,25 $2,321,12 $2,317,00 $2,312,87 $2,308,75 $2,304,62 $2,300,50
Liabilities 5 0 5 1 6 1 6 1 6 2 7 2

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Total $0 $2,526,03 $2,508,42 $2,490,85 $2,472,59 $2,455,08 $2,437,61 $2,430,21 $2,427,06 $2,424,75 $2,422,48 $2,420,24 $2,418,04
Liabilities 0 5 1 5 7 3 3 2 2 0 4 6

Paid-in $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00 $3,195,00
Capital 0 0 0 0 0 0 0 0 0 0 0 0 0
Retained ($132,000 ($132,000 ($132,000 ($132,000 ($132,000 ($132,000 ($132,000 ($132,000 ($132,000 ($132,000 ($132,000 ($132,000 ($132,000
Earnings ) ) ) ) ) ) ) ) ) ) ) ) )
Earnings $0 $25,815 $53,523 $83,159 $111,706 $142,256 $174,848 $209,479 $242,734 $278,090 $315,589 $355,272 $397,183
Total Capital $3,063,00 $3,088,81 $3,116,52 $3,146,15 $3,174,70 $3,205,25 $3,237,84 $3,272,47 $3,305,73 $3,341,09 $3,378,58 $3,418,27 $3,460,18
0 5 3 9 6 6 8 9 4 0 9 2 3
Total $3,063,00 $5,614,84 $5,624,94 $5,637,01 $5,647,30 $5,660,34 $5,675,46 $5,702,69 $5,732,79 $5,765,84 $5,801,06 $5,838,51 $5,878,23
Liabilities 0 6 8 0 1 3 1 2 6 3 8 6 0
and Capital

Net Worth $3,063,00 $3,088,81 $3,116,52 $3,146,15 $3,174,70 $3,205,25 $3,237,84 $3,272,47 $3,305,73 $3,341,09 $3,378,58 $3,418,27 $3,460,18
0 5 3 9 6 6 8 9 4 0 9 2 3

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