04/21/2021

Levitt Winery
Author Camilo Toro-Ramirez
Date 10/6/2016
Purpose To use financial data and charts to summarize the key features of a
10-year business plan for Levitt Winery - a new winery in Northern
Michigan

519815129.xlsx Page 1 Documentation

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Levitt Winery
Business Plan Overview

Business Loan Request

Loan Amount (PV) $ 310,000
Annual Interest Rate 8.00%
Payments per Year 12
Interest Rate per Period (RATE) 0.67%
Number of Years 10
Total Payments (NPER) 120

Monthly Payment ($3,761.16)

Annual Total ($45,133.87)

Estimated Production
9.0%
Projected Revenue and Expenses
31.5% $1,750,000
16.9%
Chardonnay $1,500,000
White Riesling
Pinot Grigio $1,250,000
Pinot Noir $1,000,000
Cabernet Franc
Ruby Cabernet $750,000
11.2%
$500,000

$250,000
18.0%
13.5%
$-
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Wine Production Goal (Cases) 10-Year Production
Chardonnay 3,500 Total Revenue Total Expenses

White Riesling 2,000

Pinot Grigio 1,500
Pinot Noir 1,250 Breakdown of Business Expenses
Cabernet Franc 1,875 $1,000,000
Ruby Cabernet 1,000 $900,000
$800,000
$700,000
Proposed Bottle Price (Retail) $600,000
Wine First Label Second Label $500,000
Chardonnay $20 $16 $400,000
$300,000
White Riesling $16 $11
$200,000
Pinot Grigio $18 $12 $100,000
Pinot Noir $27 $21 $-
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cabernet Franc $22 $17
Ruby Cabernet $15 $13 Grapes Labor Maintenance Miscellaneous Loan Repayment

Cash Flow Sales Projections

$600,000 $502,250 $700,000 10,000
$600,000
$400,000 8,000
$500,000
$400,000 6,000
$200,000
Net Income

Cases Sold
$300,000 4,000
$- $200,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2,000
$100,000
$(200,000)
$- -
Year Year Year Year Year Year Year Year Year Year
$(100,000) 1 2 3 4 5 6 7 8 9 10
$(400,000) (2,000)
$(200,000)
$(600,000) $(300,000) (4,000)

519815129.xlsx Page 2 Overview

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Levitt Winery
Production Estimates

Projected Annual Case Production

Variety Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Chardonnay 250 500 750 1,000 1,250 1,750 2,000 2,500 3,000 3,500
Riesling - - 250 375 625 750 1,000 1,250 1,500 2,000
Pinot Grigio - - - - - 250 500 750 1,000 1,500
Pinot Noir - - 125 250 375 500 625 750 1,250 1,250
Cabernet Franc 125 125 250 375 500 625 875 1,250 1,500 1,875
Ruby Cabernet - - - - 250 375 500 625 875 1,000
Total Cases 375 625 1,375 2,000 3,000 4,250 5,500 7,125 9,125 11,125

519815129.xlsx Page 3 Estimated Production

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Levitt Winery
Cash Flow Estimates

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cases Produced and Sold - 375 625 1,375 2,000 3,000 4,250 5,500 7,125 9,125
Revenue
Retail Sales $ - $ 60,000 $ 120,000 $ 265,000 $ 325,000 $ 450,000 $ 600,000 $ 750,000 $ 1,000,000 $ 1,250,000
Wholesale Sales - - - - 50,000 85,000 150,000 200,000 250,000 300,000
Distributor Sales - - - - - 55,000 80,000 100,000 125,000 200,000
Total Revenue $ - $ 60,000 $ 120,000 $ 265,000 $ 375,000 $ 590,000 $ 830,000 $ 1,050,000 $ 1,375,000 $ 1,750,000

Expenses
Grapes $ 35,000 $ 70,000 $ 100,000 $ 150,000 $ 175,000 $ 175,000 $ 200,000 $ 250,000 $ 275,000 $ 325,000
Labor 100,000 120,000 140,000 170,000 240,000 250,000 275,000 275,000 300,000 350,000
Maintenance 20,000 35,000 50,000 50,000 50,000 50,000 60,000 70,000 80,000 90,000
Miscellaneous 50,000 35,000 25,000 25,000 35,000 50,000 50,000 50,000 75,000 75,000
Loan Repayment 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000
Total Expenses $ 250,000 $ 305,000 $ 360,000 $ 440,000 $ 545,000 $ 570,000 $ 630,000 $ 690,000 $ 775,000 $ 885,000

Gross Income $ (250,000) $ (245,000) $ (240,000) $ (175,000) $ (170,000) $ 20,000 $ 200,000 $ 360,000 $ 600,000 $ 865,000
Loss Carry Forward (250,000) (495,000) (735,000) (910,000) (1,080,000) (1,060,000) (860,000) (500,000) - -
Income Tax @35% - - - - - - - - (210,000) (302,750)
Net Income $ (250,000) $ (245,000) $ (240,000) $ (175,000) $ (170,000) $ 20,000 $ 200,000 $ 360,000 $ 390,000 $ 562,250

Capital Purchases $ (310,000) $ (50,000) $ (50,000) $ (50,000) $ (50,000) $ (50,000) $ (50,000) $ (70,000) $ (75,000) $ (85,000)
Depreciation 30,000 75,000 72,000 70,000 65,000 65,000 60,000 50,000 25,000 25,000
Cash Flow $ (530,000) $ (220,000) $ (218,000) $ (155,000) $ (155,000) $ 35,000 $ 210,000 $ 340,000 $ 340,000 $ 502,250

519815129.xlsx Page 4 Projected Cash Flow

Levitt Winery
Yearly Gross Income
Year Gross Income
2015 $ (250,000)
2016 (245,000)
2017 (240,000)
2018 (175,000)
2019 (170,000)
2020 20,000
Gross Income
2021 200,000
$1,000,000
2022 360,000
2023
$800,000 600,000
2024 865,000
$600,000

$400,000

$200,000

$-
Year 2015 2016 2017 2018 2019 2020 2021 2022 2023
$(200,000)

$(400,000)

Gross Income