September 2001

This sample business plan has been made available to users of Business Plan Pro™, business planning software published by Palo Alto Software. Names, locations and numbers may have been changed, and substantial portions of text may have been omitted from the original plan to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For product information visit our Website: www.paloalto.com or call: 1-800-229-7526. Copyright Palo Alto Software, Inc., 1995-2002

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _________________________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. 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 _________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Keys to Success . . . . . . . . . . . . . . . . . . . . . .2 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . .1 Important Assumptions . . . . . . . . . . . . . . . 12 12 12 13 14 16 . . . . . . . . . . . . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Start-up Summary . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . . 4 Market Analysis Summary . . .0 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Company Ownership . . . . . . . . . . . . . . . . . 6 6 7 7 7 8 8 8 9 9 10 3. . . . 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . . . . .5 Projected Balance Sheet .3. . . . . . . .1 Competition and Buying Patterns . . . . . .0 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Table of Contents 1. . . . . . . . . . . . .0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Personnel Plan . . . . . . . . . . . . . . . 2 Services . . . . 1. . . . . . . 5. . . . . . . . . . . . .1 Sales Forecast . . . . . . . . . . . .0 5. . . . . . . . . . . . . . . . . . . .3 Sales Strategy . . . . . . . . . . . .0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . . . . . . .3 Service Business Analysis . . . . . . . . . . . . 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Objectives . . . . . . . . . . . . . . . . . .1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . .2 Break-even Analysis . . . . . . . . . . . . . . . 1 1 2 2 2. . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . 2 2. . . . . . . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . .0 Company Summary . . . . . . . . . . . . . . . . . . . . . . .4 Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . . . . . . . . . . . . . . . . . . 4. . . .2 Mission . . . . . . . . . . . .3. . . . . . . . . . . . . . . 7. . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . .4 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . 11 6. . . . . . . . . . . . . . . . . . . . . . 2 2. . . . . . . . . . . . . . . . . . . .

To develop a sustainable start-up business.000 $200. To develop enough cash flow to pay all salaries as well as grow the business. boring food. leveraging Chef Susan Cheflly's culinary skills to develop creative new catering options. This assumption prevails throughout the Jewish community so there is not much demand for new offerings.000 in revenues for year three. Page 1 . Fressen catering will inject new life into the kosher catering market. and unusual food options for kosher as well as the traditional standbys. Highlights (Planned) $400.000 $150.Fressen Catering 1.1 Objectives The objectives for the first three years of operation include: • • • • To create a service-based company whose primary goal is to exceed customer's expectations. industry insight. To increase the number of client's served by 20% per year through superior service. Fressen offers creative.000 $100.000 $250. Susan's advanced skills.0 Executive Summary Fressen Catering is a kosher catering company that serves the Philadelphia market. The service offerings are quite a change relative to the existing kosher catering market which is quite stagnant. colorful.000 $0 ($50.000 $300.000 $350. and a great market opportunity will allow Fressen Catering to reach profitability by month 11 and generate $395.000) 2001 2002 2003 Sales Gross Net 1.000 $50. Most people make the incorrect assumption that kosher food means ordinary.

Fressen will rent space for the office and kitchen in an industrial area of Philadelphia.A. located in Philadelphia. Renting in the industrial area will significantly lower the cost. Desk and chair. 2.P. All of the food and drink items served will be done under strict supervision of the Orthodox Rabbinic authority.1 Company Ownership Fressen Catering is a sole proprietorship owned by Susan Cheflly. everything else will fall into place. Since the space will be used for food production it is not relevant for the store front to be aesthetically pleasing. from traditional favorites to creative inventions.3 Keys to Success The key to success is to meet and exceed the customer's needs in terms of quality of food and excellence of service. or in a nice neighborhood.2 Mission Fressen Catering's mission is to provide the customer with the finest kosher catering. Fressen Catering is forecasted to generate $395. Two sets of cookware. Fressen Catering will serve parties of 25-300 people with high-end kosher foods that are currently only available in New York City.0 Company Summary Fressen Catering. Please note that the following items which are considered assets to be used for more than a year will be labeled long-term assets and will be depreciated using G. PA will offer high-end kosher catering to the Philadelphia community. One van with rolling racks built in (a rolling rack is a wheeled rolling cart system that is insulated for both hot and cold food). knives and cutting boards (two each). Fressen Catering will offer a large menu repertoire.A. 2. and QuickBooks Pro. We exist to attract and maintain customers. Page 2 . Our services will exceed the expectations of our customers. Two sets of dishware. 1. approved straightline depreciation method.000 in revenues for year three. Copier and fax machine. Assorted serving trays and utensils.2 Start-up Summary Fressen Catering will incur the following start-up costs: • • • • • • • • • Two commercial stoves with ovens.Fressen Catering 1. 2. CD-RW. Microsoft Office. When we adhere to this maxim. Dishwasher. Computer with printer.

Fressen Catering Start-up $70.000 $50.000 $10.000 $40.000 $60.000 $30.000 $0 Expenses Assets Investment Loans Page 3 .000 $20.

200 $69. Brochures Rent Other Total Start-up Expense Start-up Assets Needed Cash Balance on Starting Date Other Short-term Assets Total Short-term Assets Long-term Assets Total Assets Total Requirements Funding Investment Susan Family and friends Other Total Investment Short-term Liabilities Accounts Payable Current Borrowing Other Short-term Liabilities Subtotal Short-term Liabilities Long-term Liabilities Total Liabilities Loss at Start-up Total Capital Total Capital and Liabilities $35.000 $0 $0 $0 $0 $0 $0 ($800) $69.000 $0 $70. The explanation below regarding the prohibition of dairy and meat served together or made in the same kitchen by the same pots and utensils is the reason that Fressen Catering will require two sets of everything.200 $500 $150 $150 $0 $0 $800 $36.700 $0 $36.000 3.000 $35. including two stove top ranges and ovens. The catering service will be for weddings. Kosher or kashruth is a specific. Though a hygienic benefit has been attributed to the observance of kashruth. ritual/set of rules that applies to certain sects of Judaism in regards to food/drink preparation and consumption.0 Services Fressen Catering will provide Philadelphia with high quality kosher catering. Bar/Bat Mitzvahs.Fressen Catering Table: Start-up Start-up Requirements Start-up Expenses Legal Stationery etc.200 $70. A kitchen or catering service must be specially set up to provide kosher meals. It means that a given product is permitted and acceptable. Page 4 . The sources for the laws of kashruth are of Biblical origin and expounded in Rabbinic legislation. the ultimate purpose and rationale is simply to conform to the Divine Will as expressed in the Torah.500 $69. The Hebrew word kosher means fit or proper as it relates to dietary (kosher) laws. and other assorted parties.700 $32. These laws are codified in the Shulchan Aruch (Code of Jewish Law).

This is offered for two reasons. that the meat comes from an animal whose lungs have been found to be free of all adhesions. perfectly smooth blade causing instantaneous death with no pain to the animal. Per person costs range from $45-110. as well as the additional equipment that is needed to eliminate the mixing of dairy and meat products. One must wait up to six hours after eating meat products before any dairy products may be eaten. Fressen Catering will serve a wide variety of dishes. After the salting. therefore. The only mammals permitted are those which chew their cud and are cloven hoofed. more discriminating customers such as chicken pesto dishes or a red pepper couli sauce. 1. eating such cooked products. One. or deriving benefit from them. drawing out the internal blood. After the animal has been properly slaughtered. or maybe salmon with curry couli and plum chutney. The Torah establishes two criteria in determining kosher fish. poultry and fish: • • • The Torah (Leviticus Chapter 11) lists the characteristics of permitted mammals and fish.Fressen Catering Kosher and non-kosher meat. Broiling. Page 5 . Kosher catering is not cheap." Salting. the Rabbis extended this prohibition to disallow the eating of meat and dairy products at the same meal or preparing them on the same utensils. Bedika. The Torah does not list specific characteristics to distinguish permitted from forbidden birds. • • • • • One of the main tenants is the prohibition of meat and dairy in the kitchen together. it details 24 forbidden species of fowl. Glatt Kosher. The larger repertoire of menu items is a benefit to the customers. The trachea and esophagus of the animal are severed with a special sharp. Liver may only be koshered through broiling. "Glatt Kosher" is used more broadly as a consumer phrase meaning kosher without question. however. because of the preponderance of blood in it. Meat once ground cannot be made kosher. Koshering. Some of the menu offerings will be traditional kosher/Jewish meals such as beef brisket with potatoes and vegetables and a roasted chicken with rice and spinach. 2. They must have fins and scales. The two methods of extracting blood from meat are salting and broiling. Both the liver and meat must first be thoroughly washed to remove all surface blood. As a safeguard. the meat must be thoroughly soaked and washed to remove all salt. All shellfish are prohibited. Instead. A large selection is required because meat and dairy cannot be mixed within the meal. The Torah forbids the eating of the blood of an animal. and indicates the forbidden fowl. Some Jewish communities or people only eat of an animal that has been found to be free of all adhesions. Only a trained kosher slaughterer (shochet) certified by rabbinic authorities is qualified to slaughter an animal. The Torah forbids cooking meat and milk together in any form. in essence you have to have two different menus. The meat must first be soaked in salt. They are then salted slightly on all sides. nor may meat be placed in hot water before it has been "koshered. "Glatt" means smooth. should not eat fish with meat. The ingredients cost more. one with dairy and one with meat. More inventive meals will also be offered to appeal to the higher end. There are several different methods: • Shechita. a trained inspector (bodek) inspects the internal organs for any physical abnormalities that may render the animal non-kosher (treif). Then they are broiled on a perforated grate over an open fire. Another element of Kosher meat consumption applies to the way in which the meat is slaughtered.

591 0 236. The female of the household typically thoroughly enjoys the planning of these events.854 104. Typically.00% 8.457 0 201.00% 0.573 CAGR 8. This group of people does not have huge amounts of disposable income.571 0 277. broadening people's conception of kosher food.004 2002 130. Fressen will occupy a niche in the kosher catering market that offers new.547 80. recognizes that it is costly to sponsor a kosher dinner party. Middle class kosher clients.191 87.197 2004 151.002 113. 4. but will try to minimize them.194 0 256.40% 2001 120.889 2003 140.698 0 217.40% Market Analysis (Pie) Middle-class kosher customers Upper-class kosher cutomers Other Page 6 . creative menu items. Table: Market Analysis Market Analysis Potential Customers Middle-class kosher customers Upper-class kosher cutomers Other Total Growth 8% 9% 0% 8. there has been little demand by consumers to get caters to innovate their menu.606 95.1 Market Segmentation Fressen Catering has two distinct target populations: 1.Fressen Catering 4. this group is characterized by a wealthy one-income family where the male works and the female does not.048 2005 164. Upper class kosher clients. This market consists of two target segments that are differentiated by household income. There are several caters that offer services that are quite similar to each other in terms of price and menu options. This is not too say that consumers would not welcome new kosher menu items.0 Market Analysis Summary The Philadelphia kosher catering market is an interesting one. For whatever reasons. 2.00% 9. This group has intertwined kosher values throughout their lives and is willing to spend whatever it takes to throw a high-end kosher dinner function. it is just that people have incorrectly made the assumption that kosher meals have to be boring. and is willing to incur the expenses.

regardless of income typically belong to the same group of religious congregations. 4.2 Target Market Segment Strategy The target market segment strategy will not be significantly different to address the two different groups. When cost is no object. and attention to service.3 Service Business Analysis The kosher catering business in Philadelphia is fairly unique. cost is certainly an issue and some of the caterers are not even options because they are priced out of this consumer groups price range. At the low.to mid-price point of the cost spectrum. The buying habits for the high end of the market is price insensitive. while serving the upper-end market.1 Competition and Buying Patterns As stated in the previous section. Although there is a large wealthy population in Philadelphia that practices kosher rituals. 4. Between two different service providers. There is one high-end caterer who will compete with Fressen. However. there are four other kosher caterers that serve the low to middle end of the market.3. These caterers tend to serve the part of the market that must have kosher food served at an occasion due to religious beliefs. does not provide its clients with upper-end service. The upper-end menu items are cost prohibitive for the middle class target segment. the middle class group will choose the service provider with the best services. There is a fifth caterer that also serves the lower end of the market (defined as middle class) but serves the high end of the market as well. Both groups. Therefore. Choices are made by menu offerings. but struggle to able to afford the cost variance between standard and kosher catering. This caterer. Page 7 . What differentiation it will require is different menu offerings needed to satisfy the different groups. there are many people that are willing to pay the additional cost of bringing in the caterer from NYC. but more so on service. there are four other kosher caters. Lastly. and its business has been declining over the last few years. The buying habits of consumers of kosher catering is to some degree price sensitive at the middle end of the market. The quality and the serving of the food are the main areas of service that the caterers compete on. one competitor for the highend market is kosher caterers from New York City. This company is not a strong competitor because of their overpriced service offerings relative to the service provided.Fressen Catering 4. reputation. to reach the different groups does not require a distinctly different strategy. These caterers compete to some degree on cost (due to budget constraints of some clients). they have been underserved. All four of these caters have fairly standard menu offerings.

5. These competitive edges coupled with a targeted advertising campaign and networking will be Fressen's game plan for increasing their market share. Susan will leverage her contacts within the Jewish community to raise awareness for her catering activities. Additionally. Fressen's other competitive edge is their nouveau cuisine approach to kosher food. Fressen will advertise in a few Synagogue-specific newsletters. The other marketing strategy which is less formal is a networking campaign among the Philadelphia Jewish population. 5. The consequence of market demand is a decreased pressure to accommodate customers. Advertisements will be placed in various Jewish newsletters. local customers will come to appreciate the attention that their needs are given and form a long lasting relationship with Fressen Catering. These edges are superior attention to detail and innovative nouveau cuisine kosher meals.Fressen Catering 5.2 Marketing Strategy Fressen's marketing strategy will be based on developing visibility among Philadelphia's kosher community. Fressen is taking their knowledge of nouveau cuisine and creating inventive.1 Competitive Edge Fressen Catering's competitive edge is its attention to servicing customers and inventive approach to kosher cuisine. This will be accomplished through two ways.000. While the Jewish population is of decent size. These compromises need not be made however. over time. Most people believe that there are large compromises that must be made when serving kosher. Fressen's customer attention differentiates them in the world of kosher catering which is dominated by several companies that have plenty of demand. numbering around 200. it is a fairly close knit community where people tend to know each other.0 Strategy and Implementation Summary Fressen Catering will gradually gain market share in the kosher catering market by leveraging its competitive edges. These advertisements should yield a decent amount of service inquiries since they are fairly targeted toward the target population that utilizes kosher catering. The edges that Fressen will leverage are areas that have been ignored in this market for some time now. it costs far less and the relationships that it builds will be far stronger because of the trust relationship that has already been established. Traditionally. and delicious kosher alternatives. Just because there are strict rules regarding the types of foods that may be used and the way it must be prepared does not eliminate creativity. Fressen is approaching the market as if there was significant competition between the different service providers. colorful. By making customer satisfaction a priority. kosher food has remained stable and unimaginative for a long time. Page 8 . The first method is a targeted advertising campaign. and Fressen is changing these misperceptions. There are a couple of Philadelphia-wide newsletters. Susan has been an active member of the Philadelphia Jewish community for five years. While the networking might not cast as large of a net as advertisements will.

774 $211. An innovative available menu should be seen as a large benefit.298 $58.370 $118. There will be no sales activity during the first month. but still will not be a significant source of income. Months three and four will see a steady increase in sales.532 2002 $170. Throughout the year it is forecasted that sales will incrementally grow in size until profitability is reached toward the end of year one.627 $53. Table: Sales Forecast (Planned) Sales Forecast Sales Middle class Upper class Total Sales Direct Cost of Sales Middle class Upper class Subtotal Direct Cost of Sales 2001 $83.963 $110.535 2002 $51.3.017 $95. Susan will offer many innovative nouveau cuisine kosher items that she has developed over her years spent in the culinary industry.439 2001 $24.261 2003 $183. Word will have gotten out from the advertising as well as networking that Fressen is the new kosher caterer in town and offers a very high-quality service.992 $196.132 $63.234 $395.1 Sales Forecast The first month will be used to set up the kitchen and office. 5. There is no intuitive or logical reason that people who adhere to kosher are any less adventurous when it comes to food other than the fact that they have been raised that way. She will do this by spending as much time on the phone as necessary.502 Page 9 .008 2003 $55. In addition to all of the traditional kosher dishes. Another benefit that Susan will leverage to develop sales is her comprehensive menu.3 Sales Strategy Fressen's sales strategy will use a combination of superior customer attention and a comprehensive repertoire of dishes for the menu to turn information seekers into customers.543 $367.Fressen Catering 5.422 $178.905 $28. The second month will see a few catering jobs. it is Susan's main opportunity to turn them into a customer. Susan recognizes when a prospective customer calls to get information about Fressen.

Fressen Catering Sales Monthly (Planned) $30.000 $20. Business plan completion. 3. Profitability.4 Milestones Fressen Catering will have several milestones early on: 1.000 $5. This will be an indispensable tool for the ongoing performance and improvement of the company. Table: Milestones (Planned) Milestones Milestone Business plan completion Kitchen and office set up The first catering job Profitability Totals Start Date 1/1/01 1/1/01 1/1/01 1/1/01 End Date 2/1/01 2/1/01 3/1/01 12/1/01 Budget Manager Department $0 Page 10 . Kitchen and office set up.000 $15. The first catering job. This will be done as a roadmap for the organization.000 $10.000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Middle class Upper class 5.000 $25. 4. 2.

360 $186.800 $10.600 $10.000 $11. • • Table: Personnel (Planned) Personnel Plan Susan Rabbi Cook Cook Server Server Backend kitchen helper Backend kitchen helper Total Payroll Total People Payroll Burden Total Payroll Expenditures 2001 $36.0 Management Summary Susan Cheflly. while in temple.800 $22. the founder and owner received her Bachelor of Arts from the University of Pittsburgh.000 $33.600 $10. Susan began to find this instruction very interesting and enjoyable.800 $10.800 $158.800 $10.400 8 $23.720 $132. the back end kitchen people will be trained to help out with serving. a well-regarded training school for chefs.000 $12.600 $33. Fressen Catering will require the following personnel: • • Rabbi: a part-time position where the Rabbi is used to inspect and confirm that all of the ingredients and preparation follow the rules of kashruth. Servers: two will be hired. The servers will be the people who serve the food at the events as well as clear the plates and help with set up and take down of the event.760 Page 11 .800 $10.720 $9. Susan befriended one of the chefs there who began to teach her cooking techniques.760 $182.000 $12.800 $10. With this thought in mind. After college. Susan decided to enter the Pennsylvania Culinary Institute. the thought hit her that she could operate a kosher catering company and do well because the upper-end of the market has been largely ignored by the current competitors.1 Personnel Plan Besides utilizing Susan's skills full time.400 $9. Susan thought she would appreciate the ability to set her own hours. Back kitchen help: these two people will be used to help clean up in the kitchen as well as assist at functions.600 $33. After six months of this tutoring.Fressen Catering 6.818 $151. Susan decided that she wanted to remain in the restaurant industry. Cooks: two will be hired to prepare the dishes that Susan has developed. Susan began to do market research. Susan completed the one year program and graduated near the top of her class. While serving at an upscale restaurant in Pittsburgh.000 $30.240 $6.400 8 $24.120 8 $19. One day. but wanted to learn the skills needed to be a chef. but she longed to work for herself. After speaking with many different people as well as holding three focus groups. to be her own boss.000 $33.240 $6. she recognized that her idea was viable and started writing this business plan. running her own business. Susan thoroughly enjoyed the five years spent as head chef.800 $162.160 2003 $40. In the event of a large party.800 $10. Susan went to work as a chef at one of the nicer nouveau cuisine restaurants in Philadelphia. Susan went to work in the restaurant industry because it was a good source of money. 6. With this education.938 2002 $36.

566 $5.00% 15.00% 10.000 $50. Table: General Assumptions General Assumptions Short-term Interest Rate % Long-term Interest Rate % Tax Rate % Expenses in Cash % Personnel Burden % 2001 10.0 Financial Plan The following sections will outline important financial information.000.00% 10.00% 15.000 $20.00% 7.00% 10.00% 30.496 Break-even Analysis $30. 7.000 $0 ($10.000 $40.2 Break-even Analysis The Break-even Analysis indicates that $23.000 $30. Table: Break-even Analysis Break-even Analysis: Monthly Units Break-even Monthly Sales Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 5 $23.1 Important Assumptions The following table details important financial assumptions.00% 2002 10.000 Monthly break-even point Break-even point = where line intersects with 0 Page 12 .00% 10.000 $10.00 $1.00% 10.00% 2003 10.00% 10.500.000 $20.566 will be needed in monthly revenue to reach the break-even point.00% 30.00 $16.000) ($20.00% 30.Fressen Catering 7.000) $0 $10.00% 15.

Table: Profit and Loss (Planned) Pro Forma Profit and Loss Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % Operating Expenses: Advertising/Promotion Travel Miscellaneous Payroll Expense Payroll Burden Depreciation Leased Equipment Utilities Insurance/ licenses Rent Contract/Consultants Total Operating Expenses Profit Before Interest and Taxes Interest Expense Short-term Interest Expense Long-term Taxes Incurred Extraordinary Items Net Profit Net Profit/Sales 2001 $178.135) -25.000 $0 ($10.211 $0 $0 $16.400 $24.504 $0 $600 $1.505 70.000) 2001 2002 2003 Page 13 .000) ($30.000 $10.564 $70.502 $0 -----------$118.348 10.135) $0 $0 $0 $0 ($46.532 $124.85% 2002 $367.120 $19.3 Projected Profit and Loss The following table will indicate projected profit and loss.502 $276.261 $0 -----------$110.000 $40.000 $30.261 $257.71% 2003 $395.800 $8.064 $56.532 $0 -----------$53.000) ($20.400 $0 -----------$205.504 $0 $600 $1.504 $0 $600 $1.275 70.Fressen Catering 7.000) ($50.000 $20.800 $8.907 70.360 $6.400 $0 -----------$171.57% Profit Yearly (Planned) $50.282 $0 $49.00% $900 $0 $600 $162.000) ($40.042 ($46.000 $0 $600 $158.941 $0 $0 $21.818 $6.863 $0 $39.200 $0 $600 $132.400 $23.400 $0 -----------$201.659 12.00% $1.008 $118.439 $53.800 $8.760 $6.535 $110.00% $1.

HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of other Short-term Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations: Cash Spent on Costs and Expenses Wages.008 $0 $395.439 $0 $178.760 $134.835 $0 $0 $0 $0 $0 $0 $0 $0 $336. VAT. VAT.937 $207.173 $123.613 $151.952 $182.938 $48.651 $367.208 $186.940 $0 $0 $0 $0 $0 $0 $0 $0 $309. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Short-term Assets Purchase Long-term Assets Dividends Adjustment for Assets Purchased on Credit Subtotal Cash Spent Net Cash Flow Cash Balance 2001 2002 2003 $178. Payroll Taxes.4 Projected Cash Flow The following chart and table will indicate projected cash flow.835 $58.535 $0 $367.488 $0 $0 $0 $0 $0 $0 $0 $0 $207.488 ($29.828 $309.439 2001 $6. etc.049) $7.535 $0 $0 $0 $0 $0 $0 $0 $0 $367. Table: Cash Flow (Planned) Pro Forma Cash Flow Cash Received Cash from Operations: Cash Sales From Receivables Subtotal Cash from Operations Additional Cash Received Extraordinary Items Sales Tax.008 2003 $15.535 2002 $13.008 $0 $0 $0 $0 $0 $0 $0 $0 $395.Fressen Catering 7.160 $113.420 Page 14 .940 $57. Payment of Accounts Payable Subtotal Spent on Operations Additional Cash Spent Sales Tax.866 $336.247 $395. Salaries.439 $0 $0 $0 $0 $0 $0 $0 $0 $178.595 $65.

000 $10.000 $30.000 $5.000 $15.Fressen Catering Cash (Planned) $35.000 $0 ($5.000 $20.000) ($10.000 $25.000) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash Flow Cash Balance Page 15 .

000 ($7.500 $6.492 $84.651 $32.072 2001 $7.647 2002 $65.413 2003 $24.336 $0 $0 $24.988 $136.996 $33.5 Projected Balance Sheet The following table will indicate the projected balance sheet.Fressen Catering 7.000 ($800) ($46.072 $136.504 $25.326 $0 $22.582 $70.935) $39.739 2003 $123.326 $70.408 Page 16 .512 $12.582 $0 $0 $10.500 $13.651 $0 $7.326 $0 $0 $22.587) $49.065 $33.413 $84.065 2002 $22.000 ($46.420 $0 $123.348 $62.336 $70.739 $62.247 $32.420 $32.008 $19.336 $0 $24.408 $112.582 $0 $10.135) $23. Table: Balance Sheet (Planned) Pro Forma Balance Sheet Assets Short-term Assets Cash Other Short-term Assets Total Short-term Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Accounts Payable Current Borrowing Other Short-term Liabilities Subtotal Short-term Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth 2001 $10.247 $0 $65.659 $112.647 $23.500 $19.

443 $6.489 $27.545 $17.564 $4.245 $6.911 $5.084 $1.455 $19.231 $2.547 $15.605 $14.795 Aug $8.729 $3.464 Oct $2.969 $3.548 Dec $12.713 $1.094 Dec $3.473 $1.996 $3.161 Nov $3.330 Apr $4.128 Page 1 .355 Sep $9.864 $5.491 $2.137 $5.048 $2.436 $8.768 Mar $1.670 Jun $2.096 $10.551 Sep $2.401 Jul $7.820 Mar $3.478 $21.439 Nov $11.711 $6.645 $10.167 May $5.849 Aug $2.037 $7.682 Jun $6.845 $14.614 $4.986 $11.275 May $1.782 $4.Appendix Appendix Table: Sales Forecast (Planned) Sales Forecast Sales Middle class Upper class Total Sales Direct Cost of Sales Middle class Upper class Subtotal Direct Cost of Sales Jan $0 $0 $0 Jan $0 $0 $0 Feb $2.068 Feb $847 $974 $1.556 Apr $1.825 $7.304 $9.823 $3.865 Oct $9.354 $4.154 $7.564 $12.694 $3.455 $25.983 Jul $2.512 $4.347 $8.246 $2.706 $13.

960 8 $1.000 $2.000 $2.800 $840 $840 $840 $840 $12.000 $1.904 Sep $3.800 $840 $840 $840 $840 $12.904 Nov $3.000 $2.800 $0 $840 $0 $840 $0 $8.800 $840 $840 $840 $840 $12.000 $1.000 $1.800 $2.800 $840 $840 $840 $840 $12.944 $14.000 $1.480 5 $1.800 $2.000 $1.904 Dec $3.944 $14.904 Page 2 .904 Jun $3.944 $14.904 Aug $3.480 5 $1.800 $2.800 $840 $840 $840 $840 $12.000 $2.000 $1.752 May $3.000 $2.000 $1.800 $2.800 $840 $840 $840 $840 $12.000 $1.450 Feb $3.944 $14.800 $2.272 $9.272 $9.000 $2.480 5 $1.800 $2.800 $0 $840 $0 $840 $0 $8.752 Apr $3.000 $2.904 Jul $3.800 $2.904 Oct $3.944 $14.000 $1.000 $1.800 $840 $840 $840 $840 $12.Appendix Appendix Table: Personnel (Planned) Personnel Plan Susan Rabbi Cook Cook Server Server Backend kitchen helper Backend kitchen helper Total Payroll Total People Payroll Burden Total Payroll Expenditures Jan $3.272 $9.960 8 $1.800 $0 $840 $0 $840 $0 $8.000 $1.944 $14.960 8 $1.960 8 $1.944 $14.960 8 $1.960 8 $1.960 8 $1.944 $14.000 $2.800 $840 $840 $840 $840 $12.752 Mar $3.000 $2.000 $0 $0 $0 $0 $0 $0 $0 $3.800 $2.000 1 $450 $3.000 $2.960 8 $1.000 $2.

00% Page 3 .00% 10.00% 10.00% 15.00% 10.00% 30.Appendix Appendix Table: General Assumptions General Assumptions Short-term Interest Rate % Long-term Interest Rate % Tax Rate % Expenses in Cash % Personnel Burden % Jan 10.00% 30.00% 10.00% 10.00% 15.00% 10.00% 10.00% 10.00% 30.00% Mar 10.00% 30.00% 30.00% 30.00% 15.00% Dec 10.00% 15.00% 10.00% Jul 10.00% 10.00% Feb 10.00% Apr 10.00% Aug 10.00% 10.00% 10.00% 10.00% 15.00% Oct 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Jun 10.00% 30.00% 15.00% 30.00% 10.00% 30.00% Nov 10.00% Sep 10.00% 15.00% 10.00% 30.00% 15.00% 10.00% 15.00% May 10.00% 30.00% 15.00% 30.00% 15.00% 10.00% 10.00% 10.00% 15.

42% Sep $19.865 $0 -----------$5.401 $0 -----------$4.355 $12.Appendix Appendix Table: Profit and Loss (Planned) Pro Forma Profit and Loss Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % Operating Expenses: Advertising/Promotion Travel Miscellaneous Payroll Expense Payroll Burden Depreciation Leased Equipment Utilities Insurance/ licenses Rent Contract/Consultants Total Operating Expenses Profit Before Interest and Taxes Interest Expense Short-term Interest Expense Long-term Taxes Incurred Extraordinary Items Net Profit Net Profit/Sales Jan $0 $0 $0 -----------$0 $0 0.496 ($6.960 $1.188 70.94% Mar $7.480 $1.167 $0 -----------$3.85% Nov $25.002) -22.000 $450 $542 $0 $50 $150 $700 $0 -----------$5.096) $0 $0 $0 $0 ($7.389 70.042 ($5.810) $0 $0 $0 $0 ($2.464 $6.00% $100 $0 $50 $12.496 ($1.944 $542 $0 $50 $150 $700 $0 -----------$16.438 70.355 $0 -----------$5.496 $1.275 $3.128 $0 -----------$8.471) -6.960 $1.272 $542 $0 $50 $150 $700 $0 -----------$11.002) $0 $0 $0 $0 ($4.944 $542 $0 $50 $150 $700 $0 -----------$16.496 ($5.955) -37.439 $15.955) $0 $0 $0 $0 ($3.167 $7.795 $11.480 $1.904) $0 $0 $0 $0 ($7.00% $100 $0 $50 $8.344 ($3.480 $1.344 ($7.308) $0 $0 $0 $0 ($5.00% $100 $0 $50 $12.117 $0 $0 $0 $0 $1.686 70.00% Feb $6.269 70.12% Page 4 .960 $1.46% May $12.810) -14.37% Oct $21.820 $4.556 $3.227) -42.613 70.117 4.849 $5.308) -33.904) -64.960 $1.551 $5.04% Apr $10.45% Jul $15.00% $100 $0 $50 $8.439 $0 -----------$6.39% Jun $14.272 $542 $0 $50 $150 $700 $0 -----------$11.096) -116.128 $18.670 $4.944 $542 $0 $50 $150 $700 $0 -----------$16.025 70.401 $10.960 $1.00% $100 $0 $50 $12.944 $542 $0 $50 $150 $700 $0 -----------$16.00% $100 $0 $50 $12.682 $0 -----------$3.00% $100 $0 $50 $3.496 ($7.00% $100 $0 $50 $12.330 $5.496 ($4.682 $8.042) $0 $0 $0 $0 ($5.00% $100 $0 $50 $12.768 $2.944 $542 $0 $50 $150 $700 $0 -----------$16.094 $8.983 $4.330 $0 -----------$2.820 $0 -----------$1.00% $100 $0 $50 $8.496 $2.068 $1.344 ($5.471) $0 $0 $0 $0 ($1.548 $0 -----------$7.865 $13.944 $542 $0 $50 $150 $700 $0 -----------$16.592 70.272 $542 $0 $50 $150 $700 $0 -----------$11.042) 0.470 $0 $0 $0 $0 $2.496 ($2.227) $0 $0 $0 $0 ($6.960 $1.161 $7.944 $542 $0 $50 $150 $700 $0 -----------$16.960 $1.548 $17.494 70.944 $542 $0 $50 $150 $700 $0 -----------$16.795 $0 -----------$4.966 70.00% $100 $0 $50 $12.906) $0 $0 $0 $0 ($5.960 $1.248 70.21% Aug $17.470 9.00% $100 $0 $50 $12.906) -76.44% Dec $27.

672) $14.569 $18.218) $5.849 $19. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of other Short-term Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations: Cash Spent on Costs and Expenses Wages. Payroll Taxes.768 $10.209 $0 $0 $0 $0 $0 $0 $0 $0 $21.209 ($1.569 $0 $0 $0 $0 $0 $0 $0 $0 $15.154 $20.555) $33.904 $4.849) $2.006 $0 $0 $0 $0 $0 $0 $0 $0 $20.068 Feb $287 $9.068 $7.161 $0 $25.899) $10.275 $0 $12.947 $0 $0 $0 $0 $0 $0 $0 $0 $14.904 $6.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 Jan $105 $3.904 $6.281 $0 $0 $0 $0 $0 $0 $0 $0 $21.904 $7.585 $22.670 Jun $545 $14.699 $0 $0 $0 $0 $0 $0 $0 $0 $19.905 $13.939 $0 $0 $0 $0 $0 $0 $0 $0 $21.701 ($4.068 $0 $6.658) $1.551 Sep $692 $14.752 $2.812 $3.739 ($275) $1.849 Aug $640 $14.768 Mar $338 $9.818 $0 $0 $0 $0 $0 $0 $0 $0 $23.099 $0 $0 $0 $0 $0 $0 $0 $0 $13.905 $0 $0 $0 $0 $0 $0 $0 $0 $19.006 $0 $0 $0 $0 $0 $0 $0 $0 $22.275 $14.261 $3.182 $0 $0 $0 $0 $0 $0 $0 $0 $10.464 $25.414) $24.569 ($4.555 ($3.078 ($2.834 $7.551 $0 $19. etc.094 $0 $27.200 $0 $0 $0 $0 $0 $0 $0 $0 $17.983 Jul $584 $14. Payment of Accounts Payable Subtotal Spent on Operations Additional Cash Spent Sales Tax. VAT.086 $21.464 $0 $21.752 $662 $10.632) $28.712 $20.349 $2.092 $12.551 $21.768 $0 $7.983 $17.670 $0 $14.904 $3.439 $23.522) $21.849 $0 $17.Appendix Appendix Table: Cash Flow (Planned) Pro Forma Cash Flow Cash Received Cash from Operations: Cash Sales From Receivables Subtotal Cash from Operations Additional Cash Received Extraordinary Items Sales Tax. VAT.983 $0 $15.349 $0 $0 $0 $0 $0 $0 $0 $0 $27.513 $0 $0 $0 $0 $0 $0 $0 $0 $12.947 ($6.200 ($4.161 $27.904 $5.145 $0 $0 $0 $0 $0 $0 $0 $0 $10.670 $15.094 0.651 Page 5 .904 $5.701 $0 $0 $0 $0 $0 $0 $0 $0 $7.699 ($2.161 Nov $860 $14.120 $19.904 $4.261 $0 $0 $0 $0 $0 $0 $0 $0 $3.556 Apr $422 $9.613 $21.464 Oct $749 $14.556 $12. Salaries.275 May $473 $14.450 $0 $3.752 $2. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Short-term Assets Purchase Long-term Assets Dividends Adjustment for Assets Purchased on Credit Subtotal Cash Spent Net Cash Flow Cash Balance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $0 $0 $0 $6.078 $0 $0 $0 $0 $0 $0 $0 $0 $12.788 $0 $0 $0 $0 $0 $0 $0 $0 $20.182 ($4.094 Dec $918 $14.555 $0 $0 $0 $0 $0 $0 $0 $0 $6.556 $0 $10.576 $0 $0 $0 $0 $0 $0 $0 $0 $18.739 $0 $0 $0 $0 $0 $0 $0 $0 $25.

420 $27.494 Aug $2.878 $27.297 $44.651 $0 $7.000 ($800) ($49.908 May $14.962 $26.605) $20.500 $6.398 $70.817 $0 $3.721) $19.950 $28.500 $2.281 $0 $1.494 $27.398 $0 $0 $5.201 May $5.440) $23.500 $5.356 Dec $7.248 $39.958 $65.867 $0 $2.710 $29.939 $0 $2.000 ($800) ($18.732 $0 $6.953 $0 $0 $7.500 $542 $31.Appendix Appendix Table: Balance Sheet (Planned) Pro Forma Balance Sheet Assets Short-term Assets Cash Other Short-term Assets Total Short-term Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Accounts Payable Current Borrowing Other Short-term Liabilities Subtotal Short-term Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $0 $0 $0 $0 $0 $70.500 $4.762 Aug $7.155 $54.867 $0 $0 $2.953 $70.200 Jan $33.070 Jul $6.479 $28.903 Oct $1.479 Nov $9.000 ($800) ($45.761 $70.996 $33.905 $0 $14.000 ($800) ($48.500 $2.790 $44.103 Feb $28.647 $23.099 $0 $24.818 $0 $3.973 $51.500 $69.086 Nov $3.706 $34.281 $32.708 $70.867 $70.254 Jul $5.398 $0 $5.817 $0 $0 $3.332 $51.788 $32.950 Oct $8.695 $39.582 $0 $10.939 $32.438) $27.762 $34.103 $23.761 $0 $0 $9.708 $0 $4.099 $32.732 $70.252 $29.700 $32.708 $0 $0 $4.250) $20.000 ($800) ($12.164 $31.000 ($800) ($5.145 $0 $33.607 $0 $8.168 $30.000 ($800) ($48.201 $51.135) $23.761 $0 $9.006 $32.042) $64.582 $70.155 Apr $4.647 Page 6 .500 $0 $32.158 $65.500 $3.500 $1.145 $32.006 $32.760 Sep $7.138) $57.200 $69.062 $59.000 ($800) ($21.200 Jan $945 $0 $0 $945 $0 $945 $70.000 ($800) ($46.200 $69.999) $47.342 $0 $0 $7.006 $0 $1.065 $33.000 ($800) ($41.297 Jun $6.500 $4.973 Apr $21.084 $31.651 $32.006 $0 $10.695 Jun $10.504 $25.065 Starting Balances $36.070 $39.500 $5.576 $32.000 ($800) $0 $69.045) $51.184 $70.500 $3.062 Mar $3.700 $0 $36.576 $0 $21.254 $33.103 Sep $1.103 $64.817 $70.595 Dec $10.905 $32.903) $39.184 $0 $0 $6.080 $28.953 $0 $7.538 $30.582 $0 $0 $10.158 Feb $2.342 $0 $7.416 $59.874 $54.903 $20.500 $1.336 $28.513 $0 $28.000 ($800) ($29.607 $0 $0 $8.732 $0 $0 $6.760 $31.818 $32.513 $32.788 $0 $5.130) $33.356 $20.595 $30.607 $70.626 $30.184 $0 $6.622 $28.929 Mar $24.929 $57.086 $19.908 $47.794 $28.000 ($800) ($36.342 $70.

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