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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.....................................................................................................................................3 2.1 Company Ownership..............................................................................................................................3 2.2 Start-up Summary...................................................................................................................................4 Table: Start-up...........................................................................................................................................4 Chart: Start-up...........................................................................................................................................4 2.3 Company Locations and Facilities..........................................................................................................5 3.0 Products.......................................................................................................................................................5 3.1 Product Description................................................................................................................................5 3.2 Competitive Comparison........................................................................................................................6 3.3 Sales Literature.......................................................................................................................................6 3.4 Sourcing..................................................................................................................................................7 3.5 Sales Programs........................................................................................................................................7 3.6 Future Products.......................................................................................................................................7 4.0 Market Analysis Summary.........................................................................................................................8 4.1 Market Segmentation..............................................................................................................................9 Table: Market Analysis.............................................................................................................................9 4.2 Target Market Segment Strategy..........................................................................................................10 4.2.1 Market Needs.................................................................................................................................10 4.2.2 Market Trends................................................................................................................................12 4.3 Industry Analysis..................................................................................................................................12 4.3.1 Trends in Food Service Retail.......................................................................................................13 4.3.2 Competition and Buying Patterns..................................................................................................13 4.3.3 Main Competitors..........................................................................................................................14 4.3.4 Foreign Vs. Local Franchising......................................................................................................14 5.0 Strategy and Implementation Summary...................................................................................................15 5.1 Competitive Edge..................................................................................................................................15 5.2 Marketing Strategy................................................................................................................................15 5.2.1 Pricing Strategy..............................................................................................................................15 5.2.2 Brand Challenges...........................................................................................................................15 5.2.3 Marketing Programs......................................................................................................................16 5.2.4 Positioning Statement....................................................................................................................16 5.3 Sales Strategy........................................................................................................................................16 5.3.1 Sales Forecast.................................................................................................................................17 Table: Sales Forecast..........................................................................................................................17 Chart: Sales Monthly..........................................................................................................................18 Chart: Sales by Year...........................................................................................................................18 5.4 Strategic Alliances................................................................................................................................19 5.5 Milestones.............................................................................................................................................19 Chart: Milestones....................................................................................................................................19 Table: Milestones....................................................................................................................................20 6.0 Web Plan Summary...................................................................................................................................20 Page 1

........................................................................28 Chart: Cash...........................................................0 Financial Plan............................................................................................................................................31 Table: Sales Forecast...........1 Start-up Funding...........................................................................................................................20 6...............................................................................................................2 Organizational Structure..........................28 Table: Cash Flow.................27 8............................................................................................................................3 Projected Profit and Loss....................................................................................................................................................................................................................................1 ........................................................................................................................................................................3 Table: Profit and Loss.................................................................................................................................................................22 Table: Personnel....................................................................0 Management Summary................................................................26 Chart: Gross Margin Yearly...........................24 ..........................................2 Table: Personnel...................................................................................................................................................................................................................29 .........22 8...........................................................................................................................29 8.................................................................................26 Chart: Gross Margin Monthly....27 Table: Profit and Loss...................................................................................................................................................................................23 Chart: Break-even Analysis..........................................................30 Table: Ratios........................................................................................2 Development Requirements.......................................................6 Business Ratios............................................................................25 Chart: Profit Monthly.........................................7 Page 2 ............................5 ....................................................................................................................................21 7..Table of Contents 6......................................................................4 ........................................................................................................................2 Break-even Analysis...........................................................................................................................................................................................................................................................................................................................5 Projected Balance Sheet....................................................25 Chart: Profit Yearly......................................................................................................................................4 Projected Cash Flow..................................................3 Personnel Plan..............................................................................................................................................................................................................................................21 7.............................................................23 8.22 8.....................................................4 Table: Cash Flow.......................................1 Management Team...............................................................................................................................................................24 Table: Break-even Analysis......................................................................24 8................................................................................................................................................................30 8.......................21 7..........................................................................................................................................................................................................................................................22 Table: Start-up Funding.......................................................................................................................................................................1 Website Marketing Strategy.................30 Table: Balance Sheet....6 Table: Balance Sheet...................................3 ..............................................................................................21 7........................................................................................................................................................................................................................................................................................................................................................

Indonesia. In today's highly competitive environment.000 $200. and selection of unique signature dipping sauces. anticipated in month 13 and early in year three. Singapore.000 $0 Gross Margin Net Profit Year 1 Year 2 Year 3 Page 1 . will allow Fresin Fries to successfully open and expand through year two. Singapore's retail sector is the strongest in the region. With more than 11 million visitors yearly. The initial capital investment will allow Fresin Fries to provide its customers with a value-driven. Our main priority is to establish one outlet in a crowded mall.000 Sales $600. Later. The financing. This plan is prepared to obtain a location for the initial launch of this concept. a city state. Fresin Fries will provide a combination of excellent food at value pricing. with fun packaging and atmosphere. is now becoming the model metropolis for Asia's new economic boom. to be consumed while window shopping and walking around inside a shopping mall.000 $1. in addition to the capital contributions from shareholders. Fresin Fries will entice youngsters to bring their friends and family with our innovative environment. it is becoming increasingly difficult to differentiate one fast food outlet from another. Please note that all tables are in Singaporean Dollars (1 USD= S$1.000. mainly from neighboring countries (Malaysia.000 $800. Fresin Fries is the answer to an increasing demand for snack-type fast food. our effort will be a further development of more retail outlets in the surrounding area. preferably in one of prominent shopping malls in Singapore. fresh-cut Belgian fries.200. Additional financing will need to be secured for the two subsequent outlets.0 Executive Summary Fresin Fries is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. entertaining experience through the creativity of its founders.000 $400. Thailand and the Philippines).Fresin Fries 1.60) Chart: Highlights Highlights $1.

all with our official brand attached to them.3 Keys to Success To succeed in this business we must: • • • • • • • Create a unique. Page 2 . • • 1. Provide 100% satisfaction to our customers and maintaining the level of excellent services among other competitors." We will sell merchandise from pre-packaged sauces and t-shirts. such as Jakarta. To make Fresin Fries a destination spot for mall-goers. Bangkok and Manila. Control costs at all times.2 Mission Our main goal is to be one of the most successful fast food outlets in Singapore. in all areas and implement a conservative approach to growth policy. innovative. as well as keeping the customers happy with all of our product categories from food to store merchandising. Encourage the two most important values in fast food business: brand and image. starting with one retail outlet located inside a major shopping mall as a "market tester. Kuala Lumpur. we provide more than enough fund to open more than one outlet. to potato cutters. Get access to high-traffic shopping malls near the target market. To expand into a number of outlets by year three. Although. and sell the franchise to neighboring metropolitan cities. Sell the products that are of the highest quality. as these two ingredients are a couple of main drivers in marketing communications.Fresin Fries 1. 1. Our main focus will be serving high-quality food at a great value. entertaining menu that will differentiate us from the rest of the competition. we want to be on the safe side of the business." Fresin Fries will strive to be a premier local fast food brand in the local marketplace.1 Objectives • To establish a presence as a successful local fast food outlets and gain a market share in Singapore's fast food industry. We want our customers to have the total experience when visiting our outlet(s) and website as they will learn about this fascinating new "pop culture. Promote good values of company culture and business philosophy.

Guy Fry.Carl Cone. He completed several projects and served as project manager for multi-national companies in Singapore. 2. We use the concept of Belgian Fries.-based IT company. A true entrepreneur by heart. energetic and youthful lifestyle. Our store will be decorated with fast food setting. Harry Hip holds a MS degree from Institute Y. His projects are widely varied from product design to brand development of several reputable companies.0 Company Summary What is Fresin Fries? Fresin Fries sells gourmet fries in a cone with a choice of sauce.Harry Hip. 25% . Our store will feature display cooking of our featured Belgian Fries from cutting to frying. variety A different selection of sauces will be featured every three months and we will also change our Italian soda flavors to accompany our fries. with ownership 25% . such as a bright counter and display menu on the wall. Page 3 . sandwiches and variety of unique blend sauces. Prior to his return to Singapore. his latest entrepreneurial project is a diamond store in the heart of Singapore. between 18 to 35 years of age. variety. It will be registered as a Limited company. such as Jamba Juice and Starbucks. he has held several management positions in a U.1 Company Ownership Fresin Fries is a privately held company. Our customers will also be able to read our in-house brochures in regards to all knowledge about Belgian Fries and our featured sauces.Fresin Fries 2. 25% . Sam Sauce holds an MBA degree from University V. Our outlet also provides excellent and friendly customer service to support the ambience of fun. Open everyday Our store is open everyday from 10 am to 9 pm. Variety. Youthful and fresh surroundings We will imitate successful establishments. Quality food Each store will offer nothing but freshly fried Belgian fries. Guy Fry holds a BA degree in Graphic Design from the Academy of Arts. Carl Cone holds a BS degree from University Z. where the fries are all made from fresh potatoes and fried twice. 25% .S.Sam Sauce. which represent the majority of our core target market. all served with old-fashioned home-style care. majoring in Management and Information Technology. Both are currently employed as Corporate Staff of Company A. Guy Fry and Sam Sauce have more than 10 years of experience in the food industry.

000 $100.000 $8. Table: Start-up Start-up Requirements Start-up Expenses Kitchen and Fixtures Furniture and Interior Legal Rent Packaging and Stationary Contingencies Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements $50.000 $500.000 $300. Our preference is Space A.000 $700.800 $21.500 $3.2 Start-up Summary The retail outlet will be rented at one of the target location shopping malls.800 Chart: Start-up Start-up $800.000 $200.000 $0 Expenses Assets Investment Loans Page 4 .000 $400.000 $118.000 $0 $0 $50.000 $600.000 $15. for the main reason of reaching larger traffic.200 $68.500 $4.Fresin Fries 2.600 $16. Startup requirements will be financed through owner investments.

Tourist destination. Fresin Fries will directly compete with several fast food joints inside the chosen shopping mall.1 Product Description Fresin Fries primarily sells fries and our unique dipping sauces. we will offer various merchandise with our logo and colors.3 Company Locations and Facilities Fresin Fries locations will range in size from 50 – 70 meter square and will seat from 15 – 25 guests. with addition of garlic Fresin (add S$0. as Fresin Fries promotes a healthy and positive Singaporean lifestyle. 3. including Tori-Q (yakitori specialist). Our signature sauce is exclusively manufactured by Company Q.0 Products We want to focus only on selling fries. Our first location will be on the larger end of this range. In promoting the Fresin Fries lifestyle. The dips for Belgian style fries can also be served with sandwiches. Main products sold are: Belgian fries. We want "word-of-mouth" to be our best form of marketing.Fresin Fries 2. small (choose 1 dip). we will offer Italian Soda to complement the fries. The location will feature its own originality in merchandise display and other brand building attributes. they are available in more than 20 flavors: • • • • • • Pesto Mayo Satay Sauce Teriyaki Sauce Thai Chili Ketchup Creamy Wasabi Mayo Roasted Pepper Mayo Page 5 . 3. All of these qualities are consistent with Fresin Fries' goal of providing a top quality fast food experience. Bee Che Hiang (chinese sausages). They can be also purchased at selected retailers. from hats to t-shirts to potato cutters to our signature sauces. Belgian-style fries are available in large (choose 2 dips).25). Bread Talk (one of the most successful bakery franchises).000 people within a radius of 8 kilometers. Large percentage of teenagers in the community. Easy access. We will equip the outlet with modern furniture and aim for cleanliness and an open feeling. Italian sodas and corporate merchandise. The space selection will be chosen based upon the following criteria: • • • • Community size: minimum of 800. so that our customers can enjoy Fresin Fries at home. Instead. and Pizza Walker (locally owned pizza chain). Alcoholic drinks will not be sold in our outlet. where our customers value our brand as something exciting and cannot wait to tell their friends and neighbors. We are currently looking at several possible sites in shopping malls along Orchard Road.

Clean Yes Yes Yes Yes Yes Yes Yes Value Yes Yes Yes Yes Yes Yes Yes Yes Merchandising Hang Out Yes Yes No No No Yes Yes Yes Yes Yes Yes No No No No Yes Simple Yes Yes No Yes Yes Yes Yes No Fresh Yes No No Yes Yes Yes Yes Yes Cool Yes Yes Yes No No Yes No Yes Pop Culture Yes Yes No No No No No Yes Company Fresin McDonald's KFC Tori-Q Roti Boy Bread Talk Bee Che Hiang Pizza Walker Yes 3. Half page magazine reviews in Singapore's lifestyle magazines that advertise the presence of the outlet. Our innovative packaging will be more entertaining than our competitors. compared to most fast food outlets that use frozen fries.2 Competitive Comparison Fresin Fries has several advantages over its leading competitors: • • • • • • Unique "fusion" concept of dipping sauce.3 Sales Literature Fresin Fries will use advertising and sales programs to get the word out to customers. that reflects the company's youthful and energetic culture. cinemas. • • 2.000 color brochures to be distributed throughout destination shopping mall and facilities: in-store. area eateries. Our dipping sauce is also made fresh without preservatives. Our fried potato is made 100% fresh. Supporting merchandise items that support the company's brand building. We expect a high degree of enthusiasm and offer a fun store with friendly staff. a single cone with a cup reserved for dipping sauce.Fresin Fries • • • • • • • • • • Lava Cheese Black Pepper Sauce Curry Ketchup Barbecue Jalapeno Ketchup Caribbean Islands Traditional Sambal Korean BBQ Hot Chili Sauce Garlic Dip 3. Page 6 . information during the grand opening in January 2005.

Below are the programs that we will develop to open each location. we will focus on selling fries and signature sauces. In the future. as we grow further. Private Parties Brochures and handouts will explain that we can handle banquets and private parties. sandwiches and Italian soda at greater value than selling at individual items.6 Future Products For now. Grand Opening Each new outlet will have outdoor signage as soon as possible. such as Belgian Sandwiches and Buffalo Wings. We also have an agreement with Company Q to exclusively manufacture our signature sauces.4 Sourcing Fresh potatoes will be delivered weekly by our distributor directly from the U. house of operation and a locator map. in addition to our brochure that will list our daily entrees. we will add new categories to our menu. Point of Purchase We will use "tray toppers" to explain the concept and philosophy of Fresin Fries. will be produced in full color on heavy weight paper. announce future job openings. Page 7 . We will also sell gift certificates. 3." It primarily consists of a combination of our featured Belgian Fries. the same marketing mix as the others. Inside will be all the important details of Fresin Fries. Direct Mail Piece A stand-alone piece.5 Sales Programs Each opening of Fresin Fries will have. We want the signage to be supported by banners before the opening. However. The success of Bread Talk franchising in Indonesia is the best example on growing globally. and all of our merchandise will be printed and produced by our partner's office in China. but also will be generated by the conception of an innovative package menu called the "value meal.Fresin Fries 3.S. our growth strategy will be offering the franchise of our brand to food entrepreneurs in the region. folded. Value Meal Sales of Fresin Fries will not only generated from the selling of its famous Belgian Fries. Further customization could be done by selling a bigger size of fries called "Uber Fresin" to attract price sensitive customers. explanation of our menu. 3. prices. more or less. and possibly mention franchise opportunities.

especially if they have smaller kids. Income .Youngsters. Most of Singaporeans love to window shop. pizza or other fast food joints in the vicinity. Gender . with a slight skew for males due to their lower attention to dietary concerns.We will also appeal to families (young families) with children. Our concept will have very broad appeal. because of the brand building effort that heavily targets their age group.0 Market Analysis Summary Consumer expenditures for fast food in Singapore rose during the end of the year 2000. Eating out still remains as Singaporeans' common habit of life. Page 8 . According to a recent public survey of people 15 . and they enjoy it by bringing their family. It is our goal to be the hip destination for fast food cravings. and when they do strolling around the shopping district.45 years old. single.We will appeal to the medium income individuals and to all in the lower medium income bracket. and 10% of them claimed that they like fast food "very much. The survey also provided the following particular reasons for the increasing popularity of fast food: • • • • People have 52 weekends and three long holidays a year. Food spending is around 56% of total consumer expenditures in Singapore. followed by the recovery of Singapore's economy. and consumer spending on leisure and recreation made up of 13% of total consumer spending. 90% of them like fast food on a regular basis. White-collar workers in offices have stopped bring lunch. currently enrolled in college and high school. and enjoy chicken.Fresin Fries 4. Parents give more money to kids and students to buy lunch. Family unit . • • • • Age .We will target both sexes. hamburger. 80% of those interviewed like fast food. in the environment of the western-style fast food outlets. The increasing number of new establishments such as fast food franchises. They do not perceive fast food is a luxury. Fast food is naturally their first choice. A much broader appeal exists for weekend slots because those are the days when most of our core target market enjoys the mall going activities. fancy restaurants and gourmet bakeries around Singapore has shown a significant growth in this sector." or "love" fast food. they need a quick bite to accommodate their activities.

Tourists will stroll Orchard Road. Fresin Fries is the alternative for a quick bite while shopping the fancy boutiques in the area.000 6.300 7. There are more than 10 major shopping malls across Orchard Road. including Ngee Ann City.52% 5.500 7. They tend to flock to fast food joints inside shopping malls across Orchard Road.00% 15. In the new Paragon Shopping Centre. Table: Market Analysis Market Analysis Year 1 Potential Customers Young Singaporeans Working Singaporeans Tourists Total Growth 15% 10% 20% 15. the Hilton.472.000 15. the biggest shopping mall in the nation.500 3. The Meritus Mandarin." With so many shopping malls in the vicinity.800.031 4.1 Market Segmentation We are targeting young Singaporeans as our primary market.000 4.00% 10.745.000.000 workers currently working as sales persons and boutique staff. Lastly.00% 20. there are more than 8.560.Fresin Fries 4.300.000 5.800.000 workers.000 6.52% Chart: Market Analysis (Pie) Page 9 . and Popular Hotel are a few of the biggest accommodations in Singapore. Due to heavy extra-curricular activities among Singapore's youth.680 21. Crown Prince Hotel.993.000 3.750.879.612. it is common for high schoolers to have lunch inside shopping malls.714.017.000 11.163.400 18.000 3.000 3.610.775 8. and not at home.000.011 Year 2 Year 3 Year 4 Year 5 CAGR 15. Orchard Road is also the destination for tourists staying in the area.000 13.566. Our secondary market segment is the "Working Singaporeans. employing more than 50.392.630.375 3.000 5. Orchard Road is the place to meet and hang out after school.604. hunting for the latest trend in fashion and have no time to stop for a full meal during shopping. Orchard Road is the haven for shoppers and job seekers alike.

Our core group: • • • • • • • • Wants variety and flavor in its food. but we offer much more excitement than the rest of the competition. Second. A recent Consumer Trend and Analysis by Euromonitor identified the following needs among our target markets.2 Target Market Segment Strategy Fresin Fries intends to cater to the bulk of teenagers and youngsters in Singapore. They are more flexible in budgets and seek more than a value/price relationship. First.2.1 Market Needs Fresin Fries sees our targeted market group as having many "makan" (eating) Singaporean Dollar needs. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets. friendly.00 for a medium size fries. At S$4. Our lunch strategy is dual purposed. and attractive environment Adopts a global lifestyle Is computer literate Enjoys eating out Has an active lifestyle Page 10 .Fresin Fries Market Analysis (Pie) Young Singaporeans Working Singaporeans Tourists 4. 4. which are a heavy lounge/restaurant user group. Our secondary target is between the ages of 25 and 37. we are featuring fresh fries to fill Singapore's craving for fast food as most ideas of lunch is a quick bite not a heavy meal. We have chosen this group for several important reasons. we are only slightly above the segment. we want to keep the price point at lunch as fair as possible to keep us in competition with other fast food outlets. It is our goal to be "the extraordinary fast food place" and we believe that the age group from 15 to 25 is the primary age where brand building efforts could take place. preferably something fried Looks for speed of service Wants an entertaining and fun experience Insists upon a clean.

Page 11 . which means greater disposable incomes. Some changes taking place include a larger professional class with more working women. potatoes are the second largest commodity of US exports to Singapore after fresh fruit. valuing almost USD $13 million per annum. and entertainment choices.Fresin Fries • Comes from various ethnic backgrounds According to a GAIN Report published in 2000. This is caused by the increasingly younger demographic and rising incomes throughout Singapore that have led to lifestyle changes that are influencing consumer purchases. food.

Recent bombing tragedies have also proven that negative effects on this sector are moderately short-term. for whom time is of a premium. Long John Silver's and Pizza Hut were dominating most of the chains.-owned enterprises. Singapore's food service industry witnessed growth over 2000/2001 at 4 . Many local entrepreneurs camouflaged their retail stores as an international brand in accordance to what they sell. For instance. primarily U." Usually after they went back from vacationing in Singapore. new restaurants.3 Industry Analysis Despite the prolonged effects of the Asian Economic Crisis followed by political turmoil up to mid 2001. Franchising became popular in the food service industry through the introduction and entry of multi-national food service brands. particularly during 2000 and 2001. Much of this growth was contributed by the cafes/bars. Singaporeans preferred Western chain restaurants. But the trend seems to have shifted in the last decade. led to high levels of growth. the food service industry recovered faster than others.5% in terms of units and transaction (Euromonitor). Although there was a slowdown during the economic crisis in 1998.2. and there is a fashion boutique named after an old Italian movie. there is a local entrepreneur who created a Japanese name to sell yakitori (Japanese BBQ meat skewers). This growth is underpinned by market demand and lifestyle changes. Pizza Hut and McDonald's. 4. Currently. McDonald's. mainly from fast food chains. For instance. both of international and local chains. such as Bread Talk and Bee Che Hiang. with the success of the locally grown brands. fast food. such as KFC. and food retail sectors. This stimulated the rise in the number of fast food units. such as seeing eating out as part of trendy lifestyle.S. Many of these local brands grew to become giant franchises that dominate the Southeast Asia region.Fresin Fries 4. and new fast food joints. Entry of major multi-national food service operators into major shopping destination in the late 1980s until the 1990s led to growth in competition in the marketplace. new boutiques. there are many local chains that have also experienced growth by applying this system to their operations. The key to success for these foreign chains was mainly due to the popularity of Singapore as tourist destination for these countries. Tourists are the strongest "buzzer. they told friends and families about new things in Singapore. whose wide appeal amongst a young population. This was the time when KFC. The fascination of Asian tourists coming to Singapore has positioned the city itself as an aspiration to modern life in the region. including new shopping malls. Page 12 .2 Market Trends In the past. Bread Talk controls 55% of Indonesia's bakery market. that started in the early 1990s.

there has been a general upgrading in the food service sector which has seen the establishment of more air conditioned food centers (food courts) that are considerably cleaner than the traditional hawker markets. The growth in spending in the food service sector arises from a number of factors: • • • Increased affluence amongst Singaporeans. Increased convenience-seeking amongst younger Singaporeans who live in a hectic city today compared to the much slower pace of life that existed 20 years ago. Over the past 5 years.3. Modern retail bakery/café outlets such as Bread Talk. Another reason is because many retailers do not want to lose sales opportunity. rather than prepared ready-to-cook or ready-to-eat processed convenience foods.Fresin Fries 4. due to the high volume of people strolling around the main area of Orchard Road. locals have adopted the convenient products of other food service outlets. Singapore is a compact city.2 Competition and Buying Patterns The competition in this arena is the fiercest in all other metropolitan areas in SE Asia. This phenomenon has made Singapore the best place to shop.1 Trends in Food Service Retail According to government surveys. there is another Häagen Dazs across the street at the new Paragon Shopping Centre. including chains such as Outback Steakhouse. Increases in the number of expatriate residents. At the same time. especially those under the age of 40 years. especially the fast food outlets.3. For instance. Singaporeans have long turned to the local hawker stalls. Modern coffee shops such as Starbucks. which has more than doubled since 1988. Usually there are a minimum of two of the same outlets within a radius of less than 300 meters. If you just missed Häagen Dazs waffle at CK Tang Shopping Mall. Singapore's spending on "eating out" is continuing to increase. Younger middle and upper income group families and individuals are also frequent users of the full service restaurants. It is quite common for retailers to implement this kind of strategy. as the competitors are offering substitutions and similar product categories. increased investment from foreign and local businesses in the sector has also produced an increase in the numbers of: • • • Foreign chains. as alternative sources of convenient cooked food. 4. When they want convenient cooked food. modern-style coffee shops and cafés that now exist all across Singapore. but has a lot to offer. As the numbers and variety of food service outlets has increased in Singapore. Page 13 . Bread Talk opens one outlet inside the Ngee Ann City Shopping Centre and another just across the street inside the Far East Plaza Shopping Centre. Spending on cooked food as a percentage of total average food-spend reached 55% in 1998.

Home grown franchises are more often sought more by young entrepreneurs than are their Western counterparts. and the Philippines. and Rotiboy. Bread Talk is surely becoming a threat for most food retailers. Vietnam.S. ToriQ is popular among local teenagers as it offers fast service to its customers. a lunch menu in Singapore consists of "fried and BBQ stuff" such as roast pork with rice or the Big Mac. etc. Bread Talk As the most successful franchiser in Singapore. Franchises from the U.3. Malaysia. and often considered alternatives for its long queueing rivals. Tori-Q outlets are rather small. there are Tori-Q. Local Franchising Around 40% of the franchises operating in Singapore are foreign. Pizza Walker. Pizza Hut. as they offer greater flexibility and lower franchise fees to operate. It has more than enough tables to serve a maximum of 55 guests.3 Main Competitors Our main competitors in this segment are any food outlets within the 300 meter radius along the Orchard Road.000 breads each day in just one of their retail outlets. Pizza Walker Pizza Walker is a joint venture positioned as gourmet pizza joint in Singapore. Rotiboy A Malaysian franchise. Rotiboy offers simplicity for quick lunch franchiser. Starbucks. Pizza Walker is a good place to hang out. Bread Talk outlets usually consist of a huge see-through kitchen.4 Foreign Vs. Rumor has it that Bread Talk sold more than 35. Due to high capital investment.Fresin Fries 4. and Thailand. with three or four cashiers at front. such as flowers and see-through kitchens. home grown franchises are more efficient in the overall supply chain management as the basic raw ingredients are commonly found anywhere in the region. Most of its retail outlets are decorated with welcoming ambience. Its specialty is all-you-can-eat pizza! Starbucks Starbucks' strategy entering the lunch market had made some impact in Singapore. Established in 1998. and the place is always full during lunch hour. and can only serve a maximum of 6 guests. Usually. with big players such as KFC. Indonesia. Tori-Q had expanded its operation into neighboring countries. Tori-Q Tori-Q is locally owned franchise who sells Japanese BBQ skewers. 4. It is a choice for those who are in a hurry and would like to grab a quick lunch on the way. Unlike Western license holders. and bread trays ready for pick-up by customers. In our location. Bread Talk not only rented most of the retail space along Orchard Road. Starbucks. to speed up the queue. Starbucks is one of the first food retailers that popularized "light and healthy" alternatives such as salad or lean sandwich as an options for Singapore's lunch accommodations. Singapore conglomerates tend to dominate the industry. Thailand. Commonly. Page 14 . Home grown franchises are still in their maturing stages as they start to expand globally. account for 65% of foreign brands. but now they are doing delivery to offices and apartments nearby.3. Bread Talk. Rotiboy is quite popular in the region as it is now expanding into several cities in Indonesia.

2. then broader media will be explored. that the best form of advertising is still "buzz. energetic and playful with color elements that are eye catching. Local store marketing is most effective. • • Our logo is distinct as fresh. we will provide a see-through kitchen. As soon as a concentration of stores is established in a market. followed by print ad. 5. We will start our first outlet as a "market tester" that could become a model of the expanding number of outlets in the future. however.1 Competitive Edge • • • • • Our unique dipping sauces blend local taste and international into one fusion recipe for the signature sauce. and signature style sauces to be sold. This will become our "market testing area. we will be the talk of the town.2.1 Pricing Strategy Our pricing strategy is positioned as "generic". with unbeatable quality at an acceptable price in a clean and friendly outlet.0 Strategy and Implementation Summary At first. so that people will come and try our products. 5. A combination of local media and local store marketing programs will be utilized at each location. The kitchen will also let out an aroma of our freshly fried fries into the surroundings area. with items such as "Frenzy Fresin" and "Uber Fresin" which are fun and easy to remember. unlike the frozen fries used by competitors.2 Marketing Strategy Our strategy is based on serving our markets well. meaning that S$4." By providing a fun and energetic environment. 5.00 is the average consumer spending for a snack or light lunch in Singapore. In attracting customers to try our fries. Fresin Fries is planning to open another in nearby shopping malls. Leveraging the volume of fries. through the selling of supporting materials. we are serving the majority of Singaporeans. promotional items and other marketing gimmicks similar to those of other fast food franchises. Innovative packaging will position us at the same level with foreign fast food franchises. Enthusiastic and friendly staff Supporting merchandise items that support company's brand building. Concentration will be on maintaining quality and establishing a strong identity in the local market. the execution of our concept is the most critical element of our plan. Product names are geared toward the target market (teens). so that people will see how we are committed to freshness in our products.Fresin Fries 5. We will actively build our brand." and as we go further. Our fries are made of 100% fresh potatoes. we will open one outlet inside the New Paragon Shopping Centre. such as merchandise. We believe. Italian Soda. Page 15 .2 Brand Challenges Fresin Fries must establish a distinct brand to stand out from the other Western-style fast food competitors. Therefore. 5.

5. • Local Media o Direct mail piece – containing brochures sent to surrounding addresses. o Free occasional t-shirts at local stores events. o Wall posters. o Merchandising items. Although. We will price our products fairly.3 Marketing Programs We will deploy three different marketing tactics to increase customer awareness of Fresin Fries. The last marketing effort will be utilizing local media. These will be low-budget plans that will provide community support and awareness of our facility. o Standing signage inside malls’ lobby/aisle. such as Free! Magazine. o Design concept. this will be the most costly. o Grand opening promotion.3 Sales Strategy The sales strategy is to build and open new locations in order to increase revenue. o In-store viewing of making fries process from cutting to frying. history and news. this tactic will be used sparingly as a supplement where necessary. 5. The second tactic will be local store marketing. Our most important tactic will be "word-of-mouth" and in-store marketing.Fresin Fries 5. • Local Store Marketing o Brochures. As each individual location will continue to build its local customer base over the first three years Page 16 . this plan will be implemented when the one "market tester" outlet showed potential growth. keep our standards high. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about.4 Positioning Statement Our main focus in marketing will be to increase customer awareness in the surrounding community. o Newspaper campaign – placing several large ads throughout the month to explain our concept to the local area. o Outdoor signage (if possible). o Party catering. • In-Store Marketing o In-store brochures containing our concept and philosophy. However. and execute the concept so that “word-of-mouth” will be our main marketing force. This will be by far the cheapest and most effective of our marketing programs because of the high traffic in targeted shopping locations. o Local magazines that target our core customers.2.2. o Web page – containing company philosophy.

50 $2.50 $8.327 Year 2 $0.425 337.114 $13.384 7.876 $3.571 $4.00 $395.228 $26.856 $41.3.116.768 15.778 6.50 $8.Fresin Fries of operation.000 per year.83 $1.556 13.464 27.163 Year 1 $0. the goal of each store is S$104.50 $2. mostly for shopping and dining.692 3.503 $13. Approximately 1. 5. it means vacation time.00 $1.15 $3. with the original flagship store expected to earn almost S$200.50 $8. we anticipate more tourists coming into Singapore.308 $29. there is Ramadan. Table: Sales Forecast Sales Forecast Year 1 Unit Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Total Unit Sales Unit Prices Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Total Sales Direct Unit Costs Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Direct Cost of Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Subtotal Direct Cost of Sales $39.712 $279.50 $2. this explains the jumped of sales in these last two months of the year.712 $83.15 $3.751 $6.00 49. In November.538 $33.654 Year 3 $0.712 $123.80 $0. due to the holiday seasons. Then in December.15 $3.00 197.152 $132.856 110.957 $79.154 $14.80 $0.00 $791.00 $1.424 $166.914 $158.712 168.425 $247.80 $0.142 $8.401 Year 1 $4.285 $16.00 $1.827 $197.802 Year 2 $4.00 98.00 Year 2 Year 3 Page 17 .076 $66.5 million Indonesians visit Singapore each year.250 in annual sales.1 Sales Forecast We anticipate the highest peak on the months of November and December in our sales forecast.356 84.356 $61.83 $1.83 $1.605 Year 3 $4.928 55.849 $1.425 $558.889 3.615 $59.057 $6. and for non-muslim Malaysians and Indonesians.

000 $30.200.000 $1.Fresin Fries Chart: Sales Monthly Sales Monthly $50.000 $0 Year 1 Year 2 Year 3 Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Page 18 .000 $600.000 $0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Chart: Sales by Year Sales by Year $1.000 $10.000 $200.000.000 $20.000 $40.000 $400.000 $800.

5 Milestones During the initial set up of the company. the 4 founders (Guy Fry. Harry Hip. Sam Sauce. in addition to the revision and refinement process that will take the rest of the 12 month period before our opening in early 2005. and 7th locations 1/31/2004 7/31/2004 1/31/2005 7/31/2005 1/31/2006 7/31/2006 1/31/2007 7/31/2007 Page 19 . 5. 6th. The planning and construction will take approximately 8 months.4 Strategic Alliances Our business requires a long relationship with raw suppliers as well as partner vendors. In Chinese. Joe Shmo. Chart: Milestones Milestones Follow up w ith suppliers Printing materials Constructions Grand opening materials Open second location Open 5th. is a prominent figure in the society and we hope to strengthen further our business relationship with him and the company.Fresin Fries 5. For Company Y. We already have a long and good standing relationship with Company V in our previous ventures. and Carl Cone) will conduct the planning and implementation in building the brand and the construction of our first outlet." meaning business bonding. Mr. the managing director. this relationship is called "guanxi.

or order potato cutters for delivery. including the history of french fries over time. 6.050 Manager Carl Cone Sam Sauce Sam Sauce Guy Fry Sam Sauce Harry Hip Guy Fry Guy Fry Harry Hip Carl Cone Carl Cone Carl Cone Harry Hip Department Business Development Business Development Business Development Marketing Marketing Business Development Marketing Marketing Human Resources Business Development Business Development Business Development Human Resources 6. customers can now write their comments and suggestions on our website. POP Grand opening materials Hiring staff Open second location Open 3rd and 4th locations Open 5th. We will also post banners on an official Singapore tourism website. So.0 Web Plan Summary The website will.000 TBD TBD TBD TBD $900 $10. of course. In the future.000 $15. show visitors everything about Belgian food culture. which will be directed to one of our staff. Visitors can also download Fresin Fries' theme song as ring tones. 6th. our website will show information on franchising/licensing our brand name. Page 20 .1 Website Marketing Strategy We will leverage the visibility of our shopping mall's website by getting them to include a link to ours. To make the website interactive. so our visitors can print the promotional coupon in PDF format and bring it when they visit Fresin Fries. Besides the traditional formats of customer service hotline and in-store form.000 $1. Fresin Fries will offer gift cards and promotions via the Internet. the website itself will act as the medium between our company and our audience.Fresin Fries Table: Milestones Milestones Milestone Presentation materials for all stakeholders Follow up with suppliers Follow up with developers Printing materials Marketing communication program Constructions In store signage.000 $55.000 $20. and 7th locations Training staff Totals Start Date 1/12/2004 1/21/2004 1/21/2004 2/13/2004 2/21/2004 5/22/2004 5/23/2004 6/2/2004 7/14/2004 7/1/2005 1/1/2006 1/1/2007 9/12/2004 End Date 3/12/2004 3/22/2004 9/8/2004 4/10/2004 6/23/2004 12/3/2004 10/11/2004 10/13/2004 8/12/2004 7/1/2005 6/1/2006 12/31/2007 12/10/2004 Budget TBD $100 $50 $8.

acting Head of Human Resources Division. Implementation of this organization form calls for all four individuals to make all major management decisions in addition to monitoring all other business activities. Possible positions might be added at a later date include marketing manager. This will provide a supervisory level between the executive level and the store management level. We hope that this individual will come out of the ranks of our stores’ management. We will not add additional overhead until absolutely necessary. The diversity of founders' background in our company has enabled a cost efficient development in our venture. R&D and administrative support team. Fresin Fries is being owned by its 4 founders. with little back-up. Harry Hip. Guy Fry. Part of our basic philosophy will be able to run our executive management as a "knowledge sharing" fellowship. David Lu will be responsible for accounting and business development of Fresin Fries. This will also allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return.2 Organizational Structure Future organizational structure will include a director of store operations when the store locations exceed four units. we will take on additional help in certain key areas. each location will have a primary site manager. 7. Carl Cone are experts in Information Technology. This will mean that the initial staff support team will have to work extra. 7. the 4 founders’ share will be consolidated as one entity. Others that have helped on the development of this business venture will be offered an opportunity to grow together with the company at the appropriate time.Fresin Fries 6. the back end of our website will be developed by these gentlemen. As we grow. By doing this.1 Management Team Fresin Fries is currently the creative idea of its four founders. human resources. the front end strategy of our website should be parallel with our corporate color.0 Management Summary The initial management team depends on the founders themselves. As Mr. allowing us to adequately staff our outlets.2 Development Requirements To adequately serve our audience. The front end design of our website will be entirely trusted to Mr. it only requires a simple organizational structure. we will keep our overhead as low as possible. Current plan is to have our accounting and payroll functions done by an in-house bookkeeping. and when the time comes. 7. As the company is small in nature. Harry Hip and Mr. purchasing manager. Page 21 . At present time. As we expand into multiple locations. helped by Mr. controller. Mr.

Future shares will be offered after two consecutive years of operating in Singapore. Table: Personnel Personnel Plan Year 1 Site Managers Cashiers Cook Busboy Total People Total Payroll $0 $36. This is considered an ideal personnel number for a food outlet the size of our own.000 $28.000 26 $262.800 $23. Guy Fry. including site managers. 25%. Carl Cone.200 $94.400 12 $88. who each will contribute $200. Each employee will work for 38-40 hours per week. we will employ more people in the middle management to ensure the focus of our work.000 $144. Page 22 . with one of each on the premises during open hours.400 $115.3 Personnel Plan Our initial employees will include two cashiers.000 for the same amount of share.Fresin Fries 7.000 $66. and Sam Sauce.200 Year 2 $60. In the long run. the company is owned by the original 4 founders. as we expand our product category and retail outlets.0 Financial Plan The company is now privately held by Harry Hip.000 40 $449. This will more than cover start-up requirements. and provide the business with a cash cushion to use for expansion over the first three years.000 Year 3 $96. two cooks and two bus boys per location.1 Start-up Funding Currently.600 8.000 $56.000 $80. 8.

200 $800.200 $731.200 $731.000 $0 $800.800) $731.700 per month to break even.000 $200.000 $118.800 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital $0 $0 $0 $0 $0 Planned Investment Eric Yam Martin Ng David Lu Sagita Suwandi Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital $200.000 8.000 $200.800 $50.Fresin Fries Table: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $0 $50. We do not expect to begin turning a profit until year three.000 $681.200 $68.000 ($68.000 $200.2 Break-even Analysis Our break-even analysis shows that we need unit sales over 9. Page 23 .200 Total Capital and Liabilities Total Funding $731.

73 $24.706 $32.104 $3.979 Page 24 .000 $0 ($10.000) 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 22000 Table: Break-even Analysis Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 9.Fresin Fries Chart: Break-even Analysis Break-even Analysis $30.31 $0.000 $20.000) ($20.000 $10.

000 $10.000) ($10.Fresin Fries 8.3 Projected Profit and Loss As the Profit and Loss shows.000) ($15.000 $5.000 $0 ($5.000) ($30. Chart: Profit Monthly Profit Monthly $15. we will expand into new locations to aggressively spread brand recognition. while maintaining our flagship operation. This increase in visibility will allow us to take up less expensive locations off of Orchard Road.000) ($20.000) ($25. As sales increase.000) Month 1 Month 3 Month 5 Month 7 Month 9 Month 11 Month 2 Month 4 Month 6 Month 8 Month 10 Month 12 Page 25 . in a prime spot. the first store. Fresin Fries will run at a loss for the first two years. using up some of the cash reserves initially invested by the founders.

000 $20.000) ($60.000) Year 1 Year 2 Year 3 Chart: Gross Margin Monthly Gross Margin Monthly $40.000) ($90.000 $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 Page 26 .000 $8.000 $36.000 $24.000) ($120.000 $0 ($30.000 $4.000 $28.Fresin Fries Chart: Profit Yearly Profit Yearly $60.000 $30.000 $16.000 $32.000 $12.

000 $2.000 $100.000 $800.914 $0 $123.826 77.000 $10.200 $10.957 $0 $61.587) $0 $0 ($140.000 $50.000 $815.226 $0 $0 $53.000 $5.000 $0 $298.550 $25.543) $0 $0 ($82.600 $10.81% Year 2 $558.600 $53.000 $299.000 $50.000 $600.000 $300.957 $217.000 ($140.327 $123.000 $0 $174.827 $868.000 $400.413 77.000 $200.543) -29.226 $53.654 $247.226 4.587) ($140.77% Page 27 .000 $500.587) -25.914 $434.000 $0 $248.18% $449.81% Expenses Payroll Marketing/Promotion Depreciation Rent Utilities New location setup Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales $88.750 ($82.163 $61.543) ($82.116.000 $0 Year 1 Year 2 Year 3 Table: Profit and Loss Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % $279.207 77.000 $8.81% Year 3 $1.57% $262.827 $0 $247.000 $575.Fresin Fries Chart: Gross Margin Yearly Gross Margin Yearly $900.000 $700.

000 $400.000 $0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Net Cash Flow Cash Balance Page 28 . Chart: Cash Cash $800.4 Projected Cash Flow The following chart and table show the Projected Cash Flow for Fresin Fries.000 $100.000 $300.000 $700.000 $500.000 $600.Fresin Fries 8.000 $200.

301) $677.245 $449.163 Year 1 $0 $0 $0 $0 $0 $0 $0 $558.245 $692. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $0 $0 $0 $0 $332.116.Fresin Fries Table: Cash Flow Pro Forma Cash Flow Year 1 Cash Received Year 2 Year 3 Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax.163 $558.654 $1.245 ($133.200 $244.048.327 $1.116.886 $0 $0 $0 $0 $0 $0 $0 $279.918) $543.327 $558.748 $88.163 $279.000 $430.048.286 $1.116. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.465 ($53.886 $67. VAT.981 $0 $0 $0 $0 $0 $0 $0 $1.600 $599.654 Page 29 .327 Year 2 $0 $0 $0 $0 $0 $0 $0 $1.465 $262. VAT.767 $611.654 Year 3 $279.899 $0 $0 $0 $0 $0 $0 $0 $692.265 $332.

452 $0 $50.5 Projected Balance Sheet Fresin's projected company balance sheet follows. Table: Balance Sheet Pro Forma Balance Sheet Year 1 Assets Year 2 Year 3 Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $29. our net worth rises again.800) ($82.748 8.Fresin Fries 8.657 $35.343) ($140. Industry Profile.748 $0 $611.587) $508.000 ($151.748 Year 3 $677.899 $0 $677.070 $543.000 ($68.242 $0 $29. details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code 5812.452 $800. Page 30 .981 $0 $543. We expect to run at a loss for the first two years.657 $677.911 $0 $0 $35. As the operation becomes more profitable in the third year.000 ($291.452 $0 $0 $50.911 $0 $35.748 $561.930) $53.296 $0 $0 $0 $677. decreasing our net worth slightly.226 $561.070 $50.911 $800. The final column.296 $611.899 $648.6 Business Ratios The following table outlines some of the more important ratios from the Fast Food Restaurants and Stands industry.899 $543.981 $508.981 $611.242 $800.981 Year 2 $0 $0 $0 $611.242 $0 $0 $29.543) $648.899 Year 1 $0 $0 $0 $543.

657 0.Fresin Fries Table: Ratios Ratio Analysis Year 1 Sales Growth Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling.60% 93.25% 9.80% n.00% 0.99 0.13 8.73% -12.31% 0.a n.05% 39.00% 77.25% 91. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 2.15 6.a 0.00% 8.17 27 1.57% -12.00% 4.60% -27.00% 59.70% Year 3 4.00% -25.00% 77.81% 107.00% Industry Profile 8.57% 100.17 26 1.00 0.48% 8.18% -27.00 0.00% 100.00% 8.55 8% 12.43 0.18% Year 1 -29.83 n.09 1.00% -29.97 7% 15.67% -25.a 23.13 12.18 4.00% 17.03% 100. to Liab.77% 100.31% 95.10 0.04% 0.00% 100.a n.00 n.41 12.a 9.67% Page 31 .00% 4.00 n.296 0.75% 37.00% 0.a n. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.070 0.a n.00% 0.25% 0.a n.04 0.18% 100.a n.67% 12.05 1.60% 0.03 12.15 15.00 0.69% 0.15 1.73% 15.99% 0.18 23.a n.96% 1.26% 40.77% 9.a n. Year 2 100.94% 22.00 $508.00% 6.00% 100.81% 73.00 n.a 1.20% 59.24% 1.31% 45.07 1.00% 100.81% 102.13 1.22% 6.18 0.84% Year 2 -25.a n.48% n.87% 100.00% 77.00 $561.00 0.37% 0.40% 0.90% 13.97% 54.a $648.35 27 0.92% 0.00% 6.66 50.00% 100.43 4% 23.00% 100.00% 4.a.00% Year 3 100.31% -12.

Fresin Fries Page 32 .

00 Month 5 $4.504 $553 $1.83 $1.15 $3.020 $236 $7.00 Month 6 $4.50 $2.00 Month 11 $4.733 3.123 160 150 3.025 $4.426 299 270 6.659 $202 $689 $150 $2.50 $2.386 $887 $38.80 $0.80 $0.549 $15.00 Month 12 $4.488 1.142 $270 $4.185 $3.50 $8.15 $3.00 Month 4 $4.80 $0.50 $8.961 $3.00 $1.978 $22.50 $2.605 $636 $2.842 $618 $12.00 Month 7 $4.80 $0.617 220 150 4.00 Month 8 $0.476 3.235 $54.690 516 444 11.000 650 100 100 1.147 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Unit Prices Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Month 1 $4.666 $6.320 $6.50 $2.982 $1.00 $1.83 $1.426 $1.50 $8.83 $1.627 $7.161 2.50 $2.294 $2.00 Month 2 $4.00 $1.15 $3.404 $1.023 $6.00 Month 12 $0.00 $1.953 $2.00 Month 10 $0.225 $3.519 $5.313 $1.117 Page 1 .80 $0.00% 45.50 $8.50 $2.15 $3.00 $1.00 Month 4 $0.83 $1.642 $19.83 $1.00 Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Total Sales $4.50 $2.074 1.00 Month 6 $0.348 180 150 3.15 $3.00 Month 7 $0.365 $5.747 6.535 $4.088 $5.870 $300 $14.697 $39.50 $8.880 743 618 16.382 $168 $612 $150 $2.00 Month 5 $0.800 $1.981 2.00 $1.83 $1.244 5.15 $3.80 $0.850 1.760 $1.925 $732 $2.152 $140 $551 $139 $1.586 $481 $1.974 $444 $8.50 $2.83 $1.474 $6.368 $523 $10.00 Month 10 $4.529 8.00 Month 2 $0.751 2.790 358 319 8.50 $8.925 $3.912 $1.00% 50.000 $975 $850 $200 $6.022 $1.00% Month 1 $0.00 $1.243 619 523 13.880 3.00 Month 11 $0.83 $1.83 $1.00 $1.50 $2.15 $3.907 4.778 2.50 $8.15 $3.50 $2.80 $0.00 $1.209 430 376 9.263 $1.80 $0.00 Month 3 $4.00 $1.659 1.685 $1.440 936 144 139 2.641 9.00% 10.930 $4.15 $3.00 Month 9 $0.80 $0.654 $1.655 $752 $32.822 $419 $1.83 $1.047 $45.50 $8.50 $8.83 $1.316 $1.15 $3.639 $2.380 $960 $117 $459 $118 $1.00 Month 9 $4.110 $4.Appendix Table: Sales Forecast Sales Forecast Month 1 Unit Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Total Unit Sales 2% 2% 2% 1% 1.218 1.226 $5.185 $364 $1.00 Month 3 $0.83 $1.700 $1.50 $2.538 $540 $22.371 $319 $5.133 $7.50 $8.224 $278 $8.976 4.00 $1.813 $3.530 $300 $12.15 $3.146 $9.257 $8.00 Month 8 $4.256 4.932 $4.991 $243 $842 $150 $3.170 $1.50 $2.15 $3.50 $8.200 780 120 118 2.80 $0.00 $1.326 $33.645 $376 $7.80 $0.152 $27.80 $0.360 $300 $10.498 Direct Unit Costs Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Direct Cost of Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Subtotal Direct Cost of Sales 20.00 $800 $98 $383 $100 $1.728 1.046 $637 $26.50 $8.

Appendix Page 2 .

600 12 Month 8 $0 $4.300 6 Month 5 $0 $2.900 $9.000 $1.900 $4.000 $1.600 $1.600 12 Month 9 $0 $4.600 12 Month 11 $0 $4.200 $2.600 $1.200 $2.300 6 Month 4 $0 $2.200 $2.000 $3.900 $4.000 $1.600 12 Month 10 $0 $4.000 $3.000 $3.000 $1.800 Page 3 .000 $3.600 $1.900 $4.600 12 Total Payroll $4.000 $3.600 $1.300 6 Month 7 $0 $4.800 $9.600 $1.800 $9.200 $2.800 $9.600 $1.Appendix Table: Personnel Personnel Plan Month 1 Site Managers Cashiers Cook Busboy Total People 0% 0% 0% 0% $0 $2.200 $2.300 6 Month 2 $0 $2.900 $4.800 $9.000 $3.000 $1.800 $9.200 $2.600 12 Month 12 $0 $4.300 6 Month 3 $0 $2.900 $4.300 6 Month 6 $0 $2.000 $1.

474 $0 $8.870) ($2.93% $1.252) $0 $0 ($6.213) -219.447 $0 $0 Net Profit Net Profit/Sales ($13.631 $0 $0 $14.088 $0 $7.286) -170.77% Expenses Payroll Marketing/Promotion Depreciation Rent Utilities New location setup 15% $4.474 Month 11 $45.02% $25.252) -45.447 $14.933 $27.684 77.28% ($6.225 Month 7 $22.286) ($12.933 $27.858 $17.870) $0 $0 $1.09% $21.313 Month 5 $12.77% $11.94% ($9.133 $0 $10.30% ($12.654 $0 $1.381 77.933 $27.885) -25.10% $5.83% $42.000 $125 $0 $4.000 $300 $0 $9.257 $2.944 77.063 77.645 77.654 Month 3 $8.666 $1.25% ($31.919 5.117 Gross Margin Gross Margin % $4.885) $0 $0 ($2.174) -128.13% $7.380 Month 2 $7.117 $0 $12.412) $0 $0 ($31.914) -96.000 $125 $0 $4.225 $0 $3.800 $833 $0 $17.000 $9.025 $1.45% $9.000 $300 $0 Total Operating Expenses $17.325 77.900 $833 $0 $12.174) $0 $0 ($9.11% $6.84% $17.900 $833 $0 $12.447 26.534) -216.858 $27.088 Month 10 $38.800 $833 $0 $17.000 $125 $25.858 $17.900 $833 $0 $12.252) ($10.534) ($31.380 $0 $1.226 $1.000 $300 $0 $9.174) ($11.930 Month 9 $32.412) -69.919 $0 $0 $7.982 $0 $1.572 77.565 77.412) ($8.70% $14.870) -8.213) ($13.914) $0 $0 ($8.534) $0 $0 ($10.681 78.852 77.000 $300 $0 $9.000 $125 $0 $4.982 Month 4 $10.919 $1.961 $0 $4.800 $833 $0 $17.961 Month 8 $26.858 $17.700 Month 6 $14.Appendix Table: Profit and Loss Pro Forma Profit and Loss Month 1 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales $6.447 77.900 $833 $0 $12.933 Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred ($13.000 $300 $0 $9.631 16.930 $0 $5.95% $29.933 $27.000 $125 $0 $4.900 $833 $0 $12.286) $0 $0 ($11.858 $42.152 $7.800 $833 $0 $17.66% ($8.914) ($9.700 $0 $2.498 $12.133 Month 12 $54.03% ($11.885) ($6.313 $0 $2.000 $300 $0 $9.800 $833 $0 $17.631 $7.89% $35.213) $0 $0 ($12.048 78.52% ($2.146 $2.697 $10.800 $833 $0 $17.51% Page 4 .978 $5.933 $27.858 $17.549 $3.01% $7.900 $833 $0 $12.000 $125 $0 $4.74% ($10.642 $4.326 $8.

663 $36.146 $0 $0 $0 $0 $0 $0 $0 $14.952 $19.025 $0 $0 $0 $0 $0 $0 $0 $7.900 $478 $5.409 $9.642 $26.332 $38.900 $14.326 $0 $0 $0 $0 $0 $0 $0 $45.666 $0 $0 $0 $0 $0 $0 $0 $10.498 $54.102 $33.498 Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations $4.697 $0 $0 $0 $0 $0 $0 $0 $54.226 $8.152 $32. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received 0.247 $4.00% $0 $0 $0 $0 $0 $0 $0 $6.852 $4.978 $0 $0 $0 $0 $0 $0 $0 $32.549 $0 $0 $0 $0 $0 $0 $0 $22.146 $14.226 $0 $0 $0 $0 $0 $0 $0 $8.268 $35.025 $6.666 $10.900 $15.927 $9.184 $4.800 $28.127 $32.152 $38.800 $23.226 $7.257 $10.549 $22.347 $19.498 Additional Cash Received Sales Tax. VAT.800 $40.900 $14.902 $9.523 $4.800 $26.025 $7.326 $38.666 $8.642 $0 $0 $0 $0 $0 $0 $0 $26.257 $0 $0 $0 $0 $0 $0 $0 $12.257 $12.152 $0 $0 $0 $0 $0 $0 $0 $38.978 $32.697 $45.580 $50.978 $26.132 Additional Cash Spent Sales Tax.146 $12.697 $54.800 $25.900 $14.326 $45.642 $22.380 $9.509 $21.549 $14.623 $19.463 $9.068 $9.900 $16.800 $24.Appendix Table: Cash Flow Pro Forma Cash Flow Month 1 Cash Received Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash from Operations Cash Sales Subtotal Cash from Operations $6. VAT.284 $20.378 $4. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Page 5 .

336 ($6.534 $16.380 $0 $32.857) $708.184 $0 $21.021) $719.969 ($9.Appendix Dividends Subtotal Cash Spent $0 $5.365 $677.234 $661.949) $650.523 $0 $19.899 Page 6 .847 ($12.738) $656.132 Net Cash Flow Cash Balance $647 $731.299 $9.852 $0 $20.463 $0 $38.859) $684.791 ($1.259 $652.750) $649.247 $0 $19.378 $0 $19.902 $0 $35.038) $691.927 $0 $33.739 ($5.409 $0 $50.041 $3.068 $0 $36.595) $699.374 ($8.477 ($27.826 ($10.

800) ($82.381 $800.660 $649.000 ($68.242 $0 $29.826 $708.800) ($106.739 Month 7 $0 $0 $0 $650.261 $0 $23.847 Month 1 $0 $0 $0 $719.415 $23.261 $0 $0 $23.860 $800.826 $0 $719.791 $0 $650.612 $15.826 $705.336 $684.477 $644.721 $800.477 $0 $684.791 $627.530 $650.860 $0 $13.000 ($68.969 $0 $708.847 $719.987 $14.336 $0 $691.041 $624.701 $719.800) ($25.041 $652.000 ($68.325 $0 $0 $22.200 $731.739 $650.847 $717.000 ($68.899 $648.200 $731.791 Month 8 $0 $0 $0 $649.213) $717.443 $0 $0 $14.336 Month 5 $0 $0 $0 $684.000 ($68.701 $14.000 ($68.381 $0 $0 $24.526 $708.800) ($13.136 $0 $0 $15.443 $0 $14.860 $0 $0 $13.261 $800.299 $626.579 $652.739 $634.534 $634.041 $0 $649.000 ($68.125 $0 $0 $14.660 $25.299 $0 $652.381 $0 $24.800) ($96.Appendix Table: Balance Sheet Pro Forma Balance Sheet Month 1 Assets Starting Balances Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital $0 $0 $0 $731.242 $0 $0 $29.847 $0 $731.526 $14.785) $634.374 $691.210 $29.325 $800.667 $22.299 Month 10 $0 $0 $0 $661.721 $0 $0 $25.324 $0 $0 $27.579 $27.762 $800.800) $0 $731.543) $648.621) $626.721 $0 $25.499) $705.200 $39.588) $684.530 $24.136 $800.800) ($96.657 Page 7 .000 ($68.000) $676.667 $684.299 $661.000 ($68.242 $800.800) ($86.200 $691.000 ($68.374 Month 4 $0 $0 $0 $691.477 Month 6 $0 $0 $0 $656.800) ($36.990) $634.324 $800.969 $694.800) ($55.415 $656.000 ($68.200 $13.987 $731.791 $649.325 $0 $22.533) $644.899 Month 12 $731.826 Month 2 $0 $0 $0 $708.000 ($68.324 $0 $27.612 $699.534 $0 $661.200 $731.810 $800.136 $0 $15.041 Month 9 $0 $0 $0 $652.800) ($46.969 Month 3 $0 $0 $0 $699.336 $676.374 $684.534 $677.810 $0 $39.200 $0 $731.762 $0 $14.374 $0 $699.670) $627.443 $800.477 $656.739 $0 $656.800) ($103.899 $0 $677.657 $677.210 $661.540) $624.800) ($104.762 $0 $0 $14.125 $0 $14.674) $694.125 $800.899 Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $0 $0 $0 $0 $0 $800.810 $0 $0 $39.969 $699.000 ($68.534 Month 11 $0 $0 $0 $677.200 $0 $0 $0 $731.

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