[COMPANY NAME]Eatery * Ice Cream Parlor

Business Plan

Contact: [NAME][ADDRESS]

[CITY, STATE  ZIP] XXX-XXX-XXXX Phone

XXX-XXX-XXXX CellXXX-XXX-XXXX Fax

[EMAIL]

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

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

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

 

 

 

___________________ Signature

___________________Name (typed or printed)

___________________Date

 

 

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

Table of Contents

1.0 Executive Summary................................................................................................................1Chart: Highlights.................................................................................................2

1.1 Objectives........................................................................................................21.2 Mission.............................................................................................................21.3 Keys to Success...............................................................................................3

2.0 Company Summary.............................................................................................32.1 Company Ownership........................................................................................32.2 Start-up Summary............................................................................................4

Table: Start-up....................................................................................................4Chart: Start-up....................................................................................................5

3.0 Services...............................................................................................................64.0 Market Analysis Summary...................................................................................7

4.1 Market Segmentation.......................................................................................7Table: Market Analysis........................................................................................7Chart: Market Analysis (Pie)................................................................................8

4.2 Target Market Segment Strategy.....................................................................84.3 Service Business Analysis................................................................................8

4.3.1 Competition and Buying Patterns..............................................................95.0 Strategy and Implementation Summary...........................................................10

5.1 SWOT Analysis...............................................................................................105.1.1 Strengths.................................................................................................105.1.2 Weaknesses.............................................................................................105.1.3 Opportunities...........................................................................................105.1.4 Threats.....................................................................................................11

5.2 Competitive Edge...........................................................................................115.3 Marketing Strategy........................................................................................115.4 Sales Strategy................................................................................................12

5.4.1 Sales Forecast..........................................................................................12Table: Sales Forecast.....................................................................................12Chart: Sales by Year......................................................................................13

5.5 Milestones......................................................................................................14Table: Milestones..............................................................................................14

6.0 Management Summary.....................................................................................146.1 Personnel Plan................................................................................................14

Table: Personnel...............................................................................................147.0 Financial Plan....................................................................................................15

7.1 Start-up Funding............................................................................................15Table: Start-up Funding....................................................................................15

7.2 Important Assumptions..................................................................................167.3 Break-even Analysis.......................................................................................16

Table: Break-even Analysis...............................................................................16Chart: Break-even Analysis...............................................................................16

7.4 Projected Profit and Loss................................................................................17Table: Profit and Loss........................................................................................17Chart: Profit Monthly.........................................................................................18Chart: Profit Yearly............................................................................................18Chart: Gross Margin Monthly............................................................................19

Page 1

Table of Contents

Chart: Gross Margin Yearly...............................................................................197.5 Projected Cash Flow.......................................................................................20

Table: Cash Flow...............................................................................................20Chart: Cash.......................................................................................................21

7.6 Projected Balance Sheet................................................................................22Table: Balance Sheet........................................................................................22

7.7 Business Ratios..............................................................................................23Table: Ratios.....................................................................................................23Table: Ratios (continued)..................................................................................24

Table: Sales Forecast................................................................................................1Table: Personnel........................................................................................................2Table: Profit and Loss................................................................................................3Table: Cash Flow.......................................................................................................4Table: Balance Sheet.................................................................................................6

Page 2

[[COMPANY NAME]2010

1.0 Executive Summary

[COMPANY NAME] Contact: [NAME] [ADDRESS][CITY, STATE ZIP] (XXX)XXX-XXXX Phone (XXX)XXX-XXXX Cell (XXX)XXX-XXXX Fax [EMAIL]

[COMPANY NAME] was established in [DATE] and is located in [LOCATION].  [COMPANY NAME] is a family managed restaurant whose owner, [NAME], brings over 15 years of managerial experience in the Restaurant Industry.  [COMPANY NAME] serves homemade recipes including Breakfast, Lunch and Dinner and is open from 6:30 am until 9:00 pm seven days a week.  [COMPANY NAME] is a full-service family restaurant and ice-cream parlor resembling a country-style kitchen that is clean, family friendly and geared towards social and business gatherings.  The decor is a genuine Americana theme including white lace curtains, ivy stenciling, handmade patriotic hangings, an old wooden radio, a soda fountain, nostalgic pictures of Coca-Cola bottles and classic cars.  There is no similar dining experience within [COUNTY] County.  [COMPANY NAME] is favorably located off a highly traveled intersection [ADDRESS] just minutes from a 232 acre Park and Recreation Complex.  The restaurant contains approximately 1,200 square feet of commercial space with 60 parking spaces available on site. The affordable menu features classic hometown recipes from burgers and soups to milkshakes and banana splits.  Seating capacity in the restaurant is 65, including 12 barstool seats at a counter.  There is a large outdoor deck covered by a canopy, which can accommodate an additional 25 customers.  The restaurant hosts community events including, after-school functions, sports team functions, outdoor movies, and a weekly Sunday old-fashioned classic car show.  The restaurant prides itself on customer service and community involvement. Clearly the competitive edge of [COMPANY NAME] is its reputation for quality food and affordability.  The homemade recipes are fresh, the portions are large and the desserts are delicious.  In addition, the clean atmosphere creates an inviting and comfortable meeting place for individuals and groups, which is conveniently located with ease of access. [COMPANY NAME] is seeking grant funding in the amount of $500,000. The funding will be used to cover building expansions and updates, new equipment, and to hire additional staff.  Based on the detailed financial projections, [COMPANY NAME] future sales for Year 1, Year 2 and Year 3 are expected to be $167,651, $250,000 and $300,000. 

[NAME] [XXX-XXX-XXXX] | Executive Summary 1

[[COMPANY NAME]2010

Chart: Highlights

1.1 Objectives

[COMPANY NAME] has three main objectives:   1.  To be rated one of the top sit-down dining restaurants in [COUNTY], [STATE].   2.  To support the local youth in [COUNTY], [STATE].   3.  To accomplish annual gross sales of $160,000 in 2010; $250,000 in 2011; and $300,000 in 2012.

1.2 Mission

The mission of [COMPANY NAME] is to provide an inexpensive eatery for families on the go throughout the county of [COUNTY], [STATE].  In turn, the Restaurant's mission is also to give back to the community by creating employment opportunities for high-school students, college students and stay-at-home mothers; subsidizing programs and sports activities that are in jeopardy of being deleted from high-school curriculum; and contribute to local organizations like the Glee Club and others that are in need of assistance.

[NAME] [XXX-XXX-XXXX] | Executive Summary 2

[[COMPANY NAME]2010

1.3 Keys to Success

The keys to success of the Restaurant are as follows:   1.  Good hometown cooking 2.  Affordable prices 3.  Daily community activities 4.  Commitment towards youth and school activities

2.0 Company Summary

[COMPANY NAME] Contact: [NAME] [ADDRESS][CITY, STATE ZIP] (XXX)XXX-XXXX Phone (XXX)XXX-XXXX Cell (XXX)XXX-XXXX Fax [EMAIL]

[COMPANY NAME] was established in April 2010 and is located in the City of [CITY], [STATE] at the [PLACE].  [COMPANY NAME] is a family managed restaurant whose owner, [NAME], brings over 15 years of managerial experience in the Restaurant Industry.  [COMPANY NAME] serves homemade recipes including Breakfast, Lunch and Dinner and is open from 6:30 am until 9:00 pm seven days a week.  [COMPANY NAME] is a full-service family restaurant and ice-cream parlor resembling a country-style kitchen that is clean, family friendly and geared towards social and business gatherings.  The decor is a genuine Americana theme including white lace curtains, ivy stenciling, handmade patriotic hangings, an old wooden radio, a soda fountain, nostalgic pictures of Coca-Cola bottles and classic cars.  There is no similar dining experience within [COUNTY].  [COMPANY NAME] is favorably located off a highly traveled intersection just minutes from a large Park and Recreation Complex.  The restaurant contains approximately 1,200 square feet of commercial space with 60 parking spaces available on site. The affordable menu features classic hometown recipes from burgers and soups to milkshakes and banana splits.  Seating capacity in the restaurant is 65, including 12 barstool seats at a counter.  There is a large outdoor deck covered by a canopy which can accommodate an additional 25.  The restaurant hosts community events including, after-school functions, sports team functions, outdoor movies, and a weekly Sunday old-fashioned classic car show.  The restaurant prides itself on customer service and community involvement.

2.1 Company Ownership

[COMPANY NAME] is a Limited Liability Company solely owned by [NAME], as [COMPANY NAME], LLC.  [NAME] brings over 15 years of managerial experience in the Restaurant Industry.

[NAME] [XXX-XXX-XXXX] | 2.0 Company Summary 3

[[COMPANY NAME]2010

2.2 Start-up Summary

Total start-up expense comes to $7,750.  Start-up assets required include $62,200 including $12,000 in initial cash to handle the operational expenses.  The following table and chart show the start-up costs for [COMPANY NAME].

Table: Start-up

Start-up

Requirements

Start-up ExpensesLegal $2,500 Stationery etc. $500 Insurance $650 Rent $2,100 Other $2,000 Total Start-up Expenses $7,750

Start-up AssetsCash Required $12,000 Start-up Inventory $6,000 Other Current Assets $4,200 Long-term Assets $40,000 Total Assets $62,200

Total Requirements $69,950

[NAME] [XXX-XXX-XXXX] | 2.0 Company Summary 4

[[COMPANY NAME]2010

Chart: Start-up

[NAME] [XXX-XXX-XXXX] | 2.0 Company Summary 5

[[COMPANY NAME]2010

3.0 Services

[COMPANY NAME] affordable homemade menu offers Breakfast, Lunch, Dinner and Dessert including:

Breakfast Sandwiches Egg Platters Omelets Homemade Flapjacks/ French Toast Burgers Sandwiches Platters Healthy Choice Sides and Snacks Kids Menu Ice Cream Sundaes and Banana Splits

For a first-time visit, [NAME] recommends these dishes: 

Fresh-made chicken cutlets with corn, fresh-peeled mashed potatoes and applesauce Spaghetti and meatballs Grilled Salisbury steak Grilled Pork Chops Pulled-pork Sandwiches Meat loaf with mashed potatoes and gravy, string beans and a side salad 

All prices are below $10.00.  Recent specials include:

Four sliders with fries and soda $5.00 Pulled pork with fries $6.00 Sausage, peppers, onions on sub roll with fries $6.00 Sliced beef with fries and gravy on hard roll  $6.00 Fish and chips with slaw $6.00 Chicken cutlet on hard roll with lettuce, tomato, mayo, side of slaw or potato salad $5.25 Stuffed cabbage with fries $7.00 Hot roast beef with fries and gravy $6.00

Eight kids' menu specials priced from $3.75 to $5.50 are each given kid-friendly titles:

Horseback Riding (mini-Italian sub with fries) Miniature Golf (cheeseburger with fries) Movies (pizza burger with fries) Basketball (half-tuna sandwich with fries)

[COMPANY NAME] vegetable ingredients are all purchased fresh and locally from [COMPANY].  The soft and hard serve ice cream is from [COMPANY].   [COMPANY NAME] offers a meeting place for family, youth, business and community events.  The restaurant features a large outdoor deck and is located conveniently close to a [COMPANY].  The restaurant is focused on community involvement, especially with the youth.  In the near future, [COMPANY NAME] will be expanding its facilities to include a larger deck and new canopies. 

[NAME] [XXX-XXX-XXXX] | 3.0 Services 6

[[COMPANY NAME]2010

4.0 Market Analysis Summary

The U.S. restaurant industry, which consists of fast food, casual dining and upscale chains, is facing its toughest stretch in three decades. This is due to declining guest traffic as well as a decline in sales. To survive, restaurant operators will need to balance incentives and discounts with added value and brand enhancement.   [COMPANY NAME] business plan focuses solely on the restaurant and dining industry.  The Company has the services necessary to flourish within this industry.  The restaurant will market its services to families seeking a dining experience away from daily routine, businesses, and those looking for a place to celebrate a special event including birthdays, fund raisers, organizations in need of a meeting place, etc.  Forms of marketing include newspaper ads, coupon specials in direct mail circulations, flyers, community involvement and word of mouth.

4.1 Market Segmentation

[CITY] is one of [STATE]’s most livable communities offering a wonderful quality of life for residents young and old.  While [CITY], [STATE] and the immediate area is the primary market, [COMPANY NAME] market segment comes from the entire county of [COUNTY], [STATE] seeking a unique and quality dining experience.  The information contained in the market analysis table displays the details of the County's residential and business populations.

Table: Market Analysis

Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers

Growth CAGR

Residential 0.50% 491,000 493,455 495,922 498,402 500,894 0.50% Businesses 0.07% 304,000 304,213 304,426 304,639 304,852 0.07% Total 0.34% 795,000 797,668 800,348 803,041 805,746 0.34%

[NAME] [XXX-XXX-XXXX] | 4.0 Market Analysis Summary 7

[[COMPANY NAME]2010

Chart: Market Analysis (Pie)

4.2 Target Market Segment Strategy

The mission of [COMPANY NAME] is to provide an inexpensive eatery for families on the go throughout the county of [COUNTY], [STATE].  In turn, the Restaurant's mission is also to give back to the community by creating employment opportunities for high-school students, college students and stay-at-home mothers; subsidizing programs and sports activities that are in jeopardy of being deleted from high-school curriculum; and contribute to local organizations like the Glee Club and others that are in need of assistance.

4.3 Service Business Analysis

With the economic downturn easing, the restaurant industry is expected to show gradual improvement in 2010, according to the National Restaurant Association's 2010 Restaurant Industry Forecast.  Industry sales are projected to reach $580 billion this year, a 2.5 percent increase in current dollars over 2009 sales.  When adjusted for inflation, 2010 sales will be essentially flat, which is an improvement over the 1.2 percent and 2.9 percent negative growth in real sales that the industry experienced in 2008 and 2009, respectively.  Restaurants will continue to be strong contributors to the recovery of the nation's economy, with industry sales representing 4 percent of the U.S. gross domestic product and employees comprising 9 percent of the U.S. workforce.  Despite job losses in 2009, the restaurant industry still outperformed the national economy.  Job growth is expected to resume in 2010, and the industry is projected to add 1.3 million career and employment opportunities by 2020.

Continuing the trend from last year, the quick service restaurant segment is expected to fare slightly better than the full-service segment as diners focus on value and specials.  Quick service restaurants are projected to post sales of $164.8 billion in 2010, a gain of 3.0 percent over 2009.  Sales at full-service restaurants are projected to reach $184.2 billion in 2010, an increase of 1.2 percent in current dollars over 2009.  The eating-and-drinking place segment expected to show the strongest growth in 2010 is social caterers, whose sales are expected to increase by 4.5

[NAME] [XXX-XXX-XXXX] | 4.0 Market Analysis Summary 8

[[COMPANY NAME]2010

percent.  Among all commercial industry segments, the strongest growth is expected in retail-host restaurants (including those located in gas/service stations and drug and grocery stores) with a 4.9 percent sales increase.

The U.S. restaurant industry, which consists of fast food, casual dining and upscale chains, is facing its toughest stretch in three decades.  This is due to declining guest traffic as well as a decline in sales.  To survive, restaurant operators will need to balance incentives and discounts with added value and brand enhancement.

[COMPANY NAME] provides a much needed family oriented restaurant with quality food and beverages at reasonable prices.  As simple as it may be, [COMPANY NAME] method of serving delicious food while executing exceptional customer service has an important effect on the bottom line:  People want to give their business to those who appreciate it.  Community involvement, skillful use of advertising, coupons, and quality meals will bring the business the Company desires.

4.3.1 Competition and Buying Patterns

According to the National Restaurant Association's 2010 Restaurant Industry Forecast, consumers will continue to seek value, convenience and expanded menu options in 2010 – and restaurants will deliver.  Consumers forced to cut back on spending say they aren't dining out as often as they would like, and this pent-up demand will turn into restaurant traffic as economic recovery continues.  The Association predicts that growth opportunities can be found in delivery and other off-premise options, cooking classes and other interactive guest activities, and using new media to reach new and returning guests. Social media will become more critical to restaurant marketing this year.  A good plan and solid understanding of those tools – including Facebook, Twitter, Yelp, and YouTube – can help operators mitigate the economic environment.  "Word of mouth" has moved online, and more consumers use the Web to browse menus, make reservations, and get recommendations from other diners.  Restaurants' use of e-mail, Internet and cell phone text messages in marketing efforts is also a growing trend.

Restaurant operators continue to step up their efforts to go green, investing in energy-efficient equipment and fixtures, using recyclable materials and reducing their water use.  Green initiatives not only help manage costs, they can also drive traffic.  Four of 10 full-service and 31 percent of quick service operators plan to devote more resources to green initiatives in 2010 than they did in 2009, and 4 in 10 consumers say they choose restaurants based on their conservation practices. Locally sourced food, sustainability, and health and nutrition will be the top trends on restaurant menus this year.  Seventy percent of consumers say they are more likely to visit restaurants that offer locally produced food, and nearly three out of four say they are trying to eat healthier in restaurants now than they did two years ago.   The top 10 menu trends in the Association's "What's Hot in 2010" survey of more than 1,800 professional chefs (American Culinary Federation members) are: locally grown produce, locally sourced meat/seafood, sustainability as a culinary theme, bite-size desserts, locally produced beer/wine, healthy kids' meals, half-potions, farm/estate-branded ingredients, gluten-free/allergy-conscious items, and sustainable seafood.  Ethnic cuisine and flavors are also a hot menu trend this year, including regional ethnic cuisine and fusion cuisine. Consumers are interested in trying French, Spanish, Japanese (other than sushi), Thai, Cajun/Creole, soul food and sushi.

 

[NAME] [XXX-XXX-XXXX] | 4.0 Market Analysis Summary 9

[[COMPANY NAME]2010

[COMPANY NAME] primary local competitors are within a 2-mile radius that consists of two Pizzerias, an upscale dining restaurant, two convenience stores and a sandwich shop.  There is no similar dining experience within [COUNTY].  [COMPANY NAME] strives to establish strong communication and relationships with its customers to ensure they are satisfied with the services and facility.  If customers are happy they will recommend the restaurant to others in the area and oftentimes word of mouth marketing provides more business than advertising.

5.0 Strategy and Implementation Summary

[COMPANY NAME] has clearly defined the target market and has differentiated the Company by offering an inviting atmosphere and quality food to fulfill its customers' needs.  Reasonable sales targets have been established with an implementation plan designed to ensure the goals set forth below are achieved.

5.1 SWOT Analysis

The SWOT analysis aids in displaying the internal strengths and weaknesses that [COMPANY NAME] must address.  It allows management to examine the opportunities presented to [COMPANY NAME] as well as potential threats.  The company's strengths will help it to succeed. These strengths include: staff, management, affordability and quality food.  Strengths are valuable, but it is also important to realize the weaknesses [COMPANY NAME] must address.  These weaknesses include: size of the kitchen and building efficiency.

The Company's strengths will help it capitalize on emerging opportunities. These opportunities include, but are not limited to, growth in blue-collar workers, strong reputation, local newspaper feature and highway traffic.  Threats that [COMPANY NAME] should be aware of include, competition and negative press.

5.1.1 Strengths

1.  Staff: high-school and college students employed at the restaurant draws crowds of family and friends that is favorable to parents and community youth leaders 2.  Management:  over 15 years of managerial experience in the restaurant industry; well-known and liked bus driver for the local high school 3.  Affordability:  food and beverage menu is priced reasonably to attract families 4.  Quality food:  all fresh ingredients including fresh chopped hamburger and vegetables, featuring Jersey tomatoes; healthy options are available; ice-cream, milk-shakes and sundaes are very popular  

5.1.2 Weaknesses

1.  Size of kitchen:  the kitchen area needs to be enlarged to accommodate an additional grill and dish washer 2.  Building efficiency:  the building's air conditioner and heating units need to be replaced along with the new windows  

[NAME] [XXX-XXX-XXXX] | 5.0 Strategy and Implementation Summary 10

[[COMPANY NAME]2010

5.1.3 Opportunities

1.  Blue collar workers:  although the restaurant is located in a white collar area, to-go orders are on the rise from local construction workers as construction in the area expands 2.  Reputation:  the owner, [NAME], has built a customer following from his restaurant experience including dinners and specials, dated back 10 years; this is expected to continue to spread with [COMPANY NAME] 3.  Newspaper feature: the restaurant has been recently featured in the [CITY], a local circulation 4.  Highway traffic:  traveling customers are expected to stop at the restaurant as they are heading west along [PLACE] and are often backed up in traffic from the highway expansion road work 

5.1.4 Threats

1.  Competition:  the upscale restaurants offer a fine-dining experience  2.  Negative press:  possibly from unsatisfied customers

5.2 Competitive Edge

Clearly the competitive edge of [COMPANY NAME] is its reputation for quality food and affordability.  The homemade recipes are fresh, the portions are large and the desserts are delicious.  In addition, the clean atmosphere creates an inviting and comfortable meeting place for individuals and groups that is conveniently located with ease of access.

5.3 Marketing Strategy

The marketing strategy of [COMPANY NAME] includes promotional efforts through the following means:   Coupons circulated in envelopes Youthful staff Newspaper Ads Flyers Strategic alliance with [COMPANY]

[NAME] [XXX-XXX-XXXX] | 5.0 Strategy and Implementation Summary 11

[[COMPANY NAME]2010

5.4 Sales Strategy

The owner of [COMPANY NAME] has excellent customer relation skills, work ethic, as well as an in-depth understanding of the restaurant and dining industry; these skills are useful in making customers comfortable in trusting [COMPANY NAME] to satisfy their dining and event needs.  Keeping customers satisfied and community involvement is an implicit part of building a relationship that will encourage high customer referrals and repeat business.

5.4.1 Sales Forecast

The Monthly Sales Forecasted for the current year average $11,177 in Food Sales and $2,794 in Beverage Sales.  Forecasted Sales in Year 1 is a total of $167,651 with a 49% growth rate for Year 2 and a 20% growth rate for Year 3.

Table: Sales Forecast

Sales Forecast Year 1 Year 2 Year 3

SalesFood $134,121 $200,000 $240,000 Beverage $33,530 $50,000 $60,000 Total Sales $167,651 $250,000 $300,000

Direct Cost of Sales Year 1 Year 2 Year 3Food $26,824 $40,000 $48,000 Beverage $6,706 $10,000 $12,000 Subtotal Direct Cost of Sales $33,530 $50,000 $60,000

[NAME] [XXX-XXX-XXXX] | 5.0 Strategy and Implementation Summary 12

[[COMPANY NAME]2010

Chart: Sales Monthly

Chart: Sales by Year

[NAME] [XXX-XXX-XXXX] | 5.0 Strategy and Implementation Summary 13

[[COMPANY NAME]2010

5.5 Milestones

The management team has established some basic milestones to keep the business plan priorities in place.  Responsibility for implementation falls on the shoulders of [NAME].  Set forth below are the mail milestones of this plan.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager DepartmentGrant Funding 8/1/2010 2/1/2011 $6,400 Joseph ManagementBuilding Additions 2/1/2011 4/1/2011 $40,000 Joseph ManagementEquipment Additions

2/1/2011 4/1/2011 $55,000 Joseph Management

Hire Additional Staff 2/1/2011 12/31/2012 $36,000 Joseph ManagementTotals $137,400

6.0 Management Summary

[INSERT MANAGEMENT SUMMARY] 

6.1 Personnel Plan

The staff currently consists of one full-time cook and five part-time and full-time waitresses.  By the end of Year 3, management expects to staff up to two cooks and seven part-time and full-time wait staff.  The detailed monthly personnel plan for the first year is included in the appendix.  The annual personnel estimates are included here.

Table: Personnel

Personnel Plan Year 1 Year 2 Year 3

Management $0 $26,000 $26,780 Cooks $18,000 $36,000 $37,080 Waiting Staff $54,980 $56,629 $72,629 Total People 7 8 9

Total Payroll $72,980 $118,629 $136,489

[NAME] [XXX-XXX-XXXX] | 14

[[COMPANY NAME]2010

7.0 Financial Plan

[COMPANY NAME] is expected to grow an average of 35% a year with the success of the $500,000 Grant expected in Year 1.  The company plans to use the funds to cover a $40,000 building expansion and updates, $55,000 for new equipment, and $36,000 to hire additional staff.

7.1 Start-up Funding

The start-up costs of [COMPANY NAME] will consist primarily of inventory and equipment.  The Company is seeking a $500,000 grant to cover the costs.

Table: Start-up Funding

Start-up FundingStart-up Expenses to Fund $7,750 Start-up Assets to Fund $62,200 Total Funding Required $69,950

Assets Non-cash Assets from Start-up $50,200 Cash Requirements from Start-up $12,000 Additional Cash Raised $0 Cash Balance on Starting Date $12,000 Total Assets $62,200

Liabilities and Capital

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

Capital

Planned InvestmentOwner $0 Investor $0 Additional Investment Requirement $69,950 Total Planned Investment $69,950

Loss at Start-up (Start-up Expenses) ($7,750)Total Capital $62,200

Total Capital and Liabilities $62,200

Total Funding $69,950

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 15

[[COMPANY NAME]2010

7.2 Important Assumptions

The assumptions used in this plan are that the Average Percent Variable Cost is 20% and the Estimated Monthly Fixed Cost is expected to be $13,039.

7.3 Break-even Analysis

The Monthly Revenue needed to Break-even is $16,299.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $16,299

Assumptions:Average Percent Variable Cost 20% Estimated Monthly Fixed Cost $13,039

Chart: Break-even Analysis

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 16

[[COMPANY NAME]2010

7.4 Projected Profit and Loss

[COMPANY NAME] expected net profit for Year 1, Year 2 and Year 3 is -$22,352, -$15,436 and $483, respectively.  Sales are expected to be $167,651, $250,000 and $300,000, for Year 1, Year 2 and Year 3, respectively.  The net profit as a percentage of sales is -13.33%, -6.17% and 0.16%, for Year 1, Year 2 and Year 3, respectively.  Items that fall under "Other" expenses are Phone/ Fax, Repair/Maintenance and Auto/Truck Expense.

Table: Profit and Loss

Pro Forma Profit and Loss Year 1 Year 2 Year 3

Sales $167,651 $250,000 $300,000 Direct Cost of Sales $33,530 $50,000 $60,000 Other Costs of Sales $0 $0 $0 Total Cost of Sales $33,530 $50,000 $60,000

Gross Margin $134,121 $200,000 $240,000 Gross Margin % 80.00% 80.00% 80.00%

ExpensesPayroll $72,980 $118,629 $136,489 Marketing/Promotion $2,400 $3,600 $4,800 Depreciation $1,050 $4,243 $4,243 Rent $23,100 $23,793 $24,507 Utilities $15,000 $15,450 $15,914 Insurance $3,600 $3,708 $3,819 Payroll Taxes $10,947 $17,794 $20,473 Other $27,396 $28,218 $29,064

Total Operating Expenses $156,473 $215,436 $239,309

Profit Before Interest and Taxes ($22,352) ($15,436) $691 EBITDA ($21,302) ($11,193) $4,934 Interest Expense $0 $0 $0 Taxes Incurred $0 $0 $207

Net Profit ($22,352) ($15,436) $483 Net Profit/Sales -13.33% -6.17% 0.16%

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 17

[[COMPANY NAME]2010

Chart: Profit Monthly

Chart: Profit Yearly

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 18

[[COMPANY NAME]2010

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 19

[[COMPANY NAME]2010

7.5 Projected Cash Flow

As portrayed in the Monthly Cash Flow chart, [BUSINESS NAME] net cash flow for Year 1, Year 2 and Year 3 is forecast to be $398,025, -$11,176 and $6,008, respectively.  The Cash Balance is projected at $410,025, $398,848 and $404,857 for Year 1, Year 2 and Year 3, respectively.

Table: Cash Flow

Pro Forma Cash Flow Year 1 Year 2 Year 3

Cash Received

Cash from OperationsCash Sales $167,651 $250,000 $300,000 Subtotal Cash from Operations $167,651 $250,000 $300,000

Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $500,000 $0 $0 Subtotal Cash Received $667,651 $250,000 $300,000

Expenditures Year 1 Year 2 Year 3

Expenditures from OperationsCash Spending $72,980 $118,629 $136,489 Bill Payments $101,646 $142,547 $157,503 Subtotal Spent on Operations $174,626 $261,176 $293,992

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $95,000 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $269,626 $261,176 $293,992

Net Cash Flow $398,025 ($11,176) $6,008 Cash Balance $410,025 $398,848 $404,857

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 20

[[COMPANY NAME]2010

Chart: Cash

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 21

[[COMPANY NAME]2010

7.6 Projected Balance Sheet

[COMPANY NAME] Net Worth for Year 1, Year 2 and Year 3 is forecasted to be $539,848, $524,412 and $524,896, respectively. The net worth results are based upon receipt of $500,000 in grant funds.

Table: Balance Sheet

Pro Forma Balance Sheet Year 1 Year 2 Year 3

Assets

Current AssetsCash $410,025 $398,848 $404,857 Inventory $1,554 $3,537 $3,416 Other Current Assets $4,200 $4,200 $4,200 Total Current Assets $415,779 $406,586 $412,473

Long-term AssetsLong-term Assets $135,000 $135,000 $135,000 Accumulated Depreciation $1,050 $5,293 $9,536 Total Long-term Assets $133,950 $129,707 $125,464 Total Assets $549,729 $536,293 $537,937

Liabilities and Capital Year 1 Year 2 Year 3

Current LiabilitiesAccounts Payable $9,881 $11,881 $13,041 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $9,881 $11,881 $13,041

Long-term Liabilities $0 $0 $0 Total Liabilities $9,881 $11,881 $13,041

Paid-in Capital $569,950 $569,950 $569,950 Retained Earnings ($7,750) ($30,102) ($45,538)Earnings ($22,352) ($15,436) $483 Total Capital $539,848 $524,412 $524,896 Total Liabilities and Capital $549,729 $536,293 $537,937

Net Worth $539,848 $524,412 $524,896

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 22

[[COMPANY NAME]2010

7.7 Business Ratios

The industry used for comparison to [COMPANY NAME] is "Full-Service Restaurants".  The 49% sales growth in the second year from the first year shown is due to the rapid expected growth business from marketing efforts and referrals from customers.  Third year growth is still expected to be high and is forecast at 20%.

Table: Ratios

Ratio Analysis Year 1 Year 2 Year 3 Industry

ProfileSales Growth n.a. 49.12% 20.00% 1.65%

Percent of Total AssetsInventory 0.28% 0.66% 0.64% 6.34% Other Current Assets 0.76% 0.78% 0.78% 43.25% Total Current Assets 75.63% 75.81% 76.68% 53.12% Long-term Assets 24.37% 24.19% 23.32% 46.88% Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 1.80% 2.22% 2.42% 25.40% Long-term Liabilities 0.00% 0.00% 0.00% 73.91% Total Liabilities 1.80% 2.22% 2.42% 99.31% Net Worth 98.20% 97.78% 97.58% 0.69%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00% Gross Margin 80.00% 80.00% 80.00% 58.06% Selling, General & Administrative Expenses

93.33% 86.17% 79.84% 23.02%

Advertising Expenses 1.43% 1.44% 1.60% 1.74% Profit Before Interest and Taxes -13.33% -6.17% 0.23% 6.52%

Main RatiosCurrent 42.08 34.22 31.63 1.25 Quick 41.92 33.93 31.37 1.00 Total Debt to Total Assets 1.80% 2.22% 2.42% 99.31% Pre-tax Return on Net Worth -4.14% -2.94% 0.13% 4325.19% Pre-tax Return on Assets -4.07% -2.88% 0.13% 29.65%

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 23

[[COMPANY NAME]2010

Table: Ratios (continued)

Additional Ratios Year 1 Year 2 Year 3Net Profit Margin -13.33% -6.17% 0.16% n.aReturn on Equity -4.14% -2.94% 0.09% n.a

Activity RatiosInventory Turnover 21.08 19.64 17.26 n.aAccounts Payable Turnover 11.29 12.17 12.17 n.aPayment Days 27 27 29 n.aTotal Asset Turnover 0.30 0.47 0.56 n.a

Debt RatiosDebt to Net Worth 0.02 0.02 0.02 n.aCurrent Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity RatiosNet Working Capital $405,898 $394,705 $399,432 n.aInterest Coverage 0.00 0.00 0.00 n.a

Additional RatiosAssets to Sales 3.28 2.15 1.79 n.aCurrent Debt/Total Assets 2% 2% 2% n.aAcid Test 41.92 33.93 31.37 n.aSales/Net Worth 0.31 0.48 0.57 n.aDividend Payout 0.00 0.00 0.00 n.a

[NAME] [XXX-XXX-XXXX] | 7.0 Financial Plan 24

Appendix

Table: Sales Forecast

Sales Forecast

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

SalesFood $10,000 $10,200 $10,404 $10,612 $10,824 $11,041 $11,262 $11,487 $11,717 $11,951 $12,190 $12,434 Beverage $2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 $3,108 Total Sales $12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 $15,542

Direct Cost of Sales

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Food $2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 Beverage $500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609 $622 Subtotal Direct Cost of Sales

$2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 $3,108

Page 1

Appendix

Table: Personnel

Personnel Plan Month

1 Month

2 Month

3 Month

4 Month

5 Month

6 Month

7 Month

8 Month

9 Month

10 Month

11 Month

12Management $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cooks $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Waiting Staff $4,375 $4,375 $4,419 $4,463 $4,508 $4,553 $4,598 $4,644 $4,691 $4,737 $4,785 $4,833 Total People 8 7 7 7 7 7 7 7 7 7 7 7

Total Payroll $5,875 $5,875 $5,919 $5,963 $6,008 $6,053 $6,098 $6,144 $6,191 $6,237 $6,285 $6,333

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Appendix

Table: Profit and Loss

Pro Forma Profit and Loss

Month 1

Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

Month 11

Sales $12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 Direct Cost of Sales $2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cost of Sales $2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047

Gross Margin $10,000 $10,200 $10,404 $10,612 $10,824 $11,041 $11,262 $11,487 $11,717 $11,951 $12,190 Gross Margin % 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00%

ExpensesPayroll $5,875 $5,875 $5,919 $5,963 $6,008 $6,053 $6,098 $6,144 $6,191 $6,237 $6,285 Marketing/Promotion $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $350 $350 Rent $0 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 Utilities $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 Insurance $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 Payroll Taxes 15% $881 $881 $888 $894 $901 $908 $915 $922 $929 $936 $943 Other $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283 $2,283

Total Operating Expenses

$10,789 $12,889 $12,940 $12,990 $13,042 $13,094 $13,146 $13,199 $13,252 $13,656 $13,711

Profit Before Interest and Taxes

($789) ($2,689) ($2,536) ($2,378) ($2,217) ($2,053) ($1,884) ($1,712) ($1,536) ($1,705) ($1,521)

EBITDA ($789) ($2,689) ($2,536) ($2,378) ($2,217) ($2,053) ($1,884) ($1,712) ($1,536) ($1,355) ($1,171) Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($789) ($2,689) ($2,536) ($2,378) ($2,217) ($2,053) ($1,884) ($1,712) ($1,536) ($1,705) ($1,521)Net Profit/Sales -6.31% -21.09% -19.50% -17.93% -16.39% -14.87% -13.39% -11.92% -10.48% -11.41% -9.98%

Page 3

Appendix

Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9 Month 10

Month 11

Month 12

Cash Received

Cash from OperationsCash Sales $12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 $15,542 Subtotal Cash from Operations

$12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 $15,542

Additional Cash ReceivedSales Tax, VAT, HST/GST Received

0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free)

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Page 4

Appendix

New Investment Received

$0 $0 $0 $0 $0 $0 $0 $0 $500,000 $0 $0 $0

Subtotal Cash Received

$12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $514,646 $14,939 $15,237 $15,542

Page 5

Appendix

Table: Cash Flow (continued)

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 OperationsCash Spending

$5,875 $5,875 $5,919 $5,963 $6,008 $6,053 $6,098 $6,144 $6,191 $6,237 $6,285 $6,333

Bill Payments

$164 $4,998 $7,486 $9,577 $9,708 $9,769 $9,830 $9,893 $9,957 $10,022 $10,088 $10,155

Subtotal Spent on Operations

$6,039 $10,873 $13,405 $15,540 $15,716 $15,821 $15,928 $16,037 $16,147 $16,259 $16,373 $16,488

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $95,000 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Page 6

Appendix

Subtotal Cash Spent

$6,039 $10,873 $13,405 $15,540 $15,716 $15,821 $15,928 $16,037 $16,147 $111,259 $16,373 $16,488

Net Cash Flow

$6,461 $1,877 ($400) ($2,275) ($2,186) ($2,020) ($1,851) ($1,678) $498,498 ($96,321) ($1,135) ($946)

Cash Balance

$18,461

$20,339 $19,939 $17,664 $15,478 $13,458 $11,607 $9,928 $508,427 $412,106 $410,971 $410,025

Page 7

Appendix

Table: Balance Sheet

Pro Forma Balance Sheet

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9 Month 10

Month 11

Month

Assets Starting Balances

Current AssetsCash $12,000 $18,461 $20,339 $19,939 $17,664 $15,478 $13,458 $11,607 $9,928 $508,427 $412,106 $410,971 $410,025 Inventory $6,000 $3,500 $1,350 $1,301 $1,327 $1,353 $1,380 $1,408 $1,436 $1,465 $1,494 $1,524 $1,554 Other Current Assets

$4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200

Total Current Assets

$22,200 $26,161 $25,889 $25,439 $23,191 $21,031 $19,038 $17,214 $15,564 $514,091 $417,800 $416,695 $415,779

Long-term AssetsLong-term Assets

$40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $135,000 $135,000 $135,000

Accumulated Depreciation

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $350 $700 $1,050

Total Long-term Assets

$40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $134,650 $134,300 $133,950

Total Assets $62,200 $66,161 $65,889 $65,439 $63,191 $61,031 $59,038 $57,214 $55,564 $554,091 $552,450 $550,995 $549,729

Page 8

Appendix

Table: Balance Sheet (continued)

Liabilities and Capital

Month 1

Month 2

Month 3

Month 4

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

Month 11

Current LiabilitiesAccounts Payable

$0 $4,750 $7,167 $9,253 $9,383 $9,441 $9,501 $9,561 $9,623 $9,685 $9,749 $9,815

Current Borrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Liabilities

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Current Liabilities

$0 $4,750 $7,167 $9,253 $9,383 $9,441 $9,501 $9,561 $9,623 $9,685 $9,749 $9,815

Long-term Liabilities

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabilities

$0 $4,750 $7,167 $9,253 $9,383 $9,441 $9,501 $9,561 $9,623 $9,685 $9,749 $9,815

Paid-in Capital

$69,950 $69,950 $69,950 $69,950 $69,950 $69,950 $69,950 $69,950 $69,950 $569,950 $569,950 $569,950

Retained Earnings

($7,750) ($7,750) ($7,750) ($7,750) ($7,750) ($7,750) ($7,750) ($7,750) ($7,750) ($7,750) ($7,750) ($7,750)

Earnings $0 ($789) ($3,479) ($6,014) ($8,392) ($10,610) ($12,662) ($14,547) ($16,259) ($17,794) ($19,499) ($21,020)Total Capital

$62,200 $61,411 $58,722 $56,186 $53,808 $51,590 $49,538 $47,653 $45,941 $544,406 $542,701 $541,180

Total Liabilities and Capital

$62,200 $66,161 $65,889 $65,439 $63,191 $61,031 $59,038 $57,214 $55,564 $554,091 $552,450 $550,995

Net Worth $62,200 $61,411 $58,722 $56,186 $53,808 $51,590 $49,538 $47,653 $45,941 $544,406 $542,701 $541,180

Page 9