Singh Sandwich Restaurant Business Plan

Plan Outline

Executive Summary o Mission o Keys to Success o Objectives Company Summary Services Market Analysis Summary Strategy and Implementation Summary Management Summary Financial Plan

Executive Summary
Singh sandwich is a new restaurant that serves fresh and healthy pita sandwiches. Strategically located in downtown Mumbai, India, Singh will quickly become the premier lunch destination downtown, serving locals and students. Singh sandwich will attract 35% new customers a year after the second year and will reach profitability by the end of year two. Keys to Success Singh sandwich has identified three keys that will be instrumental in its success. The first is the design and implementation of strict financial controls, which will be important, since the restaurant industry is quite competitive. The second requirement is that it offers high-quality fresh and healthy food to clearly stand out from the competition. The last key is the need to ensure proper visibility. Singh sandwich must have a effective, targeted marketing campaign to support the opening of the store in order to ensure enough business. Food Singh sandwich will offer the community an exciting menu of pita sandwiches, salads, deserts and coffee beverages. Pita bread, Middle Eastern flat bread, is used as a healthy, tasty foundation for a variety of sandwiches. The customers will have the choice of Middle Eastern filling such as Hummus and Tabouli or more traditional American filling. Management Singh sandwich will be lead by vijay singh, a veteran of the restaurant industry. Steve worked for his parents at the family's restaurant for several years before moving on to work in one of mumbai's finest restaurants while in college, as well as participating in Mumbai and Entrepreneurship Program.

Through a combination of extensive business experience, valuable academic course work, and the award of a starter loan from the school's Entrepreneurship Program, Steve will develop a profitable niche lunch restaurant. Sales for year two and three are 145,299 and 203,676 respectively. Profitability will be reached by the end of year two.
1.1 Mission

It is Singh sandwich's mission to offer the finest, healthiest and best tasting Singh sandwiches in Mumbai , PA. Singh sandwich will offer the finest customer service, no customer will leave who is dissatisfied.
1.2 Keys to Success

Employ strict financial controls. This is extremely important in a retail food establishment. Offer the highest-quality lunch time fare. Ensure sufficient visibility. A strong marketing campaign required.

1.3 Objectives

To become the premier sandwich shop in downtown Mumbai , PA. To continually draw students off campus for lunch at a rate of 35% new customers per year after the second year. To become profitable within the first two years.

Company Summary
Singh sandwich is a recently formed PA based L.L.C. formed by Steve Jones. The company is wholly owned by Steve. The business will be based in downtown Mumbai and will serve the lunch and early evening crowd.

2.1 Start-up Summary

As a start-up organization, Singh sandwich will require a decent amount of equipment to begin operations. The following is a somewhat complete list of the needed equipment:

Cash register; Computer system, including printer, CD-RW, Internet connection; Convection oven; Refrigeration unit; Blender/food processor; Assorted knives, cutting boards, serving dishes, silverware, food containers; Shelving units; Tables, chairs, table clothes and other table accessories; Lighting units; Espresso machine and coffee maker (these items are subsidized by the coffee vendor who sells the coffee/espresso beans).

Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets 5,500 59,500 65,000

Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets

25,000 34,500 0 34,500 59,500

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) 0 0 0

Other Current Liabilities (interest-free) 0 Total Liabilities Capital Planned Investment Entrepreneurship Program Loan Investor 2 Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital 40,000 25,000 0 65,000 (5,500) 59,500 0

Total Capital and Liabilities Total Funding

59,500 65,000

Start-up

Requirements Start-up Expenses Legal Stationery etc. Brochures Consultants Rent 3,000 300 500 1,000 700

Total Start-up Expenses 5,500 Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements 34,500 0 25,000 59,500 65,000

2.2 Company Ownership

Singh sandwich has been formed as a limited liability company in Pennsylvania. The L.L.C. business formation has been chosen as a way of protecting the owner from personal liability while avoiding double taxation associated with a traditional corporation.

Services
Singh sandwich is a downtown based sandwich shop serving the lunch time hour as well as early evening, weekdays from 10-6 pm. Pita bread is chosen for several reasons: it is unusual, healthy, and quite versatile. Each customer will have their choice of different fillings for the pita sandwiches. The range of options for fillings (not an exhaustive list) are: tofu pate, falafel, hummus, baba ganouj, tabouli, turkey, ham, chicken, pesto, assorted vegetables and assorted cheeses. In addition to the pitas, there will be several different salads available, both green as well as pastas, assorted deserts, espresso and coffee.

Market Analysis Summary

Singh sandwich will be serving the Mumbai , PA lunch time and early evening crowd. Two distinct market segments will be targeted: students of Mumbai and Jefferson College and "towners." The students will be attracted to Singh sandwich as a better alternative to their oncampus meal plan. The towners will appreciate the selection and change from the more traditional offerings currently available on Main Street. Main Street has been chosen in Mumbai because of the recent renaissance of the downtown area. Currently, there are lots of different businesses that have hungry lunch time workers. The competitive environment that Singh sandwich faces is not too stiff. Most of the lunch time fare in downtown can be categorized as traditional offerings, diner food. While this might appeal to older residents of the town, this does not appeal to many college students and to a growing population of people who are in search of more healthy food, Singh sandwich should be a big hit.
4.1 Market Segmentation

Singh sandwich has segmented the market into two distinct segments: Students This group is primarily from Mumbai and Jefferson College, a liberal arts school, a tenth of a mile from downtown. The students are looking for food vendors for two main reasons, the first is the desire to get off campus, the second is to have an alternative to the on-campus food service. Demographic data and behavioral traits for the students is as follows:

75% of the students are on some sort of financial aid; 67% have a part-time job; Ages 17-22; 42% of the students were in the top 15% of their high school class; 36% of the students were in the 85th percentile for the SAT; 89% of the students eat out at least twice per week; 75% of the students are on the school food program.

This information pertains to the Mumbai and Jefferson students. There will be a few community college students who will trickle in, but since their campus is six miles away, there will not be a significant number of community college students. Towners This group is the people that live and work in Mumbai , primarily in the downtown area.

Ages 24-55; The average individual income is 38,000; 55% of the people have at least some undergraduate schooling; 44% of the people work within a seven minute walk from the downtown area; 76% of the group go out for lunch one to two times a week.

Market Analysis Year 1 Potential Customers Students Towners Total Year 2 Year 3 Year 4 Year 5

Growth

CAGR

8% 8% 8.00%

2,285 45,989 48,274

2,468 49,668 52,136

2,665 53,641 56,306

2,878 57,932 60,810

3,108 62,567 65,675

7.99% 8.00% 8.00%

4.2 Target Market Segment Strategy

The two different market segments that Singh sandwich will be going after are distinct enough that there will be two different marketing campaigns, one for each group. This is necessary because the two groups respond to different forms of communication. Students spend the majority of their day on campus, but typically venture off campus during the day for lunch. The marketing effort to reach the students will be based on their forms of written media, The General, student newspaper. The towners can be reached through different sources of communication. These are people who work downtown and tend to patronize the other downtown businesses. These people are more in tune with the different business organizations that exist downtown. Singh sandwich will attempt to communicate with this group via the local newspaper.

4.3 Service Business Analysis

Singh sandwich exists within the general restaurant industry. There are many different categories within the restaurant industry. Singh sandwich fits within two different niches within the industry, fast food and fast casual. Their offerings are similar to fast food in that orders are placed at the counter and served within a few minutes, and the menu is somewhat limited in selection. It is also similar to fast casual where the clientele tends to spend more time at a table relative to a fast food restaurant. The food is more expensive than a normal fast food restaurant and there is a larger product offering. For the restaurant industry, it is normal for a venture to reach profitability by year two. If they reach it any earlier it is likely that they are cutting corners and that profit is unlikely to be sustainable. If it takes more than two years than it is quite questionable whether they will ever reach profitability.
4.3.1 Competition and Buying Patterns

Singh sandwich's competition exists in many forms:

Fast food: This takes the form of the traditional restaurants such as McDonald's, Burger King, and Wendy's, as well as healthier alternatives such as Subway. Pizza: The predominant pizza place for sit down food is Brothers pizza, owned by two brothers who are professors at the college. This place is more popular with locals than with college students based primarily on the fact that the professor owners are not very well liked as professors so many students avoid the place. Deli: There are two different delis located downtown that serve deli style sandwiches. These delis serve very basic, standard deli fare, generally sliced deli meats. Diners: Based on the aging demographic of Mumbai , a function of its steel industry roots, there are several diners located in Mumbai , one of them downtown. These are very traditional diners, the menus are right out of the 1950's. On-campus food service: At least for the students, this is an alternative in terms of food offerings. Most of the students have a food plan. Because of the poor food offerings and the need for variety, many of the students are looking for other alternatives regardless of the fact that their food is already paid for via the plan.

Strategy and Implementation Summary

Singh sandwich's business strategy will be to emphasize its healthy, custom food alternatives. Most of the competitors cannot compete with Singh sandwich's healthy menu. Most places uses a lot of fried foods, compromising the nutritional value of their food. Additionally, no one offers the same flexibility or ability to customize the product offerings. This competitive edge will also be stressed in the marketing campaign. As mentioned earlier, Singh sandwich's marketing strategy will be distinct for each of the two market segments that it is seeking to attract.

The sales effort will be based on obtaining 100% satisfaction. Singh sandwich will work hard to ensure that every customer has a wonderful experience at Singh sandwich. Almost anything will be done to ensure any problems that arise are corrected.
5.1 Competitive Edge

Singh sandwich has two competitive edges that will help it succeed in its business. The first edge is its healthy menu. Singh sandwich takes pride in the fact that the only thing fried on the menu is falafel. Everything else is oil free, or at least free of any oils other than olive oil. In addition to the absence of oil based fats, much of its offered ingredients are vegetables, ensuring a healthy meal. The other competitive edge that Singh sandwich will leverage is customization. Customers are offered a laundry list of ingredients that they get to choose from. It is Singh sandwich's goal to serve the customer in whatever capacity is needed. This takes the form of its competitive edge where it will build the patrons pita pocket any way that they want.
5.2 Marketing Strategy

Singh sandwich will employ a two pronged marketing strategy in an attempt to reach potential customers within the two market segments. To reach the students, Singh sandwich must use resources that are successful in reaching the students. Recognizing that the students spend the majority of their time on campus, Singh sandwich will rely on print advertisements and coupons within the student publications. The print advertisements will serve to draw notice to Singh sandwich, increasing the student's awareness about this new restaurant alternative. Singh sandwich will emphasize its menu as a tasty, healthy alternative to the campus meal plan as well as other local food vendors. Singh sandwich will also use coupons as a way drawing in students. Coupons are quite effective for students, most of them are on a fixed budget and jump at the chance to save money by using a coupon. Print advertising will be used for the towners, however, Singh sandwich will choose a different media source to reach these people. The readership levels for the local paper, The Sentinel are 67% of the targeted population. This will prove to be an effective method for reaching this group. Since the majority of this market segment work downtown, flyers will be passed around the downtown area calling attention to Singh sandwich's opening. Coupons will be used, but to a lesser degree with this segment as they tend to have much lower response rates relative to the other market segment.
5.3 Sales Strategy

As previously mentioned, Singh sandwich will emphasize its 100% customer satisfaction to win over customers. The fact that it advertises 100% satisfaction is far less significant relative to its actions that ensure total satisfaction. This effort is based on the philosophy that it is far cheaper to maintain a current customer than it is to attract a new customer. Additionally, it is far easier and cheaper to remedy any problems with a customer as it occurs instead of dealing with an unhappy customer. With this in mind, the organization has the firm belief that if all customers

leave the store happy, there will be a significant increase in sales in the long term, directly correlated with the fact that customers are being properly taken care of. This sales philosophy is a way of treating customers. While the service offered customers is quite important, there is a need to have a quality product, otherwise the service aspect is in vain in the long term because the customers are treated well but do not perceive value in the food that they are buying. That being said, Singh sandwich must offer fresh, healthy, quality food in order to fully support its customer-centered service. The menu has been devised in order to offer a wide selection with menu items that are easy to prepare, remain fresh, and are cost effective to serve. Having both a quality product and excellent service will ensure realization of the sales forecast.
5.3.1 Sales Forecast

Singh sandwich has decided to take a conservative viewpoint toward its sales forecast in order to increase the likelihood of achieving the stated goals. Singh sandwich has reason to believe that the first three months of business will be fairly slow. It is forecasted that business will steadily increase over the first two years. Profitability is forecasted to be achieved toward the end of year two.

Sales Forecast Year 1 Sales Food Beverages Total Sales Direct Cost of Sales Food Beverages Subtotal Direct Cost of Sales 48,361 20,312 68,673 Year 1 14,508 4,062 102,323 42,976 145,299 Year 2 30,697 8,595 143,434 60,242 203,676 Year 3 43,030 12,048 Year 2 Year 3

18,571

39,292

55,079

5.4 Milestones

Singh sandwich has identified four milestones that are clear in terms of the goals, and are achievable:
1. Business plan completion. The final version will be accomplished with in the first two months. 2. 50,000 in revenue. A date of expectancy has been established and it will be useful to gauge performance on whether the revenue is realized on schedule. 3. Profitability. Very important, it is forecasted to occur within two years.

4. Payback of entrepreneurship loan. While non-payment of the loan will not result in serious consequences it is a matter of pride to be able to take a loan from the College's Entrepreneurship Program and turn it into a successful business.

Milestones Milestone Business plan completion 50K in revenue Profitability Payback of loan Totals Start Date End Date Budget Manager Department

1/1/2003

3/1/2003

Steve

Operations

3/1/2003 3/1/2003 3/1/2003

11/1/2003 10/15/2003 1/1/2007

0 0 0 0

Steve Steve Steve

Sales Accounting Accounting

Management Summary
Steve Jones is the driving force behind Singh sandwich. Steve has lived in Mumbai , PA for the last four years while studying for his Bachelor of Arts from Mumbai and Jefferson College. Steve's introduction to the restaurant industry came at the early age of 14 when he worked in his family's restaurant in Cleveland. While pursuing his degree Steve was a server at a fine dining restaurant called Angelo's, where he received more insight into the restaurant industry. He enrolled in the Entrepreneurship

Program which combined coursework with speakers and empirical experience. For lucky few, it also provided them with a low interest loan which if the business fails does not personally obligate the borrower to repay. While Steve became more and more active in this program, he began to realize that he would not be truly happy unless he was operating his own business. He also realized that he would be most effective if he worked within the restaurant industry due to all of his experience as well as the wealth of contacts that he had access to because of his parent's business. With this in mind, at the end of the last semester of his last year, Steve applied for the a loan through the Entrepreneurship Program and was pleasantly surprised that he won. Steve has written a business plan in response to the application requirements for the loans, however by the time the loan was awarded, many months had passed and Steve felt the need to rewrite the plan before beginning the business. He undertook this task and the business has begun.
6.1 Personnel Plan

Steve will be the main employee of Singh sandwich. For the first two months of operation, Steve will be the sole employee. During this period he will oversee the finishing touches on the retail space, will develop the product recipes, and will establish vendor relationships. Month three will mark the first month of sales. Steve will have at least two employees present during open hours. Steve will also have one employee working 1.5 hours before opening to help with food prep and both employees for .5-1 hour after closing. As business ramps, Steve will employ additional employees to help out with food prep, front restaurant help, as well as back kitchen activities such as dishes and clean up.

Personnel Plan Year 1 Steve employee 1 employee 2 employee 3 employee 4 Total People Total Payroll Year 2 Year 3

24,000 27,000 30,000 9,000 9,000 7,200 5,400 5 10,800 10,800 10,800 10,800 10,800 10,800 10,800 10,800 5 5

54,600 70,200 73,200

Financial Plan
The following sections will detail important financial information.
7.1 Important Assumptions

The following table will detail important Financial Assumptions.

General Assumptions Year 1 Plan Month Current Interest Rate 10.00% 1 10.00% 10.00% 30.00% 0 Year 2 2 10.00% 10.00% 30.00% 0 Year 3 3

Long-term Interest Rate 10.00% Tax Rate Other 30.00% 0

7.2 Break-even Analysis

The following table and chart show our Break-even Analysis.

Break-even Analysis

Monthly Revenue Break-even 9,799 Assumptions: Average Percent Variable Cost 27% Estimated Monthly Fixed Cost 7,149

7.3 Projected Profit and Loss

The following table and charts illustrate the Projected Profit and Loss.

Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Costs of Goods Total Cost of Sales Gross Margin Gross Margin % 68,673 18,571 0 18,571 50,102 72.96% Year 2 145,299 39,292 0 39,292 106,007 72.96% Year 3 203,676 55,079 0 55,079 148,598 72.96%

Expenses Payroll 54,600 70,200 2,400 5,004 9,000 3,600 3,000 10,530 0 103,734 2,273 7,277 0 682 73,200 2,400 5,004 9,000 3,600 3,000 10,980 0 107,184 41,414 46,418 0 12,424

Sales and Marketing and Other Expenses 2,400 Depreciation Rent Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred 5,004 9,000 3,600 3,000 8,190 0 85,794 (35,691) (30,688) 0 0

Net Profit Net Profit/Sales

(35,691) -51.97%

1,591 1.09%

28,990 14.23%

7.4 Projected Cash Flow

The following table and chart will indicate Projected Cash Flow.

Pro Forma Cash Flow

Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing 0 0 0 0 0 0 68,673 68,673 145,299 145,299 203,676 203,676 Year 2 Year 3

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, VAT, HST/GST Paid Out

0 0 0 0 0 68,673 Year 1

0 0 0 0 0 145,299 Year 2

0 0 0 0 0 203,676 Year 3

54,600 40,474 95,074

70,200 67,160 137,360

73,200 94,183 167,383

0 0 0 0 0 0 0 137,360 7,939 16,037

0 0 0 0 0 0 0 167,383 36,293 52,331

Principal Repayment of Current Borrowing 0 Other Liabilities Principal Repayment 0

Long-term Liabilities Principal Repayment 0 Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance 0 0 0 95,074 (26,401) 8,099

7.5 Projected Balance Sheet

The following table will indicate the Projected Balance Sheet.

Pro Forma Balance Sheet Year 1 Assets 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 4,287 0 0 4,287 0 4,287 65,000 (5,500) (35,691) 23,809 28,095 5,630 0 0 5,630 0 5,630 65,000 (41,191) 1,591 25,399 31,030 7,930 0 0 7,930 0 7,930 65,000 (39,601) 28,990 54,389 62,319 25,000 5,004 19,996 28,095 Year 1 25,000 10,008 14,992 31,030 Year 2 25,000 15,012 9,988 62,319 Year 3 8,099 0 8,099 16,037 0 16,037 52,331 0 52,331 Year 2 Year 3

Net Worth

23,809

25,399

54,389

Personnel Plan
Month 10 Month 11

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

Month 12

vijay

0%

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

employee 1

0%

900

900

900

900

900

900

900

900

900

900

employee 2

0%

900

900

900

900

900

900

900

900

900

900

employee 3

0%

900

900

900

900

900

900

900

900

employee 4

0%

900

900

900

900

900

900

Total People

Total Payroll

2,000

2,000

3,800

3,800

4,700

4,700

5,600

5,600

5,600

5,600

5,600

5,600

General Assumptions
Month 12

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Plan Month

10

11

12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Other

Pro Forma Profit and Loss

Month 12

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Sales

4,612

5,593

6,855

6,499

5,743

6,174

7,711

8,730

9,011

7,745

Direct Cost of Sales

1,247

1,512

1,854

1,757

1,553

1,670

2,085

2,361

2,437

2,094

Other Costs of Goods

Total Cost of Sales

1,247

1,512

1,854

1,757

1,553

1,670

2,085

2,361

2,437

2,094

Gross Margin

3,365

4,081

5,001

4,742

4,190

4,505

5,626

6,369

6,574

5,650

Gross Margin %

0.00%

0.00%

72.96%

72.96%

72.96%

72.96%

72.96%

72.96%

72.96%

72.96%

72.96%

72.96%

Expenses

Payroll

2,000

2,000

3,800

3,800

4,700

4,700

5,600

5,600

5,600

5,600

5,600

5,600

Sales and Marketing and Other Expenses

200

200

200

200

200

200

200

200

200

200

200

200

Depreciation

417

417

417

417

417

417

417

417

417

417

417

417

Rent

750

750

750

750

750

750

750

750

750

750

750

750

Utilities

300

300

300

300

300

300

300

300

300

300

300

300

Insurance

250

250

250

250

250

250

250

250

250

250

250

250

Payroll Taxes

15%

300

300

570

570

705

705

840

840

840

840

840

840

Other

Total Operating Expenses

4,217

4,217

6,287

6,287

7,322

7,322

8,357

8,357

8,357

8,357

8,357

8,357

Profit Before Interest and Taxes

(4,217)

(4,217)

(2,922)

(2,206)

(2,321)

(2,580)

(4,167)

(3,852)

(2,731)

(1,988)

(1,783)

(2,707)

EBITDA

(3,800)

(3,800)

(2,505)

(1,789)

(1,904)

(2,163)

(3,750)

(3,435)

(2,314)

(1,571)

(1,366)

(2,290)

Interest Expense

Taxes Incurred

Net Profit

(4,217)

(4,217)

(2,922)

(2,206)

(2,321)

(2,580)

(4,167)

(3,852)

(2,731)

(1,988)

(1,783)

(2,707)

Net Profit/Sales

0.00%

0.00%

-63.36%

-39.45%

-33.85%

-39.70%

-72.56%

-62.40%

-35.42%

-22.77%

-19.79%

34.95%

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 Operations

Cash Sales

4,612

5,593

6,855

6,499

5,743

6,174

7,711

8,730

9,011

7,745

Subtotal Cash from Operations

4,612

5,593

6,855

6,499

5,743

6,174

7,711

8,730

9,011

7,745

Additional Cash Received

Sales Tax, VAT, HST/GST Received

0.00%

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

4,612

5,593

6,855

6,499

5,743

6,174

7,711

8,730

9,011

7,745

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

2,000

2,000

3,800

3,800

4,700

4,700

5,600

5,600

5,600

5,600

5,600

5,600

Bill Payments

60

1,800

1,851

3,326

3,598

4,056

3,960

3,897

4,023

4,434

4,703

4,765

Subtotal Spent on Operations

2,060

3,800

5,651

7,126

8,298

8,756

9,560

9,497

9,623

10,034

10,303

10,365

Additional Cash Spent

Sales Tax, VAT, 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

2,060

3,800

5,651

7,126

8,298

8,756

9,560

9,497

9,623

10,034

10,303

10,365

Net Cash Flow

(2,060)

(3,800)

(1,038)

(1,533)

(1,443)

(2,257)

(3,817)

(3,323)

(1,912)

(1,305)

(1,292)

(2,621)

Cash Balance

32,440

28,640

27,602

26,069

24,625

22,369

18,552

15,229

13,317

12,012

10,719

8,099

Pro Forma Balance Sheet

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

Assets

Starting Balances

Current Assets Cash 34,500 32,440 28,640 27,602 26,069 24,625 22,369 18,552 15,229 13,317 12,012 10,719 8,099

Other Current 0 Assets

Total Current 34,500 Assets Long-term Assets Long-term Assets

32,440 28,640 27,602

26,069

24,625

22,369

18,552

15,229

13,317

12,012

10,719

8,099

25,000

25,000 25,000 25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

Accumulated 0 Depreciation Total Longterm Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing

417

834

1,251

1,668

2,085

2,502

2,919

3,336

3,753

4,170

4,587

5,004

25,000

24,583 24,166 23,749

23,332

22,915

22,498

22,081

21,664

21,247

20,830

20,413

19,996

59,500

57,023 52,806 51,351

49,401

47,541

44,867

40,633

36,893

34,564

32,842 Month 10

31,133 Month 11

28,095

Month Month Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 1 2

Month 12

1,740

1,740

3,207

3,463

3,924

3,830

3,763

3,876

4,278

4,544

4,617

4,287

Other Current 0 Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities

1,740

1,740

3,207

3,463

3,924

3,830

3,763

3,876

4,278

4,544

4,617

4,287

1,740

1,740

3,207

3,463

3,924

3,830

3,763

3,876

4,278

4,544

4,617

4,287

Paid-in Capital 65,000 Retained Earnings Earnings Total Capital

65,000 65,000 65,000

65,000

65,000

65,000

65,000

65,000

65,000

65,000

65,000

65,000

(5,500)

(5,500) (5,500) (5,500)

(5,500)

(5,500)

(5,500)

(5,500)

(5,500)

(5,500)

(5,500)

(5,500)

(5,500)

0 59,500

(4,217) (8,434) (11,356) (13,562) (15,883) (18,463) (22,630) (26,483) (29,214) (31,202) (32,985) (35,691) 55,283 51,066 48,144 45,938 43,617 41,037 36,870 33,017 30,286 28,298 26,515 23,809

Total Liabilities and 59,500 Capital

57,023 52,806 51,351

49,401

47,541

44,867

40,633

36,893

34,564

32,842

31,133

28,095

Net Worth

59,500

55,283 51,066 48,144

45,938

43,617

41,037

36,870

33,017

30,286

28,298

26,515

23,809