Steak Restaurant Business Plan
This plan is highly focused and promises prosperity for investors, owners, managers, and staff. Sales figures are conservative, and actual sales may exceed projections. The Fire Fountain Grille will be profitable from the start and continue to increase sales and profits each year.
The Fire Fountain Grille is a comfortable restaurant designed to make customers feel like VIPs in a world of their own. The decor and theme are inspired by an exterior fountain at the main entrance, featuring cascading water and flaming torches. The show kitchen will also include a custom-made "Fire Fountain", a unique grill with cascading water and flame effects. This spectacle will be visible from the dining room and function as a 48" gas-powered steak grill in the kitchen. The restaurant’s energy and atmosphere derive, in part, from this dazzling feature. By offering an exciting and rewarding dining experience, the Fire Fountain Grille will quickly gain a loyal following.
1.1 Objectives:
– Achieve sales of $2.3 million with a net profit/sales ratio over 19% in the first full calendar year.
– Open a second unit in the first quarter of year three.
– Open a third unit in the first quarter of year four.
1.2 Mission:
– Fire Fountain Grille exists to generate sales and profits for its investors, owners, managers, and staff while serving its customers.
– Offer delicious meals and beverages in a soothing environment.
– Ensure cheerful, courteous staff who are focused on pleasing customers.
– Treat customers with importance and warmth, striving to become their first choice for entertainment.
– Provide a dignified, fun, and rewarding workplace for staff members.
– Deliver a lucrative return on investment for investors and offer future growth opportunities.
– Treat vendors with loyalty and foster fruitful relationships.
– Be a contributing and supportive member of the community.
1.3 Keys to Success:
– Have a manager greet, visit, or at least make eye contact with customers at every table each night.
– Ensure managers visit tables with questions or feedback and take all necessary steps to satisfy customers.
– Prioritize the success and happiness of staff members.
– Maintain a commitment to excellent quality food and beverages.
Fire Fountain Grille is a steakhouse concept with a comfortable, upscale ambience featuring signature fountains of flames and water. The menu offers original variations of American favorites, including seasoned steaks, prime rib, roasted caramel chicken, hot gourmet sandwiches, and hearty salads. Beverage options include an impressive wine list, microbrew beers, and festive cocktails. Unit One will be located in a newer standalone building with high visibility on a popular commercial corridor, excellent parking, and easy access from an eight lane thoroughfare.
2.1 Company Ownership:
Fire Fountain Grille – Unit One LP is projected as a Limited Partnership that may consider switching to a stock "C" Corporation or Limited Liability Corporation "LLC" for investment structuring purposes (see section 6.1.1 "Investment Summary"). The number of investors may vary based on SEC "Regulation D" interpretations.
OPERATING PARTNERS:
– General Managing Partner owns 31%.
– Vice Managing Partner for Dining Room and Human Resource Operations owns 9%.
– Vice Managing Partner for Beverage and Entertainment owns 9%.
– Vice Managing Partner for Kitchen and Catering Operations owns 9%.
INVESTMENT PARTNERS:
– Limited Partner Group One owns 14%.
– Limited Partner Group Two owns 14%.
– Limited Partner Group Three owns 14%.
2.2 Start-up Summary:
Fire Fountain Grille, Unit One, will take advantage of an existing structure. Start-up costs will cover converting the structure to suit the concept visually and functionally. This includes expenses for hiring and training staff, revising equipment needs, acquiring smallwares and servicewares, and purchasing inventory and other essentials.
Start-up Expenses
Legal: $5,000
Stationery, Menus, Brochures: $4,000
Food Inventory: $20,000
Alcohol Inventory: $8,000
Operating Supplies: $5,000
Smallwares: $22,000
Uniforms: $3,000
Linen: $1,500
Two Fire Fountains: $30,000
Kitchen Improvements: $15,000
Leasehold Improvements: $30,000
Exterior Improvements: $10,000
Catering Vehicle & Equipment: $23,000
Signage: $15,000
Liquor License: $4,000
Point Of Sale System: $10,000
Computers & Peripherals: $5,000
Office Furnishings: $1,500
Pre-opening Management Labor: $15,000
Pre-opening Labor/Training: $16,000
Pre-opening Advertising & Marketing: $8,000
Permits & Fees: $3,000
Insurance: $7,500
Rent: $15,000
Research and Development: $5,000
Utility Deposits: $10,000
Cash Reserve: $25,000
Other: $8,000
Total Start-up Expenses: $324,500
Start-up Assets
Cash Required: $580,500
Start-up Inventory: $0
Other Current Assets: $0
Long-term Assets: $65,000
Total Assets: $645,500
Total Requirements: $970,000
Company Locations and Facilities
The Fire Fountain Grille is located in a large stand-alone building with plenty of parking next to the Acres & Acres Mall in Electrumburg, a fast-growing suburb of Starburstville.
Products and Services
The Fire Fountain Grille is a comfortable, inviting restaurant designed to make customers feel like VIPs in a world of their own. The decor and theme revolve around the custom-made "Fire Fountain," a unique show kitchen grill with a cascading water fountain and flame-throwing torches on the dining room side. In the kitchen, it is a sizzling 48" gas-powered steak grill. The energy and atmosphere of the restaurant draw power from the dazzling "Fire Fountain".
The restaurant’s real power and energy come from the attentive and courteous service provided by the floor staff and the delicious steaks and entrees prepared by the kitchen team. Every night, two managers ensure that the kitchen operates smoothly and that all food is prepared perfectly and on time. Another manager attends to the flow of the dining room, providing outstanding customer service. Our floor managers greet every customer during their stay to ensure their satisfaction. Our customer service policy is simple: All customers must leave happy with our service and food!
We offer lunch on Friday, Saturday, and Sunday and have a "late-night seating" from 10:00 pm to 1:00 am on Friday and Saturday. We also provide private dining facilities for group events and full catering services at any location. Take-out food is available for those on the go. Our website provides information on upcoming events, specials, and catering and gift certificates.
The restaurant’s hours of operation are:
– Monday-Thursday: 3:00 pm-10:00 pm
– Friday and Saturday: 11:00 am-1:00 am
– Sunday: 11:00 am-9:00 pm
Competitive Comparison
For comparison purposes, PF Chang’s®, Houston’s®, and TGI Friday’s® are chains that offer fun atmospheres. However, our most competitive edge lies in our managers’ ability to create goodwill among our customers and turn any perceived difficulty into a positive experience. Our steaks and other dishes are prepared with an irresistible combination of flavors and spices that no one else in the industry can match.
Product and Service Description
Our menu includes juicy, thick steaks coated with a secret combination of flavorings and zesty spices. These steaks are grilled to perfection. We also offer prime rib in four portion sizes, butter-roasted and seasoned chicken dishes, fresh grilled seafood, imaginative salads, cold melon chowders, a variety of burgers and sandwiches, tender pork chops, soups with berry barbecue sauces, refreshing fountain drinks, and flaming desserts.
Our bar offers a wide range of American wines, dozens of beers including popular microbrews, festive martinis, margaritas, specialty frozen drinks, and hundreds of cocktails.
Menu
Fire Fountain Grille Menu
Fire Fountain Specialties:
Meals come with a choice of baked tater, sweet tater, red beans n’ rice, veggies, or fries. Also included are fresh baked rolls, butter, and a salad!
– RIBEYE: Big (16 ounces) $16.95 or huge (22 ounces) $22.95
– FIRE FOUNTAIN FILET: Tender 9-ounce filet, lightly seasoned and sizzle-grilled $14.95
– METROPOLITAN STRIP STEAK: 14-ounce Strip steak with Bay Shrimp and Citrus-Bearnaise Sauce $17.95
– NEW YORK STRIP: Classic Strip Cut, seasoned and grilled $13.95
– TOP SIRLOIN: Prime delicate cut, seasoned and grilled to order $11.95
– PRIME RIB: Hand carved cuts, slow-roasted and served with au jus and whipped horseradish sauce:
– 20 ounces – $19.95
– 16 ounces – $16.95
– 12 ounces – $13.95
– 8 ounces – $10.95
Fire Fountain Style of Prime Rib available. Ask your server!
Seafood:
– HONEY/CHILI GLAZED SALMON: Fire-Grilled Salmon brushed with honey-chili glaze and topped with black bean salsa $13.95
– GRILLED SALMON: With your choice of side dish $12.95
– JAMAICAN SNAPPER: Pan charred, topped with a sweet coconut-tomato glaze $11.95
– ROASTED PRAWNS: 12 Grilled Jumbo Shrimp over rice $13.95
– CHICKEN ASTORIA: Breast of chicken topped with Bay Shrimp and asparagus spears, finished with Citrus-Bearnaise sauce $11.95
– FIRE-SMOKE CHICKEN: Robust, entirely dark meat, quarter of a chicken, smoke-roasted, served with Three Berry Barbecue Sauce $12.95
– CARAMEL FLAMED CHICKEN: Tender Chicken breast, buttered and basted with sweet caramel glaze, then charred over an open flame $10.95
Burgers ‘n such:
All burgers come with fries
– THE BACON SPECTACULAR: Broiled 1/3-pound burger with bacon, Cheddar cheese, lettuce, dill pickle, and tomato $5.95
– BURGER BURGER: Juicy 1/2 pounder served on a toasted onion bun with pickle, onion, lettuce, and tomato $4.95 (add cheese $0.50)
– THE HIGHWAYMAN: One entire pound of juicy ground beef with Canadian bacon, Swiss cheese, lettuce, grilled onions, barbecue sauce, and tomato on a giant bun $7.95
– SLOPPY JOE: Sweet ‘n zesty, a mouth-watering favorite! $4.95
– SHAVED PRIME RIB SANDWICH: With smoked bacon-horseradish sauce and smothered with melted Monterey Jack cheese $4.95
– BARBECUE-BEEF: Huge pile of beef, slathered with barbecue sauce and melted Cheddar cheese, served open-faced $4.95
– CHICKEN RANCH SANDWICH: Golden deep-fried chicken served on a kaiser roll with Ranch sauce, lettuce, and tomato $4.95
Appetizers:
– GRILLED CHICKEN STRIPS: Served with Three Berry Barbecue Sauce $4.95
– GRILLED STEAK SKEWERS with Ginger Red Sauce $4.95
– FIRE STICKS: Fried Pepper-Jack cheese with cool Ranch Dip $3.95
– CHILLED MELON CHOWDER: Bowl $2.95, Cup $1.95
– BEER BATTERED SHRIMP with Pineapple Salsa $5.95
– CHICKEN STRIPS with Honey-Dijon Sauce $4.95
From The Fountain:
– Coffee $1.25, Decaf $1.25
– Coke, Root Beer, 7-UP, Diet Coke, Iced Tea $1.50
– Milk, Large $1.50, Small $1.25
– Draft Beers: Pint $2.75, Glass $1.50
– Microbrews: Pint $3.00, Glass $1.95
– Wines: House Glass $3.95, House Carafe $12.00. Please ask your server for a wine list.
Desserts:
– Flaming Fruit Kebabs with ice cream $5.95
– Cherries Jubilee $5.95
– Key Lime Pie $3.95
– Milkshakes $2.95
– Banana Split $5.25
– Ice Cream Sundae $2.50
– Carrot Cake $3.95
– Completely Fat-Free Dessert: Chewy Brownies with Frozen Yogurt $2.95
Just For Kids:
Kids meals come with fries
– Little Burger $3.95
– Chicken Toes $3.95
– Little Steak $5.95
– Cheesaroni $2.95
– Corny Dog $3.95
– Hot Doggy $3.95
Kids soda pop is free.
Salads:
– SMOKED CHICKEN SALAD: With caramelized Hazel nuts and Ginger-Orange dressing $7.95
– Grilled Sirloin Caesar $7.95
– Grilled Chicken Caesar $7.95
– Grilled Shrimp Caesar $7.95
– Traditional Caesar $2.95
– Fresh Garden Salad $2.95
Dressing choices: Ranch, Bleu Cheese, Catalina, Honey-Mustard, Low-Fat Italian
Chilled Melon Chowder: Bowl $2.95, Cup $1.95
Side of Fries $1.95
Sides of Red Beans ‘n’ Rice or Baked Tater, Sweet Taters, Mashed Taters, or Veggies $1.95
Grilled Onions $1.95
Daily Soup: Bowl $2.95, Cup $1.95
Remember! We offer take-out food for those on the run!
Market Analysis Summary
Electrumburg is a dynamic city located in the rapidly growing southeastern part of the Starburstville metropolitan area. The city is known for its excellent medical and educational institutions, beautiful neighborhoods, easy access to freeways, and a diversified economic base. Electrumburg features master-planned communities, luxury executive homes, older residences in tree-lined neighborhoods, and affordable starter housing. The city has experienced significant population growth, with a 48 percent increase during the 1990s. Today, Electrumburg has a population of over 225,000 and is adjacent to Starburstville with a population of 500,000. The demographics of Electrumburg’s workforce match those of the region, providing an excellent labor pool for businesses. Electrumburg’s location within a vibrant metropolitan area makes it an attractive place to live and establish a business.
Market Segmentation
Fire Fountain Grille, Unit One, is located in Electrumburg. Within a five-mile radius, there are nearly 125,000 people, over 59,000 households, and over 400 businesses. The median income within one mile is over $81,000, $72,000 within three miles, and $60,000 within five miles. Per capita retail spending in this area exceeds $13,000, with total retail spending exceeding $2.8 billion.
The target segments for Fire Fountain Grille are:
1. 30-44 year olds with income in the $40,000-$80,000 range within a five-mile radius
2. 45-59 year olds with income in the $55,000-$90,000 range within a five-mile radius
3. 21-29 year olds with income in the $36,000-$60,000 range within a five-mile radius
4. A combination of age and income ranges mentioned in tiers 1-3, extending the geographic radius to seven miles
5. 60+ year olds within five miles with an income of $65,000+
6. A composite of age ranges 60+, 10-20, and under 10 within a radius of five to seven miles with a mixture of incomes.
Market Analysis
Potential Customers Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Ages 30-44 (5 mile radius) 10% 48,000 52,800 58,080 63,888 70,277 10.00%
Ages 45-59 (5 mile radius) 9% 30,000 32,700 35,643 38,851 42,348 9.00%
Ages 21-29 (5 mile radius) 9% 24,000 26,160 28,514 31,080 33,877 9.00%
Ages 60+ (5 mile radius) 7% 42,000 44,940 48,086 51,452 55,054 7.00%
Ages 10-20 (5 mile radius) 5% 30,000 31,500 33,075 34,729 36,465 5.00%
Ages 2-10 (5 mile radius) 2% 26,000 26,520 27,050 27,591 28,143 2.00%
Total 7.41% 200,000 214,620 230,448 247,591 266,164 7.41%
Target Market Segment Strategy
Targeting the 30-44 year old age range in upper middle class areas close to our restaurant serves the needs and requirements of our customers. This aligns with our marketing plan and style of restaurant. The 30-44 age group appreciates quality food and service and has "disposable" income. They value exceptional service, timely service, and mouth-watering food. The upper middle class in this age range is our primary focus and we will market to kids in their schools and community. Research has shown that this age group appreciates the types of dishes we offer.
Our second-tier market group (45-59 / $55,000 – $80,000) will also appreciate our great service, delicious food, and extensive wine list. We will provide a more sophisticated dining experience than other upscale casual dining restaurants.
The 21-29 year old market will find many favorites on our menu, including tantalizing appetizers, spicy steaks, and specialty cocktails and beers. We offer a late-night atmosphere with jazz and food and beverage specials.
The fourth-tier extends the market radius out to a 5-mile area with the same demographics as tiers 1-3.
The 60+ market represents a group with abundant disposable income. They appreciate attentive, efficient service and we offer customization of meals to their preferences.
The sixth-tier group will benefit from our quality approaches and will learn about us through word-of-mouth and community involvement.
Market Trends
In the Starburstville Metro market, visual appeal and location are important trends. Most restaurants overlook targeting kids as a way to market to parents. Our approach is to target kids to get their parents to eat at our restaurant.
Market Growth
Steak restaurants make up less than 5% of the total restaurant market. Service-oriented steak houses have room to grow, as Americans still want meat and potatoes with good service.
Market Needs
The market lacks service-oriented restaurants that value the customer as the number one priority. Our focus on exceptional customer service sets us apart from the competition.
Service Business Analysis
Full-service restaurants with good management, staff, concepts, menus, wine lists, and location have better profit margins than other types of restaurants. A full-service steakhouse should show a bottom line profit of 13% – 25%.
Competition and Buying Patterns
Customer loyalty and positive word of mouth are important factors in customer choice. Building trust and providing exceptional hospitality are key to success in the hospitality business. We have high standards for customer service and professionalism.
Main Competitors
Competition comes from major chains and independent restaurants.
Business Participants
Eating and drinking places can be categorized as fine dining, private clubs, upscale casual, boiler plate casual, neighborhood places, breakfast/lunch/dinner chains, and fast food. We fall into the upscale casual category.
Strategy and Implementation Summary
Emphasize service:
Differentiate ourselves with exceptional service. Offer a clear and viable alternative to other restaurant chains.
Build a relationship-oriented business:
Establish long-term relationships with customers and become their restaurant of choice.
Focus on target markets:
Focus our offerings on specific population groups and sell to quality-conscious customers.
Competitive Edge
Our competitive edge is exceptional customer service. Our recipes are delicious, portions are large, and drinks are satisfying and refreshing.
Key marketing initiatives include kids tours, gift certificate program, direct mail, surprise dinners for radio station DJ’s, charity events, trade shows, eye-catching neons and fountains, high profile interaction with customers, and maintaining high food quality.
The Fire Fountain Grille. Sizzling, Refreshing, Exciting! For A Dinner To Remember…
Pricing Strategy
Prices are set to attract customers who prefer quality steak at a reasonable price. Our prices are above chain restaurants like Sizzler, El Paso BBQ, and Black Angus, but below high-end steakhouses like Ruth’s Chris and Morton’s.
Promotion Strategy
We use a mix of promotions and media to spread awareness about the Fire Fountain Grille. This includes direct mail, young people’s tours, eye-catching neons and torches, in-store comp cards, surprise dinners for radio station DJ’s, charity events, trade shows, vintner and chef dinners, high profile interaction with customers, and maintaining excellent service and food quality.
Marketing Programs
Children’s tours are an ongoing program to generate enthusiasm among kids and their parents. We offer a unique experience and treat kids as special customers.
| Sales Forecast | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Sales | |||||
| Food | $1,058,353 | $1,935,200 | $2,090,016 | $2,257,217 | $2,437,794 |
| Beverage | $43,588 | $70,800 | $76,464 | $82,581 | $89,187 |
| Liquor | $59,890 | $106,200 | $114,696 | $123,871 | $133,781 |
| Beer | $83,801 | $153,400 | $165,672 | $178,925 | $193,239 |
| Wine | $52,325 | $94,400 | $101,952 | $110,108 | $118,916 |
| Total Sales | $1,297,957 | $2,360,000 | $2,548,800 | $2,752,702 | $2,972,917 |
5.4 Strategic Alliances
The Fire Fountain Grille will align with hotels, movie theatres, live theatres, cab companies, banks, and retail stores in an informational brochure exchange. Each business will have a chance to promote the other businesses at their place of business. Additionally, our respective businesses will barter with each other, using gift certificates and comps.
5.5 Milestones
The milestone table is set up as a flow-chart. We opted to exclude budgeted dollars in the milestone category because we detailed these dollars in the start-up table. The milestone table is specific in detail, allowing for the smooth flow of functions necessary to set up the restaurant on schedule for the Grand Opening. Each function is timed to coincide with the proper execution and time needed to complete each task. Each Managing Partner has specific duties assigned to his area of expertise. The end of the milestone table also shows the beginning of the 2004 marketing plan.
Milestones
| Milestones | |||||
| Start Date | End Date | Budget | Manager | Department | |
| Office/Computer Supplies | 4/1/2004 | 4/5/2004 | $0 | MP 1 | Finance/Ops. |
| Install Accounting Programs | 4/1/2004 | 4/5/2004 | $0 | MP 1 | Finance/Ops. |
| Set Up Utility Accounts | 4/1/2004 | 4/5/2004 | $0 | MP 1 | Finance/Ops. |
| Finan./Legal/Ins. Accounts | 4/1/2004 | 4/5/2004 | $0 | MP 1 | Finance/Ops. |
| Expedite Liquor License | 4/1/2004 | 4/5/2004 | $0 | MP 1 | Finance/Ops. |
| Order POS System | 4/1/2004 | 4/5/2004 | $0 | MP 1 | Finance/Ops. |
| Begin Screening/Hiring | 4/1/2004 | 4/5/2004 | $0 | MP 4 | Personnel |
| Order Kitchen Equipment | 4/1/2004 | 4/5/2004 | $0 | MP 1 | Kitchen |
| Order Dining Room Equip | 4/1/2004 | 4/5/2004 | $0 | MP 1 | Finance/Ops. |
| Order Fountain & Decos | 4/1/2004 | 4/7/2004 | $0 | MP 1 | Finance/Ops. |
| Computerize Food Accts. | 4/1/2004 | 4/7/2004 | $0 | MP 3 | Kitchen |
| All Other Vendor Accounts | 4/1/2004 | 4/7/2004 | $0 | MP 3 | Kitchen |
| Produce Brochures | 4/1/2004 | 4/7/2004 | $0 | MP 4 | Marketing |
| Brochures To Printers | 4/1/2004 | 4/7/2004 | $0 | MP 4 | Marketing |
| Order Smallwares | 4/2/2004 | 4/7/2004 | $0 | MP 3 | Kitchen |
| Invites To Opening Events | 4/2/2004 | 4/7/2004 | $0 | MP 4 | Marketing |
| Dates Final Inspections | 4/2/2004 | 4/10/2004 | $0 | MP 1 | Finance/Ops. |
| First Hiring Goals Attained | 4/2/2004 | 4/10/2004 | $0 | MP 4 | Personnel |
| Signs/Exterior Neons | 4/2/2004 | 4/10/2004 | $0 | MP 1 | Finance/Ops. |
| Hire Tradesmen | 4/2/2004 | 4/10/2004 | $0 | MP 2 | Start-up |
| Purchase Catering Vehicle | 4/8/2004 | 4/10/2004 | $0 | MP 2 | Start-up |
| Alcohol Accounts | 4/8/2004 | 4/10/2004 | $0 | MP 2 | Beverages |
| Rec/Install Kitch Equipment | 4/8/2004 | 4/16/2004 | $0 | MP 3 | Kitchen |
| Install Dining Furn | 4/8/2004 | 4/16/2004 | $0 | MP 2 | Start-up |
| Install Fountain/Decos | 4/8/2004 | 4/16/2004 | $0 | MP 4 | Start-up |
| Install Signs & Neons | 4/8/2004 | 4/16/2004 | $0 | MP 2 | Start-up |
| Train POS System | 4/8/2004 | 4/16/2004 | $0 | MP 1 | Finance/Ops. |
| Final Test Of All Equipment | 4/15/2004 | 4/16/2004 | $0 | MP 1 | Finance/Ops. |
| Order Dry Goods | 4/15/2004 | 4/18/2004 | $0 | MP 3 | Kitchen |
| Building & Fire Inspect | 4/15/2004 | 4/18/2004 | $0 | MP 2 | Start-up |
| Receive Smallwares | 4/15/2004 | 4/18/2004 | $0 | MP 3 | Kitchen |
| Health Dept. Inspection | 4/15/2004 | 4/15/2004 | $0 | MP 3 | Kitchen |
| Receive Dry Goods | 4/15/2004 | 4/15/2004 | $0 | MP 3 | Kitchen |
| 2nd Hiring Goals | 4/15/2004 | 4/15/2004 | $0 | MP 4 | Personnel |
| Place 1st PFG (food) Order | 4/21/2004 | 4/21/2004 | $0 | MP 3 | Kitchen |
| Place 1st Alcohol Orders | 4/21/2004 | 4/21/2004 | $0 | MP 2 | Beverages |
| Begin Training FOH Staff | 5/1/2004 | 5/15/2004 | $0 | MP 4 | Personnel |
| Begin Training Bar Staff | 5/1/2004 | 5/15/2004 | $0 | MP 2 | Beverages |
| Begin Training Kitchen Staff | 5/1/2004 | 5/15/2004 | $0 | MP 3 | Kitchen |
| 1st Produ/Dairy/B
Personnel Plan Production Personnel – Assistant Chef: $1,750 (Year 1), $3,000 (Year 2), $3,036 (Year 3), $3,121 (Year 4), $3,184 (Year 5) – Lead Cook/Grill: $10,340 (Year 1), $17,725 (Year 2), $18,079 (Year 3), $18,441 (Year 4), $18,809 (Year 5) – Grill Two: $4,180 (Year 1), $7,165 (Year 2), $7,308 (Year 3), $7,454 (Year 4), $7,603 (Year 5) – Broiler Cook One: $10,240 (Year 1), $17,554 (Year 2), $17,905 (Year 3), $18,263 (Year 4), $18,628 (Year 5) – Broiler Cook Two: $4,180 (Year 1), $7,165 (Year 2), $7,308 (Year 3), $7,454 (Year 4), $8,050 (Year 5) – Fry Cook One: $8,600 (Year 1), $14,742 (Year 2), $15,037 (Year 3), $15,338 (Year 4), $15,644 (Year 5) – Fry Cook Two: $4,300 (Year 1), $7,371 (Year 2), $7,518 (Year 3), $7,668 (Year 4), $7,822 (Year 5) – Wheel Man One: $4,300 (Year 1), $7,371 (Year 2), $7,518 (Year 3), $7,668 (Year 4), $7,822 (Year 5) – Wheel Man Two: $2,780 (Year 1), $4,765 (Year 2), $4,860 (Year 3), $4,957 (Year 4), $5,056 (Year 5) – Salad Cook One: $8,600 (Year 1), $14,742 (Year 2), $15,037 (Year 3), $15,338 (Year 4), $15,644 (Year 5) – Salad Cook Two: $4,300 (Year 1), $7,371 (Year 2), $7,518 (Year 3), $7,668 (Year 4), $7,822 (Year 5) – Prep Cook One: $8,260 (Year 1), $14,160 (Year 2), $14,443 (Year 3), $14,732 (Year 4), $15,026 (Year 5) – Prep Cook Two: $8,260 (Year 1), $14,160 (Year 2), $14,443 (Year 3), $14,732 (Year 4), $15,026 (Year 5) – Prep Cook Three: $8,260 (Year 1), $14,160 (Year 2), $14,443 (Year 3), $14,732 (Year 4), $15,026 (Year 5) – Dish One: $7,440 (Year 1), $12,754 (Year 2), $13,009 (Year 3), $13,269 (Year 4), $13,534 (Year 5) – Dish Two: $4,350 (Year 1), $7,371 (Year 2), $7,518 (Year 3), $7,668 (Year 4), $7,882 (Year 5) – Subtotal: $100,140 (Year 1), $171,576 (Year 2), $174,980 (Year 3), $178,503 (Year 4), $182,578 (Year 5) Sales and Marketing Personnel – One (1) Floor Supervisor: $1,980 (Year 1), $3,360 (Year 2), $3,427 (Year 3), $3,495 (Year 4), $3,564 (Year 5) – One (1) Window Expediter: $3,380 (Year 1), $5,760 (Year 2), $5,875 (Year 3), $5,992 (Year 4), $6,111 (Year 5) – Ten (10) Full-time Servers: $27,264 (Year 1), $46,000 (Year 2), $46,000 (Year 3), $46,000 (Year 4), $46,000 (Year 5) – Ten (10) Part-time Servers: $13,632 (Year 1), $23,004 (Year 2), $23,004 (Year 3), $23,004 (Year 4), $23,004 (Year 5) – Four (4) Full-time Bartenders: $15,940 (Year 1), $26,880 (Year 2), $26,880 (Year 3), $26,880 (Year 4), $26,880 (Year 5) – Two (2) Full-time Hostesses: $5,120 (Year 1), $8,640 (Year 2), $8,640 (Year 3), $8,640 (Year 4), $8,640 (Year 5) – Three (3) Part-time Hostesses: $2,560 (Year 1), $4,320 (Year 2), $4,320 (Year 3), $4,320 (Year 4), $4,320 (Year 5) – Four (4) Bussers: $2,500 (Year 1), $4,200 (Year 2), $4,200 (Year 3), $4,200 (Year 4), $4,200 (Year 5) – Food Runner: $3,500 (Year 1), $6,000 (Year 2), $6,000 (Year 3), $6,000 (Year 4), $0 (Year 5) – Subtotal: $75,876 (Year 1), $128,164 (Year 2), $128,346 (Year 3), $128,531 (Year 4), $122,719 (Year 5) General and Administrative Personnel – Managing Partner 1: $17,500 (Year 1), $30,000 (Year 2), $30,000 (Year 3), $30,000 (Year 4), $30,000 (Year 5) – Managing Partner 2: $17,500 (Year 1), $30,000 (Year 2), $30,000 (Year 3), $30,000 (Year 4), $30,000 (Year 5) – Managing Partner 3: $17,500 (Year 1), $30,000 (Year 2), $30,000 (Year 3), $30,000 (Year 4), $30,000 (Year 5) – Managing Partner 4: $17,500 (Year 1), $30,000 (Year 2), $30,000 (Year 3), $30,000 (Year 4), $30,000 (Year 5) – Bookkeeper: $11,200 (Year 1), $19,200 (Year 2), $20,160 (Year 3), $21,168 (Year 4), $22,226 (Year 5) – Subtotal: $81,200 (Year 1), $139,200 (Year 2), $140,160 (Year 3), $141,168 (Year 4), $142,226 (Year 5) Other Personnel – Event by Event Basis TBD: $0 (Year 1), $0 (Year 2), $0 (Year 3), $0 (Year 4), $0 (Year 5) – Event by Event Basis TBD: $0 (Year 1), $0 (Year 2), $0 (Year 3), $0 (Year 4), $0 (Year 5) – Subtotal: $0 (Year 1), $0 (Year 2), $0 (Year 3), $0 (Year 4), $0 (Year 5) Total People: 0 (Year 1), 0 (Year 2), 0 (Year 3), 0 (Year 4), 0 (Year 5) Total Payroll: $257,216 (Year 1), $438,940 (Year 2), $443,486 (Year 3), $448,202 (Year 4), $447,523 (Year 5) Our main concerns will be efficient time management to control labor costs and effective purchasing, prep, and food handling to reduce food costs, especially for meats and seafood. Hiring and training skilled grill and broiler cooks and ensuring their retention will be crucial for managing meat and seafood costs. A skilled grill cook must consistently cook steaks without burning or undercooking them, and must carve prime rib accurately. To support growth, we will contribute to an expansion fund and seek investment from current and potential future investors or banks. Start-up Funding We are seeking $900,000 and will approach one, two, or three investment groups or conduct an SEC "Regulation D" equity offering. We prefer the equity offering as there is no fixed repayment schedule or debt service payments. The company’s structure may switch from a Limited Partnership to a stock "C" Corporation or Limited Liability Corporation "LLC". The legal firms representing each party will handle the preparation of investment documents, including a Private Placement Memorandum, Form D SEC Filing, Subscription Agreement, and Promissory Note. Start-up Funding: – Start-up Expenses to Fund: $324,500 – Start-up Assets to Fund: $645,500 – Total Funding Required: $970,000 Assets: – Non-cash Assets from Start-up: $65,000 – Cash Requirements from Start-up: $580,500 – Additional Cash Raised: $0 – Cash Balance on Starting Date: $580,500 – Total Assets: $645,500 Liabilities and Capital: – Liabilities: – Current Borrowing: $0 – Long-term Liabilities: $50,000 – Accounts Payable (Outstanding Bills): $10,000 – Other Current Liabilities (interest-free): $10,000 – Total Liabilities: $70,000 – Capital: – Planned Investment: – Investor Group One: $300,000 – Investor Group Two: $300,000 – Investor Group Three: $300,000 – Investor Contingency: $0 – Additional Investment Requirement: $0 – Total Planned Investment: $900,000 – Loss at Start-up (Start-up Expenses): ($324,500) – Total Capital: $575,500 – Total Capital and Liabilities: $645,500 – Total Funding: $970,000 Break-even Analysis The break-even analysis includes fixed costs such as rent, insurance, maintenance, investor note, and pre-opening amortization, as well as controllable costs like service labor, kitchen labor, management labor, payroll taxes, property taxes, excess rent, advertising, and legal/professional fees.
Break-even Analysis: Monthly Revenue Break-even: $64,679 Assumptions: – Average Percent Variable Cost: 31% – Estimated Monthly Fixed Cost: $44,890 Projected Profit and Loss: 2004 is not a full year on the yearly P&L. Highlights include a bottom line of better than 18% for every year. The numbers reflect realism in the start-up and continuing operations of the restaurant. We aggressively contribute to an expansion fund starting in 2005. We immediately begin accruing for vacations and budgeting money from the insurance line for health benefits, showing our early commitment to the future prosperity of our staff. These numbers are an excellent indication that our investors, owners, partners, and staff will all prosper and grow with the Fire Fountain Grille!
Pro Forma Profit and Loss |
|||||
| Pro Forma Profit and Loss | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Sales | $1,297,957 | $2,360,000 | $2,548,800 | $2,752,702 | $2,972,917 |
| Direct Cost of Sales | $397,121 | $732,671 | $789,990 | $853,198 | $921,455 |
| Production Payroll | $100,140 | $171,576 | $174,980 | $178,503 | $182,578 |
| Other Costs of Goods | $0 | $0 | $0 | $0 | $0 |
| Total Cost of Sales | $497,261 | $904,247 | $964,970 | $1,031,701 | $1,104,033 |
| Gross Margin | $800,696 | $1,455,753 | $1,583,830 | $1,721,001 | $1,868,884 |
| Gross Margin % | 61.69% | 61.68% | 62.14% | 62.52% | 62.86% |
| Operating Expenses | |||||
| Sales and Marketing Payroll | $75,876 | $128,164 | $128,346 | $128,531 | $122,719 |
| Operating Supplies | $12,940 | $23,600 | $27,840 | $32,860 | $38,770 |
| Janitorial | $10,500 | $18,000 | $18,000 | $18,000 | $18,000 |
| Repairs | $1,750 | $3,000 | $6,000 | $6,000 | $9,000 |
| Aprons, Towels & Napkins | $7,000 | $12,000 | $12,000 | $12,000 | $12,000 |
| Menus | $1,050 | $1,800 | $1,800 | $1,800 | $1,800 |
| Miscellaneous Supplies | $1,750 | $3,000 | $3,000 | $3,000 | $3,000 |
| Miscellaneous Purchases | $51,500 | $3,000 | $3,000 | $3,000 | $3,000 |
| Complimentary Meals or Drinks For PR | $5,250 | $9,000 | $9,000 | $9,000 | $9,000 |
| Advertising/Promotion | $3,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Credit Card Charges | $10,760 | $23,600 | $27,840 | $32,680 | $38,775 |
| Fraud Credit Cards/Checks | $1,050 | $1,800 | $1,800 | $1,800 | $1,800 |
| Professional Fees | $1,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Membership Fees | $525 | $900 | $900 | $900 | $900 |
| Uniforms | $600 | $1,800 | $1,800 | $1,800 | $1,800 |
| Travel | $0 | $3,000 | $3,000 | $6,000 | $6,000 |
| Employee Discounts | $3,500 | $6,000 | $6,000 | $6,000 | $6,000 |
| Total Sales and Marketing Expenses | $188,051 | $247,664 | $259,326 | $272,371 | $281,564 |
| Sales and Marketing % | 14.49% | 10.49% | 10.17% | 9.89% | 9.47% |
| General and Administrative Payroll | $81,200 | $139,200 | $140,160 | $141,168 | $142,226 |
| Depreciation | $13,500 | $24,000 | $24,000 | $24,000 | $24,000 |
| Leased Equipment | $1,050 | $1,800 | $1,800 | $1,800 | $1,800 |
| Utilities | $58,000 | $99,000 | $105,000 | $108,000 | $111,000 |
| Amortization | $35,000 | $60,000 | $60,000 | $60,000 | $60,000 |
| Debt Service | $25,000 | $75,000 | $150,000 | $175,000 | $175,000 |
| Insurance | $21,000 | $36,000 | $38,000 | $40,000 | $42,000 |
| Excess Insurance | $3,500 | $6,000 | $6,500 | $7,000 | $7,500 |
| Property Taxes | $10,500 | $18,000 | $19,000 | $20,000 | $21,000 |
| Excess Taxes | $3,500 | $6,000 | $6,200 | $6,300 | $6,400 |
| Vacation Accrual | $2,450 | $4,200 | $4,300 | $4,500 | $4,700 |
| Base Rent | $42,000 | $72,000 | $72,000 | $72,000 | $72,000 |
| Percentage Rent | $12,958 | $23,600 | $27,848 | $32,860 | $38,775 |
| CAM Rent | $5,250 | $9,000 | $9,500 | $10,000 | $10,500 |
| Payroll Taxes | $25,722 | $43,894 | $44,349 | $44,820 | $44,752 |
| Other General and Administrative Expenses | $0 | $0 | $0 | $0 | $0 |
| Total General and Administrative Expenses | $340,630 | $617,694 | $708,657 | $747,448 | $761,653 |
| General and Administrative % | 26.24% | 26.17% | 27.80% | 27.15% | 25.62% |
| Other Expenses: | |||||
| Other Payroll | $0 | $0 | $0 | $0 | $0 |
| Consultants | $0 | $0 | $0 | $0 | $0 |
| Expansion Fund | $10,000 | $50,000 | $40,000 | $75,000 | $125,000 |
| Total Other Expenses | $10,000 | $50,000 | $40,000 | $75,000 | $125,000 |
| Other % | 0.77% | 2.12% | 1.57% | 2.72% | 4.20% |
| Total Operating Expenses | $538,681 | $915,358 | $1,007,983 | $1,094,819 | $1,168,217 |
| Profit Before Interest and Taxes | $262,015 | $540,395 | $575,847 | $626,182 | $700,667 |
| EBITDA | $275,515 | $564,395 | $599,847 | $650,182 | $724,667 |
| Interest Expense | $4,928 | $3,916 | $2,860 | $1,804 | $748 |
| Taxes Incurred | $38,510 | $80,472 | $93,110 | $93,657 | $113,737 |
| Net Profit | $218,577 | $456,007 | $479,877 | $530,721 | $586,182 |
| Net Profit/Sales | 16.84% | 19.32% | 18.83% | 19.28% | 19.72% |
8.4 Projected Cash Flow
The cash flow depends on assumptions for daily operational management, traffic counts, inventory turnover, payment days, and accounts receivable management. We will need no new financing until we open our second unit.
Initial projections are a sales-to-investment ratio over 2-to-1, return on investment over 30 percent, and return on equity of 20 percent-plus.
Pro Forma Cash Flow:
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Cash from Operations
Cash Sales $1,297,957 $2,360,000 $2,548,800 $2,752,702 $2,972,917
Subtotal Cash from Operations $1,297,957 $2,360,000 $2,548,800 $2,752,702 $2,972,917
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $1,297,957 $2,360,000 $2,548,800 $2,752,702 $2,972,917
Expenditures
Expenditures from Operations
Cash Spending $257,216 $438,940 $443,486 $448,202 $447,523
Bill Payments $738,769 $1,511,347 $1,600,633 $1,747,267 $1,912,087
Subtotal Spent on Operations $995,985 $1,950,287 $2,044,119 $2,195,469 $2,359,610
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $9,600 $9,600 $9,600 $9,600 $9,600
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $1,005,585 $1,959,887 $2,053,719 $2,205,069 $2,369,210
Net Cash Flow $292,372 $400,113 $495,081 $547,633 $603,707
Cash Balance $872,872 $1,272,985 $1,768,066 $2,315,698 $2,919,405
Projected Balance Sheet:
The balance sheet is solid, with no projected trouble meeting debt obligations as long as objectives are achieved.
Pro Forma Balance Sheet:
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash $872,872 $1,272,985 $1,768,066 $2,315,698 $2,919,405
Inventory $61,302 $113,099 $121,947 $131,703 $142,239
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $934,174 $1,386,084 $1,890,013 $2,447,401 $3,061,645
Long-term Assets
Long-term Assets $65,000 $65,000 $65,000 $65,000 $65,000
Accumulated Depreciation $13,500 $37,500 $61,500 $85,500 $109,500
Total Long-term Assets $51,500 $27,500 $3,500 ($20,500) ($44,500)
Total Assets $985,674 $1,413,584 $1,893,513 $2,426,901 $3,017,145
Liabilities and Capital:
Year 1 Year 2 Year 3 Year 4 Year 5
Current Liabilities
Accounts Payable $141,197 $122,700 $132,352 $144,619 $158,281
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $10,000 $10,000 $10,000 $10,000 $10,000
Subtotal Current Liabilities $151,197 $132,700 $142,352 $154,619 $168,281
Long-term Liabilities $40,400 $30,800 $21,200 $11,600 $2,000
Total Liabilities $191,597 $163,500 $163,552 $166,219 $170,281
Paid-in Capital $900,000 $900,000 $900,000 $900,000 $900,000
Retained Earnings ($324,500) ($105,923) $350,084 $829,961 $1,360,682
Earnings $218,577 $456,007 $479,877 $530,721 $586,182
Total Capital $794,077 $1,250,084 $1,729,961 $2,260,682 $2,846,864
Total Liabilities and Capital $985,674 $1,413,584 $1,893,513 $2,426,901 $3,017,145
The table below shows the main business ratios and compares them to industry ratios for Steak Restaurants – SIC code 5812.0802.
Ratio Analysis:
Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile
Sales Growth 0.00% 81.82% 8.00% 8.00% 8.00% 6.96%
Percent of Total Assets
Inventory 6.22% 8.00% 6.44% 5.43% 4.71% 3.90%
Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 28.39%
Total Current Assets 94.78% 98.05% 99.82% 100.84% 101.47% 37.68%
Long-term Assets 5.22% 1.95% 0.18% -0.84% -1.47% 62.32%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Sales Forecast
Food: $0, $0, $0, $0, $0, $163,188, $144,048, $154,627, $135,464, $138,591, $138,591, $183,844
Beverage: $0, $0, $0, $0, $0, $7,582, $6,903, $7,155, $4,956, $5,133, $5,133, $6,726
Liquor: $0, $0, $0, $0, $0, $9,127, $7,911, $8,439, $7,764, $7,955, $7,955, $10,739
Beer: $0, $0, $0, $0, $0, $12,677, $11,646, $12,517, $10,308, $11,018, $11,018, $14,617
Wine: $0, $0, $0, $0, $0, $8,024, $6,460, $6,060, $6,707, $8,401, $8,401, $8,272
Total Sales: $0, $0, $0, $0, $0, $200,598, $176,968, $188,798, $165,199, $171,098, $171,098, $224,198
Direct Cost of Sales
Food: $0, $0, $0, $0, $0, $59,500, $52,500, $56,000, $47,600, $47,850, $46,400, $49,856
Beverage: $0, $0, $0, $0, $0, $514, $468, $485, $336, $348, $348, $456
Liquor: $0, $0, $0, $0, $0, $1,315, $1,139, $1,215, $1,052, $1,011, $943, $1,274
Beer: $0, $0, $0, $0, $0, $2,471, $2,270, $2,439, $1,921, $2,054, $1,960, $2,601
Wine: $0, $0, $0, $0, $0, $1,566, $1,478, $1,386, $1,477, $1,780, $1,566, $1,542
Subtotal Direct Cost of Sales: $0, $0, $0, $0, $0, $65,366, $57,855, $61,525, $52,386, $53,043, $51,217, $55,729
Personnel Plan
Production Personnel
Assistant Chef: $0, $0, $0, $0, $0, $300, $240, $240, $240, $240, $240, $250
Lead Cook/Grill: $0, $0, $0, $0, $0, $1,700, $1,440, $1,440, $1,440, $1,440, $1,440
Grill Two: $0, $0, $0, $0, $0, $700, $580, $580, $580, $580, $580
Broiler Cook One: $0, $0, $0, $0, $0, $1,600, $1,440, $1,440, $1,440, $1,440, $1,440
Broiler Cook Two: $0, $0, $0, $0, $0, $700, $580, $580, $580, $580, $580
Fry Cook One: $0, $0, $0, $0, $0, $1,400, $1,200, $1,200, $1,200, $1,200, $1,200
Fry Cook Two: $0, $0, $0, $0, $0, $700, $600, $600, $600, $600, $600
Wheel Man One: $0, $0, $0, $0, $0, $700, $600, $600, $600, $600, $600
Wheel Man Two: $0, $0, $0, $0, $0, $500, $380, $380, $380, $380, $
Review: Pro Forma Profit and Loss:
Pro Forma Profit and Loss provides a detailed breakdown of sales and expenses over a twelve-month period. It is a useful tool for business owners to evaluate the financial health of their company and make informed decisions.
The table includes various categories such as Sales, Direct Cost of Sales, Production Payroll, and Other Costs of Goods. These categories are further divided into twelve monthly columns to provide a comprehensive view of the financials.
One notable aspect of the table is the Gross Margin and Gross Margin %. Gross Margin represents the difference between Sales and Direct Cost of Sales, while Gross Margin % shows the percentage of Gross Margin in relation to Sales. This information helps determine the profitability of the business.
Operating Expenses are another crucial part of the Pro Forma Profit and Loss. It includes categories like Sales and Marketing Expenses and General and Administrative Expenses. These expenses are broken down further into specific subcategories, such as Sales and Marketing Payroll, Operating Supplies, Janitorial, Repairs, Aprons, Towels, and Napkins, Menus, Miscellaneous Supplies, Miscellaneous Purchases, Complimentary Meals or Drinks for PR, Advertising/Promotion, Credit Card Charges, Fraud Credit Cards/Checks, Professional Fees, Membership Fees, Uniforms, and Travel.
The table provides the total amounts for each category and calculates the percentage of Sales and Marketing Expenses and General and Administrative Expenses in relation to overall revenue.
Other Expenses, including Other Payroll, Consultants, and Expansion Fund, are also accounted for in the table. These expenses represent additional costs that may arise in running a business.
The Pro Forma Profit and Loss concludes with information on Profit Before Interest and Taxes (EBITDA), Interest Expense, Taxes Incurred, Net Profit, and Net Profit/Sales. These figures provide insights into the financial performance and profitability of the business.
In conclusion, the Pro Forma Profit and Loss table is a valuable tool for understanding the financial aspect of a business. By carefully analyzing the data, business owners can make informed decisions to improve profitability and financial stability.
Pro Forma 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 Operations | 200,598 | 176,968 | 188,798 | 165,199 | 171,098 | 171,098 | 224,198 | |||||||
| Cash Sales | $0 | $0 | $0 | $0 | $0 | $200,598 | $176,968 | $188,798 | $165,199 | $171,098 | $171,098 | $224,198 | ||
| Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $0 | $200,598 | $176,968 | $188,798 | $165,199 | $171,098 | $171,098 | $224,198 | ||
| Additional Cash Received | ||||||||||||||
| Sales Tax, VAT, HST/GST Received | 0.00% | $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 | ||
| New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| Subtotal Cash Received | $0 | $0 | $0 | $0 | $0 | $200,598 | $176,968 | $188,798 | $165,199 | $171,098 | $171,098 | $224,198 | ||
| 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 | $0 | $0 | $0 | $0 | $0 | $39,640 | $36,261 | $36,261 | $36,261 | $36,261 | $36,261 | $36,271 | ||
| Bill Payments | $10,012 | $347 | $392 | $386 | $379 | $7,995 | $224,568 | $96,396 | $113,157 | $87,893 | $100,059 | $97,187 | ||
| Subtotal Spent on Operations | $10,012 | $347 | $392 | $386 | $379 | $47,635 | $260,829 | $132,657 | $149,418 | $124,154 | $136,320 | $133,458 | ||
| Additional Cash Spent | ||||||||||||||
| Sales 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 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | $800 | ||
| 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 | $0 | $0 | $0 | ||
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||
| Subtotal Cash Spent | $10,812 | $1,147 | $1,192 | $1,186 | $1,179 | $48,435 | $261,629 | $133,457 | $150,218 | $124,954 | $137,120 | $134,258 | ||
| Net Cash Flow | ($10,812) | ($1,147) | ($1,192) | ($1,186) | ($1,179) | $152,163 | ($84,661) | $55,341 | $14,981 | $46,144 | $33,978 | $89,940 | ||
| Cash Balance | $569,688 | $568,541 | $567,349 | $566,164 | $564,984 | $717,148 | $632,487 | $687,828 | $702,809 | $748,954 | $782,932 | $872,872 |
Pro Forma 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 12 | ||
| Assets | Starting Balances | ||||||||||||
| Current Assets | |||||||||||||
| Cash | $580,500 | $569,688 | $568,541 | $567,349 | $566,164 | $564,984 | $717,148 | $632,487 | $687,828 | $702,809 | $748,954 | $782,932 | $872,872 |
| Inventory | $0 | $0 | $0 | $0 | $0 | $0 | $71,903 | $63,641 | $67,678 | $57,625 | $58,347 | $56,339 | $61,302 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $580,500 | $569,688 | $568,541 | $567,349 | $566,164 | $564,984 | $789,050 | $696,127 | $755,506 | $ |
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