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The Bronx Deli and Bakery
Executive Summary
The Bronx Deli and Bakery will offer customers New York City deli bakery items and sandwiches. It is a restaurant, a bakery and a coffeehouse all rolled into one. Located in the heart of the growing Willow Creek section of Richmond, the Bronx Deli and Bakery will serve a community of 25,000 residents that is made up of students attending State University and families attracted to the new home construction in the area.
The Bronx Deli and Bakery will have the advantage of the foot traffic in the Willow Creek retail area which is the home of the Willow Creek Arts and Craft Fair, as well as the home of numerous art and craft shops.
1.1 Mission
The Bronx Deli and Bakery is committed to providing a slice of New York in the Willow Creek section of Richmond.  We will offer our customers the best sandwiches and bakery items at affordable prices.
Company Summary
The Bronx Deli and Bakery is located in the heart of the Willow Creek section of Richmond. The owner, Barry Cohn, is opening the Bronx Deli and Bakery in response to the limited number of eating places located in the Willow Creek area. The bakery will offer New York City deli bakery items and sandwiches. We will focus on bringing in the customer who visits the arts and crafts stores and is looking for a warm and comfortable place to relax and enjoy excellent food.
2.1 Company Ownership
The Bronx Deli and Bakery is owned by Barry Cohn.
2.2 Start-up Summary
The start-up cost of the Bronx Deli and Bakery will consist primarily of kitchen equipment and dining set-up. Barry Cohn will invest $80,000. He will also secure a $50,000 SBA loan.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $1,000 |
| Insurance | $1,000 |
| Rent | $1,800 |
| Dining Set-Up | $8,000 |
| Total Start-up Expenses | $11,800 |
| Start-up Assets | |
| Cash Required | $63,200 |
| Start-up Inventory | $5,000 |
| Other Current Assets | $0 |
| Long-term Assets | $50,000 |
| Total Assets | $118,200 |
| Total Requirements | $130,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $11,800 |
| Start-up Assets to Fund | $118,200 |
| Total Funding Required | $130,000 |
| Assets | |
| Non-cash Assets from Start-up | $55,000 |
| Cash Requirements from Start-up | $63,200 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $63,200 |
| Total Assets | $118,200 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $50,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $50,000 |
| Capital | |
| Planned Investment | |
| Barry Cohn | $80,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $80,000 |
| Loss at Start-up (Start-up Expenses) | ($11,800) |
| Total Capital | $68,200 |
| Total Capital and Liabilities | $118,200 |
| Total Funding | $130,000 |
Products
The Bronx Deli and Bakery will offer customers New York City deli bakery items and sandwiches. The menu will include:
- Pastry/desserts;
- Sandwiches;
- Soups;
- Quiches;
- Espresso;
- Drinks.
Market Analysis Summary
In the past ten years, the Willow Creek section of Richmond has grown tremendously. The growing student community combined with the customers of the area’s arts and craft stores are a perfect support base for the Bronx Bakery.
Currently, the area is served by three small restaurants and two coffee shops. None of these restaurants or shops carry the menu items found at the Bronx Bakery. In addition, the bakery is located on Steward Street which is the area’s main street. The foot traffic on Steward Street is very heavy with arts and crafts shoppers and State University students.
4.1 Market Segmentation
The Bronx Deli and Bakery will focus on two significant customer groups:
- Arts and Craft Shoppers: The community is home to a number of artists and craft people that operate the Willow Creek Craft Fair. This creates a festive environment in the Willow Creek central commercial/retail area that attract shoppers each weekend. The Bronx Deli and Bakery is adjacent to the Craft Fair which is one block south of Steward Street. The traffic from the fair to the Steward Street shops goes right past the Bronx Bakery.
- Students: The Bronx Deli and Bakery will be a half block from campus. A significant number of students spend money on food and drink in the Willow Creek area. Last year, it was estimated that students spent $20 million dollars on products, services and entertainment in the Willow Creek area. The bakery’s location will be a convenient place to grab a bite or a sweet on the way to or from classes.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| Arts and Craft Shoppers | 15% | 9,000 | 10,350 | 11,903 | 13,688 | 15,741 | 15.00% |
| Students | 10% | 12,000 | 13,200 | 14,520 | 15,972 | 17,569 | 10.00% |
| Total | 12.22% | 21,000 | 23,550 | 26,423 | 29,660 | 33,310 | 12.22% |
Strategy and Implementation Summary
The Bronx Deli and Bakery will promote the store opening. We will have live music and food in front of the bakery opening weekend. The Willow Creek Craft Fair will provide excellent foot traffic for our opening.
We will advertise in the university daily student newspaper as well as the local area advertising flyer. In the advertisements for the market opening, we will have 2 for 1 specials on pastry and sandwiches. We will continue this discount for the first month of operation.
5.1 Competitive Edge
The Bronx Bakery’s competitive edge is:
- Location: The Bronx Deli and Bakery is located in the heart of the Willow Creek section of Richmond. The foot traffic in the Willow Creek retail area is very strong. The weekend arts and craft fair will provide excellent foot traffic. In addition, Stewart Street is a major walk way for students going to and from classes at State University.
- New York Focus of Menu: The menu for the Bronx Deli and Bakery is a perfect addition to the arts and craft focus of the businesses in the area. We offer the customer a chance to step out of Richmond and into a New York City deli, complete with the sights and sounds. Lunch becomes an event and even the purchasing of a bakery item, to go, leaves the customers smiling.
5.2 Sales Strategy
The sales strategy of the Bronx Deli and Bakery is simple. The key to customer satisfaction is providing an exceptional product at affordable prices in an environment that is as entertaining as the food.
5.2.1 Sales Forecast
Cost control is a critical focus of our sales forecast. We will adhere to the following gross margin % for menu items:
- Coffee drinks: 14%
- Lunch items: 30%
- Bakery goods: 26%
The following is the Bronx Deli and Bakery’s sales forecast for three years.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Bakery | $127,000 | $145,000 | $165,000 |
| Sandwiches | $247,000 | $272,000 | $302,000 |
| Drinks | $48,500 | $52,000 | $55,000 |
| Total Sales | $422,500 | $469,000 | $522,000 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Bakery | $32,400 | $38,000 | $42,000 |
| Sandwiches | $82,900 | $86,000 | $96,000 |
| Drinks | $6,060 | $6,400 | $7,000 |
| Subtotal Direct Cost of Sales | $121,360 | $130,400 | $145,000 |
Management Summary
Barry will manage the daily operation of the Bronx Deli and Bakery. He has ten years of experience working in the restaurant industry. Before relocating to Richmond, Barry was manager of two deli/bakeries in New York City. Barry was the Bakery Manager for Zoey’s Deli and Bakery for six years, managing a staff of five. During that time, the business grew by 15% each year.
In 1996, Barry became the Manager of Sherman’s Deli and Bakery where he managed a staff of ten. For the four years Barry was the manager he was able to cut production cost by 16%.
6.1 Personnel Plan
Besides Barry Cohn, the Bronx Deli and Bakery will have a staff of seven:
- Kitchen staff (3);
- Baker (2);
- Waiters/waitresses (2).
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Barry Cohn | $33,600 | $36,000 | $39,000 |
| Kitchen Staff | $84,000 | $89,000 | $94,000 |
| Waiters/Waitresses | $39,600 | $41,000 | $43,000 |
| Baking Staff | $48,000 | $51,000 | $54,000 |
| Total People | 9 | 9 | 9 |
| Total Payroll | $205,200 | $217,000 | $230,000 |
Financial Plan
The following is the Financial plan for the Bronx Deli and Bakery.
7.1 Break-even Analysis
The following table and chart shows our Break-even Analysis.
| Break-even Analysis | |
| Monthly Revenue Break-even | $32,365 |
| Assumptions: | |
| Average Percent Variable Cost | 29% |
| Estimated Monthly Fixed Cost | $23,068 |
7.2 Projected Profit and Loss
The following table and charts highlight the projected profit and loss for three years.
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $422,500 | $469,000 | $522,000 |
| Direct Cost of Sales | $121,360 | $130,400 | $145,000 |
| Other Production Expenses | $0 | $0 | $0 |
| Total Cost of Sales | $121,360 | $130,400 | $145,000 |
| Gross Margin | $301,140 | $338,600 | $377,000 |
| Gross Margin % | 71.28% | 72.20% | 72.22% |
| Expenses | |||
| Payroll | $205,200 | $217,000 | $230,000 |
| Sales and Marketing and Other Expenses | $7,000 | $10,000 | $13,000 |
| Depreciation | $1,440 | $1,440 | $1,440 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4,800 | $4,800 | $4,800 |
| Insurance | $6,000 | $6,000 | $6,000 |
| Rent | $21,600 | $21,600 | $21,600 |
| Payroll Taxes | $30,780 | $32,550 | $34,500 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $276,820 | $293,390 | $311,340 |
| Profit Before Interest and Taxes | $24,320 | $45,210 | $65,660 |
| EBITDA | $25,760 | $46,650 | $67,100 |
| Interest Expense | $4,459 | $3,501 | $2,501 |
| Taxes Incurred | $5,958 | $12,513 | $18,948 |
| Net Profit | $13,903 | $29,197 | $44,211 |
| Net Profit/Sales | 3.29% | 6.23% | 8.47% |
7.3 Projected Cash Flow
The following table and chart highlight the projected cash flow for three years.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $422,500 | $469,000 | $522,000 |
| Subtotal Cash from Operations | $422,500 | $469,000 | $522,000 |
| Additional Cash Received | |||
| Sales 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 | $0 | $0 | $0 |
| Subtotal Cash Received | $422,500 | $469,000 | $522,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $205,200 | $217,000 | $230,000 |
| Bill Payments | $189,370 | $226,386 | $246,000 |
| Subtotal Spent on Operations | $394,570 | $443,386 | $476,000 |
| Additional Cash Spent | |||
| Sales 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 | $9,996 | $9,996 | $9,996 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $404,566 | $453,382 | $485,996 |
| Net Cash Flow | $17,934 | $15,618 | $36,004 |
| Cash Balance | $81,134 | $96,752 | $132,756 |
7.4 Projected Balance Sheet
The following table highlights the projected balance sheet for three years.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $81,134 | $96,752 | $132,756 |
| Inventory | $14,630 | $15,720 | $17,480 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $95,764 | $112,471 | $150,235 |
| Long-term Assets | |||
| Long-term Assets | $50,000 | $50,000 | $50,000 |
| Accumulated Depreciation | $1,440 | $2,880 | $4,320 |
| Total Long-term Assets | $48,560 | $47,120 | $45,680 |
| Total Assets | $144,324 | $159,591 | $195,915 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $22,217 | $18,284 | $20,392 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $22,217 | $18,284 | $20,392 |
| Long-term Liabilities | $40,004 | $30,008 | $20,012 |
| Total Liabilities | $62,221 | $48,292 | $40,404 |
| Paid-in Capital | $80,000 | $80,000 | $80,000 |
| Retained Earnings | ($11,800) | $2,103 | $31,300 |
| Earnings | $13,903 | $29,197 | $44,211 |
| Total Capital | $82,103 | $111,300 | $155,511 |
| Total Liabilities and Capital | $144,324 | $159,591 | $195,915 |
| Net Worth | $82,103 | $111,300 | $155,511 |
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5812, Eating Places, are shown for comparison.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 11.01% | 11.30% | 7.60% |
| Percent of Total Assets | ||||
| Inventory | 10.14% | 9.85% | 8.92% | 3.60% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 35.60% |
| Total Current Assets | 66.35% | 70.47% | 76.68% | 43.70% |
| Long-term Assets | 33.65% | 29.53% | 23.32% | 56.30% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 15.39% | 11.46% | 10.41% | 32.70% |
| Long-term Liabilities | 27.72% | 18.80% | 10.21% | 28.50% |
| Total Liabilities | 43.11% | 30.26% | 20.62% | 61.20% |
| Net Worth | 56.89% | 69.74% | 79.38% | 38.80% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 71.28% | 72.20% | 72.22% | 60.50% |
| Selling, General & Administrative Expenses | 67.99% | 65.97% | 63.75% | 39.80% |
| Advertising Expenses | 1.66% | 2.13% | 2.49% | 3.20% |
| Profit Before Interest and Taxes | 5.76% | 9.64% | 12.58% | 0.70% |
| Main Ratios | ||||
| Current | 4.31 | 6.15 | 7.37 | 0.98 |
| Quick | 3.65 | 5.29 | 6.51 | 0.65 |
| Total Debt to Total Assets | 43.11% | 30.26% | 20.62% | 61.20% |
| Pre-tax Return on Net Worth | 24.19% | 37.47% | 40.61% | 1.70% |
| Pre-tax Return on Assets | 13.76% | 26.14% | 32.24% | 4.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 3.29% | 6.23% | 8.47% | n.a |
| Return on Equity | 16.93% | 26.23% | 28.43% | n.a |
| Activity Ratios | ||||
| Inventory Turnover | 10.91 | 8.59 | 8.74 | n.a |
| Accounts Payable Turnover | 9.52 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 33 | 28 | n.a |
| Total Asset Turnover | 2.93 | 2.94 | 2.66 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.76 | 0.43 | 0.26 | n.a |
| Current Liab. to Liab. | 0.36 | 0.38 | 0.50 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $73,547 | $94,188 | $129,843 | n.a |
| Interest Coverage | 5.45 | 12.91 | 26.25 | n.a |
| Additional Ratios | ||||
| Assets to Sales | 0.34 | 0.34 | 0.38 | n.a |
| Current Debt/Total Assets | 15% | 11% | 10% | n.a |
| Acid Test | 3.65 | 5.29 | 6.51 | n.a |
| Sales/Net Worth | 5.15 | 4.21 | 3.36 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Appendix
| 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 | ||
| Sales | |||||||||||||
| Bakery | 0% | $8,000 | $9,000 | $9,000 | $11,000 | $11,000 | $11,000 | $10,000 | $9,000 | $10,000 | $12,000 | $13,000 | $14,000 |
| Sandwiches | 0% | $15,000 | $16,000 | $17,000 | $19,000 | $20,000 | $22,000 | $20,000 | $19,000 | $22,000 | $24,000 | $26,000 | $27,000 |
| Drinks | 0% | $3,000 | $3,500 | $4,000 | $4,000 | $5,000 | $5,000 | $4,000 | $3,000 | $3,000 | $4,000 | $5,000 | $5,000 |
| Total Sales | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| 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 | |
| Bakery | $2,000 | $2,200 | $2,200 | $2,800 | $2,800 | $2,800 | $2,500 | $2,400 | $2,500 | $3,000 | $3,500 | $3,700 | |
| Sandwiches | $5,000 | $5,400 | $5,600 | $6,500 | $6,800 | $7,400 | $6,800 | $6,500 | $7,400 | $8,000 | $8,500 | $9,000 | |
| Drinks | $400 | $460 | $500 | $500 | $600 | $600 | $500 | $400 | $400 | $500 | $600 | $600 | |
| Subtotal Direct Cost of Sales | $7,400 | $8,060 | $8,300 | $9,800 | $10,200 | $10,800 | $9,800 | $9,300 | $10,300 | $11,500 | $12,600 | $13,300 | |
| 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 12 | ||
| Barry Cohn | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
| Kitchen Staff | 0% | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Waiters/Waitresses | 0% | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 | $3,300 |
| Baking Staff | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
| Total People | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | |
| Total Payroll | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | |
| General Assumptions | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 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 | Month 12 | ||
| Sales | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| Direct Cost of Sales | $7,400 | $8,060 | $8,300 | $9,800 | $10,200 | $10,800 | $9,800 | $9,300 | $10,300 | $11,500 | $12,600 | $13,300 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $7,400 | $8,060 | $8,300 | $9,800 | $10,200 | $10,800 | $9,800 | $9,300 | $10,300 | $11,500 | $12,600 | $13,300 | |
| Gross Margin | $18,600 | $20,440 | $21,700 | $24,200 | $25,800 | $27,200 | $24,200 | $21,700 | $24,700 | $28,500 | $31,400 | $32,700 | |
| Gross Margin % | 71.54% | 71.72% | 72.33% | 71.18% | 71.67% | 71.58% | 71.18% | 70.00% | 70.57% | 71.25% | 71.36% | 71.09% | |
| Expenses | |||||||||||||
| Payroll | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | |
| Sales and Marketing and Other Expenses | $1,000 | $1,000 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | $120 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
| Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Rent | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | $1,800 | |
| Payroll Taxes | 15% | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 | $2,565 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $23,485 | $23,485 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | $22,985 | |
| Profit Before Interest and Taxes | ($4,885) | ($3,045) | ($1,285) | $1,215 | $2,815 | $4,215 | $1,215 | ($1,285) | $1,715 | $5,515 | $8,415 | $9,715 | |
| EBITDA | ($4,765) | ($2,925) | ($1,165) | $1,335 | $2,935 | $4,335 | $1,335 | ($1,165) | $1,835 | $5,635 | $8,535 | $9,835 | |
| Interest Expense | $410 | $403 | $396 | $389 | $382 | $375 | $368 | $361 | $354 | $347 | $340 | $333 | |
| Taxes Incurred | ($1,588) | ($1,034) | ($504) | $248 | $730 | $1,152 | $254 | ($494) | $408 | $1,550 | $2,422 | $2,814 | |
| Net Profit | ($3,706) | ($2,413) | ($1,177) | $578 | $1,703 | $2,688 | $593 | ($1,152) | $953 | $3,617 | $5,652 | $6,567 | |
| Net Profit/Sales | -14.26% | -8.47% | -3.92% | 1.70% | 4.73% | 7.07% | 1.74% | -3.72% | 2.72% | 9.04% | 12.85% | 14.28% | |
| 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 | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| Subtotal Cash from Operations | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| Additional Cash Received | |||||||||||||
| Sales 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 | |
| New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Cash Received | $26,000 | $28,500 | $30,000 | $34,000 | $36,000 | $38,000 | $34,000 | $31,000 | $35,000 | $40,000 | $44,000 | $46,000 | |
| 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 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | $17,100 | |
| Bill Payments | $521 | $15,586 | $14,413 | $14,342 | $17,841 | $17,558 | $18,630 | $15,064 | $14,500 | $18,013 | $20,544 | $22,359 | |
| Subtotal Spent on Operations | $17,621 | $32,686 | $31,513 | $31,442 | $34,941 | $34,658 | $35,730 | $32,164 | $31,600 | $35,113 | $37,644 | $39,459 | |
| 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 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
| 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 | $18,454 | $33,519 | $32,346 | $32,275 | $35,774 | $35,491 | $36,563 | $32,997 | $32,433 | $35,946 | $38,477 | $40,292 | |
| Net Cash Flow | $7,546 | ($5,019) | ($2,346) | $1,725 | $226 | $2,509 | ($2,563) | ($1,997) | $2,567 | $4,054 | $5,523 | $5,708 | |
| Cash Balance | $70,746 | $65,727 | $63,381 | $65,107 | $65,333 | $67,842 | $65,279 | $63,282 | $65,849 | $69,903 | $75,426 | $81,134 | |
| 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 | $63,200 | $70,746 | $65,727 | $63,381 | $65,107 | $65,333 | $67,842 | $65,279 | $63,282 | $65,849 | $69,903 | $75,426 | $81,134 |
| Inventory | $5,000 | $8,140 | $8,866 | $9,130 | $10,780 | $11,220 | $11,880 | $10,780 | $10,230 | $11,330 | $12,650 | $13,860 | $14,630 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $68,200 | $78,886 | $74,593 | $72,511 | $75,887 | $76,553 | $79,722 | $76,059 | $73,512 | $77,179 | $82,553 | $89,286 | $95,764 |
| Long-term Assets | |||||||||||||
| Long-term Assets | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
| Accumulated Depreciation | $0 | $120 | $240 | $360 | $480 | $600 | $720 | $840 | $960 | $1,080 | $1,200 | $1,320 | $1,440 |
| Total Long-term Assets | $50,000 | $49,880 | $49,760 | $49,640 | $49,520 | $49,400 | $49,280 | $49,160 | $49,040 | $48,920 | $48,800 | $48,680 | $48,560 |
| Total Assets | $118,200 | $128,766 | $124,353 | $122,151 | $125,407 | $125,953 | $129,002 | $125,219 | $122,552 | $126,099 | $131,353 | $137,966 | $144,324 |
| 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 | Month 12 | |
| Current Liabilities | |||||||||||||
| Accounts Payable | $0 | $15,105 | $13,939 | $13,747 | $17,257 | $16,933 | $18,127 | $14,584 | $13,903 | $17,330 | $19,800 | $21,593 | $22,217 |
| Current Borrowing | $0 | $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 | $0 |
| Subtotal Current Liabilities | $0 | $15,105 | $13,939 | $13,747 | $17,257 | $16,933 | $18,127 | $14,584 | $13,903 | $17,330 | $19,800 | $21,593 | $22,217 |
| Long-term Liabilities | $50,000 | $49,167 | $48,334 | $47,501 | $46,668 | $45,835 | $45,002 | $44,169 | $43,336 | $42,503 | $41,670 | $40,837 | $40,004 |
| Total Liabilities | $50,000 | $64,272 | $62,273 | $61,248 | $63,925 | $62,768 | $63,129 | $58,753 | $57,239 | $59,833 | $61,470 | $62,430 | $62,221 |
| Paid-in Capital | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
| Retained Earnings | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) | ($11,800) |
| Earnings | $0 | ($3,706) | ($6,120) | ($7,296) | ($6,718) | ($5,015) | ($2,327) | ($1,734) | ($2,886) | ($1,934) | $1,684 | $7,336 | $13,903 |
| Total Capital | $68,200 | $64,494 | $62,080 | $60,904 | $61,482 | $63,185 | $65,873 | $66,466 | $65,314 | $66,266 | $69,884 | $75,536 | $82,103 |
| Total Liabilities and Capital | $118,200 | $128,766 | $124,353 | $122,151 | $125,407 | $125,953 | $129,002 | $125,219 | $122,552 | $126,099 | $131,353 | $137,966 | $144,324 |
| Net Worth | $68,200 | $64,494 | $62,080 | $60,904 | $61,482 | $63,185 | $65,873 | $66,466 | $65,314 | $66,266 | $69,884 | $75,536 | $82,103 |
