Bawarchi is a new medium-sized restaurant located in a trendy neighborhood of Portland, Oregon. Bawarchi's emphasis will be on organic and creative ethnic food. An emphasis on organic ingredients is based on Bawarchi's dedication to sustainable development.
Additionally, the restaurant procures local foods when possible, reducing their dependence on fossil foods used for transportation.
Services
Bawarchi offers Portlanders a trendy, fun place to have great food in a social environment. Chef Mario Langostino has a large repertoire of ethnic ingredients and recipes. Bawarchi forecasts that the majority of purchases will be from the chef's recommendations. Ethnic recipes will be used to provide the customers with a diverse, unusual menu. Chef Mario will also be emphasizing healthy dishes, recognizing the trend within the restaurant industry for the demand for healthy cuisine.
Customers
Bawarchi believes that the market can be segmented into four distinct groups that it aims to target. The first group is the lonely rich which number 400,000 people. The second group that will be targeted is young happy customers which are growing at an annual rate of 8% with 150,000 potential customers. The third group is rich hippies who naturally desire organic foods as well as ethnic cuisine. The last group which is particularly interested in the menu's healthy offerings is dieting women which number 350,000 in the Portland area.
Management
Bawarchi has assembled a strong management team. Tanveer Shaikhwill be the general manager. Andrew has extensive management experience of organizations ranging from six to 45 people. Asma Nazir will be responsible for all of the finance and accounting functions. Asma has seven years experience as an Arthur Andersen CPA. Asma's financial control skills will be invaluable in keeping Bawarchi on track and profitable. Lastly, Bawarchi has chef Marion Langostino who will be responsible for the back-end production of the venture. Chef Mario has over 12 years of experience and is a published, visible fixture in the Portland community.
Most important to Bawarchi is the financial success which will be achieved through strict rates as the restaurant gets more and more crowded, and to make sure that they are charging a premium for the feeling of being in the "in crowd."
The market and financial analyses indicate that with a start-up expenditure of $141,000, Bawarchi can generate $350,000 in sales by year one, $500,000 in sales by the end of year two and produce net profits of 7.5% on sales by the end of year three. Profitability will be reached by year two.
Bawarchi Restaurant
Highlights
$800,000
$700,000
$600,000
$500,000
$400,000
Sales
Gross Margin
$300,000
Net Profit
$200,000
Sample
$100,000
$0
($100,000)
2001
2002
2003
1.1 Objectives
1. Sales of $350K the first year, more than half a million the second.
2. Personnel costs less than $300K the first year, less than $400K the second year.
3. Profitable in year two, better than 7.5% profits on sales by year three.
1.2 Mission
Bawarchi is a great place to eat, combining an intriguing atmosphere with excellent,
interesting food that is also very good for the people who eat there. We want fair profit for
the owners, and a rewarding place to work for the employees.
2.0 Company Summary
Bawarchi is a single-unit, medium-sized restaurant. We focus on organic and creative food.
The restaurant will be located in a prime neighborhood of Portland. Most important to us is
our financial success, but we believe this will be achieved by offering high-quality service and
extremely clean, non-greasy food with interesting twists.
Start-up
Requirements
Start-up Expenses
Legal
$1,000
Stationery etc.
$1,000
Pro
Other
$1,000
Total Start-up Expenses
$3,000
Start-up Assets Needed
Cash Balance on Starting Date
$88,000
Other Current Assets
$50,000
Total Current Assets
$138,000
Long-term Assets
$0
Total Assets
$138,000
Total Requirements
Plan
$141,000
Funding
Investment
Investor 1
$25,000
Investor 2
$15,000
Total Investment
$40,000
Current Liabilities
Accounts Payable
$1,000
Current Liabilities
$1,000
Long-term Liabilities
$100,000
Total Liabilities
$101,000
Loss at Start-up
($3,000)
Total Capital
$37,000
Total Capital and Liabilities
$138,000
2.1 Company Ownership
The restaurant will start out as a simple sole proprietorship, owned by its founders.
2.2 Start-up Summary
The founders of the company are Tanveer Shaikh and his companion Asma Nazir. Asma focuses on the financial issues and Andrew on the personnel issues. Asma earned her business major undergraduate degree from the University of Berkeley.
We have found the location and secured the lease for $2,000 per month. We will be able to set up shop in time to begin turning back a profit by the end of month eleven and be profitable in the second year. The place is already equipped as a restaurant so we plan to come up with a total of $40,000 in capital, plus a $100,000 SBA-guaranteed loan, to start up the company.
Pg 3
Start-up
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Expenses
Assets
Investment
Loans
3.0 Services
The Menu
The menu is going to be extremely simple but changing every day. We will keep a small
group of constants on the menu and then feature a chef's recommendation that we plan to
have 85% of meals ordering. This will help us to reduce waste and plan ingredients and
purchasing.
Organic Ingredients
The organic ingredient element will allow us to price to the extremely wealthy Internet
entrepreneurs who are looking to spend an exorbitant amount of money to have peace of
mind that their money is still coming back to themselves. We will be extremely ecologically
Plan
conscious as well, and spread this across our literature. Eating at Bawarchi will feel like
having contributed to the Sierra Club and drinking fresh squeezed orange juice.
Ethnic Ingredients and Recipes
Our chef will have great latitude in designing and producing menu offerings from many
different world cultures. We will endeavor to procure all the traditional, authentic ingredients
necessary to hold true to these varied and interesting cultural recipes.
Interior Accoutrements
People need to keep life interesting, and our artwork will reflect the world influences that are
core to the attitude of the Bawarchi chef.
Pg 4
4.1 Market Segmentation
4.0 Market Analysis Summary
Because of the founders' connections within the very trendy area of Portland, we have an excellent feel for the area and its core group of customers. They will all share something alike, which is a feeling of being in the "in crowd" and having "gotten it" in life. Although the crew will be different and not connect with each other in each segment, each segment is complementary to the others. We do plan to raise menu rates as the restaurant gets more and more crowded, and to make sure we are charging a premium for the feeling of being in the "in crowd."
The Lonely Rich
Most of the lonely rich are tech workers these days, and most of those tech workers are Internet workers. Their life has become their website servers and code they write, and the people who help them to make the decisions in that world. They hang out with each other, but desperately want to get away from it and use the money they are racking up. Because this wealth has come fairly easily for them, it is particularly easy to separate them from their money againâ€"they spend the most on drinks, appetizers and
Young Happy Couples
The restaurant will have an atmosphere that encourages people to bring dates and to have couples arrive. It won't be awkward for others, and Bawarchi does want to be a social place where people meet each other and develop a network. These young couples are generally
very successful but balanced and won't be spending as much on drinks.
The Rich Hippies
The rich hippies in Portland are a massive group with tremendous influence over the city's
government and private enterprise. They wear tie-die but drive BMWs and crave the feeling
of being in a social circle that is changing the worldâ€"even if in different ways than in their
glory days. We will cater to their ecological ideology and contribute to charities to help them
part with more of their money.
Dieting Women
Plan
The organic food menu will always have a line of extremely delicious very low-fat meals.
Bawarchi will have tables of women meeting like they do in shows like Sex and the City, to
discuss all types of matters while feeling good about the food they eat.
Table: Market Analysis
Market Analysis
Potential Customers
Growth
2001
2002
2003
2004
2005
CAGR
Lonely Rich
10%
400,000
440,000
484,000
532,400
585,640
10.00%
Young Happy Couples
8%
150,000
162,000
174,960
188,957
204,074
8.00%
Rich Hippies
6%
250,000
265,000
280,900
297,754
315,619
6.00%
Dieting Women
7%
350,000
374,500
400,715
428,765
458,779
7.00%
Other
5%
50,000
52,500
55,125
57,881
60,775
5.00%
Total
7.87%
1,200,000
1,294,000
1,395,700
1,505,757
1,624,887
7.87%
Market Analysis (Pie)
Lonely Rich
Young Happy Couples
Rich Hippies
Dieting Women
Other
Sample
5.0 Strategy and Implementation Summary
Pro
Our strategy is simple, we intend to succeed by giving people a combination of great,healthy,
interesting food, and an environment that attracts "trendy" people like a magnet.
Implementation isn't simple, but that's in the doing of it, not in the plan.
5.1 Competitive Edge Plan
Our competitive edge is the menu, the chef, the environment, and the tie-in to what's trendy.
5.2 Sales Strategy
As the table shows, we intend to deliver sales of about $350K in the first year, and to double
that by the third year of the plan.
Sales Monthly
$70,000
$60,000
$50,000
$40,000
Meals
Drinks
$30,000
$20,000
$10,000
$0
Jan
Feb Mar Apr
May
Jun
Jul
Aug
Sep
Oct Nov
Dec
Table: Sales Forecast
Sales Forecast
Unit Sales
2001
2002
2003
Meals
22,822
35,000
45,000
Drinks
11,415
17,500
22,500
Other
240
500
1,000
Total Unit Sales
34,477
53,000
68,500
Unit Prices
2001
2002
2003
Meals
$15.00
$15.00
$15.00
Drinks
$2.00
$2.00
$2.00
Other
$10.00
$10.00
$10.00
Sales
Meals
$342,330
$525,000
$675,000
Drinks
$22,830
$35,000
$45,000
Other
$2,400
$5,000
$10,000
Total Sales
$367,560
$565,000
$730,000
Direct Unit Costs
2001
2002
2003
Meals
$2.00
$2.00
$2.00
Drinks
$0.50
$0.50
$0.50
Other
$1.00
$1.00
$1.00
Direct Cost of Sales
2001
2002
2003
Meals
$45,644
$70,000
$90,000
Drinks
$5,708
$8,750
$11,250
Other
$240
$500
$1,000
Subtotal Direct Cost of Sales
$51,592
$79,250
$102,250
Pg 7
6.0 Management Summary
Andrew has great experience managing personnel and we are quite confident of his ability to find the best staff possible. Our chef, Mario Langostino, is already on board and has a published cookbook that will add prestige to the restaurant immediately. We will be looking to find a young, ultra-hip staff to make sure we add the edge that makes Bawarchi so trendy.
6.1 Personnel Plan
As the personnel plan shows, we expect to invest in a good team, fairly compensated. We think the planned staff is in good proportion to the size of the restaurant and projected revenues.
Table: Personnel
Personnel Plan
2001
2002
2003
Manager
$60,000
$65,000
$70,000
Hostess
$42,000
$45,000
$50,000
Chef
$54,000
$60,000
$65,000
Cleaning
$30,000
$35,000
$40,000
Waiters
$72,000
$100,000
$130,000
Other
$24,000
$52,000
$55,000
Total People
8
10
12
Total Payroll
$282,000
$357,000
$410,000
7.0 Financial Plan
We expect to raise $30,000 of our own capital, and to borrow $100,000 guaranteed by the SBA as a 10-year loan. This provides the bulk of the start-up financing required.
7.1 Break-even Analysis
Our break-even analysis is based on the average of the first-year numbers for total sales by meal served, total cost of sales, and all operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. We realize that this is not really the same as fixed cost, but these conservative assumptions make for a better estimate of real risk.
Break-even Analysis
Sample
$20,000
$10,000
$0
($10,000)
Pro
($20,000)
($30,000)
0
4000
8000
12000
16000
20000
Monthly break-even point
Break-even point = where line intersects with 0
Table: Break-even Analysis
Break-even Analysis:
Monthly Units Break-even
14,028
Monthly Revenue Break-even
$146,453
Assumptions:
Average Per-Unit Revenue
$10.44
Average Per-Unit Variable Cost
$8.34
Estimated Monthly Fixed Cost
$29,459
Pg 9
7.2 Projected Profit and Loss
As the profit and loss table shows, we expect to become barely profitable in the second year
of business, and to make an acceptable profit in the third year.
Table: Profit and Loss
Pro Forma Profit and Loss
2001
2002
2003
Sales
$367,560
$565,000
$730,000
Direct Cost of Sales
$51,592
$79,250
$102,250
Production Payroll
$0
$0
$0
Other
$0
$0
$0
------------
------------
------------
Total Cost of Sales
$51,592
$79,250
$102,250
Gross Margin
$315,969
$485,750
$627,750
Gross Margin %
85.96%
85.97%
85.99%
Expenses:
Payroll
$282,000
$357,000
$410,000
Sales and Marketing and Other Expenses
$27,000
$35,830
$72,122
Depreciation
$1,000
Sample$1,050$1,103
Utilities
$1,200
$1,260
$1,323
Payroll Taxes
$42,300
$53,550
$61,500
Other
$0
$0
$0
------------
------------
------------
Total Operating Expenses
$353,500
$448,690
$546,047
Profit Before Interest and Taxes
($37,532)
$37,060
$81,703
Interest Expense
$10,000
$9,500
$8,250
Taxes Incurred
$0
$6,890
$18,363
Net Profit
($47,532)
$20,670
$55,090
Net Profit/Sales
-12.93%
3.66%
7.55%
Include Negative Taxes
FALSE
TRUE
TRUE
Profit Monthly
$25,000
$20,000
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
Jan Feb
Mar
Apr
May
Jun
Jul
Aug
Sep Oct Nov Dec
Pg 10
7.3 Projected Cash Flow
The cash flow projection shows that starting cost and provisions for ongoing expenses are adequate to meet our needs until the business itself generates its own cash flow sufficient to support operations.
Table: Cash Flow
Pro Forma Cash Flow
2001
2002
2003
Cash Received
Cash from Operations:
Cash Sales
$367,560
$565,000
$730,000
Cash from Receivables
$0
$0
$0
Subtotal Cash from Operations
$367,560
$565,000
$730,000
Additional Cash Received
Non Operating (Other) Income
$0
$0
$0
New Current Borrowing
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
Sample
New Long-term Liabilities
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
New Investment Received
$0
$0
$0
Subtotal Cash Received
$367,560
$565,000
$730,000
Expenditures
2001
2002
2003
Expenditures from Operations:
Cash Spending
$8,979
$13,273
$20,231
Payment of Accounts Payable
$395,818
$525,084
$645,600
Subtotal Spent on Operations
$404,797
$538,357
$665,831
Additional Cash Spent
Non Operating (Other) Expense
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$10,000
$15,000
Purchase Other Current Assets
$0
$0
$0
Subtotal Cash Spent
$404,797
$548,357
$680,831
Net Cash Flow
($37,237)
$16,643
$49,169
Cash Balance
$50,763
$67,405
$116,574
Pg 1
Cash
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
Net Cash Flow
Cash Balance
$20,000
Sample
$10,000
$0
($10,000)
($20,000)
Jan Feb Mar Apr May Jun
Jul Aug
Sep Oct Nov Dec
7.5 Business Ratios
$20,670
$10,139
$115,355
$10,139
$40,000 ($29,862) $55,090 $65,228 $163,422 $65,228
Paid-in Capital Retained Earnings Earnings
Total Capital
Total Liabilities and Capital Net Worth
$75,000
$98,194
Long-term Liabilities Total Liabilities
Accounts Payable
Current Borrowing Other Current Liabilities
Subtotal Current Liabilities
2001
$10,294
$0
$0
$10,294
Liabilities and Capital
$0
$2,050 ($2,050)
$115,355
Pro 2002 $15,217
$0
$0
$15,217
$90,000
$105,217
$40,000 ($50,532)
$0
$1,000 ($1,000) $99,763
2002
$67,405
$50,000
$117,405
2001
$50,763
$50,000
$100,763
Table: Balance Sheet
Pro Forma Balance Sheet
Assets Current Assets Cash
Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
three years.
7.4 Projected Balance Sheet
The table shows projected balance sheet for
Sample
2003
$116,574
$50,000
$166,574
$0
$3,153 ($3,153) $163,422
2003
$23,194
$0
$0
$23,194
$100,000
$110,294
Plan $40,000 ($3,000)
($47,532) ($10,532) $99,763 ($10,532)
Business ratios for the years of this plan are shown below. Industry Profile ratios based on the Standard Industrial Classification (SIC) code 5813, Eating Places, are shown for comparison.
Table: Ratios
Ratio Analysis
Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Business Vitality Profile
Sales per Employee
Survival Rate
Additional Ratios
Net Profit Margin
Return on Equity
Activity Ratios
Accounts Receivable Turnover
Collection Days
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
2001
2002
2003
Industry Profile
0.00%
53.72%
29.20%
7.60%
0.00%
0.00%
0.00%
4.50%
0.00%
0.00%
0.00%
3.60%
50.12%
43.34%
30.60%
35.60%
101.00%
101.78%
101.93%
43.70%
-1.00%
-1.78%
-1.93%
56.30%
100.00%
100.00%
100.00%
100.00%
0.00%
0.00%
0.00%
32.70%
100.24%
78.02%
45.89%
28.50%
100.24%
78.02%
45.89%
61.20%
-0.24%
21.98%
54.11%
38.80%
100.00%
100.00%
100.00%
100.00%
85.96%
85.97%
85.99%
60.50%
98.90%
82.32%
78.45%
39.80%
0.65%
Sample1.77%6.16%3.20%
-10.21%
6.56%
11.19%
0.70%
9.79
7.72
7.18
0.98
9.79
7.72
7.18
0.65
110.56%
91.21%
60.09%
61.20%
451.33%
271.84%
112.61%
1.70%
-47.64%
23.89%
44.95%
4.30%
Pro
2001
2002
2003
Industry
$45,945
$56,500
$60,833
$0
0.00%
2001
2002
2003
-12.93%
3.66%
7.55%
n.a
0.00%
203.88%
84.46%
n.a
0.00
0.00
0.00
n.a
0
0
0
n.a
0.00
0.00
0.00
n.a
39.35
34.83
28.18
n.a
5
105
129
3.68
4.90
4.47
n.a
0.00
10.38
1.51
n.a
0.09
0.14
0.24
n.a
$90,469
$102,189
$143,381
n.a
-3.75
3.90
9.90
n.a
0.27
0.20
0.22
n.a
10%
13%
14%
n.a
9.79
7.72
7.18
n.a
0.00
55.73
11.19
n.a
0.00
0.00
0.00
n.a
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution. Pg 14
Appendix Table: Sales Forecast
Sales Forecast
Unit Sales
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Meals
779
1,053
1,505
1,553
1,652
1,633
1,173
1,520
2,066
2,602
3,451
3,835
Drinks
1
390
527
753
777
826
817
587
760
1,033
1,301
1,726
1,918
Other
20
20
20
20
20
20
20
20
20
20
20
20
Total Unit Sales
1,189
1,600
2,278
2,350
2,498
2,470
1,780
2,300
3,119
3,923
5,197
5,773
Unit Prices
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Meals
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00
Drinks
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
Other
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
Sales
Meals
$11,685
$15,795
$22,575
$23,295
$24,780
$24,495
$17,595
$22,800
$30,990
$39,030
$51,765
$57,525
Drinks
$780
$1,054
$1,506
$1,554
$1,652
$1,634
$1,174
$1,520
$2,066
$2,602
$3,452
$3,836
Sampl
Other
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
Total Sales
$12,665
$17,049
$24,281
$25,049
$26,632
$26,329
$18,969
$24,520
$33,256
$41,832
$55,417
$61,561
Direct Unit Costs
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Meals
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
Drinks
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
$0.50
Other
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
Direct Cost of Sales
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Meals
$1,558
$2,106
$3,010
$3,106
$3,304
$3,266
$2,346
$3,040
$4,132
$5,204
$6,902
$7,670
Drinks
$195
$264
$377
$389
$413
$409
$294
$380
$517
$651
$863
$959
Other
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
Pro
Subtotal Direct Cost of Sales
$1,773
$2,390
$3,407
$3,515
$3,737
$3,695
$2,660
$3,440
$4,669
$5,875
$7,785
$8,649
Plan
Pg 1
Bawarchi Restaurant
Appendix Table: Personnel
Personnel Plan
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Manager
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Hostess
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
Chef
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
Cleaning
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
Waiters
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
Other
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
Total People
8
8
8
8
8
8
8
8
8
8
8
8
Total Payroll
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
Pg 2
Appendix Bawarchi Restaurant
Appendix Table: General Assumptions
General Assumptions
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Plan Month
1
2
3
4
5
6
7
8
9
Current Interest Rate
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%
Tax Rate
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
Other
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Calculated Totals
Payroll Expense
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
New Accounts Payable
$31,486
$32,041
$32,956
$33,053
$33,253
$33,215
$32,284
$32,986
$34,092
Oct
Nov
Dec
10
11
12
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
25.00%
25.00%
25.00%
0.00%
0.00%
0.00%
$23,500
$23,500
$23,500
$35,177
$36,897
$37,674
Pg 3
Appendix Bawarchi Restaurant
Appendix Table: Profit and Loss
Pro Forma Profit and Loss
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Sales
$12,665
$17,049
$24,281
$25,049
$26,632
$26,329
$18,969
$24,520
$33,256
$41,832
$55,417
$61,561
Direct Cost of Sales
$1,773
$2,390
$3,407
$3,515
$3,737
$3,695
$2,660
$3,440
$4,669
$5,875
$7,785
$8,649
Production Payroll
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
Total Cost of Sales
$1,773
$2,390
$3,407
$3,515
$3,737
$3,695
$2,660
$3,440
$4,669
$5,875
$7,785
$8,649
Gross Margin
$10,892
$14,660
$20,875
$21,535
$22,895
$22,635
$16,310
$21,080
$28,588
$35,958
$47,632
$52,912
Gross Margin %
86.00%
85.98%
85.97%
85.97%
85.97%
85.97%
85.98%
85.97%
85.96%
85.96%
85.95%
85.95%
Expenses:
Payroll
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
$23,500
Sales and Marketing and Other Expenses
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
Depreciation
5%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,000
Utilities
5%
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
Sampl
Payroll Taxes
15%
$3,525
$3,525
$3,525
$3,525
$3,525
$3,525
$3,525
$3,525
$3,525
$3,525
$3,525
$3,525
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
Total Operating Expenses
$29,375
$29,375
$29,375
$29,375
$29,375
$29,375
$29,375
$29,375
$29,375
$29,375
$29,375
$30,375
Profit Before Interest and Taxes
($18,483)
($14,716)
($8,501)
($7,841)
($6,480)
($6,741)
($13,066)
($8,295)
($788)
$6,583
$18,257
$22,537
Interest Expense
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
Taxes Incurred
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Net Profit
($19,316)
($15,549)
($9,334)
($8,674)
($7,313)
($7,574)
($13,899)
($9,128)
($1,621)
$5,749
$17,424
$21,704
Net Profit/Sales
-152.52%
-91.20%
-38.44%
-34.63%
-27.46%
-28.77%
-73.27%
-37.23%
-4.87%
13.74%
31.44%
35.26%
Pg 4
Appendix Table: Cash Flow
Pro Forma Cash Flow
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cash Received
Cash from Operations:
Cash Sales
$12,665
$17,049
$24,281
$25,049
$26,632
$26,329
$18,969
$24,520
$33,256
$41,832
$55,417
$61,561
Cash from Receivables
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Cash from Operations
$12,665
$17,049
$24,281
$25,049
$26,632
$26,329
$18,969
$24,520
$33,256
$41,832
$55,417
$61,561
Additional Cash Received
Non Operating (Other) Income
$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
New Investment Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sampl
Subtotal Cash Received
$12,665
$17,049
$24,281
$25,049
$26,632
$26,329
$18,969
$24,520
$33,256
$41,832
$55,417
$61,561
Expenditures
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Expenditures from Operations:
Cash Spending
$496
$557
$659
$670
$692
$688
$584
$662
$785
$906
$1,097
$1,183
Payment of Accounts Payable
$28,174
$31,504
$32,071
$32,959
$33,060
$33,252
$33,184
$32,307
$33,023
$34,128
$35,234
$36,922
Subtotal Spent on Operations
$28,669
$32,061
$32,730
$33,629
$33,752
$33,940
$33,768
$32,969
$33,808
$35,034
$36,331
$38,106
Additional Cash Spent
Non Operating (Other) Expense
$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
Pro
Long-term Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Purchase Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Cash Spent
$28,669
$32,061
$32,730
$33,629
$33,752
$33,940
$33,768
$32,969
$33,808
$35,034
$36,331
$38,106
Net Cash Flow
($16,004)
($15,012)
($8,449)
($8,580)
($7,120)
($7,611)
($14,799)
($8,449)
($552)
$6,798
$19,086
$23,455
Cash Balance
$71,996
$56,983
$48,534
$39,954
$32,835
$25,224
$10,424
$1,975
$1,423
$8,221
$27,307
$50,763
Appendix Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Current Assets
Starting Balances
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cash
$88,000
$71,996
$56,983
$48,534
$39,954
$32,835
$25,224
$10,424
$1,975
$1,423
$8,221
$27,307
$50,763
Other Current 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
Total Current Assets
$138,000
$121,996
$106,983
$98,534
$89,954
$82,835
$75,224
$60,424
$51,975
$51,423
$58,221
$77,307
$100,763
Long-term Assets
Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Accumulated Depreciation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,000
Total Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($1,000)
Total Assets
$138,000
$121,996
$106,983
$98,534
$89,954
$82,835
$75,224
$60,424
$51,975
$51,423
$58,221
$77,307
$99,763
Liabilities and Capital
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Sampl
Accounts Payable
$1,000
$4,312
$4,848
$5,733
$5,827
$6,021
$5,984
$5,083
$5,762
$6,831
$7,880
$9,542
$10,294
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
$1,000
$4,312
$4,848
$5,733
$5,827
$6,021
$5,984
$5,083
$5,762
$6,831
$7,880
$9,542
$10,294
Long-term Liabilities
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
Total Liabilities
$101,000
$104,312
$104,848
$105,733
$105,827
$106,021
$105,984
$105,083
$105,762
$106,831
$107,880
$109,542
$110,294
Paid-in Capital
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
Retained Earnings
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
($3,000)
Earnings
$0
($19,316)
($34,865)
($44,199)
($52,873)
($60,186)
($67,760)
($81,659)
($90,787)
($92,408)
($86,659)
($69,235)
($47,532)
Total Capital
$37,000
$17,684
$2,135
($7,199)
($15,873)
($23,186)
($30,760)
($44,659)
($53,787)
($55,408)
($49,659)
($32,235)
($10,532)
Pro
Total Liabilities and Capital
$138,000
$121,996
$106,983
$98,534
$89,954
$82,835
$75,224
$60,424
$51,975
$51,423
$58,221
$77,307
$99,763
Net Worth
$37,000
$17,684
$2,135
($7,199)
($15,873)
($23,186)
($30,760)
($44,659)
($53,787)
($55,408)
($49,659)
($32,235)
($10,532)
Pg 6
