bar and tavern business plan

7/21/2019 Bar and Tavern Business Plan

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Table of Contents

1.0 Executive Summary .................................................................................................................... 1

1.1 Keys to Success ........................................................................................................................ 2

1.2 Mission .......................................................................................................................................... 21.3 Objectives .................................................................................................................................... 2

Chart: Highlights .......................................................................................................................... 2

2.0 Company Summary ..................................................................................................................... 3

2.1 Company Ownership ............................................................................................................... 3

2.2 Start-up Summary ................................................................................................................... 3

Table: Start-up .............................................................................................................................. 4

Table: Start-up Funding ............................................................................................................ 5Chart: Start-up ............................................................................................................................. 6

3.0 Products ........................................................................................................................................... 6

4.0 Market Analysis Summary ........................................................................................................ 7

4.1 Market Segmentation ............................................................................................................. 7

Table: Market Analysis ............................................................................................................... 8

Chart: Market Analysis (Pie) .................................................................................................... 8

4.2 Target Market Segment Strategy ...................................................................................... 9

4.3 Industry Analysis ...................................................................................................................... 9

4.3.1 Competition and Buying Patterns ............................................................................ 10

5.0 Strategy and Implementation Summary .......................................................................... 10

5.1 Competitive Edge ................................................................................................................... 11

5.2 Marketing Strategy ................................................................................................................ 11

5.3 Sales Strategy ......................................................................................................................... 11

5.3.1 Sales Forecast.................................................................................................................. 12

Table: Sales Forecast ........................................................................................................... 12Chart: Sales Monthly ............................................................................................................ 13

Chart: Sales by Year ............................................................................................................. 13

5 4 Milestones 14



Table of Contents

Chart: Profit Monthly ................................................................................................................ 18

Chart: Profit Yearly .................................................................................................................... 18

Chart: Gross Margin Monthly ................................................................................................. 19Chart: Gross Margin Yearly .................................................................................................... 19

Table: Profit and Loss ............................................................................................................... 20

8.4 Projected Cash Flow .............................................................................................................. 21

8.4 Projected Cash Flow .............................................................................................................. 21

Table: Cash Flow ........................................................................................................................ 21

Chart: Cash .................................................................................................................................. 22

8.5 Projected Balance Sheet ...................................................................................................... 23Table: Balance Sheet ................................................................................................................ 23

8.6 Business Ratios ....................................................................................................................... 24

8.6 Business Ratios ....................................................................................................................... 24

Table: Ratios ................................................................................................................................ 24

Table: Sales Forecast ......................................................................................................................... 1

Table: Personnel ................................................................................................................................... 2Table: Personnel ................................................................................................................................... 2Table: General Assumptions ............................................................................................................ 3

Table: General Assumptions ............................................................................................................ 3

Table: Profit and Loss ......................................................................................................................... 4

Table: Profit and Loss ......................................................................................................................... 4

Table: Cash Flow .................................................................................................................................. 5

Table: Cash Flow .................................................................................................................................. 5

Table: Balance Sheet .......................................................................................................................... 7

Table: Balance Sheet .......................................................................................................................... 7



Foosball Hall

1.0 Executive Summary

Foosball Hall is a new gaming hall and bar serving the Madison, Wisconsin community. Foosballor table soccer is an exciting table game originating from 1920's Germany. The game involvestwo to four people in an exciting match that tests skill, strategy, and willingness to have fun.

People, primarily male students, play foosball as an exciting alternative to pool. They arelooking for skill oriented game that they can play in the social setting of a bar. While there aremany different pool hall bars in Madison, there are no foosball bars even though the demand is

quite apparent. Demand can be witnessed anywhere there is a foosball table. There are always

lines of people waiting to play, and it is extremely rare to be able to walk up to an unusedfoosball table. Foosball Hall will meet the unmet demand in Madison, Wisconsin with a bar

offering beer, food, beverages and plenty of foosball tables for casual play as well astournaments.

Keys to Success Foosball Hall has identified three keys that will be critical for their success. The first is the needto design and implement strict financial controls. This is particularly important for an

establishment that serves alcohol, as employee theft is one of the largest drains on this type of

business. The financial controls will help minimize this risk. The second key is the behavior of allemployees toward customers - that each customer is treated as if they were the most

important customer of Foosball Hall. The last key to success will be the constant analysis forimprovement of the business model. It will be management's task to continually analyze thebusiness model looking for ways that it can be adjusted to increase profitability for thebusiness. Foosball Hall will not assume that this business model is static, rather, they believethat in order to improve it must be dynamic.

Target Market Customers

Foosball Hall has identified two population target segments. The first segment is casual playersof table games. This segment enjoys playing table games such as foosball or pool in a barsetting. They appreciate the opportunity to play a fun game while they consume beverages

(alcoholic or not) and socialize with friends or strangers. This group is growing at the annual

rate of 8% with 54,889 potential customers. The second segment of the population that will betargeted is competitive players These people appreciate foosball for the same reasons as the



Foosball Hall

1.1 Keys to Success

Foosball Hall has identified several business elements that must be implemented in order tosucceed in this competitive market.

1. Employ strict financial controls. This is especially important for a bar where, withoutfinancial controls, employ theft could bring the business to bankruptcy.

2. Treat every customer as though they are the most important customer to Foosball Hall.

3. Continually look for improvements in the business model as well as operating systems.

1.2 Mission

It is Foosball Hall's mission to become a premier night spot for Madison students and locals who

are interested in playing table games and drinking. Foosball Hall will accomplish this by offering

abundant foosball tables, beer, and food at reasonable prices. By providing the Madison marketwith the opportunity to participate in this increasingly popular table game, Foosball Hall will

become a Madison favorite. The business will be operated on the premise that satisfiedcustomers are imperative to a sustainable business.

1.3 Objectives

To become one of the premier venues in Madison that offers table games (in this casespecifically foosball), beer and food.

To grow the game of foosball in Madison, adding legitimacy to the game and increasing the

number and participation levels of the tournaments. Reach the point of sustainable profitability by year two.

Chart: Highlights



Foosball Hall

2.0 Company Summary

Foosball Hall, a start-up business has been formed as a Wisconsin Limited Liability Corporation(L.L.C.) with the main purpose as a table game (foosball) operation that offers soft drinks,beer, and light food.

2.1 Company Ownership

Foosball Hall is an L.L.C. registered in Wisconsin. The L.L.C. business formation structure was

chosen as a personal liability shield for the owner Stan Spinner. While Stan has outsideinvestors who possess a note securing their investment, Stan is the majority owner.

2.2 Start-up Summary

The following list details the expenses associated with the start up of this organization:

Foosball tables: There are 10 U.S.-based manufacturers of tables. The specific vendor willbe chosen soon based on a competitive bidding process. All of the manufacturers produce

high quality tables and compete primarily on price. Foosball Hall is in need of 10 tables @

approximately $3,000 each. In addition to the tables, two large white boards will be neededfor tournament play.

Lighting: While the chosen space has lights for the area in general, additional lighting will

need to be set up for proper table play.

Stools, tables, counter top and chairs: These items will be purchased to provide a place

for non-players to relax and socialize.

Kitchen equipment: These are the items necessary for serving a bar menu and liquidrefreshments. Needed items include: glasses, silverware, plates, microwave, convection

oven, refrigerator and freezer, serving/cooking utensils, a beer tap system, a fountain

dispenser for soft drinks.



Foosball Hall

Table: Start-up

Start-up

Requirements

Start-up Expenses Legal $200Stationery etc. $300Brochures $200Consultants $2,000

Insurance $0Rent $0Research and Development $0Expensed Equipment $5,000Other $0Total Start-up Expenses $7,700

Start-up Assets

Cash Required $44,300Other Current Assets $3,000Long-term Assets $40,000Total Assets $87,300

Total Requirements $95,000



Foosball Hall

Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $7,700Start-up Assets to Fund $87,300Total Funding Required $95,000

Assets

Non-cash Assets from Start-up $43,000Cash Requirements from Start-up $44,300

Additional Cash Raised $0Cash Balance on Starting Date $44,300Total Assets $87,300

Liabilities and Capital

Liabilities Current Borrowing $0Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0Other Current Liabilities (interest-free) $0Total Liabilities $0

Capital

Planned Investment

Stan Spinner $75,000Investor 2 $20,000Other $0

Additional Investment Requirement $0Total Planned Investment $95,000

Loss at Start-up (Start-up Expenses) ($7,700) Total Capital

$87,300

Total Capital and Liabilities $87,300



Foosball Hall

Chart: Start-up

3.0 Products

Foosball

Foosball, or table soccer is a popular table game that looks sort of like a soccer game. The

name is derived from the German word for field soccer which is fubball. The adopted name inthe States is foosball or table soccer. The game itself originated in Germany during the late

1920's and early 1930's.

A fact that may come as a surprise to many is that foosball is played on a competitive

(professional) level. There are several tours which exist with regional, national and international



Foosball Hall

similar to pool and darts. Foosball offers the same challenge in terms of strategy and skill aspool and darts but makes the experience more fun and action oriented. So foosball can be said

to be the best of both worlds, requiring skill and thought but at the same time being fun, fastpaced action.

4.0 Market Analysis Summary

Foosball Hall has identified two target customer segments which are particularly attractive. The

first segment customers are the more casual players who are looking for some sort of activity(such as foosball, pool, darts) to occupy their time as they socialize and drink. The second

group comprises the competitive foosball players. This group travels to where ever there are

tables.

While the two groups share the same interest in foosball, they are distinct groups and each one

will need to be reached via different methods. Foosball Hall participates within the general poolhall industry, businesses that offer beer and pool typically. The foosball parlor industry is too

small and new to have its own industry classification. While foosball is a very popular table

game, there are just not enough foosball dedicated halls to have its own industry. Here lies theattractiveness of the industry, most of the foosball playing occurs on college campuses, thereare few outside establishments that offer a pool-like foosball hall.

4.1 Market Segmentation

Foosball Hall has identified two distinct customer segments that they will target:

Casual players

This segment is typically made up of college men who enjoy playing foosball with theircolleagues. This group of individuals typically plays to pass time and have fun as opposed to

playing at a competitive level in tournaments. Characteristics of the individuals that make upthis group are:

Gender 85% male.



Foosball Hall

Table: Market Analysis

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR Casual players 8% 54,889 59,280 64,022 69,144 74,676 8.00%Competitive players 7% 12,445 13,316 14,248 15,245 16,312 7.00%Total 7.82% 67,334 72,596 78,270 84,389 90,988 7.82%

Chart: Market Analysis (Pie)



Foosball Hall

4.2 Target Market Segment Strategy

Foosball Hall will successfully target two distinct segments of the market. While both groupsplay foosball, the reasons that they play are different. Understanding this will help Foosball Hallaccurately target the specific group. The first group while smaller in size is far more organized

and will therefore be much easier to reach. Although seriously competitive players are growingin number, it is a select group of people that compete in foosball. With the advent of theInternet, this group has become quite organized in terms of associations, tournaments, and

general awareness of each other. This being said, it is easy to reach this group through

advertisements and networking with the different associations. The competitive players arealways looking for new places to play, there are generally not enough tables to accommodate

them. This will be the easiest group to reach. This group is talkative amongst themselves andalways looking for new places and new tournaments.

The casual players will be more difficult to target. This group of people comes from a fairlylarge cross section of the population, people that like some sort of table game while they hangout with friends and drink beer. The obvious group to try to reach are college students. Madison

was chosen in part because of its population of foosball players as well as the huge student

population to draw off of. Students are the perfect segment of the population that likes todrink, play games, has disposable income, and has extra time for leisure activities. Additionally,

foosball is a social game that requires two- four players. Even beyond the requirement formultiple players, when people play foosball it is typically in a social setting with socializingoccurring during play. While there are some other casual players, most are or recently werecollege students.

4.3 Industry Analysis

Foosball is an untapped game market. While it is not uncommon to have a foosball table in a

fraternity house, it is far less common to have one in a public place such as a bar. Most barowners rationalize that not a lot of people really know how or care to play, therefore if they

have to come up with a large capital expense of several thousand dollars, they would ratherspend it on something that will appeal to a larger population. It is this mentality that hascreated the current state where there are many active players that play in one or two places all



Foosball Hall

5.1 Competitive Edge

Foosball Hall will rely on their competitive edge of offering a large number of foosball tables topatrons. Pool halls are relatively popular. They offer patrons a source of self entertainment(based on skill and strategy) while they drink and socialize. Foosball takes this value one step

further by offering a game that has similar skill requirements, but injects much more fun andthrill into the game. Currently, there are no other public places that offer more than one or twofoosball tables for play. This competitive edge could diminish if it becomes so popular that

competitors take notice and offer similar game options. However, Foosball Hall will enjoy the

market leader position and will not rest on its laurels, continually looking for new ways to addvalue for their customers. Foosball Hall will be always looking for new ways to appeal to their

target market by both secondary research, and through primary research in the form ofobservation of their customers.

5.2 Marketing Strategy

Foosball Hall will use two different forms of marketing communication as a way to reach the

target market and raise their awareness of Foosball Hall and their product offerings. The casualusers will be reached through a series of advertisements, generally in the student newspapers.The student rags are a source of information that most students consult in determining

activities and events. There are two main student papers, each with a slightly differentreadership demographic. The advertising space in the papers is fairly inexpensive and istargeted to reach the right audience.

In order to reach the competitive users, Foosball Hall will rely on a tournament sponsorshipstrategy to attract the serious players. Foosball Hall will sponsor several different tournaments,

at least two days a week that will be a haven for the competitive players. The beauty (for

Foosball Hall) of the competitive tournaments is that most players require practice to remain

competitive or improve and the large number of tables at Foosball Hall will encourage thiscustomer segment to use Foosball Hall as a place to train as well as compete. The tournament

sponsorship will generate visibility on the local (city as well as state) foosball associationwebsites. The visibility will take the form of activity by members of the Foosball Hall staffin association based activities Becoming active within this association of people is valuable



Foosball Hall

5.3.1 Sales Forecast

The sales forecast is a conservative projection. It has been kept conservative to ensure that,with the worst case scenario, we are able to cover our expenses. The first three months have asales forecast that is pretty grim (relative to the standard month). This can be explained by the

fact that the first few months will be slow, a function of being a start-up business, fighting tobecome more visible within the community, going from nothing to achieving a regular clientele.A slow but steady growth cycle with occur as the months toll. Profitability is projected to occur

during the later half of the second year. As a rule of thumb for this industry, if profitability

occurs before the second year than it is unlikely to be a sustainable profit, and if it does notoccur by the end of the second year than the chance of it ever happening is pretty slim.

The following table and charts represent the breakdown of the sales for the first year as well asgraphical representations of sales by month and year.

Table: Sales Forecast

Sales Forecast

Year 1 Year 2 Year 3

Sales Alcohol $67,537 $95,778 $132,545Soft drinks $36,470 $51,720 $71,574Food $31,742 $45,016 $62,296Table fees $12,832 $18,198 $25,184Total Sales $148,581 $210,712 $291,599

Direct Cost of Sales Year 1 Year 2 Year 3 Alcohol $16,884 $23,945 $33,136Soft drinks $5,457 $7,758 $10,736Food $10,475 $14,855 $20,558

Table fees $0 $0 $0Subtotal Direct Cost of Sales $32,816 $46,558 $64,430



Foosball Hall

Chart: Sales Monthly

Chart: Sales by Year



Foosball Hall

5.4 Milestones

Foosball Hall has identified several different milestones that will act as obtainable goals,providing the organization with benchmarks that they must reach. The following table detailsthe different milestones, the timeline for them and the responsible party.

Chart: Milestones

Table: Milestones



Foosball Hall

6.0 Web Plan SummaryThe website will be used as a form of communication aimed primarily at the competitive

players. The competitive players are those that use the Internet to stay in touch with the rest ofthe foosball community. This community, as perviously mentioned, is somewhat small but close

knit. The Internet provides the perfect communication medium. The casual players are unlikelyto use the website much, they will be looking for a casual place to have fun and pass the timeand an Internet search is usually not used to find new places.

The website will provide viewers with information regarding the services and products offered

by Foosball Hall. In addition to providing information, the website will be linked into thedifferent associations websites as a venue for tournament play.

6.1 Website Marketing Strategy

The website will be marketed in two ways. The first will be submissions to popular search

engines such as Google. This will allow people who are searching for Madison based foosball toreach Foosball Hall's website. The second marketing strategy is the complimentary linking of

sites with the local and regional foosball associations. With complimentary links used, surferswho are already on a complimentary website such as the associations website will be guided toFoosball Hall's site and hopefully made aware of the new venue for foosball play.

6.2 Development Requirements

The development requirements for the site will be met by a computer science student. This type

of student will be used for two reasons: the typical below market rates, and the technicalexpertise that they offer.

7.0 Management Summary

Foosball Hall is being led by Stan Spinner. Stan received his undergraduate degree in

philosophy from University of Wisconsin-Stevens Point. It was here that Stan was firstintroduced to foosball. His fraternity had a table and he immediately enjoyed the game. At his



Foosball Hall

7.1 Personnel Plan

Stan will be the driving force behind Foosball Hall. His responsibilities include but not limited to:vendor relations and product procurement, marketing, sales, accounting (initially), tournamentformation and management, and bar tending. In addition to Stan the following positions will

need to be filled:

Bartender: In addition to tending bar and serving drinks, this position will help with the

cleaning and busing of tables as well as opening and closing activities. When it is slow theposition will also assist in the limited food preparation. There will be multiple bartenders,

typically having part-time shifts.

Bartender assistant: This position will back up the bartender in any activities that areneeded such as cleaning, busing tables, assistance will table rental. This position will also

help out with many of the back-end activities. There will be multiple people holding thisposition.

Bookkeeper: This position will be filled during month five when business begins to pick up.

Initially Stan will be taking care of these functions, however once business picks up there isno value added for Stan to do these functions so he will hire someone on a part-time basis.

Table: Personnel

Personnel Plan


Stan $24,000 $26,000 $33,000Bartenders $17,800 $36,000 $56,000Bartender assistants $14,500 $18,600 $20,000Bookkeeper

$7,200 $6,000 $12,000

Total People 8 8 8

Total Payroll $63,500 $86,600 $121,000



Foosball Hall

8.2 Break-even Analysis

The Break-even Analysis indicates that monthly revenue of approximately $12,000 will beneeded to reach the break-even point.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $12,837

Assumptions:

Average Percent Variable Cost 22%Estimated Monthly Fixed Cost $10,001

Chart: Break-even Analysis



Foosball Hall

8.3 Projected Profit and Loss

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

Chart: Profit Monthly

Chart: Profit Yearly



Foosball Hall

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly



Foosball Hall

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $148,581 $210,712 $291,599Direct Cost of Sales $32,816 $46,558 $64,430Other Costs of Goods $0 $0 $0Total Cost of Sales $32,816 $46,558 $64,430

Gross Margin $115,765 $164,154 $227,169Gross Margin % 77.91% 77.90% 77.90%

Expenses Payroll $63,500 $86,600 $121,000Sales and Marketing and Other Expenses $4,800 $4,000 $4,000Depreciation $7,992 $7,992 $7,992Rent $14,400 $15,000 $16,000Utilities $4,200 $4,200 $4,200Insurance $9,600 $9,600 $9,600Payroll Taxes $9,525 $12,990 $18,150Other $6,000 $6,000 $6,000

Total Operating Expenses $120,017 $146,382 $186,942

Profit Before Interest and Taxes ($4,252) $17,772 $40,227EBITDA $3,740 $25,764 $48,219Interest Expense $0 $0 $0Taxes Incurred $0 $5,332 $12,068

Net Profit ($4,252) $12,440 $28,159Net Profit/Sales -2.86% 5.90% 9.66%



Foosball Hall

8.4 Projected Cash Flow

The following chart and table display Projected Cash Flow.

Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3 Cash Received

Cash from Operations Cash Sales $148,581 $210,712 $291,599Subtotal Cash from Operations $148,581 $210,712 $291,599

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0Subtotal Cash Received $148,581 $210,712 $291,599

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations Cash Spending $63,500 $86,600 $121,000Bill Payments $74,171 $102,328 $131,919Subtotal Spent on Operations $137,671 $188,928 $252,919

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $0 $0 $0Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $0 $0 $0Purchase Other Current Assets $0 $0 $0



Foosball Hall

Chart: Cash



Foosball Hall

8.5 Projected Balance Sheet

The following table presents the Projected Balance Sheet.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Assets

Current Assets Cash $55,210 $76,994 $115,674Other Current Assets $3,000 $3,000 $3,000Total Current Assets $58,210 $79,994 $118,674

Long-term Assets Long-term Assets $40,000 $40,000 $40,000

Accumulated Depreciation $7,992 $15,984 $23,976Total Long-term Assets $32,008 $24,016 $16,024Total Assets $90,218 $104,010 $134,698

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $7,170 $8,522 $11,051Current Borrowing $0 $0 $0Other Current Liabilities $0 $0 $0Subtotal Current Liabilities $7,170 $8,522 $11,051

Long-term Liabilities $0 $0 $0Total Liabilities $7,170 $8,522 $11,051

Paid-in Capital $95,000 $95,000 $95,000Retained Earnings ($7,700) ($11,952) $488Earnings ($4,252) $12,440 $28,159Total Capital $83,048 $95,488 $123,647Total Liabilities and Capital $90,218 $104,010 $134,698



Foosball Hall

8.6 Business Ratios

Foosball Hall's Business Ratios. SIC industry class: Pool parlor - 7999.0403.

Table: Ratios

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile Sales Growth n.a. 41.82% 38.39% 5.73%

Percent of Total Assets Other Current Assets 3.33% 2.88% 2.23% 33.26%

Total Current Assets 64.52% 76.91% 88.10% 43.21%Long-term Assets 35.48% 23.09% 11.90% 56.79%Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 7.95% 8.19% 8.20% 21.91%Long-term Liabilities 0.00% 0.00% 0.00% 28.81%Total Liabilities 7.95% 8.19% 8.20% 50.72%Net Worth 92.05% 91.81% 91.80% 49.28%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%Gross Margin 77.91% 77.90% 77.90% 100.00%Selling, General & Administrative Expenses 80.78% 72.00% 68.25% 76.43%

Advertising Expenses 0.00% 0.00% 0.00% 2.77%Profit Before Interest and Taxes -2.86% 8.43% 13.80% 1.89%

Main Ratios

Current 8.12 9.39 10.74 1.18Quick 8.12 9.39 10.74 0.80Total Debt to Total Assets 7.95% 8.19% 8.20% 1.76%Pre-tax Return on Net Worth -5.12% 18.61% 32.53% 61.12%

Pre-tax Return on Assets -4.71% 17.09% 29.86% 4.52%

Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin -2.86% 5.90% 9.66% n.a R t E it 5 12% 13 03% 22 77%



Appendix

Page 1

Table: Sales Forecast

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales Alcohol 0% $2,511 $2,787 $3,254 $4,587 $4,354 $5,656 $3,877 $6,141 $8,454 $8,654 $9,848 $7,414Soft drinks 0% $1,356 $1,505 $1,757 $2,477 $2,351 $3,054 $2,094 $3,316 $4,565 $4,673 $5,318 $4,004

Food 0% $1,180 $1,310 $1,529 $2,156 $2,046 $2,658 $1,822 $2,886 $3,973 $4,067 $4,629 $3,485Table fees 0% $477 $530 $618 $872 $827 $1,075 $737 $1,167 $1,606 $1,644 $1,871 $1,409Total Sales $5,524 $6,131 $7,159 $10,091 $9,579 $12,443 $8,529 $13,510 $18,599 $19,039 $21,666 $16,311

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 Alcohol $628 $697 $814 $1,147 $1,089 $1,414 $969 $1,535 $2,114 $2,164 $2,462 $1,854

Soft drinks $339 $376 $439 $619 $588 $764 $523 $829 $241 $247 $281 $211

Food $389 $432 $505 $711 $675 $877 $601 $952 $1,311 $1,342 $1,527 $1,150

Table fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $1,356 $1,505 $1,757 $2,477 $2,352 $3,055 $2,094 $3,317 $3,666 $3,752 $4,270 $3,215



Appendix

Page 2

Table: Personnel

Personnel Plan

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Stan 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000Bartenders 0% $0 $0 $1,500 $1,500 $1,700 $1,700 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900Bartender assistants 0% $0 $0 $1,200 $1,200 $1,400 $1,400 $1,550 $1,550 $1,550 $1,550 $1,550 $1,550

Bookkeeper 0% $0 $0 $0 $0 $900 $900 $900 $900 $900 $900 $900 $900Total People 1 1 6 6 6 7 8 8 8 8 8 8

Total Payroll $2,000 $2,000 $4,700 $4,700 $6,000 $6,000 $6,350 $6,350 $6,350 $6,350 $6,350 $6,350



Appendix

Page 3

Table: General Assumptions

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

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Appendix

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Table: Profit and Loss

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales $5,524 $6,131 $7,159 $10,091 $9,579 $12,443 $8,529 $13,510 $18,599 $19,039 $21,666 $16,311

Direct Cost of Sales $1,356 $1,505 $1,757 $2,477 $2,352 $3,055 $2,094 $3,317 $3,666 $3,752 $4,270 $3,215

Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Cost of Sales $1,356 $1,505 $1,757 $2,477 $2,352 $3,055 $2,094 $3,317 $3,666 $3,752 $4,270 $3,215

Gross Margin $4,168 $4,626 $5,401 $7,614 $7,227 $9,388 $6,435 $10,193 $14,933 $15,286 $17,396 $13,096

Gross Margin % 75.45% 75.45% 75.45% 75.45% 75.45% 75.45% 75.45% 75.45% 80.29% 80.29% 80.29% 80.29%

Expenses Payroll $2,000 $2,000 $4,700 $4,700 $6,000 $6,000 $6,350 $6,350 $6,350 $6,350 $6,350 $6,350

Sales and Marketing and OtherExpenses

$400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Depreciation $666 $666 $666 $666 $666 $666 $666 $666 $666 $666 $666 $666

Rent $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200

Utilities $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350

Insurance $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Payroll Taxes 15% $300 $300 $705 $705 $900 $900 $953 $953 $953 $953 $953 $953Other $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Total Operating Expenses $6,216 $6,216 $9,321 $9,321 $10,816 $10,816 $11,219 $11,219 $11,219 $11,219 $11,219 $11,219

Profit Before Interest and Taxes ($2,048) ($1,590) ($3,920) ($1,707) ($3,589) ($1,428) ($4,783) ($1,025) $3,715 $4,068 $6,177 $1,878

EBITDA ($1,382) ($924) ($3,254) ($1,041) ($2,923) ($762) ($4,117) ($359) $4,381 $4,734 $6,843 $2,544

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($2,048) ($1,590) ($3,920) ($1,707) ($3,589) ($1,428) ($4,783) ($1,025) $3,715 $4,068 $6,177 $1,878

Net Profit/Sales -37.07% -25.93% -54.75% -16.92% -37.47% -11.47% -56.08% -7.59% 19.9 7% 21.37% 28.51% 11 .51%

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Appendix

Page 5

Table: Cash Flow

Pro Forma Cash Flow

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

Cash from Operations Cash Sales $5,524 $6,131 $7,159 $10,091 $9,579 $12,443 $8,529 $13,510 $18,599 $19,039 $21,666 $16,311

Subtotal Cash from Operations $5,524 $6,131 $7,159 $10,091 $9,579 $12,443 $8,529 $13,510 $18,599 $19,039 $21,666 $16,311

Additional Cash Received Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New 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 $5,524 $6,131 $7,159 $10,091 $9,579 $12,443 $8,529 $13,510 $18,599 $19,039 $21,666 $16,311

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

Expenditures from Operations Cash Spending $2,000 $2,000 $4,700 $4,700 $6,000 $6,000 $6,350 $6,350 $6,350 $6,350 $6,350 $6,350

Bill Payments $164 $4,911 $5,077 $5,736 $6,435 $6,525 $7,175 $6,337 $7,531 $7,871 $7,972 $8,437

Subtotal Spent on Operations $2,164 $6,911 $9,777 $10,436 $12,435 $12,525 $13,525 $12,687 $13,881 $14,221 $14,322 $14,787

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

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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

Subtotal Cash Spent $2,164 $6,911 $9,777 $10,436 $12,435 $12,525 $13,525 $12,687 $13,881 $14,221 $14,322 $14,787

Net Cash Flow $3,361 ($780) ($2,618) ($345) ($2,856) ($82) ($4,995) $823 $4,718 $4,818 $7,343 $1,523

Cash Balance $47,661 $46,881 $44,263 $43,917 $41,062 $40,980 $35,985 $36,808 $41,525 $46,343 $53,687 $55,210

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Appendix

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Appendix



Appendix

Page 7

Table: Balance Sheet

Pro Forma Balance Sheet

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

Current Assets

Cash $44,300 $47,661 $46,881 $44,263 $43,917 $41,062 $40,980 $35,985 $36,808 $41,525 $46,343 $53,687 $55,210Other Current Assets $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000Total Current Assets $47,300 $50,661 $49,881 $47,263 $46,917 $44,062 $43,980 $38,985 $39,808 $44,525 $49,343 $56,687 $58,210

Long-term Assets Long-term Assets $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 Accumulated Depreciation $0 $666 $1,332 $1,998 $2,664 $3,330 $3,996 $4,662 $5,328 $5,994 $6,660 $7,326 $7,992Total Long-term Assets $40,000 $39,334 $38,668 $38,002 $37,336 $36,670 $36,004 $35,338 $34,672 $34,006 $33,340 $32,674 $32,008Total Assets $87,300 $89,995 $88,549 $85,265 $84,253 $80,732 $79,984 $74,323 $74,480 $78,531 $82,683 $89,361 $90,218

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 $4,743 $4,887 $5,522 $6,218 $6,285 $6,965 $6,087 $7,269 $7,606 $7,690 $8,190 $7,170Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Current Liabilities $0 $4,743 $4,887 $5,522 $6,218 $6,285 $6,965 $6,087 $7,269 $7,606 $7,690 $8,190 $7,170

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Liabilities $0 $4,743 $4,887 $5,522 $6,218 $6,285 $6,965 $6,087 $7,269 $7,606 $7,690 $8,190 $7,170

Paid-in Capital $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000Retained Earnings ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) ($7,700) Earnings $0 ($2,048) ($3,638) ($7,558) ($9,265) ($12,853) ($14,281) ($19,064) ($20,089) ($16,374) ($12,307) ($6,130) ($4,252) Total Capital $87,300 $85,252 $83,662 $79,742 $78,035 $74,447 $73,019 $68,236 $67,211 $70,926 $74,993 $81,170 $83,048Total Liabilities and Capital $87,300 $89,995 $88,549 $85,265 $84,253 $80,732 $79,984 $74,323 $74,480 $78,531 $82,683 $89,361 $90,218

Net Worth $87,300 $85,252 $83,662 $79,742 $78,035 $74,447 $73,019 $68,236 $67,211 $70,926 $74,993 $81,170 $83,048

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