egger's roast coffee
TRANSCRIPT
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Egger's Cofee Roasters
Business Plan
Invest $800,000 cash savings for capital equipment and "working capital.
Bu! apital %qupment &oasting 'achines# for $()0,000 during organi*inBu! +reen unroasted# oee Beans for cash on deliver! - $/pound afte
dditional variale cost per pound roasted for fuel, laor, packaging, tran
verage time from order to deliver! is 1 month
&ent, 2tilities, Insurance, Bookkeeping, etc 34ed costs# - $10,000/month
7ell roasted, packaged, and delivered eans to retailer for $/pound
verage time from deliver! until when retailer pa!s is months 9!pical "
Sounds like a no-lose proposition!
Scenario 1- Assume steady orders & sales of $25,000 pounds per month
Prot & Loss (P&L) Statement [Simplied]
2nit 7ales in pounds#
7ales &evenue
+eneral ; dministrative +;# %4pense
!ears straight line on $()0,000 roasting equipment#
:et Pro3t calculated monthl!#
ggregate Pro3t
:ote that the usiness is pro3tale from the 3rst month
5irst !ear?s pro3ts are $00,000 - an outstanding return on m! $800,000 i
Statement o Cash Flos [Simplied]
2nit 7ales in pounds#
ash &eceived
apital Purchases
+eneral ; dministrative 5i4ed# %4pense
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(0,000 pounds per month for months )-
100,000 pounds per month for months E-F
00,000 pounds per month for months 10-1
and so onG
Prot & Loss (P&L) Statement [Simplied]
2nit 7ales in pounds#
7ales &evenue -- matched to when order con3rmed
+eneral ; dministrative %4pense
!ears Aat line on $()0,000 roasting equipment
:et Pro3t calculated monthl!#
ggregate Pro3t
2nder this scenario, total orders equal $.E( million
Statement o Cash Flos [Simplied]
2nit 7ales in pounds#
ash &eceived
apital Purchases
and total pro3ts equal $1.F( million. hat a "reat #usiness, ri"ht
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+eneral ; dministrative 5i4ed# %4pense
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" In an emergenc!, I can orrow up to another $800,000 from friends and famil!
period for usinessr receiving ulk order for roast eans "variale cost" as depends on numer of
portation, etc to deliver eans to retailer is $/pound
- $10,000 per !ear"5i4ed ost" alled a "34ed cost" ecause it doesn6t depend
:et 0" Pa!ment 9erms#
Scenario 1- Assume steady unit sales of 25,0
3rst order placed in J
Scenario 1 - %rot and 'oss Statement - (alculate
Krgani*ing Period Januar! 5eruar! 'arch
(,000 (,000 (,000
0 $1(0,000 $1(0,000 $1(0,000
0 $10,000# $10,000# $10,000#
0 $100,000# $100,000# $100,000#
0 $1(,000# $1(,000# $1(,000#
0 $(,000 $(,000 $(,000
0 $(,000 $(0,000 $E(,000
vestment@
Scenario 1 - (ash *lo Statement - (alculated )oKrgani*ing Period Januar! 5eruar! 'arch
(,000 (,000 (,000
$800,000
$()0,000#
$10,000# $10,000# $10,000#
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$100,000# $100,000# $100,000#
$0,000 $110,000.00# $110,000.00# $110,000.00#
$()0,000# $(0,000.00# $E0,000.00# $8E0,000.00#
+)arch - %oint of )a
$0,000 $1(0,000.00 $)0,000.00 $E0,000.00#
%ut it on my credit ca
$(,000 of m! original $800,000 still in the ank.
d.
Scenario 2 - Assume Rapid Increases in Sales
Scenario 2 - %rot and 'oss Statement - (alculateKrgani*ing Period Januar! 5eruar! 'arch
(,000 (,000 (,000
0 $1(0,000 $1(0,000 $1(0,000
0 $10,000# $10,000# $10,000#
0 $100,000# $100,000# $100,000#
0 $1(,000# $1(,000# $1(,000#
0 $(,000 $(,000 $(,000
0 $(,000 $(0,000 $E(,000
Scenario 2 - (ash *lo Statement - (alculated )oKrgani*ing Period Januar! 5eruar! 'arch
(,000 (,000 (,000
$800,000
$()0,000#
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$10,000# $10,000# $10,000#
$100,000# $100,000# $100,000#
$0,000 $110,000.00# $110,000.00# $110,000.00#
$()0,000#
$0,000 $1(0,000.00 $)0,000.00 $E0,000.00#
Start to /orro from
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ounds roasted#
n amount of eans roasted#
0 pounds per month
nuar!, 3rst product delivered in 5eruar!, 3rst cash pa!ment received
)onthly
pril 'a! June Jul!
(,000 (,000 (,000 (,000
$1(0,000 $1(0,000 $1(0,000 $1(0,000
$10,000# $10,000# $10,000# $10,000#
$100,000# $100,000# $100,000# $100,000#
$1(,000# $1(,000# $1(,000# $1(,000#
$(,000 $(,000 $(,000 $(,000
$100,000 $1(,000 $1(0,000 $1E(,000
thlypril 'a! June Jul!
(,000 (,000 (,000 (,000
$1(0,000 $1(0,000 $1(0,000 $1(0,000
$10,000# $10,000# $10,000# $10,000#
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$100,000# $100,000# $100,000# $100,000#
+April - %oint of (ash *lo /reakeen.
$)0,000.00 $)0,000.00 $)0,000.00 $)0,000.00
$8>0,000.00# $EF0,000.00# $E(0,000.00# $E10,000.00#
imum Total (ash radon.
$>0,000.00# $10,000.00 $(0,000.00 $F0,000.00
rd!
)onthlypril 'a! June Jul!
(0,000 (0,000 (0,000 100,000
$>00,000 $>00,000 $>00,000 $00,000
$10,000# $10,000# $10,000# $10,000#
$00,000# $00,000# $00,000# $)00,000#
$1(,000# $1(,000# $1(,000# $1(,000#
$E(,000 $E(,000 $E(,000 $1E(,000
$1(0,000 $(,000 $>00,000 $)E(,000
thlypril 'a! June Jul!
(0,000 (0,000 (0,000 100,000
$1(0,000 $1(0,000 $1(0,000 $>00,000
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$10,000# $10,000# $10,000# $10,000#
$00,000# $00,000# $00,000# $)00,000#
$0,000.00# $0,000.00# $0,000.00# $110,000.00#
$1>0,000.00# $1F0,000.00# $(0,000.00# $>0,000.00#
mer"ency sources - friends & family
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in pril
ugust 7eptemer Kctoer
(,000 (,000 (,000
$1(0,000 $1(0,000 $1(0,000
$10,000# $10,000# $10,000#
$100,000# $100,000# $100,000#
$1(,000# $1(,000# $1(,000#
$(,000 $(,000 $(,000
$00,000 $(,000 $(0,000
ugust 7eptemer Kctoer
(,000 (,000 (,000
$1(0,000 $1(0,000 $1(0,000
$10,000# $10,000# $10,000#
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$100,000# $100,000# $100,000#
$)0,000.00 $)0,000.00 $)0,000.00
$E0,000.00# $>0,000.00# $(F0,000.00#
$1>0,000.00 $1E0,000.00 $10,000.00
ugust 7eptemer Kctoer
100,000 100,000 00,000
$00,000 $00,000 $1,00,000
$10,000# $10,000# $10,000#
$)00,000# $)00,000# $800,000#
$1(,000# $1(,000# $1(,000#
$1E(,000 $1E(,000 $>E(,000
$(0,000 $8(,000 $1,00,000
ugust 7eptemer Kctoer
100,000 100,000 00,000
$>00,000 $>00,000 $00,000
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$10,000# $10,000# $10,000#
$)00,000# $)00,000# $800,000#
$110,000.00# $110,000.00# $10,000.00#
$)E0,000.00# $(80,000.00# $EF0,000.00#
start to panic ehaust reseres
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:ovemer =ecemer
(,000 (,000
$1(0,000 $1(0,000
$10,000# $10,000#
$100,000# $100,000#
$1(,000# $1(,000#
$(,000 $(,000
$E(,000 !"##$###
:ovemer =ecemer
(,000 (,000
$1(0,000 $1(0,000
$10,000# $10,000#
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$100,000# $100,000#
$)0,000.00 $)0,000.00
$((0,000.00# $(10,000.00#
$(0,000.00 $F0,000.00
:ovemer =ecemer
00,000 00,000
$1,00,000 $1,00,000
$10,000# $10,000#
$800,000# $800,000#
$1(,000# $1(,000#
$>E(,000 $>E(,000
$1,(E(,000 !%$#$###
:ovemer =ecemer
00,000 $00,000
$00,000 $00,000
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$10,000# $10,000#
$800,000# $800,000#
$10,000.00# $10,000.00#
$1,000,000.00# $1,10,000.00#
una#le to pay for #eans deliered - "o #ankrupt!
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ear
Januar! 5eruar! 'arch
$1(0,000 $1(0,000 $1(0,000
$10,000# $10,000# $10,000#
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$100,000# $100,000# $100,000#
$)0,000.00 $)0,000.00 $)0,000.00
$)E0,000.00# $)>0,000.00# $>F0,000.00#
$>>0,000.00 $>E0,000.00 $)10,000.00
ear
Januar! 5eruar! 'arch
$)00,000 $)00,000 $)00,000
$1,00,000 $1,00,000 $1,00,000
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$10,000# $10,000# $10,000#
$1,00,000# $1,00,000# $1,00,000#
$)10,000.00# $)10,000.00# $)10,000.00#
$1,0,000.00# $,0>0,000.00# $,))0,000.00#
oes it "et #etter, eer
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pril 'a! June
$1(0,000 $1(0,000 $1(0,000
$10,000# $10,000# $10,000#
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$100,000# $100,000# $100,000#
$)0,000.00 $)0,000.00 $)0,000.00
$>(0,000.00# $>10,000.00# $E0,000.00#
$)(0,000.00 $)F0,000.00 $(>0,000.00
pril 'a! June
800,000 800,000 800,000
$,)00,000 $,)00,000 $,)00,000
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$10,000# $10,000# $10,000#
$>,00,000# $>,00,000# $>,00,000#
$810,000.00# $810,000.00# $810,000.00#
$>,(0,000.00# $),00,000.00# $),8E0,000.00#
noonly if
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Jul! ugust 7eptemer Kctoer
$1(0,000 $1(0,000 $1(0,000 $1(0,000
$10,000# $10,000# $10,000# $10,000#
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$100,000# $100,000# $100,000# $100,000#
$)0,000.00 $)0,000.00 $)0,000.00 $)0,000.00
$>0,000.00# $1F0,000.00# $1(0,000.00# $110,000.00#
$(E0,000.00 $10,000.00 $(0,000.00 $F0,000.00
Jul! ugust 7eptemer Kctoer
800,000 800,000 800,000 800,000
$),800,000 $),800,000 $),800,000 $),800,000
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$10,000# $10,000# $10,000# $10,000#
$>,00,000# $>,00,000# $>,00,000# $>,00,000#
$1,(F0,000.00 $1,(F0,000.00 $1,(F0,000.00 $1,(F0,000.00
$>,80,000.00# $1,F0,000.00# $100,000.00# $1,)F0,000.00
sales leel o3
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:ovemer =ecemer
$1(0,000 $1(0,000
$10,000# $10,000#
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$100,000# $100,000#
$)0,000.00 $)0,000.00
$E0,000.00# $>0,000.00#
$E>0,000.00 $EE0,000.00
+4eturn of ori"inal (apital inested - anuary 6ear
:ovemer =ecemer
800,000 800,000
$),800,000 $),800,000
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$10,000# $10,000#
$>,00,000# $>,00,000#
$1,(F0,000.00 $1,(F0,000.00
$>,080,000.00 $),E0,000.00
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.
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