galcage biz plan

8/8/2019 Galcage Biz Plan

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Business Plan

JONATHAN HUANG JONATHAN LEONG NG HUITINGDERRICK WEE TAN YANGTENG GERARD LIM CHEONG FUJING JANA GOLFMANN

Contact: 6452 2443 [email protected]



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INTRODUCTION

We offer an assortment of exquisite,PETITE desserts to the most delicate of taste buds.

Glaçage is a start-up petite desserts cafe located in Ann Siang Hill, Singapore. Consumer spending on food inSingapore has been on a constant rise in recent years. This increasing affluence and changing spending habitsprovide a very promising market to tap into. According to the USA 2009 National Restaurant Association's"What's Hot" chefs’ survey, bite -size desserts are the No.2 food trend. As the consumer market in Singapore hasnot been exposed to such miniature offerings, it would be an exciting new concept that could potentiallystimulate the growth of such a trend here in Singapore as well.

Glaçage aims to offer its products using a value-based pricing strategy, charging a premium for the quality andunique dining experience that we offer, to meet the demands of sophisticated and affluent females with ageneral appreciation for lavish lifestyles.

To this end, Glaçage will be hiring a crème de la crème kitchen team, which would consist of one ExecutivePastry Chef (the head chef) and four Sous Pastry Chefs (the assistants), to ensure that the quality of our dessertsremain the core of our business model.

This plan outlines our company concept, our mission, our operations and marketing plans, which we have inmind, to achieve our goals.

OUR OBJECTIVES FOR THE NEXT 3 YEARS1. To breakeven with positive profits

2. To provide a satisfying consumer experience

3. To become the top 2 specialty dessert brands in Singapore

OUR VISION

To be regionally recognized as a premium dessert cafe; a meeting house where friends gather, share and buildlives together.

OUR MISSION

Glaçage & Co, LLP aspires to offer an assortment of exquisite, petite desserts to the most delicate of taste buds.We aim to do so by providing dedicated, sincere and personal service to our customers. We pledge to use onlyfresh quality ingredients in our products. At Glaçage, we believe that our customers deserve nothing short of thebest and aim to achieve that through a client-centric approach.

Executive Summary



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Currently, there is a relative lack of petite desserts restaurants in Singapore catering to the sophisticatedfemales in Singapore which includes both female expatriates and working executives. Often, these females, whotend to have sweet tooth cravings, find themselves torn between dessert choices; they want to try a bit of everything but practicality restricts them to having only one dessert choice per person.

Glaçage aims to cater to this specific need from our target segment by producing exquisite, petite desserts thatwould allow our customers to satisfy their sweet tooth cravings without having to compromise on dessertsvariety. Our smaller-sized desserts, which are priced at a relatively lower level as compared to full-sized dessertsat other desserts retail establishments, would allow our customers to satisfy their needs without fear of over-eating or spending.

In addition, the relative attractiveness and/or profitability of the specialty desserts industry in Singapore

presents itself as a business opportunity for Glaçage, as shown by the results of the Porter’s Five Forces Analysis.Key findings include relatively low level of threats provided by potential entrants into the industry, theconsumers and suppliers of specialty desserts in Singapore, and the incumbent firms within the industry.However, the relatively high threat of substitutes for desserts in Singapore negates some of the attractiveness of the specialty dessert industry (See Appendix 1).

Finally, the general environment also appears to favour the start-up of Glaçage. Through a SWOT analysis of theexternal and internal factors that Glaçage is exposed to, we see that increasing trends in consumer spending onfood, chocolate consumption and the Singapore government’s efforts in stimulating tourism, there is immensepotential in Singapore’s specialty desserts industry. The full findings of the SWOT analysis can be found in

Appendix 2.

MARKET SEGMENTATION, TARGETING & POSITIONING

The dessert market is segmented according to gender, affluence level, and lifestyle. Glaçage targets thesophisticated, affluent females segment with a general appreciation for lavish lifestyles. This includes bothfemale non-working expatriates and working executives. This segment is targeted because of its high growth

potential as education levels among females in Singapore increases. It is also targeted because their highdisposable income levels translate to greater profitability for Glaçage.

Glaçage positions itself as a premium specialty dessert brand in Singapore whose unique selling proposition liesin its ability to offer a fun and luxurious dining experience by allowing customers to mix and match assortmentsof bite-sized, exquisite desserts.

Customer Needs & Business Opportunity

Marketing



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PRODUCTS & SERVICESGlaçage prides itself as being an artist. Each of our desserts is therefore a unique artistic creation. Glacage’sofferings include not only an array of exquisite bite-sized desserts but also complimenting premium tea andcoffee beverages. Glaçage’s bite -sized desserts will be served exquisitely using miniature plates, accompanied

with miniature teapot sets, cups and utensils. To build brand awareness, each of our desserts will feature a minichocolate card with the Glaçage logo.

Exclusive specialty items will be featured during promotional seasons to generate revenue and create marketinghype. For example, an annual Christmas selection will be made available only during December.

PRICING STRATEGYGlaçage undertakes a value-based pricing strategy, charging a premium for the quality and unique diningexperience that we offer. Our desserts will be priced non-uniformly from $6 - $8 per dessert, while teas andbeverages are priced from $7 - $9.

PLACE, DISTRIBUTION CHANNEL & STRATEGIC PARTNERSGlaçage will be situated at Ann Siang Hill - an increasingly thriving artsy space with a unique personality of itsown. It is located slightly away from the Central Business District, which enables us to conveniently reach out toour targeted female executives without bearing the inconveniences of costly transportation and low crowdduring non-working hours. Ann Siang Hill also has other pull-factors such as bars, quaint book shops (BooksActually), fashion boutiques (Agnés B, Edmundser), and avant-garde lifestyle stores (Style, Nordic), which canserve to attract our targeted non-executive customers.

To build brand awareness, Glaçage plans to distribute our artistic creations through our strategic partners, e.g.

UOB Lady’s Card a nd Tanglin Club. This can be done via sponsorships for their events that are attended by ourtargeted segment, such as to sponsor Glaçage’s desserts at UOB Lady’s Card events or Tanglin Club’s LadiesLuncheons. Glaçage eventually aims to launch a catering line as a secondary distribution channel.

PROMOTION & BRANDING STRATEGYGlaçage aims to focus on building brand awareness from 11Q1 – 11Q4. From 12Q1, the focus shifts towardsachieving top-of-mind recall among customers.

Public Relations

Glaçage website

Facebook group Twitter broadcast “The Glaçage Story” – A publication depicting a

fictional Glaçage storyline to give Glaçage itspersonality. This will be displayed on each table

Event sponsorships, e.g. UOB Ladies Card Events,Tanglin Club Ladies Luncheons

Annual Glaçage Gala Event to build community(by exclusive invitation only)

Advertising

Food blogs, e.g. Hungry Go Where, Lady Iron

Chef. Editorial features for exclusive specialty items

will be advertised through food blogs as well. ELLE Magazine The Sunday Times Lifestyle section

Sales Promotion

Discount tie- ups with UOB Lady’s Card,Citibank Platinum Card etc.



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The management of Glaçage consists of the following personnel:

STAFFThe quality of our desserts and customer satisfaction are core to us. To achieve this, one Executive Pastry Chef (the head chef), four Sous Pastry Chefs (the assistants), two managers and six service staff will be hired.

All staff except the head chef will rotate between afternoon and night shift. The Head Chef supervises the fourSous chef. To train highly efficient work teams, floor staff will be given the autonomy to the operations of thebistro. This enables them to feel more empowered, therefore resulting in greater job satisfaction. Furthermore,it would give our customers a better experience at Glaçage as we seek to give them our most dedicated service.

Indeed, making the Glaçage experience as seamless as possible is part of our business proposition.The hiring process for floor staff will begin 2 months prior to the launch of our flagship outlet to give lead timefor preparation and staff training. The Executive and Sous Pastry Chefs will join the team 4 months prior toGlaçage ’s official launch to enable sufficient time for dessert creation and menu design.

COMPANY CULTURE PLANValues : Commitment, Innovative, People-First Approach, Team Oriented, Entrepreneurial. We uphold theGlaçage values at all levels of our operations

Motto : We aspire to provide a wholesome experience in Glacage – more than food, more than quality service,simply put, more than words can explain.

STAFFING PLANKitchen staff : Executive Pastry Chef (1) should be of good repute, and Sous Pastry chefs (4) should beestablished chefs with at least 10 years of service under their belt. 2 Sous Pastry Chefs will be assigned per shift.

Management & Key Personnel

Chief Executive Officer JONATHAN HUANGChief Financial Officer & Secretary DERRICK WEE Chief Operations Officer JONATHAN LEONGDirector, Sales JANA GOLFMANNDirector, Human Resources TAN YANG TENGDirector, Marketing NG HUI TINGDirector, Quality Assurance GERARD LIMDirector, Product Innovation & CHEONG FU JING Visual Merchandising



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Service staff : 2 Service ICs of decent repute within the F&B industry will each take charge of one shift, while 3service staff will be allocated per shift. Service ICs and other staff members should have a minimum of 8 yearsand 4 years experience respectively. The former should be of the ideal age of 30 to 40, and the latter 25 to 35.

Management : One management personnel should be on the grounds to oversee operations per shift.

Recruitment : This involves 2 stages of assessment: 1) face to face interview, 2) service situation simulations.

SELECTION, TRAINING AND DEVELOPMENT PLAN

1) Interview Process

The interview process will be a stringent one. The candidate’s personality and attitudetowards service would be what we wish to discover during the interview process. There willbe at least 2 rounds of interview, firstly by the HR manager and then by the CEO. Anadditional round will be conducted by chosen service staff themselves, but it will onlybe possible if we were to expand our business and hence employ more employeesthan the initial batch. This will give them some sense of participation in the company,and hence making them more responsible and committed to the company’s cause.

2) Service situation simulations

Role-play will be conducted to assess the candidate’s ability to respond to situations that could happen duringtheir course of work. The candidat e’s attitude towards good service and ability to remain composed underpressure will be tested in this exercise. Also, the ability of the candidate to make desirable decisions in theabsence of the management would be an attribute to look out for.

3) Attachments

In lieu of future expansion, any candidate under consideration after the previous rounds would be asked toundergo attachment for a week, in which they could understand kitchen operations and watch how theincumbents go about doing their work. This will help them in deciding if they still want to work for us, as well asallow us to assess their level of enthusiasm as well as their ability to serve in real-life situations.

4) Customer feedback

Customer feedback would be important in determining if the employee is up to scratch. If an employee receiveda genuine complaint from the customers in which he is guilty of inept service, he will get a ‘p (personal) -strike’.The 2 nd complaint against him will result in the whole department, i.e. the service or kitchen department, gettinga ‘t (team) -strike’. This is to encourage their colleagues to be more proactive in giving the offender feedback onhis performance and helping him out when necessary. An employee would have to be fired if he received 3strikes, as long as at least one of them is a ‘p -strike’, i.e. 1 ‘p -strike’ and 2 ‘t -strikes’. However, even if he receivesmore than 3 strikes, he would not be fired unless he hit a ‘p -strike’.



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Service staff would be rewarded for providing good service. It will be j udged in combination of customer’sfeedback and assessment from the management. An employee who avoided any strikes during the year wouldreceive an extra one month bonus, and the staff of the year would be rewarded with an additional one monthbonus on top of the above-mentioned.

5) Employee feedback

Every employee would be heard. There will be a dialogue session after onemonth upon joining the company. The employees will be asked to voice outtheir concerns, and practically anything with regard to their course of work.This would allow us to understand the employee more and adopt goodsuggestions provided, as well as letting them know about our point of view.Any simmering unhappiness should be nipped in the bud as early as possible,and this session hopes to achieve that.

6) Breaking down of management-employee barriers

Managers on duty for the day would be required to be part of the service staff for at least half of the shift they are on, on top of doing their daily work andsupervising. This is such that they can signal to the employees that ‘we’re allinto this together’ and foster stronger ties with the employees, and as well asalleviating manpower shortage during peak periods of the day.

Before the first outlet is launched, a food shop license will be required for our operations. The license, whichcosts $120 a year and five days to process, gives us the authority to sell food and drinks. An additional liquorlicense, which costs up to $1,760, will be required if we choose to sell alcohol in our premises.

Operating hours of Glaçage will be from 12noon to 12midnight. The opening hours will be split into 2 shifts,from noon to 7pm, and 6pm to 1am. The staffing for the evening shift will be slightly heavier as the crowd fordesserts is typically bigger at night.

SUPPLIESWe would require supplies for 3 general categories - initial bistro decoration, raw materials as well as machinery.The interior decor and furnishing will be supervised and procured by the Director of Product Innovation & VisualMerchandising, and will be assisted by an interior designer. Raw materials will be purchased at as low a price aspossible without compromising on quality. Hopefully, long term relationships and (hopefully) larger orders withour suppliers would enable them to quote us favourable prices for our raw materials. The machinery that wouldbe required to produce our miniature desserts would be acquired depending on our needs and the menu.

Operations



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DESSERT PRODUCTION & MENU CREATION

The head chef and the Director of Product Innovation & Visual Merchandising will work closely in the productionof the menu. Given that a wide variety is part of Glaçage’s unique selling point, the Executive Pastry Chef’screativity and experience will be heavily relied upon to come up with a diversified menu.

Desserts will be produced in batches, using a combination of machinery and thechefs’ artistic flair. The desserts will be produced in small batches to ensurefreshness, with each shift making an average of 3 batches. The Executive PastryChef will be given flexible working hours, to enable him to look over both shifts.

FACILITIESThe pioneer outlet will say a lot about us; it paves the way for our brand and dictates the kind of demographywe are targeting. With this in mind, we aim to launch the very first outlet along Ann Siang Hill.

Moving forward, when the management decides that it is time to expand, other potential locations wouldinclude Robertson Quay, Orchard Road, Dempsey Hill, as well as Marina Bay Sands. Similar to the Ann Siang Hillflagship outlet, these places are hotspots for where our target group congregates.

QUALITY CONTROL

As part of our drive to constantly improve our service standards, we will have staff role-playing as customers andservice staff to find out what customers really look out for. For example, we can find out how to shorten servicetime and handle customers complains better. Subsequently, other than tying bonuses to sales, we will peg it toour net promoter score (NPS). A positive NPS based on customer’s feedba ck will ensure that we only earn goodprofits as customers are happy with our services and our staff will not engage in hard selling. There will also be a

no barrier policy such that even the lowest ranking service staff can call or email the CEO directly should therebe any changes to be made. Staff will be accorded a budget to entice unhappy customers in the form of vouchers or free dessert to empower our staff and hence raise their sense of ownership in the company. Staff will also be required to address all customers by their first name so that there will be service intimacy.

Food quality will be the hallmark for Glacage and we will make every effort to ensure that only the finest isserved to our customers. The CEO will taste one item from the menu daily to ensure quality and any fault will becorrected immediately. Staff will also conduct daily stock take to generate purchase order to ensure freshness of ingredients based on a first-in first-out policy. As part of our R&D efforts, new dishes will be introduced everyquarter and during festive occasions. However, they have to be approved by the management first and can onlybecome standard items if there is overwhelming customers’ feedback as they are the best judge for quality. Wewill also enforce a no- compromise policy by treating an item as “sold out” once we are short of a certainingredient due to seasonal or other factors. There will also be a hassle-free system for customers to ask for areplacement if the dishes are not up to their expectations.

Polices will be reviewed every year and staff will undergo relevant courses to upgrade themselves to constantlyachieve greater service standards.



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START-UP FUNDING

The company will be owned by the original 8 founders, who will contribute $37,500 and 12.5% of the share. Thiswill cover start-up requirements, and provide the business with a cash cushion for possible expansion.

Key assumptions

We assume that

o There is a slow-growth economy, without major recessiono There are no unforeseen changes in technology to make products immediately obsoleteo Our products will be well received due to the trend of bite-sized desserts across the globe

BREAK-EVEN ANALYSISFor our break-even analysis, we assume running costs such as our full payroll, rent, utilities, and an estimation of

other costs . Our break-even analysis shows that we need unit sales of at least 9,648 per month to break even.

Financial Plan



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APPENDIX 1

Name: Specialty Desserts Data from SegmentRankings

Enter H for ahigh force, L

for a low Match

I n t e n s

i t y o

f C o m p e

t i t i v e

R i v a

l r y

Number of competitors l 0

Industry growth rate l 1

Fixed costs l 0

Storage costs l 0

Product differentiation h 0

Switching costs l 1Exit barriers l 0

Strategic stakes h 1

T h r e a

t o

f a

N e w

E n

t r a n

t Economies of scale l 1

Product differentiation h 0

Capital requirements l 1

Switching costs l 1

Incumbent's control of distribution channels l 1

Incumbent's proprietary knowledge h 0

Incumbent's access to raw materials h 0

Incumbent's access to government subsidies h 0

T h r e a

t o

f a

S u

b s

t i t u t e

P r o

d u c

tRate of improvement in price/perf. relationship ofsubstitute product h 1

Profitability of industry producing substitutes l 0

Switching costs for the buyer of a product l 1

P o w e r o

f B u y e

r s

Concentration of buyers relative to industrymembers h 1

Volume of purchase l 0

Product differentiation of industry members h 0

Threat of backward migration by buyers h 1

Buyer's knowledge about industry members' coststructure h 1

Extent of buyer's profits h 0

Cost savings from the industry members' products l 1

Appendices



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Importance of the industry members' input to thequality of buyer's final product h 0

Percentage of total buyer's cost spent on theindustry members' input l 0

P o w e r o

f S u p p

l i e r s Concentration relative to industry members l 0

Availability of substitute products h 0

Importance of industry members to the supplier l 1

Differentiation of the supplier's products andservices l 0

Switching costs of the industry member l 0

Threat of forward integration by the supplier l 0

Threat of New Entrants - Low

The explicit barrier to entry for new companies is low since setting up a cafe does not require a lot of capital or resources. Moreover, raw materials are not only cheap but easy to obtain as well. However,the implicit barriers to entry are relatively high. The presence of well-established, popular café chainsand dessert houses play a huge role in deterring potential entrants from planning on entering the

market. The fact that product differentiation is high also makes it difficult for potential entrants tooffer products that can stand out and steal market share away from existing companies. As such, thethreat of new entrants is relatively low.

Nonetheless, we cannot ignore the fact that there is still demand for places where people can go tohang out and enjoy good desserts. Brand loyalty in this industry is low and consumers enjoy trying outnew places.

012345

Intensity ofCompetitive Rivalry

Threat of a NewEntrant

Threat of a

Substitute ProductPower of Buyers

Power of Suppliers

Specialty Desserts



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Threat of a Substitute Product - High

Known as a food haven, Singapore offers a wide variety of food choices besides desserts. Typically,consumers demand for desserts such as chocolates and cakes to satisfy their sweet tooth cravings aftermeals. Increasingly, new kinds of “desserts” in the form of yogurts, pancakes and/or waffles are

becoming widely available. Assuming that dessert consumers have a preference to variety wheredesserts are concerned, the threat of a substitute product is further amplified.

Power of Buyers – Low

The power of buyers in the specialty dessert industry is relatively low as most buyers are individualswho patronize the various desserts outlets. Thus, as compared to the missiles system industry wherebythe buyers are large organizations like the army, the volume of purchase per consumer is relatively low.This prevents the buyers from being able to influence the specialty desser t restaurants’ businessdecisions on a large extent.

Intensity of Competitive Rivalry – Low

As compared to the hairdressing industry, the specialty dessert industry in Singapore has relativelyfewer direct competitors. The definition of a specialty dessert café would be one which sells dessertsas its main business operations. Going by this definition, incumbents in the specialty dessert industrywould include the higher-end businesses like Canele, Bakerzin, The Marmalade Pantry and LaurentBernard, which tends to be situated in the central districts, while smaller names like Kki andCheesecake Café dot the residential and business districts. Product differentiation within this industryis also considerably high, as firms are keen to differentiate themselves from competitors and cater tospecific consumer demands. As a result, specialty offerings differ from firms to firms eg. Canele isreknowned for its Opera cake and Laurent Bernard for its chocolate-themed desserts etc. These factorscontribute to a relatively low intensity of competitive rivalry within the specialty dessert industry.

Power of Suppliers – Low

The major supplies required for the specialty desserts industry include flour, sugar, eggs etc.Differentiation between these different supplies is relatively low. As such supplies are readily availablein the form of markets and distributors, the switching costs for firms in the specialty dessert industryare relatively low as well. Suppliers of these materials generally also do not have the expertise inbaking or production of specialty desserts. Hence the threat of forward integration by these suppliersis generally low.



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APPENDIX 2

External (Opportunities & Threats)

Consumer spending on food in Singapore has been on a constant rise in recent years. This increasingaffluence and changing spending habits provide a very promising market to tap into. According to theUSA 2009 National Restaurant Association's "What's Hot" chefs’ survey, bite -size desserts are the No.2food trend. As the consumer market in Singapore has not been exposed to such miniature offerings, itwould be an exciting new concept that could potentially stimulate the growth of such a trend here inSingapore as well. Considering that the target market places an increasing emphasis on lifestyle, theyprize experience and are not only receptive to new ideas and experiences, but relish them as well.Although the number of established competitors is a concern and may seem intimidating, it may not betoo prominent a threat as consumers enjoy trying new things and often source for new places topatronize.

With chocolate consumption increasing at 25% annually in Asia Pacific, there is clearly a demand forsuch sweet desserts. Moreover, Glacage would not only be able to provide traditional pieces of chocolate, but also a variety of desserts and cakes in that same miniature size. As such, the companywould be able to satisfy this growing consumption and satiate all sorts of sweet cravings.



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Furthermore, in an effort to stimulate tourism, the government has been promoting Singapore as abusiness and fashion hub, and also drawing in huge events such as the Formula One night races. As aresult, tourism receipts have been increasing at an average of 10% annually. Moreover, parties andevents are becoming more widespread. Catering services could be a potentially lucrative market toenter as most of these functions prefer offering small treats instead of full meals.

However, the increasing emphasis on a healthy lifestyle could prove to be a threat for Glaçage aspeople tend look to become more weight and health-conscious. In a bid to mitigate this threat, Glaçagewould be looking to create healthier offerings in the form of low-fat or less sugar desserts.

Internal (Strengths & Weaknesses)

Being the only place in Singapore that exclusively offers exquisite bite-sized desserts, the uniqueness of the concept itself sets Glaçage apart from its competitors. Such miniature portions eliminate dilemmaswhen deciding what to eat, and instead allows customers to enjoy a variety of desserts at any giventime. Also, our sizes allow the weight or health-conscious to enjoy a little taste without having to feelguilty. The employment of top class chefs ensure product quality and consistency, while our stringenthiring process and training for service staff will help maintain excellent service from passionate andengaging staff. Specializing on desserts alone would also raise our credibility. Against a comfortableand chic setting, we would provide an all-rounded personal experience for customers that not manyplaces offer.

Nonetheless, being limited to only desserts could also be a potential stumbling block. Consumers mayprefer the convenience of being able to have a full meal at one place, or the option of having food

along with some desserts. Despite the diversity of expertise and dedication of the directors, we arecurrently relatively inexperienced. As such, we might not be able to secure the best deals fromsuppliers at the start, and may also take some time to familiarize ourselves with the industry. With alow level of capital, starting up may prove to be difficult, which is why we are planning to startconservatively by opening one outlet first. Only when we have a better understanding and position inthe market would we consider expanding our business.



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APPENDIX 3Projected Pro Forma Profit & Loss

FYF 2011 FYF 2012 FYF 2013S$ S$ S$

Sales 500,000 620,000 740,000Less: Direct Cost of Sales 72,000 79,200 82,800Less: Other Production Expenses - - -

Gross Margin 428,000 540,800 657,200

Payroll and other employee expenses 429,594 429,594 429,594Occupany expenses 120,000 120,000 120,000

Sales and Marketing expenses 4,650 2,600 2,600Leased Equipment Expenses 10,000 10,000 10,000

Utilities 3,000 3,000 3,000Insurance 2,400 2,400 2,400

Other expenses - - -

Total Operating Expenses 569,644 567,594 567,594

Profit / (loss) before Interest and taxation (141,644) (26,794) 89,606

Interest Expense - - -

Taxation (1) - - -

Profit / (loss) for the year (141,644) (26,794) 89,606

Gross Margin % 85.6% 87.2% 88.8%Net Profit/Sales -28.3% -4.3% 12.1%

(1) Under the tax exemption scheme for new start-up companies, a newly incorporated company that satisfies

the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income* (excluding Singapore franked dividends) for each of its first three consecutive YAs.



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APPENDIX 4

Projected Cash Flow

FYF 2011 FYF 2012 FYF 2013

S$ S$ S$

Cash flows from operating activities

Cash receipts from customers 500,000 620,000 740,000

Cash paid to suppliers (40,000) (75,000) (72,000)Cash paid to employees (429,594) (429,594) (429,594)

Cash paid for operating expenses (260,050) (18,000) (138,000)Interest paid - - -

Taxes paid - - -

Net cash provided by (used in) operating activities (229,644) 97,406 100,406

Cash flows from investing activities

Purchases of property, plant and equipment - - -Proceeds from the sale of property, plant and equipment - - -

Net cash provided by (used in) invsting activities - - -

Cash flows from financing activities

Long-term borrowings - - -Cash received from the issuance of stock or equity 300,000 - -

Dividend payments - - -

Net cash provided by (used in) financing act ivities 300,000 - -

Net Cash Flow 70,356 97,406 100,406

Cash and cash equivalents at beginning of year - 70,356 167,762

Cash and cash equivalents at end of year 70,356 167,762 268,168



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APPENDIX 5

Projected Balance Sheet

FYF 2011 FYF 2012 FYF 2013

S$ S$ S$

ASSETS

Cash 70,356 167,762 268,168

Inventory 3,000 3,800 3,000Acccounts receivable - - -Prepaid Expenses 120,000 - -

Total Current Assets 193,356 171,562 271,168

Fixed Assets Gross - - -

Less: Accumulated Depreciation - - -

Total Fixed Assets - - -Other - - -

Total Assets 193,356 171,562 271,168

LIABILITIES & SHAREHOLDERS' EQUITY

Accounts Payable 35,000 40,000 50,000Wages Payable - - -

Current Borrowing - - -

Total Current Liabilities 35,000 40,000 50,000

Long-term Borrowing - - -

Others - - -

Total Liabilities 35,000 40,000 50,000

Paid-in Capital 300,000 300,000 300,000Retained Earnings - (141,644) (168,438)Earnings (141,644) (26,794) 89,606

Total Shareholders' Equity 158,356 131,562 221,168

Total Liabilities and Shareholders' Equity 193,356 171,562 271,168



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APPENDIX 6

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 12xecutive Chef

1) $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500Assistant Chef4) $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000ervers (6) $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000

Manager (2) $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000Dishwasher (1) $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750

otal payroll $30,250 $30,250 $30,250 $30,250 $30,250 $30,250 $30,250 $30,250 $30,250 $30,250 $30,250 $30,250



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APPENDIX 7

List of Equipment Rented Under Operation Lease

Dining Furniture

Shelving Unit 1Sofa 4Dining table w/ 2 chairs 20Kitchen EquipmentElectric oven 1Microwave 1Electronic scale 1Fruit juice extractor 1Waffle baker 1Hot water dispenser (2 Litre) 1Ice cream display freezer 1Under counter refrigerator 1service counter 1Ice machines 1Large refrigerators 1Milk Coolers 1Cash Register 1Expresso machine 1Tea makers 1

Coffee brewers 2

galcage biz plan

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