suds. assumptions portland population: 63,153 44% of the overall portland population, or 27,787...
TRANSCRIPT
SUDS
AssumptionsÞ Portland population: 63,153Þ 44% of the overall Portland population, or 27,787 individuals are between the ages of 18-44
Þ 15,801 non-family households in Portland Þ 28,990 of the units are occupied Þ 54.5% of the Portland housing units are occupied by non-family households - our target demographic
Þ 15,145 potential, overall Laundromat patrons Þ Target 20% of the potential patrons in Year 1, which is 15,145 x 20% = 3,029Þ 78,749 unique visits from patrons annually
Payroll Opening hours 7AM-11PM 16 hours/day Shift 1 Shift 2 7AM-3PM 3PM-11PM Hourly Pay Daily Pay regular staff 1 2 $ 3.75 $ 180.00 manager 1 1 $ 15.00 $ 480.00 Total Daily $ 660.00 Total Weekly $ 4,620.00 Total Yearly $ 240,240.00
Target Revenue Forecast
Assumption 15144 people in portland are our targeted customer
Targeted Market Share 20%
Targeted Customer 3029 Assume customer visit Suds every two weeks with 1 load of laundry
Annual Growth Rate 7%
Customer staying in Suds 80%
Customer buying coffee 50%
Customer buying food 40%
Customer buying beer 50%
Customer drops their laundry and leaves 20%
Year 1 Year 2 Year 3
Revenue
Number of Visit 78749 84262 90160
Washing $ 188,998.24 $ 202,228.11 $ 216,384.08 $ 3.00 /load
Drying $ 125,998.82 $ 134,818.74 $ 144,256.05 $ 2.00 /load
Laundry Service $ 110,248.97 $ 117,966.40 $ 126,224.05 $ 7.00 /load(wash-dry-fold)
Café $ 78,749.26 $ 84,261.71 $ 90,160.03 $ 2.50 /person
Food $ 75,599.29 $ 80,891.24 $ 86,553.63 $ 3.00 /person
Beer $ 110,248.97 $ 117,966.40 $ 126,224.05 $ 3.50 /person
Total Revenue $ 689,843.56 $ 738,132.61 $ 789,801.89
Cost AnalysisCost/ExpenseSmartcard system $ 80,000.00 Construction cost $ 200,000.00 Equipment(Washer&Dryer) $ 480,000.00 * 30 washers & 30 dryersUtilities(Café Cost) $ 75,000.00 Total Sunk Cost $ 835,000.00 * Borrow from Steel Head Capital, 7 years loan @ 6%
** Getting from 500 USM faculty, $110/each. Giving discount on returnsYear 1 Year 2 Year 3
Maintenance FC $ 1,800.00 $ 1,800.00 $ 1,800.00 * $150/monthRent (3,500 sq ft) FC $ 105,000.00 $ 105,000.00 $ 105,000.00 * $30/sq. ft.Payroll FC $ 240,240.00 $ 240,240.00 $ 240,240.00 Promotion and Marketing FC $ 6,000.00 $ 6,000.00 $ 6,000.00 * $500/month
Licenses/Permits FC $ 1,500.00 $ 1,200.00 $ 1,200.00 Insurance FC $ 10,000.00 $ 10,000.00 $ 10,000.00 Water Heating System VC $ 30,000.00 $ 32,100.00 $ 34,347.00
Food cost VC $ 35,405.67 $ 37,884.07 $ 40,535.95 $ 1.41 /food
Coffee cost VC $ 7,874.93 $ 8,426.17 $ 9,016.00 $ 0.25 /coffeeAlcohol Cost VC $ 34,649.68 $ 37,075.15 $ 39,670.41 $ 1.10 /beerInterest Expense FC $ 50,100.00 $ 42,942.86 $ 35,785.71 **Simple interestPrincipal repayment FC $ 119,285.71 $ 119,285.71 $ 119,285.71 Miscellaneous cost VC $ 2,000.00 $ 2,140.00 $ 2,289.80 Total Annual Cost $ 643,855.99 $ 644,093.96 $ 645,170.60
Target Profit
Year 1 Year 2 Year 3
Total Revenue $ 689,843.56 $ 738,132.61 $ 789,801.89
Total Annual Cost $ 643,855.99 $ 644,093.96 $ 645,170.60
Net Annual Profit $ 45,987.57 $ 94,038.65 $ 144,631.29
Funding• Investment Company- Steel Head Capital (7 Years loan @ 6%)- $835,000
• Angel Investor (Shareholder)- Ivory’s Uncle (Owners of Skillful Vending)- Pool tables, Darts- $65,000