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Table of Contents
Table of Contents
Table: Personnel.................................................................................................................................17
....................................................................................................................................................................17
7.0 Financial Plan.......................................................................................................................................18
7.1 Important Assumptions....................................................................................................................18
Table: General Assumptions..............................................................................................................18
................................................................................................................................................................18
7.2 Break-even Analysis........................................................................................................................19
Chart: Break-even Analysis...............................................................................................................19
Table: Break-even Analysis...............................................................................................................19
................................................................................................................................................................19
7.3 Projected Profit and Loss.................................................................................................................20
Chart: Profit Monthly.........................................................................................................................20
Chart: Profit Yearly............................................................................................................................21
Chart: Gross Margin Monthly............................................................................................................21
Table: Profit and Loss........................................................................................................................21
................................................................................................................................................................22
7.4 Projected Cash Flow........................................................................................................................23
Chart: Cash.........................................................................................................................................23
Table: Cash Flow...............................................................................................................................23
................................................................................................................................................................24
7.5 Projected Balance Sheet...................................................................................................................25
Table: Balance Sheet..........................................................................................................................25
................................................................................................................................................................25
7.6 Business Ratios................................................................................................................................26
Table: Ratios......................................................................................................................................26
Table: Sales Forecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
......................................................................................................................................................................2
Table: General Assumptions........................................................................................................................3
......................................................................................................................................................................3
Table: Profit and Loss..................................................................................................................................4
......................................................................................................................................................................5
Table: Cash Flow.........................................................................................................................................6
......................................................................................................................................................................7
Table: Balance Sheet....................................................................................................................................8
Page 2
Chart: Highlights
Highlights
$3,000,000
$2,700,000
$2,400,000
$2,100,000
Sales
$1,800,000
$1,500,000
Gross Margin
$1,200,000
Net Profit
$900,000
$600,000
$300,000
$0
Year 1
Year 2
Year 3
Page 1
1.1 Objectives
To open and operate a successful coffee and new age beverage distributorship in the
Spokane/Northern Idaho market, employing three to five employees the first year.
To obtain a minimum of 100 regular customers in the Spokane/North Idaho market the first
year of operation.
Achieve first year sales of $2,000,000.
Maintain an average gross margin of 25 percent.
To produce a net profit of at least $400,000 by the end of the third year of operation.
1.2 Mission
The Coffee Warehouse intends to become a recognized distributor of specialty beverages and
beverage-related supplies and services to coffee houses and espresso stands throughout
Spokane and Northern Idaho.
The Coffee Warehouse plans to develop strong relationships with key customers so we will be
viewed as indispensable partners, rather than just another supplier. We will work closely with
each customer to recommend product assortment unique for their retail base, appropriate
stocking levels, pricing and display assortments, as well as promotional ideas and material to
increase sales. The Coffee Warehouse will seek out and work with the manufacturers we
represent to deliver the most innovative and exciting products possible to the customers we
serve. We are not only selling product, we are selling service.
1.3 Keys to Success
Page 2
Chart: Start-up
Start-up
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Expenses
Assets
Investment
Loans
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal Business Formation
Business Plan
Warehouse Lease Deposit
Insurance (first month)
Utilities (first month)
Research & Development
$220
$90
$2,800
$500
$350
$1,200
Page 3
Marketing
Advertising
Personnel
Business/Office Supplies
Computer Systems
Phone System
Communication Lines
Trade Show/Grand Opening
Total Start-up Expenses
$1,200
$250
$2,060
$1,550
$3,080
$650
$300
$2,200
$16,450
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$9,800
$75,000
$18,750
$0
$103,550
Total Requirements
$120,000
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$16,450
$103,550
$120,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$93,750
$9,800
$0
$9,800
$103,550
$95,000
$0
$0
$0
$95,000
Capital
Planned Investment
Investor 1
Other
Additional Investment Requirement
Total Planned Investment
$25,000
$0
$0
$25,000
($16,450)
$8,550
$103,550
Total Funding
$120,000
Page 4
3.0 Products
The Coffee Warehouse will provide a first-class delivery service of quality hot and cold beverage
related supplies, including whole bean or ground coffee, flavor syrups, jet teas, fruit smoothies,
bubble teas, concentrated milk, fresh baked goods and assorted paper supplies. Our services
will include invaluable trade resources, effective promotional programs, custom-designed
marketing material, informative monthly newsletters, training and product demonstrations, as
well as information on the latest market trends in the coffee/specialty beverage industry.
3.1 Product & Service Description
PRODUCT DESCRIPTION
The Coffee Warehouse will carry a variety of quality products that will enable us to provide full
service delivery to espresso stands and coffee houses. Our underlying philosophy in selecting
products is to choose lines that will bring consistent quality, competitive prices, and product
satisfaction to our customers. We have personally researched and sampled each of the
following products that we offer to ensure the quality we guarantee.
At this time, the majority of these products are only available to customers through wholesale
vendors such as Cash and Carry retail outlets - therefore it is the customer's responsibility to
acquire these products by their own means. The Coffee Warehouse will make these same
products available through our high quality, full service delivery - bringing these products
directly to their doorstep at a competitive price.
SERVICE DESCRIPTION
An important component of our business is not just our products, but our service. In addition to
our full service delivery, the following are other important service elements that we will offer to
our customers:
Ideas to help our customers increase sales through menu development, creative
promotions, co-op advertising, and much more.
Custom designed marketing material such as printed banners, promotional posters, punch
cards, pre-purchased beverage cards, reader boards, etc.
Distribute a monthly newsletter featuring the latest coffee trends, new industry equipment,
breaking trade news, promotional ideas, new creative recipes, and upcoming events.
Page 5
Samples of the latest product releases - with eye-catching point-of-sale to advertise new
items to the end consumer.
Page 6
3.5 Technology
To streamline the efficiency of our distribution methods, The Coffee Warehouse plans to use the
latest in cutting edge technology - not only in the warehouse - but also in the trade.
All of our drivers/sales representatives will be equiped with Thinque MSP handhelds and
software. Thinque MSP applications will reduce field expenses, decrease day's sales
outstanding, and increase worker efficiency. Features can be used in or out of the warehouse
and include managing returns and collections; adjusting item price, profit or margin; applying
promotional items to an account; streamlining orders; tracking inventory; reducing out-ofstocks; and providing sales history reports. All information recorded in the handheld is available
in real time to be viewed by management in the office.
3.6 Future Products and Services
Within the first year of business, The Coffee Warehouse intends to open a retail/wholesale store
and high-quality showroom. Products will be available for purchase by both our wholesale
customers who may need product between delivery days, as well as retail consumers interested
in purchasing product for their home use. We will also offer a showroom that will feature
equipment, supplies, trade resources, and information on marketing services with examples of
marketing and promotional material available to customers.
With the addition of the product showroom, The Coffee Warehouse will offer customers
quarterly product and training demonstrations that will be presented by trained beverage
experts from the industry.
The Coffee Warehouse also plans to hold semi-annual trade shows for current or potential
customers. These trade shows will allow customers the opportunity to sample products, talk to
manufacturers, learn about new industry trends, review marketing material, and network with
other business owners in their market.
4.0 Market Analysis Summary
Coffee is the second largest commodity market next to oil, and growth is expected to continue
at a strong pace for the foreseeable future. The specialty beverage industry is growing at an
equally strong pace, with sales growth in some categories projected to grow at rates of 40%
per year.
This growth offers excellent opportunities for new companies to enter this market, and we are
excited about the possibilities of what The Coffee Warehouse can accomplish in the Spokane
and Northern Idaho market.
4.1 Market Segmentation
The gourmet coffee and specialty beverage industry is divided into several segments.
Consumers who enjoy these products purchase drinks at restaurants, coffee houses, sports
venues, drive-thru espresso stands, and even inside other retail establishments that might
feature an independent beverage stand.
As illustrated in the chart below, within the market surrounding Spokane, Rathdrum, Post Falls
and Coeur d'Alene, there are currently 250 drive-thru espresso stands, 18 coffee/tea houses,
Page 7
Market Analysis
Potential Customers
Year 1
Year 2
Year 3
Year 4
Year 5
4%
4%
5%
5%
250
52
18
10
259
54
19
11
268
56
20
12
277
58
21
13
287
60
22
14
3.51%
3.64%
5.14%
8.78%
3.79%
330
343
356
369
383
3.79%
Growth
Drive-thru Espresso
Inner-Retail Espresso
Coffee/Tea Houses
Other (sports venues,
universities, etc)
Total
CAGR
Drive-thru Espresso
Inner-Retail Espresso
Coffee/Tea Houses
Other (sports venues, universities, etc)
Page 8
owner-operated businesses that are neglected by larger suppliers and are forced to service
themselves. It is also these smaller businesses who could most greatly benefit from marketing
services, sales support, and full service product delivery. Providing the same high-quality
service, within the first six months of operation, The Coffee Warehouse plans to expand our
target into formal coffee houses and cafes, and as business grows and stabilizes, eventually
evaluate the needs of potential customers in the restaurants and bar industry.
Page 9
Page 10
results with the customer purchasing most of their supplies through a cash and carry style
wholesale store - leaving the customer with no service or support.
By positioning ourselves in the market with in-demand, quality product at competitive prices,
with a consistent high level of customer service - we are confident that we will see customers
and their business continue to increase.
5.0 Sales and Marketing
The unique aspects of our business include individual product selection, quality assurance, and
high-quality full service distribution. Our strategy is to focus 100% of our efforts on the market
for espresso supplies in the Spokane and Northern Idaho area. By focusing all of our effort and
energy on this particular area, we expect to quickly develop and maintain a leadership position.
The Coffee Warehouse's key personnel will stay in contact with our customers, and will be able
to respond to changes in this market much faster than our competitors.
The Coffee Warehouse will offer the best, most highly personalized service in the marketplace.
Being a small, owner-operated company, we intend to use this to our advantage to be
absolutely certain that every one of our customers receive excellent service. We will go out of
our way to make sure that our customers know that they truly matter to us. Sales reps and inhouse personnel who deal with customers will be carefully trained and given wide latitude for
insuring that customers are always satisfied.
5.1 Marketing Strategy
Our basic marketing strategy is to work with customers on a one-to-one basis to ensure their
supply needs are being met and help develop unique marketing programs for each of them. We
intend to prioritize customer service and make it a key component of our marketing programs.
We believe that providing our customers with what they want, when and how they want it, is
the key to repeat business and positive word-of-mouth advertising. Because we want to
develop close working relationships with our customers, we want to establish accounts in as
personable a way as possible. It is for this reason that we will overwhelmingly emphasize inperson sales calls to build accounts.
We will closely integrate all of our marketing and sales efforts to project a consistent image of
our company and a consistent positioning of our products and services. We will build this image
around our name "The Coffee Warehouse, Inc." and emphasize to customers the high-quality
service that is behind this name.
To support our marketing initiatives and product knowledge, we will attend as many area
conventions and trade shows as possible to ensure we are offering the most up-to-date market
trend information.
5.2 Promotion Strategy
Relationships are the key to success in the distribution business. Personal selling will remain our
most important means of promotion. Both Steve and Jennifer Smith will lead this effort - Steve,
with his skill and experience in sales and distribution, and Jennifer in customer service and
relations. In addition to personal selling, The Coffee Warehouse has identified several other
means of advertising and publicity.
Page 11
The Coffee Warehouse will send news releases to local media and press, as well as trade
magazines to try to get product and company feature coverage in front of the eyes of our
customers - as well as the end consumer. We will also produce a few generic press releases
about the products we are distributing for our customers to use toward publicity coverage for
their businesses in local publications such as the Spokesman, The Inlander and Local Planet.
Third, we shall have a monthly newsletter for current of potential customers. This newsletter
will highlight new and current trends in the industry, upcoming conventions and trade shows,
offer promotions and special deals, as well as provide new recipes, fun tips and other
information that can be used in their business. We will also highlight not just our products, but
also display ideas and success stories of other business in the industry. As a more straight
forward advertising effort, The Coffee Warehouse will feature an advertisement in the Yellow
Pages, frequent ads in the Spokesman Review, the Inlander, and the Local Planet, as well as
participation in networking, local trade shows, and personal word-of-mouth advertising.
5.3 Distribution Strategy
To begin, The Coffee Warehouse will operate two delivery trucks with a third vehicle for special
deliveries between scheduled delivery days. Deliveries will be made Monday through Friday,
and will be strategically routed to minimize travel time and fuel costs - while maximizing
production. On average, we will service 20-30 accounts per day, with deliveries to each
account twice a week. As the number of accounts increase, the need for additional delivery
trucks will continue to be evaluated. With each additional delivery truck, routes will be
restructured to maintain maximum efficiency.
5.4 Sales Strategy
Distribution sales are dependent on repeat business, therefore the sales strategy for The Coffee
Warehouse is based on personal, consistent sales contact, with a high emphasis on customer
service and relations. Because we are a new distributor, we understand that we will have to
prove our worth to our customers in order to earn their respect and business. Both of the
owners, Steve and Jennifer, will make personal calls on potential customers to review our
product line and services, give general information on our company, and discuss how we feel
we can help them succeed in their business.
The Coffee Warehouse will begin operations with two full-time delivery/sales representatives,
who will be responsible for providing full service and delivery to current customers, but also
make sales calls for potential new business. This delivery/sales representatives will receive a
base salary, with commission on qualified sales, as well as bonuses for new acquired business.
Customers will be scheduled for a pre-arranged delivery day once or twice a week, depending
on the quantity and timeline of product needed. Product orders can be placed in a number of
ways to help facilitate the process:
Phoned Orders: Customers can easily phone orders into our office, up until 2:30 p.m. of the
afternoon prior to their scheduled delivery day.
Faxed Orders: Customers can fax in a completed product order sheet, with the same
deadline as phoned orders.
Tel-Sell: Customers may choose to have a representative from the office call them the day
prior to their scheduled delivery to check product quantities and assist them in placing their
order.
Page 12
We understand the hectic schedule of a small business, so if a customer fails to call or fax their
weekly order, they will receive a courtesy call from our office to verify that an order is not
needed.
5.5 Sales Forecast
As indicated in the table, our sales are forecasted to increase rapidly, with an annual growth
rate of approximately 30%.
Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Espresso Syrups
Chocolate & Caramel Sauces
Specialty Beverage Mixes
Energy Drinks
Concentrated Milk
Paper Supplies
Marketing
Total Sales
$415,362
$275,852
$176,660
$44,372
$113,816
$1,185,285
$18,305
$2,229,652
$477,666
$311,713
$203,158
$51,028
$130,889
$1,363,078
$21,051
$2,558,584
$549,316
$352,235
$233,632
$58,683
$150,523
$1,567,540
$24,208
$2,936,137
Year 1
$345,347
$244,798
$134,440
$36,542
$97,919
$888,964
$6,540
$1,754,550
Year 2
$397,149
$276,622
$154,606
$42,023
$112,607
$1,022,308
$7,521
$2,012,837
Year 3
$456,722
$312,583
$177,797
$48,327
$129,498
$1,175,655
$8,649
$2,309,230
Sales
Sales Monthly
$400,000
Espresso Syrups
$350,000
$300,000
$250,000
Energy Drinks
$200,000
Concentrated Milk
$150,000
Paper Supplies
$100,000
Marketing
$50,000
Month 12
Month 11
Month 10
Month 9
Month 8
Month 7
Month 6
Month 5
Month 4
Month 3
Month 2
Month 1
$0
Page 13
Sales by Year
$3,000,000
$2,700,000
Espresso Syrups
$2,400,000
$2,100,000
$1,800,000
Energy Drinks
$1,500,000
Concentrated Milk
$1,200,000
$900,000
Paper Supplies
$600,000
Marketing
$300,000
$0
Year 1
Year 2
Year 3
5.6 Milestones
The following table and chart are the important milestones for The Coffee Warehouse.
Table: Milestones
Milestones
Milestone
Market/Trade Research
Logo Design/Marketing
Complete Business Plan
Product/Pricing Comparison
Finalize Potential Client List
Licensing/Incorporation
Secure Product Line
Research/Secure Financing
Warehouse Selection/Buildout
Leasehold Improvements
Delivery Vehicle Selection
Develop Routing
Hire Delivery/Sales Personnel
Office Equipment/Computer/Supplies
Order Beginning Inventory
Press Releases/Advertising
Organize Grand Opening Trade Show
Totals
Start Date
3/15/2003
4/15/2003
4/15/2003
4/15/2003
5/1/2003
5/15/2003
5/15/2003
5/15/2003
5/15/2003
7/1/2003
6/1/2003
6/15/2003
7/1/2003
7/1/2003
7/10/2003
7/1/2003
8/1/2003
End Date
5/15/2003
5/15/2003
5/30/2003
5/15/2003
5/15/2003
6/15/2003
6/15/2003
7/15/2003
6/15/2003
8/1/2003
6/15/2003
7/15/2003
7/15/2003
8/1/2003
7/20/2003
8/1/2003
8/10/2003
Budget
$150
$1,300
$90
$150
$0
$200
$0
$0
$0
$5,000
$0
$100
$100
$5,000
$20,000
$250
$3,000
$35,340
Manager
SDS / JLS
JLS
JLS
SDS / JLS
JLS
JLS
JLS
SDS / JLS
SDS / JLS
SDS / JLS
SDS
SDS
SDS
JLS
SDS / JLS
JLS
JLS
Department
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Web
Web
Department
Department
Department
Department
Department
Department
Page 14
Chart: Milestones
Milestones
Logo Design/Marketing
Product/Pricing Comparison
Licensing/Incorporation
Research/Secure Financing
Leasehold Improvements
Develop Routing
Office Equipment/Computer/Supplies
Press Releases/Advertising
Apr
May
Jun
Jul
Page 15
Page 16
Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
Jennifer Smith
Sales/Delivery (Salary)
Sales/Delivery (Commission)
Delivery/Warehouse Personnel
Administration
Total People
$30,000
$20,400
$4,237
$20,400
$18,720
4
$35,000
$21,500
$4,500
$21,500
$19,500
4
$40,000
$22,500
$4,500
$22,500
$21,000
4
Total Payroll
$93,757
$102,000
$110,500
Page 17
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Year 1
Year 2
Year 3
1
8.00%
8.00%
25.42%
0
2
8.00%
8.00%
25.00%
0
3
8.00%
8.00%
25.42%
0
Page 18
Break-even Analysis
$6,000
$3,000
$0
($3,000)
($6,000)
($9,000)
($12,000)
($15,000)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$10,000
$30,000
$50,000
$70,000
$90,000
$110,000
Break-even Analysis
Monthly Revenue Break-even
$75,055
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
79%
$15,993
Page 19
Profit Monthly
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
Page 20
Profit Yearly
$280,000
$240,000
$200,000
$160,000
$120,000
$80,000
$40,000
$0
Year 1
Year 2
Year 3
Year 1
Year 2
Year 3
$2,229,652
$2,558,584
$2,936,137
Page 21
$1,754,550
$0
$1,754,550
$2,012,837
$0
$2,012,837
$2,309,230
$0
$2,309,230
$475,102
21.31%
$545,747
21.33%
$626,907
21.35%
$93,757
$0
$0
$33,096
$7,200
$6,000
$14,064
$12,000
$3,000
$2,400
$12,000
$3,600
$2,400
$2,400
$102,000
$0
$0
$34,260
$7,500
$6,300
$15,300
$12,600
$3,000
$2,400
$12,500
$3,600
$2,200
$2,700
$110,500
$0
$0
$35,460
$7,800
$6,500
$16,575
$13,200
$3,000
$2,400
$13,000
$3,600
$2,600
$3,000
$191,917
$204,360
$217,635
$283,186
$283,186
$6,560
$69,354
$341,387
$341,387
$4,720
$84,167
$409,272
$409,272
$2,800
$103,312
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$207,271
9.30%
$0
$252,500
9.87%
$0
$303,160
10.33%
Gross Margin
Gross Margin %
Expenses
Payroll
Other
Depreciation
Rent
Utilities and Phone
Insurance
Payroll Burden
Leased Equipment (Delivery Vehicles)
Leased Equipment (Warehouse)
Leased Equipment (Other)
Fuel (delivery)
Advertising / Promotion
Professional Services
Miscellaneous (office supplies, etc)
Other Income
Interest Income
Other Income Account Name
Total Other Income
Other Expense
Account Name
Other Expense Account Name
Total Other Expense
Net Other Income
Net Profit
Net Profit/Sales
Page 22
Chart: Cash
Cash
$280,000
$240,000
$200,000
$160,000
Cash Balance
$120,000
$80,000
$40,000
Month 12
Month 11
Month 10
Month 9
Month 8
Month 7
Month 6
Month 5
Month 4
Month 3
Month 2
Month 1
$0
Year 2
Year 3
$2,229,652
$2,229,652
$2,558,584
$2,558,584
$2,936,137
$2,936,137
$0
$0
$0
$0
$0
$0
$0
$0
$2,229,652
$0
$0
$0
$0
$0
$0
$0
$0
$2,558,584
$0
$0
$0
$0
$0
$0
$0
$0
$2,936,137
Year 1
Year 2
Year 3
$93,757
$102,000
$110,500
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Non Operating (Other) Income
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Page 23
Bill Payments
Subtotal Spent on Operations
$1,826,094
$1,919,851
$2,274,170
$2,376,170
$2,512,879
$2,623,379
$0
$0
$24,000
$0
$0
$0
$0
$0
$1,943,851
$0
$0
$24,000
$0
$0
$0
$0
$0
$2,400,170
$0
$0
$24,000
$0
$0
$0
$0
$0
$2,647,379
$285,801
$295,601
$158,413
$454,014
$288,758
$742,772
Page 24
Year 2
Year 3
$295,601
$358,198
$18,750
$672,549
$454,014
$211,672
$18,750
$684,436
$742,772
$242,850
$18,750
$1,004,371
$0
$0
$0
$672,549
$0
$0
$0
$684,436
$0
$0
$0
$1,004,371
Year 1
Year 2
Year 3
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$385,728
$71,000
$0
$456,728
$169,114
$47,000
$0
$216,114
$209,889
$23,000
$0
$232,889
Long-term Liabilities
Total Liabilities
$0
$456,728
$0
$216,114
$0
$232,889
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$25,000
($16,450)
$207,271
$215,821
$672,549
$25,000
$190,821
$252,500
$468,321
$684,436
$25,000
$443,321
$303,160
$771,482
$1,004,371
Net Worth
$215,821
$468,321
$771,482
Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Page 25
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
n.a.
14.75%
14.76%
0.00%
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
53.26%
2.79%
100.00%
0.00%
100.00%
30.93%
2.74%
100.00%
0.00%
100.00%
24.18%
1.87%
100.00%
0.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
67.91%
0.00%
67.91%
32.09%
31.58%
0.00%
31.58%
68.42%
23.19%
0.00%
23.19%
76.81%
0.00%
0.00%
0.00%
100.00%
100.00%
21.31%
8.61%
0.00%
12.70%
100.00%
21.33%
8.17%
0.00%
13.34%
100.00%
21.35%
7.51%
0.00%
13.94%
100.00%
0.00%
0.00%
0.00%
0.00%
1.47
0.69
67.91%
128.17%
41.13%
3.17
2.19
31.58%
71.89%
49.19%
4.31
3.27
23.19%
52.69%
40.47%
0.00
0.00
0.00%
0.00%
0.00%
Sales Growth
Percent of Total Assets
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
Additional Ratios
Year 1
Year 2
Year 3
9.30%
96.04%
9.87%
53.92%
10.33%
39.30%
n.a
n.a
10.91
5.73
27
3.32
7.06
12.17
49
3.74
10.16
12.17
27
2.92
n.a
n.a
n.a
n.a
2.12
1.00
0.46
1.00
0.30
1.00
n.a
n.a
$215,821
43.17
$468,321
72.33
$771,482
146.17
n.a
n.a
0.30
68%
0.69
10.33
0.00
0.27
32%
2.19
5.46
0.00
0.34
23%
3.27
3.81
0.00
n.a
n.a
n.a
n.a
n.a
Activity Ratios
Inventory Turnover
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
Page 26
Page 27
Appendix
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
Espresso Syrups
Chocolate & Caramel Sauces
Specialty Beverage Mixes
Energy Drinks
Concentrated Milk
Paper Supplies
Marketing
Total Sales
Direct Cost of Sales
0%
0%
0%
0%
0%
0%
0%
$14,322
$10,465
$8,626
$1,530
$1,530
$51,400
$700
$88,573
Month 5
$28,807
$21,048
$4,732
$3,077
$6,360
$58,075
$1,295
$123,394
Month 6
$33,128
$21,048
$7,887
$3,539
$7,914
$68,506
$1,470
$143,492
Month 7
$38,097
$24,205
$10,498
$4,070
$9,882
$85,766
$1,680
$174,198
Month 8
$43,811
$27,836
$21,167
$4,680
$12,379
$123,777
$1,890
$235,540
Month 9
$50,383
$32,011
$30,347
$5,382
$15,556
$177,815
$2,170
$313,664
$57,940
$36,813
$34,899
$6,190
$19,604
$202,120
$2,450
$360,016
$66,632
$42,335
$40,134
$7,118
$24,774
$230,071
$2,765
$413,829
Month 10
Month 11
Month 12
$18,110
$20,827
$23,951
$27,544
$31,675
$36,426
$41,890
$48,174
$55,400
$8,441
$9,707
$11,163
$12,837
$14,763
$16,977
$19,524
$22,453
$25,821
$29,694
$34,148
$39,270
$6,496
$4,866
$2,981
$3,192
$3,401
$3,802
$6,168
$8,145
$16,035
$22,852
$26,280
$30,222
Energy Drinks
$1,260
$1,449
$1,666
$1,916
$2,204
$2,534
$2,914
$3,352
$3,854
$4,433
$5,097
$5,862
Concentrated Milk
$1,308
$2,509
$3,022
$3,646
$4,405
$5,465
$6,804
$8,499
$10,651
$13,389
$16,880
$21,339
$38,550
$35,560
$32,335
$34,387
$38,534
$43,556
$51,379
$64,325
$92,833
$133,361
$151,590
$172,554
$250
$288
$325
$363
$413
$463
$525
$600
$675
$775
$875
$988
$68,213
$68,073
$67,240
$74,451
$84,546
$96,749
$114,858
$139,049
$186,297
$246,395
$283,045
$325,635
Month 4
$25,049
$18,303
$4,242
$2,676
$5,128
$51,378
$1,155
$107,931
$15,748
Marketing
Month 3
$21,782
$15,915
$4,006
$2,327
$4,245
$45,849
$1,015
$95,139
$13,694
Paper Supplies
Month 2
$18,941
$13,839
$3,759
$2,023
$3,520
$43,114
$910
$86,106
$11,908
Espresso Syrups
Month 1
$16,470
$12,034
$6,363
$1,760
$2,924
$47,414
$805
$87,770
Page 1
Appendix
Table: Personnel
Personnel Plan
Jennifer Smith
Sales/Delivery (Salary)
Sales/Delivery (Commission)
Delivery/Warehouse Personnel
Administration
Total People
Total Payroll
0%
0%
0%
0%
0%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
$2,500
$1,700
$429
$1,700
$1,560
4
Month
10
$2,500
$1,700
$493
$1,700
$1,560
4
Month
11
$2,500
$1,700
$565
$1,700
$1,560
4
Month
12
$2,500
$1,700
$649
$1,700
$1,560
4
$2,500
$1,700
$170
$1,700
$1,560
4
$2,500
$1,700
$192
$1,700
$1,560
4
$2,500
$1,700
$216
$1,700
$1,560
4
$2,500
$1,700
$240
$1,700
$1,560
4
$2,500
$1,700
$268
$1,700
$1,560
4
$2,500
$1,700
$300
$1,700
$1,560
4
$2,500
$1,700
$336
$1,700
$1,560
4
$2,500
$1,700
$379
$1,700
$1,560
4
$7,630
$7,652
$7,676
$7,700
$7,728
$7,760
$7,796
$7,839
$7,889
$7,953
$8,025
$8,109
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
10
11
Month 12
12
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
Long-term Interest
Rate
Tax Rate
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
30.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
Other
Page 3
Appendix
Table: Profit and Loss
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
$88,573
$87,770
$86,106
$95,139
$107,931
$123,394
$143,492
$174,198
$235,540
$313,664
$360,016
$413,829
$68,213
$68,073
$67,240
$74,451
$84,546
$96,749
$114,858
$139,049
$186,297
$246,395
$283,045
$325,635
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$68,213
$68,073
$67,240
$74,451
$84,546
$96,749
$114,858
$139,049
$186,297
$246,395
$283,045
$325,635
Gross Margin
$20,360
$19,697
$18,866
$20,688
$23,385
$26,645
$28,634
$35,149
$49,243
$67,269
$76,971
$88,194
22.99%
22.44%
21.91%
21.74%
21.67%
21.59%
19.96%
20.18%
20.91%
21.45%
21.38%
21.31%
$7,630
$7,652
$7,676
$7,700
$7,728
$7,760
$7,796
$7,839
$7,889
$7,953
$8,025
$8,109
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Depreciation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,758
$2,758
$2,758
$2,758
$2,758
$2,758
$2,758
$2,758
$2,758
$2,758
$2,758
$2,758
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
Insurance
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$1,145
$1,000
$1,148
$1,000
$1,151
$1,000
$1,155
$1,000
$1,159
$1,000
$1,164
$1,000
$1,169
$1,000
$1,176
$1,000
$1,183
$1,000
$1,193
$1,000
$1,204
$1,000
$1,216
$1,000
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$15,783
$15,808
$15,835
$15,863
$15,895
$15,932
$15,973
$16,023
$16,080
$16,154
$16,237
$16,333
$4,578
$3,889
$3,030
$4,825
$7,490
$10,713
$12,661
$19,126
$33,163
$51,116
$60,735
$71,861
$4,578
$3,889
$3,030
$4,825
$7,490
$10,713
$12,661
$19,126
$33,163
$51,116
$60,735
$71,861
$620
$607
$593
$580
$567
$553
$540
$527
$513
$500
$487
$473
$1,187
$821
$609
$1,061
$1,731
$2,540
$3,030
$4,650
$8,162
$12,654
$15,062
$17,847
Hidden Row
Gross Margin %
Expenses
Payroll
Rent
Payroll Burden
Leased Equipment
(Delivery Vehicles)
Leased Equipment
(Warehouse)
Leased Equipment
(Other)
Fuel (delivery)
15%
Advertising / Promotion
Professional Services
Miscellaneous (office
supplies, etc)
Total Operating
Expenses
Profit Before Interest and
Taxes
EBITDA
Interest Expense
Taxes Incurred
15%
Other Income
Page 4
Appendix
Interest Income
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Account Name
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,770
$2,462
$1,828
$3,184
$5,192
$7,620
$9,090
$13,950
$24,487
$37,962
$45,186
$53,541
3.13%
2.80%
2.12%
3.35%
4.81%
6.18%
6.34%
8.01%
10.40%
12.10%
12.55%
12.94%
Page 5
Appendix
Table: Cash Flow
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
$88,573
$87,770
$86,106
$95,139
$107,931
$123,394
$143,492
$174,198
$235,540
$313,664
$360,016
$413,829
$88,573
$87,770
$86,106
$95,139
$107,931
$123,394
$143,492
$174,198
$235,540
$313,664
$360,016
$413,829
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$88,573
$87,770
$86,106
$95,139
0.00%
Month 1
Month 2
Month 3
Month 4
$0
$107,931
$123,394
$143,492
$174,198
$235,540
$313,664
$360,016
$413,829
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$7,630
$7,652
$7,676
$7,700
$7,728
Bill Payments
$2,607
$78,184
$77,442
$76,236
$92,651
$106,626
$122,274
$147,608
$181,556
$257,760
$334,299
$348,850
$10,237
$85,836
$85,118
$83,936
$100,379
$114,386
$130,070
$155,447
$189,445
$265,713
$342,324
$356,959
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$7,760
$7,796
$7,839
$7,889
$7,953
$8,025
$8,109
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$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
Page 6
Appendix
Subtotal Cash Spent
$12,237
$76,336
Cash Balance
$86,136
$87,836
($66)
$86,071
$87,118
($1,012)
$85,059
$85,936
$102,379
$9,203
$5,552
$94,262
$99,813
$116,386
$7,008
$106,821
$132,070
$157,447
$191,445
$267,713
$344,324
$358,959
$11,422
$16,751
$44,095
$45,951
$15,692
$54,870
$118,243
$134,994
$179,089
$225,039
$240,731
$295,601
Page 7
Appendix
Table: Balance Sheet
Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month
10
Month
11
Month
12
$9,800
$75,000
$18,750
$103,550
$86,136
$75,034
$18,750
$179,920
$86,071
$74,880
$18,750
$179,701
$85,059
$73,964
$18,750
$177,773
$94,262
$81,896
$18,750
$194,908
$99,813
$93,001
$18,750
$211,564
$106,821
$106,424
$18,750
$231,995
$118,243
$126,344
$18,750
$263,337
$134,994
$152,954
$18,750
$306,698
$179,089
$204,926
$18,750
$402,765
$225,039
$271,034
$18,750
$514,823
$240,731
$311,349
$18,750
$570,830
$295,601
$358,198
$18,750
$672,549
$0
$0
$0
$103,550
$0
$0
$0
$179,920
$0
$0
$0
$179,701
$0
$0
$0
$177,773
$0
$0
$0
$194,908
$0
$0
$0
$211,564
$0
$0
$0
$231,995
$0
$0
$0
$263,337
$0
$0
$0
$306,698
$0
$0
$0
$402,765
$0
$0
$0
$514,823
$0
$0
$0
$570,830
$0
$0
$0
$672,549
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month
10
Month
11
Month
12
Starting
Balances
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$95,000
$0
$95,000
$75,600
$93,000
$0
$168,600
$74,919
$91,000
$0
$165,919
$73,163
$89,000
$0
$162,163
$89,114
$87,000
$0
$176,114
$102,578
$85,000
$0
$187,578
$117,390
$83,000
$0
$200,390
$141,641
$81,000
$0
$222,641
$173,052
$79,000
$0
$252,052
$246,632
$77,000
$0
$323,632
$322,728
$75,000
$0
$397,728
$335,549
$73,000
$0
$408,549
$385,728
$71,000
$0
$456,728
Long-term Liabilities
Total Liabilities
$0
$95,000
$0
$168,600
$0
$165,919
$0
$162,163
$0
$176,114
$0
$187,578
$0
$200,390
$0
$222,641
$0
$252,052
$0
$323,632
$0
$397,728
$0
$408,549
$0
$456,728
$25,000
($16,450)
$0
$8,550
$103,550
$25,000
($16,450)
$2,770
$11,320
$179,920
$25,000
($16,450)
$5,232
$13,782
$179,701
$25,000
($16,450)
$7,060
$15,610
$177,773
$25,000
($16,450)
$10,244
$18,794
$194,908
$25,000
($16,450)
$15,436
$23,986
$211,564
$25,000
($16,450)
$23,056
$31,606
$231,995
$25,000
($16,450)
$32,146
$40,696
$263,337
$25,000
($16,450)
$46,096
$54,646
$306,698
$25,000
($16,450)
$70,583
$79,133
$402,765
$25,000
($16,450)
$108,545
$117,095
$514,823
$25,000
($16,450)
$153,731
$162,281
$570,830
$25,000
($16,450)
$207,271
$215,821
$672,549
$11,320
$13,782
$15,610
$18,794
$23,986
$31,606
$40,696
$54,646
$79,133
$117,095
$162,281
$215,821
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$8,550
Page 8