TOLERANCE

BUSINESS PLAN
Tolerance
Ritva Itkonen, Joanna Morris and Mirza Dolic 1/1/2012

Everyone is a star in our bar. Tolerance gives the stage to young and upcoming artists and guarantees its customers a relaxing experience in a creatively-minded environment. We welcome everyone to our bar to have fun with their friends and to find their voice through self-expression.

BUSINESS PLAN Tolerance

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2011/2012

Table of Contents

1. Executive Summary 1.1. Objectives 1.2. Mission 1.3.Keys to Success 2. Company Summary 2.1. Company Ownership 2.2. Start-up Summary 2.3. Company Location and Facilities 3. Products 3.1. Product Description 3.2. Competitive Comparison 3.3. Sourcing 3.4. Technology 3.5. Future Products 4. Market Analysis Summary 4.1. Market Segmentation 4.2. Target Market Segment Strategy 4.2.1. Market Needs 4.2.2. Market Trends 4.2.3. Market Growth 4.3. Industry Analysis 4.3.1. Competition and Buying Patterns 4.3.2. Main Competitors 4.3.3. Industry Participants 5. Strategy and Implementation Summary 5.1. Competitive Edge 5.2. Value Proposition 5.3. Sales Strategy 5.3.1. Sales Forecast 5.4. Milestones 5.5. Marketing and Promotion Strategies 5.5.1. Sales Program 5.5.2. Positioning Statement 5.5.3. Pricing Strategy 5.6. Strategic Alliances

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6. Management Summary 6.1. Organizational Structure 6.2. Personnel Plan 6.3. Management Team 6.4. Management Team Gaps 7. Financial Plan 7.1. Important Assumptions 7.2. Projected Cash Flow 7.3. Key Financial Indicators 7.4. Break-even Analysis 7.5. Business Ratio 8. Appendix

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1. Executive Summary Tolerance is an establishment offering a pub-type experience to the customers on the one hand, and on the other, a creative and versatile space for up-and-coming young people. The bar offers a cozy place for our customers to enjoy moderately priced drinks, read magazines or books and socialize. The targeted location for the bar is Weserstrae, Neuklln, due to the fact that there already are similar establishments, which will make the bar visible for its target audience from the very beginning. The performance area of Tolerance offers a stage for all creative people to show their work: paintings, music, poetry reading events, film screenings, etc. Tolerance is owned and managed by Ritva Itkonen and Mirza Doli, with Itkonen being the executive manager and Doli the event manager on location.The owners come from two different countries, establishing a bar in Berlin, the city of youth, to offer entertainment to all young-at-heart people, and also to help promote the local, national and international arts scene which, in turn, will lead to the further promotion of the bar and growth in its profitability. This business plan is a means of informing financial institutions of our vision and aims, in addition to which it functions as a foundation and a guide for the start-up of the bar and its further growth and development. The plan consists of chapters with information on the bar, its management team, goals and aims, products and services, market focus, actions plan and forecasts, as well as on its financial plan.

1.1. Objectives

Sales approaching and surpassing 580 000 for the first year In the second year, the expected amount is at least twice the amount of the first year The third year will see the improvements of many projects started in the first two years which will allow increase in salaries, as well as employment of more staff

1.2. Mission Tolerance offers an atmosphere of tolerance at all times. All the customers are guaranteed the freedom of self-expression, as long as it does not impact negatively upon the experience of others. Tolerance offers accessible and affordable non-alcoholic and alcoholic drinks, coffee, tea, snacks and entertainment; for example in the form of versatile live performances and special events, e.g. theme nights as well as with books, its zine and leaflets. Tolerance will establish itself as a place for local people to come and socialize, but also to present their work and ideas in different artistic forms for entertaining and self-promotional purposes. Due to its versatile program and affordability, Tolerance will encourage its customers to return to the bar and recommend it to people from other parts of the city and the country, as well as to international visitors.

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The surrounding area and the country will benefit from the operations of the bar because it will in due time provide jobs for more young people, and host events with donations for charity organizations and causes in addition to having a charity box always placed at the counter.

1.3. Keys to Success The keys to success in this business are: Supporting the surrounding community and becoming part of its daily functions Operating in co-operation with other businesses in the area Safe and welcoming venue for events and groups not generally catered to by the mainstream Attracting people who associate themselves with, or are otherwise drawn to subcultures Offering high quality products for reasonable prices High quality service: our guests frequent Tolerance to have a good time and the service will be of the highest caliber, efficient and friendly Marketing: the venue will target its audience early and often. It will start before the opening date via social network sites, leaflets and word-of-mouth recommendations. With the opening of the venue, its own blog/website will be available with all information on events and happenings in the bar. Management: we will have a firm grasp on all expenses. The experience in the bar will secure repeated visits and recommendations, and to this aim the bar will have top quality inventory, service and quality control.

2. Company Summary Tolerance is a place where differences are supported and tolerated and it is expressed through the venues interior decoration which stylishly combines vintage-looking and modern furniture. Tolerance also overtly supports the promotion of human rights and equality through the collaboration with and support for different causes, as well as covertly with its sign which resembles awareness ribbons, in addition to which the ribbon theme will be present in the interior decor. The targeted location for the bar is Weserstrae in Neuklln. Neuklln is the up-and-coming borough of Berlin, and Weserstrae and other streets in its direct neighborhood are already home to many similar venues which makes our bar visible for frequenters. The rents are reasonably low. The neighborhood is quiet and friendly, but becomes alive in the evenings due to many people coming from all parts of Berlin to enjoy the less mainstream atmosphere in the bars. Tolerance plays with the idea of shabby and homely feel, while staying in line with all health and hygienic demands. The actual address.

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2.1. Company Ownership Tolerance is a privately held limited liability corporation, owned by Ritva Itkonen and Mirza Doli.

2.2. Start-up Summary

The data will be added after the management team has conducted financial research on the location. It will include all the necessary information on assets, loans, expenses and other start-up expenses.

2.3. Company Location and Facilities The facility will be divided equally between the bar/caf function and the entertainment/meeting function. We will include a number of seats after the location has been rented, with a terrace/patio/garden with additional number of seats during the warm-weather months and days, and will serve as a smoking area. The bar/caf section will provide beer, coffee-based beverages, liquor, non-alcoholic drinks, hot drinks and snacks. It will also contain a niche with copies of the bars zine, a bookshelf with books and magazines and a small glass cabinet where smaller artwork, for example, jewelry will be exhibited. A part of the venue will serve as entertaining area when an occasion arises and contain a smaller stage and basic equipment (microphones, a projector, a screen, a computer, an audio system). The room will be furnished only if necessary, because some of the events held there will not demand any furniture (painting exhibitions, live gigs). The walls will be kept blank for artists to decorate and adjust for their performances/exhibitions.

3. Products Tolerance bar is a venue that will sell moderately priced beverages usually associated with a bar/caf (coffee/espresso-based drinks, tea, juice and soda, beer, wine and a limited number of cocktails at the start-up that will increase in due time). There will also be a cupboard with snacks for the customers to purchase. Tolerance will provide free snacks. The entertainment area will regularly offer space for young artists and performers to exhibit their work. One-night performances of (local) artists will not be charged rent provided that the frequenters order drinks from the bar.

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3.1. Product Description Tolerance will offer drinks provided by local breweries and suppliers. Apart from drinks, our guests will be able to enjoy reading books, the zine or live performances. Musical offerings will span urban music traditions with occasional special theme nights (Latin, Goth, old rock). The performance space offers a stage for versatile performers, such as singers, musicians, film makers, stand-up comedians, painters. Tolerance will frequently organize charity events and donate money to charity organizations or for specific causes (cancer, HIV-positive people, homeless groups, etc). When not used as a performing area, the space can be used for different events: bars special theme nights, birthday parties, etc.

3.2. Competitive Comparison Tolerance offers competitive prices, a cozy and friendly atmosphere and service. The interior is a pastiche of vintage and modern elements. The prices in the neighboring bars are reasonably low so Tolerance will balance its prices to make the drinks affordable for our guests, which will also encourage them to spend more money. By offering various entertaining happenings, as well as a place to relax alone or in groups, we expect to have frequent visitors on a daily basis.

3.3. Sourcing The actual data will be added after the preparations for the opening start (at an early stage) when local breweries, artists, other companies have been contacted. The management team will opt for the suppliers that offer quality products and services and reasonable prices. Also, Tolerance plans to use discounts through advertisement of the suppliers products.

3.4. Technology The venue will have three laptops: one at the bar to play background music, another to be used in the entertainment area (for film screenings, as a DVD player, etc), and a third one in the office/storage room where all important data will be stored. In addition to this, Tolerance will have a PA system, microphones, microphone stands, a projector and a screen all available for performers, as well as a till system for the team.

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3.5. Future Products Initially, Tolerance will focus on offering a small yet carefully selected menu of hot and cold drinks as well as beer, wine and spirits. It will also offer a small cocktail menu, with drinks specially made with a personal touch of the establishment. In the future, Tolerance plans to employ a cocktail master who will offer the patrons a more elaborate cocktail list. While initially the focus of the entertainment part of Tolerance will be on the promotion of local independent artists: photographers, painters, film makers, musicians, etc; its future goal is to offer a bigger space for entertainers and make most of the events a weekly, monthly or an annual event, some of them with a charity character in the collaboration with the local and global charity organizations that Tolerance plans to promote and support with the money raised with the charity box and special events. At the point when Tolerance will have gained a respectable number of regular visitors and is made popular outside the city of Berlin, the management will use the trademark, that is, the name and the logo, and start using and selling goods such as cups, mugs and T-shirts with them. In the future, Tolerance will become a larger establishment with the bar and the entertaining/charity area working together but independently.

4. Market Analysis Summary

To illustrate the potential for success of an establishment such as Tolerance in Berlin, we provide a brief overview of the recent situation of bar and hospitality business in Germany. Bar business forms an important factor in the development of German economy. Currently the hospitality industry offers employment to hundreds of thousands of people and has an annual turnover of over 30 billion euro. Within this branch of service industry, bar business plays a major role by commanding 21% of the operations in the field (see figure 4.1). The significance of bars among other kinds of enterprises within the hospitality industry is grounded on the fact that there is always need for places for people to relax and enjoy entertainment to counterweight the stressful pace of todays work places. It is for this reason, among others, that bar business is able to stand strong even during economically difficult times. More than that, it is a motor for pushing the German economy into new growth through offering employment opportunities, supporting the producers of goods and promoting the circulation of finances.

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Figure 4.1 Distribution of operations within the German hospitality industry in 2010

Source: http://www.dehoga-bundesverband.de/daten-fakten-trends/gastgewerbe-im-ueberblick/

The target audience of Tolerance are young adults, artist and students, who represent a segment of population in constant search for opportunities to find enjoyable activities to fill their vacant moments, as well as for opportunities to express themselves. The formative idea behind Tolerance is to provide a space for this, which will attract both customers who want to enjoy drinks in a friendly atmosphere, and artists who wish to find a venue to showcase their work. The bar will offer a space where performers and their audience will encounter each other while being served by our professional and helpful staff. Tolerance will thus form into a location where people will keep coming back to re-experience the quality service and quality entertainment we will provide. 4.1. Market Segmentation Tolerance will make itself a destination spot within the neighborhood. The caf will provide a relaxing and entertaining space for the neighborhood, as well as for the city and its visitors, particularly younger generations with interest in art. Target market audience is a mix of the neighborhoods residents, in town residents, guests of the neighboring hotels and youth hostels, students and young professionals. Everyone is welcome to Tolerance; the bar is supportive of all creative visitors and every customer will be treated equally in their differences. Tolerance is founded on the idea of providing a friendly place for all people regardless of their skin color, sexual orientation and preference, religious denomination or any other category, as long as the ideas expressed or supported by groups and individuals do not, in any way, pose a threat to any other customer. This part will include a neighborhood description and the reason it is suitable for a venue like Tolerance. Another pie chart with predictions regarding the visitors will be included: neighborhood residents, Berliners in general and tourists.
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4.2. Target Market Segment Strategy Tolerance will appeal to all urban people, young and young-at-heart who want to enjoy their coffee/tea or an evening/late night drink in a cozy and dynamic arts-friendly environment. While our customers enjoy their drinks, they are offered a variety of entertaining events on a daily, weekly, monthly or annual basis. With its different theme nights, Tolerance will attract different costumers. For example, a night of pop music will attract younger people, while some old rock music nights will appeal to slightly older generations. Weekly open-mic nights will provide an opportunity for all those who have something to say to come and share it with the audience as long as it is not endangering any visitor on any basis, and primarily serves for entertainment and potential collaboration.

4.2.1. Market Needs Our customers needs for entertainment and a cozy and affordable place are essential for Tolerances success. The bar will appeal to everybody who wants to use the space to enjoy drinks or has an entertaining offer for us and our frequenters. Our customers are urban, well-educated and in search for new ways of entertainment. The Tolerance team will keep the menu and entertaining offerings fresh and dynamic, and thus make it a challenge for the business. Our target customers prefer affordable, entertaining places that are familiar but with regular twists.

4.2.2. Market Trends Tolerance is not only a bar that primarily endorses and supports the alternative scene in terms of music and affordability. It is also a place where young people can be part of the alternative community by not merely enjoying the performances, but also by directly participating in its development through their own artistic contributions. Berlin as one of the alternative scene centers of the world for centuries is the place for a bar like Tolerance to thrive financially on the one hand, and on the other, for the city to profit from it directly: financially and through the promotion of its arts. Moreover, in the near future the bar will offer job and internship opportunities to more people. The market situation in hospitality industry in general in Germany is improving, as can be seen in Figure 4.2, which shows the development in sales. The current economic situation may still be unstable, but innovative businesses such as Tolerance have the potential to give the whole countrys economy a boost with increasing sales and profit, in addition to generating purchasing power by offering employment and other profitable opportunities for a number of people.
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Figure 4.2 Sales development within the hospitality industry (nominal in %)

Source: http://www.dehoga-bundesverband.de/daten-fakten-trends/umsatzentwicklungen/

More information and exact figures follow after a visit and research.

4.2.3. Market Growth The concept that makes us unique in the neighborhood will be added after the exact location has been rented and our concept compared and contrasted to the neighboring venues. Our research will not be based on bars only, but also on art galleries and students' dorms, universities, etc. to know the competition and our future customers.

4.3. Industry Analysis Other similar venues in and around Weserstrae offer cozy places to sit and talk to friends. Only Silver future offers weekly live entertainment, but it is basically an LGBTQ venue that hosts performances by drag queens. Tolerance, on the other hand, goes beyond only supporting the LGBTQ community, rather offering a place for everyone to be and express themselves whether through painting, photography, singing, playing instruments, short sketches, etc.

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4.3.1. Competition and Buying Patterns This part will include an analysis based on location: comparison with other bars in the area in terms of prices, menu offers, entertainment offers, drinks, etc.

4.3.2. Main Competitors This section contains bars and venues in the direct neighborhood of Tolerance. 1. Sux The place is a basement-style venue. It is a three-room bar, but is mostly empty on week nights and weekends. The service is not friendly. Only a bartender is present and mostly does not try and keep the customers. Sux only seems to be popular with the closest friends of the bartender. Most people only talk and barely ever drink anything. The menu consists only of basic drinks: beer 2 euro, long drinks 4-6. They offer a somewhat bigger vodka-menu, for the price of two euro per shot. However, they charge extra for any additions, such as lemon, etc. 2. And dots This is a small, window-shop type of a bar. It is mostly a place where young hipsters get together and enjoy the home-like atmosphere to the point that they behave like home. It is furnished with mismatched tables and chairs, but without any style or reason, only what seems to be the desire to impress. It is rather uncomfortable. The service is extremely slow and the bartender was not helpful or friendly. The only interesting aspect is its menu of various non-alcoholic drinks, chocolate based shakes, etc. It is a place that does not guarantee a second visit by anybody not directly related to the bartender. 3. Kuschlowski This is probably the only place in the neighborhood that is rather full on all nights. The place is warm and shabbily furnished. It has room for 20-30 sitting places. The atmosphere is relaxed. The whole bar is a smoking bar. The inflow of people is not constant, but people sit for a longer period of time, ordering more than one drink. The menu is similar to other bars with somewhat higher prices. Their specialty is various vodka shots, 11 types, but they do not show them for the customers to see. The bartenders are friendly and talkative, contributing to the welcoming feel. They serve free pretzels and small bites with vodka shots. 4. The bar is a larger venue with separated smoking and non-smoking areas. The bar is constantly full. The selection of wine is bigger than in other places, they offer wine from three different countries.

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The music is barely heard, the lights are dim. The service is efficient but mostly disinterested, and often indulge in pool playing with their friends, when they do not have to be behind the bar. The place is rather unsanitary, the smell of toilet is felt upon entrance, and the toilets are extremely filthy. 5. Silverfuture Silverfuture is a LGBTQ bar which clearly states its policy at the door: a place where all heteronormative ideals need to stay outside. The place is divided between smoking and non-smoking areas. The dcor is colorful and intentionally kitschy. The menu is clearly visible behind the bar. They offer beer: 2-2,60 euro, long drinks app 5 euro, and schnapps 2-3,50 euro. They also have summer and winter specials, similar to the idea in Tolerance, but while the concept is the same, the drinks are different. They also are vegetarian friendly, offering regular and soya milk.

5. Strategy and Implementation Summary Tolerance is based on targeting and serving:

The local residents and artistically oriented people, who are not only social, but also have an artistic means to present their ideas. If they use the bars premises for their promotion, they will advertise the bar and also bring more customers. The tourists visiting Berlin who are eager to experience affordable yet educational and entertaining events and who will advertise the bar outside Germany through the wordof-mouth

5.1. Competitive Edge Tolerance maintains a competitive edge in many different areas:

It is an internationally based establishment with the owners/managers coming from different countries and offering jobs, and in the future also internship opportunities to German citizens and expats, with a belief that it is important to be equal in our differences and tolerant of them. Tolerance is a perfect blend of different cultures, offers, entertainment, style and creativity. Ritva Itkonen combines practical knowledge of working in the hospitality industry (bars, cafes and nightclubs) with profound knowledge of the management literature and experience of managerial tasks, which enables her to run a bar in a friendly and laid-back, yet very professional way.

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Mirza Doli brings, on the one hand, creative ideas for events and happenings, and immaculate organizational skills on the other, which enables Tolerance to offer carefully planned artistic events. Tolerance will organize Joanna Morris on a contract-based employment. She enriches the Tolerance team with her experience as an event organizer and a head of PR. With her, the venue will be properly advertised from the very beginning, and also, she will help recommend our bar internationally. Further Tolerance-specific characteristics that make the place stand out will be added after comparing and contrasting with the bars in its future neighborhood.

5.2. Value Proposition

We believe our value proposition is rather clear and visibly distinguishes us from other similar establishments in the area: we offer our customers affordable drinks, a cozy environment and entertainment, as well as an opportunity to contribute to events with their forms of arts, free of charge, which will guarantee attendance by visitors who will consume our products. We believe our business formula to secure regular visitors for the bar.

5.3. Sales Strategy

The first sales strategy is to establish and maintain a market position with our primary target audience: young artists and students from the neighboring areas in Berlin. We will provide beverages and entertainment, as well as opportunities for those individuals and groups to present their work. Also, the bar will target urban people who need a refreshing after-work drink. Second, we want to establish healthy business relations with our competitors and neighboring hostels and hotels, and use their premises for the advertising of our bar to visitors. (Already mentioned venues, as well as surrounding youth hostels). Third, we will use Internet networking to connect to similar establishments first in Europe and later world-wide and offer to advertise them in our bar if they are willing to reciprocate. We will also use grass roots advertising - distributing flyers and posters in local communities and liaising with the local media in order to promote the bar further.

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5.3.1. Sales Forecast

Our forecast takes into account the changes that have occurred in the general price level in Germany during the past few years. Due to the recent economic situation, consumer prices have increased since the beginning of the last decade. As can be seen in Figure 5.1, however, the rise in prices in general has been slowing down since the mid-2011. We assume, therefore, a fairly stable price level in our predictions. Furthermore, Figure 5.2 supports our presumption by depicting the recurring pattern of yearly turnover in accommodation and food service activities, which are closely related to the bar business and where the changes are mainly caused by seasonal variations. Our sales forecast can therefore be based on the evaluations made by using our assumed current prices.

Figure 5.1 Consumer price index, original values, 2005 = 100

Source: http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/EN/Content/Statistics/TimeSeries/EconomicIndicators/KeyI ndicators/ConsumerPrices/liste__vpi.psml

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Figure 5.2 Turnover in accommodation and food service activities current prices, original values, Relatives 2005 = 100

Source: http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/EN/Content/Statistics/TimeSeries/EconomicIndicators/KeyI ndicators/TurnoverHotelAndRestaurantIndustry/liste__ggums,templateId=renderPrint.psml

This section will include a chart depicting our sales forecasts based on our forthcoming research.

5.4. Milestones One of the pre-opening milestones for the success of the bar is the perfect location, and an available space in Neuklln fits the needs for establishing a venue like Tolerance. Making and updating a Facebook page and a website to inform the visitors about all happenings, which will also serve as marketing strategies. Employing a third bartender. Opening an adjoining blog section online where literary contributions will be made after the first year. It will work simultaneously with a Tolerances zine, which will develop into a proper magazine to feature art, literature and entertainment, in three/four years time. Trademarking of the logo and the name and putting them on the cups and mugs in two years time, as well as on T-shirts, to promote the bar. Employing a fourth bartender after two years. Potential business branching after ten years.

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5.5. Marketing and Promotion Strategies The following methods will be used in order to promote the bar: As soon as we secure the venue, we will have a banner across the door with the name of the bar and the words opening soon and a link to our website/networking page in order to create interest from passersby. The initial promotional campaign will begin with teaser posters posted around the locale a simple design, the name of the bar, a link to our website/Facebook and coming soon to build interest and curiosity. A big opening event will be organized and planned and worked out at least a month before it happens a relatively big name thats about to break through to the mainstream will be hired to get a big crowd to the bar initially. The promotional methods used to push this event will also continue to be used following it. For the month before the event, we will promote it constantly with posters/flyers around the town. We will contact alternative nightclubs and arrange a deal whereby they promote our bar to their customers as a place for pre-drinks before they go to their club. In return, we could sell slightly discounted tickets to their club to our customers and they could sell discounted tickets to our opening night. We will establish contacts within the local press radio, TV, magazines, zines, newspapers, events listings and will liaise with them in order to publicize our opening night. We can offer tickets as competition prizes to be offered through the media. We will consistently maintain our website and social networking pages and update them regularly with details about the bar and events. Prior to the opening night we will offer free tickets to it for the first five people to agree to be part of our Street Team and run regular competitions giving away either tickets or a free drink or some other relatively cost-free alternative. Street Team to post out flyers and posters to our contacts and let them work on our behalf in exchange for discounted/free entry to our events. Freshers fairs this will work to get our brand known. Possible sponsorship of the local university by offering them exclusive use of the venue as a meeting place one night a month, and in exchange we would get the bars name on kit/T-shirts, etc. When we book bands, if theyre local, well say that their fee depends on how many people they get in they can have a split of the door money and well give them a book of tickets to sell, thus ensuring that they work hard to promote the gig themselves. The press: well send a press release in and call to make sure theyve received it and to find out what theyll be doing on our behalf. Also, we will look at running some adverts in their publications, if they are going to be worthwhile.

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5.5.1. Sales Programs

Artist Events: we plan to develop and create opportunities to cater artistic performances and smaller independent exhibitions, film screenings, first on a smaller scale with the aim of developing it into a larger entertainment area. We will be in touch with the local promoters of independent rising artists and organize events to present and promote their work through live performances or playing CDs, movies, and painting/photography exhibitions. Special Theme Nights/Events: we will organize common theme nights (Halloween, etc.) but also our own weekly/monthly or annual theme night parties based on different musical genres, as well as dress-up parties. In the future, when Tolerance is a larger venue, we will contact smaller organizations and offer them the place for short workshops and exhibitions.

5.5.2. Positioning Statement We offer to our main target audience, young and striving independent artists, a place to express their ideas, and thus provide our other customers a chance to see them and enjoy performances, exhibitions and different events while enjoying their coffee and tea or alcoholic beverages.

5.5.3. Pricing Strategy Apart from affordable prices, we want to offer regular fun with a twist, create a famous chill atmosphere with fun events for different tastes. We want repeat business, and hence our prices are agreeable with our customers financial situation. The menu has been sketched, the final version will be included as an attachment before the opening.

5.6. Strategic Alliances Tolerance is dependent on collaboration with similar establishments, primarily in the close neighborhood. We will provide a list of venues we collaborate with after we have contacted them and started working together. If they are willing to advertise Tolerance, our venue will gladly reciprocate. In addition, we will collaborate with similar establishments in other countries and thus ensure that our potential visitors are familiar with our concept even before they visit Berlin.

6. Management Summary Tolerance is founded by Ritva Itkonen, the owner and leading manager, and Mirza Doli, the events manager on location.

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6.1. Organizational Structure Tolerance is owned by Ritva Itkonen and Mirza Doli, equally responsible for the areas under their management. Ritva Itkonen will act as the general manager. Her daily duties will consist of handling the paperwork, stock and finances, as well as being a bartender. Mirza Doli will be the events manager on location. His every-day tasks will consist of creation and execution of the event plan in collaboration with Joanna Morris (outside contract-employee), hosting the events and helping the artists with the testing of the equipment, as well as providing help to bartenders when necessary. From the very beginning, Tolerance will employ one professional bartender. Other bartenders, baristas and waiters will be hired when necessary to guarantee the bars smooth operation. In the future, Tolerance will employ more professional bartenders. Accounting and legal work will be handled by independent consultants/contractors.

6.2. Personnel Plan Tolerance will offer its employees competitive salaries which are determinded according to the German and EU law and will be kept on a reasonable level as indicated by the local costs of living. This section will be more elaborate after it has been decided how many employees are needed at start-up with their salaries. It will also include a 5-year plan of hiring new employees, their positions and salaries.

6.3. Management Team Ritva Itkonen has experience of working in the hospitality industry on a practical level. She has worked in bars, cafs and restaurants as well as nightclubs, which has given her insights into the basic operations of an establishment such as Tolerance. In addition to knowing how to handle the everyday operations of a bar, she has acquired management level skills through her experiences in working at an academic publishing company and university communications. Itkonen is familiar with managing human resources and finances, and is knowledgeable of organizational communications. Mirza Doli has gained organizational and communications skills through his previous work experience. While working as a teacher, he contributed creatively to the realization of various school exhibitions and shows. Furthermore, his work in a company dealing with the distribution of medical goods has acquainted him with the financial management of a successful business. Doli has played an essential role in the planning process for Tolerance by being a key figure behind the business plan and by giving continuous creative input in the form of ideas concerning various aspects of the bar. His visions regarding the operations of

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Tolerance, as well as his capability to adapt to changing circumstances guarantee the success of both the events organized at the bar and of its daily routines.

6.4. Management Team Gaps The management team will have to rely upon outside contractors/consultants for accounting and legal tasks. The owners and managers have worked together from the conception of Tolerance and have contributed with their ideas, contacts, and experiences. The management team is not fully fluent in German, but they will work hard to reach the level of easy every-day communication in the shortest possible period of time. On the other hand, this means that from the very beginning, at least one German speaking citizen will be employed, and later as the bar develops, even more.

7. Financial Plan We want to finance growth mainly through cash flow and we are aware that during the first year, our income could be lower than hoped for. However, by the time when Tolerance has established itself as a bar for regular patrons, entertaining groups and individuals, the income will become stable. Another factor advancing the increase of the income of Tolerance will be the grants we will apply for from different cultural organizations in order to organize cultural and charity events at the bar. Our net profit expectations will be included in the plan after we have finished our research.

7.1. Important Assumptions Financial plan depends on important assumptions and they can be found in the tables below. We assume: A slowly stabilizing national economy which will support the bar despite and because of the recession There will not be any sudden changes in technology to render ours instantly obsolete A table with expectations will be added later.

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7.2. Projected Cash Flow The Tolerance management team expects to manage the cash flow over the first three years without significant investment required after the start-up. Furthermore, it is expected that revenue beyond projected sales will be invested in retiring long-term debt early. A cash chart including cash received, sales, operations, long-term assets, liabilities, etc, will be added after the capital has been accumulated and everything predicted based on research and the situation on location.

7.3. Key Financial Indicators The most important indicators in our bar are the daily and weekly sales numbers. To be added later. 7.4. Break-even Analysis Section to be added later, it will include: a good balance of fixed costs and sales to remain healthy. 7.5. Business Ratio Section to be added later, it will include: a comparison of Tolerance's business ratios with similar businesses and the industry profile. 8. Appendix Will include extra material, such as a copy of the menu, etc.

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