I.

EXECUTIVE SUMMARY
Buffalo Wild Wings was founded in 1982 by two business partners living in
Columbus, Ohio, Jim Disbrow and Scott Lowery, who were unable to find their
distinctive Buffalo, New York-style chicken wings. They stopped searching, and
began to create their own signature wing sauce and opened the first Buffalo Wild
Wings restaurant at Ohio State University. Their concept was based on serving
authentic wings of their beloved Buffalo flavor to a crowd of enthusiastic sports
fiends and entertainment seekers. In 1994, CEO Sally Smith began to put in place
the necessary infrastructure needed to further grow the business. Smith
established the Companys HR, finance and marketing departments and went on
to lead the Company through a successful IPO in November 2003. From there on,
Smith has grown the brand to more than 840 restaurants. His goal is to open
over 1,500 restaurants throughout North America in the next five to seven years.
The company began expanding internationally in 2011 in Canada, and in 2012,
Buffalo Wild Wings announced expansion into Puerto Rico and the Middle East.

At Buffalo Wild Wings, the atmosphere is very lively and inviting, with the
40 plus flat screen televisions spread throughout the restaurant broadcasting
different sporting events. The design of the restaurant includes an extensive
multi-media system, a full bar, and an open that will appeal to sports fans and
families alike. With the option of watching sports games or playing Buzztime
Trivia, Buffalo Wild Wings works to entertain its customers in multiple ways. The
thoughtful design of our restaurant will enhance our guests experiences, drive
repeat visits, and solidify the brand appeal of our concept.
The United Kingdom, also known as a leading trading power and financial
center, is the third leading economy in Europe behind Germany and France. As
Strategy Advisors of Buffalo Wild Wings, we believe that the United Kingdom. is
a great fit for our third international expansion. Sports are an integral part of
daily life in the U.K.., as many of the residents play and watch them, including the
immensely popular Premier soccer leagues. Out of the 64.1 million residents,
only about 6.2 percent are unemployed as of 2014 (decreasing by 1.1 percent from
2013). The United Kingdom is a well-developed country, having an inflation rate
of only 1.5%. This nation focuses strongly on business and will be perfect for the
expansion. Additionally, the large number of civilians employed coupled with the
moderate, average incomes of the majority of English residents reinforces why
Buffalo Wild Wings would profit in such a fiscally booming area.
We are asking for a loan of $500,000 from a commercial bank to get our
restaurant started. Combined with our own savings of $170,000, the total funds
of $670,000 will be used for store build-out and operating cash for the first thirty
days. Our repayment plan is centered around annual payments of $78,000 with

loan repayment projected as a seven-year note at a 5.90% fixed interest rate. Our
gross margin is expressed as a 12.2% percentage rate.
Buffalo Wild Wings is the recipient of hundreds of Best Wings and Best
Sports Restaurants awards from across the country. There are currently 850
Buffalo Wild Wings joints spanning across forty-eight states in the U.S., as well as
in Canada. Lets add to this growing number by opening another prosperous
restaurant in London and making Buffalo Wild Wings an international brand.

II. ANALYSIS OF THE INTERNATIONAL BUSINESS SITUATION

A. Economic, political and legal analysis of the trading country
1. Describe the trading countrys economic system, economic information
important to your proposed business/ product/service, the level of foreign
investment in that country
Great Britain, also known as a leading trading power and financial center,
is the third leading economy in Europe behind Germany and France. As Strategy
Advisors of Buffalo Wild Wings, we believe that England is a great location for
our third international expansion. Out of 64.1 million residents, only about 5.1
percent are unemployed (decreasing by 1.1 percent since 2013). England is a
well-developed country, having an inflation rate of only 1.5 percent. The nation is
dominated by business and tourism, making Buffalo Wild Wings a natural fit.
Agriculture is intensive, highly mechanized, and in European standards,
efficient. England produces about 60 percent of the food needs with less than
two percent of the labor force. Banking, insurance, and business services are the
key contributors to British GDP growth. Manufacturing, meanwhile, has
decreased in significance but still accounts for 10% of economic output. As of
2015, England has been ranked at one of the most globalized economies, as
London also has the largest city GDP in Europe. Service sector business
dominated the British economy, making up about 78 percent of GDP. Financial
services are particularly important, at a tie with New York for the largest financial
center. The British central bank is known as the Bank of England; its Monetary
Policy Committee sets the national interest rates. The currency of the United

Kingdom (England, Scotland, and Ireland), is the pound sterling. The pound is
the worlds third largest reserve currency, behind the United States dollar and the
EU euro. According to the OECD, economic growth in England is the result of
exemplary job creation: a trend predicted to continue throughout 2015 and 2016.
Growth was further underpinned by robust private consumption and investment.
2. Describe the trading countrys governmental structure and stability, how the
government controls trade and private business.
In England, the prime minister is the head of the government. He
oversees the operation of the civil service and government agencies, appoints
members of the government, and is the principal government figure in the House
of Commons. The current prime minister is David Cameron. The British cabinet
is made up of senior members of government and every week during parliament,
the members of the cabinet meet together to discuss the important issues of the
government. Ministers are chosen by the prime minister from members of the
House of Commons and the House of Lords. They are responsible for actions,
successes and failures of their department. The Civil Service does the practical
and administrative work of the government. It is coordinated and managed by
the Prime Minister, in their role as Minister for the Civil Service. Half of the civil
servants provide direct services such as paying benefits and pensions, running
employment services, staffing prisons, and issuing drivers licences. In England
the trade control licences are issued by the Export Control Organization (ECO).
The ECO controls licensing overseas trade or transfer of military goods, which
are classified in the category of trafficking or brokering. Traffic control licenses
were originally created to license the overseas trade of military items. The trade

in dual-use goods is also licensed and requires a trade control licence. Laws go
through several stages before they are passed by the parliament. The house of
Commons and the House of Lords work together to make them.
3. Describe laws and/or governmental agencies that affect your
business/product/service [i.e., labor laws, trade laws (U.S.A. and/or Canada and
foreign)]
International trade law is a very complex and an ever expanding area.
There are basically four levels of international trade relationships: unilateral
measures (national law), bilateral relationships (Canada-United States Free
Trade Agreement), plurilateral agreements, and multilateral arrangements
(GATT/WTO). Trade Agreements reduce barriers to U.S. exports, and protect
U.S. interests and enhance the rule of law in the FTA partner country. In 2014,
47 percent of U.S. goods exports went to FTA partner countries (England being
one of those partner countries). U.S. merchandise exports to the 20 FTA partners
with agreements in force totaled $765 billion, up 4 percent from 2013.

In 1995 the World Trade Organization was created to regulate

international trades. It is the most important development in history of
international trade law. `

B. Trade area and cultural analysis

In Great Britain, the Corporate Social Responsibility (CSR) is becoming
more important for businesses where there is strong growth in consumer
activism thanks to the prevalence of social media and the grassroot organizations.
The three main topics and ideas for CSR in Great Britain are workplace issues
(human rights, employment, work life balance), community contribution (big

society/social justice), and lastly, the environment (sustainability of resources).

Waste management is an important environmental topic, due to the
consumption of natural resources and excess wastes not being able to remain
maintained. The sector is going through a period of substantial change and
extensive discussions that are taking place to find the best solutions to the
environmental issues. The country is trying to reduce the amount of industrial
and commercial waste tossed away in landfill sites and increasingly a growing
percentage of household waste is being recycled.
The British value timekeeping for business arrangements. If you set up a
meeting for two oclock, then chances are the counterparts you are meeting with
will arrive right on time or just before. The British are so conscious with their
time that it comes off as them not caring to make time or feeling rushed.
However, they only do this to avoid losing valuable time, an economic resource.
Gift giving is not a usual part of the British business etiquette, although
reciprocation is good practice when gifts are received. Some organizations are
told not to take any form of gift when given. In some cases, accepting gifts is
prevented on legal grounds. When there are times that a gift is offered, it should
not be costly enough to where it could be considered a bribe or too inexpensive
which can be seen as an insult.
The United Kingdom is situated off the northwest coast of Europe
bordered by the Atlantic Ocean and from Europe separated by the North Sea and
the English Channel. The Irish Sea and the North Channel separate Great Britain
from Ireland. England is on the eastern-most side closest to France and Belgium.

Londons urban area is the highest in Europe at 9,787,426 people. The

metropolitan area is the largest in the EU with a population of 13,614,408 people.
According to the OECD study, the average household net-adjusted disposable
income per capita is $27,029 a year (in USD, ranked 14/36 OECD countries).
2. Market segment analysis target market
One of the aspects of Buffalo Wild Wings that makes it such a successful
restaurant and business is the inviting neighborhood atmosphere and energetic
environment offered to customers once they step inside. Buffalo Wild Wings
provides an extensive multi-media system with an open layout, which allows
guests to customize their dining experience. This unique service model allows for
customers to choose between a workday lunch, an afternoon watching a sporting
event, or a late-night craving to meet their different time demands and service
preferences. Customers appreciate that they can stop by to catch a quick bite to
eat while watching the game, or have a more formal sit down meal with their
family.
Londons urban area is the highest in Europe at 9,787,426 people, making
this city a primo spot for a Buffalo Wild Wings. Additionally, Londons
metropolitan area is the largest in the EU with a total population of 13, 614, 409.
According to the OECD the average household net-adjusted disposable income
per capita is $27,029 a year (in USD, ranked 14/36 OECD countries), the average
household net financial wealth per capita is estimated at $60,778 (in USD,
ranked 8/36), and the average net-adjusted disposable income of the top 20% of
the population is an estimated $57,010 a year, whereas the bottom 20% live on
an estimated $10,195 a year giving a ratio of 5.6 (in USD, ranked 25/36). These

numbers support the notion that our target market could afford the prices of the
menu items at Buffalo Wild Wings; nothing is out of the majority of the
populations range in terms of pricing and affordability.

Income can vary considerably by location. For example the locations (local
administrative unit) with the highest incomes were the City of London,
Kensington and Chelsea, and Westminster with median annual incomes of
58,300, 37,800 and 35,200 respectively. Furthermore, Londons rank as one
of the municipals highest incomes contribute to the affordability and
attractiveness of Buffalo Wild Wings to the urban population of Britain. The chart
below demonstrates the discrepancy between male and female incomes
throughout the country. Due to the statistics presented, men do tend to generate

higher incomes per year. However, because Buffalo Wild Wings offers affordable,
moderate prices, the disparity between male and female incomes will not serve to
be an issue in terms of attracting both genders to the restaurant.

3. Analysis of the potential locationimportance and requirements of each trade

document required by the U.S.A. and/or Canada and the country of choice
The United Kingdom is apart of the World Trade Organization, meaning
that they are willing to trade and that trade is attractive to them. A commercial
invoice is a bill for the goods from the seller to the buyer. These invoices are often
used by governments to determine the true value of goods when assessing
customs duties. Governments that use the commercial invoice to control imports
will often specify its form, content, number of copies, language to be used, and

other characteristics. BritishAmerican relations, also known as Anglo-American

relations, encompass many complex relations starting from two early wars to
competition for world markets. Since 1940 they have been enjoying the Special
Relationship that made them wartime allies. The two nations share a common
background of history, language, and an overlap in religious views and legal
system. The United Kingdom views its relationship with the United States as its
"most important bilateral partnership" in the current British foreign policy. The
American foreign policy affirms its relationship with Britain as its most
important relationship, and is proven by their aligned political affairs, mutual
cooperation in the areas of trade, commerce, finance, the sharing of government
and military intelligence, and joint combat operations and peacekeeping missions
carried out between the United States Armed Forces and the British Armed
Forces. According to the United States Census Bureau, the United Kingdom was
ranked fifth in exports and seventh in terms of imports. The United States
accounts for the largest single export market in the United Kingdom, purchasing
$57 billion worth of British goods in 2014. The total amount of imports and
exports in 2014 between the United Kingdom and the United States was
approximately $107.2 billion. The two countries share the worlds largest foreign,
direct partnership. In 2012, American direct investment in the United Kingdom
was about $324 billion while British direct investment in the United States
totaled $282 billion. US Secretary of State John Kerry, in London with UK
Foreign Secretary William Hague on September 9, 2013, said "We are not only
each others largest investors in each of our countries, one to the other, but the
fact is that every day almost one million people go to work in America for British

companies that are in the United States, just as more than one million people go
to work here in Great Britain for American companies that are here. So we are
enormously tied together, obviously. And we are committed to making both the
U.S.-UK and the U.S.-EU relationships even stronger drivers of our prosperity.
III. PROBLEM
One of the major issues with restaurants and the United States is the lack
of mass urbanization nationwide. Unlike Europe, the United States lacks an
abundance of public transport systems. In England, much of the country is
metropolized therefore public transit is widely available. Patrons are more likely
to be out and about in a country like England, where much of the larger areas
operate in cities and people are constantly on the move. Buffalo Wild Wings
addresses the issue of finding a suitable place to eat for both a quick meal, or a
more sit-down style dinner.
Additionally, Buffalo Wild Wings solves the problem of incorporating a
fun, lively atmosphere for young singles, while also maintaining an appropriate
environment for families and children. Their mediums of entertainment are so
diverse in that they offer a unique Buzztime Trivia game, appealing to children of
all ages, along with an abundance of flat screen televisions broadcasting sports of
all types, which is attractive to people of all ages.
Buffalo Wild Wings addresses the problem of including a menu with
enough variety to please any food-lover, while also ensuring the utmost quality of
the food. Most restaurants struggle with maintaining high-quality food if the
menu is too expansive, however with Buffalo Wild Wings, the quality of the food
is always considered key in guaranteeing customer satisfaction.

IV. CUSTOMER SEGMENTS

Sports fans are the main clientele for Buffalo Wild Wings. There will be
60+ televisions in this restaurant airing all sports that are on at that time. The
restaurant will be airing the United Kingdoms sporting events, which range from
the immensely popular premier leagues to local rugby games. Premier league
soccer fans are a major sector of our target market as their passion for their
respected teams and their need for a place to watch the matches while dining out
coincides perfectly with Buffalo Wild Wings services offered. Advertising major
sports events and well-known players would be one of the most effective ways to
reach this target market. The Buffalo Wild Wings in this location will also set up
a sports-related video game station to target video-gamers, as well.
Families are another huge factor contributing to the target market of
Buffalo Wild Wings. Several forms of entertainment are available to appease the
family-friendly market the restaurant expands its outreach too. The space at
Buffalo Wild Wings is equipped with easily rearrangeable furnishings, allowing
for accommodations for groups and families of all sizes. Additionally, a kids
menu is included with the restaurants full menu as well, which embodies much
of the same menu items in smaller portions to accommodate families with young
children. Each of their restaurants offer a variety of entertainment, ranging from
different sporting events, other popular television shows, and even an interactive
trivia game. This incorporates the customer interest of not only families, but
groups of friends from all ages and young adults as well.

V. UNIQUE VALUE PROPOSITION

Buffalo Wild Wings is a sports bar and restaurant rolled into one. The
restaurants diverse, yet expansive menu, along with their multiple mediums of
entertainment provide for a truly unique and distinct dining experience that
cannot be found anywhere else. Guests are able to fully customize their dining
experience, choosing between a workday lunch, an afternoon watching a sporting

event, or a late-night craving to meet their different time demands and

preferences. The combination of the family-friendly, yet lively and dynamic
environment appeals to both families and young singles.

VI. SOLUTION

Buffalo Wild Wings offers an expansive and diverse menu, serving a wide
range of flavorsome options for customers to choose from. Their menu features
their fresh chicken wings among other major categories including boneless
chicken wings, chicken tenders, popcorn shrimp, and speciality hamburgers and
sandwiches. These made-to-order menu items are enhanced by the bold flavor
profile of over twenty different signature sauces, ranging from mild Teriyaki to
fiery Blazin.
In addition to our unique menu, Buffalo Wild Wings boast a wide variety
of types of entertainment. The content and volume of our video and audio
programming are tailored to reflect our guests tastes. An inviting neighborhood
atmosphere along with the extensive multi-media system, full bar, and open
layout will appeal to sports fans and families alike.
A convenient take-out service is offered by Buffalo's, where you can call
and order your food, then go to pick it up where your meal will be waiting. This
option would coincide perfectly with a Premier soccer League tournament or
other major sporting event, because of the large magnitude of wings and game
day foods available to customers through the take-out service. Additionally, this
option makes the restaurant fully adaptable to the customers needs, providing
their product through whatever medium best works for the client.
VII. CHANNELS
The distribution process deals with the chain of businesses or
intermediaries through which a good or service passes until it reaches the end
consumer. Buffalo Wild Wings products such as wings, chicken, burgers,
vegetables, and sauces originate from local Buffalo Wild Wings distributors. The

products are delivered to the local restaurants where they are cooked and served
by servers to the guests. This is a direct channel of distribution, because BWW
National Headquarters takes complete control of where their product is coming
from. The distributors as well as the retailers take title of the product in this
situation. The distributor is the equivalent of a wholesaler in that all Buffalo Wild
Wings purchase their inventory from them. The restaurants or retailers then
distribute them to the customer. McLane Company supplies Buffalo Wild Wings
with all of the food and paper products needed for the restaurant. The T.
Marzetti Company produces the signature sauces and also safeguards our sauces
from being manufactured or supplied to anyone else, due to the confidentiality
agreement. Peco Foods accounts for the bulk of our chicken wings distribution,
certifying the high quality and freshness our wings are known for. After each
company delivers the food and sauces to Buffalo Wild Wings, we prepare the food
(fresh everyday) and serve it to our customers. Due to our consistent loyalty to
these companies, they do not charge an extra fee to ship internationally.
VIII. REVENUE STREAMS
Wings
Traditional:

Snack: $6.49

Small: $10.99

Medium: $15.49 Large: $19.99

Boneless:

Snack: $8.49

Small: $10.49

Medium: $14.99 Large: $18.99

Shareables
Ultimate Nachos:

$7.99 (add chicken $8.99)

House Sampler:

$12.95

Tablegating Sampler:

$12.99

Roasted Garlic Mushrooms

$5.99

Spinach Artichoke Flatbread

$8.49

Chili Queso Dip

$7.29

Fried Pickles

$6.29

Mini Corndogs

$5.99

Chips and Salsa

$3.99

Potato Wedges

$4.99

Buffalo Chips

$4.99

French Fries

$4.99

Burgers and More

BBQ Chicken Sandwich

$9.49

Buffalo Ranch Chicken Sandwich

$9.49

Bacon Cheeseburger

$9.99

Big Jack Daddy Burger

$10.49

Black & Blue Burger

$9.49

Classic Burger

$8.99

Screamin' Nacho Burger

$9.29

Wraps and Sandwiches

Buffalo Ranch Chicken Wrap

$8.79

Grilled Chicken Buffalitos

$8.79

Hickory Pulled Pork Sandwich

$9.49

Bayou Po'Boy

$8.49

Classic Chicken Wrap

$8.79

Southwest Philly
Pepper Jack Steak Wrap

$10.49
$9.99

Tenders and Mac

Naked Tenders

4 Tenders- $8.79
5 Tenders- $10.29

Crispy Tenders

4 Tenders- $8.79
5 Tenders- $10.29

Buffalo Mac & Cheese

$8.99

Salads
Chicken Caesar Salad

$8.29

Garden Chicken Salad

$8.99

Mediterranean Salad

$10.99

Prime Rib Salad

$10.29

Garden Side Salad

$3.99

Honey BBQ Chicken Salad

$9.49

Sweet Spot
Chocolate Fudge Cake

$5.29

Cheesecake Bites

$9.99

Ice Cream

$1.99

Dessert Nachos

$7.49

Little Buffalos
Boneless WIngs

$4.59

Traditional Wings

$4.59

Naked Tenders

$4.79

Chicken Tenders

$4.79

Cheese Flatbread

$4.49

Mini Corndogs

$4.49

Mac & Cheese

$4.49

Cheeseburger

$4.49

B. What are the lifetime values?

Lifetime value, or the project revenue that a customer will generate during
their lifetime, is calculated by averaging the number of customer value per
week multiplied the number in years desired.

Below is a table demonstrating these variables and how we arrived at our

total lifetime value of $25, 272. Note that we used fifty two as our constant
as we derived that number from the amount of weeks in a year.

Average Customer Value per Week

Time (in yrs.)

Total

24.30

20

52* (24.30 *20)= $25. 272

C. What is Revenue?
We plan on generating our revenue through the selling of our famous buffalostyle chicken wings, other popular menu items such as chicken tenders and
nachos, drinks, sodas, and entertainment. Through this avenues of production,
we can profit generously off of frequent customer visits and orders.
D. What is the gross margin?

The gross margin, or the difference between revenue and the costs of
goods sold of our business is expressed in the table below.

We plan on aiming for a gross profit of $1, 710,000 after subtracting the
costs of sales from our total sales value.

Our net income is a total of $209, 400 after subtracting $1, 500,600 for
the operating expenses.

This leaves us with a gross margin of 12.2%.

Net Income

Gross Profit

Gross Margin

$209,400

$1, 710, 000

12.2% (net income/gross profit)

IX. COST STRUCTURE

We arrived at our customer acquisition cost by determining how much in

total funds we spent on marketing, researching, and advertising our
product to the customer.

We then took this number, $225,000, and divided it by the amount of

customers acquired in the period that our money was spent (around one
full year).

Below is a table demonstrating the total number, .75, for our customer
acquisition costs.

Total Funds Spent on

Marketing/Advertising

Total Number of
Customers

Customer Acquisition
Costs

$225,000

$300,000

$.75

Distribution costs were found by calculating the total amount of money

spent on moving the goods from their wholesaler to the Buffalo Wild Wings
location in London, England. Although we are moving the product from one
country to another, there will be no additional fee tacked on for oversea shipping
as our consistent brand loyalty with our wholesalers has secured such deal. This
brings the cost of distribution to a total of $85,00 divided amongst the three
channels we use: McLane Company, T. Marzetti Company, and Peco Foods.

C. What are the human resources costs?

Human resource costs are a combination of the price a business pays to

fund formal training, uniforms, and employee benefits.

After totaling each of these categories, we found the total human resource
costs to be $5,700.

Human Resource Cost

Totals

Formal Training

3,000

Uniforms

1,200

Employee Benefits

1,500
5,700

D. Additional costs?
Due to our precise mapping of finances, we have no additional costs to
report at this time.
X. DETAILED FINANCIALS
A. Projected income statements by month for the first years operation (sales,
expenses, profit/loss)
Month

Sales

Expenses

Profit

January

169,000

123,000

120,000

February

175,000

117,000

122,000

March

177,000

118,000

126,000

April

182,000

120,000

128,000

June

190,000

116,000

129,000

July

194,000

115,000

133,000

August

192,000

110,000

134,000

September

191,000

113,000

136,000

October

196,000

114,000

137,000

November

226,000

116,000

143,000

December

240,000

118,000

147,000

Totals

2,132,000

1,280,000

1,455,000

B. Projected cash flow for the first year

The following cash flow statement represents the first year of business.
The start-up expenses include utilities, bank fees, lease, maintenance, furniture,
payroll, and equipment. The total start-up expenses total 532,500. We expect our
sales to grow and will increase 5% percent in year two and 5% percent in year
three. On page 10 you will see my projected cash flow statement for three years.
The following are financial objectives that we will strive to achieve while
operating our Buffalo Wild Wings franchise:

Sales and expense growth projected at 5% annually.

Estimated income taxes budgeted at 30% of net income.

Grand opening cash need based on 2 weeks of recurring operating

expenses.

Business is projected to generate excess income after taxes and debt

repayment of 69,000 to 92,000 annually over the next 4 years.

Buffalo Wild Wings, LLC Year One Income/Cash Flow Statement
SALES:

Food & Beverage

TOTAL SALES
COST OF SALES: Food & Beverage
TOTAL COST OF SALES
GROSS PROFIT

2,400,000
$
2,400,000
690,000
$
690,000
1,710,000

OPERATING EXPENSES:
Administrative
125,000
Advertising Local & National
90,000
Bank Fees
11,000
Charitable Donations
3,400
Cleaning Building
5,000
Credit Card Fees
30,000
Franchise Fees
15,000
Insurance (Bus, Health, Workers Comp) 53,000
Lease
115,000
Legal Fees
11,000
Maintenance (Building & Equip)
15,000
Marketing & Promotions
45,000
Office & Paper Supplies
50,000
Payroll
703,000
Payroll Fees & Taxes
118,000
Smallwares
9,000
Supplies (Kitchen & Cleaning)
28,000
Training
3,000
Uniforms
1,200
Utilities
70,000
TOTAL OPERATING EXPENSES $
1,500,600
NET INCOME:
$
209,400
C. Projected cash flow by month for the first years operation
Jan

Feb

Mar

Apr

May

Jun

July

Aug

Sept

Oct

Nov

Dec

Capital
Expenditu
res

$137,4
66

$136,0
00

$135,00
0

$133,50
0

$132,00
0

$130,5
00

$129,0
00

$128,0
00

$126,50
0

$125,0
00

$123,50
0

$122,0
00

Investme
nts

$10,00
0

$3,440

$12,300

$5,630

$35,00
0

$11,234

$16,67
9

$1,200

$5,620

$3,214

$6,123

$23,78
3

Cash
flows
from
investing
activities

$30,55
0

$15,671

$1,500

$22,50
0

$43,86
0

$15,50
0

$5,600

$3,733

$8,000

$19,05
0

$25,00
0

$7,000

Total
cash
flows
from
investin
g
activitie
s

$178,0
16

$155,1
11

$148,0
00

$161,6
30

$210,8
60

$157,2
34

$151,2
79

$132,9
33

$140,1
20

$147,2
64

$154,6
23

$152,7
83

Sales
purchase
of stock

$3,032

$2,999

$3,500

$2,200

$3,625

$2,783

$2,300

$2,585

$3,420

$4,105

$3,120

$3,330

Other
cash
flows
from
financing
stock

$7,417

$5,632

$5,611

$5,909

$4,900

$7,800

$5,215

$6,350

$4,500

$3,975

$5,100

$7,290

Total
cash
flows
from
financi
ng
activitie
s

$10,44
9

$8,63
1

$9,111

$8,109

$8,525

$10,58
3

$7,515

$8,935

$7,920

$8,08
0

$8,22
0

$10,62
0

Effect of
exchange
rate
changes

$1,942

$1,730

$3,300

$2,194

$3,754

$4,150

$1,250

$1,375

$2,550

$3,615

$2,369

3,400

Change
in cash
and cash
equivalen
ts

$8,507

$6,901

$5,811

$5,915

$4,771

$6,433

$6,265

$7,560

$5,370

$4,465

$5,581

$7,220

D. Projected balance sheet, end of first year

Assets
Current Assets
Cash

$200,000

Accounts Receivable

$4,150

Merchandise Inventory

$10,000

Total Current Assets

$214,150

Fixed Assets
Vehicle

$0

Furniture and Fixtures

$60,400

Equipment

$78,000

Leasehold Improvement

$115,000

Other Assets

$263,400

Total Other Assets

$516,800
Liabilities and Capital

Current Liabilities
Accounts Payable

$23,000

Accrued Wages Payable

$0

Short-Term Notes Payable

$0

Total Current Liabilities

$23,000

Long-Term Liabilities
Long-Term Notes Payable

$450,450

Long-Term Liabilities

$450,450
Total Long-Term Liabilities

$473,450

Capital
Owner's Equity

$21,675

Owner's Equity

$21,675
$43,350

Total Liabilities and Capital

$516,800

E. Projected three-year plan

Below is a chart depicting our projected income years 1-4. Loan repayment
is projected as a 7-year note at 5.90% fixed interest rate. Sales and expense
growth projected at 5% annually. Annual loan payments will be approximately
$78,000.
Year 1

Year 2

Year 3

Year 4

Sales

2,400,000

2,520,00

2, 646,000

2, 778, 300

Net Income

209,400

219,870

230, 863

242, 406

Est. Income Taxes

62,000

66,000

69,000

72, 000

Annual Loan Payments

78,000

78,000

78,000

78, 000

Excess Income

69,400

75, 870

83, 863

92, 406

F. A brief narrative description of the planned growth of the proposed business,

including financial resources and needs
We expect for sales to grow to 2,778,300 after four years of business, along
with an increase in net income to 242,406 after year four as well. This growth will
be generated by a loan of $500,000 from a commercial bank in London, England.
Below you will see financial objectives that we will strive to achieve while
operating our Buffalo Wild Wings franchise:

Sales and expense growth projected at 5% annually.

Business is projected to generate excess income after taxes and debt

repayment of 69,000 to 92,000 annually over the next four years.

G. Proposed plan to meet capital needs

Our plan for meeting capital needs includes a combination of a fixed loan
from a commercial bank, along with our own personal funds. The banks fund will
make up the majority of the capital necessary for instituting our business in
London. Furthermore, the personal funds will fill in the holes of what the banks
loan cannot cover, providing our business with the funds it needs to run properly
and ensure a successful start-up of business ventures. These funds will be used in
two ways; the majority of the funds will be used for store build-out and FF & E. A
total of $30,0000 will be used as operating cash for the first thirty days of open
business.
1. Personal and internal sources

Our own combined savings of $170,00 was acquired from saving up and
the support of our families.

This money will be used to extradite the funding process and help cover
what the bank loan cannot provide for us.

2. Earnings, short-term and long-term borrowing, long-term equity

Our earnings stem from our total revenue and net income. As listed above,
our net income is demonstrated to be 242,406 after four years.

Short-term borrowing includes pulling from our personal savings of

$170,000, while our long-term borrowing delves into the $500,000 loan
from a commercial bank.

The long-term borrowing will involve repayments annually to fend off debt
and keep our business in positive credit.

3. External sources

The external sources will come from a loan of $500,000 from a

commercial bank located in London, England.

The bulk of these funds will be used for the infrastructure of the building,
along with the interior design, utilities, and necessary supplies.

5. Repayment plans
Our repayment plan is centered around a repayment value of $78,000 per
year. By using this method of annual repayment, we can ensure a proper renewal
process to the banks and keep our business out of debt.
6. Plan to repay borrowed funds or provide return on investment to equity funds

Loan repayment is projected as a 7-year note at 5.90% fixed interest rate.

Annual loan payments will be approximately $78,000.

This plan will ensure quick return on investments provided by the

commercial bank in London, England, who we will be using as our main
source of funding.

XI. KEY METRICS

Keeping track of various activities helps a restaurant run as it should and
become successful. It becomes crucial for a business to measure different outlets
of the revenue precisely, in order to keep everything straight and organized. How
much food or product is sold is a major activity that needs to be measured. In
addition, further care should be taken to observe which menu items are
generating the most revenue and which do not receive as much attention. The

amount of drink sold, along with the amount of customers entering in and out of
the restaurant is another major factor crucial to tracking the restaurants
progress. Knowing which nights are the most frequented by customers can help
the restaurant prepare as need be in terms of food and service.
XII. COMPETITIVE ADVANTAGE
Buffalo Wild Wings goes above and beyond competitors in the categories
of Wings, Beer, and Sports. With over 30 beers, 16 sauces and 68 TVs per
restaurant, this offers customers many options for the beer they wish to drink,
wings to eat, and games to watch. The combination of the family-friendly
environment coupled with the lively atmosphere appealing to young singles
makes Buffalos truly a unique source of not only food, but entertainment as well.
XIII. CONCLUSION
We are asking for a total of $500,000 in loan from a commercial bank in
London, England. This money, combined with our own personal savings of
$170,000, will be used for store build-out, along with $30,000 of the fund used
as operating cash for the first thirty days. We plan on generating a net income of
$209,400 for the first year, along with a gross margin of 12.2%. With annual loan
repayments of $78,000, we plan on repaying the banks borrowed funds in full,
giving the bank a quick return on all investments. Loan repayment is projected as
a 5.90% fixed interest rate, along with sales and expense growth at a projection of
5% annually.
XIV. BIBLIOGRAPHY

http://ic.galegroup.com/ic/ovic/ViewpointsDetailsPage/ViewpointsDetail
sWindow?

http://trade.gov/fta/

http://customerlifetimevalue.co/

https://blog.kissmetrics.com/customer-acquisition-cost/

http://www.investopedia.com/terms/g/grossmargin.asp

http://ir.buffalowildwings.com/management.cfm

https://www.gov.uk/government/publications/2010-to-2015government-policy-free-trade/2010-to-2015-government-policy-freetrade

http://mappinglondon.co.uk/category/demographics/

http://www.bbc.com/news/uk-england-london-20680565
http://data.london.gov.uk/dataset/percentage-people-low-incomeborough