Lowland Heights Roadhouse

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Table of Contents
1.0 Executive Summary.............................................................................................................................1
Chart: Highlights ......................................................................................................................3
1.1 Objectives ...................................................................................................................................3
1.2 Keys to Success ........................................................................................................................3
1.3 Mission........................................................................................................................................4
2.0 Company Summary.............................................................................................................................4
2.1 Company Ownership .................................................................................................................4
2.2 Start-up Summary ......................................................................................................................4
Table: Start-up Funding ..........................................................................................................5
Chart: Start-up .........................................................................................................................6
Table: Start-up .........................................................................................................................6
3.0 Services................................................................................................................................................6
4.0 Market Analysis Summary..................................................................................................................7
4.1 Market Segmentation ................................................................................................................7
Table: Market Analysis ...........................................................................................................8
Chart: Market Analysis (Pie) ..................................................................................................8
4.2 Service Business Analysis........................................................................................................8
4.3 Competition and Buying Patterns ............................................................................................8
5.0 Strategy and Implementation Summary ............................................................................................9
5.1 Competitive Edge ......................................................................................................................9
5.2 Marketing Strategy.....................................................................................................................9
5.3 Sales Strategy..........................................................................................................................10
5.3.1 Sales Forecast ............................................................................................................10
Table: Sales Forecast.................................................................................................10
Chart: Sales Monthly ...................................................................................................11
Chart: Sales by Year ...................................................................................................11
6.0 Web Plan Summary ..........................................................................................................................11
6.1 Website Marketing Strategy...................................................................................................12
6.2 Development Requirements ...................................................................................................12
7.0 Management Summary ....................................................................................................................12
7.1 Personnel Plan.........................................................................................................................12
Table: Personnel ...................................................................................................................13
7.2 Management Information Systems ........................................................................................13
7.3 Key Management.....................................................................................................................13
8.0 Financial Plan ....................................................................................................................................15
8.1 Break-even Analysis................................................................................................................15
Chart: Break-even Analysis .................................................................................................15
Table: Break-even Analysis .................................................................................................15
8.2 Projected Profit and Loss .......................................................................................................16
Chart: Profit Monthly .............................................................................................................16
Chart: Profit Yearly................................................................................................................17
Chart: Gross Margin Monthly ...............................................................................................17
Chart: Gross Margin Yearly..................................................................................................18
Table: Profit and Loss ..........................................................................................................18
8.3 Projected Cash Flow...............................................................................................................19
Table: Cash Flow..................................................................................................................19
Chart: Cash ...........................................................................................................................20
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Table of Contents
8.4 Projected Balance Sheet ........................................................................................................21
Table: Balance Sheet ...........................................................................................................21
8.5 Business Ratios .......................................................................................................................22
Table: Ratios .........................................................................................................................23
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: Profit and Loss ...............................................................................................................................3
Table: Cash Flow .......................................................................................................................................4
Table: Balance Sheet ................................................................................................................................5
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Lowland Heights Roadhouse

1.0 Executive Summary
Introduction
The long-term goal of Lowland Heights Roadhouse for temporary lodging, restaurant, bar and
RV Park by creating a differentiated experience capitalizing on personal service, the historical
nature of the Roadhouse buildings, and its unique loc ation in one of the most attrac tive parts
of South Central Weststate. We plan to be more than a great lodging, restaurant, bar and RV
Park. We plan to create an environment of pampered luxury that surpasses the standard fare
for Dusty Corners. Expanding our exposure via the Internet and introducing the Greenhorn
Valley to people that have not yet disc overed this year-round paradise will allow us to maintain a
higher than average oc cupancy rate and above average profits.
Location
The Lowland Heights Roadhouse is loc ated in South Central Weststate at the northern end of
the Greenhorn Valley and is surrounded by the Ombligo de Dios mountain range on the east and
the Lost Pony hills on the west. The Roadhouse is loc ated on a main thoroughfare Route 173,
loc ated approximately 52 miles north of Silver Gulch and 47 miles southwest of Friday Falls.
The Company
Lowland Heights Roadhouse is an established Motel and RV Park, and has been in operation for
the last forty-four years as Thirsty Creek Lodge and The Lodge at Lowland Heights. After
taking possession and a brief period of bec oming established, we added a restaurant to ensure
a steady flow of patrons (hunters, tourists and loc als) through its doors. The past four owners
had only owned the property for two to three years eac h, the business has not been operated
to its fullest capacity and was run down. Next spring we plan on adding a full service coinoperated laundry fac ility (washing, drying, and optional folding) along with a four bay selfserve car wash.
The Lowland Heights Roadhouse is a dba of Golden Cholla Enterprises LLC, a Weststate
Corporation owned and operated by Tory Britts and assisted by her husband Gisli Njerdginsyn.
Britts and Njerdginsyn will operate the Roadhouse as a hunting resort during the months
of September to December. During the rest of the year it will operate as a vac ation resort
(January to August). The lodge will be opened year round 24 hours a day, 7 days a week.
Our Services
The Lowland Heights Roadhouse was originally built in 1954. Each of our rooms is equipped
with two double beds or a queen bed, and rooms with a second bedroom or kitchenette are
available. We have a full-service restaurant, a bar with a dance floor that provides live
entertainment, and eight RV sites with hook-ups. Next spring we will be putting in full-service
coin-operated laundry fac ilities (washing, drying, and optional folding) along with a four-bay
self-serve car wash. The Roadhouse also has on-site front desk service. The buildings have
undergone a number of restorations and we plan more, possibly adding 10 more motel units
next spring.
As the Roadhouse bec omes established through the peak season, we plan to expand our services
to the residents of Dusty Corners and surrounding cities in time for the off-season. The large
dance floor area is ideal for formal or informal gatherings (e.g. wedding receptions, club
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meetings, Christmas parties, family reunions, etc.).
The Market
Lowland Heights Roadhouse's target market strategy is based on bec oming a destination choice
for the people in the Greenhorn Valley who are looking for a plac e to relax or recharge. The
target markets that we are going to pursue are people or families looking for a vac ation
destination, honeymooners, family reunions, hunters, and drop-in c ustomers. Our setting and
fac ility is a natural for people or families to visit, what with the Greenhorn Valley having so
many outdoor things to do. A modest projection for increased unit rental is 30% per year, and
since there is no laundromat or car wash within 50 miles the sky's the limit since there is no
competition.
The restaurant has increased in sales weekly as the only competition is a Mexican food
restaurant in town and nothing else for 20 miles. This projection is without any significant
increase in advertising or exposure, but is based on the general average increase in tourism.
Our three major customer segments are tourists, hunters from all over the United States since
this area is known for great hunting of elk and deer, and loc al patrons who need the fac ilities
for various events. Subsc riptions to various Web services will provide international exposure to
potential customers for nominal annual fees, plus we have a website http//www.
lodgeatlowlandheights.com. The Roadhouse would like to see a 10% increase in c ustomers on a
yearly basis.
Financial Considerations
Golden Cholla Enterprises LLC dba the Lowland Heights Roadhouse will be ac quired via a Small
Business Administration (SBA) loan with the buyers supplying 20% down. We are assuming an
initial capital start-up, as shown in the Start-up table, for operating expenses which we have
already contributed.
We estimate average monthly fixed costs, including operating expenses and mortgage
payment, as presented in the Financial Plan chapter below. Peak and off-season will have
significant impac t on the monthly earnings. For the first year, on-season revenues will offset
off-season losses. As Lowland Heights Roadhouse builds its market position among the loc al
patrons, we anticipate that off-season revenues will be enough to break even during that
season.
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1.1 Objectives
The objective of the Lowland Heights Roadhouse for the first three years of operation include:
Open the Lowland Heights Roadhouse "turnkey operation" with existing bookings from
the previous owners, and new bookings under an uncreased rental rate after possession.
Exceeding the customer's expec tations for hunting and vac ationing ac commodations.
Maintaining a 90% oc cupancy rate eac h month.
Assembling an experience and effective staff.
To increase the number of clients by 10% eac h year.
Increase exposure and market using Internet technology and direct advertising.
Through incentives and increased exposure on the Internet, we hope to increase offseason oc cupancy by 30% the first year.
Increase off-season use by expanding into other uses for property (c ater parties,
receptions, weddings, etc.).
1.2 Keys to Success

The primary keys to success for the Lowland Heights Roadhouse will be based on the following
fac tors:
Provide a fac ility that is first class with attention to detail.

Give eac h guest a sense that he or she is our top priority.
Provide quality meals.
Retain our guests to ensure repeat bookings and referrals.
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1.3 Mission
The mission of Lowland Heights Roadhouse is to bec ome the best choice in Prickly Pear
County for temporary lodging by expanding our exposure via the Internet (with multiple networks
and links), and introducing the area to market segments that have not yet disc overed this yearround hunter's dream. We plan to be more than a great Roadhouse. We plan to create an
environment of conveniences that surpasses the standard fare for Dusty Corners.
The Roadhouse guests will have every need met to ensure his/her comfort. For special
oc casions, catered meals, chilled wine, etc. can be provided for an additional fee. During the
weekends, guests will return to the Roadhouse in the evening and find a fine restaurant to dine
at before turning in.
As the Lowland Heights Roadhouse bec omes established through the peak season, we plan to
expand our services to the residents of Dusty Corners and neighboring cities in time for the offseason. The large dining area can convert into a large area, ideal for formal or informal
gatherings (i.e. wedding receptions, family reunions, Christmas parties, etc.). The outdoors, with
its ac cess to the mountains, opens several additional opportunities. With the capability for a
catered reception inside, the Roadhouse will make events smooth and easy for the guests. As
owners we intend to see that attention to detail and service and good food will be followed by
a staff dedicated to eac h guest.
2.0 Company Summary

The Lowland Heights Roadhouse is loc ated in South Central Weststate at the northern end of
the Greenhorn Valley and is surrounded by the Ombligo de Dios mountain range on the east and
the Lost Pony Hills on the west. The Roadhouse is loc ated on a main thoroughfare Route 173,
loc ated approximately 52 miles north of Silver Gulch and 47 miles southwest of Friday Falls.
2.1 Company Ownership

Lowland Heights Roadhouse is a dba of Golden Cholla Enterprises LLC, a Weststate
Corporation owned and operated by Tory Britts and assisted by her husband Gisli Njerdginsyn.
2.2 Start-up Summary

Tory Britts (owner) and husband Gisli Njerdginsyn will invest heavily in the business. Golden
Cholla Enterprises LLC dba Lowland Heights Roadhouse will be ac quired via a Small Business
Administration (SBA) loan with Britts supplying a down payment on the property as part of
her investment.
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Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$63,175
$43,033
$106,208
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
$25,033
$18,000
$205,582
$223,582
Total Assets
$248,616
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$0
$232,000
$1,047
$744
$233,791
Capital
Planned Investment
Tory Britts
Investor
Additional Investment Requirement
$78,000
$0
$0
Total Planned Investment
$78,000
Loss at Start-up (Start-up Expenses)

Total Capital
($63,175)
$14,825
Total Capital and Liabilities
$248,616
Total Funding
$311,791
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Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Property Downpayment
Lodge Setup
Lease until closing of Property
Direct - TV
Insurance
$2,300
$75
$600
$58,000
$200
$1,300
$200
$500
Total Start-up Expenses
$63,175
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
$18,000
$0
$9,827
Long-term Assets
Total Assets
$15,206
$43,033
Total Requirements
$106,208
3.0 Services
Lowland Heights Roadhouse will offer customers eight 1-bedroom units and two 2-bedroom units.
Two units have a kitchenette and 2 units can be used together as a suite. Each unit is equipped
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with two double beds or a queen bed.
We have a full-service restaurant, a bar with a dance floor that provides live entertainment,
and eight RV sites with hook-ups. Next spring we will be putting in full-service coin-operated
laundry fac ilities (washing, drying, and optional folding) along with a four bay self-serve car
wash.
4.0 Market Analysis Summary

The Lowland Heights Roadhouse's target market strategy is based on bec oming a destination
choice for families and hunters in the greater Greenhorn Valley region who are looking for a plac e
to relax or hunt or recharge. The target markets that we are going to pursue are people looking
for a vac ation or hunting destination, and drop-in c ustomers. We envision many hunters from
all over the United States, as some do now, coming to stay and hunt in this great Greenhorn
Valley region. The setting and our fac ilities make the Lowland Heights Roadhouse a natural
destination choice for people. The Roadhouse would like to see a 10% increase in c ustomers
on a yearly basis.
4.1 Market Segmentation

Our target market strategy is based on bec oming a destination for people who are looking to
get away for a vac ation or an area to hunt in. Our marketing strategy is based on superior
performance in the following areas:
Quality fac ilities

Beautiful loc ation
Customer service
The target markets are separated into three segments; "Vacationers," "Hunters," and "Dropins." The primary marketing opportunity is selling to these ac cessible target market
segments by foc using on their vac ation and recreational needs.
Vacationers
During the spring and summer months, the Lowland Heights Roadhouse area is a beautiful
wilderness retreat with over 50 hiking trails nearby and other outdoor recreational ac tivities.
Hunters
The Lowland Heights Roadhouse loc ale is one of the best hunting areas in the U.S.
Drop-ins
When rooms are available we will welcome the drop-in c ustomer who is looking for a plac e to
stay for the night. Our sign can be seen from Route 173, a main thoroughfare, and we expec t
to get quite a few drop-ins.
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Table: Market Analysis
Market Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
Potential Customers
Hunters
Growth
15%
90,000
103,500
119,025
136,879
157,411
CAGR
15.00%
Drop-ins
Spring & Summer Visitors
Total
10%
15%
14.45%
20,000
60,000
170,000
22,000
69,000
194,500
24,200
79,350
222,575
26,620
91,253
254,752
29,282
104,941
291,634
10.00%
15.00%
14.45%
4.2 Service Business Analysis

The Lowland Heights Roadhouse is a 10 room fac ility, restaurant, bar and RV Park that has full
hook-ups that provides overnight lodging, and lunch, dinner and spirits in a country setting in the
Greenhorn Valley. There is only one other restaurant and motel in the area. Most people who
need lodging in the area make reservations in advance to assure room availability.
4.3 Competition and Buying Patterns

The Lowland Heights Roadhouse offers a unique country environment, which c aters to an ever
increasing group of travelers. Our Lodge creates a climate of home, where guests bec ome
temporary members of a larger family. The Roadhouse's homey feel opens itself to guests,
allowing them to participate and share in the richness of a community, while still allowing
whatever degree of privac y is preferred. Meals or drinks can be shared with the innkeeper and
other travelers allowing new relationships to be created and old ones enriched. Or, meals can
be taken in the privac y of the guest's room.
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A variety of settings are available in the Roadhouse, situated to enable individuals or small
groups to loc ate the perfect setting for whatever mood or ac tivity one is pursuing (eating,
drinking, watching television, playing pool, etc.). At the Roadhouse, a guest is a guest in one's
home, not a customer. It bec omes a plac e to return to: at the end of a day, or during the
next vac ation (like going home).
5.0 Strategy and Implementation Summary

The primary sales and marketing strategy for the Lowland Heights Roadhouse includes these
fac tors:
To offer a motel, restaurant and RV Park fac ility that will appeal to the vac ationer or
hunter.
To provide unmatched customer service to our guests.
To concentrate our marketing in the greater Greenhorn Valley area.
5.1 Competitive Edge

The Lowland Heights Roadhouse sets itself apart from similar competition in the following ways.
Location: Having a motel, restaurant, bar, and RV Park all at one fac ility is a huge plus,
bec ause guests never have to leave.
Our rooms: Each room is individually dec orated with a country setting that is
tasteful and comfortable. You feel as if you have stepped bac k in time.
Customer service: Customer service is our number one priority. The Lowland Heights
Roadhouse will treat eac h guest as if they are family.
Another significant advantage for the Lowland Heights Roadhouse is its loc ation. Being loc ated in
the Greenhorn Valley area, the Roadhouse is uniquely positioned, centrally loc ated to hunting
areas, a national park, and historical plac es.
5.2 Marketing Strategy

Our marketing strategy is based on bec oming a destination for vac ationers and hunters who are
looking for truly beautiful and unique lodgings. With the greater Greenhorn Valley area our main
target market the Lowland Heights Roadhouse will use several different approaches to
advertise our fac ility. We will use the Yellow Pages to advertise, as well as develop a Web
page that will show our Lodge with our motel, restaurant, bar and RV Park. On Route 173 we
will have an eye catching sign that will alert potential drop-ins of our existence. The Roadhouse
is confident that it will not take long, with word-of-mouth recommendations from past
customers, to build up to full capacity.
With the right exposure, we believe that an un-tapped market of vac ationers and hunters can be
enticed to Greenhorn Valley and the Lowland Heights Roadhouse. Membership in WorldRes.com
(an international Web catalog for lodging) will put us in front of millions of computer screens on a
daily basis.
The WorldRes partner network allows real-time reservations on today's most popular websites,
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including AOL, Yahoo!, and Lyc os. In addition, WorldRes has developed exclusive relationships
with destination and special ac tivity websites and call centers. WorldRes provides a free
connection to the SABRE travel agent system, providing ac cess to over 100,000 agents
worldwide, as well as to users of Traveloc ity, one of the most popular online travel sites.
All of this visibility is free, with the exception of a five to ten percent transaction fee for any
booking made directly via the service and online; much less expensive, yet more comprehensive
than traditional advertising. However, not all lodging patrons are computer savvy. Therefore,
we will be plac ing seasonal spec ific advertisements in regional newspapers and major city
magazines.
5.3 Sales Strategy

The Lowland Heights Roadhouse will rent its rooms directly to repeat customers, as well as via
traditional travel agents and through the Internet. All reservations will be handled by Tory or
Gisli. Repeat customers will have the privilege of priority reservations during the high season.
As mentioned above, we will also list the Lowland Heights Roadhouse on www.worldres.com,
which will make it available to millions of international tourists.
5.3.1 Sales Forecast

The sales forecast table is broken down into two main revenue streams: Reservations and Dropins. The sales forecast for the upcoming year is based on a 10% growth rate for direct sales.
The Lowland Heights Roadhouse has 10 rooms to offer its guests at a rate of $44 - $89 per
night. We expec t the number of rooms oc cupied to increase as the year progresses. In spite of
the economic unpredictability we are experiencing, these projections appear attainable and
take the increasing base into consideration. Growth rates for the years 2005 and 2006 are based
on percentage increases as follows:
Reservations: 10% growth rate per year.

Drop-ins: 10% growth rate per year.
Table: Sales Forecast

Sales Forecast
Year 1
Year 2
Year 3
Sales
Rooms
$58,838
$560,000
$600,000
Food
RV Park
Bar
$36,556
$10,147
$45,854
$140,000
$145,000
$70,000
$180,000
$160,000
$82,000
$151,394
$915,000
$1,022,000
Year 1
$300
$6,865
$180
$3,926
$11,271
Year 2
$500
$28,000
$250
$6,100
$34,850
Year 3
$600
$36,000
$350
$7,200
$44,150
Total Sales
Direct Cost of Sales
Rooms
Food
RV Park
Bar
Subtotal Direct Cost of Sales
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6.0 Web Plan Summary

The Lowland Heights Roadhouse website will foc us on the features the Roadhouse has to offer.
Each room with its different options will be on the site as well as pictures of the Roadhouse
and the fac ilities that it has to offer. The lunch/dinner menu will be displayed. Room rates will
be given, with maps on how to get to here. Attrac tions within 30 miles will be on the site and
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other loc al color will be shown. Reservations can be made online if the consumer wishes to do
so.
6.1 Website Marketing Strategy

Our website marketing strategy will foc us on Vacationers & Hunters who are looking for a
vac ation or hunting destination that is both c lose and comfortabley homelike. The Weststate
area will be our main foc al point. The Lowland Heights Roadhouse will promote through our
website by using:
Detailed photos of the Roadhouse and surrounding area.

Price list of our rooms and our restaurant menu.
6.2 Development Requirements

Gisli Njerdginsyn, along with Website Pros, Inc. will develop the website. The site itself is up now
and it will be an ongoing effort to add new information to the site as we see nec essary. Gisli
has 25 years in c omputers and management and has experience working with websites. Every
aspec t of the site will be handled by Tory (owner) and Gisli including company logo, Web page
format, and maintenance of the site. Website Pros will host the site.
7.0 Management Summary

The Lowland Heights Roadhouse will operate as an owner-oc cupied business. A small staff will be
hired early next year consisting of a cook and maid along with a maintenance man. The rest of
the tasks will be done by Tory and Gisli.
Gisli right now is responsible for the outside maintenance of the grounds and cleaning of the
motel rooms, and website ac tivities.
Tory will be the general manger, organize and dec ide on any management idea's on the day-today operations on the inside. She will order product and food from the vendors, and both will
handle reservations. Both Tory and Gisli will promote the Lowland Heights Roadhouse through the
advertising methods disc ussed in the marketing strategy section. Tory will also do the cooking
and bartendering.
7.1 Personnel Plan

The personnel needed for the Lowland Heights Roadhouse are the following:
Manager
Assistant manager
Cook - to be hired in 2005
Maintenance person - to be hired in 2005
Cleaning person - to be hired in 2005
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The Britts/Njerdginsyn family has outside income of $4,500 per month and will not be taking a
salary for the first year of the business.
Table: Personnel
Personnel Plan
Manager
Assistant Manager
Cook
Maintenance Staff
Cleaning Staff
Total People
Year 1
$0
$0
$1,200
$0
$1,200
5
Year 2
$45,000
$39,000
$39,000
$52,000
$76,000
10
Year 3
$48,000
$42,000
$42,000
$55,000
$79,000
10
Total Payroll
$2,400
$251,000
$266,000
7.2 Management Information Systems

Tory Britts will be maintaining financial and ac counting controls in its motel, restaurant and RV
Park through the use of a sophisticated point-of-sale Royal cash register system and personal
computer network using a computerized reservation system that is ac cessible for booking
rooms on the Internet. The Royal and the personal computer network provides the Roadhouse
management with daily and weekly information regarding sales, cash receipts, inventory, food
and beverage costs, and other controllable operating expenses. We use Quickbooks for
trac king and doing all our financial reports that are required to operate a business.
7.3 Key Management

Tory Britts is President and principal owner of Golden Cholla Enterprises LLC which owns and
operates Lowland Heights Roadhouse. I am currently leasing the business starting on July 6,
2004 until financing is completed, we have shown a profit. There is no historical data from the
previous owners to compare it to. They will not release their tax returns during their ownership
of the business, however different vendors and customer's have stated that we are selling four
to five times the amount of alcohol that they did. Our restaurant has been increasing in sales
every week from word of mouth and advertising/promotions.
Prior to buying the Lowland Heights Roadhouse, I owned and operated an Internet business
(ZooperDooper Deals). I purchased truck loads of clearance or disc ontinued items and sold
them on Ebay. ZooperDooper Deals was started in August of 2000, operated until June 2004, and
was a very successful business. I have not continued with the business since we moved to
Weststate.
Prior to that in 1997-2004 I was on contrac t with Family Care Providers in Otherstate.
Position: Behavior Management Specialist and Therapeutic Provider
Duties:
Management of highest level of difficulty in juvenile clients

Sc heduling and heading up weekly case management meetings between c lients and
team members
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Determining and soliciting all special needs of clients involving spec ialists/psychiatric
care/medications/treatment programs/sc hool contac ts
Determining and implementing therapeutic interventions
Attending court sessions and therapist meetings
Maintaining daily and weekly records on clients medications/progress/appointments /
sc hool records/strength of bonds to family members/reac tions to medications and
therapies etc.
Also cared for medically fragile infants on oc casion: close monitoring and management
of medication, specialist appointments, breathing mac hines, breathing treatments etc.
1990-1997 Ten-Galloon Saloon

Position: Shift Manager
Duties:
Management of bartenders, coc ktail waitresses, kitchen help and janitorial service
Other duties included inventory, sales projections, promotions
Hiring, mentoring employees
Menu design, supply/vendor ordering, vendor contac ts
Locating and auditioning bands/entertainment, employee sc heduling
Ability to fill in for all positions when needed
Liaison to the coin c ompany and slot mac hine repair company, handled major payout/
jac kpots and ac companying IRS paperwork
Involved in payroll
Multitude of other duties needed in running a large bar, 25 slot mac hines, a bar kitchen,
entertainment, advertising and employees.
Training:
Certified in alcohol awareness

Attended and passed food handling and safety course in Lost Wages
Doc umented 80 hours per year in therapeutic management for the past 7 years
Certified in infant child and adult CPR and First Aid
Completed 2 online self directed small business courses to aid in my knowledge and
abilities.
College:
Attended 1-1/2 years at State College

One year at Pleasantville Community College prenursing, chemistry, economics,
ac counting, business, anatomy & physiology.
All this past experience provides me with experience in leadership for management, developing
operational and financial reports, implementing ac tion plans to ac hieve those goals, and providing
overall strategic direction to operate and manage and implement business goals for overall
strategic direction for the business.
I plan on incorporating my past experiences into the operation of the Lowland Heights
Roadhouse, bec oming a very successful business in the Greenhorn Valley.
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8.0 Financial Plan
The Lowland Heights Roadhouse expec ts business to grow steadily until we are at an average
of over 60% capacity for the year 2004 with a conservative capacity rate of 50% expec ted at
times. The year 2005 we expec t business to grow steadily until we are at an average of over
90% capacity. We will be growing slowly with profits growing at a rate of about 10%.
Expenses will be well managed, allowing Lowland Heights Roadhouse to make a profit even if
the capacity rate drops as low as 50%.
8.1 Break-even Analysis

We estimate average monthly fixed costs shown below. Peak and off-season will have significant
impac t on the monthly earnings. For the first year, on-season revenues will offset off-season
losses. As Lowland Heights Roadhouse builds its market position among the loc al patrons, we
anticipate that off-season revenues will be enough to break even during that season. Further,
a rate increase may be considered in Fisc al Year 2005.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even
$4,103
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
7%
$3,797
Page 15

8.2 Projected Profit and Loss
Below is the Lowland Heights Roadhouse projected income statement for the next three years.
As mentioned above, earnings are subject to seasonal fluctuations. The new owners will,
however, strengthen the Lowland Heights Roadhouse's market position among the loc al
communities who will patronize the establishment during the low season, and thus offset the
negative impac t of the season.
Page 16
Page 17
Table: Profit and Loss

Pro Forma Profit and Loss
Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Year 1
$151,394
$11,271
Year 2
$915,000
$34,850
Year 3
$1,022,000
$44,150
$0
$11,271
$0
$34,850
$0
$44,150
$140,123
92.56%
$880,150
96.19%
$977,850
95.68%
$2,400
$251,000
$266,000
Sales and Marketing and Other Expenses

Depreciation
Leased Equipment
Utilities
Insurance
Lease
$1,160
$14,280
$0
$3,725
$2,700
$7,300
$80,000
$14,280
$0
$26,000
$24,000
$0
$100,000
$14,280
$0
$26,000
$24,000
$0
Mortgage Payment
Other
$14,000
$0
$62,100
$0
$65,700
$0
Total Operating Expenses
$45,565
$457,380
$495,980
$94,558
$108,838
$22,850
$21,512
$422,770
$437,050
$20,500
$120,681
$481,870
$496,150
$17,500
$139,311
$50,195
33.16%
$281,589
30.77%
$325,059
31.81%
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Page 18

8.3 Projected Cash Flow
The Cash Flow projections are outlined below. Again, these projections are based on our basic
assumptions with revenue generation fac tors carrying the most significant weight regarding the
outcome. We are anticipating that we will not need to invest any additional capital into the
business with a healthy cash flow in plac e.
Table: Cash Flow

Pro Forma Cash Flow
Year 1
Year 2
Year 3
$151,394
$151,394
$915,000
$915,000
$1,022,000
$1,022,000
Additional Cash Received

Sales Tax, VAT, HST/GST Received
$0
$0
$0
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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$151,394
$915,000
$1,022,000
Year 1
Year 2
Year 3
Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
$2,400
$78,949
$81,349
$251,000
$357,192
$608,192
$266,000
$407,641
$673,641
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
$0
$0
$0
$12,000
$0
$0
$0
$0
$30,000
$18,000
$0
$0
$0
$30,000
$21,000
Purchase Long-term Assets

Dividends
Subtotal Cash Spent
$0
$0
$93,349
$20,000
$0
$676,192
$60,000
$0
$784,641
$58,044
$281,627
$238,808
$520,435
$237,359
$757,794
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Subtotal Cash Received

Expenditures
Net Cash Flow

Cash Balance
Page 19
Page 20

8.4 Projected Balance Sheet
The following is a projected Balance Sheet showing sufficient growth and a very ac ceptable
financial position.
Table: Balance Sheet

Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Current Assets
Cash
Inventory
Total Current Assets
$281,627
$1,199
$9,827
$292,653
$520,435
$13,733
$27,827
$561,994
$757,794
$7,128
$48,827
$813,749
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$15,206
$14,280
$926
$293,579
$35,206
$28,560
$6,646
$568,641
$95,206
$42,840
$52,366
$866,116
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
$7,815
$0
$744
$31,287
$0
$744
$33,703
$0
$744
Subtotal Current Liabilities
$8,559
$32,031
$34,447
$220,000
$228,559
$190,000
$222,031
$160,000
$194,447
Assets
Total Liabilities
Paid-in Capital
$78,000
$78,000
$78,000
Retained Earnings
Earnings
Total Capital
($63,175)
$50,195
$65,020
($12,980)
$281,589
$346,609
$268,609
$325,059
$671,668
Total Liabilities and Capital
$293,579
$568,641
$866,116
$65,020
$346,609
$671,668
Net Worth
Page 21

8.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 7011, Hotels and Motels, are shown for comparison.
Page 22

Table: Ratios
Ratio Analysis
Sales Growth
Percent of Total Assets
Inventory
Long-term Assets
Total Assets
Current Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Year 1
n.a.
Year 2
504.38%
Year 3
11.69%
Industry Profile
0.21%
0.41%
3.35%
99.68%
0.32%
100.00%
2.41%
4.89%
98.83%
1.17%
100.00%
0.82%
5.64%
93.95%
6.05%
100.00%
1.31%
28.59%
33.99%
66.01%
100.00%
2.92%
74.94%
77.85%
22.15%
5.63%
33.41%
39.05%
60.95%
3.98%
18.47%
22.45%
77.55%
10.26%
25.87%
36.13%
63.87%
100.00%
92.56%
100.00%
96.19%
100.00%
95.68%
100.00%
100.00%
83.02%
39.63%
62.46%
65.42%
8.74%
46.20%
63.87%
9.78%
47.15%
70.85%
1.66%
1.26%
34.19
17.55
23.62
1.68
34.05
77.85%
110.28%
24.43%
17.12
39.05%
116.06%
70.74%
23.42
22.45%
69.14%
53.62%
1.29
50.04%
0.88%
1.76%
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin

Return on Equity
33.16%
77.20%
30.77%
81.24%
31.81%
48.40%
n.a
n.a
7.85
10.97
27
0.52
4.67
12.17
19
1.61
4.23
12.17
29
1.18
n.a
n.a
n.a
n.a
3.52
0.04
0.64
0.14
0.29
0.18
n.a
n.a
$284,094
4.14
$529,963
20.62
$779,302
27.54
n.a
n.a
1.94
3%
34.05
2.33
0.00
0.62
6%
17.12
2.64
0.00
0.85
4%
23.42
1.52
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 23
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
0%
$2,042
$3,354
$4,682
$16,500
$8,250
$3,245
$2,565
$2,650
$2,650
$3,850
$4,200
$4,850
0%
0%
0%
$278
$163
$3,501
$838
$142
$2,849
$1,540
$492
$2,808
$5,350
$3,250
$6,250
$4,950
$2,250
$5,245
$2,850
$1,675
$3,450
$2,850
$850
$3,400
$2,850
$500
$3,400
$3,150
$300
$3,400
$3,250
$175
$3,400
$3,250
$100
$3,400
$5,400
$250
$4,750
Total Sales
$5,984
$7,183
$9,522
$31,350
$20,695
$11,220
$9,665
$9,400
$9,500
$10,675
$10,950
$15,250
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$25
$25
$25
$25
$25
$25
$25
$25
$25
$25
$25
$25
$75
$15
$1,250
$1,365
$65
$15
$150
$255
$125
$15
$175
$340
$1,050
$15
$476
$1,566
$900
$15
$375
$1,315
$625
$15
$200
$865
$625
$15
$200
$865
$625
$15
$200
$865
$675
$15
$200
$915
$675
$15
$200
$915
$675
$15
$200
$915
$750
$15
$300
$1,090
Sales
Rooms
Food
RV Park
Bar
Rooms
Food
RV Park
Bar
Subtotal Direct Cost of Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Manager
Assistant Manager
0%
0%
Month 1
$0
$0
Month 2
$0
$0
Month 3
$0
$0
Month 4
$0
$0
Month 5
$0
$0
Month 6
$0
$0
Month 7
$0
$0
Month 8
$0
$0
Month 9
$0
$0
Month 10
$0
$0
Month 11
$0
$0
Month 12
$0
$0
Cook
0%
$0
$0
$0
$0
$0
$0
$0
$0
$300
$300
$300
$300
Maintenance Staff
Cleaning Staff
0%
0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$300
$0
$300
$0
$300
$0
$300
Total People
50
Total Payroll
$0
$0
$0
$0
$0
$0
$0
$0
$600
$600
$600
$600
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Month 1
$5,984
$1,365
Sales
Other Production Expenses
Month 2
$7,183
$255
Month 3
$9,522
$340
Month 4
$31,350
$1,566
Month 5
$20,695
$1,315
Month 6
$11,220
$865
Month 7
$9,665
$865
Month 8
$9,400
$865
Month 9
$9,500
$915
Month 10
$10,675
$915
Month 11
$10,950
$915
Month 12
$15,250
$1,090
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,365
$255
$340
$1,566
$1,315
$865
$865
$865
$915
$915
$915
$1,090
$4,619
77.19%
$6,928
96.45%
$9,182
96.43%
$29,784
95.00%
$19,380
93.65%
$10,355
92.29%
$8,800
91.05%
$8,535
90.80%
$8,585
90.37%
$9,760
91.43%
$10,035
91.64%
$14,160
92.85%
Payroll
$0
$0
$0
$0
$0
$0
$0
$0
$600
$600
$600
$600
Sales and Marketing and Other

Expenses
Depreciation
Leased Equipment
$0
$0
$0
$210
$85
$100
$100
$100
$125
$145
$145
$150
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
$1,190
$0
Utilities
Insurance
Lease
$187
$225
$1,300
$168
$225
$1,500
$410
$225
$1,500
$260
$225
$1,500
$250
$225
$1,500
$350
$225
$0
$350
$225
$0
$350
$225
$0
$350
$225
$0
$350
$225
$0
$350
$225
$0
$350
$225
$0
$0
$0
$0
$0
$0
$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
Total Operating Expenses
$2,902
$3,083
$3,325
$3,385
$3,250
$3,865
$3,865
$3,865
$4,490
$4,510
$4,510
$4,515
$1,717
$3,845
$5,857
$26,399
$16,130
$6,490
$4,935
$4,670
$4,095
$5,250
$5,525
$9,645
EBITDA
Interest Expense
$2,907
$1,933
$5,035
$1,933
$7,047
$1,933
$27,589
$1,933
$17,320
$1,933
$7,680
$1,933
$6,125
$1,917
$5,860
$1,900
$5,285
$1,883
$6,440
$1,867
$6,715
$1,850
$10,835
$1,833
($65)
$574
$1,177
$7,340
$4,259
$1,367
$905
$831
$664
$1,015
$1,103
$2,344
($152)
-2.53%
$1,338
18.63%
$2,746
28.84%
$17,126
54.63%
$9,938
48.02%
$3,190
28.43%
$2,113
21.86%
$1,939
20.63%
$1,548
16.30%
$2,368
22.19%
$2,573
23.49%
$5,468
35.86%
Total Cost of Sales

Gross Margin
Gross Margin %
Expenses
Mortgage Payment
Other
Taxes Incurred
Net Profit
Net Profit/Sales
15%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$5,984
$5,984
$7,183
$7,183
$9,522
$9,522
$31,350
$31,350
$20,695
$20,695
$11,220
$11,220
$9,665
$9,665
$9,400
$9,400
$9,500
$9,500
$10,675
$10,675
$10,950
$10,950
$15,250
$15,250
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Current Borrowing

New Other Liabilities (interest-free)
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Other Current Assets

Sales of Long-term Assets
New Investment Received
$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
Subtotal Cash Received
$5,984
$7,183
$9,522
$31,350
$20,695
$11,220
$9,665
$9,400
$9,500
$10,675
$10,950
$15,250
Expenditures
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Expenditures from Operations

Cash Spending
$0
$0
$0
$0
$0
$0
$0
$0
$600
$600
$600
$600
Bill Payments
Subtotal Spent on Operations
$1,262
$1,262
$6,379
$6,379
$4,428
$4,428
$5,532
$5,532
$13,698
$13,698
$9,214
$9,214
$6,959
$6,959
$6,494
$6,494
$6,401
$7,001
$6,225
$6,825
$5,637
$6,237
$6,720
$7,320
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Liabilities Principal Repayment

Purchase Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$0
$2,000
$0
$2,000
$0
$2,000
$0
$2,000
$0
$2,000
$0
Purchase Long-term Assets
$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
$1,262
$6,379
$4,428
$5,532
$13,698
$9,214
$8,959
$8,494
$9,001
$8,825
$8,237
$9,320
Subtotal Cash Spent

Net Cash Flow
$4,722
$805
$5,093
$25,818
$6,997
$2,006
$706
$906
$499
$1,850
$2,713
$5,930
Cash Balance
$228,304
$229,109
$234,203
$260,020
$267,017
$269,023
$269,729
$270,635
$271,134
$272,984
$275,696
$281,627
Page 4
Appendix
Table: Balance Sheet
Pro Forma 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
Starting Balances
Current Assets
Cash
Inventory
$223,582
$0
$228,304
$1,502
$229,109
$1,247
$234,203
$907
$260,020
$1,723
$267,017
$1,447
$269,023
$1,582
$269,729
$1,717
$270,635
$1,852
$271,134
$1,937
$272,984
$1,022
$275,696
$1,107
$281,627
$1,199

$9,827
$233,409
$9,827
$239,633
$9,827
$240,183
$9,827
$244,936
$9,827
$271,570
$9,827
$278,291
$9,827
$280,432
$9,827
$281,272
$9,827
$282,313
$9,827
$282,897
$9,827
$283,832
$9,827
$286,630
$9,827
$292,653
$15,206
$15,206
$15,206
$15,206
$15,206
$15,206
$15,206
$15,206
$15,206
$15,206
$15,206
$15,206
$15,206
$0
$1,190
$2,380
$3,570
$4,760
$5,950
$7,140
$8,330
$9,520
$10,710
$11,900
$13,090
$14,280
$15,206
$248,616
$14,016
$253,649
$12,826
$253,009
$11,636
$256,572
$10,446
$282,016
$9,256
$287,547
$8,066
$288,498
$6,876
$288,149
$5,686
$288,000
$4,496
$287,394
$3,306
$287,139
$2,116
$288,746
$926
$293,579
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$1,047
$6,232
$4,253
$5,070
$13,388
$8,982
$6,743
$6,281
$6,192
$6,039
$5,415
$6,450
$7,815
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$0
$744
$1,791
$6,976
$4,997
$5,814
$14,132
$9,725
$7,487
$7,024
$6,936
$6,782
$6,159
$7,194
$8,559
$232,000
$232,000
$232,000
$232,000
$232,000
$232,000
$232,000
$230,000
$228,000
$226,000
$224,000
$222,000
$220,000
Total Liabilities
$233,791
$238,976
$236,997
$237,814
$246,132
$241,725
$239,487
$237,024
$234,936
$232,782
$230,159
$229,194
$228,559
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$78,000
$78,000
$78,000
$78,000
$78,000
$78,000
$78,000
$78,000
$78,000
$78,000
$78,000
$78,000
$78,000
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
($63,175)
$0
$14,825
($152)
$14,673
$1,187
$16,012
$3,933
$18,758
$21,059
$35,884
$30,997
$45,822
$34,186
$49,011
$36,299
$51,124
$38,238
$53,063
$39,786
$54,611
$42,155
$56,980
$44,727
$59,552
$50,195
$65,020
$248,616
$253,649
$253,009
$256,572
$282,016
$287,547
$288,498
$288,149
$288,000
$287,394
$287,139
$288,746
$293,579
$14,825
$14,673
$16,012
$18,758
$35,884
$45,822
$49,011
$51,124
$53,063
$54,611
$56,980
$59,552
$65,020
Page 5

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