January 2001

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Table of Contents
1.0

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0

Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.1
Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2
Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3.0

Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

4.0

Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.1
Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2
Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3
Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.1 Business Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.2 Main Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5
5
7
7
8
9

5.0

Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.1
Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2
Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2.2 Daily Revenue Forcast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10
11
12
12
13

6.0

Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.1
Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2
Management Team Gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.3
Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14
14
15
16

7.0

Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.1
Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.2
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.3
Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.4
Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.5
Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.6
Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17
17
18
19
20
22
22

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24

Nightclub Sample Plan

1.0 Executive Summary
This Nightclub will be the premier, high-energy, themed dance and nightclub in Southern, Your
State. Our goal is to remain a step ahead of our competition through an exemplary service
provision. We expect our guests to have more fun during their leisure time. We will provide
more video and electronic technology per square footage than anyone else in the region. A
simple, yet unique, themed menu and atmosphere will create a sense of 'belonging' for locals
and tourists alike. Our operating credo is: "happy enthusiastic employees create happy
enthusiastic guests."
The main objectives of the development of this new venue are:
Capitalize on excellent location opportunity with swift commitment to the new Town
Square development.
To launch the venue with a highly publicized grand opening event in the summer of
2001.
To maintain tight control of costs, operations, and cash flow through diligent
management and automated computer control.
To maintain a food cost below 33% of food revenue.
To maintain a total beverage cost below 25% of beverage revenue.
To exceed $3 million in annual sales by the third year of plan implementation.
The keys to success in achieving our goals are:

Provide exceptional service that leaves an impression.

Consistent entertainment atmosphere and product quality.
Managing our internal finances and cash flow to enable upward capital growth.
Strict control of all costs, at all times, without exception.

Highlights

$3,000,000
$2,500,000
$2,000,000

Sales
$1,500,000

Gross Margin
Net Profit

$1,000,000
$500,000
$0
2001

2002

2003

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Nightclub Sample Plan

2.0 Company Summary
The key elements of the Nightclub's concept are as follows:
1.
2.

3.
4.
5.

6.

Entertainment and dance based themes -- The company will focus on themes that have
mass appeal.
Distinctive design features -- The Nightclub will be characterized by the elaborate
dance club situated in a spectator setting which comfortably accommodates 350
guests. The area will also offer three private sky boxes which can be combined for use
in a conference or private party setting. This room is intended for special events and
daily use. The adjoining dining room and bar would present an inviting and relaxing
atmosphere, which displays a collection of musical and dance memorabilia. A live dj will
coordinate the events and entertain the patrons with music and games during music
breaks and off-times.
Location, location, location -- One of the major advantages that the Nightclub will have
over its competition will be its location in the new, high-profile Your Town Center.
Gaming -- The Nightclub will provide several interactive style video games and pool
tables to provide for both additional entertainment and revenue.
Quality food -- All would be lost without special attention being paid to the level of food
quality. A simple menu offering foods similar to those found at a premier venue.
Traditional 'bar' appetizers will be on hand for people craving nachos, wings, or
quesadillas while they drink and enjoy themselves.
Exceptional service -- In order to reach and maintain a unique image of quality, the
Nightclub will provide attentive and friendly service through a high ratio of service
personnel to customers, and will also invest in the training and supervision of its
employees. We estimate nearly one service staff member for every 35 guests.

2.1 Company Ownership

The Nightclub is a privately-held LLC, the details of which have not been solidified as of the
date of this publication. The LLC consists of three principals DD, HK, BK.
D D holds a BS in business administration from the The State University. He has held
restaurant management positions for the PepsiCo Corporation. He successfully opened and
managed two nightclubs, and went on to open other operations including a sports bar. He is
currently in his fifth year in the hotel industry, where he manages a successful sales
department.
HK holds a BA in Industrial Media Management, with a concentration in marketing. She has
held a financial analyst position with Lockheed Martin and L3 Communications for two years.
BK has been managing a staff for eight years. He is currently in his fifth year in the automotive
industry, where he is a successful finance manager.

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Nightclub Sample Plan

2.2 Start-up Summary
The company is seeking a loan for start-up purposes for a new entertainment venue in Your
City.
Funds needed to accomplish goal referenced above will be $x.x million. The applicant will
require the entire $x.x million to finish project build-out.
We will utilize the anticipated loans in the amount of $x.x million to build out the approximate
10,000 square foot space and purchase equipment necessary for the start-up of a new
nightclub venue. The following tables and charts illustrate the capital requirements.

Start-up

$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Expenses

Assets

Investment

Loans

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Nightclub Sample Plan

Table: Start-up
Start-up
Requirements
Start-up Expenses
Air Cond. Upgrade
Audio/Lighting Lease Payment
Bar Equipment
Bar Supply
Cash Reserves
Exterior Signage
Fees and Permits
FFE
Impact Fees
Initial Marketing
Interior Refit
Kitchen Upgrade
Legal
Opening Salaries Deposits
Paper Products
Point of Sales Systems
Restroom Upgrade
Total Start-up Expenses

$25,000
$2,750
$9,500
$5,500
$125,000
$15,000
$35,000
$75,000
$7,500
$22,500
$45,000
$12,500
$7,500
$25,000
$2,500
$35,000
$35,000
$485,250

Start-up Assets Needed

Cash Balance on Starting Date
Start-up Inventory
Other Current Assets
Total Current Assets

$75,000
$7,500
$0
$82,500

Long-term Assets
Total Assets
Total Requirements

$0
$82,500
$567,750

Funding
Investment
Investor 1
Investor 2
Other
Total Investment

$250,000
$250,000
$67,750
$567,750

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Current Liabilities

$0
$0
$0
$0

Long-term Liabilities
Total Liabilities

$0
$0

Loss at Start-up
Total Capital
Total Capital and Liabilities

($485,250)
$82,500
$82,500

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Nightclub Sample Plan

3.0 Services
The emergence of the Main Street area of Your City represents a unique opportunity for a highenergy, dance-themed venue. The development's central location, demographics, and lack of
direct competition are major advantages to this project. The proposed venue will provide a
local solution to the lack of social atmosphere and live sports venues geared primarily toward
the 21-35 age group in the Your City area and will help keep late night entertainment
expenditures within the localized region.
The new venue will specialize in high-energy themes, a quality video and gaming area, and will
offer beer, wine and an array of liquors and mixed drinks. In addition, the venue will sell nonalcoholic beverages such as soft drinks, juices and bottled water. A "casual" food menu
consisting mostly of appetizers and small entrees ranging in cost from six to nine dollars will
also be available. The initial hours of operation will be 11:00 P.M. to 2:00 A.M., four nights a
week. The establishment will draw primarily from the Your City market while attracting guests
from the area's other surrounding cities and towns.

4.0 Market Analysis Summary

The concept and management of the Nightclub has been well received, and has been offered
key placement at the center of Your City's new First & Main Town Center development. This
commercial center spans 138 acres and promises an immediate primary trade population of
332,000 people with a secondary population of 164,000 people. The Boulevard at the Avenue
average daily traffic counts are currently 53,000, and will increase to 72,000 by 2003 following
the Boulevard's connection northward to I-25 in 2001. At the center of the complex will be a
16-screen Cinemark and IMAX theater opening March, 2000. The Center's planners having
met the Nightclub's management and have reviewed the concept. They have indicated that the
Nightclub is "exactly" what they were looking for and wish to place it directly in front of the
theater. The annual projected traffic for what Cinemark is calling their 'flagship' location is 1.4
million people, which exceeds their current Tinseltown location at the arena.
The Nightclub will be a 10,000 square foot unit, which will also house the company's corporate
business office. The dance club and bar will accommodate 750 people. With Your City's rapidly
growing population, the variety of the Nightclub from across the country would create mass
appeal for all of the Nightclub's customers. The store will be equipped with state-of-the-art
audio and video systems like none other found in Your City. It will serve the need for a true
nightclub in Your City. The general appearance will be clean, open, and pleasing to the
customer. The demographics are favorable, with minimal competition from other dancethemed venues and bars.

4.1 Market Segmentation

We see the Nightclub as appealing to three major market segments. Fortunately, the long, late
night hours of operation help the Nightclub lend itself to multiple segment appeal. Our market
segmentation scheme allows some room for estimates and nonspecific definitions.
1.

Childless Young Professionals--Due to our proximity to the IMAX and Cinemark

theaters, we must appeal to single adults and young couples. Whether it is a group of
friends or a couple out to see a movie together, these people need a place to eat/drink
either before and/or after their movie. These customers will range in age from 27 to
40. The Nightclub will appeal to this category by switching the tempo and
entertainment to be more appealing to adults as it gets later into the evening. We also
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Nightclub Sample Plan

anticipate a 15% annual growth rate in tandem with the growth rate of Your City and
through increased popularity.
2.

College Students--By creating an environment that is appealing to college students,

we secure a natural progression between the high school student and the young
professional. Through word of mouth, the Nightclub expects realize an increase of five
percent annually from this segment.

3.

Tourists and Business Travelers--More and more business and travelers and
tourists are finding themselves in Your City every year as is made evident by the
increased demand and subsequent expansion of the local airport. We plan to reach
these people through direct marketing to local hotel patrons. We anticipate a 20%
annual growth rate in this segment. As our relationships grow with the local hotels, so
too will the word of mouth recommendations from the hotel staff as well as the
patronizing of our restaurant by their families. Our future plan is to publish a simple
website in order to create awareness to any traveler who wants to take an advanced
look at the club before their visit.

The following chart and table outline the target market segments for the Nightclub, and
include annual growth projections.
Table: Market Analysis
Market Analysis
Potential Customers
Childless Young
Professionals
College Students
Tourists/Business Travelers
Total

Growth

2001

2002

2003

2004

2005

CAGR

15%

132,000

151,800

174,570

200,756

230,869

15.00%

5%
20%
13.95%

100,000
100,000
332,000

105,000
120,000
376,800

110,250
144,000
428,820

115,763
172,800
489,319

121,551
207,360
559,780

5.00%
20.00%
13.95%

Market Analysis (Pie)

Childless Young Professionals

College Students
Tourists/Business Travelers

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Nightclub Sample Plan

4.2 Target Market Segment Strategy
Our strategy is based on serving our niche markets exceptionally well. The nightclub
enthusiast, the tourist and business traveler, the local nightclub crowd, the local service
industry as well as groups going out together, can all enjoy the Nightclub experience.
The marketing strategy is essential to the main strategy:
Emphasize exceptional service.
Create awareness of the Nightclub's unique features.
Focus on our target markets.
We must charge appropriately for the high-end, high-quality service and food that we offer.
Our revenue structure has to match our cost structure, so the wages we pay and the training
we provide to assure superior quality and service must be balanced by the fees we charge.
Part of the superior experience we offer is the simplicity o the menu items. While being unique,
they are relatively inexpensive and easy to prepare. While a premium is appropriate for the
experience, the pricing has to be balanced in accordance with what we are serving.
All menu items will be moderately priced. We expect an average guest expenditure of $12.50
for beverages and $7.50 for the percentage of our guests who choose to take advantage of
our food menu. Our target customer spends more than the industry average for moderately
priced establishments. This is due to our creating an atmosphere that encourages longer stays
and more spending, while still allowing adequate table turns due to extended hours of appeal.

4.3 Service Business Analysis

High energy and dance themed venues have significantly impacted cities from coast to coast in
the nineties. Los Angeles' Hollywood, New York's Times Square, and Seattle's Pioneer Square
are just a few examples. Entrancing their audiences with high-powered lights, sound, music,
and interactive entertainment, these venues are still one of the highest cash flow businesses in
the world. Our localized studies have shown that the average person will spend three to four
hours per weekend in this type of an environment and will spend an average of twenty to fifty
dollars in that time frame. As we approach the new millennium, this trend shows no signs of
declining.
The typical venue of our style is open from 8:00 P.M. to 2:00 A.M., and within this time frame,
the venue can achieve gross revenues anywhere from $3,500 to $25,000, nightly. The primary
sources of revenue in a venue of this type are high volume traffic, coupled with comparably
nominal spending. In addition to alcohol revenues, we will also generate substantial revenues
from food sales that can typically range from seven to ten dollars per person, and admission
fees that range between five and ten dollars per admit.
Entertainment venues in the late 1980's and 1990's focused on high-energy light and sound,
multiple source video screens, and participative events. This relatively simple concept is still
quite popular today. However, these concepts have greatly evolved with society. In recent
years this industry has become more sophisticated with the availability of new technology.
Larger metropolitan areas have taken this technology to new heights with sound, lighting,
video and interactive designs that create an exciting and memorable experience. Fortunately,
no one in Your State area has been a pioneer in this specific segment of the industry as of the
date of this report.
Additionally, the nightclub and bar industry is shifting towards a more entertainment-oriented
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Nightclub Sample Plan

concept. Guests of these venues are not only offered a dynamic place to gather and mingle,
but also a place to participate in the entertainment through interactive contests, theme nights,
and other events. We intend to heavily utilize entertainment-oriented marketing in an effort to
withstand the perpetual shift in trends and cater to as large a client base as possible.
Nightclubs and other drinking establishments rely heavily on their primary suppliers. The
primary suppliers are the various beverage distributors that provide the establishment with
both alcoholic and non-alcoholic beverages. The alcoholic beverages (beer, wine, and liquor)
are the primary sources of income in this industry. Other beverage suppliers also play a crucial
role by providing non-alcoholic beverages. These are either served alone or mixed with
alcohol.
In the area, all major brands of alcoholic beverages are available, in addition to several
regional brands of beer. Initial research shows that the major distributors in the market have a
high rating in both product availability and delivery.

4.3.1 Business Participants

The Nightclub will be part of the restaurant and bar industry, which includes several kinds of
businesses:
Locally Operated Bars and Nightclubs - This genre usually appeals to the local
neighborhood clientele. This same client base dictates that the average price structure
be drastically scaled down in order to create "regulars."
Nightclub Entertainment Complexes - This type of complex represents the concept
we will most closely compete with. They are typically placed in high traffic locations and
are normally treated as destination entertainment. An admission charge is usually in
place and the associated price structure is also most like our proposed structure.
Thankfully there is not an abundance if this type of entertainment within our region.
Conventional Dining - Primarily owned by large national chains, usually less than
10,000 square feet, focused on serving good quality food in a reasonable amount of
time in a dining room setting. The service and food quality are superior to that of a fast
food establishment. People go there to eat and leave when they're done eating since
there's rarely a reason to stay.
Formal Dining - Similar to conventional dining yet offering a higher quality of food
and service for the added expense. As with the conventional dining facilities, there is
little interaction and when people are done eating, they leave.
Casual Dining - Commonly building upon conventional dining with the addition of a
bar, playing of music and sporting events on numerous televisions. Some
establishments offer their own brand of beer made on the premises. The food quality
and service are at best, similar to that found in a conventional dining experience.
Chain Entertainment - Typically manifested in each market through the Hard Rock
Cafes, The Planet Hollywoods, etc. We expect to create an atmosphere that thrives on
its trendy feel. These chain entertainment venues can not hope to draw the same "hip"
clientele.

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Nightclub Sample Plan

4.3.2 Main Competitors
The Nightclub competition lies mainly with other casual facilities and less with conventional and
chain entertainment establishments. We need to effectively compete with the widely held idea
that you can't get good service anymore, while maintaining the idea that being out can be a lot
of fun. Our polling has indicated that consumers think of atmosphere, price, and quality
respectively. Additionally, price was frequently mentioned by pointing out that if the former
concerns are present then they are willing to pay more for the experience.
Our review of the market concludes that there are four entertainment venues that can be
considered direct competition to the proposed new venue. We do realize that the proposed
venue will also compete indirectly for every entertainment dollar spent in the Anytown area.
The main competitors of the Nightclub will be:
Club A
Hours of Operation: 5:00 P.M.-2:00 A.M.
Wednesday through Saturday
Capacity: 300
Wednesday College Night ($1 beers)
-This nightclub appeals to a college crowd seeking cheap drinks.
-The club is known for being dingy and dirty.
Bar B
Hours of Operation: 10:00 A.M.- 2:00 A.M.
Monday through Sunday
Capacity: 400
Thursday College/Ladies Nights
-This club appeals to 25-35 year olds.
-Pool and video games are central focus.
-Dancing is pushed to the back of the club.
Grill C
Hours of Operation: 6:00 P.M.-2:00 A.M.
Wednesday through Saturday
Capacity: 250
-This club's target customer is 25 to 45 years old / middle class or above.
-This club is known for its older, dressed up crowd and cramped space.
Club D
Hours of Operation: 11:00 A.M.-2:00 A.M.
Monday through Sunday
Capacity: 350
-This club's target customer is 25 to 45 years old.
-This club is known for live jazz and blues entertainment and their draught beers.

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Nightclub Sample Plan

5.0 Strategy and Implementation Summary
In order to place emphasis on exceptional service, our main tactics are bi-monthly service
training, employee recognition, and higher service employee to customer ratios. Our specific
programs for training include employee for life training for management, customer for life
training for employees, and the sharing of success stories among employees and
management. Our specific employee recognition programs include employee of the month with
a personal parking space, service excellence recognition awards of specific employees attached
to advertising. To achieve higher service employee to customer ratios, we include separate
beverage servers and bussing personnel, as well as maintaining a comfortable table count for
the wait staff.
Our second strategy is emphasizing entertainment. The tactics are interactive entertainment,
constant sensory appeal, and unique event viewing. Our specific programs for interactive
entertainment and constant sensory appeal are frequent contests, games, music, and karaoke
all hosted by an in-house dj who is also in charge of event programming for the main room
and lounge. A billiard room will overlook the main area. Billiards was selected due to its
widespread popularity (fifth most popular sport in the world, according to CNN). A limited
number of video and pinball games, as well as computer dart boards, will compliment the
billiard tables in order to offer a less interactive entertainment option. With an adjoining bar
and plenty of seating, yet another unique experience could be carved out of a visit to the
Nightclub.
Our promise fulfillment strategy may be our most important. The necessary tactics are
ongoing value-based training, maintenance, and attention to detail, especially after popularity
has been established. Through empowerment of service employees to solve problems without
making a customer wait for management consultation we create a win-win situation for the
customer and the restaurant. Continuous and never-ending improvement is the order of the
day through our regular training sessions and meetings. Since value is equal to service
rendered minus the price charged, it is crucial to go beyond the mere serving of food in a room
full of lights and sound, you have to create a long-lasting impression.
Emphasize exceptional service -- We MUST prove to guests that exceptional service is
still available and should be expected as part of a dining experience. We need to
differentiate ourselves from the mediocre service venues.
Emphasize an entertaining experience -- By assuring that all guests will enjoy
themselves, we would be securing market share through repeat business.
Focus on target markets -- Our marketing and themes of mass appeal and music based
entertainment will attract our target market segments.
Differentiate and fulfill the above promises.
We can't just market and sell another dance club, we must actually deliver on our promise of
quality, service and a unique guest experience. We need to make sure we have the fun and
service intensive staff that we claim to have.

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Nightclub Sample Plan

5.1 Marketing Strategy
A high growth area, such as Your City, has an annual influx of new residents from many other
parts of the country. This trend is true of Your State in general.
Many new residents, as well as many existing ones, are members of clubs in other markets.
The Nightclub is a place for all. The enabling technology will be an inherent part of the
Nightclub's image.
Advertising budgets and event promotion are ongoing processes of management geared to
promote the brand name and keep the Nightclub at the forefront of the dance theme
establishments in Your City's marketing area.
We depend on radio advertising as our main way to reach new customers. Our strategies and
practices will remain constant, as will the way we promote ourselves:
Advertising -- We'll be developing a core positioning message.
Grand Opening -- We will concentrate a substantial portion of our early advertising
budget towards the 'Grand Opening Event.'
Direct Marketing -- We'll directly market to local hotels surrounding the powers and the
local airport.
The Nightclub will create an identity-oriented marketing strategy with executions particularly in
radio media, alongside print ads, and in-store promotions.
A grand opening event will be held to launch the Nightclub in the summer of 2001. A radio
advertising blitz will precede the event for three weeks, with ambiguous teasers about an
"event like no other" in the city's history and the forthcoming opening date. Contests will be
held on the target radio stations giving away V.I.P. passes (coupons) to the event while at the
same time, creating excitement about the opening. We will leverage our relationship with the
Dallas Cowboy Cheerleaders to be present on the night of the grand opening. The opening
date is tentative at this point and dependent upon construction completion. The budget for the
event will be $10,000, and the milestone date will parallel the available opening date, currently
June of 2001.
Achievement of the following campaigns will be measured by the polling of customers as to
how they heard of the Nightclub for the first ninety days of operation. Budget adjustments will
be made as the results dictate.
We will be running regular local radio and newspaper ads to create brand awareness. Our
radio ads will be concentrated strongly on Magic FM, the city's top radio station among our
target market segments. Through commercial repetition, a teaser campaign, and the use of
catchy phrases, we hope to obtain intellectual ownership of our target market segments: when
they think dance club and bar they'll have to think the Nightclub. Drink specials will also be
staples of our radio advertising in order to bring people in. HK will be responsible for ongoing
radio ads with a monthly budget of $12,000 per month for the first ninety days, followed by an
ongoing budget of $6500 per month.
We will advertise directly to local hotel guests in the local airport and surrounding the
Boulevard areas to attract business travelers and tourists with no knowledge of where to go in
the evening. Through the use of fliers and table tents to place in hotel rooms, we hope to
create visitor awareness of our location and event promotion. Promos such as 'show your
room key and get a free drink' in conjunction with the room ads would be relatively
inexpensive from an advertising standpoint and requires limited ongoing maintenance and
expense. BK will be responsible for direct advertising with a start-up budget of $3,000 and a
maintenance budget of $1,000 per month. The milestone date will be thirty days after the
grand opening event.
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Nightclub Sample Plan

Ads will also go into the college newspapers for the local campuses of Your State College and
the University of Your State. HK will be responsible for this program. The monthly budget for
these ads will be $300. The event date will be in tandem with the grand opening.
Shirts, ball caps, and bumper stickers bearing the Nightclub's logo will be marketed, as well as
given away as prizes, in order to further spread brand awareness. Artistic design will be HK's
responsibility and merchandising will be headed by DD. A start-up budget of $1800 will be in
place and a monthly promotional (giveaway) budget will also exist.

5.2 Sales Strategy

Sales projections for this plan are presented in the following topics.

5.2.1 Sales Forecast

This chart represents our forecast for Income on a monthly basis. The table presents yearly
expected sales. Complete monthly forecast figures for the first year are presented in the
appendix.

Sales Monthly
$300,000
$250,000
$200,000

Beverage Sales
$150,000

Food Sales
Admission Sales

$100,000
$50,000
$0
Jan Feb Mar Apr May Jun

Jul Aug Sep Oct Nov Dec

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Nightclub Sample Plan

Table: Sales Forecast
Sales Forecast
Sales
Beverage Sales
Food Sales
Admission Sales
Total Sales
Direct Cost of Sales
Beverage Sales
Food Sales
Admission Sales
Subtotal Direct Cost of Sales

2001
$1,346,100
$93,500
$836,740
$2,276,340

2002
$1,480,710
$102,850
$920,414
$2,503,974

2003
$1,628,781
$113,135
$1,012,455
$2,754,371

2001
$336,525
$30,855
$0
$367,380

2002
$370,178
$33,941
$0
$404,119

2003
$407,196
$37,335
$0
$444,531

5.2.2 Daily Revenue Forcast

This table illustrates our daily revenue forecast for X,xxx total square feet.
We are assuming a seating capacity for said space of XXX guests. In addition, we expect just
less than one complete rotation of this space for food and beverage guests alike.
Daily
Revenue
Breakdown
**

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Weekly

Total Guests
Charged
Admission

325

475

675

775

2,250

Average
Admission Fee

$7

$7

$7

$10

$10

$10

$7

$9.57

Total
Admission
Sales

$0

$0

$2,275

$4,750

$6,750

$7,750

$0

$21,525

Total Bar
Guests

350

550

775

1,100

2,775

Average
Drinks per
Person

3.25

Average
Beverage
Sales per
Guest

$12.50

$12.50

$10.00

$12.50

$12.50

$12.50

$12.50

$12.18

Average Price
per Drink

$0

$3.75

$3.75

$3.75

$3.75

$3.75

$3.75

$3.75

Total
Beverage
Sales

$0

$0

$3,500

$6,875

$9,688

$13,750

$0

$33,812

Total
Admission
and Beverage
Sales

$0

$0

$5,775

$11,625

$16,438

$21,500

$0

$55,337

Total Food
Guests

30

50

70

100

250

Average Food
Sales per
Guest

$5.00

$5.00

$7.50

$7.50

$7.50

$7.50

$5.00

$45.00

Total Food
Sales

$0

$0

$225

$375

$525

$750

$0

$1,875

Misc. Sales
(10% of
Gross Sales)

$0

$0

$578

$1,163

$1,644

$2,150

$0

$5,533

Total Revenue

$0

$0

$6,578

$13,163

$18,606

$24,400

$0

$62,746

**based on 750-person capacity

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Nightclub Sample Plan

6.0 Management Summary
The management team is an especially close one. One of the presidents has been married to
the vice president for seven years. The two co-presidents have worked directly together for
three and a half years at four positions. One of the presidents has worked with the bar
manager in the past and has known him for nearly ten years. Together we share a single
vision: to provide a unique and entertaining experience through exceptional service.
The company will have six managers, including the two presidents, and three managers who
have yet to be recruited.

6.1 Management Team

DD, Co- President. D has a bachelors degree in business management, five years
management in the restaurant/bar business, consultative experience opening other bars, six
subsequent years management in the car industry ending currently with his current position as
department manager. D's specific responsibilities will lie primarily with the coordination of
events and oversight of the operations and evening activities of the restaurant and bar.
BK, Co-President. B is pursuing a life-long ambition of restaurant/nightclub ownership. Three
years of restaurant kitchen experience and nearly eight years of experience managing people
ending with three and a half years of finance management. B is committed to not only creating
a successful business but also successfully running it. Even though his hands-on experience in
business management is extensive through the finance business, he has spent the last year
and a half researching business and business ownership in his spare time. B's specific
responsibilities will be administrative management to include inventory management, accounts
payable, purchasing, payroll, and public relations with limited marketing involvement (mostly
direct) to other companies.
HK, Vice President. H has a bachelor's degree in industrial media management. Her
experience ranges from radio marketing sales to three years as a financial analyst for L3
Communications. H is a born leader to whom people of all levels flock. H's responsibilities will
be limited to marketing with local radio and newspaper and her day-to-day role in the
restaurant will be a mostly silent one.
MC, Bar Manager. M has more than fifteen years bartending and bar management
experience. M is eagerly awaiting the opportunity to work at a restaurant/bar where things are
done correctly and the customer is put first. In addition to managing the bar, its personnel,
and the djs, M will also be third in command under the two co-presidents.
The positions of office, kitchen and dining room managers have yet to be filled at this time.
These positions will be openly sought along with the remainder of the staff.

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Nightclub Sample Plan

6.2 Management Team Gaps
We believe we have a solid team constructed in order to cover the main points of the business
plan. Management growth through training will be an ongoing component of the Nightclub's
priorities.
However, we do realize that we may not have the hands on specific knowledge that may be
required to execute pre-opening and opening phases of the venture. We also realize that we
may benefit greatly from the retention of a hospitality industry consultant to guide us through
the aforementioned time frames, as well as to consult with us through the first two years of
our operation.
To this end we have contracted with a hospitality industry specialist consultant. His
involvement will exist in several facets, most notably, through providing assistance in
launching this venue. This consultant has over 12 years of experience in the hospitality
industry and has assisted many first-time operators in getting their proposed venues launched
successfully. They will assist in the development of the design, concept, and strategies of the
new business. In addition, they will assist in the hiring process of the management staff, djs,
bartenders, waitresses, and security staff. They will also provide educational services for
management-level personnel who will be responsible for the day-to-day operations of the club.
Interviews for a general manager, operations manager, and all other personnel will be
conducted with the assistance of the consultant. The co-presidents, Mr. D and Mr. K, will make
final decisions for each position.
These gaps will be filled as the opening date draws closer.

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Nightclub Sample Plan

6.3 Personnel Plan
The Personnel Plan reflects the objective of providing an ample amount of service personnel.
Our headcount will remain at thirty unless any unforeseen demands dictate otherwise. Assume
a burden rate of 17%.
DAILY STAFFING (750-person capacity)
Hourly Employees
Day

Position

Quantity

Rate

Avg Hrs

Sub-total

Burden

Total

Monday

Staff Cost/Mon.

$0

$0

$0

$0

Tuesday

Staff Cost/Tues.

$0

$0

$0

Wednesday

Waitress

$5.00

7.5

$75

Security

$7.00

6.5

$195

Bartender

$5.00

7.5

$75

Barback

$4.50

$31

Police Detail

$15.00

$0

$8.00

$0
$64

$441

$88

$604

$120

$824

$839

$143

$982

$0

$0

$0

$2,436

$414

$2,850

Misc.
Staff Cost/Wed.
Thursday

$376

Waitress

$5.00

7.5

$113

Security

$7.50

6.5

$244

Bartender

$5.00

7.5

$113

Barback

1.5

$4.50

$47

Police Detail

$15.00

$0

Misc.

$15.00

$0

Staff Cost/Thur.
Friday

$516

Waitress

$5.00

7.5

$150

Security

$7.50

6.5

$341

Bartender

$5.00

7.5

$150

Barback

$4.50

$63

Police Detail

$15.00

$0

Misc.

$15.00

$0

Staff Cost/Fri.
Saturday

$704

Waitress

$5.00

7.5

$150

Security

$7.50

6.5

$439

Bartender

$5.00

7.5

$188

Barback

$4.50

$63

Police Detail

$15.00

$0

Misc.

$15.00

$0

Staff Cost/Sat.
Sunday

Staff Cost/Sun.

$0

Ttl Wkly/Hrly

Salaried Staff
Position

Salary

Yearly

Weekly

Burden

Manager #1

Oper Prtnr

$55,000

$877

$179

Manager #2

Oper Prtnr

$55,000

$877

$179

Manager #3

General Mgr

$50,000

$798

$163

Manager #4

PR Mgr

$45,000

$718

$147

Manager #5

Bar Mgr

$35,000

$558

$114

Manager #6

Asst.

$25,000

$399

$81

Entertainmnt

DJ

$65,000
$5,480

$866

Ttl Salaried
Ttl Weekly Staff

Total

$6,346
$9,196

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Nightclub Sample Plan

Table: Personnel
Personnel Plan
2001
$284,736
$107,200
0
$391,936

Salaried Staff
Hourly Staff
Total People
Total Payroll

2002
$298,968
$112,560
0
$411,528

2003
$313,916
$118,188
0
$432,104

7.0 Financial Plan

The financial projections for this plan are presented in the tables and charts of the following
subtopics.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are illustrated in the
following table.
The key underlying assumptions are:
We assume a slow-growth economy of five percent the first year, and three percent
thereafter, without major recession.
We assume that we will grow as managers during the process, this growth will manifest
itself as flat line expense growth over the five-year period, leading to increased annual
cash flow.
We assume access to equity capital and financing sufficient to maintain our financial
plan as shown in the tables.
We assume continued popularity of nightclubs in America and the growing demand for
high-energy themed and casual dining venues.
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Sales on Credit %
Other

2001
1
10.00%
10.00%
25.42%
10.00%
0

2002
2
10.00%
10.00%
25.00%
10.00%
0

2003
3
10.00%
10.00%
25.42%
10.00%
0

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Nightclub Sample Plan

7.2 Break-even Analysis
Example Break-Even Analysis formulas are presented in the text below. Business Plan Pro's
interactive table and chart are still linked to the program spreadsheets.
Fixed Costs $X,xxx,xxx
Variable Costs $Xxx,xxx
Revenue (Estimated)$X,xxx,xx
*S = Gross Sales
S = $ + [($Xxx,xxx/ $X,xxx,xxx) x S]
S = $X,xxx,xxx + [(.xxxx) x S]
S = $X,xxx,xxx
Break Even Point = $X,xxx,xxx
Average Nightly Break Even Revenues approximately $ X,xxx
Minimum Nightly Required Spending Per Person - $8.75 + $9.75 = $18.50
Minimum Nightly Required Incoming Traffic Xxx
Table: Break-even Analysis
Break-even Analysis:
Monthly Units Break-even
Monthly Revenue Break-even

139,924
$139,924

Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost

$1.00
$0.16
$117,342

Break-even Analysis
$100,000
$50,000
$0
($50,000)
($100,000)
($150,000)
$0

$40,000

$80,000

$120,000

$160,000

$200,000

Monthly break-even point

Break-even point = where line intersects with 0

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Nightclub Sample Plan

7.3 Projected Profit and Loss
Projected profit and loss statement for the nightclub follows. Three years' annual totals are
shown below. Monthly breakdown for year one appears in the appendix.
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses:
Payroll
Sales and Marketing and Other Expenses
Depreciation
Fees--Credit Card
Fees--Professional
Taxes--Admission
Taxes--Excise
Taxes--Property
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

2001
$2,276,340
$367,380
$0
-----------$367,380
$1,908,960
83.86%

2002
$2,503,974
$404,119
$0
-----------$404,119
$2,099,855
83.86%

2003
$2,754,371
$444,531
$0
-----------$444,531
$2,309,840
83.86%

$391,936
$411,576
$0
$10,764
$7,500
$0
$391,536
$0
$2,496
$36,000
$22,500
$75,000
$66,629
$0
-----------$1,415,937
$493,023
$0
$121,122
$371,901
16.34%

$411,528
$430,574
$0
$10,982
$7,650
$0
$399,368
$0
$2,550
$36,720
$22,950
$75,000
$69,960
$0
-----------$1,467,282
$632,573
$0
$158,143
$474,430
18.95%

$432,104
$451,284
$0
$11,202
$7,803
$0
$407,355
$0
$2,601
$37,454
$23,409
$76,500
$73,458
$0
-----------$1,523,170
$786,670
$0
$199,945
$586,725
21.30%

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Nightclub Sample Plan

7.4 Projected Cash Flow
The following chart illustrates our monthly cash flow for year one. The table shows three years
of annual totals. First year monthly figures as presented in the appendix. The months are
weighted according to the amount of weeks in that month in a typical calendar year.

Cash
$600,000
$500,000
$400,000
$300,000

Net Cash Flow

$200,000

Cash Balance

$100,000
$0
($100,000)
Jan Feb Mar Apr May Jun

Jul Aug Sep Oct Nov Dec

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Nightclub Sample Plan

Table: Cash Flow
Pro Forma Cash Flow
2001

2002

2003

Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations

$2,048,706
$212,383
$2,261,089

$2,253,577
$248,872
$2,502,449

$2,478,934
$273,760
$2,752,693

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

$0
$0
$0
$0
$0
$0
$0
$2,261,089

$0
$0
$0
$0
$0
$0
$0
$2,502,449

$0
$0
$0
$0
$0
$0
$0
$2,752,693

Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations

2001

2002

2003

$144,573
$1,688,286
$1,832,858

$155,044
$1,869,949
$2,024,993

$166,133
$1,996,707
$2,162,840

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
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$0
$0
$0
$0
$0
$0
$1,832,858

$0
$0
$0
$0
$0
$0
$0
$2,024,993

$0
$0
$0
$0
$0
$0
$0
$2,162,840

$428,231
$503,231

$477,456
$980,687

$589,854
$1,570,541

Net Cash Flow

Cash Balance

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Nightclub Sample Plan

7.5 Projected Balance Sheet
The following Balance Sheet indicates healthy growth of net worth and a strong financial
position. The monthly estimates are included in the appendix.
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

2001
$503,231
$15,251
$3,259
$0
$521,740

2002
$980,687
$16,776
$3,585
$0
$1,001,048

2003
$1,570,541
$18,453
$3,943
$0
$1,592,938

$0
$0
$0
$521,740

$0
$0
$0
$1,001,048

$0
$0
$0
$1,592,938

Liabilities and Capital

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

2001
$67,339
$0
$0
$67,339

2002
$72,217
$0
$0
$72,217

2003
$77,382
$0
$0
$77,382

Long-term Liabilities
Total Liabilities

$0
$67,339

$0
$72,217

$0
$77,382

$567,750
($485,250)
$371,901
$454,401
$521,740
$454,401

$567,750
($113,349)
$474,430
$928,831
$1,001,048
$928,831

$567,750
$361,081
$586,725
$1,515,556
$1,592,938
$1,515,556

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

7.6 Business Ratios

The Ratios table below outlines important ratios for this Nightclub. The last column, Industry
Profile, is derived from the Standard Industrial Classification (SIC) Index code 5813, for
Drinking Places.

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Nightclub Sample Plan

Table: Ratios
Ratio Analysis
2001
0.00%

2002
10.00%

2003
10.00%

Industry Profile
1.90%

2.92%
0.62%
0.00%
100.00%
0.00%
100.00%

1.68%
0.36%
0.00%
100.00%
0.00%
100.00%

1.16%
0.25%
0.00%
100.00%
0.00%
100.00%

4.60%
3.10%
44.60%
52.30%
47.70%
100.00%

12.91%
0.00%
12.91%
87.09%

7.21%
0.00%
7.21%
92.79%

4.86%
0.00%
4.86%
95.14%

28.20%
23.10%
51.30%
48.70%

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes

100.00%
83.86%
67.36%
8.79%
21.66%

100.00%
83.86%
64.67%
8.39%
25.26%

100.00%
83.86%
62.20%
8.01%
28.56%

100.00%
42.30%
23.40%
2.40%
2.80%

Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

7.75
7.70
12.91%
108.50%
94.50%

13.86
13.81
7.21%
68.10%
63.19%

20.59
20.53
4.86%
51.91%
49.38%

1.14
0.74
51.30%
5.20%
10.60%

2001
16.34%
81.84%

2002
18.95%
51.08%

2003
21.30%
38.71%

n.a
n.a

14.93
44
40.00
26.07
20
4.36

14.93
23
118.10
25.96
14
2.50

14.93
23
118.10
25.87
14
1.73

n.a
n.a
n.a
n.a
n.a
n.a

0.15
1.00

0.08
1.00

0.05
1.00

n.a
n.a

$454,401
0.00

$928,831
0.00

$1,515,556
0.00

n.a
n.a

0.23
13%
7.47
5.01
0.00

0.40
7%
13.58
2.70
0.00

0.58
5%
20.30
1.82
0.00

n.a
n.a
n.a
n.a
n.a

Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

Additional Ratios
Net Profit Margin
Return on Equity
Activity Ratios
Accounts Receivable Turnover
Collection Days
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
Appendix Table: Sales Forecast
Sales Forecast
Sales
Beverage Sales
Food Sales
Admission Sales
Total Sales
Direct Cost of Sales
Beverage Sales
Food Sales
Admission Sales
Subtotal Direct Cost of Sales

25%
33%

Jan
$44,600
$4,900
$34,100
$83,600

Feb
$77,100
$6,300
$56,800
$140,200

Mar
$96,300
$7,100
$74,600
$178,000

Apr
$131,700
$7,900
$76,900
$216,500

May
$152,800
$9,100
$75,100
$237,000

Jun
$167,100
$9,900
$82,900
$259,900

Jul
$165,700
$10,000
$88,440
$264,140

Aug
$155,200
$9,400
$87,000
$251,600

Sep
$134,900
$8,700
$82,400
$226,000

Oct
$108,500
$7,500
$74,200
$190,200

Nov
$76,800
$6,600
$60,400
$143,800

Dec
$35,400
$6,100
$43,900
$85,400

Jan
$11,150
$1,617
$0
$12,767

Feb
$19,275
$2,079
$0
$21,354

Mar
$24,075
$2,343
$0
$26,418

Apr
$32,925
$2,607
$0
$35,532

May
$38,200
$3,003
$0
$41,203

Jun
$41,775
$3,267
$0
$45,042

Jul
$41,425
$3,300
$0
$44,725

Aug
$38,800
$3,102
$0
$41,902

Sep
$33,725
$2,871
$0
$36,596

Oct
$27,125
$2,475
$0
$29,600

Nov
$19,200
$2,178
$0
$21,378

Dec
$8,850
$2,013
$0
$10,863

Page 24

Appendix
Appendix Table: Personnel
Personnel Plan
Salaried Staff
Hourly Staff
Total People
Total Payroll

Jan
$23,728
$5,100
0
$28,828

Feb
$23,728
$8,700
0
$32,428

Mar
$23,728
$9,400
0
$33,128

Apr
$23,728
$9,500
0
$33,228

May
$23,728
$9,900
0
$33,628

Jun
$23,728
$10,600
0
$34,328

Jul
$23,728
$10,900
0
$34,628

Aug
$23,728
$10,700
0
$34,428

Sep
$23,728
$9,500
0
$33,228

Oct
$23,728
$8,500
0
$32,228

Nov
$23,728
$7,600
0
$31,328

Dec
$23,728
$6,800
0
$30,528

Page 25

Appendix
Appendix Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Sales on Credit %
Other

Jan
1
10.00%
10.00%
30.00%
10.00%
0

Feb
2
10.00%
10.00%
25.00%
10.00%
0

Mar
3
10.00%
10.00%
25.00%
10.00%
0

Apr
4
10.00%
10.00%
25.00%
10.00%
0

May
5
10.00%
10.00%
25.00%
10.00%
0

Jun
6
10.00%
10.00%
25.00%
10.00%
0

Jul
7
10.00%
10.00%
25.00%
10.00%
0

Aug
8
10.00%
10.00%
25.00%
10.00%
0

Sep
9
10.00%
10.00%
25.00%
10.00%
0

Oct
10
10.00%
10.00%
25.00%
10.00%
0

Nov
11
10.00%
10.00%
25.00%
10.00%
0

Dec
12
10.00%
10.00%
25.00%
10.00%
0

Page 26

Appendix
Appendix Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses:
Payroll
Sales and Marketing and Other Expenses
Depreciation
Fees--Credit Card
Fees--Professional
Taxes--Admission
Taxes--Excise
Taxes--Property
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

17%

Jan
$83,600
$12,767
$0
-----------$12,767
$70,833
84.73%

Feb
$140,200
$21,354
$0
-----------$21,354
$118,846
84.77%

Mar
$178,000
$26,418
$0
-----------$26,418
$151,582
85.16%

Apr
$216,500
$35,532
$0
-----------$35,532
$180,968
83.59%

May
$237,000
$41,203
$0
-----------$41,203
$195,797
82.61%

Jun
$259,900
$45,042
$0
-----------$45,042
$214,858
82.67%

Jul
$264,140
$44,725
$0
-----------$44,725
$219,415
83.07%

Aug
$251,600
$41,902
$0
-----------$41,902
$209,698
83.35%

Sep
$226,000
$36,596
$0
-----------$36,596
$189,404
83.81%

Oct
$190,200
$29,600
$0
-----------$29,600
$160,600
84.44%

Nov
$143,800
$21,378
$0
-----------$21,378
$122,422
85.13%

Dec
$85,400
$10,863
$0
-----------$10,863
$74,537
87.28%

$28,828
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$4,901
$0
-----------$113,510
($42,677)
$0
($12,803)
($29,874)
-35.73%

$32,428
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,513
$0
-----------$117,722
$1,124
$0
$281
$843
0.60%

$33,128
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,632
$0
-----------$118,541
$33,041
$0
$8,260
$24,781
13.92%

$33,228
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,649
$0
-----------$118,658
$62,310
$0
$15,578
$46,733
21.59%

$33,628
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,717
$0
-----------$119,126
$76,671
$0
$19,168
$57,503
24.26%

$34,328
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,836
$0
-----------$119,945
$94,913
$0
$23,728
$71,185
27.39%

$34,628
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,887
$0
-----------$120,296
$99,119
$0
$24,780
$74,339
28.14%

$34,428
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,853
$0
-----------$120,062
$89,636
$0
$22,409
$67,227
26.72%

$33,228
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,649
$0
-----------$118,658
$70,746
$0
$17,687
$53,060
23.48%

$32,228
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,479
$0
-----------$117,488
$43,112
$0
$10,778
$32,334
17.00%

$31,328
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,326
$0
-----------$116,435
$5,987
$0
$1,497
$4,490
3.12%

$30,528
$34,298
$0
$897
$625
$0
$32,628
$0
$208
$3,000
$1,875
$6,250
$5,190
$0
-----------$115,499
($40,962)
$0
($10,240)
($30,721)
-35.97%

Page 27

Appendix
Appendix Table: Cash Flow
Pro Forma Cash Flow
Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

0.00%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$75,240
$0
$75,240

$126,180
$4,459
$130,639

$160,200
$11,379
$171,579

$194,850
$16,036
$210,886

$213,300
$19,853
$233,153

$233,910
$22,743
$256,653

$237,726
$24,921
$262,647

$226,440
$26,216
$252,656

$203,400
$25,745
$229,145

$171,180
$23,795
$194,975

$129,420
$20,691
$150,111

$76,860
$16,545
$93,405

$0
$0
$0
$0
$0
$0
$0
$75,240

$0
$0
$0
$0
$0
$0
$0
$130,639

$0
$0
$0
$0
$0
$0
$0
$171,579

$0
$0
$0
$0
$0
$0
$0
$210,886

$0
$0
$0
$0
$0
$0
$0
$233,153

$0
$0
$0
$0
$0
$0
$0
$256,653

$0
$0
$0
$0
$0
$0
$0
$262,647

$0
$0
$0
$0
$0
$0
$0
$252,656

$0
$0
$0
$0
$0
$0
$0
$229,145

$0
$0
$0
$0
$0
$0
$0
$194,975

$0
$0
$0
$0
$0
$0
$0
$150,111

$0
$0
$0
$0
$0
$0
$0
$93,405

Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$7,835
$33,801
$41,637

$10,415
$109,070
$119,486

$11,614
$132,693
$144,307

$13,379
$143,770
$157,149

$14,202
$159,835
$174,037

$14,987
$168,047
$183,034

$14,936
$175,213
$190,150

$14,342
$174,358
$188,699

$13,264
$167,463
$180,727

$11,822
$156,487
$168,309

$10,035
$142,360
$152,395

$7,740
$125,188
$132,928

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
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$0
$0
$0
$0
$0
$0
$41,637

$0
$0
$0
$0
$0
$0
$0
$119,486

$0
$0
$0
$0
$0
$0
$0
$144,307

$0
$0
$0
$0
$0
$0
$0
$157,149

$0
$0
$0
$0
$0
$0
$0
$174,037

$0
$0
$0
$0
$0
$0
$0
$183,034

$0
$0
$0
$0
$0
$0
$0
$190,150

$0
$0
$0
$0
$0
$0
$0
$188,699

$0
$0
$0
$0
$0
$0
$0
$180,727

$0
$0
$0
$0
$0
$0
$0
$168,309

$0
$0
$0
$0
$0
$0
$0
$152,395

$0
$0
$0
$0
$0
$0
$0
$132,928

$33,603
$108,603

$11,153
$119,756

$27,272
$147,028

$53,737
$200,765

$59,116
$259,881

$73,619
$333,500

$72,497
$405,997

$63,957
$469,954

$48,419
$518,373

$26,665
$545,038

($2,284)
$542,754

($39,523)
$503,231

Net Cash Flow

Cash Balance

Page 28

Appendix
Appendix Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

Starting Balances
$75,000
$0
$7,500
$0
$82,500

Jan
$108,603
$8,360
$3,830
$0
$120,793

Feb
$119,756
$17,921
$6,406
$0
$144,084

Mar
$147,028
$24,343
$7,925
$0
$179,296

Apr
$200,765
$29,957
$10,660
$0
$241,381

May
$259,881
$33,803
$12,361
$0
$306,045

Jun
$333,500
$37,050
$13,513
$0
$384,062

Jul
$405,997
$38,543
$13,418
$0
$457,957

Aug
$469,954
$37,487
$12,571
$0
$520,011

Sep
$518,373
$34,341
$10,979
$0
$563,693

Oct
$545,038
$29,567
$8,880
$0
$583,485

Nov
$542,754
$23,256
$6,413
$0
$572,423

Dec
$503,231
$15,251
$3,259
$0
$521,740

$0
$0
$0
$82,500

$0
$0
$0
$120,793

$0
$0
$0
$144,084

$0
$0
$0
$179,296

$0
$0
$0
$241,381

$0
$0
$0
$306,045

$0
$0
$0
$384,062

$0
$0
$0
$457,957

$0
$0
$0
$520,011

$0
$0
$0
$563,693

$0
$0
$0
$583,485

$0
$0
$0
$572,423

$0
$0
$0
$521,740

Liabilities and Capital

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0
$0

Jan
$68,167
$0
$0
$68,167

Feb
$90,614
$0
$0
$90,614

Mar
$101,045
$0
$0
$101,045

Apr
$116,398
$0
$0
$116,398

May
$123,558
$0
$0
$123,558

Jun
$130,391
$0
$0
$130,391

Jul
$129,947
$0
$0
$129,947

Aug
$124,773
$0
$0
$124,773

Sep
$115,395
$0
$0
$115,395

Oct
$102,853
$0
$0
$102,853

Nov
$87,301
$0
$0
$87,301

Dec
$67,339
$0
$0
$67,339

Long-term Liabilities
Total Liabilities

$0
$0

$0
$68,167

$0
$90,614

$0
$101,045

$0
$116,398

$0
$123,558

$0
$130,391

$0
$129,947

$0
$124,773

$0
$115,395

$0
$102,853

$0
$87,301

$0
$67,339

$567,750
($485,250)
$0
$82,500
$82,500
$82,500

$567,750
($485,250)
($29,874)
$52,626
$120,793
$52,626

$567,750
($485,250)
($29,031)
$53,469
$144,084
$53,469

$567,750
($485,250)
($4,250)
$78,250
$179,296
$78,250

$567,750
($485,250)
$42,483
$124,983
$241,381
$124,983

$567,750
($485,250)
$99,986
$182,486
$306,045
$182,486

$567,750
($485,250)
$171,171
$253,671
$384,062
$253,671

$567,750
($485,250)
$245,511
$328,011
$457,957
$328,011

$567,750
($485,250)
$312,738
$395,238
$520,011
$395,238

$567,750
($485,250)
$365,798
$448,298
$563,693
$448,298

$567,750
($485,250)
$398,132
$480,632
$583,485
$480,632

$567,750
($485,250)
$402,622
$485,122
$572,423
$485,122

$567,750
($485,250)
$371,901
$454,401
$521,740
$454,401

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 29