Financial Statement Analysis and Break-Even Point

The provided assignment is a comprehensive financial analysis that includes detailed income statements, balance sheets, and break-even point calculations. It also presents various financial ratios such as gross margin, net margin, and mark-up. The assignment is designed to help students understand key concepts in financial statement analysis, including the calculation of break-even points, and provides a practical example for students to apply these concepts.

Running Head: BUSINESS PLAN 1
Business Plan: Quick Bite Café

BUSINESS PLAN 2
Executive Summary
Business plan is a significant and formal document of business objectives and reasons, which are
attainable and plans for approaching them. It includes different information about the
organization and team making efforts to achieve these objectives. This plan works as a decision
making tool for a company. In today’s competitive business environment, each and every
company creates this plan for managing its operations and processes systematically. The major
objective of this report is to develop a business plan for a coffee shop in Ireland. This coffee
shop will be offering serving breakfast and lunch for adults and kids. The organization will be
named as Quick Bite Café and it will offer pancakes for kids and sandwiches/ wraps and rolls for
adults. The promoters of the company are introducing this organization to fulfill the increased
demands of breakfast and coffee in the shopping malls, so that they can have coffee and food
before and after their shopping trip. The business plan includes different aspects of business plan
such as company description, market analysis, marketing/ sales strategy, research and
development, staffing and operations and financial projections. All the aspects are included in
context of this new business venture, i.e. Quick Bite Café. This is the summary of financial
projections of company under below report;
Total Sales 5,500 6,750 8,513
Less Total Disc/Comm. 130 180 215
Total Net Income 5,370 6,570 8,298
Less Total Cost of Goods
Sold 1,900 2,475 3,094
Gross Profit 3,470 4,095 5,204
Expenses
General & Administrative 295 315 315
Marketing & Promotional 150 210 216
Operating Expenses 555 605 668
Motor Vehicle Expenses 95 95 95
Website Expenses 45 45 45
Total Employment Expenses 215 283 339
Occupancy Costs 585 648 726
Other Expenses 120 160 160
Total Expenses 1,800 2,060 2,264
Monthly Net Profit /
(Loss) 1,670 2,035 2,940

BUSINESS PLAN 3
Table of Contents
Executive Summary.........................................................................................................................2
Company Description......................................................................................................................4
Promoters, shareholders and Board.............................................................................................4
Advisors.......................................................................................................................................4
Products and Services..................................................................................................................5
Long Term Aim of Business........................................................................................................5
Objectives.....................................................................................................................................5
SWOT Analysis...........................................................................................................................5
Marketing Analysis..........................................................................................................................6
Target Market...............................................................................................................................6
Total Market Valuation................................................................................................................7
Targeted Company Revenues......................................................................................................7
Market Trends..............................................................................................................................7
Profile of Competitors..................................................................................................................8
Competitive Advantage................................................................................................................8
Benefits to Clients........................................................................................................................9
Marketing/Sales Strategy.................................................................................................................9
Marketing Strategy.......................................................................................................................9
Pricing........................................................................................................................................10
Marketing and Communication Strategy.......................................................................................11
Sales Strategy.............................................................................................................................12
Research and Development...........................................................................................................13
Product/Service Development....................................................................................................13
Patents, trademarks and brands..................................................................................................14
Staffing and Operations.................................................................................................................14
Management Organization Charts.............................................................................................15
Staffing.......................................................................................................................................15
Training Plan..............................................................................................................................16
Operations..................................................................................................................................16
Financial Projections.....................................................................................................................17

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Key Assumptions.......................................................................................................................17
Profit and Loss Accounts...........................................................................................................18
Balance Sheet.............................................................................................................................19
Cash flow Projections................................................................................................................20
Sales Pipeline.................................................................................................................................21
Funding Requirements...................................................................................................................21
References......................................................................................................................................22
Appendices....................................................................................................................................25

BUSINESS PLAN 5
Company Description
Under this report, the promoters are planning to introduce a restaurant business in Ireland. The
restaurant is named as Quick Bite Café and it will offer breakfast and lunch products to its
targeted audiences. There are some people which are engaged in the beginning of this business
are stated below:
Promoters, shareholders and Board
Promoters are the people who play an important role in starting a new business. The promoters
of this business are planning to raise funds for establishing Quick Bite Café in Ireland. For this
business, these promoters are generating funds from direct investment activities and limited
partnerships. The organization will develop an effective and systematic management structure
that will include different levels of management. This café is owned by Albert Patton who will
operate as managing partner/general manager. Essential employees of this café include additional
manager who will maintain and review the operations and processes of café. He will also
supervise the chef who will manage the operations in kitchen (Armstrong, et al, 2015). In
addition to this, an assistant manager will be engaged in secondary operations. The business will
hire some part time employees to handle serving, bartending and dishwashing activities.
The list of shareholders is stated below;
Shareholders
name Keith John Carolina
Number of share 800 500 700
% shareholding 40% 25% 35%
Cash investment $ 6,000 $ 3,750 $ 5,250
Advisors
Name of Advisors Addresses Contact Details
Financial Advisor:
David Cook
Orchard Road, Dublin [phone]
Legal Advisor:
Robin Lee
7, Harcourt Street, Dublin [phone]

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Other advisor:
Michael Johnson
Kildare Street, Dublin [phone]
Products and Services
Quick Bite Café will be offering varied menu, which will include pancakes for kids and
wraps/sandwiches and rolls for adults. This café will be situated at large shopping venue in
Dublin, where adult people can relax for quick breakfast or lunch before and after their shopping.
The unique selling point of this café will be delivering highest quality of food at affordable
prices. The products and services of this are advantageous for the people who feel tired and
hungry while doing shopping. The major weak point of this café is that it has limited funds and
there are various players which are already established in the market. After establishment in
Ireland restaurant sector, Quick Bite Café will increase its product range and offer more food
products to its target segment (Callaghan and Kelly, 2016).
Long Term Aim of Business
Before introducing this café business, the organization will establish goals and objectives which
it needs to be achieved in the timeframe of next five years. The long term aim of this business is
to create a large customer base and to generate significant revenues from its café services.
Objectives
There are some specific objectives which will be established by Quick Bite Café in Ireland. The
major objectives/milestones of this café are given below;
 To create and develop customer relationships
 To increase the sales of organization by a significant percentage in the timeframe of next
five years
 To cover a large market share in Ireland restaurant industry
 To provide employment and retain talented employees in the organization (Chang, 2016).
SWOT Analysis
Strengths
 Location: biggest shopping venue
of the city.
Weaknesses
 Well-established players

BUSINESS PLAN 7
 Higher quality products at
affordable rates
 Comfortable environment
 Limited Funds
 Owner has less experience in
restaurant business
Opportunities
 The firm has the opportunities to
expand the business and market
locally.
 Opportunities to open new
franchises
 Product diversification
(Weisstein, Kukar-Kinney and
Monroe, 2016)
Threats
 There are so many already
established competitors in
restaurant industry
 Trends of healthy eating among
customers
 Limited brand presence in market
Marketing Analysis
It is very important for an organization to conduct marketing analysis before implementing this
business plan. This marketing analysis will assist this organization to evaluate the market needs
and target segment for its products and services. The marketing analysis for Quick Bite Café is
given below;
Target Market
According to a report, quick serve restaurants account for a third of the spending in food service
sector in Ireland whereas coffee shops are the fastest growing segment in the market. The fast
food and restaurant market is a profitable industry in the country with yearly increases in
revenues. There are so many people who are choosing to eat outside (Cole, 2013). To sell its
products, Quick Bite Café is targeting the kids and adults as its key market segments. For
pancakes, it is targeting kids. Moreover, it is offering coffee and other fast food products to the
adult people during their shopping. In Ireland, 21% of the total population is covered by the male
and female kids. Young adults are 43% and older adults are 10%. The total population of Dublin
is 1.8 million in which a significant part is covered by kids and adults. The organization will
prepare the food products by considering the needs and demands of these market segments. Both
of the market segments are growing with a significant rate (Alt, and Iversen, 2017).

BUSINESS PLAN 8
In addition to this, the organization will target these market segments by considering their
demographic and psychological characteristics. Under demographic segmentation, the
organization will target the customers on the basis of their ages and income groups. The
organization will be offering its food products at reasonable rates so that it can be afforded by
both lower and middle income level groups. Kids and adults love to eat before and after their
shopping trip. In this way, the company will target these market segments by considering their
specific characteristics (Varadarajan, 2010).
Total Market Valuation
The food service market in Ireland is growing with a significant growth rate. This market has
grown from 6.13€ billion in 2016 to 6.37€ billion in 2017. A report states that international fast
food industry is valued at more than US$ 540 billion in the year 2016 and it is estimated to arrive
above US$ 690 billion in the year 2022 (Iomaire, 2015). It can be stated about fast food industry
that customers are growing with a significant growth rate at both domestic and international level
(Finch, 2016).
Targeted Company Revenues
The targeted revenues of the company are $1.2 million in the end of second year of business
establishment. Furthermore, organization is targeting to see continuous increase in the revenues
with a significant rate.
Market Trends
Ireland is experiencing a trend towards the creation of quick dining and serving venues. There
are various fast food outlets and cafes which already have more popularity and recognition. In
this industry, quick serving restaurants are accounted for over one third of total revenues in last
year. In this market, there are various players which are emerging with new and differentiated
food products. There are some recent changes in the Irish fast food market such as people are
becoming very conscious for health and obesity. People think that fast food and coffee affect
their health and increase obesity. This has declined the growth of market in past few years.
However, Quick Bite is establishing its café in a famous shopping mall in Dublin that will create
better market opportunity for this café. In the future, this café is predicting to grab a significant
market share in the Irish industry (Irish Food Board, 2015). Its marketing efforts and quality food
offerings will assist in generating a large customer base in the future. As the population

BUSINESS PLAN 9
increases, people are choosing for coffeehouse, dining and entertainment venues, which are
closer to their homes and in shopping centers. The economy of Ireland is dominated by service
industry that contributed 72% to the total Gross Domestic Product. The economy of country is
favorable for this new business idea of opening café. The government has developed various
rules and legislations which are related to food safety and quality. These legislations are
profitable for the organization (Offer, Pechey, and Ulijaszek, 2010).
Profile of Competitors
There are various players which are already operating their business in restaurant industry and
they will pose intense competition for this new entrant (Ireland, 2018). The competitor’s profile
is given below;
Key Competitors Company Size Profitability Strategy
Fontana Café
Restaurant
Small Sized
Organization
20 to 25% Focused on product
quality rather than
prices
O’Brien’s Sandwich
Cafe
Medium Sized
organization
35 to 40% Cost Leadership
Strategy
The Galway Roast Large Sized
organization
50 to 60% Product differentiation
and unique product
offerings
These players have both advantages and disadvantages for this new business of Quick Bite Café
in Dublin. The above mentioned cafes have well-established business and brand image in the
Ireland fast food industry so it may affect the business growth of Quick Bite Café. The major
disadvantage of these players is the lack of presence in the market. The organization may attain
advantages by offering a range of healthy food products (Murray, 2017). It will assist the
organization to overcome competitive pressure in Ireland Fast Food industry.
Competitive Advantage
In Ireland fast food industry, Quick Bite Café will make a unique offering of fast food products
and coffee. The food menu at Quick Bite Café will include pancakes, coffee, sandwiches, rolls,
wraps and other breakfast or lunch products for it market segments. The unique features of this

BUSINESS PLAN 10
café are such as unique dining experience, highest quality of food, affordable prices, cleanliness
of restaurant etc. Additionally, it will hire a talented and customer-friendly staff for serving the
food (Keller, 2010). These features will support the organization in attaining more competitive
advantage over its competitors. The organization is planning to install modern and updated
technologies to provide serving assistance to the customers. It will set up LED display to show
the food order number of customers. It is conducting cooking classes for the kids, which is the
major factor behind its competitive advantage. Thus, there will be various unique features and
services which will assist the organization in increasing its brand presence and competitive
advantage in Irish Fast Food industry.
Benefits to Clients
The introduction of this new café will provide various benefits to its potential customers and it
will attain its business objectives. Yes, the food products and services of Quick Bite Café will
increase its sales and efficiencies. The organization will offer its products on more affordable
prices than its competing brand that will enable the customers to save their money. In the
beginning, it will start the business with limited resources and staff. After six months, the café
will make significant efforts to maximize its all resources such as human resources, tangible
resources, financial resources etc. It will offer an effective training to its employees which will
reduce the errors in service delivery. It will focus on enhancing customer services by providing
quality food without any delay (Kharub, and Sharma, 2017). As mentioned above, this café will
be established in a popular shopping center in Dublin that will provide breakfast and lunch to the
people who want to get relaxed from their shopping trip. These above benefits to clients will help
the management of café to increase the loyalty among customers.
Marketing/Sales Strategy
To offer above mentioned benefits and increase customers, The Quick Bite Café will develop
effective marketing and sales strategies. These strategies will assist the organization to increase
its sales and revenues in competitive fast food industry in Ireland (Dunne, and Wright, 2017).
These strategies for the organization are given below;

BUSINESS PLAN 11
Marketing Strategy
Quick Bite Café will use an effective marketing strategy to target its intended market, i.e. kids
and adults. The major marketing strategy of Quick Bite Café will be to focus on creating new
customers and getting them to spend more and come back to them (Baker, 2014). Developing a
loyal customer base is very important because this customer base will not only generate
increased sales but also it will give profitable referrals. First, the organization will target the kids
and adults and serve varied menu like pancakes, coffee, sandwiches, rolls and wraps. It will
target the people who are coming for shopping in the mall and want to have food after or before
their shopping. In addition to this, it will entice the urban people as they are more active to do
shopping. These people like to have a casual and sophisticated dining so this café will make
efforts to meet this demand of targeted audiences (Scarborough, 2015).
To differentiate its products from others, this café will focus on providing higher quality food
products at competitive prices. The marketing strategy of Quick Bite Café will be developed to
show that it has excellent products and services, appropriate accessibility along with the
community benefits. Currently, these customers need to go outside the mall and eat food. This
café will make their shopping trip more comfortable and easy. Before launching the store, the
organization has prepared the testing samples of food and provided them through food truck
facility in most populated areas of the city (Eden, & Ackermann, 2013). The feedback of this
testing was positive for the business of Quick Bite Café. The people liked the samples and
showed their interests towards this café. To perform marketing efforts, the organization will
create a team of employees. It will conduct some promotional and marketing campaigns to
approach more people in the city. Moreover, this café will contact with the advertising agencies
that will do marketing on the behalf of Quick Bite Café (Talpos, Pop and Vaduva, 2016).
Pricing
Pricing strategy of an organization plays a significant role in attracting customers towards its
products and services. Quick Bite Café will adopt an effective pricing strategy by considering its
targeted segment. Before setting its prices, the café will conduct a market research to know about
the prices of its major competitors, i.e. The Galway Roast, Fontana Café and O’Brien’s
Sandwich Café. The prices of The Galway Roast Café are the highest in the market. The
competitive analysis shows that organizations are fighting over the prices. O’Brien’s Café is

BUSINESS PLAN 12
offering its products on lower prices than other restaurants (Guo, and Zheng, 2017). The
customers in market perceive the strong relationship between prices and quality of food products.
The café will focus on developing balance between price and quality of products. For this, it will
try to manage minimum production costs that include 25% food costs, 10% rent, 15% labor and
20% other overheads. In addition to this, the organization can set variable prices such as it can
charge more for table services than for counter services or for specialized or premium food
items. Buyers can control the prices to avail counter and take away services. In this way, the
pricing strategy of Quick Bite café will be very effective that will assist it in increasing its
customer base and sales volume (Jogaratnam, 2017).
Marketing and Communication Strategy
 Advertising – where, when, how, to whom
Attracting customers to come in and try the food is the primary step in establishing a successful
café. Quick Bite Café will use promotional and advertising strategies that will highlight the
creativity, taste and affordability of restaurants. It will make the customers more interested and
attractive towards café’s products and services. Furthermore, the café will advertise its products
and services by using different modes such as online and offline. Under online media, it will use
social media networking sites like Facebook, Twitter and Instragram. It is planning to create a
page on Facebook and Instagram and post the pictures of restaurant. Additionally, it will use
traditional methods such as television ads, newspaper ads and radio. It will give advertisement in
regional newspapers and magazines in Ireland (Gordon, 2012).
 Public relations
It is a significant promotional technique that develops a relationship between organization and
targeted public. Quick Bite Café can improve its business profile and brand reputation among the
population of Ireland and other neighboring countries. This method can be cost effective for café
(Mok, Sparks, & Kadampully, 2013).
 Direct marketing
Direct marketing is the communication strategy that includes delivering the brand message to
targeted audiences without any intermediary. Quick Bite Café can use different modes of direct

BUSINESS PLAN 13
marketing such as catalog, newsletters, brochures, e-mail, text messages etc. It will support the
café in increasing brand loyalty among people (Lam, and Harker, 2015).
 Website and internet marketing
In Ireland, there are various customers who use internet to find a regional restaurant or coffee
shop. So, Quick Bite Café will create a website for its café which will list the directions and post
its food menu online (Kotlar, & Armstrong, 2012). It will add coupons and reward testimonials
by giving future discounts to attract new customers.
Sales Strategy
The sales strategy and plan of Quick Bite is to establish and manage the strong position among
domestic customers of Dublin and all over Ireland. The organization will create a strategy to
attract more customers so that it can increase its sales and revenues (Stevenson and Sum, 2015).
It will use different techniques for increasing the sales of organization. These techniques are
stated below;
Direct Sales
Quick Bite Café will use the direct selling method to enhance its sales. Under this, it will make
the action of selling products directly to the customers. The customers can come to the café and
they can have the food at their restaurant. There is a direct communication and relationship
between restaurant and its customers. The organization may have various advantages of this
strategy such as better relationships with customers, coordination with other strategies
(Kandampully, Zhang, & Bilgihan, 2015).
Sales Representative and Team
The organization will create a team of sales representatives which will handle the sales
transactions. To enhance the customer services, two employees will serve the customers and one
person will prepare the order of customers. There will be one person who will take care of the
sales activities and transactions. All the data of sales will be logged on the point of sale system
that will be evaluated for marketing objectives (Hopp and Greene, 2018).
Customer Retention programs

BUSINESS PLAN 14
It order to create a customer base, Quick Bite Café will use fliers and banners. Moreover, it will
use client referrals and promotions with other businesses in that area. Customer retention
program will be effective to ensure that customers are coming back to the café and spending
more (Untaru, & Ispas, 2013).
Research and Development
Product/Service Development
In the future, the organization will plan to adopt and implement new and updated technologies
for improving the services delivery (Storey, 2016). First it will start the business with limited
food products. After some time, it will increase its product range and use modern technologies to
deliver the products. In today’s environment, most of the population uses smartphone
applications. This café will develop an application through which people will be able to order
their food. It will assist the organization in meeting the future demands of customers. After three
year of operations in Ireland, the organization will plan to expand its business in other countries
such as United States and European Union (Huang, & Sarigöllü, 2014). Using effective
technology will assist the organization in business expansion. It can add new products such as
burger, pizza, beverages and other products. It can offer different types of cuisines under one
roof. Making research and development will assist the organization in diversifying its product
range and expanding the business globally. The technical team will assist the organization in
managing the ordering system and sales reports.

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The organization will set up updated technology to operate the above system (Slack, 2015). The
information will be managed by the use of different management information systems like ERP
and MIS. The major milestones of the organization are stated in the below table;
Time Action Time Frame
Now Introduction of coffee shop and restaurant
business
1-5-2018 to 1-11-2018
In 6 months Introduction of new technology 1-11-2018 to 1-3-2019
In 1st year Inclusion of new products 1-4-2019 to 1-4-2021
In 3rd year Product diversification and business expansion 1-4-2021 to 1-4-2023
These milestones will help the Quick Bite Café in establishing different platforms and attaining
the business objectives (Leung, Xue, and Bai, 2015). It will contact with some technical partners;
Technical Partners Nature of Involvement

BUSINESS PLAN 16
Breadcrumb POS It will involve in providing Point-of-sales
system to Quick Bite Café.
E-Learning service providers It will provide training program to its staff.
Patents, trademarks and brands
After developing its products and new technologies, the organization will take protection from
different authorities and acts. It will trademark the restaurant so that it can create its recognizable
and unique brand name. It will enhance the customer awareness and entice new customers. It
will create a unique logo for organization’s products. For the business of Quick Bite Café, it is
important to trademark its products and services (Desyllas, Miozzo and Miles, 2015).
Staffing and Operations
Management Organization Charts
The organizational structure of Quick Bite café includes several reporting structures, where the
firm can put its information system. The organization structure chart of Quick Bite Café is given
below;

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The above management structure includes different departments and staff which will have
different responsibilities.
Staffing
Quick Bite Café will hire a full time manager (General Manager) to supervise the daily
operations at the restaurant. The organization will ensure that manager has experience of three
years in the related field. His/her responsibilities will include managing other staff, dealing with
distributors and suppliers, inventory ordering and perform managerial duties (McDonald, &
Wilson, 2016). Moreover, it will hire 2 assistant managers who will handle the team of servers,
hosts and bartenders. There will be one kitchen manager who will deal with the duties and
responsibilities of cooks and dishwashers. In the timeframe of next three years, the organization
will ensure that all the managers have effective operations and managerial skills (Lee, Hallak,
and Sardeshmukh, 2016). It will make them able to manage their subordinates.
Training Plan
In order to maintain a skilled workforce, Quick Bite Café will conduct training and development
program. It will assist the organization to develop their skills towards their work and

BUSINESS PLAN 18
responsibilities at café. This training will include all the levels of management. By looking at the
future development and new product development, the organization will make changes in the job
roles after training program (Phillips, and Phillips, 2016).
Current Job Training After Training job role
Food Server Managing Human resources
and controlling food
production costs
Assistant Manager
Trainer Marketing and management of
café
Assistant Manager
Hot Station Food preparation and
controlling food costs
Head Chef
Assistant Manager Purchasing and inventory
management
General Manager
The above given training plan will assist this café in enhancing the skills and knowledge of their
staff. The people will be able to handle the roles and responsibilities of their senior position.
When the organization will increase its product range, this training plan will help them in
understanding the related roles and tasks (Olson, et al, 2018).
Operations
When a new business is introduced in the market, it is very important to develop and manage its
operations. The top management of the organization needs to understand the physical
requirements of business, such as equipment, premises, infrastructure, communication, suppliers
and costs. The café will take a space in popular shopping center on rent. The outlet will be
located in the strategic location of the city. The café will have the capacity for more than 60
people. The café will be equipped with latest and modern cooking equipment and utensils. It will
provide a playing room and some fun activities for the children. The ambience of café will be
attractive to people. It will include different costs such as furniture costs, rent, utensil costs, raw
material costs etc. The organization will partner with profitable suppliers who can supply raw
materials like milk, vegetables, bread on reasonable prices (Krajewski, Malhotra, and Ritzman,

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2015). It will help the organization in managing its operations and provide quality products on
time.
Financial Projections
For this restaurant business, financial projections of Quick Bite Café are given below;
Key Assumptions
Key Assumptions for Quick Bite Café are given below. The table includes all the resources and
expenses related to business activities.
Income sources Sell of food items
Sell of beverages
Number of employees 5 employees
(salary of each employee is $ 300.)
Projected investment in equipment and
material $ 1000
Projected R&D cost $ 800
Depreciation allowed for Machinery and equipment @ 10% (SLM)
Expected rent and rates charges $ 550
Creditor days expected and debtor day
allowed Creditors turnover days = 58 days
Debtors turnover days = 10 days
start-up Expenses calculations Rent Deposit $ 550
Furniture & Fixtures $ 1,500
Equipment $ 1,000
Build out/ Renovations $ 800
Decorating, Painting and Re-
modelling $ 800
Installation of Fixtures &
Equipment $ 200
Starting Inventory $ 2,200
Legal and Other Professional Fees $ 1,000
License and Permits $ 300

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Advertising and Promotion $ 800
Consulting $ 300
$ 9,450
Profit and Loss Accounts
The projected Profit and Loss statement for the café is given below;
Profit & Loss
Statement
Month Apr 18 Apr 19 Apr 20
Income
Total Sales 5,500 6,750 8,513
Less Total Disc/Comm 130 180 215
Total Net Income 5,370 6,570 8,298
Less Total Cost of Goods
Sold 1,900 2,475 3,094
Gross Profit 3,470 4,095 5,204
Expenses
General & Administrative 295 315 315
Marketing & Promotional 150 210 216
Operating Expenses 555 605 668
Motor Vehicle Expenses 95 95 95
Website Expenses 45 45 45
Total Employment Expenses 215 283 339
Occupancy Costs 585 648 726
Other Expenses 120 160 160
Total Expenses 1,800 2,060 2,264
Monthly Net Profit /
(Loss) 1,670 2,035 2,940
Total Year to Date Net Profit / (Loss) 1,670 3,705 6,645

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Balance Sheet
Apr 18 Apr 19 Apr 20
Current Assets
$1,000.00 $5,000.00 $25,000.00
$3,000.00 $4,000.00 $8,000.00
General $200.00 $200.00 $200.00
Rates $100.00 $100.00 $100.00
Workcover $25.00 $25.00 $25.00
Insurance $50.00 $50.00 $50.00
Etc.
Total Prepaid expenses 375.00$ 375.00$ 375.00$
Inventory
Rawmaterial $100.00 $125.00
Total Inventory -$ 100.00$ 125.00$
Short termInvestments 50.00$ 500.00$ 1,000.00$
Other current assets -$ 1,500.00$ 2,500.00$
4,425.00$ 11,475.00$ 37,000.00$
Fixed Assets
Computer $1,000.00 $1,000.00 $1,000.00
Store Fit Out $500.00 $500.00 $500.00
Office Equipment $500.00 $750.00 $1,500.00
Leasehold $150.00 $200.00 $450.00
Buildings &improvements $300.00 $500.00 $800.00
Furniture &Fixtures $100.00 $300.00 $500.00
Etc.
550.00$ 1,000.00$ 1,750.00$
Total Assets 4,975.00$ 12,475.00$ 38,750.00$
Current Liabilities
Bank Overdraft -$ 900.00$ 900.00$
Credit Card Debt 500.00$ 800.00$ 1,200.00$
300.00$ 1,200.00$ 900.00$
50.00$ 500.00$
-$ 15.00$ 80.00$
-$ 20.00$ 60.00$
-$ 40.00$ 40.00$
1,000.00$ 1,000.00$ 1,000.00$
Etc.
1,800.00$ 4,025.00$ 4,680.00$
LongTermLiabilities
Motor Vehicle Loan 1,000.00$ 500.00$ 300.00$
Equipment Finance 800.00$ 1,500.00$ 1,000.00$
Long termLoans 200.00$ 500.00$ 800.00$
2,000.00$ 2,500.00$ 2,100.00$
Total Liabilities 3,800.00$ 6,525.00$ 6,780.00$
Net Assets 1,175.00$ 5,950.00$ 31,970.00$
Owners Funds 1,000.00$ 1,745.00$ 23,324.75$
Retained Earnings 175.00$ 500.00$ 2,000.00$
Current Year Profit 1,670.00$ 3,705.00$ 6,645.25$
Total Shareholders Funds (Equity) 2,845.00$ 5,950.00$ 31,970.00$
Assets
Total Current Liabilities
Total LongTermLiabilities
Balance Sheet
Prepaid Expenses
Cash on hand
Month
Total Current Assets
Liabilities
Debtors
Total FixedAssets
Creditors
GST collected
Superannuation
PAYGWitholding Payable
Workcover Insurance Payable
Current portion of long termdebt
Shareholders Funds ( Equity)

BUSINESS PLAN 22
Cash flow Projections
The detailed cash flow statement of the organization is given in the attached excel sheet.
CashFlowStatement
Cashflows fromOperations
Cashreceipts fromcustomers
(enter positive amounts)Cash Sales 210$ 215$ 195$ 187$ 100$ 150$ 125$ 148$ 195$ 180$ 175$ 168$ 210$ 215$
Cash collected fromcustomers (debtors) 300$ 350$ 200$ 150$ 80$ 95$ 110$ 125$ 150$ 135$ 140$ 200$ 125$ 100$
Funding fromCreditors
Stock purchased, not yet paid 150$ 80$ 95$ 110$ 125$ 150$ 215$ 195$ 187$ 100$ 150$ 125$ 148$ 150$
Cash paid for 100$ 200$ 150$ 350$ 120$ 150$ 90$ 70$ 85$ 50$ 100$ 150$ 125$ 135$
(enter negative amounts)Total Expenses -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Inventory (stock)purchases -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Funding to Debtors
Sales made not yet collected -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Net CashFlowfromOperations 760$ 845$ 640$ 797$ 425$ 545$ 540$ 538$ 617$ 465$ 565$ 643$ 608$ 600$
Investing Activities
Cashreceipts from
(enter positive amounts)Sale of property and equipment -$ -$ -$ -$ 500$ -$ -$ -$ 800$ -$ -$ -$ -$ 1,000$
Matured Investments 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$
Cashpaidfor
(enter negative amounts)Purchase of property and equipment -$ -$ 400$ -$ -$ -$ 800$ -$ 600$ -$ -$ -$ 500$ 200$
Purchase of investments 100$ 250$ 260$ 150$ 80$ 95$ 110$ 125$ 150$ 135$ 140$ 200$ 125$ 100$
Net CashFlowfromInvestingActivities 50-$ 200-$ 610-$ 100-$ 470$ 45-$ 860-$ 75-$ 100$ 85-$ 90-$ 150-$ 575-$ 750$
FinancingActivities
Cashreceipts from
(enter positive amounts)Increase in short termdebt 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$
Increase in long termdebt -$ -$ -$ -$ -$ -$ -$ -$ 50$ 50$ 50$ 70$ -$ -$
Increase in equity (proceeds fromowners) 50$ 50$ 100$ 80$ 90$ 70$ 55$ 45$ 85$ 70$ 95$ 100$ 50$ 40$
Cash paid for
(enter negative amounts)Repayment of loans 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$ 50$
Dividends 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$ 150$
Net CashFlowfromFinancing Activities 100-$ 100-$ 50-$ 70-$ 60-$ 80-$ 95-$ 105-$ 15-$ 30-$ 5-$ 20$ 100-$ 110-$
Net Increase inCash 610$ 545$ 20-$ 627$ 835$ 420$ 415-$ 358$ 702$ 350$ 470$ 513$ 67-$ 1,240$
Cash at End of Year 610$ 1,155$ 1,135$ 1,762$ 2,597$ 3,017$ 2,602$ 2,960$ 3,662$ 4,012$ 4,482$ 4,995$ 4,928$ 6,168$

BUSINESS PLAN 23
Sales Pipeline
The table for sales pipeline is given below;
Name of Customer Size of Deal Date PO
expected
Probability % of
Getting Sale
Kery $ 100 18-Apr 40%
Peter $ 80 28-Apr 80%
Rawn $ 130 15-Apr 70%
Smith $ 110 10-May 95%
Funding Requirements
In the beginning, the organization will need funds for marketing, staffing and other requirements.
The funding requirements are given below;
Start-up Funding Requirements Rent Deposit $ 550
Furniture & Fixtures $ 1,500
Equipment $ 1,000
Build out/ Renovations $ 800
Decorating, Painting and Re-
modelling $ 800
Installation of Fixtures &
Equipment $ 200
Starting Inventory $ 2,200
Legal and Other Professional Fees $ 1,000
License and Permits $ 300
Advertising and Promotion $ 800
Consulting $ 300
$ 9,450

BUSINESS PLAN 24
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BUSINESS PLAN 25
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BUSINESS PLAN 26
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BUSINESS PLAN 27
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BUSINESS PLAN 28
Appendices
Detailed Profit & Loss A/c
Profit and Loss Statement
Month Apr 18 Apr 19 Apr 20
Income
Sales
Sale of goods/services
$
5,000.00 $ 6,250.00
$
7,812.50
Sundry Income (e.g. Commission earned,
frachise fees etc.) $ - $ -
Etc.
$
500.00 $ 500.00
$
700.00
Total Sales
$
5,500.00 $ 6,750.00
$
8,512.50
Less Discounts/Commissions
Sales Discounts given $ 80.00 $ 100.00
$
125.00
Sales Commissions paid $ 50.00 $ 80.00 $ 90.00
Total Discounts/ Commissions
$
130.00 $ 180.00
$
215.00
Total Net Income
$
5,370.00 $ 6,570.00
$
8,297.50
Cost of Sales
Opening Stock $ - $ 100.00
$
125.00
Stock Purchased
$
2,000.00 $ 2,500.00
$
3,125.00
$
2,000.00 $ 2,600.00
$
3,250.00
Less Closing Stock
$
100.00 $ 125.00
$
156.25
Total Cost of Sales
$
1,900.00
$
2,475.00
$
3,093.75
Gross Profit
$
3,470.00 $ 4,095.00
$
5,203.75
Expenses
General & Administrative
Bank charges $ 50.00 $ 50.00 $ 50.00
Credit card commission $ 10.00 $ 30.00 $ 30.00
Consultant fees $ 35.00 $ 35.00 $ 35.00

BUSINESS PLAN 29
Office Supplies
$
100.00 $ 100.00
$
100.00
Business insurance
$
100.00 $ 100.00
$
100.00
Etc. $ - $ - $ -
Total General & Administrative
$
295.00 $ 315.00
$
315.00
Marketing & Promotional
Advertising
$
100.00 $ 100.00
$
100.00
Promotion - General $ 50.00 $ 50.00 $ 50.00
Promotion - Other $ - $ 50.00 $ 55.00
Etc. $ - $ 10.00 $ 11.00
Total Marketing & Promotional
$
150.00 $ 210.00
$
216.00
Operating Expenses
Newspapers & magazines $ 25.00 $ 25.00 $ 26.00
Parking/Taxis/Tolls
$
100.00 $ 105.00
$
110.25
Laundry/dry cleaning $ 80.00 $ 100.00
$
125.00
Cleaning & cleaning products $ 60.00 $ 75.00 $ 93.75
Sundry supplies $ 40.00 $ 50.00 $ 62.50
Equipment hire
$
250.00 $ 250.00
$
250.00
Etc. $ - $ - $ -
Total Operating Expenses
$
555.00 $ 605.00
$
667.50
Motor Vehicle Expenses
Fuel $ 50.00 $ 50.00 $ 50.00
Vehicle service costs $ 15.00 $ 15.00 $ 15.00
Tyres & other replacement costs $ 20.00 $ 20.00 $ 20.00
Insurance $ 10.00 $ 10.00 $ 10.00
Registrations $ - $ - $ -
Total Motor Vehicle Expenses $ 95.00 $ 95.00 $ 95.00
Website Expenses
Domain name registration $ 20.00 $ 20.00 $ 20.00
Hosting expenses $ 25.00 $ 25.00 $ 25.00
etc $ - $ - $ -
Total Website Expenses $ 45.00 $ 45.00 $ 45.00
Employment Expenses
Permanent $ - $ - $ -
Salaries/Wages
$
100.00 $ 125.00
$
156.25
PAYE $ 10.00 $ 12.50 $ 15.63
Superannuation $ 20.00 $ 25.00 $ 31.25
Other - Employee Benefits $ 20.00 $ 25.00 $ 31.25
Recruitment costs $ 15.00 $ 15.00 $ 15.00

BUSINESS PLAN 30
Total Perm. Employment Expenses
$
165.00 $ 202.50
$
249.38
Casual
Salaries/Wages $ 50.00 $ 80.00 $ 90.00
Recruitment costs $ - $ - $ -
Total Casual Employment Expenses $ 50.00 $ 80.00 $ 90.00
Workcover Insurance $ - $ - $ -
Total Employment Expenses
$
215.00 $ 282.50
$
339.38
Occupancy Costs
Electricity/Gas
$
250.00 $ 312.50
$
390.63
Telephones $ 50.00 $ 50.00 $ 50.00
Property Insurance $ 15.00 $ 15.00 $ 15.00
Rates $ 10.00 $ 10.00 $ 10.00
Rent
$
150.00 $ 150.00
$
150.00
Repair & maintenance $ 60.00 $ 60.00 $ 60.00
Waste removal $ 25.00 $ 25.00 $ 25.00
Water $ 25.00 $ 25.00 $ 25.00
Etc. $ - $ - $ -
Total Occupancy Costs
$
585.00 $ 647.50
$
725.63
Other Expenses
Machineries $ 50.00 $ 70.00 $ 70.00
Vehicles $ 20.00 $ 20.00 $ 20.00
Equipment $ 50.00 $ 70.00 $ 70.00
Total Other Expenses
$
120.00 $ 160.00
$
160.00
Total Expenses
$
1,800.00 $ 2,060.00
$
2,263.50
Net Profit / (Loss)
$
1,670.00 $ 2,035.00
$
2,940.25
Total Year to Date Net Profit / (Loss)
$
1,670.00 $ 3,705.00
$
6,645.25
Balance sheet Ratios:

BUSINESS PLAN 31
Balance Sheet Ratios
Current Ratio (Current Assets / Current Liabilities) 2.458333333 2.850931677 7.905982906
Quick Ratio ( Current Assets less inventory) / (Current Liabilities less bank overdraft) 2 4 10
Working Capital Funds (Current Assets Less Current Liabilities) 2,625 7,450 32,320
Leverage Ratio (Total Liabilities / Total Assets) 0.763819095 0.523046092 0.174967742
Debt to Equity Ratio (Total Liabilities / Total Shareholders Funds) 1.335676626 1.096638655 0.212073819
Profit and Loss Ratios
Gross Margin
(Gross Profit / Net Income)
0.64618
2
0.62328
8
0.62714
7
Net Margin
(Net Profit / Net Income)
0.31098
7
0.30974
1
0.35435
4
Mark Up
((Net Income Less Cost of Goods Sold) / (Cost of
Goods Sold)) x 100
1.82631
6
1.65454
5 1.68202
Break Even
( Expenses/((1-(Cost of Goods Sold/ Net Income))
2785.59
1
3305.05
5
3609.20
3

BUSINESS PLAN 32