Bake & Flake: Comprehensive Business Plan for a Gluten-Free Bakery

This business plan outlines the concept for 'Bake & Flake,' a gluten-free bakery venture proposed for Kuwait and the Middle East, targeting the health-conscious population with diabetes and obesity concerns. The plan details a comprehensive approach, including an executive summary, company overview, market analysis (emphasizing segmentation and the opportunity presented by the high obesity rates in Kuwait), marketing and sales strategies (including social media and delivery partnerships), management structure, and a financial plan. The bakery aims to offer a range of gluten-free products, customisation options, and additional services like wheelchair accessibility, dining, and delivery, with a focus on hygiene and competitive pricing to capture a significant share of the market and meet the needs of health-conscious consumers. The plan also includes a start-up summary with detailed financial requirements.

Business Plan

Table of Contents
1.0 Executive Summary...................................................................................................................1
2.0 Company Summary...................................................................................................................1
2.1 Company Ownership........................................................................................................1
2.2 Start-up Summary.............................................................................................................2
3.0 Business Description..................................................................................................................2
4.0 Market Analysis Summary........................................................................................................3
4.1 Market Segmentation........................................................................................................3
4.2 Target Market Segmentation Strategy..............................................................................5
4.3 Service Business Analysis................................................................................................6
4.4 Main Competitors.............................................................................................................6
5.0 Strategy and Implementation Summary.....................................................................................7
5.1 Marketing strategy............................................................................................................8
5.2 Sales Strategy...................................................................................................................9
5.2.1 Sales Forecast................................................................................................................9
5.2.2 Daily Revenue Forecast.................................................................................................9
6.0 Management Summary..............................................................................................................9
6.1 Management Team...........................................................................................................9
6.2 Management Team Gaps................................................................................................10
6.3 Personal Plan..................................................................................................................10
7.0 Financial Plan...........................................................................................................................10
REFERENCE.................................................................................................................................11

1.0 Executive Summary
The below mentioned business plan is based upon the concept of a bakery venture which would
be providing bakery offerings, especially sugar free and gluten free items for the people of
Kuwait and middle east. This idea has been proposed looking upon the large quantum of
population of this country affected by Diabetes and Obese. Thus, the venture seeks to tap the
health conscious state of people belonging to the location and thereby enhance the sales
prospects for the firm. This bakery would be offerings impeccable services like wheelchair
acceptance, dining facility, take away services, delivery via Uber Eats, free WiFi and many
more. The marketing of this venture would be done via platforms like Facebook, BlogSpot,
YouTube, Instagram, Pinterest and some others.
2.0 Company Summary
Bake & Flake would be establishing in Kuwait as the small scale bakery which will be
offering only gluten free products to its customers. Bakery will going to offer dining as well as
takeaway facility to its customers so that they can enjoy their food item according to their own
feasibility. Interior of the bakery would highly attractive and will clearly represent its agenda of
offering gluten free bakery items. Additional features of The Bake & Flake bakery would be
wheelchair acceptance, free WIFI, Outdoor seating area, availability of the parking and take
away facility. By taking into consideration health as well as choices of customers, the respective
owner of the bakery emphasizes on offering customised gluten free bakery items to its customers
in order to influence them to make purchase from the respective restaurant. Along with the
inclusion of gluten free concept the respective bakery owner also focuses on maintaining hygiene
level so that quality of products and services could be maintained. Here, economic pricing
strategy will be adopted by The Bake & Flake bakery in order to reach all type of customers
which will also maintain their sales performance after its establishment.
2.1 Company Ownership
The Bake & Flake bakery would be established by the Mr. XYZ who has already been
dealing in the bakery industry but now by considering the market of Kuwait and the middle east
the respective owner has planned to introduce a new bakery which would be mainly
concentrating on offering the gluten free bakery items that could satisfy the customers at
extensive level as they can easily enjoy their food without comprising with the health condition.
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The Bake & Flake bakery would be started by the sole proprietor who will handle all managerial
activities at own level. Operational and in store activity of the bakery would be managed by the
hired experienced management team that will tackle all of the activities and also serve the
customers according to their needs.
2.2 Start-up Summary
In order to start gluten free bakery there will be the huge requirement of the capital
investment. For this, the respective owner will take a loan from the bank that would used to bring
cash within the bakery and all the activities related to the establishment of the bakery will be
performed with the loan amount only.
Start up plan:
Requirements Amount($)
Start up expenses
Licensing charges 1000
Manpower 1500
Kitchen equipments 2000
Marketing cost 150
Display area 200
Staff uniform cost 500
Other expenses 800
Insurance 1000
Furnishing 500
2

Legal charges 400
Total expenses 8050
Start up assets needed
Cash balance 500
Opening stock 800
Other current assets 150
Total current assets 1450
Long term assets 0
Total assets 1450
Total requirement 9500
Funding
Investor 1 2000
Investor 2 1500
Total investment 3500
Current liabilities
Accounts payable 0
Current borrowings 0
Others 0
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Total current liabilities 0
Long term liabilities 0
Total liabilities 0
Loss at start up 8050
Total capital 1450
Total capital and liabilities 1450
3.0 Business Description
Kuwait and the Middle East is determined as the place whose localise citizens are highly
obese and faces other health related problems. The main reason behind this is the non healthy
lifestyle of people as they are not consuming healthy especially the food which is influencing
their health in terms of excessive weight that ultimately generates huge health issues in the near
future. By considering this in the detailed manner, the Bake & Flake bakery will be introduced in
the Kuwait as it has been seen that the current conditions of the market directly emerges
opportunity for this gluten free bakery which will also satisfy the needs of customers as they
would not required to compromise with the taste while taking care of their health. The unique
concept of gluten free bakery item along with the customisation will support the business idea
and enhance their profitability in the rightful manner. In simple words, it can be said that The
Bake & Flake bakery will be the solution for the food lover especially bakery one in the Kuwait
as they will be able to approach their favourite bakery item within their own area. The Bake &
Flake bakery would be mainly targeting health conscious people who do not wants to
compromise with the taste. Also, target would also be based on the individual who loves to
intake customised food so that exclude the ingredients which does not fits to their own
preferences. The Bake & Flake bakery will be opened from 9:00 am to 10 Pm for customers
however the operational hours for the same bakery would initiate from the 7Am to 11:30 pm.
Along with the bakery item such as Bread, rolls & buns, cakes & cheesecakes, muffins & cup
cakes, cookies & biscuit, doughnuts, sandwiches & wraps, dough & butter and others, The Bake
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& Flake bakery will also include snacks and quick meals so that customers can easily find out
best food according to their core requirement and enjoy the food with gluten free options. In
order to satisfy the customers in more appropriate form, the restaurant will also be providing
takeaway facilities to its core customers in order to maximise their sales by providing extra
facilities to the customers. In addition to this, there will be formal tie up with the UBER eats so
that food items of The Bake & Flake bakery can be delivered to its customers.
4.0 Market Analysis Summary
The core concept of gluten free bakery items has been emerged with the deep market study
conducted on Kuwait in terms of healthiness. As per the information stated by food security
index, it has been analysed that Kuwait is acknowledged as the world’s highest percentage in of
obese. It has also been determined that around 42.8% of the total population in Kuwait is obese
(World's most obese nation? Kuwait (and the next four are Middle Eastern), 2014). After
conducting study on finding out reason behind this, it has been analysed that because of the
higher combination of overeating energy dense, sedentary lifestyle and high fat foods people of
Kuwait are moving forward towards the obesity. By taking this as the opportunity concept of
gluten free products has been emerged as the people are becoming more conscious towards their
demand health but still they are looking for the food which can provide best taste. It has also
been analysed that increasing incidence of celiac diseases in developed economies is placing
positive and influential impact over the sales performance of gluten free product in Kuwait.
Along with this, it has also been seen that gluten free bakery products are considered as the most
digestible food that helps individuals in enhancing their immunity system. This clearly depicts
that bakery which offers gluten free food products have vaster scope in Kuwait as it’s localise
people are becoming more conscious towards their health but still they believes in acquiring tasty
bakery food. Along with this, suitable market scenario and acceptance of people towards the
gluten free products simply enhances chances of success within the same marketplace. This is so
because, additional feature of customization in bakery products in bulk order directly develops
positive market base for the bakery which would definitely enhance sales performance of the
bakery in Kuwait after its launch.
4.1 Market Segmentation
Segmentation, targeting and positioning are the three most important elements of marketing.
These 3 together constitute the development of a strategic management model named STP. This
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model is widely used by existing or upcoming organisations with a view to select the target
audience in alignment with the offerings of the corporation. In this relation, the entrepreneur of
The Bake & Flake Bakery has made use of STP model to select the target market for its sugar
free and gluten free bakery products.
Segmentation: It is the process of dividing the market place into targetable segments. In
this relation, it is inferred that segmentation of market is basically in accordance with one or
more of the 4 bases, namely, demographic, geographic, psychographic and behavioural. These
are explained in a detailed manner as follows:-
Demographics: Hereby, the segmentation of market place takes place in accordance with the
attribute or characteristic like income, education, marital status, age, occupation, ethnicity,
country of origin, nationality etc.
Psychographics: Hereby, the market place is divided into targetable segments in accordance with
the aspects such as hobbies, lifestyle, attitude, personality trait and pattern of people belonging to
a particular location.
Behavioural: This is a type of market segmentation base whereby the division of market place
takes place in accordance with the behavioural conduct as well as pattern of consumers like
brand loyalty, benefit sought out of consumption, purchase behavioural pattern, reaction to
channels of marketing or distribution used by the company etc.
Geographic: Herein, the division of market place into manageable and targetable sections is
done in accordance with the facets such as country, city, and state and so on.
On the basis of the study conducted upon the different bases in accordance with which
segmentation is executed by an organisation, it can be decided that segmentation of market for
The Bake & Flake Bakery would be done as per demographic and behavioural segmentation.
Targeting: This is the process concerned with selecting one or more segments to be
targeted for the products and services of the company. With respect to The Bake & Flake
Bakery, it has been acknowledged that this bakery would be targeting people belonging to age
group of 18 to 48 years and the segment of population which is health conscious. Both these
segments have been selected for targeting looking upon their likelihood for bakery items along
with their preference for healthy consumption.
Positioning: This is referred to as the process of placing the goods and services offered by
an organisation within the target audience. In this regard, it has been acknowledged that the
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positioning of sugar free and gluten free products within the selected target segments would take
place by two main ways. One of the ways is identified as being social media marketing as this is
an effective way of creating awareness among the audience. The other way is by leveraging
partnerships with Uber Eats which would deliver its take away items to customers' homes.
Potential customers Growth
rate
2020 2021 2022 2023 2024 CAGR
Young age group 10 10000 11000 12100 13310 14641 10%
Tourists 12 5000 5600 6272 7024 7867 12%
Students 18 8000 9440 11139 13144 15510 18%
Others 5 1000 1050 1102 1157 1215 5%
Total 45 24000 27090 30613 34635 39233 45
4.2 Target Market Segmentation Strategy
Marketing is regarded as the most crucial facet for each and every organisation operating as a
part of the economy. Marketing is especially important for those entities which are upcoming
and have been proposed to emerge in near future. It tends to act as a road map through which an
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entity seeks to correspond with the audience existing within the confines of market place. In this
relation, it has been acknowledged that laying down sound and effective marketing strategy is
one of the most crucial aims of an entity. This is important as with the help of marketing, an
entity is able to provide information associated with the venture as well as its offerings to the
public. When the individuals get knowledge of a new entity or business offerings, interest tends
to get generated within them to know more about the firm as well as the products and services
provided by it. Thus the corporations aim to stipulate a strategy which can appeal to the public at
large and pull their attention towards the venture. In response to this, the potential consumers for
the business offerings tend to get lured to gain knowledge about the quality and pricing of the
products and services provided by the venture. Looking upon this, the entrepreneur of The Bake
& Flake Bakery has recognised the significance of selecting sound channels and media for
marketing so that attention of public can be substantially gained and kept invested into the entity
for a considerably long period of time. This upcoming bakery would be offering high quality
offerings in order to instil a sense of loyalty towards the individuals who tend to visit the online
or offline mode of organisation to make a purchase of the concerned business offerings. The
marketing activities and plans have thus been crafted by the team of personnel having strong
marketing background professionally as well as academically which can be applied to yield
positive results for the venture.
To effectively carry out the marketing activities for reaching out to selected target audience, The
Bake & Flake Bakery would leverage the use of digital marketing on a wide level. Hereby, the
main strategies that would be used in digital marketing by the entity would be social media
marketing, website marketing, content creation, blogs etc. The Bake & Flake Bakery has decided
to make use of the most widely used and renowned platforms such as Facebook, Instagram,
BlogSpot, YouTube etc. to reach to the public at large and inform them about the unique
business offerings which are aligned with the demands and requirements of people prevailing
thereby. In addition to this, Partnership with Uber Eats is being looked upon as the strategy that
would provide assistance to the venture in delivering the offerings made by the bakery to the
public demanding it on the go. Thus, before mentioned are some of the ways through which The
Bake & Flake Bakery would promote the business and build its large customer base that exhibits
nothing other than loyalty towards the firm.
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4.3 Service Business Analysis
It has been decided by the entrepreneur of The Bake & Flake Bakery to keep the outlet open
from 11am to 9pm. This is the time when individuals, families and peer groups like to visit the
food and beverage outlets either to experience the dining services or take away the offerings
developed by this entity. The service package of this upcoming bakery would be impeccable
with a larger base of employees working than required. This has been proposed so that customers
do not have to wait for their dining or take away orders. Further, the sugar free and gluten free
offerings of The Bake & Flake Bakery are the star attraction of this entity. As a result of this, the
venture would be able to capture the attention of large base of audience and meet their
expectations by providing them with timely and almost flawless services.
4.4 Main Competitors
The main motive of The Bake & Flake bakery is to emphasise on delivering higher quality
products to its customers along with the customisation services in order to gain competitive edge
within the same marketplace in rightful manner. It has also been seen that Kuwait is already
having lots of bakeries within the same market place due to higher obese percent. This simply
creates requirement on emphasising more on providing their quality of services to the customers
along with the customization in order to influence their interest towards them and maximise their
sales performance as well as profitability in rightful manner. In order to enhance approach of the
bakery on the customer, The Bake & Flake bakery will be having tie up with the Uber Eats
which would be delivering all the ordered gluten free bakery items to its customers. In addition
to this, in order to meet the expectation of the customers, the main focus of The Bake & Flake
bakery is to deliver quick services to the customers so that they can develop better image among
the customers. In addition to this, before introducing gluten free bakery products with the quick
services to the customers, management of The Bake & Flake bakery will initial conduct a market
research so that they can develop their understanding towards its existing competitors within the
Kuwait along with their core strength as well as weaknesses. This would definitely provide
opportunity to the owner of The Bake & Flake bakery to develop best strategy with which they
can easily gain leverage of their core weaknesses and grab attention of the customers by simply
offering them high quality gluten free bakery item as well as snacks along with the customization
facility as the additional feature. As a result, this would definitely open up vast opportunity for
The Bake & Flake bakery. With this market analysis, main competitor determined for the
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respective bakery are The Breakfast Club, Jamawar Crowne Plaza Kuwait, Maki, Burj Jassem,
Pepper - Steak House, Salt Restaurant, Olio, Crowne Plaza Kuwait Rib Eye, Crowne Plaza
Kuwait Rib Eye, The Cheesecake Factory, Mais Alghanim etc. All of these are having good
market presence in Kuwait and could give higher competition to The Bake & Flake bakery while
establishing their bakery in the pre planned zone.
5.0 Strategy and Implementation Summary
For establishing successful in Kuwait, the main focus of top management of The Bake &
Flake bakery is to emphasise on developing effective strategy through which they can easily
establish their business and develop positive image among the customers and influence them to
make purchase from the same company in rightful manner. With reference to The Bake & Flake
bakery, the respective management team of the company has developed several strategies
through which they can easily attain success at the same marketplace. The first and foremost
strategy developed by this company is to acquire digital media of marketing especially social
media in order to aware maximum number of customers towards them in appropriate manner.
Here it is important for the management team of The Bake & Flake bakery to carry on some
social media campaigns on popular sites like facebook, Instagram, Twitter, Pinterest and others n
order to grab the attention of maximum number of the customers towards their gluten free bakery
that would consider health of customers along with their taste and also provide them opportunity
to bifurcate other ingredients too with the help of customisation facility in order to have to taste
of the bakery item as per their own expectation.
At next, the respective management of The Bake & Flake bakery will emphasise on
provide some discount and other kind of offers to its customers so that they can easily influence
their potential customers as well as other towards them in rightful manner. Discounts are seen as
the best activity which influences interest of customers towards the particular product or service.
The bakery will also initiate some loyalty program for its customers as they can easily develop
interest of the customers to become regular customer of the bakery with the motive of enhancing
their loyalty point which could be further redeemed by them in the near future. It is estimated
that loyalty program would definitely boost up sales performance of bakery as it was easier for
them to grab attention of maximum number of customer towards them and also influence them to
make purchase from the same bakery for longer period of time. The last but not the least strategy
adopted by The Bake & Flake bakery will hiring expertise and conducting few training programs
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for them so that they can easily develop their hired bakery workforce as per Kuwait culture
which will further help them out in serving the customers in such a manner that would satisfy
them in extensive form.
5.1 Marketing strategy
Marketing seems to look most essential part of every business as it enhances awareness
of customers as well as other people about the current offering of the company. Usage of
appropriate marketing tactic helps company in maximising their sales performance and
developing positive brand image of company at market place. This also results in the
accomplishment of sales targets and attainment of higher profitability. The respective
management team of The Bake & Flake bakery will emphasise on making use of social media
marketing strategy with the motive of covering maximum number of customers towards them
who are conscious about their health and are highly interested in eating gluten free product.
Social media marketing will help The Bake & Flake bakery in covering maximum number of
people and developing their understanding about the gluten free bakery products, importance
gluten free food for people especially Kuwait one as they are having higher percentage of obese
across the world. Along with this, social media will also enhance awareness of customers about
the value added feature of bakery that is customisation of the bakery products over bulk orders.
In addition to this, grand opening of the restaurant has also been planned by owner as it will
directly provide The Bake & Flake bakery opportunity to come in contact will the localise people
and will also be published in the localise newspaper as well as displayed in the news channel that
will enhance popularity of the bakery with the unique concept among Kuwait.
5.2 Sales Strategy
Sales projection is done below in such manner:
5.2.1 Sales Forecast
Estimation for next four years:
Sales forecast 2020 2021 2022 2023
Bakery items (Sugar free biscuits) 50000 60000 75000 80000
Beverage sales 20000 28000 32000 35000
Other food products 15000 25000 32000 40000
Total sales 85000 113000 139000 175000
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Cost of sales
Bakery items 18000 25000 35000 40000
Beverage sales 8000 18000 22000 28000
Other food products 5000 19000 25000 30000
Total expenses 31000 62000 82000 98000
5.2.2 Daily Revenue Forecast
Daily revenue breakdown Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Number of bakery products
sales 10 15 20 25 30 25 50
Price of each bakery item 8 8 8 8 8 8
Total sales of bakery products 80 120 160 200 240 0 400
Total units of beverage units
sales 12 18 25 30 35 40 55
Price of each beverage unit 35 35 35 35 35 35 35
Total sales of beverage items 420 630 875 1050 1225 1400 1925
Total units of other food
products sales 20 25 32 35 40 55 60
Price of each food product 25 25 25 25 25 25 25
Total sales of food product 500 625 800 875 1000 1375 1500
Total revenues 1000 1375 1835 2125 2465 2775 3825
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6.0 Management Summary
Management team plays an essential role in the growth of the company as it is responsible
for handling all business activity at higher. They are simply authorised to take decisions for the
company which further provides them support in accomplishing business objectives in the pre
planned manner. Management team in businesses analysis the market situation and the current
positioning of the company so that required modification can be brought in the working
practices. Apart from this work of management team is not only limited to the organisational
success and placing efforts towards the customers so that they can get satisfied but at the same
time, the respective team is highly dedicated towards the safety and security of the employees so
that they can execute their assigned work within the company in rightful manner. In order to
handle workforce, the main focus of management team is to provide friendly and flexible
working environment where employees can easily work according to their own comfortable level
and provide maximum profits to the same company by simply attaining their determined goals
and objectives.
6.1 Management Team
The overall management of The Bake & Flake bakery will be handled by the owner of the
bakery as the bakery is small in size and would not be able to afford more than one person in
their management zone. The respective person is highly skilled and owns capability of handling
the business and taking rightful decision towards it by simply analysing the market scenario and
core requirement of their own business. In addition to this, the owner will also maintain the sales
record of the bakery and handle all the accounts based activities. Apart from the managerial, the
respective The Bake & Flake bakery will be having two operation heads and three workers.
Here, role of one operational head is to conduct effective marketing and promotional events in
Kuwait and periphery with the usage of advance tools so that they can attract maximum number
of customers towards them and boost up sales performance of the company. Along with this, the
person would also be responsible for handling PR of the bakery thus they can have strong
relation in Kuwait and manage their work as per their own planning. On the order hand, another
operational head will be responsible for handling in store sales and other activities which is being
executed within the bakery. The same person will also be working as the HR head as he will
provide training to the workers so that they can communicate well with customers and perform
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their work in rightful manner. Here, the role of the second operational head is to ensure that
workers are performing their assigned work in instructed manner only and serving customers as
per their core retirements.
6.2 Management Team Gaps
The overall finalised management team is highly effective but still it has been analysed that
The Bake & Flake bakery must have one accountant as well as separate sales head too so that the
things could get managed in the systematic manner. Even though, the owner is highly compatible
in handling all management work but still they require good account so that the little bit scope of
finance mismanagement cannot take place. Along with this, this department will be able to
manage finances in appropriate manner and help the bakery by using it in effective manner. This
can be seen as the main management team gap.
6.3 Personal Plan
Burden rate = 15%
Day Position Quantity Rate Average
hours
Sub
total
Burden Total
Monday Cook 3 4 8 96
Waiter 4 3 9 108
Accountant 2 5 6 60
Security
guard
2 3 9 54
Staff cost
per
Monday
318 47.7 365.7
Tuesday Cook 2 4.5 7 63
Waiter 3 2 8 48
Accountant 1 5 6 30
Security
guard
2 3 9 54
195 29.25 224.25
Wednesday Cook 3 5 7 105
Waiter 3 3 8 72
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Accountant 2 5 7 70
Security
guard
2 2 9 36
283 42.45 325.45
Thursday Cook 4 4 7 112
Waiter 5 3 8 120
Accountant 2 6 6 72
Security
guard
2 2 9 36
340 51 391
Friday Cook 4 5 9 180
Waiter 3 2 10 60
Accountant 2 3 8 48
Security
guard
2 2 10 40
328 49.2 377.2
Saturday Cook 5 4 8 160
Waiter 4 3 9 108
Accountant 2 5 8 80
Security
guard
3 3 9 81
429 64.35 493.35
Sunday Cook 5 6 10 300
Waiter 5 4 12 240
Accountant 2 6 10 120
Security
guard
3 4 12 144
804 120.6 924.6
($)2697 ($)404.55 ($)3101.55
Salaried staff:
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Position Level Salary Yearly($) Weekly($) burden($) Total($)
Manager 1 General
manager
72000 1385 208 1592
Manager 2 General
manager
60000 1154 173 1327
Manager 3 Branch
manager
55000 1058 159 1216
Manager 4 Marketing
manager
50000 962 144 1106
Manager 5 Sales
manager
60000 1154 173 1327
Manager 6 Assistant
manager
42000 808 121 929
6519 978 7497
7.0 Financial Plan
7.1 Assumptions
7.2 Break even analysis:
Fixed cost= 50000
Variable cost= 10000
Sales= 35000
Breakeven point= Fixed cost/contribution
= 50000/25000
= 2000 units
PV ratio= Contribution/sales*100
= 25000/35000*100
= 71.42%
BEP in sales= Fixed cost/PV ratio
= 50000/71.42%
= 70008
7.3 Projected profit and loss account:
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Particulars 2020
($)
2021($) 2022($) 2023($)
17

Sales 85000 113000 139000 175000
Less: cost of goods sold 31000 62000 82000 98000
Gross profit 54000 51000 57000 77000
Less: Operating expenses 2163 1330 1113 1092
Licensing charges 1000 - - -
Manpower 700 800 650 500
Kitchen equipments 200 250 300 500
Marketing cost 150 200 100 50
Display area 20 25 10 5
Staff uniform cost 20 15 20 10
Other expenses 10 10 10 10
Insurance 25 20 15 10
Furnishing 18 10 8 7
Legal charges 20 - - -
Profit before tax and interest 51837 49670 55887 75908
Less: Interest expenses 1500 1500 1500 1500
Profit after interest and before tax 50337 48170 54387 74408
Less: Tax 7550.55 7225.5 8158.05 11161.2
Profit after tax and depreciation 42786.5 40944.5 46229 63246.8
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Projected cash flow:
Category Pre Start Up Estimate Month 1 Month 2 Month 3
Cash on Hand $ 500.00 $ 700.00 $ 800.00 $ 1,200
Cash Receipts
Cash Sales $ 1,500.00 $ 4,000.00 $ 4,000.00 $ 3,515
Collections from credit accounts $ 500.00 $ 700.00 $ 600.00 $ 1,500
Cash from Loans or other outside sources $ 1,000.00 $ 800.00 $ 450.00 $ 450
TOTAL CASH RECEIPTS $ 3,000.00 $ 5,500.00 $ 5,050.00 $ 5,465.
Total cash available $ 3,500.00 $ 6,200.00 $ 5,850.00 $ 6,665.
Cash Paid Out
Licensing charges $ 450.00 $ 200.00 $ 120.00 $ 140
Manpower $ 100.00 $ 120.00 $ 100.00 $ 80
Kitchen equipments $ 100.00 $ 200.00 $ 100.00 $ 120
Marketing cost $ 90.00 $ 50.00 $ 52.00 $ 42
Display area $ 10.00 $ 10.00 $ 20.00 $ 20
Staff uniform cost $ 10.00 $ 20.00 $ 20.00 $ 10
Other expenses $ 12.00 $ 15.00 $ 15.00 $ 17
Insurance $ 8.00 $ 7.00 $ 8.00 $ 9
Furnishing $ 200.00
Legal charges $ 25.00 $ 25.00 $ 25.00 $ 25
Licensing charges $ 10.00 $ 12.00 $ 18.00 $ 17
SUBTOTAL $ 1,015.00 $ 659.00 $ 478.00 $ 480
Loan Principal Payment $ 1,000.00 $ 1,200.00 $ 1,800.00 $ 1,400
Capital Purchase $ 425.00 $ 200.00 $ 250.00 $ 140
Other Start Up Costs $ 20.00 $ 10.00 $ 5.00 $ 4
Reserve and/or escrow
Other Withdrawals
Total Cash Paid Out $ 2,460.00 $ 2,069.00 $ 2,533.00 $ 2,024.
Cash Position $ 1,040.00 $ 4,131.00 $ 3,317.00 $ 4,641
7.5 Projected balance sheet
ASSETS Year 1
Year 2
(Projected)
Year 3
(Projected)
Current Assets
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Cash in Bank
$
500.00
$
800.00
$
1,000.00
Accounts Receivable
$
200.00
$
200.00
$
200.00
Inventory
$
100.00
$
150.00
$
250.00
Prepaid Expenses
$
50.00
$
90.00
$
140.00
Deposits
$
1,000.00
$
1,200.00
$
2,000.00
Other current assets
$
800.00
$
700.00
$
600.00
TOTAL CURRENT ASSETS
$
2,650.00
$
3,140.00
$
4,190.00
FIXED ASSETS
Machinery & Equipment
$
8,000.00
$
9,000.00
$
10,000.00
LESS: Accumulated Depreciation - Machinery
& Equipment
$
400.00
$
600.00
$
800.00
Furniture & Fixtures
$
12,000.00
$
15,000.00
$
25,000.00
LESS: Accumulated Depreciation - Furniture &
Fixtures
$
1,000.00
$
1,200.00
$
1,400.00
Leaseholder Improvements
$
15,000.00
$
18,000.00
$
22,000.00
LESS: Accumulated Depreciation - Leaseholder
Improvements
$
1,000.00
$
2,500.00
$
3,500.00
Land & Buildings
$
50,000.00
$
50,000.00
$
50,000.00
LESS: Accumulated Depreciation - Land &
Buildings
$
2,000.00
$
2,000.00
$
2,000.00
Other Fixed Assets
$
800.00
$
1,000.00
$
1,200.00
LESS: Accumulated Depreciation - Other Fixed
Assets
$
100.00
$
100.00
$
100.00
TOTAL FIXED ASSETS (net of depreciation)
$
81,300.00
$
86,600.00
$
100,400.00
OTHER ASSETS
Intangibles
$
1,000.00
$
1,200.00
$
1,500.00
Other
$
200.00
$
500.00
$
700.00
TOTAL OTHER ASSETS $ $ $
20

1,200.00 1,700.00 2,200.00
TOTAL ASSETS
$
85,150.00
$
91,440.00
$
106,790.00
LIABILITIES & EQUITIES
Current Liabilities
Accounts Payable
$
150.00
$
350.00
$
150.00
Interest Payable
$
100.00
$
80.00
$
80.00
Taxes Payable
$
20.00
$
25.00
$
30.00
Short Term Notes (due in 1 year)
$
15.00
$
18.00
$
17.00
Current Part, Long Term Debt
$
20.00
$
25.00
$
20.00
TOTAL CURRENT LIABILITIES
$
305.00
$
498.00
$
297.00
Long Term Debt
Bank Loans Payable
$
15,000.00
$
20,000.00
$
25,000.00
Notes Payable to Stockholders
$
20,000.00
$
20,000.00
$
20,000.00
LESS: Short Term Portion
$
2,000.00
$
1,000.00
$
1,200.00
Other Long-Term Debt
$
1,450.00
$
850.00
$
1,500.00
TOTAL LONG-TERM DEBT
$
38,450.00
$
41,850.00
$
47,700.00
TOTAL LIABILITIES
$
38,755.00
$
42,348.00
$
47,997.00
Owner's Equity
Common Stock
$
20,000.00
$
25,000.00
$
30,000.00
Retained Earnings
$
27,000.00
$
34,000.00
$
29,000.00
TOTAL OWNER'S EQUITY
$
46,395.00
$
49,092.00
$
58,793.00
TOTAL LIABILITIES & EQUITIES
$
85,150.00
$
91,440.00
$
106,790.00
21

7.6 Ratios
2020 2021 2022
Profitability ratio
Gross margin 63.52941 45.13274 41.00719
Net margin 50.33706 36.23407 33.25827
Liquidity ratio
Current ratio 0.5 0.698692 0.677752
Quick ratio 0.498831 0.697588 0.67601
Efficiency ratio
Inventory turnover 310 413.3333 328
Assets turnover 1.99 1.19 1.43
Accounts receivable turnover ratio 425 565 695
Accounts payable turnover ratio 566.67 322.86 926.67
22

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