Boen's Cafe

Boens Cafe

Boens CafeJl. Surya Sumantri

Bandung, Jawa Barat. [email protected]

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___________________Date

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3.0 Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94.3 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

4.3.1 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115.2 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115.3 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

5.3.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125.4 Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

5.4.1 Milestone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157.1 Start-up Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157.2 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167.3 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177.4 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177.5 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207.6 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217.7 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Table of Contents

1.0 Executive Summary

Boen's Cafe is a cafe which providing foods and beverage for the circle of youth

Boen's Cafe also give facility and required by youth.

Boen's Cafe differ from the other cafe which have place and location which designed atmosphere in such a manner so that draw attention youth

Boen's Cafe's using the community support program is instituting, arrangements will be made to provide high school, college campus, or a corporate campus. And, for every cup or baked good sold, a portion is returned to the high school or college. It becomes a tremendous, painless way for the institution to gain a financial reward while providing a pleasant and fulfilling benefit to their youth and family.

Boen's Cafe will focus on two markets:

Boen's focuses on local markets, small business and home office, special focus on the Christian Community

The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment with Gospel and Instrumental Song

Captive Consumers would include those who are tethered to a campus environment, or in a restricted entry environment that does not allow free movement to and from. Examples would include high school and college campuses, where there is limited time between classes, and corporate campuses where the same time constraints are involved, but regarding meetings and project deadlines, and special events--such as birthday, fairs and festivals--where there is an admission price to enter the gate, but exiting would mean another admission fee, or where refreshments are an integral part of the festivities.

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$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

FY 2007 FY 2008 FY 2009

Sales

Gross Margin

Net Profit

Highlights

1.1 Objectives

The Objective of Boens Cafe is as following:

Becoming center of cafe presenting satisfying service which fulfill customer expectation and requirement. .

Becoming first target of the customer when they searching a cafe Becoming center of cafe which provide everything customer want to Gross Margin of 45% or more. Net After-tax Profit above 15% of Sales.

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1.2 Mission

Providing service for customer, giving expected satisfaction and wanted by cutomer obligingly.

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1.3 Keys to Success

Keys To Successful :

The greatest locations - visibility, high traffic pattern, convenient access. The best products - freshest coffee beans, cleanest equipment, premium serving

containers, consistent flavor. The friendliest servers - cheerful, skilled, professional, articulate. The finest reputation - word-of-mouth advertising, promotion of our community mission

of charitable giving.

2.0 Company Summary

Boen's Cafe is a cafe which providing foods and beverage for the circle of youth Boen's Cafe also give facility and required by youth. Cafe Boen's differ from the other cafe which have place and location which designed

atmosphere in such a manner so that draw attention youth

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2.1 Company Ownership

Boen's Cafe owned by Yohanes Erubun and Family.

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2.2 Start-up Summary

For our pre-perational, we estimate that the expense is around $4,000. And for the other expense is $300

Table: Start-up

Start-up

Requirements

Start-up ExpensesLegal $250Stationery etc. $250Insurance $500Rent $2,500Computer $500Others $300Total Start-up Expenses $4,300

Start-up AssetsCash Required $30,000Start-up Inventory $35,000Other Current Assets $0Long-term Assets $75,000Total Assets $140,000

Total Requirements $144,300

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$120,000

$140,000

Expenses Assets Investment Loans

Start-up

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3.0 Products and Services

Boen's Cafe providing the food and beverage as yielded product and also service which on the market is friendly employe, comfortable and atmosphere.

Boen's Cafe offers its patrons the finest hot and cold beverages, specializing in specialty coffees, blended teas, and other custom drinks without alcohol.

In addition, Boen's Cafe will offer soft drinks, fresh-baked pastries and other confections. For Seasonally, Boen's Cafe will add beverages such as hot apple cider, hot chocolate,

frozen coffees, and more.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2006 2007 2008 2009 2010

Youth

Family

Market Analysis (Bar)

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4.0 Market Analysis Summary

The Boen's Cafe will focus on two markets:

Boen's focuses on local markets, small business and home office, with special focus on the Christian Community


4.1 Market Segmentation

The Boen's Cafe will focus on two markets:

Boen's focuses on local markets, small business and home office, special focus on the Christian Community


Captive Consumers would include those who are tethered to a campus environment, or in a restricted entry environment that does not allow free movement to and from. Examples would include high school and college campuses, where there is limited time between classes, and corporate campuses where the same time constraints are involved, but regarding meetings and project deadlines, and special events--such as birthday, fairs and festivals--where there is an admission price to enter the gate, but exiting would mean another admission fee, or where refreshments are an integral part of the festivities.

Table: Market Analysis

Market Analysis2006 2007 2008 2009 2010

Potential Customers Growth CAGRYouth 75% 520 910 1,593 2,788 4,879 75.02%Family 25% 280 350 438 548 685 25.06%Total 62.40% 800 1,260 2,031 3,336 5,564 62.40%

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Youth

Family

Market Analysis (Pie)

4.2 Target Market Segment Strategy

Boen's Cafe's using the community support program is instituting, arrangements will be made to provide high school, college campus, or a corporate campus. And, for every cup or baked good sold, a portion is returned to the high school or college. It becomes a tremendous, painless way for the institution to gain a financial reward while providing a pleasant and fulfilling benefit to their youth and family.

We have percentage expectation is : Youth is 75% and Family 25%

4.3 Service Business Analysis

Boen's Cafe gives the best service and product to make satisfaction customer


The greatest locations - visibility, high traffic pattern, convenient access. The best products - freshest coffee beans, cleanest equipment, premium serving

containers, consistent flavor. The friendliest servers - cheerful, skilled, professional, articulate. The finest reputation - word-of-mouth advertising, promotion of our community mission

of charitable giving.

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4.3.1 Competition and Buying Patterns

There are four general competitors in Boen's Cafe. They are the national specialty beverage chains, such as Starbucks and Embassy, local coffee houses--or cafes--with an established clientele and a quality product, fast food restaurants, and convenience stores. There is a dramatic distinction among the patrons of each of these outlets.

Patrons to a Starbucks, or to one of the local cafes, are looking for the "experience" of the coffee house. They want the ability to "design" their coffee, smell the fresh pastry, listen to the soothing Italian music, and read the local paper or visit with an acquaintance. It is a relaxing, slow paced environment.

Patrons of the fast food restaurants (example : Chinese food) or the convenience stores are just the opposite. They have no time for idle chatter and are willing to over-pay for whatever beverage the machine can spit out, as long as it's quick. They pay for their gas and they are back on the road to work. Although they have the desire and good taste to know good from bad, time is more valuable to them.

Competitors to the Mobile Cafes on campuses would include fast food restaurants--assuming they are close enough to the consumer that they can get there and back in the minimal allotted time, vending machines, and company or school cafeterias. The consumers in this environment are looking for a quick, convenient, fairly priced, quality refreshment that will allow them to purchase the product and return to work, class, or other activity.

Competitors to the Mobile Cafes at events such as festivals and fairs would include all the other vendors who are licensed to sell refreshments. Attendees to such events expect to pay a premium price for a quality product.

5.0 Strategy and Implementation Summary

Boen's Cafe will penetrate the commuter and captive consumer markets by deploying and improving and with accessible locations and also making innovation and make a customer satisfy, enjoy, and comfort being in Boen's Cafe. With a good voew and balmy place.

Boen's Cafe has identified its market as busy, mobile people whose time is already at a premium, but desire a refreshing, high quality beverage or baked item while commuting to or from work or school.

In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as positive public and media supportto be a customer's choice.

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5.1 Competitive Edge

Boen's Cafe competitive Edge is :

Boen's Cafe competitive edge is simple. Boen's Cafe provides a high quality product at a competitive price in local share competitive.

Boen's Cafe provide a convinience atmosphere with a good and nice view Boen's Cafe oriented to customer satisfaction

5.2 Marketing Strategy

Boen's Cafe will be implementing a low cost advertising/promotion campaign which could involve drive-time radio, but not much more.

Boen's Cafe will rely on building relationships with schools, charities and corporations to provide significant free publicity because of its community support program. By giving charitable contributions to these institutions, they will get the word out to their students/faculty/employees/partners about Boen's Cafe.

Word of mouth has always proven to be the greatest advertising program a company can instill. In addition, the media will be more than willing to promote the charitable aspects of Boen's Cafe and provide the opportunity for more exposure every time Boen's Cafe writes a check to another organization.

5.3 Sales Strategy

Boen's cafe have a sales strategic to develop the market share with following :

There will be several sales strategies put into place, including posting specials on high-profit items at the drive-up window.

The Baristas will also hand out free drink coupons to those who have purchased a certain number of cups or something similar.

Boen's Cafe will also develop window sales techniques such as the Baristas asking if the customer would like a fresh-baked item with their coffee.

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5.3.1 Sales Forecast

Boen's Cafe give sales promotion with growth up to 10 % per month. While selling expense is the same estimate every year. For the next 2 years Boen's Cafe have estimate value which is equal to first year

Table: Sales Forecast

Sales ForecastFY 2007 FY 2008 FY 2009

Unit SalesFoods 70,000 105,000 140,000Beverages 90,000 135,000 180,000Total Unit Sales 160,000 240,000 320,000

Unit Prices FY 2007 FY 2008 FY 2009Foods $1.00 $1.00 $1.00Beverages $1.00 $1.00 $1.00

SalesFoods $70,000 $105,000 $140,000Beverages $90,000 $135,000 $180,000Total Sales $160,000 $240,000 $320,000

Direct Unit Costs FY 2007 FY 2008 FY 2009Foods $0.45 $0.45 $0.45Beverages $0.55 $0.55 $0.55

Direct Cost of SalesFoods $31,500 $47,250 $63,000Beverages $49,500 $74,250 $99,000Subtotal Direct Cost of Sales $81,000 $121,500 $162,000

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Foods

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5.4 Milestones

Brochure given to churchs, campus and schools during 1 week. Advertising on radio advertised during 1 week Advertisement will be advising during 1 week

Aug Sep

Advertising

Administration

Purchasing

Name me

Name me

Name me

Name me

Name me

Name me

Name me

Milestones

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5.4.1 Milestone

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager DepartmentAdvertising 8/10/2006 9/10/2006 $300 A MarketingAdministration 8/12/2006 9/15/2006 $300 B AdministrationPurchasing 8/15/2006 9/20/2006 $650 C FinanceName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentTotals $1,250

6.0 Management Summary

We have a Marketing Manager, Operational Manager, and Finance Manager and also the employees.

6.1 Personnel Plan

There are 12 employee and 6 staff office The employee has job description are waiter, bartender and cooking The Staff has job description are manage and control the administration

Table: Personnel

Personnel PlanFY 2007 FY 2008 FY 2009

Employee $9,600 $9,600 $9,600Operation Manager $2,880 $2,880 $2,880Finance Manager $2,880 $2,880 $2,880Marketing Manager $2,880 $2,880 $2,880Total People 18 18 18

Total Payroll $18,240 $18,240 $18,240

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7.0 Financial Plan

Boen's Cafe's financial describe that is quite promising.

The process is labor intensive and Boen's Cafe recognizes that a higher level of talent is required.

We can give an differentiation in Service and also in Foods & Beverages, with a different menu's

For making that happen we have plan that we have anpther strategy to make customer always satisfied and also we created something better and better.

And also we will make employee comfortable with their jo, so if they do something (service) for customer they will be happy to do that.

And for the purpose of this pro-forma plan, the facilities and equipment are financed. These items are capital expenditures and will be available for financing. There will be a minimum of inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur.

Boen's Cafe anticipates the initial combination of investments and long-term financing of $100,000 to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially sound growth based on customer request and product demand.

7.1 Start-up Funding

Star-up Funding is following :

Legal Stationery etc Insurance per package Rent ( Vehicle and Building ) Computer Administration Labor Other

Asset Fund is following :

Chair and Table Spoon and Fork Sofa Other

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Table: Start-up Funding

Start-up FundingStart-up Expenses to Fund $4,300Start-up Assets to Fund $140,000Total Funding Required $144,300

Assets Non-cash Assets from Start-up $110,000Cash Requirements from Start-up $30,000Additional Cash Raised $60,700Cash Balance on Starting Date $90,700Total Assets $200,700

Liabilities and Capital

LiabilitiesCurrent Borrowing $30,000Long-term Liabilities $50,000Accounts Payable (Outstanding Bills) $10,000Other Current Liabilities $15,000Total Liabilities $105,000

Capital

Planned InvestmentOwner $50,000Investor $50,000Additional Investment Requirement $0Total Planned Investment $100,000

Loss at Start-up (Start-up Expenses) ($4,300)Total Capital $95,700

Total Capital and Liabilities $200,700

Total Funding $205,000

7.2 Important Assumptions

Important Assumption :

Growth rate 10% Inflation 15% Boen's Cafe assumes a slow-growth economy, without major recession. Boen's Cafe assumes of course that there are no unforeseen changes in public health

perceptions of its general products. Boen' Cafe assumes access to equity capital and financing sufficient to maintain its

financial plan as shown in the tables.

General Assumptions FY 2002 FY 2003 FY 2004Plan Month 1 2 3Current Interest Rate 10.00% 10.00% 10.00%Long-term Interest Rate 9.00% 9.00% 9.00%Tax Rate 0.00% 0.00% 0.00%Other 0 0 0

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7.3 Break-even Analysis

With the estimated monthly fixed cost ($ 3,803) we have to reach break even at $7,703 per month to break even, according to these assumptions.

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 7,703Monthly Revenue Break-even $7,703

Assumptions:Estimated Monthly Fixed Cost $3,803

($4,000)

($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

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Monthly break-even point

Break-even point = where line intersects with 0

Break-even Analysis

7.4 Projected Profit and Loss

Boen's Cafe is expecting some dramatic growth in the next three years, reaching for every sales (Foods and Beverages) each is $80,000 in sales so the total is $160,000 and a 49,38 % Gross Profit Margin by the end of the first year. Expenses during the first year will be roughly $45,640

Sales increase in the second year, Boen's Cafe is expecting some dramatic growth in the next three years, reaching for every sales (Foods and Beverages) each is $80,000 in sales so the total is $160,000 and a 49,385 Gross Profit Margin by the end of the first year. Expenses during the first year will be roughly $45,640

The third year is Boen's Cafe is expecting some dramatic growth in the next three years, reaching for every sales (Foods and Beverages) each is $80,000 in sales so the total is $160,000 and a

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49,38%Gross Profit Margin by the end of the first year. Expenses during the first year will be roughly $45,640

Table: Profit and Loss

Pro Forma Profit and LossFY 2007 FY 2008 FY 2009

Sales $160,000 $240,000 $320,000Direct Costs of Goods $81,000 $121,500 $162,000Other Costs of Goods $0 $0 $0

------------ ------------ ------------Cost of Goods Sold $81,000 $121,500 $162,000

Gross Margin $79,000 $118,500 $158,000Gross Margin % 49.38% 49.38% 49.38%

ExpensesPayroll $18,240 $18,240 $18,240Marketing/Promotion $4,200 $4,200 $4,200Depreciation $0 $0 $0Rent $6,000 $6,000 $6,000Utilities $3,000 $3,000 $3,000Insurance $4,200 $4,200 $4,200Payroll Taxes $10,000 $10,000 $10,000

------------ ------------ ------------Total Operating Expenses $45,640 $45,640 $45,640

Profit Before Interest and Taxes $33,360 $72,860 $112,360 Interest Expense $10,438 $18,500 $30,500 Taxes Incurred $6,877 $16,308 $24,558

Net Profit $16,046 $38,052 $57,302Net Profit/Sales 10.03% 15.86% 17.91%

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Gross Margin Monthly

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Gross Margin Yearly

7.5 Projected Cash Flow

Cash flow will have to be carefully monitored, as in any business, but Boen's Cafe is also the beneficiary of operating a cash business. After the initial investment and start-up costs are covered, the business will become relatively self-sustaining.

With our assuming that the sales will be growth up to 45% or more per year so we can see that our cash is always growth up every year.

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Net Cash Flow

Cash Balance

Cash

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Table: Cash Flow

Pro Forma Cash FlowFY 2007 FY 2008 FY 2009

Cash Received

Cash from OperationsCash Sales $160,000 $240,000 $320,000Subtotal Cash from Operations $160,000 $240,000 $320,000

Additional Cash ReceivedSales Tax, VAT, HST/GST Received $16,000 $24,000 $32,000New Current Borrowing $75,000 $75,000 $75,000New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $75,000 $75,000Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $50,000 $50,000 $50,000Subtotal Cash Received $301,000 $464,000 $552,000

Expenditures FY 2007 FY 2008 FY 2009

Expenditures from OperationsCash spending $18,240 $18,240 $18,240Bill Payments $100,996 $182,136 $244,073Subtotal Spent on Operations $119,236 $200,376 $262,313

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $30,000 $30,000 $30,000

Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $0 $0 $0

Purchase Other Current Assets $0 $0 $0Purchase Long-term Assets $0 $0 $0Dividends $0 $0 $0Subtotal Cash Spent $149,236 $230,376 $292,313

Net Cash Flow $151,764 $233,624 $259,687Cash Balance $242,464 $476,089 $735,775

7.6 Projected Balance Sheet

The Balance sheet of Boen's Cafe shows an increase in net worth to $ 357,100 in 2008.

With the present financial projections, Boen's Cafe expects to build a company with strong profit potential, and a solid balance sheet that will be asset heavy and flush with cash at the end of the third year.

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Table: Balance Sheet

Pro Forma Balance SheetFY 2007 FY 2008 FY 2009

Assets

Current AssetsCash $242,464 $476,089 $735,775Inventory $4,000 $6,000 $8,000Other Current Assets $0 $0 $0Total Current Assets $246,464 $482,089 $743,775

Long-term AssetsLong-term Assets $75,000 $75,000 $75,000Accumulated Depreciation $0 $0 $0Total Long-term Assets $75,000 $75,000 $75,000Total Assets $321,464 $557,089 $818,775

Liabilities and Capital FY 2007 FY 2008 FY 2009

Current LiabilitiesAccounts Payable $3,718 $7,291 $9,675Current Borrowing $75,000 $120,000 $165,000Other Current Liabilities $31,000 $55,000 $87,000Subtotal Current Liabilities $109,718 $182,291 $261,675

Long-term Liabilities $50,000 $125,000 $200,000Total Liabilities $159,718 $307,291 $461,675

Paid-in Capital $150,000 $200,000 $250,000Retained Earnings ($4,300) $11,746 $49,798Earnings $16,046 $38,052 $57,302Total Capital $161,746 $249,798 $357,100Total Liabilities and Capital $321,464 $557,089 $818,775

Net Worth $161,746 $249,798 $357,100

7.7 Business Ratios

Standard business ratios are included in the following table. The ratios show a plan for balanced, healthy growth. Boen's Cafe position within the industry is typical for a heavy growth startup company. .Comparing the ratios in every year with the industry, this pro-forma plan appears to be within an acceptable difference margin.

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Table: Ratios

Ratio AnalysisFY 2007 FY 2008 FY 2009 Industry Profile

Sales Growth 0.00% 50.00% 33.33% 5.24%

Percent of Total AssetsOther Current Assets 0.00% 0.00% 0.00% 32.59%Total Current Assets 76.67% 86.54% 90.84% 41.88%Long-term Assets 23.33% 13.46% 9.16% 58.12%Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 34.13% 32.72% 31.96% 21.75%Long-term Liabilities 15.55% 22.44% 24.43% 29.17%Total Liabilities 49.68% 55.16% 56.39% 50.92%Net Worth 50.32% 44.84% 43.61% 49.08%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 49.38% 49.38% 49.38% 55.74%Selling, General & Administrative Expenses 39.35% 33.52% 31.47% 37.46%Advertising Expenses 2.63% 0.00% 0.00% 2.06%Profit Before Interest and Taxes 20.85% 30.36% 35.11% 1.50%

Main RatiosCurrent 2.25 2.64 2.84 0.81Quick 2.21 2.61 2.81 0.51Total Debt to Total Assets 49.68% 55.16% 56.39% 53.68%Pre-tax Return on Net Worth 14.17% 21.76% 22.92% 2.39%Pre-tax Return on Assets 7.13% 9.76% 10.00% 5.16%

Additional Ratios FY 2007 FY 2008 FY 2009Net Profit Margin 10.03% 15.86% 17.91% n.aReturn on Equity 9.92% 15.23% 16.05% n.a

Activity RatiosAccounts Payable Turnover 25.47 25.47 25.47 n.aTotal Asset Turnover 0.50 0.43 0.39 n.a

Debt RatiosDebt to Net Worth 0.99 1.23 1.29 n.aCurrent Liab. to Liab. 0.69 0.59 0.57 n.a

Liquidity RatiosNet Working Capital $136,746 $299,798 $482,100 n.aInterest Coverage 3.20 3.94 3.68 n.a

Additional RatiosAssets to Sales 2.01 2.32 2.56 n.aCurrent Debt/Total Assets 34% 33% 32% n.aAcid Test 2.21 2.61 2.81 n.aSales/Net Worth 0.99 0.96 0.90 n.aDividend Payout 0.00 0.00 0.00 n.a

Table: Payment Detail

Payment DetailFY 2007 FY 2008 FY 2009

Payment Delay in Days 30 30 30

Payables

Beginning Payables Balance $10,000 $3,718 $7,291 Plus New Payment Obligations $112,954 $203,948 $264,698 Less Cash Spending $18,240 $18,240 $18,240 Less Bill Payments $100,996 $182,136 $244,073Ending Payables Balance $3,718 $7,291 $9,675

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Table: Inventory Detail

Inventory DetailFY 2007 FY 2008 FY 2009

Months of Inventory On-hand 1.65 1.65 1.65Minimum Inventory Purchase

Inventory Balance

Beginning Inventory Balance $35,000 $4,000 $6,000 Less Inventory Used as COGS $81,000 $121,500 $162,000 Plus Inventory Purchase $50,000 $123,500 $164,000Ending Inventory Balance $4,000 $6,000 $8,000

Table: General Assumptions

General AssumptionsFY 2007 FY 2008 FY 2009

Plan Month 1 2 3Current Interest Rate 10.00% 10.00% 10.00%Long-term Interest Rate 10.00% 10.00% 10.00%Tax Rate 30.00% 30.00% 30.00%Other 0 0 0

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Table: Personal Net Worth

Personal Net Worth

Assets

Current Assets Notes: BalanceChecking $0Savings $0Investment $0Household Goods $0Auto $0Auto $0All Other $0Total Current Assets $0

Long-term AssetsMain Residence $0Improvements $0Account $0All Other $0Total Long-term Assets $0

Total Assets $0

Liabilities

Current Borrowing BalanceCredit Card $0Credit Card $0Credit Card $0Auto Loan $0Other Current Debt $0Other Current Debt $0All Other $0Subtotal Current Borrowing $0

Long-term BorrowingMortgage $0Other Long-term Loans $0All Other $0Subtotal Long-term Borrowing $0

Total Liabilities $0

Net Worth $0

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0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Youth Family

Market Analysis (C.A.G.R)

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Appendix Table: Sales Forecast

Sales ForecastAug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Unit SalesFoods 0% 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833Beverages 0% 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500Total Unit Sales 13,333 13,333 13,333 13,333 13,333 13,333 13,333 13,333 13,333 13,333 13,333 13,333

Unit Prices Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun JulFoods $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00Beverages $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00

SalesFoods $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833Beverages $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500Total Sales $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333

Direct Unit Costs Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun JulFoods 45.00% $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45Beverages 55.00% $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55

Direct Cost of SalesFoods $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625Beverages $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125Subtotal Direct Cost of Sales $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750

Appendix

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Appendix Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager DepartmentAdvertising 8/10/2006 9/10/2006 $300 A MarketingAdministration 8/12/2006 9/15/2006 $300 B AdministrationPurchasing 8/15/2006 9/20/2006 $650 C FinanceName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentName me 7/17/2006 7/17/2006 $0 ABC DepartmentTotals $1,250

Appendix

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Appendix Table: Personnel

Personnel PlanAug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Employee 0% $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800Operation Manager 0% $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240Finance Manager 0% $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240Marketing Manager 0% $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240Total People 18 18 18 18 18 18 18 18 18 18 18 18

Total Payroll $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520

Appendix

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Appendix Table: Profit and Loss

Pro Forma Profit and LossAug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Sales $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333Direct Costs of Goods $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Cost of Goods Sold $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750

Gross Margin $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583 $6,583Gross Margin % 49.38% 49.38% 49.38% 49.38% 49.38% 49.38% 49.38% 49.38% 49.38% 49.38% 49.38% 49.38%

ExpensesPayroll $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520Marketing/Promotion $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500Utilities $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250Insurance $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350Payroll Taxes 15% $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Operating Expenses $3,803 $3,803 $3,803 $3,803 $3,803 $3,803 $3,803 $3,803 $3,803 $3,803 $3,803 $3,803

Profit Before Interest and Taxes $2,780 $2,780 $2,780 $2,780 $2,780 $2,780 $2,780 $2,780 $2,780 $2,780 $2,780 $2,780 Interest Expense $698 $729 $760 $792 $823 $854 $885 $917 $948 $979 $1,010 $1,042 Taxes Incurred $625 $615 $606 $597 $587 $578 $568 $559 $550 $540 $531 $522

Net Profit $1,458 $1,436 $1,414 $1,392 $1,370 $1,348 $1,326 $1,304 $1,282 $1,261 $1,239 $1,217Net Profit/Sales 10.93% 10.77% 10.60% 10.44% 10.27% 10.11% 9.95% 9.78% 9.62% 9.45% 9.29% 9.13%

Appendix

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Appendix Table: Cash Flow

Pro Forma Cash FlowAug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Cash Received

Cash from OperationsCash Sales $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333Subtotal Cash from Operations $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333 $13,333

Additional Cash ReceivedSales Tax, VAT, HST/GST Received 10.00% $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333New Current Borrowing $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Investment Received $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167Subtotal Cash Received $25,083 $25,083 $25,083 $25,083 $25,083 $25,083 $25,083 $25,083 $25,083 $25,083 $25,083 $25,083

Expenditures Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Expenditures from OperationsCash spending $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520 $1,520Bill Payments $10,120 $3,606 $3,628 $3,650 $4,006 $13,361 $4,049 $13,738 $13,426 $4,115 $13,803 $13,492Subtotal Spent on Operations $11,640 $5,126 $5,148 $5,170 $5,526 $14,881 $5,569 $15,258 $14,946 $5,635 $15,323 $15,012

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Principal Repayment of Current Borrowing $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500

Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Cash Spent $14,140 $7,626 $7,648 $7,670 $8,026 $17,381 $8,069 $17,758 $17,446 $8,135 $17,823 $17,512

Net Cash Flow $10,943 $17,457 $17,435 $17,413 $17,058 $7,703 $17,014 $7,325 $7,637 $16,948 $7,260 $7,571Cash Balance $101,643 $119,100 $136,535 $153,948 $171,006 $178,708 $195,722 $203,048 $210,685 $227,633 $234,893 $242,464

Appendix

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Appendix Table: Balance Sheet

Pro Forma Balance SheetAug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Assets Starting Balances

Current AssetsCash $90,700 $101,643 $119,100 $136,535 $153,948 $171,006 $178,708 $195,722 $203,048 $210,685 $227,633 $234,893 $242,464Inventory $35,000 $28,250 $21,500 $14,750 $8,000 $11,250 $4,500 $7,750 $11,000 $4,250 $7,500 $10,750 $4,000Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Current Assets $125,700 $129,893 $140,600 $151,285 $161,948 $182,256 $183,208 $203,472 $214,048 $214,935 $235,133 $245,643 $246,464

Long-term AssetsLong-term Assets $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Long-term Assets $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000Total Assets $200,700 $204,893 $215,600 $226,285 $236,948 $257,256 $258,208 $278,472 $289,048 $289,935 $310,133 $320,643 $321,464

Liabilities and Capital Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Current LiabilitiesAccounts Payable $10,000 $3,485 $3,507 $3,528 $3,549 $13,237 $3,591 $13,279 $13,300 $3,655 $13,343 $13,364 $3,718Current Borrowing $30,000 $33,750 $37,500 $41,250 $45,000 $48,750 $52,500 $56,250 $60,000 $63,750 $67,500 $71,250 $75,000Other Current Liabilities $15,000 $16,333 $17,667 $19,000 $20,333 $21,667 $23,000 $24,333 $25,667 $27,000 $28,333 $29,667 $31,000Subtotal Current Liabilities $55,000 $53,569 $58,673 $63,778 $68,882 $83,654 $79,091 $93,863 $98,967 $94,405 $109,176 $114,280 $109,718

Long-term Liabilities $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000Total Liabilities $105,000 $103,569 $108,673 $113,778 $118,882 $133,654 $129,091 $143,863 $148,967 $144,405 $159,176 $164,280 $159,718

Paid-in Capital $100,000 $104,167 $108,333 $112,500 $116,667 $120,833 $125,000 $129,167 $133,333 $137,500 $141,667 $145,833 $150,000Retained Earnings ($4,300) ($4,300) ($4,300) ($4,300) ($4,300) ($4,300) ($4,300) ($4,300) ($4,300) ($4,300) ($4,300) ($4,300) ($4,300)Earnings $0 $1,458 $2,893 $4,307 $5,699 $7,069 $8,417 $9,743 $11,047 $12,330 $13,590 $14,829 $16,046Total Capital $95,700 $101,324 $106,927 $112,507 $118,065 $123,602 $129,117 $134,610 $140,081 $145,530 $150,957 $156,362 $161,746Total Liabilities and Capital $200,700 $204,893 $215,600 $226,285 $236,948 $257,256 $258,208 $278,472 $289,048 $289,935 $310,133 $320,643 $321,464

Net Worth $95,700 $101,324 $106,927 $112,507 $118,065 $123,602 $129,117 $134,610 $140,081 $145,530 $150,957 $156,362 $161,746

Appendix

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Boen's Cafe

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