•The Lack of a non smoke & non alcoholic lounge for The Lack of a non smoke & non alcoholic lounge for

Young Musicians to showcase their talentYoung Musicians to showcase their talent

“It would be great to have a place where my son can go and play with his band where it’s smoke free. My son played at a night club and I couldn’t fully enjoy it because of the smoke environment .” (Academic/Music Program Director and Mother of a Local Musician)

•Lounge atmosphere conducive to YouthLounge atmosphere conducive to Youth

•Non alcoholic Teen nightclubNon alcoholic Teen nightclub

•Prominent in the Last Twenty Years Prominent in the Last Twenty Years

•Provide kids with a safe place to go and have funProvide kids with a safe place to go and have fun

•Provide the community with a business that caters to Provide the community with a business that caters to the youth of the community the youth of the community

•7 year old nightclub changed to target teens has Less Violence7 year old nightclub changed to target teens has Less ViolenceLt. Jim Henry of the Springfield Police Department. “When you remove alcohol from a situation, it tends to alleviate a lot of problems. When they served alcohol, we were out there every weekend.” http://www.sj-r.com/carousel/x1179097877/Club-Chrome-quieter-since-going-non-alcoholic-on-weekends?img=2

•Teens 13 – 20 and Young Adults 21 – 30Teens 13 – 20 and Young Adults 21 – 30

•2009 Pinellas County estimated Population by Age2009 Pinellas County estimated Population by Age2009 Total Pop 0-19 184,422 19.9%2009 Total Pop 20-29 96,358 10.4%

https://edis.commerce.state.nc.us/docs/countyProfile/FL/12103.pdf

•Club Fuze (Tampa, FL) –Club Fuze (Tampa, FL) –Targets Teens under 20, Solution Non Alcoholic nightclub, Targets Teens under 20, Solution Non Alcoholic nightclub, Cover Charge $7, Advertise on Web, Weakness too Sensual for teensCover Charge $7, Advertise on Web, Weakness too Sensual for teens

•Club 3 Degrees (Minneapolis, MN)- Club 3 Degrees (Minneapolis, MN)- Targets Christians Teens and Young Adults, Solution Non Alcoholic nightclub, Targets Christians Teens and Young Adults, Solution Non Alcoholic nightclub, Concert Cover charge/tickets price range General $12 -VIP $50, Weakness not Concert Cover charge/tickets price range General $12 -VIP $50, Weakness not located in FLlocated in FL

•Zero Gravity (Naperville, IL) – Zero Gravity (Naperville, IL) – Targets Teens 16 – 23, Solution Non Alcoholic nightclub, Cover Charge $10, Targets Teens 16 – 23, Solution Non Alcoholic nightclub, Cover Charge $10, Weakness too Sensual, not localWeakness too Sensual, not local

•Caribe Entertainment is a service and product company•Providing a clean family friendly Caribbean theme atmosphere •(Free) Wi-Fi internet access on a weekly basis •Live music entertainment on the weekend nights (small cover charge) •Professional DJ, high quality sound and lighting, laser show, dance floor•(Rental) Facility available for:

Corporate Events, Private Party’s Birthday Party

•Products we serve are:Soft drinks, Non-alcoholic specialty frozen fruit drinks,Specialty coffees, Variety of Pastries and appetizers (specialty Caribbean style items)

Start-up

Requirements

Start-up Expenses

Legal $270 Stationery etc. $1,199 Insurance $4,899 Rent $2,500 Computer/Office Supply $5,000 Logo Design/Website Design $1,199 Payroll $37,500 Pre-Opening Marketing $5,750 Consultants $1,500 Total Start-up Expenses $59,817

Start-up Assets

Cash Required $65,000 Start-up Inventory $2,500 Other Current Assets $10,000 Long-term Assets $104,000 Total Assets $181,500

Total Requirements $241,317

Sales Forecast2011 2012 2013

Unit Sales

Drinks 5,000 5,100 5,253 Food 5,000 5,100 5,253 Booking Parties (corp, private, birthday's) 38 40 42 Concerts/Cover Charge 6,050 6,150 6,300 Total Unit Sales 16,088 16,390 16,848

Unit Prices 2011 2012 2013Drinks $3.85 $3.85 $3.85 Food $6.25 $6.25 $6.25 Booking Parties (corp, private, birthday's) $1,500.00 $1,500.00 $1,500.00 Concerts/Cover Charge $10.00 $10.00 $10.00

Sales

Drinks $19,250 $19,635 $20,224 Food $31,250 $31,875 $32,831 Booking Parties (corp, private, birthday's) $56,575 $60,000 $63,000 Concerts/Cover Charge $60,500 $61,500 $63,000 Total Sales $167,575 $173,010 $179,055

Direct Unit Costs 2011 2012 2013Drinks $0.96 $0.96 $0.96 Food $1.56 $1.56 $1.56 Booking Parties (corp, private, birthday's) $375.00 $375.00 $375.00 Concerts/Cover Charge $2.50 $2.50 $2.50

Direct Cost of Sales

Drinks $4,813 $4,909 $5,056 Food $7,813 $7,969 $8,208 Booking Parties (corp, private, birthday's) $14,144 $15,000 $15,750 Concerts/Cover Charge $15,125 $15,375 $15,750 Subtotal Direct Cost of Sales $41,894 $43,253 $44,764

Pro Forma Cash Flow2011 2012 2013

Cash Received

Cash from Operations

Cash Sales $167,575 $173,010 $179,055 Subtotal Cash from Operations $167,575 $173,010 $179,055

Additional Cash Received

Sales Tax, VAT, HST/GST Received $117 $121 $125 New Current Borrowing $0 $3,000 $2,500 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $5,000 $5,000 Subtotal Cash Received $167,692 $181,131 $186,681

Expenditures 2011 2012 2013

Expenditures from Operations

Cash Spending $49,992 $51,491 $53,034 Bill Payments $107,390 $118,751 $120,049 Subtotal Spent on Operations $157,382 $170,242 $173,083

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $117 $121 $125 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $10,440 $10,440 $10,440 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $167,939 $180,803 $183,649

Net Cash Flow ($247) $328 $3,032 Cash Balance $64,753 $65,082 $68,113

Pro Forma Balance Sheet2011 2012 2013

Assets

Current Assets

Cash $64,753 $65,082 $68,113 Inventory $4,531 $3,721 $3,861 Other Current Assets $10,000 $10,000 $10,000 Total Current Assets $79,284 $78,803 $81,974

Long-term Assets

Long-term Assets $104,000 $104,000 $104,000 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $104,000 $104,000 $104,000 Total Assets $183,284 $182,803 $185,974

Liabilities and Capital 2011 2012 2013

Current Liabilities

Accounts Payable $11,854 $9,573 $9,893 Current Borrowing $25,000 $28,000 $30,500 Other Current Liabilities ($10,440) ($20,880) ($31,320)Subtotal Current Liabilities $26,414 $16,693 $9,073

Long-term Liabilities $87,000 $87,000 $87,000 Total Liabilities $113,414 $103,693 $96,073

Paid-in Capital $129,317 $134,317 $139,317 Retained Earnings ($59,817) ($59,447) ($55,207)Earnings $370 $4,240 $5,791 Total Capital $69,870 $79,110 $89,901 Total Liabilities and Capital $183,284 $182,803 $185,974

Net Worth $69,870 $79,110 $89,901

Ratio Analysis2011 2012 2013 Industry

ProfileSales Growth n.a. 3.24% 3.49% 1.65%

Percent of Total AssetsInventory 2.47% 2.04% 2.08% 6.34% Other Current Assets 5.46% 5.47% 5.38% 43.25% Total Current Assets 43.26% 43.11% 44.08% 53.12% Long-term Assets 56.74% 56.89% 55.92% 46.88% Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 14.41% 9.13% 4.88% 25.40% Long-term Liabilities 47.47% 47.59% 46.78% 73.91% Total Liabilities 61.88% 56.72% 51.66% 99.31% Net Worth 38.12% 43.28% 48.34% 0.69%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00% Gross Margin 75.00% 75.00% 75.00% 58.06% Selling, General & Administrative Expenses

74.78% 72.55% 71.77% 23.02%

Advertising Expenses 5.73% 3.76% 3.91% 1.74% Profit Before Interest and Taxes 7.00% 10.06% 11.11% 6.52%

Main RatiosCurrent 3.00 4.72 9.03 1.25 Quick 2.83 4.50 8.61 1.00 Total Debt to Total Assets 61.88% 56.72% 51.66% 99.31% Pre-tax Return on Net Worth 0.76% 7.66% 9.20% 4325.19% Pre-tax Return on Assets 0.29% 3.31% 4.45% 29.65%

Additional Ratios 2011 2012 2013Net Profit Margin 0.22% 2.45% 3.23% n.aReturn on Equity 0.53% 5.36% 6.44% n.a

Activity RatiosInventory Turnover 12.00 10.48 11.81 n.aAccounts Payable Turnover 10.06 12.17 12.17 n.aPayment Days 27 34 30 n.aTotal Asset Turnover 0.91 0.95 0.96 n.a

Debt RatiosDebt to Net Worth 1.62 1.31 1.07 n.aCurrent Liab. to Liab. 0.23 0.16 0.09 n.a

Liquidity RatiosNet Working Capital $52,870 $62,110 $72,901 n.aInterest Coverage 1.05 1.53 1.71 n.a

Additional RatiosAssets to Sales 1.09 1.06 1.04 n.aCurrent Debt/Total Assets 14% 9% 5% n.aAcid Test 2.83 4.50 8.61 n.aSales/Net Worth 2.40 2.19 1.99 n.aDividend Payout 0.00 0.00 0.00 n.a