Bar and Tavern Business Plan

Foosball Hall

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Financial Plan

The following sections outline important financial information.

8.1 Important Assumptions

The following table details important Financial Assumptions.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current 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

8.2 Break-even Analysis

The Break-even Analysis indicates that monthly revenue of approximately $12,000 will be needed to reach the break-even point.

Break-even Analysis
Monthly Revenue Break-even $12,837
Assumptions:
Average Percent Variable Cost 22%
Estimated Monthly Fixed Cost $10,001

8.3 Projected Profit and Loss

The following table and charts show the Projected Profit and Loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $148,581 $210,712 $291,599
Direct Cost of Sales $32,816 $46,558 $64,430
Other Costs of Goods $0 $0 $0
Total Cost of Sales $32,816 $46,558 $64,430
Gross Margin $115,765 $164,154 $227,169
Gross Margin % 77.91% 77.90% 77.90%
Expenses
Payroll $63,500 $86,600 $121,000
Sales and Marketing and Other Expenses $4,800 $4,000 $4,000
Depreciation $7,992 $7,992 $7,992
Rent $14,400 $15,000 $16,000
Utilities $4,200 $4,200 $4,200
Insurance $9,600 $9,600 $9,600
Payroll Taxes $9,525 $12,990 $18,150
Other $6,000 $6,000 $6,000
Total Operating Expenses $120,017 $146,382 $186,942
Profit Before Interest and Taxes ($4,252) $17,772 $40,227
EBITDA $3,740 $25,764 $48,219
Interest Expense $0 $0 $0
Taxes Incurred $0 $5,332 $12,068
Net Profit ($4,252) $12,440 $28,159
Net Profit/Sales -2.86% 5.90% 9.66%

8.4 Projected Cash Flow

The following chart and table display Projected Cash Flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $148,581 $210,712 $291,599
Subtotal Cash from Operations $148,581 $210,712 $291,599
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
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 $0 $0
Subtotal Cash Received $148,581 $210,712 $291,599
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $63,500 $86,600 $121,000
Bill Payments $74,171 $102,328 $131,919
Subtotal Spent on Operations $137,671 $188,928 $252,919
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
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 $137,671 $188,928 $252,919
Net Cash Flow $10,910 $21,784 $38,680
Cash Balance $55,210 $76,994 $115,674

8.5 Projected Balance Sheet

The following table presents the Projected Balance Sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $55,210 $76,994 $115,674
Other Current Assets $3,000 $3,000 $3,000
Total Current Assets $58,210 $79,994 $118,674
Long-term Assets
Long-term Assets $40,000 $40,000 $40,000
Accumulated Depreciation $7,992 $15,984 $23,976
Total Long-term Assets $32,008 $24,016 $16,024
Total Assets $90,218 $104,010 $134,698
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $7,170 $8,522 $11,051
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $7,170 $8,522 $11,051
Long-term Liabilities $0 $0 $0
Total Liabilities $7,170 $8,522 $11,051
Paid-in Capital $95,000 $95,000 $95,000
Retained Earnings ($7,700) ($11,952) $488
Earnings ($4,252) $12,440 $28,159
Total Capital $83,048 $95,488 $123,647
Total Liabilities and Capital $90,218 $104,010 $134,698
Net Worth $83,048 $95,488 $123,647

8.6 Business Ratios

Foosball Hall's Business Ratios. SIC industry class: Pool parlor - 7999.0403.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 41.82% 38.39% 5.73%
Percent of Total Assets
Other Current Assets 3.33% 2.88% 2.23% 33.26%
Total Current Assets 64.52% 76.91% 88.10% 43.21%
Long-term Assets 35.48% 23.09% 11.90% 56.79%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 7.95% 8.19% 8.20% 21.91%
Long-term Liabilities 0.00% 0.00% 0.00% 28.81%
Total Liabilities 7.95% 8.19% 8.20% 50.72%
Net Worth 92.05% 91.81% 91.80% 49.28%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 77.91% 77.90% 77.90% 100.00%
Selling, General & Administrative Expenses 80.78% 72.00% 68.25% 76.43%
Advertising Expenses 0.00% 0.00% 0.00% 2.77%
Profit Before Interest and Taxes -2.86% 8.43% 13.80% 1.89%
Main Ratios
Current 8.12 9.39 10.74 1.18
Quick 8.12 9.39 10.74 0.80
Total Debt to Total Assets 7.95% 8.19% 8.20% 1.76%
Pre-tax Return on Net Worth -5.12% 18.61% 32.53% 61.12%
Pre-tax Return on Assets -4.71% 17.09% 29.86% 4.52%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -2.86% 5.90% 9.66% n.a
Return on Equity -5.12% 13.03% 22.77% n.a
Activity Ratios
Accounts Payable Turnover 11.34 12.17 12.17 n.a
Payment Days 27 28 27 n.a
Total Asset Turnover 1.65 2.03 2.16 n.a
Debt Ratios
Debt to Net Worth 0.09 0.09 0.09 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $51,040 $71,472 $107,623 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.61 0.49 0.46 n.a
Current Debt/Total Assets 8% 8% 8% n.a
Acid Test 8.12 9.39 10.74 n.a
Sales/Net Worth 1.79 2.21 2.36 n.a
Dividend Payout 0.00 0.00 0.00 n.a
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General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current 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
Break-even Analysis
Monthly Revenue Break-even $12,837
Assumptions:
Average Percent Variable Cost 22%
Estimated Monthly Fixed Cost $10,001
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $148,581 $210,712 $291,599
Direct Cost of Sales $32,816 $46,558 $64,430
Other Costs of Goods $0 $0 $0
Total Cost of Sales $32,816 $46,558 $64,430
Gross Margin $115,765 $164,154 $227,169
Gross Margin % 77.91% 77.90% 77.90%
Expenses
Payroll $63,500 $86,600 $121,000
Sales and Marketing and Other Expenses $4,800 $4,000 $4,000
Depreciation $7,992 $7,992 $7,992
Rent $14,400 $15,000 $16,000
Utilities $4,200 $4,200 $4,200
Insurance $9,600 $9,600 $9,600
Payroll Taxes $9,525 $12,990 $18,150
Other $6,000 $6,000 $6,000
Total Operating Expenses $120,017 $146,382 $186,942
Profit Before Interest and Taxes ($4,252) $17,772 $40,227
EBITDA $3,740 $25,764 $48,219
Interest Expense $0 $0 $0
Taxes Incurred $0 $5,332 $12,068
Net Profit ($4,252) $12,440 $28,159
Net Profit/Sales -2.86% 5.90% 9.66%
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $148,581 $210,712 $291,599
Subtotal Cash from Operations $148,581 $210,712 $291,599
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
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 $0 $0
Subtotal Cash Received $148,581 $210,712 $291,599
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $63,500 $86,600 $121,000
Bill Payments $74,171 $102,328 $131,919
Subtotal Spent on Operations $137,671 $188,928 $252,919
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
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 $137,671 $188,928 $252,919
Net Cash Flow $10,910 $21,784 $38,680
Cash Balance $55,210 $76,994 $115,674
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $55,210 $76,994 $115,674
Other Current Assets $3,000 $3,000 $3,000
Total Current Assets $58,210 $79,994 $118,674
Long-term Assets
Long-term Assets $40,000 $40,000 $40,000
Accumulated Depreciation $7,992 $15,984 $23,976
Total Long-term Assets $32,008 $24,016 $16,024
Total Assets $90,218 $104,010 $134,698
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $7,170 $8,522 $11,051
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $7,170 $8,522 $11,051
Long-term Liabilities $0 $0 $0
Total Liabilities $7,170 $8,522 $11,051
Paid-in Capital $95,000 $95,000 $95,000
Retained Earnings ($7,700) ($11,952) $488
Earnings ($4,252) $12,440 $28,159
Total Capital $83,048 $95,488 $123,647
Total Liabilities and Capital $90,218 $104,010 $134,698
Net Worth $83,048 $95,488 $123,647
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 41.82% 38.39% 5.73%
Percent of Total Assets
Other Current Assets 3.33% 2.88% 2.23% 33.26%
Total Current Assets 64.52% 76.91% 88.10% 43.21%
Long-term Assets 35.48% 23.09% 11.90% 56.79%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 7.95% 8.19% 8.20% 21.91%
Long-term Liabilities 0.00% 0.00% 0.00% 28.81%
Total Liabilities 7.95% 8.19% 8.20% 50.72%
Net Worth 92.05% 91.81% 91.80% 49.28%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 77.91% 77.90% 77.90% 100.00%
Selling, General & Administrative Expenses 80.78% 72.00% 68.25% 76.43%
Advertising Expenses 0.00% 0.00% 0.00% 2.77%
Profit Before Interest and Taxes -2.86% 8.43% 13.80% 1.89%
Main Ratios
Current 8.12 9.39 10.74 1.18
Quick 8.12 9.39 10.74 0.80
Total Debt to Total Assets 7.95% 8.19% 8.20% 1.76%
Pre-tax Return on Net Worth -5.12% 18.61% 32.53% 61.12%
Pre-tax Return on Assets -4.71% 17.09% 29.86% 4.52%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -2.86% 5.90% 9.66% n.a
Return on Equity -5.12% 13.03% 22.77% n.a
Activity Ratios
Accounts Payable Turnover 11.34 12.17 12.17 n.a
Payment Days 27 28 27 n.a
Total Asset Turnover 1.65 2.03 2.16 n.a
Debt Ratios
Debt to Net Worth 0.09 0.09 0.09 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $51,040 $71,472 $107,623 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.61 0.49 0.46 n.a
Current Debt/Total Assets 8% 8% 8% n.a
Acid Test 8.12 9.39 10.74 n.a
Sales/Net Worth 1.79 2.21 2.36 n.a
Dividend Payout 0.00 0.00 0.00 n.a