Bar and Tavern Business Plan

Financial Plan

The following sections outline important financial information.

The following table details important Financial Assumptions.

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

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%

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

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

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