Gabri's Restaurant & Lounge
Financial Plan
Forecast
Key Assumptions
Our financial plan depends on important assumptions, most of which are shown in the following table as annual figures. The key underlying assumptions are:
- We assume a slow-growth economy, without major recession. This means our customer’s have money to pay for a meal out.
- We assume that there are no unforseen changes in the expectancy in the popularity of our restaurant.
- We assume access to investments and financing are sufficient to maintain and fulfill our financial plan as shown in the tables.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
We plan on using the funds we receive will be used for: equipment, furniture, painting, reconstruction, rent, start-up labor, liquor license, six months operating cash, and legal and consulting costs associated with opening our restaurant. We plan on making our location look like new, and upgrade so we can service our restaurant customers as well as our catering customers
Startup Expenses
Startup expenses of $300K break down as follows:
They appear on our balance sheet as a negative $300K retained earnings at launch.
Startup Assets
As indicated on the balance sheet, our startup assets include $85K cash reserves, plus $50K long-term assets (mostly kitchen and furniture), $30K inventory, and $1K other current assets.
Sources of Funds
We are personally committing $225,000 of owner investment (which appears as paid-in capital in the balance sheet at launch) plus a $240,000 long-term loan from our local bank with SBA loan guarantee.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $1,301,200 | $1,480,000 | $1,646,000 |
| Direct Costs | $429,396 | $488,400 | $543,180 |
| Gross Margin | $871,804 | $991,600 | $1,102,820 |
| Gross Margin % | 67% | 67% | 67% |
| Operating Expenses | |||
| Salaries & Wages | $543,600 | $667,620 | $715,890 |
| Employee Related Expenses | $81,540 | $100,143 | $107,384 |
| Sales and Marketing | $16,500 | $15,000 | $15,000 |
| Leased Equipment | $3,000 | $3,000 | $3,000 |
| Kitchen supplies, dinnerware, etc. | $18,000 | $18,000 | $18,000 |
| Professional Fees | $6,600 | $6,600 | $6,600 |
| Permits / Licences | $1,380 | $1,380 | $1,380 |
| Office supplies | $2,100 | $2,100 | $2,100 |
| Postage | $1,140 | $1,140 | $1,140 |
| Utilities | $22,200 | $22,200 | $22,200 |
| Insurance | $16,800 | $16,800 | $16,800 |
| Rent | $54,000 | $54,000 | $54,000 |
| Website Maintenance | $2,400 | $2,400 | $2,400 |
| Other | $6,000 | $6,000 | $6,000 |
| Amortization of Other Current Assets | $0 | $0 | $0 |
| Total Operating Expenses | $775,260 | $916,383 | $971,894 |
| Operating Income | $96,544 | $75,217 | $130,927 |
| Interest Incurred | $6,914 | $6,279 | $5,624 |
| Depreciation and Amortization | $7,143 | $7,143 | $7,143 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $6,599 | $4,944 | $9,452 |
| Total Expenses | $1,225,312 | $1,423,149 | $1,537,293 |
| Net Profit | $75,888 | $56,851 | $108,707 |
| Net Profit/Sales | 6% | 4% | 7% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $85,000 | $174,649 | $211,199 | $308,485 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | $30,000 | $40,700 | $45,265 | $45,265 |
| Other Current Assets | $1,000 | $1,000 | $1,000 | $1,000 |
| Total Current Assets | $116,000 | $216,349 | $257,463 | $354,750 |
| Long-Term Assets | $50,000 | $50,000 | $50,000 | $50,000 |
| Accumulated Depreciation | $0 | ($7,143) | ($14,286) | ($21,429) |
| Total Long-Term Assets | $50,000 | $42,857 | $35,714 | $28,571 |
| Total Assets | $166,000 | $259,206 | $293,178 | $383,321 |
| Accounts Payable | $1,000 | $13,184 | $14,412 | $14,412 |
| Income Taxes Payable | $0 | $4,004 | $1,241 | $2,367 |
| Sales Taxes Payable | $0 | $22,020 | $22,200 | $24,690 |
| Short-Term Debt | $20,890 | $21,525 | $22,180 | $22,854 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $21,890 | $60,733 | $60,033 | $64,324 |
| Long-Term Debt | $219,110 | $197,585 | $175,405 | $152,551 |
| Long-Term Liabilities | $219,110 | $197,585 | $175,405 | $152,551 |
| Total Liabilities | $241,000 | $258,318 | $235,439 | $216,875 |
| Paid-In Capital | $225,000 | $225,000 | $225,000 | $225,000 |
| Retained Earnings | ($300,000) | ($300,000) | ($224,112) | ($167,261) |
| Earnings | $75,888 | $56,851 | $108,707 | |
| Total Owner’s Equity | ($75,000) | $888 | $57,739 | $166,446 |
| Total Liabilities & Equity | $166,000 | $259,206 | $293,178 | $383,321 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $75,888 | $56,851 | $108,707 |
| Depreciation & Amortization | $7,143 | $7,143 | $7,143 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | ($10,700) | ($4,565) | $0 |
| Change in Accounts Payable | $12,184 | $1,229 | $0 |
| Change in Income Tax Payable | $4,004 | ($2,763) | $1,126 |
| Change in Sales Tax Payable | $22,020 | $180 | $2,490 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $110,539 | $58,075 | $119,466 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $635 | $655 | $675 |
| Change in Long-Term Debt | ($21,525) | ($22,180) | ($22,854) |
| Net Cash from Financing | ($20,890) | ($21,525) | ($22,180) |
| Cash at Beginning of Period | $85,000 | $174,649 | $211,199 |
| Net Change in Cash | $89,649 | $36,550 | $97,286 |
| Cash at End of Period | $174,649 | $211,199 | $308,485 |
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