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The Bottlecap

Executive Summary

The Bottlecap is a specialty beer tavern located near the campus of the University of Oregon.

The Bottlecap will be serving the university and the Eugene, Oregon community with a constantly rotating lineup of premium, unique microbrews for the discerning beer connoisseur.

The Bottlecap is a privately-funded venture lead by Dashiell Lavine and Tyler Vogel.

The Market
The Pacific Northwest is the premier microbrew center in the world. Oregon and Washington boast the highest number of microbrew facilities of any of the 50 states.

In addition to having a lot of production in this area, enjoying fine beers is a culture within itself in the Pacific Northwest, particularly Oregon. To be sure, the market for people that appreciate fine beers is huge.

The Bottlecap will be targeting three distinct customer segments. The first is the beer connoisseur, those that have a true passion for fine beers. This segment has a yearly growth rate of 12% with over 12,000 possible customers.

The Bottlecap will also be targeting the general bar attending crowd. This group are typically professionals that use taverns as a place to unwind after work and socialize. This section is growing at 8% with 30,000 potential members.

The last group that The Bottlecap will go after is the college students of the U of O. This group cares a bit less about the quality of the beer because they are more price sensitive. The number college students are growing at 10% and there are a total of 20,000 to draw off of.

The Competition
The Bottlecap has three direct competitors that are all centrally located near the U of O campus.

The Bottlecap is able to differentiate itself from these competitors through its emphasis on fine beer. The competitors more accurately targets the college students and their lower price point.

The Bottlecap’s emphasis on an outstanding selection of premium beers is one of two competitive edges.

Its second competitive edge is a companion website that was developed as an active feedback mechanism for the customers to express their preference of the beer selection. This allows the customers to have a direct impact on the tap offerings. In addition to giving the customers what they want in terms of beer, it also provides the customer with a feeling of empowerment and a sense that The Bottlecap exists to truly meet their needs.

The Management Team
The Bottlecap was founded and will be run by Dashiell Lavine and Tyler Vogel.

Dashiell’s experience is primarily from the restaurant industry. After receiving his undergraduate degree from Reed College, Dashiell went to work serving at Il Piato, a fine Italian restaurant in NW Portland.

Dashiell worked as a server for two years and then was asked to manage the entire restaurant. Dashill did this for five years, gaining incredible experience and insight regarding all aspects of running a restaurant, both front-end, customer oriented skills as well as back-end operations. The time spent at Il Piato solidified Dashiell’s desire to be his own boss and remain in the restaurant/bar industry.

Tyler came from a more academic background as a CPA from Arthur Anderson (AA). Through school Tyler served in restaurants, but after graduation went to work for AA where he developed an incredible array of financial control skills.

Since it is well known that most restaurants die within the first year, Tyler’s financial analysis and control skills will be indispensable in assuring a solid control mechanism to accurately track and manage the large cash sums that will travel through The Bottlecap every day.

The Bottlecap will be a successful venture as it serves the huge demand for premium beers. 

The Bottlecap will offer customers a friendly social atmosphere where they can catch up with old friends, meet new ones, and enjoy fine beers. It is forecasted that The Bottlecap will reach profitability by month four and achieve approximately $73,000 in profits by year three.

Microbrew bar business plan, executive summary chart image

1.1 Objectives

Below is a list of the objectives for The Bottlecap.

  • Have eight or more good quality, hard-to-find beers on tap.
  • Have business grow at least 10% per month.
  • Create customer awareness of what The Bottlecap offers through the companion website. Measure popularity by tracking hits on the website.

1.2 Mission

To create an economically healthy organization that provides a variety of quality beers in a casual and classy environment that appeals to a wide range of customers.

1.3 Keys to Success

The keys to the success of The Bottlecap can be summarized by the following points:

  • Maintain good relationships with reliable beer distributors.
  • Well designed bar with a unique and entertaining atmosphere.
  • Quality entertainment.
  • Repeat customers.
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Company Summary

The Bottlecap, which will be located near the University of Oregon, will offer the community a classy bar with unique beers on tap. The Bottlecap will also provide customers with an innovative environment for enjoying these high quality beers.

2.1 Company Ownership

The Bottlecap will be a privately funded company that will be owned and run by Dashiell Lavine and Tyler Vogel. They will both be equal partners. Joe Smith and Bob Adler will also hold minority stock positions as private investors.

2.2 Start-up Summary

The Bottlecap’s start-up costs will cover beer serving equipment, site renovation and remodeling, capital to cover losses during the first year, a computer to maintain The Bottlecap’s Web presence, and the entertainment equipment, including a big screen television for sports, a pool table, and a stereo. In addition, costs will be allocated for the beer serving equipment. Eight taps, Carbon Dioxide tanks, and glassware will be purchased from various equipment vendors in Eugene.

The site will require funds for renovation and modification. A single estimated figure will be allocated for this purpose. The renovation/modification cost estimate will include the costs associated with preparing the site for opening business in May.

The furniture, the site renovation, permits and fees, and the entertainment equipment will account for a large amount of our start-up costs.

Because of the competitive nature of the marketplace, we have accounted for more money than necessary when it comes to the cash balance. By doing so, we will be in a good position should our numbers not match what we have forecasted and will not lose the large amount invested to start the business.

Microbrew bar business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Fees & Permits $7,500
Exterior Sign $2,500
Pool Table $5,000
Stereo System $350
Legal $500
Consultants $1,000
Insurance $700
Rent $1,500
Taps $800
Glassware $500
Computer System $1,500
Misc. Supplies & Equipment $700
Bathroom Supplies $250
Marketing $1,000
Fixtures & Re-Model $25,000
Big Screen Television $2,000
Point of Sale Systems $5,000
Furniture $10,000
Total Start-up Expenses $65,800
Start-up Assets
Cash Required $7,920
Start-up Inventory $1,280
Other Current Assets $0
Long-term Assets $0
Total Assets $9,200
Total Requirements $75,000
Start-up Funding
Start-up Expenses to Fund $65,800
Start-up Assets to Fund $9,200
Total Funding Required $75,000
Assets
Non-cash Assets from Start-up $1,280
Cash Requirements from Start-up $7,920
Additional Cash Raised $0
Cash Balance on Starting Date $7,920
Total Assets $9,200
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Dashiell Lavine $20,000
Tyler Vogel $20,000
Joe Smith $17,500
Bob Adler $17,500
Other $0
Additional Investment Requirement $0
Total Planned Investment $75,000
Loss at Start-up (Start-up Expenses) ($65,800)
Total Capital $9,200
Total Capital and Liabilities $9,200
Total Funding $75,000

2.3 Company Locations and Facilities

The Bottlecap’s location will be chosen based upon the following criteria listed in order of importance:

  • Proximity to the University of Oregon campus.
  • High visibility.
  • Proximity to public transportation (LTD’s Eugene Station) and downtown.
  • Low cost of rent, $1.00 per square foot for approximately 1,500 square feet.
  • All of these qualities are consistent with The Bottlecap’s goal of providing a central hub of communication and socialization for the Eugene community. In addition to a main area of the bar, there will be two additional rooms. One of the rooms will be the manager’s office and will also house the computer that the website will be maintained on. The second room will be a storage facility for supplies and extra kegs of beer.

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    Services

    The Bottlecap will provide its customers with a unique and friendly environment for enjoying specialty brews and other quality beers. The Bottlecap will also provide customers with a unique and innovative environment for enjoying the quality beers on tap, including a pool table and a big screen television for sporting events.

    3.1 Competitive Comparison

    The Bottlecap will be the first classy beer-only pub located near the campus that provides its customers with quality beer at affordable prices.

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    Market Analysis Summary

    The Northwest is the Mecca of microbrews and home brewing, and in recent years there has been a surge of interest in craft beers. That is why we believe The Bottlecap, a speciality beer tavern, will flourish in the city of Eugene. Our target markets include beer connoisseurs, professionals, and college students. The identification of these three markets will help us to better direct our advertising and marketing efforts.

    4.1 Market Segmentation

    Our numbers are based upon the approximate population of Eugene and Springfield. Because many people are not drinkers, we decided upon the number 100,000 for the total of people considered available customers. We then segmented the available customers into the following groups:

    Beer Connoisseur: These people will be drawn to The Bottlecap because of their love and passion for beer. The main appeal to this segment will be the large number of hard-to-find beers that are available at our establishment.

    Professionals: The general bar-attending public from Eugene. This group will be drawn to the bar after work to relax in a friendly and classy atmosphere.

    College Students: University of Oregon and Lane Community College students. More bargain marketing will be aimed at the segment of the market.

    Microbrew bar business plan, market analysis summary chart image

    Market Analysis
    Year 1 Year 2 Year 3 Year 4 Year 5
    Potential Customers Growth CAGR
    Beer Conniseurs 12% 20,000 22,400 25,088 28,099 31,471 12.00%
    Professionals 8% 30,000 32,400 34,992 37,791 40,814 8.00%
    College Students 10% 20,000 22,000 24,200 26,620 29,282 10.00%
    Other 2% 30,000 30,600 31,212 31,836 32,473 2.00%
    Total 7.60% 100,000 107,400 115,492 124,346 134,040 7.60%

    4.2 Target Market Segment Strategy

    Both advertising and word-of-mouth will play a big part in the success of The Bottlecap. Therefore, we will strive to appeal to both new and old customers with a unique advertising campaign, including an online presence that will allow regulars to vote for which beers will be featured each week, as well as a friendly atmosphere that will keep the customers coming back.

    4.3 Service Business Analysis

    The pub and bar industry in Eugene has grown steadily in its past years. Many factors contribute to the large demand for good beer in Eugene. The climate in Eugene is extremely conducive to beer consumption. Current trends in the Northwest reflect the popularity of unique, quality microbrews. In short, Eugene is a haven for beer lovers.

    Due to intense competition, bar owners must look for ways to differentiate their place of business from others in order to achieve and maintain a competitive advantage. The founders of The Bottlecap realize the need for differentiation and strongly believe that combining a bar with a classy and entertaining atmosphere is the key to its success.

    4.4 Main Competitors

    Since the business will be located near the University of Oregon campus, our three main competitors will be Rennie’s Landing, Taylor’s Bar & Grill, and Max’s Tavern. During the first six months of operation we will aggressively advertise ourselves to University students to differentiate ourselves from the competition.

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    Strategy and Implementation Summary

    The main target audience will be University of Oregon students, therefore, we will principally advertise in the University of Oregon’s Daily Emerald and the Eugene Weekly. We will also advertise on various radio stations.

    5.1 Competitive Edge

    The Bottlecap will have an edge over the competition due to the large number of specialty beers that will be on tap. The companion website will also give regular customers additional incentive to keep returning to the bar due the ability to vote and influence what beers are on tap as the specialty beers each week. We will also further differentiate ourselves by creating a classy yet laid-back atmosphere that will include a big screen television and a high quality pool table.

    5.2 Marketing Strategy

    Both advertising and word-of-mouth will play a big part in the success of The Bottlecap. Therefore, we will strive to appeal to both new and old customers with a unique advertising campaign, including a online presence that will allow regulars to vote for which beers will be featured each week, as well as a friendly atmosphere that will keep the customers coming back.

    5.3 Sales Forecast

    The Bottlecap’s sales forecast was estimated by breaking down each day we are open into hours, and then estimating the number of beers we will sell during those hours. Our starting hours of operation will be 12 p.m.-3 a.m. Saturday, 12 p.m.-12 a.m. Sunday, and 4 p.m.-3 a.m. Wednesday-Friday.

    • On average, our numbers for Saturday turned out to be 35 beers an hour.
    • On Sunday, we estimated approximately 15 beers an hour.
    • Finally, the average for Wednesday-Friday turned out to be 25 beers an hour.

    We then estimated that approximately 30% of our sales will be domestic beer, 38% specialty microbrew beer, and 32% local microbrew beer. The unit prices and direct unit costs were based upon the cost of the same type of beers sold at local bars and the cost of kegs from local distributors. These numbers could drastically shift either way depending upon location, market saturation, and the customer base.

    Microbrew bar business plan, strategy and implementation summary chart image

    Microbrew bar business plan, strategy and implementation summary chart image

    Sales Forecast
    Year 1 Year 2 Year 3
    Unit Sales
    Specialty Microbrewed Beer 50,381 55,419 60,961
    Normal Microbrewed Beer 42,426 46,668 51,335
    Domestic Beer 39,775 43,752 48,127
    Other 0 0 0
    Total Unit Sales 132,583 145,839 160,423
    Unit Prices Year 1 Year 2 Year 3
    Specialty Microbrewed Beer $3.25 $3.25 $3.50
    Normal Microbrewed Beer $3.00 $3.00 $3.25
    Domestic Beer $2.50 $2.50 $2.75
    Other $0.00 $0.00 $0.00
    Sales
    Specialty Microbrewed Beer $163,739 $180,112 $213,364
    Normal Microbrewed Beer $127,279 $140,004 $166,839
    Domestic Beer $99,437 $109,380 $132,349
    Other $0 $0 $0
    Total Sales $390,456 $429,496 $512,552
    Direct Unit Costs Year 1 Year 2 Year 3
    Specialty Microbrewed Beer $0.81 $0.81 $0.86
    Normal Microbrewed Beer $0.65 $0.65 $0.70
    Domestic Beer $0.48 $0.48 $0.53
    Other $0.00 $0.00 $0.00
    Direct Cost of Sales
    Specialty Microbrewed Beer $40,809 $44,889 $52,426
    Normal Microbrewed Beer $27,577 $30,334 $35,935
    Domestic Beer $19,092 $21,001 $25,507
    Other $0 $0 $0
    Subtotal Direct Cost of Sales $87,478 $96,225 $113,868

    5.4 Milestones

    The Bottlecap’s management team has established some basic milestones to keep the business plan priorities in place. Responsibility for implementation falls on the shoulders of Tyler Vogel and Dashiell Lavine. The Milestones table below will be updated as the year progresses using the actual tables. New milestones will be added as the first year of operations commences.

    Milestones
    Milestone Start Date End Date Budget Manager Department
    Business Plan 5/1/2001 5/30/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Secure Start-up Funding 6/15/2001 7/1/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Site Selection 7/1/2001 7/15/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Architect Designs 8/1/2001 9/1/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Designer Proposal 8/1/2001 9/15/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Technology Design 8/1/2001 9/15/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Year 1 Plan 9/1/2001 10/5/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Personnel Plan 10/1/2001 10/10/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Accounting Plan 10/1/2001 10/5/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Licensing 12/1/2001 12/15/2001 $1,000 Tyler Vogel and Dashiell Lavine Admin
    Totals $10,000

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    Management Summary

    The Bottlecap is owned and operated by Dashiell Lavine and Tyler Vogel. The company, being small in nature, requires a simple organizational structure. Implementation of this organizational form calls for the owners and the one manager to make all of the major management decisions in addition to monitoring all other business activities.

    6.1 Management Team

    Specific details are omitted in this sample plan. Biographies and resumes have not been included for privacy purposes.

    6.2 Personnel Plan

    The staff will consist of six part-time employees working twenty hours a week at $6.50 per hour. In addition, a manager who oversees daily operations will be employed to work forty hours a week at $10.00 per hour. Dashiell Lavine and Tyler Vogel will help with management decisions and will run the back end of the business, which includes the website and administrative duties. Two of the private investors, Bob Adler and Joe Smith, will not be included in management decisions. This will allow disputes to be solved with less hassle. Because of these characteristics, there are fewer coordination problems seen at The Bottlecap than are common within larger organizational chains. This strategy will enable The Bottlecap to react quickly to changes in the market.

    Personnel Plan
    Year 1 Year 2 Year 3
    Production Personnel
    Manager $19,680 $19,980 $20,664
    Part-Time Employee 1 $6,396 $6,596 $6,796
    Part-Time Employee 2 $6,396 $6,596 $6,796
    Part-Time Employee 3 $6,396 $6,596 $6,796
    Part-Time Employee 4 $6,396 $6,596 $6,796
    Part-Time Employee 5 $6,396 $6,596 $6,796
    Part-Time Employee 6 $6,396 $6,596 $6,796
    Other $0 $6,596 $6,796
    Subtotal $58,056 $66,152 $68,236
    Sales and Marketing Personnel
    Name or title $0 $0 $0
    Other $0 $0 $0
    Subtotal $0 $0 $0
    General and Administrative Personnel
    Dashiell Lavine (Part-Owner) $24,000 $25,000 $26,000
    Tyler Vogel (Part-Owner) $24,000 $25,000 $26,000
    Other $0 $0 $0
    Subtotal $48,000 $50,000 $52,000
    Other Personnel
    Name or title $0 $0 $0
    Other $0 $0 $0
    Subtotal $0 $0 $0
    Total People 0 0 0
    Total Payroll $106,056 $116,152 $120,236

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    Financial Plan

    The following section will lay out the general financial plan including our break-even analysis, profit and loss, cash flow, general assumptions, the balance sheet, and the business ratios.

    7.1 Important Assumptions

    The following table summarizes important assumptions necessary for good financial planning.

    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 25.42% 25.00% 25.42%
    Other 0 0 0

    7.2 Break-even Analysis

    The following table and chart summarize our break-even analysis. To break even we must sell at least 5,300 beers based upon the per unit cost. Therefore, customer traffic will become a big factor when it comes to the success of The Bottlecap.

    Microbrew bar business plan, financial plan chart image

    Break-even Analysis
    Monthly Units Break-even 5,335
    Monthly Revenue Break-even $15,713
    Assumptions:
    Average Per-Unit Revenue $2.94
    Average Per-Unit Variable Cost $0.66
    Estimated Monthly Fixed Cost $12,192

    7.3 Key Financial Indicators

    The following chart compares five key indicators in regards to how much they change over the course of the first three years of plan implementation.

    Microbrew bar business plan, financial plan chart image

    7.4 Projected Profit and Loss

    One of the keys to success with a beer tavern such as The Bottlecap is the gross margin because of the low cost of buying beer in bulk. The profit-per-unit becomes very important because of the relatively high costs associated with running such an establishment.

    Microbrew bar business plan, financial plan chart image

    Microbrew bar business plan, financial plan chart image

    Microbrew bar business plan, financial plan chart image

    Microbrew bar business plan, financial plan chart image

    Pro Forma Profit and Loss
    Year 1 Year 2 Year 3
    Sales $390,456 $429,496 $512,552
    Direct Cost of Sales $87,478 $96,225 $113,868
    Production Payroll $58,056 $66,152 $68,236
    Other $24,000 $30,000 $40,000
    Total Cost of Sales $169,534 $192,377 $222,104
    Gross Margin $220,922 $237,119 $290,447
    Gross Margin % 56.58% 55.21% 56.67%
    Operating Expenses
    Sales and Marketing Expenses
    Sales and Marketing Payroll $0 $0 $0
    Advertising/Promotion $39,000 $50,000 $75,000
    Miscellaneous $6,000 $9,000 $12,000
    Total Sales and Marketing Expenses $45,000 $59,000 $87,000
    Sales and Marketing % 11.52% 13.74% 16.97%
    General and Administrative Expenses
    General and Administrative Payroll $48,000 $50,000 $52,000
    Sales and Marketing and Other Expenses $0 $0 $0
    Depreciation $0 $0 $0
    Leased Equipment $0 $0 $0
    Utilities $9,000 $11,000 $12,000
    Insurance $8,400 $9,500 $11,000
    Rent $18,000 $12,000 $12,000
    Payroll Taxes $15,908 $17,423 $18,035
    Other General and Administrative Expenses $0 $0 $0
    Total General and Administrative Expenses $99,308 $99,923 $105,035
    General and Administrative % 25.43% 23.27% 20.49%
    Other Expenses:
    Other Payroll $0 $0 $0
    Consultants $0 $0 $0
    Contract/Consultants $2,000 $0 $0
    Total Other Expenses $2,000 $0 $0
    Other % 0.51% 0.00% 0.00%
    Total Operating Expenses $146,308 $158,923 $192,035
    Profit Before Interest and Taxes $74,613 $78,196 $98,412
    EBITDA $74,613 $78,196 $98,412
    Interest Expense $75 $0 $0
    Taxes Incurred $18,262 $19,549 $25,013
    Net Profit $56,276 $58,647 $73,399
    Net Profit/Sales 14.41% 13.65% 14.32%

    7.5 Projected Cash Flow

    The following chart and table explain the key elements of the pro forma cash flow.

    Microbrew bar business plan, financial plan chart image

    Pro Forma Cash Flow
    Year 1 Year 2 Year 3
    Cash Received
    Cash from Operations
    Cash Sales $390,456 $429,496 $512,552
    Subtotal Cash from Operations $390,456 $429,496 $512,552
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $2,000 $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 $3,000 $0 $0
    Subtotal Cash Received $395,456 $429,496 $512,552
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $106,056 $116,152 $120,236
    Bill Payments $212,551 $262,072 $316,120
    Subtotal Spent on Operations $318,607 $378,224 $436,356
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $2,000 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $50,000 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    Subtotal Cash Spent $370,607 $378,224 $436,356
    Net Cash Flow $24,849 $51,272 $76,195
    Cash Balance $32,769 $84,040 $160,236

    7.6 Projected Balance Sheet

    The table below is the complete balance sheet which includes all assets, liabilities, and capital.

    Pro Forma Balance Sheet
    Year 1 Year 2 Year 3
    Assets
    Current Assets
    Cash $32,769 $84,040 $160,236
    Inventory $12,839 $14,122 $16,712
    Other Current Assets $50,000 $50,000 $50,000
    Total Current Assets $95,607 $148,163 $226,947
    Long-term Assets
    Long-term Assets $0 $0 $0
    Accumulated Depreciation $0 $0 $0
    Total Long-term Assets $0 $0 $0
    Total Assets $95,607 $148,163 $226,947
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable $27,131 $21,039 $26,425
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    Subtotal Current Liabilities $27,131 $21,039 $26,425
    Long-term Liabilities $0 $0 $0
    Total Liabilities $27,131 $21,039 $26,425
    Paid-in Capital $78,000 $78,000 $78,000
    Retained Earnings ($65,800) ($9,524) $49,123
    Earnings $56,276 $58,647 $73,399
    Total Capital $68,476 $127,123 $200,522
    Total Liabilities and Capital $95,607 $148,163 $226,947
    Net Worth $68,476 $127,123 $200,522

    7.7 Business Ratios

    The Ratios table shows important ratios for The Bottlecap. These ratios are derived from the Standard Industry Classification (SIC) Index, code 5813.

    Ratio Analysis
    Year 1 Year 2 Year 3 Industry Profile
    Sales Growth 0.00% 10.00% 19.34% 1.90%
    Percent of Total Assets
    Inventory 13.43% 9.53% 7.36% 3.10%
    Other Current Assets 52.30% 33.75% 22.03% 44.60%
    Total Current Assets 100.00% 100.00% 100.00% 52.30%
    Long-term Assets 0.00% 0.00% 0.00% 47.70%
    Total Assets 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 28.38% 14.20% 11.64% 28.20%
    Long-term Liabilities 0.00% 0.00% 0.00% 23.10%
    Total Liabilities 28.38% 14.20% 11.64% 51.30%
    Net Worth 71.62% 85.80% 88.36% 48.70%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 56.58% 55.21% 56.67% 42.30%
    Selling, General & Administrative Expenses 42.26% 41.55% 42.27% 23.40%
    Advertising Expenses 9.99% 11.64% 14.63% 2.40%
    Profit Before Interest and Taxes 19.11% 18.21% 19.20% 2.80%
    Main Ratios
    Current 3.52 7.04 8.59 1.14
    Quick 3.05 6.37 7.96 0.74
    Total Debt to Total Assets 28.38% 14.20% 11.64% 51.30%
    Pre-tax Return on Net Worth 108.85% 61.51% 49.08% 5.20%
    Pre-tax Return on Assets 77.96% 52.78% 43.36% 10.60%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 14.41% 13.65% 14.32% n.a
    Return on Equity 82.18% 46.13% 36.60% n.a
    Activity Ratios
    Inventory Turnover 10.91 7.14 7.39 n.a
    Accounts Payable Turnover 8.83 12.17 12.17 n.a
    Payment Days 27 34 27 n.a
    Total Asset Turnover 4.08 2.90 2.26 n.a
    Debt Ratios
    Debt to Net Worth 0.40 0.17 0.13 n.a
    Current Liab. to Liab. 1.00 1.00 1.00 n.a
    Liquidity Ratios
    Net Working Capital $68,476 $127,123 $200,522 n.a
    Interest Coverage 994.84 0.00 0.00 n.a
    Additional Ratios
    Assets to Sales 0.24 0.34 0.44 n.a
    Current Debt/Total Assets 28% 14% 12% n.a
    Acid Test 3.05 6.37 7.96 n.a
    Sales/Net Worth 5.70 3.38 2.56 n.a
    Dividend Payout 0.00 0.00 0.00 n.a

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    Appendix

    Sales Forecast
    Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Unit Sales
    Specialty Microbrewed Beer 0% 2,356 2,592 2,851 3,136 3,449 3,794 4,174 4,591 5,050 5,555 6,111 6,722
    Normal Microbrewed Beer 0% 1,984 2,182 2,401 2,641 2,905 3,195 3,515 3,866 4,253 4,678 5,146 5,661
    Domestic Beer 0% 1,860 2,046 2,251 2,476 2,723 2,996 3,295 3,625 3,987 4,386 4,824 5,307
    Other 0% 0 0 0 0 0 0 0 0 0 0 0 0
    Total Unit Sales 6,200 6,820 7,502 8,252 9,077 9,985 10,984 12,082 13,290 14,619 16,081 17,689
    Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Specialty Microbrewed Beer $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25
    Normal Microbrewed Beer $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
    Domestic Beer $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50
    Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
    Sales
    Specialty Microbrewed Beer $7,657 $8,423 $9,265 $10,191 $11,211 $12,332 $13,565 $14,921 $16,413 $18,055 $19,860 $21,846
    Normal Microbrewed Beer $5,952 $6,547 $7,202 $7,922 $8,714 $9,586 $10,544 $11,599 $12,759 $14,035 $15,438 $16,982
    Domestic Beer $4,650 $5,115 $5,627 $6,189 $6,808 $7,489 $8,238 $9,062 $9,968 $10,964 $12,061 $13,267
    Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Total Sales $18,259 $20,085 $22,093 $24,303 $26,733 $29,406 $32,347 $35,582 $39,140 $43,054 $47,359 $52,095
    Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Specialty Microbrewed Beer 0.00% $0.81 $0.81 $0.81 $0.81 $0.81 $0.81 $0.81 $0.81 $0.81 $0.81 $0.81 $0.81
    Normal Microbrewed Beer 0.00% $0.65 $0.65 $0.65 $0.65 $0.65 $0.65 $0.65 $0.65 $0.65 $0.65 $0.65 $0.65
    Domestic Beer 0.00% $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48 $0.48
    Other 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
    Direct Cost of Sales
    Specialty Microbrewed Beer $1,908 $2,099 $2,309 $2,540 $2,794 $3,073 $3,381 $3,719 $4,091 $4,500 $4,950 $5,445
    Normal Microbrewed Beer $1,290 $1,419 $1,560 $1,716 $1,888 $2,077 $2,285 $2,513 $2,764 $3,041 $3,345 $3,679
    Domestic Beer $893 $982 $1,080 $1,188 $1,307 $1,438 $1,582 $1,740 $1,914 $2,105 $2,316 $2,547
    Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Subtotal Direct Cost of Sales $4,091 $4,500 $4,950 $5,445 $5,989 $6,588 $7,247 $7,972 $8,769 $9,646 $10,610 $11,671
    Personnel Plan
    Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Production Personnel
    Manager $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640
    Part-Time Employee 1 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533
    Part-Time Employee 2 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533
    Part-Time Employee 3 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533
    Part-Time Employee 4 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533
    Part-Time Employee 5 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533
    Part-Time Employee 6 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533 $533
    Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Subtotal $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838
    Sales and Marketing Personnel
    Name or title $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    General and Administrative Personnel
    Dashiell Lavine (Part-Owner) $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
    Tyler Vogel (Part-Owner) $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
    Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Subtotal $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
    Other Personnel
    Name or title $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Total People 0 0 0 0 0 0 0 0 0 0 0 0
    Total Payroll $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838

    General Assumptions
    Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
    Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
    Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
    Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
    Other 0 0 0 0 0 0 0 0 0 0 0 0

    Pro Forma Profit and Loss
    Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Sales $18,259 $20,085 $22,093 $24,303 $26,733 $29,406 $32,347 $35,582 $39,140 $43,054 $47,359 $52,095
    Direct Cost of Sales $4,091 $4,500 $4,950 $5,445 $5,989 $6,588 $7,247 $7,972 $8,769 $9,646 $10,610 $11,671
    Production Payroll $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838 $4,838
    Other $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
    Total Cost of Sales $10,929 $11,338 $11,788 $12,283 $12,827 $13,426 $14,085 $14,810 $15,607 $16,484 $17,448 $18,509
    Gross Margin $7,330 $8,747 $10,306 $12,020 $13,906 $15,980 $18,262 $20,772 $23,533 $26,570 $29,911 $33,586
    Gross Margin % 40.15% 43.55% 46.65% 49.46% 52.02% 54.34% 56.46% 58.38% 60.13% 61.71% 63.16% 64.47%
    Operating Expenses
    Sales and Marketing Expenses
    Sales and Marketing Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Advertising/Promotion $5,000 $4,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
    Miscellaneous $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
    Total Sales and Marketing Expenses $5,500 $4,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
    Sales and Marketing % 30.12% 22.40% 15.84% 14.40% 13.09% 11.90% 10.82% 9.84% 8.94% 8.13% 7.39% 6.72%
    General and Administrative Expenses
    General and Administrative Payroll $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
    Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Utilities $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750
    Insurance $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
    Rent $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
    Payroll Taxes 15% $1,326 $1,326 $1,326 $1,326 $1,326 $1,326 $1,326 $1,326 $1,326 $1,326 $1,326 $1,326
    Other General and Administrative Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Total General and Administrative Expenses $8,276 $8,276 $8,276 $8,276 $8,276 $8,276 $8,276 $8,276 $8,276 $8,276 $8,276 $8,276
    General and Administrative % 45.32% 41.20% 37.46% 34.05% 30.96% 28.14% 25.58% 23.26% 21.14% 19.22% 17.47% 15.89%
    Other Expenses:
    Other Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Contract/Consultants $1,000 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Total Other Expenses $1,000 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Other % 5.48% 4.98% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
    Total Operating Expenses $14,776 $13,776 $11,776 $11,776 $11,776 $11,776 $11,776 $11,776 $11,776 $11,776 $11,776 $11,776
    Profit Before Interest and Taxes ($7,445) ($5,029) ($1,470) $244 $2,130 $4,204 $6,486 $8,996 $11,757 $14,794 $18,135 $21,810
    EBITDA ($7,445) ($5,029) ($1,470) $244 $2,130 $4,204 $6,486 $8,996 $11,757 $14,794 $18,135 $21,810
    Interest Expense $0 $0 $0 $0 $17 $17 $17 $8 $8 $8 $0 $0
    Taxes Incurred ($2,234) ($1,257) ($368) $61 $528 $1,047 $1,617 $2,247 $2,937 $3,696 $4,534 $5,452
    Net Profit ($5,212) ($3,771) ($1,103) $183 $1,585 $3,141 $4,852 $6,741 $8,812 $11,089 $13,601 $16,357
    Net Profit/Sales -28.54% -18.78% -4.99% 0.75% 5.93% 10.68% 15.00% 18.94% 22.51% 25.76% 28.72% 31.40%

    Pro Forma Cash Flow
    Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Cash Received
    Cash from Operations
    Cash Sales $18,259 $20,085 $22,093 $24,303 $26,733 $29,406 $32,347 $35,582 $39,140 $43,054 $47,359 $52,095
    Subtotal Cash from Operations $18,259 $20,085 $22,093 $24,303 $26,733 $29,406 $32,347 $35,582 $39,140 $43,054 $47,359 $52,095
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    New Current Borrowing $0 $0 $0 $0 $2,000 $0 $0 $0 $0 $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    New Investment Received $0 $0 $0 $3,000 $0 $0 $0 $0 $0 $0 $0 $0
    Subtotal Cash Received $18,259 $20,085 $22,093 $27,303 $28,733 $29,406 $32,347 $35,582 $39,140 $43,054 $47,359 $52,095
    Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Expenditures from Operations
    Cash Spending $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838 $8,838
    Bill Payments $595 $17,773 $15,448 $14,885 $15,862 $16,948 $18,130 $19,429 $20,852 $22,425 $24,154 $26,050
    Subtotal Spent on Operations $9,433 $26,611 $24,286 $23,723 $24,700 $25,786 $26,968 $28,267 $29,690 $31,263 $32,992 $34,888
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $1,000 $0 $0 $1,000 $0
    Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Purchase Other Current Assets $5,000 $0 $0 $5,000 $0 $0 $0 $20,000 $0 $0 $20,000 $0
    Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Subtotal Cash Spent $14,433 $26,611 $24,286 $28,723 $24,700 $25,786 $26,968 $49,267 $29,690 $31,263 $53,992 $34,888
    Net Cash Flow $3,826 ($6,526) ($2,192) ($1,421) $4,033 $3,620 $5,379 ($13,685) $9,450 $11,791 ($6,633) $17,207
    Cash Balance $11,746 $5,220 $3,027 $1,606 $5,639 $9,260 $14,639 $954 $10,403 $22,195 $15,562 $32,769
    Pro Forma Balance Sheet
    Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Assets Starting Balances
    Current Assets
    Cash $7,920 $11,746 $5,220 $3,027 $1,606 $5,639 $9,260 $14,639 $954 $10,403 $22,195 $15,562 $32,769
    Inventory $1,280 $4,500 $4,950 $5,445 $5,989 $6,588 $7,247 $7,972 $8,769 $9,646 $10,610 $11,671 $12,839
    Other Current Assets $0 $5,000 $5,000 $5,000 $10,000 $10,000 $10,000 $10,000 $30,000 $30,000 $30,000 $50,000 $50,000
    Total Current Assets $9,200 $21,246 $15,169 $13,472 $17,596 $22,228 $26,507 $32,611 $39,723 $50,049 $62,805 $77,233 $95,607
    Long-term Assets
    Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Total Assets $9,200 $21,246 $15,169 $13,472 $17,596 $22,228 $26,507 $32,611 $39,723 $50,049 $62,805 $77,233 $95,607
    Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
    Current Liabilities
    Accounts Payable $0 $17,258 $14,953 $14,358 $15,299 $16,345 $17,483 $18,735 $20,107 $21,621 $23,288 $25,115 $27,131
    Current Borrowing $0 $0 $0 $0 $0 $2,000 $2,000 $2,000 $1,000 $1,000 $1,000 $0 $0
    Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Subtotal Current Liabilities $0 $17,258 $14,953 $14,358 $15,299 $18,345 $19,483 $20,735 $21,107 $22,621 $24,288 $25,115 $27,131
    Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    Total Liabilities $0 $17,258 $14,953 $14,358 $15,299 $18,345 $19,483 $20,735 $21,107 $22,621 $24,288 $25,115 $27,131
    Paid-in Capital $75,000 $75,000 $75,000 $75,000 $78,000 $78,000 $78,000 $78,000 $78,000 $78,000 $78,000 $78,000 $78,000
    Retained Earnings ($65,800) ($65,800) ($65,800) ($65,800) ($65,800) ($65,800) ($65,800) ($65,800) ($65,800) ($65,800) ($65,800) ($65,800) ($65,800)
    Earnings $0 ($5,212) ($8,983) ($10,086) ($9,903) ($8,318) ($5,177) ($325) $6,416 $15,228 $26,317 $39,919 $56,276
    Total Capital $9,200 $3,988 $217 ($886) $2,297 $3,882 $7,023 $11,875 $18,616 $27,428 $38,517 $52,119 $68,476
    Total Liabilities and Capital $9,200 $21,246 $15,169 $13,472 $17,596 $22,228 $26,507 $32,611 $39,723 $50,049 $62,805 $77,233 $95,607
    Net Worth $9,200 $3,988 $217 ($886) $2,297 $3,882 $7,023 $11,875 $18,616 $27,428 $38,517 $52,119 $68,476

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