Tsunami Pizza is a new pizza delivery service started in the city’s westside area. John Lindsay, owner of Tsunami Pizza, has seven years experience in the restaurant industry. His focus is to satisfy the customer’s demand for a quality pizza that is delivered quickly with a smile. Tsunami Pizza will serve a seven mile area with over 25,000 residents. Overhead will be kept low so that Tsunami Pizza’s prices will beat the competition. Delivery people will use their own vehicles so the business will not have to purchase delivery vehicles.
2.1 Start-up Summary
The start-up cost of Tsunami Pizza will consist primarily of kitchen equipment. John Lindsay will invest $50,000.
2.1.1 Company Ownership
Tsunami Pizza is owned by John Lindsay.
|Delivery Paper Products||$3,000|
|Leased Kitchen Equipment||$20,000|
|Promotional Signs for Delivery Cars||$2,000|
|Total Start-up Expenses||$37,000|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$37,000|
|Start-up Assets to Fund||$13,000|
|Total Funding Required||$50,000|
|Non-cash Assets from Start-up||$8,000|
|Cash Requirements from Start-up||$5,000|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$5,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$50,000|
|Loss at Start-up (Start-up Expenses)||($37,000)|
|Total Capital and Liabilities||$13,000|
2.2 Company Locations and Facilities
Tsunami Pizza will be located at the corner of 11th and Tyler. These two streets are the area’s busiest and provide easy access to our service area.