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Bar & Brewery icon Singles Bar Business Plan

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Colloquy Grog Shop

Executive Summary

Colloquy Grog Shop is a unique local bar/coffee/tapas house that provides a friendly, effective place singles can meet. Colloquy Grog Shop is not your typical bar where people go to meet other singles, it has a unique service called the structured conversation system that is quite effective for allowing singles to meet each other and provide them with valuable insight into the other person through reflective conversation.

The structured system provide an atmosphere that lowers inhibitions and breeds confidence, allowing singles to meet other singles and gain insight into their personality by way of thoughtful discourse. Meeting people is one of the biggest hurdles for 25-45 year old singles. Colloquy Grog Shop provides this group with an effective solution to this problem. Colloquy Grog Shop will reach profitability by year two and will have earned comfortable profits of by the end of year three.

1.1 Objectives

The objectives for the first three years of operation include:

  • To create a local tavern/coffee shop whose primary goal is to exceed customer’s expectations.
  • To increase the number of clients by 20% per year.
  • To develop a sustainable start-up business surviving off of its own cash flow.

1.2 Mission

Colloquy Grog Shop’s mission is to provide a neighborhood bar/coffee shop where single people can meet. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

1.3 Keys to Success

The keys to success will be to constantly address our customer’s needs.

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Company Summary

Colloquy Grog Shop is a bar/coffee shop designed to bring together singles and create an environment that allows people to comfortably meet each other.  This is done through a structured conversation system that eliminates uncertainty regarding the social dynamic by creating structure through the use of conversation topics assigned to each table.  This structure allows people to be feel more comfortable in meeting new people at the bar/coffee shop because the uncertainty of how to act is eliminated, the structure guides the interaction with the people at the table. 

The Colloquy Grog Shop will be set up in the hip, upcoming industrial area of NW Portland.  This area is a rapidly emerging night stop for the targeted demographic.  Because the rented space will be an old warehouse the lease costs are quite reasonable.  The tradeoff for the very reasonable lease is slightly higher tenant improvements required at start up.

2.1 Company Ownership

Colloquy Grog Shop is an Oregon corporation solely owned by Karen Kibbutz.

2.2 Start-up Summary

Colloquy Grog Shop will incur the following start-up costs:

  • Commercial espresso machine.
  • Commercial coffee machine, grinder.
  • Refrigerator and freezer.
  • Dishwasher.
  • Bar counter and bar stools.
  • Eight tap beer system (including refrigerator unit) and pint glasses.
  • Point of sale terminal with cash register.
  • Computer system with CD-RW, printer, Microsoft Office, QuickBooks Pro and an Internet connection.
  • 15 four-top tables and 60 chairs.
  • Installation of sinks in the bar area.
  • Commercial oven and range.
  • Large counter.
  • Assorted cook ware and utensils.
  • Three telephones, fax machine and copier.
  • Renovations.

Please note that the following items which are considered assets to be used for more than a year will be labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.

Start-up Funding
Start-up Expenses to Fund $1,150
Start-up Assets to Fund $118,850
Total Funding Required $120,000
Assets
Non-cash Assets from Start-up $50,000
Cash Requirements from Start-up $68,850
Additional Cash Raised $0
Cash Balance on Starting Date $68,850
Total Assets $118,850
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
Karen $40,000
Family and friends $80,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $120,000
Loss at Start-up (Start-up Expenses) ($1,150)
Total Capital $118,850
Total Capital and Liabilities $118,850
Total Funding $120,000
Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $150
Other $0
Total Start-up Expenses $1,150
Start-up Assets
Cash Required $68,850
Other Current Assets $0
Long-term Assets $50,000
Total Assets $118,850
Total Requirements $120,000

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Products

Colloquy Grog Shop sells the following:

  • Eight microbrew beers on draft and in bottles: beer is served for two reasons.  One, alcohol reduces inhibition, making it easier for people to meet and interact. Two, draft beer generates wonderful profits.  Microbeers are chosen because they are of higher quality than large production beers and our target segment prefers them.
  • Espresso, cappuccino, coffee, and other coffee/espresso drinks: coffee and coffee-related drinks are hugely popular, particularly in the Pacific Northwest.  Northwesterners expect good coffee/espresso at most food/drink establishments and it is often associated with good conversation.
  • An assortment of different tapas: tapas are chosen because they can be relatively easy to make, the offerings can be changed frequently, and tapas are more community oriented, meaning they are designed for a table/multiple people to share.  This reinforces Colloquy Grog Shop mission of bringing new people together.

The service offerings are based on a system for singles to meet new people.  This is accomplished through a structured conversation system.  The Grog Shop is divided into two sections: a smaller section of tables for general customers, and another larger section for singles to come and meet new people.

The singles section is composed of 4-top tables (tables for seating for four). Each table will be marked with a topic of conversation in the center.  Throughout the evening as there is turnover of the table or the conversation is exhausted, the server will introduce a new topic. The topics are far reaching, some are recent news or sports, while others are intelectual, and some are philosophical.  The bulk of the topics will be of the latter varieties as people that are interested in meeting people through the conduit of conversation will typically prefer heavier stuff to provide more insight into that person.

If you ask a majority of single 25-45 year olds, most will say they have difficulty meeting new people.  Regular bars are not an ideal place to meet people because beyond their visual image, it is quite difficult to learn anything material about the person to determine if there are commonalities. The typical bar has loud music and is not geared up for serious conversation.

Colloquy Grog Shop creates a setting in a bar/coffee shop that encourages thoughtful conversation, allowing patrons to gain insight into the other singles.  The key to the conversation system is structure.  The rules are clearly established.  Singles sit down at specific tables and discuss the assigned topic of conversation. The conversation is used to elicit insight into the other person, their values and perspectives as well as implicit, and sometimes explicit, insight to their background and past. 

The structured conversation system is successful because it is reduces ambiguity or uncertainty in the singles social scene allowing people to feel more comfortable in the setting and open up more to the new people.  Additionally, for intellectually-minded people, it allows them to find people with similar interests, whether the similarity is based in the topic of conversation of more generally in conversation itself.

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Market Analysis Summary

Colloquy Grog Shop’s market can be broken down into two different groups, singles and non-singles.  Both groups are well educated and are middle to upper-middle class.

Colloquy Grog Shop competes within the bar/coffee shop industry with a market niche focusing on singles activities.  By concentrating on these single activities, Colloquy Grog Shop also faces competition from other singles groups.

4.1 Market Segmentation

Colloquy Grog Shop’s customers can be broken down into two groups: singles, and non-singles.  The non-singles group is smaller by virtue of the fact that if you are meeting someone whom you already know, the two of you can come up with the topic of conversation yourself, therefore, Grog Shop offers this group less value.  The demographics for the non-singles is similar to the singles, to be listed below. The demographics of the singles are:

  • Single: self evident.
  • Professional: this characteristic is intuitive since the the underlying element of Colloquy Grog Shop is thoughtful conversation, and most, if not all professionals are intelligent and appreciate thought-provoking conversation.
  • Income over $40,000: this to a large degree correlates to the fact that they are professional.  The one exception are teachers who are underpaid relative to their contribution to society.
  • Age 25-45: the largest group of singles looking for companions.
Singles bar business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Singles 9% 335,412 365,599 398,503 434,368 473,461 9.00%
Non-singles 7% 301,215 322,300 344,861 369,001 394,831 7.00%
Other 0% 0 0 0 0 0 0.00%
Total 8.07% 636,627 687,899 743,364 803,369 868,292 8.07%

4.2 Target Market Segment Strategy

Colloquy Grog Shop strategy will be based on communicating Grog Shop’s value to the targeted segments.  This will be done through a variety of methods.  The first method will be strategically placed advertisements.  One place that will be used for advertisements is the Willamette Weekly, the liberal arts magazine that details all of the entertainment in Portland.  This will be the main source of advertisements because the demographics of their readership are fairly similar to Colloquy Grog Shop’s demographics. 

Another source of marketing will be done with strategic relationships with companies that have similar customer demographics.  One prime example is the Multnomah Athletic Club.  While the clubs patrons are not necessarily overwhelmingly single, the rest of the demographics match.  The MAC is a fairly exclusive downtown athletic club that by virtue of the memberships costs, attracts professionals.  The strategic relationship with be mutually beneficial where both organizations will develop visibility for each other. 

The other form of advertising will be using “grassroots” methods where customers will be given coupons for their friends to try Colloquy Grog Shop for the first time.  The coupon will be an economic incentive for the newcomer to try Colloquy Grog Shop.  The coupon also has the added force of a referral from a friend.

4.3 Industry Analysis

Colloquy Grog Shop competes within the general bar/coffee shop industry.

The bar industry is a very broad industry.  Participants in the industry do not seriously focus on specific niches.  Sure there is a flavor to specific bars, but it is not an overwhelming trait.  An example of this might be a sports bar that will typically have multiple TVs with sports on.  Beyond this “decoration,” there is not a significantly prevailing theme other than the place that serves alcohol.  The value that bars offer is a place where someone can go to get alcohol in a social setting.  A secondary benefit is an opportunity to meet people.  Please see the Product and Services section for commentary on the effectiveness of a bar’s ability for people to meet people.  To conclude, most bars have some sort of theme, but overriding theme is a place to socially consume alcohol.

The coffee shop industry is made up of diverse coffee shops that typically serve coffee and assorted coffee drinks as well as various food offerings.  Coffee shops are places where people will go to enjoy their favorite coffee beverage, to read a newspaper and relax, or to meet people and engage in conversation.  This last purpose of a coffee shop is an unstructured, unstated purpose.  It takes place at the hands of the patrons as opposed to a concerted effort by the establishment.

4.3.1 Competition and Buying Patterns

The competition comes from several different sources.

  • Bars: there are many different types of bars or taverns.  Some are better than others for meeting people, however, none have the business mission to bring together singles.
  • Coffee shops: coffee shops are typically an easy-going social setting that does lend itself for people to meet others.  Conversations occur in part because of the historical underpinning of coffee houses, in part by virtue of the fact that the background music is not blaring. Coffees shops rarely have any type of organized activities to bring singles together.
  • Other events activities aimed at bringing together singles: one phenomenon that has started in New York City and moved to a few other larger cities (not including Portland) is an activity that has a long rectangular table that always has one seat opposing the other.  People will sit down and with females on one side and males on the other (this seating arrangement is for heterosexual gatherings, the homosexual gatherings will obviously have the same sex on both sides) and will have a limited number of minutes (usually 10) to chat. Typically, conversations can be be about anything, however you are not to reveal the job/profession that you are involved in, beyond that, anything is fair game.  The table rotates and you end up speaking with a lot of different people. You then create a list of the top five that you would like to speak with again and if the matching person also has you on their list, phone numbers are released to the two people.  Another activity might be some sort of outdoor activity like hiking or rafting and it is organized as a singles event.  There are also other type of singles events, too numerous to mention.  Lastly, there are resources like personal sections in local papers where people can post or respond to personal advertisements.

Every person has their own method of meeting people, some more useful than others.  Colloquy Grog Shop predicts singles will abandon or at least supplement their current method of meeting people with the Grog Shop’s activities as they are thoughtfully designed to achieve the goal of introducing like minded individuals.

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Strategy and Implementation Summary

Colloquy Grog Shop’s implementation strategy is based on a targeted advertising campaign as well as word-of-mouth referrals.  Colloquy Grog Shop is confident that the referrals will be an excellent source of business because of the uniqueness of their singles service as well as its sheer effectiveness.  Colloquy Grog Shop will steadily build a loyal customer base.

5.1 Competitive Edge

Colloquy Grog Shop’s competitive edge is based on their unique approach to getting singles together using the structured conversation system.  This system was detailed in the Product and Services section, please refer to that section for more information. 

This system is a competitive edge because most bars/taverns to not have a niche that they are truly concentrating on.  While every bar or coffee shop has a certain “flavor” and that is why someone will choose one bar or another, the flavor is only surface deep.  The business model of the establishment is to sell alcohol and provide a social setting.  Beyond these two values, there is little other genuine value that the establishments try to provide. 

Colloquy Grog Shop is distinguished by the fact that their business model concentrates on developing value for  customers beyond serving drinks.  The Grog Shop develops an effective, albeit inherently structured or artificial, social setting that encourages meeting like-minded individuals.  Providing the drinks is the source of income, an ancillary part of the business model.  Generating value for the customers is the main focus, if the customers are happy then the revenue will follow (assuming of course that proper marketing and financial controls are employed).  Concentrating on the client’s needs beyond serving alcohol is the distinguishing characteristic that will allow Colloquy Grog Shop to rapidly gain market share.

5.2 Sales Strategy

Stated in an earlier section, the competitive advantage of the structured conversation system is what will drive people to Colloquy Grog Shop and will develop long-lasting customer relationships.  What will drive the bottom line beyond creating loyal customers, is revenue generated from sales of drinks and food. 

Providing a rotating selection of premium micro beers will be one sales strategy.  Micro beers, particularly on tap, have great profit margins. The servers will be well trained in the different beer offerings to provide the customers with in-depth information.  Offering a rotating selection will encourage people to visit often and try new beers.

Offering an ever changing selection of tapas encourages repeat visits.  Additionally, the choice of tapas encourages people to order several, increasing the per person bill because 1) the tapas offer a reasonable portion of one thing that in itself is not filling for a meal by itself, and 2) tapas are a community food where the table can order many tapas and everyone gets to try some.

Acknowledging that the food and drink are the revenue drivers, the servers will be well trained in the products as well as upselling. 

5.2.1 Sales Forecast

The first two months will be used to set up the physical location, hiring personnel, as well as establishing vendor relationships getting an alcohol license.  The third month will be the grand opening.  Business during the second month will be understandably slow as a steady customer base takes time to build.  By month four it is forecasted that sales will steadily grow.  Profitability will be reached by year two with sales exceeding $450K.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Drinks $105,921 $271,254 $296,874
Food $69,908 $179,028 $195,937
Total Sales $175,829 $450,282 $492,811
Direct Cost of Sales Year 1 Year 2 Year 3
Drinks $26,480 $67,814 $74,219
Food $29,361 $75,192 $82,293
Subtotal Direct Cost of Sales $55,842 $143,005 $156,512

5.3 Milestones

Colloquy Grog Shop will have several milestones early on:

  1. Business plan completion.  This will be done as a road map for the organization.  This will be an indispensable tool for the ongoing performance and improvement of the company.
  2. Set up the physical location and vendor relationships.
  3. The Grog Shop’s first month of profitability.
  4. The first marriage based on a Grog Shop introduction.
Milestones
Milestone Start Date End Date Budget Manager Department
Business plan completion 1/1/2001 2/1/2001 $0 ABC Marketing
Set up the physical location and vendor relationships 1/1/2001 3/1/2001 $0 ABC Department
The Grog Shop’s first month of profitability 1/1/2001 3/1/2002 $0 ABC Department
The first marriage based on a Grog Shop introduction 1/1/2001 12/31/2001 $0 ABC Department
Totals $0

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Management Summary

Karen Kibbutz received her undergraduate degree in political science at the University of Portland.   Through out her four years, Karen worked at various fine restaurants at night because the earning potential was far greater at nicer restaurants than other part-time jobs.

Upon graduation, Karen was unsure of what type of regular job she wanted to pursue so she continued to work full time at the restaurant, and within nine months after graduation, Karen was promoted to manager.  Karen found the manager position particularly rewarding because it provided her with real world business experience.  The best part was that she was getting paid to learn how to run a business. 

As restaurant manager Karen began to notice a trend in chatting with a lot of the clientele, that it was difficult for singles to meet each other.  After noticing the trend, Karen began to do some informal polling with many of her customers, gathering information about people meeting people. 

After two and a half years of management experience, and five months of informal market research into the business idea of a place to bring singles together for possible meaningful relationships, Karen decided to leverage her newly learned business experience as a revenue stream from the sale of drinks and food, but whose value added service is for meeting people.  This lead to the writing of the business plan for Colloquy Grog Shop.

6.1 Personnel Plan

Karen will be the first employee and will wear many different hats.  She will be the manager, server, hostess; she will do what ever needs to get done.  In addition to Karen, Colloquy Grog Shop will have a chef who is responsible for the creation of the menu as well as food inventory, food preparation, and kitchen line work.  The chef will also have the assistance of a line cook.  There will be three servers, one of which will also double as an Oregon Liquor Control Commission (OLCC) bar tender.  There will also be a full time OLCC bar tender and a dishwasher.  The scheduling of these people will be manipulated to meet demand.

Personnel Plan
Year 1 Year 2 Year 3
Karen $36,000 $40,000 $45,000
Chef $38,500 $38,500 $38,500
Line cook $14,400 $17,280 $17,280
Server $11,200 $13,440 $13,440
Server $11,200 $13,440 $13,440
Server/bartender $11,200 $13,440 $13,440
Bartender $11,200 $13,440 $13,440
Dishwasher $11,200 $13,440 $13,440
Total People 8 8 8
Total Payroll $144,900 $162,980 $167,980

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Financial Plan

The following sections will outline important financial information.

7.1 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

7.2 Break-even Analysis

The Break-even Analysis indicates that approximately $25,000 will be needed in monthly revenue to reach the break-even point.

Singles bar business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $24,867
Assumptions:
Average Percent Variable Cost 32%
Estimated Monthly Fixed Cost $16,969

7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $175,829 $450,282 $492,811
Direct Cost of Sales $55,842 $143,005 $156,512
Other Production Expenses $0 $0 $0
Total Cost of Sales $55,842 $143,005 $156,512
Gross Margin $119,987 $307,277 $336,299
Gross Margin % 68.24% 68.24% 68.24%
Expenses
Payroll $144,900 $162,980 $167,980
Sales and Marketing and Other Expenses $2,400 $2,400 $2,400
Depreciation $9,996 $9,996 $9,996
Permits $1,200 $1,200 $1,200
Utilities $2,400 $2,400 $2,400
Insurance $3,000 $3,000 $3,000
Rent $18,000 $18,000 $18,000
Payroll Taxes $21,735 $24,447 $25,197
Other $0 $0 $0
Total Operating Expenses $203,631 $224,423 $230,173
Profit Before Interest and Taxes ($83,644) $82,854 $106,126
EBITDA ($73,648) $92,850 $116,122
Interest Expense $0 $0 $0
Taxes Incurred $0 $24,856 $31,838
Net Profit ($83,644) $57,997 $74,288
Net Profit/Sales -47.57% 12.88% 15.07%

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $175,829 $450,282 $492,811
Subtotal Cash from Operations $175,829 $450,282 $492,811
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 $175,829 $450,282 $492,811
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $144,900 $162,980 $167,980
Bill Payments $92,562 $213,297 $238,801
Subtotal Spent on Operations $237,462 $376,277 $406,781
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 $237,462 $376,277 $406,781
Net Cash Flow ($61,633) $74,004 $86,030
Cash Balance $7,217 $81,221 $167,251

7.5 Projected Balance Sheet

The following chart and table will indicate projected cash flow.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $7,217 $81,221 $167,251
Other Current Assets $0 $0 $0
Total Current Assets $7,217 $81,221 $167,251
Long-term Assets
Long-term Assets $50,000 $50,000 $50,000
Accumulated Depreciation $9,996 $19,992 $29,988
Total Long-term Assets $40,004 $30,008 $20,012
Total Assets $47,221 $111,229 $187,263
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $12,015 $18,025 $19,771
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $12,015 $18,025 $19,771
Long-term Liabilities $0 $0 $0
Total Liabilities $12,015 $18,025 $19,771
Paid-in Capital $120,000 $120,000 $120,000
Retained Earnings ($1,150) ($84,794) ($26,796)
Earnings ($83,644) $57,997 $74,288
Total Capital $35,206 $93,204 $167,492
Total Liabilities and Capital $47,221 $111,229 $187,263
Net Worth $35,206 $93,204 $167,492

7.6 Business Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 156.09% 9.45% 7.60%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 35.60%
Total Current Assets 15.28% 73.02% 89.31% 43.70%
Long-term Assets 84.72% 26.98% 10.69% 56.30%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 25.44% 16.21% 10.56% 32.70%
Long-term Liabilities 0.00% 0.00% 0.00% 28.50%
Total Liabilities 25.44% 16.21% 10.56% 61.20%
Net Worth 74.56% 83.79% 89.44% 38.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 68.24% 68.24% 68.24% 60.50%
Selling, General & Administrative Expenses 115.81% 55.36% 53.17% 39.80%
Advertising Expenses 0.68% 0.27% 0.24% 3.20%
Profit Before Interest and Taxes -47.57% 18.40% 21.53% 0.70%
Main Ratios
Current 0.60 4.51 8.46 0.98
Quick 0.60 4.51 8.46 0.65
Total Debt to Total Assets 25.44% 16.21% 10.56% 61.20%
Pre-tax Return on Net Worth -237.58% 88.90% 63.36% 1.70%
Pre-tax Return on Assets -177.13% 74.49% 56.67% 4.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -47.57% 12.88% 15.07% n.a
Return on Equity -237.58% 62.23% 44.35% n.a
Activity Ratios
Accounts Payable Turnover 8.70 12.17 12.17 n.a
Payment Days 27 25 29 n.a
Total Asset Turnover 3.72 4.05 2.63 n.a
Debt Ratios
Debt to Net Worth 0.34 0.19 0.12 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital ($4,798) $63,196 $147,480 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.27 0.25 0.38 n.a
Current Debt/Total Assets 25% 16% 11% n.a
Acid Test 0.60 4.51 8.46 n.a
Sales/Net Worth 4.99 4.83 2.94 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
Sales
Drinks 0% $0 $0 $5,012 $7,445 $7,887 $8,214 $8,998 $11,454 $13,128 $13,874 $14,454 $15,455
Food 0% $0 $0 $3,308 $4,914 $5,205 $5,421 $5,939 $7,560 $8,664 $9,157 $9,540 $10,200
Total Sales $0 $0 $8,320 $12,359 $13,092 $13,635 $14,937 $19,014 $21,792 $23,031 $23,994 $25,655
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Drinks $0 $0 $1,253 $1,861 $1,972 $2,054 $2,250 $2,864 $3,282 $3,469 $3,614 $3,864
Food $0 $0 $1,389 $2,064 $2,186 $2,277 $2,494 $3,175 $3,639 $3,846 $4,007 $4,284
Subtotal Direct Cost of Sales $0 $0 $2,642 $3,925 $4,158 $4,330 $4,744 $6,039 $6,921 $7,314 $7,620 $8,148
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
Karen 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Chef 0% $0 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Line cook 0% $0 $0 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440
Server 0% $0 $0 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120
Server 0% $0 $0 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120
Server/bartender 0% $0 $0 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120
Bartender 0% $0 $0 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120
Dishwasher 0% $0 $0 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120
Total People 1 2 8 8 8 8 8 8 8 8 8 8
Total Payroll $3,000 $6,500 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540

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% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
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 $0 $0 $8,320 $12,359 $13,092 $13,635 $14,937 $19,014 $21,792 $23,031 $23,994 $25,655
Direct Cost of Sales $0 $0 $2,642 $3,925 $4,158 $4,330 $4,744 $6,039 $6,921 $7,314 $7,620 $8,148
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $2,642 $3,925 $4,158 $4,330 $4,744 $6,039 $6,921 $7,314 $7,620 $8,148
Gross Margin $0 $0 $5,678 $8,434 $8,934 $9,305 $10,193 $12,975 $14,871 $15,716 $16,373 $17,507
Gross Margin % 0.00% 0.00% 68.24% 68.24% 68.24% 68.24% 68.24% 68.24% 68.24% 68.24% 68.24% 68.24%
Expenses
Payroll $3,000 $6,500 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540
Sales and Marketing and Other Expenses $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Depreciation $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
Permits $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
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% $450 $975 $2,031 $2,031 $2,031 $2,031 $2,031 $2,031 $2,031 $2,031 $2,031 $2,031
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $6,533 $10,558 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654 $18,654
Profit Before Interest and Taxes ($6,533) ($10,558) ($12,976) ($10,220) ($9,720) ($9,349) ($8,461) ($5,679) ($3,783) ($2,938) ($2,281) ($1,147)
EBITDA ($5,700) ($9,725) ($12,143) ($9,387) ($8,887) ($8,516) ($7,628) ($4,846) ($2,950) ($2,105) ($1,448) ($314)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($6,533) ($10,558) ($12,976) ($10,220) ($9,720) ($9,349) ($8,461) ($5,679) ($3,783) ($2,938) ($2,281) ($1,147)
Net Profit/Sales 0.00% 0.00% -155.97% -82.70% -74.24% -68.57% -56.65% -29.87% -17.36% -12.75% -9.50% -4.47%

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 $0 $0 $8,320 $12,359 $13,092 $13,635 $14,937 $19,014 $21,792 $23,031 $23,994 $25,655
Subtotal Cash from Operations $0 $0 $8,320 $12,359 $13,092 $13,635 $14,937 $19,014 $21,792 $23,031 $23,994 $25,655
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 $0 $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 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $0 $8,320 $12,359 $13,092 $13,635 $14,937 $19,014 $21,792 $23,031 $23,994 $25,655
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 $3,000 $6,500 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540 $13,540
Bill Payments $90 $2,718 $3,348 $6,966 $8,214 $8,445 $8,625 $9,068 $10,349 $11,215 $11,606 $11,919
Subtotal Spent on Operations $3,090 $9,218 $16,888 $20,506 $21,754 $21,985 $22,165 $22,608 $23,889 $24,755 $25,146 $25,459
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 $0 $0 $0 $0 $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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $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 $3,090 $9,218 $16,888 $20,506 $21,754 $21,985 $22,165 $22,608 $23,889 $24,755 $25,146 $25,459
Net Cash Flow ($3,090) ($9,218) ($8,568) ($8,147) ($8,661) ($8,350) ($7,229) ($3,594) ($2,096) ($1,724) ($1,152) $197
Cash Balance $65,760 $56,543 $47,974 $39,827 $31,165 $22,816 $15,587 $11,993 $9,897 $8,172 $7,020 $7,217
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 $68,850 $65,760 $56,543 $47,974 $39,827 $31,165 $22,816 $15,587 $11,993 $9,897 $8,172 $7,020 $7,217
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $68,850 $65,760 $56,543 $47,974 $39,827 $31,165 $22,816 $15,587 $11,993 $9,897 $8,172 $7,020 $7,217
Long-term Assets
Long-term Assets $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Accumulated Depreciation $0 $833 $1,666 $2,499 $3,332 $4,165 $4,998 $5,831 $6,664 $7,497 $8,330 $9,163 $9,996
Total Long-term Assets $50,000 $49,167 $48,334 $47,501 $46,668 $45,835 $45,002 $44,169 $43,336 $42,503 $41,670 $40,837 $40,004
Total Assets $118,850 $114,927 $104,877 $95,475 $86,495 $77,000 $67,818 $59,756 $55,329 $52,400 $49,842 $47,857 $47,221
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 $2,610 $3,118 $6,693 $7,932 $8,158 $8,324 $8,724 $9,976 $10,829 $11,209 $11,504 $12,015
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $2,610 $3,118 $6,693 $7,932 $8,158 $8,324 $8,724 $9,976 $10,829 $11,209 $11,504 $12,015
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $2,610 $3,118 $6,693 $7,932 $8,158 $8,324 $8,724 $9,976 $10,829 $11,209 $11,504 $12,015
Paid-in Capital $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000
Retained Earnings ($1,150) ($1,150) ($1,150) ($1,150) ($1,150) ($1,150) ($1,150) ($1,150) ($1,150) ($1,150) ($1,150) ($1,150) ($1,150)
Earnings $0 ($6,533) ($17,091) ($30,067) ($40,288) ($50,007) ($59,356) ($67,818) ($73,496) ($77,279) ($80,217) ($82,497) ($83,644)
Total Capital $118,850 $112,317 $101,759 $88,783 $78,562 $68,843 $59,494 $51,032 $45,354 $41,571 $38,633 $36,353 $35,206
Total Liabilities and Capital $118,850 $114,927 $104,877 $95,475 $86,495 $77,000 $67,818 $59,756 $55,329 $52,400 $49,842 $47,857 $47,221
Net Worth $118,850 $112,317 $101,759 $88,783 $78,562 $68,843 $59,494 $51,032 $45,354 $41,571 $38,633 $36,353 $35,206

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