Fast Food Restaurant Business Plan Fresin Fries

Executive Summary
Fresin Fries is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. Fresin Fries will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. Fresin Fries is the answer to an increasing demand for snack-type fast food, to be consumed while window shopping and walking around inside a shopping mall. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Singapore, a city state, is now becoming the model metropolis for Asia's new economic boom. With more than 11 million visitors yearly, mainly from neighboring countries (Malaysia, Indonesia, Thailand and the Philippines), Singapore's retail sector is the strongest in the region. Our main priority is to establish one outlet in a crowded mall, preferably in one of prominent shopping malls in Singapore. Later, our effort will be a further development of more retail outlets in the surrounding area. This plan is prepared to obtain a location for the initial launch of this concept. Additional financing will need to be secured for the two subsequent outlets, anticipated in month 13 and early in year three. The financing, in addition to the capital contributions from shareholders, will allow Fresin Fries to successfully open and expand through year two. The initial capital investment will allow Fresin Fries to provide its customers with a value-driven, entertaining experience through the creativity of its founders. Fresin Fries will entice youngsters to bring their friends and family with our innovative environment, fresh-cut Belgian fries, and selection of unique signature dipping sauces. Please note that all tables are in Singaporean Dollars (1 USD= S$1.60)

1.1 Objectives
y y
To establish a presence as a successful local fast food outlets and gain a market share in Singapore's fast food industry. To make Fresin Fries a destination spot for mall-goers.

y

To expand into a number of outlets by year three, and sell the franchise to neighboring metropolitan cities, such as Jakarta, Kuala Lumpur, Bangkok and Manila.

1.2 Mission
Our main goal is to be one of the most successful fast food outlets in Singapore, starting with one retail outlet located inside a major shopping mall as a "market tester." Fresin Fries will strive to be a premier local fast food brand in the local marketplace. We want our customers to have the total experience when visiting our outlet(s) and website as they will learn about this fascinating new "pop culture." We will sell merchandise from pre-packaged sauces and t-shirts, to potato cutters, all with our official brand attached to them. Our main focus will be serving high-quality food at a great value.

1.3 Keys to Success
To succeed in this business we must:

y y y y y y y

Create a unique, innovative, entertaining menu that will differentiate us from the rest of the competition. Control costs at all times, in all areas and implement a conservative approach to growth policy. Although, we provide more than enough fund to open more than one outlet, we want to be on the safe side of the business. Sell the products that are of the highest quality, as well as keeping the customers happy with all of our product categories from food to store merchandising. Provide 100% satisfaction to our customers and maintaining the level of excellent services among other competitors. Encourage the two most important values in fast food business: brand and image, as these two ingredients are a couple of main drivers in marketing communications. Get access to high-traffic shopping malls near the target market. Promote good values of company culture and business philosophy.

Company Summary
What is Fresin Fries? Fresin Fries sells gourmet fries in a cone with a choice of sauce. We use the concept of Belgian Fries, where the fries are all made from fresh potatoes and fried twice. Our outlet also provides excellent and friendly customer service to support the ambience of fun, energetic and youthful lifestyle. Youthful and fresh surroundings We will imitate successful establishments, such as Jamba Juice and Starbucks, which represent the majority of our core target market, between 18 to 35 years of age. Our store will feature display cooking of our featured Belgian Fries from cutting to frying. Our customers will also be able to read our in-house brochures in regards to all knowledge about Belgian Fries and our featured sauces. Our store will be decorated with fast food setting, such as a bright counter and display menu on the wall. Quality food Each store will offer nothing but freshly fried Belgian fries, sandwiches and variety of unique blend sauces, all served with old-fashioned home-style care. Open everyday Our store is open everyday from 10 am to 9 pm. Variety, variety, variety A different selection of sauces will be featured every three months and we will also change our Italian soda flavors to accompany our fries.

2.1 Company Ownership
Fresin Fries is a privately held company. It will be registered as a Limited company, with ownership 25% - Guy Fry, 25% - Sam Sauce, 25% - Carl Cone, 25% - Harry Hip.

Startup requirements will be financed through owner investments. Start-up Requirements Start-up Expenses Kitchen and Fixtures Furniture and Interior Legal $21.2 Start-up Summary The retail outlet will be rented at one of the target location shopping malls. for the main reason of reaching larger traffic. He completed several projects and served as project manager for multi-national companies in Singapore. his latest entrepreneurial project is a diamond store in the heart of Singapore.Guy Fry and Sam Sauce have more than 10 years of experience in the food industry. Harry Hip holds a MS degree from Institute Y.600 $16. 2. majoring in Management and Information Technology. Prior to his return to Singapore. Sam Sauce holds an MBA degree from University V. Our preference is Space A. His projects are widely varied from product design to brand development of several reputable companies.000 . A true entrepreneur by heart. Carl Cone holds a BS degree from University Z.500 $3.S. he has held several management positions in a U. Both are currently employed as Corporate Staff of Company A.-based IT company. Guy Fry holds a BA degree in Graphic Design from the Academy of Arts.

000 people within a radius of 8 kilometers.200 $68.1 Product Description Fresin Fries primarily sells fries and our unique dipping sauces. we will offer Italian Soda to complement the fries. Easy access. We will equip the outlet with modern furniture and aim for cleanliness and an open feeling. Bread Talk (one of the most successful bakery franchises). where our customers value our brand as something exciting and cannot wait to tell their friends and neighbors. so that our customers can enjoy Fresin Fries at home. Tourist destination. Instead. including Tori-Q (yakitori specialist).Rent Packaging and Stationary Contingencies Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements $15. Bee Che Hiang (chinese sausages). We want "word-of-mouth" to be our best form of marketing.000 $8. They can be also purchased at selected retailers.500 $4. All of these qualities are consistent with Fresin Fries' goal of providing a top quality fast food experience.800 2. as Fresin Fries promotes a healthy and positive Singaporean lifestyle. 3. Alcoholic drinks will not be sold in our outlet.800 $50. and Pizza Walker (locally owned pizza chain). from hats to t-shirts to potato cutters to our signature sauces. Fresin Fries will directly compete with several fast food joints inside the chosen shopping mall. Main products sold are: Belgian fries. Our first location will be on the larger end of this range. The space selection will be chosen based upon the following criteria: y y y y Community size: minimum of 800. we will offer various merchandise with our logo and colors.000 $0 $0 $50. .000 $118. Products We want to focus only on selling fries.3 Company Locations and Facilities Fresin Fries locations will range in size from 50 ± 70 meter square and will seat from 15 ± 25 guests. The location will feature its own originality in merchandise display and other brand building attributes. We are currently looking at several possible sites in shopping malls along Orchard Road. Large percentage of teenagers in the community. Our signature sauce is exclusively manufactured by Company Q. In promoting the Fresin Fries lifestyle. Italian sodas and corporate merchandise.

Our fried potato is made 100% fresh. with addition of garlic Fresin (add S$0. The dips for Belgian style fries can also be served with sandwiches. compared to most fast food outlets that use frozen fries. Our dipping sauce is also made fresh without preservatives. Our innovative packaging will be more entertaining than our competitors. a single cone with a cup reserved for dipping sauce. Supporting merchandise items that support the company's brand building.Belgian-style fries are available in large (choose 2 dips). they are available in more than 20 flavors: y Pesto Mayo y Satay Sauce y Teriyaki Sauce y Thai Chili Ketchup y Creamy Wasabi Mayo y Roasted Pepper Mayo y Lava Cheese y Black Pepper Sauce y Curry Ketchup y Barbecue y Jalapeno Ketchup y Caribbean Islands y Traditional Sambal y Korean BBQ y Hot Chili Sauce y Garlic Dip 3. Company Clean Value Merchandising Hang Out Simple Fresh Cool Pop Culture Yes Yes No No No No Fresin McDonald's KFC Tori-Q Roti Boy Bread Talk Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No Yes Yes Yes Yes No No No Yes Yes No Yes Yes Yes Yes No No Yes Yes Yes Yes Yes Yes No No Yes . We expect a high degree of enthusiasm and offer a fun store with friendly staff.25). small (choose 1 dip).2 Competitive Comparison Fresin Fries has several advantages over its leading competitors: y y y y y y Unique "fusion" concept of dipping sauce. that reflects the company's youthful and energetic culture.

Further customization could be done by selling a bigger size of fries called "Uber Fresin" to attract price sensitive customers. we will focus on selling fries and signature sauces. We also have an agreement with Company Q to exclusively manufacture our signature sauces. Below are the programs that we will develop to open each location. sandwiches and Italian soda at greater value than selling at individual items.3 Sales Literature Fresin Fries will use advertising and sales programs to get the word out to customers. 3." It primarily consists of a combination of our featured Belgian Fries. folded. . as we grow further. more or less. We will also sell gift certificates. in addition to our brochure that will list our daily entrees. area eateries.5 Sales Programs Each opening of Fresin Fries will have. However. cinemas.S. 3. y 2. The success of Bread Talk franchising in Indonesia is the best example on growing globally. Inside will be all the important details of Fresin Fries. and all of our merchandise will be printed and produced by our partner's office in China.Bee Che Hiang Pizza Walker Yes Yes Yes Yes Yes Yes No Yes Yes No Yes Yes No Yes No Yes 3. house of operation and a locator map. explanation of our menu. Direct Mail Piece A stand-alone piece. Value Meal Sales of Fresin Fries will not only generated from the selling of its famous Belgian Fries.000 color brochures to be distributed throughout destination shopping mall and facilities: in-store. prices. y Half page magazine reviews in Singapore's lifestyle magazines that advertise the presence of the outlet. we will add new categories to our menu. We want the signage to be supported by banners before the opening. such as Belgian Sandwiches and Buffalo Wings. information during the grand opening in January 2005.6 Future Products For now. our growth strategy will be offering the franchise of our brand to food entrepreneurs in the region. and possibly mention franchise opportunities. Point of Purchase We will use "tray toppers" to explain the concept and philosophy of Fresin Fries.4 Sourcing Fresh potatoes will be delivered weekly by our distributor directly from the U. 3. the same marketing mix as the others. In the future. Private Parties Brochures and handouts will explain that we can handle banquets and private parties. will be produced in full color on heavy weight paper. but also will be generated by the conception of an innovative package menu called the "value meal. Grand Opening Each new outlet will have outdoor signage as soon as possible. announce future job openings.

We will target both sexes. fancy restaurants and gourmet bakeries around Singapore has shown a significant growth in this sector.Market Analysis Summary Consumer expenditures for fast food in Singapore rose during the end of the year 2000. followed by the recovery of Singapore's economy. and when they do strolling around the shopping district. Orchard Road is also the destination for tourists staying in the area. single. and enjoy chicken. currently enrolled in college and high school. especially if they have smaller kids. hamburger. 4. they need a quick bite to accommodate their activities. Gender . Eating out still remains as Singaporeans' common habit of life. pizza or other fast food joints in the vicinity. Food spending is around 56% of total consumer expenditures in Singapore. Fast food is naturally their first choice. 90% of them like fast food on a regular basis. hunting for the latest trend in fashion and have no time to stop for a full meal during shopping. and 10% of them claimed that they like fast food "very much.000 workers. 80% of those interviewed like fast food.Youngsters. Most of Singaporeans love to window shop. Tourists will stroll Orchard Road. The survey also provided the following particular reasons for the increasing popularity of fast food: y y y y People have 52 weekends and three long holidays a year. The increasing number of new establishments such as fast food franchises. Income . employing more than 50. because of the brand building effort that heavily targets their age group. According to a recent public survey of people 15 . Lastly. Parents give more money to kids and students to buy lunch. there are more than 8. There are more than 10 major shopping malls across Orchard Road. and Popular Hotel are a few of the biggest accommodations in Singapore." or "love" fast food. They tend to flock to fast food joints inside shopping malls across Orchard Road. A much broader appeal exists for weekend slots because those are the days when most of our core target market enjoys the mall going activities. the biggest shopping mall in the nation.We will also appeal to families (young families) with children. Our secondary market segment is the "Working Singaporeans. including Ngee Ann City. Family unit . Our concept will have very broad appeal. it is common for high schoolers to have lunch inside shopping malls. in the environment of the western-style fast food outlets.45 years old. the Hilton. White-collar workers in offices have stopped bring lunch.1 Market Segmentation We are targeting young Singaporeans as our primary market." With so many shopping malls in the vicinity. y y y y Age . and consumer spending on leisure and recreation made up of 13% of total consumer spending. and not at home. They do not perceive fast food is a luxury. and they enjoy it by bringing their family. It is our goal to be the hip destination for fast food cravings. Due to heavy extra-curricular activities among Singapore's youth. Orchard Road is the place to meet and hang out after school. Crown Prince Hotel. The Meritus Mandarin. .We will appeal to the medium income individuals and to all in the lower medium income bracket. Fresin Fries is the alternative for a quick bite while shopping the fancy boutiques in the area. In the new Paragon Shopping Centre. Orchard Road is the haven for shoppers and job seekers alike.000 workers currently working as sales persons and boutique staff. with a slight skew for males due to their lower attention to dietary concerns.

392.000. We have chosen this group for several important reasons. Our secondary target is between the ages of 25 and 37.612. which are a heavy lounge/restaurant user group.300.52% 4.000 11.500 6.500 7. It is our goal to be "the extraordinary fast food place" and we believe that the age group from 15 to 25 is the primary age where brand building efforts could take place.000.800.011 20.00% 20% 15.604.745.800.000 3.017.000 13.000 5.566.472.000 4.000 3. At S$4. but we offer much more excitement than the rest of the competition.00% 15. we want to keep the price point at lunch as fair as possible to keep us in competition with other fast food outlets.000 4.000 6.2 Target Market Segment Strategy Fresin Fries intends to cater to the bulk of teenagers and youngsters in Singapore.300 10.714.00% 10% 3.610. we are featuring fresh fries to fill Singapore's craving for fast food as most ideas of lunch is a quick bite not a heavy meal.630. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets.775 7.Market Analysis Year 1 Potential Customers Young Singaporeans Working Singaporeans Tourists Total Year 2 Year 3 Year 4 Year 5 Growth CAGR 15% 5.879.560.000 3.375 8.750. They are more flexible in budgets and seek more than a value/price relationship. Second.031 15.000 15.993.680 21.00 for a medium size fries.163. we are only slightly above the segment. Our lunch strategy is dual purposed. First.400 18.000 5.52% 3. .

which means greater disposable incomes. such as Bread Talk and Bee Che Hiang. Bread Talk controls 55% of Indonesia's bakery market.3 Industry Analysis Despite the prolonged effects of the Asian Economic Crisis followed by political turmoil up to mid 2001. Although there was a slowdown during the economic crisis in 1998. with the success of the locally grown brands. For instance. the food service industry recovered faster than others. The key to success for these foreign chains was mainly due to the popularity of Singapore as tourist destination for these countries. 4. For instance. fast food. and food retail sectors. friendly. potatoes are the second largest commodity of US exports to Singapore after fresh fruit. including new shopping malls. Long John Silver's and Pizza Hut were dominating most of the chains. led to high levels of growth. mainly from fast food chains. Much of this growth was contributed by the cafes/bars. Entry of major multi-national food service operators into major shopping destination in the late 1980s until the 1990s led to growth in competition in the marketplace. The fascination of Asian tourists coming to Singapore has positioned the city itself as an aspiration to modern life in the region. Many of these local brands grew to become giant franchises that dominate the Southeast Asia region. 4. for whom time is of a premium. and new fast food joints. new boutiques. preferably something fried Looks for speed of service Wants an entertaining and fun experience Insists upon a clean. valuing almost USD $13 million per annum. Some changes taking place include a larger professional class with more working women. Singaporeans preferred Western chain restaurants. that started in the early 1990s. both of international and local chains. But the trend seems to have shifted in the last decade.4. and entertainment choices. This growth is underpinned by market demand and lifestyle changes." Usually after they went back from vacationing in Singapore. there is a local entrepreneur who created a Japanese name to sell yakitori (Japanese BBQ meat skewers). Recent bombing tragedies have also proven that negative effects on this sector are moderately short-term. A recent Consumer Trend and Analysis by Euromonitor identified the following needs among our target markets. particularly during 2000 and 2001. and there is a fashion boutique named after an old Italian movie. they told friends and families about new things in Singapore. This was the time when KFC. and attractive environment Adopts a global lifestyle Is computer literate Enjoys eating out Has an active lifestyle Comes from various ethnic backgrounds According to a GAIN Report published in 2000. . food.1 Market Needs Fresin Fries sees our targeted market group as having many "makan" (eating) Singaporean Dollar needs. McDonald's.2. new restaurants. This stimulated the rise in the number of fast food units. whose wide appeal amongst a young population. Our core group: y y y y y y y y y Wants variety and flavor in its food. This is caused by the increasingly younger demographic and rising incomes throughout Singapore that have led to lifestyle changes that are influencing consumer purchases.2 Market Trends In the past.5% in terms of units and transaction (Euromonitor). such as seeing eating out as part of trendy lifestyle.2. Singapore's food service industry witnessed growth over 2000/2001 at 4 . Many local entrepreneurs camouflaged their retail stores as an international brand in accordance to what they sell. Tourists are the strongest "buzzer.

If you just missed Häagen Dazs waffle at CK Tang Shopping Mall. In our location. Pizza Walker. Currently. due to the high volume of people strolling around the main area of Orchard Road. Tori-Q outlets are rather small. Pizza Walker is a good place to hang out. 4. and can only serve a maximum of 6 guests. y Modern retail bakery/café outlets such as Bread Talk. rather than prepared ready-to-cook or ready-to-eat processed convenience foods. primarily U. The growth in spending in the food service sector arises from a number of factors: y y y Increased affluence amongst Singaporeans. Usually there are a minimum of two of the same outlets within a radius of less than 300 meters. It is quite common for retailers to implement this kind of strategy. Singapore is a compact city. Younger middle and upper income group families and individuals are also frequent users of the full service restaurants. Malaysia. Singapore's spending on "eating out" is continuing to increase. At the same time.Franchising became popular in the food service industry through the introduction and entry of multi-national food service brands. Another reason is because many retailers do not want to lose sales opportunity. Singaporeans have long turned to the local hawker stalls.-owned enterprises. Indonesia. there are Tori-Q. Tori-Q is popular among local teenagers as it offers fast service to its customers.3. as alternative sources of convenient cooked food. Starbucks.S. Bread Talk opens one outlet inside the Ngee Ann City Shopping Centre and another just across the street inside the Far East Plaza Shopping Centre. Tori-Q Tori-Q is locally owned franchise who sells Japanese BBQ skewers. which has more than doubled since 1988. y Modern coffee shops such as Starbucks. Commonly.3. locals have adopted the convenient products of other food service outlets. Established in 1998. Increases in the number of expatriate residents. This phenomenon has made Singapore the best place to shop.1 Trends in Food Service Retail According to government surveys. Over the past 5 years. Pizza Walker Pizza Walker is a joint venture positioned as gourmet pizza joint in Singapore. there has been a general upgrading in the food service sector which has seen the establishment of more air conditioned food centers (food courts) that are considerably cleaner than the traditional hawker markets.3 Main Competitors Our main competitors in this segment are any food outlets within the 300 meter radius along the Orchard Road. It is a choice for those who are in a hurry and would like to grab a quick lunch on the way. especially the fast food outlets. and Rotiboy. there is another Häagen Dazs across the street at the new Paragon Shopping Centre. there are many local chains that have also experienced growth by applying this system to their operations. Pizza Hut and McDonald's.3. Bread Talk. such as KFC. including chains such as Outback Steakhouse. As the numbers and variety of food service outlets has increased in Singapore. and . When they want convenient cooked food. 4. modern-style coffee shops and cafés that now exist all across Singapore. as the competitors are offering substitutions and similar product categories. especially those under the age of 40 years. such as flowers and see-through kitchens. Spending on cooked food as a percentage of total average food-spend reached 55% in 1998. Tori-Q had expanded its operation into neighboring countries. but has a lot to offer. 4.2 Competition and Buying Patterns The competition in this arena is the fiercest in all other metropolitan areas in SE Asia. increased investment from foreign and local businesses in the sector has also produced an increase in the numbers of: y Foreign chains. and Thailand. Increased convenience-seeking amongst younger Singaporeans who live in a hectic city today compared to the much slower pace of life that existed 20 years ago. For instance. Most of its retail outlets are decorated with welcoming ambience.

Starbucks is one of the first food retailers that popularized "light and healthy" alternatives such as salad or lean sandwich as an options for Singapore's lunch accommodations. We believe. however. account for 65% of foreign brands. We will start our first outlet as a "market tester" that could become a model of the expanding number of outlets in the future. Unlike Western license holders. and often considered alternatives for its long queueing rivals. y Enthusiastic and friendly staff y Supporting merchandise items that support company's brand building. Home grown franchises are more often sought more by young entrepreneurs than are their Western counterparts. as they offer greater flexibility and lower franchise fees to operate. 5. Local Franchising Around 40% of the franchises operating in Singapore are foreign. This will become our "market testing area.000 breads each day in just one of their retail outlets.3. to speed up the queue.2 Marketing Strategy Our strategy is based on serving our markets well. 5. unlike the frozen fries used by competitors. that the best form of advertising is still "buzz. Concentration will be on maintaining quality and establishing a strong identity in the local market. Rumor has it that Bread Talk sold more than 35. Franchises from the U. then broader media will be explored. Rotiboy offers simplicity for quick lunch franchiser.S. Due to high capital investment. Bread Talk not only rented most of the retail space along Orchard Road. home grown franchises are more efficient in the overall supply chain management as the basic raw ingredients are commonly found anywhere in the region. Bread Talk As the most successful franchiser in Singapore. Bread Talk is surely becoming a threat for most food retailers. It has more than enough tables to serve a maximum of 55 guests. Fresin Fries is planning to open another in nearby shopping malls. but now they are doing delivery to offices and apartments nearby.1 Competitive Edge y Our unique dipping sauces blend local taste and international into one fusion recipe for the signature sauce." and as we go further. etc. In attracting customers to try our fries. As soon as a concentration of stores is established in a market. Home grown franchises are still in their maturing stages as they start to expand globally." By providing a . and the Philippines. Local store marketing is most effective. Starbucks. Rotiboy is quite popular in the region as it is now expanding into several cities in Indonesia. we will open one outlet inside the New Paragon Shopping Centre. The kitchen will also let out an aroma of our freshly fried fries into the surroundings area. y Innovative packaging will position us at the same level with foreign fast food franchises. so that people will come and try our products. a lunch menu in Singapore consists of "fried and BBQ stuff" such as roast pork with rice or the Big Mac. with big players such as KFC. Thailand. Usually. Bread Talk outlets usually consist of a huge see-through kitchen. followed by print ad. Pizza Hut. Rotiboy A Malaysian franchise. Strategy and Implementation Summary At first. Its specialty is all-you-can-eat pizza! Starbucks Starbucks' strategy entering the lunch market had made some impact in Singapore. so that people will see how we are committed to freshness in our products. we will provide a see-through kitchen. y Our fries are made of 100% fresh potatoes.the place is always full during lunch hour.4 Foreign Vs. A combination of local media and local store marketing programs will be utilized at each location. Vietnam. Singapore conglomerates tend to dominate the industry. 4. and bread trays ready for pickup by customers. with three or four cashiers at front.

o Local magazines that target our core customers.1 Pricing Strategy Our pricing strategy is positioned as "generic".2 Brand Challenges Fresin Fries must establish a distinct brand to stand out from the other Western-style fast food competitors. history and news. o Design concept.2. with unbeatable quality at an acceptable price in a clean and friendly outlet. and signature style sauces to be sold. 5. 5. o Web page ± containing company philosophy.2. o Standing signage inside malls¶ lobby/aisle. Italian Soda. y Local Media o Direct mail piece ± containing brochures sent to surrounding addresses. we will be the talk of the town. The last marketing effort will be utilizing local media. o Wall posters. meaning that S$4. o Grand opening promotion. y y Our logo is distinct as fresh.2. These will be low-budget plans that will provide community support and awareness of our facility. through the selling of supporting materials. o Free occasional t-shirts at local stores events. This will be by far the cheapest and most effective of our marketing programs because of the high traffic in targeted shopping locations. o In-store viewing of making fries process from cutting to frying. this tactic will be used sparingly as a supplement where necessary. y Local Store Marketing o Brochures.3 Marketing Programs We will deploy three different marketing tactics to increase customer awareness of Fresin Fries. o Outdoor signage (if possible). Therefore. The second tactic will be local store marketing. Although.fun and energetic environment. this will be the most costly. . energetic and playful with color elements that are eye catching. Our most important tactic will be "word-of-mouth" and in-store marketing. Product names are geared toward the target market (teens). such as merchandise. We will actively build our brand. with items such as "Frenzy Fresin" and "Uber Fresin" which are fun and easy to remember. we are serving the majority of Singaporeans.00 is the average consumer spending for a snack or light lunch in Singapore. o Newspaper campaign ± placing several large ads throughout the month to explain our concept to the local area. o Merchandising items. promotional items and other marketing gimmicks similar to those of other fast food franchises. 5. the execution of our concept is the most critical element of our plan. o Party catering. such as Free! Magazine. Leveraging the volume of fries. y In-Store Marketing o In-store brochures containing our concept and philosophy.

this plan will be implemented when the one "market tester" outlet showed potential growth. the goal of each store is S$104. 5. mostly for shopping and dining. and execute the concept so that ³word-of-mouth´ will be our main marketing force. 5.3. it means vacation time. Approximately 1. .5 million Indonesians visit Singapore each year.000 per year. this explains the jumped of sales in these last two months of the year. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. we anticipate more tourists coming into Singapore. As each individual location will continue to build its local customer base over the first three years of operation.2. Then in December. and for non-muslim Malaysians and Indonesians. there is Ramadan. keep our standards high. However.3 Sales Strategy The sales strategy is to build and open new locations in order to increase revenue.250 in annual sales.5. In November. due to the holiday seasons.4 Positioning Statement Our main focus in marketing will be to increase customer awareness in the surrounding community.1 Sales Forecast We anticipate the highest peak on the months of November and December in our sales forecast. with the original flagship store expected to earn almost S$200. We will price our products fairly.

00 197.00 $1.50 $8.356 84.889 3.057 $395.856 $41.50 $2.401 Year 1 $4.50 $2.928 55.50 $8.50 $8.50 $2.424 $166.768 15.384 7.778 6.114 $791.712 $83.00 98.076 $66.538 $33.00 $1.464 27.802 Year 2 $4.152 $132.556 13.00 $1.Sales Forecast Year 1 Unit Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Total Unit Sales Unit Prices Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Sales Belgian Fries Italian Soda Merchandising $197.712 168.425 337.00 Year 2 Year 3 .856 110.692 3.228 49.605 Year 3 $4.

163 Year 1 $0.914 $158.876 $3.571 $4.712 $279. .Signature Packaged Sauces Total Sales Direct Unit Costs Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Direct Cost of Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Subtotal Direct Cost of Sales $6.80 $0.00 $13.4 Strategic Alliances Our business requires a long relationship with raw suppliers as well as partner vendors.712 $123.154 $14.327 Year 2 $0.15 $3.957 $79.751 $6. this relationship is called "guanxi. Mr.308 $29.356 $61. is a prominent figure in the society and we hope to strengthen further our business relationship with him and the company. the 4 founders (Guy Fry. The planning and construction will take approximately 8 months.425 $247. 5. We already have a long and good standing relationship with Company V in our previous ventures. Harry Hip.80 $0.15 $3. and Carl Cone) will conduct the planning and implementation in building the brand and the construction of our first outlet.15 $3.83 $1. in addition to the revision and refinement process that will take the rest of the 12 month period before our opening in early 2005.83 $1. For Company Y. In Chinese. Joe Shmo.425 $558.285 $16.503 $13.142 $8. Sam Sauce.83 $1. the managing director.654 Year 3 $0.615 $59.827 5.849 $1.00 $39." meaning business bonding.00 $26.5 Milestones During the initial set up of the company.116.80 $0.

000 Guy Fry 2/21/2004 6/23/2004 TBD Sam Sauce Marketing Constructions 5/22/2004 12/3/2004 TBD Harry Hip Business Development Marketing In store signage.000 Carl Cone Open 3rd and 4th 1/1/2006 6/1/2006 $15. POP Grand opening materials 5/23/2004 10/11/2004 TBD Guy Fry 6/2/2004 10/13/2004 TBD Guy Fry Marketing Hiring staff 7/14/2004 8/12/2004 $900 Harry Hip Human Resources Business Development Open second location 7/1/2005 7/1/2005 $10.000 Carl Cone Business .Milestones Milestone Presentation materials for all stakeholders Start Date End Date Budget Manager Department Business Development Business Development Business Development Marketing 1/12/2004 3/12/2004 TBD Carl Cone Follow up with suppliers 1/21/2004 3/22/2004 $100 Sam Sauce Follow up with developers Printing materials Marketing communication program 1/21/2004 9/8/2004 $50 Sam Sauce 2/13/2004 4/10/2004 $8.

or order potato cutters for delivery.2 Development Requirements To adequately serve our audience. Guy Fry. Fresin Fries is being owned by its 4 founders. At present time. We will also post banners on an official Singapore tourism website. To make the website interactive. customers can now write their comments and suggestions on our website.1 Management Team Fresin Fries is currently the creative idea of its four founders. As we grow. it only requires a simple organizational structure. Fresin Fries will offer gift cards and promotions via the Internet. our website will show information on franchising/licensing our brand name. and 7th locations Development Business Development Human Resources 1/1/2007 12/31/2007 $20. The front end design of our website will be entirely trusted to Mr. By doing this. Besides the traditional formats of customer service hotline and in-store form.000 Harry Hip Totals $55. so our visitors can print the promotional coupon in PDF format and bring it when they visit Fresin Fries. . Harry Hip and Mr.1 Website Marketing Strategy We will leverage the visibility of our shopping mall's website by getting them to include a link to ours.000 Carl Cone Training staff 9/12/2004 12/10/2004 $1. The diversity of founders' background in our company has enabled a cost efficient development in our venture. Visitors can also download Fresin Fries' theme song as ring tones. This will also allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return. This will mean that the initial staff support team will have to work extra. of course.locations Open 5th. the front end strategy of our website should be parallel with our corporate color. In the future. 7. 6th. we will keep our overhead as low as possible.050 Web Plan Summary The website will. and when the time comes. Others that have helped on the development of this business venture will be offered an opportunity to grow together with the company at the appropriate time. As Mr. Implementation of this organization form calls for all four individuals to make all major management decisions in addition to monitoring all other business activities. we will take on additional help in certain key areas. the back end of our website will be developed by these gentlemen. the website itself will act as the medium between our company and our audience. Carl Cone are experts in Information Technology. allowing us to adequately staff our outlets. Management Summary The initial management team depends on the founders themselves. show visitors everything about Belgian food culture. which will be directed to one of our staff. with little back-up. 6. the 4 founders¶ share will be consolidated as one entity. So. As the company is small in nature. Part of our basic philosophy will be able to run our executive management as a "knowledge sharing" fellowship. including the history of french fries over time. We will not add additional overhead until absolutely necessary. 6.

controller.3 Personnel Plan Our initial employees will include two cashiers. who each will contribute $200.800 $23. 8. Possible positions might be added at a later date include marketing manager. 7. This will provide a supervisory level between the executive level and the store management level. In the long run.000 $28. each location will have a primary site manager. We hope that this individual will come out of the ranks of our stores¶ management. two cooks and two bus boys per location. This is considered an ideal personnel number for a food outlet the size of our own. Guy Fry.As we expand into multiple locations. 7.000 Year 3 $96. Mr. David Lu will be responsible for accounting and business development of Fresin Fries.000 26 $262. including site managers. Personnel Plan Year 1 Site Managers Cashiers Cook Busboy Total People Total Payroll $0 $36. Harry Hip.1 Start-up Funding Currently. helped by Mr. and Sam Sauce.000 $80.2 Organizational Structure Future organizational structure will include a director of store operations when the store locations exceed four units.200 Year 2 $60. Carl Cone. and provide the business with a cash cushion to use for expansion over the first three years. we will employ more people in the middle management to ensure the focus of our work. Current plan is to have our accounting and payroll functions done by an in-house bookkeeping.000 $56. human resources. the company is owned by the original 4 founders. as we expand our product category and retail outlets.400 $115. This will more than cover start-up requirements. with one of each on the premises during open hours.200 $94. Each employee will work for 38-40 hours per week. Start-up Funding . R&D and administrative support team.000 $144. acting Head of Human Resources Division. 25%. purchasing manager.000 for the same amount of share.000 $66.400 12 $88. Future shares will be offered after two consecutive years of operating in Singapore.600 Financial Plan The company is now privately held by Harry Hip.000 40 $449.

000 $681.000 $0 $800.000 $118.800) $731.200 .000 $200.000 ($68.200 $761.800 $30.000 $200.200 $731.000 $200.Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Eric Yam Martin Ng David Lu Sagita Suwandi Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities $68.800 $50.000 $50.200 $0 $0 $0 $0 $0 $200.200 $731.

Total Funding $800.706 $32. using up some of the cash reserves initially invested by the founders. As sales increase. Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost $3.3 Projected Profit and Loss As the Profit and Loss shows. in a prime spot.000 8.73 $24.979 9. we will expand into new locations to aggressively spread brand recognition. the first store.2 Break-even Analysis Our break-even analysis shows that we need unit sales over 9.700 per month to break even.31 $0. while maintaining our flagship operation.104 8. Fresin Fries will run at a loss for the first two years. This increase in visibility will allow us to take up less expensive locations off of Orchard Road. . We do not expect to begin turning a profit until year three.

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957 $0 $61.827 $0 $247.957 $217.327 $123.116.827 $868.914 $0 $123.207 Year 2 $558.654 $247.826 .413 Year 3 $1.914 $434.163 $61.Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin $279.

.600 $53.000 $0 $298.000 $50.226 $53.543) -29.000 $50.587) $0 $0 ($140.000 $299.000 $8.543) $0 $0 ($82.750 ($82.226 4.4 Projected Cash Flow The following chart and table show the Projected Cash Flow for Fresin Fries.18% $449.550 $25.000 $5.57% $262.81% 77.Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Rent Utilities New location setup Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales 77.587) ($140.600 $10.200 $10.226 $0 $0 $53.000 $0 $174.77% 8.81% $88.000 $815.000 $0 $248.543) ($82.587) -25.000 $2.000 $10.000 $575.000 ($140.81% 77.

654 Year 3 $279.286 $1.886 $0 $0 $0 $0 $0 $0 $0 $279.163 Year 1 $0 $0 $0 $0 $0 $0 $0 $558.163 $558.654 $1. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $88.245 $449.048.600 $599.265 $332.245 $692.000 $430.116.200 $244. VAT.116.327 Year 2 $0 $0 $0 $0 $0 $0 $0 $1.654 Year 2 Year 3 .327 $558.116.327 $1.465 $262.163 $279. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax. VAT.

748 8.242 $0 $35.899 Year 1 $0 $0 $0 $543. decreasing our net worth slightly.981 $0 $543.5 Projected Balance Sheet Fresin's projected company balance sheet follows.899 $543. our net worth rises again.981 $611.465 ($53.911 $0 $50.301) $677.748 $0 $611.981 Year 2 $0 $0 $0 $611.748 Year 2 Year 3 .981 $0 $1. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities $29.886 $67.899 $0 $692.899 $0 $677.245 ($133. As the operation becomes more profitable in the third year.452 $0 $0 $0 $0 $677.242 $0 $0 $29.767 $611.048.748 Year 3 $677.Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $332.918) $543.911 $0 $0 $35.452 $0 $0 $50. We expect to run at a loss for the first two years.

The final column.657 $677.00% 100.31% 95.00% 100.40% 0.81% 100.000 ($291.Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $29.31% 0.000 ($68.00% 8.00% 77.67% Sales Growth Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin 0.00% 0.81% 100.80% 100.94% 22.00% 100.452 $800.00% 8.6 Business Ratios The following table outlines some of the more important ratios from the Fast Food Restaurants and Stands industry.00% 100.69% 0.00% 0.000 ($151.81% 100.00% 0.00% 17.543) $648.00% 0.00% 4.00% 6.60% 0.97% 54.343) ($140.31% 45.25% 91. Industry Profile. details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code 5812.00% 100.00% 77.26% 40.800) ($82.00% 6.587) $508.00% 100.00% 59.00% 77.20% 59.070 $50.981 $508.070 $543.748 $561.930) $53.00% 100.296 8.25% 0.226 $561.242 $800.296 $611.60% 93.899 $648.911 $800.657 $35.05% . Ratio Analysis Year 1 Year 2 Year 3 Industry Profile 8.75% 37.03% 100.00% 4.00% 100.

a n.48% 8.90% 13.73% 15. to Liab.67% 12.a n.25% 9.a n.92% 23.18% 0.84% Year 2 -25.18% Year 1 -29.24% 0.22% 6.09 1.a 0.00 n.18 4.a n.a n.07 1.67% -25.18 23.57% -12.00 $508.35 27 0.a 2.00% -25.15 6.57% 0.37% 102.70% Year 3 4.48% 1. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test 107.a .04% 39.77% 9.73% -12.96% 1.00 0.070 0.a $648.97 7% 15.00% 4.657 0.a n.05 1.43 4% 23.00 0.13 12.66 50.a n.00% -29.04 0.41 12.a 9.15 0.13 8. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.15 15.17 26 1.296 0.03 12.18 0.Selling.18% -27.99% 73.77% 1.87% n.17 27 1.31% -12.00 n.60% -27.00 $561.13 n.83 n.55 8% 12.

316 $300 $540 $637 $752 $887 $1.95% Month 10 $38.933 ($2.474 $10.700 $1.50 $8.549 $3.933 ($10.519 $33.200 $2.063 77.360 $300 $8.870) ($2.213) $0 $4.639 $4.697 $54.000 $1.600 12 $4.50 $8.538 $3.152 $38.925 $19.631 $14.00 Month 12 $0.00 Month 11 $0.50 $2.80 $0.152 $140 $551 $139 $1.50 $8.00 $1.313 $1.900 $4.800 $9.00 $1.83 $1.300 6 Month 4 $0 $2.00 n.15 $3.226 $5.225 $3.447 $7.000 $1.000 $300 $300 $0 $0 $27.822 $419 $1.535 $6.088 $5.885) ($6.800 $1.074 1.627 $2.00 1.80 $0.a n.412) ($8.978 $5.142 $270 $4.645 77.a Appendix Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Unit Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Total Unit Sales Unit Prices Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Total Sales Direct Unit Costs Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Direct Cost of Sales Belgian Fries Italian Soda Merchandising Signature Packaged Sauces Subtotal Direct Cost of Sales 20.50 $8.147 Month 12 $4.83 $1.991 $243 $842 $150 $3.600 12 Month 11 $0 $4.50 $2.300 6 Month 5 $0 $2.50 $8.933 $1.642 $4.919 $0 $9.80 $0.000 $3.117 Personnel Plan Site Managers Cashiers Cook Busboy Total People Total Payroll 0% 0% 0% 0% Month 1 $0 $2.000 $300 $0 $27.976 4.447 $0 $0 .800 $9.185 $364 $1.654 $5.000 $3.133 $12.381 77.50 $2.800 $833 $0 $17.600 $1.681 78.243 619 523 13.00% 10.858 ($8.000 $125 $0 $17.00 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 $0.00 $0.Sales/Net Worth Dividend Payout 0.000 $1.80 $0.00 $4.565 $42.000 $1.933 $7.50 $2.80 $0.914) $0 $4.77% Month 6 $14.534) $0 $9.50 $8.50 $2.800 $833 $0 $17.944 77.200 $2.11% Month 3 $8.320 $1.930 $21.146 $14.15 $3.50 $2.348 180 150 3.15 $3.213) ($13.659 $202 $689 $150 $2.914) ($9.800 $9.15 $3.760 $1.00 $0.380 $960 $117 $459 $118 $1.77% 15% $4.900 $833 $0 $12.412) $0 $4.89% Month 11 Month 12 $45.200 $2.00 $1.000 $125 $0 $17.404 $1.84% Month 7 $22.263 $6.498 Month 10 $0.000 $42.666 $1.200 $2.00 1.235 $8.00 $0.700 $9.00 $0.13% Month 4 $10.933 $27.088 $25.617 220 150 4.426 $3.15 $3.50 $2.50 $2.02% Month 9 $32.000 $125 $0 $17.000 $3.10% Month 2 $7.000 650 100 100 1.152 $7.50 $2.368 $523 $7.00 $1.932 $27.900 $4.600 $1.870) $0 $9.690 516 444 11.907 4.900 $833 $0 $12.000 $3.000 $3.900 $4.00 $1.99 0.600 12 Month 8 $0 $4.529 Month 10 $4.83 $1.900 $833 $0 $12.218 1.300 6 Month 6 $0 $2.80 $0.023 $39.00 $1.530 $300 $9.684 77.600 $1.000 $300 $0 $27.600 $1.225 $11.00 $1.572 77.00 $4.386 $5.117 $35.252) $0 $9.45% Month 5 $12.380 $0 $1.80 $0.919 $1.00 $4.586 $481 $1.900 $9.440 936 144 139 2.224 $278 $6.474 $29.00% Month 10 6.83% 77.50 $8.50 $8.286) ($12.666 $10.953 $15.020 $236 $7.15 $3.225 $0 $3.00 $4.10 0.549 $22.900 $833 $0 $12.83 $1.900 $4.912 $1.978 $32.885) $0 $9.00 $0.961 $17.185 $4.900 $833 $0 $12.930 $0 $5.286) $0 $4.00 $0.685 $1.313 $7.110 $22.000 $125 $0 $17.80 $0.642 $26.046 $3.326 $8.981 2.600 12 Month 9 $0 $4.83 $1.83 $1.50 $8.244 5.365 $7.09% Month 8 $26.371 $319 $5.300 6 Month 3 $0 $2.982 $0 $1.83 $1.498 $10.000 $125 $25.174) ($11.000 $17.961 $0 $4.474 $0 $8.000 $300 $0 $27.974 $444 $6.00 Month 12 9.146 $2.925 $732 $2.047 $1.15 $3.50 $2.15 $3.813 $5.00 2% 2% 2% 1% 1.161 2.174) $0 $4.800 $9.00 $1.50 $2.790 358 319 8.654 $0 $1.83 $1.00 $4.728 1.880 3.858 ($9.00 $4.000 $3.83 $1.325 77.15 $3.447 77.00 $1.659 1.133 $12.170 $1.123 160 150 3.50 $2.000 $125 $0 $17.858 ($11.800 $833 $0 $17.382 $168 $612 $150 $2.880 743 618 16.00% 50.747 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 $4.842 $618 $8.00% 45.80 $0.605 $636 $2.00 $800 $98 $383 $100 $1.00 $1.209 430 376 9.15 $3.200 $2.850 1.751 2.504 $553 $1.800 Pro Forma Profit and Loss Month 1 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Rent Utilities New location setup Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense $6.641 Month 11 $4.476 3.00 $4.600 $1.00 Month 11 8.858 ($31.870 $2.930 $4.534) ($31.000 $975 $850 $200 $6.300 6 Month 7 $0 $4.257 $12.200 $2.982 $6.654 $1.00 $1.00 $0.117 $0 $0 $10.961 $3.50 $8.380 $4.858 ($13.655 $4.00 $1.025 $4.858 ($12.200 780 120 118 2.900 $833 $0 $12.025 $1.133 $12.15 $3.83 $1.022 $1.600 $1.778 2.800 $9.00 $0.83 $1.50 $8.00 $4.733 3.645 $376 $7.80 $0.800 $833 $833 $0 $0 $17.300 6 Month 2 $0 $2.088 $0 $7.697 $54.852 77.048 78.252) ($10.800 $9.43 0.700 $0 $2.226 $1.257 $2.000 $300 $0 $27.313 $0 $2.426 299 270 6.933 ($6.15 $3.000 $1.83 $1.80 $0.900 $4.982 $1.488 1.50 $8.000 $1.631 $14.326 $45.294 $2.600 12 Month 12 $0 $4.80 $0.00 $4.800 $833 $0 $17.600 12 Month 10 $0 $4.256 4.

443 $0 $0 $14.969 $0 $0 $0 $0 $0 $0 $0 $19.739 $0 $0 $0 $0 $0 $0 $0 $32.800) $650.184 ($8.374 $684.226 $7.409 ($6.51% Pro Forma Cash Flow Month 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax. VAT.365 $677.102 $33.800 $25.885) -25.000 ($68.899 $648.152 $32.847 $0 $0 $0 $0 $0 $0 $0 $19.785) ($103.660 $626.336 $0 $0 $0 $691.900 $14.739 $0 $656.969 $0 $0 $0 $708.200 $684.914) -96.739 $634.530 $649.612 $699.800 $40.378 $647 $731.969 Month 3 $14.374 $0 $0 $0 $0 $0 $0 $0 $20.857) $708.642 $22.041 $0 $649.068 $0 $0 $0 $0 $0 $0 $0 $45. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.860 $0 $13. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $6.152 Month 9 $9.213) $717.697 $54.000 ($68.800) ($25.847 $0 $0 $0 $731.498 Month 12 $9.667 $684.041 $0 $0 $0 $0 $0 $0 $0 $35.800) ($96.657 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 ($96.523 ($10.325 $0 $0 $22.125 $0 $0 $14.791 $627.415 $627.210 $661.534 $0 $0 $0 $661.28% $0 ($6.247 ($12.261 $800.242 $0 $0 $29.477 $0 $684.374 Month 4 $14.000 ($68.666 $8.200 $731.800) ($55.800) $652.200 $731.670) ($106.257 Month 4 $4.721 $0 $0 $25.847 $717.852 ($9.526 $699.299 $626.30% $0 ($12.899 Pro Forma Balance Sheet Month 1 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $0 $0 $0 $0 $0 $800.000 ($68.380 ($27.739 Month 7 $22.127 $32.969 $0 $708.530 $624.810 $0 $0 $39.152 $38.826 $0 $0 $0 $719.800 $24.697 Month 11 $9.000 ($68.443 $800.041 Month 9 $24.534 $0 $0 $0 $0 $0 $0 $0 $38.523 $0 $0 $0 $0 $0 $0 $0 $10.000 ($68.623 $19.000 ($68.657 $677.336 $0 $0 $0 $0 $0 $0 $0 $21.949) $650.325 $0 $22.443 $0 $14.146 Month 5 $4.146 $12.025 $7.852 $0 $0 $0 $0 $0 $0 $0 $12.226 Month 2 $4.526 $708.987 $731.374 $0 $699.261 $0 $23.899 $0 $0 $0 $677.800) ($46.721 $0 $25.810 $0 $39.969 $694.332 $38.800) $649.94% $0 ($9.791 $0 $0 $0 $650.380 $0 $0 $0 $0 $0 $0 $0 $26.132 $16.791 $0 $0 $0 $0 $0 $0 $0 $33.041 $624.952 $19.324 $0 $27.000 ($68.52% $0 ($2.463 $9.800) ($13.286) -170.336 $676.860 $0 $0 $13.299 $0 $652.125 $0 $14.174) -128.826 Month 2 $14.800) ($36.666 Month 3 $4.299 $0 $0 $0 $652.595) $699.800) ($82.543) $648.200 $0 $731.136 $0 $0 $15.899 Month 12 $29.762 $0 $0 $14.299 Month 10 $25.738) $656.210 $677.533) $644.978 Month 8 $9. VAT.919 5.247 $0 $0 $0 $0 $0 $0 $0 $8.412) -69.579 .697 $45.900 $16.259 $652.000 ($68.847 Month 1 $13.347 $19.800) ($86.447 16.326 Month 10 $9.415 $650.200 $731.762 $0 $14.826 $705.579 $656.324 $0 $0 $27.534 $634.660 $652.242 $800.902 ($1.978 $32.987 $719.242 $0 $29.509 $21.324 $800.549 $22.899 $0 $677.549 Month 6 $4.136 $0 $15.663 $36.381 $0 $0 $24.268 $35.902 $0 $0 $0 $0 $0 $0 $0 $38.381 $800.739 $0 $0 $0 $656.226 $8.261 $0 $0 $23.800) $661.800 $23.25% $0 ($31.146 $14.900 $15.326 $38.326 $45.381 $0 $24.477 $644.847 $0 $731.534 $0 $661.477 $0 $0 $0 $684.540) ($104.299 $0 $0 $0 $0 $0 $0 $0 $36.038) $691.860 $800.000 ($68.667 $656.978 $26.184 $0 $0 $0 $0 $0 $0 $0 $14.477 $0 $0 $0 $0 $0 $0 $0 $50.Taxes Incurred Net Profit Net Profit/Sales $0 ($13.800 $28.927 ($5.252) -45.213) -219.284 $20.642 $26.621) $634.000) $676.93% $0 $1.336 Month 5 $15.674) $694.463 $0 $0 $0 $0 $0 $0 $0 $54.534) -216.200 $691.612 $691.477 Month 6 $39.721 $800.336 $0 $691.701 $708.498 $54.66% $0 ($8.325 $800.534 Month 11 $27.74% $0 ($10.021) $719.499) $705.000 ($68.870) -8.549 $14.01% $0 $0 $7.498 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 0.642 Month 7 $9.257 $12.900 $14.257 $10.200 $0 $0 $0 $731.00% $0 $0 $0 $0 $0 $0 $0 $6.800) $0 $731.580 $50.025 $6.132 $0 $0 $0 $0 $0 $0 $0 $5.762 $800.701 $719.409 $0 $0 $0 $0 $0 $0 $0 $22.800 $26.859) $684.791 Month 8 $23.000 ($68.70% 26.631 $14.810 $800.136 $800.125 $800.791 $0 $650.666 $10.378 $0 $0 $0 $0 $0 $0 $0 $7.025 Month 1 $4.900 $478 $5.068 $3.234 $661.826 $0 $0 $0 $0 $0 $0 $0 $19.927 $0 $0 $0 $0 $0 $0 $0 $32.750) $649.990) $634.374 $0 $0 $0 $699.900 $14.03% $0 ($11.041 $0 $0 $0 $649.000 ($68.200 Starting Balances $731.826 $0 $719.588) $684.

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