Business plan

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Based on the achievement of learning outcomes 1, 2, 3, 4. To be submitted in week 10 In assessment 1 you are required to prepare a 1500-word feasibility study for a food and beverage operation of your choice. It can be located in any country and for that reason must comply with the country’s laws and regulations, but all financial considerations and any costing must be in Swiss Francs. Conducting a feasibility study prior to investing the time and money to open a business can help an entrepreneur make a more informed decision about the venture's chances of success because they often overestimate the size of the market and do not take into account tough competition. Your research and findings should be included in the feasibility study and referenced appendices can be included. You should cover the following areas although you are free to include more.

Sheet 2 – Table 1-1

YES' Hotels
Income Statement (F&B Revenue)
As of December 31, 2013 and 2014
F&B Revenue 2013 2014 $ change % change
Dining Room $201,600 $221,900 $20,300 10.07%
Coffee Shop $195,900 $201,700 $5,800 2.96%
Banquets $261,200 $241,100 ($20,100) -7.70%
Room Service $81,700 $82,600 $900 1.10%
Bar $111,200 $121,800 $10,600 9.53%
Total Revenues: $851,600 $869,100 $17,500 2.05%

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Sheet 3

She’s
Income Statement for the Months Ended June 30 and July 31, 2014
June July $ change % change
Revenues:
Food $ 890,000 $ 927,000 37,000 4.16%
Beverage $ 220,000 $ 201,100 (18,900) (8.59%)
Others $ 28,100 $ 26,150 (1,950) (6.94%)
Total Revenues $ 1,138,100 $ 1,154,250 16,150 1.42%
Cost of Sales:
Food $ 320,400 $ 358,700 38,300 11.95%
Beverage $ 48,400 $ 48,000 (400) (0.83%)
Others $ 15,455 $ 15,010 (445) (2.88%)
Total Cost of Sales $ 384,255 $ 421,710 37,455 9.75%
Gross Profit:
Food $ 569,600 $ 568,300 (1,300) (0.23%)
Beverage $ 171,600 $ 153,100 (18,500) (10.78%)
Others $ 12,645 $ 11,140 (1,505) (11.90%)
Total Gross Profit $ 753,845 $ 732,540 (21,305) (2.83%)
Operating Expenses:
Salaries and Wages $ 352,811 $ 353,000 189 0.05%
Employee Benefits $ 105,843 $ 105,900 57 0.05%
Direct Operating Expenses $ 68,286 $ 69,578 1,292 1.89%
Marketing $ 39,834 $ 35,000 (4,834) (12.14%)
Utilities $ 44,386 $ 45,900 1,514 3.41%
Administration and General $ 28,453 $ 28,453 0 0.00%
Repairs and Maintenance $ 25,038 $ 15,040 (9,998) (39.93%)
Music and Entertainment $ 31,867 $ 32,045 178 0.56%
Total Operating Expenses $ 696,518 $ 684,916 (11,602) (1.67%)
Operating Income $ 57,327 $ 47,624 (9,703) (16.93%)
Other Expenses:
Rent $ 8,000 $ 8,000 0 0.00%
Depreciation $ 20,470 $ 20,470 0 0.00%
Interest $ 4,500 $ 2,250 (2,250) (50.00%)
Total Other Expenses $ 32,970 $ 30,720 (2,250) (6.82%)
Income Before Income Taxes $ 24,357 $ 16,904 (7,453) (30.60%)

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Sheet1

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Sources_Uses

Sources and Uses of Funds
Uses of Funds
Operating Equipment $ 45,000.00
Refurbishment $ 20,000.00
initial inventory $ 3,000.00
payroll 6 months $ 15,000.00
initial marketing $ 7,000.00
miscellaneous $ 10,000.00
Total $ 100,000.00
Sources of Funds
Own Funds $ 20,000.00
Investors $ – 0
Bank Loan $ 80,000.00
Total $ 100,000.00

Balance_Sheet

Balance Sheet
Opening Balance Month 1 Month 2 Month 3
Assets
Current Assets
Cash $ 100,000.00 $ 38,724.30 $ 22,048.60 $ 27,466.93
Inventory $ – 0 $ 1,000.00 $ 1,000.00 $ 2,000.00
Accounts Receivable $ – 0 $ – 0
non-current Assets
Rent Deposit $ – 0 $ – 0 $ – 0
Equipment $ 52,000.00 $ 52,000.00 $ 52,000.00
less: accumulated depreciation $ 841.27 $ 1,682.54 $ 2,523.81
Total Equipment $ 51,158.73 $ 50,317.46 $ 49,476.19
total Assets $ 100,000.00 $ 90,883.03 $ 73,366.06 $ 78,943.12
Liabilities
Current Liabilities $ – 0 $ – 0 $ – 0
Accounts Payable
Salaries Payable
Current Portion of Long-Term Debt $ 38,095.24 $ 38,399.01 $ 38,705.21
Non-Current Liabilities
non-Current Portion of Long-Term Debt $ 38,866.99 $ 35,501.23 $ 32,108.62
total liabilties $ 80,000.00 $ 76,962.23 $ 73,900.24 $ 70,813.83
Owner's Equity
common stock $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00
retained earnings $ -6,079.20 $ -20,534.18 $ -11,870.71
total Owner's Equity $ 20,000.00 $ 13,920.80 $ -534.18 $ 8,129.29
Liabilities + O.E. $ 100,000.00 $ 90,883.03 $ 73,366.06 $ 78,943.12
check $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0

Income_Statement

Income Statement
Month 1 Month 2 Month 3
Revenues
Food Revenues $ – 0 $ – 0 $ 15,000.00
Beverage Revenues $ – 0 $ – 0 $ 6,000.00
Total Revenues $ – 0 $ – 0 $ 21,000.00
Expenses
C.O.F.S. $ – 0 $ – 0 $ 3,750.00
C.O.B.S. $ – 0 $ – 0 $ 1,200.00
Payroll & Related $ 2,500.00 $ 2,500.00 $ 3,500.00
Depreciation $ 841.27 $ 841.27 $ 841.27
Petrol $ 100.00 $ 500.00 $ 1,000.00
Interest $ 637.93 $ 613.71 $ 589.29
Miscellaneous $ 2,000.00 $ 10,000.00 $ 1,000.00
Total Expenses $ 6,079.20 $ 14,454.98 $ 11,880.56
pre-tax Income $ -6,079.20 $ -14,454.98 $ 9,119.44
Income Tax $ – 0 $ – 0 $ 455.97
Net Income $ -6,079.20 $ -14,454.98 $ 8,663.47
Retained Earnings
Opening Balance $ – 0 $ -6,079.20 $ -20,534.18
+ Net Profit $ -6,079.20 $ -14,454.98 $ 8,663.47
– Dividends $ – 0 $ – 0 $ – 0
Closing Balance $ -6,079.20 $ -20,534.18 $ -11,870.71

Equipment

Equipment
item cost useful life (years) useful life (months) depreciation per month
Truck $ 40,000.00 5 60 $ 666.67
Computer $ 2,000.00 3 36 $ 55.56
Equipment $ 10,000.00 7 84 $ 119.05
total $ 52,000.00 $ 841.27

Statement of Cash Flows

Statement of Cash Flows
Month 1 Month 2 Month 3
C.f. from Operating Activities
Net Income $ -6,079.20 $ -14,454.98 $ 8,663.47
Adjustments to reconcile
+ depreciation $ 841.27 $ 841.27 $ 841.27
Current Assets $ -1,000.00 $ – 0 $ -1,000.00
Current Liabilities $ – 0 $ – 0
C.f. from Operating Activities $ -6,237.93 $ -13,613.71 $ 8,504.74
C.f.from Financing Activities $ -3,037.77 $ -3,061.99 $ -3,086.41
Cash Flow from Investing Activities
Purchasing of Equipment $ -52,000.00 $ – 0 $ – 0
Cash Flow from Investing Activities $ -52,000.00 $ – 0 $ – 0
Cash Flow $ -61,275.70 $ -16,675.70 $ 5,418.33
Opening Cash Balance $ 100,000.00 $ 38,724.30 $ 22,048.60
Cash Flow $ -61,275.70 $ -16,675.70 $ 5,418.33
Closing Cash Balance $ 38,724.30 $ 22,048.60 $ 27,466.93

Assumptions

Assumptions Sheet
Food Cost% 25%
BevCost% 20%
Income Tax rate 5%

loan

Loan payment
Annual interest rate 10.0%
Monthly rate 0.80%
Loan amount $80,000
Durantion (months) 24 320
Payment ($3,675.70)
Month Principal balance Principal payment Interest Payment
1 $80,000 ($3,038) ($638) ($3,676)
2 $76,962 ($3,062) ($614) ($3,676)
3 $73,900 ($3,086) ($589) ($3,676)
4 $70,814 ($3,111) ($565) ($3,676)
5 $67,703 ($3,136) ($540) ($3,676)
6 $64,567 ($3,161) ($515) ($3,676)
7 $61,406 ($3,186) ($490) ($3,676)
8 $58,220 ($3,211) ($464) ($3,676)
9 $55,009 ($3,237) ($439) ($3,676)
10 $51,772 ($3,263) ($413) ($3,676)
11 $48,509 ($3,289) ($387) ($3,676)
12 $45,220 ($3,315) ($361) ($3,676)
13 $41,905 ($3,342) ($334) ($3,676)
14 $38,563 ($3,368) ($308) ($3,676)
15 $35,195 ($3,395) ($281) ($3,676)
16 $31,800 ($3,422) ($254) ($3,676)
17 $28,378 ($3,449) ($226) ($3,676)
18 $24,928 ($3,477) ($199) ($3,676)
19 $21,452 ($3,505) ($171) ($3,676)
20 $17,947 ($3,533) ($143) ($3,676)
21 $14,414 ($3,561) ($115) ($3,676)
22 $10,854 ($3,589) ($87) ($3,676)
23 $7,264 ($3,618) ($58) ($3,676)
24 $3,647 ($3,647) ($29) ($3,676)
25 ($0) ($0) $0 $0
26 ($0) ($0) $0 $0
27 ($0) ($0) $0 $0
28 ($0) ($0) $0 $0
29 ($0) ($0) $0 $0
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36 ($0) ($0) $0 $0
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49 ($0) ($0) $0 $0
50 ($0) ($0) $0 $0
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91 ($0) ($0) $0 $0
92 ($0) ($0) $0 $0
93 ($0) ($0) $0 $0
94 ($0) ($0) $0 $0
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98 ($0) ($0) $0 $0
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116 ($0) ($0) $0 $0
117 ($0) ($0) $0 $0
118 ($0) ($0) $0 $0
119 ($0) ($0) $0 $0
120 ($0) ($0) $0 $0

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Sheet 2 – Table 1-1

YES' Hotels
Income Statement (F&B Revenue)
As of December 31, 2013 and 2014
F&B Revenue 2013 2014 $ change % change
Dining Room $201,600 $221,900 $20,300 10.07%
Coffee Shop $195,900 $201,700 $5,800 2.96%
Banquets $261,200 $241,100 ($20,100) -7.70%
Room Service $81,700 $82,600 $900 1.10%
Bar $111,200 $121,800 $10,600 9.53%
Total Revenues: $851,600 $869,100 $17,500 2.05%

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Sheet 3

She’s
Income Statement for the Months Ended June 30 and July 31, 2014
June July $ change % change
Revenues:
Food $ 890,000 $ 927,000 37,000 4.16%
Beverage $ 220,000 $ 201,100 (18,900) (8.59%)
Others $ 28,100 $ 26,150 (1,950) (6.94%)
Total Revenues $ 1,138,100 $ 1,154,250 16,150 1.42%
Cost of Sales:
Food $ 320,400 $ 358,700 38,300 11.95%
Beverage $ 48,400 $ 48,000 (400) (0.83%)
Others $ 15,455 $ 15,010 (445) (2.88%)
Total Cost of Sales $ 384,255 $ 421,710 37,455 9.75%
Gross Profit:
Food $ 569,600 $ 568,300 (1,300) (0.23%)
Beverage $ 171,600 $ 153,100 (18,500) (10.78%)
Others $ 12,645 $ 11,140 (1,505) (11.90%)
Total Gross Profit $ 753,845 $ 732,540 (21,305) (2.83%)
Operating Expenses:
Salaries and Wages $ 352,811 $ 353,000 189 0.05%
Employee Benefits $ 105,843 $ 105,900 57 0.05%
Direct Operating Expenses $ 68,286 $ 69,578 1,292 1.89%
Marketing $ 39,834 $ 35,000 (4,834) (12.14%)
Utilities $ 44,386 $ 45,900 1,514 3.41%
Administration and General $ 28,453 $ 28,453 0 0.00%
Repairs and Maintenance $ 25,038 $ 15,040 (9,998) (39.93%)
Music and Entertainment $ 31,867 $ 32,045 178 0.56%
Total Operating Expenses $ 696,518 $ 684,916 (11,602) (1.67%)
Operating Income $ 57,327 $ 47,624 (9,703) (16.93%)
Other Expenses:
Rent $ 8,000 $ 8,000 0 0.00%
Depreciation $ 20,470 $ 20,470 0 0.00%
Interest $ 4,500 $ 2,250 (2,250) (50.00%)
Total Other Expenses $ 32,970 $ 30,720 (2,250) (6.82%)
Income Before Income Taxes $ 24,357 $ 16,904 (7,453) (30.60%)

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Sheet1

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