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Cover Page

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Table of Contents

1.0 Executive Summary...............................................................................................................................1 1.1 Objectives..........................................................................................................................................2 1.2 Mission...............................................................................................................................................2 C art! "ig lig ts..................................................................................................................................# 1.# $eys to Success..................................................................................................................................# 2.0 Com%any Summary...............................................................................................................................# 2.1 Com%any O&ners i%.........................................................................................................................# 2.2 Start'u% Summary..............................................................................................................................( C art! Start'u%......................................................................................................................................( Table! Start'u%.....................................................................................................................................( Table! Start'u% )un*ing.......................................................................................................................+ 2.# Com%any ,ocations an* )acilities.....................................................................................................#.0 Pro*ucts..................................................................................................................................................#.1 Pro*uct .escri%tion...........................................................................................................................#.2 Com%etitive Com%arison...................................................................................................................#.# Sourcing............................................................................................................................................./ #.( Tec nology......................................................................................................................................../ #.+ )uture Pro*ucts................................................................................................................................../ (.0 Mar0et 1nalysis Summary..................................................................................................................../ (.1 Mar0et Segmentation.........................................................................................................................2 Table! Mar0et 1nalysis........................................................................................................................2 C art! Mar0et 1nalysis 3Pie4...............................................................................................................5 (.2 Target Mar0et Segment Strategy.......................................................................................................5 (.2.1 Mar0et Tren*s.............................................................................................................................5 (.2.2 Mar0et 6ro&t ..........................................................................................................................10 (.2.# Mar0et 7ee*s............................................................................................................................10 (.# 8n*ustry 1nalysis.............................................................................................................................10 (.#.1 .istribution Patterns.................................................................................................................11 (.#.2 Com%etition an* 9uying Patterns.............................................................................................11 (.#.# Main Com%etitors.....................................................................................................................11 (.#.( 8n*ustry Partici%ants.................................................................................................................1# +.0 Strategy an* 8m%lementation Summary...............................................................................................1# +.1 Strategy Pyrami*..............................................................................................................................1# +.2 :alue Pro%osition.............................................................................................................................1( +.# Com%etitive E*ge.............................................................................................................................1( +.( Mar0eting Strategy...........................................................................................................................1( +.(.1 Promotion Strategy...................................................................................................................1( +.(.2 .istribution Strategy.................................................................................................................1+ +.(.# Mar0eting Programs..................................................................................................................1+ +.(.( Positioning Statement...............................................................................................................1+.(.+ Pricing Strategy.........................................................................................................................1+.+ Sales Strategy...................................................................................................................................1+.+.1 Sales )orecast............................................................................................................................1C art! Sales Mont ly.....................................................................................................................1/ C art! Sales by ;ear......................................................................................................................12 Page 1

Table of Contents

Table! Sales )orecast.....................................................................................................................12 +.+.2 Sales Programs..........................................................................................................................15 +.- Strategic 1lliances...........................................................................................................................20 +./ Milestones........................................................................................................................................20 Table! Milestones...............................................................................................................................20 C art! Milestones...............................................................................................................................21 -.0 Management Summary........................................................................................................................21 -.1 Management Team...........................................................................................................................21 -.2 Management Team 6a%s.................................................................................................................22 -.# Organi<ational Structure..................................................................................................................22 -.( Personnel Plan..................................................................................................................................2# Table! Personnel.................................................................................................................................2# /.0 )inancial Plan.......................................................................................................................................2( /.1 8m%ortant 1ssum%tions....................................................................................................................2+ Table! 6eneral 1ssum%tions..............................................................................................................2+ /.2 $ey )inancial 8n*icators..................................................................................................................2+ C art! 9enc mar0s.............................................................................................................................2/.# 9rea0'even 1nalysis........................................................................................................................2Table! 9rea0'even 1nalysis...............................................................................................................2C art! 9rea0'even 1nalysis...............................................................................................................2/ /.( Projecte* Profit an* ,oss.................................................................................................................2/ C art! 6ross Margin ;early...............................................................................................................22 Table! Profit an* ,oss........................................................................................................................22 C art! Profit Mont ly.........................................................................................................................25 C art! Profit ;early............................................................................................................................#0 C art! 6ross Margin Mont ly............................................................................................................#0 /.+ Projecte* Cas )lo&........................................................................................................................#0 Table! Cas )lo&...............................................................................................................................#1 C art! Cas .........................................................................................................................................#2 /.- Projecte* 9alance S eet...................................................................................................................#2 Table! 9alance S eet..........................................................................................................................#2 /./ 9usiness =atios................................................................................................................................## Table! =atios......................................................................................................................................## /.2 Exit Strategy.....................................................................................................................................#( Table! Sales )orecast...................................................................................................................................1 ......................................................................................................................................................................2 Table! Personnel...........................................................................................................................................# ......................................................................................................................................................................# Table! 6eneral 1ssum%tions........................................................................................................................( Page 2

Table of Contents

......................................................................................................................................................................( Table! Profit an* ,oss..................................................................................................................................+ ......................................................................................................................................................................Table! Cas )lo&........................................................................................................................................./ Table! 9alance S eet....................................................................................................................................2

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T e .aily Perc

9.+ C6ecutive #ummary .he Baily erc $.B & is a specialty beverage retailer. .B uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time: efficient way. .B provides its customers the ability to drive up and order $from a trained 'arista& their choice of a custom:blended espresso drink, freshly brewed coffee, or other beverage. .B is offering a high:-uality option to the fast:food, gas station, or institutional coffee. .he Baily erc offers its patrons the finest hot and cold beverages, specialiDing in specialty coffees, blended teas, and other custom drinks. ,n addition, .B will offer soft drinks, fresh: baked pastries and other confections. #easonally, .B will add beverages such as hot apple cider, hot chocolate, froDen coffees, and more. .he Baily erc will focus on two markets! The &aily Comm'ter: someone traveling toEfrom work, out shopping, delivering goods or services, or just out for a drive. The Capti%e Cons'mer: someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. .he Baily erc will penetrate the commuter and captive consumer markets by deploying Brive: thru facilities and Fobile 1afes in the most logical and accessible locations. .he Brive:thru facilities are designed to handle two:sided traffic and dispense customer:designed, specially ordered cups of premium coffees in less time than re-uired for a visit to the locally owned cafe or one of the national chains. ,n addition to providing a -uality product and an e6tensive menu of delicious items, to ensure customer awareness and loyalty, as well as good publicity coverage and media support, we will be donating up to =.23 of revenue to local charities based upon customer choices. .he Baily ercGs financial picture is -uite promising. #ince .B is operating a cash business, the initial cost is significantly less than many start:ups these days. .he process is labor intensive and .B recogniDes that a higher level of talent is re-uired. .he financial investment in its employees will be one of the greatest differentiators between it and .B Gs competition. )or the purpose of this pro:forma plan, the capital e6penditures of facilities and e-uipment are financed. .here will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. .he Baily erc anticipates the initial combination of investments and long term financing of HI*2,+++ to carry it without the need for any additional e-uity or debt investment, beyond the purchase of e-uipment or facilities. .his will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially:sound growth based on customer re-uest and product demand. .he Baily erc chooses to become the Brive:thru version of #tarbucks between the mountains, obtaining several million dollars through an initial public or private offering that would allow the company to open twenty to thirty facilities per year in all metropolitan communities in the 5orth, Fidwest, and #outh with a population of over 92+,+++. .his is the preferred C6it #trategy of the Fanagement .eam. .he danger in this is that competitors would rise up and

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T e .aily Perc

establish a foothold on a community before::or in the midst of::the arrival of .he Baily erc, causing a potential for a drain on revenues and a dramatic increase in advertising e6penditures to maintain market share. Jnowing these risks::and planning for them::gives .B the edge needed to make this scenario work. .he balance sheet estimates a 5et Worth of H9,+=2,<>< for the third year, cash balances of H==K,>*K and earnings of H;>+,I*;, based on 9K Brive:thrus and four Fobile 1afes, it is not unrealistic to put a market value of between HI and H< million on the company. At present, such companies are trading in multiples of four to 9+ times earnings, and it is simple mathematics to multiply the success of .B by the number of major and smaller metropolitan areas between the mountain ranges of the Anited #tates. 9.9 Lbjectives .he Baily erc has established three firm objectives it wishes to achieve in the ne6t three years! 9. .hirteen Brive:thru locations and four fully booked Fobile 1afes by the end of the third year. *. Mross Fargin of I23 or more. K. 5et After:ta6 rofit above 923 of #ales. 9.* Fission .he Baily erc Fission is three:fold, with each being as integral to our success as the ne6t. Prod'ct (ission : rovide customers the finest -uality beverage in the most efficient time. Comm'nity (ission : rovide community support through customer involvement. )conomic (ission : Lperate and grow at a profitable rate through sound economic decisions.

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T e .aily Perc

1hart! Nighlights

9.K Jeys to #uccess .here are four keys to success in this business, three of which are virtually the same as any food service business. ,t is our fourth key::the 1ommunity Fission::that will give us that e6tra measure of respect in the public eye. 9. .he greatest locations : visibility, high traffic pattern, convenient access. *. .he best products : freshest coffee beans, cleanest e-uipment, premium serving containers, consistent flavor. K. .he friendliest servers : cheerful, skilled, professional, articulate. I. .he finest reputation : word:of:mouth advertising, promotion of our community mission of charitable giving. *.+ 1ompany #ummary .he Baily erc is a specialty beverage retailer. .B uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time:efficient way. .B provides its customers the ability to drive up and order from a trained 'arista their choice of a custom blended espresso drink, freshly brewed coffee, or other beverage. .B is offering a high -uality option to the fast:food, gas station, and institutional coffee. *.9 1ompany Lwnership .he Baily erc is a Limited Liability 1orporation. All membership shares are currently owned by 'art and .eresa )isher, with the intent of using a portion of the shares to raise capital. .he plan calls for the sale of 9++ membership units in the company to family members, friends, and Angel ,nvestors. Cach membership unit in the company is priced at HI,*2+, with a minimum of five units per membership certificate, or a minimum investment of H*9,*2+ per investor.

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T e .aily Perc

,f all funds are raised, based on the pricing established in the financial section of this plan, 'art and .erri )isher will maintain ownership of no less than 293 of the company. *.* #tart:up #ummary .he Baily ercGs start:up e6penses and funding are shown in the tables and chart below. .he majority of these funds will be used to build the first facility, pay deposits, and provide capital for si6 months of operating e6penses, initial inventory and other one:time e6penses. .he Baily erc anticipates the need for operating capital for the first few months of operation.

1hart! #tart:up

.able! #tart:up

Start-up Requirements Start-up Expenses Legal Office Equipment Dri e-t!ru La"#r $% m#nt!s& Dri e-t!ru 'inance (a)ment $% m#nt!s& Dri e-t!ru expenses $% m#nt!s& Lan- Lease $% m#nt!s& /e!icle 'inance $% m#nt!s& 0-ministrati#n La"#r $% m#nt!s& 1e"site De el#pment 2 3#sting 4-entit)5L#g#s5Stati#nar) Ot!er 6#tal Start-up Expenses $3,500 $4,950 $%5,000 $*+,300 $,,5+0 $.,+00 $3,.00 $54,000 $5,%00 $4,000 $5,000 $*.3,..0

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T e .aily Perc

Start-up 0ssets 7as! RequireStart-up 4n ent#r) Ot!er 7urrent 0ssets L#ng-term 0ssets 6#tal 0ssets Total Requirements $+5,500 $35,000 $0 $*3*,400 $*9*,900 $3%5,%.0

.able! #tart:up )unding

Start-up Funding Start-up Expenses t# 'unStart-up 0ssets t# 'un6#tal 'un-ing Require0ssets 8#n-cas! 0ssets fr#m Start-up 7as! Requirements fr#m Start-up 0--iti#nal 7as! Raise7as! 9alance #n Starting Date 6#tal 0ssets $*%%,400 $+5,500 $0 $+5,500 $*9*,900 $*.3,..0 $*9*,900 $3%5,%.0

Lia"ilities an- 7apital Lia"ilities 7urrent 9#rr#:ing L#ng-term Lia"ilities 0cc#unts (a)a"le $Outstan-ing 9ills& Ot!er 7urrent Lia"ilities $interest-free& 6#tal Lia"ilities 7apital (lanne- 4n estment (artner * (artner + (artner 3 (artner 4 (artner 5 (artner % (artner . (artner , (artner 9 (artner *0 (artner ** (artner *+ Ot!er 0--iti#nal 4n estment Requirement 6#tal (lanne- 4n estment L#ss at Start-up $Start-up Expenses& 6#tal 7apital $*0,000 $*0,000 $*0,000 $*0,000 $**,500 $*0,000 $**,500 $*0,000 $**,500 $*0,000 $**,500 $**,500 $9.,..0 $0 $++5,+.0 $$*.3,..0& $5*,500 $9,000 $*3*,400 $0 $0 $*40,400

6#tal 7apital an- Lia"ilities Total Funding

$*9*,900 $3%5,%.0

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T e .aily Perc

*.K 1ompany Locations and )acilities .he Baily erc will open its first drive:thru facility on Fanchester 7oad in the 1olonial #-uare #hopping 1enter. .welve more drive:thru facilities will be placed throughout the metropolitan area over the ne6t three years. .he drive:thru in the 1olonial #-uare #hopping 1enter will serve as the commissary for the first mobile unit. .he demographic and physical re-uirements for a Brive:thru location are! .raffic of I+,+++O on store side. Pisible from roadway. Casy entry with light if less than K+,+++ cars. Cstablished retail shops in area.

K.+ roducts .he Baily erc provides its patrons the finest hot and cold beverages, specialiDing in specialty coffees and custom blended teas. ,n addition, .B will offer select domestic soft drinks, ,talian sodas, fresh:baked pastries, and other confections. #easonally, .B will add beverages such as hot apple cider, hot chocolate, froDen coffees, and more. K.9 roduct Bescription .B provides its customers, whether at a Brive:thru facility or one of the Fobile 1afes, the ability to custom order a coffee beverage that will be blended to their e6act specifications. Cach of .B Gs 'aristas will be trained in the fine art of brewing, blending, and serving the highest -uality hot and cold beverages, with e6ceptional attention to detail. 'esides coffees, .he Baily erc will offer teas, domestic and ,talian sodas, froDen coffee beverages, seasonal specialty drinks, pastries, and other baked goods. .hrough the website and certain locations, .B will market premium items such as coffee mugs, .:shirts and sweatshirts, ball caps, and more. K.* 1ompetitive 1omparison .he Baily erc considers itself to be a player in the retail coffee house industry. Nowever, it knows that competition for its products range from soft drinks to milk shakes to adult beverages. .he Baily ercGs primary competition will come from three sources! 9. 5ational coffee houses such as #tarbucks and anera. *. Locally owned and operated cafes. K. )ast food chains and convenience stores. .wo things will make .he Baily erc stand out from all its competitors! .he Baily erc will be providing products in the most convenient and efficient way available:: either at one of the two:sided Brive:thru shops, or at one of the Fobile 1afes. .his separates .B from the competition in that its customers wonGt need to find a parking place, wait in a

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T e .aily Perc

long line, jockey for a seat, and clean up the mess left by a previous patron. .B customers can drive or walk up, order their beverage, receive and pay for the beverage, and drive off. .he second differentiator is .he Baily ercGs focus on providing a significant benefit to the community through a possible =.23 contribution to customer:identified charities, schools, or other institutions. K.K #ourcing .he Baily erc purchases its coffees from QGs 1offee. .B also has wholesale purchasing agreements for other products with Fajor 'rands, 1oca:1ola, 'ig .rain, AlGs )amous )illed 'agels, LR5 roducts, and 7oyal Bistribution. .he Brive:thru facilities are manufactured by 1ity #tations and the Fobile 1afes are manufactured by .ow .ech ,ndustries. )ulfillment e-uipment suppliers include QGs 1offee, 1ity #tations, .albert )ord, and 7etail ,mage rograms. .he Baily ercGs computer e-uipment and ,nternet connectivity is provided by 5#, 1ommunications. K.I .echnology .he Baily ercGs delivery system is based on its technology. .B is using state:of:the:art, two: sided, Brive:thru facilities to provide convenience and efficiency for its clientele. An architectural e6terior diagram of the Brive .hru building can be found on the following page $removed from this sample plan&. .he Baily erc has also designed state:of:the:art Fobile 1afes that will be deployed from time to time on high school and college campuses, corporate campuses, and at special events. K.2 )uture roducts As seasons change, .he Baily erc will be offering products that will enhance sales and satisfy its customersG desires. Buring summer months, .B will subsidiDe lower hot beverage sales with froDen coffee drinks, as well as soft drinks, and other cold beverages. .B will also have special beverages during holiday seasons, such as Cgg 5og during the 1hristmas season and Not Apple 1ider in the )all. .he Baily ercGs primary desire will be to listen to its customers to ascertain what they are looking for most, and provide it. I.+ Farket Analysis #ummary .he Baily erc will focus on two markets! 9. The &aily Comm'ter : someone traveling to or from work, out shopping, delivering goods or services, or just out for a drive. *. The Capti%e Cons'mer : someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment.

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T e .aily Perc

I.9 Farket #egmentation .he Baily erc will focus on two different market segments! 1ommuters and 1aptive 1onsumers. .o access both of these markets, .B has two different delivery systems. )or the commuters, .B has the Brive:thru coffee house. )or the captive consumer, .B has the Fobile 1afe. 1ommuters are defined as any one or more individuals in a motoriDed vehicle traveling from point SAS to point S'.S .he Baily ercGs greatest concentration will be on commuters heading to or from work, or those out on their lunch break. 1aptive 1onsumers would include those who are tethered to a campus environment, or in a restricted entry environment that does not allow free movement to and from. C6amples would include high school and college campuses, where there is limited time between classes, and corporate campuses where the same time constraints are involved, but regarding meetings and project deadlines, and special events::such as carnivals, fairs or festivals::where there is an admission price to enter the gate, but e6iting would mean another admission fee, or where refreshments are an integral part of the festivities. .he following chart and table reflect the potential numbers of venues available for the Fobile 1afes and what growth could be e6pected in those markets over the ne6t five years. )or a conservative estimate of the number of 1aptive 1onsumers this represents, multiply the total number of venues in the year by 9,+++. As an e6ample, in the first year, .he Baily erc is showing that there are a total of *,2;* venues at which we might position a Fobile 1afe. .hat would e-uate to a 1aptive 1onsumer potential of *,2;*,+++. #imilarly, there are well over *,2++,+++ commuters in the metropolitan area, as well as visitors, vacationers, and others. ,t can also be assumed that these commuters do not make only one purchase in a day, but in many cases, two and even three beverage purchases. .he chart reflects college and high school campuses, special events, hospital campuses, and various charitable organiDations. A segment that is not reflected in the chart $since it would skew the chart so greatly& is the number of corporate campuses in the metropolitan area. .here are over 9,=++ corporate facilities that house more than 2++ employees, giving us an additional 9,=++,+++ prospective customers, or total of *,2;* locations at which we could place a Fobile 1afe. .able! Farket Analysis

Market Analysis ;ear * (#tential 7ust#mers (u"lic 3ig! Sc!##l 7ampuses (ri ate 3ig! Sc!##ls 7#llege 7ampuses <#lf 7#urses Special E ents 8#n-(r#fits :5$500?@ 9u-gets 3#spital 7ampuses Total <r#:t! *= 0= 0= 0= 3= += 0= *>*0= ,0 ,, .. 99 43 3%+ *00 ,49 ,* ,, .. 99 44 3%9 *00 ,5, ,+ ,, .. 99 45 3.% *00 ,%. ,3 ,, .. 99 4% 3,4 *00 ,.. ,4 ,, .. 99 4. 39+ *00 ,,. ;ear + ;ear 3 ;ear 4 ;ear 5 70<R *>+3= 0>00= 0>00= 0>00= +>+5= +>0*= 0>00= *>*0=

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T e .aily Perc

1hart! Farket Analysis $ ie&

I.* .arget Farket #egment #trategy .B Gs target market is the mobile individual who has more money than time, and e6cellent taste in a choice of beverage, but no time to linger in a cafe. 'y locating the Brive:.hrus in high trafficEhigh visibility areas, this uni-ue::and abundant::consumer will seek .he Baily erc out and become a regular guest. .o penetrate the target market for the Fobile 1afes, these units will do what they were designed to do. .he Baily erc will take the cafe to the customer% 'y using the community support program .B is instituting, arrangements will be made to visit a high school, college campus, or a corporate campus once or twice a month $Cven visit these facilities for special games, tournaments, recruiting events, or corporate open houses&. And, for every cup or baked good sold, a portion is returned to the high school or college. ,t becomes a tremendous, painless way for the institution to gain a financial reward while providing a pleasant and fulfilling benefit to their students or employees. I.*.9 Farket .rends 5early twenty years ago, a trend towards more uni-ue coffees began to develop in the A.#. .here had always been specialty coffee stores, such as Mloria Qeans and others, but people began to buy espresso machines for their homes and offices, and people began to have coffee tastings. .hen espresso bars began to appear and, inevitably, along came #tarbucks ... the -uintessential bastion of the upwardly mobile professional who wanted to take control over how their beverage would taste and smell. Nowever, we have also become more rushed for time during that same period. .hose same consumers who helped push #tarbucks to H*.* billion in global sales are now rushing kids to soccer and basketball games, running to the grocery and trying to get to work on time and back home in time for dinner ... or to get to the ne6t soccer game. Yet, they still have the desire for that refreshing, specially blended coffee each morning.

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Lately, weGve seen the introduction of beverage dispensers at convenience stores that spit out overly:sweet, poorly blended cappuccinos in flavors such as french vanilla or mocha, and consumers are paying as much as HK.++ for these sub:standard beverages. .he market is primed for the introduction of a company that offers a superior -uality, specially blended product in a convenient, drive:thru environment at a price that is competitive to the national coffee houses. I.*.* Farket Mrowth According to industry statistics, the consumption of coffee and flavored coffee products is growing rapidly. .he largest national brand for retail coffee outlets achieved H*.* billion in sales in *+++ with K,+++ retail outlets. .hey are anticipating opening =,+++ more outlets in the ne6t five years and increasing revenues to over H> billion. .hat is the coffee consumer market. .he segment of that market we are targeting is the commuter and that number is increasing. ,n the metropolitan area, as with many metropolitan areas in the country, there is a migration away from the cities. ,t is estimated that there are well over *.2 million commuters driving to and from work each day in our market. #tatistically, at least 2+3 of those are coffee drinkers. .hat gives .he Baily erc a significant daily target for its products. .hose numbers are growing by >3 per year. I.*.K Farket 5eeds .he Anited #tates is a very mobile society. With the introduction of the automobile, we became a nation that thrived on the further freedom of going where we wanted when we wanted. ,t has only gotten worse. .here are over *2+ million men, women and children in America, half of whom are too old, too young, or too poor to drive an automobile. Yet, there are more licensed vehicles in the country than people. And that mobility has created a uni-ue need in our society. Lur market is made up of consumers who have busy schedules, a desire for -uality, and disposable income. As much as they would like the opportunity to sit in an upscale coffee house and sip a uni-uely blended coffee beverage and read the morning paper, they donGt have the time. Nowever, they still have the desire for the uni-uely blended beverage as they hurry through their busy lives. I.K ,ndustry Analysis .he coffee industry has grown by tremendous amounts in the A.#. over the past five years. #tarbucks, the national leader, had revenues in fiscal *+++ of H*.* billion. .hat is an increase of K*3 over )iscal 9<<<. #tarbucks plans to increase revenues to over H>.> billion from 9+,+++ retail outlets by *++2. Cven general coffee sales have increased with international brands such as )olgers, Fa6well Nouse, and #afari coffee reporting higher sales and greater profits. America is definitely a coffee drinking country and the coffee industry is reaping the rewards.

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I.K.9 Bistribution atterns .he cafe e6perience comes from the ,talian origins of espresso. .he customer comes in to a beautifully decorated facility, surrounded by wondrous aromas and finds himself involved in a sensory e6perience that, more often than not, masks an average product at a premium price. Nowever, the proliferation of cafes in the Anited #tates proves the viability of the market. ,t is a duplication of the same delivery process as currently e6ists in Curope. I.K.* 1ompetition and 'uying atterns .here are four general competitors in .he Baily ercGs drive:thru market. .hey are the national specialty beverage chains, such as #tarbucks and anera, local coffee houses::or cafes::with an established clientele and a -uality product, fast food restaurants, and convenience stores. .here is a dramatic distinction among the patrons of each of these outlets. atrons to a #tarbucks, or to one of the local cafes, are looking for the Se6perienceS of the coffee house. .hey want the ability to SdesignS their coffee, smell the fresh pastry, listen to the soothing ,talian music, and read the local paper or visit with an ac-uaintance. ,t is a rela6ing, slow paced environment. atrons of the fast food restaurants or the convenience stores are just the opposite. .hey have no time for idle chatter and are willing to over:pay for whatever beverage the machine can spit out, as long as itGs -uick. .hey pay for their gas and they are back on the road to work. Although they have the desire and good taste to know good from bad, time is more valuable to them. 1ompetitors to the Fobile 1afes on campuses would include fast food restaurants::assuming they are close enough to the consumer that they can get there and back in the minimal allotted time, vending machines, and company or school cafeterias. .he consumers in this environment are looking for a -uick, convenient, fairly priced, -uality refreshment that will allow them to purchase the product and return to work, class, or other activity. 1ompetitors to the Fobile 1afes at events such as festivals and fairs would include all the other vendors who are licensed to sell refreshments. Attendees to such events e6pect to pay a premium price for a -uality product. I.K.K Fain 1ompetitors When measuring head:to:head, direct competitors, we have found that there are none in the metropolitan area. .he Baily erc will be the first double:sided, drive:thru coffee house in the metropolitan area. Nowever, there is still significant competition from traditional coffee houses and other retailers. *ational Chains+ #tarbucks, the national leader, had revenues in fiscal year *+++ of H*.* billion. .hat is an increase of K*3 over fiscal year 9<<<. #tarbucks plans to increase revenues to over H>.> billion from 9+,+++ retail outlets by *++2. anera had revenues of H929 million from corporate owned stores and HK2+ million from franchised locations in fiscal year *+++. .his fiscal year revenue was an increase in *;.<3 on a per store basis versus fiscal year 9<<<.

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.he Baily erc believes it has a significant competitive advantage over these chains because of the following benefits! Brive:thru #ervice Fore #ubstantial 1ustomer #ervice 1ommunity 'enefit Fobile 1afes #election Nigher roduct Tuality

,ocal Cafes+ .he toughest competitor for .he Baily erc is the established locally owned cafe. .B knows the -uality and pride that the local cafe has in the product purchase by their customers. Any local cafe has a customer base that is dedicated and highly educated. .he -uality of beverages served at an established cafe will surpass any of the regional or national chains. .he competitive edge .he Baily erc has on the local cafes is based on the attributes of! Brive:thru #ervice #upply Biscounts Fobile 1afe 1onsistent Fenu 1ommunity 'enefit Tuality roduct

&ri%e"thr' Coffee -o'ses+ .here is not a drive:thru specialty beverage retailer with significant market presence in the central Anited #tates. .he only company with similar depth to that of .he Baily erc is Tuikava, a wholly owned subsidiary of 1hock )ull Go 5uts. Nowever, Tuikava has limited its corporate footprint to the Cast 1oast and the Mreat Lakes 7egion. ,n the drive:thru specialty beverage market, .he Baily erc has a competitive edge over the smaller retailers, and even Tuikava, due to! Fobile 1afes 1onsistent Fenu 1ommunity 'enefit Tuality roduct #upply Biscounts Palued ,mage Mreater roduct #election

.ast .ood and Con%enience Stores+ .hese are two industries where .he Baily erc will e6perience a certain level of competition. .he national fast food chains and national convenience store chains already serve coffee, soda, and some breakfast foods. .he national fast food chains obviously know the benefits and value to customers of drive:thru. .B knows that within the specialty coffee and tea market, the -uality of the products sold will be much greater than what can currently be purchased at fast food and convenience stores. .he addition of domestic soda sales for these stores is a large part of revenue. .B knows the -uality of our products, along with the addition of domestic

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soda and the ease of drive:thru, gives it a competitive edge over fast food and convenience stores. /ther competition+ .he Baily erc knows that once it has entered the market and established a presence, others will try to follow. Nowever, .B believes that the corporate missions and even the organiDational design will be imitated, but never duplicated. .B will constantly evaluate its products, locations, service, and corporate missions to ensure that it remains a leader in the specialty beverage industry. I.K.I ,ndustry articipants .here is only one national Brive:thru coffee franchise operation in the A.#. with any legs, and that is a subsidiary of 1hock )ull Go 5uts called Tuikava. Tuikava operates predominantly on the Cast 1oast and in the Apper Mreat Lakes. .he Cast and West coasts, and even some Fountain and Fidwest states, have smaller local drive:thru chains such as 1affino, Qava Cspress, 1rane 1offee, Qava Brive, #unrise 1offee, and 1affe Biva. Nowever, other players in the premium coffee service industry would include #tarbucks, Mloria QeanGs, 1aribou 1offee, anera and locally owned and operated coffee shops or Scafes.S 2.+ #trategy and ,mplementation #ummary .he Baily erc will penetrate the commuter and captive consumer markets by deploying Brive: thru facilities and Fobile 1afes in the most logical and accessible locations. .he Brive:thrus are designed to handle two:sided traffic and dispense customer:designed, specially ordered cups of specialty beverages in less time than re-uired for a visit to the locally owned cafe or one of the national chains. .he Baily erc has identified its market as busy, mobile people whose time is already at a premium, but desire a refreshing, high -uality beverage or baked item while commuting to or from work or school. ,n addition to providing a -uality product and an e6tensive menu of delicious items, to ensure customer awareness and loyalty, as well as positive public and media support, .he Baily erc could be donating up to =.23 of revenue from each cup sold in individual Brive:thrus to the charities of the customersG choice. 2.9 #trategy yramid .he Baily ercGs strategy is to show people that .B has an e6cellent product, convenient accessibility, and with a community benefit. .o e6ecute on this strategy, .B is placing the Brive:thrus and Fobile 1afes at easily accessible locations throughout the metropolitan area. .B is pricing its product competitively and training the production staff to be among the best 'aristas in the country. .hen, through coupons and display ads at the locations, .B will involve the customers in community support efforts by e6plaining that a portion of their purchase price will be donated to a charity of their choosing. ,n so doing, .B has! 9. *. rovided a customer with a -uality product at a competitive price. rovided the customer with a more convenient method for obtaining their desired product.

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K. Bemonstrated how .B appreciates their loyalty and patronage by donating money to their personal cause. 2.* Palue roposition .he Brive:thru facilities provide a substantial value proposition in that the customer does not have to find a parking place, e6it the vehicle, stand in line to order, wait for the beverages ahead of him to be produced, pay a premium price for average product, find a place to sit, clean up the previous patronGs mess, then enjoy their coffee ... assuming they have sufficient time to linger over the cup. .he Baily erc concept is that the customer drives up, places the order, receives a high -uality product at a competitive price, and drives away, having wasted little time in the process. .he Baily erc is also providing a significant community value to patroniDing .B . )or every purchase a customer makes from us, .B will donate up to =.23 of the sale to the local charity selected by the customer. 2.K 1ompetitive Cdge .he Baily ercGs competitive edge is simple. .B provides a high -uality product at a competitive price in a Brive:thru environment that saves time. 2.I Farketing #trategy )irst and foremost, .he Baily erc will be placing its Brive:thru facilities in locations of very high visibility and great ease of access. .hey will be located on high traffic commuter routes and close to shopping facilities in order to catch customers going to or from work, or while they are out for lunch, or on a shopping e6pedition. .he Brive:thrus are very uni-ue and eye:catching, which will be a branding feature of its own. .he Baily erc will be implementing a low cost advertisingEpromotion campaign which could involve drive:time radio, but not much more. .he Baily erc will rely on building relationships with schools, charities and corporations to provide significant free publicity because of its community support program. 'y giving charitable contributions to these institutions, they will get the word out to their studentsEfacultyEemployeesEpartners about .B . Word of mouth has always proven to be the greatest advertising program a company can instill. ,n addition, the media will be more than willing to promote the charitable aspects of .B and provide the opportunity for more e6posure every time .B writes a check to another organiDation. 2.I.9 romotion #trategy .he long:range goal is to gain enough visibility to leverage the product line into other regions and generate in-uiries from potential inventors. .o do that, .he Baily erc needs! ublic relations services at H9,+++ per month for the ne6t year intended to generate awareness of editors and product information insertions, reviews, etc. ,t is anticipated that the school fundraising program will generate a fair amount of publicity on its own and will, perhaps, minimiDe::or even eliminate::the need for a publicist.

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Advertising at H9,+++ per month concentrating on drive time radio. .he Baily erc will e6periment with different stations, keeping careful track of results. As with the school fundraising program, .B e6pects the facilities and signage to be a substantial portion of our advertising. Nowever, in the start:up phase, .B needs to let people know where to look for the facilities.

2.I.* Bistribution #trategy .he Baily erc will locate Brive:thru facilities in high traffic areas of the city where it knows working commuters will be passing. .he Baily erc will also make arrangements for the Fobile 1afes to be at as many schools, businesses, and events as possible every year, so that new customers, those who come in from areas where .B may not have a Brive:thru facility, can be reached and those who didnGt have the time to stop off that morning at their favorite Baily erc. 2.I.K Farketing rograms &istincti%e ,ogo+ S apoS is a very happy and conspicuous sun. .he sun is one of infinite mental pictures. .he sun touches every human being every day. Lbviously, .B wants to touch every customer every day. .hat is why the use of the sun lends itself to being the corporate identifier. apo is already an awarding winning logo. apo won in the 5ew Artist 1ategory of the *++9 5ot Qust Another Art BirectorGs 1lub $5QAAB1&. &istincti%e B'ildings+ .B is using diner style buildings for its Brive:thru facilities. .B has worked closely with the manufacturer to make the building distinctive, so that it is easy to recogniDe, and functional. The .'nd"raising and Catering Trailer+ .he Fobile 1afe will be a key marketing tool. .he similarities between the Fobile 1afes and the Brive:thru facilities will be unmistakable. .he e6posure these units will provide cannot be measured in dollars. .he Baily erc will negotiate visits with the Fobile Anits at schools, hospitals, corporations and other entities. ,n the case of schools and certain corporations, a portion of all sales made while on their campus could go to a program of their choice. .he organiDation would promote its presence to their constituency and encourage them to fre-uent the Brive:thru establishments so that their charitable cause is nurtured. .his will give those patrons an opportunity to taste the products and become a regular customer of the Brive:thru facilities. .he Fobile 1afes will also be appearing at community events such as fairs, festivals, and other charitable events. Ad%ertising and Promotion+ ,n the first year, .he Baily erc plans to spend moderately on advertising and promotion, with the program beginning in #eptember, after the opening of the first Brive:thru. .his would not be considered a serious advertising budget for any business, but .B feels the e6posure will come from publicity and promotion, so most of the funds will be spent on a good publicist who will get the word out about the charitable contribution program and how it works in conjunction with the website. .B also believes that word:of:mouth advertising and free beverage coupons will be better ways to drive people to the first and second locations. ,n the second year, .he Baily erc is increasing the budget, since it will need to promote several locations, with particular emphasis on announcing these openings and all the other

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locations. .B will continue to use publicity as a key component of the marketing program, since .B could be contributing over H=+,+++ to local schools and charities. ,n the third year, .he Baily erc will double its advertising and promotion budget, with the majority of the advertising budget being spent on drive time radio. As in the previous years, .B will get substantial publicity from the donation of nearly H*++,+++ to local schools and charities. 2.I.I ositioning #tatement )or busy, mobile people whose time is already at a premium, but desire a refreshing, high -uality beverage or baked item while commuting to or from work or school. 2.I.2 ricing #trategy .he Baily erc pricing will be comparable to the competition, but with the value:added feature of immediate, drive:thru service and convenience. 2.2 #ales #trategy .here will be several sales strategies put into place, including posting specials on high:profit items at the drive:up window. .he 'aristas will also hand out free drink coupons to those who have purchased a certain number of cups or something similar. .B will also develop window sales techni-ues such as the 'aristas asking if the customer would like a fresh:baked item with their coffee. 2.2.9 #ales )orecast ,n the first year, .he Baily erc anticipates having two Brive:thru locations in operation. .he first location will open in the third month of this plan and be fully operational beginning on the 9st day of #eptember. .he second Brive:thru will open si6 months later. .B is building in a certain amount of ramp:up for each facility while commuters become familiar with its presence. .he Brive:thrus will generate *;;,+++ tickets in the first year of operation. ,n the second year, .he Baily erc will add two more Brive:thrus and, in the third year, .B will add an additional nine Brive:thru facilities. .he addition of these facilities will increase the revenue from Brive:thrus with a total of over 9,+++,+++ tickets in the second year and *,>=2,+++ tickets in the third. ,n addition to the Brive:thrus, .he Baily erc will deploy one mobile unit in the fourth -uarter of the first fiscal year. .B e6pects this mobile unit to generate 9+,+++ tickets each, at an average ticket price of H*.I2. ,n the second -uarter of the second fiscal year, .he Baily erc will deploy a second and third mobile unit. .B e6pects all three mobile units to generate 92+,+++ tickets in the second year. ,n the third fiscal year, with an additional fourth mobile unit deployed, .B e6pects to see *>I,+++ mobile unit tickets. .he Baily erc is also showing revenue from the commerce portion of our website, where it will sell S.he Baily ercS t:shirts, sweatshirts, insulated coffee mugs, pre:packaged coffee beans, and other premium items. .B is not e6pecting this to be a significant profit center, but it is an integral part of the marketing plan :: as a function of developing our brand and building product

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awareness. .B e6pects revenues from this portion, to begin in the second fiscal year, to reach as much as HK,+++ per month in the third fiscal year. .otal first year unit sales should reach *<;,I+*. .he second year will see unit sales increase to 9,9==,I++. .he third year, with the addition of such a significant number of outlets, we will see unit sales increase to *,<<*,+++.

1hart! #ales Fonthly

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1hart! #ales by Year

.able! #ales )orecast

Sales Forecast ;ear * Anit Sales Dri e-t!ru B* Dri e-t!ru B+ Dri e-t!ru B3 Dri e-t!ru B4 Dri e-t!ru B5 Dri e-t!rus B% 2 B. Dri e-t!rus B,, B9, 2 B*0 Dri e-t!rus B**, B*+, 2 B*3 C#"ile 7afe B* C#"ile 7afe B+ C#"ile 7afe B3 C#"ile 7afe B4 1e"site Sales5(remium 4tems 6#tal Anit Sales Anit (rices Dri e-t!ru B* Dri e-t!ru B+ Dri e-t!ru B3 Dri e-t!ru B4 Dri e-t!ru B5 Dri e-t!rus B% 2 B. Dri e-t!rus B,, B9, 2 B*0 Dri e-t!rus B**, B*+, 2 B*3 C#"ile 7afe B* C#"ile 7afe B+ C#"ile 7afe B3 C#"ile 7afe B4 1e"site Sales5(remium 4tems Sales Dri e-t!ru B* Dri e-t!ru B+ $3.5,3,9 $*5,,*54 $5.0,000 $5.0,000 $%33,.50 $%33,.50 +0+,9*3 ,5,4,9 0 0 0 0 0 0 *0,000 0 0 0 0 +9,,40+ ;ear * $*>,5 $*>,5 $0>00 $0>00 $0>00 $0>00 $0>00 $0>00 $+>45 $0>00 $0>00 $0>00 $0>00 300,000 300,000 +.5,000 *50,000 0 0 0 0 %0,000 45,000 45,000 0 +,400 *,*..,400 ;ear + $*>90 $*>90 $*>90 $*>90 $*>90 $*>90 $*>90 $*>90 $+>50 $+>50 $+>50 $+>50 $**>00 3+5,000 3+5,000 3+5,000 3+5,000 300,000 450,000 450,000 ++5,000 %%,000 %%,000 %%,000 %%,000 3,000 +,99+,000 ;ear 3 $*>95 $*>95 $*>95 $*>95 $*>95 $*>95 $*>95 $*>95 $+>55 $+>55 $+>55 $+>55 $*+>00 ;ear + ;ear 3

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Dri e-t!ru B3 Dri e-t!ru B4 Dri e-t!ru B5 Dri e-t!rus B% 2 B. Dri e-t!rus B,, B9, 2 B*0 Dri e-t!rus B**, B*+, 2 B*3 C#"ile 7afe B* C#"ile 7afe B+ C#"ile 7afe B3 C#"ile 7afe B4 1e"site Sales5(remium 4tems 6#tal Sales Direct Anit 7#sts Dri e-t!ru B* Dri e-t!ru B+ Dri e-t!ru B3 Dri e-t!ru B4 Dri e-t!ru B5 Dri e-t!rus B% 2 B. Dri e-t!rus B,, B9, 2 B*0 Dri e-t!rus B**, B*+, 2 B*3 C#"ile 7afe B* C#"ile 7afe B+ C#"ile 7afe B3 C#"ile 7afe B4 1e"site Sales5(remium 4tems Direct 7#st #f Sales Dri e-t!ru B* Dri e-t!ru B+ Dri e-t!ru B3 Dri e-t!ru B4 Dri e-t!ru B5 Dri e-t!rus B% 2 B. Dri e-t!rus B,, B9, 2 B*0 Dri e-t!rus B**, B*+, 2 B*3 C#"ile 7afe B* C#"ile 7afe B+ C#"ile 7afe B3 C#"ile 7afe B4 1e"site Sales5(remium 4tems Subtotal Direct Cost of Sales

$0 $0 $0 $0 $0 $0 $+4,500 $0 $0 $0 $0 $55,,043 ;ear * $0>%4 $0>%4 $0>00 $0>00 $0>00 $0>00 $0>00 $0>00 $0>%4 $0>00 $0>00 $0>00 $0>00

$5++,500 $+,5,000 $0 $0 $0 $0 $*50,000 $**+,500 $**+,500 $0 $+%,400 $+,34,,900 ;ear + $0>%* $0>%* $0>%* $0>%* $0>%* $0>%* $0>%* $0>%* $0>%* $0>%* $0>%* $0>%* $%>50

$%33,.50 $%33,.50 $5,5,000 $,..,500 $,..,500 $43,,.50 $*%,,300 $*%,,300 $*%,,300 $*%,,300 $3%,000 $%,0++,950 ;ear 3 $0>59 $0>59 $0>59 $0>59 $0>59 $0>59 $0>59 $0>59 $0>59 $0>59 $0>59 $0>59 $%>50

$*+9,,%4 $54,.*3 $0 $0 $0 $0 $0 $0 $%,400 $0 $0 $0 $0 $*90,9..

$*,3,000 $*,3,000 $*%.,.50 $9*,500 $0 $0 $0 $0 $3%,%00 $+.,450 $+.,450 $0 $*5,%00 $.3+,350

$*9*,.50 $*9*,.50 $*9*,.50 $*9*,.50 $*..,000 $+%5,500 $+%5,500 $*3+,.50 $3,,940 $3,,940 $3,,940 $3,,940 $*9,500 $*,.,3,0*0

2.2.* #ales rograms Corporate Tasting )%ents : .B plans to host tasting events for customers on a -uarterly basis. Cach -uarter, at the introduction of each season, .B will be adjusting its menu to reflect the changes in the flavors served. &rink Co'pons : At fundraising events for schools and corporate events, we will be giving away drink coupons as door priDes or awards. .his encourages the person to come in for their free beverage and bring a friend or buy a baked item or a package of our premium coffee. .he Brive .hru units will also be distributing coupons for special menu items or new product introductions. Cham0er of Commerce and Professional (em0erships : 'ecause of the need to sell the Fobile 1afe services, .B will be an active participant in the 7egional 1hamber, local 1hambers of 1ommerce, )ood #ervice Associations, and #pecialty 'everage Associations. .he e6posure and education that these organiDations provide is outstanding, but e-ually important are the contacts and opportunities made available for deploying a Fobile 1afe::or even two::at a special event.

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2.> #trategic Alliances .he Baily erc has and will continue to depend heavily on our alliance with QGs 1offees, as well as our alliances with the Fobile 1afe and Brive:thru facility manufacturers and consumable products providers. Nowever, we will always be looking for better -uality products, more favorable pricing, or more timely delivery from other potential alliances. We also consider the schools, non:profit organiDations, and even corporations who host one of our Fobile 1afes as a strategic alliances, since they are providing e6posure to our products and we are providing them a financial benefit. 2.= Filestones .he Filestone table reflects critical dates for occupying head-uarters, launching the first Brive: thru and subse-uent Brive:thrus, as well as deployment of the mobile units. .he Baily erc also defines our break:even month, our website launch and subse-uent visitor interaction function, and other key markers that will help us measure our success in time and accomplishment. .able! Filestones

Milestones Cilest#ne Lig!t 1e"site Open 'irst Dri e-t!ru 'irst 9reaD-e en C#nt! Open Sec#n- Dri e-t!ru Recei e 'irst C#"ile Anit Launc! 1e"site /#ting Open 6!ir- Dri e-t!ru Recei e Sec#n- an- 6!ir- C#"ile Anits Open '#urt! Dri e-t!ru 4nstall (#int-#f-Sale S)stem Occup) 3ea-quarters Open 'ift! Dri e-t!ru Recei e '#urt! C#"ile Anit Open Dri e-t!rus % an- . Open Dri e-t!rus ,, 9 an- *0 Open Dri e-t!rus **, *+, an- *3 Expan- t# ?ansas 7it) Open 'irst 'ranc!ise 4nitiate Exit Strateg) Totals Start Date %5*5+00* .5*55+00* *+5*5+00* *+5*55+00* 35*5+00+ 55*5+00+ 45*55+00+ .5*55+00+ *+5*55+00+ *+5*5+00+ 45*5+003 45*55+003 45*55+003 .5*55+003 *05*55+003 *5*55+004 *5*55+004 *053*5+003 *05*5+004 En- Date ,5*55+00* ,53*5+00* *+53*5+00* +5*5+00+ 35305+00+ %5*5+00+ %5*5+00+ 95*5+00+ +5*5+003 +5*5+003 55*55+003 %5*5+003 %5*5+003 95*55+003 *+5*55+003 35*5+004 %5*5+004 95*5+004 *5*5+005 9u-get $5,%00 $*05,400 $0 $*05,400 $,%,450 $*+,500 $*05,400 $*.+,900 $*05,400 $+*,000 $45,000 $*05,400 $,%,450 $+*0,,00 $3*%,+00 $3*%,+00 $*.%,943 $45,000 $*00,000 $+,*++,043 Canager 7OO 7OO 7OO 7OO 7OO 7OO 7OO 7OO 7OO 74O 7OO 7OO Equip> 7OO5Dir> 7OO5Dir> 7OO 7OO 7'O 7'O Department CDtg> 0-min> 'inance 0-min> 0-min> CDtg> 0-min> 0-min> 0-min> C4S 0-min> 0-min> 0-min> Cgnt> Cgnt> 0-min> Cgnt> 'inance Cgnt>

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1hart! Filestones

>.+ Fanagement #ummary .he Baily erc is a relatively flat organiDation. Lverhead for management will be kept to a minimum and all senior managers will be Shands:onS workers. .here is no intention of having a top:heavy organiDation that drains profits and complicates decisions. At the Denith of this three:year plan, there will be four SC6ecutiveS positions! chief operating officer, chief financial officer, chief information officer, and director of marketing. .here will be other mid:management positions, such as district managers for every four Brive:thrus, and a facilities manager to oversee the maintenance and stocking of the Fobile 1afes, as well as overseeing the maintenance and replacement of e-uipment in the Brive:thru facilities. >.9 Fanagement .eam .he Baily erc has selected Fr. 'arton )isher to perform the duties of chief operating officer. 'art has a highly entrepreneurial spirit and has already started a company from scratch $5et1om #ervices, ,nc.& that ran in the black within three months of inception, and paid off all initial debt within si6 months. Apon leaving 5#, in April *++9, the company had again paid off all debt and was running a profit monthly. 1ombine his e6perience, leadership, and desire with three years of research in speciality drinks and drive:thru service, and .B knows that 'art is the individual who will get the company out of the gate and up to full speed for a long time to come. Fs. Fary Qamison has been selected to fulfill the position of bookkeeper and office manager. Fary has been the business administrator of Qones ,nternational, ,nc. for the past four years. Qones is a HI million company that retails vitamins and other betterment products. Lver those four years, Fary has written numerous corporate policies and directed the financial reporting and reconciliation. .he Baily erc considers Fary to be a great addition to the team when she becomes available in 5ovember of *++9. Antil that time, she will be working with Fr. )isher on a part:time basis to help establish the corporate accounts and policies.

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Fr. .ony Muy has been selected to perform the duties of corporate events coordinator on a part time basis. Fr. Muy has over five years in the business:to:business sales realm. Last year he was responsible for over H*2+,+++ in sales of promotional material to corporate and educational clients. Fr. 1huck Fc5ulty has been selected to fulfill the position of warehouseEtrailer manager. 1huck has been working for 5abisco, ,nc. as a service representative for over ten years. Nis e6perience in account services, merchandising, and inventory control is a welcome addition to .he Baily erc team. 1huck will use his knowledge in conjunction with the rest of the team to establish inventory and warehouse policies. .he warehouse manager is responsible for inventory of all products sold by .he Baily erc. #ome merchandising e6perience is a welcome addition. .raining in the )irst ,n )irst Lut $),)L& style of inventory control is a re-uirement. Also, knowledge of ergonomics and health issues would be important. 1huckGs domain will be the head-uarters, the trailers, and the drive:thrus::ensuring that minimum and ma6imum inventories are maintained. Working with the mobile and drive:thru 'aristas will be integral to his task as well. >.* Fanagement .eam Maps .he Baily erc knows that it is going to re-uire several -uality management team members over the ne6t three years, beginning with a district manager for every four Brive:thrus. .his person will oversee the -uality of product, the training of the 'aristas, the inventory management, and customer satisfaction. ,deally, as .he Baily erc grows, it will be able to promote from within for this position. .his individual will be responsible for the operation of up to four drive:thrus under hisEher management. .hey will be re-uired to visit between locations and possibly even join administrative personnel on training or marketing travel. 1learly, as the need arises, these individuals will ideally be selected from the Fobile 1afe or Brive:.hru team. 'y the beginning of the third year, .he Baily erc will hire three key senior managers. .hey are! a chief financial officer, a chief information officer, and a director of marketing. .he role of each of these individuals will be discussed in subse-uent sections of this plan. >.K LrganiDational #tructure .he organiDation will be a relatively flat one, since the majority of personnel are involved in production and there will be a relatively low headcount in management. .here are three functioning groups within the company! roduction, #ales and Farketing, and Meneral and Administrative. )or purposes of this plan::and to show the details of adding senior level management::.he Baily erc has broken management down as a separate segment, but it is an integral part of the Meneral and Administrative function. roduction involves the 'aristas, or 1ustomer #ervice #pecialists, who will be manning the Brive:thrus and Fobile 1afes and blending the beverages for the customers. #ales and Farketing will handle the promotion and scheduling of the Fobile 1afes, as well as the promotion of the Brive:thrus and the 1ommunity 1ontribution program. Meneral and Administrative manage the facilities, e-uipment, inventory, payroll, and other basic, operational processes.

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>.I ersonnel lan .he Baily erc e6pects the first year to be rather lean, since there will only be two locations and one mobile unit::none of which will be deployed for the entire year. .he total headcount for the first year, including management, administrative support, and customer service $production&, will be 92, with a payroll and payroll burden total e6penditure as shown in the following table and in the monthly breakdowns appendices. .he second year, with the addition of two Brive:thrus and two mobile units, .he Baily erc will add customer service personnel, as well as a district manager and some additional support staff at head-uarters, including an ,nventory 1lerk, C-uipment .echnician, and administrative support. .he headcount will increase by nearly 9++3 in the second year to *<, with a proportionale increase in payroll of and payroll burden. .he third year will see the most dramatic growth in headcount, due to the addition of nine Brive:thrus and another mobile unit. ,n the third year, there will also be an increase of 9;+3 over the previous year. .otal payroll and payroll burden for the third year will reflect this, as well as the significant increase in the senior management team, with the addition of a chief financial officer, a chief information officer, and a director of marketing. .here will also be a second and third district manager, and a corporate events sales e6ecutive. .otal personnel will reach ;9. .he chief financial officer will be brought on to oversee the increase in numbers of retail outlets and to manage a dramatically more detailed RL statement and to manage the 'alance #heet. .he chief information officer will be brought in to help us with the deployment of a oint:of:#ale computeriDed cash register system that will make tracking and managing receipts and charitable contributions more robust. ,deally, this individual will have a large amount of point of sale and ,nternet e6perience. #pecifically, how to tie in L# systems to the ,nternet and inventory controls. Also, knowledge in establishing technology guidelines for the company and franchisees in the future. .his individual will also be added in fiscal year three. .he director of marketing will be charged with managing the relationships with advertising agencies, public relations firms, the media, and our website. .able! ersonnel

Personnel Plan ;ear * (r#-ucti#n (ers#nnel Dri e-t!ru 6eam C#"ile 7afe 6eam Equipment 7are Specialist $3ea-quarters& Ot!er Su"t#tal Sales an- CarDeting (ers#nnel District Canager $'#ur Dri e-t!rus& 7#rp#rate E ents Sales Exec Direct#r #f CarDeting Ot!er Su"t#tal <eneral an- 0-ministrati e (ers#nnel 9##DDeeper5Office 0-ministrat#r 1are!#use5Site Canager $+4,500 $.,000 $4%,000 $4+,000 $54,000 $4,,000 $0 $0 $0 $0 $0 $++,000 $0 $0 $0 $++,000 $..,000 $3%,000 $.+,000 $0 $*,5,000 $*35,4.4 $9,400 $0 $0 $*44,,.4 $439,+50 $*.+,,00 $++,000 $*+,000 $%4%,050 $*,09,,%50 $++5,%00 $..,000 $+4,000 $*,4+5,+50 ;ear + ;ear 3

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T e .aily Perc

4n ent#r) 7lerD Ot!er Su"t#tal Ot!er (ers#nnel 7!ief Operating Officer 7!ief 'inancial Officer 7!ief 4nf#rmati#n Officer Ot!er Su"t#tal 6#tal (e#ple Total Payroll

$0 $0 $3*,500

$*+,000 $%,000 $*0%,000

$4+,000 $*+,000 $*5%,000

$%%,000 $0 $0 $0 $%%,000 *5 $+4+,3.4

$.+,000 $0 $0 $0 $.+,000 +9 $,4%,050

$.,,000 $9%,000 $,4,000 $0 $+5,,000 ,* $+,0+4,+50

=.+ )inancial lan .he Baily ercGs financial picture is -uite promising. #ince .B is operating a cash business, the initial cost is significantly less than many start:ups these days. .he process is labor intensive and .B recogniDes that a higher level of talent is re-uired. .he financial investment in its employees will be one of the greatest differentiators between it and .B Gs competition. )or the purpose of this pro:forma plan, the facilities and e-uipment are financed. .hese items are capital e6penditures and will be available for financing. .here will be a minimum of inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. .he Baily erc anticipates the initial combination of investments and long:term financing to carry it without the need for any additional e-uity or debt investment, beyond the purchase of e-uipment or facilities. .his will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially sound growth based on customer re-uest and product demand.

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T e .aily Perc

=.9 ,mportant Assumptions .he financial plan depends on important assumptions, most of which are shown in the following table. .he key underlying assumptions are! .he Baily erc assumes a slow:growth economy, without major recession. .he Baily erc assumes of course that there are no unforeseen changes in public health perceptions of its general products. .he Baily erc assumes access to e-uity capital and financing sufficient to maintain its financial plan as shown in the tables.

.able! Meneral Assumptions

General Assumptions ;ear * (lan C#nt! 7urrent 4nterest Rate L#ng-term 4nterest Rate 6ax Rate Other * *0>00= 9>00= 0>00= 0 ;ear + + *0>00= 9>00= 0>00= 0 ;ear 3 3 *0>00= 9>00= 0>00= 0

=.* Jey )inancial ,ndicators .he following chart shows changes in key financial indicators! sales, gross margin, operating e6penses, collection days, and inventory turnover. .he growth in sales e6ceeds *2+3 each year. .B e6pects to keep gross margin above the K;3 projected for the first year, but it doesnGt anticipate anything higher than I>3, since our payroll e6penses will increase substantially as it grows into new areas and faces new competition. .he projections for inventory turnover show that .B will maintain a relatively stable amount of inventory in its head-uarters warehouse so that it has no less than two weeks of inventory on hand, but no more than three weeks, in order to keep products fresh. .he only time it would consider holding larger stores of inventory is if there was some catastrophic event that could cause a dramatic rise in the price of its coffees or teas.

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1hart! 'enchmarks

=.K 'reak:even Analysis .o arrive at the average monthly fi6ed costs, .he Baily erc calculated the fi6ed costs for the Brive:thru. Asing the average price per unit, less the average cost per unit, divided into the fi6ed costs of operation, .B concludes that we will need to sell at least the number of units shown in the following table and chart to reach break:even each month. .able! 'reak:even Analysis

Break-even Analysis C#nt!l) Anits 9reaD-e en C#nt!l) Re enue 9reaD-e en 0ssumpti#nsE 0 erage (er-Anit Re enue 0 erage (er-Anit /aria"le 7#st Estimated Monthly Fixed Cost $*>,. $0>%4 $*9,45. *5,,*. $+9,5,0

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T e .aily Perc

1hart! 'reak:even Analysis

=.I rojected rofit and Loss .he Baily erc is e6pecting some dramatic growth in the ne6t three years, reaching healthy sales and Mross rofit Fargin by the end of the first year. C6penses during the first year will, however leave a 5et After:ta6 loss. .his loss will provide .B with a ta6 loss carry:forward for the second year. Aside from production costs of >+3, which include actual production of product and commissions for sales efforts, the single largest e6penditures in the first year are in the general and administrative $MRA& area, totaling *K3 of sales. MRA includes e6penses for rents, e-uipment leases, utilities, and the payroll burden for all employees. #ales increase by nearly I++3 in the second year, due to the addition of two more Brive:thrus and two more Fobile 1afes. Although operating e6penses double in the second year, .he Baily erc will be able to realiDe a 5et After:ta6 profit. ,n that same year, .B will make substantial charitable contributions. .he third year is when .he Baily erc has the opportunity to break into markets outside the metropolitan area. .B will see nine additional Brive:thru facilities open in the third year, which will drive sales, increase in production costs, and help improve Mross rofit Fargin. #everal e6penses take substantial jumps this year::advertising increases and donations increase as well::and .B will be adding several key management team members. .hese increases, as well as those for increased e-uipment leases and rents, raise our operating e6penses, leaving a respectable 5et After:ta6 profit. .he single largest e6pense sector in the third year, outside of production, is still MRA costs, but it is down from *K3 in the first year and 9;.23 in the second year to just 92.+*3.

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T e .aily Perc

1hart! Mross Fargin Yearly

.able! rofit and Loss

Pro Forma Profit and Loss ;ear * Sales Direct 7#st #f Sales (r#-ucti#n (a)r#ll Sales 7#mmissi#ns 6#tal 7#st #f Sales <r#ss Cargin <r#ss Cargin = Operating Expenses Sales an- CarDeting Expenses Sales an- CarDeting (a)r#ll 0- ertising5(r#m#ti#n 1e"site 6ra el D#nati#ns 6#tal Sales an- CarDeting Expenses Sales an- CarDeting = <eneral an- 0-ministrati e Expenses <eneral an- 0-ministrati e (a)r#ll Sales an- CarDeting an- Ot!er Expenses Depreciati#n Lease- Offices an- Equipment Atilities 4nsurance Rent (a)r#ll 6axes Ot!er <eneral an- 0-ministrati e Expenses 6#tal <eneral an- 0-ministrati e Expenses <eneral an- 0-ministrati e = $3*,500 $0 $+*,.,5 $0 $9,%40 $*+,5.0 $*%,,00 $3%,35% $0 $*+,,%5* +3>05= $*0%,000 $0 $9+,9*0 $%,000 $*9,,00 $3+,%+0 $50,400 $*+%,90, $0 $434,%3, *,>50= $*5%,000 $0 $*9%,095 $*,,000 $4*,*00 $%3,9*0 $*+%,000 $303,%3, $0 $904,.43 *5>0+= $0 $*,,000 $*,000 $4,000 $3,33+ $+%,33+ 4>.+= $++,000 $3%,000 $*5,000 $.,500 $.0,4%. $*50,9%. %>43= $*,5,000 $.+,000 $++,000 $*5,000 $*,0,%,9 $4.4,%,9 .>,,= $55,,043 $*90,9.. $*44,,.4 $*,4*% $33.,+%. $++0,..% 39>5%= ;ear + $+,34,,900 $.3+,350 $%4%,050 $35,+34 $*,4*3,%34 $935,+%. 39>,+= ;ear 3 $%,0++,950 $*,.,3,0*0 $*,4+5,+50 $90,344 $3,+9,,%04 $+,.+4,34% 45>+3=

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T e .aily Perc

Ot!er ExpensesE Ot!er (a)r#ll 7#nsultants Legal50cc#unting57#nsultants 6#tal Ot!er Expenses Ot!er = 6#tal Operating Expenses (r#fit 9ef#re 4nterest an- 6axes E946D0 4nterest Expense 6axes 4ncurre8et (r#fit et Profit!Sales $%%,000 $0 $*+,500 $.,,500 *4>0.= $+33,4,3 $$*+,.0.& $9,0., $*%,*%5 $0 $$+,,,.+& -5>*.= $.+,000 $0 $+4,000 $9%,000 4>09= $%,*,%05 $+53,%%+ $34%,5.+ $3%,%39 $0 $+*.,0+3 9>+4= $+5,,000 $0 $3%,000 $+94,000 4>,,= $*,%.3,43* $*,050,9*5 $*,+4.,0*0 $..,*0+ $0 $9.3,,*+ *%>*.=

1hart! rofit Fonthly

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T e .aily Perc

1hart! rofit Yearly

1hart! Mross Fargin Fonthly

=.2 rojected 1ash )low 1ash flow will have to be carefully monitored, as in any business, but .he Baily erc is also the beneficiary of operating a cash business. After the initial investment and start:up costs are

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T e .aily Perc

covered, the business will become relatively self:sustaining. With the e6ception of seasonal dips, which .B has attempted to account for, through changes in the menu items. Assuming an initial investment and financing, which would include operating capital, .he Baily erc anticipates no cash flow shortfalls for the first year or beyond. Farch and Fay are the greatest cash drains, since .B will be e6periencing the cost of second drive thru and mobile unit start:up. Again, .B sees heavier than normal drains of cash in Becember and Qanuary, as there will be certain accounts payable coming due. .able! 1ash )low

Pro Forma Cash Flo ;ear * 7as! Recei e7as! fr#m Operati#ns 7as! Sales Su"t#tal 7as! fr#m Operati#ns 0--iti#nal 7as! Recei eSales 6ax, /06, 3S65<S6 Recei e8e: 7urrent 9#rr#:ing 8e: Ot!er Lia"ilities $interest-free& 8e: L#ng-term Lia"ilities Sales #f Ot!er 7urrent 0ssets Sales #f L#ng-term 0ssets 8e: 4n estment Recei eSu"t#tal 7as! Recei eExpen-itures Expen-itures fr#m Operati#ns 7as! Spen-ing 9ill (a)ments Su"t#tal Spent #n Operati#ns 0--iti#nal 7as! Spent Sales 6ax, /06, 3S65<S6 (ai- Out (rincipal Repa)ment #f 7urrent 9#rr#:ing Ot!er Lia"ilities (rincipal Repa)ment L#ng-term Lia"ilities (rincipal Repa)ment (urc!ase Ot!er 7urrent 0ssets (urc!ase L#ng-term 0ssets Di i-en-s Su"t#tal 7as! Spent 8et 7as! 'l#: Cash "alance $0 $*,500 $0 $+%,4%9 $0 $*9*,,50 $0 $.35,3,4 $4,*++ $+9,%++ $0 $+,000 $0 $+.,000 $0 $4+9,.00 $0 $+,540,,*9 $%+,05* $9*,%.3 $0 $5,000 $0 $50,000 $0 $*,35%,993 $0 $%,3*%,30* $43%,%4* $5+,,3*5 $+4+,3.4 $+.3,*9* $5*5,5%5 $,4%,050 $*,+3%,0%9 $+,0,+,**9 $+,0+4,+50 $+,,,0,05, $4,904,30, $0 $0 $0 $*,*,4%3 $0 $0 $0 $.39,50% ;ear * $0 $0 $0 $+53,9.0 $0 $0 $0 $+,%0+,,.0 ;ear + $0 $0 $0 $.+9,99+ $0 $0 $0 $%,.5+,94+ ;ear 3 $55,,043 $55,,043 $+,34,,900 $+,34,,900 $%,0++,950 $%,0++,950 ;ear + ;ear 3

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T e .aily Perc

1hart! 1ash

=.> rojected 'alance #heet .he Baily ercGs projected balance sheet shows an increase in net worth in *++I, at which point it e6pects to be making 99.<>3 after:ta6 profit on sales. With the present financial projections, .B e6pects to build a company with strong profit potential, and a solid balance sheet that will be asset heavy and flush with cash at the end of the third year. .he Baily erc has no intention of paying out dividends before the end of the third year, using the e6cess cash for continued growth. .able! 'alance #heet

Pro Forma Balance Sheet ;ear * 0ssets 7urrent 0ssets 7as! 4n ent#r) Ot!er 7urrent 0ssets 6#tal 7urrent 0ssets L#ng-term 0ssets L#ng-term 0ssets 0ccumulate- Depreciati#n 6#tal L#ng-term 0ssets 6#tal 0ssets Lia"ilities an- 7apital 7urrent Lia"ilities 0cc#unts (a)a"le 7urrent 9#rr#:ing $49,.+4 $.,500 $*0%,+40 $5,500 $+4,,40+ $500 $3+3,+50 $+*,.,5 $30*,4%5 $3%%,+4% ;ear * $.5+,950 $**4,%95 $%3,,+55 $,%4,.54 ;ear + $+,*09,943 $3*0,.90 $*,.99,*53 $+,%55,.+* ;ear 3 $+9,%++ $35,*59 $0 $%4,.,* $9*,%.3 $*34,,+% $0 $++%,499 $5+,,3*5 $3+,,+53 $0 $,5%,5%, ;ear + ;ear 3

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T e .aily Perc

Ot!er 7urrent Lia"ilities Su"t#tal 7urrent Lia"ilities L#ng-term Lia"ilities 6#tal Lia"ilities (ai--in 7apital Retaine- Earnings Earnings 6#tal 7apital 6#tal Lia"ilities an- 7apital et #orth

$0 $5.,++4 $+,%,394 $343,%*, $++5,+.0 $$*.3,..0& $$+,,,.+& $++,%+, $3%%,+4% $++,%+,

$0 $***,.40 $5*3,3%4 $%+5,*04 $++5,+.0 $$+0+,%4+& $+*.,0+3 $+39,%5* $,%4,.54 $+39,%5*

$0 $+4,,90+ $*,*93,35% $*,44+,+5, $++5,+.0 $*4,3,* $9.3,,*+ $*,+*3,4%3 $+,%55,.+* $*,+*3,4%3

=.= 'usiness 7atios #tandard business ratios are included in the following table. .he ratios show a plan for balanced, healthy growth. .he Baily ercGs position within the industry is typical for a heavy growth startup company. ,ndustry profile ratios based on the #tandard ,ndustrial 1lassification $#,1& code 2;9*, Cating laces, are shown for comparison. 1omparing the ratios in the third year with the industry, this pro:forma plan appears to be within an acceptable difference margin. .B Gs return on net worth and net worth number differ from the ,ndustry rofile due to the lack of overhead when compared to a typical walk:in cafe. .he Brive .hru and Fobile business model is lean thus allowing for increase return ratio and providing a lower 5et Worth. .able! 7atios

!atio Analysis ;ear * Sales <r#:t! (ercent #f 6#tal 0ssets 4n ent#r) Ot!er 7urrent 0ssets 6#tal 7urrent 0ssets L#ng-term 0ssets 6#tal 0ssets 7urrent Lia"ilities L#ng-term Lia"ilities 6#tal Lia"ilities 8et 1#rt! (ercent #f Sales Sales <r#ss Cargin Selling, <eneral 2 0-ministrati e Expenses 0- ertising Expenses (r#fit 9ef#re 4nterest an- 6axes Cain Rati#s 7urrent FuicD 6#tal De"t t# 6#tal 0ssets (re-tax Return #n 8et 1#rt! (re-tax Return #n 0ssets *>*3 0>5+ 93>,+= -*+.>%0= -.>,,= +>03 0>,+ .+>+9= 90>5%= +5>*0= 3>44 +>*+ 54>3*= ,0>+5= 3%>%.= 0>9, 0>%5 %*>+0= *>.0= 4>30= *00>00= 39>5%= 44>.4= 3>+3= -+>+,= *00>00= 39>,+= 30>%3= *>53= *0>,0= *00>00= 45>+3= +9>*5= *>+0= *.>45= *00>00= %0>50= 39>,0= 3>+0= 0>.0= 9>%0= 0>00= *.>%9= ,+>3*= *00>00= *5>%+= .,>+0= 93>,+= %>*,= *5>59= 0>00= +%>*9= .3>,*= *00>00= *+>9+= 59>3.= .+>+9= +.>.*= *+>3%= 0>00= 3+>+5= %.>.5= *00>00= 9>3.= 44>94= 54>3*= 45>%9= 3>%0= 35>%0= 43>.0= 5%>30= *00>00= 3+>.0= +,>50= %*>+0= 3,>,0= n>a> ;ear + 3+0>9+= ;ear 3 *5%>4+= 4n-ustr) (r#file .>%0=

Page ##

T e .aily Perc

0--iti#nal Rati#s 8et (r#fit Cargin Return #n Equit) 0cti it) Rati#s 4n ent#r) 6urn# er 0cc#unts (a)a"le 6urn# er (a)ment Da)s 6#tal 0sset 6urn# er De"t Rati#s De"t t# 8et 1#rt! 7urrent Lia"> t# Lia"> Liqui-it) Rati#s 8et 1#rDing 7apital 4nterest 7# erage 0--iti#nal Rati#s 0ssets t# Sales 7urrent De"t56#tal 0ssets 0ci- 6est Sales58et 1#rt! Di$idend Payout

;ear * -5>*.= -*+.>%0=

;ear + 9>+4= 90>5%=

;ear 3 *%>*.= ,0>+5= n>a n>a

.>0+ %>49 +. *>5+

,>%+ *+>*. ++ +>.+

.>.0 *+>*. +* +>+.

n>a n>a n>a n>a

*5>*9 0>*.

+>%* 0>*,

*>*9 0>*.

n>a n>a

$.,55. -0>.9

$**4,.%0 %>9+

$%0.,%%% *3>%3

n>a n>a

0>%% *%= 0>5+ +4>%% 0>00

0>3. *3= 0>,+ 9>,0 0>00

0>44 9= +>*+ 4>9% 0>00

n>a n>a n>a n>a n>a

=.; C6it #trategy .here are three scenarios for the investors and management to recover their investment::two with significant returns on each dollar invested. Scenario /ne+ .he Baily erc becomes e6tremely successful and has re-uests from other communities for Baily erc operations to be opened there. .his opens the door for franchising opportunity. When one looks at the wealth that has been created by the likes of FcBonaldGs, WendyGs, Jentucky )ried 1hicken, 'urger Jing, and .aco 'ell, the value of franchising a great idea cannot be dismissed. Nowever, developing a franchise can be e6tremely costly, take years to develop, and be destroyed by one or two franchisees who fail to deliver the consistency or value on which the founding company had built its reputation. Scenario Two+ .he Baily erc chooses to become the Brive:thru version of #tarbucks, obtaining several million dollars through an initial public or private offering that would allow the company to open twenty to thirty facilities per year in the region of the country between the mountain ranges, in both major and small metropolitan communities. .his is the preferred C6it #trategy of the Fanagement .eam. .he danger in this is that competitors would rise up and establish a foothold on a community before::or in the midst of::the arrival of .he Baily erc, causing a potential for a drain on revenues and a dramatic increase in advertising e6penditures to maintain market share. Jnowing these risks::and planning for them::gives .B the edge needed to make this scenario work. Scenario Three+ 'y the third year, the growth and community support for .he Baily erc will have made the news in more than just the metropolitan area. ,t can be assumed that competitors, such as #tarbucks or Tuikava, will have seen the press and realiDed the value proposition in .he Baily ercGs business plan. .his will make .B an attractive target for buyout. .he company could be purchased by a much larger competitive concern by the end of the third year.

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.aking a conservative approach to valuation and estimating that .he Baily erc would be valued at H=.2 million, and assuming that all *2+ units of ownership in .B are distributed to investors, a cash purchase of .B would net each unit HK+,+++. With each unit selling at HI,*2+, that constitutes a 7eturn on ,nvestment of =+23 over the three years. Nowever, any buyout will most likely involve a cashEstock combination. A cashEstock buyout would be favorable, since the buying company would pay a higher price and the transaction would not have such severe ta6 conse-uences to the sellers. Concl'sion+ Lf the three scenarios, the management team prefers #cenario U*. .he same numbers would relate to a public or private offering as are used in #cenario UK, but to make an offering available, there would be a dilution of shares that would provide additional shares for sale to the new investors. Assuming the capital ac-uisition described in this plan is completed, there will be *2+ units of the company in the hands of investors, constituting 9++3 of the authoriDed and issued units. )or purposes on future fundraising, it will be necessary to authoriDe a stock split of, perhaps 2,+++ to one, turning the current *2+ units into 9,*2+,+++ units. Asing the balance sheet for the third year, which estimates 5et Worth, 1ash 'alances and Carnings, based on 9K Brive:thrus and four Fobile 1afes, it is not unrealistic to put a market value of H92 million to H*2 million on the company. At present, such companies are trading in multiples of *+ to K+ times earnings, and it is simple mathematics to multiply the success of .B by the number of commuter heavy metropolitan areas in the Anited #tates. With a corporate valuation of H=,2++,+++, each of the new units would have a market value of H>Eunit. 'y authoriDing an additional =2+,+++ units, there would be a total of *,+++,+++ units with a market value of HK.=2 per share. 'y offering the =2+,+++ shares at the price of HK.=2 per unit, .B would raise an additional H*,;9*,2++ in e6pansion capital, which would be sufficient to open locations in an additional three to five cities.

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1%%en*ix
.able! #ales )orecast

Sales Forecast Month 1 Unit Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 #7 Drive-thrus #8, #9, #10 Drive-thrus #11, #12, #13 Mo!ile "a#e #1 Mo!ile "a#e #2 Mo!ile "a#e #3 Mo!ile "a#e #4 $e!site Sales%&re'iu' (te's )otal Unit Sales Unit &ri*es Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 #7 Drive-thrus #8, #9, #10 Drive-thrus #11, #12, Mo!ile "a#e #1 Mo!ile "a#e #2 Mo!ile "a#e #3 Mo!ile "a#e #4 $e!site Sales%&re'iu' (te's Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 #7 Drive-thrus #8, #9, #10 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +32,375 +0 +0 +0 +0 +0 +0 +42,637 +0 +0 +0 +0 +0 +0 +44,769 +0 +0 +0 +0 +0 +0 +42,530 +0 +0 +0 +0 +0 +0 +42,637 +0 +0 +0 +0 +0 +0 +44,769 +32,375 +0 +0 +0 +0 +0 +42,530 +42,637 +0 +0 +0 +0 +0 +42,637 +40,505 +0 +0 +0 +0 +0 +40,505 +42,637 +0 +0 +0 +0 +0 #13 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Month 1 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Month 2 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Month 3 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 17,500 0 0 0 0 0 0 0 0 0 0 0 0 17,500 Month 4 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 23,047 0 0 0 0 0 0 0 0 0 0 0 0 23,047 Month 5 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 24,199 0 0 0 0 0 0 0 0 0 0 0 0 24,199 Month 6 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 22,989 0 0 0 0 0 0 0 0 0 0 0 0 22,989 Month 7 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 23,047 0 0 0 0 0 0 0 0 0 0 0 0 23,047 Month 8 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 24,199 17,500 0 0 0 0 0 0 0 0 0 0 0 41,699 Month 9 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 22,989 23,047 0 0 0 0 0 0 0 0 0 0 0 46,036 Month 10 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 23,047 21,895 0 0 0 0 0 0 5,000 0 0 0 0 49,942 Month 11 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 21,895 23,047 0 0 0 0 0 0 5,000 0 0 0 0 49,942 Month 12 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +1,85 +2,45 +2,45 +2,45 +2,45 +10,00 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

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Drive-thrus #11, #12, Mo!ile "a#e #1 Mo!ile "a#e #2 Mo!ile "a#e #3 Mo!ile "a#e #4 $e!site Sales%&re'iu' (te's )otal Sales Dire*t Unit "osts Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 #7 Drive-thrus #8, #9, #10 Drive-thrus #11, #12, #13 Mo!ile "a#e #1 Mo!ile "a#e #2 Mo!ile "a#e #3 Mo!ile "a#e #4 $e!site Sales%&re'iu' (te's Dire*t "ost o# Sales Drive-thru #1 Drive-thru #2 Drive-thru #3 Drive-thru #4 Drive-thru #5 Drive-thrus #6 #7 Drive-thrus #8, #9, #10 Drive-thrus #11, #12, Mo!ile "a#e #1 Mo!ile "a#e #2 Mo!ile "a#e #3 Mo!ile "a#e #4 $e!site Sales%&re'iu' (te's Subtotal Direct Cost of Sales #13 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +11,200 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +11,200 +14,750 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +14,750 +15,488 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +15,488 +14,713 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +14,713 +14,750 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +14,750 +15,488 +11,200 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +26,688 +14,713 +14,750 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +29,463 +14,750 +14,013 +0 +0 +0 +0 +0 +0 +3,200 +0 +0 +0 +0 +31,963 +14,013 +14,750 +0 +0 +0 +0 +0 +0 +3,200 +0 +0 +0 +0 +31,963 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% #13 +0 +0 +0 +0 +0 +0 +0 Month 1 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +0 Month 2 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +0 Month 3 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +32,375 Month 4 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +42,637 Month 5 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +44,769 Month 6 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +42,530 Month 7 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +42,637 Month 8 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +77,144 Month 9 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +0 +0 +0 +0 +0 +85,167 Month 10 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +12,250 +0 +0 +0 +0 +95,392 Month 11 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50 +0 +12,250 +0 +0 +0 +0 +95,392 Month 12 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +0,64 +6,50

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.able! ersonnel

Personnel Plan Month 1 &ro-u*tion &ersonnel Drive-thru )ea' Mo!ile "a#e )ea' ./ui0'ent "are S0e*ialist 12ea-/uarters3 4ther Su!total Sales an- Mar5etin6 &ersonnel Distri*t Mana6er 17our Drive-thrus3 "or0orate .vents Sales .8e* Dire*tor o# Mar5etin6 4ther Su!total 9eneral an- :-'inistrative &ersonnel ;oo55ee0er%4##i*e :-'inistrator $arehouse%Site Mana6er (nventor< "ler5 4ther Su!total 4ther &ersonnel "hie# 40eratin6 4##i*er "hie# 7inan*ial 4##i*er "hie# (n#or'ation 4##i*er 4ther Su!total )otal &eo0le Total Payroll +5,500 +0 +0 +0 +5,500 1 +5,500 +5,500 +0 +0 +0 +5,500 1 +5,500 +5,500 +0 +0 +0 +5,500 1 +5,500 +5,500 +0 +0 +0 +5,500 5 +16,000 +5,500 +0 +0 +0 +5,500 6 +18,100 +5,500 +0 +0 +0 +5,500 6 +17,050 +5,500 +0 +0 +0 +5,500 6 +18,800 +5,500 +0 +0 +0 +5,500 6 +19,500 +5,500 +0 +0 +0 +5,500 11 +28,624 +5,500 +0 +0 +0 +5,500 11 +30,700 +5,500 +0 +0 +0 +5,500 15 +38,200 +5,500 +0 +0 +0 +5,500 15 +38,900 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +1,750 +0 +0 +0 +1,750 +1,750 +0 +0 +0 +1,750 +3,500 +0 +0 +0 +3,500 +3,500 +0 +0 +0 +3,500 +3,500 +0 +0 +0 +3,500 +3,500 +0 +0 +0 +3,500 +3,500 +3,500 +0 +0 +7,000 +3,500 +3,500 +0 +0 +7,000 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +0 +10,500 +0 +0 +0 +10,500 +10,850 +0 +0 +0 +10,850 +9,800 +0 +0 +0 +9,800 +9,800 +0 +0 +0 +9,800 +10,500 +0 +0 +0 +10,500 +19,624 +0 +0 +0 +19,624 +21,700 +0 +0 +0 +21,700 +21,000 +4,700 +0 +0 +25,700 +21,700 +4,700 +0 +0 +26,400 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

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.able! Meneral Assumptions

General Assumptions Month 1 &lan Month "urrent (nterest =ate >on6-ter' (nterest =ate )a8 =ate Other 1 10,00% 9,00% 0,00% 0 Month 2 2 10,00% 9,00% 0,00% 0 Month 3 3 10,00% 9,00% 0,00% 0 Month 4 4 10,00% 9,00% 0,00% 0 Month 5 5 10,00% 9,00% 0,00% 0 Month 6 6 10,00% 9,00% 0,00% 0 Month 7 7 10,00% 9,00% 0,00% 0 Month 8 8 10,00% 9,00% 0,00% 0 Month 9 9 10,00% 9,00% 0,00% 0 Month 10 10 10,00% 9,00% 0,00% 0 Month 11 11 10,00% 9,00% 0,00% 0 Month 12 12 10,00% 9,00% 0,00% 0

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.able! rofit and Loss

Pro Forma Profit and Loss Month 1 Sales Dire*t "ost o# Sales &ro-u*tion &a<roll Sales "o''issions )otal "ost o# Sales 9ross Mar6in 9ross Mar6in % 40eratin6 .80enses Sales an- Mar5etin6 .80enses Sales an- Mar5etin6 &a<roll :-vertisin6%&ro'otion $e!site )ravel Donations )otal Sales an- Mar5etin6 .80enses Sales an- Mar5etin6 % 9eneral an- :-'inistrative .80enses 9eneral an- :-'inistrative &a<roll Sales an- Mar5etin6 an- 4ther .80enses De0re*iation >ease- 4##i*es an- ./ui0'ent Utilities (nsuran*e =ent &a<roll )a8es 4ther 9eneral an- :-'inistrative .80enses )otal 9eneral an- :-'inistrative .80enses 9eneral an- :-'inistrative % 15% +0 +0 +0 +0 +0 +0 0,00% +0 +0 +0 +0 +0 +0 0,00% +0 +0 +100 +1,000 +0 +1,100 0,00% +0 +2,000 +100 +0 +0 +2,100 6,49% +0 +2,000 +100 +0 +0 +2,100 4,93% +0 +2,000 +100 +1,000 +0 +3,100 6,92% +0 +2,000 +100 +0 +0 +2,100 4,94% +0 +2,000 +100 +0 +0 +2,100 4,93% +0 +2,000 +100 +1,000 +0 +3,100 4,02% +0 +2,000 +100 +0 +0 +2,100 2,47% +0 +2,000 +100 +0 +1,416 +3,516 3,69% +0 +2,000 +100 +1,000 +1,916 +5,016 5,26% +0 +0 +0 +0 +0 +0 0,00% Month 2 +0 +0 +0 +0 +0 +0 0,00% Month 3 +0 +0 +0 +0 +0 +0 0,00% Month 4 +32,375 +11,200 +10,500 +0 +21,700 +10,675 32,97% Month 5 +42,637 +14,750 +10,850 +0 +25,600 +17,037 39,96% Month 6 +44,769 +15,488 +9,800 +0 +25,288 +19,481 43,52% Month 7 +42,530 +14,713 +9,800 +0 +24,513 +18,017 42,36% Month 8 +42,637 +14,750 +10,500 +0 +25,250 +17,387 40,78% Month 9 +77,144 +26,688 +19,624 +0 +46,312 +30,832 39,97% Month 10 +85,167 +29,463 +21,700 +0 +51,163 +34,004 39,93% Month 11 +95,392 +31,963 +25,700 +708 +58,371 +37,021 38,81% Month 12 +95,392 +31,963 +26,400 +708 +59,071 +36,321 38,08%

+0 +0 +0 +0 +0 +0 +0 +825 +0 +825 0,00%

+0 +0 +310 +0 +0 +0 +0 +825 +0 +1,135 0,00%

+0 +0 +310 +0 +700 +1,257 +1,200 +825 +0 +4,292 0,00%

+0 +0 +1,565 +0 +800 +1,257 +1,200 +2,400 +0 +7,222 22,31%

+1,750 +0 +1,565 +0 +920 +1,257 +1,200 +2,715 +0 +9,407 22,06%

+1,750 +0 +1,565 +0 +920 +1,257 +1,200 +2,558 +0 +9,250 20,66%

+3,500 +0 +1,565 +0 +1,050 +1,257 +1,200 +2,820 +0 +11,392 26,79%

+3,500 +0 +1,565 +0 +1,050 +1,257 +1,200 +2,925 +0 +11,497 26,96%

+3,500 +0 +2,820 +0 +1,050 +1,257 +2,400 +4,294 +0 +15,321 19,86%

+3,500 +0 +2,820 +0 +1,050 +1,257 +2,400 +4,605 +0 +15,632 18,35%

+7,000 +0 +3,850 +0 +1,050 +1,257 +2,400 +5,730 +0 +21,287 22,32%

+7,000 +0 +3,850 +0 +1,050 +1,257 +2,400 +5,835 +0 +21,392 22,43%

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4ther .80enses? 4ther &a<roll "onsultants >e6al%:**ountin6%"onsultants )otal 4ther .80enses 4ther % )otal 40eratin6 .80enses &ro#it ;e#ore (nterest an- )a8es .;()D: (nterest .80ense )a8es (n*urre@et &ro#it Net Profit/Sales +5,500 +0 +1,500 +7,000 0,00% +7,825 1+7,8253 1+7,8253 +1,042 +0 1+8,8673 0,00% +5,500 +0 +1,000 +6,500 0,00% +7,635 1+7,6353 1+7,3253 +1,018 +0 1+8,6533 0,00% +5,500 +0 +1,000 +6,500 0,00% +11,892 1+11,8923 1+11,5823 +1,058 +0 1+12,9503 0,00% +5,500 +0 +1,000 +6,500 20,08% +15,822 1+5,1473 1+3,5823 +1,019 +0 1+6,1663 -19,05% +5,500 +0 +1,000 +6,500 15,24% +18,007 1+9703 +595 +1,019 +0 1+1,9903 -4,67% +5,500 +0 +1,000 +6,500 14,52% +18,850 +632 +2,197 +1,019 +0 1+3883 -0,87% +5,500 +0 +1,000 +6,500 15,28% +19,992 1+1,9753 1+4103 +1,019 +0 1+2,9943 -7,04% +5,500 +0 +1,000 +6,500 15,24% +20,097 1+2,7103 1+1,1453 +1,019 +0 1+3,7303 -8,75% +5,500 +0 +1,000 +6,500 8,43% +24,921 +5,912 +8,732 +1,756 +0 +4,156 5,39% +5,500 +0 +1,000 +6,500 7,63% +24,232 +9,772 +12,592 +1,702 +0 +8,070 9,48% +5,500 +0 +1,000 +6,500 6,81% +31,303 +5,718 +9,568 +2,282 +0 +3,436 3,60% +5,500 +0 +1,000 +6,500 6,81% +32,908 +3,413 +7,263 +2,210 +0 +1,203 1,26%

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.able! 1ash )low

Pro Forma Cash Flow Month 1 "ash =e*eive"ash #ro' 40erations "ash Sales Su!total "ash #ro' 40erations :--itional "ash =e*eiveSales )a8, A:), 2S)%9S) =e*eive@eB "urrent ;orroBin6 @eB 4ther >ia!ilities 1interest-#ree3 @eB >on6-ter' >ia!ilities Sales o# 4ther "urrent :ssets Sales o# >on6-ter' :ssets @eB (nvest'ent =e*eiveSu!total "ash =e*eive.80en-itures .80en-itures #ro' 40erations "ash S0en-in6 ;ill &a<'ents Su!total S0ent on 40erations :--itional "ash S0ent Sales )a8, A:), 2S)%9S) &ai- 4ut &rin*i0al =e0a<'ent o# "urrent ;orroBin6 4ther >ia!ilities &rin*i0al =e0a<'ent >on6-ter' >ia!ilities &rin*i0al =e0a<'ent &ur*hase 4ther "urrent :ssets &ur*hase >on6-ter' :ssets Divi-en-s Su!total "ash S0ent @et "ash 7loB Cash Balance +0 +0 +0 +2,500 +0 +0 +0 +8,112 1+8,1123 +17,388 +0 +0 +0 +3,116 +0 +0 +0 +11,965 1+11,9653 +5,422 +0 +0 +0 +0 +0 +0 +0 +8,487 1+3,1873 +2,236 +0 +0 +0 +5,166 +0 +0 +0 +28,394 +3,981 +6,217 +0 +0 +0 +0 +0 +0 +0 +28,130 +14,507 +20,724 +0 +0 +0 +0 +0 +0 +0 +34,769 +10,000 +30,724 +0 +0 +0 +0 +0 +0 +0 +46,051 1+3,5213 +27,203 +0 +0 +0 +0 +0 +0 +0 +43,842 1+1,2053 +25,998 +0 +0 +0 +0 +0 +105,400 +0 +160,344 +14,984 +40,982 +0 +0 +0 +7,216 +0 +0 +0 +92,323 1+7,1563 +33,826 +0 +500 +0 +0 +0 +86,450 +0 +171,981 +1,390 +35,216 +0 +1,000 +0 +8,471 +0 +0 +0 +100,986 1+5,5943 +29,622 +5,500 +112 +5,612 +5,500 +3,349 +8,849 +5,500 +2,987 +8,487 +16,000 +7,228 +23,228 +18,100 +10,030 +28,130 +17,050 +17,719 +34,769 +18,800 +27,251 +46,051 +19,500 +24,342 +43,842 +28,624 +26,320 +54,944 +30,700 +54,407 +85,107 +38,200 +46,831 +85,031 +38,900 +52,615 +91,515 0,00% +0 +0 +0 +0 +0 +0 +0 +0 Month 1 +0 +0 +0 +0 +0 +0 +0 +0 Month 2 +0 +0 +0 +5,300 +0 +0 +0 +5,300 Month 3 +0 +0 +0 +0 +0 +0 +0 +32,375 Month 4 +0 +0 +0 +0 +0 +0 +0 +42,637 Month 5 +0 +0 +0 +0 +0 +0 +0 +44,769 Month 6 +0 +0 +0 +0 +0 +0 +0 +42,530 Month 7 +0 +0 +0 +0 +0 +0 +0 +42,637 Month 8 +0 +0 +0 +98,184 +0 +0 +0 +175,328 Month 9 +0 +0 +0 +0 +0 +0 +0 +85,167 Month 10 +0 +0 +0 +77,979 +0 +0 +0 +173,371 Month 11 +0 +0 +0 +0 +0 +0 +0 +95,392 Month 12 +0 +0 +0 +0 +0 +0 +32,375 +32,375 +42,637 +42,637 +44,769 +44,769 +42,530 +42,530 +42,637 +42,637 +77,144 +77,144 +85,167 +85,167 +95,392 +95,392 +95,392 +95,392 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

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.able! 'alance #heet

Pro Forma Balance Sheet Month 1 :ssets "urrent :ssets "ash (nventor< 4ther "urrent :ssets )otal "urrent :ssets >on6-ter' :ssets >on6-ter' :ssets :**u'ulate- De0re*iation )otal >on6-ter' :ssets )otal :ssets >ia!ilities an- "a0ital "urrent >ia!ilities :**ounts &a<a!le "urrent ;orroBin6 4ther "urrent >ia!ilities Su!total "urrent >ia!ilities >on6-ter' >ia!ilities )otal >ia!ilities &ai--in "a0ital =etaine- .arnin6s .arnin6s )otal "a0ital )otal >ia!ilities an- "a0ital Net Worth +0 +9,000 +0 +9,000 +131,400 +140,400 +225,270 1+173,7703 +0 +51,500 +191,900 +51,500 +3,255 +9,000 +0 +12,255 +128,900 +141,155 +225,270 1+173,7703 1+8,8673 +42,633 +183,788 +42,633 +2,749 +9,000 +0 +11,749 +125,784 +137,533 +225,270 1+173,7703 1+17,5203 +33,980 +171,512 +33,980 +6,902 +9,000 +0 +15,902 +131,084 +146,986 +225,270 1+173,7703 1+30,4703 +21,030 +168,016 +21,030 +9,451 +9,000 +0 +18,451 +125,918 +144,369 +225,270 1+173,7703 1+36,6373 +14,863 +159,232 +14,863 +16,807 +9,000 +0 +25,807 +125,918 +151,725 +225,270 1+173,7703 1+38,6263 +12,874 +164,599 +12,874 +26,441 +9,000 +0 +35,441 +125,918 +161,359 +225,270 1+173,7703 1+39,0143 +12,486 +173,845 +12,486 +23,498 +9,000 +0 +32,498 +125,918 +158,416 +225,270 1+173,7703 1+42,0083 +9,492 +167,907 +9,492 +24,497 +9,000 +0 +33,497 +125,918 +159,415 +225,270 1+173,7703 1+45,7383 +5,762 +165,178 +5,762 +52,853 +9,000 +0 +61,853 +224,102 +285,955 +225,270 1+173,7703 1+41,5823 +9,918 +295,873 +9,918 +45,076 +9,000 +0 +54,076 +216,886 +270,962 +225,270 1+173,7703 1+33,5113 +17,989 +288,951 +17,989 +50,900 +8,500 +0 +59,400 +294,865 +354,265 +225,270 1+173,7703 1+30,0753 +21,425 +375,690 +21,425 +49,724 +7,500 +0 +57,224 +286,394 +343,618 +225,270 1+173,7703 1+28,8723 +22,628 +366,246 +22,628 +131,400 +0 +131,400 +191,900 +131,400 +0 +131,400 +183,788 Month 1 +131,400 +310 +131,090 +171,512 Month 2 +131,400 +620 +130,780 +168,016 Month 3 +131,400 +2,185 +129,215 +159,232 Month 4 +131,400 +3,750 +127,650 +164,599 Month 5 +131,400 +5,315 +126,085 +173,845 Month 6 +131,400 +6,880 +124,520 +167,907 Month 7 +131,400 +8,445 +122,955 +165,178 Month 8 +236,800 +11,265 +225,535 +295,873 Month 9 +236,800 +14,085 +222,715 +288,951 Month 10 +323,250 +17,935 +305,315 +375,690 Month 11 +323,250 +21,785 +301,465 +366,246 Month 12 +25,500 +35,000 +0 +60,500 +17,388 +35,000 +0 +52,388 +5,422 +35,000 +0 +40,422 +2,236 +35,000 +0 +37,236 +6,217 +23,800 +0 +30,017 +20,724 +16,225 +0 +36,949 +30,724 +17,036 +0 +47,760 +27,203 +16,185 +0 +43,387 +25,998 +16,225 +0 +42,223 +40,982 +29,356 +0 +70,338 +33,826 +32,410 +0 +66,236 +35,216 +35,159 +0 +70,375 +29,622 +35,159 +0 +64,781 Startin6 ;alan*es Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

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