Jolly's Java and Bakery Bakery Business Plan Executive Summary

Jolly's Java and Bakery
Bakery Business Plan

Executive Summary
Introduction
Jolly's Java and Bakery (JJB) is a start-up coffee and bakery retail establishment
located in southwest Washington. JJB expects to catch the interest of a regular loyal customer
base with its broad variety of coffee and pastry products. The company plans to build a strong
market position in the town, due to the partners' industry experience and mild competitive
climate in the area.
JJB aims to offer its products at a competitive price to meet the demand of the
middle-to higher-income local market area residents and tourists.
The Company
JJB is incorporated in the state of Washington. It is equally owned and managed by
its two partners.
Mr. Austin Patterson has extensive experience in sales, marketing, and management,
and was vice president of marketing with both Jansonne & Jansonne and Burper Foods. Mr.
David Fields brings experience in the area of finance and administration, including a stint as
chief financial officer with both Flaxfield Roasters and the national coffee store chain,
BuzzCups.
The company intends to hire two full-time pastry bakers and six part-time baristas to
handle customer service and day to day operations.
Products and Services
JJB offers a broad range of coffee and espresso products, all from high quality
Columbian grown imported coffee beans. JJB caters to all of its customers by providing each
customer coffee and espresso products made to suit the customer, down to the smallest detail.
The bakery provides freshly prepared bakery and pastry products at all times during
business operations. Six to eight moderate batches of bakery and pastry products are prepared
during the day to assure fresh baked goods are always available.
The Market
The retail coffee industry in the U.S. has recently experienced rapid growth. The cool
marine climate in southwest Washington stimulates consumption of hot beverages throughout
the year.
JJB wants to establish a large regular customer base, and will therefore concentrate its
business and marketing on local residents, which will be the dominant target market. This will
establish a healthy, consistent revenue base to ensure stability of the business. In addition,
tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and
competitive products and service are critical to capture this segment of the market.
Financial Considerations
JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed
by the SBA as a ten-year loan. This provides the bulk of the current financing required.
JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year,
and $655,000 in the third year of the plan. JJB should break even by the fourth month of its
operation as it steadily increases its sales. Profits for this time period are expected to be
approximately $13,000 in year 1, $36,000 by year 2, and $46,000 by year 3. The company
does not anticipate any cash flow problems.
1.1 Mission
JJB aims to offer high quality coffee, espresso, and pastry products at a competitive price to
meet the demand of the middle- to higher-income local market area residents and tourists.
1.2 Keys to Success
Keys to success for JJB will include:
1. Providing the highest quality product with personal customer service.
2. Competitive pricing.
Company Summary
JJB is a bakery and coffee shop managed by two partners. These partners represent
sales/management and finance/administration areas, respectively. The partners will provide funding
from their own savings, which will cover start-up expenses and provide a financial cushion for the
first months of operation. A ten-year Small Business Administration (SBA) loan will cover the rest of
the required financing. The company plans to build a strong market position in the town, due to the
partners' industry experience and mild competitive climate in the area.
2.1 Company Ownership
JJB is incorporated in the state of Washington. It is equally owned by its two partners.
2.2 Start-up Summary
JJB is a start-up company. Financing will come from the partners' capital and a ten-year SBA
loan. The following chart and table illustrate the company's projected initial start-up costs.
Start-up Requirements
Start-up Expenses
Legal
$3,000
Premise renovation
$20,000
Expensed equipment
$40,000
Other
$1,000
Total Start-up Expenses
$64,000
Start-up Assets
Cash Required
$70,000
Other Current Assets
$12,000
Long-term Assets
$65,000
Total Assets
$147,000
Total Requirements
$211,000
Start-up Funding
Start-up Expenses to Fund
$64,000
Start-up Assets to Fund
$147,000
Total Funding Required
$211,000
Assets
Non-cash Assets from Start-up
$77,000
Cash Requirements from Start-up
$70,000
Additional Cash Raised
$0
Cash Balance on Starting Date
$70,000
Total Assets
$147,000
Liabilities and Capital

Liabilities
Current Borrowing
$0
Long-term Liabilities
$100,000
Accounts Payable (Outstanding Bills)
$1,000
Other Current Liabilities (interest-
$0
free)
Total Liabilities
$101,000
Capital
Planned Investment
Patterson
$55,000
Fields
$55,000
Other
$0
Additional Investment Requirement
$0
Total Planned Investment
$110,000
Loss at Start-up (Start-up Expenses)
($64,000)
Total Capital
$46,000
Total Capital and Liabilities
$147,000
Total Funding
$211,000
Products
JJB offers a broad range of coffee and espresso products, all from high quality Columbian
grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and
espresso products made to suit the customer, down to the smallest detail.
The bakery provides freshly prepared bakery and pastry products at all times during business
operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to
assure fresh baked goods are always available.
Market Analysis Summary
JJB's focus is on meeting the demand of a regular local resident customer base, as well as a
significant level of tourist traffic from nearby highways.
4.1 Market Segmentation
JJB focuses on the middle- and upper-income markets. These market segments consume the
majority of coffee and espresso products.
Local Residents
JJB wants to establish a large regular customer base. This will establish a healthy, consistent
revenue base to ensure stability of the business.
Tourists
Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive
products and service are critical to capture this segment of the market.
4.1.1 Market Analysis
The chart and table below outline the total market potential of the above described
customer segments.
4.2 Target Market Segment Strategy
The dominant target market for JJB is a regular stream of local residents. Personal and
expedient customer service at a competitive price is key to maintaining the local market share of this
target market.
4.2.1 Market Needs
Because Washington has a cool climate for eight months out of the year, hot coffee
products are very much in demand. During the remaining warmer four months of the year,
iced coffee products are in significantly high demand, along with a slower but consistent
demand for hot coffee products. Much of the day's activity occurs in the morning hours before
ten a.m., with a relatively steady flow for the remainder of the day.
4.3 Service Business Analysis
The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine
climate in southwest Washington stimulates consumption of hot beverages throughout the year.
Coffee drinkers in the Pacific Northwest are finicky about the quality of beverages offered at the
numerous coffee bars across the region. Despite low competition in the immediate area, JJB will
position itself as a place where customers can enjoy a cup of delicious coffee with a fresh pastry in a
relaxing environment.
4.3.1 Competition and Buying Patterns
Competition in the local area is somewhat sparse and does not provide nearly the
level of product quality and customer service as JJB. Local customers are looking for a high
quality product in a relaxing atmosphere. They desire a unique, classy experience.
Leading competitors purchase and roast high quality, whole-bean coffees and, along
with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and
confections, coffee-related accessories and equipment, and a line of premium teas, sell these
items primarily through company-operated retail stores. In addition to sales through
company-operated retail stores, leading competitors sell coffee and tea products through other
channels of distribution (specialty operations).
Larger chains vary their product mix depending upon the size of each store and its
location. Larger stores carry a broad selection of whole bean coffees in various sizes and
types of packaging, as well as an assortment of coffee- and espresso-making equipment and
accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage
containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of
coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such
as travel tumblers and logo mugs. During fiscal year 2000, industry retail sales mix by
product type was approximately 73% beverages, 14% food items, eight percent whole-bean
coffees, and five percent coffee-making equipment and accessories.
Technologically savvy competitors make fresh coffee and coffee-related products

conveniently available via mail order and online. Additionally, mail order
catalogs offering coffees, certain food items, and select coffee-making equipment and
accessories, have been made available by a few larger competitors. Websites offering online
stores that allow customers to browse for and purchase coffee, gifts, and other items via the
Internet have become more commonplace as well.
Strategy and Implementation Summary
JJB will succeed by offering consumers high quality coffee, espresso, and bakery products
with personal service at a competitive price.
5.1 Competitive Edge
JJB's competitive edge is the relatively low level of competition in the local area in this
particular niche.
5.2 Sales Strategy
As the chart and table show, JJB anticipates sales of about $491,000 in the first year,
$567,000 in the second year, and $655,000 in the third year of the plan.
5.2 Sales Strategy

As the chart and table show, JJB anticipates sales of about $491,000 in the first year,
$567,000 in the second year, and $655,000 in the third year of the plan.
Sales Forecast
Year 1
Year 2
Year 3
Espresso Drinks
135,000
148,500
163,350
Pastry Items
86,000
94,600
104,060
Other
Total Unit Sales
221,000
243,100
267,410
Unit Prices
Year 1
Year 2
Year 3
Espresso Drinks
$3.00
$3.15
$3.31
Pastry Items
$1.00
$1.05
$1.10
Other
$0.00
$0.00
$0.00
Unit Sales
Sales
Espresso Drinks
$405,000 $467,775 $540,280
Pastry Items
$86,000
$99,330
$114,726
Other
$0
$0
$0
Total Sales
$491,000 $567,105 $655,006
Direct Unit Costs
Year 1
Year 2
Year 3
Espresso Drinks
$0.25
$0.26
$0.28
Pastry Items
$0.50
$0.53
$0.55
Other
$0.00
$0.00
$0.00
Espresso Drinks
$33,750
$38,981
$45,023
Pastry Items
$43,000
$49,665
$57,363
Other
$0
$0
$0
$88,646
$102,386
Direct Cost of Sales
Subtotal Direct Cost of Sales $76,750
Management Summary
Austin Patterson has extensive experience in sales, marketing, and management, and was vice
president of marketing with both Jansonne & Jansonne and Burper Foods. David Fields brings
experience in the area of finance and administration, including a stint as chief financial officer with
both Flaxfield Roasters and the national coffee store chain, BuzzCups.
6.1 Personnel Plan
As the personnel plan shows, JJB expects to make significant investments in sales, sales
support, and product development personnel.
PERSONNEL PLAN
YEAR 1
Managers
YEAR 2
YEAR 3
$100,000 $105,000 $110,250
Pastry Bakers
$40,800
Baristas
$120,000 $126,000 $132,300
Other
$0
$0
$0
TOTAL PEOPLE 10
10
10
Total Payroll
$42,840
$44,982
$260,800 $273,840 $287,532
Financial Plan
JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the
SBA as a ten-year loan. This provides the bulk of the current financing required.
7.1 Break-even Analysis
JJB's Break-even Analysis is based on the average of the first-year figures for total sales by
units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed
costs. These conservative assumptions make for a more accurate estimate of real risk. JJB should
break even by the fourth month of its operation as it steadily increases its sales.
Break-even Analysis
Monthly Units Break-even
17,255
Monthly Revenue Break-even
$38,336
Assumptions:
$2.22
Average Per-Unit Revenue
Average Per-Unit Variable Cost $0.35

Estimated Monthly Fixed Cost
$32,343
7.2 Projected Profit and Loss

As the Profit and Loss table shows, JJB expects to continue its steady growth in profitability
over the next three years of operations.
Pro Forma Profit and Loss
Year 1
Year 2
Year 3
Sales
$491,000 $567,105 $655,006
Direct Cost of Sales
$76,750
$88,646
$102,386
Other
$0
$0
$0
Total Cost of Sales
$76,750
$88,646
$102,386
Gross Margin
$414,250 $478,459 $552,620
Gross Margin %
84.37%
84.37%
84.37%
Expenses
Payroll
$260,800 $273,840 $287,532
Sales and Marketing and Other Expenses $27,000
$35,200
$71,460
Depreciation
$60,000
$69,000
$79,350
Utilities
$1,200
$1,260
$1,323
Payroll Taxes
$39,120
$41,076
$43,130
Other
$0
$0
$0
Total Operating Expenses
$388,120 $420,376 $482,795
Profit Before Interest and Taxes
$26,130
$58,083
EBITDA
$86,130
$127,083 $149,175
Interest Expense
$10,000
$9,500
$8,250
Taxes Incurred
$3,111
$12,146
$15,650
Net Profit
$13,019
$36,437
$45,925
Net Profit/Sales
2.65%
6.43%
7.01%
$69,825
7.3 Projected Cash Flow

The cash flow projection shows that provisions for ongoing expenses are adequate to meet
JJB's needs as the business generates cash flow sufficient to support operations.
Pro Forma Cash Flow

Year 1
Year 2
Year 3
Cash Received
Cash from Operations
Cash Sales
$491,000 $567,105 $655,006
Subtotal Cash from Operations
$491,000 $567,105 $655,006
Additional Cash Received

Sales Tax, VAT, HST/GST Received
$0
$0
$0
New Current Borrowing
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
New Investment Received
$0
$0
$0
Subtotal Cash Received
$491,000 $567,105 $655,006
Expenditures
Year 1
Year 2
Year 3
Expenditures from Operations

Cash Spending
$260,800 $273,840 $287,532
Bill Payments
$143,607 $186,964 $237,731
Subtotal Spent on Operations
$404,407 $460,804 $525,263
Additional Cash Spent

$0
$0
$0
Principal Repayment of Current Borrowing $0
$0
$0
Sales Tax, VAT, HST/GST Paid Out
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$10,000
$15,000
Purchase Other Current Assets
$0
$0
$0
Purchase Long-term Assets
$0
$20,000
$20,000
Dividends
$0
$0
$0
Subtotal Cash Spent
$404,407 $490,804 $560,263
Net Cash Flow
$86,593
Cash Balance
$156,593 $232,894 $327,637
$76,301
$94,744
7.4 Balance Sheet

The following is a projected Balance Sheet for JJB.
Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Cash
$156,593
$232,894
$327,637
$12,000
$12,000
$12,000
Total Current Assets
$168,593
$244,894
$339,637
Long-term Assets
$65,000
$85,000
$105,000
Accumulated Depreciation
$60,000
$129,000
$208,350
Total Long-term Assets
$5,000
($44,000) ($103,350)
Total Assets
$173,593
$200,894
$236,287
Liabilities and Capital
Year 1
Year 2
Year 3
Accounts Payable
$14,574
$15,438
$19,907
Current Borrowing
$0
$0
$0
Other Current Liabilities
$0
$0
$0
Subtotal Current Liabilities
$14,574
$15,438
$19,907
$100,000
$90,000
$75,000
Total Liabilities
$114,574
$105,438
$94,907
Paid-in Capital
$110,000
$110,000
$110,000
Retained Earnings
($64,000) ($50,981) ($14,544)
Earnings
$13,019
Assets
Current Assets
Long-term Assets
Current Liabilities
$36,437
$45,925
Total Capital
$59,019
Total Liabilities and Capital $173,593

Net Worth
$59,019
$95,456
$141,381
$200,894
$236,287
$95,456
$141,381
7.5 Business Ratios

The following table represents key ratios for the retail bakery and coffee shop industry. These
ratios are determined by the Standard Industry Classification (SIC) Index code 5812, Eating Places.
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
0.00%
15.50%
15.50%
7.60%
6.91%
5.97%
5.08%
35.60%
Total Current Assets
97.12%
121.90%
143.74%
43.70%
Long-term Assets
2.88%
-21.90%
-43.74%
56.30%
Total Assets
100.00%
100.00%
100.00%
100.00%
Current Liabilities
8.40%
7.68%
8.42%
32.70%
57.61%
44.80%
31.74%
28.50%
Total Liabilities
66.00%
52.48%
40.17%
61.20%
Net Worth
34.00%
47.52%
59.83%
38.80%
Sales
100.00%
100.00%
100.00%
100.00%
Gross Margin
84.37%
84.37%
84.37%
60.50%
Selling, General & Administrative Expenses 74.74%
71.43%
71.39%
39.80%
Sales Growth
Percent of Total Assets
Percent of Sales
Advertising Expenses
0.49%
1.76%
6.87%
3.20%
Profit Before Interest and Taxes
5.32%
10.24%
10.66%
0.70%
Current
11.57
15.86
17.06
0.98
Quick
11.57
15.86
17.06
0.65
Total Debt to Total Assets
66.00%
52.48%
40.17%
61.20%
Pre-tax Return on Net Worth
27.33%
50.90%
43.55%
1.70%
Pre-tax Return on Assets
9.29%
24.18%
26.06%
4.30%
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin
2.65%
6.43%
7.01%
n.a
Return on Equity
22.06%
38.17%
32.48%
n.a
Main Ratios
Activity Ratios
Accounts Payable Turnover
10.79
12.17
12.17
n.a
Payment Days
27
29
27
n.a
Total Asset Turnover
2.83
2.82
2.77
n.a
Debt to Net Worth
1.94
1.10
0.67
n.a
Current Liab. to Liab.
0.13
0.15
0.21
n.a
Debt Ratios
Liquidity Ratios
Net Working Capital
$154,019 $229,456 $319,731 n.a
Interest Coverage
2.61
6.11
8.46
n.a
Assets to Sales
0.35
0.35
0.36
n.a
Current Debt/Total Assets
8%
8%
8%
n.a
Acid Test
11.57
15.86
17.06
n.a
Sales/Net Worth
8.32
5.94
4.63
n.a
Dividend Payout
0.00
0.00
0.00
n.a
Additional Ratios
Appendix
Sales Forecast
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
th 1
th 2
th 3
th 4
th 5
th 6
th 7
th 8
th 9
th
th
th
10
11
12
Unit
Sales
Espr
0%
esso
5,00
7,50
10,0
12,5
12,5
12,5
12,5
12,5
12,5
12,5
12,5
12,5
00
00
00
00
00
00
00
00
00
00
2,00
3,00
6,00
8,33
8,33
8,33
8,33
8,33
8,33
8,33
8,33
8,33
7,00
10,5
16,0
20,8
20,8
20,8
20,8
20,8
20,8
20,8
20,8
20,8
Drin
ks
Pastr
0%
y
Item
s
Othe
0%
r
Total
00
00
33
33
33
33
33
33
33
33
33
Unit
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Price
th 1
th 2
th 3
th 4
th 5
th 6
th 7
th 8
th 9
th
th
th
10
11
12
Unit
Sales
s
Espr
$3.0
$3.0
$3.0
$3.0
$3.0
$3.0
$3.0
$3.0
$3.0
$3.0
$3.0
$3.0
esso
Pastr
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
$1.0
Othe
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
Espr
$15,
$22,
$30,
$37,
$37,
$37,
$37,
$37,
$37,
$37,
$37,
$37,
esso
000
500
000
500
500
500
500
500
500
500
500
500
Pastr
$2,0
$3,0
$6,0
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
00
00
00
33
33
33
33
33
33
33
33
33
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total
$17,
$25,
$36,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
Sales
000
500
000
833
833
833
833
833
833
833
833
833
Direc
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
th 1
th 2
th 3
th 4
th 5
th 6
th 7
th 8
th 9
th
th
th
10
11
12
Drin
ks
Item
s
Sales
Drin
ks
Item
s
Othe
r
Unit
Costs
Espr
0.0
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
esso
0%
Drin
ks
Pastr
0.0
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
$0.5
0%
Othe
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%
Espr
$1,2
$1,8
$2,5
$3,1
$3,1
$3,1
$3,1
$3,1
$3,1
$3,1
$3,1
$3,1
esso
50
75
00
25
25
25
25
25
25
25
25
25
Pastr
$1,0
$1,5
$3,0
$4,1
$4,1
$4,1
$4,1
$4,1
$4,1
$4,1
$4,1
$4,1
00
00
00
67
67
67
67
67
67
67
67
67
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subt
$2,2
$3,3
$5,5
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
otal
50
75
00
92
92
92
92
92
92
92
92
92
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
th 1
th 2
th 3
th 4
th 5
th 6
th 7
th 8
th 9
th 10 th 11
th 12
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
$8,3
Item
s
Direc
t
Cost
of
Sales
Drin
ks
Item
s
Othe
r
Direc
t
Cost
of
Sales
Personnel Plan
Mana
gers
% 33
33
33
33
33
33
33
33
33
33
33
33
Pastr
$3,4
$3,4
$3,4
$3,4
$3,4
$3,4
$3,4
$3,4
$3,4
$3,4
$3,4
$3,4
% 00
00
00
00
00
00
00
00
00
00
00
00
Barist
$10,
$10,
$10,
$10,
$10,
$10,
$10,
$10,
$10,
$10,
$10,
$10,
as
% 000
000
000
000
000
000
000
000
000
000
000
000
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
10
10
10
10
10
10
10
10
10
10
10
10
Total
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
Payro
733
733
733
733
733
733
733
733
733
733
733
733
y
Baker
s
%
Total
Peopl
e
ll
General Assumptions
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
th 1
th 2
th 3
th 4
th 5
th 6
th 7
th 8
th 9
th 10
th 11
th 12
10
11
12
Curr
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
ent
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Long
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
-term
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Tax
30.0
25.0
25.0
25.0
25.0
25.0
25.0
25.0
25.0
25.0
25.0
25.0
Rate
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Othe
Plan
Mont
h
Inter
est
Rate
Inter
est
Rate
Pro Forma Profit and Loss

Mont
Mont
Mon
Mon
Mon
Mon
Mon
Mon
Mon Mon
Mon
Mon
h1
h2
th 3
th 4
th 5
th 6
th 7
th 8
th 9
th
th
th
10
11
12
$17,0
$25,5
$36,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
00
00
000
833
833
833
833
833
833
833
833
833
Direct
$2,25
$3,37
$5,5
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
Cost of
00
92
92
92
92
92
92
92
92
92
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total
$2,25
$3,37
$5,5
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
$7,2
Cost of
00
92
92
92
92
92
92
92
92
92
Gross
$14,7
$22,1
$30,
$38,
$38,
$38,
$38,
$38,
$38,
$38,
$38,
$38,
Margin
50
25
500
542
542
542
542
542
542
542
542
542
Gross
86.76
86.76
84.7
84.0
84.0
84.0
84.0
84.0
84.0
84.0
84.0
84.0
Margin
2%
9%
9%
9%
9%
9%
9%
9%
9%
9%
$21,7
$21,7
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
33
33
733
733
733
733
733
733
733
733
733
733
Sales
$2,25
$2,25
$2,2
$2,2
$2,2
$2,2
$2,2
$2,2
$2,2
$2,2
$2,2
$2,2
and
50
50
50
50
50
50
50
50
50
50
Sales
Sales
Sales
%
Expens
es
Payroll
Market
ing and
Other
Expens
es
Deprec
15
$5,00
$5,00
$5,0
$5,0
$5,0
$5,0
$5,0
$5,0
$5,0
$5,0
$5,0
$5,0
iation
00
00
00
00
00
00
00
00
00
00
Utilitie
$100
$100
$100 $10
$10
$10
$10
$10
$10
$10
$10
$10
Payroll
15
$3,26
$3,26
$3,2
$3,2
$3,2
$3,2
$3,2
$3,2
$3,2
$3,2
$3,2
$3,2
Taxes
60
60
60
60
60
60
60
60
60
60
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other
Total
$32,3
$32,3
$32,
$32,
$32,
$32,
$32,
$32,
$32,
$32,
$32,
$32,
Operat
43
43
343
343
343
343
343
343
343
343
343
343
Profit
($17,
($10,
($1,
$6,1
$6,1
$6,1
$6,1
$6,1
$6,1
$6,1
$6,1
$6,1
Before
593)
218)
843)
98
98
98
98
98
98
98
98
98
EBITD
($12,
($5,2
$3,1
$11,
$11,
$11,
$11,
$11,
$11,
$11,
$11,
$11,
593)
18)
57
198
198
198
198
198
198
198
198
198
Interes
$833
$833
$833 $83
$83
$83
$83
$83
$83
$83
$83
$83
ing
Expens
es
Interes
t and
Taxes
t
Expens
e
Taxes
($5,5
($2,7
($66
$1,3
$1,3
$1,3
$1,3
$1,3
$1,3
$1,3
$1,3
$1,3
Incurr
28)
63)
9)
41
41
41
41
41
41
41
41
41
Net
($12,
($8,2
($2,
$4,0
$4,0
$4,0
$4,0
$4,0
$4,0
$4,0
$4,0
$4,0
Profit
899)
89)
007)
24
24
24
24
24
24
24
24
24
Net
8.78
8.78
8.78
8.78
8.78
8.78
8.78
8.78
8.78
Profit/
75.87
32.50
5.58
Sales
ed
Pro Forma Cash Flow
Cash
Receiv
ed
Cash
from
Operat
Mon Mo
Mo
Mo
Mo
Mon
Mon
Mon
Mon
Mon
Mon
Mon
th 1
nth
nth
nth
nth
th 6
th 7
th 8
th 9
th 10
th 11
th 12
ions
Cash
$17,
$25,
$36,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
Sales
000
500
000
833
833
833
833
833
833
833
833
833
Subtot
$17,
$25,
$36,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
al
000
500
000
833
833
833
833
833
833
833
833
833
$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
Cash
from
Operat
ions
Additi
onal
Cash
Receiv
ed
Sales
0.0
Tax,
0%
VAT,
HST/G
ST
Receiv
ed
New
Curren
t
Borro
wing
New
Other
Liabilit
ies
(intere
st-free)
New
Longterm
Liabilit
ies
$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
Subtot
$17,
$25,
$36,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
$45,
al
000
500
000
833
833
833
833
833
833
833
833
833
Expen
Mon Mo
Mo
Mo
Mo
Mon
Mon
Mon
Mon
Mon
Mon
Mon
ditures
th 1
nth
nth
nth
nth
th 6
th 7
th 8
th 9
th 10
th 11
th 12
Sales
of
Other
Curren
t
Assets
Sales
of
Longterm
Assets
New
Invest
ment
Receiv
ed
Cash
Receiv
ed
Expen
ditures
from
Operat
ions
Cash
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
$21,
Spendi
733
733
733
733
733
733
733
733
733
733
733
733
Bill
$1,1
$3,2
$7,1
$11,
$15,
$15,
$15,
$15,
$15,
$15,
$15,
$15,
Payme
06
95
96
401
076
076
076
076
076
076
076
076
ng
nts
Subtot
$22,
$25,
$28,
$33,
$36,
$36,
$36,
$36,
$36,
$36,
$36,
$36,
al
839
028
929
134
810
810
810
810
810
810
810
810
$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
Spent
on
Operat
ions
Additi
onal
Cash
Spent
Sales
Tax,
VAT,
HST/G
ST
Paid
Out
Princip
al
Repay
ment
of
Curren
t
Borro
wing
Other
Liabilit
ies
Princip
al
Repay
ment
Longterm
Liabilit
ies
Princip
al
Repay
ment
$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
Subtot
$22,
$25,
$28,
$33,
$36,
$36,
$36,
$36,
$36,
$36,
$36,
$36,
al
839
028
929
134
810
810
810
810
810
810
810
810
Net
($5,
$47
$7,0
$12,
$9,0
$9,0
$9,0
$9,0
$9,0
$9,0
$9,0
$9,0
Cash
839)
71
699
24
24
24
24
24
24
24
24
Cash
$64,
$64,
$71,
$84,
$93,
$102
$111
$120
$129
$138
$147
$156
Balanc
161
633
703
403
426
,450
,474
,498
,521
,545
,569
,593
Purcha
se
Other
Curren
t
Assets
Purcha
se
Longterm
Assets
Divide
nds
Cash
Spent
Flow
Pro Forma Balance Sheet
Assets
Start
ing
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
th 1
th 2
th 3
th 4
th 5
th 6
th 7
th 8
th 9
th
th
th
10
11
12
Bala
nces
Curre
nt
Assets
Cash
$70,
$64,
$64,
$71,
$84,
$93,
$10
$11
$12
$12
$13
$14
$15
000
161
633
703
403
426
2,45
1,47
0,49
9,52
8,54
7,56
6,59
Other
$12,
$12,
$12,
$12,
$12,
$12,
$12,
$12,
$12,
$12,
$12,
$12,
$12,
Curre
000
000
000
000
000
000
000
000
000
000
000
000
000
Total
$82,
$76,
$76,
$83,
$96,
$10
$11
$12
$13
$14
$15
$15
$16
Curre
000
161
633
703
403
5,42
4,45
3,47
2,49
1,52
0,54
9,56
8,59
nt
Assets
nt
Assets
Longterm
Assets
Long-
$65,
$65,
$65,
$65,
$65,
$65,
$65,
$65,
$65,
$65,
$65,
$65,
$65,
term
000
000
000
000
000
000
000
000
000
000
000
000
000
$0
$5,0
$10,
$15,
$20,
$25,
$30,
$35,
$40,
$45,
$50,
$55,
$60,
00
000
000
000
000
000
000
000
000
000
000
000
Assets
Accu
mulat
ed
Depre
ciatio
n
Total
$65,
$60,
$55,
$50,
$45,
$40,
$35,
$30,
$25,
$20,
$15,
$10,
$5,0
Long-
000
000
000
000
000
000
000
000
000
000
000
000
00
Total
$14
$13
$13
$13
$14
$14
$14
$15
$15
$16
$16
$16
$17
Assets
7,00
6,16
1,63
3,70
1,40
5,42
9,45
3,47
7,49
1,52
5,54
9,56
3,59
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
term
Assets
Liabili
th 1
ties
th 2
th 3
th 4
th 5
th 6
th 7
th 8
th 9
and
th
th
th
10
11
12
Capit
al
Curre
nt
Liabili
ties
Accou
$1,0
$3,0
$6,8
$10,
$14,
$14,
$14,
$14,
$14,
$14,
$14,
$14,
$14,
nts
00
60
20
898
574
574
574
574
574
574
574
574
574
$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
$3,0
$6,8
$10,
$14,
$14,
$14,
$14,
$14,
$14,
$14,
$14,
$14,
00
60
20
898
574
574
574
574
574
574
574
574
574
Long-
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
term
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
$10
$10
$10
$11
$11
$11
$11
$11
$11
$11
$11
$11
$11
Liabili 1,00
3,06
6,82
0,89
4,57
4,57
4,57
4,57
4,57
4,57
4,57
4,57
4,57
Payab
le
Curre
nt
Borro
wing
Other
Curre
nt
Liabili
ties
Subtot $1,0
al
Curre
nt
Liabili
ties
Liabili 0
ties
Total
ties
Paid-
$11
$11
$11
$11
$11
$11
$11
$11
$11
$11
$11
$11
$11
in
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
Retain ($64
($64
($64
($64
($64
($64
($64
($64
($64
($64
($64
($64
($64
ed
,000
,000
,000
,000
,000
,000
,000
,000
,000
,000
,000
,000
,000
Earni
$0
($12
($21
($23
($19
($15
($11
($7,
($3,
$94
$4,9
$8,9
$13,
,899
,187
,195
,171
,147
,124
100)
076)
71
95
019
Capit
al
ngs
Earni
ngs
Total
$46,
$33,
$24,
$22,
$26,
$30,
$34,
$38,
$42,
$46,
$50,
$54,
$59,
Capit
000
101
813
805
829
853
876
900
924
948
971
995
019
$14
$13
$13
$13
$14
$14
$14
$15
$15
$16
$16
$16
$17
Liabili 7,00
6,16
1,63
3,70
1,40
5,42
9,45
3,47
7,49
1,52
5,54
9,56
3,59
$46,
$33,
$24,
$22,
$26,
$30,
$34,
$38,
$42,
$46,
$50,
$54,
$59,
Worth 000
101
813
805
829
853
876
900
924
948
971
995
019
al
Total
ties
and
Capit
al
Net

Jolly's Java and Bakery Bakery Business Plan Executive Summary

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Jolly's Java and Bakery

Bakery Business Plan

Total Start-up Expenses

Other Current Assets

Start-up Assets to Fund

Total Funding Required

Cash Requirements from Start-up

Additional Cash Raised

Cash Balance on Starting Date

Liabilities and Capital

Accounts Payable (Outstanding Bills)

Other Current Liabilities (interest-

Additional Investment Requirement

Total Planned Investment

Loss at Start-up (Start-up Expenses)

Total Capital and Liabilities

Technologically savvy competitors make fresh coffee and coffee-related products

5.2 Sales Strategy

Total Unit Sales

$405,000 $467,775 $540,280

$491,000 $567,105 $655,006

Direct Unit Costs

Direct Cost of Sales

Subtotal Direct Cost of Sales $76,750

$100,000 $105,000 $110,250

$120,000 $126,000 $132,300

$260,800 $273,840 $287,532

Monthly Revenue Break-even

Average Per-Unit Revenue

Average Per-Unit Variable Cost $0.35

7.2 Projected Profit and Loss

$491,000 $567,105 $655,006

Direct Cost of Sales

Total Cost of Sales

$414,250 $478,459 $552,620

$260,800 $273,840 $287,532

Sales and Marketing and Other Expenses $27,000

Total Operating Expenses

$388,120 $420,376 $482,795

Profit Before Interest and Taxes

7.3 Projected Cash Flow

Pro Forma Cash Flow

$491,000 $567,105 $655,006

Subtotal Cash from Operations

$491,000 $567,105 $655,006

Additional Cash Received

New Current Borrowing

New Other Liabilities (interest-free)

New Long-term Liabilities

Sales of Other Current Assets

Sales of Long-term Assets

New Investment Received

Subtotal Cash Received

$491,000 $567,105 $655,006

Expenditures from Operations

$260,800 $273,840 $287,532

$143,607 $186,964 $237,731

Subtotal Spent on Operations