धृ ति: क्षमा दमोऽस्‍तेयं शौचमिन्‍द्रियनिग्रह:। धीर्विद्या सत्‍यमक् रोधो दशकं धर्मलक्षणम्‌।।

Executive Summary

Rationale:

New construction of upscale residential housing in Boston has been robust in recent years,
leading to the formation of new communities in need of neighborhood stores and services. As
the population shift continues, opportunities arise for retail businesses ready to accommodate
this growth and capitalize on the trend.

Objective:

Vino Maestro will be a full-service retail merchant of fine wines and spirits in Boston. It will
distinguish itself from the competition and capture market share by securing a prime
storefront location in a newly forming Boston residential neighborhood. It will follow the
best practices of its retail category leaders, with particular emphasis on excellent customer
service, a broad selection of quality inventory, and competitive pricing.

1.1 Mission

Our mission is to develop into the best location to buy wine in Boston, which will be
measured by our growth in sales, and in opinions and ratings published in the media.
Inventory and sales records will be computerized, to allow the company to identify and
exploit best selling products, match volumes and profitability to service levels, anticipate
demand, manage cash flows, assist with revenue growth plans, and optimize
supplier/distributor relationships.

Goals:

 Earn and maintain Vino Maestro's rating as one of the best stores in the Boston wine and
spirits retail trade business.
 Establish 30% minimum gross profit margins (retail price less wholesale cost) from inception.
 Achieve a profitable return on investment within three years.
 Earn a 15% internal rate of return for investors over the life of the lease.
 Attract talented and motivated staff.
Company Summary

Vino Maestro will be a Boston retailer of fine wines and spirits. The company will be formed
as a closely held C corporation in which business partners Cris Martin and Bob Williams will
own 80% interest.

2.1 Company Ownership

The following table outlines the start-up expenses, assets, funding, and liabilities.

Start-up Requirements

Start-up Expenses

Legal $15,000

Stationery etc. $3,000

Marketing $10,000

Computer Systems $12,000

Telecommunications $5,000

Security $10,000

Store Layout $10,000

Pre-opening Staff and $10,000

Training

Total Start-up Expenses $75,000

Start-up Assets

Cash Required $70,000

Start-up Inventory $150,000

Other Current Assets $0

Long-term Assets $180,000

Total Assets $400,000

Total Requirements $475,000

Market Analysis Summary

U.S. sales of wines priced at $10 to $14 a bottle have climbed 14 percent over the past 12
months, and sales at $25 a bottle (and up) have grown 18 percent. The trend is expected to
continue (source: UBS Warburg research).

Indeed, wine consumption is on the increase in the United States, and customers are trading
up. Better still for the wine industry, wine overtook coffee as the most popular meal time
beverage in the U.S. in 1998 (Wine Business Monthly, 6/00).

Americans spent more than $20 billion on wine in 1999, up from $17.6 billion the previous
year - an increase of more than 13 percent (WBM, 4/00).

Consumption trends and demographics point to robust wine sales growth for the next 15
years.

The bullish outlook was documented by well-known industry consultant Vic Motto of Motto,
& Fisher and is based on that firm's look at the forces driving increased fine wine
consumption. His findings and conclusions were presented as part of a presentation entitled
"Wine: What's Powering This Rocket?"

Wine demand is likely to be boosted strongly by the aging of the U.S. population. Per capita
consumption of wine increases with age, with early consumers drinking only 6.6 bottles per
year. Consumption peaks at 16.4 bottles annually among adults 50-59 years old. "Baby
boomers, more than any other previous generation, view wine as a simple, affordable luxury."
Given that the strongest growth in population over the next 10 years will be among these
adults, who currently consume about 40 percent of all wines, it is easy to understand Motto's
bullish outlook. "The aging demographic transformation is going to continue for the next 15
years, and the traits of this population as they shift into their older years of life fit wine to a
‘T'" said Motto. Interestingly, their children, today's echo-boomers, make up another
population group that will experience rapid growth over the next decade.
The influence of demographics on wine consumption is so strong, according to MKF, that if
the current growth rate in wine sales were adjusted to account for the population changes,
then U.S. wine consumption potentially could increase 80 percent by 2015 due to
demographics alone. Also, comprehensive industry research has shown that down turns in the
economy and the stock market appear to have no impact on wine sales. In fact, wine sales
rose slightly during previous stock market declines.

U.S. Per Capita Wine Consumption by Age:

21-29 6.6 bottles

30-39 9.7 bottles

40-49
13.6 bottles
50-59 16.4 bottles

60+ 14.5 bottles

(source: Motto, Kryler, & Fisher)

As one would expect, wine consumption in the Boston metropolitan area exceeds national
averages, primarily due to higher per capita income levels and a more global population mix.
Europeans, for example, drink 5 to 10 times more wine per capita than their American
counterparts. Consequently, we conservatively base our business plan projections for the
Southside Towers resident segment to buy an average of 15 bottles of wine per capita per
year from our store.

3.1 Market Segmentation

The following chart and table show the market analysis for Vino Maestro.
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Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Southside Towers 0% 3,000 5,000 7,000 9,000 11,000 38.38%

Milton Co-ops 1% 12,000 12,060 12,120 12,181 12,242 0.50%

Downtown Harborside
2% 50,000 51,000 52,020 53,060 54,121 2.00%
District

Other 0% 0 0 0 0 0 0.00%

Total 4.45% 65,000 68,060 71,140 74,241 77,363 4.45%

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3.2 Industry Analysis

Due to regulatory constraints, the retail wine and spirit trade in Massachusetts is comprised of
many independent participants. Chain stores are not allowed. No change is seen in this
structure for the foreseeable future, although some changes are afoot in Internet-driven
distribution operations, particularly for wholesalers.

3.2.1 Competition and Buying Patterns

Competition to a large degree depends on location, as stores take a stake in a territory that
engenders best in-store sales prospects. Relationships are cultivated with better customers,
both individual and wholesale, who may qualify for discounts based on volume purchases.
Prices in the Boston marketplace are not subject to much variance, as retailers seek to protect
their margins against distributor costs that are virtually the same for all. Distributors,
however, reward volume, and high-volume retailers have the capability to build a competitive
advantage. For example, Millstones runs periodic Super Sales, with retail prices of over 200
wines offered at distributor cost prices. This is something only a high-volume retailer could
afford to do.

Other competitive factors include breadth and depth of available stock, product knowledge,
customer service, expense management, marketing programs, employee productivity,
management of detailed information, in-store presentation and overall design, hours of
operation, incoming and outgoing delivery efficiencies, product packaging, customer loyalty,
out-of-area competition, pricing, and reputation.

Competitors:

Global Wines is about 1,500 feet from our proposed storefront. It is our primary local
competitor, although not a serious threat to our main residential base of customers within
Southside, who will find our location much more convenient to their needs. Another
important factor is that our selection and product knowledge will appeal to the high-
income Southside Towers resident, while Global Wines has more of a neighborhood grocer
approach with less focus on product knowledge.

Stillman Wines on Packard Street is the next nearest competitor, about 2,500 feet north of our
location. Although Stillman is a high-volume shop with strength in pricing power, it remains
far beyond the practical boundaries for shoppers who live in our neighborhood.

There are other direct marketers and major advertisers that can deliver into our territory:
Beverson's, Millstone's, Gainer, and Morrison. We expect our local delivery service will be
faster and more responsive than these bigger players.

Internet storefronts (evinyard.com, Wine.com, etc.) are emerging competitiors and may be
more of a longer term issue, since the industry and marketplace is in the process of
experimenting, testing and adapting to changing conditions in search of a business model that
works over the long term. We intend to develop our own website and emerge as a player by
developing with website economics that make this a self-funding outlet for sales and service.

Non-local stores that are in commuter paths of our neighborhood residents are also
competitors, which will make us ever aware of the importance of cultivating relationships
with our neighborhood residents so we can develop a long-term loyal customer base.

3.3 Target Market Segment Strategy

The target market profile consists of Boston residents who are educated, successful
professionals, with high disposable income, and who are regular consumers of alcoholic
beverages. Most of the consumers in this category rely on assistance in selecting wines and
spirits. Consequently, they tend to reward the most capable merchants with loyalty and word-
of-mouth advertising. This is an area that Vino Maestro will work to develop as a keystone of
its marketing strategy.

Other potential segments (geographic, demographic, preferences):

Bulk volume: private and business. Much of this business needs to be cultivated through
opportunistic networking, and diligent follow-ups of in-store inquiries and leads.
Boston direct deliverables: (outside immediate store neighborhood) viable only as the store
earns its way into a position in which it can invest in vehicle delivery operations and line up
target customers that would sustain such an operation.

Intra-state shipments: contingent on expansion following the successful implementation of

this business plan in the first year or two of operations. This business would develop through
direct-mail catalog marketing, and an Internet sales operation.

3.3.1 Market Needs

Other than the market segment carved out by Beverson's and a handful of major players, little
attention is paid to the opportunities of geographic extensions through direct shipments of
wine & spirits throughout Massachusetts. Beverson's markets over the Internet and has over
220 thousand actual and potential customers on its mailing list. As a goal, our company
will seek to capture of piece of the apparently substantial demand for direct shipment sales. Is
is important to note that if current lobbying efforts are successful in influencing state and
national liquor authorities to allow interstate shipments, our company intends to be in a good
position to capture a piece of this outstanding potential growth opportunity. Even without
interstate sales, a successful penetration of the Massachusetts intra-state marketplace would
mean substantial growth for a neighborhood business.

Strategy and Implementation Summary

1. Location is critical to attract the traffic and customer profile required to generate planned
sales volumes. The business is highly territorial. We have mapped the location of every retail
liquor store in Boston, and we have been working with executives of Castle Real Estate
Company to determine the best possible location for the store. Four target areas were
identified: the newly developing Southside residential complex downtown, the Jefferson
Park area, the Shoehorn district, and the Princeville area. Among these target areas,
Southside Towers has been identified as our most promising business opportunity.

Exclusivity within Southside Towers is a significant competitive edge. It gives Vino

Maestro geographic and protected domain as the most convenient source of fine wines
and spirits for over 3,000 current residents and up to 14,000 additional future
residents.

2. Seasoned executive management professionals, sophisticated in business knowledge,

experienced in the wine and spirits trade.
3. Sales staff with wine and spirit education credentials.

4.1 Competitive Edge

Marketing strategy will focus on:

 1. Developing a reputation for great selection, an appealing store environment,
competitive prices, and excellent customer service. This should engender strong
word-of-mouth advertising--our most potent form of advertising.
2. Developing strong relationships with our suppliers to help insure best discount deals
and best supplier services obtainable.
3. Keeping the staff focused, satisfied and important in their roles--to help keep our
productivity and customer service at the highest obtainable levels.
4. Maintaining an awareness of our store through regular advertising to our target
community. This may be in any combination of media--newspaper, direct mail, in-
store ads and brochures, online ads, radio, and/or television.
5. Reaching out to potential wholesale clients--businesses and community organizations.
6. Doing activities that can stimulate additional business: wine tastings, matching wines
with food, sharing interesting and educational wine knowledge, publishing a
newsletter, offering customer service through a website.
7. Longer term, eventually extending our market penetration beyond the physical
boundaries of the store location--through direct catalog sales and an Internet website.

4.2 Marketing Strategy

Product pricing will be based on competitive parity guidelines. Prices will be consistent with
those of the retail stores in our area, with the exception of very high-volume operations who
have more powerful pricing leverage.

Pricing will be monitored continuously against neighborhood and other competitive sources
(market leaders) who we can readily research.

4.3 Sales Strategy

Management will focus on daily sales revenue goals.

Best value products will be identified to assist customers with smart selections.

Deliveries will be geared to the customer's convenience. The situation will be monitored to
insure that the company invests adequately in its own delivery operations.

Sales feedback will be elicited to stimulate ideas, approaches, relate success stories, instruct
in new techniques, share news, implement improvements.

Major accounts will be solicited through networking, neighborhood solicitations, and

opportunistic encounters at any time by management.

4.3.1 Sales Forecast

1. Sales projections for Vino Maestro are based on: actual sales of Season's Best Wine &
Spirits, A&A Wines, Avenue Wines, interviews with liquor store owners and managers,
observations of store sales and traffic at Friendship Wines, Pelican Place, and various other
retail stores in Boston, government and industry trade statistics, and population
demographics and projections envisioned in Southside Towers construction plans.
 2. Regarding wine revenue potential, we are forecasting average sales of 15 bottles per capita
per year for residents of Southside Towers, and an average retail price of $15 per 750 ml
bottle. Trade statistics show that, on a national basis, 10% of the population is responsible
for 90% of alcoholic beverage consumption. The "average" Southside Towers customer,
representing 10% of the Southside Towers population, therefore, would be expected to
purchase three bottles of wine per week from our store. With Southside Towers growing
from a base of 3,000 to 17,000 residents, we see wine revenue potential from these
residents in a range of $675k to $3.8 million over the course of the full development of the
Southside Towers project.
3. The balance of our forecasted wine sales, representing some 20% of total wine sales, will
come from sources external to Southside Towers: catering services, corporate accounts,
deliveries to consumers outside Southside Towers, and visitors to the Southside
Towers complex of residences, stores, and park situated on the NY harbour waterfront.
4. Sales revenue of spirits are projected to be 10% of wine sales, based on interviews with
Boston store owners with a similar array to the product mix we have planned.
5. About 40% of annual sales are expected to occur in the November-December holiday period.
This is in-line with the retail liquor store norm and confirmed by owner interviews and trade
statistics.
6. Wine consumption has been growing in terms of sales volume some 8-10% annually for the
last decade. This trend is expected to continue and perhaps increase to up to 12% in the
next 15 years. Spirits sales will tend to remain flat during the same time, with the exception
of tequilla, vodka, and rum. Our forecast assumes a 7% annual growth in total wine and
spirits sales per capita.
7. Assuming a plan fiscal year beginning July 1, 2001, we estimate the Southside Towers
population to increase 1,000 residents per year in-line with current construction and
occupancy estimates provided by agents for Southside Towers.

5.2 Personnel Plan

The following table shows the personnel needed for Vino Maestro.

Personnel Plan
Year Year Year
1 2 3
$96,0 $96,0 $100,
Store Managers/Partners
00 00 000
Salespeople -- Full-time $0 $0 $0
$4,65 $3,07 $3,38
Salespeople -- Seasonal
0 0 0
$21,3 $23,5 $28,8
Stock/Delivery -- Full-time
20 00 50
$2,46 $2,70 $2,97
Stock/Delivery -- Seasonal
0 0 0
Other $0 $0 $0

Total People 6 7 7
$124, $125, $135,
Total Payroll
430 270 200

Financial Plan

50%-70% of sales are projected as credit card sales, in-line with actual
experience of retail liquor stores in Boston.

Credit card collection is typically short, and this plan assumes an one day
collection time.

The payment days estimate ranges from 30 days to 28 days. Distributors

terms are 30 days, although substantial discounts can be secured with
earlier payments.

The long-term interest rate basis is the current SBA guideline of prime plus
2.25% for a seven year loan.

The short-term interest rate basis is the fed funds rate plus 2.5%

Distributors reward volume purchases with lower costs. The company

plans to take advantage of distributors' volume discounts, and will pass
along these savings to consumers in the form of sales and special
promotions to stimulate loyalty and further growth. Gross margins will be
maintained in the 30-33% range, which would put our business in-line with
the competition in the Boston metro area.

6.1 Projected Balance Sheet

As the business grows, our investment in inventory increases. This reflects

sales volume increases and the commensurate ability to secure favorable
volume discount terms with our distributors.

The projected accounts receivable position is relatively low and steady due
to the nature of the business, in which up to 50% of our sales are cash, and
the balance are consumer credit card purchases. No other consumer credit
terms are envisioned or necessary for the operation of this business.

Capital assets of $235K are comprised of a quoted $100-$130k for the

build-out of the store (depreciating straight line over the 15 year term of the
lease), $75k for start-up costs (amortized over five years), and $50k for the
landlord's security deposit (about eight months rent).

Long-term liabilities are projected to decrease steadily, reflecting re-

payment of the original seven year term loan required to finance the
business.

It is important to note that part of the retained earnings may become a

distribution of capital to the owners, while the balance would be reinvested
in the business to replenish depreciated assets and to support further
growth.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash $242,668 $326,466 $486,356

Inventory $60,546 $86,495 $107,911

Other Current Assets $0 $0 $0

Total Current Assets $303,215 $412,961 $594,267

Long-term Assets

Long-term Assets $180,000 $180,000 $180,000

Accumulated Depreciation $18,480 $42,240 $76,890

Total Long-term Assets $161,520 $137,760 $103,110

Total Assets $464,735 $550,721 $697,377

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $73,228 $89,859 $110,218

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $73,228 $89,859 $110,218

Long-term Liabilities $205,716 $171,432 $137,148

Total Liabilities $278,944 $261,291 $247,366

Paid-in Capital $235,000 $235,000 $235,000

Retained Earnings ($75,000) ($49,209) $54,431

Earnings $25,791 $103,640 $160,580

Total Capital $185,791 $289,431 $450,011

Total Liabilities and Capital $464,735 $550,721 $697,377

Net Worth $185,791 $289,431 $450,011

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General Assumptions

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 9.00% 9.00% 9.00%

Long-term Interest Rate 11.00% 11.00% 11.00%

Tax Rate 25.42% 25.00% 25.42%

Other 0 0 0

6.2 Key Financial Indicators

Since this is a start-up operation, a steady increase in sales is forecast over

three years, as consumer awareness and regular repeat business grows with
a strong and consistent increase in the population of Southside Towers,
from an initial 3,000 residents to about 17,000 residents upon completion.
A solid business plan and the management skills and experience of the
managing partners should be sufficient to orchestrate the necessary growth
to make this a successful launch with steady increases in sales over the first
three years.

Operating expenses are based on an assessment of operational needs for a

store of this size. Observations of Boston retail wine shop staffing, direct
experience at Liberty and Star City wine stores, and interviews with store
owners and suppliers are the basis for these projections. Rent is based on
negotiated lease agreement with the landlord. Other estimates are based on
experience in operating a 4,000 square foot Boston storefront business, and
on vendor quotes and estimates.

Collection days should remain fairly short, given the substantial cash
revenues, and standard credit card collection periods.

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6.3 Projected Profit and Loss

The following table presents the profit and loss figures for Vino Maestro.

Pro Forma Profit and Loss

Year 1 Year 2

Sales $924,000 $1,320,000 $1,650,000

Direct Cost of Sales $577,943 $825,633 $1,030,059

Other $0 $0 $0

Total Cost of Sales $577,943 $825,633 $1,030,059

Gross Margin $346,057 $494,367 $619,941

Gross Margin % 37.45% 37.45% 37.57%

Expenses

Payroll $124,430 $125,270 $135,200

Sales and Marketing and Other Expenses $0 $0 $0

Depreciation $18,480 $23,760 $34,650

POS computer software lease $3,000 $3,500 $4,000

Rent $56,093 $77,000 $80,000

Utilities- HVAC and phone/data lines $6,000 $6,600 $7,260

Insurance $6,000 $6,600 $7,260

Vehicle Delivery Expenses $6,000 $12,000 $24,000

Maintenance/Repairs $6,000 $6,500 $7,000

Cleaning/Supplies $6,000 $6,500 $7,000

Rent $23,664 $23,664 $23,664

Leased Equipment $0 $0 $0

Advertising/Marketing $12,000 $24,000 $36,000

Payroll Taxes $19,909 $20,043 $21,632

Other $0 $0 $0

Total Operating Expenses $287,575 $335,437 $387,666

Profit Before Interest and Taxes $58,481 $158,929 $232,275

EBITDA $76,961 $182,689 $266,925

Interest Expense $24,357 $20,743 $16,972

Taxes Incurred $8,333 $34,547 $54,723

Net Profit $25,791 $103,640 $160,580

Net Profit/Sales 2.79% 7.85% 9.73%

6.4 Projected Cash Flow

We are positioning ourselves in the market as a medium-risk concern with

steady cash flows. Accounts payable is paid at the end of each month while
sales are in cash and short-term credit card collectibles. Cash balances will
be used to reduce outstanding line of credit balances, or will be invested in
a low-risk liquid money market fund to decrease the opportunity cost of
cash held. Surplus cash balances during the critical first year of operations
will function as protection against unforeseen changes in the timing of
disbursements required to fund operations.

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Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales $924,000 $1,320,000 $1,650,000

Subtotal Cash from Operations $924,000 $1,320,000 $1,650,000

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 $924,000 $1,320,000 $1,650,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $124,430 $125,270 $135,200

Bill Payments $592,618 $1,076,648 $1,320,626

Subtotal Spent on Operations $717,048 $1,201,918 $1,455,826

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $34,284 $34,284 $34,284

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $751,332 $1,236,202 $1,490,110

Net Cash Flow $172,668 $83,798 $159,890

Cash Balance $242,668 $326,466 $486,356

6.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios
based on the Standard Industrial Classification (SIC) code 5921, [insert code title
here], are shown for comparison.

Ratio Analysis

Year 1 Year 2 Year 3

Sales Growth 0.00% 42.86% 25.00%

Percent of Total Assets

Inventory 13.03% 15.71% 15.47%

Other Current Assets 0.00% 0.00% 0.00%

Total Current Assets 65.24% 74.99% 85.21%

Long-term Assets 34.76% 25.01% 14.79%

Total Assets 100.00% 100.00% 100.00%

Current Liabilities 15.76% 16.32% 15.80%

Long-term Liabilities 44.27% 31.13% 19.67%

Total Liabilities 60.02% 47.45% 35.47%

Net Worth 39.98% 52.55% 64.53%

Percent of Sales

Sales 100.00% 100.00% 100.00%

Gross Margin 37.45% 37.45% 37.57%

Selling, General & Administrative Expenses 34.68% 29.60% 27.79%

Advertising Expenses 0.00% 0.00% 0.00%

Profit Before Interest and Taxes 6.33% 12.04% 14.08%

Main Ratios

Current 4.14 4.60 5.39

Quick 3.31 3.63 4.41

Total Debt to Total Assets 60.02% 47.45% 35.47%

Pre-tax Return on Net Worth 18.37% 47.74% 47.84%

Pre-tax Return on Assets 7.34% 25.09% 30.87%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 2.79% 7.85% 9.73%

Return on Equity 13.88% 35.81% 35.68%

Activity Ratios

Inventory Turnover 8.62 11.23 10.60

Accounts Payable Turnover 9.09 12.17 12.17

Payment Days 27 27 27

Total Asset Turnover 1.99 2.40 2.37

Debt Ratios

Debt to Net Worth 1.50 0.90 0.55

Current Liab. to Liab. 0.26 0.34 0.45

Liquidity Ratios

Net Working Capital $229,987 $323,103 $484,049

Interest Coverage 2.40 7.66 13.69

Additional Ratios

Assets to Sales 0.50 0.42 0.42

Current Debt/Total Assets 16% 16% 16%

Acid Test 3.31 3.63 4.41

Sales/Net Worth 4.97 4.56 3.67

Dividend Payout 0.00 0.00 0.00

Appendix

Sales Forecast

Month Mon Mon Mon Mon Mont Mont Month Mont Mont Mont
1 th 2 th 3 th 4 th 5 h6 h7 8 h9 h 10 h 11
Sale
s

Win 0 $40,0 $45,0 $50,0 $50,0 $60,0 $75,0 $100,0 $125,0 $70,0 $70,0 $75,0
e % 00 00 00 00 00 00 00 00 00 00 00

Spiri 0 $4,00 $4,50 $5,00 $5,00 $6,00 $7,50 $10,00 $12,50 $7,00 $7,00 $7,50
ts % 0 0 0 0 0 0 0 0 0 0 0

Oth 0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
er %

Tota
l $44,0 $49,5 $55,0 $55,0 $66,0 $82,5 $110,0 $137,5 $77,0 $77,0 $82,5
Sale 00 00 00 00 00 00 00 00 00 00 00
s

Direct
Cost Month Mont Mont Month Month Mont Mont Mont
Month 1 Month 3
of 2 h4 h5 6 7 h8 h9 h 10
Sales

$30,3 $36,3 $45,45 $60,60 $75,7 $42,4 $42,4

Wine $24,242 $27,273 $30,303
03 64 5 6 58 24 24

$4,09 $4,91 $10,2 $5,73 $5,73

Spirits $3,279 $3,689 $4,098 $6,148 $8,197
8 8 46 8 8

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtot
al
Direct $34,4 $41,2 $51,60 $68,80 $86,0 $48,1 $48,1
$27,521 $30,961 $34,401
Cost 01 82 2 3 03 62 62
of
Sales

Personnel Plan

Mo Mo Mo Mo Mo
Mon Mon Mon Mon Mon Mon
nth nth nth nth nth Month 12
th 1 th 4 th 7 th 8 th 9 th 10
2 3 5 6 11

Store
0 $8,0 $8,0 $8,0 $8,0 $8,0 $8,0 $8,0 $8,0 $8,0 $8,0 $8,0
Managers/P $8,000
% 00 00 00 00 00 00 00 00 00 00 00
artners

Salespeople 0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-- Full-time %

Salespeople 0 $1,8 $1,8

$0 $0 $0 $0 $0 $0 $930 $0 $0 $0
-- Seasonal % 60 60

Stock/ 0 $2,0 $1,6 $1,6 $2,0 $1,6 $1,6 $2,0 $1,6 $1,6 $2,0 $1,6 $1,640
Delivery -- % 50 40 40 50 40 40 50 40 40 50 40
Full-time

Stock/
0 $1,6
Delivery -- $0 $0 $0 $0 $0 $0 $820 $0 $0 $0 $0
% 40
Seasonal

0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
%

Total
6 6 6 6 6 6 8 8 6 6 6 6
People

Total $10, $9,6 $9,6 $10, $9,6 $9,6 $11, $13, $11, $10, $9,6
$9,640
Payroll 050 40 40 050 40 40 800 140 500 050 40

General Assumptions

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12

Plan
1 2 3 4 5 6 7 8 9 10 11 12
Month

Current
Interest 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
Rate

Long-
term 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00
11.00%
Interest % % % % % % % % % % %
Rate

Tax 30.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00
25.00%
Rate % % % % % % % % % % %

Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Month Month Month Month Month Month Month Month Month Month
Month 7 Month 8
1 2 3 4 5 6 9 10 11 12
$55,00 $82,50 $110,00 $137,50 $77,00 $77,00 $82,50
Sales $44,000 $49,500 $55,000 $66,000 $88,000
0 0 0 0 0 0 0
$34,40 $51,60 $48,16 $48,16 $51,60
Direct Cost of Sales $27,521 $30,961 $34,401 $41,282 $68,803 $86,003 $55,042
1 2 2 2 2
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$34,40 $51,60 $48,16 $48,16 $51,60
Total Cost of Sales $27,521 $30,961 $34,401 $41,282 $68,803 $86,003 $55,042
1 2 2 2 2
$20,59 $30,89 $28,83 $28,83 $30,89
Gross Margin $16,479 $18,539 $20,599 $24,718 $41,197 $51,497 $32,958
9 8 8 8 8
Gross Margin % 37.45% 37.45% 37.45% 37.45% 37.45% 37.45% 37.45% 37.45% 37.45% 37.45% 37.45% 37.45%
Expenses
$11,50 $10,05
Payroll $10,050 $9,640 $9,640 $10,050 $9,640 $9,640 $11,800 $13,140 $9,640 $9,640
0 0
Sales and Marketing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
and Other Expenses
Depreciation $880 $990 $1,100 $1,100 $1,320 $1,650 $2,200 $2,750 $1,540 $1,540 $1,650 $1,760
POS computer
$250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
software lease
Rent $0 $0 $0 $6,233 $6,233 $6,233 $6,233 $6,233 $6,233 $6,233 $6,233 $6,233
Utilities- HVAC and
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
phone/data lines
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Vehicle Delivery
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Expenses
Maintenance/Repairs $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Cleaning/Supplies $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $1,972 $1,972 $1,972 $1,972 $1,972 $1,972 $1,972 $1,972 $1,972 $1,972 $1,972 $1,972
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Advertising/
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Marketing
Payroll Taxes 16% $1,608 $1,542 $1,542 $1,608 $1,542 $1,542 $1,888 $2,102 $1,840 $1,608 $1,542 $1,542
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating $18,00 $24,78 $26,83 $25,15 $24,78
$18,260 $17,894 $24,713 $24,457 $27,843 $29,947 $24,897
Expenses 4 7 5 3 7
Profit Before Interest ($1,781 ($4,114
$644 $2,594 $261 $6,111 $13,355 $21,550 $2,004 $3,686 $6,111 $8,061
and Taxes ) )
($3,014
EBITDA ($901) $1,634 $3,694 $1,581 $7,761 $15,555 $24,300 $3,544 $5,226 $7,761 $9,821
)
Interest Expense $2,174 $2,148 $2,121 $2,095 $2,069 $2,043 $2,017 $1,990 $1,964 $1,938 $1,912 $1,886
($1,186 ($1,552
Taxes Incurred ($376) $118 ($452) $1,017 $2,835 $4,890 $10 $437 $1,050 $1,544
) )
($2,768 ($1,127 ($4,657 ($1,356
Net Profit $355 $3,051 $8,504 $14,669 $29 $1,311 $3,149 $4,631
) ) ) )
Net Profit/Sales -6.29% -2.28% 0.64% -8.47% -2.05% 3.70% 7.73% 10.67% 0.04% 1.70% 3.82% 5.26%

Pro Forma Cash Flow

Month Month Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
10 11 12
Cash
Received
Cash from
Operations
$110,00 $137,50
Cash Sales $44,000 $49,500 $55,000 $55,000 $66,000 $82,500 $77,000 $77,000 $82,500 $88,000
0 0
Subtotal
$110,00 $137,50
Cash from $44,000 $49,500 $55,000 $55,000 $66,000 $82,500 $77,000 $77,000 $82,500 $88,000
0 0
Operations
Additional
Cash
Received
Sales Tax,
VAT, 0.00
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST %
Received
New
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-
free)
New Long-
term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Sales of
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investment
Received
Subtotal
$110,00 $137,50
Cash $44,000 $49,500 $55,000 $55,000 $66,000 $82,500 $77,000 $77,000 $82,500 $88,000
0 0
Received
Expenditure Month Month Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
s 10 11 12
Expenditure
s from
Operations
Cash
$10,050 $9,640 $9,640 $10,050 $9,640 $9,640 $11,800 $13,140 $11,500 $10,050 $9,640 $9,640
Spending
Bill $107,06 $122,41
$277 $8,341 $9,052 $10,162 $30,390 $64,482 $80,408 $23,698 $64,358 $71,975
Payments 5 0
Subtotal
$120,20 $133,91
Spent on $10,327 $17,981 $18,692 $20,212 $40,030 $74,122 $92,208 $33,748 $73,998 $81,615
5 0
Operations
Additional
Cash Spent
Sales Tax,
VAT,
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST
Paid Out
Principal
Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
of Current
Borrowing
Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment
Long-term
Liabilities
$2,857 $2,857 $2,857 $2,857 $2,857 $2,857 $2,857 $2,857 $2,857 $2,857 $2,857 $2,857
Principal
Repayment
Purchase
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Purchase
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $123,06 $136,76
$13,184 $20,838 $21,549 $23,069 $42,887 $76,979 $95,065 $36,605 $76,855 $84,472
Cash Spent 2 7
Net Cash ($59,767
$30,816 $28,662 $33,451 $31,931 $23,113 $5,521 $14,935 $14,438 $40,395 $5,645 $3,528
Flow )
Cash $100,81 $129,47 $162,92 $194,86 $217,97 $223,49 $238,42 $252,86 $193,10 $233,49 $239,14 $242,66
Balance 6 7 9 0 3 4 9 6 0 5 0 8

Need real financials

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
 10 11 12
Starting
Assets Balance
s
Current
Assets
$100,81 $129,47 $162,92 $194,86 $217,97 $223,49 $238,42 $252,86 $193,10 $233,49 $239,14 $242,66
Cash $70,000
6 7 9 0 3 4 9 6 0 5 0 8
$150,00 $122,47
Inventory $91,518 $57,116 $37,842 $45,410 $56,762 $75,683 $94,604 $52,978 $52,978 $56,762 $60,546
0 9
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total
$220,00 $223,29 $220,99 $220,04 $232,70 $263,38 $280,25 $314,11 $347,47 $246,07 $286,47 $295,90 $303,21
Current
0 5 5 5 2 3 6 2 0 8 3 2 5
Assets
Long-term
Assets
Long-term $180,00 $180,00 $180,00 $180,00 $180,00 $180,00 $180,00 $180,00 $180,00 $180,00 $180,00 $180,00 $180,00
Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Accumulat
ed
$0 $880 $1,870 $2,970 $4,070 $5,390 $7,040 $9,240 $11,990 $13,530 $15,070 $16,720 $18,480
Depreciatio
n
Total
$180,00 $179,12 $178,13 $177,03 $175,93 $174,61 $172,96 $170,76 $168,01 $166,47 $164,93 $163,28 $161,52
Long-term
0 0 0 0 0 0 0 0 0 0 0 0 0
Assets
Total $400,00 $402,41 $399,12 $397,07 $408,63 $437,99 $453,21 $484,87 $515,48 $412,54 $451,40 $459,18 $464,73
Assets 0 5 5 5 2 3 6 2 0 8 3 2 5
Liabilities Month Month Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
and Capital 10 11 12
Current
Liabilities
Accounts $102,87 $121,66
$0 $8,040 $8,735 $9,187 $28,258 $61,832 $76,861 $21,561 $61,963 $69,450 $73,228
Payable 0 6
Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal
$102,87 $121,66
Current $0 $8,040 $8,735 $9,187 $28,258 $61,832 $76,861 $21,561 $61,963 $69,450 $73,228
0 6
Liabilities
Long-term $240,00 $237,14 $234,28 $231,42 $228,57 $225,71 $222,85 $220,00 $217,14 $214,28 $211,43 $208,57 $205,71
Liabilities 0 3 6 9 2 5 8 1 4 7 0 3 6
Total $240,00 $245,18 $243,02 $240,61 $256,83 $287,54 $299,71 $322,87 $338,81 $235,84 $273,39 $278,02 $278,94
Liabilities 0 3 1 6 0 7 9 1 0 8 3 3 4
Paid-in $235,00 $235,00 $235,00 $235,00 $235,00 $235,00 $235,00 $235,00 $235,00 $235,00 $235,00 $235,00 $235,00
Capital 0 0 0 0 0 0 0 0 0 0 0 0 0
Retained ($75,00 ($75,00 ($75,00 ($75,00 ($75,00 ($75,00 ($75,00 ($75,00 ($75,00 ($75,00 ($75,00 ($75,00 ($75,000
Earnings 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) )
Earnings $0 ($2,768) ($3,896) ($3,541) ($8,198) ($9,554) ($6,503) $2,001 $16,670 $16,700 $18,010 $21,159 $25,791
Total $160,00 $157,23 $156,10 $156,45 $151,80 $150,44 $153,49 $162,00 $176,67 $176,70 $178,01 $181,15 $185,79
Capital 0 2 4 9 2 6 7 1 0 0 0 9 1
Total
$400,00 $402,41 $399,12 $397,07 $408,63 $437,99 $453,21 $484,87 $515,48 $412,54 $451,40 $459,18 $464,73
Liabilities
0 5 5 5 2 3 6 2 0 8 3 2 5
and Capital
$160,00 $157,23 $156,10 $156,45 $151,80 $150,44 $153,49 $162,00 $176,67 $176,70 $178,01 $181,15 $185,79
Net Worth
0 2 4 9 2 6 7 1 0 0 0 9 1