Café Gostozinho by leader6

VIEWS: 7 PAGES: 43

									                   BUSINESS PLAN FOR:




                              Now
                              and
                              Then

                              April 2007


               Presented to _______________________________


                            Prepared by Joel Poole




Johnson City       Contact Persons - Joel Poole President     (423) 737 6009




                                       1
2
                                Table of Contents
1.0 Executive Summary…………………………………..                     4

2.0 Company Summary…………………………………..                       5
2.1 Company Ownership………………………….. 5
2.2 Start-Up Summary……………………………..                   6

3.0 Business Description………………………………….. 9

4.0 Market Analysis Summary…………………………..                  10
4.1 Market Segmentation…………………………..                 11
4.2 Target Market Segment Strategy………………..          12
4.3 Service Business Analysis………………………              13
4.3.1        Business Participants……………... 14
4.3.2        Main Competitors………………… 16

5.0 Strategies and Implementation Summary…………..          18
5.1 Marketing Strategy…………………………..….19
5.2 Sales Strategy………………………………22
      5.2.1        Sales Forecast……………………… 22
      5.2.2        Daily Revenue Forecast…………… 22

6.0 Management Summary………………………………. 23
6.1 Management Team……………………………….                    23
6.2 Management Team Gaps…………………………                  24

                                                3
6.3 Personnel Plan…………………………………….                  25

7.0 Financial Plan………………………………………….. 27

Appendix A                                                    28




1.0   Executive Summary

          Now and Then will be the premier spot in Johnson City. Now and Then will achieve
          being the premier spot by offering services not currently found in Johnson City. At Now
          and Then our bottom floor is dedicated to past classics, the Goldies but Oldies we all
          love, while our top floor is hot with today’s latest music. Offering two different styles of
          music on two different levels we are keeping the party going for anyone. At Now and
          Then we will provide not only an atmosphere different than any in town but our services
          on an international level will be our major selling point With our international theme we
          have got not only America’s hottest music but the latest music played from around the
          world.

          Our main objectives in developing Now and Then are:

             o Capitalize on the vacancy of international culture in the area
                                               4
            o Launch Now and Then in January 2008 with a highly published opening as college
              begins.
            o Use our Unique Selling Advantage to its greatest ability offering a unique bar and
              an electrifying nightclub to the greatest variety of consumers.
            o To achieve profitability by the end of the second year
            o Be local headquarters for 2010 World Cup

         The keys to Now and Then success of goals:

            o Develop an international coffee house and night club based on personal experience
              and knowledge of international cultures
            o With intense scheduling Now and Thenwill be opened as students return for college



            o By offering something unlike anything else in Johnson City Now and Then with the
              variety of business we do and by offering products of exclusivity to our customers.
            o Now and Then will achieve profit ability after two fiscal years through intense
              marketing and its uniqueness in the area and use this to become the premier spot to
              follow the World Cup in 2010

2.0   Company Summary

        The key elements of Now and Then concepts are:

                                            5
           1. Brazilian themed alcoholic specialties that will appeal to a mass young crowd for
              their newness

           2. Or if it is before and after dinnertime as Now and Then is host to both the older and
              younger crowd.

           3. Or if it is after hours as Now and Then becomes the foremost spot for young adults.

           4. Our goal is to fill a void left in Johnson City for both young college kids and older
              adults.

2.1 Company Ownership

    Now and Then is a sole proprietorship of Joel Poole.

    JP is working on a Bachelors of Social Sciences Majoring in Political Science and Accounting

2.2 Start-up Summary

     Now and Then is seeking a loan for start up purposes for our new nightclub in Johnson City.

     The Funds needed to accomplish goals mentioned above will be $1.0 million.


                                              6
        Now and Then will be utilizing $500,000 of our total start up for the construction of our 2,200
        square foot night club.

Table Start up itemized expenses
Start up Requirements
Expenses
Bar
Bar Seats               20 x $15                        $3000
Bar Supply
      Liquors to have on hand at start up (Cases)
      Vodka
          Smirnoff      3x90                            $270
          Barton        4x80                            $320
          Grey Goose 2x110                              $220
          Brazilian     4x95                            $390
      Rums
          Premium       5x120                           $600
          Premium       4x100                           $400
          Generic       3x90                            $270
      Blends
          Canadian Club 3x75                            $225
          Crown Royal 3x150                             $450
          Seagram 7        2x65                         $130

         Bailey’s     2x150                             $300
         Kahlua       2x175                             $350
         Generic      1x125                             $125
     Tequila
         Jose Cervuo 3x150                              $450
         Cuervo Black 1x180                             $180

                                                    7
          Generic      4x90         $360
          Generic      5x100        $500
   Total Liquor                     $5540

Cash Reserves                       $15,000
Fees, licenses, and permits         $30,000
Initial Marketing                   $5,000
Kitchen                             $4,500
One week of Employee Pay            $6,586
Point of Sale System                $2,000
Tables 20x75                        $1,500

Total Start up Expenses             73,126

Start up Assets Needed
Cash Balance on Start date                   $
Start up Inventory                           $
Other Current Assets                         $
Total Current Assets                         $

Long Term Assets
Building                                     $
Property                                     $
Total Long Term Assets

Funding

Investments
JP                                 $10,000

Other

                               8
Total Investments               $
Current Liabilities
Accounts Payable
Current Borrowings              $
Other Current Liabilties        $
Total Current Liabilities       $
                                $
Long Term Liabilities
Total Liabilities               $
                                $
Loss at Start Up
Total Capital                   $
                                $




                            9
3.0 Business Description

      With the development of the East Tennessee State University Pharmacy School and a rapid
      growth of the university’s general population there continues to be a center for cultural day
      and night life. The Pharmacy and Medical Schools will bring adults from around the world
      to Johnson City and Now and Then will be there to fill the void that has been left in the
      Johnson City day and night life. A strong international exchange program within the
      university will add even more of an advantage to Now and Then as the spot to be.

      Now and Then will be a Brazilian themed American bar. Now and Then offers a relaxing
      atmosphere in that begins in late afternoon that caters to an older crowd downstairs. Upstairs
      the dance floor is hot as today’s hottest music keeps Now and Then as the place to be.
      Serving drinks on both levels with easy access, night time college kids will come to
      experience new music and new alcoholic drinks from Brazil or stick with their old time
      favorites and just enjoy a unique lively atmosphere. Now and Then will operate nearly 12
      hours a day. Opening at 3 for our after lunch happy hours and closing down at 4 on
      weekends after an electric party.

      Features of Now and Then

                  o   Enclosed Pool tables with Johnson City’s only Snooker Table
                  o   Soccer Saturdays and Sundays – La Liga, MLS. CBF, EPL, Bundesliga
                  o   Monthly Brazilian Dinner – Steaks, Chicken, Lamb
                  o   World Wide music selection played

                                              10
4.0 Market Analysis Summary

      The concept of Now and Then was very well received in preliminary
      discussions with younger adults. Now and Then is currently looking at land in
      the downtown Johnson City area along Main St. As a major supplier of
      customers, the university’s population is an important fact to us. As of current,
      the population stands at just over 13,000 students. And of those nearly 2,000
      live on campus. Now and Then will provide a local solution to the lack of a
                                            11
       cultural hang out in Johnson City designed for everyone from college freshmen
       to retired adults. ETSU has always had a large first time freshman enrollment.
       In 2004 there were 1,483.

       Now and Then is looking into a redevelopment of a early 20th Century building
       with a total square footage available to us of 2,200. Located in the Downtown
       Redevelopment District, Now and Then will have a maximum capacity of 300
       people. Though the building’s capacity may seem low, Now and Then will be
       utilizing four different customer groups, further discussed in Market
       Segmentation.


4.1 Market Segmentation

       We see Now and Then as an entertaining nightclub Thursdays thru Sunday.
       Long hours of operation, from mid-afternoon to early morning allow us to lend
       ourselves to many different types of people. We see three major segments of
       people to attract to Now and Then.

              1. College Students – By creating a unique environment that is
                 tremendously appealing towards college students, we are able to
                 secure a natural progression as freshman come to Johnson City and
                 local high school graduates become freshmen at the University.


                                            12
                2. Young Professionals – After being our customers while in college its
                   only natural, we hope to keep our now employed customers by
                   offering them the same great setting they enjoyed in college. We
                   hope to make this group one of our fastest growing areas. With
                   plenty of area set out for dating and talking tables and our atmosphere
                   relaxing we must appeal to this crowd for great afternoon getaways.

                3. Older Middle-aged Adults – Our ‘regulars.’ With our relaxed, open
                   atmosphere and great location in Downtown Johnson City even older
                   adults will find Now and Then their kind of place. Either as a
                   relaxing place to go after work, before or after dinner, or as an early
                   evening of fun meeting other people. And further Now and Then will
                   help make Downtown enjoyable to all ages of consumers.

                4. Light Night Partiers – A sub group of college students but a very
                   securable group, we must provide for them a very happening
                   environment. A younger crowd who are looking to let loose.

4.2 Target Market Segment Strategy

      At Now and Then our strategy is based on giving our customers a one of a kind
      experience. The college student getting away from studying for a second, an older
      adult stopping by to relax on his way home, and a bunch of friends heading out for
      a late night of fun should all find Now and Then a great experience unlike any

                                              13
other in Johnson City and as part of a great night in the new Downtown Johnson
City.

The development and working of our marketing strategy is a key part of our
main goals

       o Create awareness of Now and Then many unique features
       o Push for high word of mouth advertising
       o Stay focused on target markets

At Now and Then we must charge appropriately for the high-end services and
drinks we offer. We are committed to keeping our prices very competitive with
other local bars and nightclubs in Johnson City. To do this we are dedicated to
keeping our costs at a reasonable level while not lowering our high standard of
service or quality of foods.

Part of the experience we offer, is the choices made available to customers. With
this though comes the experienced bar staff we must have and that is reflected in
our higher but competitive pricing.

Even with higher costs to customers we feel all of our menu items will be
reasonably priced and we will have a low priced section to retain as many
customers as possible.


                                        14
      We were also able to find that our average customer will spend between $20 and
      $50 a night. With that we are estimating that the average customer will spend $35.

      Our target customers will gladly spend more than the industry average, as we believe our
      unique atmosphere will keep consumers on site longer. Add in our extended hours and we
      are expecting a high turnover of customers.


4.3 Service Business Analysis

      High-energy themed venues have significantly impacted cities over the past two decades.
      From Time Square New York, San Francisco, to Downtown Atlanta nationwide to Statewide
      improvements in Memphis and Nashville’s night life have also brought them high energy
      night clubs to very high success and rebuilding of their city’s downtown area.

      In our recent market survey we were able to find that most respondents stayed out on
      weekend nights between 4 to 5 hours. We were also able to find that our average customer
      will spend between $20 and $50 a night.

      The typical nightclub’s hours of operation in Johnson City varies greatly. Almost all are
      open till 3:00 AM and all open up by 6:00 PM. Within these time frames a nightclub can
      make anywhere from $3,500 to $25,000, nightly. While in the day the average coffee shop
      can make between $3,000 and $25,000.


                                              15
      In the late evening most of our sales will be coming from many nominal alcohol purchases
      on a very high traffic ratio.

      Nightclubs currently are continuing trends of the past decade in Johnson City as most in
      the market mix a high-energy atmosphere with light shows and popular loud music. At
      Now and Then we also hope to continue to use this trend but we will be featuring music
      not only on Top 40 lists but from across the globe to the underground all exclusive to Now
      and Then in Johnson City.

      Drinking establishments especially nightclubs rely heavily on their primary suppliers. The
      primary suppliers here are beverage suppliers, both alcoholic and non-alcoholic. Without a
      supply of beverages a nightclub loses part, if not all, of its revenue source and its
      reputation can reap even harsher consequences in the long-term. Non alcoholic-drinks are
      just as important as these served with other alcoholic drinks or in the day when alcohol is
      not the preferred drink.

      In Johnson City we looking to secure a supply of beverages from many different suppliers
      including deals to distribute local beers as well.



4.3.1 Business Participants
      Now and Then will be part of a huge industry that is very diverse in its offerings. The
      restaurant and bar industry includes the following types of businesses:

                                               16
o     Locally Operated Bars – Usually appealing to the local clientele, older adults.
    Because of the repeat customers theses bars have a price structure that will usually
    much lower. We are hoping to provide similar service to our older crowd with a
    ‘Happy Hour’ that will allow older customers to stop by and drink as regulars but as
    they stay past happy hour we make our money back. These customers will also
    support us at the pool tables and jukebox.

o     Night Club Complexes – Typically placed along high traffic areas, this concept
    will be our biggest competitor. Admission charges are usually in place though most
    of our competitors may be lower than us as will there price chart of drinks. And
    though there are many in Johnson City we feel our atmosphere and unique
    opportunities will go farther in our customers minds.

o     Casual Dinning – Commonly build on the traditional dinning occasion. Many of
    these have an in house bar and TV’s playing in the lobby or throughout the
    restaurant. Though these are relaxing places to go to watch the game and relax, we
    don’t view them as a direct competitor with us.

o    Chain Entertainment – In general manifested in markets through industry leaders
    Hard Rock Café and Planet Hollywood. Places such as these are high energy with
    an atmosphere that thrives on its hip feeling. May feature live music or celebrities on
    nights as part of its trendy, hip


                                    17
            o     atmosphere. Again we do not view these as a direct competitor and thankfully there
                is not an abundance of these in the Johnson City area.


4.3.2 Main Competitors

      Now and Then competition lies mainly in other casual local nightclubs. Very little of our
      competition currently is from national chain complexes or major chain entertainment
      restaurants and bars. Now and Then will need to effectively compete with local dance clubs
      throughout Johnson City by utilizing its Unique Selling Advantage of there’s nothing else like
      it in the city with its cultural base.

      Our review of the current market place concludes that there are ten entertainment venues that
      can be considered direct competition to us. We also realize that there are many other indirect
      competitors in Johnson City as we compete for every entertainment dollar

      Our main competitors:
          Nashville Sound
          Hours of Operation:
          Days:
          Capacity:

           New Beginnings
           Hours of Operation:

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          Days:
          Capacity:

          Rafters
          Hours of Operation:
          Days:
          Capacity:

          Second Level
          Hours of Operation:
          Days:
          Capacity:

           The Planet
           Hours of Operation:
           Days:
           Capacity:
5.0 Strategy and Implementation Summary

    In order to fulfill our Unique Selling Advantage and achieve our first goal we and our
    employees must have a full understanding of abroad cultures. Our main tactics will
    include a knowledge intense hiring to ensure our employees have a working knowledge
    about most importantly Brazil along with many other countries. Also we will use life
    experiences gained from a planned trip to Brazil and life experiences from a past in

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Brazil. With this knowledge in hand we are making a coffeehouse and nightclub with as
much Brazilian culture as possible without turning other customers away by making them
feel out of place. We also want to allow other international customers to feel at home
even if they don’t call Brazil home.

It is important that as a new coffeehouse and nightclub we open up at the right time.
Now and Then is scheduled to in January 2008. To meet this time is crucial for us to get
started on the right side of the balance sheet. By opening in January we open just as
college students are returning to college for second semester. With an intense marketing
to students a month before opening we will be able to hype the opening as students leave
for winter break. This will leave the campus in much anticipation of the newest club in
Johnson City for when they return to classes. It is important for this reason then that we
keep an intense construction schedule to make sure we are ready. Opening to late in the
semester can mean we miss to many days of our seasonal customers and with many our
customers on a fixed income while school is in session the longer we wait the less money
customers have to spend. If we open to early our appeal will drop, as many of our
customers will not be in town yet our core customers will get to see us. This may lead to
us having a bad reputation for not being the spot.

Now and Then is hoping to be fully operational and well known within a year of opening.
As a major marketing achievement we are hoping to use the 2010 World Cup to get
unknown customers to know us as a great soccer hang out. While customers are enjoying
themselves in front of the game, we hope that many of them will also enjoy any number
of one of our international alcoholic drinks. And after the games we are hoping that they

                                         20
     will stay after the game for more drinks and partying. With our slower season in the
     summers we see the World Cup as a boost in the off-season.


5.1 Marketing Strategy

     In a high growth area such as Johnson City there is an annual influx of new residents.
     From the many new college students to adults moving for their job, Johnson City has a
     large influx of new customers yearly. This is even true for the state of Tennessee in
     general.

     Many new residents, as well as many existing ones, are members of clubs in other
     markets. As demonstrated earlier Now and Then is a place for all. Our international
     products will be an inherent part of our image in our marketing campaigns.

     Advertising budgets and event promotions are currently on an ongoing process of
     discovering major ideas. Any marketing and event promotions will promote the
     international styles of Now and Then. After an initial marketing blitz to promote our
     opening and Grand Opening, Now and Then will be marketing its cultural offerings
     unlike any in the Johnson City area as the premiere spot in Johnson City.

     Now and Thenwill be depending on word of mouth for most of our marketing. During
     our opening and Grand Opening we are looking into using radio advertisements as part of
     our marketing blitz to get known. Other regular methods of marketing are flyer

                                              21
distribution and small use of radio for our older adult crowd. To bring in a small market
of tourist we will also utilize local hotel advertisements in rooms.

Currently we see the following as our approach to marketing over the next two years:

        o General Advertising – A more intense marketing setup will be developed after
          opening. Before opening and for the first two years in order to keep costs
          low, our general advertising will be in making Now and Thenvery appealing
          and ensuring our customers have a positive word of mouth.
        o Grand Opening – Most of our first year’s marketing budget will go to this
          event. It is our first impression to our customers and in an industry that
          demands an electric atmosphere it is important to our immediate future. As of
          this printing no events have been planned but development of a major
          weekend has been started.
        o Direct Marketing – We will be marketing to hotels all across Johnson City.
          Most of our hotel marketing will be in the summer in coordination with East
          Tennessee State University’s monthly orientations to get an upper hand on our
          competition. During orientation many future university students come to the
          area. During these we hope to bring new customers in during our off-season
          but more importantly we hope to get an early step on our competitors by
          getting our name out to many future students.

Our Grand Opening Event will be held in the first week of February 2009 to launch Café
Gostosinho. A radio-advertising blitz will precede our opening. First during the last two

                                         22
weeks of Fall Semester to create a buzz on campus and over break peaking when we
begin the second media blitz three weeks before opening. Throughout both of the ad
blitzes we will be pushing our opening as an event like nothing in Johnson City. During
the first we will give little information just to allow future customers to push us through
gossip of what is coming to town. While in our second we will push our international
theme, long hours, and choices of products unlike anything in Johnson City. Also in our
second Advertising blitz we will use multiple contests on radio to give out free passes i.e.
VIP Tickets. The opening date is very tentative in conjunction with construction start
and finish dates. The complete budget for advertising of this has not been solidified as of
yet. Integrated into our ads at this time will be our schedule of festivities leading up to
Grand Opening Friday. All activities will coordinate with the celebration of Carnival in
Brazil.

The coffee shop will be advertising very informally with its own flyer campaign pushing
our long hours, many coffees, and relaxing place to get away for a sec or study in an open
atmosphere. With our initial opening we will advertise on the radio to attract our non-
student customers.

To boost awareness of us as a coffee shop our long-term goal is that we will be
sponsoring Buccaneer Athletics Soccer Program.

Our achievement of a good advertising campaign will be measured for the 90 days
following the Grand Opening. During the 90-day period we will be randomly polling our
customers on how they heard us and when was the last time they remember hearing our

                                          23
advertisements. As summer approaches our survey will be rapping up and concurrent to
what was found budget adjustments will be made for the 6-month future. As summer
begins we will try our summer marketing campaign as core customers leave for break.

For the first 90 days after our Grand Opening we will be running a small radio campaign
mostly on Jammin’ 92.3 and WQUT 101.5, both offer us access to our targeted market.
Our major advertising campaign will be based on distribution of flyers. Flyers will
announces our guest of the weekend, drink of the weekend, and drink specials.

Through a periodic radio teaser campaign we hope to obtain our target market’s
intellectual ownership as the premier nightclub in Johnson City. As of yet there is no
solid budget for advertising but it is an expense we know we cannot do without. The
Director of Marketing we be in charge of requesting a budget and polling customers
properly.

Different than all other customers, hotel guest may only come once. But for the tourist
looking for something to do we will be there. We will be advertising within many of the
more popular hotels in Johnson City to catch an ever-growing tourist population in
Johnson City. Overall advertising should be cheap and low maintenance. In room,
informal generalized flyers, should allow guest wanting a nightlife plenty of information
on us. Or morning customers wanting a cup of coffee, or a local place or just a place to
come different from most will find us appealing.



                                         24
5.2 Sales Strategy

5.2.1 Sales Forecast
       See Appendix A
5.2.2 Daily Revenue Forecast
       See Appendix A




                               25
6.0 Management Summary

    The upper management team is an essentially close group. Three of them are going to
    college together. The president and a vice president have been roommates and neighbors
    for the past 4 years. Two vice presidents have been dating for the past 5 years. While
    our other vice-president has been working with one of the vice president for the past 2
    years in a high customer service business.


6.1 Management Team

    JP, President. J is fulfilling a life long dream in starting and running a company. J is
    currently working on a Bachelors of Social Sciences. Majoring in Political Science and
                                             26
Accounting he is expecting to graduate in Spring 2008. Specific responsibilities for J
will be Front Office.

TK, Vice President. T is working on a Bachelors of Science in Construction Engineering
with a minor in Spanish from East Tennessee University. T is in his second year of
managing the reception area of a hotel and daytime employees. Past jobs include
management experiences in a bakery. T will be responsible for employee management
and Liaison on the building construction before open and building maintenance once
opened. Day-to-Day activities will be almost completely under T’s control.

SZ, Vice President. S is currently working on a Bachelors of Business Administration
majoring in Marketing. S has been working in the hotel hospitality business for the past
two years providing customer service on a high scale to many guest of Johnson City. S
will be in charge of Marketing with flyers and radio.

RS, Bar Manager. B has more than x years in managing a bar and bar tending for older
cliental. B is eagerly awaiting the opportunity to get back in to the bar scene. B currently is
working her x year at a hotel providing customer service. B will be in charge of all bar
activities, inventory, organizing, and of the bar. B will also be in responsible for hiring the
right employees in conjunction with T.

A kitchen manager has yet to be filled at this time. This position along with many more non-
management jobs is being openly sought.


                                          27
6.2 Management Team Gaps

     We believe we have a solid team of managers and currently we are covering all the major
     departments. However, we do realize that we may not have our hands on specific
     knowledge that may be required to accomplish pre-opening and opening phases of the
     venture. It is for this that we may find it beneficial from the retention of an industry
     consultant. The services of a consultant are being looked into for the pre and post opening
     of Café Gostosinho. We are hoping to retain consultant services for two years beginning
     in late spring 2008.




6.3 Personnel Plan
                     Day          Position        Quantity   Rate   Avg Hrs   Total
                     Monday       Security        1          $10    5         $50
                                  Bartender       4          $6     6         $144
                                  Clean up Day    2          $6     8         $96
                                  Clean up Ngt    0          $0     0         $0
                                  Misc            0          $0     0         $0

                     Tuesday      Security        1          $10    5         $50
                                  Bartender       4          $6     6         $144
                                  Clean up Day    0          $0     0         $0
                                  Clean up Ngt    2          $6     4         $48
                                  Misc                       $                $0


                                                 28
Wednesday      Security        1   $10   5   $50
               Bartender       4   $6    6   $144
               Clean up Day    2   $6    8   $96
               Clean up Ngt    0   $0    0   $0
               Misc            0   $0    0   $0

Thursday       Security        5   $10   7   $350
               Bartender       6   $6    5   $180
               Clean up Day    0   $0    0   $0
               Clean up Ngt    2   $7    8   $112
               Misc            0   $0    0   $0

Friday         Security        5   $10   7   $350
               Bartender       7   $6    5   $210
               Clean up Day    0   $0    0   $0
               Clean up Ngt    2   $6    8   $96
               Misc            0   $0    0   $0

Saturday       Security        5   $10   7   $350
               Bartender       7   $6    5   $210
               Clean up Day    2   $6    8   $96
               Clean up Ngt    0   $0    0   $0
               Misc                $         $0

Sunday         Security        4   $10   5   $200
               Bartender       5   $6    5   $150
               Clean up Day    2   $6    8   $96
               Clean up Ngt    0   $0    0   $0
               Misc                $0        $0

Weekly Total                                 $3,222


                              29
   Salaried Staff

   Position          Salary        Yearly    Weekly Total
   Manager 1         Oper Prtnr    $50,000   $961
   Manager 2         Bar Manager   $40,000   $769
   Manager 3         PR Manager    $40,000   $769
   Entertainment     DJ            $75,000   $865
   Total Salary                              $4325  $4325
     Total Weekly                                   6586
          Staff                                     $7547




6.3.1 Employee Benefit Cost



                                     30
In our first year we will be shying away from the use of many employee
benefits. By the end of our second year we hope to have employee benefits
offer able to future employees and retro payable to current, quality, long-term
employees.

The cost of employee benefits will still continuously be looked into.




                                 31
7.0 Financial Summary

    Now and Thenbusiness will be based around three markets previously discussed in 4.0.
    From this we expect to have our sales come from two major operations. First will be the
    café coffee and bakery during the day. Followed by our night sales of alcoholic drinks.
    Other smaller sales will come from pool table and jukebox revenue, but on a much
    smaller basis.

    The sales of coffee and bakery items will be smaller than our alcohol sales, but profit
    margins are expected to be higher for the café’s day time operations. Much higher
    customer counts and repeat customers at the bar will offset higher nighttime operations.


                                             32
Higher costs are expected during night due to more employees working and premium
entertainment.

While actual financial numbers or predictions are not yet available, we are aiming to keep
cost as low as possible. Our overall goal is to get cost down and revenue up to maintain a
twenty-five percent profit margin by the end of the second year. Through the first year
of operations we are loosely predicting a small profit on sales of $1.5 million. Our
largest cost would be personnel at close to $400,000.




                                     Appendix A

                                         33
                                  Table of Contents


Financial Data                                        29
   Balance Sheet                                      29
   Sales Forecasts                                    30
   Net Income Statement                               30

Proposed Property Value and Statistics                31
   Map                                                31
   Area Demographics                                  32
   ETSU Statistics                                    32

Two year Time Line                                    34

Provisional Menu                                      35

Biography of Management                               36

Bibliography                                          38

Complete Market Research Survey                       39

Architectural Renderings of Building                  44

                                         34
                                Financial Statements

Balance Sheet FY2009
Assets                                   Debits         Credits
Current Assets
    Accounts Receivable
    Cash and Cash Equivalents                 99,986
    Inventory
    Prepaid Expenses
Long-Term Assets
    Property and Equipment                    400,000
    Goodwill
Total Assets

Liabilities
Current Liabilities
    Short Term Debt
    Accounts Payable

Long Term Liabilities
   Long Term Debt                                         400,000

                                         35
Owner’s Equity
    Owner’s Equity
    Retained Earnings                                   74,986
Total Liabilities and Owner’s Equity


Weekday Forecast
           Bakery Items       Alcohol Sales     Total
 Monday         200                500         1,450
 Tuesday        300                650         1,450
Wednesday       300                750         1,450
 Thursday       300               4,000        4,700
  Friday        500               5,500        7,000
  Totals       1,600             11,400       16,050

Weekend Forecast
          Bakery Items Alcohol Sales            Total
Saturday      300          5,000              5,750
Sunday        100          2,500              2,900
Totals        400          7,500              8,650

Miscellaneous Item Forecast

                                              36
                 Admission     Juke Box     Totals
Thursday           1,500                    1,500
Friday             1,000                    1,000
Saturday           2,050                    2,050
Sunday              750                      750
Total              4,500         300        6,000

Net Income Statement FY 2009
Net Income                                Debts        Credits
                                          $            $
     Sales                                   1,625,000
     Less: Returns                                            14,625
Cost of Goods Sold                                           480,250
Gross Profit                                1,130,125

Selling, General Expenses
     Salaries                                                255,000
     Advertising Expenses                                     75,000
     Loan Repayment                                          280,000
     Bad Debts                                                16,250
     Admin Expenses                                           20,000
     Interest Expense                                        380,000
Operating Income (Loss)                         103,875

                                           37
Other Income
    Interest Income                                    0
Income from Continuing Operations        103,875

Taxes                                              28,889
Net Income                                74,986
Profit Margin                              4.6%




                                    38
Map of Proposed Property




           39
Now and Then is hoping to be located on the front third of the Lot 1. Lot 1 is a 3.3 acre parcel
of land and we are hoping to buy the front third




                                   University Area Demographics
                                                    1 Mile             3 Mile
                    Population
                              2000                     8,805           41,874
                             Current                   8,983           42,541
                        2010 Estimation                9,102           43,341

                    By Age
                              Under 18                  15.4            18.8
                               18-24                    27.9            13.5

                                               40
                 25-34                 13.4          13.9

       Martial Status
            Never Married             48.3%      31.3%
             Now Married              28.5%      41.8%
               Divorced               6.4%       8.2%
                 Other                16.8%      18.7%

       Residency
            Yearly Turnover           25.5%       22.7%
        In Residence for 5+ Years     31.5%   34.3%




                         ETSU Statistics

                    ETSU Enrolled Students
2003                                   11,395
2004                                   11,635
2005                                   11,656
2006                                   Coming Soon


                                41
Enrollment numbers do not include the Medical Schools Residency Physicians or Medical
Students. The Medical School has approxatmly 400 students.
Another 100 will also be enrolled in the next year or two for the Pharmacy School.


                           ETSU On Campus Population
                   2002                                            2,109
                   2003                                            2,101
                   2004                                            2,058
                   2005                                            1,840




                                          42
             Bibliography


           www.Mitcox.com

 Johnson City Chamber of Commerce

http://jcmpo.org/traffic/count_table.html

           maria-brasil.com

        www.tbr.state.tn.us

             www.etsu.edu

        ETSU Fact Book 2005




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