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1. EXECUTIVE SUMMARY 5
1.1. Company description 6
1.2. Marketing Strategy 6
1.3. Organizational and Management Plan 6
1.4. Execution plan 6
1.5. Financial Forecast 6
2. BUSINESS DESCRIPTION 7
2.1. PERSONAL BACKGROUND 7
2.2. INVOLVEMENT OF THE BUSINESS 7
2.3. NATURE OF THE COMPANY 7
2.4. NAME OF THE COMPANY 7
2.5. COMPANY LOCATION AND ADDRESS 8
2.6. START OF BUSINESS OPERATIONS 9
2.7. INDUSTRY 10
2.8. GROWTH STRATEGY 11
2.9. JUSTIFICATION OF THE BUSINESS 12
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2.10. GOALS OF THE COMPANY 12
CHAPTER THREE 13
3. MARKETING PLAN 13
3.1. INTRODUCTION 13
3.2. Marketing area 13
3.5. MARKETING SHARE 16
3.6. PROMOTION 17
3.7. DISTRIBUTION STRATEGY 18
CHAPTER FOUR 19
4. ORGANIZATION AND MANAGEMENT PLAN 19
4.1. INTRODUCTION 19
4.3. PERSONNEL, NUMBER, AND DUTIES 20
4.4. RECRUITMENT, TRAINING AND PROMOTIONAL PROGRAM 21
4.5. LICENSES, PERMITS AND BI-LAWS 23
4.6. SUPPORTIVE PROFESSIONAL AND SERVICES 23
4.7. REMUNERATION AND INCENTIVES: 24
CHAPTER FIVE 26
5. OPERATIONAL PLAN 26
5.1. PRODUCTION FACILITIES AND CAPACITIES 26
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5.2. PRODUCTION STRATEGY 28
5.3. SWOT ANALYSIS 29
CHAPTER SIX 30
6. FINANCIAL FORECAST 30
6.1. ASSUMPTIONS 30
6.2. PRE-OPERATIONAL COSTS 31
6.3. BALANCE SHEET 31
6.4. BREAK-EVEN LEVELS 31
6.7. DESIRED FINANCING 32
6.8. RETURN ON EQUITY 32
6.9. RETURN ON INVESTMENT 32
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1. EXECUTIVE SUMMARY
The restaurant industry is a large sector within the hospitality industry because many
countries' economies depend on it. In today's world, increasing workloads and decrease in free
time, everyone is in a rush. Thus, time kept aside to cook or eat is very limited. Many people,
therefore, require fast foods to satisfy their need for a wholesome, fulfilling meal. Little Burros
Pizza Co. can tap into such opportunities to provide our community with the reassurance that
they can obtain fulfilling food, on-demand, without breaking the bank. At Little Burros Pizza,
our strategic objective is to embrace the diversity of our community by offering a wide range of
options to our customers no matter what diet or lifestyle they follow. We will provide options
that are vegan, keto, and gluten-free friendly. We strongly believe you do not have to sacrifice
experiencing great food with family and friends due to any dietary restrictions you may have.
Market research indicates that there is a significant need for quality and fulfilling food
within this region. The high demand for fast food services facilitates the starting up of companies
such as Little Burros Pizza Co. to satisfy the rising demand and generate income for the
company. At Little Burros Pizza Co., we set the bar high for ourselves because we understand
our clients and know what they desire in a fulfilling meal. We believe that by employing our
expertise and exceptional know-how, we can exceed our clients' expectations for superlative
Little Burros Pizza Co. is a start-up eatery based in Moreno Valley. At Little Burros
Pizza, our strategic objective is to embrace the diversity of our community by offering a wide
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range of options to our customers no matter what diet or lifestyle they follow. Little Burros Pizza
Co. will offer meals such as Pizza (Vegan, Keto, Gluten-free options), Pasta, Wings, Salad,
Appetizers, Desserts, and Soft drinks. We live in the hidden springs neighbourhood and see the
potential of what this business can offer to uplift the community of Moreno Valley. We see
opportunities that are available by having a speciality eatery that provides quality food at an
affordable rate. Life paces fast and is often unpredictable. We want to provide our community
with the reassurance that they can obtain fulfilling food, on-demand, without breaking the bank.
In today's world of increasing workloads and decrease in free time, everyone is in a rush.
Thus, time kept aside to cook or eat is very limited. Fast foods restaurants offer a solution to this
problem. A fast-food restaurant, also known as quick service restaurant within the industry, is a
specific type of restaurant that serves food cuisine and has minimal table service. A blue-collar
worker can grab a quick bite from any fast food restaurant around his business within 10-15
Little Burros Pizza Co. competes in the restaurant industry, which highly depends on
high expertise by kitchen staff. The key to Little Burros Pizza Co.'s success will undoubtedly be
our commitment to exceeding our clients' expectations for superlative quality, timely response to
clients' requests, client satisfaction, and a large market segmentation through the identification of
several niche markets and implementation strategies.
The restaurant industry is an upward growth industry because of a relatively healthy domestic
economy over the last several years. At Little Burro's, we live in the hidden springs
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neighbourhood and see the potential of what this business can offer to uplift the community of
Moreno Valley. We see opportunities that are available by having a speciality eatery that
provides quality food at an affordable rate. Life paces fast and is often unpredictable. We want to
provide our community with the reassurance that they can obtain fulfilling food, on-demand,
without breaking the bank, as well as maximize profits. We are targeting families and individuals
who are food lovers. Our menu will have consistent offerings; however, we will be offering
seasonal or limited-time additions to the menu that will keep everyone's interest peaked and keep
the conversation going amongst our patrons.
Over the years, restaurants have stepped up big time going from businesses driven by pen and
paper to tech-survey spots that know just how crucial digital marketing is to make a restaurant
stand out and grab attention. Nowadays standing out requires more than great food and guest
experience. With more than one million restaurant locations in the U.S., restaurateurs know just
how important marketing is to attracting first-time customers and turning them into regulars.
Little Burros Pizza will use Social media platforms, Earned Media and P.R. This forms the basis
of our marketing initiative to capture our clients' attention and keep them coming back for more.
Competition is fierce in the restaurant industry. Hungry customers have a giant list of options
to choose from; also, the rapid growth of restaurant chains is making it increasingly difficult
for locally-owned pizza shops to get a piece of the pie. Little Burros Pizza's competitive
advantage is that we will provide our community with the reassurance that they can obtain
fulfilling food, on-demand, we will also offer our clients with tasty and delicious meals as
per their preferences.
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1. BUSINESS DESCRIPTION
1.1. BACKGROUND INFORMATION
Kevin Rogers & Nicholle Recendez will run Little Burros Pizza Co. We live in the hidden
springs neighbourhood and see the potential of what this business can offer to uplift the
community of Moreno Valley. We see opportunities that are available by having a speciality
eatery that provides quality food at an affordable rate. As we were trying to decide what we
would like to name our restaurant, we were brainstorming on what currently brings our
community together and without hesitation came to the Little Burros. They are unique and
fascinating beings that bring joy to those who live within and outside of the neighbourhood.
They are the perfect unifiers to a beautiful experience and our inspiration for how we want
our business to be among those around us.
1.2. INVOLVEMENT OF THE COMPANY
Our strategic objective is to embrace the diversity of our community by offering a wide
range of options to our customers no matter what diet or lifestyle they follow. We will
provide options that are vegan, keto, and gluten-free friendly. We strongly believe you do not
have to sacrifice experiencing great food with family and friends due to any dietary
restrictions you may have. This will, in return, improve eatery services, maximize profits and
allowing expansion in the future.
1.3. NATURE OF THE BUSINESS
Kevin Rogers & Nicholle Recendez will manage the business because of the following:
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Demonstrated long term success in the restaurant industry.
Our team is highly experienced and well knowledgeable in financial management, Leadership,
Decision making for such a business requires high expertise and extensive consultation.
NAME OF THE BUSINESS
The business name is Little Burros Pizza Co.
1.4. BUSINESS LOCATION AND ADDRESS
Little Burros Pizza Co. will locate in Moreno Valley.
The business will operate under the following address
Little Burros Pizza Co.
1.5. COMMENCEMENT OF BUSINESS OPERATIONS
The management has extensive experience in the restaurant industry, and thus the business will
commence as soon as all plans are complete.
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In today's world of increasing workloads and decrease in free time, everyone is in a rush. Thus,
time kept aside to cook or eat is very limited Fast foods restaurants offer a solution to this
Little Burros Pizza Co. wants to bridge this gap by providing an eatery with seasonal menus that
will keep everyone's interest peaked and keep the conversation going amongst our patrons in
Moreno Valley community. We will monitor and engage with our clients from social media
talking about our services. Through our platforms and tools such as Google alerts and Social
mentions, we will be transparent and open to feedback and criticism to avoid negative press and
remain polite and authentic in any of our online conversations.
Business rules and regulations
Little Burros Pizza Co. uses these rules in its operations:
i. Offering best and fulfilling foods is crucial.
ii. Efficiency is key to client satisfaction
iii. Understanding the client is as important as the service offered to the client.
iv. Ensure client satisfaction by fulfilling their needs and solving their nutritional
problems or offer the best advice.
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Little Burros Pizza Co. falls under hospitality service providers in the restaurant industry, which
is a contributor to the economies of most countries of the world. The restaurant industry
continues to boom and doubles in size, which, in turn, creates opportunities for entrepreneurs and
start-up companies like Little Burros Pizza Co. to thrive.
Future of the industry
With the increased demand for hospitality providers, the need for more restaurants and eateries is
on the rise. The restaurants' industry seems to grow also because of the need to be efficient and
timely delivery of restaurant services at the convenience of the client. At Little Burros Pizza, we
are targeting the northern – central side of Moreno Valley.
1.7. GROWTH STRATEGY
Growth is being driven primarily by the availability of clients, increasing satisfaction, and
wholesome, fulfilling meals. Growth is achieved by providing our clients with the best and
fulfilling meal experience using our high expertise in the food sector. Due to the increasing
competition in the restaurant industry, most eateries need to understand their clients better. By
introducing, consulting services and carefully listening to our clients before offering services, our
clients will experience increased better service delivery.
1.8. JUSTIFICATION OF THE BUSINESS
The research carried on the area justify the suitability of Moreno Valley for the intended eatery.
This is due to the following reasons;
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i. Demand: There is high and on the rising demand for eatery services in Moreno
ii. Increased working population: Due to full-time working jobs, many people lack time
to prepare their meals, and due to that they prefer to go to fast-food restaurants for
2.9.1 Critical Success Factors
The critical success factors in the industry are:
Location: We will conveniently locate Little Burros Pizza Co. in Moreno Valley where it is
easily accessible to its target clients.
Service factors: One of the primary drivers of excellent service is that Little Burros Pizza offers
Pizza (Vegan, keto and gluten-free options), Pasta, Wings, Salad, Appetizers, dessert and soft
drinks to their clients at their convenience.
Client remote support: Our clients enjoy 24/7 customer support to help them in solving their
Price: Price is a critical factor that clients consider in ascertaining the overall value of an
offering. We will provide quality food at an affordable rate, giving you the best value for your
Annual sales and market sales
Little Burros Pizza will take the following steps to estimate annual sales.
Step 1: Determine the number of annual clients. Little Burros Pizza Co. will have.
Little Burros Pizza Co. target is 15% of Moreno Valley clients within 12 months of operation.
Step 2: Based on the 15% of clients, what will Little Burros Pizza Co.'s annual sale be?
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We are projecting 25% growth at the end of 2021, followed by a 45% growth after that.
Service revenues: Evidence provided earlier states that clients in need of eatery services spend
around $50 per day per client.
2.9.2 Marketing Objectives
Establish a strong brand recognition with a cross-cultural approach towards eatery
Establish a strong defensive position in the restaurant industry;
Maintain a high level of client service excellence
GOALS OF THE BUSINESS
a) Maximize profit and satisfy clients and their needs
b) Win clients' loyalty
a) Provide the best and quality services to our clients
b) To increase company growth by 30%.
2. MARKETING PLAN
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Marketing our service-oriented business requires establishing a reputation for expertise and
excellence. It starts with our known contacts who are in positions to recommend us and make
referrals to us and continues with long-term efforts to develop recognition among other
professionals within the eatery service fields. Not only does this enable us to provide a more
intimate and authentic experience, but it also allows a level of service, quality, and luxury not
offered by other eateries. We appreciate that you want a once in a lifetime experience, and Little
Burros Pizza Co. delivers with the reassurance that our community can obtain fulfilling food, on-
Little Burros Pizza targets the northern – central side of Moreno Valley.
Some essential competition from the likes of One-of-a-kind made to order gourmet pizza shop
restaurant takes 60% of the significant eateries located in Moreno Valley and mostly offer their
services at relatively costly rates.
To ensure healthy competition, Little Burros Pizza Co. will use the following strategies:
We will offer fair prices, which shall fit with the first-class of the services offered
Online support services being available 24/7.
We are maintaining a close relationship with our clients.
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We will collect views from clients about their feeling in the direction of the meals we
offer, and if they need an alternative or help to suit their needs.
2.3. MARKETING SHARE
Research suggests that competitors take 45% of share in the total market area in Moreno Valley.
Little Burros Pizza Co. looks forward to changing these figures and occupy 35% in a year with a
target market share up to 50% in Moreno Valley and above 75% market share in the United
States. We will execute this through the right advertising blend, which includes;
Flexible pricing of service rates.
Highly effective service delivery.
We are providing on-time responses to our clients' demands.
Exceptional customer service
This is to retain and enhance market share, assembly opposition, maximizing income, reaching
targets return on investment, and for survival.
(a) Public Relations Marketing
A Public Relations strategy is the most cost-effective of all promotional services. This strategy
will involve a variety of programs designed to maintain or enhance our company's image and the
meals we offer. This will be purposely to attract clients who might need our services and
convincing them that our services are only the great in phrases of rate, fulfilling, and convenient.
(a) Social Media Marketing
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Social media marketing will involve the sharing of our services through different social media
platforms to reach more clients. For example, through Facebook Pages, Twitter, Instagram, and
WhatsApp showing our services.
(b) Earned Media Marketing
Little Burros Pizza will use Earned media to enable our brand to reach a wider audience. We will
generate earned media through cultivating influencer marketing, participating in industry trade
shows, and engaging our fans and advocates. We take our client satisfaction very seriously, and
we study the nutritional value and health impacts of our meals before making them for our
clients' consumption. You can trust that we have done our research to ensure that your health is
of priority when you take our meals, and also we give you the best value for your hard-earned
It will also provide;
Excellent customer relations.
Treat each client with loyalty.
Fulfil their requirements by offering advice and guidance courteously and promptly.
3. ORGANIZATION AND MANAGEMENT PLAN
Five guiding principles support our vision:
o Customer satisfaction: working together for a common cause,
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o Teamwork: working together for a similar purpose,
o Growth through efficient provision of best and fulfilling meals,
o Accountability: delivering on commitment,
o Diversity bridges cultural gaps enhances collective wisdom, and improve reliability, and
o Service and approachability: caring for clients.
Skill Profile and Gaps in Management Team
The following skill profile depicts the most important skills required at the Little Burros Pizza
Co. team level of the company and where the gaps exist.
Founder X O
Department 1 X X X X
Department 2 O
X= position filled, O= position vacant
Significant gaps exist in the management team: the marketing managers and restaurateurs. We
will outsource marketing managers and restauranters.
3.2. PERSONNEL, NUMBER, AND DUTIES
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General Advisory Board
1. General Manager
Primary Role: To provide advice for service delivery to increase efficiency and to help shape
Little Burros Pizza Co.'s approach towards finances and expenditure in the restaurant industry.
Primary Role: To manage procurement, movement, and storage of materials, parts, and finish
inventory through the organization and its marketing channels.
3. Marketing manager
Primary Role: To provide advice on public relations marketing campaigns and growing clients'
Little Burros Pizza Co. wants everyone to play a pivotal role in service delivery. We intend to
remain as customer-centric as possible to hasten the decision-making process and to react
promptly to urgent and emergency calls.
3.3. Operations Plan and Service Development Plan
Little Burros Pizza Co. operating model and procedures for the company:
General Approach to Operations
One of the biggest challenges in operating an eatery is that clients purchase meals at very high
rates. Therefore, both backstage (behind the scenes) and the front stage (what the clients
experience) are critical.
Back Stage (Behind the Scenes Operations Activities)
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o Staff Selection: Staff will be carefully selected. Along with the skills they require
to perform their job, team members must be able to relate to clients in a
professional, thoughtful, and caring manner.
o Motivation: Our human resources strategies will strive to create an environment
in which people are comfortable being themselves, information is transparent, and
personal and organizational values are aligned.
o Emergency plans: Emergency action plans, policies, procedures, and processes
will be established and documented in the operations manual.
o Operations Manual: We will prepare an operations manual to document and
articulate the day-to-day operational procedures of the company.
o Code of ethics
o Financial administration manual
Front stage (What the Clients Experience)
Customer care: They will be available to answer or fulfil clients' requests and
offer consultation services with client demands.
Promotion: Each week, the company will provide meal offers like discounted
prices for our meals to our clients to promote our eatery.
Menu: Our menu will have consistent offerings; however, we will be offering
seasonal or limited-time additions to the menu that will keep everyone's interest
peaked and keep the conversation going amongst our patrons.
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3.4. RECRUITMENT, TRAINING AND PROMOTIONAL PROGRAM
Training will familiarize the personnel with the process and give them all of the essential skills
like communique, public relations, and hands-on abilities to have the know-how of excellent
service delivery and enhance teamwork. It may even allow them to:
Have enthusiasm while dealing with clients.
Borrow ideas from others.
Use competitors as their lever
The managers and highly experienced staff will do this training within select premises. The
employees will also be allowed to attend seminars for better service delivery outside the business
We will recruit our staff to identify the right and qualified and registered workforce from the
restaurant industry. We will use different ways, like:
This process aims at improving our service delivery.
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All employees in the company who work hard towards the success of the company shall be
rewarded. The best staff on service delivery and commitment shall be promoted and rewarded.
3.5. LICENSES AND BI-LAWS
Permissions will give authority to operate within Moreno Valley.
The business will use bi-laws during its operations:
Little Burros Pizza Co. will use suitable work stations which ensures a conducive working
environment for excellent service delivery.
3.6. REMUNERATION AND INCENTIVES:
The business shall use the following remunerations:
(a) Working hours
All employees will enjoy flexible working hours and a conducive work environment.
(a) Salary schedule:
The salaries shall vary with one's position and responsibilities, as illustrated:
Nine employees monthly cost: $9,720
One manager monthly's cost: $2500
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The employee shall enjoy incentives in the business as a way of motivating them.
4. PRODUCTION AND OPERATIONAL PLAN
4.1. PRODUCTION FACILITIES AND CAPACITIES
The business source of finance will be from:
The business has a capacity of about one manager and nine employees. They provide excellent
hospitality service delivery, accounting, and marketing services. They also have the following
Communication skills to transfer information regarding our services to clients.
Technical skills. This helps them to know about the service-related job.
The business operates in Moreno Valley.
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Little Burros Pizza Co. shall use secure and dependable online service platforms as per the needs
of the clients to ensure efficiency and ease their experience effectively.
4.2. PRODUCTION STRATEGY
Little Burros Pizza Co. shall use production techniques to market its services.
The service provision practice shall comply with the criteria as proven beneath
1. Determining the service and offerings within which clients will be reached.
2. Determine the importance of the service inside the location
3. Developing a larger picture relating to the clients' preferences
5.3. SWOT ANALYSIS
Little Burros Pizza Co.
Status and Global
skills in employees-
we will employ
A limited financial
base compared to the
Lack of reputation in
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Little Burros Pizza
Co. will undertake
comparison to our
competitors due to
we are still new on
The current growth
rate of the
Little Burros Pizza
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5. FINANCIAL PLAN
This includes figuring out the route of action to reap the desired effects. It ensures financial
operations, improves motivation, and helps manage through decreasing uncertainties.
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i. Salaries will remain steady for the first three years of operations however will appreciate
yearly via 2% from the fourth year of activity
ii. Travel service delivery will appreciate with 10%
5.2. LITTLE BURROS PIZZA CO. BALANCE SHEET
The financial picture is quite encouraging. We will be slow to take on debt and heavily investing
our own assets, but with our increase in sales we do expect to apply for a credit line with the
bank, to a limit of $50,000. The credit line is supported by assets.
YEAR 1 YEAR 2 YEAR 3
Plan Month 1 2 3
Current Interest Rate 6.00% 6.00% 6.00%
Long-term Interest Rate 5.00% 5.00% 5.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
5.3. BREAK-EVEN LEVELS
Our break-even analysis is based on running costs, the "burn-rate" costs we incur to keep the
business running, not on theoretical fixed costs that would be relevant only if we were closing.
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The essential insight here is that our sales level seems to be running comfortably above break-
Monthly Revenue Break-even $16,283
Average Percent Variable Cost 24%
Estimated Monthly Fixed Cost $12,454
PROJECTED PROFIT AND LOSS
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PRO FORMA PROFIT AND LOSS
YEAR 1 YEAR 2 YEAR 3
Sales $240,673 $258,055 $276,120
Direct Cost of Sales $56,587 $59,416 $62,387
Other Costs of Goods $0 $0 $0
TOTAL COST OF SALES $56,587 $59,416 $62,387
Gross Margin $184,087 $198,639 $213,733
Gross Margin % 76.49% 76.98% 77.41%
Payroll $105,720 $111,006 $116,556
Sales and Marketing and Other
$7,250 $7,250 $7,500
Depreciation $2,040 $1,836 $1,652
Rent $14,400 $14,400 $14,400
Utilities $7,200 $7,200 $7,200
Insurance $4,200 $4,500 $4,800
Payroll Taxes $8,042 $8,444 $8,866
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Website Hosting and Maintenance $600 $50 $50
Other $0 $0 $0
Total Operating Expenses $149,452 $154,686 $161,024
Profit Before Interest and Taxes $34,635 $43,954 $52,709
EBITDA $36,675 $45,790 $54,361
Interest Expense $1,088 $700 $225
Taxes Incurred $10,064 $12,976 $15,745
Net Profit $23,483 $30,278 $36,739
Net Profit/Sales 9.76% 11.73% 13.31%
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PRO FORMA BALANCE SHEET
YEAR 1 YEAR 2 YEAR 3
Cash $46,670 $68,884 $98,698
Inventory $1,720 $1,806 $1,896
Other Current Assets $5,250 $5,250 $5,250
TOTAL CURRENT ASSETS $53,640 $75,940 $105,844
Long-term Assets $20,300 $20,300 $20,300
Accumulated Depreciation $2,040 $3,876 $5,528
TOTAL LONG-TERM ASSETS $18,260 $16,424 $14,772
TOTAL ASSETS $71,900 $92,364 $120,616
Liabilities and Capital Year 1 Year 2 Year 3
Accounts Payable $9,267 $9,454 $9,967
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Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
$9,267 $9,454 $9,967
Long-term Liabilities $19,000 $9,000 $0
TOTAL LIABILITIES $28,267 $18,454 $9,967
Paid-in Capital $46,000 $46,000 $46,000
Retained Earnings ($25,850) ($2,367) $27,911
Earnings $23,483 $30,278 $36,739
TOTAL CAPITAL $43,633 $73,911 $110,649
TOTAL LIABILITIES AND
$71,900 $92,364 $120,616
Net Worth $43,633 $73,911 $110,649
YEAR 1 YEAR 2 YEAR 3 INDUSTRY
Sales Growth 0.00% 7.22% 7.00% 5.24%
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Percent of Total Assets
Inventory 2.39% 1.96% 1.57% 3.54%
Other Current Assets 7.30% 5.68% 4.35% 34.82%
Total Current Assets 74.60% 82.22% 87.75% 43.85%
Long-term Assets 25.40% 17.78% 12.25% 56.15%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.89% 10.24% 8.26% 20.80%
Long-term Liabilities 26.43% 9.74% 0.00% 28.42%
Total Liabilities 39.31% 19.98% 8.26% 49.22%
NET WORTH 60.69% 80.02% 91.74% 50.78%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 76.49% 76.98% 77.41% 61.18%
Selling, General & Administrative
39.83% 39.27% 38.77% 38.56%
Advertising Expenses 0.00% 0.00% 0.00% 2.28%
Profit Before Interest and Taxes 14.39% 17.03% 19.09% 1.44%
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Current 5.79 8.03 10.62 0.99
Quick 5.60 7.84 10.43 0.67
Total Debt to Total Assets 39.31% 19.98% 8.26% 52.80%
Pre-tax Return on Net Worth 76.88% 58.52% 47.43% 2.77%
Pre-tax Return on Assets 46.66% 46.83% 43.51% 5.88%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 9.76% 11.73% 13.31% n.a
Return on Equity 53.82% 40.97% 33.20% n.a
Inventory Turnover 31.29 33.70 33.70 n.a
Accounts Payable Turnover 11.35 12.17 12.17 n.a
Payment Days 30 30 29 n.a
Total Asset Turnover 3.35 2.79 2.29 n.a
Debt to Net Worth 0.65 0.25 0.09 n.a
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Current Liab. to Liab. 0.33 0.51 1.00 n.a
Net Working Capital $44,373 $66,487 $95,877 n.a
Interest Coverage 31.85 62.79 234.26 n.a
Assets to Sales 0.30 0.36 0.44 n.a
Current Debt/Total Assets 13% 10% 8% n.a
Acid Test 5.60 7.84 10.43 n.a
Sales/Net Worth 5.52 3.49 2.50 n.a
Dividend Payout 0.00 0.00 0.00 n.a
5.4. DESIRED FINANCING
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Start-up Expenses to Fund $25,850
Start-up Assets to Fund $54,650
TOTAL FUNDING REQUIRED $80,500
Non-cash Assets from Start-up $31,550
Cash Requirements from Start-up $23,100
Additional Cash Raised $0
Cash Balance on Starting Date $23,100
TOTAL ASSETS $54,650
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $25,000
Accounts Payable (Outstanding Bills) $9,500
Other Current Liabilities (interest-free) $0
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TOTAL LIABILITIES $34,500
Investor 1 $15,000
Additional Investment Requirement $1,000
TOTAL PLANNED INVESTMENT $46,000
Loss at Start-up (Start-up Expenses) ($25,850)
TOTAL CAPITAL $20,150
TOTAL CAPITAL AND LIABILITIES $54,650
Total Funding $80,500
Little Burros Pizza Co. Business Plan 39
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