Can-Sian Restaurant Can-Sian Restaurant Can-Sian Restaurant Can-Sian Restaurant By Ye YangBy Ye Yang Sang KimSang Kim

Natsuko Soejima Natsuko Soejima Vince WangVince WangChloe LiuChloe Liu

Jin LiuJin Liu

Elements of a Business Plan

bull 1048580Goals and Missionsbull 1048580Management Team bull Locationbull 1048580Product Service Description bull 1048580Market Opportunity bull 1048580Competition Analysis bull 1048580Financial Projectionsbull Legal Requirement

Goalbull Produce good reputation and

royalty from consumers bull We expect to have a constant 15

annual growth rate

Missionbull We supply the good quality and

delicious food with reasonable price

bull We provide a good balance diet to customer

bull We provide a good atmosphere for the family to spend time together

Management Teambull Experience in catering industry for

10years bull Chief Chef was awarded the Best

Chef in Korea in 2000

LocationThe West Lethbridge Advantages

Population of Lethbridge

LocationThe strongest population growth

bullUniversity StudentsbullNew Housing

No direct competitorsNot enough restaurants in West

LocationSpecific Sitebull West Village Mall

ndash Easy access from University Drivendash Close to a dense population of the

target marketndash Walking distance of Universityndash Enough parking spaces

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Elements of a Business Plan

bull 1048580Goals and Missionsbull 1048580Management Team bull Locationbull 1048580Product Service Description bull 1048580Market Opportunity bull 1048580Competition Analysis bull 1048580Financial Projectionsbull Legal Requirement

Goalbull Produce good reputation and

royalty from consumers bull We expect to have a constant 15

annual growth rate

Missionbull We supply the good quality and

delicious food with reasonable price

bull We provide a good balance diet to customer

bull We provide a good atmosphere for the family to spend time together

Management Teambull Experience in catering industry for

10years bull Chief Chef was awarded the Best

Chef in Korea in 2000

LocationThe West Lethbridge Advantages

Population of Lethbridge

LocationThe strongest population growth

bullUniversity StudentsbullNew Housing

No direct competitorsNot enough restaurants in West

LocationSpecific Sitebull West Village Mall

ndash Easy access from University Drivendash Close to a dense population of the

target marketndash Walking distance of Universityndash Enough parking spaces

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Goalbull Produce good reputation and

royalty from consumers bull We expect to have a constant 15

annual growth rate

Missionbull We supply the good quality and

delicious food with reasonable price

bull We provide a good balance diet to customer

bull We provide a good atmosphere for the family to spend time together

Management Teambull Experience in catering industry for

10years bull Chief Chef was awarded the Best

Chef in Korea in 2000

LocationThe West Lethbridge Advantages

Population of Lethbridge

LocationThe strongest population growth

bullUniversity StudentsbullNew Housing

No direct competitorsNot enough restaurants in West

LocationSpecific Sitebull West Village Mall

ndash Easy access from University Drivendash Close to a dense population of the

target marketndash Walking distance of Universityndash Enough parking spaces

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Missionbull We supply the good quality and

delicious food with reasonable price

bull We provide a good balance diet to customer

bull We provide a good atmosphere for the family to spend time together

Management Teambull Experience in catering industry for

10years bull Chief Chef was awarded the Best

Chef in Korea in 2000

LocationThe West Lethbridge Advantages

Population of Lethbridge

LocationThe strongest population growth

bullUniversity StudentsbullNew Housing

No direct competitorsNot enough restaurants in West

LocationSpecific Sitebull West Village Mall

ndash Easy access from University Drivendash Close to a dense population of the

target marketndash Walking distance of Universityndash Enough parking spaces

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Management Teambull Experience in catering industry for

10years bull Chief Chef was awarded the Best

Chef in Korea in 2000

LocationThe West Lethbridge Advantages

Population of Lethbridge

LocationThe strongest population growth

bullUniversity StudentsbullNew Housing

No direct competitorsNot enough restaurants in West

LocationSpecific Sitebull West Village Mall

ndash Easy access from University Drivendash Close to a dense population of the

target marketndash Walking distance of Universityndash Enough parking spaces

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

LocationThe West Lethbridge Advantages

Population of Lethbridge

LocationThe strongest population growth

bullUniversity StudentsbullNew Housing

No direct competitorsNot enough restaurants in West

LocationSpecific Sitebull West Village Mall

ndash Easy access from University Drivendash Close to a dense population of the

target marketndash Walking distance of Universityndash Enough parking spaces

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

LocationThe strongest population growth

bullUniversity StudentsbullNew Housing

No direct competitorsNot enough restaurants in West

LocationSpecific Sitebull West Village Mall

ndash Easy access from University Drivendash Close to a dense population of the

target marketndash Walking distance of Universityndash Enough parking spaces

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

LocationSpecific Sitebull West Village Mall

ndash Easy access from University Drivendash Close to a dense population of the

target marketndash Walking distance of Universityndash Enough parking spaces

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

ProductQuality must be at the fore of our

productbull Quality in Foodbull Quality in Service

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

What Type of food we provided

bull Chinese Foodbull Korean Foodbull Japanese Food

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar

and etc)

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers

to provide amounts of ingredients we request

bull Dependability Reliability of service regarding time loss and damage

bull Frequency Scheduling

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Meat supplier Local (Lethbridge) transaction

Advantage1Best quality

2Cost effective low cost for transportation

3Easily monitor How the supplier produces products (quality of meat)

4 Customized products

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Vegetable supplier Typical ingredients (Chinese white cabbage Japanese parsley)

Transaction proceeded in Calgary (Chinatown)

1) The cost for transportation

2) Possible economic detriments regarding to time damage and loss of vegetables

3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed

4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

continuedBasic ingredients (onion garlic ricehellip)

bull Transaction proceeded in local marketsbull Local farmers

Integrated market Farmerrsquos market in Lethbridge

None or inexpensive cost for transportation delivery service suppliers offer and closeness to markets

Face to face contact with suppliers (if vegetables have badquality)

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Supplier for Other ingredients

Ingredients like sauce salt pepper sugar

Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

InventoryUsing inventory organizer (Chart or notice

board) and collective inventory management involving all managers and employees

1) Unnecessary to purchase them in large quantities

(expense of cash out of our pockets)

2) Accurate estimation from chefs assistants and employees

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Two ways to purchase equipments

bull Buying the used Equipments

bull Leasing

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

3 conditions for purchasing decision

Sales service credit sale guarantee

Repair

Affordability reduce star-up cost

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Marketing opportunities

target market

bull families in Westsidebull University Students

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Marketing strategybull Taste and service

bull Pricing

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain

availableDisadvantagebull Low competitive with downtown

restaurant

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Advertising bull Flyer

bull Coupon

bull Word of Mouth

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Sales promotionsbull Lunch combo

bull Discount for every Tuesday

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Item Cost

Equipment 15000

Inventory 10000

Wages (first 2 months)

19520

Utilities

Deposite 100

First 2 months

800

Start Up Cost

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Rent

Deposite 1000

First 2 months 20000

Advertising 400

Insurance 3700

Licences and permits 850

Others Pre-Paid 200

Contingancy 1000

　

Total Start up Cost

72570

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

2006 2007 2008

Net Sales 288000 34500 380160

Cost of Good Sold 72000 86400 95040

Gross Margin on Sales 216000 259200 285120

Expenses

Rent 120000 120000 120000

Selling Expense

Advertising Expense 1200 1200 1200

Wages and Salaries 117120 117120 117120

Depreciation Expense 2000 2000 2000

Insurance Expense 3600 3600 3600

Utilities 4800 4800 4800

Total Operating Expense 248720 248720 248720

Profit Before Interest and Tax

-3920 27760 55408

Interest payment 6300 5100 3900

Net Income before tax -39020 5380 32500

Income Tax 0 1345 8125

Net Income -39020 4035 24375

Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Break- Even Analysis

bull The Fixed Cost is $248720 bull The Contribution as of Sales is 75bull The Break-Even Point is $331627

Break-Even Analysis

-400000

-200000

0

200000

400000

0 331627 663254

Revenue

Pro

fit L

oss

Profit Loss

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Legal Requirements

Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner

s s

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Legal Requirements (Contrsquod)

Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

Legal Requirements

(Contrsquod)Intellectual Property Prote

ction Gain a trademark from government fo

r the name of our restaurantmdashCan-Sian

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement

QUESTIONQUESTIONQUESTIONQUESTION

• Vegetable supplier
• continued
• Two ways to purchase equipments
• Pro Forma Income Statement