Danaka Stromberg

ROSE’S CAFE

WHAT IS ROSE’S CAFE?

WHAT WE OFFER

CAPITAL & FINANCING BUDGET

$25,000 $25,000

Owner ContributionsBank Loan

Start up Costs:$32,323

COMPETITORS

TARGET MARKET

PROMOTION

PROMOTION

OWNERS COMPENSATION

Average OwnersCompensation

2015 2016 2017 2018 2019

Owners Salary $ 52,000 $ 53,300 $ 54,633 $ 55,998 $ 57,398

Dividends $ - $ - $ - $ 5,590 $ 32,946

Total Owners Compensation

$ 52,000 $ 53,300 $ 54,633 $ 61,588 $ 90,344

Average 5 Year Owners Compensation = $ 62,373

PROFITABILITY

2015 2016 2017 2018 2019

-$40,000

-$30,000

-$20,000

-$10,000

$-

$10,000

$20,000

$30,000

$40,000

$50,000

-$32,242

$298

$23,365 $30,962

$39,676

Net Income

Average Net Income = $12,412

RISK = HIGH

FEASIBLE = NO

QUESTIONS?

CAPITAL BUDGET

Category Cost

Leasehold Improvements $6,500

Equipment $24,090

Inventory $1,733

Total Capital $32,323

HOURS OF OPERATION

Operating HoursSunday 10am-3pm

Monday 8am-4pm

Tuesday 8am-4pm

Wednesday 8am-4pm

Thursday 8am-4pm

Friday 8am-4pm

Saturday 8am-2pm

WHO WE ARE

PROFITABILITY AND CASH FLOWS

  2015 2016 2017 2018 2019Net Income

-$32,242 $298 $23,365 $30,962 $39,676

End Cash Balance

-$ 4,630 -$565 $25,590 $52,946 $59,636

2015 2016 2017 2018 2019

($40,000)

($20,000)

$0

$20,000

$40,000

$60,000

$80,000

Net IncomeEnd Cash Balance

BREAK EVEN ANALYSIS

1 2 3 4 50

20

40

60

80

100

120

70

81 8993

98

82

8080 80 80

Base Case Cust/day

Breakeven Cust/day

Year

Nu

mb

er o

f Cu

sto

mer

s p

er d

ay

Ave. 5 year NI = $ 12,412 Year 5 Owners Compensation = $ 90,344

2015 2016 2017 2018 2019Base Case 70 81 89 93 98

Breakeven 82 80 80 80 80

PROJECTED INCOME

Projected Income

 2015 2016 2017 2018 2019

Sales $ 252,000 $ 297,045 $ 334,918 $ 360,456 $ 387,941

COGS $ 62,370 $ 73,519 $ 82,892 $ 89,213 $ 96,015

Gross Profit $ 189,630 $ 223,526 $ 252,026 $ 271,243 $ 291,925

Expenses $ 221,872 $ 223,228 $ 228,661 $ 236,936 $ 246,321

Net Income $ (32,242) $ 298 $ 23,365 $ 30,962 $ 39,676

CASH BALANCES

Cash Balances  2015 2016  2017  2018  2019

Net Cash Flow $ (4,630) $ 4,065 $ 26,156 $ 27,356 $ 6,690

Cash Bal Beg of Year $ - $ (4,630) $ (565) $ 25,590 $ 52,946

Cash Bal End of Year

$ (4,630) $ (565) $ 25,590 $ 52,946 $ 59,636

WAGES Salaries/Wages           Manager Salary $52,000 $53,300 $54,633 $ 55,998 $57,398 Full time employee (wage rate/hr) $13.50 $13.84 $ 14.18 $ 14.54 $ 14.90

Full time baker (wage rate/hr) $12.75 $13.07 $13.40 $ 13.73 $ 14.07

Part time staff (wage rate/hr) $10.50 $10.76 $11.03 $ 11.31 $11.59

Salary and Wage Costs Manager $52,000 $ 53,300 $54,633 $55,998 $57,398 Full time employee $26,460 $27,122 $ 27,800 $28,495 $ 29,207 Full time baker $ 24,990 $25,615 $26,255 $ 26,911 $ 27,584

Part time staff $ - $ - $ 644 $ 4,091 $7,977

Total Salaries and Wages $ 103,450 $106,036 $ 109,332 $115,495 $122,166

SENSITIVITY ANALYSIS

Critical Variable : Average Customers Per Day

Customers/dayAverage 5Year Profit

Net Payback

Year 5 Owner Compensation

55 ($35,473) ($174,856) $57,398

60 ($18,111) ($67,681) $57,398

65 ($1,569) $31,926 $57,398

70 $12,422 $112,852 $85,963

75 $25,776 $194,324 $102,971

80 $38,920 $274,742 $116,706

85 $51,802 $353,855 $130,442

SENSITIVITY ANALYSIS

Critical Variable : Average Purchase Per CustomerAverage Purchase

/ Customer Average 5 Year Profit

Net Payback Year 5 Owner Compensation

9 ($8,110) ($7,537) $57,398

9.5 $2,805 $56,770 $57,398 10 $12,422 $112,852 $85,963

10.5 $21,770 $169,883 $98,851 11 $31,118 $226,913 $108,465

11.5 $40,208 $282,654 $118,080 12 $49,226 $338,032 $127,694