BUSINESS PLAN

Hit or Miss Sports Bar

Lincoln Reeves, Owner

Created on July 29, 2015

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1. EXECUTIVE SUMMARY

1.1 Product

Hit or Miss Sports Bar will provide a great selection of drinks along with greatAmerican style bar foods.

1.2 Customers

I would like to attract young professional men and women, specifically 21 and older.

1.3 What Drives Us

Being Fiscally Responsible Customer / Employee Satisfaction Maintain Health Standards

Hit or Miss Sports Bar Tuscaloosa, ALReturn a Profit

2. COMPANY DESCRIPTION

2.1 Mission Statement

Hit or Miss would like to be know as the bar to go to in downtown Tuscaloosa. WE would like to stay ahead of competetion, while keeping the customers satisfied. Hit or Miss provides three spereate bars along with two pool tables. We try and offer an overall great experience for the whole crowd.

2.2 Principal Members

Lincoln Reeves is the owner/operator of Hit or Miss Sports Bar. John C. Reiley is the food Manager who oversees the food operations. Will Ferrell is the bar Manager who oversees the bar operations. Hunter Thompson and Donald Trump are the two bartenders while Billy Thornton is in the kitchen as the cook.

2.3 Legal Structure

Sole Proprietership

3. MARKET RESEARCH

3.1 Industry

The bar scene in Tuscaloosa is a growning market. It is focused on making a profit but being affordable to the general public. Most bars in Tuscaloosa are centered around sports and drink specials. These bars allow for a variety of themes, music, and food.

3.2 Customers

The people who fill these bars up are most likely a college students from the agesof 18-26. With it being a college town there are new potential customers every year along with the fan base the come into town for sporting events.

3.3 Competitors

My competetion would be all of the other bars and resturaunts in the downtown area of Tuscaloosa.

3.4 Competitive Advantage

A wide selection of craft beer, offering 70 taps, along with a view of downtownTuscaloosa from the patio.

3.5 Regulations

Health InspectionsCapacity Fire Codes Alcohol Age laws

Labor laws

4. PRODUCT/SERVICE LINE

4.1 Product or Service

Hit or Miss Sports bar will provide a great on tap draft beer system. It will include imported, domestic, and craft beers. The liquor selection will be both top shelf and well. What will seperate our food from others is that it is all locally farmed and raised.

4.2 Pricing Structure

My pricing structure would be focused on the affordability of college students. It will be an equal portion of food compared to the prices. There will be drink and food specials offered daily. My prices are competitive because of my low markup of 25%. It is the lowest in town. I also offer my customers to become a member of the crimson club which allows them discounts, early admittance and faster service.

4.3 Product/Service Life Cycle

This is the first year that Hit or Miss is open.

4.4 Intellectual Property Rights

Currently the style name and processes of the drinks we make are all my bars intellectual property. We also offer a wide variety of sauces unlike anywhere else unique only to Hit or Miss.

4.5 Research & Development

I encourage my customers to add and follow my business on social media and provide any feedback about the food, music, and events that are held. This is a vital

tool in todays growing market.

5. MARKETING & SALES

5.1 Growth Strategy

Once I get my business's name out there and am known for having great food and drinks, I would like to buy the spot that is available beside is and expand. This addition will allow me to have catered events and exclusive parties.

5.2 Communication

I would continue to take advantage of social media and all of the benefits that it offers in today's growing market. My customers are up to date on current events and recieve most of that information from their social media accounts.

5.3 Prospects

Hit or Miss Sports Bar Tuscaloosa, ALThe products that I sell will all be sold in house.

6. FINANCIAL PROJECTIONS

6.1 PROFIT & LOSS

Year 1Year 2Year 3

Sales$1,200,000$1,600,000$2,100,000

Costs/Goods Sold$568,000$840,000$1,300,000

GROSS PROFIT $632,000 $760,000 $800,000

TOTAL EXPENSES$351,200$407,700$462,575NET PROFIT (before taxes)NET PROFIT (after tax)$280,800$352,300$337,425OPERATING EXPENSESSalary (Office & Overhead)$150,000$157,500$165,375

Payroll (taxes, etc.)$0$0$0

Outside Services$0$0$0

Supplies (office & operation)$5,000$5,000$5,000

Repairs & Maintenance$5,000$5,000$5,000

Advertising$50,000$95,000$135,000

Car, delivery & travel$0$0$0

Accounting & legal$10,000$10,000$10,000

Rent$48,000$52,000$57,000

Telephone$1,200$1,200$1,200

Utilities$26,000$31,000$33,000

Insurance$36,000$36,000$36,000

Taxes (real estate, etc.)$0$0$0

Interest$0$0$0

Depreciation$10,000$10,000$10,000

Other expenses$10,000$5,000$5,000

Income Taxes$0$0$0

Owner Draw/Dividends$0$0$0

Hit or Miss Sports Bar Tuscaloosa, AL

Hit or Miss Sports Bar Tuscaloosa, ALADJUSTED TO RETAINED $280,800 $352,300 $337,425

6.2 CASH FLOW (01/01/2015 to 12/31/2015)

Pre StartupESTYear 1Year 2Year 3Total ItemEST

Cash on hand$250,000$335,000$445,000$753,000$1,783,000

CASH RECEIPTS

Cash Sales$0$500,000$750,000$1,000,000$2,250,000

Collections from CR Accounts$0$0$0$0$0

Loan/Cash Injection$250,000$0$0$0$250,000

TOTAL CASH RECEIPTS$250,000$500,000$750,000$1,000,000$2,500,000

TOTAL CASH AVAILABLE (before cash out)$500,000$835,000$1,195,000$1,753,000$4,283,000

CASH PAID OUT

Purchases$100,000$102,000$105,000$110,000$417,000

Gross Wages$0$80,000$80,000$80,000$240,000

Outside Services$0$0$0$0$0

Supplies$5,000$1,000$1,000$1,000$8,000

Repairs & Maintenance$0$5,000$5,000$5,000$15,000

Advertising$10,000$50,000$95,000$135,000$290,000

Car, delivery & travel$0$0$0$0$0

Accounting & legal$0$10,000$10,000$10,000$30,000

Rent$0$48,000$52,000$57,000$157,000

Telephone$0$12,000$12,000$12,000$36,000

Utilities$0$26,000$31,000$33,000$90,000

Insurance$0$36,000$36,000$36,000$108,000

Taxes (real estate, etc.)$0$0$0$0$0

Interest$0$0$0$0$0

Other expenses$0$10,000$5,000$5,000$20,000

SUBTOTAL$115,000$380,000$432,000$484,000$1,411,000

Loan principal payment$0$10,000$10,000$20,000$40,000

Capital purchase$50,000$0$0$50,000$100,000

Other startup costs$0$0$0$0$0

Reserve and/or Escrow$0$0$0$0$0

Others withdrawal$0$0$0$0$0

TOTAL CASH PAID OUT$165,000$390,000$442,000$554,000$1,551,000

CASH POSITION $335,000 $445,000 $753,000 $1,199,000 $2,732,000

6.3 BALANCE SHEET

Assets Start Date: End Date:

CURRENT ASSETS

Cash in bank$250,000$1,199,000

Accounts Receivable$0$0

Inventory$100,000$100,000

Prepaid Expenses$48,000$57,000

Deposits$0$0

Other current Assets$0$0

TOTAL CURRENT ASSETS$398,000$1,356,000

FIXED ASSETS

Machinery & Equipment$100,000$80,000

Furniture & Fixtures$20,000$10,000

Leaseholder improvements$2,000$5,000

Land & Buildings$0$0

Other fixed assets$0$0

TOTAL FIXED ASSETS(net of depreciation)$122,000$95,000

OTHER ASSETS

Intangibles$0$0

Other$10,000$5,000

TOTAL OTHER ASSETS$10,000$5,000

TOTAL ASSETS$530,000$1,456,000

Liabilities & Equity

CURRENT LIABILITIES

Accounts Payable$180,000$0

Interest Payable$0$5,000

Taxes Payable$0$0

Notes, short term (due in 12 months)$0$0

Current part, long-term debt$0$0

TOTAL CURRENT LIABILITIES$180,000$5,000

LONG TERM DEBT

Bank loans payable$250,000$175,000

Notes payable to stockholders$0$0

LESS: short-term portion$0$0

Other long-term debt$0$0

TOTAL LONG-TERM DEBT$250,000$175,000

TOTAL LIABILITIES $430,000 $180,000

OWNERS EQUITY

Common Stock$0$0

Retained Earnings$100,000$1,276,000

TOTAL OWNERS EQUITY$100,000$1,276,000

TOTAL LIABILITIES & EQUITY$530,000$1,456,000

6.4 BREAK EVEN ANALYSIS

DIRECT COSTS Fixed Costs ($) Variable Costs (%)Cost of Goods Sold$100,0003%

Inventory$100,0003%

Raw Materials$100,0003%

Direct Labor$80,0003%

INDIRECT COSTS

Salaries$80,0003%

Supplies$110,0003%

Repairs & Maintenance$5,0005%

Advertising$75,0007%

Car, delivery & travel$00%

Rent$52,0000%

Telephone$12,0000%

Utilities$31,0005%

Insurance$00%

Taxes$00%

Interest$00%

Depreciation$10,0003%

Other Costs$8,0002%

TOTAL DIRECT COSTS$380,00012%

TOTAL INDIRECT COSTS$763,00040%

BREAKEVEN SALES LEVEL: $2,381,250

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Hit or Miss Sports Bar Tuscaloosa, AL

6.5 FINANCIAL ASSUMPTIONS

6.5.1 Assumptions for Profit and Loss Projections

My assumptions are as follows: taking on a lot of debt during start up, selling low to attract customers, good customer service to keep those customers.

6.5.2 Assumptions for Cash Flow Analysis

At start up my primary cash flow will come from my loan. Once the business is established and profitable, I will use the cash surplus to invest in properties adjacent to the bar. This will allow me to hold larger crowds and make more money.

6.5.3 Assumptions for Balance Sheet

The assumptions that my assets will out weigh my liabilities.

6.5.4 Assumptions for Break Even Analysis

This spreadsheet shows me information that tells me when I'm heading into a positive direction away from my debt.

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