Nightclub
BUSINESS PLAN WILD OASIS
1039 Thurman Avenue
Cliff, Massachusetts 01862
The Wild Oasis nightclub provides a local solution to the lack of dance and live music venues in a medium-sized market, and will help keep late-night entertainment expenditures within the region. The company's good grasp of how to market a nightclub adds to the plan's attractiveness.
- ORGANIZATIONAL PLAN
- MARKETING PLAN
- MANAGEMENT PLAN
- FINANCIAL DOCUMENTS
ORGANIZATIONAL PLAN
Industry Description
Dance clubs in the 1990s have significantly impacted cities from coast to coast. Los Angeles Hollywood, New York's Times Square, and Seattle's Pioneer Square are just a few examples. Dazzling their audiences with high-powered lights, sound, and music, these venues are still one of the highest cash flow businesses in the world. Studies have shown that the average person will spend three to four hours per weekend in an entertainment environment and will spend an average of 20 to 50 dollars in that timeframe. This trend also shows no signs of declining.
The typical dance club is open from 9:00 P.M. to 2:00 A.M., and within this span of five hours, the venue can achieve gross revenues anywhere from $5,000 to $35,000 nightly. The primary sources of revenue in a nightclub are high-volume traffic, coupled with nominal spending. In addition to alcohol revenues, a nightclub also generates substantial revenues from door charges that can typically range from five to ten dollars per person.
For example, a 1,000-person capacity nightclub will typically accommodate approximately 1,500 people in the five-hour span of operation. A $5 door charge, in addition to a conservative figure of $12.25 collected from each patron in alcohol sales, would generate approximately $30,000 in nightly revenue.
Nightclubs in the late 1980s and early 1990s focused on spectacular light shows and energetic dance music. This relatively simple concept is still quite popular today. However, these concepts have greatly evolved with society. In recent years this industry has become more sophisticated with the availability of new technology. Larger metropolitan areas have taken this technology to new heights with sound and lighting designs that create an exciting and memorable experience. Fortunately, no one in the downtown Cliff area has capitalized on this specific segment of the industry to date.
Additionally, the nightclub industry is shifting towards a more entertainment-oriented concept. Guests of these clubs are not only offered a dynamic place to dance, but also a place to participate in the entertainment through interactive contests, theme nights, and other events. We intend to heavily utilize entertainment-oriented marketing in an effort to withstand the perpetual shift in trends and cater to as large a client base as possible.
Nightclubs and other drinking establishments rely heavily on their primary suppliers. The primary suppliers are the various beverage distributors that provide the establishment with both alcoholic and non-alcoholic beverages. The alcoholic beverages (beer, wine, and liquor) are the primary sources of income in this industry. Other beverage suppliers also play a crucial role by providing non-alcoholic beverages. These are either served alone or mixed with alcohol.
In the Cliff area, all major brands of alcoholic beverages are available, in addition to several regional brands of beer. Initial research shows that the major distributors in the market have a high rating in both product availability and delivery.
Business Description
The resurgence of the downtown Cliff area represents a unique opportunity for a high-energy dance club. The city's central location, demographics, and lack of direct competition are major advantages to this project. The proposed club—tentatively named "Wild Oasis"—will provide a local solution to the lack of dance and live music venues geared toward the 21 to 35 age group in the Noble County area and will help keep late night entertainment expenditures within the region.
The development of the University of Waters Cliff campus has been, and will continue to be, a major catalyst in bringing people to the area. With current enrollment of over 1,300 students, the year-and-a-half old campus is slated for steady expansion through 2010 when enrollment is expected to hit 6,000 students. Additional surrounding educational institutions (two universities, two community colleges) also contribute to the potential customer base. Other proposals in the area such as the Multiplex Theatre and shopping center will also greatly impact the city's traffic flow and nightlife.
The new nightclub will specialize in high-energy dance music with a quality light show, and will offer beer, wine, and an array of liquors and mixed drinks. In addition, the club will sell non-alcoholic beverages such as soft drinks, juices, and bottled water. A small food menu consisting mostly of appetizers and small entrees ranging in cost from $6 to $9 will also be available. The initial hours of operation will be 8:00 P.M. to 2:00 A.M. Wednesday through Saturday. The club will draw primarily from the Cliff market while attracting guests from the area's other major cities in the state.
Club Design
Our goal is to provide a comfortable and welcoming environment as well as a unique, exciting nightclub experience. This dance club will feature high ceilings and a contemporary look with dynamic upscale decor, furnishings, and color scheme modeled after a big city loft. The central area of the club will consist of a large dance floor with cocktail seating along the perimeter and a large bar located nearby. A VIP lounge for special guests is also being explored.
The focus of the club's design will be to create a highly social atmosphere. This will be achieved through the placement of couches, booth seating, and a quieter lounge area located away from the dancing and music.
State-of-the-art sound and lighting will round off the club's environment. A RMS point-of-sale system will be put into place and will serve as a sales, labor, and liquor/inventory control system. This system will ensure an accurate, secure, and efficient control over labor costs, as well as day to day inventory, thus minimizing the possibility of loss or theft.
MARKETING PLAN
Area Analysis
The geographic target market for this nightclub is all of Noble County, which includes the city of Cliff and many others. Current population of the county is over 680,000 people, 26% of whom fall into the proposed age demographic (21 to 35) for the club. This number is expected to rise significantly over the next decade.
Cliff, the city in which the proposed club will reside, is Noble County's largest city, accounting for 28% of the total population, and the third largest city in the state. The 51-square-mile city has been nationally recognized for its outstanding quality of living in national consumer magazines.
There are several contributing factors behind the emergence of the downtown area of Cliff. The $70 million redevelopment of the University of Waters Cliff campus has been the largest stimulus for economic growth in the area to date. Various other projects, including a multiplex theater, shopping center, marina, numerous restaurants, and residential housing, have been proposed or are currently in development. Growth in the area is also attributable to the expansion or relocation of major corporations representing the computer, sportswear, and aircraft production industries. Many of these companies have created new, higher-technology jobs in the areas that have welcomed in a younger and more affluent workforce.
Cliff was chosen as the location for the new club for several reasons. First, the city is an emerging market with lower real estate rates and at the same time high levels of commercial development. Second, Cliff lacks direct competition from other dance clubs. The next major city, which is over 45 minutes away from downtown Cliff, maintains a highly competitive nighttime entertainment market yet poses little threat to the development of a Cliff dance club.
Site Analysis
The proposed location for the venue is at 1039 Thurman Avenue on the first and second floors of the Pfeiffer Building. Thurman Avenue is the downtown area's primary commercial business street, and has excellent freeway and back street access. The club would occupy approximately 7,300 square feet (5,500 downstairs and 1,800 upstairs) of the building. This location is centrally located to many existing and proposed attractions in downtown Cliff. Its second-story addition provides for an excellent nighttime view of parts of the city and the Mark Anthony Waterway.
The site and the proposed club are a perfect fit. The Pfeiffer Building is the creation of its current owner, a prominent local developer responsible for downtown's newest office complex, the Maximus Building. His experience with renovation of historic buildings will facilitate the development of the nightclub. Additionally, the Pfeiffer Building resides in one of downtown Cliff's busiest intersections with access to the city's major interstate freeways. Plans for the building include installation of high-speed Internet connections in an effort to attract technology companies. Thus far, a technology firm as well as a local recruiting company already have agreed to lease space.
Target Market & Demographics
The primary target market for this venue is the age group of 21 to 35. Market research indicates that the demand for a new dance club in Cliff among this demographic is very high. Most are tired of the existing scene and are looking for a local place to dance, meet people, and have a good time. Currently, high-energy dance clubs are only found in the next largest city, but the 45-minute drive north discourages much of Noble County's market from frequenting these venues. This, coupled with the tremendous current and forecasted growth throughout the region, indicates that the time is perfect for such a venture in Cliff.
The market research study included men and women within the target market that do, or would, support the downtown Cliff nightclub entertainment industry. The most common responses and comments regarding existing venues in the area were:
- Not enough room to dance
- Tired of the existing sports bar/tavern atmosphere
- Existing venues play the same music every night; no variety
- Low quality light and sound
- Lack of energy and excitement; too low key
Therefore, the venue being proposed will address all of these concerns. It will maintain a heavy focus on dancing—offering the largest dance floor in the downtown area—and will offer a high-energy, very social atmosphere for the prospective market. The interior will be designed with an upscale decor and the lighting and sound will drive the ambience. Most of all, the music will be consistent, but not played out. DJs will be responsible for playing a variety of music our patrons like, from Top 40 to remixed techno to hits from the 1970s and 1980s.
Demographic data obtained from Noble County's web site demonstrates that the region contains over 175,000 individuals within our target market, 26% of the total population. Estimates indicate an expected 3-4% annual growth over the next 10 years.
Population Estimates for 1999
| Noble County | |
| Total Population | 682,450 |
| Total Males (by age) | |
| 21 to 25 | 27,733 |
| 26 to 30 | 27,431 |
| 31 to 35 | 35,756 |
| Total Males (21 to 35) | 90,920 |
| Total Females (by age) | |
| 21 to 25 | 24,667 |
| 26 to 30 | 26,802 |
| 31 to 35 | 35,347 |
| Total Females (21 to 35) | 86,816 |
| Total Target Demographic | 177,736 |
| Percentage of Total Population | 26.04% |
Promotions
Promotional efforts are critical to the proposed club's success. Accordingly, the venue will offer nightly, weekly, and monthly promotional specials. These promotions will help to stimulate excitement for the new club, thus leading to high traffic and exposure. The main idea is to offer a new entertainment experience night after night. This is the key ingredient for success and profitability, as well as longevity, in the nightclub industry. Proposals include:
- Prize giveaways
- Nightly dance floor and stage contests
- Cooperative promotions with local radio stations
Entertainment will be provided by charismatic disc jockeys featuring a blend of current Top 40 and dance music. During the week, special theme nights and promotions will be used to attract a more diverse crowd, and to increase the number of customers who frequent the dance club. These theme nights will change as popularity and demand dictate.
The market will be targeted and reached via the following primary vehicles: advertisements in local print media, strategically broadcast radio spots, and an Internet web site. Advertisements printed in the local and college newspapers, as well as broadcasts over the local radio stations will provide exciting club information on current promotions and specials. A more "grass roots" marketing campaign also will be employed. This includes club representatives and spokespersons attending area events, postering of college campuses, a "prize patrol" van, and other person-to-person marketing efforts.
Competition
The new nightclub will meet a demand in the Cliff area that is not currently being served. We will provide a high quality, energetic nightclub while maintaining a safe, secure atmosphere for guests to enjoy themselves and the surroundings. Providing a safe nightclub is essential to maintaining customer loyalty and growth. Therefore, security at the new club will be top priority.
Currently, nighttime competition in the area is limited to mostly bar/tavern facilities including McArthur's, Lucky Six, Jubilee, The Harbor, and Westside Elite. Only Jubilee and The Harbor offer large-scale dancing facilities. The proposed club will be the largest dance facility in the downtown area. While the proposed club will be in direct competition with these other facilities, it also will attract a different clientele of individuals seeking a superior dance venue which can currently only be found in the next largest city in the state, 45 minutes away.
Our review of the market concludes that there are four entertainment venues that can be considered direct competition to the proposed new venue. We do realize that the proposed venue will also compete indirectly for every entertainment dollar spent in the Cliff area.
| McArthur's | Hours of Operation: 5:00 P.M. - 2:00 A.M. |
| Wednesday - Saturday | Capacity: 300 |
| 344 W. 5th Ave. | Dance Floor: 450 square feet |
| Wed. College Night ($1 beers) | |
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| Jubilee | Hours of Operation: 10:00 A.M. - 2:00 A.M. |
| Monday - Sunday | Capacity: 400 |
| 422 Main St. | Dance Floor: 700 square feet |
| Thurs. College/Ladies' Night | |
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| The Harbor | Hours of Operation: 6:00 P.M.- 2:00 A.M. |
| Wednesday - Saturday | Capacity: 250 |
| 3rd and Broadway | Dance Floor: 500 square feet |
| Varies week to week | |
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| Lucky Six | Hours of Operation: 11:00 A.M.- 2:00 A.M. |
| Monday - Sunday | Capacity: 350 |
| 23rd and Republic | Dance Floor: 325 square feet |
| Varies week to week | |
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MANAGEMENT PLAN
Ed Tiller will fulfill the role of Owner/Operating Partner of this venture. He is currently the president of XTZ. Mr. Tiller's background is largely within the scope of business development and project management as well as commercial and residential construction. His fields of expertise will be utilized in this venture via his direct responsibility for the overall business management structure and personnel. Additionally, he will assume the public relations and marketing roles for the club.
XTZ has contracted entertainment industry specialists, SVC Nightclub and Bar Services, Inc. Their involvement will exist in several facets, most notably, through providing assistance in launching this nightclub venue. SVC has over 12 years of experience in the nightclub industry and has assisted many first-time club operators in getting their proposed venues off the ground successfully. SVC will assist in the development of the design, concept, and strategies of the new nightclub. SVC is also a full-service advertising agency and will assist in all production and placement of all advertisement for the new venue. In addition, they will assist in the hiring process of the management staff, disc jockeys, bartenders, waitresses, and security staff. They will also provide educational services for management-level personnel who will be responsible for the day to day operations of the club.
Interviews for a general manager, bar manager, and all other personnel will be conducted by Joe Sorge of SVC. Final decisions for each position will be made by Mr. Tiller.
FINANCIAL DOCUMENTS
Summary of Financial Needs
- The company is seeking a loan for start-up purposes for a new nightclub venue in Cliff, Massachusetts.
- Funds needed to accomplish goal referenced above will be $200,000. Applicant will require the entire $200,000 to finish project build-out.
Loan Funds Dispersal Statement
We will utilize the anticipated loans in the amount of $200,000 to renovate the approximate 7,200-square-foot space and purchase equipment necessary for the start-up of a new nightclub venue.
Capital Expenditures
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Audio & Lighting Lease Program
Includes: amps, speakers, all wiring, installation, equipment, and labor. |
$2,700.00 |
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Bar Equipment
Includes: 3 compartment sinks, liquor racks, reach in coolers, installation, and labor. |
$17,500.00 |
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Bar Supply (Opening Inventory)
Includes: all liquor, beer, wine, and consumables for opening. |
$7,000.00 |
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Cash Reserves/Operating Capital
Operating Capital and contingencies |
$74,550.00 |
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Exterior Signage
Includes: neon, design, artwork, installation, and labor. |
$2,500.00 |
|
Fees and Permits
Includes: all relevant fees. |
$3,500.00 |
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FFE
Includes: all furniture, fixtures, equipment, i.e.; carpet, tables, chairs, etc. |
$44,000.00 |
|
Impact Fees
Includes: charges by utilities for upgrades to usage. |
$0.00 |
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Initial Marketing
Includes: initial campaign, design, artwork, audio, video, production, and labor. |
$17,450.00 |
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Interior Refit
Includes: demolition, actual construction of bars, walls, floors, mezzanine, etc. |
$11,500.00 |
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Kitchen Upgrade
Includes: purchase of equipment (used), installation of hood and equipment, and labor. |
$1,250.00 |
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Legal
Includes all legal fees: Accountant, Attorneys, Engineers, Architects. |
$2,500.00 |
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Opening Salaries & Deposits
Includes: deposits on all accounts, opening salaries, special purchases. |
$12,500.00 |
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Paper Products
Includes: purchase of all paper type operating supplies |
$750.00 |
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Point of Sales Systems
Includes: purchase, installation, and labor for entire sales system |
$1,300.00 |
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Restroom Refit
Includes: purchase of fixtures, existing demolition, installation, and labor. |
$1,000.00 |
| Total Capital Expenditures | $200,000.00 |
Revenues
The estimated revenues are based on a 350 capacity nightclub venue, with an average daily incoming traffic ranging from approximately 225 to 325 guests Wednesday through Saturday. These forecasts are considered somewhat conservative based on the size and scope of the market. Additionally, each guest is forecasted to spend an average of $8 to $13 on beverages, depending on the night. The total door covers are less than the bar covers, due to special promotions and VIP passes. Door cover charges are anticipated to be five dollars.
Daily Revenue Breakdown
*based on 350-person capacity
| Mon | Tue | Wed | Thu | Fri | Sat | Sun | Weekly | |
| Total door covers | 0 | 0 | 225 | 225 | 325 | 325 | 0 | 1,100 |
| Average cover charge | $0 | $0 | $0 | $5.00 | $5.00 | $5.00 | $0 | $3.98 |
| Total admission sales | $0 | $0 | $0 | $1,125.00 | $1,625.00 | $1,625.00 | $0 | $4,375.00 |
| Total bar covers | 0 | 0 | 375 | 425 | 455 | 455 | 0 | 1,710 |
| Average drinks per person | 0 | 3 | 3 | 4 | 4 | 4 | 3 | 3.03 |
| Average beverage sales per person | $0 | $0 | $8.00 | $10.75 | $13.00 | $13.00 | $0 | $11.34 |
| Average price per drink | $0 | $3.75 | $3.75 | $3.75 | $3.75 | $3.75 | $3.75 | $3.75 |
| Total sales on beverages | $0 | $0 | $3,000.00 | $4,568.75 | $5,915.00 | $5,915.00 | $0 | $19,398.75 |
| Total admission and beverage sales | $0 | $0 | $3,000.00 | $5,693.75 | $7,540.00 | $7,540.00 | $0 | $23,773.75 |
| Food sales (5% of adm. and bev. sales) | $0 | $0 | $150.00 | $284.69 | $377.00 | $377.00 | $0 | $1,188.69 |
| Misc. sales (0.0% of gross sales) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Gross sales | $0 | $0 | $3,150.00 | $5,978.44 | $7,917.00 | $7,917.00 | $0 | $24,962.44 |
Expenses
Based on local industry averages, publications from ALPHA Nightclub & Bar Services, and Entrepreneur Magazine 's Bar/Nightclub Start-up Guide, we have generated the following expense figures. These figures are based on an approximate 7,200 square foot venue with a capacity of 350 guests.
The following page illustrates the staffing scenario for the new nightclub venue.
Daily Staffing Breakdown (*based on 350-person capacity)
Hourly Employees
| WEDNESDAY | |||||||
| POSITION | QUANTITY | RATE | AVG HOURS | SUBTOTAL | BENEFITS & TAXES (17%) | TOTAL | |
| Waitresses | 2.5 | $6.00 | 7 | $105.00 | |||
| Security | 4 | $8.50 | 7 | $238.00 | |||
| Bartenders | 2.5 | $6.00 | 7 | $105.00 | |||
| Barback | 1 | $6.00 | 8 | $48.00 | |||
| Cook / Misc | 1 | $8.00 | 8 | $64.00 | |||
| Total Staff Cost for Wednesday | $560.00 | $95.20 | $655.20 | ||||
| THURSDAY | |||||||
| POSITION | QUANTITY | RATE | AVG HOURS | SUBTOTAL | BENEFITS & TAXES (17%) | TOTAL | |
| Waitresses | 3 | $6.00 | 7 | $126.00 | |||
| Security | 4 | $8.50 | 7 | $238.00 | |||
| Bartenders | 3 | $6.00 | 7 | $126.00 | |||
| Barback | 1 | $6.00 | 8 | $48.00 | |||
| Cook / Misc. | 1 | $8.00 | 8 | $64.00 | |||
| Police Detail | 0 | $8.00 | 7 | $0.00 | |||
| Total Staff Cost for Thursday | $602.00 | $102.34 | $704.34 | ||||
| FRIDAY | |||||||
| POSITION | QUANTITY | RATE | AVG HOURS | SUBTOTAL | BENEFITS & TAXES (17%) | TOTAL | |
| Waitresses | 3 | $6.00 | 7 | $126.00 | |||
| Security | 4 | $8.50 | 7 | $238.00 | |||
| Bartenders | 3 | $6.00 | 7 | $126.00 | |||
| Barback | 1 | $6.00 | 8 | $48.00 | |||
| Cook / Misc. | 1 | $8.00 | 8 | $64.00 | |||
| Police Detail | 0 | $8.00 | 7 | $0.00 | |||
| Total Staff Cost for Friday | $602.00 | $102.34 | $704.34 | ||||
| SATURDAY | |||||||
| POSITION | QUANTITY | RATE | AVG HOURS | SUBTOTAL | BENEFITS & TAXES (17%) | TOTAL | |
| Waitresses | 3 | $6.00 | 7 | $126.00 | |||
| Security | 4 | $8.50 | 7 | $238.00 | |||
| Bartenders | 3 | $6.00 | 7 | $126.00 | |||
| Barback | 1 | $6.00 | 8 | $48.00 | |||
| Cook / Misc. | 1 | $8.00 | 8 | $64.00 | |||
| Police Detail | 0 | $8.00 | 7 | $0.00 | |||
| Total Staff Cost for Saturday | $602.00 | $102.34 | $704.34 | ||||
| TOTAL WEEKLY STAFFING COSTS - HOURLY EMPLOYEES | $2,366.00 | $402.22 | $2,768.22 | ||||
| SALARIED EMPLOYEES | |||||
| POSITION | SALARY: YEARLY | WEEKLY | BENEFITS & TAXES (17%) | TOTAL | |
| Manager 1 - Oper Prtnr | $50,000 | $798.08 | $163.46 | ||
| Manager 2 - General Mgr | $50,000 | $798.08 | $163.46 | ||
| Manager 3 - PR Mgr | $0 | $0.00 | $0.00 | ||
| Manager 4 - Bar Mgr | $22,500 | $359.13 | $73.56 | ||
| Manager 5 - Asst. | $0 | $0.00 | $0.00 | ||
| Entertainment | $44,000 | $846.15 | |||
| TOTAL WEEKLY STAFFING COSTS - SALARIED EMPLOYEES | $2,801.44 | $400.48 | $3,201.92 | ||
| TOTAL WEEKLY STAFFING COSTS - OVERALL | $5,970.14 | ||||
Pro Forma Cash Flow Statement - First Year
| Page 1 (Month 1 - 6, plus six-month total) | |||||||
| For Year 1 | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | SIX-MONTH TOTALS |
| GROSS SALES | |||||||
| Cash Sales - Admissions | $21,875 | $17,500 | $17,500 | $17,500 | $21,875 | $17,500 | $113,750 |
| Cash Sales - Beverage | 96,994 | 77,595 | 77,595 | 77,595 | 96,994 | 77,595 | 504,368 |
| Cash Sales - Food | 5,943 | 4,755 | 4,755 | 4,755 | 5,943 | 4,755 | 30,906 |
| TOTAL CASH AVAILABLE | $124,812 | $99,850 | $99,850 | $99,850 | $124,812 | $99,850 | $649,023 |
| EXPENSES | |||||||
| A. Variable Expenses | |||||||
| Cost of Goods Sold - Beverage | $22,309 | $17,847 | $17,847 | $17,847 | $22,309 | $17,847 | $116,005 |
| Cost of Goods Sold - Food | 1,664 | 1,331 | 1,331 | 1,331 | 1,664 | 1,331 | 8,654 |
| Hourly Wages & Benefits | 13,841 | 11,073 | 11,073 | 11,073 | 13,841 | 11,073 | 71,974 |
| Total Variable Expenses | $37,814 | $30,251 | $30,251 | $30,251 | $37,814 | $30,251 | $196,632 |
| B. Fixed Expenses | |||||||
| Direct Operating Expenses | |||||||
| Management Salaries | 16,010 | 12,808 | 12,808 | 12,808 | 16,010 | 12,808 | 83,250 |
| China, Silver, Glassware | 123 | 98 | 98 | 98 | 123 | 98 | 638 |
| Point of Sale | 583 | 583 | 583 | 583 | 583 | 583 | 3,498 |
| Audio & Lights | 1,750 | 1,750 | 1,750 | 1,750 | 1,750 | 1,750 | 10,500 |
| Equipment Rental | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Licenses & Permits | 216 | 173 | 173 | 173 | 216 | 173 | 1,125 |
| Linens/Uniforms | 481 | 385 | 385 | 385 | 481 | 385 | 2,500 |
| Janitorial | 2,163 | 1,731 | 1,731 | 1,731 | 2,163 | 1,731 | 11,250 |
| Supplies | 1,202 | 962 | 962 | 962 | 1,202 | 962 | 6,250 |
| Miscellaneous Direct Op. Exp. | 721 | 577 | 577 | 577 | 721 | 577 | 3,750 |
| Total Direct Operating Expenses | 23,249 | 19,066 | 19,066 | 19,066 | 23,249 | 19,066 | $122,761 |
| General and Admin. Expenses | |||||||
| Music and Entertainment | 2,404 | 1,923 | 1,923 | 1,923 | 2,404 | 1,923 | 12,500 |
| Advertising and Promotion | 8,654 | 6,923 | 6,923 | 6,923 | 8,654 | 6,923 | 45,000 |
| Credit Card Commission | 624 | 499 | 499 | 499 | 624 | 499 | 3,245 |
| Liquor Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Professional Fees | 481 | 385 | 385 | 385 | 481 | 385 | 2,500 |
| Insurance | 721 | 577 | 577 | 577 | 721 | 577 | 3,750 |
| Admission Taxes | 1,094 | 875 | 875 | 875 | 1,094 | 875 | 5,688 |
| Excise Taxes | 15,602 | 12,481 | 12,481 | 12,481 | 15,602 | 12,481 | 81,128 |
| Property Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Miscellaneous | 962 | 769 | 769 | 769 | 962 | 769 | 5,000 |
| Total General and Admin. | |||||||
| Expenses | 30,540 | 24,432 | 24,432 | 24,432 | 30,540 | 24,432 | 158,811 |
| Management Fee | 2,704 | 2,704 | 2,704 | 2,704 | 2,704 | 2,704 | 16,226 |
| Rent | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 | 54,000 |
| Repairs and Maintenance | 417 | 417 | 417 | 417 | 417 | 417 | 2,500 |
| Utilities | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 12,000 |
| Long-Term Loan Repayment | 3,605 | 3,605 | 3,605 | 3,605 | 3,605 | 3,605 | 21,630 |
| Total Fixed Expenses | $68,811 | $58,520 | $58,520 | $58,520 | $68,811 | $58,520 | $371,701 |
| C. Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D. Taxes (39.45%) | 3,992 | 3,992 | 3,992 | 3,992 | 3,992 | 3,992 | 23,951 |
| TOTAL CASH PAID OUT | $110,617 | $92,763 | $92,763 | $92,763 | $110,617 | $92,763 | $592,284 |
| CASH FLOW | $14,195 | $7,087 | $7,087 | $7,087 | $14,195 | $7,087 | $56,739 |
| CUMULATIVE CASH FLOW | $14,195 | $21,283 | $28,370 | $35,457 | $49,652 | $56,739 | |
| Page 2 (Month 7 - 12, plus twelve-month total) | |||||||
| Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | YEAR END TOTALS | |
| CASH RECEIPTS | |||||||
| Cash Sales - Admissions | $21,875 | $17,500 | $17,500 | $21,875 | $17,500 | $17,500 | $227,500 |
| Cash Sales - Beverage | 96,994 | 77,595 | 77,595 | 96,994 | 77,595 | 77,595 | 1,008,735 |
| Cash Sales - Food | 5,943 | 4,755 | 4,755 | 5,943 | 4,755 | 4,755 | 61,812 |
| TOTAL CASH AVAILABLE | $124,812 | $99,850 | $99,850 | $124,812 | $99,850 | $99,850 | $1,298,047 |
| CASH PAYMENTS | |||||||
| A. Variable Expenses | |||||||
| Cost of Goods Sold - Beverage | $22,309 | $17,847 | $17,847 | $22,309 | $17,847 | $17,847 | $232,000 |
| Cost of Goods Sold - Food | 1,664 | 1,331 | 1,331 | 1,664 | 1,331 | 1,331 | 17,307 |
| Salary & Benefits | 13,841 | 11,073 | 11,073 | 13,841 | 11,073 | 11,073 | 143,947 |
| Total Variable Expenses | $37,814 | $30,251 | $30,251 | $37,814 | $30,251 | $30,251 | $393,264 |
| B. Fixed Expenses | |||||||
| Direct Operating Expenses | |||||||
| Salaried Employees | 16,010 | 12,808 | 12,808 | 16,010 | 12,808 | 12,808 | 166,500 |
| China, Silver, Glassware | 123 | 98 | 98 | 123 | 98 | 98 | 1,275 |
| Point of Sale | 583 | 583 | 583 | 583 | 583 | 583 | 6,996 |
| Audio & Lights | 1,750 | 1,750 | 1,750 | 1,750 | 1,750 | 1,750 | 21,000 |
| Equipment Rental | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Licenses & Permits | 216 | 173 | 173 | 216 | 173 | 173 | 2,250 |
| Linens/Uniforms | 481 | 385 | 385 | 481 | 385 | 385 | 5,000 |
| Janitorial | 2,163 | 1,731 | 1,731 | 2,163 | 1,731 | 1,731 | 22,500 |
| Supplies | 1,202 | 962 | 962 | 1,202 | 962 | 962 | 12,500 |
| Miscellaneous Direct Op. Exp. | 721 | 577 | 577 | 721 | 577 | 577 | 7,500 |
| Total Direct Operating Expenses | 23,249 | 19,066 | 19,066 | 23,249 | 19,066 | 19,066 | 245,521 |
| General and Admin. Expenses | |||||||
| Music and Entertainment | 2,404 | 1,923 | 1,923 | 2,404 | 1,923 | 1,923 | 25,000 |
| Advertising and Promotion | 8,654 | 6,923 | 6,923 | 8,654 | 6,923 | 6,923 | 90,000 |
| Credit Card Commission | 624 | 499 | 499 | 624 | 499 | 499 | 6,490 |
| Liquor Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Professional Fees | 481 | 385 | 385 | 481 | 385 | 385 | 5,000 |
| Insurance | 721 | 577 | 577 | 721 | 577 | 577 | 7,500 |
| Admission Taxes | 1,094 | 875 | 875 | 1,094 | 875 | 875 | 11,375 |
| Excise Taxes | 15,602 | 12,481 | 12,481 | 15,602 | 12,481 | 12,481 | 162,256 |
| Property Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Miscellaneous | 962 | 769 | 769 | 769 | 962 | 769 | 10,000 |
| Total General and Admin. | |||||||
| Expenses | 30,540 | 24,432 | 24,432 | 30,348 | 24,625 | 24,432 | 317,621 |
| Management Fee | 2,704 | 2,704 | 2,704 | 2,704 | 2,704 | 2,704 | 32,451 |
| Rent | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 | 108,000 |
| Repairs and Maintenance | 417 | 417 | 417 | 417 | 417 | 417 | 5,000 |
| Utilities | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 24,000 |
| Long-Term Loan Repayment | 3,605 | 3,605 | 3,605 | 3,605 | 3,605 | 3,605 | 43,260 |
| Total Fixed Expenses | $68,811 | $58,520 | $58,520 | $68,619 | $58,712 | $58,520 | $743,402 |
| C. Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D. Taxes (39.45%) | 3,992 | 3,992 | 3,992 | 3,992 | 3,992 | 3,992 | 47,902 |
| TOTAL CASH PAID OUT | $110,617 | $92,763 | $92,763 | $110,424 | $92,955 | $92,763 | $1,184,568 |
| CASH FLOW | $14,195 | $7,087 | $7,087 | $14,388 | $6,895 | $7,087 | $113,478 |
| CUMULATIVE CASH FLOW | $70,935 | $78,022 | $85,109 | $99,497 | $106,391 | $113,478 | |
Three-Year Income Projection
| Year 1 | Year 2 | Year 3 |
Total
3 Years |
|
| INCOME | ||||
| Cash Sales - Admissions | $227,500 | $241,150 | $248,385 | $717,035 |
| Cash Sales - Beverage | 1,008,735 | 1069,259 | 1,133,415 | 3,211,409 |
| Cash Sales - Food | 61,812 | 65,520 | 69,452 | 196,784 |
| Gross Sales | $1,298,047 | $1,375,930 | $1,415,251 | $4,125,227 |
| Cost of Goods Sold - Beverage | 232,009 | 238,969 | 246,138 | 717,117 |
| Cost of Goods Sold - Food | 17,307 | 17,827 | 18,361 | 53,495 |
| Gross Margin | $1,048,730 | $1,119,134 | $1,186,751 | $3,354,615 |
| VARIABLE EXPENSES | ||||
| Hourly Wages & Benefits | $143,947 | $148,266 | $152,714 | $444,927 |
| Total Variable Expenses | $143,947 | $148,266 | $152,714 | $444,927 |
| FIXED EXPENSES | ||||
| Direct Operating Expenses | ||||
| Management Salaries | $166,500 | $171,495 | $176,640 | $514,635 |
| China, Silver, Glassware | 1,275 | 1,313 | 1,353 | 3,941 |
| Audio & Lights | 21,000 | 21,000 | 21,000 | 63,000 |
| Point of Sale | 7,000 | 7,000 | 7,000 | 21,000 |
| Equipment Rental | 0 | 0 | 0 | 0 |
| Licenses & Permits | 2,250 | 2,318 | 2,387 | 6,955 |
| Linens/Uniforms | 5,000 | 5,150 | 5,305 | 15,455 |
| Janitorial | 22,500 | 23,175 | 23,870 | 69,545 |
| Supplies | 12,500 | 12,875 | 13,261 | 38,636 |
| Miscellaneous Direct Op. Exp. | 7,500 | 7,725 | 7,957 | 23,182 |
| Total Direct Operating Expenses | $245,525 | $252,051 | $258,772 | $756,348 |
| General and Admin. Expenses | ||||
| Music and Entertainment | $25,000 | $25,750 | $26,523 | $77,273 |
| Advertising and Promotion | 90,000 | 92,700 | 95,481 | 278,181 |
| Credit Card Commission | 6,490 | 6,685 | 6,885 | 20,061 |
| Professional Fees | 5,000 | 5,150 | 5,305 | 15,455 |
| Insurance | 7,500 | 7,725 | 7,957 | 23,182 |
| Admission Taxes | 11,375 | 11,716 | 12,068 | 35,159 |
| Excise Taxes | 162,256 | 167,124 | 172,137 | 501,517 |
| Property Taxes | 0 | 0 | 0 | 0 |
| Miscellaneous | 10,000 | 10,300 | 10,609 | 30,909 |
| Total General and Admin. Expenses | $317,621 | $327,150 | $336,964 | $981,735 |
| Management Fee | $32,451 | $33,425 | $0 | $65,876 |
| Rent | $108,000 | $112,320 | $116,813 | $337,133 |
| Repairs and Maintenance | 5,000 | 5,150 | 5,305 | 15,455 |
| Utilities | 24,000 | 24,720 | 25,462 | 74,182 |
| Long-Term Loan Repayment | 43,260 | 43,260 | 43,260 | 129,780 |
| Management Fee | 0 | 0 | 0 | 0 |
| 212,711 | 218,875 | 190,839 | $622,425 | |
| Total Fixed Expenses | $775,857 | $798,075 | $786,575 | $2,360,508 |
| TOTAL OPERATING EXPENSES | $919,805 | $946,341 | $939,289 | $2,805,435 |
| EARNINGS BEFORE INT, DEPREC, AND TAXES | $128,926 | $172,793 | $247,462 | $549,180 |
| Interest | 0 | 0 | 0 | 0 |
| EARNINGS BEFORE DEPREC AND TAXES | $128,926 | $172,793 | $247,462 | $549,180 |
| Depreciation | 7,500 | 7,500 | 7,500 | 22,500 |
| EARNINGS BEFORE TAXES | $121,426 | $165,293 | $239,962 | $549,180 |
| Taxes (39.45%) | 47,902 | 65,208 | 94,665 | 207,775 |
| EARNINGS AFTER TAXES / NET PROFIT | $73,523 | $100,085 | $145,297 | $318,905 |
| Net Profit (Loss) (as a percentage of Sales) | 5.7% | 7.3% | 10.0% | 7.7% |
Extended Cash Flow Analysis
| REVENUE: | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
| Cash Sales - Admissions | $227,500 | $241,150 | 248,385 | $255,836 | $271,186 | $279,322 |
| Cash Sales - Beverage | 1,008,735 | 1,069,259 | 1,133,415 | 1,167,417 | 1,237,462 | $1,274,586 |
| Cash Sales - Food | 61,812 | 65,520 | 69,452 | 71,535 | 75,827 | $78,102 |
| Cash Sales - Miscellaneous | 0 | 0 | 0 | 0 | 0 | $0 |
| TOTAL REVENUE | $1,298,047 | $1,375,930 | 1,451,251 | $1,494,788 | $1,584,476 | $1,632,010 |
| EXPENSES: | ||||||
| Cost of Goods Sold - Beverage | $232,009 | $238,969 | 246,138 | $253,523 | $261,128 | $268,962 |
| Cost of Goods Sold - Food | 17,307 | 17,827 | 18,361 | 18,912 | 19,480 | $20,064 |
| Cost of Goods Sold - Miscellaneous | 0 | 0 | 0 | 0 | 0 | $0 |
| Hourly Wages & Benefits | 143,947 | 148,266 | 152,714 | 157,295 | 162,014 | $166,875 |
| Management Salaries | 166,500 | 171,495 | 176,640 | 181,939 | 187,397 | $193,019 |
| China, Silver, Glassware | 1,275 | 1,313 | 1,353 | 1,393 | 1,435 | $1,478 |
| Audio & Lights | 21,000 | 21,000 | 21,000 | 21,000 | 21,000 | $21,630 |
| Point of Sale | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 | $7,210 |
| Equipment Rental | 0 | 0 | 0 | 0 | 0 | $0 |
| Licenses & Permits | 2,250 | 2,317 | 2,387 | 2,459 | 2,532 | $2,608 |
| Linens/Uniforms | 5,000 | 5,150 | 5,305 | 5,464 | 5,628 | $5,796 |
| Janitorial | 22,500 | 23,175 | 23,870 | 24,586 | 25,324 | $26,084 |
| Supplies | 12,500 | 12,875 | 13,261 | 13,659 | 14,069 | $14,491 |
| Miscellaneous Direct Op. Exp. | 7,500 | 7,725 | 7,957 | 8,195 | 8,441 | $8,695 |
| Music and Entertainment | 25,000 | 25,750 | 26,522 | 27,318 | 28,138 | $28,982 |
| Advertising and Promotion | 90,000 | 92,700 | 95,481 | 98,345 | 101,296 | $104,335 |
| Credit Card Commission | 6,490 | 6,685 | 6,885 | 7,092 | 7,305 | $7,524 |
| Liquor Taxes | 0 | 0 | 0 | 0 | 0 | $0 |
| Professional Fees | 5,000 | 5,150 | 5,305 | 5,464 | 5,628 | $5,796 |
| Insurance | 7,500 | 7,725 | 7,957 | 8,195 | 8,441 | $8,695 |
| Admission Taxes | 11,375 | 11,716 | 12,068 | 12,430 | 12,803 | $13,187 |
| Excise Taxes | 162,256 | 167,124 | 172,137 | 177,301 | 182,620 | $188,099 |
| Property Taxes | 0 | 0 | 0 | 0 | 0 | $0 |
| Miscellaneous | 10,000 | 10,300 | 10,609 | 10,927 | 11,255 | $11,593 |
| Rent | 108,000 | 112,320 | 116,813 | 121,485 | 126,345 | $130,135 |
| Repairs and Maintenance | 5,000 | 5,150 | 5,305 | 5,464 | 5,628 | $5,796 |
| Utilities | 24,000 | 24,720 | 25,462 | 26,225 | 27,012 | $27,823 |
| Management Fee | 32,451 | 33,425 | ||||
| Long-Term Loan Repayment | 43,260 | 43,260 | 43,260 | 43,260 | 43,260 | 43,260 |
| TOTAL OPERATING EXPENSES | $1,169,121 | $1,203,137 | 1,203,789 | $1,238,933 | $1,275,178 | $1,312,135 |
| NET OPERATING INCOME | $128,926 | $172,793 | 247,462 | $255,855 | $309,298 | $319,874 |
| Less Interest | 0 | 0 | 0 | 0 | 0 | $0 |
| NET INCOME BEFORE DEPREC. & | ||||||
| TAXES | 128,926 | 172,793 | 247,462 | 255,855 | 309,298 | $319,874 |
| Less Depreciation | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | $7,500 |
| NET INCOME BEFORE TAXES | $121,426 | $165,293 | 239,962 | $248,355 | $301,798 | $312,374 |
| Less Taxes (39.45%) | 47,902 | 65,208 | 94,665 | 97,976 | 119,059 | $123,232 |
| NET INCOME | $73,523 | $100,085 | 145,297 | $150,379 | $182,739 | $189,143 |