WAFFLE DOG

EXPRESS
BUSINESS PLAN
2013 – 2017

Prepared by Mike and Lacie Mendes

This document contains

Confidential & Proprietary Information
Belonging exclusively to Mike and Lacie Mendes
Table of Contents
TABLE OF CONTENTS ................................................................................................................................................ 2
EXECUTIVE SUMMARY .............................................................................................................................................. 3
1.0 BUSINESS OF THE COMPANY ........................................................................................................................... 3
1.1 BUSINESS SUMMARY ................................................................................................................................................................. 3
1.2 INDUSTRY OVERVIEW ............................................................................................................................................................... 3
1.3 CURRENT SITUATION OF THE COMPANY ............................................................................................................................... 5
1.4 GOALS AND OBJECTIVES ........................................................................................................................................................... 5
1.5 KEY SUCCESS FACTORS ............................................................................................................................................................ 6
1.6 STRUCTURE OF THE COMPANY ............................................................................................................................................... 6
2.0 PRODUCT DESCRIPTION ................................................................................................................................... 7
2.1 DETAILED DESCRIPTION OF PRODUCT .................................................................................................................................. 7
2.2 STAGE OF DEVELOPMENT OF PRODUCT ................................................................................................................................ 8
2.3 LOCATION ................................................................................................................................................................................... 8
2.4 GEOGRAPHIC REACH ................................................................................................................................................................. 9
2.5 CERTIFICATION AND INSURANCE REQUIREMENTS ........................................................................................................... 10
3.0 MARKET ............................................................................................................................................................... 11
3.1 MARKET PROFILE .................................................................................................................................................................... 11
3.2 MARKET ANALYSIS ................................................................................................................................................................. 11
3.3 BUYING CRITERIA AND PROCESS .......................................................................................................................................... 13
3.4 MARKET TRENDS .................................................................................................................................................................... 14
4.0 COMPETITION .................................................................................................................................................... 16
4.1 COMPETITOR PROFILE ........................................................................................................................................................... 16
4.2 COMPETITIVE EDGE ................................................................................................................................................................ 17
5.0 MARKETING ........................................................................................................................................................ 18
5.1 PROMOTIONAL TACTICS AND TIMING ................................................................................................................................. 18
5.2 POSITIONING ............................................................................................................................................................................ 18
5.3 MARKETING AND PROMOTIONAL COSTS ............................................................................................................................ 18
5.4 PRICING ..................................................................................................................................................................................... 19
6.0 ORGANIZATION ................................................................................................................................................. 20
6.1 OWNER BIOGRAPHY ................................................................................................................................................................ 20
6.2 OWNERSHIP .............................................................................................................................................................................. 20
7.0 OPERATIONS ...................................................................................................................................................... 21
7.1 LABOUR REQUIREMENTS ....................................................................................................................................................... 21
7.2 EQUIPMENT REQUIREMENTS ................................................................................................................................................ 21
7.3 SPACE REQUIREMENTS ........................................................................................................................................................... 22
7.4 SUPPLIERS ................................................................................................................................................................................. 22
8.0 KEY RISKS ............................................................................................................................................................ 23
8.1 DESCRIPTION OF RISKS .......................................................................................................................................................... 23
9.0 FINANCIALS ......................................................................................................................................................... 24
9.1 START UP COSTS AND FUNDS ............................................................................................................................................... 24
9.2 SALES AND CASH FLOW PROJECTIONS ................................................................................................................................ 27
X. APPENDIX .............................................................................................................................................................. 36
I. FINANCIALS .................................................................................................................................................................................. 36
II. MARKET ANALYSIS .................................................................................................................................................................... 42
III. PERSONNEL PLAN ..................................................................................................................................................................... 43
IV. GENERAL FINANCIAL ASSUMPTIONS ..................................................................................................................................... 43
V. SAMPLE PHOTOS OF PRODUCT ................................................................................................................................................ 44

NOTE: This business plan sample was prepared by Greg Newton. Although based on a real plan,
company name, financials and other pertinent information has been modified for client privacy
and protection. Any similarities with actual companies are purely coincidental.
Executive Summary
Introduction
Waffle Dog Express (Waffle Dog) is a start-up ‘waffle dog’ fast food kiosk, which is proposed to
launch its first location in Metropolis at Metrotown mall in Burnaby, British Columbia. The product is
a new fast food alternative, which replaces the traditional corndog snack with an exciting, mess-
free method of enjoying waffles. Waffle Dog’s “waffle dog” brings sausage, cheese and other
fillings within a waffle product, and is targeted to people who (a) have limited time to cook, and (b)
are seeking a delicious food snack that is: quick, unique, non-messy and filling. The company is
owned and managed by the husband and wife team Mike and Lacie Mendes, who together bring
years of business management, customer service and fast food industry experience to the start-up
firm.

The Market
The Guildford area of Burnaby, B.C. is home to 60,540 people and Metropolis at Metrotown is a
central popular shopping centre that attracts a large number of people from the Burnaby and
Langley areas. This growing mall is strategically selected as Guildford is expected to increase in size
by 7640 additional people by 2021, and is projected to be connected to the Translink Skytrain
expansion by 2021.

The Canadian fast food market is an $8.81 billion industry that has experienced strong growth in
recent years, and is projected to see an additional increase of 3.1% between 2011-16. Overall, 1 in
4 Canadians have eaten from a fast-food outlet in the past 24 hours, and among teenagers aged
14-18 this number is even higher with 1 in every 3. Of those who eat fast food, 40% opt for a
pizza, sandwich, hamburger or hot dog and 25% enjoy a soft drink along with their meal. Waffle
Dog targets the two largest target audiences: (a) Teenagers aged 14-18 who are looking for an
interesting snack to try and (b) Men aged 19-30 seeking food on the go.

Financial Considerations
Management is seeking between $100,000-$125,000 in investment to finance the startup costs of
the company. Funds will be used towards cash flow requirements, inventory, equipment, rent,
advertising/signage and other kiosk costs. This will result in the following projected sales:

Year 1 Year 2 Year 3

Revenue $167,948 $245,204 $343,286
Gross Margin $84,983 $141,089 $198,405
Net Profit ($2,211) $31,755 $70,921

This target is seen as attainable through management’s industry experience, and the attractive
uniqueness of the Waffle Dog product. This business plan will discuss the tactics and strategies to
generate the revenues as stated, and the implementation to successfully become a profitable fast
food kiosk in the market.

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1.0 Business of the Company

1.1 Business Summary

Waffle Dog Express (Waffle Dog) is a start-up company that will sell a series of new and exciting
‘waffle dog’ products in a high-traffic shopping mall food court. The product replaces the traditional
“corndog” with this waffle-based, take-out treat, and brings a heightened level of diversity to the
take-out food market with this new fast food product. Waffle Dog is geared towards people who
(a) have limited time to cook, and (b) are seeking a delicious food snack that is: quick, unique,
non-messy and filling.

The company is owned and managed by Mike Mendes, who brings over 8 years of hands-on
industry experience managing a Dunkin' Donut location in Hong Kong. He has a degree in Business
Management, has worked for years in a major bank, and together with his wife, Lacie Mendes, the
team possesses a strong set of highly relevant skills in management, customer service and day-to-
day operations to successfully run the company.

The company intends to launch its first kiosk location in the Metropolis at Metrotown mall, located
on 4700 Kingsway St. in Burnaby, British Columbia. This busy mall is central to the 223,218
population of Burnaby, and easily accessible from other parts of the Lower Mainland through both
car and public transportation.

1.2 Industry Overview

Market definition

The fast food market is defined as the sale of food and drinks for immediate consumption either on
the premises or in designated eating areas shared with other foodservice operators, or for
consumption elsewhere (excluding vending machine sales)1.

Canadian Fast Food Market

The Canadian fast food market has experienced strong growth in recent years, and expected to see
moderate growth to the end of the forecast period, 2016. The market grew by 6% in 2011 to reach
a value of $7.5 billion in sales and saw a total of 4.8 billion transactions1.

1
Fast Food in Canada: MarketLine Industry Profile by MarketLine, January 2012.
3
Figure 1 - Canada fast food market value: $ million, 2007-11(e)

Market Value Forecast: Proposed Growth

In 2016, the Canadian fast food market is forecast to have a value of $8.81 billion, an increase of
16.2% since 2011. The compound annual growth rate of the market in the period 2011–16 is
predicted to be 3.1%1.

Figure 2 - Canada fast food market value forecast: $ million, 2011-16

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Figure 3 - Canada fast food market value forecast: $ million, 2011-16

1.3 Current Situation of the Company

Waffle Dog is currently in its start-up phase, and seeking $100,000-125,000 in funding to open its
first mall location in Metrotown Mall.

1.4 Goals and Objectives

Goals

• To become the recognized fast-food waffle kiosk in Lower Mainland.

• To raise sufficient funds and become a profitable business venture.

Objectives

• To gain 25% brand awareness in the target market within the first 12 months of operations,
and 55% brand awareness by end of Year 3.
• To raise between $100,000 and $125,000 in start-up funding.
• To generate revenues of $167,948 in Year 1, $245,204 in Year 2 and $343,286 in Year 3 of
operations. To achieve break-even between months 5 and 6.

5
1.5 Key Success Factors
Clean, Fast & Convenient Product
In order to succeed as a fast-food waffle product in a mall kiosk, the customer must be able to
make a quick and convenient purchase, and enjoy the meal without any mess.

Low Cost Items

Waffles (and fast food items in general) are viewed by the target market as a relatively inexpensive
food item, thus Waffle Dog price point must reflect that.

1.6 Structure of the Company

The company is a sole proprietorship firm, owned by Mike Mendes at present time. As the sales
grow and the company expands, management intends to upgrade the company to a corporate
structure, with 50% share ownership each for Mike and Lacie Mendes.

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2.0 Product Description

2.1 Detailed Description of Product

Waffle Dog is a unique food offering to people who desire food that is a convenient, mess-free,
"grab and eat" meal. It is both an interesting and delicious alternative to the typical pizza and fast
foods available for mall-going consumers. The key to success of Waffle Dog products lies in its
affordability, wholesome ingredients and originality.

Waffle Dog have two types of product offerings: Savories/mainstays and desserts.

Savories & Mainstays

The savories and mainstays are waffle dogs, which are essentially waffle flavored “dogs,” with a
cream, meat or other flavored filling. They are delicious in flavor, and make the perfect meal or
snack for the mass consumer market. Customers will be able to choose from the following
products:

• Sausage waffles
• Waffle dog
• Waffle cheese
• Waffle pizza

Desserts

As a sweet and unique treat, Waffle Dog will offer both chocolate waffle dogs, and waffles with
fruit and cream flavored fillings.

• Belgian chocolate covered waffles (AKA ‘fudge puppies’)

• Stuffed waffles with various fruit-flavored cream and seasonal fruit toppings for the Belgian
waffles.

This product is both delicious and unique; Waffle Dog is not the usual corn dog, but rather an
elevated form of eating waffles. Finally, in addition to containing the staple maple syrup flavoring,
the waffles will also contain a secret syrup with a tropical twist taste, that goes well with several
types of product offerings.

The following is a visual sample of the products:

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2.2 Stage of Development of Product
The mainstay products have been finalized, and management is currently in the process of adding
at least two more options that they believe may become classic menu items. Products will be
tested against consumer preferences throughout its first 3 months of operations, and modified as
per consumer tastes and preferences.

2.3 Location
Waffle Dog’ first proposed location will be in the form of a kiosk in the Metrotown Mall in Burnaby,
British Columbia. Once the location is secured and has gained a profitable foothold both

8
operationally and within the market, management intends to expand the brand a second proposed
location in Langley Willow Brook Mall, in Langley, British Columbia.

The kiosk’s operational hours will reflect that of Metropolis at Metrotown’s operating hours, which
are as follows2:

• Monday & Tuesday: 10:00am to 6:00pm

• Wednesday to Friday 10:00am to 9:00pm
• Sunday, Saturday & Holidays 10:00am to 6:00pm

2.4 Geographic Reach

Burnaby

Metropolis at Metrotown mall attracts individuals from all over Burnaby – including residents of
Guildford and Fraser Heights. Burnaby is home to a total of 223,218, and is projected to see
expanded growth over the upcoming years3. Metropolis at Metrotown was selected specifically by
management, as it is one of the largest malls in the city, and frequented by people from all areas
of Burnaby and nearby cities including Guildford.

Guildford is home to approximately 60,540 people, and the area saw a 12.2% increase in
population between 2002-12. It is also projected to see growth of an additional 7640 people by
20213. The closest significant neighbourhood that the company is expected to reach is the
northernmost part of Guildford also known as Fraser Heights. This neighbourhood has a population
of about 4,000 people and its residents consist mostly of middle to upper-income families and the
housing consists of large single-family homes.

• Burnaby Population: 223,218

• Surrey Population: 492,160
• Guildford Population: 60,540

Guildford mall is also included in the upcoming Skytrain expansion of the Expo line, which will
connect the mall to the rest of the Lower Mainland skytrain areas by 20204. The addition of this
access is likely to increase both the number of foot traffic in Metropolis at Metrotown, and expand
the geographical reach of Waffle Dog throughout other areas of the Lower Mainland.

2
http://www.guildfordtowncentre.com/en-CA
3
City of Burnaby Population Estimates & Projections. City Of Burnaby. 2010. http://www.Burnaby.ca/for-
business/1418.aspx.
4
Nagel, Jeff (January 16, 2008) "More SkyTrains for Burnaby". Burnaby North Delta Leader.
http://web.archive.org/web/20080120191344/http://www.bclocalnews.com/Burnaby_area/Burnabyleader/ne
ws/More_SkyTrains_for_Burnaby.html
9
Langley

Metropolis at Metrotown is frequented by Burnaby and Langley residents due to its accessibility and
close proximity to the city. Management expects that a certain percentage of its customers will
include Langley residents, as well as individuals from other surrounding Metro Vancouver cities.

2.5 Certification and Insurance Requirements

The company will require both insurance and food safe certification. Management intends to gain
certification up to Level 2 Food Safe certification for the business.

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3.0 Market

3.1 Market Profile

Demographics

According to one of the largest consumer surveys on eating conducted in Canada by Statistics
Canada, approximately one-quarter (25%) of Canadians have eaten something from a fast-food
outlet in the last 24 hours. Among teenagers aged 14 to 18, the proportion was one-third (33%)5.
Men ages 19 to 30 were the most likely to get food on the go; 39 per cent of them had done so on
the day they were interviewed. Of those who ate fast food, 40% opted for a pizza, sandwich,
hamburger or hot dog and a quarter of the respondents had a soft drink along with their meal5.

Waffle Dog largest target audience age group segments are as follows:

1. Teenagers aged 14-18. This market is always looking for an interesting snack to try, and
would be an excellent repeat customer segment for Waffle Dog.
2. Men aged 19-30 (for food on the go). This includes professionals who prefer not to cook at
home, and/or want eat a snack during after or between shopping.

Geographics

Waffle Dog’s primary customer base is Burnaby residents. These individuals (a) frequent the
Metropolis at Metrotown mall, (b) are likely to see Waffle Dog during their shopping and (c) are
most likely to be responsive to coupons and/or promotional campaigns.

3.2 Market Analysis

Category Segmentation

Quick service restaurants (QSR), or ‘fast food restaurants’ is the largest segment of the fast food
market in Canada, accounting for 75.4% of the market’s total value. The category segment that
Waffle Dog competes in, takeaways, accounts for 5.2% of the market6.

5
Canadian Community Healthy Survey by Statistics Canada, 2007. Source: Canada turning into fast-food
nation by Canada.com. http://www.canada.com/vancouversun/news/story.html?id=284fbbac-3be5-4498-
92cb-065ebf37ab77
6
Fast Food in Canada: MarketLine Industry Profile by MarketLine, January 2012.
11
Figure 4 - Canada fast food market category segmentation, by value, 2011 (e)

Management has segmented its product market analysis into the sales of (a) waffles (b) beverages
and (c) other. Waffles include all Waffle Dog products, with all filling options. Beverages range
from soft drinks to bottled water and juices, and other includes other desserts and snack packages
and add-ons available at the kiosk.

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 Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Growth CAGR
Customers
Waffles 20% 15,000 18,000 21,600 25,920 31,104 20.00%
Beverages 12% 17,500 19,600 21,952 24,586 27,537 12.00%
Other 25% 3,500 4,375 5,469 6,836 8,545 25.00%
Total 16.88% 36,000 41,975 49,021 57,342 67,186 16.88%

3.3 Buying Criteria and Process

Management identifies two primary criterions for its target market that must be met in order for a
purchase (or repeat purchase) to occur:

1) Ability to purchase with all common payment options: cash, credit card and debit card.
2) Waffle Dog product(s) is clean (non-messy), fast to receive, and unique and delicious in
taste.

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3.4 Market Trends
1. Increasing Target Market Population
Population increase is projected for both Guildford and overall Burnaby areas. The City of Burnaby
projects that by 2041 Burnaby will be home to 1 in 5 residents of Metro Vancouver and that the
Guildford area population will grow by an additional 7640 people by 20217.

Figure 5 - SOURCE: City of Burnaby

7
City of Burnaby Population Estimates & Projections. City Of Burnaby. 2010. http://www.Burnaby.ca/for-
business/1418.aspx
14
2. Increased Public Transit Access (Skytrain)
The 2008 Provincial Transit Plan includes a proposed Skytrain expansion to Guildford Town Centre
by 20208. This plans includes a 6-km extension of the Expo line from King George Station in
Burnaby east to Guildford, then along 152 Street to the Fraser Highway and southeast as far as
168 Street.

This proposed expansion will allow enhanced access from other areas of Metro Vancouver, and will
likely increase mall foot traffic levels for Metropolis at Metrotown mall.

3. Health Conscious Consumer Trends

Consumers are also becoming increasingly health-conscious. While major fast food retailers have
responded by expanding the number of healthy options on their menus, the general trend toward
health awareness has hurt demand for the typically greasy food provided by the these restaurants9.

4. Increased Gourmet Food Offerings

Quick-serve restaurants are adding gourmet offerings to their menus in order to compete with their
fast-casual counterparts. This includes lush garden salads with candied walnuts and berries, iced
mochas, caramel frappés and expressos. The traditional burgers in past decades of lettuce and
tomato are giving rise to burgers piled with portobello mushrooms and Gouda cheese10.

5. Interiors Updated For Lingering

Interiors are changing designs to encourage lingering. Tim Hortons has led this change by
outfitting its stores with club-style seating and flat-screen TV's. McDonald's has also rolled out a
more inviting format in the last few years, realizing that the restaurants can become another place
to hang out, similar to cafes, bookstores and fast-casual concepts. Interiors are also changing to a
more bright and clean look10.

8
The Provincial Transit Plan by British Columbia Government. http://www.th.gov.bc.ca/transit_plan/
9
Global Fast Food Restaurants: Market Research Report by IBISWorld, December 2012.
10
Do You Want Truffle Fries With That? by Jason Daley. Entrepreneur, January 2013.
15
4.0 Competition

4.1 Competitor Profile

Direct Competition

Waffle Dog’s largest direct competitors are the major chain waffle and pancake houses, IHOP
(International House of Pancakes) and Denny’s. These companies have access to an extensive
network of suppliers and leverage economies of scale due to their size. Both competitors offer
waffle products, and IHOP in particular offers a similar product to Waffle Dog, which is a variety of
Belgium waffles and crepes.

These competitors do, however, require the customer to sit down for their meal, and are not
available in the typical mall food court marketplace. This makes both IHOP and Denny’s less
appealing to the growing “on-the-go” target market. The major strengths of these competitors lie
in their low cost, product consistency and strong brand reputation.

Indirect Competition

Management identifies the most significant indirect competition for the Waffle Dog product as
frozen waffles that are toasted at home. This includes brands such as Eggo (Kellogg’s), Aunt
Jemima, Vans Natural Foods and other frozen waffle products sold in major grocery stores. They
cost in the price range of only $2.50-3.50 for a package of 10 waffles, and are geared to meet the
needs of individuals with very limited time to cook, at a very low cost.

Waffle Dog’ advantage over these competitors is (a) increased convenience as a one-stop snack for
the customer, and (b) the kiosk will offer the complete syrup product – mess free – which is easier
for the customer while potentially providing a more full and delicious meal. Waffle Dog also comes
in the form very similar to a corn dog, hence eliminating the need for a plate.

Substitute Products

Major Fast Food Chains

Mall food courts have a multitude of fast food competitors for the time-crunched consumer to
choose from. The leading fast food operators in Canada are11:

• Cara Operations – the company’s brand portfolio comprises of Swiss Chalet, Kelsey's,
Harvey's, Milestone's Grill & Bar and Montana's Cookhouse)
• McDonald’s Corporation – McDonald’s is the world’s largest food service retailing chain,
operating 32,737 restaurants in 117 as of 2010.
• Wendy’s/Arby’s Group – Wendy’s/Arby’s is a quick service restaurant company, owning or
franchising over 10,000 restaurants.
• Yum! Brands - Yum! Brand develops, operates, franchises and licenses a system of
restaurants. The company operates the following five branded restaurant concepts: KFC,

11
Fast Food in Canada: MarketLine Industry Profile by MarketLine, January 2012.
16
 Pizza Hut, Taco Bell, LJS and A&W. It operates more than 37,000 restaurants in more than
110 countries.

Management identifies Yum! Brands is its primary substitute competitor group, as these fast food
restaurant chains are typically found in mall food courts (including Metropolis at Metrotown). These
fast food chains represent a wide variety of substitute options over Waffle Dog products.

Pizza and Crepes

Consumers could select a whole host of substitute fast-food options. Similar food products include
pizza (pizza slice from Guildford food court), crepes (e.g. Café Crepe) or other similar food items to
Waffle Dog to satisfy their fast snack or meal needs.

4.2 Competitive Edge

Waffle Dog’s competitive edge lies in the uniqueness of the product. There is currently nothing like
Waffle Dog in the marketplace, and this offers a fun and exciting snack that is both fast and
delicious. Customers can enjoy eating the waffle dogs in a brand new form, and enjoy its
homemade syrup and unique flavours, which are not currently found anywhere else in the market.
The main competitive feature is that Waffle Dog captures all these features, and delivers them in
such an easy, mess-free product form.

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5.0 Marketing

5.1 Promotional Tactics and Timing

1. Attractive Kiosk Signage & “Mess-Free” Message

As the kiosk is the primary touch point with for new (and returning) customers, management will
use signage and kiosk imagery that displays the product attractively and communicates the core
message of being “mess-free.” This messaging is emphasized as Waffle Dog is the ultimate ‘walk
food,’ and must overcome any preexisting associations with waffles and messy/sticky syrup with
regular homemade waffles.

Final signage selected will be based on affordability.

2. Social Media

Social media will be used as a big tool in promoting Waffle Dog entrance to the marketplace. It will
be used to help share the interesting new product, as well as offer timely offers and promotions to
its followers. This marketing tool is selected as for its viral capabilities, effectiveness in target
audience reach, and low cost. Management will use Twitter and Facebook as the primary social
media tools for Waffle Dog.

3. Coupons & Promotions

Coupons and promotional tactics will be used to generate the first customers for Waffle Dog. This
will be done to generate brand awareness and product trial within the Burnaby target market.

5.2 Positioning
Waffle Dog will be positioned around its product quality and taste. This will include a focus on the
exciting product “newness” of Waffle Dog as it enters into the infancy stage of its life cycle in the
marketplace.

5.3 Marketing and Promotional Costs

The company will keep most marketing costs to a minimum through its social media efforts and
one-time kiosk signage costs. The company will spend approximately $2,400 on sales and
marketing costs annually, and will leverage its key location to maximize both foot traffic and word-
of-mouth marketing.

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5.4 Pricing
Management will implement a cost-based pricing strategy, and aims to price Waffle Dog such that
the company sees between 50-60% gross margins on product sales.

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6.0 Organization

6.1 Owner Biography

Waffle Dog is owned by Mike Mendes, and will be operated and managed day-to-day by both Mike
and his wife, Lacie Mendes.

Mike Mendes

Mike is experienced in managing a Dunkin Donut location in Hong Kong, and brings a host of
strong skills and experiences from this background that will be highly transferrable to the Waffle
Dog business. He is a graduate of University of San Agustin - a Government-recognized University
based in Iloilo, Philippines – and has a Bachelor’s degree in Commerce with a major in Business
Management. Mike has additional experience working as a cashier at one of the major banks in the
Hong Kong for 10 years prior to immigrating to Canada.

Lacie Mendes

Lacie has 8 years experience in the money service industry, including experience in both customer
service and working the cash register till. In the past she worked a team leader for the Burnaby
Branch of the Custom House Currency Exchange. Currently Lacie works for Western Union as a
senior customer service representative. She has a Bachelor’s degree in Mass Communications and
was an employee for a major bank in Hong Kong for several years prior to immigrating to Canada.

Both Mike and Lacie bring a high level of professional skills, industry knowledge and hard-working
efficiency to Waffle Dog. Their combined levels of skill, experience and passion are essential to
both the success of the company, and ensuring that the firm meets the goals and sales objectives
as outlined in this business plan.

6.2 Ownership
The company is currently owned as a sole proprietorship company by Mike Mendes. Mike plans to
incorporate the company in the near future, at which point the firm will be owned with equal
ownership (50-50) by Mike and Lacie Mendes.

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7.0 Operations

7.1 Labour Requirements

Waffle Dog will be managed and operated by Nick and Lacie in its first year of operations. In Year
2 a third employee will be added to help run the kiosk, and in Year 3 a forth employee will be
added for the daily running of the operation. Responsibilities of the employees will be to make the
food, perform all purchases and provide excellent customer service. Total costs for personnel will
be $46,000 in Year 1, $64,800 in Year 2 and $80,500 in Year 3.

Labour

Personnel Plan
Year 1 Year 2 Year 3
Lacie $24,000 $27,000 $30,000
Nick $22,000 $27,000 $30,000
Employee 2 $0 $10,800 $12,000
Employee 3 $0 $0 $8,500
Employee 4 $0 $0 $0
Total People 2 3 4

Total Payroll $46,000 $64,800 $80,500

Please see Appendix for a detailed month-by-month personnel hiring plan.

7.2 Equipment Requirements

Waffle Dog will require equipment to make the waffle dog products. These products include the
following:

• Waffle dog maker – Price: $1,045.00

• Waffle dog warmer – Price: $925.00
• Chocolate dip warmer – Price: $380.00

The primary equipment item is the waffle dog maker as the company will be required to purchase
multiple machines. More than one dog warmer will also be required, and management will adjust
its equipment efficiency to match sales volume as the company proceeds operations.

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7.3 Space Requirements
In addition to the kiosk mall location, management may require a small storage space for various
product, signage and equipment storage as per needed.

7.4 Suppliers
Both equipment and approximately 70% of product supply will be sourced through Harlan
Fairbanks (www.harlands.ca). These sourced ingredients include the waffle batter, spray oil and
hotdog fillings. For cheese and other fillings the product will be either homemade or sourced
through another supplier.

Management is in conversation with Harlan Fairbanks as the sole supplier of most inventories and
equipment.

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8.0 Key Risks

8.1 Description of Risks

New Business

The opening of a new business is always a risk. Management has spent several months researching
the industry extensively and believes that there is a strong opportunity to set up a profitable Waffle
Dog business in the Metropolis at Metrotown food court. Mike and Lacie possess sufficient business
experience and Mike brings hands-on knowledge in the fast-food industry. The company is
structured accordingly to minimize the risk when entering the market. However, there are many
variables to a start-up, which provide significant risk in the effort to achieve a competitive stance in
the marketplace.

Inability to Convert Foot Traffic To Sales

A large part of Waffle Dog’s marketing and sales strategy lies in its ability to leverage its high foot-
traffic location and convert walk-by’s into paying, repeat customers. If the market fails to accept
Waffle Dog as a new meal/snack to replace their current food choices, Waffle Dog may be unable
to achieve sales projections as outlined in this plan. Management aims to ensure the success of the
company by experimenting with various marketing messages and tactics, to create a positive brand
image and ultimately drive product trial purchases.

23
9.0 Financials

9.1 Start Up Costs and Funds

Management is seeking between $100,000-$125,000 in funding to finance the start-up costs of the
fast food kiosk business. Funds will be used towards cash flow requirements, inventory, equipment,
rent, advertising/signage and other kiosk costs.

24
Startup Funding
Startup Expenses to Fund $8,000
Startup Assets to Fund $117,000
Total Funding Required $125,000

Assets
Non-cash Assets from Startup $100,000
Cash Requirements from Startup $17,000
Additional Cash Raised $0
Cash Balance on Starting Date $17,000
Total Assets $117,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $125,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $125,000

Capital

Planned Investment
$0
$0
Additional Investment Requirement $0
Total Planned Investment $0

Loss at Startup (Startup Expenses) ($8,000)

Total Capital ($8,000)

Total Capital and Liabilities $117,000

Total Funding $125,000

25
Startup

Requirements

Startup Expenses
Legal $2,000
Stationery etc. $500
Brochures $1,000
Consultants $2,000
Rent $2,500
Total Startup Expenses $8,000

Startup Assets
Cash Required $17,000
Other Current Assets
Long-term Assets $100,000
Total Assets $117,000

Total Requirements $125,000

26
9.2 Sales and Cash Flow Projections
Sales Forecast (Years 1-3)

Sales Forecast
Year 1 Year 2 Year 3
Sales
Food $99,879 $145,823 $204,153
Other $17,228 $25,153 $35,214
Beverages $50,841 $74,228 $103,919
Total Sales $167,948 $245,204 $343,286

Direct Cost of Sales Year 1 Year 2 Year 3

Food $51,570 $65,621 $91,869
Other $10,260 $8,804 $11,445
Beverages $21,136 $29,691 $41,568
Subtotal Direct Cost of Sales $82,965 $104,115 $144,881

27
Monthly Sales Projections (Year 1)

28
29
30
Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $14,360

Assumptions:
Average Percent Variable Cost 49%
Estimated Monthly Fixed Cost $7,266

31
Pro Forma Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $167,948 $245,204 $343,286
Direct Cost of Sales $82,965 $104,115 $144,881
Other Costs of Goods $0 $0 $0
Total Cost of Sales $82,965 $104,115 $144,881

Gross Margin $84,983 $141,089 $198,405

Gross Margin % 50.60% 57.54% 57.80%

Expenses
Payroll $46,000 $64,800 $80,500
Sales and Marketing and Other Expenses $2,400 $2,400 $2,400
Depreciation $5,004 $5,004 $5,004
Rent $19,000 $20,000 $22,000
Utilities $3,600 $3,600 $3,600
Insurance $3,000 $3,000 $3,000
Payroll Taxes $8,190 $10,530 $10,980
Other $0 $0 $0

Total Operating Expenses $87,194 $109,334 $127,484

Profit Before Interest and Taxes ($2,211) $31,755 $70,921

EBITDA $2,793 $36,759 $75,925
Interest Expense $9,425 $8,407 $7,346
Taxes Incurred $0 $7,004 $19,073

Net Profit ($11,636) $16,343 $44,503

Net Profit/Sales -6.93% 6.67% 12.96%

32
Pro Forma Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $167,948 $245,204 $343,286
Subtotal Cash from Operations $167,948 $245,204 $343,286

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $5,000 $0 $0
Subtotal Cash Received $172,948 $245,204 $343,286

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $174,580 $223,857 $293,779
Bill Payments $0 $0 $0
Subtotal Spent on Operations $174,580 $223,857 $293,779

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $13,272 $13,272 $13,272
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $187,852 $237,129 $307,051

Net Cash Flow ($14,904) $8,075 $36,235

Cash Balance $2,096 $10,171 $46,406

33
34
Pro Forma Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $2,096 $10,171 $46,406
Other Current Assets $0 $0 $0
Total Current Assets $2,096 $10,171 $46,406

Long-term Assets
Long-term Assets $100,000 $100,000 $100,000
Accumulated Depreciation $5,004 $10,008 $15,012
Total Long-term Assets $94,996 $89,992 $84,988
Total Assets $97,092 $100,163 $131,394

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $0 $0 $0

Long-term Liabilities $111,728 $98,456 $85,184

Total Liabilities $111,728 $98,456 $85,184

Paid-in Capital $5,000 $5,000 $5,000

Retained Earnings ($8,000) ($19,636) ($3,293)
Earnings ($11,636) $16,343 $44,503
Total Capital ($14,636) $1,707 $46,210
Total Liabilities and Capital $97,092 $100,163 $131,394

Net Worth ($14,636) $1,707 $46,210

General Assumptions

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 6.00% 6.00% 6.00%
Long-term Interest Rate 8.00% 8.00% 8.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

35
X. Appendix

i. Financials
Pro Forma Cash Flow (Month-by-Month)

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Cash Received

Cash from Operations

Cash Sales $8,070 $10,604 $12,308 $12,179 $13,045 $15,508 $15,501 $15,790 $15,825 $16,283 $16,276 $16,560
Subtotal Cash from $8,070 $10,604 $12,308 $12,179 $13,045 $15,508 $15,501 $15,790 $15,825 $16,283 $16,276 $16,560
Operations

Additional Cash Received

Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000
Subtotal Cash Received $8,070 $10,604 $12,308 $12,179 $13,045 $15,508 $15,501 $16,790 $16,825 $17,283 $17,276 $17,560

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12

Expenditures from
Operations
Cash Spending $8,771 $12,161 $14,325 $14,241 $14,827 $15,468 $15,558 $15,710 $15,601 $15,919 $15,931 $16,068
Bill Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Spent on $8,771 $12,161 $14,325 $14,241 $14,827 $15,468 $15,558 $15,710 $15,601 $15,919 $15,931 $16,068
Operations

36
Additional Cash Spent
Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities $1,106 $1,106 $1,106 $1,106 $1,106 $1,106 $1,106 $1,106 $1,106 $1,106 $1,106 $1,106
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $9,877 $13,267 $15,431 $15,347 $15,933 $16,574 $16,664 $16,816 $16,707 $17,025 $17,037 $17,174

Net Cash Flow ($1,807) ($2,663) ($3,123) ($3,168) ($2,888) ($1,066) ($1,163) ($26) $118 $257 $239 $386
Cash Balance $15,193 $12,530 $9,406 $6,238 $3,351 $2,285 $1,122 $1,097 $1,214 $1,471 $1,710 $2,096

37
Pro Forma Balance Sheet (Month-by-Month)

Pro Forma
Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Assets Starting
Balances

Current Assets
Cash $17,000 $15,193 $12,530 $9,406 $6,238 $3,351 $2,285 $1,122 $1,097 $1,214 $1,471 $1,710 $2,096
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total Current $17,000 $15,193 $12,530 $9,406 $6,238 $3,351 $2,285 $1,122 $1,097 $1,214 $1,471 $1,710 $2,096
Assets

Long-term Assets
Long-term Assets $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Accumulated $0 $417 $834 $1,251 $1,668 $2,085 $2,502 $2,919 $3,336 $3,753 $4,170 $4,587 $5,004
Depreciation
Total Long-term $100,000 $99,583 $99,166 $98,749 $98,332 $97,915 $97,498 $97,081 $96,664 $96,247 $95,830 $95,413 $94,996
Assets
Total Assets $117,000 $114,776 $111,696 $108,156 $104,571 $101,266 $99,783 $98,204 $97,761 $97,461 $97,302 $97,123 $97,092

Liabilities and Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
Capital 10 11 12

Current Liabilities
Accounts Payable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

Long-term $125,000 $123,894 $122,788 $121,682 $120,576 $119,470 $118,364 $117,258 $116,152 $115,046 $113,940 $112,834 $111,728
Liabilities
Total Liabilities $125,000 $123,894 $122,788 $121,682 $120,576 $119,470 $118,364 $117,258 $116,152 $115,046 $113,940 $112,834 $111,728

Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $2,000 $3,000 $4,000 $5,000

Retained Earnings ($8,000) ($8,000) ($8,000) ($8,000) ($8,000) ($8,000) ($8,000) ($8,000) ($8,000) ($8,000) ($8,000) ($8,000) ($8,000)
Earnings $0 ($1,118) ($3,092) ($5,526) ($8,005) ($10,204) ($10,581) ($11,054) ($11,391) ($11,585) ($11,638) ($11,711) ($11,636)
Total Capital ($8,000) ($9,118) ($11,092) ($13,526) ($16,005) ($18,204) ($18,581) ($19,054) ($18,391) ($17,585) ($16,638) ($15,711) ($14,636)
Total Liabilities $117,000 $114,776 $111,696 $108,156 $104,571 $101,266 $99,783 $98,204 $97,761 $97,461 $97,302 $97,123 $97,092
and Capital

Net Worth ($8,000) ($9,118) ($11,092) ($13,526) ($16,005) ($18,204) ($18,581) ($19,054) ($18,391) ($17,585) ($16,638) ($15,711) ($14,636)

38
Pro Forma Profit and Loss (Month-by-Month)

Pro Forma Profit

and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Sales $8,070 $10,604 $12,308 $12,179 $13,045 $15,508 $15,501 $15,790 $15,825 $16,283 $16,276 $16,560
Direct Cost of Sales $4,145 $5,543 $6,444 $6,367 $6,825 $7,474 $7,436 $7,595 $7,495 $7,820 $7,839 $7,983
Other Costs of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Goods
Total Cost of Sales $4,145 $5,543 $6,444 $6,367 $6,825 $7,474 $7,436 $7,595 $7,495 $7,820 $7,839 $7,983

Gross Margin $3,925 $5,061 $5,864 $5,812 $6,220 $8,034 $8,065 $8,195 $8,331 $8,463 $8,437 $8,577
Gross Margin % 48.64% 47.73% 47.64% 47.72% 47.68% 51.81% 52.03% 51.90% 52.64% 51.97% 51.84% 51.79%

Expenses
Payroll $2,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Sales and Marketing $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
and Other Expenses
Depreciation $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Rent $750 $750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750
Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Payroll Taxes 15% $300 $300 $570 $570 $705 $705 $840 $840 $840 $840 $840 $840
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating $4,217 $6,217 $7,487 $7,487 $7,622 $7,622 $7,757 $7,757 $7,757 $7,757 $7,757 $7,757
Expenses

Profit Before ($292) ($1,156) ($1,623) ($1,675) ($1,402) $412 $308 $438 $574 $706 $680 $820
Interest and Taxes
EBITDA $125 ($739) ($1,206) ($1,258) ($985) $829 $725 $855 $991 $1,123 $1,097 $1,237
Interest Expense $826 $819 $811 $804 $796 $789 $782 $774 $767 $760 $752 $745
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($1,118) ($1,974) ($2,434) ($2,479) ($2,199) ($377) ($474) ($337) ($193) ($54) ($72) $75
Net Profit/Sales -13.85% -18.62% -19.78% -20.36% -16.85% -2.43% -3.05% -2.13% -1.22% -0.33% -0.45% 0.45%

39
Sales Forecast (Month-by-Month)

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Sales
Food 0% $4,750 $6,119 $7,563 $6,939 $7,235 $8,732 $9,250 $9,885 $9,935 $9,748 $9,846 $9,878
Other 0% $770 $1,060 $995 $1,285 $1,543 $1,987 $1,552 $1,454 $1,345 $1,660 $1,720 $1,857
Beverages 0% $2,550 $3,425 $3,750 $3,955 $4,267 $4,789 $4,699 $4,451 $4,545 $4,875 $4,710 $4,825
Total Sales $8,070 $10,604 $12,308 $12,179 $13,045 $15,508 $15,501 $15,790 $15,825 $16,283 $16,276 $16,560

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12
Food $2,613 $3,365 $4,160 $3,816 $3,979 $4,366 $4,625 $4,943 $4,968 $4,874 $4,923 $4,939
Other $385 $636 $597 $771 $926 $1,192 $931 $872 $807 $996 $1,032 $1,114
Beverages $1,148 $1,541 $1,688 $1,780 $1,920 $1,916 $1,880 $1,780 $1,720 $1,950 $1,884 $1,930
Subtotal Direct Cost of $4,145 $5,543 $6,444 $6,367 $6,825 $7,474 $7,436 $7,595 $7,495 $7,820 $7,839 $7,983
Sales

40
Ratio Analysis

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 46.00% 40.00% 6.96%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 28.39%
Total Current Assets 2.16% 10.15% 35.32% 37.68%
Long-term Assets 97.84% 89.85% 64.68% 62.32%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 0.00% 0.00% 0.00% 19.17%

Long-term Liabilities 115.07% 98.30% 64.83% 29.21%
Total Liabilities 115.07% 98.30% 64.83% 48.38%
Net Worth -15.07% 1.70% 35.17% 51.62%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 50.60% 57.54% 57.80% 59.31%
Selling, General & Administrative Expenses 124.93% 71.86% 58.72% 39.09%
Advertising Expenses 0.00% 0.00% 0.00% 2.75%
Profit Before Interest and Taxes -1.32% 12.95% 20.66% 1.59%

Main Ratios
Current 0.00 0.00 0.00 1.26
Quick 0.00 0.00 0.00 0.87
Total Debt to Total Assets 115.07% 98.30% 64.83% 54.38%
Pre-tax Return on Net Worth 79.50% 1367.43% 137.58% 3.27%
Pre-tax Return on Assets -11.98% 23.31% 48.39% 7.17%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -6.93% 6.67% 12.96% n.a
Return on Equity 0.00% 957.20% 96.31% n.a

Activity Ratios
Accounts Payable Turnover 0.00 0.00 0.00 n.a
Payment Days 0 0 0 n.a
Total Asset Turnover 1.73 2.45 2.61 n.a

41
 Debt Ratios
Debt to Net Worth 0.00 57.66 1.84 n.a
Current Liab. to Liab. 0.00 0.00 0.00 n.a

Liquidity Ratios
Net Working Capital $2,096 $10,171 $46,406 n.a
Interest Coverage -0.23 3.78 9.65 n.a

Additional Ratios
Assets to Sales 0.58 0.41 0.38 n.a
Current Debt/Total Assets 0% 0% 0% n.a
Acid Test 0.00 0.00 0.00 n.a
Sales/Net Worth 0.00 143.61 7.43 n.a
Dividend Payout 0.00 0.00 0.00 n.a

ii. Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Waffles 20% 15,000 18,000 21,600 25,920 31,104 20.00%
Beverages 12% 17,500 19,600 21,952 24,586 27,537 12.00%
Other 25% 3,500 4,375 5,469 6,836 8,545 25.00%
Total 16.88% 36,000 41,975 49,021 57,342 67,186 16.88%

42
iii. Personnel Plan

Personnel Plan
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Lacie 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Nick 0% $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Employee 2 0% $0 $0 ` $0 $0 $0 $0 $0 $0 $0 $0 $0
Employee 3 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Employee 4 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 1 2 2 2 2 2 2 2 2 2 2 2

Total Payroll $2,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000

iv. General Financial Assumptions

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%
Long-term Interest 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
Rate
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

43
v. Sample Photos of Product

44
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