buisness proposal
DESCRIPTION
Which route should the client take.. Project for a Business Information Systems Mgmt class.TRANSCRIPT
Michael E Gilbert, FounderMichael E Gilbert, Founder2460 Stonegate Dr NW2460 Stonegate Dr NW
Acworth, GA 30101Acworth, GA 30101http://students.kennesaw.edu/http://students.kennesaw.edu/
~mgilbe11~mgilbe11
“Taking you straight to the top!”
Roller Coaster Roller Coaster ConcessionsConcessions Looking to Open a Concessions Looking to Open a Concessions
Stand in an Amusement ParkStand in an Amusement Park Would it be profitable?Would it be profitable?
– If so how much can I make?If so how much can I make?– What can I do to make it more What can I do to make it more
profitable?profitable?
Roller Coaster Roller Coaster ConcessionsConcessions Looking at 3 Scenarios Over the Looking at 3 Scenarios Over the
11stst Year YearYour RecommendationYour RecommendationBeer Sales RecommendationBeer Sales RecommendationExcess Marketing RecommendationExcess Marketing Recommendation
My Recommendation for your My Recommendation for your companycompany
Original Data ProvidedOriginal Data Provided
Original Assumptions MadeOriginal Assumptions Made– Costs of Goods SoldCosts of Goods Sold– Selling Price of GoodsSelling Price of Goods– RentRent– UtilitiesUtilities– Hours OpenHours Open– CustomersCustomers– SalariesSalaries– ETC…ETC…
Start Up CostsStart Up Costs
Kitchen Equipment $ 11,000.00
Cash register and CC machine $ 2,500.00
Initial inventory (replenished as used).- $ 5,000.00
Pre-opening advertising - $ 3,500.00
Store fixtures (counter, chairs, tables etc.) - . $ 4,500.00
Licenses $ 500.00
Rent deposit $ 1,162.50
First Insurance payment $ 105.00
Total $ 28,267.50
Owner's Equity $ 15,000.00
Additional Cash Reserves $ 5,000.00
Calculated Ending Loan Amount $ 18,267.50
Beginning Cash Flow Balance $ 5,000.00
Profit Margin for Year Profit Margin for Year 11 ExpensesExpenses
WagesWages RentRent Cost of Goods SoldCost of Goods Sold Monthly UtilitiesMonthly Utilities TaxesTaxes
Totals:Totals: $-180,985.63$-180,985.63
RevenueRevenue Hot DogsHot Dogs SodaSoda ChipsChips
Totals: Totals: $209,688.69$209,688.69
TOTAL PROFIT FOR YEAR 1: $28,706.06
Net Income Graph Year Net Income Graph Year 11
(2,000.00)
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
Dollars
NET INCOME
Months
April
May
June
July
August
September
October
November
December
January
February
March
Break Even GraphBreak Even Graph
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
1 2 3 4 5 6 7 8 9 10 11 12
Months (Starting in April)
Do
llar
s
TOTAL REVENUE TOTAL EXPENSES
Break Even Points
Recommendation 1Recommendation 1
Look at offering BeerLook at offering Beer
Sell Beer at $3.50Sell Beer at $3.50
License $3750 (one time fee)License $3750 (one time fee)
Increase Insurance to $375 per Increase Insurance to $375 per monthmonth
Original vs. BeerOriginal vs. Beer
Original vs Beer
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
1 2 3 4 5 6 7 8 9 10 11 12
Month
Do
llar
s Original
Beer
Recommendation 2Recommendation 2
Looking at Excess MarketingLooking at Excess Marketing
This guarantees you an additional 3 This guarantees you an additional 3 customers per hourcustomers per hour
It costs you $1200.00 per monthIt costs you $1200.00 per month
Original vs. MarketingOriginal vs. Marketing
Original vs Marketing
0.00
10,000.00
20,000.00
30,000.0040,000.00
50,000.00
60,000.00
70,000.00
1 2 3 4 5 6 7 8 9 10 11 12
Month
Do
llar
s
Original
Marketing
Year 1 ProfitsYear 1 Profits
Your Original RecommendationYour Original Recommendation$33,706.06$33,706.06
Adding Beer to the MenuAdding Beer to the Menu$40,157.32$40,157.32
Excess MarketingExcess Marketing$64,598.86$64,598.86
MY RECOMMENDATION MY RECOMMENDATION TO YOU….TO YOU….
1st Year Profit
QUESTIONSQUESTIONS
Any Questions?Any Questions?
Feel Free to Contact Me Anytime!Feel Free to Contact Me Anytime!678-231-7838678-231-7838
[email protected]@students.kennesaw.edu