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Business Plan for a Startup Business
The business plan consists of a narrative and several financial worksheets. The narrative
template is the body of the business plan. It contains more than 150 questions divided
into several sections. Work through the sections in any order that you like, except for
the Executive Summary, which should be done last. Skip any questions that do not apply
to your type of business. When you are finished writing your first draft, you’ll have a
collection of small essays on the various topics of the business plan. Then you’ll want to
edit them into a smooth-flowing narrative.
The real value of creating a business plan is not in having the finished product in hand;
rather, the value lies in the process of researching and thinking about your business in a
systematic way. The act of planning helps you to think things through thoroughly,
study and research if you are not sure of the facts, and look at your ideas critically. It
takes time now, but avoids costly, perhaps disastrous, mistakes later.
This business plan is a generic model suitable for all types of businesses. However, you
should modify it to suit your particular circumstances. Before you begin, review the
section titled Refining the Plan, found at the end. It suggests emphasizing certain areas
depending upon your type of business (manufacturing, retail, service, etc.). It also has
tips for fine-tuning your plan to make an effective presentation to investors or bankers.
If this is why you’re creating your plan, pay particular attention to your writing style.
You will be judged by the quality and appearance of your work as well as by your
ideas.
It typically takes several weeks to complete a good plan. Most of that time is spent in
research and re-thinking your ideas and assumptions. But then, that’s the value of the
process. So make time to do the job properly. Those who do never regret the effort. And
finally, be sure to keep detailed notes on your sources of information and on the
assumptions underlying your financial data.
If you need assistance with your business plan, contact the SCORE office in your area to
set up a business counseling appointment with a SCORE volunteer or send your plan
for review to a SCORE counselor at www.score.org. Call 1-800-634-0245 to get the
contact information for the SCORE office closest to you.
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Business Plan
OWNERS
Sadie’s
Hwy 73
Greenwood, WI 544437
715-267-7575
Sadies@tds.net
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I.
Table of Contents
I.
Table of Contents ................................................................................................... 3
II.
Executive Summary ............................................................................................... 4
III.
General Company Description ............................................................................ 5
IV.
Products and Services............................................................................................ 7
V.
Marketing Plan ....................................................................................................... 8
VI.
Operational Plan .................................................................................................. 17
VII. Management and Organization ......................................................................... 21
VIII. Personal Financial Statement ............................................................................. 23
IX.
Startup Expenses and Capitalization ................................................................ 24
X.
Financial Plan ....................................................................................................... 24
XI.
Appendices ........................................................................................................... 26
XII. Refining the Plan ................................................. Error! Bookmark not defined.
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II.
Executive Summary
Sadie’s Supper Club is a place where family and friends come together. Sadie’s is
family-oriented and welcomes everyone. The products that are served are homemade
food that isn’t a strain on any budget. Sadie’s Supper Club does not have a defined
customer target market. Sadie’s is open to the public, and surrounding areas. Sadie’s
Supper Club will bring in people from other towns and help Greenwood flourish. The
owner is Kristen Eskildsen. She received a marketing certificate from Northcentral
Technical College, and major in Business Management at Mid-State Technical College.
She brings year of experience and knowledge of the area to Sadie’s Supper Club.
Sadie’s Supper Club will build a solid foundation in Greenwood. Greenwood is missing
a family, supper club. Sadie’s will be an escape for people but close enough to have a
small town feel. The owners feel that a supper club is badly needed in this town.
Greenwood has lost one of its prized possessions and they need it back. Sadie’s Supper
Club will prosper and help the community all while providing a service for families and
friends around area.
Sadie’s Supper Club will be applying for a loan around $300,000. This would cover
exterior updates, and a new roof. There would also be landscaping and work on
renewing the volleyball nets. In the interior we would paint and redo the kitchen. This
money would cover new light fixtures, and any other renovations that need to be made.
The money would cover the cost of new equipment, and an edition to the kitchen. These
changes will help the appearance and make people want to see what is on the inside.
Sadie’s Supper Club has potential and just needs a chance to make a difference.
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III.
General Company Description
Sadie’s Supper Club is a startup business, and has not started operation up to this date.
This business will start around May 2017, this will give the owner enough time to raise
a correct amount of funds and present their plan to investors. They should also present
their plan to advisors and people that they look up to. Owners would also present it to
their family members, they would give a real opinion on what they thought, and bring
up any issues that could cause problems for the restaurant.
Our mission statement is “A Place where friends, family, and food come together”
The starting goal is to have a profit. This would be our goal for the first four months.
The owners need to be making enough money to be covering their expenses. After the
first four months, the second goal is to get good reviews on our customer service.
Owners want people to feel welcome when they are served, and not like a bother. The
employees will be the best, and the customers will expect nothing less. After the first
year the third goal would be to earn enough profits where the owners are making a
profit. At least two years in, they need to be making substantial money where they have
extra money when the expenses are paid. After the owners reach these three goals, their
business should continue to flourish and provide a place where everybody can come
together.
Business owners think customer service is the most important aspect of business. If you
don’t treat your customers well, you will lose your business. One example of this is
when the owner/manager doesn’t bother to show up, and expects his employees to run
the business for him. Business owners should never want their employees to feel like
they have to make up for the owner. They will be there, and everyone should the
business together.
Business owners will market their products to whoever wants them. They need to have
a wide range of customers so that the business will flourish. The customers served are
the people who come to the restaurant. It is a sit down place, and the restaurant does
not offer deliveries. Business owners are selling products to consumers but also
presenting a service to the community. This would help bring in people from around
the area, and promote what Greenwood, Wisconsin has to offer.
The industry is definitely a growth industry. Owners would like to see more people
every night, and gain a larger profit every month. The long term goal is to be a
successful business with opportunities to grow, and expand. Business owners should
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become financially comfortable, and can cover any unexpected costs. The most
important goal to business owners is to have a business where were making money, but
also provide a well loved service. They should want to be more than a supper club, be a
place where people come together to have a good time.
At Sadie’s Supper Club our strongest strengths are personality and leadership. This
company will succeed because of the employees and the drive behind the whole
company. Every one at Sadie’s Supper Club will feel welcome and at peace when they
are there. The major competitive strengths are the location and how the owner’s know
about the community and what it needs. The owner has had experience in this field for
over four years. The owner has also received a marketing certificate in Marketing from
NTC. They know what you need to make a business successful. They will be there
everyday to help out, and will do anything that will benefit the business. The owners
will also benefit the community and get them involved in the restaurant. Sadie’s Supper
Club would bring people in from the surrounding area, and will make Greenwood, WI
flourish.
This company will be a sole proprietorship. The owners are in charge of the day-to-day
tasks, and do not have to consult with anyone else on the issue. They would be the
person to ask, and the one to solve all the problems. This company is best suited for a
sole proprietorship.
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IV.
Products and Services
Sadie’s Supper Club will have a slight advantage because of the location and the food
served there. One of the best advantages the company has is the building. This building
is furnished and is in good shape. It could use some work but can bring in a good profit.
One disadvantage is the small community pay checks. Many in this area are short on
cash, so eating out will be limited.
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V.
Marketing Plan
Market research - Why?
Sadie’s Supper Club will be based in a small town in Wisconsin, because of this we need
to research about the percentage of people that go out to eat, and the number of
competiting restaurants in the area. Primary research could help our business earn a
large profit. Sadie’s Supper Club is interested in the competitors and the number of
restaurants that are successful in their first year of business. The company does not
want to open a restaurant and have it fail. Using secondary data we could determine if
we would be successful or not. Primary and secondary data are important to Sadie’s
Supper Club because they do not want to fail when it was preventable.
Market research - How?
http://www.city-data.com/city/Greenwood-Wisconsin.html
http://www.greenwoodwi.com/demographics.php
Economics

What is the total size of your market?
o Currently there are 11,919 restaurants in Wisconsin. Restaurants employ
272, 900 people in Wisconsin.

What percent share of the market will you have?
o Sadie’s Supper Club will not have a large share of the market. We are not
a corporation so we will have one building. Although we are a soleproprietorship we will be a fierce competitor in the area.

Current demand in target market.
o The demand for restaurants is growing. In 2011 the industry’s sales
exceeded $ 600 billion. There is a 6.8% growth in the industry expected or
18,500 more jobs.

Trends in target market—growth trends, trends in consumer preferences, and
trends in product development.
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o The restaurant industry is looking forward to a large growth in product
development. It is estimated in 2012 that the restaurant industry is going
to shoot forward in profit growth and overall business. This would prove
beneficial for the company.

Growth potential and opportunity for a business of your size.
o The growth potential for Sadie’s Supper Club is unlikely. We will not
expand to a second location, although we can make sure every night we
have a sufficient amount of people. We will have opportunities for growth
in the number of people we seat every night and weekend. This growth
will be necessary for the continuation of the business.

Some barriers facing Sadie’s Supper Club are high capital costs, high production
costs, high marketing costs, training and skills, and unique technology and
patents.

Sadie’s Supper Club will overcome high capital buy having suffiencent funds.
The company will overcome high production costs and high marketing costs by
finding efficient ways to produce the food. Sadie’s Supper Club will overcome
training and skills by training within the company and finding people with the
best skills. Our company will overcome unique technology because they will be
up to date, and make sure all of the equipment is energy efficient.

How could the following affect your company?
o Change in technology

Sadie’s Supper Club will have to update in technology even year or
so. The company needs to have the best equipment, and make sure
all of the existing equipment is energy efficient.
o Change in government regulations

Sadie’s Supper Club will have to change to abide by government
regulations. They will also have to make modifications to keep the
business open.
o Change in the economy
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
A change in the economy could affect the number of people coming
out to eat. This could affect the company and cause a loss in profits.
o Change in your industry

Sadie’s Supper Club would not be affected by a change in the
industry. If so, the change would have to be great, and require
things to change.
Product
Sadie’s Supper Club offers many choices to pick from. See our menu in the appendix.
Features and Benefits
At Sadie’s Supper Club one of our features is we only use high quality ingredients. The
benefit of this is that it tastes good, and is good for you. Another feature at Sadie’s is the
wide variety of food to choose from. The benefit of this is we can cater to a large group
of different tastes. We offer spicy burgers, to smothered steaks. The only disadvantage
of the menu is it’s hard to decide what you want.
Customers

Age
o 3- 95. Sadie’s Supper Club is a family based company. They want to make
people feel as comfortable as they are as home. They welcome everyone,
and strive to have a warm, friendly environment.

Gender
o At Sadie’s Supper Club gender doesn’t matter. We do not have a selected
target market. There are about 506 males and 540 females in Greenwood.

Location
o Sadie’s Supper Club is located in Greenwood, WI. The population is 1,079
people living in this small town. Sadie’s will be dependent on areas
outside of the community. The company will have to advertise to
convince consumers to make the drive to Sadie’s. The location is small but
the building and the town will work well for the company.
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
Income level
o Income level does not affect our company. The median income level for an
average household in Greenwood is $40,922. The food is affordable, yet
not under priced. Income level does affect the number of times the
average family will go out to eat. This could affect the company in the
long run.

Social class and occupation
o Social class and occupation does not affect the company. Sadie’s Supper
Club is a place where everyone is welcome. We do not discriminate
against a person’s financial situation or their occupation.

Education
o In Greenwood 76.6% have a high school diploma or higher. 13.5% have a
bachelor’s degree or higher. 6.2% are a graduate or have a professional
degree and 2.9% are unemployed.

Martial Status
o 22 % have never married and 55.5% are now married. 1.6% are separated,
11.8% widowed, and 9.1% divorced.

Housing and renting prices
o The mean prices for Greenwood in 2009 were $89.955. Detached houses
were $ 93, 025. In 2-unit structures the price was $ 164, 638 and mobile
homes were $28,884.
Competition
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Dales North
Mound Tavern
(715) 267-6989
W 8902 Rock Creek Rd Willard, WI
Behind Barr’s Bar & Grill
(715) 267- 6733
N9302 County Road O, Greenwood, WI
These competitors will compete with us in customers and location. Sadie’s Supper Club
is a family place, where the other competitors are sports bars. Dales North Mound
Tavern is a large bar where only a few selective seem to fit in. Behind Barr’s Bar & Grill
is a friendly place but it lacks the feeling of comfort that Sadie’s Supper Club gives. Our
company is the only supper club around and is the only one to provide a separate bar
and dining area. Dales and Behind Barr’s are major competitors because of the location.
Sadie’s Supper Club is located about a half mile north of Greenwood. Behind Barr’s is
located about 3 miles west of Greenwood, and Dales is 10 minutes away from
Greenwood. Sadie’s Supper Club is confident that they could make a profit even with
the competitors.
Sadie’s Supper Club deals with indirect competitors such as fast food places in
Marshfield. Fast food is quicker, and sometimes just as good. Sadie’s Supper Club needs
to be sure to advertise and promote their items, so that consumers will make the drive
to visit them. Other indirect competitors are sports bars in Greenwood. They do not
offer sit down dining but have quick service that would be a large advantage to the
company.
The products at Sadie’s Supper Club will not compare to those of a bar. They offer
home cooked meals and not everything they served in deep fried. Sadie’s offers healthy
meals and a chance for friends and family to gather in a nice environment. Sadie’s
Supper Club is a better choice for families, and large parties.
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Table 1: Competitive Analysis
Factor
Me
Products
Better quality and better
tasting
Strength Weakness
X
More expensive than
the competitors
Price
X
Dales North
Mound Tavern
Behind Barr’s
Importance to
Customer
Few to choose from
Greasy tasting
1
Cheap
Cheap
3
100% better than
competitors
X
Low quality
Fried food
2
A better selection of
good food than leading
competitors
X
A small selection to
choose from
Just bar food
1
Selection
More friendly than
competitors, face to face
interaction
X
Low service
Not very personable
1
Service
A good location to bring
in business
X
Out in the middle of
nowhere
Out in the country
3
Location
A good appearance, and
a warm place
X
Old, Needs work
A group bar
3
Appearance
Better advertisements
X
No advertising
Slim advertising
4
Cares about the
community, a proud
supporter of the town,
and family oriented
X
Cares about hunting,
fishing, and drinking
Cares about racing and
drinking
3
Quality
Advertising
Image
Bad waiters/waitresses
Sadie’s Supper Club has many advantages. One is the building and the open space
available to the consumers. Sadie’s has a warm, cozy feeling that welcomes everyone.
Another advantage is the friendly staff. The staff is always smiling, and willing to help
you with anything you need. One advantage is the quality of the food. It’s homemade
and tastes delicious, and Sadie’s has a large selection for you to choose from. One
disadvantage to Sadie’s Supper Club is the cost of food. It is expense compared to bar
food, but well worth the cost.
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Niche
Sadie’s Supper Club is providing a family oriented dining place where everyone is
welcome. They are open to elderly, young couples, and parents. Sadie’s will be
providing a nice place where people can come together and meet up with friends. This
will help the community and bring in people to the area. Sadie’s affects many people in
the community. Many businesses would flourish with the extra people coming into the
town. Sadie’s Supper Club will be providing a service while helping the community.
Strategy
Promotion
Sadie’s Supper Club will advertise in the TRG. The TRG runs through Spencer, Loyal,
and Greenwood. We will also place signs in local business. The biggest advertiser is
word of mouth. Rumors will spread faster than we could advertise. This is cheap and
will get people interested to see what’s really going on.
The TRG is a local newspaper that is read through out the area. It is popular and
supplies many large ads. It runs every Wednesday. We would get a big ad and
advertise our opening night.
Sadie’s Supper Club is hoping on the rumor mill. When you get good reviews, word
spreads around, and people come back. The company has to make a good impression or
it could be fatal to the business. The company is focusing on good reviews, which
brings more people.
Sadie’s Supper Club wants to be a place needed in Greenwood. They are going to
support the community and be an active part in the doings in Greenwood. There is a
street dance every year in Greenwood. The company wants to be there and provide a
service that would benefit the community while also gaining a profit for Sadie’s.
Sadie’s Supper Club has a logo and a theme inside of the restaurant. The logo will be
placed on the menus and on the outside of the building. People will be accustomed to
the logo, and recognize it wherever they go.
Sadie’s Supper Club is planning to have a royalty rewards program. It is a program
where you earn a free night at Sadie’s. They more points you get the more night you eat
free. We also take notice of customers’ birthdays, and anniversaries.
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Promotional Budget
Sadie’s Supper Club will spend about one hundred dollars a month on advertising
costs. The ad in the TRG costs about twenty-five dollars for two weeks. This budget
should also cover any extra advertising we want to do.
Pricing
Sadie’s pricing method is higher than the competitors. Sadie’s food can range from
three dollars to fifteen dollars. The company has had to raise prices due to the price of
the food from the distributors. The food is expensive but it is worth the extra price. The
food is 100% quality and Sadie’s only use the best ingredients. The company is not
worried about the price of the food. The food is homemade and not drenched in fat, and
oil. Sadie’s serves the best, and the customers know it.
Proposed Location
At Sadie’s Supper Club our location is very important to our customers. It’s far enough
away to have a night out, but also close enough to home so you feel at ease. It’s in the
perfect location. The location brings in many people from surrounding towns, and large
cities looking for a different place with good food, and friendly people.
Sadie’s Supper Club is very convenient. There are handicap accessible doors and
restrooms. The parking is easy and large enough for busy nights. The interior is
spacious, and comfortable. Sadie’s is a perfect building with room to grow. Sadie’s
Supper Club is located about one mile north of Greenwood. It is close so that the city
people won’t have a long drive while still being accessible to country folk.
After a little construction on the outside the building would be consistent with the
image Sadie’s Supper Club is trying to convey. Sadie’s theme is rustic woods. The
whole image is describing the north woods. The building has a large stone fireplace,
and a large hall with wood frames.
In the past years the building has had a Mexican theme. The company is changing the
theme to give it a new start, and to attractive more people. Some people were turned off
by the idea of Mexican food. At Sadie’s they offer a lot of variety of food that will cater
to everyone’s tastes.
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The competitors are located about five miles away. It is better that the competitors are
farther away, they will not affect us as much. They offer different services, and could
compete with the number of young adults that come to our restaurant.
Distribution Channels
The products are sold by the company’s own sales force. There is also a small part of
retailing in the business. People have to come to Sadie’s Supper Club for the products to
be sold. Sadie’s is relying on people, and the willingness to come out.
Sales Forecast
Sadie’s Supper club has done a sales forecast and has an annual total of $91,743. There
are seasonal buildups during December through February. The summer season is the
slowest time for the restaurant industry. During the summer the company will average
between $6,000 a month.
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VI.
Operational Plan
Production
Explain your methods of:

At Sadie’s Supper Club they prepare the products thoroughly and to the best
taste. The company strives to excel in food preparation and using high quality
products. The cost will stay maintained because of the products that will be
purchased from the distributors.

At Sadie’s Supper Club they only use the freshest produce and the best quality
products that are offered. This will make Sadie’s Supper Club one of the best,
healthiest places to eat. Sadie’s strives to be the best in food, and the way it is
prepared.

At Sadie’s Supper Club customer service is very important to them. They strive
to be the best that they can. The waiter/waitresses are highly skilled and trained.
They will help you make your visit more enjoyable.

At Sadie’s Supper Club inventory is the number one priority to the company.
They keep track of food and supplies to make the business more efficient. The
company does not want to lose money just because of counting mistakes.
Inventory also helps the company watch any stealing that may be happening.
Location
Physical requirements:

Sadie’s Supper Club is about 5,500 square feet. There are two bathrooms, one
supply closet, and a coat closet. The bar and kitchen are connected as well as the
main entry. There is a dining hall in the back, and also a dining room. The whole
building is centered around a large stone fireplace.

Sadie’s Supper Club is a commercial building located in a commercial zone. The
property type is retail, and sub type is restaurant. This building is perfect for
Sadie’s Supper Club because it does not require any construction to fit the
business.
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
Sadie’s Supper Club has power provided by Clark Electric. Clark Electric is
based out of Greenwood, and has been providing power to this building for
many years. The other utilities that have to be paid are cable and water bill.
Location is very important to the convenience of the suppliers. Sadie’s Supper Club is
located on Highway 73. It is a very good road to have a restaurant on. The road is well
traveled and easy to find. Yes, easy walk-in-access in very necessary to Sadie’s Supper
Club. The building is handicap accessible, and provides enough room for large
shipments of supplies. Sadie’s Supper Club does not have any requirements for parking
or proximity to freeways, airports, railroads, or shipping centers.
Construction will be necessary but it is in the budget. There will be new paint on the
exterior, and new gravel put down for the parking lot. Landscaping will have to be
done to give it a more finished feel. On the inside everything will be painted, and new
light fixtures will be put up. In the kitchen the equipment will be removed and cleaned,
and the company will also be buying new equipment. The kitchen will be added on to,
and new flooring will be put down.
The business hours are Monday & Tuesday: Closed, Wednesday& Thursday 4p.m. 9p.m. Friday & Saturday 4p.m. - 10p.m. and Sunday 10a.m. – 7p.m.
Legal Environment
Describe the following:

The licensing for Sadie’s Supper Club is the original type. This is an initial permit
for any building, room or place where meals are prepared, served or sold to
transients or the general public, and all places used in connection with the
building, room or place and include any public or private school lunchroom for
which food service is provided by contract.

There are 6 permits required for restaurant to start operating. The first is the
business license, where an owner fills out an application as pays a licensing fee.
The second is resale permit which allows the restaurant to charge and collect the
required sales tax from the customers. The third one is the building health
permit. A permit holder is subject to periodic health inspections to ensure the
location is sanitary and complies with established food management practices.
The fourth one is employee health permit. This requires employees to
successfully complete a state-approved food handler’s course. The fifth one is
city and fire permit. This permits the building to comply with applicable
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building and safety codes. The sixth one is a liquor license. A liquor license is
required to serve alcoholic beverages. This application costs a fee, and has to be
renewed.

There are six insurance policies a restaurant should have. The first one is liquor
liability. This one covers the business incase a customer drinks too much and
injures himself or others. The second one is general liability. It covers any
accident that may occur to a customer. The third is property insurance. It covers
instances of vandalism or natural disasters. The fourth is workers compensation.
This covers any accident where an employee might want to sue the business. The
fifth is food contamination insurance. It covers spoiled food in case of a power
outage. The sixth is the loss of business insurance. This covers the cost if the
business would have to shut down.
Personnel

Number of employees at Sadie’s Supper Club a small number of employees work
there. There will be around twenty employees. The employees will be skilled and
unskilled. Sadie’s does not require professional employees. In Greenwood you
can’t be picky about the help. Sadie’s will find the right employees by extensive
interviews. The interviews will help the owners see the potential the employee
has and the personality that they would bring to the business. The employees
will be paid based on the state’s minimum wage law. Depending on how the
employees work, raises will be given. Every employee will be trained to do the
best. The owners expect the best and want the business to be a reflection of how
hard the employees work.
The owner will handle day to day operations. They will be in charge of the
problems and situations. They also do payroll, and keep track of all the laws and
regulations. The head cook is in command of the kitchen. They are second in
command, and are in charge when the owner is not available. The bar tender is
second in command when the owner is gone. The owner will prepare a schedule
for the employees every week. The employees must let the owner know when
they need off and how many hours they want per week. No, Sadie’s Supper Club
will not be using contract workers.
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Inventory

Sadie’s Supper Club keeps raw materials, supplies, and finished goods. Raw
materials are kept to prepare custom food, and menu items that are special to the
restaurant. Supplies will be kept so that the bathrooms are fully stocked, and
operations can run smoothly. The average value in stock is about 25% of the
profits. The rate of turnover is about 47% in the restaurant industry. This has
grown in the last five years. The seasonal buildups are November through
February. This is the busiest time of year for the restaurant industry.
Identify key suppliers:
Reinhart Food Service
2655 East Richmond
Shawano, WI 54166

Sadie’s Supper Club will be billed every month for the supplies needed. The
supplies are delivered every week, on the same day. ( Every Wednesday)
Reinhart Food Service may mess up an order and cost Sadie’s Supper Club a small
expense. Reinhart Food Service vows to make every order correct, and to deliver on
time each week.
Supply costs are fluctuating, so to overcome this Sadie’s Supper Club will have to have
sufficient funds. Sadie’s has to plan and manage their expenses correctly otherwise they
will be losing money fast. The business plan has to be advised and everything in check.
Managing Your Accounts Payable
Sadie’s Supper Club does not have any vendors that offer prompt payment discounts.
Sadie’s will have to pay monthly for the supply bill.
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VI. Management and Organization
The owner will be Kristen Eskildsen and she will manage the day-to-day business.
Kristen brings knowledge of the restaurant industry, and knows what it takes to be
successful. She has a bright and fun personality. She wants to provide a warm, familyoriented place to Greenwood, WI. Her family would take over, and continue to run it
for the best of the business.
Owner
Day to Day
Business
X
X
X
Delivery
X
Clean
bathrooms
X
Maintenance
X
Mix drinks
X
Sweep/Vacuum
Floors
X
Waiting List
X
Payroll
Tax Forms
Waiter/Waitress Janitor
X
X
Take Orders
Scheduling
Employees
Bartender
X
Prepare Food
Clean Tables
Cook
X
X
X
X
X
X
X
X
X
X
X
X
X
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Professional and Advisory Support
List the following:

Attorney
o Harnisch, Thomas Law Office
141 W 6th St, Neillsville, WI 54456

Accountant
o Larsons Accounting Income Tax
305 South Main Street, Greenwood, WI 54437

Insurance agent
o American Family Insurance
240 North Main St, Loyal, WI 54446

Banker
o Citizens State Bank
400 North Main St, Loyal, WI 54446
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VII. Personal Financial Statement
The owners will have around $87,050 in total
assets. This is beneficial for Sadie’s to start up
and keep running. The total liabilities for
Sadie’s Supper Club are around $30,000.
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VIII. Startup Expenses and Capitalization
The cost for the building is around $199,000. The kitchen needs to be updated so the
owner will have a budget of $50,000 for renovations. The exterior needs to be painted
and a new roof will have to be purchased. This will cost around $50,000 as well. The
interior will have to be painted and floors will have to be cleaned and polished. This
will cost around $5,000. The company will have about $35,000 for any expected
problems before opening. This money will pay for any permits or insurance costs. The
total cost for the opening and capitalization for Sadie’s Supper Club is about $340,000.
Financial Plan
The financial plan consists of a 12-month profit and loss projection, a four-year profit
and loss projection (optional), a cash-flow projection, a projected balance sheet, and a
break-even calculation. Together they constitute a reasonable estimate of your
company's financial future. More important, the process of thinking through the
financial plan will improve your insight into the inner financial workings of your
company.
12-Month Profit and Loss Projection
Sadie’s Supper Club is in debt. The company owes about $7,000 in the first
year of business. This is not good for the company, but this is expected in the restaurant
industry. Hopefully Sadie’s Supper Club will turn the corner and be making a profit
soon.
Projected Cash Flow
If the profit projection is the heart of your business plan, cash flow is the blood.
Businesses fail because they cannot pay their bills. Every part of your business plan is
important, but none of it means a thing if you run out of cash.
The point of this worksheet is to plan how much you need before startup, for
preliminary expenses, operating expenses, and reserves. You should keep updating it
and using it afterward. It will enable you to foresee shortages in time to do something
about them—perhaps cut expenses, or perhaps negotiate a loan. But foremost, you
shouldn’t be taken by surprise.
There is no great trick to preparing it: The cash-flow projection is just a forward look at
your checking account.
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For each item, determine when you actually expect to receive cash (for sales) or when
you will actually have to write a check (for expense items).
You should track essential operating data, which is not necessarily part of cash flow but
allows you to track items that have a heavy impact on cash flow, such as sales and
inventory purchases.
You should also track cash outlays prior to opening in a pre-startup column. You
should have already researched those for your startup expenses plan.
Your cash flow will show you whether your working capital is adequate. Clearly, if
your projected cash balance ever goes negative, you will need more start-up capital.
This plan will also predict just when and how much you will need to borrow.
Explain your major assumptions; especially those that make the cash flow differ from
the Profit and Loss Projection. For example, if you make a sale in month one, when do
you actually collect the cash? When you buy inventory or materials, do you pay in
advance, upon delivery, or much later? How will this affect cash flow?
Are some expenses payable in advance? When?
Are there irregular expenses, such as quarterly tax payments, maintenance and repairs,
or seasonal inventory buildup that should be budgeted?
Loan payments, equipment purchases, and owner's draws usually do not show on
profit and loss statements but definitely do take cash out. Be sure to include them.
And of course, depreciation does not appear in the cash flow at all because you never
write a check for it.
Opening Day Balance Sheet
A balance sheet is one of the fundamental financial reports that any business needs for
reporting and financial management. A balance sheet shows what items of value are
held by the company (assets), and what its debts are (liabilities). When liabilities are
subtracted from assets, the remainder is owners’ equity.
Use a startup expenses and capitalization spreadsheet as a guide to preparing a balance
sheet as of opening day. Then detail how you calculated the account balances on your
opening day balance sheet.
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Optional: Some people want to add a projected balance sheet showing the estimated
financial position of the company at the end of the first year. This is especially useful
when selling your proposal to investors.
Break-Even Analysis
Sadie’s Supper Club has done the calculations and is averaging around $3,000
to $10,000 profit per month. With the cost of the expenses, Sadie’s will gain a substantial
amount of profit during the seasonal buildups. The break-even analysis proved positive
for Sadie’s Supper Club.
XI. Appendices
Include details and studies used in your business plan; for example:

Maps and photos of location
Brochures and advertising
materials
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