11. INSURANCE

A comprehensive package of insurance cover has been arranged through Steale & Associates. This includes: theft; public liability; fire, flood & storm damage; water seepage & ground sinkage.

12. GROWTH & EXIT STRATEGY

12.1 Business goals

Short-term (next 6 months):

Begin establishing Gourmet Dan as a Knysna dining destination among local residents and visitors. Source staff, premises and equipment. Undertake on-the-job training and gear-up employees for the spring/summer season starting in October. Keep losses to a minimum during the start-up phase and the slower winter months.

Medium-term (6-12 months):

Be in a strong position to capitalise on the spring/summer season starting in October. Maximise the restaurant’s potential and turnover during the summer season. Continue to build the reputation and image of Gourmet Dan among local residents, so as to reduce the effects of the next (slower) winter cycle, when there are few tourists.

Long-term goals (1-5 years):

Establish the unique market positioning of Gourmet Dan to the extent that a second outlet can be established on the Garden Route (possibly Plettenberg Bay) by year three, and a third outlet (possibly George or Port Elizabeth) by year five.

12.2 Exit strategy

Using the three owner-run outlets to leverage the brand, Dan White intends to franchise the Gourmet Dan business model from year six, with an optimum number of 15 outlets by year 10. At that point the intention is to sell the business to a large national franchise chain.

13. APPENDICES

Knysna Tourism Association annual report 2009

Knysna Tourism Association annual report 2010

Garden Route Tourism annual report 2010

Knysna Chamber of Commerce & Industry annual report 2010

Knysna Town Council Mayoral Report 2009

Knysna Town Council Mayoral Report 2010

 “Luxury developments keep town booming” – Knysna Herald, 15 March 2010

“Knysna shows strong growth” – Cape Argus, 9 June, 2010

Projected Profit & Loss (12 months)

Projected Cash Flow

Projected Balance Sheet

Loan Repayment Schedule

Personal Financial Statement of Owner