9.0 FINANCIAL PLAN
9.1 Start-up capital
Analysis of Start-up Costs
|
Legal fees |
R 5 000
|
|
Permits & licences
|
R 5 000
|
|
Design consultant |
R 6 000
|
|
Interior decorating
|
R 45 000
|
|
Furniture & fittings
|
R 50 000
|
|
Signage
|
R 50 000
|
|
Crockery & cutlery
|
R 6 000
|
|
Kitchen fittings
|
R 65 000
|
|
Staff uniforms
|
R 12 000
|
|
Menus
|
R 3000
|
|
Start-up stock
|
R 10 000
|
|
Other
|
R 10 000
|
|
Total start-up cost:
|
R267 000
|
9.2 Fixed business costs
Analysis of Monthly Expenses
| Rent | R 40 000.00 |
| Utilities | R 15 000.00 |
| Wages & salaries | R136 900.00 |
| Associated staff costs (UIF, staff meals) | R 2 500.00 |
| Stock | R 60 000.00 |
| Marketing | R 4 500.00 |
| Insurance | R 4 000.00 |
| Bank charges | R 1 000.00 |
| Repairs & Maintenance | R 3 000.00 |
| Vehicle | R 3 000.00 |
| Fuel/travel | R 2 500.00 |
| Telephone | R 3 500.00 |
| Cleaning/sanitation | R 4 500.00 |
| Miscellaneous | R 5 400.00 |
| * Total average fixed business costs: |
R285 800.00
|
* Wages and salaries, stock, utility and telephone costs will vary according to high season/low season demands. Figure indicated here is a predicted monthly average.
9.3 Break-even analysis
It needs to be understood that, due to the seasonal nature of the business, the restaurant will record a loss at certain times of the year. The opening months (March & April) are also likely to be quieter than the corresponding months in Year 2 and Year 3, when the business will have gained greater momentum.
To break even, Gourmet Dan requires 2 407 patrons at an average spend per head of R105.50. This break-even figure will typically be achieved in: October, November; December; January; February; March; April (although March/April in Year 1 will record losses due to being the start-up phase).
9.4 Important assumptions
| Year 1 | Year 2 | Year 3 | |
| Current interest rate | 8.5% | 9.0% | 9.5% |
| Tax rate | 28% | 28% | 28% |
| Electricity tariffs | — | + 8% | +5% |
| Food costs | + 14% | +8% | |
| No. of covers (patrons) | 40 200 | 44 220 | 48 642 |
| Av. yield per head | 40 200 | 44 220 | 48 642 |
9.5 Projected profit & loss (12 months)
| Annual Gross Sales: | R4 200 900 |
| Less Stock Purchases: | R 720 000 |
| Less Overheads: | R2 709 600 |
| Net Profit (12 months): | R 771 300 |
* See Section 13 (Appendices) for full Projected Profit & Loss statement
9.6 Projected cash flow
* See Section 13 (Appendices) for full Projected Cash Flow statement
9.7 Projected balance sheet
* See Section 13 (Appendices) for full Projected Balance Sheet statement
9.8 Business loan
A loan of R200 000 is being sought to enable the dining area to be extended closer to the waters of the Knysna Lagoon, and to cover this area with a flexible ‘roll-back’ roof that can be opened during good weather, but closed when conditions are poor.
Being closer to the water will be a competitive advantage for Gourmet Dan, while the large covered area should allow greater numbers of customers to be served, irrespective of weather conditions.
9.9 Loan Repayment Schedule
* See Section 13 (Appendices) for full Loan Repayment schedule
10.0 Personal financial statement of owner
* See Section 13 (Appendices) for full Personal Financial Statement of owner
