Danaka Stromberg R OSE ’ S C AFE

W HAT IS R OSE ’ S C AFE ?

W HAT WE O FFER

C APITAL & F INANCING B UDGET Start up Costs: $32,323

C OMPETITORS

T ARGET M ARKET

P ROMOTION

O WNERS C OMPENSATION Average Owners Compensation Owners Salary $ 52,000 $ 53,300 $ 54,633 $ 55,998 $ 57,398 Dividends $ - $ 5,590 $ 32,946 Total Owners Compensation $ 52,000 $ 53,300 $ 54,633 $ 61,588 $ 90,344 Average 5 Year Owners Compensation = $ 62,373

P ROFITABILITY Average Net Income = $12,412

R ISK = HIGH F EASIBLE = N O

Q UESTIONS ?

C APITAL B UDGET CategoryCost Leasehold Improvements $6,500 Equipment $24,090 Inventory $1,733 Total Capital $32,323

H OURS OF O PERATION Operating Hours Sunday10am-3pm Monday8am-4pm Tuesday8am-4pm Wednesday8am-4pm Thursday8am-4pm Friday8am-4pm Saturday8am-2pm

W HO WE ARE

P ROFITABILITY AND C ASH FLOWS Net Income -$32,242$298$23,365$30,962$39,676 End Cash Balance -$ 4,630-$565 $25,590 $52,946 $59,636

B REAK E VEN A NALYSIS Base Case Breakeven8280

P ROJECTED I NCOME Projected Income Sales $ 252,000 $ 297,045 $ 334,918 $ 360,456 $ 387,941 COGS $ 62,370 $ 73,519 $ 82,892 $ 89,213 $ 96,015 Gross Profit $ 189,630 $ 223,526 $ 252,026 $ 271,243 $ 291,925 Expenses $ 221,872 $ 223,228 $ 228,661 $ 236,936 $ 246,321 Net Income $ (32,242) $ 298 $ 23,365 $ 30,962 $ 39,676

C ASH B ALANCES Cash Balances Net Cash Flow $ (4,630) $ 4,065 $ 26,156 $ 27,356 $ 6,690 Cash Bal Beg of Year $ - $ (4,630) $ (565) $ 25,590 $ 52,946 Cash Bal End of Year $ (4,630) $ (565) $ 25,590 $ 52,946 $ 59,636

W AGES Salaries/Wages Manager Salary $52,000 $53,300 $54,633 $ 55,998 $57,398 Full time employee (wage rate/hr) $13.50 $13.84 $ $ $ Full time baker (wage rate/hr) $12.75 $13.07 $13.40 $ $ Part time staff (wage rate/hr) $10.50 $10.76 $11.03 $ $11.59 Salary and Wage Costs Manager $52,000 $ 53,300 $54,633 $55,998 $57,398 Full time employee $26,460 $27,122 $ 27,800 $28,495 $ 29,207 Full time baker $ 24,990 $25,615 $26,255 $ 26,911 $ 27,584 Part time staff $ - $ 644 $ 4,091 $7,977 Total Salaries and Wages $ 103,450 $106,036 $ 109,332 $115,495 $122,166

S ENSITIVITY A NALYSIS Critical Variable : Average Customers Per Day Customers/day Average 5 Year Profit Net Payback Year 5 Owner Compensation 55($35,473)($174,856)$57,398 60($18,111)($67,681)$57,398 65($1,569)$31,926$57,398 70$12,422$112,852$85,963 75$25,776$194,324$102,971 80$38,920$274,742$116,706 85$51,802$353,855$130,442

S ENSITIVITY A NALYSIS Critical Variable : Average Purchase Per Customer Average Purchase / Customer Average 5 Year Profit Net Payback Year 5 Owner Compensation 9($8,110)($7,537)$57, $2,805$56,770$57,398 10$12,422$112,852$85, $21,770$169,883$98,851 11$31,118$226,913$108, $40,208$282,654$118,080 12$49,226$338,032$127,694