BACK

The Business Plan

For
FRESH MARKETS INC.

Owner Information
Business Name:
Address:

Fresh Markets Inc.

P.O. BOX 20005
Oakland, CA 94620

Telephone:
Fax:
Email:

(510) 595-1164
(510) 655-0799
freshmarkets@aol.com

Table of Content
Executive Summary ........................................................................................1
The Company ........................................................................................1
Mission Statement.................................................................................1
Management .........................................................................................1
Products and Markets............................................................................1
Funding Requirements ..........................................................................3
Job Creation ....................................................................................................3
General Company Description .........................................................................3
Company Goals & Objectives .................................................................4
Business Philosophy..............................................................................4
Community Outreach.............................................................................5
The Business Environment ....................................................................5
The Team
Management Team Profiles and Staffing ...............................................6
Professional Services ............................................................................7
Human Resource requirements .............................................................7
Marketing Plan ................................................................................................9
Economics .............................................................................................9
Product .................................................................................................9
Customers .............................................................................................9
Competition...........................................................................................9
Niche .....................................................................................................10
Marketing Strategy................................................................................10
Promotional Budget ..............................................................................10
Proposed Locations ...............................................................................10
Management and Organization ........................................................................10
Founders ...............................................................................................10
Management Team ................................................................................11
Board of Directors .................................................................................11
Board of Advisors ..................................................................................11
Consultants ...........................................................................................11
Cash Flow Narrative ..............................................................................11
Cash Flow Analysis & Start up Costs ...............................................................14

The Executive Summary

The Company

Fresh Markets Inc. will be incorporated in the State of California.

Fresh Markets stock will be owned by The Kinte Center for the Study
of Urban Commerce Inc. a California incorporated 501 (C) (3)
nonprofit organization.

Mission Statement

Fresh Markets Inc. mission is to open a group of four or more full

service grocery stores in our targeted area to offer high quality food,
beverages, grocery and pharmacy services at a price that is
affordable for our low to medium income area. Fresh Markets will
provide new jobs, offer an option to fast food in a fast food saturated
area and offer healthy foods to help fight health issue such as
diabetes and obesity etc.
Our primary interest in starting up Fresh Markets Inc. is to create
community based jobs for our targeted area. The planned group of
Fresh Market stores would bring some 300 or more new jobs to the
area. Further, 80% of the jobs would go to area unemployed youth;
many of whom will be high school dropouts that will have been made
workplace ready through The Kinte Centers Youth Employment
Development Program. In addition the presence of our four new
stores would reduce distance traa high of over 4 miles to under one
mile.

Management

The Kinte Center, the nonprofit that will own the stock of Fresh
Markets Inc. will seek out and hire a person with multi-location
grocery store management experience to start-up the company, set
up and manage the administration, hire qualified staff for all stores
and direct the operations of Fresh Markets multi-location grocery
stores.
Products & Markets
The company will provide the following products and services:
Bakery
Pastries to Breads
Baked Goods
Fresh Pies
Fresh Donuts

(Page 1)

Dairy
Milk
Eggs
Juice
Cheese
Pharmacy
Household Items
Cleaning Products
Laundry Powder
Cleaning Supplies
Toilet Paper
Paper Goods
Candles
Home Deodorizers
Specialty Coffees
Cream
Condiments
Mustards
Mayonnaise
Ketchup
Salad Dressings
Pet Foods/Toys
Party Trays
Vegetable Trays
Fruit Trays
Delivery
Heath & Beauty
Cosmetics
Hair Care Products
Skincare
Meats Selection
Seafood
Fish
Shell Fish
Crab
Produce
Quality & Freshness
Organic Selection
Apples to Zucchini
General Foods
Chips
Ice Cream
Candy
Cookies
TV Dinners
(Page 2)

Canned Soup
Sandwiches
Pickles
Pizzas
Noodles
Canned Vegetables
Canned Meats
Marshmallows
Mixes

Funding Requirement:
Fresh Markets Inc. will be financed by The Kinte Center Inc. a 501
(C) (3) charitable nonprofit organization. The Kinte Center Inc. will
raise the funds to finance the venture through normal nonprofit
fundraising processes.

JOB CREATION
Our proposed group of four new grocery stores will create an
estimated 300 of the 3080 new jobs needed to reduce our targeted
areas unemployment rate from a high of 30% in some areas
downward to at least the Oakland citywide level of 17.7%.
The remaining 2780 jobs will be created through our list of Job
Creating Commercial Projects. The full list of Job Creating
Commercial Projects can be viewed at JOB CREATING PROJECTS on
home page at www.kintecenter.org (If you are already at
www.kintecenter.org go to home page)

(Page 3)

General Company Description

Company Goals & Objectives:

Our primary goal is to fill fresh groceries vacuum that currently exist
in our targeted while creating jobs for the area. We intend to
distinguish ourselves by being known as the area locally owned
grocery store that offers fresh meats and fresh produce at the quality
and customer offered by well known national grocery chains.
Our plan calls for opening four full service supermarkets in our
targeted area which will raise the full service grocery store per
capita from the current one store for every 52,493 residents to one
store for every 17, 498 residents. The full service grocery store per
capita for Oaklands more upscale combined communities of
Piedmont Avenue, Rockridge and Montclair is one full service grocery
for every 8,655 residents. The generally accepted average is one full
service grocery store for every 9,500 residents. Our objective is to
reduce the full service grocery store per capita for our targeted area
from one store for every 52, 498 residents to one full service grocery
store for every 17,498 residents.

Business Philosophy:

Fresh Markets Inc. will target both East Oakland hills and East
Oakland flatlands residents. Our target market consist of some
41,655 medium to high income East Oakland hills dwellers and some
62,095 low to medium income East Oakland flatland dwellers.
Grocery stores are a fundamental resource for neighborhoods.
Grocery shopping consumes a large portion of most household
budgets. In addition, shopping for food is an activity that is
performed frequently. It is important that residents in
neighborhoods within our targeted area should have fresh and
healthy full service grocery stores within a comfortable walking
distance.
In spite of the fact that many of the residents in our targeted area
are low income, we believe the area deserves high quality foods,
especially meats and produce at a level expected from national brand
grocery stores such as Safeway & Lucky etc., rather than having to
accept discount grocery stores that that are known for selling less
than stellar quality product. Further we believe that the residents of
our targeted should not have to travel the distance they currently
travel to shop at any level of full service grocery. The Fresh Market
Group of stores will mitigate both of the issues.

(Page 4)

Fresh Markets, under nonprofit ownership will uniquely be able to

and will offer groceries at the Safeway or Lucky level of quality and
service but at a price affordable for the low income residents of our
targeted area.

Community Outreach:
Areas in which Fresh Markets will uniquely contribute to the
community it will serve are described below:
1). Fast Food Alternative Our targeted area is oversaturated
with fast food shops. There is one fast food shop for every
7,499 residents in our targeted area VS one for every 25,964
residents in Oakland combined areas of Piedmont Avenue,
Montclair and Rockridge. We will offer a healthy and affordable
alternative to fast food.

2). Improved Access to Fresh Groceries Currently there is

one full service grocery store for every 52,498 residents in our
targeted area VS one store for every 8,655 residents for a
higher income affluent area in Oakland. Residents now have to
travel great distances to purchase fresh and healthy groceries.
Area residents could travel up to 4.1 miles east to the nearest
Safeway store adjourning San Leandro or up to 4.2 miles west
to the nearest Lucky store. Our group of four stores will reduce
the distance between neighborhood serving full service grocery
to just over one mile; meaning that residents would likely
travel at just under one mile to the nearest full service grocery
store.
3). Youth Employment 80% of these jobs created through
the group of Fresh Market grocery stores will go to area youth
that have been prepped for work place readiness through The
Kinte Centers Youth Employment Development Program.
4). Community Health As is widely known and discussed the
lack of healthy foods in low income community results in
elevated heath problem. For example, the area within our
targeted area that is considered low income is made of zip
codes 94603 and 94621. According to Alameda County health
Statistics the hospitalization rate for diabetes or ages 35 to 54
for zip code 94603 is 355 per 1000 and the rate for 94621 is
347 per 1000 VS a county rate of 113 per 1000. Available and
affordable that Fresh Markets will bring to our targeted area
will help reduce levels of obesity and diabetes and other
unhealthy food consumption problems in the area.
5). Improved local Entrepreneurship Having no interest in
continued ownership of the planned group of four grocery
(Page 5)

stores, The Kinte Center intends to offer its stock ownership to

residents of its targeted area at the lowest possible price once
the stores are operating successfully. This will increase
entrepreneurship in our targeted area.
6. Nutritional tips for the community
Fresh Markets will engage the service of nutritionist that will
develop healthy and nutritional diet ideas and these will be
mailed to the over 30,000 households in the area that Fresh
Markets will serve.

The Business Environment:

Currently there are two independently owned full service grocery

stores in our targeted area. Because these stores are not of national
known chains the quality of their product is often suspect. Fresh
Markets will distinguish itself as the market in the neighborhood that
residents can rely on for high quality foods, especially meats and
produce. The result will be that residents will shop In-community
thus keeping the dollar in the community to grow community wealth
to provide further jobs and economic opportunity.
The grocery industry would be considered a growth industry for the
area because the area is currently grocery underserved and is under
two City Redevelopment Plans that by design, would work to attract
new retail to the area including grocery stores if the need is there.
Research shows that there is a need for easily accessible fresh
grocery in the area. Research shows there is one full service grocery
store for every 52,493 residents in the Fresh Market service area vs.
one full service grocery store for every 8,655 residents in Oaklands
higher income combined areas of Piedmont, Rockridge and Montclair.
The accepted average is one full service grocery store for every
9,500 area residents.
Fresh Markets likely competition will be the two privately owned; not
nationally known grocery stores and possibly a couple of low-income
versions of one of a nationally known grocery store chain. Word of
mouth and documented testimony is that confidence in the quality of
meat and produce from discount full service grocery stores that
might open in the area would be questionable. Fresh Markets will
take advantage of this by establishing itself as the area grocery
store(s) with unquestionably high quality meats and produce as well
as other grocery goods.

Legal Form of Ownership:

Fresh Markets will be a corporation owned by The Kinte Center Inc.;

through stock ownership.
(Page 6)

The Team
Management Team Profiles and Staffing
Store Manager

Compensation:

Salary - $70,766.00/year
Benefits - $22,800.00
Estimated annual salary and benefits for a store manager:
$93,566.00
Assistant Store Manager

Compensation:

Salary $60,121.00
Benefits $14,027.27
Estimated annual salary and benefits for an assistant store manager:
$74,148.27

Professional Services:

Legal services - Our Business Attorney of record is William A. Taylor

with the law firm of William A. Taylor, Attorney, Taylor, Goins &
Stallwotrh LLP.
CPA Services We Have arranged for CPA services of Selina Chu with
Grant & Smith LLP, Certified Public Accounts.
Consultant(s) Fresh Markets has budgeted substantially to hire the
expertise in grocery store start up and management it knows it will
need.

Human Resources Requirements

(1). Food preparation workers
A Staff of 3.38

Compensation

Salary: $82,110.51/year
Benefits: $15,527.21/year
Estimated annual salary plus benefits for 3.38 Food Preparations
workers: $97,637.72
(2). Combined food preparation and serving workers including fast
food.
A staff of 2.54

Compensation

(Page 7)

Salary: $60,561.68/year
Benefits: $11,452.30/year
Estimated annual salary plus benefits or 2.54 combined food
preparations and serving workers: $72,013.98
(3). Cashiers
Staff of 22.16

Compensation

Salary: $492,161.19/year
Benefits: $93,068.45/year
Estimated annual salary plus benefits for 22.16 Cashiers:
$585,229.64
(4). Retail Sales Persons
Staff of 1.24

Compensation

Salary: $31,943.70/year
Benefits: $6,040.60/year
Estimated annual salary plus benefits for 1.24 Retail sales persons:
$37,984.3
(5). Customer Service Representatives
Staff of 5.63

Compensation

Salary: $137,436.41/year
Benefits: $25,989.43/year
Estimated annual salary plus benefits for 5.63 customer service
representatives: $163,425.84
(6). Stock clerks
Staff of 10.92

Compensation

Salary: $264,504.46/year
Benefits: $50,018.19/year
Estimated annual salary plus benefits for 10.92 Stock clerks:
$314,522.65
(7). Bakers:
Staff of 1.11

Compensation

Salary: $32,799.89/year
Benefits: $6,202.51/year
Estimated annual salary plus benefits for 1.11 Bakers: $39,002.40
(8). Butchers and meat cutters
Staff of 2.34
(Page 8)

Compensation

Salary: $137,159.00/year
Benefits: $25,918.17/year
Estimated annual salary plus benefits for 2.34 Butchers and meat
cutters: $163,078.07
(9). Packers and package handlers
Staff of 1.37

Compensation

Salary: $28,318.46/year
Benefits: $5,355.07/year
Estimated annual salary plus benefits for 1.37 Packers ad package
handlers: $33,673.53

Marketing Plan
Economics: Fresh Markets Inc. will operate as a group of four

stores in a now grocery underserved area in East Oakland, California

at 55th Avenue east to the Oakland San Leandro border. This area
has a population of 104,985 residents which is more than one fourth
of Oaklands total population. According to data from Demographics
now in their CEX-Food, Beverage & Grocery Detail summary Report,
total spent in our targeted area on food at home is $127,471,835.03.
Assuming that only 60% of area residents shop at the existing two
full service grocery stores plus the four planned Fresh Markets Inc.
full service grocery stores the market share opportunity would be a
total of $76,478,110.38 resulting in an annual market share
opportunity of $12,746,353.23 for each of six stores respectively.
Currently there is only one grocery store for every 52,493 residents
in our targeted area VS one for every 8,655 in a more high income,
more affluent area in Oakland. Four new Fresh Markets Inc. will
reduce this to one store for every 17,498 residents thereby making
fresh grocery more available in our targeted area.

Product: Fresh Markets Inc. will offer a full line of food and

beverages and services as described in the Executive Summary

section of this plan. Fresh Markets will offer exceptionally high
quality meats and produce which is often mentioned as missing from
our targeted area.

Customers: Fresh Markets will target shoppers at two different

income levels; the residents that reside in the East Oakland hills and
those that reside in the East Oakland flatlands. According to latest
statistics from Demographics Now, the per capita annual income for
the East Oakland hills area on average is $27,027.00 and the average
(Page 9)

annual per capita for the Flatlands is $13,595.00. To best serve Fresh
Markets diverse service area it will stock according to needs and
price product with income level in mind.

Competition: Fresh Markets Inc.s competition will be two existing

privately owned (non chain) full service grocery stores plus the
possibility of two discount versions of a major chain grocery store.
Since the matter of the two discount grocery stores in still under
discussion, it would be accurate to state that full service grocery
stores in our targeted will consist of the two existing full service
grocery plus Fresh Market Incs planned four new full service grocery
stores. Essentially competition would be between the two existing
privately owned full service grocery stores and the four planned
Fresh Market Inc. stores.
Niche: Fresh Markets, owned by a nonprofit organization, will be

able to virtually forego profits to an extent that Fresh Markets will be

able to offer fresh grocery product quality at national Chain grocery
store levels while maintaining product pricing at a level affordable
for a low income community with an average income well below the
national average. This will be Fresh Markets Inc.s trademark.

Marketing Strategy: Fresh Markets will rely mostly on direct

marketing to residents in our area from The Kinte Centers Database
of Households in our targeted area. Fresh Markets will first send out
mailers announcing the coming of our four stores and locations and
that Fresh Markets Inc. will offer fresh groceries and service at a
level equal to that of national full service grocery stores. The
mailings will highlight Fresh Markets Inc.s unique outreach in the
areas of youth employment, positive impact on community health
etc. Fresh Markets Inc. will also distribute weekly door hangers
announcing special grocery discounts. Fresh Markets intends to run
quarterly TV ads.
Promotional Budget: Fresh Markets Inc. has an annual advertising

budget of $25,000.00.

Pricing: Fresh Markets will price its goods and service at market to
below market levels. We will price in line with the average income
levels of four divergent areas.

Proposed Locations: Fresh Markets Inc. monitors the two ensuing

City Redevelopment Plans that cover our targeted area. In doing this
we are aware of a commercial area redesign four our targeted area.
To be consistent with the ensuing redevelopment Fresh Markets
(Page 10)

Inc.s four planned stores will be located in Redevelopment

designated area commercial districts.

Management and Organization

Founders: Fresh Markets Inc. is founded by The Kinte Center for the

Study of Urban Commerce Inc. an Oakland California based 501 (C)

(3) charitable nonprofit organization with an unemployment
reduction specific purpose. The Kinte Centers purpose for starting
Fresh Markets Inc. is two fold (1). To create jobs in Fresh Markets
Incs service area and (2). Bring fresh, accessible grocery to the
targeted area.

Management Team: While the founding organization

The Kinte Center Inc. is a very capable nonprofit organizations it

does realize that there will be a need to hire the expertise needed to
start and operate the four planned Fresh Markets. The budget for the
needed expertise has been established.
Board of Directors: To be named in the future
Board of Advisors: To be named in the future.
Consultants: To be hired when needed.

Cash Flow Narrative

(With Start-up Costs Narrative)

General: While the plan is for four new Fresh Markets grocery stores

in our targeted area, this Start up Costs and Cash Flow Analysis is for
a single store. It can be expanded to add other stores as the process
to start-up the four planned markets proceeds.

The Cash Flow Analysis Structure: The attached Cash Flow

Analysis cover operations income and costs for years one, tow and
three. The analysis assumes no income for the first three months of
operation in yea one as this period is designated as the Start-up
period. The analysis is built on very conservative a worst case
analysis. Sales projections are well below market share sales
opportunity and costs are intentionally recorded at a higher level
than research calls for. A number of specific key costs are covered in
the Cash Flow narrative below. The analysis shows a start up cost of
$889,984.65 to start up a store in an existing structure and
$1,189,984.65 to build a store from ground up.

(Page 11)

Sales Projections:

To derive projected income, a market share opportunity approach for

projecting sales was used. According to Demographics Nows CEX
Food, Beverage & Grocery Detail summary Report dated August 24,
2010, the total expenditure on Food at home in our targeted area is
$127,471,119.38. When applying the standard store per capita of one
tore per every 9,500 residents to our targeted area population of
104,985, the area could accommodate 11.5 stores. Using this
scenario each of the 11.5 stores would have a market share
opportunity of $11,084.444.40. Fresh Markets project the following
sales for year one, two and three.
a. Year one = $4,119,000.00
b. Year two = $6,426,000.00
c. Tear three = $7,897,000.00
Our annual sales projections are well below the $11,084,444.00
projected sales market share opportunity for a single store among
the possible 11.5 stores. Currently there are only two functioning full
service stores serving the area.

Cash Flow Analysis changes for years two and three:

Cash Flow analyses are provided for years one (with start up costs),
two and three. Costs of goods and services for years two and three
were increased by a government declared consumer price index of
1.3 for the San Francisco area for the first three quarters of 2010.
With respect salaries, findings are mixed. During the climate of high
unemployment, lay off etc we find in some cases no actual increase
in salaries of grocery store workers. We decided to increase salaries
for years two and three by 1.5%; if for no more than to cover the
costs of increase in the cost of benefits, mostly health insurance.

Salaries:

Salaries are projected on data from the Bureau of Labor Statistics for
grocery stores. In addition our salary numbers were reviewed by a
manager of our local Safeway store observed that our numbers were
good but suggested that we increase the salary of Meat Cutters. We
increased meat Cutter salaries as suggested. Again we took a
conservative in our staff and salary projections.

The promotional budget:

We have access to a database of the some 31,000 households in our

targeted area. This will facilitate less expensive direct mailing under
the Kinte Center bulk mailing privileges. Further our findings are that
the Black church plays a central role in majority Black community

(Page 12)

affairs. This provides an expensive means of reaching large numbers

of residents of our targeted area with announcements and
advertising. Thus cutting down on the cost of distributing
advertisements etc. Considering the somewhat unique opportunity
to reach many area residents through area churches we are
confident that our annual promotional budget (marketing &
Advertising) of $49,992.00 is sufficient.

Start-up Consulting:

Realizing we will need to hire grocery stores expertise beyond that

that will come with the grocery store manager our plan allocates
$30,000.00 over months 1, 2 and 3 for anticipated grocery store
consulting needs.

Summarization:

In depth analysis was performed to attain the highest level of

accuracy in projecting all of the costs described above. For all other
areas of the Start and Cash Flow Analysis we build our numbers from
an acquired template model for a 17,000 sq. ft. full service grocery
store. We reconfigured the numbers for the 17,000 sq. ft. store to fit
a 28,000 sq. ft. Fresh Markets Inc. full service grocery store.

(Page 13)

YEAR ONE
CASH FLOW ANALYSIS AND START-UP COSTS
Month # 1
Income from Sales
Plus : Balance foreward
Equals: Bal Fwd. Plus Sales
Less Expndditures:

Salaries
Rent/Mortgage
Inventory
Telephone

Equipment lease
PA System
website building
website maintenance
Internet access fee
utilities
Office Equipment
Office supplies
Office Furnituire
Start-up Conssultant fees
Legal fees
Insurance
CPA - Bookkeeping fees
Maintenance - store
Maintenance - parking lot
Uniforms
Signage
Security
Marketing/Advertising
Miscellaneous
TOTAL EXPENDITURES PER MONTH

$0.00
$0.00
$0.00

START-UP PERIOD

Month # 3

Month # 4

Month # 5

Month # 6

Month # 7

Month # 8

Month # 9

Month # 10

Month # 11

Month # 12

$0.00
$0.00
$0.00

$0.00
$0.00
$0.00

$0.00
$0.00
$0.00

$440,000.00
$0.00
$350,000.00

$442,000.00
$32,761.45
$474,761.45

$445,000.00
$155,522.90
$600,522.90

$447,000.00
$279,284.35
$726,284.35

$449,000.00
$402,045.80
$851,045.80

$459,000.00
$524,807.25
$983,807.25

$469,000.00
$655,568.70
$1,124,568.70

$479,000.00
$794,330.15
$1,273,330.15

$489,000.00
$941,591.60
$1,430,591.60

$140,562.59

140,562.59

$140,562.59

$421,687.77

$140,562.59

$140,562.59

$140,562.59

$140,562.59

$140,562.59

$140,562.59

$140,562.59

$140,562.59

$140,562.59

$10,000.00
$133,894.45
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$20,000.00
$250.00
$1,000.00
$500.00
1,167.67
500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$323,134.00

$10,000.00
$138,894.45
500.00
6,000.00
166.67
$0.00
$150.00
9.95
$500.00
$250.00
$300.00
$0.00
20,000.00
$250.00
$1,000.00
$500.00
1,166.67
$500.00
$300.00
$0.00
2,500.00
4,166.00
$416.67
$328,133.00

$10,000.00
$142,894.45
500.00
6,000.00
166.67
$0.00
$150.00
9.95
$500.00
$250.00
300.00
$0.00
20,000.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$332,133.00

$30,000.00
$415,683.35
$1,500.00
$18,000.00
$500.01
600.00
$450.00
$29.85
$1,500.00
$750.00
900.00
$2,000.00
$60,000.00
$750.00
$3,000.00
$1,500.00
3,501.01
$1,500.00
$900.00
$10,000.00
$7,500.00
$12,498.00
$1,250.01

$10,000.00
$148,000.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$317,238.55

$10,000.00
$150,000.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$319,238.55

$10,000.00
$152,000.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$321,238.55

$10,000.00
$155,000.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$324,238.55

$10,000.00
$157,000.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$326,238.55

$10,000.00
$159,000.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$328,238.55

$10,000.00
$161,000.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$330,238.55

$10,000.00
$162,500.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$331,738.55

$10,000.00
$165,207.00
$500.00
$6,000.00
$166.67
$0.00
$150.00
$9.95
$500.00
$250.00
$300.00
$0.00
$0.00
$250.00
$1,000.00
$500.00
$1,166.67
$500.00
$300.00
$0.00
$2,500.00
$4,166.00
$416.67
$334,445.55

$32,761.45

$155,522.90

$279,284.35

$402,045.80

$524,807.25

$655,568.70

$794,330.15

$941,591.60

$1,096,146.05

BALANCE FORWARD
START UP COSTS

Month # 2

$996,000.00

(Page 14)

YEAR TWO
CASH FLOW ANALYSIS
Month # 1
Income From Sales
Balance Foreward
Bal Fwd. Plus Sales
Less Expenditures:

Salaries
Rent/Mortgage
Inventory
Telephone

Equipment lease
PA System
website building
website maintenance
Internet access fee
utilities
Office Equipment
Office supplies
Office Furnituire
Start-up Conssultant fees
Legal fees
Insurance
CPA - Bookkeeping fees
Maintenance - store
Maintenance - parking lot
Uniforms
Signage
Security
Marketing/Advertising
Miscellaneous
TOTAL EXPENDITURES PER MONTH
BALANCE FORWARD

Month # 2

Month # 3

$500,000.00
$1,104,146.05
$1,604,146.05

506,000.00
1,189,750.91
$1,695,750.91

$510,000.00
$1,279,355.77
$1,789,355.77

$210,843.39

$210,843.39

$210,843.39

$10,000.00
$169,300.00
$650.00
$7,800.00
$216.67
$0.00
$195.00
$12.94
$650.00
$325.00
$390.00
$0.00
$0.00
$325.00
$1,300.00
$650.00
$1,516.67
$650.00
$390.00
$0.00
$3,250.00
$5,415.80
$514.67
$414,395.14
$1,189,750.91

$10,000.00
$171,300.00
$650.00
$7,800.00
$216.67
$0.00
$195.00
$12.94
$650.00
$325.00
$390.00
$0.00
$0.00
$325.00
$1,300.00
$650.00
$1,516.67
$650.00
$390.00
$0.00
$3,250.00
$5,415.80
$514.67
$416,395.14
$1,279,355.77

$10,000.00
$173,300.00
$650.00
$7,800.00
$216.67
$0.00
$195.00
$12.94
$650.00
$325.00
$390.00
$0.00
$0.00
$325.00
$1,300.00
$650.00
$1,516.67
$650.00
$390.00
$0.00
$3,250.00
$5,415.80
$514.67
$418,395.14
$1,370,960.63

Month # 4

Month # 5

$515,000.00
$520,000.00
$1,370,960.63 $1,465,565.49
$1,885,960.63 $1,985,565.49

Month # 6

Month # 7

$530,000.00
$1,563,670.35
$2,093,670.35

$540,000.00
$1,670,775.21
$2,210,775.21

$210,843.39

$210,843.39

$210,843.39

$10,000.00
$10,000.00
$175,300.00
$176,800.00
$650.00
$650.00
$7,800.00
$7,800.00
$216.67
$216.67
$0.00
$0.00
$195.00
$195.00
$12.94
$12.94
$650.00
$650.00
$325.00
$325.00
$390.00
$390.00
$0.00
$0.00
$0.00
$0.00
$325.00
$325.00
$1,300.00
$1,300.00
$650.00
$650.00
$1,516.67
$1,516.67
$650.00
$650.00
$390.00
$390.00
$0.00
$0.00
$3,250.00
$3,250.00
$5,415.80
$5,415.80
$514.67
$514.67
$420,395.14
$421,895.14
$1,465,565.49 $1,563,670.35

$10,000.00
$177,800.00
$650.00
$7,800.00
$216.67
$0.00
$195.00
$12.94
$650.00
$325.00
$390.00
$0.00
$0.00
$325.00
$1,300.00
$650.00
$1,516.67
$650.00
$390.00
$0.00
$3,250.00
$5,415.80
$514.67
$422,895.14
$1,670,775.21

$10,000.00
$179,000.00
$650.00
$7,800.00
$216.67
$0.00
$195.00
$12.94
$650.00
$325.00
$390.00
$0.00
$0.00
$325.00
$1,300.00
$650.00
$1,516.67
$650.00
$390.00
$0.00
$3,250.00
$5,415.80
$514.67
$424,095.14
$1,786,680.07

$210,843.39

Month # 8

Month # 9

$548,000.00 $551,000.00
$1,786,680.07 $1,909,384.93
$2,334,680.07 $2,460,384.93
$210,843.39

Month # 10
$556,000.00
$2,033,589.79
$2,589,589.79

$210,843.39

$210,843.39

$10,000.00
$10,000.00
$180,200.00 $181,700.00
$650.00
$650.00
$7,800.00
$7,800.00
$216.67
$216.67
$0.00
$0.00
$195.00
$195.00
$12.94
$12.94
$650.00
$650.00
$325.00
$325.00
$390.00
$390.00
$0.00
$0.00
$0.00
$0.00
$325.00
$325.00
$1,300.00
$1,300.00
$650.00
$650.00
$1,516.67
$1,516.67
$650.00
$650.00
$390.00
$390.00
$0.00
$0.00
$3,250.00
$3,250.00
$5,415.80
$5,415.80
$514.67
$514.67
$425,295.14 $426,795.14
$1,909,384.93 $2,033,589.79

$10,000.00
$182,000.00
$650.00
$7,800.00
$216.67
$0.00
$195.00
$12.94
$650.00
$325.00
$390.00
$0.00
$0.00
$325.00
$1,300.00
$650.00
$1,516.67
$650.00
$390.00
$0.00
$3,250.00
$5,415.80
$514.67
$427,095.14
$2,162,494.65

Month # 11

Month # 12

$570,000.00
$580,000.00
$2,162,494.65 $2,304,499.51
$2,732,494.65 $2,884,499.51
$210,843.39

$210,843.39

$10,000.00
$10,000.00
$182,900.00
$184,500.00
$650.00
$650.00
$7,800.00
$7,800.00
$216.67
$216.67
$0.00
$0.00
$195.00
$195.00
$12.94
$12.94
$650.00
$650.00
$325.00
$325.00
$390.00
$390.00
$0.00
$0.00
$0.00
$0.00
$325.00
$325.00
$1,300.00
$1,300.00
$650.00
$650.00
$1,516.67
$1,516.67
$650.00
$650.00
$390.00
$390.00
$0.00
$0.00
$3,250.00
$3,250.00
$5,415.80
$5,415.80
$514.67
$514.67
$427,995.14
$429,595.14
$2,304,499.51 $2,454,904.37

(Page 15)

YEAR THREE
CASH FLOW ANALYSIS
Month # 1
Income From Sales
Balance Foreward
Bal Fwd. Plus Sales
Less Expenditures:

Salaries
Rent/Mortgage
Inventory
Telephone

Equipment lease
PA System
website building
website maintenance
Internet access fee
utilities
Office Equipment
Office supplies
Office Furnituire
Start-up Conssultant fees
Legal fees
Insurance
CPA - Bookkeeping fees
Maintenance - store
Maintenance - parking lot
Uniforms
Signage
Security
Marketing/Advertising
Miscellaneous
TOTAL EXPENDITURES PER MONTH
BALANCE FORWARD

Month 2

$600,000.00
$2,454,904.37
$3,054,904.37

$620,000.00
$2,509,997.01
$3,129,997.01

$316,265.09

$316,265.09

$10,000.00
$187,500.00
$845.00
$10,140.00
$281.67
$0.00
$253.50
$16.82
$845.00
$422.50
$507.00
$0.00
$0.00
$422.50
$1,300.00
$845.00
$1,971.67
$845.00
$507.00
$0.00
$4,225.00
$7,045.54
$669.07
$544,907.36
$2,509,997.01

$10,000.00
$190,000.00
$845.00
$10,140.00
$281.67
$0.00
$253.50
$16.82
$845.00
$422.50
$507.00
$0.00
$0.00
$422.50
$1,300.00
$845.00
$1,971.67
$845.00
$507.00
$0.00
$4,225.00
$7,045.54
$669.07
$547,407.36
$2,582,589.65

Month # 3

Month # 4

Month # 5

Month # 6

Month # 7

$630,000.00
$640,000.00
$650,000.00
$660,000.00
$670,000.00
$2,582,589.65 $2,663,182.29 $2,752,274.93 $2,850,367.57 $2,958,460.21
$3,212,589.65 $3,303,182.29 $3,402,274.93 $3,510,367.57 $3,628,460.21
$316,265.09

$316,265.09

$10,000.00
$10,000.00
$192,000.00
$193,500.00
$845.00
$845.00
$10,140.00
$10,140.00
$281.67
$281.67
$0.00
$0.00
$253.50
$253.50
$16.82
$16.82
$845.00
$845.00
$422.50
$422.50
$507.00
$507.00
$0.00
$0.00
$0.00
$0.00
$422.50
$422.50
$1,300.00
$1,300.00
$845.00
$845.00
$1,971.67
$1,971.67
$845.00
$845.00
$507.00
$507.00
$0.00
$0.00
$4,225.00
$4,225.00
$7,045.54
$7,045.54
$669.07
$669.07
$549,407.36
$550,907.36
$2,663,182.29 $2,752,274.93

Month # 8

Month # 9

Month # 10

Month # 11

Month # 12

$675,000.00
$3,076,552.85
$3,751,552.85

$682,000.00
$3,199,645.49
$3,881,645.49

$685,000.00
$3,329,738.13
$4,014,738.13

$690,000.00
$3,462,830.77
$4,152,830.77

$695,000.00
$3,600,923.41
$4,295,923.41

$316,265.09

$316,265.09

$316,265.09

$316,265.09

$316,265.09

$316,265.09

$10,000.00
$10,000.00
$10,000.00
$194,500.00
$194,500.00
$194,500.00
$845.00
$845.00
$845.00
$10,140.00
$10,140.00
$10,140.00
$281.67
$281.67
$281.67
$0.00
$0.00
$0.00
$253.50
$253.50
$253.50
$16.82
$16.82
$16.82
$845.00
$845.00
$845.00
$422.50
$422.50
$422.50
$507.00
$507.00
$507.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$422.50
$422.50
$422.50
$1,300.00
$1,300.00
$1,300.00
$845.00
$845.00
$845.00
$1,971.67
$1,971.67
$1,971.67
$845.00
$845.00
$845.00
$507.00
$507.00
$507.00
$0.00
$0.00
$0.00
$4,225.00
$4,225.00
$4,225.00
$7,045.54
$7,045.54
$7,045.54
$669.07
$669.07
$669.07
$551,907.36
$551,907.36
$551,907.36
$2,850,367.57 $2,958,460.21 $3,076,552.85

$10,000.00
$194,500.00
$845.00
$10,140.00
$281.67
$0.00
$253.50
$16.82
$845.00
$422.50
$507.00
$0.00
$0.00
$422.50
$1,300.00
$845.00
$1,971.67
$845.00
$507.00
$0.00
$4,225.00
$7,045.54
$669.07
$551,907.36
$3,199,645.49

$10,000.00
$194,500.00
$845.00
$10,140.00
$281.67
$0.00
$253.50
$16.82
$845.00
$422.50
$507.00
$0.00
$0.00
$422.50
$1,300.00
$845.00
$1,971.67
$845.00
$507.00
$0.00
$4,225.00
$7,045.54
$669.07
$551,907.36
$3,329,738.13

$10,000.00
$194,500.00
$845.00
$10,140.00
$281.67
$0.00
$253.50
$16.82
$845.00
$422.50
$507.00
$0.00
$0.00
$422.50
$1,300.00
$845.00
$1,971.67
$845.00
$507.00
$0.00
$4,225.00
$7,045.54
$669.07
$551,907.36
$3,462,830.77

$10,000.00
$194,500.00
$845.00
$10,140.00
$281.67
$0.00
$253.50
$16.82
$845.00
$422.50
$507.00
$0.00
$0.00
$422.50
$1,300.00
$845.00
$1,971.67
$845.00
$507.00
$0.00
$4,225.00
$7,045.54
$669.07
$551,907.36
$3,600,923.41

$10,000.00
$194,500.00
$845.00
$10,140.00
$281.67
$0.00
$253.50
$16.82
$845.00
$422.50
$507.00
$0.00
$0.00
$422.50
$1,300.00
$845.00
$1,971.67
$845.00
$507.00
$0.00
$4,225.00
$7,045.54
$669.07
$551,907.36
$3,744,016.05

$316,265.09

$316,265.09

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