Catering Business Plan

Bright Future Youth and Family Services

Financial Plan

Forecast

Key Assumptions

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The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

We assume direct food costs will be equal to or less than 30% of total direct costs.
We assume a slow-growth economy, without major recession or crisis in food contamination.
We assume that there are no unforeseen changes in government grant funding availability.
We assume a continued interest in restaurant and hospitality services by students of the Chambers School. It has proved to be a highly popular program in the past and we have no reason to believe this situation will change.
We assume a continued interest in using catering services by organizations and businesses in the Eugene/Springfield area.

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Revenue by Month

Expenses by Month

Net Profit (or Loss) by Year

Financing

Use of Funds

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Start-up Expenses

Dept. of Health Fees $100

Lease (Commercial kitchen) $8,000

Expensed Equipment $1,500

Software $500

TOTAL START-UP EXPENSES $10,000

We will also have $30,000 in mostly culinary equipment as long-term assets when we start.

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Sources of Funds

We will get our $40,000 from initial fundraising to a specific grantor that will front us the money, plus an annual $15,000 grant from the Eugene Downtown Commission. Our plan assumes $2K per month in donations.

Statements

Projected Profit & Loss

	2017	2018	2019
Revenue	$63,072	$64,482	$65,720

Direct Costs	$13,354	$14,481	$15,472

Gross Margin	$49,718	$50,000	$50,248
Gross Margin %	79%	78%	76%
Operating Expenses
Salaries & Wages	$36,000	$36,000	$36,000
Employee Related Expenses	$7,200	$7,200	$7,200
Marketing	$2,500	$500	$500
Admin etc	$3,600	$3,600	$3,600
Total Operating Expenses	$49,300	$47,300	$47,300

Operating Income	$418	$2,701	$2,948

Interest Incurred
Depreciation and Amortization	$6,000	$6,000	$6,000
Gain or Loss from Sale of Assets
Income Taxes	$0	$0	$0
Total Expenses	$68,654	$67,781	$68,772
Net Profit	($5,582)	($3,299)	($3,052)
Net Profit/Sales	(9%)	(5%)	(5%)

Projected Balance Sheet

	Starting Balances	2017	2018	2019
Cash	$10,000	$418	$3,119	$6,067
Accounts Receivable		$0	$0	$0
Inventory
Other Current Assets
Total Current Assets	$10,000	$418	$3,119	$6,067

Long-Term Assets	$30,000	$30,000	$30,000	$30,000
Accumulated Depreciation		($6,000)	($12,000)	($18,000)
Total Long-Term Assets	$30,000	$24,000	$18,000	$12,000

Total Assets	$40,000	$24,418	$21,119	$18,067

Accounts Payable	$10,000	$0	$0	$0
Income Taxes Payable		$0	$0	$0
Sales Taxes Payable		$0	$0	$0
Short-Term Debt
Prepaid Revenue
Total Current Liabilities	$10,000	$0	$0	$0
Long-Term Debt
Long-Term Liabilities

Total Liabilities	$10,000	$0	$0	$0

Paid-In Capital	$40,000	$40,000	$40,000	$40,000
Retained Earnings	($10,000)	($10,000)	($15,582)	($18,881)
Earnings		($5,582)	($3,300)	($3,052)
Total Owner’s Equity	$30,000	$24,418	$21,119	$18,067

Total Liabilities & Equity	$40,000	$24,418	$21,119	$18,067

Projected Cash Flow Statement

	2017	2018	2019
Net Cash Flow from Operations
Net Profit	($5,582)	($3,299)	($3,052)
Depreciation & Amortization	$6,000	$6,000	$6,000
Change in Accounts Receivable	$0	$0	$0
Change in Inventory
Change in Accounts Payable	($10,000)	$0	$0
Change in Income Tax Payable	$0	$0	$0
Change in Sales Tax Payable	$0	$0	$0
Change in Prepaid Revenue
Net Cash Flow from Operations	($9,582)	$2,700	$2,948
Investing & Financing
Assets Purchased or Sold
Net Cash from Investing
Investments Received
Dividends & Distributions
Change in Short-Term Debt
Change in Long-Term Debt
Net Cash from Financing
Cash at Beginning of Period	$10,000	$418	$3,119
Net Change in Cash	($9,582)	$2,700	$2,948
Cash at End of Period	$418	$3,119	$6,067