Business Plan SAMPLE

Morgan and Wells Bed and Breakfast
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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the
understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Table of Contents
Executive Summary ..........................................................1
Who We Are .................................................................................................................................................1
What We Sell ................................................................................................................................................1
Who We Sell To............................................................................................................................................1
Financial Summary.......................................................................................................................................2
Company............................................................................4
Mission Statement ........................................................................................................................................4
Company Overview ......................................................................................................................................4
Management Team.......................................................................................................................................4
Locations and Facilities ................................................................................................................................5
Products and Services ......................................................7
Products and Services..................................................................................................................................7
Target Market....................................................................8
Market Overview...........................................................................................................................................8
Industry Analysis...........................................................................................................................................8
Key Customers .............................................................................................................................................8
Strategy and Implementation .........................................10
Marketing Plan............................................................................................................................................10
Milestones...................................................................................................................................................11
Exit Strategy ...............................................................................................................................................12
Financial Plan..................................................................13
Revenue Forecast ......................................................................................................................................13
Personnel Plan ...........................................................................................................................................14
Budget ........................................................................................................................................................15
Cash Flow Assumptions .............................................................................................................................17
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Loans and Investments...............................................................................................................................17
Financial Statements ......................................................19
Profit and Loss Statement ..........................................................................................................................19
Balance Sheet ............................................................................................................................................21
Cash Flow Statement .................................................................................................................................22
Appendix..........................................................................24
Revenue Forecast ......................................................................................................................................24
Personnel Plan ...........................................................................................................................................26
Budget ........................................................................................................................................................27
Loans and Investments...............................................................................................................................30
Profit and Loss Statement ..........................................................................................................................31
Balance Sheet ............................................................................................................................................34
Cash Flow Statement .................................................................................................................................37
1
Executive Summary
Who We Are
Morgan and Wells Bed and Breakfast is a local Bed and Breakfast company with business and private clients in North
Carolina and the surrounding area within a ten-mile radius. Morgan and Wells Bed and Breakfast will be a unique
facility that will feature a number of amenities for clients staying with the Company.
Morgan and Wells is a lovely Craftsman Style home that was built in the early 1900s and currently serves as an
intimate 5 guestroom Bed and Breakfast. In keeping with the heritage of the home, with its polished heart pine floors
and 12-foot-high ceilings, the guestrooms are decorated contemporary transitional to embrace modern luxury and Old
World Charm.
The inn features on-site parking and is located on a quiet, tree-lined street near the heart of the historic district. We
are just steps away from museums, shopping, dining and the unique attractions that make Shelby North Carolina the
ideal destination for well-deserved relaxation or a romantic getaway. Triangulated between the South Mountains,
Cramer Mountain and the Blue Ridge Parkway, you are only minutes away from even more peace and tranquillity.
What We Sell
Morgan and Wells Bed and Breakfast offers premier overnight accommodation, event management, event staff, a
variety of cuisine for breakfasts, lunches, dinners, and appetizers, alcoholic and non-alcoholic beverage service, floral
design, space design and decor, musicians and DJs, event equipment and furniture rentals, and other event services.
Who We Sell To
The hospitality industry serves private, corporate, and non-profit organisations with accommodation, food, drinks,
event management and other services. Events are generally held by clients in order to celebrate, communicate, or
both.
Celebration: Parties and banquets as part of key events in life (birthdays, weddings, bar and bat mitzvahs,
engagements, bridal and baby showers, retirement parties, etc.) or for a business (holiday or end-of-year
parties, retirements, honoree galas, etc.)
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Communication: Events to communicate a message for the benefit of attendees or the press (product
launches, press events, trade shows, conferences, presentations, lectures, fundraisers) or to stimulate
discussion (corporate meetings, summits, etc.)
The U.S. market for caterers was estimated at $6.9 billion by IBISWorld. The market is prone to economic cycles, as
events, especially corporate events, are one of the first expenses cut during a downturn. Celebratory events may be
scaled back a bit, but are generally not canceled during a downturn (i.e., spending on weddings, bar mitzvahs, etc.,
continues).
There is a movement towards horizontal integration in the greater event industry, with some full-service Bed and
Breakfast providers growing to provide entertainment, audio-visual and technology, catering, rentals, decor, venues
and more. Businesses that provide these additional services may take on assets that are not as fully utilized, as a
specialist's would be, but they can earn greater margins on the sales they make.
Financial Summary
Financial Highlights
The financial plan of the business requires growth financed by positive cash flows from operations. Additional outside
investment or owner investment is not necessary. The new business line is not capital-intensive, but will increase
fixed costs of the business.
The business will need substantial start-up capital. It is expected that a good portion of that amount will be secured
through financing and investment ($100,000).
Sales are expected to start conservatively the first year and increase steadily through the third year of operations.
Operating income will pay back the start-up loan over a seven year amortization.
Cash will be retained in the business to cover cash operating needs as well as future expansion.
It is expected that dividends will be paid to the investors annually. The amount of the dividends is estimated to be
50% of profits.
After the first year of operations, it is expected that Morgan and Wells Bed and Breakfast will be able to trim expenses
in the business as efficiency, experience, and knowledge work together and help the business operate better.
Estimates are extremely conservative in the budgeting process.
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Financial Highlights by Year
4
Company
Mission Statement
Morgan and Wells Bed and Breakfast mission is to become the recognized leader in its targeted market for quality
lodging, food service, and catering services.
Company Overview
The purpose of this business plan is to outline the plans for the development of a bed and breakfast while
showcasing the expected financials and operations over the next three years. Morgan and Wells Bed and Breakfast
will provide nightly room lodgings and food/catering services to customers in its targeted market.
Morgan and Wells Bed and Breakfast will be a unique facility that will feature a number of amenities for clients staying
with the Company. This old styled facility will features 5 bed and breakfast style rooms. Within the facility, guests will
experience state-of-the-art technology coupled with a staff that provides food/beverage service, as well as spa
services. The business will also provide large parties with site rentals so that a number of guests can use the facility
exclusively. This is an important revenue center for the business as it will provide a highly predictable stream of
revenue, primarily from event and wedding planners that want to use an entire (but relatively smaller) facility. The
products and services section of the business plan will further describe the services offered by Morgan and Wells Bed
and Breakfast.
Melanie Graham is the founder and 100% owner of Morgan and Wells Bed and Breakfast. Mrs Melanie holds a
Masters of Science degree in Adult Education and has successfully been a real estate investor with her husband
Derrek Graham since 1997. The Grahams purchased and managed a 14-unit apartment building and 13 townhomes
for over ten years. Most recently Derrek added an Associate of Science degree in Hospitality Management from
Central Piedmont Community College. Hospitality management is the perfect field of study as the Graham's currently
own and operate the Villa at Waters Edge, lakeside retreat for vacationers and the Scott House, a 1920s historic
bungalow rental in Uptown Charlotte NC. "It is our passion to host travelers and offer them to true Southern
Hospitality.
Management Team
The initial management team consists of Melanie Graham, Executive Director; and Derrek Graham, Operations
Director.
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Melanie Graham, Executive Director. The Executive Director is hired by the board of directors. Responsibilities
include but are not limited to:
Advise the board and carry out tasks assigned by the board
Oversee daily operations, project planning, and special events, working closely with management team
Personnel management (recruitment, hiring, training, evaluation and termination of staff)
Together with the Operations Director, develop and manage the annual budget for board approval, including
necessary revisions
Derrek Graham, Operations Director. The Operations Director is hired by the Executive Director. Responsibilities
include but are not limited to:
Advise the board and carry out tasks assigned by the board
Assist in personnel management
Development of administrative standards and procedures related to personnel and staff development
Supervision of staff
Serve as liaison between staff and board members
Together with the Executive Director, develop and manage the annual budget for board approval including
necessary revisions
Oversee the preparation of the annual report of activities as well as fiscal reports
Coordinate with the Executive Director and the board to oversee activities including loan/grant applications,
management of loans/grants, special projects, fiscal management
All marketing activities including establish the marketing budget with the executive director; create and
implement marketing plan; develop marketing materials; develop direct mail plan
Manage finances and reporting
Coordinate work on annual audits
Define priorities for all supervised staff
Inventory management of office supplies
Locations and Facilities
An Uptown Bed and Breakfast with a Suburban Feel, Morgan and Wells is the closest Bed and Breakfast to the South
Mountains, sometimes called the gateway to the Blue Ridge Mountains. We are steps from the Earl Scruggs
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Museum, the Don Gibson theatre and host to over 100 festivals for art lovers, music lovers alike. We are triangulated
between three popular vineyards Owls Eye, Buffalo Creek, and Windmill.
We offer transportation to and from any of the three vineyards; we call this Sip & Stay. Each morning our breakfast
presentation features Southern favourites with a twist, always fresh prepared by our Chef and freshly purchased from
our local growers. Our kitchen circa 1900s is original and still cooking up fine meals for all. Morgan and Wells is a
classic Craftsman Bungalow that now resides prominently on the corner of North Morgan and Wells street. This lovely
three-story building was lovingly donated and relocated from 501 North Morgan Street to 400 North Morgan Street.
For short, weighs 230 tons, boast 7 fireplaces, heart pine hardwood floors, fifty six windows, a 1000 square foot wrap
veranda, just to name a few. Guest enjoy King and Queen sized beds, the finest linen and toiletries and heaps of
Southern Hospitality.
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Products and Services
Products and Services
Morgan and Wells Bed and Breakfast currently offers the following products and services:
Premier overnight accommodations
Gourmet Breakfast presentations
Small Meeting Room Rental
Elopement Packages
Spa Services
A variety of cuisine for breakfasts, lunches, dinners, and appetizers
Non-alcoholic, wine, beer, and liquor beverage service
Wait service
Through subcontractors, Morgan and Wells Bed and Breakfast offers:
Floral design
Space design and decor
Musicians and DJs
Event equipment and furniture rentals
Cakes
Through referrals, Morgan and Wells Bed and Breakfast offers:
Lighting
Audio-visual rentals and support
Event security
Valet service
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Target Market
Market Overview
This section of the analysis will detail the economic climate, the Bed and Breakfast industry, the customer profile, and
the competition that the business will face as it progresses through its business operations. Currently, the economic
market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real
estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-
2015, at which point the economy will begin a prolonged recovery period.
Industry Analysis
The Bed and Breakfast industry is extremely fragmented, with 33,000 companies across the United States.
Customers find Bed and Breakfast through referrals, online searches, Yellow Pages, and through businesses which
run restaurants they are already familiar with. They will generally contact the Bead and Breakfast company by phone
on online. Some businesses and private clients hire assistants to handle the details of their stay, including size of
room and choice of food. In this case, these firms, which are more familiar with the industry, may act as a buffer
between the end client and the Bed and Breakfast, sometimes making the process of planning smoother.
The North Carolina overnight visitor gender breakdown is fifty-eight percent female and forty-two percent male. More
than half (58.4%) of the visitors are married and just less than one-fifth of the regions visitors are divorced, widowed
or separated. The largest proportion of North Carolina overnight visitors classify themselves as white (85.4%), and
nearly eleven percent classify themselves as black/African American.
Over half (61.4%) of North Carolina overnight visitor parties have a household head with a college degree or higher.
The average visitor is 46 years old, with over half (52.8%) being 45 years old or older. Over forty percent (40.5%) of
the visitor parties that traveled to North Carolina in 2012 had a household income $75,000 or over. Over thirteen
percent had a household income of over $125,000.
Key Customers
Morgan and Wells Bed and Breakfast target market include the following:
Recreationist
Nature Lovers
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Wine Enthusiast
Business Travelers
Cyclist
Mountain Bikers
Mountain Climbers
Bird Watchers
Historical Site Lovers
Agriculture Tourism
Travelers
Morgan and Wells Bed and Breakfast has traditionally, targeted the private and corporate markets primarily. Private
clients, although requiring additional labor and handholding, can be charged somewhat higher rates than corporate
clients. Furthermore, they help to "recession-proof" the business by providing steadier revenue streams in economic
downturns.
Corporate business can lead to repeat engagements with clients who have annual or even quarterly events and are
more valuable as clients to acquire than private clients, even though the margin percentages are lower on each
event.
Non-profit clients generally seek lower cost providers and venues and, while they do seek out Morgan and Wells Bed
and Breakfast without much marketing to that group, the company's bids are generally not accepted. Morgan and
Wells Bed and Breakfast will continue to choose specific non-profits to sponsor events for to create visibility for
strategic purposes or based on the charitable interests of the owners, but will not market directly to non-profits.
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Strategy and Implementation
Marketing Plan
Overview
Morgan and Wells Bed and Breakfast intends to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. The business will use the following media and tactics to reach its
target audience:
Advertise in local Magazine, a local luxury-focused magazine with half-page color ads showing a photo of
the Bed and Breakfast
Develop a website for Morgan and Wells Bed and Breakfast
Promote the website through search engine optimization and search engine marketing around Bed and
Breakfast, event and rental keywords for the local area
Create a brochure for Morgan and Wells Bed and Breakfast
Email campaign of an e-brochure announcing a promotional offer to all past and current clients
Create and send press kit with information and details on Morgan and Wells Bed and Breakfast to key
clients and press
Create a featured listing on BizBash.com, a website devoted to event resources and venues focused at the
corporate market
Promote introductory spring and summer rates to encourage early rentals
Promote Morgan and Wells Bed and Breakfast at local summer business fair
Sponsor 4 non-profit events per year, all chosen for the exposure they receive to the press and to high net
worth individuals
Positioning
The company intends on using a number of marketing strategies that will promote the Bed and Breakfast easily
travelers and local residents within the target market. These strategies include traditional print advertisements and
ads placed on search engines on the Internet.
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The Bed and Breakfast will also use an internet based strategy. This is very important as many people seeking
lodgings, such as bed and breakfasts, now the Internet to conduct their preliminary searches. Mrs Graham will
register Morgan and Wells Bed and Breakfast with online portals so that potential customers can easily reach the
business.
Pricing
Pricing of our products must remain initially competitive with our rivals. Management does however plan to price our
in-house beers somewhat more than our other products to reflect production costs. This is typical within the industry
and can create higher margins. If Morgan and Wells Bed and Breakfast is able to capture a significant number of
newer customers, then management will consider a rise in overall prices to reflect our established unique position.
Promotion
Develop an online presence by developing a website and placing Morgan and Wells Bed and Breakfast
a contact information with online directories.
Implement a local campaign with the Morgan and Wells Bed and Breakfast targeted market via the use of
flyers, local newspaper advertisements, and word of mouth advertising.
Establish relationships with travel agents and online travel portals throughout the United States.
Distribution
The Company will develop its own online website showcasing the Bed and Breakfast facility (with many pictures), its
menu of onsite services, preliminary pricing information, directions, and contact information. The business will also
register the location with major travel agencies and online portals such as Expedia, Travelocity.com, and
Priceline.com so that the Company can gain nationwide exposure among people seeking to stay in Bed in Breakfasts
within the Companys local target market.
Milestones
Milestone Due Date Who's Responsible
Launch Website April 14, 2014 Mrs Graham
Launch Marketing Campaign April 21, 2014 Mr Graham
Local Paper Ads June 30, 2014 Mrs Graham
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Exit Strategy
The owners of Morgan and Wells Bed and Breakfast will exit this endeavor after they have created a flourishing
business that could be sold for a substantial profit and/or as a franchise that could serve other communities across
the country. It is the owners' intention to run this business until they are ready to retire or have decided to sell the
business and start another.
In the event the proposed plan is not successful the owners will implement necessary measures to exit the business
endeavor with minimal damage to the owners and investors. All equipment and merchandise will be sold to cover any
outstanding debts. The owners in the form of monthly payments will pay any remaining debt until all debts are paid in
full. Definitions of "successful" and time limits for achieving milestones have been included in the owners' partnership
agreement.
The success of the business will be monitored monthly in the first year and quarterly in subsequent years. The
owners are aware that it usually takes new businesses three years to start turning a profit and that the business could
operate at a loss during that time. The owners will keep this in mind when evaluating the state of the business, and
make adjustments when possible to keep the business running with a positive cash flow.
Acceptable loss has been determined; if the business exceeds this amount and is unable to compensate the owners,
we will begin the process of closing the business and paying back debt.
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Financial Plan
Revenue Forecast
Revenue Forecast
FY2015 FY2016 FY2017
Revenue
Lady Ann Room $41,964 $82,964 $120,964
La Sal Room $52,920 $100,999 $150,923
James Edward Room $60,216 $100,216 $160,216
Room 4 $63,864 $120,634 $180,123
Room 5 $63,864 $120,234 $180,123
Total Revenue $282,828 $525,047 $792,349
Direct Cost
Lady Ann Room $3,000 $3,000 $3,000
La Sal Room $3,000 $3,000 $3,000
Room 4 $4,569 $4,569 $4,569
Room 5 $4,569 $4,569 $4,569
Total Direct Cost $18,138 $18,138 $18,138
Gross Margin $264,690 $506,909 $774,211
Gross Margin % 94% 97% 98%
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Revenue by Month
About the Revenue Forecast
Personnel Plan
Personnel Table
FY2015 FY2016 FY2017
Melanie Graham $24,590 $35,412 $42,492
Derrek Graham $24,590 $35,412 $42,492
Chef 1 $7,334 $8,000 $8,000
Total $56,514 $78,824 $92,984
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About the Personnel Plan
Budget
Budget Table
FY2015 FY2016 FY2017
Operating Expenses
Salary $56,514 $78,824 $92,984
Employee Related Expenses $2,460 $3,552 $4,248
Marketing & Promotions $9,204 $9,204 $9,204
Utilities $12,546 $12,546 $12,546
Office Supplies $0 $0 $0
Insurance $4,800 $4,800 $4,800
Soshu House Keeping $4,240 $4,240 $4,240
Reservation Nexus $720 $720 $720
Greenwich $1,000 $1,000 $1,000
John AC $3,600 $3,600 $3,600
Agritech $1,300 $1,300 $1,300
Linens $800 $800 $800
Turkish Towel $699 $699 $699
Total Operating Expenses $97,883 $121,285 $136,141
Major Purchases
Simmons Moving Comp $30,000 $0 $0
Concrete for Footings $4,120 $0 $0
Kevin Kelly Footing Contractor $5,000 $0 $0
Negative Air Flow Machine $450 $0 $0
James Consultant $450 $0 $0
Building Permit $1,300 $0 $0
City of Shelby Wire Disconnect and
Reconnect
$3,500 $0 $0
Time Warner Cable $1,000 $0 $0
John McNamara Asbestos
Consultant
$595 $0 $0
Lowes Rebar, trays, fasteners $513 $0 $0
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Spake $4,000 $0 $0
Lowes $3,300 $0 $0
Kevin Kelly Footing contractor for
Foundation
$4,500 $0 $0
Total Major Purchases $60,728 $0 $0
Expenses by Month
About the Budget
Payroll is by far the largest expense the company incurs (besides cost of goods sold). Staff will need to be managed
and hours regulated so that hours worked correlate to sales. Emphasis will be placed on minimizing expenses that do
not help generate bottom line.
Startup Costs
Total start-up requirements include legal costs, logo design, stationery and related expenses. The start-up costs are
to be financed partially by the direct owner investment and long-term loan financing.
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Cash Flow Assumptions
Cash Flow Assumptions
Cash Inflow
% of Sales on Credit 20%
Avg Collection Period (Days) 15
Cash Outflow
% of Purchases on Credit 20%
Avg Payment Delay (Days) 15
About the Cash Flow Assumptions
Loans and Investments
Loans and Investments Table
FY2015 FY2016 FY2017
Loan / Investment
Loan at 9% interest for 60 mos.
$100,000 $0 $0
Total Amount Received $100,000 $0 $0
Sources of Funds
Morgan and Wells Bed and Breakfast is seeking a long-term commercial loan. This loan will be paid back from the
cash flow of the business within seven years at 9% interest, collateralized by the assets of the company, backed by
personal integrity, experience, and a contractual guarantee from the owner.
Use of Funds
The company will use its financial resources during the startup phase to pay for inventory, equipment, and fixtures.
There is also an amount budgeted for leasehold improvements, which is intended to make minor modifications to the
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proposed site to prepare it for opening. These improvements include replacing missing ceiling tiles and cleaning,
polishing, or redoing the floor tile. It is anticipated that the new floor tile can be laid over the existing tile at a
substantial savings with no loss in quality or durability.
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Financial Statements
Profit and Loss Statement
FY2015 FY2016 FY2017
Revenue $282,828 $525,047 $792,349
Direct Cost $18,138 $18,138 $18,138
Gross Margin $264,690 $506,909 $774,211
Operating Expenses
Salary $56,514 $78,824 $92,984
Utilities $12,546 $12,546 $12,546
Insurance $4,800 $4,800 $4,800
Greenwich $1,000 $1,000 $1,000
John AC $3,600 $3,600 $3,600
Agritech $1,300 $1,300 $1,300
Linens $800 $800 $800
Operating Income $166,807 $385,624 $638,070
Interest Incurred $7,691 $6,907 $5,217
Depreciation and Amortization $9,472 $12,146 $12,146
Income Taxes $29,929 $73,314 $124,141
Total Expenses $163,113 $231,790 $295,783
Net Profit $119,715 $293,257 $496,566
Net Profit / Sales 42% 56% 63%
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Gross Margin by Year
Net Profit (or Loss) by Year
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About the Profit and Loss Statement
Gross margins are based on the industry markup for Bed and Breakfasts. Profit will rise sharply over the first three
years as sales are spread over these relatively stable expenses.
Balance Sheet
Balance Sheet
As of Period's End FY2015 FY2016 FY2017
Cash $151,432 $436,811 $923,601
Accounts Receivable $2,357 $4,376 $6,603
Inventory $0 $0 $0
Total Current Assets $153,789 $441,187 $930,204
Long-Term Assets $60,728 $60,728 $60,728
Accumulated Depreciation ($9,472) ($21,618) ($33,764)
Total Long-Term Assets $51,256 $39,110 $26,964
Total Assets $205,045 $480,297 $957,168
Accounts Payable $475 $475 $475
Sales Taxes Payable $0 $0 $0
Short-Term Debt $0 $0 $0
Total Current Liabilities $475 $475 $475
Long-Term Debt $84,855 $66,850 $47,155
Total Liabilities $85,330 $67,325 $47,630
Paid-In Capital $0 $0 $0
Retained Earnings $0 $119,715 $412,972
Earnings $119,715 $293,257 $496,566
Total Owner's Equity $119,715 $412,972 $909,538
Total Liabilities & Equity $205,045 $480,297 $957,168
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About the Balance Sheet
As the balance sheet shows, we do not expect any real trouble meeting our debt obligations. As long as we can
achieve our specific objectives, we should not need to take on additional debt beyond the original $100,000 loan.
Cash Flow Statement
Cash Flow Statement
FY2015 FY2016 FY2017
Operations
Net Profit $119,715 $293,257 $496,566
Change in Accounts Receivable ($2,357) ($2,019) ($2,227)
Change in Inventory $0 $0 $0
Change in Accounts Payable $475 $0 $0
Change in Sales Taxes Payable $0 $0 $0
Net Cash Flow from Operations $127,305 $303,384 $506,485
Investing & Financing
Assets Purchased or Sold ($60,728) $0 $0
Investments Received $0 $0 $0
Change in Short-Term Debt $0 $0 $0
Change in Long-Term Debt $84,855 ($18,005) ($19,695)
Net Cash Flow from Investing &
Financing
$24,127 ($18,005) ($19,695)
Cash at Beginning of Period $0 $151,432 $436,811
Net Change in Cash $151,432 $285,379 $486,790
Cash at End of Period $151,432 $436,811 $923,601
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Cash Flow by Month
Cash Flow by Year
About the Cash Flow Statement
As you can see, a significant amount of cash is required to fund the first year of operations. The early months show a
higher amount of cash going out than coming in while we slowly build up the business.
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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or
ideas with third parties without the express written consent of the plan author.
Appendix
Revenue Forecast
Revenue Forecast Table (With Monthly Detail)
FY2015 Apr '14 May '14 Jun '14 Jul '14 Aug '14 Sep '14 Oct '14 Nov '14 Dec '14 Jan '15 Feb '15 Mar '15
Revenue
Lady Ann
Room
$3,497 $3,497 $3,497 $3,497 $3,497 $3,497 $3,497 $3,497 $3,497 $3,497 $3,497 $3,497
La Sal Room $4,410 $4,410 $4,410 $4,410 $4,410 $4,410 $4,410 $4,410 $4,410 $4,410 $4,410 $4,410
James
Edward Room
$5,018 $5,018 $5,018 $5,018 $5,018 $5,018 $5,018 $5,018 $5,018 $5,018 $5,018 $5,018
Room 4 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322
Room 5 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322 $5,322
Total
Revenue
$23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569
Direct Cost
Lady Ann
Room
$250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
La Sal Room $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
James
Edward Room
$250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Room 4 $380 $380 $380 $381 $381 $381 $381 $381 $381 $381 $381 $381
Room 5 $380 $380 $380 $381 $381 $381 $381 $381 $381 $381 $381 $381
Total Direct
Cost
$1,510 $1,510 $1,510 $1,512 $1,512 $1,512 $1,512 $1,512 $1,512 $1,512 $1,512 $1,512
Gross Margin $22,059 $22,059 $22,059 $22,057 $22,057 $22,057 $22,057 $22,057 $22,057 $22,057 $22,057 $22,057
Gross
Margin %
94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94%
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FY2015 FY2016 FY2017
Revenue
Lady Ann Room $41,964 $82,964 $120,964
La Sal Room $52,920 $100,999 $150,923
Room 4 $63,864 $120,634 $180,123
Room 5 $63,864 $120,234 $180,123
Total Revenue $282,828 $525,047 $792,349
Direct Cost
Lady Ann Room $3,000 $3,000 $3,000
La Sal Room $3,000 $3,000 $3,000
Room 4 $4,569 $4,569 $4,569
Room 5 $4,569 $4,569 $4,569
Total Direct Cost $18,138 $18,138 $18,138
Gross Margin $264,690 $506,909 $774,211
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Personnel Plan
Personnel Table (With Monthly Detail)
Melanie
Graham
$0 $0 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459
Derrek Graham $0 $0 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459 $2,459
Chef 1 $0 $666 $666 $666 $667 $667 $667 $667 $667 $667 $667 $667
Total $0 $666 $5,584 $5,584 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585
FY2015 FY2016 FY2017
Melanie Graham $24,590 $35,412 $42,492
Derrek Graham $24,590 $35,412 $42,492
Chef 1 $7,334 $8,000 $8,000
Total $56,514 $78,824 $92,984
27
Budget
Budget Table (With Monthly Detail)
Operating
Expenses
Salary $0 $666 $5,584 $5,584 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585
Employee
Related
Expenses
$0 $0 $246 $246 $246 $246 $246 $246 $246 $246 $246 $246
Marketing &
Promotions
$767 $767 $767 $767 $767 $767 $767 $767 $767 $767 $767 $767
Utilities $1,045 $1,045 $1,045 $1,045 $1,045 $1,045 $1,046 $1,046 $1,046 $1,046 $1,046 $1,046
Office
Supplies
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Soshu House
Keeping
$353 $353 $353 $353 $353 $353 $353 $353 $354 $354 $354 $354
Reservation
Nexus
$60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
Greenwich $83 $83 $83 $83 $83 $83 $83 $83 $84 $84 $84 $84
John AC $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Agritech $108 $108 $108 $108 $108 $108 $108 $108 $109 $109 $109 $109
Linens $66 $66 $66 $66 $67 $67 $67 $67 $67 $67 $67 $67
Turkish Towel $58 $58 $58 $58 $58 $58 $58 $58 $58 $59 $59 $59
Total
Operating
Expenses
$3,240 $3,906 $9,070 $9,070 $9,072 $9,072 $9,073 $9,073 $9,076 $9,077 $9,077 $9,077
Major
Purchases
Simmons
Moving Comp
$30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Concrete for
Footings
$0 $0 $0 $4,120 $0 $0 $0 $0 $0 $0 $0 $0
28
Kevin Kelly
Footing
Contractor
$0 $0 $0 $0 $0 $0 $5,000 $0 $0 $0 $0 $0
Negative Air
Flow Machine
$0 $0 $0 $0 $450 $0 $0 $0 $0 $0 $0 $0
James
Consultant
$0 $450 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Building
Permit
$0 $1,300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
City of Shelby
Wire
Disconnect
and
Reconnect
$0 $0 $0 $0 $0 $3,500 $0 $0 $0 $0 $0 $0
Time Warner
Cable
$0 $0 $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0
John
McNamara
Asbestos
Consultant
$595 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Lowes Rebar,
trays,
fasteners
$0 $0 $0 $0 $0 $0 $513 $0 $0 $0 $0 $0
Kevin Kelly
Footing
Contractor
$0 $0 $0 $0 $0 $0 $0 $2,000 $0 $0 $0 $0
Spake $0 $0 $0 $0 $0 $0 $0 $4,000 $0 $0 $0 $0
Lowes $0 $0 $0 $0 $0 $0 $0 $0 $3,300 $0 $0 $0
Kevin Kelly
Footing
contractor for
Foundation
$0 $0 $0 $0 $0 $4,500 $0 $0 $0 $0 $0 $0
Total Major
Purchases
$30,595 $1,750 $0 $5,120 $450 $8,000 $5,513 $6,000 $3,300 $0 $0 $0
29
FY2015 FY2016 FY2017
Operating Expenses
Salary $56,514 $78,824 $92,984
Utilities $12,546 $12,546 $12,546
Insurance $4,800 $4,800 $4,800
Greenwich $1,000 $1,000 $1,000
John AC $3,600 $3,600 $3,600
Agritech $1,300 $1,300 $1,300
Linens $800 $800 $800
Major Purchases
Simmons Moving Comp $30,000 $0 $0
Concrete for Footings $4,120 $0 $0
Negative Air Flow Machine $450 $0 $0
James Consultant $450 $0 $0
Building Permit $1,300 $0 $0
City of Shelby Wire Disconnect and Reconnect $3,500 $0 $0
Time Warner Cable $1,000 $0 $0
John McNamara Asbestos Consultant $595 $0 $0
Lowes Rebar, trays, fasteners $513 $0 $0
Spake $4,000 $0 $0
Lowes $3,300 $0 $0
Kevin Kelly Footing contractor for Foundation $4,500 $0 $0
30
Total Major Purchases $60,728 $0 $0
Loans and Investments
Loans and Investments Table (With Monthly Detail)
Loan /
Investment
Loan at 9%
interest for 60
mos.
$100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total
Amount
Received
$100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
FY2015 FY2016 FY2017
Loan / Investment
Loan at 9% interest for 60 mos.
$100,000 $0 $0
Total Amount Received $100,000 $0 $0
31
Profit and Loss Statement (With Monthly Detail)
Revenue $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569 $23,569
Direct Cost $1,510 $1,510 $1,510 $1,512 $1,512 $1,512 $1,512 $1,512 $1,512 $1,512 $1,512 $1,512
Gross Margin $22,059 $22,059 $22,059 $22,057 $22,057 $22,057 $22,057 $22,057 $22,057 $22,057 $22,057 $22,057
Gross
Margin %
94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94%
Operating
Expenses
Salary $0 $666 $5,584 $5,584 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585 $5,585
Employee
Related
Expenses
$0 $0 $246 $246 $246 $246 $246 $246 $246 $246 $246 $246
Marketing &
Promotions
$767 $767 $767 $767 $767 $767 $767 $767 $767 $767 $767 $767
Utilities $1,045 $1,045 $1,045 $1,045 $1,045 $1,045 $1,046 $1,046 $1,046 $1,046 $1,046 $1,046
Office
Supplies
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Soshu House
Keeping
$353 $353 $353 $353 $353 $353 $353 $353 $354 $354 $354 $354
Reservation
Nexus
$60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
Greenwich $83 $83 $83 $83 $83 $83 $83 $83 $84 $84 $84 $84
John AC $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Agritech $108 $108 $108 $108 $108 $108 $108 $108 $109 $109 $109 $109
Linens $66 $66 $66 $66 $67 $67 $67 $67 $67 $67 $67 $67
Turkish Towel $58 $58 $58 $58 $58 $58 $58 $58 $58 $59 $59 $59
32
Total
Operating
Expenses
$3,240 $3,906 $9,070 $9,070 $9,072 $9,072 $9,073 $9,073 $9,076 $9,077 $9,077 $9,077
Operating
Income
$18,819 $18,153 $12,989 $12,987 $12,985 $12,985 $12,984 $12,984 $12,981 $12,980 $12,980 $12,980
Interest Incurred $0 $750 $740 $730 $720 $710 $700 $689 $679 $668 $658 $647
Depreciation
and
Amortization
$509 $538 $538 $622 $629 $763 $857 $956 $1,012 $1,014 $1,017 $1,017
Income Taxes $3,662 $3,373 $2,342 $2,327 $2,327 $2,302 $2,286 $2,268 $2,258 $2,260 $2,261 $2,263
Total
Expenses
$8,921 $10,077 $14,200 $14,261 $14,260 $14,359 $14,428 $14,498 $14,537 $14,531 $14,525 $14,516
Net Profit $14,648 $13,492 $9,369 $9,308 $9,309 $9,210 $9,141 $9,071 $9,032 $9,038 $9,044 $9,053
Net Profit /
Sales
62% 57% 40% 39% 39% 39% 39% 38% 38% 38% 38% 38%
33
FY2015 FY2016 FY2017
Revenue $282,828 $525,047 $792,349
Direct Cost $18,138 $18,138 $18,138
Gross Margin $264,690 $506,909 $774,211
Operating Expenses
Salary $56,514 $78,824 $92,984
Utilities $12,546 $12,546 $12,546
Insurance $4,800 $4,800 $4,800
Greenwich $1,000 $1,000 $1,000
John AC $3,600 $3,600 $3,600
Agritech $1,300 $1,300 $1,300
Linens $800 $800 $800
Operating Income $166,807 $385,624 $638,070
Interest Incurred $7,691 $6,907 $5,217
Income Taxes $29,929 $73,314 $124,141
Total Expenses $163,113 $231,790 $295,783
Net Profit $119,715 $293,257 $496,566
Net Profit / Sales 42% 56% 63%
34
Balance Sheet
Balance Sheet (With Monthly Detail)
As of
Period's End
Apr '14 May '14 Jun '14 Jul '14 Aug '14 Sep '14 Oct '14 Nov '14 Dec '14 Jan '15 Feb '15 Mar '15
Cash $82,680 $93,634 $102,205 $105,669 $113,801 $114,408 $117,518 $120,158 $125,505 $134,149 $142,792 $151,432
Accounts
Receivable
$2,357 $2,357 $2,357 $2,357 $2,357 $2,357 $2,357 $2,357 $2,357 $2,357 $2,357 $2,357
Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total
Current
Assets
$85,037 $95,991 $104,562 $108,026 $116,158 $116,765 $119,875 $122,515 $127,862 $136,506 $145,149 $153,789
Long-Term
Assets
$30,595 $32,345 $32,345 $37,465 $37,915 $45,915 $51,428 $57,428 $60,728 $60,728 $60,728 $60,728
Accumulated
Depreciation
($509) ($1,047) ($1,585) ($2,207) ($2,836) ($3,599) ($4,456) ($5,412) ($6,424) ($7,438) ($8,455) ($9,472)
Total Long-
Term Assets
$30,086 $31,298 $30,760 $35,258 $35,079 $42,316 $46,972 $52,016 $54,304 $53,290 $52,273 $51,256
Total Assets $115,123 $127,289 $135,322 $143,284 $151,237 $159,081 $166,847 $174,531 $182,166 $189,796 $197,422 $205,045
Accounts
Payable
$475 $475 $475 $475 $475 $475 $476 $476 $476 $476 $476 $475
Sales Taxes
Payable
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Short-Term
Debt
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total
Current
Liabilities
$475 $475 $475 $475 $475 $475 $476 $476 $476 $476 $476 $475
Long-Term Debt $100,000 $98,674 $97,338 $95,992 $94,636 $93,270 $91,894 $90,507 $89,110 $87,702 $86,284 $84,855
Total
Liabilities
$100,475 $99,149 $97,813 $96,467 $95,111 $93,745 $92,370 $90,983 $89,586 $88,178 $86,760 $85,330
Paid-In Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
35
Retained
Earnings
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Earnings $14,648 $28,140 $37,509 $46,817 $56,126 $65,336 $74,477 $83,548 $92,580 $101,618 $110,662 $119,715
Total
Owner's
Equity
$14,648 $28,140 $37,509 $46,817 $56,126 $65,336 $74,477 $83,548 $92,580 $101,618 $110,662 $119,715
Total
Liabilities &
Equity
$115,123 $127,289 $135,322 $143,284 $151,237 $159,081 $166,847 $174,531 $182,166 $189,796 $197,422 $205,045
36
As of Period's End FY2015 FY2016 FY2017
Cash $151,432 $436,811 $923,601
Accounts Receivable $2,357 $4,376 $6,603
Inventory $0 $0 $0
Total Current Assets $153,789 $441,187 $930,204
Long-Term Assets $60,728 $60,728 $60,728
Accumulated Depreciation ($9,472) ($21,618) ($33,764)
Total Long-Term Assets $51,256 $39,110 $26,964
Total Assets $205,045 $480,297 $957,168
Accounts Payable $475 $475 $475
Sales Taxes Payable $0 $0 $0
Short-Term Debt $0 $0 $0
Total Current Liabilities $475 $475 $475
Long-Term Debt $84,855 $66,850 $47,155
Total Liabilities $85,330 $67,325 $47,630
Paid-In Capital $0 $0 $0
Retained Earnings $0 $119,715 $412,972
Earnings $119,715 $293,257 $496,566
Total Owner's Equity $119,715 $412,972 $909,538
Total Liabilities & Equity $205,045 $480,297 $957,168
37
Cash Flow Statement
Cash Flow Statement (With Monthly Detail)
Operations
Net Profit $14,648 $13,492 $9,369 $9,308 $9,309 $9,210 $9,141 $9,071 $9,032 $9,038 $9,044 $9,053
Depreciation
and
Amortization
$509 $538 $538 $622 $629 $763 $857 $956 $1,012 $1,014 $1,017 $1,017
Change in
Accounts
Receivable
($2,357) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in
Inventory
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in
Accounts
Payable
$475 $0 $0 $0 $0 $0 $1 $0 $0 $0 $0 ($1)
Change in
Sales Taxes
Payable
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Cash
Flow from
Operations
$13,275 $14,030 $9,907 $9,930 $9,938 $9,973 $9,999 $10,027 $10,044 $10,052 $10,061 $10,069
Investing &
Financing
Assets
Purchased or
Sold
($30,595) ($1,750) $0 ($5,120) ($450) ($8,000) ($5,513) ($6,000) ($3,300) $0 $0 $0
Investments
Received
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in
Short-Term
Debt
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in
Long-Term
Debt
$100,000 ($1,326) ($1,336) ($1,346) ($1,356) ($1,366) ($1,376) ($1,387) ($1,397) ($1,408) ($1,418) ($1,429)
38
Net Cash
Flow from
Investing &
Financing
$69,405 ($3,076) ($1,336) ($6,466) ($1,806) ($9,366) ($6,889) ($7,387) ($4,697) ($1,408) ($1,418) ($1,429)
Cash at
Beginning of
Period
$0 $82,680 $93,634 $102,205 $105,669 $113,801 $114,408 $117,518 $120,158 $125,505 $134,149 $142,792
Net Change in
Cash
$82,680 $10,954 $8,571 $3,464 $8,132 $607 $3,110 $2,640 $5,347 $8,644 $8,643 $8,640
Cash at End
of Period
$82,680 $93,634 $102,205 $105,669 $113,801 $114,408 $117,518 $120,158 $125,505 $134,149 $142,792 $151,432
39
FY2015 FY2016 FY2017
Operations
Net Profit $119,715 $293,257 $496,566
Change in Accounts Receivable ($2,357) ($2,019) ($2,227)
Change in Inventory $0 $0 $0
Change in Accounts Payable $475 $0 $0
Change in Sales Taxes Payable $0 $0 $0
Net Cash Flow from Operations $127,305 $303,384 $506,485
Investing & Financing
Assets Purchased or Sold ($60,728) $0 $0
Investments Received $0 $0 $0
Change in Short-Term Debt $0 $0 $0
Change in Long-Term Debt $84,855 ($18,005) ($19,695)
Net Cash Flow from Investing & Financing $24,127 ($18,005) ($19,695)
Cash at Beginning of Period $0 $151,432 $436,811
Net Change in Cash $151,432 $285,379 $486,790
Cash at End of Period $151,432 $436,811 $923,601

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