BUSINESS PLAN

TUAREG CLUB


F&B
Prof. Sergio Alonso






QUIONERO MIRAS, MARA
POLO VELASCO, JESS
To establish our club, first of all we will need to acquire the following:

NECESSARY PRICES
Local. Rent/month 12.000
Audio and light system 250.000
Furniture (carpets, tables, chairs) 5.000
Kitchen 2.000
Decoration (included neons outside) 6.000
Bathrooms 1.500
Bar equipment (glasses, fridges...) 10.000
*All prices are in Litas 286.500

The area of our local is 300 m2 but only 210 m2 are available to account our
costumers (the rest 30% is used for bar, bathrooms etc..)
And as we can see the most expensive thing is the audio system.

So we are going to hire:

STAFF SALARIES
2 waiters 2.000
2 bartenders 2.000
1 dishwasher/cook 700
2 Security man 5.000
*All prices are in Litas 9.700

We think it is enough to have two waiters and two bar tenders, then we will hire
someone who clean and take care about our little kitchen, and we will try to hire our
personal security (not from an agency).
Our club is going to open from Thursdays to Saturdays, lest see, 12 days per month,
so 1.000 litas for our waiters its quite enough, we hire personal with experience for
not to waste time and money with training.

For the day of opening we also need to have the following things:

DAY OF OPENING COSTS
Par stock (drinks..) 15.000
electricity, water, gas 4.000
License 1.500
Advertising 20.000
*All prices are in Litas 40.500

For par stock we calculate 15.000 litas per two weeks for 120 people and those costs
will be increasing when we will have more people in the future.
At the beginning advertising will be expensive but later every month will be cheaper
because our club becomes famous, we have made an average for every month.

If we want to open our club, we will need all this amount of money for the day of
opening in total: 336.700 litas. Thats what we have to ask to the bank for the loan.
People will have to pay for entrance only on Fridays and Saturdays (666% of
days) and if we need to count our vips that dont pay anything, so we calculate 50%
of people in our club will must to pay a ticket if they want to enter.
The price of entrance is 40 litas. And we calculate every person is going to spend
45 litas (average). Here the estimated sales:

*All prices are in Litas
Opening 6months 1st year 2nd year vbad vgood
Approx daily number of
clients
120 170 200 250 280 320
Daily bar sales 5.400 7.650 9.000 1.1250 12.600 14.400
Daily tickets sales (50%) 2.400 3.400 4.000 5.000 5.600 6.400
Monthly bar sales 12 days 64.800 91.800 108.000 135.000 151.200 172.800
Monthly ticket sales 12 days 28.800 40.800 48.000 60.000 67.200 76.800
Yearly bar sales 777.600 1.101.600 1.296.000 1.620.000 1.814.400 2.073.600
Yearly tickets sales 345.600 489.600 576.000 720.000 806.400 921.600
Total monthly 93.600 132.600 156.000 195.000 218.400 249.600
Total yearly 561.600* 795.600* 1.872.000 2.340.000 2.620.800 2.995.200
*we calculate for opening and 6months just for six months, it doesnt any sense to
calculate one whole year.

We estimate how many people are going to be in our club for next years (forecast).
Although the day of opening its a special day, maybe that day could be more people
but we calculate the average for the firsts six months. After the second year we can
see the bad perspectives and the perfect one.


Now we analyze the costs, first the variable costs per month (12 days):

*All prices are in Litas Opening 6months
1st year 2nd year
vbad vgood
Running costs bar/month 30.000 42.500 50.000 62.500 70.000 80.000
Profit bar after running costs/month 34.800 49.300 58.000 72.500 81.200 92.800
Profit tickets/month 28.800 40.800 48.000 60.000 67.200 76.800
Total sales and ticket /month 63.600 90.100 106.000 132.500 148.400 169.600
Taxes 21% 13.356 18.921 22.260 27.825 31.164 35.616
Total Net profit 50.244 71.179 83.740 104.675 117.236 133.984

We dont have any running costs for tickets because we only need some papers with
our club sign, thats for free.
And the fixed costs, including salaries per month (12 days):

EXPENSES COSTS
Salary waitress x2 2.000
Salary bar tenders x2 2.000
Salary dishwasher 700
Salary security x2 5.000
Total monthly expenses in salaries 9.700
*All prices are in Litas
Advertising 20.000
Local rent 12.000
Monthly (12 days) 41.700
7% extra expenses 2.919
Total Monthly expenses 44.619

We need to account that 7% for extra expenses (if you need to invite some Vips...)


And finally we can analyze the results:


*All prices are in Litas Opening 6months 1st year 2nd year vbad vgood
Monthly benefits 50.244 71.179 83.740 104.675 117.236 133.984
Monthly expenses 44.619 44.619 44.619 44.619 44.619 44.619
Profit before taxes 5.625 26.560 39.121 60.056 72.617 89.365
Taxes 21% 1.181 5.578 8.215 12.612 15.250 18.767
NET profit/month 4.444 20.982 30.906 47.444 57.367 70.598
TOTAL YEARLY
26.663* 125.894* 370.867 569.331 688.409 847.180
*we calculate for opening and 6months just for six months, it doesnt any sense to
calculate one whole year.

The final step is to know when we are going to pay all our loan and start to earn real
money. We invested 336.700 litas the first day.

336.700 (loan) 26.663 (opening) = 310.038 125.894 (6months) =
= 184.143 6 x 30.906 (monthly 1styear) = -1.293

That is, from one year and a half, we would get back what we invest the first day,
we could pay the total amount of our loan if we want to and thats when we would
start to earn real money.