Sumptuous Cuisine Catering

Executive Summary
Company Summary
SumptuousCuisineCateringisalocalcateringcompanyservingbothbusinessand privateclientsinDoeuvrevilleandthesurroundingtownswithinatenmileradius.It hasoperatedacateringkitchenandspecializedinfullservicecateringandevent planningforupscaleeventsintheregion. SumptuousCuisineCateringwasfoundedin2008asanLLCbypartnersRudy Electrum(CEO)andToscaCabrini(COO).Builtfromthegroundupbythesepartners, Rudyowns49%ofthebusinessandTosca51%.Electrumheadssalesandstrategyfor thebusiness,incloseconsultationwithCabrini.Cabrinimanagestheoperationsofthe kitchen,humanresources(hiringandtraining)andfinances. Overthepastthreeyears,SumptuousCuisineCateringhasmadesignificantadvances, developingitscorebusinesssignificantlyaftersomewhatslowgrowthforitsfirsttwo yearsofoperation.Grossandoperatingmarginshavesteadilyimprovedandthe businesshascontinuedtoinvestinkitchenanddeliveryequipment,aswellassomeof itsowneventfurniture.Referralsandpartnershipshaveaccountedfor75%ofgrowthin thepastthreeyears. Expansion SumptuousCuisineCateringintendstoopenTheSumptuousBallroom,aneventvenue inDoeuvreville.Theballroomwillbepurchasedfromthepreviousowner,thecityof Doeuvreville,whichusedthespaceasacommunitycenteruntilitwasabandonedone yearago.Afterrenovations,theballroomwillcreatesynergywithSumptuousCuisine Cateringsbusinessbyofferingalocationtobringincurrentandfutureclientswhowill alsoutilizeboththecateringandeventplanningservicesofSumptuousCuisine Catering. SumptuousCuisineCateringwill: Targethighnetworthprivateclientsandcorporateclients
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TakeondedicatedfacilitymanagementandsalespeopleforTheSumptuous Ballroom Useacombinationofexistingandnewmarketingtacticstopromotethespace

Products and Services Summary

SumptuousCuisineCateringcurrentlyoffersthefollowingproductsandservices: Eventmanagement Coatcheck,doorcheck,andrestroomattendants Avarietyofcuisineforbreakfasts,lunches,dinners,andappetizers Nonalcoholic,wine,beer,andliquorbeverageservice Waitservice FutureplansincludethefollowingadditionswiththeopeningofTheSumptuous Ballroom: Ballroomrentalsforhalfdayorfulldaytimespans Spacerentalwithaperheadfullservicecateringfeeorasafeeseparatefrom cateringandbeverage Facilitymanagementservice

Market Summary
SumptuousCuisineCateringoffersarangeofcuisineoptions,highquality,andadded servicesbasedontheonestopshopmodel.Bothourprivateandcorporatemarkets haveshownthattheyvaluethesequalitiesandwillpayapricepremiumforthem.The businessdoesnotcompeteonpriceandoffersservicesatpriceshigherthanaveragefor caterersingeneralandontheuppersideofoptionsfortheDoeuvrevillearea.

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TheSumptuousBallroomwillbebilledasTHEhighendeventlocationforthe Doeuvrevillearea,buildingontheupscaleeventmarketwehaveestablishedwithour cateringservices.

Financial Summary
Financial Summary Description
SumptuousCuisineCateringwillfunditsexpansionlargelythoughitsowncash reservesandaloanforthepurchaseofTheSumptuousBallroom. Thefundsneededinclude: $2millionforpurchaseofTheSumptuousBallroom $100,000forimprovements $50,000forequipmentfortheballroom $82,500formarketingdevotedtoTheSumptuousBallroomacquisition Sourcesforthefundsinclude: $1.6millionmortgage $270,000inconvertibledebtfrominvestorsforanequitystakeof10%in SumptuousCuisineCatering(dilutingthecurrentownershipequally)and10% interestpaidoverthreeyears.Likelyinvestorsincludefamilyandangel investorsinterestedinlowerriskthaninastartupfirm,alongwithsome guaranteedreturns $300,000incashreservesofSumptuousCuisineCatering Cashflowsurplusesinthelaterhalfof2010tomakeuptheremainder Thebusinesswillreturntostrongerprofitsandgrossmarginsaftertheacquisition.

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Sales by Year

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Company
Company Overview
SumptuousCuisineCateringwillfunditsexpansionlargelythoughitsowncash reservesandaloanforthepurchaseofTheSumptuousBallroom. Thefundsneededinclude: $2millionforpurchaseofTheSumptuousBallroom $100,000forimprovements $50,000forequipmentfortheballroom $82,500formarketingdevotedtoTheSumptuousBallroomacquisition Sourcesforthefundsinclude: $1.6millionmortgage $270,000inconvertibledebtfrominvestorsforanequitystakeof10%in SumptuousCuisineCatering(dilutingthecurrentownershipequally)and10% interestpaidoverthreeyears.Likelyinvestorsincludefamilyandangel investorsinterestedinlowerriskthaninastartupfirm,alongwithsome guaranteedreturns $300,000incashreservesofSumptuousCuisineCatering Cashflowsurplusesinthelaterhalfof2010tomakeuptheremainder Thebusinesswillreturntostrongerprofitsandgrossmarginsaftertheacquisition.

Company History
SumptuousCuisineCateringwasfoundedin2008.Overthepastthreeyears, SumptuousCuisineCateringhasmadesignificantadvances,developingitscore businesssignificantlyaftersomewhatslowgrowthforitsfirsttwoyearsofoperation.

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Grossandoperatingmarginshavesteadilyimprovedandthebusinesshascontinuedto investinkitchenanddeliveryequipment,aswellassomeofitsowneventfurniture. Saleshavegrownduetoincreasingpartnershipswithvenues,likeCorporateHall,and eventplanners,likeJackieLymanAssociatesandYourPerfectEventLLCwhichrefer clientsandsubcontractworktoSumptuousCuisineCatering.Thesereferralsand partnershipshaveaccountedfor75%ofgrowthinthepastthreeyears.CorporateHall aloneaccountedfor15%ofsalesin2009.Theremaininggrowthhasbeenduetonew clientacquisitionthroughmarketingandreferralstoclientsdirectly. Inventoryhashistoricallyincludedrawmaterialsforfoodaswellasbeveragesand liquor.Thesehavebeenaccountedforasinventoryandattributedtocostofsalesfor eachjob.Costofsaleshasalsoincludedhourlywagestocaterwaiters,event managersandothereventstaff,fuelfordelivery,andsuppliesfortheevent(paper napkins,etc).Costofsalesalsoincludesvendorsubcontractorswhotheclientpays throughSumptuousCuisineCatering(generallyrentalequipment,florists,designers andmusicians/DJs).SumptuousCuisineCateringletsclientscontractdirectlywhen theypreferandrecommendstheycontractdirectlywithaudiovisualandlighting providers. Operatingexpenseshavedroppedfrom45%ofsalesto40%ofsalesovertheseprevious threeyears,whiletheyhavegrownby$150,000inabsolutevalue.

Management Team
SumptuousCuisineCateringisdirectedbyCEORudyElectrum.Secondincommand isCOOToscaCabrini.Electrumheadssalesandstrategyforthebusiness,inclose consultationwithCabrini.Cabrinimanagestheoperationsofthekitchen,human resources(hiringandtraining)andfinances.Marketingisdirectedandexecutedby AnteroMacDougal.MacDougalistheliaisontooutsidegraphicandWebdesignersand othermarketingservicefirmsusedbySumptuousCuisineCatering.MacDougalreports totheCEO. TheFacilityManagerwillbehiredtoactasamanagerofthehall.Thiswillinclude providinginformationtovendorssettingupinthespace,providingaccesstotheclients forsetup,lightmaintenanceandrepairs,contractingvendorsforheavierrepairwork,
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andsettingupcleaningsofthespace.TheFacilityManagerwillhaveasmallofficeat TheSumptuousBallroomandwillworkduringthedaytime.Eventmanagersfromthe cateringstaffwillbepresentduringtheevents.TheFacilityManagerwillbetrainedby andreporttotheCOO.

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Products and Services

Products and Services
SumptuousCuisineCateringcurrentlyoffersthefollowingproductsandservices: Eventmanagement Coatcheck,doorcheck,andrestroomattendants Avarietyofcuisineforbreakfasts,lunches,dinners,andappetizers Nonalcoholic,wine,beer,andliquorbeverageservice Waitservice Throughsubcontractors,SumptuousCuisineCateringoffers: Floraldesign Spacedesignanddecor MusiciansandDJs Eventequipmentandfurniturerentals Cakes Throughreferrals,SumptuousCuisineCateringoffers: Lighting Audiovisualrentalsandsupport Eventsecurity Valetservice FutureplansincludethefollowingadditionswiththeopeningofTheSumptuous Ballroom: Ballroomrentalsforhalfdayorfulldaytimespans

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Spacerentalwithaperheadfullservicecateringfeeorasafeeseparatefrom cateringandbeverage Facilitymanagementservice

Competitors
KeycompetitorsofSumptuousCuisineCateringinclude: FancyFetes:AnupscalecatererwhichistheinhousecatererattheKingsRoom, aDoeuvrevilleareaprivateeventspace(weddings,barmitzvahs,etc.) FoodForThought:AnAmericancuisinecatererwhichprovidessimpledropoff serviceaswellasfullservicecatering Pandoras:AnupscaleItalianrestaurantwhichcatersavarietyofevents primarilyforprivateclients SumptuousCuisineCateringoffersarangeofcuisineoptions,highquality,andadded servicesbasedontheonestopshopmodel.Thebusinessdoesnotcompeteonpriceand offersservicesatpriceshigherthanaverageforcaterersingeneralandontheupper sideofoptionsfortheDoeuvrevillearea.

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Target Market
Market Overview
Thecateringindustryservesprivate,corporate,andnonprofiteventswithfood,drinks, eventmanagementandotherservices.Eventsaregenerallyheldbyclientsinorderto celebrate,communicate,orboth. Celebration:Partiesandbanquetsaspartofkeyeventsinlife(birthdays, weddings,barandbatmitzvahs,engagements,bridalandbabyshowers, retirementparties,etc.)orforabusiness(holidayorendofyearparties, retirements,honoreegalas,etc.) Communication:Eventstocommunicateamessageforthebenefitofattendees orthepress(productlaunches,pressevents,tradeshows,conferences, presentations,lectures,fundraisers)ortostimulatediscussion(corporate meetings,summits,etc.).

Market Needs
Doeuvrevilleareacustomerschoosecaterersfortheireventsbasedonthefollowing characteristics: CuisineOptions:Privateclientswilloftenseekoutcatererswhocanoffer,orb specializein,specificcuisine.Businesseslookingtouseacaterermultipletimes aremorelikelytoseekacatererwhocanservemanydifferentcuisinesotheycan varytheoptionsfromeventtoevent(orevenwithinagivenevent)tobetter pleasetheirclientsorguests. Quality:Qualityisdeterminedthroughreviewsandreferencesaswellas throughtastingsofthefood.Basicqualityisamust,buthighqualityissought outforonceinalifetimeprivateeventsandthefanciestofbusinessfunctions.

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Key Customers
SumptuousCuisineCateringhas,traditionally,targetedtheprivateandcorporate marketsprimarily.TheywillcontinuethisfocuswiththelaunchofTheSumptuous Ballroom.Privateclients,althoughrequiringadditionallaborandhandholding,canbe chargedsomewhathigherratesthancorporateclients.Furthermore,theyhelpto recessionproofthebusinessbyprovidingsteadierrevenuestreamsineconomic downturns. Corporatebusinesscanleadtorepeatengagementswithclientswhohaveannualor evenquarterlyeventsandaremorevaluableasclientstoacquirethanprivateclients, eventhoughthemarginpercentagesareloweroneachevent. Nonprofitclientsgenerallyseeklowercostprovidersandvenuesand,whiletheydo seekoutSumptuousCuisineCateringwithoutmuchmarketingtothatgroup,the companysbidsaregenerallydoesnotaccepted.SumptuousCuisineCateringwill continuetochoosespecificnonprofitstosponsoreventsfortocreatevisibilityfor strategicpurposesorbasedonthecharitableinterestsoftheowners,butwillnotmarket directlytononprofits. Thecorporatemarketisdefinedasbusinesseswhichholdatleastoneoffsiteevent eachyear.BusinessesoftenhaveA/Vandpublicrelationsneedsinconcertwiththeir eventswhichmayserveamarketingfunctionforthebusiness.Whetherentertainingthe press,clients,orboardmembers,businessesrequireprofessionalexecution,delicious foodanddrinks,andalignmentbetweentheeventmanagers/caterersandtheir businesssobjectivesfortheevent. Theprivatemarketincludeshouseholdswithacombinedhouseholdincomeofover $80,000peryear(thosemostlikelytothrowanupscaleeventinarentedvenue).This groupputsagreatdealofpressureoncaterersandrequiresaddedattention,aslavish eventsmaybeuncommonforthem.Theyrequirehandsonworkandplanningaswell asexpertadviceandreferralsthroughouttheprocess. Thenonprofitmarketisdefinedasnonprofitorganizationswhichholdatleastoneoff siteeventeachyear.Verypriceconscious,thenonprofitmarketlooksforinkind donationsanddiscountedserviceswheneverpossible.Somenonprofitsrealizethe

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benefitofpayingforgreateventswhichlead,inkind,toimprovedperceptionofthe organizationanddonations,whileotherswilltakethelowestpriceavailableatthe minimalqualitylevelacceptable.

Market Trends
Thereisamovementtowardshorizontalintegrationinthegreatereventindustry,with somefullserviceeventprovidersgrowingtoprovideentertainment,audiovisualand technology,catering,rentals,decor,venuesandmore.Businessesthatprovidethese additionalservicesmaytakeonassetsthatarenotasfullyutilizedasaspecialists wouldbe,buttheycanearngreatermarginsonthesalestheymake.Withitsopeningof TheSumptuousBallroom,SumptuousCuisineCateringwillbecomepartofthis integrationmovement.

Market Growth
TheU.S.marketforcatererswasestimatedat$6.9billionin2008byIBISWorld.The marketispronetoeconomiccycles,asevents,especiallycorporateevents,areoneofthe firstexpensescutduringadownturn.Celebratoryeventsmaybescaledbackabit,but aregenerallynotcanceledduringadownturn(i.e.,spendingonweddings,bar mitzvahs,etc.,continues).Theindustrycontractedby1.5%in2008duetheeconomic downturnandasimilardeclineisapparentfor2009.In2010theindustryisexpectedto returntopositivegrowth.Theindustryisrelativelymature,as33,000catering companiesservetheU.S.,oronecompanyforevery9,000Americans.

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Strategy and Implementation

Marketing Plan
Overview
SumptuousCuisineCateringwillfocusitsmarketingfortheirnewballroomonthe corporateandprivateupscaleeventmarkets.

Positioning
SumptuousCuisineCateringofferstopclasseventexperienceswithflawlessexecution tobusinessandprivateclientsintheDoeuvrevillearea.WithSumptuousCuisine Cateringrunningyourevent,thefoodwillbedelicious,theservicewillbeexcellentand theguestswillbewowed.

Pricing
Atypicaleventisa$10,000foodandbeveragepackagewith$5,000insubcontracted services,$8,000instaffing,and$1,500ineventplanningfees.TypicaleventsatThe SumptuousBallroomwillalsoincuraballroomrentalof$2,500asabasefee. TheF&Bcostislow,at25%ofthecombinedoffsiteandTheSumptuousBallroomF& Brevenues.Ingredientsarepurchasedinbulkwheneverpossibleatwholesalerates.A highmarkupcanbeearnedonfoodandanevenhighermarkuponliquor,whichcan sometimescostaslittleas15%ofsales. Thecostofhourlyeventstaff(bartenders,waiters,coatcheck,doorcheck,restroom attendants,eventmanagers,etc.)isrecognizedontheP&Lstatementunderothercost ofsales.

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Promotion
SumptuousCuisineCateringwillfocusitsmarketingfortheirnewballroomonthe corporateandprivateupscaleeventmarkets.Thebusinesswillusethefollowingmedia andtacticstoreachthisaudience: AdvertiseinDoeuvrevilleMagazine,alocalluxuryfocusedmagazinewithhalf pagecoloradsshowingaphotoofthenewspace DevelopawebsiteforTheSumptuousBallroomwhichisseparatefrom,but linkedto,theSumptuousCuisineCateringsite Promotethewebsitethroughsearchengineoptimizationandsearchengine marketingaroundeventandrentalkeywordsforthelocalarea RevisetheSumptuousCuisineCateringbrochuretoincludethenewballroomin afeaturedlocation Emailcampaignofanebrochureannouncingthenewspacetoallpastand currentclients Createandsendpresskitwithinformationanddetailsonthenewspacetokey clientsandpress CreateafeaturedlistingonBizBash.com,awebsitedevotedtoeventresources andvenuesfocusedatthecorporatemarket Promoteintroductoryspringandsummerratestoencourageearlyrentals(the normalrateof$2,500willbediscountedto$2,000duringthisperiod) Promotethespaceatlocalsummerbusinessfair Sponsor4nonprofiteventsperyear,allchosenfortheexposuretheyreceiveto thepressandtohighnetworthindividuals

Sales Plan
Traditionally,thesalesstrategyofSumptuousCuisineCateringhasbeenspearheaded byRudyElectrumandtwostaffaccountmanagerswhoeachhandleaportfolioof clients.Rudyfocusesonnewbusinessdevelopmentandreliesontheaccountmanagers

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toservice,retainclients,anddeveloptheirbusinessbyencouragingthemtouse SumptuousCuisineCateringformoreevents. ThissalesstrategywillcontinuewiththeopeningofTheSumptuousBallroom.Rentals attheballroomwillbepromotedbyallstaffwhentheyworkwithclients.Anadditional salespersonwillfieldinquiriesmadedirectlyaboutTheSumptuousBallroomrentalsto handletheadditionalvolumeofworkrequiredtoincreasetheutilizationofthisspace. SalespeoplewillbeaddedforTheSumptuousBallroomoverthefirstthreeyearsofits operationsasbusinessgrows.Thesesalespeoplewillhavethesametrainingand knowledgeofallofSumptuousCuisineCateringsservices,butwillworkonlywith clientsinterestedineventsattheballroom.

Milestones
ThemilestoneslistedarethekeystepstolaunchingTheSumptuousBallroom: 1. 2. 3. 4. 5. 6. 7. 8. 9. RenovateSpace=$100,000(Cabrini) OpenVenue=($0)(Cabrini) CreateTheSumptuousBallroom=$10,000(MacDougal) Revise&printbrochure=$5,000(MacDougal) IntroductoryRates=$50,000(MacDougal) SummerBusinessFair=$5,000(MacDougal) EmailCampaign=$500(MacDougal) AdvertiseLocally=$10,000(MacDougal) PressKit&Campaign=$2,000(MacDougal)

RenovationofthespacewillbedirectedbyCEO,ToscaCabrini,withinsightfromall staff.Theworkwillbedirectedbyarenovationscontractorwhowillsubcontractwork toelectricians,plumbers,painters,floorspecialists,etc. TheotheractivitiescomeunderthemarketingumbrellaofAnteroMacDougal, SumptuousCuisineCateringsmarketingdirector.Thepreparationswillbemadewhile thevenueisbeingrenovated,althoughfinishedphotosofthenewspacewillnotbe availableuntilrenovationiscomplete.

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Introductoryrateswillreducetherateof100eventsby$500toencouragefirsttime rentalsoftheballroom.

Competitive Edge
SumptuousCuisineCateringwillcreateacompetitiveedgeinDoeuvrevilleby becomingatrueonestopshopforallinclusiveeventswiththepurchaseofThe SumptuousBallroom.Clientswillnothavetoworkwithmultiplevendors,butcan workdirectlywiththeirassignedSumptuousCuisineCateringaccountexecutiveforall oftheireventplanningandvendorcoordinationneeds. Currently,competitorsintheDoeuvrevilleareadonotofferthesamecombinationof upscalecatering,trackrecord,flexibilityofcuisine,andabeautifulvenuewhich SumptuousCuisineCateringwillbeabletooffer.

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Financial Plan
Sales Forecast
About the Sales Forecast
RenovationofTheSumptuousBallroomwilloccurinthefirstthreemonthsof2010, preparingforaMarch15openingofthespace. Offsitefoodandbeveragehastraditionallybeenthelargestrevenuestreamfor SumptuousCuisineCatering,asthisisthedriverbehindalloftheotherrevenue streams.Subcontractedservices,staffing,referralfees,andeventplanningareonly offeredwhenthereisacorefoodandbeveragepackagesoldforanevent.TheF&Bfor TheSumptuousBallroomeventshasbeenseparatedoutforseparatetracking,going forward,ashavevenuerentalsofTheSumptuousBallroom. Atypicaleventisa$10,000foodandbeveragepackagewith$5,000insubcontracted services,$8,000instaffing,and$1,500ineventplanningfees.TypicaleventsatThe SumptuousBallroomwillalsoincuraballroomrentalof$2,500asabasefee. Thefoodandbeveragecostislow,at25%ofthecombinedoffsiteandTheSumptuous Ballroomfoodandbeveragerevenues.Ingredientsarepurchasedinbulkwhenever possibleatwholesalerates.Ahighmarkupcanbeearnedonfoodandanevenhigher markuponliquor,whichcansometimescostaslittleas15%ofsales. Hourlyeventstaffincludebartenders,waiters,coatcheck,doorcheck,restroom attendants,eventmanagers,etc. Subcontractedservicesaretheothermajorcostofsalescategory,andincurahighercost ofsales,at80%ofsubcontractedservicessold,thanothercategories.Theseservices(like floraldesign,rentalfurniture,etc.)arediscountedbythevendorsbecauseoftheir relationshipwithSumptuousCuisineCatering.TheeffectisthatSumptuousCuisine Cateringbillstheseservicesontoclientsatthevendorsadvertisedratesandtakestheir marginof20%onthoserevenues.

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TheSumptuousBallroomrevenueswillscaleupsharplyinthefirstyearasthespaceis betterutilized,butthisgrowthwillleveloffinyears2and3asnotalleventdatesareas desirabletoclientsandthemostpopulardateswillbookfirst.Thisprojection incorporatestheobjectivethattheballroombeutilizedon50%ofdaysbytheendof year3. SumptuousCuisineCateringexpectsthattheexistinglineofbusinesseventsat CorporateHallwillcontinueevenwiththeadditionofitsownspace,TheSumptuous Ballroom,becauseCorporateHallhostsprimarilysmallermeetingsthancanbe accommodatedatTheSumptuousBallroom.SumptuousCuisineCateringconsidersthe twospacestonotbeindirectcompetition.TherelationshipwithCorporateHallwill allowSumptuousCuisineCateringtorefersmallermeetingstothatspace,perhaps helpingtobuildbusinessatCorporateHallthroughnewinquiries.

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Sales Forecast Table

Year 1 Sales
OffSite Food & Beverage OffSite Food & Beverage Subcontracted Services Ballroom Rentals Event Staffing Referral Fees/Commissions Event Planning $784,536 $79,689 $354,801 $168,750 $648,168 $108,029 $108,029 $941,444 $103,594 $425,761 $236,250 $783,778 $130,630 $130,630 $1,129,733 $134,672 $510,913 $307,125 $948,303 $158,051 $158,051

Year 2

Year 3

Total Sales Direct Cost

OffSite Food & Beverage OffSite Food & Beverage Subcontracted Services Ballroom Rentals Event Staffing Referral Fees/Commissions Event Planning

$2,252,002

$2,752,087

$3,346,848

$196,134 $19,922 $283,841 $0 $382,419 $0 $0

$235,361 $25,899 $340,609 $0 $462,429 $0 $0

$282,433 $33,668 $408,730 $0 $559,499 $0 $0

Total Direct Cost Gross Margin

Gross Margin %

$882,316 $1,369,686
61%

$1,064,297 $1,687,790
61%

$1,284,330 $2,062,518
62%

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Sales by Year

Sales by Month

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Budget
Budget Table
Year 1 Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Office Supplies Insurance Facility Cleaning & Maintenance Mortgage interest on ballroom $474,000 $213,300 $106,000 $24,000 $7,959 $6,000 $36,000 $115,002 $9,822 $540,470 $243,212 $100,000 $25,200 $9,000 $6,500 $37,440 $137,804 $9,142 $609,844 $274,430 $100,000 $26,460 $10,000 $7,000 $38,938 $167,542 $8,459

Year 2

Year 3

Total Expenses Taxes Other Spending

Ballroom Downpayment Venue Improvements Ballroom Principal Repayment Sound System and Office Setup

$992,083 $113,281

$1,108,768 $173,707

$1,242,672 $245,954

$400,000 $100,000 $106,978 $50,000

$0 $0 $107,658 $0

$0 $0 $108,341 $0

Total Other Spending

$656,978

$107,658

$108,341

About the Budget

Regularmarketingexpenseswillincreaseeachyearbyabout5%withtheexceptionof theServiceProcesscategory,whichincreasesfasterasitmovesintandemwiththe numberofclients.

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Eventmarketingincludesnonprofitevents(spaceandsomeserviceswillbedonated, butattemptwillbemadetobreakevenonoutofpocketexpensesfortheseevents), summerbusinessfair,andquarterlyopenhouseevents. OnetimecostsassociatedwithSumptuousBallroominthemilestonestablearenot representedheregenerally. IncludedwithinourOtherSpendingsectionisthebusinesssinvestmentinThe SumptuousBallroom,a$2millionpurchase.Theassetwillbepurchasedwith20% downanda$1.6million15yearmortgage.Anadditional$270,000inconvertibledebt willberaisedat10%interestforthreeyears. Inadditiontothisinvestment,$50,000indepreciableassetswillbepurchased(sound system,officesetupforthefacility).Smallinvestmentsinreplacingtheseassetsand augmentingthemwithstrategicpurchaseswillbemadeinfutureyears.Currentassets ($100,000)purchasedwillincludesignageandimprovementstothevenue.

Personnel Plan
Personnel Table
Year 1
CEO COO Marketing Director Salespeople Administrative Assistant Head Cook Assistant Cooks Facility Manager $84,000 $72,000 $60,000 $48,000 $48,000 $60,000 $48,000 $54,000

Year 2
$87,350 $74,880 $62,400 $97,440 $49,920 $62,400 $49,920 $56,160

Year 3
$90,854 $77,875 $64,896 $149,083 $51,917 $64,896 $51,917 $58,406

Total

$474,000

$540,470

$609,844

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Sumptuous Cuisine Catering

About the Personnel Plan

Thepersonneltableshowsfulltimepersonnelonly. AfulltimeadministrativeassistantkeepsthebooksforthebusinessandprocessesA/R andA/P. Salesstaff,beginningatone,aremanagedbytheCEO.Asalespersonwillbeaddedin year2andagaininyear3.ThenewsalespeoplewillbededicatedtosalesofThe SumptuousBallroomandwillworkonsalaryplusa3%commissiononsales. Thekitchenisstaffedbyasalariedheadcookandoneassistantcookpaidbythehour. Eventsarestaffedbyarosterof30eventmanagers,caterwaiters,bartenders,andother staff.Moststaffarecrosstrainedbetweenthevariousroles.

Projected Profit and Loss Statement

About the Projected Profit and Loss Statement
Grossmarginswillimproveforthebusinessasballroomrentalsbuildasarevenue stream.SumptuousCuisinewillcontinuetoshowayearlyprofitevenasweaddThe SumptuousBallroomtothebusiness.

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Sumptuous Cuisine Catering

Sales by Month

Gross Margin by Year

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Sumptuous Cuisine Catering

Projected Profit and Loss Table

Year 1 Income Direct Cost Gross Margin
Gross Margin %

Year 2 $2,752,087 $1,064,297 $1,687,790

61%

Year 3 $3,346,848 $1,284,330 $2,062,518

62%

$2,252,002 $882,316 $1,369,686

61%

Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Office Supplies Insurance Facility Cleaning & Maintenance Mortgage interest on ballroom $474,000 $213,300 $106,000 $24,000 $7,959 $6,000 $36,000 $115,002 $9,822 $540,470 $243,212 $100,000 $25,200 $9,000 $6,500 $37,440 $137,804 $9,142 $609,844 $274,430 $100,000 $26,460 $10,000 $7,000 $38,938 $167,542 $8,459

Total Expenses Operating Income

Taxes

$992,083 $377,603
$113,281

$1,108,768 $579,022
$173,707

$1,242,672 $819,845
$245,954

Net Profit Net Profit/Sales Other Spending

Ballroom Downpayment Venue Improvements Ballroom Principal Repayment Sound System and Office Setup

$264,322 12%

$405,315 15%

$573,892 17%

$400,000 $100,000 $106,978 $50,000

$0 $0 $107,658 $0

$0 $0 $108,341 $0

Total Other Spending

$656,978

$107,658

$108,341

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