CoffeeHut, LLC (Sample)

Transcription

Data as of 11/17/2011
Business Analysis
BENCHMARKING ANALYSIS
Alert Level
Alert
Location
Moderate
R&D Operating Expense is zero for all 5 projected years
View
Moderate
Net Change in Working Capital is zero for all 5 projected years
View
INVESTMENT ANALYSIS
EA Valuation Estimate – EA estimated pre-money value of the enterprise based on
competitive cash-flow discounting using the Median IRR of Peer Group.
Investor Risk-Adjusted IRR – EA estimated annual rate of return for investors after
accounting for the Probability of Enterprise Survival.
EA estimated Probability of Enterprise Failure is statistically determined for each enterprise by the Risk Quantification System. Risk-Unadjusted IRR – EA estimated annual rate of return for investors without accounting for the Probability of Enterprise Survival.
EA estimated Probability of Enterprise Survival is statistically determined for each enterprise by the Risk Quantification System. It estimates the probability of enterprise survival to its projected fiscal year of liquidity event or debt maturation.
EA estimated Probability of Enterprise Survival is segmented into standardized Risk Categories. A direct comparison is provided between the enterprise and the peer group median.
EA estimated Probability of Enterprise Survival is segmented into standardized Risk Categories. A direct comparison is provided between the enterprise and the peer group median.
Summary
Company
Contact
Privacy & Confidentiality
31 E School St. San Francisco, CA 94108, United States www.coffeehut.com
Sample Enterprise
415-555-5555
415-555-5555
[email protected]
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BUSINESS SUMMARY
Coffee Hut, LLC provides gourmet coffee and food products with excellent customer service in a region of locations throughout Northern California. The
Company’s strategy consists of two primary pillars — to position shops around college campuses and office parks and to keep recurring customers coming back.
The Company will follow a continual growth model and plans to expand to a franchise-based platform in 2011. The Company is seeking $150,000 to expand
operations and cover the expenses of acquiring new fixed assets for store expansion.
Age of Enterprise (years)
Legal Structure
Historical Financial Records
Financial Projections
Market Assessment
Competitive Assessment
Business Plan
6
Limited Liability Company
Complete
Complete
Complete
Incomplete
Complete
MILESTONES
Year
Milestone
2006
CoffeeHut opens it's first location on E School Street near the City College of San Francisco's main campus.
2009
CoffeeHut serves its 100,000th customer and achieves $300,000 in revenue.
2010
CoffeeHut doubles in size from 3 to 6 employees.
2012
CoffeeHut continues its controlled growth selling over $600,000, including over 80,000 beverages.
2015
CoffeeHut is acquired by or merges with an entity such as Starbucks, Peets, or Dunkin' Donuts.
Model
BUSINESS MODEL
Coffee Hut's business model is to continue the momentum established in 2009 and grow the company profitably by expanding its locations and providing existing
customers with special discount incentives to become regular recurring customers. To achieve this goal, the Company has improved upon the overall strategy
and implemented the appropriate internal changes to drive revenue growth by: expanding marketing and advertising; focusing on excellent customer service
beginning with employee hiring; keeping a tight hold on costs; continuing to position stores around college campuses and office parks; and remaining focused on
existing customers.
STRUCTURE
Enterprise Industry Sector Peer Group Industry Sector
Restaurants Consumer Services
Number of Board of Directors /Members
0
Number of Board of Advisors
0
Number of Contracted Supplier Relationships
14
Number of Uncontracted Supplier Relationships 5
Number of Contracted Buyer Relationships
0
Number of Uncontracted Buyer Relationships
30
Number of Contracted Strategic Relationships 4
Number of Uncontracted Strategic Relationships 5
Key Supply-Chain Partners
Key Strategic Partners
Caffè Nero, Caribou Coffee, Tully's, Starbucks
Starbucks, Jammin' Java, Arsaga's Espresso Cafe, Common Grounds, Jittery Joe's
Product / Service
GENERAL SUMMARY
Product /
Service
Industry
Sector
Availability General Description
Key Performance Attributes
Distribution Number of
Channel(s) Customers
Restaurants 2009
We offer the best tasting coffee, lattes,
mochas, cappuccinos, and espresso in
the bay area. Both our stores are
designed with a relaxed atmosphere and
staffed with exceptionally friendly
employees to keep our customers
coming back.
Each of our carefully crafted espresso-based
drinks are offered with whole, skimmed, or soy
milk. Each of our coffee beverages are based on
a secret recipe of espresso blend. We make our
Distributor
espresso with a European espresso machine
which forces heated water through ground coffee
at a very high pressure. Customers may choose
cocoa, caramel, and other additives.
1000
Restaurants 2009
We offer a 15 item breakfast menu
consisting of various types of bagels,
croissants, and pastries. We offer a 10
item lunch menu consisting of 6 types of
sandwiches, a daily soup, and 3
varieties of salads.
Our sandwiches range from BLTs to specialty
turkey with avocado. Our bagels and bread are
Direct
brought in daily to assure freshness. To keep our
Sales,
costs down and our offerings diverse, we use a
Distributor
lot of the same ingredients throughout different
products.
1500
Merchandise Restaurants 2009
T-shirts, Coffee beans, Coffee cups,
coffee mugs, and local goods.
Merchandise products are offered as an
upsell to our core coffee and food
offerings, and will be clearly accessible
upon checkout.
Most of these products are unique and can only
be found in our stores. For the clientele that
prefers to prepare its coffee at home, we sell
gourmet coffee beans, ranging from $5-$13 per
bag.
Catering
Restaurants 2010
We cater for business meetings,
weddings, parties, and other specialty
events. We offer a select portion of our
menu for catering events - including, but
not limited to, turkey and ham
sandwiches, pastries, and coffee.
Catering is one of our most profitable offerings.
Since we only cater to events with 10 or more
participants, we are able to streamline a lot of our
processes and thus obtain a higher profit margin Direct Sales 50
than with one-by-one food and beverage sales.
We're then able to pass our efficiency and
savings onto the consumer.
Restaurants 2012
We plan to open 2 franchise stores in
2011 to one individual or group of
individuals whom operates both
locations. By 2011, we will have strong
regional brand recognition that will
enable us to market to and partner with
a local business professional, preferably
with expertise in the coffee or restaurant
business.
We will require the franchise owner to open a
minimum of 2 franchise stores to lessen the risk
of opening only one location. We will work with
Direct
FranchiseNow, an organization of the US's best
Sales, Other 0
franchise consultants, to help with the franchise
Indirect
process. Coffee Hut will take a $50,000 franchise
fee from the franchisee with an adjustment for
royalties fees after year one.
Beverages
Food
Franchising
Direct Sales 500
RISK FACTORS
Q: Is the success of your enterprise likely to be dependent on advanced computer-based or information systems technology?
The enterprise does not identify any dependence on or significant vulnerabilities associated with advanced computer-based or information systems technology. No advanced computer-based or information systems technology will be necessary to our success. Our management team will monitor stores and interact with
other team members manually or via email, until our growth warrants a different, more computer-based approach.
Q: Most states have agencies set up and mandated to protect, inform, and empower the state's consumers and businesses. To demonstrate
compliance with consumer services regulations, there are ususally extensive information reporting requirements. Does your enterprise fall under
consumer services regulations at the Federal or state level?
The enterprise expects to fall under consumer services regulations at the Federal or state level and may anticipate the use of information technology and services
to fulfull regulatory reporting requirements. The enterprise identifies and comments on the information technologies as follows: We will fulfill all necessary regulatory reporting requirements and have a hired legal consultant to assure that we are addressing such matters.
Intellectual Property
PORTFOLIO
Status
U.S. Patents
International Patents
Trademarks
Copyrights
Pending
0
0
0
0
Granted
0
0
1
0
PATENTS
ANCILLARY INTELLECTUAL PROPERTY
Product / Service
Reliance on Ancillary Intellectual Property
Beverages
Enterprise is not dependent on any non-owned ancillary IP
Food
Merchandise
Catering
Franchising
Enterprise's Planned Protection of Future Intellectual Property: Trademarks
Markets
Beverages
Market
Year Of
General Market Description
Introduction
California
Coffee
2009
Market
Coffee consumption in the U.S. has
shown steady growth, with gourmet
coffee the strongest. Coffee drinkers
on the West Coast are among the
U.S.'s second most demanding
consumers, demographically. They
favor well-brewed gourmet coffee
drinks and demand great service.
Northern California's long and rainy
winters have traditionally been a
great place for coffee
establishments.
Drivers for Adoption
Barriers to Adoption
The U.S. has a growing desire for
coffee. U.S. consumers want quality in
their life, and that desire plays an
important role in the recent growth in
gourmet coffee. The retail coffee
industry is flourishing in Northern
California due in part to the long rainy
season, which is ideal for the
consumption of hot non-alcoholic
beverages. Likewise, hot and dry
summers drive Northern Californians
to cafes for iced drinks.
Northern California has large, established coffee shops
that have been in operations for years. These
establishments have loyal customers who often come to
their store several times a week and would never
consider a new coffee shop. However, we are a unique
coffee establishment where customers can not only
enjoy a cup of perfectly brewed coffee but also spend
their time in an ambient environment with great food and
a friendly staff. In addition, coffee sales are seasonal
and we must make up for lost coffee sales in the
summer months with an increase in food and catering
sales.
Food
Market
Year Of
Introduction
The coffee shop breakfast and lunch
market in Northern California consists
largely of college students and
working professionals. Working
professional stop by before work and
on breaks throughout the work day.
Likewise, college students stop by
between classes. They often come
for coffee first, and food second.
Coffee
Shop
2009
Food
Market
The market for coffee shop breakfast and lunch is
expanding rapidly in Northern California. In the
Internet age, more and more companies are sending
their employees home to work remotely to save on
overhead expenses. Many of which are using coffee
shops as their home office. With unemployment
rates at an all time high, many laid-off workers are
turning to entrepreneurship as a way out, and to
coffee shops as a meeting grounds.
Coffee shops are often not the first place
that comes to mind when customers think
of eating lunch. Often our lunch sales are
an afterthought, coming second to the
customers main desire; coffee. Since
coffee and food sales are integrated, we
experience a seasonal drop-off in food
sales in the summer months and thus look
for more catering opportunities.
Merchandise
Market
Year Of
Introduction
This market consists of coffee shop
merchandise including Coffee Hut t-
We offer a discounted rate on coffee These products are often a hit or miss. For example,
refills if the customer has a Coffee
we often either sell out an entire line of our Coffee
Coffee Shop
2009
Merchandise
shirts, coffee mugs, books, CDs, and
novelty items. These products are on
display throughout our stores and
customers often "grab" them when
they are checking out.
Hut coffee mug. We also offer 10%
off food orders to customers wearing
one of our t-shirts. Large coffee
shops are usually reluctant to offer
these discount incentives.
Hut t-shirts or we do not sell many at all. Thus we
must keep inventory low to avoid excess products.
There is also a focus from our sales staff to grow
beverage and food revenue with no management
associate dedicated to merchandise.
Catering
Market
Year Of
Introduction
Event
Catering 2010
in U.S.
This market consists meetings,
functions, and event catering. The
largest opportunity in this market is
catering to meetings for working
professionals. We work to develop
recurring contracts with businesses
with regularly scheduled meetings often including, but not limited to,
monthly board of directors meetings.
By focusing on developing recurring contracts, we
can streamline processes and pass the savings on to
the customer. We concentrate our catering sales
efforts on start-up companies. Because of the nature
of innovation around Stanford University, UC Berkley,
and all of Silicon Valley there will be an abundant
supply of start-ups for some time to come. In contrast
to one-off food and coffee sales, catering is generally
not seasonal.
Businesses that already have a caterer
are hard to penetrate. Thus we must
focus on start-up businesses that often
do not have lots of money to allocate to
meetings. Also, event planners,
particularly wedding planners hosting
night events, often desire appetizers
that are more of dinner focused rather
than breakfast or lunch.
Franchising
Market
Year Of
Introduction
Coffee Hut
2012
Franchising
This market consists of the potential for
Coffee Hut franchise locations. In addition
to the revenue derived from coffee, food,
merchandise, and catering, we will
receive franchise fees from Coffee Hut
franchisees. Franchisees will be required
to open 2 or more Coffee Huts and will
have to meet personal net worth
requirements. This market is ever
expanding and is not limited to the
Northern California area.
The U.S. has a growing desire for caffeine. U.S.
consumers want quality in their life, and that
desire plays an important role in the recent
growth in gourmet coffee. The retail coffee
industry is flourishing in Northern California. The
local climate, with a long rainy season, is ideal
for the consumption of hot non-alcoholic
beverages. Likewise, hot and dry summers drive
people into cafes to order iced drinks. All this
proves a growing market opportunity for coffee
shop franchises.
Northern California has large,
established coffee shop franchises
that have been in operations for years.
These establishments have loyal
customers who often come to their
store several times a week. In
addition, coffee sales are seasonal
and coffee sales in the summer
months are limited. We must use the
down months to focus on franchise
construction and expansion.
MARKET SIZE
Fiscal Year
2008
2009
2010
2011
2012
2013
2014
2015
Beverages:
California Coffee Market
$272,108,844
$285,714,286
$300,000,000
$315,000,000
$330,750,000
$347,287,500
$364,651,875
$382,884,469
Total
$272,108,844
$285,714,286
$300,000,000
$315,000,000
$330,750,000
$347,287,500
$364,651,875
$382,884,469
Food:
Coffee Shop Food Market
$453,514,739
$476,190,476
$500,000,000
$525,000,000
$551,250,000
$578,812,500
$607,753,125
$638,140,781
Total
$453,514,739
$476,190,476
$500,000,000
$525,000,000
$551,250,000
$578,812,500
$607,753,125
$638,140,781
Merchandise:
Coffee Shop Merchandise
$9,070,295
$9,523,810
$10,000,000
$10,500,000
$11,025,000
$11,576,250
$12,155,063
$12,762,816
Total
$9,070,295
$9,523,810
$10,000,000
$10,500,000
$11,025,000
$11,576,250
$12,155,063
$12,762,816
Catering:
Event Catering in U.S.
$99,773,243
$104,761,905
$110,000,000
$115,500,000
$121,275,000
$127,338,750
$133,705,688
$140,390,972
Total
$99,773,243
$104,761,905
$110,000,000
$115,500,000
$121,275,000
$127,338,750
$133,705,688
$140,390,972
Franchising:
Coffee Hut Franchising
$98,029,605
$99,009,901
$100,000,000
$101,000,000
$102,010,000
$103,030,100
$104,060,401
$105,101,005
Total
$98,029,605
$99,009,901
$100,000,000
$101,000,000
$102,010,000
$103,030,100
$104,060,401
$105,101,005
Market
Source of Market Estimates
Internal Research, Paid Consultant Research
Internal Research
External Academic Research
Internal Research, External Industry Research, External Academic Research
Internal Research, External Industry Research, External Academic Research
MARKET DEVELOPMENT STRATEGY
Marketing Plan: Our marketing strategy is focused on getting new customers, retaining our existing customers, and getting customers to come back more often.
Establishing a loyal customer base is of a paramount importance since such customers will not only generate most of the sales but will also provide favorable
referrals. Our customers can not only enjoy a cup of perfectly brewed coffee but also spend their time in our relaxing environment.
Sales Plan: Overall, our strategy is to maintain a constantly high customer count by leveraging our appeal to three groups of potential customers; students,
working professionals, and local businesses. Our market share goals will be achieved as a result of branding, unique marketing initiatives, and excellent customer
service.
Competition
Beverages
Competitor
Name of
Competitor Description
Product/Service
Starbucks
Coffee
Starbucks started the specialty coffee chain phenomena in 1982. Revenues exceeded $19 billion in 2009. Average store
gross revenue is over $1,000,000. 99% of stores are company owned.
Peet's
Specialty Coffee
Peet's targets gourmet, taste sensitive coffee drinkers who are treating themselves, not your must have a cup everyday
consumers. 51% of Peet's revenues come from sales of whole coffee beans. Gross profits last year were 44.5%.
Seattle's
Best
Gourmet Coffee
Owned by AFC, which also owns Popeye's Chicken, Church's, Cinnabon and Torrefazione Italia Coffee, Seattle's Best is
distributed at over 15,000 locations such as grocery stores and office buildings.
Dunkin'
Donuts
Coffee
Low overhead, fast and efficient customer service, and surprizing good coffee have lead Dunkin' to the second largest market
share in the US.
McDonald's Coffee
McDonald's market penetration strategy is to price lower than Starbucks. Coupled with their world famous fast food,
McDonald's coffee is to go-to choice for 1 in 8 Americans a week.
Competitor Strengths
Competitor Weaknesses
Established competitors in the Northern California coffee market have store locations that
have often been carefully selected over years of research and trial and error. Because
coffee purchases are often impulsive, location is everything and the positioning of a store
could make or break the business. Established competitors also have brand recognition and
big corporate marketing budgets.
Many consumers prefer the more personal touch of a locally
owned and operated shop over the speed and unfriendliness
often associated with corporate coffee giants. Also, corporate
coffee establishments are often perceived to be more
expensive than local shops.
Unpenetrated - The portion of the total market revenue opportunity that is not penetrated (i.e., captured) by the enterprise or any other competitor.
Food
Competitor
Name of
Product/Service
Dunkin'
Donuts
Bagels,
Breakfast
Sandwiches
Dunkin Donuts offers fresh bagels of varying sorts. (McDonald's does not offer a wide range of variety of bagels.) Dunkin also
offers breakfast sandwiches that compete with McDonald's classic sandwiches. Dunkin recently began offering lunch items
but has yet to gain much traction in the lunch market.
McDonald's
Breakfast and
Lunch
McDonald's has a stronghold on the breakfast market. Their classic breakfast offerings, new health conscious menu, and
recent focus on better tasting coffee have proven effective at expanding market share.
Starbucks
Breakfast
pastries
Breakfast is usually an afterthought for Starbucks customers. They come for coffee first and breakfast second. Starbuck's
strategy is to offer speciality breads and higher priced items than Dunkin' Donuts or McDonald's.
Competitors such as Starbucks and McDonald's are strong at branding. We
can't compete with them on pricing. We must bootstrap ways to market our
brand. Established competitors are also good at picking store locations,
which can mean everything in the retail coffee chain business.
As in the beverage market, many consumers prefer the more personal touch
of a locally owned and operated shop over the speed and unfriendliness often
associated with corporate coffee giants. Also, corporate coffee establishments
are often perceived to be more expensive than local shops.
Merchandise
Competitor
Name of
Product/Service
Starbucks
CDs, Coffee
Mugs, Books
West Coast
T-shirts, Mugs
Coffee
Mechandise is a highly profitable portion of Starbucks customers. Because the Starbucks environment is friendly and inviting,
customers often stay inside the store for hours, which results in a higher likelihood of a merchandise purchase.
Although the Company is not a major player in beverage market share, they have a large following among college students
and young professionals. They have trendy new t-shirt designs and a demographic that likes to show off that they're West
Coast customers. Most "followers" are anti-Starbucks.
Established competitors have relationships with big
name artists and authors and are thus able to offer hit
CDs and popular books. We only offer CDs from
independent musicians and have a limited amount of
best seller books.
Often consumers want unique merchandise and thus are more likely to purchase specialty items
(ex. coffee mug) from a store with a local "mom-and-pop" feel rather than an established coffee
chain. Also, because of our small size we are able to offer novelty items from local merchants
(e.g. artwork, books, CDs, etc...) and do not have any development cost as a large chain might.
Catering
Competitor
Name of
Product/Service
Food For You Catering
Food For You is an American cuisine caterer that provides simple drop-off service as well as full-service catering.
Mike's
Gourmet
Catering
Catering
Mike's has a regular recurring customer base with a near monopoly on 5-6 business parks. This has enabled Mike to
expand his catering business primarily by word-of-mouth - with relatively little marketing expense.
Luigi's
Catering
Luigi's is an Italian restaurant that caters primarily for private clients.
Several caterers offer a wide range of services for all of their event planning and
vendor coordination needs. Larger customers prefer this because it is a one-stopshop for all their needs, not just catering. Existing competitors have developed
relationships with event planners that would be near impossible for a newcomer
to tap.
The catering industry is extremely fragmented, with over 50,000
companies across the United States. Customers find caterers through
referrals, online searches, Yellow Pages, and through businesses that
run restaurants they are already familiar with. There's an extremely low
barrier to entry.
Franchising
Competitor
Name of
Product/Service
Starbucks
Specialty Coffee
Chain Franchise
Starbucks started the specialty coffee chain phenomena in America in 1982. Revenues exceeded $19 billion in 2009.
Average store gross revenue is over $1,000,000. 99% of stores are company owned.
McDonald's
Fast Food
including Coffee
McDonald's market penetration strategy is to price lower than Starbucks. Coupled with their world famous fast food,
McDonald's coffee is to go-to choice for 1 in 8 Americans a week.
Dunkin'
Donuts
Specialty Coffee
Chain Franchise
Low overhead, fast and efficient customer service, and surprizing good coffee have lead Dunkin' to the second largest
market share in the US.
Peet's
Specialty Coffee
Chain Franchise
Peet's targets gourmet, taste sensitive coffee drinkers who are treating themselves (not your must have a cup everyday
consumers). 51% of Peet's revenues come from sales of whole coffee beans. Gross profit last year was 44.5%.
Established competitors in the Northern California coffee market have store locations that
have often been carefully selected over years of research and trial and error. Because
coffee purchases are often impulsive, location is everything and the positioning of a store
could make or break the business. Established competitors also have brand recognition and
large corporate marketing budgets.
Many consumers prefer the more personal touch of a locally
owned and operated shop over the speed and unfriendliness
often associated with corporate coffee giants. Also, corporate
coffee establishments are often perceived to be more
expensive than local shops.
COMPETITIVE PROTECTION STRATEGY
Strategy: Our competitive edge, and strategy for ongoing competitive protection includes 1) our locations in the heart of highly populated business, shopping,
dining, entertainment and cultural districts 2) a significantly higher quality, better tasting coffee product 3) an atmosphere superior to all other coffeehouses in the
area with an upscale look with furnishings and outdoor dining 4) a wider variety of popular drinks than our competitors, including flavored coffee drinks, tea, chai,
cocoa, juice and sodas, and finally 5) a website where customers can order whole coffee beans and Coffee Hut merchandise.
Management
EXISTING MANAGEMENT
Position
Name
Employed Age Undergraduate Discipline
Graduate Discipline
President Operations
Brandon Fisher
Full-Time
32
Business: Management/Information Systems
None
Vice President Business Development
Michael Swanson
Full-Time
41
Business: Marketing/Logistics
None
Vice President Accounting
Matthew Gallagher Full-Time
39
Business: Accounting/Finance
Business: Accounting/Finance
Position
President
Operations
Name
Biographical Information
Special Skills
Brandon
Fisher
Mr. Fisher has over 15 years of experience as a manager at Kroger's corporate
office. His focus was on beverages and supply chain automation. While at Kroger's
he developed relationships with many coffee suppliers and began researching the
need for coffee shops throughout the Bay area. He also built a quantitative model
for buyers that was instrumental in Kroger's rapid market share increase from
1995-2005. Mr. Fisher received his undergraduate degree in Management from
Tuft's University in Boston, Massachusetts.
Prior to founding Coffee Hut, Mr. Fisher served
as Lead Buyer for Whole Foods, Inc. He
specialized in beverages, and it was during this
time that he developed and seeded the business
model for Coffee Hut, LLC. Mr. Fisher is currently
pursuing accreditation as a Chartered Financial
Analyst with the CFA Institute.
Mr. Swanson works closely with the President of Operations, Brandon Fisher, in
executing Coffee Hut's strategy for sales and business development. Prior to
joining Coffee Hut, Mr. Swanson worked for 17 years at the University of
Massachusetts College of Engineering, including positions as Research Assistant
and Operations Manager. Mr. Swanson earned his B.A. in Marketing at the
University of Massachusetts.
Mr. Swanson is responsible for administrative
and management duties and provides direct
support to the company President. Mr. Swanson
was the first employee of Coffee Hut and has
been associated with the Company since its
founding.
Vice
President
Michael
Business
Swanson
Development
Vice
President
Accounting
Matthew is responsible for all things financial at Coffee Hut. He has 10 years of
experience as a Certified Public Accountant with CL&G Accounting, where he kept
Matthew the books for early stage companies and advised clients on business and sales
Gallagher strategies. CL&G is a virtual CFO firm - all the benefits of an in-house CFO, without
the expenses of a full time employee. Mr. Gallagher received his undergraduate
degree in accounting from Tuft's University in Boston, Massachusetts.
Mr. Gallagher has direct experience with early
stage companies, has worked with coffee shops,
and knows what it is needed to grow a business
in Northern California. He has been actively
involved with start-ups since he left his graduate
studies in 1995.
ANTICIPATED MANAGEMENT
Position
Undergraduate Discipline
Graduate Discipline
Duration Until Needed
Vice President Marketing
Business: Marketing/Logistics
None
24 Months
Managing Director Operations
Business: Management/Information Systems
None
12 Months
Financial
FINANCIAL CHARTS
Black lines represent historical values provided by the enterprise. Blue lines represent values projected by the enterprise.
Black lines represent historical values provided by the enterprise. Blue or other colored lines represent values projected provided by the enterprise.
Black lines represent historical values provided by the enterprise. Blue or other colored lines represent values projected provided by the enterprise.
Black lines represent historical values provided by the enterprise. Blue or other colored lines represent projected values provided by the enterprise.
INCOME & CASH FLOW (nominal)
Fiscal Year
2008
2009
2010
2011
2012
2013
2014
Revenue:
2015
Beverages
$160,561
$225,054
$250,125
$275,000
$300,000
$325,000
$350,000
$415,000
$259,000
Food
$65,145
$90,781
$110,078
$140,000
$170,000
$200,000
$235,000
Merchandise
$5,464
$8,050
$9,100
$10,000
$15,000
$26,000
$32,000
$50,000
Catering
$8,545
$15,060
$30,560
$60,000
$66,000
$90,000
$105,000
$120,000
Franchising
$0
$0
$0
$0
$30,000
$90,000
$240,000
$450,000
Other
$0
$0
$0
$0
$0
$0
$0
$0
Total
$239,715
$338,945
$399,863
$485,000
$581,000
$731,000
$962,000
$1,294,000
Number of Units:
Beverages
35555
50540
60056
70000
80000
90000
100000
110000
Number of Units:
Food
21705
30550
38111
50000
60000
70000
80000
90000
Number of Units:
Merchandise
546
811
956
1000
1500
2600
3200
5000
Number of Units:
Catering
28
50
101
200
220
300
350
400
Number of Units:
Franchising
0
0
0
0
1
3
8
15
Average Revenue per Unit:
Beverages
$5
$4
$4
$4
$4
$4
$4
$4
Food
$3
$3
$3
$3
$3
$3
$3
$3
Merchandise
$10
$10
$10
$10
$10
$10
$10
$10
Catering
$305
$301
$303
$300
$300
$300
$300
$300
Franchising
$0
$0
$0
$0
$30,000
$30,000
$30,000
$30,000
Cost of Revenue:
Beverages
$0
$50,003
$60,110
$50,000
$60,000
$65,000
$70,000
$85,000
Food
$0
$65,015
$80,054
$80,000
$90,000
$100,000
$115,000
$130,000
Merchandise
$0
$4,050
$4,510
$5,000
$7,500
$13,000
$16,000
$23,000
Catering
$0
$7,544
$15,011
$30,000
$33,000
$43,000
$47,000
$55,000
Franchising
$0
$0
$0
$0
$1,500
$4,500
$12,000
$22,500
Other
$0
$0
$0
$0
$0
$0
$0
$0
Total
$0
$126,612
$159,685
$165,000
$192,000
$225,500
$260,000
$315,500
Gross Profit:
Beverages
$160,561
$175,051
$190,015
$225,000
$240,000
$260,000
$280,000
$330,000
Food
$65,145
$25,766
$30,024
$60,000
$80,000
$100,000
$120,000
$129,000
Merchandise
$5,464
$4,000
$4,590
$5,000
$7,500
$13,000
$16,000
$27,000
Catering
$8,545
$7,516
$15,549
$30,000
$33,000
$47,000
$58,000
$65,000
Franchising
$0
$0
$0
$0
$28,500
$85,500
$228,000
$427,500
Other
$0
$0
$0
$0
$0
$0
$0
$0
Total
$239,715
$212,333
$240,178
$320,000
$389,000
$505,500
$702,000
$978,500
Operating Expenses:
S&M
$0
$35,001
$41,099
$46,300
$53,600
$59,000
$60,000
$60,000
G&A
$0
$140,004
$160,123
$190,000
$227,600
$290,000
$400,000
$559,000
R&D
$0
$0
$0
$0
$0
$0
$0
$0
Depreciation & Amortization
$0
$0
$0
$0
$0
$0
$0
$0
Total
$0
$175,005
$201,222
$236,300
$281,200
$349,000
$460,000
$619,000
Operating Income
$239,715
$37,328
$38,956
$83,700
$107,800
$156,500
$242,000
$359,500
Other Income
$0
$0
$0
$0
$0
$0
$0
$0
Interest Expense
$0
$0
$0
$0
$10,500
$10,500
$10,500
$10,500
Income Tax / Member Tax Payout
$0
$15,345
$16,000
$27,621
$32,000
$51,000
$84,000
$141,000
Net Income
$239,715
$21,983
$22,956
$56,079
$65,300
$95,000
$147,500
$208,000
Cash Flows:
Net Change in Working Capital
$0
$0
$0
$0
$0
$0
$0
$0
Operating Cash Flow
$239,715
$21,983
$22,956
$56,079
$65,300
$95,000
$147,500
$208,000
Capital Expenditures
$0
$5,000
$6,000
$10,000
$10,000
$10,000
$10,000
$10,000
Free Cash Flow
$239,715
$16,983
$16,956
$46,079
$55,300
$85,000
$137,500
$198,000
Capitalization:
New Equity Investment
$0
$0
$0
$0
$0
$0
$0
$0
$0
Grant Capital
$0
$0
$0
$0
$0
$0
$0
New Debt Borrowing
$0
$0
$0
$170,000
$0
$0
$0
$0
Debt Principal Repayments
$0
$0
$0
$0
$30,000
$30,000
$30,000
$30,000
Total Net Capitalization
$0
$0
$0
$170,000
($30,000)
($30,000)
($30,000)
($30,000)
Cash Liquidity Balance
$25,056
$241,135
$266,435
$321,435
$428,935
$596,935
Fiscal Year
2008
2009
2010
2011
2012
2013
2014
2015
Market Share:
Beverages
0.00 %
0.08 %
0.08 %
0.09 %
0.09 %
0.09 %
0.10 %
0.11 %
INCOME & CASH FLOW (relative)
Food
0.00 %
0.02 %
0.02 %
0.03 %
0.03 %
0.03 %
0.04 %
0.04 %
Merchandise
0.00 %
0.08 %
0.09 %
0.10 %
0.14 %
0.22 %
0.26 %
0.39 %
Catering
0.00 %
0.00 %
0.03 %
0.05 %
0.05 %
0.07 %
0.08 %
0.09 %
Franchising
0.00 %
0.00 %
0.00 %
0.00 %
0.03 %
0.09 %
0.23 %
0.43 %
Annual Growth Rate in Revenue:
Beverages
0.0 %
40.2 %
11.1 %
9.9 %
9.1 %
8.3 %
7.7 %
18.6 %
Food
0.0 %
39.4 %
21.3 %
27.2 %
21.4 %
17.6 %
17.5 %
10.2 %
Merchandise
0.0 %
47.3 %
13.0 %
9.9 %
50.0 %
73.3 %
23.1 %
56.3 %
Catering
0.0 %
0.0 %
102.9 %
96.3 %
10.0 %
36.4 %
16.7 %
14.3 %
Franchising
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
200.0 %
166.7 %
87.5 %
Other
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
Total
0.0 %
41.4 %
18.0 %
21.3 %
19.8 %
25.8 %
31.6 %
34.5 %
Gross Profit Margin:
Beverages
0.0 %
77.8 %
76.0 %
81.8 %
80.0 %
80.0 %
80.0 %
79.5 %
Food
0.0 %
28.4 %
27.3 %
42.9 %
47.1 %
50.0 %
51.1 %
49.8 %
Merchandise
0.0 %
49.7 %
50.4 %
50.0 %
50.0 %
50.0 %
50.0 %
54.0 %
Catering
0.0 %
0.0 %
50.9 %
50.0 %
50.0 %
52.2 %
55.2 %
54.2 %
Franchising
0.0 %
0.0 %
0.0 %
0.0 %
95.0 %
95.0 %
95.0 %
95.0 %
Other
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
Total
100.0 %
62.6 %
60.1 %
66.0 %
67.0 %
69.2 %
73.0 %
75.6 %
Operating Expenses as a % of Revenue:
S&M
0.0 %
10.3 %
10.3 %
9.5 %
9.2 %
8.1 %
6.2 %
4.6 %
G&A
0.0 %
41.3 %
40.0 %
39.2 %
39.2 %
39.7 %
41.6 %
43.2 %
R&D
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
0.0 %
Total Profit Margins:
Operating Profit Margin
100.0 %
11.0 %
9.7 %
17.3 %
18.6 %
21.4 %
25.2 %
27.8 %
Net Profit Margin
100.0 %
6.5 %
5.7 %
11.6 %
11.2 %
13.0 %
15.3 %
16.1 %
BALANCE SHEET
Fiscal Year 12/31/2010
Current Assets:
Cash & Short-Term Investments
$25,056
Accounts Receivable
$5,066
Inventory
$15,000
Other Current Assets
$50,050
Total Current Assets
$95,172
Long-Term Assets:
Tangible Capital Assets
$54,055
Intangible Capital Assets
$5,600
Accumulated Depreciation
$9,888
Total Long-Term Assets
$49,767
Total Assets
$144,939
Current Liabilities:
Accounts Payable
$15,110
Short-Term Debt
$10,000
Other Current Liabilities
$0
Total Current Liabilities
$25,110
Long-Term Liabilities
$105,000
Total Liabilities
$130,110
Equity & Capital:
Paid-In Capital
$50,000
Retained Earnings
$0
Interest in Non-Consolidated Enterprise(s)
$0
Total Equity & Capital (Net Worth)
$50,000
Total Equity, Capital, & Liabilities
$180,110
PROJECTION METHODS
Revenue Projection Method
Operational Cost Projection Method
Underlying Projection Assumptions
Extrapolated from Historical Revenue Trend
Extrapolated from Historical Cost Trends
Capitalization
CURRENT CAPITALIZATION
Capital Offering: $170,000
Offering Type: Debt
Future Capital - The enterprise's estimate of future capital needs post investment.
Post Money - Equity share of the enterprise after the dilution of this offering. S&M – Sales & Marketing | G&A – General & Administrative | R&D – Research & Development | Asset Acq. – Asset Acquisition
Area of Use
Specific Use
Amount
Enterprise Asset Acquisition
Renovate store, new coffee makers, furniture
$100,000
Sales & Marketing
New hire, promotional marketing material
$35,000
General & Administrative
New employee
$35,000
PAST CAPITALIZATION
Name
Relationship
Capital Type
Contributed Capital
Brandon Fisher
Founder
Preferred Equity
$50,000
Bank of Silicon Valley
Commercial Bank
Short-Term Debt
$110,000
EQUITY EXIT STRATEGIES / DEBT TYPE & DURATION
Ranking
Equity Exit Strategy / Debt Type Desired
Year
Name of Potential Acquirers or Merger Partners
Most Likely
Acquisition
2015
Starbucks, Peets, Dunkin' Donuts
Likely
Leveraged Buy-Out
2015
Least Likely
Secondary Private Offering
2015

CoffeeHut, LLC (Sample)

Transcription

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