Operations & Finances
Running head: STEAK AND WHISKY 1
Steak and Whisky Business Plan
April 17, 2019
This paper is for IHMN440 Assignment 4, due April 19, 2019, taught by Jason Ripley.
STEAK AND WHISKY 2
Table of Contents
Executive Summary ----------------------------------------------------------------------------------------- 4
Introduction ---------------------------------------------------------------------------------------------------5
Company History--------------------------------------------------------------------------------------5
Mission Statement-------------------------------------------------------------------------------------5
Business Description ---------------------------------------------------------------------------------5
Industry Analysis----------------------------------------------------------------------------------------------6
Key Success Factors-----------------------------------------------------------------------------------7
Feasibility Analysis-------------------------------------------------------------------------------------------9
First Screen---------------------------------------------------------------------------------------------9
Part 1 - Product/Service Feasibility-----------------------------------------------------------------9
Part 2 - industry/Target -------------------------------------------------------------------------------9
Part 3 - Organizational Feasibility-------------------------------------------------------------------9
Part 4 - Financial Feasibility-------------------------------------------------------------------------9
Organizational Structure------------------------------------------------------------------------------------11
Marketing Analysis-----------------------------------------------------------------------------------------13
Market Segments-------------------------------------------------------------------------------------13
Selecting a Target Market---------------------------------------------------------------------------13
Buyer Behaviour-------------------------------------------------------------------------------------13
Competitor Analysis---------------------------------------------------------------------------------13
Marketing Plan----------------------------------------------------------------------------------------------15
Overall Marketing Plan-----------------------------------------------------------------------------15
Positioning--------------------------------------------------------------------------------------------15
STEAK AND WHISKY 3
Points of Differentiation---------------------------------------------------------------------------15
Pricing Strategy-------------------------------------------------------------------------------------15
Promotion Mix--------------------------------------------------------------------------------------16
Operation Plan---------------------------------------------------------------------------------------------17
Location----------------------------------------------------------------------------------------------17
Facility and Equipment-----------------------------------------------------------------------------17
Operations Flow Diagram-------------------------------------------------------------------------17
Financial Projections--------------------------------------------------------------------------------------20
The Sources and Uses of Funds Statement------------------------------------------------------20
References--------------------------------------------------------------------------------------------------21
Appendix A-------------------------------------------------------------------------------------------------22
Appendix B-------------------------------------------------------------------------------------------------27
STEAK AND WHISKY 4
Executive Summary
Steak and Whisky is a fine dining restaurant which is located in Downtown Victoria. The
restaurant will be delivering enjoyable fine dining experience to Victoria local residences and
tourists. The purpose of this restaurant is to filling the market gap in Victoria and generate profit
for its ownership group. The main products of this restaurant are premium steaks and signature
whisky. Steak and Whisky will be mainly targeting local residences and tourists with middle
level or higher income, and who would enjoy receiving fine dining experience and high-quality
of products and services. The business is owned by myself, Joe Yi and my family.
The feasibility of business has been analyzed carefully by using a complete set of
feasibility analysis. The result is feasible. The major advantage for this business would be
profitability, market attractiveness, and industry growth rates.
Steak and Whisky will be using a promotion mix which is made up with several different
marketing channels. We will be using social media as our main promotion channel and
introducing the business and specials. Social media channels will be effective for the group of
age 25 to 50. The secondary marketing channel is small-budged traditional advertising. This
method is mainly targeting people who is not using social media regularly (usually 50-year-old
and up). Also, Steak and Whisky will take advantage of public relations. Representatives from
the restaurant will be joining local food events to showcase our products and services to improve
reputation and popularity.
Steak and Whisky will be opening in summer 2019. It will excite local people, market,
and restaurant industry.
STEAK AND WHISKY 5
Introduction
Company History
One of the cofounder Joe Yi, which is myself, has been staying in Victoria for four years.
I enjoy trying different kinds of food and dining experience. In the Western food culture, my
favorite two elements would be steak and fine dining. However, I have noticed in Victoria, there
is no fine dining restaurants that selling steak as their main product. In other words, I did not find
the restaurant in Victoria that could combine the steakhouse and fine dining properly. In order to
fill this market gap, I decided to steakhouse which offers premium product and fine dining
experience.
Mission Statement
The aim of Steak and Whisky is “bringing premium to your table”. We will be delivering
premium products and services to our customer, providing experiences that are unexpected yet
enjoyable.
Business Description
Steak and Whisky is a locally owned and operated fine dining restaurant located in
Downtown Victoria. Joe Yi and his family will make up the board of directors and ownership
group. Steak and Whisky will be located at the corner of Yates St and Government St. This
location is the core of downtown with huge traffic and two nearby parking lots. The business will
provide dining area and bar area. There are 200 seats in the dining area and 50 seats in the bar
area. The operating hours for the restaurant is from 5pm to 11pm for dinner service and late-
night drinks.
STEAK AND WHISKY 6
Industry Analysis
According to NAICS Canada, the code for full-service restaurant is 7225, the definition is
“This industry group comprises establishments primarily engaged in providing food services to
patrons who order and are served while seated and pay after eating, or who order or select items
at a counter, food bar or cafeteria line (or order by telephone) and pay before eating. This
industry group includes drinking places that primarily serve food” (“NAICS Canada”, 2012).
The restaurant industry is actually growing rapidly in Canada. The industry size and growth rate
have been moving up steadily.
I have conducted the three year scale of industry size and growth rate as following:
60
62
64
66
68
70
72
1 2 3
Sales (in billion)
STEAK AND WHISKY 7
(Year 1: 2016, Year 2, 2017, Year 3, 2018) (IBISWorld, 2018)
Based on the first chart, we can see that the annual sales of this industry is growing
steadily. One of the reason could be that nowadays, people are paying more attention on their
daily diet. This fact directly results in the growth of the industry. We could project that the sales
of this industry will keep growing and it could be considered as a good timing to enter the
market. The second chart shows that the growth rates are slowing down. One of the reason could
be that food experts and guides are recently suggesting that plant based diet is healthier than
animal protein based diet. This suggestion might bring down the revenues of restaurants which
promote meat product. Therefore, we will be offering vegetarian and vegan options on our menu
to meet this trend.
Key success factors:
• Attractive products and services
• Staff with proper knowledge of F&B industry
• Core location with easy access and nearby parking lots
• Enjoyable restaurant environment and dining experience
0
0.5
1
1.5
2
2.5
3
3.5
4
1 2 3
Growth Rates (%)
STEAK AND WHISKY 8
• Minor competitiveness in the area
In these factors, two of them are significantly important: Attractive products and services,
and Minor competitiveness in the area. The first factor refers to the uniqueness of the product in
my restaurant. The restaurant would offer premium steaks and pair with proper-selected liquors.
Also, high-quality services offered by well-trained staff could enhance the dining experience.
The second key factor is minor competitiveness. By doing primary and secondary research, I
found out that there a very few restaurants which would advertise steaks and liquors as their
main product in the town. Therefore, operating a steak house could be very competitive in the
F&B industry in Victoria. These two key factors might help me to operate the business properly
and effectively.
STEAK AND WHISKY 9
Feasibility Analysis
First Screen
There are five steps to conduct a business plan. The first step is identifying the business
idea. The second step is screening the idea to determining its preliminary feasibility. The third
step is conducting a full feasibility analysis. The forth step is preparing a written business plan.
The final part is presenting the business to investors.
There are only a few restaurants in Victoria which advertise steaks as their main
products. Therefore, I would consider that this idea is strong since there are very few
competitors. My restaurant could be able to stand out if I can make my product attractive and
competitive. However, since there are only few steak house in town, the experience and
knowledge of this area might be not sufficient. In addition, unlike fast food restaurant or family
restaurant, the purpose of a steak house is not to fulfill customers’ basic and daily needs. I need
to come up with some product that could satisfy customers’ regular needs. Financial part could
be an issue. A steak house might need a huge amount of investment to get started. The key
factors of operating this business might be budget control and cost control. For details please
refer to Appendix A.
Product and Service Feasibility
• Desirability: The major purpose of this restaurant is to fill the gap in the market of food
& beverage in Victoria. Steak and Whisky aims to create an outstanding fine dining
experience for our valued customers. Since there is lack of other options in Downtown
area, this restaurant will be desirable.
• Demand: the management team has conducted a survey which towards to potential
customers with middle or high incomes. More than half of them have determined that
STEAK AND WHISKY 10
they would love to try our food. Rest of them stated that they would probably join us for
a dinner. Since there is a gap in the market. People tend to be exited of this new
restaurant.
For more details of feasibility analysis, such as industry and market feasibility,
organizational feasibility, and financial feasibility, please refer to complete feasibility analysis
form in Appendix B.
STEAK AND WHISKY 11
Organizational Structure
This part will introduce our management team and key personnel who will support this
business and lead this business to success. The organizational chart is as following:
Our team members are aiming to deliver their skills, passion, knowledge, and experience
to our restaurant and valued customers.
• Board of directors: Joe Yi’s family. My family would be financially supporting this
business and share the ownership.
• General manager: Tao Yi. My father will be taking the position of general manager. With
his over 25 years’ experience in hospitality and 15 years’ experience as a general
manager, we have reasons to believe that he is able to manage this property properly and
lead it to success.
• Restaurant manager: Jason Zhang. After completing his BA in international hotel
management, Jason Zhang has always had a passion on food and beverage. With 5 years
board of directors
restaurant manager
head server
server
head chef
line cook
prep cook
general menager
STEAK AND WHISKY 12
previous managing experience of Food & Beverage department at Red Lion Suite, he is
full of passion of working for Steak and Whisky and managing front of the house.
• Head chef: Joe Yi. I am extremely passionate and energetic for culinary industry. After
traveling to France and receiving trainings from culinary school and world-class chefs, I
believe that I am able to manage back of the house and deliver premium dishes to our
valued customers.
• Other employees will be carefully selected, recruited, and trained to meet our standard.
STEAK AND WHISKY 13
Market Analysis
Market Segmentation
Geography: People who are in Victoria
Psychographic Variables: We would target customers who would like to receive high-quality
food and service.
Behavioral Variables: We target customer who would like to dine out and enjoy fine dining
atmospheres.
Product Type: Steakhouse, fine dining restaurant, bar
Selecting a Target Market
Steak and Whisky will target customers:
• Who enjoy high quality food and service and fine dining atmosphere
• Age 30-60
• Middle level to high level income
• Who have passion for food and travel
Buyer Behavior
Motivation: willing to try fine dining experience
Income Level: locals and tourists with middle level (or higher) income
Lifestyle: more and more people started to pay attention to fine dining and would like to try them
Environment: Fabulous Downtown area.
Competitor Analysis
I consider two steakhouses in Downtown Victoria area as my main competitors. Even
though they are not fine dining restaurant, both of them are promoting steaks as their main
product.
STEAK AND WHISKY 14
Based on this chart, we can clearly see that all three elements (service, quality, and
pricing) of Steak and Whisky are higher than Keg and Nautical Nellie’s. Applying this strategy
could help us to target a portion of the market and fill up the market gap.
Factor The Keg Steakhouse
and Bar
Nautical Nellies
Steak and Seafood
Steak and Whisky
Location Downtown Victoria Downtown Victoria Downtown Victoria
Services 4.2 4.0 4.5
Quality 4.0 3.8 4.3
Pricing $$$ $$$ $$$$
STEAK AND WHISKY 15
Marketing Plan
Overall Marketing Plan
Steak and Whisky is an upscale fine dining restaurant. Our overall marketing strategy is
informing both locals and tourists in our target market that we are offering remarkable dining
environment and experience. We will be doing this through a several different media channels
such as business website, social media, public relationship events, and small-budged radio and
newspaper. This restaurant would mainly offer high-quality steaks and well-selected liquors. The
restaurant will be operating from 5pm to 11pm for dinner service and late-night drinks. It is
mainly targeting locals and tourists who enjoy fine dining experience. The ownership of Steak
and Whisky decided to take several different marketing channels such as website, social media,
traditional advertising, and public relationship.
Positioning
The target market of Steak and Whisky is locals and tourists with middle level or higher
income, and would like to enjoy fine dining experience and receive high-quality of products and
services. In Victoria, the number of fine dining restaurants is limited and only a very few of them
is advertising steaks as their main product. Therefore, there is a gap in the market and the
purpose of Steak and Whisky is to fill up this gap.
Points of Different
• Filling the market gap in Victoria
• Premium and attractive product and service
• Core Downtown location with easy accessibility to nearby parking lot
• Enjoyable décor and dinning environment
Pricing strategy
STEAK AND WHISKY 16
Steak and Whisky will be using cost-based pricing strategy. Since there is a minor
competition in the current market, the cost-based pricing strategy might be the most reasonable
one of the restaurant. Due to high quality of the product and service, the cost of goods might be
higher than similar business. The average entrée price would be $60 and the average customer
check would be around $150. In addition, we will also be using the sliding scale markup for our
premium products. In this way, we could generate a great amount contribution with a probably
more reasonable price. When the market starts to evolve, we might switch to other pricing
strategies such as competitive pricing.
Promotion Mix
Steak and Whisky will be using several different marketing channels. Firstly, social
media would be a major channel of marketing and advertising. Weekly news, daily specials, and
promotions will be posted on Facebook, Twitter, and Instagram. Also, the restaurant might
become more recognizable by branding the chef, which is advertising chefs and famous dishes
together and maximizing the value of the restaurant. The major target market of the restaurant is
adults, age 30 to 60, with middle level or higher income. This group of people would likely get
on social media. The marketing on social media will be effective for them. Secondly, the
traditional advertising channels, such as local TV channels (CTV), local radio channel (CFUV),
and local newspapers (VICNEWS), will be used as well. The traditional marketing channels
might be more attractive for this group of people rather than social media. Thirdly, Steak and
Whisky will take advantage of public relations. The representatives will participate in local
community events, such as Feast of Field, Culinaire, and Dine Around & Stay in Town, and
show the face to the public to improve our reputation.
STEAK AND WHISKY 17
Operation Plan
Location
Steak and Whisky will be located on the corner at Yates St and Government St. This
location is the core of downtown Victoria with a huge amount of walk-by traffic. In addition,
there two nearby parking lots, Yates Parkade and Bastion Square Parkade. Nearby parking lots
could give restaurant an easy accessibility, which could be considered as a huge advantage.
Facility and Equipment
A vast amount of facility is needed to start this business. In front of the house, it requires
furniture and dining facilities for 200 seats in the dining room and 50 seats in the bar. The
facilities include: dining table and seats, lighting, silverware, bar chairs, and computers. We will
be displaying some signature whisky, such as Johnnie Walker and Jake Daniel, in the front of the
house. Back of the house also requires a variety of equipment. Since it is a 200-seat restaurant,
the kitchen require gas stoves, gas grill, ovens, flattop, counters, refrigerators, freezers,
dishwashers, and cookware. Besides, since this is a fine dining restaurant that offers premium
product, I will bring some special equipment in the kitchen. One of them would be the special
grill for cooking the steak. The grill is made of cast iron and could product a huge amount of heat
on the surface area. This grill could give steaks a hard sear all the way round and lock in all the
juices and flavors. This equipment could be one of our selling points and we are able to do some
marketing on it
Operation Flow Diagram
Front of the House
STEAK AND WHISKY 18
Back of the House
customers arrive customers are
greeted and seated by hosts
customers are greeted by server
servers introduce the memu and daily
special customers take
order • servers ring in the order and sent it to
kitchen
servers bring out food
customers enjoy the food quality check
ask customers if they want any
dessert after main dishes
customers pay the bill and leave
STEAK AND WHISKY 19
preparation, getting ready for
service
printers print out the bill
chefs call out the bill
kitchen staff follow the bill and cook
the meal
kitchen delivers meal to servers
cleaning, dirty cookware sent to the dishwasher
STEAK AND WHISKY 20
Financial Projections
The Sources and Uses of Funds Statement
At the beginning of the business, my family will support it. the capital investment would
come from myself and my parents. The total capital investment required would be $415,000,
another $250,000 might be required to invest in leasehold improvements. When the business
started to make the profit, the financial supports from my parents might not be required since the
profit could support me. The funds will be mainly used for paying rent, salary, buying
equipment, and purchasing inventory.
Income Statement, Balance Sheet, Cash Flow
Shown in Excel.
STEAK AND WHISKY 21
Reference
Industry and Market Research. (2018). Retrieved April 17, 2019, from https://www.ibisworld.ca/
North American Industry Classification System (NAICS) Canada 2012. (2018, March 23).
Retrieved April 17, 2019, from
http://www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVD&TVD=118464&CVD=118
467&CPV=7225&CST=01012012&CLV=3&MLV=5
STEAK AND WHISKY 22
Appendix A
Strength of Business Idea
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)
1. Extent to which the idea:
• Takes advantage of an environmental trend
• Solves a problem
• Addresses an unfilled gap in the marketplace
Weak Moderate Strong
2. Timeliness of entry to market
Not timely Moderately timely
Very timely
3. Extent to which the idea “adds value” for its buyer or end user
Low Medium High
4. Extent to which the customer is satisfied by competing products that are already available
Very satisfied Moderately satisfied
Not very satisfied or ambivalent
5. Degree to which the idea requires customers to change their basic practices or behaviors
Substantial changes required
Moderate changes required
Small to no changes required
Part 2: Industry-Related Issues
STEAK AND WHISKY 23
Low Potential (- 1)
Moderate Potential (0)
High Potential (+1)
1. Number of competitors Many Few None
2. Stage of industry life cycle
Maturity phase or decline phase
Growth phase Emergence phase
3. Growth rate of industry Little or no growth
Moderate growth Strong growth
4. Importance of industry’s products and/or services to customers
“Ambivalent” “Would like to have” “Must have”
5. Industry operating margins
Low Moderate High
Part 3: Target Market and Customer-Related Issues
Low Potential (- 1)
Moderate Potential (0)
High Potential (+1)
1. Identification of target market for the proposed new venture
Difficult to identify
May be able to identify
Identified
2. Ability to create “barriers to entry” for potential competitors
Unable to create May or may not be able to create
Can create
3. Purchasing power of customers
Low
Moderate High
4. Ease of making customers aware of the new product or service
Low Moderate High
5. Growth potential of target market
Low Moderate High
STEAK AND WHISKY 24
Part 4: Founder- (or Founders-) Related Issues
Low Potential (- 1)
Moderate Potential (0)
High Potential (+1)
1. Founder or founders experience in the industry
No experience Moderate experience Experienced
2. Founder or founders skills as they relate to the proposed new venture’s product or service
No skills Moderate skills Skilled
3. Extent of the founder or founders professional and social networks in the relevant industry
None Moderate Extensive
4. Extent to which the proposed new venture meets the founder or founders personal goals and aspirations
Weak Moderate Strong
5. Likelihood that a team can be put together to launch and grow the new venture
Unlikely Moderately likely Very likely
Part 5: Financial Issues
Low Potential (- 1)
Moderate Potential (0)
High Potential (+1)
1. Initial capital investment
High
Moderate Low
2. Number of revenue drivers (ways in which
One Two to three More than three
STEAK AND WHISKY 25
the company makes money)
3. Time to break even
More than two years
One to two years Less than one year
4. Financial performance of similar businesses
Weak Modest Strong
5. Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via bootstrapping
Low
Moderate High
Overall Potential
Score
(-5 to +1)
Overall Potential of the Business Idea Based on Each Part
Suggestions for Improving the Potential
Part 1:
Strength of Business Idea
3 High potential !
Moderate potential
!
Low potential !
• Making my product special and competitive
Part 2:
Industry-Related Issues
1 High potential !
Moderate potential
!
Low potential !
• Trying to meet customers’ basic and regular needs
STEAK AND WHISKY 26
Part 3:
Target Market and Customer-Related Issues
1 High potential !
Moderate potential
!
Low potential !
• More investment in marketing and advertising
Part 4:
Founder- (or Founders-) Related Issues
2 High potential !
Moderate potential
!
Low potential !
• Need more knowledge and experience in F&B and fine dining industry
Part 5:
Financial Issues
-2 High potential !
Moderate potential
!
Low potential !
• Budget control and cost control
Overall Assessment 5
High potential !
Moderate potential
!
Low potential !
STEAK AND WHISKY 27
Appendix B
Industry and Market
Industry attractiveness
Low Potential Moderate Potential High Potential
1. Number of competitors Many Few None
2. Age of industry Old Middle aged Young
3. Growth rate of industry Little or no Moderate growth Strong growth
growth
4. Average net income for Low Medium High
firms in the industry
5. Degree of industry Concentrated Neither Fragmented
concentration concentrated
nor fragmented
6. Stage of industry life cycle Maturity phase Growth phase Emergence
or decline phase
phase
7. Importance of industry’s “Ambivalent” “Would like to “Must have”
products and/or services have”
to customers
8. Extent to which business Low Medium High
and environmental trends
are moving in favor of the
industry
9. Number of exciting new prod- Low Medium High
uct and services emerging
from the industry
STEAK AND WHISKY 28
10. Long-term prospects Weak Neutral Strong
Target Market Attractiveness
Low Potential Moderate Potential High Potential
1. Number of competitors in Many Few None
target market
2. Growth rate of firms in the Little to no Slow growth Rapid growth
target market growth
3. Average net income for Low Medium High
firms in the target market
Market Timeliness
Low Potential Moderate Potential High Potential
1. Buying mood of customers Customers are Customers are Customers are
not in a buy- in a moderate in an aggres-
ing mood buying mood sive buying
mood
2. Momentum of the market Stable to losing Slowly gaining Rapidly gaining
momentum momentum momentum
3. Need for a new firm in the Low Moderate High
market with your offerings
or geographic location
4. Extent to which business and Low Medium High
environmental trends are
moving in favor of the target
STEAK AND WHISKY 29
market
5. Recent or planned entrance Large firms Rumors that large No larger firms
of large firms into the entering firms may be entered the
market the market entering the market or
market are rumored
to be enter-
ing the
market
Organizational Feasibility
Management Prowess
Low Potential Moderate Potential High Potential
1. Passion for the business Low Moderate High
idea
2. Relevant industry None Moderate Extensive
experience
3. Prior entrepreneurial None Moderate Extensive
experience
4. Depth of professional and Weak Moderate Strong
social networks
5. Creativity among manage Low Moderate High
-ment team members
6. Experience and expertise in None Moderate High
cash flow management
7. College graduate No college Some college Graduated or
education education but are currently
STEAK AND WHISKY 30
not currently in in college
college
Resource Sufficient
Ratings Resource Sufficiency
2 Office space
1 Lab space, manufacturing space, or space to launch a
service business
3 Contract manufacturers or outsource providers
1 Key management employees (now and in the future)
1 Key support personnel (now and in the future)
2 Key equipment needed to operate the business
(computers, machinery, delivery vehicles)
3 Ability to obtain intellectual property protection on key
aspects of the business
3 Support of local and state government if applicable for
business launch
2 Ability to form favorable business partnerships
Ratings: Strong, Neutral,
or Weak
_____________N___________ _ Proximity to similar firms (for the purpose of knowledge
sharing)
______________S___________ Proximity to suppliers
STEAK AND WHISKY 31
______________S__________ Proximity to customers
_____________W___________ Proximity to a major research university (if applicable)
Financial Feasibility
Capital Investments Amount
Property _____________15000 per month___________
Furniture and fixtures ___________250000_________________
Computer equipment ____________10000_________________
Other equipment ____________50000________________
Vehicles ________________0____________________
Operating Expenses Amount
Legal, accounting, and professional services _____________3000_______________
Advertising and promotions ______________5000_______________
Deposits for utilities ______________3000________________
Licenses and permits ________________1000________________
Prepaid insurance ________________5000________________
Lease payments ________________7000_______________
Salary and wages _______________40000_______________
Payroll taxes ________________4000________________
Travel __________________0__________________
Signs
Tools and supplies _________________2000________________
Starting inventory _______________10000_______________
Cash (working capital) _______________10000________________
STEAK AND WHISKY 32
Start up Cash Needed
Other expense 1 ____________________________________
Other expense 2 ____________________________________
Total Startup Cash Needed = ______________415,000______________
Estimate of Proposed Venture’s Explanation of How the Estimate
Annual Sales—Year 1 Was Computed
Estimate of Year 1 Sales _6,000,000__ _comparing with similar business____
Summary: How proposed annual sales, on average, ___
compares to similar firms (circle one) ____________________________
Below Average Average Above Average ____________________________
Estimate of Year 2 Sales 7,000,000 __sales went up due to proper marketing channels_____
Summary: How proposed annual sales, on average,
compares to similar firms (circle one) ____________________________
Below Average Average Above Average ____________________________
■ 78 PART II What to Do Before the Business Plan Is Written
Net Income
Estimate of Proposed Venture’s Explanation of How the Estimate
Net Income—Year 1 Was Computed
Estimate of Year 1 Net Income __180,000__ 3% margin of the total sales
STEAK AND WHISKY 33
Comparison of the Financial Performance
Summary: How proposed net income, on average, ________
compares to similar firms (circle one) ____________________________
Below Average Average Above Average ____________________________
Estimate of Year 2 Net Income __210,000_ 3% margin of the total sales
Summary: How proposed net income, on average, ____________________________
compares to similar firms (circle one) ____________________________
Below Average Average Above Average ____________________________
Low Potential Moderate Potential High Potential
1. Steady and rapid growth in Unlikely Moderately likely Highly likely
sales during the first one to
three years in a clearly
defined target market
2. High percentage of recurring Low Moderate Strong
income—meaning that once
you win a client, the client
will provide recurring
sources of revenue
3. Ability to forecast income Weak Moderate Strong
and expenses with a
reasonable degree of
certainty
STEAK AND WHISKY 34
Overall Financial Performance
4. Likelihood that internally Unlikely Moderately likely Highly likely
generated funds will be
available within two years
to finance growth
5. Availability of exit Unlikely to be May be available Likely to be
opportunity for investor unavailable available
if applicable
Low Potential Moderate Potential High Potential
1. Steady and rapid growth in Unlikely Moderately likely Highly likely
sales during the first one to
three years in a clearly
defined target market
2. High percentage of recurring Low Moderate Strong
income—meaning that once
you win a client, the client
will provide recurring
sources of revenue
3. Ability to forecast income Weak Moderate Strong
and expenses with a
reasonable degree of
certainty
4. Likelihood that internally Unlikely Moderately likely Highly likely
generated funds will be
available within two years
STEAK AND WHISKY 35
Overall Analysis
Product/Market Not feasible ______________________________
Feasibility Unsure ______________________________
Feasible ______________________________
Industry/Market Not feasible ______________________________
Feasibility Unsure ______________________________
Feasible ______________________________
Organizational Not feasible Might be hard to hire proper chefs and cooks
Feasibility Unsure ______________________________
Feasible ______________________________
Financial Feasibility Not feasible _
Unsure ______________________________
Feasible ______________________________
Overall Assessment Not feasible ______________________________
Unsure ______________________________
Feasible ______________________________
to finance growth
5. Availability of exit Unlikely to be May be available Likely to be
opportunity for investor unavailable available
if applicable