SAMPLE BUSINESS PLAN

Executive Summary
Fresin Fries is a locally owned fast food outlet that will be
positioned as an international franchise through our creative
approach to the company's image and detail presentation. Fresin
Fries will provide a combination of excellent food at value pricing,
with fun packaging and atmosphere. Fresin Fries is the answer to
an increasing demand for snack-type fast food, to be consumed
while window shopping and walking around inside a shopping
mall.

In today's highly competitive environment, it is becoming

increasingly difficult to differentiate one fast food outlet from
another. Singapore, a city state, is now becoming the model
metropolis for Asia's new economic boom. With more than 11
million visitors yearly, mainly from neighboring countries
(Malaysia, Indonesia, Thailand and the Philippines), Singapore's
retail sector is the strongest in the region.

Our main priority is to establish one outlet in a crowded mall,

preferably in one of prominent shopping malls in Singapore. Later,
our effort will be a further development of more retail outlets in
the surrounding area.

This plan is prepared to obtain a location for the initial launch of

this concept. Additional financing will need to be secured for the
two subsequent outlets, anticipated in month 13 and early in
year three. The financing, in addition to the capital contributions
from shareholders, will allow Fresin Fries to successfully open and
expand through year two. The initial capital investment will allow
Fresin Fries to provide its customers with a value-driven,
entertaining experience through the creativity of its founders.

Fresin Fries will entice youngsters to bring their friends and

family with our innovative environment, fresh-cut Belgian fries,
and selection of unique signature dipping sauces.

Please note that all tables are in Singaporean Dollars (1 USD=

S$1.60)

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1.1 Objectives
 To establish a presence as a successful local fast food outlets
and gain a market share in Singapore's fast food industry.

 To make Fresin Fries a destination spot for mall-goers.

 To expand into a number of outlets by year three, and sell

the franchise to neighboring metropolitan cities, such as
Jakarta, Kuala Lumpur, Bangkok and Manila.

1.2 Mission

Our main goal is to be one of the most successful fast food outlets
in Singapore, starting with one retail outlet located inside a major
shopping mall as a "market tester."

Fresin Fries will strive to be a premier local fast food brand in the
local marketplace. We want our customers to have the total
experience when visiting our outlet(s) and website as they will
learn about this fascinating new "pop culture." We will sell
merchandise from pre-packaged sauces and t-shirts, to potato
cutters, all with our official brand attached to them.

Our main focus will be serving high-quality food at a great value.

1.3 Keys to Success

To succeed in this business we must:

 Create a unique, innovative, entertaining menu that will

differentiate us from the rest of the competition.

 Control costs at all times, in all areas and implement a

conservative approach to growth policy. Although, we provide
 more than enough fund to open more than one outlet, we
want to be on the safe side of the business.

 Sell the products that are of the highest quality, as well as

keeping the customers happy with all of our product
categories from food to store merchandising.

 Provide 100% satisfaction to our customers and

maintaining the level of excellent services among other
competitors.

 Encourage the two most important values in fast food

business: brand and image, as these two ingredients are a
couple of main drivers in marketing communications.

 Get access to high-traffic shopping malls near the target

market.

 Promote good values of company culture and business

philosophy.

Company Summary
What is Fresin Fries?
Fresin Fries sells gourmet fries in a cone with a choice of sauce.
We use the concept of Belgian Fries, where the fries are all made
from fresh potatoes and fried twice. Our outlet also provides
excellent and friendly customer service to support the ambience of
fun, energetic and youthful lifestyle.

Youthful and fresh surroundings

We will imitate successful establishments, such as Jamba Juice and
Starbucks, which represent the majority of our core target
market, between 18 to 35 years of age. Our store will feature
display cooking of our featured Belgian Fries from cutting to
frying. Our customers will also be able to read our in-house
brochures in regards to all knowledge about Belgian Fries and our
featured sauces. Our store will be decorated with fast food setting,
such as a bright counter and display menu on the wall.

Quality food
Each store will offer nothing but freshly fried Belgian fries,
sandwiches and variety of unique blend sauces, all served with
old-fashioned home-style care.

Open everyday
Our store is open everyday from 10 am to 9 pm.

Variety, variety, variety

A different selection of sauces will be featured every three months
and we will also change our Italian soda flavors to accompany our
fries.

2.1 Company Ownership

Fresin Fries is a privately held company. It will be registered as a
Limited company, with ownership 25% - Guy Fry, 25% - Sam
Sauce, 25% - Carl Cone, 25% - Harry Hip.

Guy Fry and Sam Sauce have more than 10 years of experience in
the food industry. Both are currently employed as Corporate Staff
of Company A.

Sam Sauce holds an MBA degree from University V. A true

entrepreneur by heart, his latest entrepreneurial project is a
diamond store in the heart of Singapore.
Guy Fry holds a BA degree in Graphic Design from the Academy
of Arts. His projects are widely varied from product design to
brand development of several reputable companies.

Harry Hip holds a MS degree from Institute Y. He completed

several projects and served as project manager for multi-national
companies in Singapore.

Carl Cone holds a BS degree from University Z, majoring in

Management and Information Technology. Prior to his return to
Singapore, he has held several management positions in a
U.S.-based IT company.

2.2 Start-up Summary

The retail outlet will be rented at one of the target location
shopping malls. Our preference is Space A, for the main reason of
reaching larger traffic.

Startup requirements will be financed through owner

investments.
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START-UP REQUIREMENTS

Start-up Expenses

Kitchen and Fixtures $21,600

Furniture and Interior $16,500

Legal $3,000

Rent $15,000
Packaging and Stationary $8,500

Contingencies $4,200

TOTAL START-UP EXPENSES $68,800

Start-up Assets

Cash Required $50,000

Other Current Assets $0

Long-term Assets $0

TOTAL ASSETS $50,000

Total Requirements $118,800

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2.3 Company Locations and Facilities

Fresin Fries locations will range in size from 50 – 70 meter

square and will seat from 15 – 25 guests. Our first location will
be on the larger end of this range. The location will feature its own
originality in merchandise display and other brand building
attributes. We will equip the outlet with modern furniture
and aim for cleanliness and an open feeling. We are currently
looking at several possible sites in shopping malls along Orchard
Road.

The space selection will be chosen based upon the following

criteria:

 Community size: minimum of 800,000 people within a

radius of 8 kilometers.

 Tourist destination.

 Easy access.

 Large percentage of teenagers in the community.

All of these qualities are consistent with Fresin Fries' goal of

providing a top quality fast food experience. We want
"word-of-mouth" to be our best form of marketing, where our
customers value our brand as something exciting and cannot wait
to tell their friends and neighbors.

Fresin Fries will directly compete with several fast food joints
inside the chosen shopping mall, including Tori-Q (yakitori
specialist), Bee Che Hiang (chinese sausages), Bread Talk (one of
the most successful bakery franchises), and Pizza Walker (locally
owned pizza chain).

Products
We want to focus only on selling fries. Alcoholic drinks will not be
sold in our outlet, as Fresin Fries promotes a healthy and positive
Singaporean lifestyle. Instead, we will offer Italian Soda to
complement the fries.
In promoting the Fresin Fries lifestyle, we will offer various
merchandise with our logo and colors, from hats to t-shirts to
potato cutters to our signature sauces, so that our customers can
enjoy Fresin Fries at home. Our signature sauce is exclusively
manufactured by Company Q. They can be also purchased at
selected retailers.

3.1 Product Description

Fresin Fries primarily sells fries and our unique dipping sauces.
Main products sold are: Belgian fries, Italian sodas and corporate
merchandise.

Belgian-style fries are available in large (choose 2 dips), small

(choose 1 dip), with addition of garlic Fresin (add S$0.25).

The dips for Belgian style fries can also be served with sandwiches;
they are available in more than 20 flavors:

 Pesto Mayo

 Satay Sauce

 Teriyaki Sauce

 Thai Chili Ketchup

 Creamy Wasabi Mayo

 Roasted Pepper Mayo

 Lava Cheese

 Black Pepper Sauce

 Curry Ketchup

 Barbecue
 Jalapeno Ketchup

 Caribbean Islands

 Traditional Sambal

 Korean BBQ

 Hot Chili Sauce

 Garlic Dip

3.2 Competitive Comparison

Fresin Fries has several advantages over its leading competitors:

 Unique "fusion" concept of dipping sauce.

 We expect a high degree of enthusiasm and offer a fun store

with friendly staff, that reflects the company's youthful and
energetic culture.

 Supporting merchandise items that support the company's

brand building.

 Our fried potato is made 100% fresh, compared to most

fast food outlets that use frozen fries.

 Our dipping sauce is also made fresh without preservatives.

 Our innovative packaging will be more entertaining than

our competitors; a single cone with a cup reserved for dipping
sauce.

Company Clean Value Merchandising Hang Simple Fresh Cool Pop

Out Culture

Fresin Yes Yes Yes Yes Yes Yes Yes Yes

McDonald's Yes Yes Yes Yes Yes No Yes Yes

KFC Yes Yes No Yes No No Yes No

Tori-Q Yes Yes No No Yes Yes No No

Roti Boy Yes Yes No No Yes Yes No No

Bread Talk Yes Yes Yes No Yes Yes Yes No

Bee Che Yes Yes Yes No Yes Yes No No

Hiang

Pizza Yes Yes Yes Yes No Yes Yes Yes

Walker

3.3 Sales Literature

Fresin Fries will use advertising and sales programs to get the
word out to customers.

 2,000 color brochures to be distributed throughout

destination shopping mall and facilities: in-store, cinemas,
area eateries, information during the grand opening in
January 2005.

 Half page magazine reviews in Singapore's lifestyle

magazines that advertise the presence of the outlet.

3.4 Sourcing
Fresh potatoes will be delivered weekly by our distributor directly
from the U.S. We also have an agreement with Company Q to
exclusively manufacture our signature sauces, and all of our
merchandise will be printed and produced by our partner's office
in China.

3.5 Sales Programs

Each opening of Fresin Fries will have, more or less, the same
marketing mix as the others. Below are the programs that we will
develop to open each location.

Grand Opening

Each new outlet will have outdoor signage as soon as possible. We

want the signage to be supported by banners before the opening.

Point of Purchase

We will use "tray toppers" to explain the concept and philosophy

of Fresin Fries. We will also sell gift certificates, announce future
job openings, and possibly mention franchise opportunities.

Direct Mail Piece

A stand-alone piece, folded, will be produced in full color on heavy

weight paper. Inside will be all the important details of Fresin
Fries, explanation of our menu, prices, house of operation and a
locator map.

3.6 Future Products

For now, we will focus on selling fries and signature sauces.
However, as we grow further, we will add new categories to our
menu, such as Belgian Sandwiches and Buffalo Wings.

In the future, our growth strategy will be offering the franchise of

our brand to food entrepreneurs in the region. The success of
Bread Talk franchising in Indonesia is the best example on
growing globally.

Value Meal

Sales of Fresin Fries will not only generated from the selling of its
famous Belgian Fries, but also will be generated by the conception
of an innovative package menu called the "value meal." It
primarily consists of a combination of our featured Belgian Fries,
sandwiches and Italian soda at greater value than selling at
individual items. Further customization could be done by selling a
bigger size of fries called "Uber Fresin" to attract price sensitive
customers.

Private Parties

Brochures and handouts will explain that we can handle banquets

and private parties, in addition to our brochure that will list our
daily entrees.

Market Analysis Summary

Consumer expenditures for fast food in Singapore rose during the
end of the year 2000, followed by the recovery of Singapore's
economy. The increasing number of new establishments such as
fast food franchises, fancy restaurants and gourmet bakeries
around Singapore has shown a significant growth in this sector.
Food spending is around 56% of total consumer expenditures in
Singapore, and consumer spending on leisure and recreation
made up of 13% of total consumer spending.

A much broader appeal exists for weekend slots because those are
the days when most of our core target market enjoys the mall
going activities.

 Age - Youngsters, single, currently enrolled in college and

high school.

 Family unit - We will also appeal to families (young families)

with children.

 Gender - We will target both sexes, with a slight skew for

males due to their lower attention to dietary concerns.

 Income - We will appeal to the medium income individuals

and to all in the lower medium income bracket.

Our concept will have very broad appeal. It is our goal to be the
hip destination for fast food cravings.

According to a recent public survey of people 15 - 45 years old,

80% of those interviewed like fast food. 90% of them like fast food
on a regular basis, and 10% of them claimed that they like fast
food "very much," or "love" fast food. The survey also provided the
following particular reasons for the increasing popularity of fast
food:

 People have 52 weekends and three long holidays a year.

Most of Singaporeans love to window shop, and when they do
 strolling around the shopping district, they need a quick bite
to accommodate their activities.

 White-collar workers in offices have stopped bring lunch,

and enjoy chicken, hamburger, pizza or other fast food joints
in the vicinity.

 Parents give more money to kids and students to buy lunch.

Fast food is naturally their first choice, because of the brand
building effort that heavily targets their age group.

 Eating out still remains as Singaporeans' common habit of

life. They do not perceive fast food is a luxury, and they enjoy
it by bringing their family, especially if they have smaller kids,
in the environment of the western-style fast food outlets.

4.1 Market Segmentation

We are targeting young Singaporeans as our primary

market. Orchard Road is the place to meet and hang out after
school. Due to heavy extra-curricular activities among Singapore's
youth, it is common for high schoolers to have lunch inside
shopping malls, and not at home. They tend to flock to fast food
joints inside shopping malls across Orchard Road.

Our secondary market segment is the "Working Singaporeans."

With so many shopping malls in the vicinity, Orchard Road is the
haven for shoppers and job seekers alike. In the new Paragon
Shopping Centre, there are more than 8,000 workers currently
working as sales persons and boutique staff. There are more than
10 major shopping malls across Orchard Road, including Ngee
Ann City, the biggest shopping mall in the nation, employing
more than 50,000 workers.
Lastly, Orchard Road is also the destination for tourists staying in
the area. The Meritus Mandarin, Crown Prince Hotel, the Hilton,
and Popular Hotel are a few of the biggest accommodations in
Singapore. Tourists will stroll Orchard Road, hunting for the latest
trend in fashion and have no time to stop for a full meal during
shopping. Fresin Fries is the alternative for a quick bite while
shopping the fancy boutiques in the area.

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MARKET ANALYSIS
 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Potential Growth CA
Customers

Young 15% 5,000,000 5,750,000 6,612,500 7,604,375 8,745,031 15.0

Singaporeans

Working 10% 3,000,000 3,300,000 3,630,000 3,993,000 4,392,300 10.0

Singaporeans

Tourists 20% 3,800,000 4,560,000 5,472,000 6,566,400 7,879,680 20.0

Total 15.52% 11,800,000 13,610,000 15,714,500 18,163,775 21,017,011 15.5

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4.2 Target Market Segment Strategy

Fresin Fries intends to cater to the bulk of teenagers and

youngsters in Singapore. We have chosen this group for several
important reasons. It is our goal to be "the extraordinary fast food
place" and we believe that the age group from 15 to 25 is the
primary age where brand building efforts could take place. They
are on limited or fixed incomes and seek a value/price relationship
that will not stretch their budgets.

Our secondary target is between the ages of 25 and 37, which

are a heavy lounge/restaurant user group. They are more flexible
in budgets and seek more than a value/price relationship.
Our lunch strategy is dual purposed. First, we are featuring fresh
fries to fill Singapore's craving for fast food as most ideas of lunch
is a quick bite not a heavy meal.

Second, we want to keep the price point at lunch as fair as

possible to keep us in competition with other fast food outlets. At
S$4.00 for a medium size fries, we are only slightly above the
segment, but we offer much more excitement than the rest of the
competition.

4.2.1 Market Needs

Fresin Fries sees our targeted market group as having many
"makan" (eating) Singaporean Dollar needs. A recent Consumer
Trend and Analysis by Euromonitor identified the following needs
among our target markets. Our core group:

 Wants variety and flavor in its food, preferably something

fried

 Looks for speed of service

 Wants an entertaining and fun experience

 Insists upon a clean, friendly, and attractive environment

 Adopts a global lifestyle

 Is computer literate

 Enjoys eating out

 Has an active lifestyle

 Comes from various ethnic backgrounds

According to a GAIN Report published in 2000, potatoes are the

second largest commodity of US exports to Singapore after fresh
fruit, valuing almost USD $13 million per annum. This is caused
by the increasingly younger demographic and rising incomes
throughout Singapore that have led to lifestyle changes that are
influencing consumer purchases, food, and entertainment choices.
Some changes taking place include a larger professional class with
more working women, which means greater disposable incomes.

4.2.2 Market Trends

In the past, Singaporeans preferred Western chain restaurants.

This was the time when KFC, McDonald's, Long John Silver's and
Pizza Hut were dominating most of the chains. But the trend
seems to have shifted in the last decade, with the success of the
locally grown brands, such as Bread Talk and Bee Che Hiang.
Many of these local brands grew to become giant franchises that
dominate the Southeast Asia region. For instance, Bread Talk
controls 55% of Indonesia's bakery market.

The key to success for these foreign chains was mainly due to the
popularity of Singapore as tourist destination for these countries.
Tourists are the strongest "buzzer." Usually after they went back
from vacationing in Singapore, they told friends and families
about new things in Singapore, including new shopping malls, new
boutiques, new restaurants, and new fast food joints. The
fascination of Asian tourists coming to Singapore has positioned
the city itself as an aspiration to modern life in the region.

Many local entrepreneurs camouflaged their retail stores as an

international brand in accordance to what they sell. For instance,
there is a local entrepreneur who created a Japanese name to sell
yakitori (Japanese BBQ meat skewers), and there is a fashion
boutique named after an old Italian movie.
4.3 Industry Analysis
Despite the prolonged effects of the Asian Economic Crisis followed
by political turmoil up to mid 2001, Singapore's food service
industry witnessed growth over 2000/2001 at 4 - 5% in terms
of units and transaction (Euromonitor). Much of this growth was
contributed by the cafes/bars, fast food, and food retail sectors,
whose wide appeal amongst a young population, for whom time is
of a premium, led to high levels of growth. This growth is
underpinned by market demand and lifestyle changes, such as
seeing eating out as part of trendy lifestyle.

Entry of major multi-national food service operators into major

shopping destination in the late 1980s until the 1990s led to
growth in competition in the marketplace, mainly from fast food
chains. This stimulated the rise in the number of fast food units,
both of international and local chains, that started in the early
1990s. Although there was a slowdown during the economic crisis
in 1998, the food service industry recovered faster than others,
particularly during 2000 and 2001. Recent bombing tragedies
have also proven that negative effects on this sector are
moderately short-term.

Franchising became popular in the food service industry through

the introduction and entry of multi-national food service brands,
primarily U.S.-owned enterprises, such as KFC, Pizza Hut and
McDonald's. Currently, there are many local chains that have also
experienced growth by applying this system to their operations.

4.3.1 Trends in Food Service Retail

According to government surveys, Singapore's spending on "eating

out" is continuing to increase. Spending on cooked food as a
percentage of total average food-spend reached 55% in 1998.
The growth in spending in the food service sector arises from a
number of factors:

 Increased affluence amongst Singaporeans, especially those

under the age of 40 years.

 Increases in the number of expatriate residents, which has

more than doubled since 1988.

 Increased convenience-seeking amongst younger

Singaporeans who live in a hectic city today compared to the
much slower pace of life that existed 20 years ago.

When they want convenient cooked food, Singaporeans have long

turned to the local hawker stalls, rather than prepared
ready-to-cook or ready-to-eat processed convenience foods. As
the numbers and variety of food service outlets has increased in
Singapore, locals have adopted the convenient products of other
food service outlets, especially the fast food outlets, as alternative
sources of convenient cooked food. Younger middle and upper
income group families and individuals are also frequent users of
the full service restaurants, modern-style coffee shops and cafés
that now exist all across Singapore.

Over the past 5 years, there has been a general upgrading in the
food service sector which has seen the establishment of more air
conditioned food centers (food courts) that are considerably
cleaner than the traditional hawker markets. At the same time,
increased investment from foreign and local businesses in the
sector has also produced an increase in the numbers of:

 Foreign chains, including chains such as Outback Steakhouse.

 Modern retail bakery/café outlets such as Bread Talk.

 Modern coffee shops such as Starbucks.

4.3.2 Competition and Buying Patterns

The competition in this arena is the fiercest in all other

metropolitan areas in SE Asia. Singapore is a compact city, but
has a lot to offer. Usually there are a minimum of two of the same
outlets within a radius of less than 300 meters. For instance,
Bread Talk opens one outlet inside the Ngee Ann City Shopping
Centre and another just across the street inside the Far East Plaza
Shopping Centre. It is quite common for retailers to implement
this kind of strategy, due to the high volume of people strolling
around the main area of Orchard Road.

Another reason is because many retailers do not want to lose sales

opportunity, as the competitors are offering substitutions and
similar product categories. This phenomenon has made Singapore
the best place to shop. If you just missed Häagen Dazs waffle at CK
Tang Shopping Mall, there is another Häagen Dazs across the
street at the new Paragon Shopping Centre.

4.3.3 Main Competitors

Our main competitors in this segment are any food outlets within
the 300 meter radius along the Orchard Road. In our location,
there are Tori-Q, Pizza Walker, Starbucks, Bread Talk, and
Rotiboy.

Tori-Q
Tori-Q is locally owned franchise who sells Japanese BBQ skewers.
Established in 1998, Tori-Q had expanded its operation into
neighboring countries, Indonesia, Malaysia, and Thailand. Tori-Q
is popular among local teenagers as it offers fast service to its
customers. Commonly, Tori-Q outlets are rather small, and can
only serve a maximum of 6 guests. It is a choice for those who are
in a hurry and would like to grab a quick lunch on the way.

Pizza Walker
Pizza Walker is a joint venture positioned as gourmet pizza joint
in Singapore. Most of its retail outlets are decorated with
welcoming ambience, such as flowers and see-through kitchens.
Pizza Walker is a good place to hang out, and the place is always
full during lunch hour. It has more than enough tables to serve a
maximum of 55 guests. Its specialty is all-you-can-eat pizza!

Starbucks
Starbucks' strategy entering the lunch market had made some
impact in Singapore. Usually, a lunch menu in Singapore consists
of "fried and BBQ stuff" such as roast pork with rice or the Big
Mac. Starbucks is one of the first food retailers that popularized
"light and healthy" alternatives such as salad or lean sandwich as
an options for Singapore's lunch accommodations.

Bread Talk
As the most successful franchiser in Singapore, Bread Talk is
surely becoming a threat for most food retailers. Bread Talk not
only rented most of the retail space along Orchard Road, but now
they are doing delivery to offices and apartments nearby. Bread
Talk outlets usually consist of a huge see-through kitchen, and
bread trays ready for pick-up by customers, with three or four
cashiers at front, to speed up the queue. Rumor has it that Bread
Talk sold more than 35,000 breads each day in just one of their
retail outlets.

Rotiboy
A Malaysian franchise. Rotiboy is quite popular in the region as it
is now expanding into several cities in Indonesia, Vietnam,
Thailand, and the Philippines. Rotiboy offers simplicity for quick
lunch franchiser, and often considered alternatives for its long
queueing rivals.

4.3.4 Foreign Vs. Local Franchising

Around 40% of the franchises operating in Singapore are foreign.
Home grown franchises are still in their maturing stages as they
start to expand globally. Franchises from the U.S. account for 65%
of foreign brands, with big players such as KFC, Starbucks, Pizza
Hut, etc. Due to high capital investment, Singapore conglomerates
tend to dominate the industry.

Home grown franchises are more often sought more by young

entrepreneurs than are their Western counterparts, as they offer
greater flexibility and lower franchise fees to operate. Unlike
Western license holders, home grown franchises are more efficient
in the overall supply chain management as the basic raw
ingredients are commonly found anywhere in the region.

Strategy and Implementation Summary

At first, we will open one outlet inside the New Paragon Shopping
Centre. This will become our "market testing area," and as we go
further, Fresin Fries is planning to open another in nearby
shopping malls. In attracting customers to try our fries, we will
provide a see-through kitchen, so that people will see how we are
committed to freshness in our products.

The kitchen will also let out an aroma of our freshly fried fries into
the surroundings area, so that people will come and try our
products.

5.1 Competitive Edge

 Our unique dipping sauces blend local taste and

international into one fusion recipe for the signature sauce.

 Enthusiastic and friendly staff

 Supporting merchandise items that support company's

brand building.

 Our fries are made of 100% fresh potatoes, unlike the

frozen fries used by competitors.

 Innovative packaging will position us at the same level with

foreign fast food franchises.

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5.2 Marketing Strategy

Our strategy is based on serving our markets well. We will start
our first outlet as a "market tester" that could become a model of
the expanding number of outlets in the future. Concentration will
be on maintaining quality and establishing a strong identity in the
local market.

A combination of local media and local store marketing programs

will be utilized at each location. Local store marketing is most
effective, followed by print ad. As soon as a concentration of stores
is established in a market, then broader media will be explored.
We believe, however, that the best form of advertising is still
"buzz." By providing a fun and energetic environment, with
unbeatable quality at an acceptable price in a clean and friendly
outlet, we will be the talk of the town. Therefore, the execution of
our concept is the most critical element of our plan. We will
actively build our brand, through the selling of supporting
materials, such as merchandise, promotional items and other
marketing gimmicks similar to those of other fast food franchises.

5.2.1 Pricing Strategy

Our pricing strategy is positioned as "generic", meaning that

S$4.00 is the average consumer spending for a snack or light
lunch in Singapore. Leveraging the volume of fries, Italian Soda,
and signature style sauces to be sold, we are serving the majority
of Singaporeans.

5.2.2 Brand Challenges

Fresin Fries must establish a distinct brand to stand out from the
other Western-style fast food competitors.

 Our logo is distinct as fresh, energetic and playful with color

elements that are eye catching.

 Product names are geared toward the target market (teens),

with items such as "Frenzy Fresin" and "Uber Fresin" which are
fun and easy to remember.

5.2.3 Marketing Programs

We will deploy three different marketing tactics to increase
customer awareness of Fresin Fries. Our most important tactic
will be "word-of-mouth" and in-store marketing. This will be by
far the cheapest and most effective of our marketing
programs because of the high traffic in targeted shopping
locations.

The second tactic will be local store marketing. These will be

low-budget plans that will provide community support and
awareness of our facility. The last marketing effort will be utilizing
local media. Although, this will be the most costly, this tactic will
be used sparingly as a supplement where necessary.

 In-Store Marketing

 In-store brochures containing our concept and

philosophy.

 Wall posters.

 Design concept.

 In-store viewing of making fries process from cutting

to frying.

 Standing signage inside malls’ lobby/aisle.

 Outdoor signage (if possible).

 Grand opening promotion.

 Party catering.

 Merchandising items.
 Local Store Marketing

 Brochures.

 Free occasional t-shirts at local stores events.

 Local Media

 Direct mail piece – containing brochures sent to

surrounding addresses.

 Web page – containing company philosophy, history

and news.

 Local magazines that target our core customers, such

as Free! Magazine.

 Newspaper campaign – placing several large ads

throughout the month to explain our concept to the local
area.

5.2.4 Positioning Statement

Our main focus in marketing will be to increase customer

awareness in the surrounding community. We will direct all of our
tactics and programs toward the goal of explaining who we are
and what we are all about. We will price our products fairly, keep
our standards high, and execute the concept so that
“word-of-mouth” will be our main marketing force.

5.3 Sales Strategy

The sales strategy is to build and open new locations in order to

increase revenue. However, this plan will be implemented when
the one "market tester" outlet showed potential growth. As each
individual location will continue to build its local customer base
over the first three years of operation, the goal of each store
is S$104,250 in annual sales, with the original flagship store
expected to earn almost S$200,000 per year.

5.3.1 Sales Forecast

We anticipate the highest peak on the months of November and

December in our sales forecast, due to the holiday seasons. In
November, there is Ramadan, and for non-muslim Malaysians
and Indonesians, it means vacation time. Approximately 1.5
million Indonesians visit Singapore each year, mostly for shopping
and dining. Then in December, we anticipate more tourists
coming into Singapore; this explains the jumped of sales in these
last two months of the year.

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SALES FORECAST

YEAR 1 YEAR 2 YEAR 3

Unit Sales

Belgian Fries 49,464 98,928 197,856

Italian Soda 27,692 55,384 110,768

Merchandising 3,889 7,778 15,556

Signature Packaged Sauces 3,356 6,712 13,425

TOTAL UNIT SALES 84,401 168,802 337,605

Unit Prices Year 1 Year 2 Year 3

Belgian Fries $4.00 $4.00 $4.00

Italian Soda $1.50 $1.50 $1.50

Merchandising $8.50 $8.50 $8.50

Signature Packaged Sauces $2.00 $2.00 $2.00

Sales

Belgian Fries $197,856 $395,712 $791,424

Italian Soda $41,538 $83,076 $166,152

Merchandising $33,057 $66,114 $132,228

Signature Packaged Sauces $6,712 $13,425 $26,849

TOTAL SALES $279,163 $558,327 $1,116,654

Direct Unit Costs Year 1 Year 2 Year 3

Belgian Fries $0.80 $0.80 $0.80

Italian Soda $0.15 $0.15 $0.15

Merchandising $3.83 $3.83 $3.83

Signature Packaged Sauces $1.00 $1.00 $1.00

Direct Cost of Sales

Belgian Fries $39,571 $79,142 $158,285

Italian Soda $4,154 $8,308 $16,615

Merchandising $14,876 $29,751 $59,503

Signature Packaged Sauces $3,356 $6,712 $13,425

Subtotal Direct Cost of Sales $61,957 $123,914 $247,827

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5.4 Strategic Alliances

Our business requires a long relationship with raw suppliers as well

as partner vendors. In Chinese, this relationship is called "guanxi,"
meaning business bonding. We already have a long and good
standing relationship with Company V in our previous ventures.
For Company Y, Mr. Joe Shmo, the managing director, is a
prominent figure in the society and we hope to strengthen further
our business relationship with him and the company.

5.5 Milestones
During the initial set up of the company, the 4 founders (Guy Fry,
Harry Hip, Sam Sauce, and Carl Cone) will conduct the planning
and implementation in building the brand and the construction of
our first outlet. The planning and construction will take
approximately 8 months, in addition to the revision and
refinement process that will take the rest of the 12 month period
before our opening in early 2005.

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MILESTONES

Milestone Start Date End Date Budget Manager Department

Presentation 1/12/2004 3/12/2004 TBD Carl Cone Business

materials for all Development
stakeholders

Follow up with 1/21/2004 3/22/2004 $100 Sam Business

suppliers Sauce Development

Follow up with 1/21/2004 9/8/2004 $50 Sam Business

developers Sauce Development

Printing materials 2/13/2004 4/10/2004 $8,000 Guy Fry Marketing

Marketing 2/21/2004 6/23/2004 TBD Sam Marketing

communication Sauce
program

Constructions 5/22/2004 12/3/2004 TBD Harry Hip Business

Development

In store signage, 5/23/2004 10/11/2004 TBD Guy Fry Marketing

POP

Grand opening 6/2/2004 10/13/2004 TBD Guy Fry Marketing

materials

Hiring staff 7/14/2004 8/12/2004 $900 Harry Hip Human

Resources

Open second 7/1/2005 7/1/2005 $10,000 Carl Cone Business

location Development

Open 3rd and 4th 1/1/2006 6/1/2006 $15,000 Carl Cone Business
locations Development

Open 5th, 6th, and 1/1/2007 12/31/2007 $20,000 Carl Cone Business
7th locations Development

Training staff 9/12/2004 12/10/2004 $1,000 Harry Hip Human

Resources

Totals $55,050

Web Plan Summary

The website will, of course, show visitors everything about Belgian
food culture, including the history of french fries over time. To
make the website interactive, Fresin Fries will offer gift cards and
promotions via the Internet, so our visitors can print the
promotional coupon in PDF format and bring it when they visit
Fresin Fries. Visitors can also download Fresin Fries' theme song as
ring tones, or order potato cutters for delivery.

Besides the traditional formats of customer service hotline and

in-store form, customers can now write their comments and
suggestions on our website, which will be directed to one of our
staff.

So, the website itself will act as the medium between our
company and our audience.

In the future, our website will show information on

franchising/licensing our brand name.

6.1 Website Marketing Strategy

We will leverage the visibility of our shopping mall's website by
getting them to include a link to ours. We will also post banners
on an official Singapore tourism website.

6.2 Development Requirements

To adequately serve our audience, the front end strategy of our

website should be parallel with our corporate color. The front end
design of our website will be entirely trusted to Mr. Guy Fry.

The diversity of founders' background in our company has enabled

a cost efficient development in our venture. As Mr. Harry Hip and
Mr. Carl Cone are experts in Information Technology, the back
end of our website will be developed by these gentlemen.

Management Summary
The initial management team depends on the founders themselves,
with little back-up. As we grow, we will take on additional help in
certain key areas. Part of our basic philosophy will be able to run
our executive management as a "knowledge sharing" fellowship.
We will not add additional overhead until absolutely necessary.
This will mean that the initial staff support team will have to
work extra. By doing this, we will keep our overhead as low as
possible, allowing us to adequately staff our outlets. This will also
allow us and future business partners to recoup investments as
quickly as possible and enjoy a higher return.

At present time, Fresin Fries is being owned by its 4 founders.

Others that have helped on the development of this business
venture will be offered an opportunity to grow together with the
company at the appropriate time, and when the time comes, the
4 founders’ share will be consolidated as one entity.

7.1 Management Team

Fresin Fries is currently the creative idea of its four founders. As

the company is small in nature, it only requires a simple
organizational structure. Implementation of this organization
form calls for all four individuals to make all major management
decisions in addition to monitoring all other business activities.

As we expand into multiple locations, each location will have a

primary site manager.

7.2 Organizational Structure

Future organizational structure will include a director of store

operations when the store locations exceed four units. We hope
that this individual will come out of the ranks of our stores’
management. This will provide a supervisory level between the
executive level and the store management level.

Current plan is to have our accounting and payroll functions done

by an in-house bookkeeping. Mr. David Lu will be responsible for
accounting and business development of Fresin Fries, helped by Mr.
Harry Hip, acting Head of Human Resources Division. Possible
positions might be added at a later date include marketing
manager, purchasing manager, controller, human resources, R&D
and administrative support team.
7.3 Personnel Plan

Our initial employees will include two cashiers, two cooks and two
bus boys per location, with one of each on the premises during
open hours. This is considered an ideal personnel number for a
food outlet the size of our own. Each employee will work for
38-40 hours per week.

In the long run, as we expand our product category and retail

outlets, we will employ more people in the middle management to
ensure the focus of our work, including site managers.

PERSONNEL PLAN

YEAR 1 YEAR 2 YEAR 3

Site Managers $0 $60,000 $96,000

Cashiers $36,000 $80,000 $144,400

Cook $28,800 $66,000 $115,200

Busboy $23,400 $56,000 $94,000

TOTAL PEOPLE 12 26 40

Total Payroll $88,200 $262,000 $449,600

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PLAN OUTLINE

 1.0 Executive Summary

 2.0 Company Summary
 3.0 Products
 4.0 Market Analysis Summary
 5.0 Strategy and Implementation Summary
 6.0 Web Plan Summary
 7.0 Management Summary

 Management Team
 Organizational Structure
 Personnel Plan
 8.0 Financial Plan
 Appendix

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Financial Plan
The company is now privately held by Harry Hip, Guy Fry, Carl
Cone, and Sam Sauce. Future shares will be offered after two
consecutive years of operating in Singapore.

8.1 Start-up Funding

Currently, the company is owned by the original 4 founders, who
each will contribute $200,000 for the same amount of share,
25%. This will more than cover start-up requirements, and
provide the business with a cash cushion to use for expansion over
the first three years.

START-UP FUNDING

Start-up Expenses to Fund $68,800

Start-up Assets to Fund $50,000

TOTAL FUNDING REQUIRED $118,800

Assets

Non-cash Assets from Start-up $30,000

Cash Requirements from Start-up $50,000

Additional Cash Raised $681,200

Cash Balance on Starting Date $731,200

TOTAL ASSETS $761,200

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

TOTAL LIABILITIES $0

Capital

Planned Investment

Eric Yam $200,000

Martin Ng $200,000

David Lu $200,000

Sagita Suwandi $200,000

Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $800,000

Loss at Start-up (Start-up Expenses) ($68,800)

TOTAL CAPITAL $731,200

TOTAL CAPITAL AND LIABILITIES $731,200

Total Funding $800,000

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8.2 Break-even Analysis

Our break-even analysis shows that we need unit sales over 9,700
per month to break even. We do not expect to begin turning a
profit until year three.

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BREAK-EVEN ANALYSIS
Monthly Units Break-even 9,706

Monthly Revenue Break-even $32,104

Assumptions:

Average Per-Unit Revenue $3.31

Average Per-Unit Variable Cost $0.73

Estimated Monthly Fixed Cost $24,979

8.3 Projected Profit and Loss

As the Profit and Loss shows, Fresin Fries will run at a loss for the
first two years, using up some of the cash reserves initially
invested by the founders. As sales increase, we will expand into
new locations to aggressively spread brand recognition. This
increase in visibility will allow us to take up less expensive locations
off of Orchard Road, while maintaining our flagship operation, the
first store, in a prime spot.
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PRO FORMA PROFIT AND LOSS

YEAR 1 YEAR 2 YEAR 3

Sales $279,163 $558,327 $1,116,654

Direct Cost of Sales $61,957 $123,914 $247,827

Other Costs of Sales $0 $0 $0

TOTAL COST OF SALES $61,957 $123,914 $247,827

Gross Margin $217,207 $434,413 $868,826

Gross Margin % 77.81% 77.81% 77.81%

Expenses

Payroll $88,200 $262,000 $449,600

Marketing/Promotion $10,000 $10,000 $10,000

Depreciation $0 $0 $0

Rent $174,000 $248,000 $298,000

Utilities $2,550 $5,000 $8,000

New location setup $25,000 $50,000 $50,000

Total Operating Expenses $299,750 $575,000 $815,600

Profit Before Interest and Taxes ($82,543) ($140,587) $53,226

EBITDA ($82,543) ($140,587) $53,226

Interest Expense $0 $0 $0

Taxes Incurred $0 $0 $0

Net Profit ($82,543) ($140,587) $53,226

Net Profit/Sales -29.57% -25.18% 4.77%

8.4 Projected Cash Flow

The following chart and table show the Projected Cash Flow for
Fresin Fries.

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PRO FORMA CASH FLOW

YEAR 1 YEAR 2 YEAR 3

Cash Received

Cash from Operations

Cash Sales $279,163 $558,327 $1,116,654

SUBTOTAL CASH FROM OPERATIONS $279,163 $558,327 $1,116,654

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

SUBTOTAL CASH RECEIVED $279,163 $558,327 $1,116,654

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $88,200 $262,000 $449,600

Bill Payments $244,265 $430,245 $599,286

SUBTOTAL SPENT ON OPERATIONS $332,465 $692,245 $1,048,886

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

SUBTOTAL CASH SPENT $332,465 $692,245 $1,048,886

Net Cash Flow ($53,301) ($133,918) $67,767

Cash Balance $677,899 $543,981 $611,748

8.5 Projected Balance Sheet

Fresin's projected company balance sheet follows. We expect to
run at a loss for the first two years, decreasing our net worth
slightly. As the operation becomes more profitable in the third
year, our net worth rises again.

PRO FORMA BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3

Assets

Current Assets

Cash $677,899 $543,981 $611,748

Other Current Assets $0 $0 $0

TOTAL CURRENT ASSETS $677,899 $543,981 $611,748

Long-term Assets

Long-term Assets $0 $0 $0

Accumulated Depreciation $0 $0 $0

TOTAL LONG-TERM ASSETS $0 $0 $0

TOTAL ASSETS $677,899 $543,981 $611,748

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $29,242 $35,911 $50,452

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $29,242 $35,911 $50,452

Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $29,242 $35,911 $50,452

Paid-in Capital $800,000 $800,000 $800,000

Retained Earnings ($68,800) ($151,343) ($291,930)

Earnings ($82,543) ($140,587) $53,226

TOTAL CAPITAL $648,657 $508,070 $561,296

TOTAL LIABILITIES AND CAPITAL $677,899 $543,981 $611,748

Net Worth $648,657 $508,070 $561,296

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8.6 Business Ratios

The following table outlines some of the more important ratios

from the Fast Food Restaurants and Stands industry. The final
column, Industry Profile, details specific ratios based on the
industry as it is classified by the Standard Industry Classification
(SIC) code 5812.

RATIO ANALYSIS
 YEAR 1 YEAR 2 YEAR 3 INDUSTRY
PROFILE

Sales Growth 0.00% 100.00% 100.00% 8.67%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 37.31%

Total Current Assets 100.00% 100.00% 100.00% 45.97%

Long-term Assets 0.00% 0.00% 0.00% 54.03%

TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%

Current Liabilities 4.31% 6.60% 8.25% 17.94%

Long-term Liabilities 0.00% 0.00% 0.00% 22.26%

Total Liabilities 4.31% 6.60% 8.25% 40.20%

NET WORTH 95.69% 93.40% 91.75% 59.80%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 77.81% 77.81% 77.81% 59.05%

Selling, General & Administrative 107.37% 102.99% 73.04% 39.24%

Expenses

Advertising Expenses 0.00% 0.00% 0.00% 1.96%

Profit Before Interest and Taxes -29.57% -25.18% 4.77% 1.92%

Main Ratios

Current 23.18 15.15 12.13 1.04

Quick 23.18 15.15 12.13 0.66

Total Debt to Total Assets 4.31% 6.60% 8.25% 50.22%

Pre-tax Return on Net Worth -12.73% -27.67% 9.48% 6.90%

Pre-tax Return on Assets -12.18% -25.84% 8.70% 13.87%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -29.57% -25.18% 4.77% n.a

Return on Equity -12.73% -27.67% 9.48% n.a

Activity Ratios

Accounts Payable Turnover 9.35 12.17 12.17 n.a

Payment Days 27 27 26 n.a

Total Asset Turnover 0.41 1.03 1.83 n.a

Debt Ratios

Debt to Net Worth 0.05 0.07 0.09 n.a

Current Liab. to Liab. 1.00 1.00 1.00 n.a

 Liquidity Ratios

Net Working Capital $648,657 $508,070 $561,296 n.a

Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios

Assets to Sales 2.43 0.97 0.55 n.a

Current Debt/Total Assets 4% 7% 8% n.a

Acid Test 23.18 15.15 12.13 n.a

Sales/Net Worth 0.43 1.10 1.99 n.a

Dividend Payout 0.00 0.00 0.00 n.a

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Appendix

SALES FORECAST

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12
Unit Sales

Belgian Fries 2% 1,000 1,200 1,440 1,728 2,074 2,488 3,981 4,778 5,733 6,880 8,256 9,907

Italian Soda 2% 650 780 936 1,123 1,348 1,617 2,426 2,790 3,209 3,690 4,243 4,880

Merchandising 2% 100 120 144 160 180 220 299 358 430 516 619 743

Signature Packaged 1% 100 118 139 150 150 150 270 319 376 444 523 618
Sauces

TOTAL UNIT SALES 1,850 2,218 2,659 3,161 3,751 4,476 6,976 8,244 9,747 11,529 13,641 16,147

Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12

Belgian Fries $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00

Italian Soda $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50

Merchandising $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50

Signature Packaged $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00
Sauces

Sales

Belgian Fries $4,000 $4,800 $5,760 $6,912 $8,294 $9,953 $15,925 $19,110 $22,932 $27,519 $33,023 $39,627

Italian Soda $975 $1,170 $1,404 $1,685 $2,022 $2,426 $3,639 $4,185 $4,813 $5,535 $6,365 $7,320

Merchandising $850 $1,020 $1,224 $1,360 $1,530 $1,870 $2,538 $3,046 $3,655 $4,386 $5,263 $6,316

Signature Packaged $200 $236 $278 $300 $300 $300 $540 $637 $752 $887 $1,047 $1,235
Sauces

TOTAL SALES $6,025 $7,226 $8,666 $10,257 $12,146 $14,549 $22,642 $26,978 $32,152 $38,326 $45,697 $54,498

Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month
10 11 12

Belgian Fries 20.00% $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80

Italian Soda 10.00% $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15

Merchandising 45.00% $3.83 $3.83 $3.83 $3.83 $3.83 $3.83 $3.83 $3.83 $3.83 $3.83 $3.83 $3.83

Signature Packaged 50.00% $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Sauces

Direct Cost of Sales

Belgian Fries $800 $960 $1,152 $1,382 $1,659 $1,991 $3,185 $3,822 $4,586 $5,504 $6,605 $7,925

Italian Soda $98 $117 $140 $168 $202 $243 $364 $419 $481 $553 $636 $732

Merchandising $383 $459 $551 $612 $689 $842 $1,142 $1,371 $1,645 $1,974 $2,368 $2,842

Signature Packaged $100 $118 $139 $150 $150 $150 $270 $319 $376 $444 $523 $618
Sauces

Subtotal Direct Cost of $1,380 $1,654 $1,982 $2,313 $2,700 $3,225 $4,961 $5,930 $7,088 $8,474 $10,133 $12,117
Sales

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PERSONNEL PLAN

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12

Site 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Managers

Cashiers 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000

Cook 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200

Busboy 0% $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $2,600 $2,600 $2,600 $2,600 $2,600 $2,600

TOTAL 6 6 6 6 6 6 12 12 12 12 12 12
PEOPLE

Total $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $9,800 $9,800 $9,800 $9,800 $9,800 $9,800
Payroll

PRO FORMA PROFIT AND LOSS

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12

Sales $6,025 $7,226 $8,666 $10,257 $12,146 $14,549 $22,642 $26,978 $32,152 $38,326 $45,697 $54,498

Direct Cost of Sales $1,380 $1,654 $1,982 $2,313 $2,700 $3,225 $4,961 $5,930 $7,088 $8,474 $10,133 $12,117
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

TOTAL COST OF $1,380 $1,654 $1,982 $2,313 $2,700 $3,225 $4,961 $5,930 $7,088 $8,474 $10,133 $12,117
SALES

Gross Margin $4,645 $5,572 $6,684 $7,944 $9,447 $11,325 $17,681 $21,048 $25,063 $29,852 $35,565 $42,381

Gross Margin % 77.10% 77.11% 77.13% 77.45% 77.77% 77.84% 78.09% 78.02% 77.95% 77.89% 77.83% 77.77%

Expenses

Payroll $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $9,800 $9,800 $9,800 $9,800 $9,800 $9,800

Marketing/Promotion $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000

Utilities 15% $125 $125 $125 $125 $125 $125 $300 $300 $300 $300 $300 $300

New location setup $0 $0 $0 $0 $0 $25,000 $0 $0 $0 $0 $0 $0

Total Operating $17,858 $17,858 $17,858 $17,858 $17,858 $42,858 $27,933 $27,933 $27,933 $27,933 $27,933 $27,933
Expenses

Profit Before Interest ($13,213) ($12,286) ($11,174) ($9,914) ($8,412) ($31,534) ($10,252) ($6,885) ($2,870) $1,919 $7,631 $14,447
and Taxes

EBITDA ($13,213) ($12,286) ($11,174) ($9,914) ($8,412) ($31,534) ($10,252) ($6,885) ($2,870) $1,919 $7,631 $14,447

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($13,213) ($12,286) ($11,174) ($9,914) ($8,412) ($31,534) ($10,252) ($6,885) ($2,870) $1,919 $7,631 $14,447

Net Profit/Sales -219.30% -170.03% -128.94% -96.66% -69.25% -216.74% -45.28% -25.52% -8.93% 5.01% 16.70% 26.51%

PRO FORMA CASH FLOW

MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
1 2 3 4 5 6 7 8 9 10 11 12

Cash Received

Cash from
Operations

Cash Sales $6,025 $7,226 $8,666 $10,257 $12,146 $14,549 $22,642 $26,978 $32,152 $38,326 $45,697 $54,498

SUBTOTAL $6,025 $7,226 $8,666 $10,257 $12,146 $14,549 $22,642 $26,978 $32,152 $38,326 $45,697 $54,498
CASH FROM
OPERATIONS

Additional Cash
Received

Sales Tax, VAT, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

HST/GST
Received

New Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-free)

New Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets

Sales of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Assets

New Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received

SUBTOTAL $6,025 $7,226 $8,666 $10,257 $12,146 $14,549 $22,642 $26,978 $32,152 $38,326 $45,697 $54,498
CASH
RECEIVED

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Expenditures
from Operations

Cash Spending $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $9,800 $9,800 $9,800 $9,800 $9,800 $9,800

Bill Payments $478 $14,347 $14,623 $14,952 $15,284 $16,509 $40,580 $23,127 $24,102 $25,268 $26,663 $28,332

SUBTOTAL $5,378 $19,247 $19,523 $19,852 $20,184 $21,409 $50,380 $32,927 $33,902 $35,068 $36,463 $38,132
SPENT ON
OPERATIONS

Additional Cash
Spent

Sales Tax, VAT, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

HST/GST Paid
Out

Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of
Current
Borrowing

Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment

Purchase Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets

Purchase $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Assets

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

SUBTOTAL $5,378 $19,247 $19,523 $19,852 $20,184 $21,409 $50,380 $32,927 $33,902 $35,068 $36,463 $38,132
CASH SPENT

Net Cash Flow $647 ($12,021) ($10,857) ($9,595) ($8,038) ($6,859) ($27,738) ($5,949) ($1,750) $3,259 $9,234 $16,365

Cash Balance $731,847 $719,826 $708,969 $699,374 $691,336 $684,477 $656,739 $650,791 $649,041 $652,299 $661,534 $677,899

PRO FORMA BALANCE SHEET

MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH MONTH
10 11

Assets Starting
Balances

Current
Assets

Cash $731,200 $731,847 $719,826 $708,969 $699,374 $691,336 $684,477 $656,739 $650,791 $649,041 $652,299 $661,534

Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

TOTAL $731,200 $731,847 $719,826 $708,969 $699,374 $691,336 $684,477 $656,739 $650,791 $649,041 $652,299 $661,534
CURRENT
ASSETS

Long-term
Assets

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation

TOTAL $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
LONG-TERM
ASSETS

TOTAL $731,200 $731,847 $719,826 $708,969 $699,374 $691,336 $684,477 $656,739 $650,791 $649,041 $652,299 $661,534
ASSETS
Liabilities and Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Capital

Current
Liabilities

Accounts $0 $13,860 $14,125 $14,443 $14,762 $15,136 $39,810 $22,325 $23,261 $24,381 $25,721 $27,324
Payable

Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

SUBTOTAL $0 $13,860 $14,125 $14,443 $14,762 $15,136 $39,810 $22,325 $23,261 $24,381 $25,721 $27,324
CURRENT
LIABILITIES

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

TOTAL $0 $13,860 $14,125 $14,443 $14,762 $15,136 $39,810 $22,325 $23,261 $24,381 $25,721 $27,324
LIABILITIES

Paid-in $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000
Capital

Retained ($68,800) ($68,800) ($68,800) ($68,800) ($68,800) ($68,800) ($68,800) ($68,800) ($68,800) ($68,800) ($68,800) ($68,800)
Earnings

Earnings $0 ($13,213) ($25,499) ($36,674) ($46,588) ($55,000) ($86,533) ($96,785) ($103,670) ($106,540) ($104,621) ($96,990)

TOTAL $731,200 $717,987 $705,701 $694,526 $684,612 $676,200 $644,667 $634,415 $627,530 $624,660 $626,579 $634,210
CAPITAL

TOTAL $731,200 $731,847 $719,826 $708,969 $699,374 $691,336 $684,477 $656,739 $650,791 $649,041 $652,299 $661,534
LIABILITIES
AND
CAPITAL

Net Worth $731,200 $717,987 $705,701 $694,526 $684,612 $676,200 $644,667 $634,415 $627,530 $624,660 $626,579 $6