This business plan is based on a business research company that is web-based. It can be reformatted into any market or any other business context. It has the financials, marketing plan, and all other business plan requirements and major headings. These major headings may include those similar to the following:
I. Executive Summary
II. General Company Description
III. Products and Services
IV. Marketing Plan
V. Operational
IV. Management and Organization
VII. Personal Financial Statements
VIII. Startup Expenses and Capitalization
IX. Financial Plan
Research Bibliography
2. Table of Contents
I. Executive Summary 04
II. General Company Description 05
2.1 Overview 05
2.2 Legal Description 05
2.3 Company Concept/History 06
2.4 Current Status 06
2.5 Vision & Mission Statement 07
III. Products and Services 08
3.1 Product Description 08
3.2 Service Description 08
IV. Marketing Plan 09
4.1 Industry Overview 09
4.1.1 Market Size 11
4.1.2 Target Market 12
4.1.3 Marketing Objectives 14
4.2 Products/Services 14
4.2.1 Pricing Strategy 15
4.2.2 Promotion Strategy 15
4.2.3 Distribution/Placement Strategy 16
4.3 Competitor Analysis 16
4.4 SWOT Analysis 17
4.5 TOWS Strategy Development 18
V. Operational Plan 20
5.1 Production 20
5.2 Location 20
5.3 Inventories 20
5.4 Suppliers 20
5.5 Exit Strategies 21
IV. Management and Organization 22
6.1 Company Structure & Ownership 22
6.2 Core Management Personnel 22
6.3 Roles & Responsibilities 22
6.4 Salary Structure 23
6.5 Key Success Factors 23
VII. Personal Financial Statements 24
7.1 Personal Financial Statements 24
7.2 Details of Personal Financial Statements 25
VIII. Startup Expenses and Capitalization 27
8.1 Capitalization 27
8.2 Startup Expenses 27
IX. Financial Plan 29
9.1 Primary Assumptions 29
9.2 Summary of Financial Results 29
2
3. 9.3 12 Month Profit/Loss 29
9.4 3 Year Profit Projection 32
9.5 Opening Day Balance Sheet 32
9.6 Break Even Analysis 34
Appendices 35
Appendix 1: Supply Lists 35
Appendix 2: State & Local Requirements 40
Appendix 3: Business Ratios 41
Research Bibliography 43
3
4. I. Executive Summary
Queen’s has been a successful Irish themed bar in the center of downtown
Portland, Oregon for many years but is just now being purchased by Mr. John Milton.
Recently Queen’s has seen a drop in its clientele due to the rise of microbreweries and
micro-beer in the Portland area. In order to successfully compete with this new trend,
Queen’s objectives are to create its own microbreweries on-site and to offer superior
kinds of beers than that of these new competitors. Queen’s was established originally
by Ms. Showalter and over the years has become a well trafficked venue in downtown
Portland. Two years ago, Ms. Showalter put the tavern up for sale and Mr. Milton
intends to purchase it. The company is licensed in the State of Oregon. Queen’s is
located in one of the most outstanding downtown locations in Portland as it is
strategically placed to attract the middle and upper middle-class working clientele during
lunch and after work as well. The building itself is one of the oldest structures still
standing in downtown Portland and has an old world style to it. Queen’s offers a wide
variety of spirits and beers from domestic and imported to wines as well. Additionally,
the tavern offers a limited menu of light food and snacks, and specialty items during the
holidays. Once the onsite brewery begins production, Queen’s will concentrate on ale
production including wheat beers, stouts, and porters as these include the more
traditional types of Irish brews. The tavern intends to initially start with five different
types of beer, eventually increasing to ten. All of the expected brews will have a
different brand name. Mr. Milton is asking for a small business loan in the amount of
4
5. $150 thousand to purchase the tavern and also will assist with the microbrewery’s
startup expenses.
I. General Company Description
2.1 Overview
Queen’s was established in 1982 by Ms. Showalter and over the years has
become a recognized fixture in downtown Portland. This notoriety includes having
articles written about the establishment in various travel magazines and recommended
by the Portland Travel Bureau as one of the most popular drinking establishments in the
city. Several years ago, Ms. Showalter started advertising the tavern as being for sale,
citing poor health and lowering profits. Queen’s is now a sole proprietorship owned and
operated by Ms. Showalter but is being purchased by Mr. Milton. The company is
licensed in Oregon as a legal business entity. Queen’s has been a successful Irish bar
in the heart of downtown Portland, Oregon for many years and as such has a high
degree of visibility. However, recently Queen’s has seen a drop in its clientele due to the
increase in popularity of microbreweries in the Portland area. In order to successfully
compete with this new threat, Queen’s objectives, under the guidance of Mr. Milton are
to create its own microbrewery onsite and to offer superior kinds of beers than that of
these new competitors.
2.2 Legal Description
Queen’s is listed under the official NAICS system as 722410 and is described as
being a, “establishments known as bars, taverns, nightclubs, or drinking places primarily
engaged in preparing and serving alcoholic beverages....”1 Additionally, the legal status
1
“2007 NAICS Definition.” U.S. Census Bureau.< http://www.census.gov/ eos/www/naics/>
5
6. of Queen’s is a subchapter "S" corporation. The company location is in Portland,
Oregon.
2.3 Company Concept/History
While Queen’s has been in operation for many years, Mr. Milton’s dream of
owning a tavern began as a youth when he went to Europe and saw how the locals in
each town or village all congregated in one or two local pubs. He has wanted to
recreate this type of venue in his native Portland since that time and has been saving
the money to do so. Rather than invest in a new startup, Mr. Milton perceives the
opportunity to purchase Queen’s and to upgrade its operations with its own
microbrewery operation as the best strategy to realize his dream.
2.4 Current Status
Queen’s is located at the corner of Salmon St and SE 19th Avenue in Portland
about four blocks from the city center and within walking distance of the city's business
district. This is one of the most outstanding locations for a tavern in Portland as it is
strategically located to attract the middle-class and upper middle-class working clientele
as well as tourists who gather in the downtown area in the afternoon and evening to
walk along the riverfront. The building itself is one of the oldest structures still standing
in Portland and has an old world cachet about it. Presently the establishment can seat
96 customers simultaneously and Queen’s has secured the purchase of the adjacent
storefront for its expansion, and with renovation, will have room for the brewery and
another 24 customers. The current facilities, including two large bars and a fireplace,
6
7. kitchen, and plenty of room for games such as darts, pool, and other amusements make
this an excellent local attraction.
2.5 Vision & Mission Statement
Queen’s vision statement informs the consumer that this is a different kind of
tavern with an emphasis on community and local cultural environment:
“Queen’s will be the place where the locals hang out and visitors meet.”
The mission of Queen’s will be to expand on its vision statement by offering a
more concrete operating statement:
“Queen’s will have a drink for everyone, whether they drink wine, liquor or beer
and they’ll receive it with a smile.”
7
8. III. Products and Services
3.1 Product Description
Queen’s will continue to offer a wide variety of spirits, concentrating on imports
from Ireland such as Harps, Guinness, Erin's Rock, Murphy's Irish Stout, and Wild Irish
Rouge on tap along with Baileys Irish Crème, St. Brendan's and other popular liguors. In
addition, the tavern also offers domestic and other imported beers by the bottle and a
full bar is stocked for all manner of mixed drinks. In the back the tavern has a small
kitchen that offers a limited menu of such things as sandwiches, hamburgers, fish and
chips, and other appetizers. While for holidays such as St. Patrick's Day, the tavern
offers traditional favorites such as Irish stew, leek and potato soup, and corned beef and
cabbage, and such things as turkey dinner and stuffing for Thanksgiving, among many
other examples. Once the tavern begins production, Queen’s will concentrate on ale
production including wheat beers, stouts, and porters as these include the more
traditional types of international brews such as Irish brews. Queen’s intends to initially
start with five different types of beer, eventually increasing to ten or more. All of Queen’s
brews will have a different brand name.
3.2 Service Description
8
9. The service quality at Queen’s will be second to none. All wait, bar, and kitchen
staff will receive a full day’s training on solely how to interact with clientele in a
technique Mr. Milton refers to as the “Queen’s Way.” This is involves getting to know
their names, making eye contact, and responding quickly and politely to all requests.
IV. Marketing Plan
4.1 Industry Overview
Queen’s operates in a highly competitive industry whose environment creates
low margins due to the high amounts of pressure placed upon participants from
customers, suppliers, other rivals, potential market entrants, and participants’ diverse
products. Additionally, the competition around virtually any holiday makes this
competitive profile intense year around. Currently, because traditional alcohol is fully
associated with Thanksgiving, for example, all manner of alcoholic beverage makers
are competing to develop a branded alcoholic beverage that becomes associated with
this and other holidays.2 This has created a fragmented industry in which no one
participant has a significant market share in almost every local or national market.
Customers have a great deal of buyer power and influence in this industry since there
are virtually no switching costs to move from one competitor to another, whether it is a
tavern or a type of alcohol. Customers regularly go to more than one tavern or bar to
socialize and drink. In addition, while this type of bar-hopping is very popular, the overall
quality of the customer's life is unaffected if they choose to forgo pursuing it. Finally,
even with the rise of microbreweries, many customers still find that most taverns have
2
Mullman, Jeremy. “Booze Makers Battle over Turkey Day.” Advertising Age, 78/43(2007): 4-57.
9
10. the products that they seek, making the visit itself undifferentiated from on
establishment to the next.
However, with the rise of microbreweries and the wide variety of microbrews,
many tavern operators see an opportunity to differentiate based on the flavor and
quality of their beers. Research indicates that this is increasingly an effective strategy
since as recently as 2005, the volume of microbrews in the United States (US) market
exceeded 750 thousand barrels and this figure is expected to continue to rise. 3
Furthermore, these suppliers also have a great deal of influence in relation to the
taverns and their operations. Almost all suppliers are regional companies that have a
wide variety of customers including grocery stores, liquor stores, restaurants, caterers,
and similar. This means that any single customer of these distributors makes up a
fraction of their sales and has little influence on their overall prices, quality and terms.
Furthermore, while these distributors often sell a wide variety of products such as
produce, poultry, meat products, tobacco, and other items, taverns are almost solely
dependent upon the distributors for all of their merchandise and products. The only real
strategy to offset this distributor's influence is to reverse-integrate into the supply
industry itself by brewing and marketing an establishment’s own microbrew product.
Since industry growth is relatively small, there is a strong push by all competitors
to gain market share at the expense of other operators. The lack of a differentiated
product or service by most taverns only makes this situation worse and yet, by venturing
into microbrews, Queen’s can attain the same type of profitability other small breweries
have where companies such as Metro Beverages, Inc. in Northern Indiana reached
3
“US Specialty Beer.” Beverage World, 126/7(2007): 18.
10
11. annual sales of $40 million based on a local market of only five counties.4 In this type of
environment, each firm attempts to lower prices, increase services and products and cut
costs. This in turn creates retaliation among rivals and leads to falling profits or even
narrower margins. There are relatively few barriers to entry in the bar and tavern
industry, making the threat of new entrants to the market very real. The capital costs of
starting up a bar or taverns are relatively low and access to distribution channels is quite
easy. Where firms seek advantages is in finding a favorable location, building brand
equity through customer loyalty, creating a unique environment, or, alternatively,
reverse-integration by producing unique products.
4.1.1 Market Size
While the market for well kept taverns and bars is established, the concept of
taverns and bars that contain their own microbrewery is a growing enterprise and
industry. Research reveals that the overall beer industry is relatively flat, the microbrew
industry is strong with almost 1400 unique craft brewers throughout the US, which
includes those located in taverns and sales increased by 7% from 2003 to 2005 alone.5
With this kind of growth, taverns such as Queen’s should absolutely examine
augmenting existing business with their own microbrew products and branding efforts.
Additionally, the Portland, Oregon area is home to fairly significant population that is
acclimated to local alcohol products since the area is also home to a healthy local wine
industry as well. The most recent US census data reveal that the area has a population
of 537 thousand that the population has grown by almost 20% since 1990.6 With this
4
Atkinson, William. “Working Smart.” Beverage World, 125/12(2006): 72.
5
Spaeder, Karen. “Heady Stuff.” Entrepreneur, 34/1(2006): 51.
6
“Portland, Oregon.” U.S. Census Bureau (online). <http://www.census.gov>.
11
12. kind of population growth expected to continue, Portland and the surrounding area can
not only support another microbrew but require. According to the population density
map of the Portland downtown area, Queen’s is located in one of the area’s most
populated areas during the day due to the sheer number of workers who live and work
in the surrounding areas:7
4.1.2 Target Market
7
“Persons Per Square Mile.” U.S. Census Bureau, (online). http://www.census.gov>.
12
13. The market segmentation for Queen’s target market is divided into the leading
market segments for its industry. The division reflects the differences in marketing
strategy that will be used to target each different market and they are as follows:
Middle to upper class white collar office workers from the downtown area.
These are people seeking to have a drink or some quick food during
lunchtime and sometimes want to take out-of-towners to see some of the
local highlights. In addition, the tavern can expect to see these types of
customers dropping in for some hours after work in order relax and discuss
business in a less formal manner.
Late nighters and weekend partiers. These are the type of clientele that drop
by and stay for many hours socializing and drinking for purely entertainment
purposes. Growth of this segment is based on the estimated population
growth of Portland itself viewed previously.
Brew or beer connoisseur. These customers are a relatively new type to the
tavern scene and industry. Although there have been beer connoisseurs all
over since beer was first invented, until recently government regulation was
such that the industry was concentrated within a few national companies such
as Anheuser Busch, Coors, and others that do not brew craft beer. These
companies had few product lines and sought to produce large amounts of
beer over very short time periods in a process that removes the artisan flavor
and context from the industry. Since industry deregulation the industry has
rapidly fragmented, allowing small brewers to compete against the larger
established companies on a local and even national level. All this has inspired
13
14. new connoisseur in brewing that has revolutionized the industry. With so
many new types and brands of beer available, the customer that wants to try
new types is being wooed by all industry participants and Queen’s tap into
this segment’s potential.
Queen’s Market Analysis
2008 2009 2010 2011 2012
Potential Customers Growth CAGR
professional workers 3% 75,000 77,250 79,568 81,955 84,414 3.00%
Late nighters and weekend
3% 435,000 448,050 461,492 475,337 489,597 3.00%
partiers
Beer connoisseur 8% 120,000 129,600 139,968 151,165 163,258 8.00%
Total 4.01% 630,000 654,900 681,028 708,457 737,269 4.01%
4.1.3 Marketing Objectives
The following marketing objectives will guide the marketing strategy formulation
and execution over the next 12 month period:
Meet all first years sales objectives
Increase sales by 10% monthly
Develop a local distribution network for the tavern’s craft beers
Brew five branded microbrews by the end of the first 12 month business cycle
4.2 Products/Services
Queen’s will offer a wide variety of spirits, concentrating on imports from Ireland
such as Harps, Guinness, Erin's Rock, Murphy's Irish Stout, and Wild Irish Rouge on
tap along with Baileys Irish Crème, St. Brendan's and other popular liguors. In addition,
the tavern also offers domestic and other imported beers by the bottle and a full bar is
stocked for all manner of mixed drinks. In the back the tavern has a small kitchen that
14
15. offers a limited menu of such things as sandwiches, hamburgers, fish and chips, and
other appetizers. While for holidays such as St. Patrick's Day, the tavern offers
traditional favorites such as Irish stew, leek and potato soup, and corned beef and
cabbage, and such things as turkey dinner and stuffing for Thanksgiving, among many
other examples. Once the tavern begins production, Queen’s will concentrate on ale
production including wheat beers, stouts, and porters as these include the more
traditional types of international brews such as Irish brews. Queen’s intends to initially
start with five different types of beer, eventually increasing to ten or more. All of Queen’s
brews will have a different brand name.
4.2.1 Pricing Strategy
Queen’s pricing strategy will be competitive. However, the tavern will not
compete on price because this is not necessary in the microbrew industry. Rather, the
tavern’s prices will be reasonable but its products will be exemplary:
Small Mug $1.95
Medium Mug $2.95
Large Mug-the Queen’s Ransom $3.95
4.2.2 Promotion Strategy
Queen’s intends to advertise its new brewery products through newspaper and
magazine articles, focusing primarily on entertainment and lifestyle publications that are
locally produced and printed. In addition the tavern will run ads in local journals and
intends to erect four billboard advertisements. Past experience with other taverns and
breweries indicates that radio is an especially useful tool to this industry and
management plans to run ads with three of the local radio stations most listened to by
15
16. young professionals aged 25-40 with an emphasis on pop-radio. In order to ensure the
maximum efficiency from this campaign, Queen’s has retained the services of an
advertising consulting firm in the Portland area. Advertisements and articles are
scheduled to begin approximately one month after the Mr. Milton takes full possession
of the tavern.
4.2.3 Distribution/Placement Strategy
Queen’s is located at the corner of Salmon St and SE 19th Avenue in Portland
about four blocks from the city center and within walking distance of the city's business
district. All of Queen’s operations will occur in this single location.
4.3 Competitor Analysis
There are a wide variety of bars, restaurants, nightclubs and other direct and
indirect competitors in the Portland downtown area. Some of the closest in terms of
location and quality include the following bars, taverns and nightclubs:
1. Henry’s 12th Street Tavern. This tavern offers the largest threat to Queen’s as it
has created an excellent reputation for its microbrews by regularly stocking a
diverse supply of the area’s best as well as some of the best microbrews
nationally.
2. Nob Hill Bar & Grill. This establishment is located close to Queen’s and it
attracts a niche market of customers who gravitate to is locally recognized dishes
as well as its long standing presence as one of downtown Portland’s most
recognized fixtures.
16
17. 3. Berbati’s Pan Cafe. This is a restaurant/nightclub that attracts national level
entertainers and huge crowds. Its popularity could be a threat to establishing
market share for Queen’s.
Competitor Profile Matrix Berbati’s Pan Henry’s 12th
Queen’s
(CPM) Café Street Tavern
CRITICAL
QUEEN’SIGH
SUCCESS RATING SCORE RATING SCORE RATING SCORE
T
FACTORS
Advertising 0.20 2 0.40 3 0.60 1 0.20
Product Quality 0.10 4 0.40 4 0.40 3 0.30
Price
Competitivenes 0.10 1 0.10 3 0.30 2 0.20
s
Management 0.10 3 0.40 4 0.40 2 0.20
Financial
0.15 3 0.60 2 0.30 4 0.60
Position
Customer
0.10 4 0.40 2 0.20 3 0.30
Loyalty
Brand Identity 0.20 2 0.40 2 0.40 4 0.80
Market Share 0.05 2 0.10 1 0.05 4 0.20
TOTAL 1.00 2.80 2.65 2.80
4.4 SWOT Analysis
The greatest competitive opportunity in the tavern and bar industry is the growth
projections that most analysts associate with the industry. This expected market growth
over the next 3-5 years affords Queen’s its most tangible rationale for expanding in the
Portland, Oregon market at this time. The following section outlines Queen’s strengths,
weaknesses, opportunities and threats associated with its market entry:
17
18. Strengths. Queen’s is an established company but one with a fresh brand and an
experienced owner/manager in Mr. Milton. Additionally, Queen’s has a strong business
plan and access to ready capital.
Weaknesses. Queen’s lacks an established identity for its microbrews in the loca
market but its established presence in the market may counter this. Furthermore,
although its focus on customer service and service delivery is an extremely strong
attribute, customers must also be willing to pay for such service since it is not competing
on price alone.
Opportunities. The market growth over the next 3-5 years presents Queen’s with
its most promising opportunity in the market. Also, the lack of any single dominant
competitor in the industry over the next 12 months at least, ensures that Queen’s has
the ideal scenario to establish itself as a recognized brand in local microbrew industry
and market.
Threat. Competitive threats form the nucleus of Queen’s most significant market
threat. Some national beer brands have the operational skills and the capital to enter
and quickly dominate the local market should they so desire.
4.5 TOWS Forward Strategy & Outlook
Complete strengths, weaknesses, opportunities, and market threats are outlined
below in order to establish a better understanding of its position in the marketplace as a
new microbrewery competitor:
STRENGTHS OPPORTUNITIES
• Knowledgeable Executive • Fractured market
• Professional management • Undifferentiated rival services
• Quality Price Point • Portland market is attractive
18
19. • 7 Day a week Availability • Market growth expected in 2008
WEAKNESSES THREATS
• Lack of brand recognition • Sustained price competition
• New employees • Ongoing tavern market
• Must learn microbrew processes competitiveness
• Competitor entry into the local
market
These strengths, weaknesses, opportunities and threats then lead to the following
TOWS chart that establishes the basis for an actionable strategy:
External Opportunities External Threats
Internal Strengths SO: Knowledgeable ST: Price
Leadership w/Attractive competition/industry
Portland market competitiveness
Internal Weaknesses WO: Lack of brew industry WT: Lack of brew
experience w/Market industry
upturn in 2008 experience/ongoing
competitive difficulties
Complete competitive advantage will be based on the company’s large
investment in human capital and in microbrewery equipment and processes. Complete
success begins with a rigorous training program for new employees because while
initially Mr. Milton will do most of the oversight himself, he would be unable to maintain
effective marketing efforts while also trying to run all operations. Therefore, quality staff
and well trained brew masters are the key to the company’s success. In fact, the human
resource aspect is the company’s primary competitive differentiator because these are
the staff that the customers interact with.
19
20. V. Operational Plan
5.1 Production
All production of food and service delivery occur onsite. The microbrewery facility
will be enclosed in the additional space that Mr. Milton is negotiating for and includes all
necessary equipment such as vats, tubing, and storage for all ingredients such as hops
and barley. However, a full list of equipment required for a small microbrewery can be
found in appendix one.
5.2 Location
All operations occur at the location in which the tavern is already situated.
Queen’s is located at the corner of Salmon St and SE 19th Avenue in Portland about
four blocks from the city center and within walking distance of the city's business district.
All of Queen’s operations will occur in this single location.
5.3 Inventories
Inventories of all fresh food will only be kept for a two day supply since they are
delivered both daily as well as on an ad hoc basis. All dry goods will be inventoried for a
period of seven days and beer will be brewed in advance of 30 days for both tavern and
local distribution uses.
5.4 Suppliers
Only local suppliers will be utilized, however, for the initial startup and setup of
the microbrewery, an out of state supplier for the equipment and consulting will be used.
This supplier is the Applied Beverage Technologies, Inc. company located in Chicago,
Illinois at B.O. Box 267814, 60626.
20
21. 5.5 Exit Strategies
Queen’s fully expects to stay operational and financially solvent however, at
times this is not feasible due to market conditions or other unexpected events within the
tavern and bar industry. In such circumstances, the company will adhere to several
strategies that will allow it to liquidate its business and business assets in a fashion that
best suits the particular circumstances:
Sale of Business to a 3rd party
Liquidation of assets including industry contacts
Bankruptcy through Chapter 13
Simple closure of business
21
22. VI. Management and Organization
6.1 Company Structure & Ownership
The company is going to be licensed as a limited liability company or an LLC in
order to limit the liability of the company’s individual employees and its owner against
any potential legal exposure should such actions arise. The LLC structure calls its
owners members and does not restrict the number of members that can be attached to
an LLC and this includes the establishment of single member LLCs as Queen’s will be. 8
This ownership structure allows Mr. Miltion to take on additional investors should the
need arise in order to facilitate future growth and expansion.
6.2 Core Management Personnel
Mr. Milton: Mr. Milton is both the sole owner and manager of the Queen’s enterprise.
Restaurant/Floor Manager: An individual with industry experience will be sourced to
manage all food and service related operations.
6.3 Roles & Responsibilities
Mr. Milton: Mr. Milton will manage the activities related to marketing, budgeting and
scheduling of local entertainment. Additionally, he will oversee the branding and
distribution processes related to Queen’s branded microbrews.
8
“Limited Liability Company.” Internal Revenue Service (online). http://www.irs.gov/
businesses/small/article/0,,id=98277,00.html
22
23. Restaurant/Floor Manager: This individual will manage and oversee all food related
activities such as kitchen and food preparation, floor and wait staff scheduling, as well
as customer service related concerns.
6.4 Salary Structure
PERSONNEL PLAN
YEARS 2008 2009 2010
RATIO% 0% 20% 22%
OWNER $44,000 $58,800 $84,560
HOSTESS $19,600 $21,520 $23,824
FOOD MANAGER $33,600 $43,320 $53,184
TOTAL PERSONNEL
TOTAL PAYROLL $97,200 $123,640 $161,568
6.5 Key Success Factors
The following key success factors are critical to the company’s ongoing and long-
term success in its industry:
Hiring talented and innovative employees to fill key roles within the organization
Maintaining a strict adherence to the company’s vision and mission statements
Attaining first year sales objectives
Meeting the company’s three year revenue projection
Executing the company’s 12 month and 3-year growth strategy
23
24. VII. Personal Financial Statements
7.1 Personal Financial Statements
PERSONAL FINANCIAL STATEMENTS
SECTION 1 – INDIVIDUAL INFORMATION (Type or Print) SECTION 2- OTHER PARTY INFORMATION (Type or Print)
Name Name
Residence Address Residence Address
City, State, Zip City, State, Zip
Position or Occupation Position or Occupation
Business Name Business Name
Business Address Business Address
City, State, Zip City, State, Zip
Res. Phone Bus. Phone Res. Phone Bus. Phone
SECTION 3 – STATEMENT OF FINANCIAL CONDITION AS OF _________________________________________, 20___________
ASSETS In Dollars Liabilities In Dollars
(Do not include Assets of doubtful value) (Omit Cents) (Omit Cents)
Cash on hand and in banks Notes payable to banks – secured
U.S. Gov’t & Marketable Securities – see Schedule Notes payable to banks – unsecured
A
Non-marketable Securities – see Schedule B Due to brokers
Securities held by broker in margin accounts Amounts payable to others – secured
Restricted or control stocks Amounts payable to others - unsecured
Real Estate owned as personal residence Accounts and bills due
See Schedule C Unpaid income taxes and interest
Real Estate owned for investment purposes Real estate owned as personal residence
See Schedule D (attached) Mortgages payable – see Schedule C
Loans receivable Real estate owned for investment purposes
Automobiles and other personal property mortgages payable – see Schedule D
Cash value life insurance – see Schedule E Credit card/revolving debt
Other assets – itemize Other debts – itemized
TOTAL LIABILITIES
TOTAL ASSETS NET WORTH = ASSETS – LIABILITIES
TOTAL LIABILITIES & NET WORTH
PERSONAL INFORMATION
SOURCES OF INCOME FOR YEAR
ENDED_____________________20______
Salary, bonuses & commissions $ Do you a will? No Yes if yes, name of executor
Dividends
Net real estate income Are you a partner or officer in any other venture? If so describe
Other income (Alimony, child support, or separate maintenance
Income need not be revealed if you do not wish to have it Are you obligated to pay alimony child support or separate
considered as a basis for repaying this obligation) maintenance payments? If so, describe them
24
25. Are any assets pledged other than as described on the
schedules?
If so, describe
TOTAL $
CONTINGENT LIABILITIES
Do you have any contingent liabilities? If so, describe them Income tax settled through (date) ______________________
Are you a defendant in any suits or legal actions?
As endorser, co-maker or guarantor $ Personal bank accounts carried at
On leases or contracts $
Legal claims $
Other special debt $ Have you ever declared bankruptcy, personal or otherwise? If
Amount of contested income tax liens $ so, describe
7.2 Details of Personal Financial Statements
SCHEDULE A – U.S. GOVERNMENTS AND MARKETABLE SECURITIES
Number of Shares Are These
of Face Value (Bonds) Description In Name Of Pledged? Market Value
SCHEDULE B – NON-MARKETABLE SECURITIES
Are These Source of
Number of Shares Description In Name Of Pledged? Value Value
SCHEDULE C – REAL ESTATE OWNED
Address & Type Of Title In % Of Date
Property Name Of Ownershi Acquired Cost Market Value Mortgage Mortgage
p Maturity Amount
SCHEDULE D – LIFE INSURANCE CARRIED, INCLUDING GROUP INSURANCE
Name of Owner of Policy Beneficiary Face Amount Policy Loans Cash Surrender
Insurance Value
Company
25
26. SCHEDULE E – BANKS OR FINANCE COMPANIES WHERE CREDIT HAS BEEN
OBTAINED
Name & Address of Credit In The Name Secured Or Original Date High Credit Current Balance
Lender Of Unsecured
The information contained in this statement is provided for the purpose of obtaining or maintaining a credit account, loan, small
business loan or other financial transaction on behalf of the undersigned or persons, firms or corporations in whose behalf the
undersigned may either severally or jointly with others, execute a guaranty in the issuer’s favor. Each undersigned understands that the
issuer of such financial support is relying on the information provided herein (including the designation made as to ownership of
property) in deciding to grant or continue such financial support or oversight as is being requested. Each undersigned represents and
warrants that the information provided is true and complete and that the issuer or provider may consider this statement as
continuing to be true and correct until a written notice of a change is given to it by the undersigned. The issuer or provider is authorized
to make all inquiries deemed necessary to verify the accuracy of the statements made herein, and to determine applicant’s
creditworthiness or financial health. Furthermore, the issuer/provider is authorized to ansQueen’sr questions about its financial
experience with the undersigned party(s).
Signature (Individual)
S.S. No. Date of Birth
Signature (Other party)
S.S. No. Date of Birth
Date Signed 20
26
27. VIII. Startup Expenses and Capitalization
8.1 Capitalization
Mr. Milton is the sole investor related to the purchase of Queen’s as well as its
expansion into the microbrew activities. He is investing $150 thousand of his own funds
and seeking a small business loan for the same amount.
8.2 Startup Expenses
The following startup expenses are an approximate cost estimate. Further
estimates of material and supplies can be found in appendix 1. These startup expenses
offer a detailed approximation of the costs associated with the daycare startup:
QUEEN’S START-UP EXPENSES (REQUIREMENTS)
BUSINESS START YEAR 2009
OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS $473
MARKETING/QUEEN’SB/BUSINESS CARDS/BROCHURES/ $1,305
ADS
EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK $3,580
ARCHITECTURE/DECORATION/REMODELING $2,143
OTHERS-LEGAL (PERMITS/TRADEMARKS/CORPS) $870
RENT+SECURITY DEPOSIT $1,500
INSURANCE $300
OTHER A $4,100
OTHER B $700
OTHER C $2,500
OTHER D $1,000
FRANCHISE FEE (NONE) $0
BUSINESS FEE TRANSFER $0
TOTAL START-UP EXPENSES ($18,471)
Start-up Assets Needed
Cash Balance on Starting Date $8,700
Start-up Inventory $6,079
Other Current Assets $1,000
TOTAL CURRENT ASSETS $15,779
Long-term Assets $10,000
TOTAL ASSETS $25,779
Total Requirements $7,308
27
28. Funding & Investor
INVESTOR 1 $30,000
INVESTOR 2 $0
OWNER 1 $0
OWNER 2 $0
BANK 1 $0
BANK 1 $0
TOTAL INVESTMENT $30,000
Current Liabilities
Accounts Payable $1,000
Current Borrowing $0
Other Current Liabilities $0
CURRENT LIABILITIES $1,000
Long-term Liabilities $3,444
TOTAL LIABILITIES $3,444
LOSS AT START-UP $18,471
TOTAL CAPITAL $11,529
TOTAL CAPITAL & LIABILITIES $14,973
28
29. IX. Financial Plan
9.1 Primary Assumptions
Cash Sales: Projected gross sales will be based on the average of the monthly
revenues of recruitment and placement services originated from Queen’s single
business location.
Other Income: This income is generated through the provisions of services not directly
related to daily tavern operations such as certain ad hoc marketing and service offerings
as well as its outside distribution of its branded microbrews.
Cost of Goods Sold: This figure is based on a figure of 35% of revenues which is the
industry corporate standard.
Payroll: This is figure is based on both full-time and part-time staff.
9.2 Summary of Financial Results
1st Year Sales COGS Net Profit 3rd Year Sales Net Profit
$306,000 $92,000 $106,447 $564,570 $242,041
9.3 3-Year Profit/Loss
The following table shows Queen’s expectations for Profit and Loss. The
company will begin to make a better profit in its second year of operation.
Queen’s Pro Forma Profit and Loss
2008 2009 2010
29
30. Sales $1,017,000 $1,307,000 $1,410,000
Direct Costs of Goods $457,650 $562,010 $578,100
Other $33,000 $38,000 $43,000
------------ ------------ ------------
Cost of Goods Sold $490,650 $600,010 $621,100
Gross Margin $526,350 $706,990 $788,900
Gross Margin % 51.76% 54.09% 55.95%
Expenses
Payroll $202,800 $317,000 $353,000
Sales and Marketing and Other Expenses $70,925 $82,900 $102,000
Depreciation $36,000 $40,000 $45,000
Utilities $18,000 $18,000 $20,000
Insurance $18,000 $21,000 $23,000
Rent $72,000 $77,000 $80,000
Other $18,000 $6,300 $10,000
Payroll Taxes $24,336 $38,040 $42,360
Other $0 $0 $0
------------ ------------ ------------
Total Operating Expenses $460,061 $600,240 $675,360
Profit Before Interest and Taxes $66,289 $106,750 $113,540
EBITDA $102,289 $146,750 $158,540
Interest Expense $39,000 $37,500 $32,250
Taxes Incurred $6,643 $17,313 $20,661
Net Profit $20,646 $51,938 $60,629
Net Profit/Sales 2.03% 3.97% 4.30%
9.4 3-Year Profit Projection
30
31. The following chart and table show the Projected Cash Flow for Queen’s:
QUEEN’S Pro Forma Cash Flows
2008 2009 2010
Cash Received
Cash from Operations
Cash Sales $661,050 $849,550 $916,500
Cash from Receivables $340,853 $449,153 $490,553
Subtotal Cash from Operations $1,001,903 $1,298,703 $1,407,053
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
Acquired 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 $50,000 $0 $0
Subtotal Cash Received $1,051,903 $1,298,703 $1,407,053
31
32. Expenditures 2003 2004 2005
Expenditures from Operations
Cash Spending $202,800 $317,000 $353,000
Bill Payments $790,606 $896,677 $949,161
Subtotal Spent on Operations $993,406 $1,213,677 $1,302,161
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 $30,000 $75,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $10,000
Dividends $0 $0 $25,000
Subtotal Cash Spent $993,406 $1,243,677 $1,412,161
Net Cash Flow $58,497 $55,026 ($5,108)
Cash Balance $148,497 $203,523 $198,415
9.5 Opening Day Balance Sheet
The following table is the Projected Balance Sheet for Queen’s and its new
operations:
QUEEN’S Pro Forma Balance Sheet
2008 2009 2010
Assets
Current Assets
Cash $148,497 $203,523 $198,415
Accounts Receivable $29,097 $37,394 $40,341
Inventory $42,570 $52,277 $53,774
Other Current Assets $4,000 $4,000 $4,000
32
33. Total Current Assets $224,164 $297,194 $296,530
Long-term Assets
Long-term Assets $80,000 $80,000 $90,000
Accumulated Depreciation $36,000 $76,000 $121,000
Total Long-term Assets $44,000 $4,000 ($31,000)
Total Assets $268,164 $301,194 $265,530
Liabilities and Capital 2003 2004 2005
Current Liabilities
Accounts Payable $63,518 $74,611 $78,318
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $63,518 $74,611 $78,318
Long-term Liabilities $390,000 $360,000 $285,000
Total Liabilities $453,518 $434,611 $363,318
Paid-in Capital $125,000 $125,000 $125,000
Retained Earnings ($331,000) ($310,354) ($283,417)
Earnings $20,646 $51,938 $60,629
Total Capital ($185,354) ($133,417) ($97,788)
Total Liabilities and Capital $268,164 $301,194 $265,530
Net Worth ($185,354) ($133,417) ($97,788)
9.6 Break Even Analysis
The Break-even Analysis chart and table indicate that if the costs stay at the
current, or relatively stable level that the tavern has maintained prior to Mr. Milton
33
34. acquiring it, Queen’s will be able to make an increased profit by the second year. The
break-even point is approximately $70,000 per month:
QUEEN’S Break-even Analysis
Monthly Revenue Break-even $69,706
Assumptions:
Average Percent Variable Cost 45%
Estimated Monthly Fixed Cost $38,338
Appendices
Appendix 1: Supply List
34
35. APPLIED 7 BARREL FULL MASH BREWERY SPECIFICATIONS
ABT MALT CONVEYING SYSTEM
* Malt auger,4 inch diameter with top mounted low RPM motor
* 15 foot drive section
* Flexible drop tube
* Floor level hopper with hand guard
* Delivers 32 lbs. per minute
* 1/2 h.p. , 115/220 V, 1ø, TEFC motor
ABT 7 BARREL SYSTEM HOT LIQUOR (WATER) TANK
* Capacity : 5 bbls. working, 6.7 bbls. gross, to hold sparge water
* 40" O.D., 5.4' overall height
* Insulated and clad on sides
* Dished top and bottom
* Top fittings: manway and CIP ball with shaft
* Side fittings: thermowell; liquid level gauge fittings (2); thermometer, 0-220°F
* Bottom fittings: 1 1/2" coupling inlet / outlet;
* 14" legs
* Material: 12 gauge T304 stainless steel
* Internal finish: 2B, welds ground and polished to 180 grit
* External finish: 2B, brushed welds
* Cladding:16 gauge stainless steel with #4 finish
HOT LIQUOR (WATER) PUMP
* Bronze head, centrifugal
* 1" NPT discharge, 1 1/4" NPT inlet
* 1 1/2 hp, TEFC motor,230V, 3ø, 5 amps.
ACTIVATED CARBON WATER FILTER
* Complete activated carbon water filter with 1.75 cu. ft. activated type PE natural
carbon for removal of trace water contaminants and chlorine, 42 GPM flow rate max.,
30 GPM recommended, 45 psi max. working pressure, 38"high x 21" wide, 1 1/2" inlet/
outlet, c/w bypass and on/off valve.
ABT 7 BARREL MASH / LAUTER VESSEL
* Capacity : 5.2 bbls. working, 9.5 bbls gross
* 46" O.D., 8' overall height,10 ft. min. ceiling height, 35" floor to bottom of side
manway
* Max. grain capacity 475 lbs., .4 bbl. below false bottom plates, 24"-33" grain bed
depth
* 950 lbs. empty, 2900 lbs. working
* Insulated and clad on sides
* Top: flat and flanged
* Large top opening 17" manway with handle and manway support bracket
* Shallow cone bottom,160° included
* Top fittings: CIP spray ball; sprayball shaft welded with arm to side, cap,clamp and
gasket; 4" ferrule for premasher and sparge devices; 1 1/2" T/C ferrule for vapor outlet
* Side fittings: Thermowell, 17" outward opening hinged manway for spent grain
removal
* Bottom: 1 1/2" tri-clamp ferrule outlet
35
36. * Polished stainless steel wedge wire two piece false bottom
* Premasher and sparge devices with 3/4" MNPT nipples, clamp and gasket
* 3/4" high temp. hose with quick disconnect set for above
* Wort recycle fitting for CIP shaft
* Legs with flat anchoring pads and shims for leveling
* Material: 12 gauge 304 stainless steel
* Internal finish: 2B, welds ground and 180 grit polished
* External finish: 2B, brushed welds
* Cladding: 16 gauge stainless steel, #4 finish
GRANT PIPING SYSTEM
* System designed to receive wort from mash tun side outlet and transfer it to the
pump
* Valentine arm produces uniform flow without clogging
* Hi-Lo outlets allow reduced hydrostatic pressure across the false bottom and total
draining
* Clear top sight tube allows visible flow control and level detection
* Includes stainless steel pipework, sight glass, valves, clamps, gaskets
ABT 7 BARREL BREWKETTLE / WHIRLPOOL - GAS
* Capacity : 7.7 bbls. working, 10 bbls. gross, 12" freeboard
* 48" O.D., 7.6' overall height, 9 ft. min. working height
* 1000 lbs. empty; 3,100 lbs. working
* Insulated and S/S clad
* Top: ASME shape dished and flanged head
* Bottom: flat sloping, 3/16" plate, T316 stainless steel
* Top fittings: CIP sprayball, welded shaft with 90° elbow to 1 1/2" T/C connection, 3/4"
NPT water inlet coupling, 6" steam vent stub with condensate trap and 1/2" coupling,
17" outward opening top hinged manway
* Side fittings: thermowell to fit thermocouple, 1 1/2" tangental whirlpool inlet, 4" tri-
clamp ferrule for cleanout,1 1/2" tri-clamp ferrule for wort draw-off
* Lower fire box, internal 2400°F insulation, burner flange, 6" I.D. , 8" O.D. exhaust
outlet, insulated access manway
* Material: 12 gauge 304 stainless steel
* Internal finish: 2B, with welds ground and 180 grit polished
* External finish: 2B, with brushed welds
* Cladding: 18 gauge stainless steel with #4 finish
KETTLE GAS BURNER
* 200,000 BTU/hr. power gas burner
* U.L. Listed
ABT BURNER CONTROL PANEL - GAS
* NEMA 4 watertight burner control panel for wall mounting with: Indicating
temperature controller with temperature sensor; manual/auto(timer)/off switch and run
light; 24 hour timer; fuse.
* Hot liquor pump on/off switch and run light
WORT PUMP and MOTOR
* Stainless steel sanitary non overloading centrifugal pump
* 1 1/2" x 1 1/2" tri-clamp inlet and outlets
36
37. * 3 1/2" open impeller, epdm O rings, replaceable rotating seal
* 3600 rpm, 1 1/2 h.p., 220 V, 1ø, TEFC motor, 10 amps.
* Mounted on stainless steel portable cart with four wheels
* Nema 4 motor starter, cord and plug mounted on cart
HEAT EXCHANGE/ WORT CHILLER
* Single stage heat exchanger to cool wort to within 8°F of cooling liquid
* All wort contact surfaces 316 stainless steel, nonclogging plate design
* Painted mild steel frame ends
* 1 1/2 inch tri-clamp product inlet and outlet
* 1" water inlet and outlet
WORT AERATING SYSTEM
* 0°F to 210°F S/S thermometer
* Sintered S/S aerating element on T/C cap
* Air line quick disconnects
* Sterile air filter, 0.01micron with stainless steel wall bracket
* S/S fittings, clamps and gaskets
ABT BREWHOUSE TRANSFER SYSTEM
* All necessary multiposition butterfly valves, clamps, and gaskets
* 50 ft. high temp. reinforced multiply brewers hose, orange, 1 1/2" I.D.
* 6 - 1 1/2" T/C hose ends and S/S clamps
ABT 7 BARREL FERMENTATION/CONDITIONING VESSELS
* Capacity: 6.5 bbls. working, 7 bbls. gross, 5" freeboard
* 42" O.D., 6' overall height, 6 1/4" floor to bottom outlet
* 700 lbs. empty, 3500 lbs. working
* Top and bottom: Dished and flanged heads
* Jacketed, insulated & clad:
- Jacketed - 3/4" S/S glycol inlet/outlet couplings
- Insulated - 2" on side
- Clad - #4 finish S/S on side
* Internal volume calibrations
* Top fittings: 3" triclamp fitting & 3/8" FNPT coupling in top lid; (2) sight glasses
* Side fittings: Thermowell for temperature controller probe
* Bottom fittings:1 1/2" triclamp drawoff ferrule; 1 1/2" triclamp totally draining center
outlet and pipe to vessel side
* Mild steel painted legs
* Other:
1 - Top lid gasket and clamp
1 - 3" triclamp to grundy valve fitting adapter
1 - New grundy pressure relief/anti-vacuum valve with pressure gauge,
bronze ball valve,CIP shaft and sprayball
1 - 1 1/2" triclamp x 1/2" MPT adapter for CIP inlet
1 - Sanitary S/S 1 1/2" T/C butterfly valve
1 - Set of quick disconnects 3/8"MNPT x 3/8" tubing-both auto closing
1 - One quick disconnect to fit tank disconnect x 3/8" hose barb, straight through-
open
1 - 3" triclamp clamp and gasket
37
38. 4 - 1 1/2" triclamp clamps and hycar gaskets
2 - 1 1/2" triclamp caps
GLYCOL CHILLER SYSTEM
* Totally enclosed units for indoor or outdoor use
* Sealed freon primary, secondard circulating glycol
* Adjustable coolant temperature, set at 30°F
* 2 h.p. compressor, 1/2 h.p. circulating pump, 15,000 BTU/hr. @30°F outlet
temperature
* Capacity to cool up to 28 bbls. from 60°F to 36°F in 24 hours and maintain 35 bbls.
at 36°F and remove the heat of fermentation from 14 bbls. fermenting lager beer;
5,000 BTU/hr. excess cap.
* 230/60/3ø, 20 amps
* 1/2" NPT plumbing connections
* 28" L x 25"W x 57"H; 450 lbs. working weight
ABT TEMPERATURE CONTROLLERS
* Digital LED temperature controllers indicate current temperature and set point
* Thermowell probe and wire included
* Housed in water tight wall mountable control box
* Solenoid valves for glycol piping
PLATE AND FRAME SHEET FILTER
* 40 cm x 40 cm stainless steel plate and frame holds upto 24 sheets
* 18 plates for 17 sheets
* Filters 7-10 barrels per hour
* Inlet/outlet valves - 1 1/2" tri-clamp
* Stainless sanitary valves, pressure gauges, sample valve
* Lower drain pan
* Portable on wheels
* 6 grades of filter pads available
ABT 7 BARREL RECONDITIONED SERVING TANKS
* Capacity: 7 bbls. working volume
* 38" O.D., 6' overall height, 6 1/4" floor to bottom outlet
* 700 lbs. empty, 3500 lbs. working
* Single shell polished
* Internal volume calibrations
* Top: Dished and flanged, Grundy valve fitting, 3/8" NPT CO2 inlet coupling
* Two top dish sight glasses
* Grundy anti-vacuum pressure relief valve with pressure gauge, ball valve and 1 1/2"
T/C to ball valve adapter for CIP, CIP sprayball and shaft
* Bottom fittings: 1 1/2" T/C above bottom ferrule and sintered stainless steel
carbonating element; 1 1/2" T/C triclamp bottom outlet
* Sanitary S/S 1 1/2" T/C butterfly valve
* Stainless steel 1/4" valve for carbonating stone inlet
* Quick disconnect sets(2) for top fitting, carbonating stone, gas transfer
* Three 1 1/2" T/C heavy duty clamps and gaskets
* Mild steel painted legs
38
39. SERVING TANK OUTLETS
* Stainless steel outlet manifolds for connecting three beer lines
* Clamps, valves, gaskets, piping
SET OF CELLAR EQUIPMENT
* 100 ft. clear spiral reinforced suction transfer hose, 1 " I.D.
* One set 3/8" NPT x 3/8" I.D. quick disconnect
* 14 S/S hose clamps, 1 1/2" to 2" O.D.
* Six - 1 1/2" hose ends
* Six -heavy duty 1 1/2" T/C clamps
* Two -1 1/2" T/C caps
* Twenty -1 1/2" T/C hycar gaskets
Appendix 2: State & Local Requirements
39
41. Standard business ratios are provided in the following table. The ratios show
strong, yet safe growth for Queen’s in the mid to long-term. Industry Profile ratios are
based on Standard Industrial Classification or the now more utilized NAICS codes 3873.
Ratio Analysis
Industry
2008 2009 2010
Profile
Sales Growth 9.35% 28.52% 7.88% 1.90%
Percent of Total Assets
Accounts Receivable 10.85% 12.42% 15.19% 4.60%
Inventory 15.87% 17.36% 20.25% 3.10%
Other Current Assets 1.49% 1.33% 1.51% 44.60%
Total Current Assets 83.59% 98.67% 111.67% 52.30%
Long-term Assets 16.41% 1.33% -11.67% 47.70%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 23.69% 24.77% 29.49% 28.20%
Long-term Liabilities 145.43% 119.52% 107.33% 23.10%
Total Liabilities 169.12% 144.30% 136.83% 51.30%
Net Worth -69.12% -44.30% -36.83% 48.70%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 51.76% 54.09% 55.95% 42.30%
Selling, General & Administrative
49.74% 50.12% 51.63% 23.40%
Expenses
Advertising Expenses 3.54% 2.75% 2.84% 2.40%
Profit Before Interest and Taxes 6.52% 8.17% 8.05% 2.80%
Main Ratios
Current 3.53 3.98 3.79 1.14
Quick 2.86 3.28 3.10 0.74
Total Debt to Total Assets 169.12% 144.30% 136.83% 51.30%
Pre-tax Return on Net Worth -14.72% -51.90% -83.13% 5.20%
Pre-tax Return on Assets 10.18% 22.99% 30.61% 10.60%
41
42. Additional Ratios 2003 2004 2005
Net Profit Margin 2.03% 3.97% 4.30% n.a
Return on Equity 0.00% 0.00% 0.00% n.a
Activity Ratios
Accounts Receivable Turnover 12.23 12.23 12.23 n.a
Collection Days 29 27 29 n.a
Inventory Turnover 10.91 11.85 10.90 n.a
Accounts Payable Turnover 12.42 12.17 12.17 n.a
Payment Days 29 28 29 n.a
Total Asset Turnover 3.79 4.34 5.31 n.a
Debt Ratios
Debt to Net Worth 0.00 0.00 0.00 n.a
Current Liab. to Liab. 0.14 0.17 0.22 n.a
Liquidity Ratios
Net Working Capital $160,646 $222,583 $218,212 n.a
Interest Coverage 1.70 2.85 3.52 n.a
Additional Ratios
Assets to Sales 0.26 0.23 0.19 n.a
Current Debt/Total Assets 24% 25% 29% n.a
Acid Test 2.40 2.78 2.58 n.a
Sales/Net Worth 0.00 0.00 0.00 n.a
Dividend Payout 0.00 0.00 0.41 n.a
Research Bibliography
“2007 NAICS Definition.” U.S. Census Bureau.< http://www.census.gov/
eos/www/naics/>
42
43. Atkinson, William. “Working Smart.” Beverage World, 125/12(2006): 72.
“Limited Liability Company.” Internal Revenue Service (online). http://www.irs.gov/
businesses/small/article/0,,id=98277,00.html
Mullman, Jeremy. “Booze Makers Battle over Turkey Day.” Advertising Age,
78/43(2007): 4-57.
“Persons Per Square Mile.” U.S. Census Bureau, (online). http://www.census.gov>.
“Portland, Oregon.” U.S. Census Bureau (online). <http://www.census.gov>.
Spaeder, Karen. “Heady Stuff.” Entrepreneur, 34/1(2006): 51.
“US Specialty Beer.” Beverage World, 126/7(2007): 18.
43
