Enchanted Vineyard

This sample business plan has been made available to users of Business Plan Pro, business planning
software published by Palo Alto Software. Names, loc ations and numbers may have been c hanged,
and substantial portions of text may have been omitted from the original plans to preserve
confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have
permission to resell, reproduce, publish, distribute or even c opy this plan as it exists here.
Requests for reprints, ac ademic use, and other dissemination of this sample plan should be emailed
to the marketing department of Palo Alto Software at marketing@paloalto.com. For product
information visit our Website: www.paloalto.com or call: 1-800-229-7526.
Copyright Palo Alto Software, Inc., 1995-2009 All rights reserved.
Confidentiality Agreement
The undersigned reader ac knowledges that the information provided by

_________________________ in this business plan is confidential; therefore, reader agrees not to
disc lose it without the express written permission of _________________________.
It is ac knowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disc losure or use of same by reader, may cause serious harm or damage to
_________________________.
Upon request, this doc ument is to be immediately returned to _________________________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
Table of Contents
1.0 Executive Summary.............................................................................................................................1
1.1 Mission........................................................................................................................................2
1.2 Objectives ...................................................................................................................................2
2.0 Company Summary.............................................................................................................................2
2.1 Company Ownership .................................................................................................................2
2.2 Start-up Summary ......................................................................................................................2
Table: Start-up .........................................................................................................................3
Table: Start-up Funding ..........................................................................................................4
Chart: Start-up .........................................................................................................................5
3.0 Services................................................................................................................................................5
4.0 Market Analysis Summary..................................................................................................................5
4.1 Market Segmentation ................................................................................................................6
Chart: Market Analysis (Pie) ..................................................................................................6
Table: Market Analysis ...........................................................................................................6
4.2 Target Market Segment Strategy.............................................................................................6
4.3 Competition and Buying Patterns ............................................................................................7
5.0 Strategy and Implementation Summary ............................................................................................8
5.1 Competitive Edge ......................................................................................................................8
5.2 Sales Strategy............................................................................................................................9
5.2.1 Sales Forecast ............................................................................................................10
Chart: Sales Monthly ...................................................................................................10
Table: Sales Forecast.................................................................................................10
5.3 Milestones ................................................................................................................................11
Table: Milestones..................................................................................................................11
6.0 Management Summary ....................................................................................................................11
6.1 Personnel Plan.........................................................................................................................12
Table: Personnel ...................................................................................................................12
7.0 Financial Plan ....................................................................................................................................12
7.1 Important Assumptions............................................................................................................12
Table: General Assumptions ...............................................................................................12
7.2 Break-even Analysis................................................................................................................13
Table: Break-even Analysis .................................................................................................13
Chart: Break-even Analysis .................................................................................................13
7.3 Projected Profit and Loss .......................................................................................................14
Table: Profit and Loss ..........................................................................................................14
7.4 Projected Cash Flow...............................................................................................................15
Chart: Cash ...........................................................................................................................15
Table: Cash Flow..................................................................................................................16
7.5 Projected Balance Sheet ........................................................................................................17
Table: Balance Sheet ...........................................................................................................17
7.6 Business Ratios .......................................................................................................................17
Table: Ratios .........................................................................................................................18
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3
Table: Profit and Loss ...............................................................................................................................4
Table: Cash Flow .......................................................................................................................................5
Page 1
Table of Contents
Table: Balance Sheet ................................................................................................................................6
Page 2
The Enchanted Vineyard Bed & Breakfast

1.0 Executive Summary
The Enchanted Vineyard Bed & Breakfast is a charming bed and breakfast (B&B) loc ated in the
Lorane Valley, outside of Eugene, OR. The valley is well known for its beauty and
concentration of vineyards. The B&B will be set up as a sole proprietorship of Missy Stewart. The
B&B will reside in The Stewart's newly renovated home. Their home is the center piece for the
entire B&B experience. Each of the five rooms have their own private bath. The fac ility has a
wonderful centralized living room for the socialization of the guests, a private garden patio,
and an on-site winery on the Stewart's 10 ac res of land. To top things off, every room has
65% of their walls as windows offering guests an unprecedented view of the valley.
The Market
Within the hospitality industry, The Enchanted Vineyard will be competing with hotels and
other B&Bs. Although The Enchanted Vineyard competes with hotels, their direct competitors are
other B&Bs. Enchanted's fac ilities are far nicer than other B&Bs for its size. All of the smaller
(less than 9 rooms) B&B are a fairly standard house converted into a B&B, nothing noteworthy.
Enchanted Vineyard on the other hand is a newly renovated house and vineyard in a picturesque
setting.
The Enchanted Vineyard will be targeting three distinct groups. The first is weekend getaway
travelers, generally people from Eugene looking to esc ape for the weekend. Eugene is a
wonderful town in the Willamette River valley nationally renowned for its wineries, cycling and old
growth trees. This customer group is growing at 11% a year with 12,000 potential customers.
The second group is out-of-town travelers which is growing at 10% with 18,000 potential
customers. The last group of customers the B&B is targeting are University of Oregon
travelers. The university brings thousands of visitors to Eugene whether they are professors,
speakers, or parents. Once a relationship has been established with the U of O, it will be a
constant stream of business. This customer group is growing at 17% with 12,000 potential
customers.
Competitive Edge
The Enchanted Vineyard has two distinct competitive edges that differentiates it from the
competition. The first is the never-ending attention to detail and customer service. The
Stewarts recognize that their mission is to ensure that their customers have the finest stay with
them. Both Missy and John will do whatever it takes to ensure the customer's happiness. Their
second competitive edge is the unique fac ility. The fac ility is so wonderful in part bec ause of the
ac tual structure which is a wonderful plac e to stay. It is also unique bec ause of the loc ation,
overlooking the Lorane Valley, a beautiful area filled with wineries and vineyards.
Management Team
The Enchanted Vineyard will be able to execute on its strong business model bec ause of its
management. Missy has earned her MBA providing her with invaluable business skills. While
Missy was pursuing her MBA, she was on a team of five students that opened up their own
service business. Lastly, Missy has spent numerous years in the B&B industry, providing her
with amazing insight and experience directly related to what she is doing now.
The Enchanted Vineyard will be able to leverage its amazing fac ility and turn it into a beautiful,
special B&B serving the Eugene community. This will be done by the passion and experience of
Missy Stewart, the sole proprietor. The B&B will bec ome profitable by year two and will earn over
Page 1

$77,000 in revenue by the end of year three.
1.1 Mission
The Mission of The Enchanted Vineyard Bed & Breakfast is to provide the finest B&B
experience. We exist to attrac t and maintain c ustomers. When we adhere to this maxim,
everything else will fall into plac e. Our services will exceed the expec tations of our customers.
1.2 Objectives
The objectives of The Enchanted Vineyard Bed & Breakfast for the first three years of operation
include:
To create a B&B whose primary goal is to exceed customer's expec tations.

The usage of The Enchanted Vineyard Bed & Breakfast by visitors every week through
out the year.
To increase our number of clients by 20% per year through superior service.
To develop a sustainable business, surviving off its own c ash flow.
2.0 Company Summary

The Enchanted Vineyard Bed & Breakfast, loc ated in the Lorane Valley, will offer a luxurious,
quaint B&B for people to enjoy. The Enchanted Vineyard Bed & Breakfast will have four
individual rooms with private baths, a central living room/soc ializing area, a garden patio, and
an adjoining vineyard for its guests.
2.1 Company Ownership

The Enchanted Vineyard Bed & Breakfast is a sole proprietorship of Missy Stewart. The B&B
uses John and Missy's home as the Inn.
2.2 Start-up Summary

The Enchanted Vineyard Bed & Breakfast start-up expenses include:
Home office equipment including: computer, copier, fax mac hine, extra telephone line,
desk and filing cabinet.
Extra computer for the living room with Internet ac cess via a DSL line.
Website creation.
Advertising/assoc iation dues for the loc al B&B association.
Remodeling of the house to add two individual bedrooms with baths, a patio and
to enlarge the common areas.
Please note that the cost of the remodeling will be depreciated using the straight line method
Page 2

over a 30-year sc hedule. Although the Inn will have to finish their research into tax law, it
does appear that the Inn will be allowed to depreciate the remodeling as the additions will be
used only for business.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Consultants
Insurance
Rent
Research and Development
Expensed Equipment
Other
Total Start-up Expenses
$300
$300
$300
$300
$600
$0
$0
$0
$0
$1,800
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$11,200
$1,500
$1,500
$200,000
$214,200
Total Requirements
$216,000
Page 3

Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$1,800
$214,200
$216,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$203,000
$11,200
$0
$11,200
$214,200
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
$2,400
$10,000
$0
Other Current Liabilities (interest-free)

Total Liabilities
$2,000
$14,400
Capital
Planned Investment
Investor 1
Investor 2
Other
Additional Investment Requirement
Total Planned Investment
$201,600
$0
$0
$0
$201,600
Loss at Start-up (Start-up Expenses)

Total Capital
($1,800)
$199,800
Total Capital and Liabilities
$214,200
Total Funding
$216,000
Page 4
3.0 Services
The Enchanted Vineyard Bed & Breakfast is a small, attrac tive B&B that offers travelers a
secluded, relaxed setting for a weekend getaway, change of sc enery, sports or cultural events,
family oc cassions, U of O events, etc. The Enchanted Vineyard Bed & Breakfast has a large
central gathering room that allows travelers to soc ialize. The customers will receive the
personal attention of the Stewarts, who will meet any need a traveler has.
The Enchanted Vineyard Bed & Breakfast provides a wonderful breakfast feast and can meet any
dietary restriction. The Enchanted Vineyard Bed & Breakfast is centrally loc ated about 15
minutes from downtown Eugene in the heart of the Lorane Valley wine country. In fac t, The
Enchanted Vineyard Bed & Breakfast has its own vineyard which grows grapes for loc al
wineries and clients are encouraged to explore The Enchanted Vineyard Bed & Breakfast's 10
ac res of land.
4.0 Market Analysis Summary

The Enchanted Vineyard Bed & Breakfast has three different target groups that it is attempting
to attrac t. The first are people from the region that just want to get away for the weekend.
They may have ac tivities planned for the weekend, or just chose to vegetate. The second group
are travelers who are passing through Eugene and prefer to stay in B&Bs instead of a hotel/
motel. The last group is any customer affiliated with the loc al school, the University of Oregon.
This group may be parents of students or visiting the University on official business and the
University is the entity that sets up the reservation. While The Enchanted Vineyard Bed &
Breakfast will certainly get customers that fall outside of these groups, this classification
should be fairly ac curate.
Page 5

4.1 Market Segmentation
Our customers can be broadly divided into three groups (please note it is possible to divide the
customers in to much smaller groups, but we have chosen not to):
1.
2.
3.
Weekend getaway customers. These people are from the region and are looking to get
away from their life so they come to The Enchanted Vineyard Bed & Breakfast to be
pampered and esc ape.
Travelers. These people, for whatever reason, are passing through Eugene and prefer to
stay in a B&B instead of a hotel/motel.
University of Oregon travelers. The University brings a large number of people
through Eugene, and The Enchanted Vineyard Bed & Breakfast believes that a good
portion of their business will be from the University. Occassions include parent
weekend, orientation, parents visiting, and graduation. Lastly, the University will often
set up rooms for administrative visitors.
Table: Market Analysis

Market Analysis
Potential Customers
Weekend-Getaway Customers
Travelers
University of Oregon Travelers
Total
Growth
11%
10%
17%
12.41%
Year 1
Year 2
Year 3
Year 4
Year 5
12,000
18,000
12,000
42,000
13,320
19,800
14,040
47,160
14,785
21,780
16,427
52,992
16,411
23,958
19,220
59,589
18,216
26,354
22,487
67,057
CAGR
11.00%
10.00%
17.00%
12.41%
4.2 Target Market Segment Strategy

Page 6

The Enchanted Vineyard Bed & Breakfast intends to target these three customer groups as
they make up the largest population of people who utilize B&Bs. The Enchanted Vineyard Bed &
Breakfast has a three pronged strategy that will work for all three groups:
Association membership and advertising. A large number of visitors will look to

regional B&B associations for information about the different B&Bs in the area. Most
assoc iations publish a guide to the loc al B&Bs and The Enchanted Vineyard Bed &
Breakfast wants to be in this guide. One of the other perks of membership is visibility on
the associations website with a link to ours. Additionally, we will be a member of the
Chamber of Commerce bec ause people will typically inquire with the loc al Chamber when
planning a vac ation.
Website. The Enchanted Vineyard Bed & Breakfast will have a full-service website that
allows the visitor to view the B&B, read details about what it has to offer, provide
information on regional ac tivities, and even allow the visitor to book a reservation. With
the growing use of the Internet, the Web has bec ome an indispensable tool for planning
vac ations to areas that are not close enough to chec k out in person.
Strategic relationship with the University of Oregon. The Enchanted Vineyard Bed &
Breakfast will develop a partnership with the University so when the sc hool is in need of
finding rooms for guests they will use The Enchanted Vineyard Bed & Breakfast. We will
also be advertising with the University so when students are searching for plac es for their
parents to stay, they will come ac ross The Enchanted Vineyard Bed & Breakfast in a
sc hool related publication and feel more comfortable with booking a reservation sight
unseen because of the trust bond they have formed with the University.
4.3 Competition and Buying Patterns

Competition comes in several forms:
1.
Other B&Bs. Typically B&Bs have a set of unique features, something that makes them
stand out.
Some B&Bs will create uniqueness down to the level of different rooms within the B&B.
The size of a B&Bs range from one or two room (traditionally called a home stay) to a
country inn with 30 rooms.
On average most B&Bs have only a couple of rooms and are often booked up in
advance. Particularly during special events, demand outstrips supply for the B&Bs.
The B&Bs differentiate themselves by personal service offerings and the general ambiance
of the Inn. Finally, B&Bs usually have a very nice sit down breakfast for their guests. This
is not a simple continental breakfast of juice, coffee, and a bagel, but an elaborate
spread of gourmet food such as quiche, a portabello mushroom, fresh roasted garlic and
sun-dried tomato omelette, or some sort of fresh smoked fish.
2.
Guests of B&Bs are looking not just for a room to sleep in but the whole experience in
staying in a lovely setting, with interesting people to chat with and people present to
pamper them in any way possible.
Hotels/motels. These fac ilities are generally much more sterile in c harac ter relative to
Page 7

B&Bs.
The rooms are typically the same throughout the fac ility (unlike B&Bs where eac h room
is typically different). The guests of hotels generally use the hotel as a plac e to stay at
night.
The operator will usually see the guest when they chec k in and when they chec k out.
This differs from a B&B where the guests are encouraged to spend time in c ommunal
rooms and soc ialize with the operators and the other guests.
Breakfasts, if included, are sparse. The typical guests are looking for a room to stay in
at night and not much more than that.
5.0 Strategy and Implementation Summary

The Enchanted Vineyard Bed & Breakfast will be using advertising and membership in assoc iations
to drive in prospec tive customers. They will also use their website as a complete source of
information about the B&B. Missy will then turn these leads into customers through
unsurpassed attentiveness in one-on-one phone inquiries/c onversations.
5.1 Competitive Edge

The Enchanted Vineyard Bed & Breakfast's two competitive advantages are:
Attention to personalized service. While anyone at a B&B should reasonably expec t

good service, there are ways of setting yourself apart.
This will be done through the unrelenting pursuit of personal attention. In the Eugene
area there are several larger (more than six rooms) B&Bs that offer outstanding service,
but it is not personal. The service is provided by employees, not the owner.
At The Enchanted Vineyard Bed & Breakfast all interac tions with the customer will be with
Missy or John who see it as their duty to do whatever it takes to make the customer
feel at home.
The feeling of personal attention, or more ac curately defined as a sense of person

concern, really adds a positive dimension to the B&B experience. Not only will the
Stewarts be offering personal concern, but they will be providing the concern, not some
employee.
Uniqueness and beauty of the facility. The Enchanted Vineyard Bed & Breakfast will be
housed in the Stewart's home. The Stewarts will be renovating their farm house to
ac commodate their new guests. They will be building two more bedrooms with private
baths, a patio, and enlarging the common area.
One unique aspec t of The Enchanted Vineyard Bed & Breakfast is the setting within the
Lorane Valley region, known for its outstanding wine production housing both vineyards
and wineries.
To compliment this setting, The Enchanted Vineyard Bed & Breakfast will have a large
outside patio allowing guests to spend relaxing time outside with a nice view of the
Page 8

valley. Guests can also wander through The Enchanted Vineyard Bed & Breakfast's own
vineyard.
Each room in the B&B is 65% glass overlooking the hillside and vineyard. There is not a
room in the house that doesn't have a breath-taking view.
5.2 Sales Strategy

The Enchanted Vineyard Bed & Breakfast's sales strategy will be two pronged:
1.
2.
Personal attention in regard to calls of inquiry. It is Missy's strategy to be willing to

spend a fair amount of time on the phone to prospec tive clients. While most B&Bs will
be pleasant on the phone and willing to answer any question, the sooner they are off the
phone, the sooner they can get bac k to the work they were previously doing.
Missy has the attitude that the more time she can spend on the phone with inquiries, the
more likely she will be able to turn them into customers.
Very detailed website. Missy recognizes that over 95% of her clients have Web
ac cess and 80% used the Web to research their vac ations. This usage is compelling
enough to have a comprehensive website that offers enough information to allow the
visitor to make a dec ision to stay with The Enchanted Vineyard Bed & Breakfast.
The website will have 3D walk-through tours allowing people to see the different
bedrooms as well as common areas. Online pricing and reservations are also available
as well as a resource page that details the different ac tivities in the area.
While Missy would like to encourage people to call with questions, if they do not they
will be able answer almost all questions with the website.
Page 9

5.2.1 Sales Forecast
The first three months will be used for the renovation of the home to fully ac commodate
guests. Once complete the house will have five different rooms. There will be no sales ac tivity
during this time. By month four, the B&B will be ready to go. Missy will have already been
advertising, bec ome a B&B association member, as well as have formed a strategic relationship
with the University so business will ramp up fairly quickly. From month five on, business will
steadily grow. Beginning with month five, Missy will hire one full-time employee. This employee
will perform housecleaning as well as outdoor maintenance. This will free up Missy's time so she
can spend it with the clients.
Table: Sales Forecast

Sales Forecast
Year 1
Year 2
Year 3
Sales
$11,396
$42,000
$54,000
Travelers
Total Sales
$13,089
$11,265
$35,750
$60,000
$46,000
$148,000
$62,000
$49,000
$165,000
Direct Cost of Sales

Travelers
Subtotal Direct Cost of Sales
Year 1
$6,117
$7,031
$6,044
$19,193
Year 2
$22,260
$31,800
$24,380
$78,440
Year 3
$28,620
$32,860
$25,970
$87,450
Page 10

5.3 Milestones
The Enchanted Vineyard Bed & Breakfast will have several milestones early on:
1.
2.
3.
4.
Business plan completion. This will be done as a road map for the organization. While we
do not need a business plan to raise capital, it will be an indispensable tool for the
ongoing performance and improvement of the company.
Joining the different associations. This is, in effect, the coming out party for announcing
to the world that you are a real B&B, ready for business.
Completion of the fac ility renovations.
Our 100th c lient.
Table: Milestones
Milestones
Milestone
Business Plan Completion
Join Different Associations
Completion of Facility
Renovations
100th Client
Name me
Name me
Name me
Name me
Name me
Name me
Totals
Start Date
1/1/2001
2/1/2001
1/1/2001
End Date
1/1/2001
2/1/2001
4/1/2001
Budget
$0
$600
$200,000
Manager
ABC
ABC
ABC
Department
Department
Department
Department
7/1/2001
1/1/2003
1/1/2003
1/1/2003
1/1/2003
1/1/2003
1/1/2003
7/1/2001
1/15/2003
1/15/2003
1/15/2003
1/15/2003
1/15/2003
1/15/2003
$0
$0
$0
$0
$0
$0
$0
$200,600
ABC
ABC
ABC
ABC
ABC
ABC
ABC
Department
Department
Department
Department
Department
Department
Department
6.0 Management Summary

The Enchanted Vineyard Bed & Breakfast is owned and operated by Missy Stewart. It will be a
sole proprietorship. Missy has a degree in philosophy from Ponoma College and an MBA from
University of Oregon. While Missy was pursuing her undergraduate degree, she worked in a B&B
and had a wide range of responsibilities. This is the experience where she was first bit by the
B&B bug. She dreamed of some day having a B&B run from her house, with the excitement of
taking care of travelers.
Missy's concentration in school was in general management with the intent of someday
opening her own business. Missy participated in the PACE, a group project where teams of five
students worked together for two entire semesters creating their own c ompany and then
eventually selling it at the end of the year. Missy's group formed a service-based company which
was an invaluable experience for the needs she would fac e in opening up her own B&B.
Missy's education coupled with her prac tical experiences has given her the ideal skill-set required
for operating a B&B. The only other thing that is truly required is passion, and Missy recognized
her passion over seven years ago while working at a B&B. Missy has everything needed to
succeed and will fulfill her destiny.
Page 11

6.1 Personnel Plan
Missy will be the sole employee from months one to five. At month five things will be getting
busier and the need will develop for an additional person. This new employee will be used for
house cleaning and outside maintenance. This will free up Missy's time so she can spend more
time with the customers. John will be helping when possible, but John's contribution to the
company will be primarily emotional and financial support of Missy's dream. John will be covering
their living expenses while Missy is building the business. At some point within the first year the
revenue from the B&B will exceed the mortgage payments for the remodel and at some point
will cover the entire mortgage for the home.
Table: Personnel
Personnel Plan
Missy
Housekeeping/Outdoor Maintenance
Total People
Year 1
$3,000
$12,000
2
Year 2
$6,000
$18,000
2
Year 3
$12,000
$18,000
2
Total Payroll
$15,000
$24,000
$30,000
7.0 Financial Plan

The following sections will detail important financial information.
7.1 Important Assumptions

The following table highlights some of the important financial assumptions for The Enchanted
Vineyard Bed & Breakfast.
Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Year 1
1
10.00%
Year 2
2
10.00%
Year 3
3
10.00%
Long-term Interest Rate

Tax Rate
Other
10.00%
25.00%
0
10.00%
25.00%
0
10.00%
25.00%
0
Page 12

7.2 Break-even Analysis
The Break-even Analysis indicates that monthly revenue must exceed $8,600 to break even.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even
$8,674
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
54%
$4,017
Page 13

7.3 Projected Profit and Loss
The following table will indicate projected profit and loss.
Table: Profit and Loss

Pro Forma Profit and Loss
Sales
Other
Total Cost of Sales
Year 1
$35,750
$19,193
$0
$19,193
Year 2
$148,000
$78,440
$0
$78,440
Year 3
$165,000
$87,450
$0
$87,450
Gross Margin
Gross Margin %
$16,557
46.31%
$69,560
47.00%
$77,550
47.00%
Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
mortgage
$15,000
$1,800
$20,004
$0
$2,400
$1,470
$5,280
$24,000
$3,200
$20,004
$0
$2,400
$1,470
$5,280
$30,000
$3,800
$20,004
$2,000
$2,400
$1,470
$5,280
$2,250
$0
$3,600
$0
$4,500
$0
$48,204
$59,954
$69,454
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
($31,647)
($11,643)
$1,225
$0
$9,606
$29,610
$1,265
$2,085
$8,096
$28,100
$1,065
$1,758
Net Profit
Net Profit/Sales
($32,873)
-91.95%
$6,256
4.23%
$5,273
3.20%
Payroll Taxes
Other
Total Operating Expenses
Page 14

7.4 Projected Cash Flow
The following chart and table will indicate projected cash flow.
Page 15

Table: Cash Flow
Pro Forma Cash Flow
Year 1
Year 2
Year 3
Cash from Operations

Cash Sales
Cash from Receivables
Subtotal Cash from Operations
$25,025
$6,978
$32,003
$103,600
$32,634
$136,234
$115,500
$47,718
$163,218
Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
$0
$2,000
$3,800
$0
$0
$0
$0
$37,803
$0
$0
$0
$0
$0
$0
$0
$136,234
$0
$0
$0
$0
$0
$0
$0
$163,218
Year 1
Year 2
Year 3
$15,000
$31,690
$46,690
$24,000
$102,287
$126,287
$30,000
$110,868
$140,868
$0
$0
$0
$750
$0
$1,000
$0
$1,000
$0
$1,000
$0
$1,000
$0
$0
$0
$0
$6,000
$0
$0
$10,000
$5,000
Subtotal Cash Spent
$47,440
$134,287
$157,868
Net Cash Flow

Cash Balance
($9,637)
$1,563
$1,947
$3,510
$5,350
$8,860
Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Page 16

7.5 Projected Balance Sheet
The following table will indicate the projected balance sheet.
Table: Balance Sheet

Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Current Assets
Cash
Accounts Receivable
$1,563
$3,747
$3,510
$15,513
$8,860
$17,295
Inventory
Total Current Assets
$3,573
$1,500
$10,383
$12,920
$1,500
$33,443
$14,404
$1,500
$42,059
$200,000
$20,004
$179,996
$190,379
$206,000
$40,008
$165,992
$199,435
$216,000
$60,012
$155,988
$198,047
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$4,001
$4,400
$5,800
$14,201
$8,802
$3,400
$5,800
$18,002
$9,140
$2,400
$5,800
$17,340
Total Liabilities
$9,250
$23,451
$8,250
$26,252
$7,250
$24,590
Paid-in Capital
Retained Earnings
Earnings
$201,600
($1,800)
($32,873)
$201,600
($34,673)
$6,256
$201,600
($33,417)
$5,273
Total Capital
Total Liabilities and Capital
$166,927
$190,379
$173,183
$199,435
$173,456
$198,047
Net Worth
$166,927
$173,183
$173,456
Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
7.6 Business Ratios

The business ratios reflect both a cross- sectional analysis and time-series analysis of the
company's risk and profitability. The cross- sectional analysis consists of a comparison of our
firm's ratios and those of the hotel and motel industry averages. The reader will note that
there are some significant differences in the ratios, espec ially in regards to the way our company
is leveraged. This is due to the fac t that industry averages also include very large hotel chains
that usually have much higher capital costs and investments in long-term assets. Furthermore,
Enchanted Vineyards B&B has lower SG&A costs than other hotels and motels since B&Bs
usually provide fewer services than larger competitors.
Page 17

Table: Ratios
Ratio Analysis
Year 1
n.a.
Year 2
313.99%
Year 3
11.49%
Industry Profile
5.90%
1.97%
1.88%
0.79%
5.45%
94.55%
100.00%
7.78%
6.48%
0.75%
16.77%
83.23%
100.00%
8.73%
7.27%
0.76%
21.24%
78.76%
100.00%
5.00%
1.00%
26.00%
32.00%
68.00%
100.00%
7.46%
4.86%
12.32%
87.68%
9.03%
4.14%
13.16%
86.84%
8.76%
3.66%
12.42%
87.58%
19.40%
34.60%
54.00%
46.00%
Percent of Sales
Sales
100.00%
100.00%
100.00%
100.00%
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
46.31%
138.22%
5.03%
-88.52%
47.00%
42.64%
1.22%
6.49%
47.00%
43.67%
1.09%
4.91%
0.00%
75.10%
1.90%
2.50%
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
0.73
0.48
12.32%
-19.69%
-17.27%
1.86
1.14
13.16%
4.82%
4.18%
2.43
1.59
12.42%
4.05%
3.55%
1.45
1.05
54.00%
1.70%
3.70%
Additional Ratios
Net Profit Margin
Return on Equity
Year 1
-91.95%
-19.69%
Year 2
4.23%
3.61%
Year 3
3.20%
3.04%
n.a
n.a
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
2.86
55
8.85
8.92
2.86
79
9.51
12.17
2.86
121
6.40
12.17
n.a
n.a
n.a
n.a
Payment Days
Total Asset Turnover
27
0.19
22
0.74
29
0.83
n.a
n.a
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
0.14
0.61
0.15
0.69
0.14
0.71
n.a
n.a
($3,819)
$15,441
$24,718
n.a
-25.83
7.59
7.60
n.a
5.33
7%
0.22
0.21
1.35
9%
0.28
0.85
1.20
9%
0.60
0.95
n.a
n.a
n.a
n.a
Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Long-term Assets
Total Assets
Current Liabilities
Total Liabilities
Net Worth
Main Ratios
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Page 18

Dividend Payout
0.00
0.00
0.95
n.a
Page 19
Appendix
Table: Sales Forecast
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
0%
$0
$0
$0
$654
$745
$784
$804
$1,245
$1,587
$1,874
$2,245
$1,458
0%
$0
$0
$0
$654
$702
$754
$815
$1,345
$1,698
$1,985
$2,458
$2,678
0%
$0
$0
$0
$0
$0
$0
$598
$1,906
$965
$2,412
$654
$2,192
$712
$2,331
$800
$3,390
$1,874
$5,159
$1,787
$5,646
$1,987
$6,690
$1,888
$6,024

Month 1
$0
Month 2
$0
Month 3
$0
Month 4
$340
Month 5
$387
Month 6
$423
Month 7
$434
Month 8
$671
Month 9
$856
Month 10
$1,010
Month 11
$1,211
Month 12
$786
Travelers
$0
$0
$0
$0
$0
$0
$340
$311
$365
$502
$407
$353
$439
$384
$725
$431
$916
$1,010
$1,070
$964
$1,325
$1,071
$1,444
$1,018
Subtotal Direct Cost of Sales
$0
$0
$0
$991
$1,254
$1,182
$1,257
$1,828
$2,782
$3,044
$3,607
$3,248
Sales
Travelers
Total Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1
$250
$0
Month 2
$250
$0
Month 3
$250
$0
Month 4
$250
$0
Month 5
$250
$1,500
Month 6
$250
$1,500
Month 7
$250
$1,500
Month 8
$250
$1,500
Month 9
$250
$1,500
Month 10
$250
$1,500
Month 11
$250
$1,500
Month 12
$250
$1,500
Total People
Total Payroll
$250
$250
$250
$250
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
Missy
Housekeeping/Outdoor Maintenance
0%
0%
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Month 1
1
10.00%
Month 2
2
10.00%
Month 3
3
10.00%
Month 4
4
10.00%
Month 5
5
10.00%
Month 6
6
10.00%
Month 7
7
10.00%
Month 8
8
10.00%
Month 9
9
10.00%
Month 10
10
10.00%
Month 11
11
10.00%
Month 12
12
10.00%
Long-term Interest Rate
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Tax Rate
Other
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
25.00%
0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Month 1
$0
$0
Month 2
$0
$0
Month 3
$0
$0
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cost of Sales
$0
$0
$0
$991
$1,254
$1,182
$1,257
$1,828
$2,782
$3,044
$3,607
$3,248
$0
0.00%
$0
0.00%
$0
0.00%
$915
48.01%
$1,158
48.01%
$1,010
46.08%
$1,074
46.08%
$1,562
46.08%
$2,377
46.08%
$2,602
46.08%
$3,083
46.08%
$2,776
46.08%
Payroll
$250
$250
$250
$250
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
Sales and Marketing and Other

Expenses
Depreciation
Leased Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$1,667
$0
$200
$150
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$200
$120
$440
$38
$38
$38
$38
$263
$263
$263
$263
$263
$263
$263
$263
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,895
$2,865
$2,865
$2,865
$4,590
$4,590
$4,590
$4,590
$4,590
$4,590
$4,590
$4,590
($2,895)
($2,865)
($2,865)
($1,950)
($3,432)
($3,579)
($3,515)
($3,027)
($2,212)
($1,988)
($1,507)
($1,814)
EBITDA
Interest Expense
($1,228)
$103
($1,198)
$103
($1,198)
$103
($283)
$103
($1,765)
$102
($1,912)
$101
($1,848)
$101
($1,360)
$100
($545)
$99
($321)
$98
$160
$98
($147)
$114
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($2,998)
0.00%
($2,968)
0.00%
($2,968)
0.00%
($2,052)
-107.67%
($3,533)
-146.49%
($3,681)
-167.91%
($3,616)
-155.12%
($3,127)
-92.25%
($2,311)
-44.80%
($2,086)
-36.95%
($1,605)
-23.98%
($1,927)
-32.00%
Sales
Gross Margin
Gross Margin %
Month 4
$1,906
$991
Month 5
$2,412
$1,254
Month 6
$2,192
$1,182
Month 7
$2,331
$1,257
Month 8
$3,390
$1,828
Month 9
$5,159
$2,782
Month 10
$5,646
$3,044
Month 11
$6,690
$3,607
Month 12
$6,024
$3,248
Expenses
Utilities
Insurance
mortgage
Payroll Taxes
Other
Total Operating Expenses
Taxes Incurred
Net Profit
Net Profit/Sales
15%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash from Operations

Cash Sales
Cash from Receivables
$0
$0
$0
$0
$0
$0
$1,334
$0
$1,688
$19
$1,534
$577
$1,632
$721
$2,373
$659
$3,611
$710
$3,952
$1,035
$4,683
$1,553
$4,217
$1,704
Subtotal Cash from Operations
$0
$0
$0
$1,334
$1,707
$2,111
$2,353
$3,032
$4,321
$4,987
$6,236
$5,921
Cash Received
Additional Cash Received

Sales Tax, VAT, HST/GST Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Current Borrowing

New Other Liabilities (interest-free)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,800
$0
$0
$0
$0
$2,000
$0
New Long-term Liabilities

Sales of Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Investment Received

Subtotal Cash Received
$0
$0
$0
$0
$0
$0
$0
$1,334
$0
$1,707
$0
$2,111
$0
$2,353
$0
$3,032
$0
$8,121
$0
$4,987
$0
$6,236
$0
$7,921
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Spending
Bill Payments
$250
$36
$250
$1,080
$250
$1,051
$250
$1,084
$1,750
$2,062
$1,750
$2,398
$1,750
$2,384
$1,750
$2,650
$1,750
$3,774
$1,750
$5,086
$1,750
$4,634
$1,750
$5,451
Subtotal Spent on Operations
$286
$1,330
$1,301
$1,334
$3,812
$4,148
$4,134
$4,400
$5,524
$6,836
$6,384
$7,201
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing

Other Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$0
$0
$83
$83
$83
$83
$83
$83
$83
$83
$83
Purchase Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Purchase Long-term Assets

Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$286
$1,330
$1,301
$1,417
$3,895
$4,231
$4,218
$4,483
$5,608
$6,919
$6,467
$7,285
Net Cash Flow
($286)
($1,330)
($1,301)
($83)
($2,188)
($2,120)
($1,864)
($1,451)
$2,514
($1,932)
($232)
$636
Cash Balance
$10,914
$9,584
$8,283
$8,200
$6,012
$3,892
$2,028
$577
$3,091
$1,158
$926
$1,563
Expenditures
0.00%
Expenditures from Operations
Subtotal Cash Spent
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Starting Balances
Current Assets
Cash
Accounts Receivable
$11,200
$0
$10,914
$0
$9,584
$0
$8,283
$0
$8,200
$572
$6,012
$1,276
$3,892
$1,357
$2,028
$1,335
$577
$1,693
$3,091
$2,531
$1,158
$3,190
$926
$3,644
$1,563
$3,747
Inventory
$1,500
$1,500
$14,200
$1,500
$1,500
$13,914
$1,500
$1,500
$12,584
$1,500
$1,500
$11,283
$1,509
$1,500
$11,781
$1,379
$1,500
$10,168
$1,300
$1,500
$8,049
$1,383
$1,500
$6,245
$2,011
$1,500
$5,780
$3,060
$1,500
$10,181
$3,349
$1,500
$9,197
$3,968
$1,500
$10,039
$3,573
$1,500
$10,383
Long-term Assets
Long-term Assets
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
$200,000
Accumulated Depreciation
Total Long-term Assets
$0
$200,000
$1,667
$198,333
$3,334
$196,666
$5,001
$194,999
$6,668
$193,332
$8,335
$191,665
$10,002
$189,998
$11,669
$188,331
$13,336
$186,664
$15,003
$184,997
$16,670
$183,330
$18,337
$181,663
$20,004
$179,996
Total Assets
$214,200
$212,247
$209,250
$206,282
$205,113
$201,833
$198,047
$194,576
$192,444
$195,178
$192,527
$191,702
$190,379
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12

Current Liabilities
Accounts Payable
Current Borrowing
$0
$2,400
$1,045
$2,400
$1,016
$2,400
$1,016
$2,400
$1,982
$2,400
$2,319
$2,400
$2,297
$2,400
$2,525
$2,400
$3,604
$2,400
$4,933
$2,400
$4,451
$2,400
$5,314
$2,400
$4,001
$4,400
Other Current Liabilities

Subtotal Current Liabilities
$2,000
$4,400
$2,000
$5,445
$2,000
$5,416
$2,000
$5,416
$2,000
$6,382
$2,000
$6,719
$2,000
$6,697
$2,000
$6,925
$2,000
$8,004
$5,800
$13,133
$5,800
$12,651
$5,800
$13,514
$5,800
$14,201
$10,000
$10,000
$10,000
$10,000
$9,917
$9,833
$9,750
$9,667
$9,583
$9,500
$9,417
$9,333
$9,250
Total Liabilities
$14,400
$15,445
$15,416
$15,416
$16,298
$16,552
$16,447
$16,592
$17,587
$22,633
$22,067
$22,847
$23,451
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
$201,600
($1,800)
Paid-in Capital
Retained Earnings
Earnings
$0
($2,998)
($5,966)
($8,934)
($10,986)
($14,519)
($18,200)
($21,816)
($24,943)
($27,254)
($29,341)
($30,945)
($32,873)
Total Capital
$199,800
$196,802
$193,834
$190,867
$188,814
$185,281
$181,600
$177,984
$174,857
$172,546
$170,459
$168,855
$166,927
Total Liabilities and Capital
$214,200
$212,247
$209,250
$206,282
$205,113
$201,833
$198,047
$194,576
$192,444
$195,178
$192,527
$191,702
$190,379
Net Worth
$199,800
$196,802
$193,834
$190,867
$188,814
$185,281
$181,600
$177,984
$174,857
$172,546
$170,459
$168,855
$166,927
Page 6

Enchanted Vineyard

Uploaded by

Copyright:

Available Formats

You might also like

Enchanted Vineyard

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Enchanted Vineyard

Uploaded by

Copyright:

Available Formats

This sample business plan has been made available to users of Business Plan Pro, business planning

The undersigned reader ac knowledges that the information provided by

The Enchanted Vineyard Bed & Breakfast

The Enchanted Vineyard Bed & Breakfast

To create a B&B whose primary goal is to exceed customer's expec tations.

2.0 Company Summary

2.1 Company Ownership

2.2 Start-up Summary

The Enchanted Vineyard Bed & Breakfast

The Enchanted Vineyard Bed & Breakfast

Liabilities and Capital

Other Current Liabilities (interest-free)

Loss at Start-up (Start-up Expenses)

Total Capital and Liabilities

The Enchanted Vineyard Bed & Breakfast

4.0 Market Analysis Summary

The Enchanted Vineyard Bed & Breakfast

Table: Market Analysis

4.2 Target Market Segment Strategy

The Enchanted Vineyard Bed & Breakfast

Association membership and advertising. A large number of visitors will look to

4.3 Competition and Buying Patterns

The Enchanted Vineyard Bed & Breakfast

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

Attention to personalized service. While anyone at a B&B should reasonably expec t

The feeling of personal attention, or more ac curately defined as a sense of person

The Enchanted Vineyard Bed & Breakfast

5.2 Sales Strategy

Personal attention in regard to calls of inquiry. It is Missy's strategy to be willing to

The Enchanted Vineyard Bed & Breakfast

Table: Sales Forecast

Direct Cost of Sales

The Enchanted Vineyard Bed & Breakfast

6.0 Management Summary

The Enchanted Vineyard Bed & Breakfast

7.0 Financial Plan

7.1 Important Assumptions

Table: General Assumptions

Long-term Interest Rate

The Enchanted Vineyard Bed & Breakfast

Table: Break-even Analysis

The Enchanted Vineyard Bed & Breakfast

Table: Profit and Loss

Profit Before Interest and Taxes

The Enchanted Vineyard Bed & Breakfast

The Enchanted Vineyard Bed & Breakfast

Cash from Operations

Additional Cash Received

Subtotal Cash Spent

Net Cash Flow

The Enchanted Vineyard Bed & Breakfast

Table: Balance Sheet

7.6 Business Ratios

The Enchanted Vineyard Bed & Breakfast

The Enchanted Vineyard Bed & Breakfast

Direct Cost of Sales

Subtotal Direct Cost of Sales

Long-term Interest Rate