Finance and Operations

My name is Tetyana Meshko and I am the finance supervisor. My primarily

responsibilities involve providing managements with financial analyses, development
budgets, and accounting reports; analyzing financial feasibility for the most complex
proposed projects; conducting market research to forecast trends and business
conditions. I'm in charge of preparing financial reports, budgets and financial
statements (primary source documents, income books, reporting to Tax
Administration). As a finance supervisor, I am responsible for financial forecasting
and profound risks analysis. I monitor and manage bank accounts and their balances.
My duties also include compliance with taxation legislation and reviewing staff
expense reporting and processing staff reimbursement.

My department is divided into several subdivisions, and each year my team produce
an annual report with three sets of figures: profit and loss account, balance sheet and
cash flow statement. We cooperate with other departments, to help them plan, budget
and manage their budgets and actual expenses, we help with overall financially
related business decisions to ensure our chain of cafes is profitable. Our financial
year ends on December 31st. Soon after this, we publish preliminary results. The full
report and accounts are published a few months later. When our expenditure exceeds
the revenue the budget has a deficit. Revenue and expenditure forecasting is the most
fundamental step in the process of budget preparation. Adequate planning of
recurrent and capital expenditure depends critically on an accurate forecast of
revenue availability.

Financial Plan
Our main concerns will be aggressive time management, so that our labor costs stay
under control, and proper purchasing, preparation and food handling to keep food
costs down, as well as managing the higher costs of fruit and dairy products.
Secondarily, hiring the best pastry chefs, training them properly and retaining them
will be a critical component to good pastry costs. A good pastry chef does not neglect
customers' dietary requirements, and all his decisions aren't made lightly. Growth will
be sustained through a contribution to our budget fund, pursuant to sponsorship
scheme. Our long term plan is to continue to maintain a cash flow of 19-20% while
increasing sales annually, thereby increasing actual profit.

Sales Forecast
One thing is certain when it comes to cat café business, if your café is centrally
positioned, you will always attract customers cum sales and that will sure translate to
increase in revenue generation for the business.

We are well positioned to take on the available market in Ukraine and we are quite
optimistic that we will meet our set target of generating enough income/profits from
the first six months of operation and grow the business and our clientele base.
We have been able to examine the cat café industry and we have analyzed our
chances in the industry and we have been able to come up with the following sales
forecast. Below are the financial analysis for Crumbs & Whiskers Cat Café. It is
based on the location of our business and other factors.

Тут перший графік, де пише за 2020-2022 роки і після графіку я маю

сказати слова наведені нижче

This projection was done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any
major competitor offering same products and customer care services as we do within
same location. Please note that the above projection might be lower and at the same
time it might be higher.

Projected Profit and Loss

2016 is not a full year on the yearly Profit and Loss. Highlights include a bottom line
of better than 18% for every year. The numbers reflect realism in the start up and
continuing operations of our cafes. We begin contributing aggressively to an
expansion fund in the half year. We begin accruing for vacations immediately, and we
are budgeting money from the insurance line for health benefits, all as an early
commitment to the future prosperity of our staff. These numbers are an excellent
indication that our partners and staff will all prosper and grow with the Crumbs &
Whiskers! ГРАФІКИ ЩОМІСЯЧНИЙ І ЩОРІЧНИЙ Два наступні

Business Ratios
The table follows with our main business ratios. We do intend to improve gross
margin, collection days, sales and labor controls.

ТУТ ТАБЛИЦЯ З КОЕФІЦІЄНТАМИ

Startup Expenditure (Budget)

These are the key areas where we spent our startup capital:
• The total fee for registering the business in Ukraine
• Legal expenses for obtaining licenses and permits
• Marketing promotion expenses for the grand opening of Crumbs & Whiskers
Cat Café and as well as flyer printing
• The cost for insurance (general liability, animal mortality insurance, workers’
compensation and property casualty) coverage at a total premium.
• The cost for payment of rent
• The cost for construction of a standard cat café and kitchen
• Operational cost for the first 3 months (salaries of employees, payments of
bills)
 • The cost for start-up inventory (supply of cats, pet food and medications,
coffee, sodas, bottled water, flours, sugar, butter, fruit and other ingredients
making ingredients and packaging materials)
• The cost for store equipment (cash register, security, ventilation, signage)
• The cost for the purchase of furniture (TVs, Sound System, tables and chairs)
• The cost of launching a website
• The cost for our opening party

Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Crumbs & Whiskers Cat Café is to
ensure that we continue to make available a wide range of cakes, smoothies and
juices, deliver quality services, and improvise on how to do things faster and cheaper.

We are quite aware that our customers are key component to the growth and survival
of our business hence we are going to continuously engage them to give us ideas on
how to serve them better and the menu and services they want to see in our cat café.
We will not waste time in adopting new technology, best practices and diversifying
our services; expand our product and service offerings once the need arises. Crumbs
& Whiskers Cat Café will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of.

Check List/Milestone
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility to fit into a standard cat cafe: In
Progress
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic
appliances, office appliances and CCTV: In progress

Our Pricing Strategy

Since our cat café is located in a popular area, the business can bring in significant
revenue. Even at ₴100 per person, just 10 visitors can generate ₴1000 in an hour. At
₴200 per person, the revenue increases to ₴2000 per hour with 10 visitors.
In view of the above, the pricing of Crumbs & Whiskers Cat Café will be moderate
and on par with competitors so customers feel they receive value when purchasing
their menu items.

Payment Options
The payment policy adopted by Crumbs & Whiskers Cat Café is all inclusive because
we are quite aware that different customers prefer different payment options as it
suits them but at the same time, we will ensure that we abide by the financial rules
and regulation of Ukraine.

Here are the payment options that Crumbs & Whiskers Cat Café will make available
to her clients;
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client
make payment for access fee and for delectable cakes and nonalcoholic drinks
purchase without any stress on their part. Our bank account numbers will be made
available on our website and promotional materials.