Upload
shelly-chen
View
17
Download
0
Embed Size (px)
DESCRIPTION
Can-Sian Restaurant. By: Ye Yang Sang Kim Natsuko Soejima Vince Wang Chloe Liu Jin Liu. Elements of a Business Plan. Goals and Missions Management Team Location Product / Service Description Market Opportunity Competition Analysis Financial Projections - PowerPoint PPT Presentation
Citation preview
Can-Sian Restaurant Can-Sian Restaurant Can-Sian Restaurant Can-Sian Restaurant By Ye YangBy Ye Yang Sang KimSang Kim
Natsuko Soejima Natsuko Soejima Vince WangVince WangChloe LiuChloe Liu
Jin LiuJin Liu
Elements of a Business Plan
bull 1048580Goals and Missionsbull 1048580Management Team bull Locationbull 1048580Product Service Description bull 1048580Market Opportunity bull 1048580Competition Analysis bull 1048580Financial Projectionsbull Legal Requirement
Goalbull Produce good reputation and
royalty from consumers bull We expect to have a constant 15
annual growth rate
Missionbull We supply the good quality and
delicious food with reasonable price
bull We provide a good balance diet to customer
bull We provide a good atmosphere for the family to spend time together
Management Teambull Experience in catering industry for
10years bull Chief Chef was awarded the Best
Chef in Korea in 2000
LocationThe West Lethbridge Advantages
Population of Lethbridge
LocationThe strongest population growth
bullUniversity StudentsbullNew Housing
No direct competitorsNot enough restaurants in West
LocationSpecific Sitebull West Village Mall
ndash Easy access from University Drivendash Close to a dense population of the
target marketndash Walking distance of Universityndash Enough parking spaces
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Elements of a Business Plan
bull 1048580Goals and Missionsbull 1048580Management Team bull Locationbull 1048580Product Service Description bull 1048580Market Opportunity bull 1048580Competition Analysis bull 1048580Financial Projectionsbull Legal Requirement
Goalbull Produce good reputation and
royalty from consumers bull We expect to have a constant 15
annual growth rate
Missionbull We supply the good quality and
delicious food with reasonable price
bull We provide a good balance diet to customer
bull We provide a good atmosphere for the family to spend time together
Management Teambull Experience in catering industry for
10years bull Chief Chef was awarded the Best
Chef in Korea in 2000
LocationThe West Lethbridge Advantages
Population of Lethbridge
LocationThe strongest population growth
bullUniversity StudentsbullNew Housing
No direct competitorsNot enough restaurants in West
LocationSpecific Sitebull West Village Mall
ndash Easy access from University Drivendash Close to a dense population of the
target marketndash Walking distance of Universityndash Enough parking spaces
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Goalbull Produce good reputation and
royalty from consumers bull We expect to have a constant 15
annual growth rate
Missionbull We supply the good quality and
delicious food with reasonable price
bull We provide a good balance diet to customer
bull We provide a good atmosphere for the family to spend time together
Management Teambull Experience in catering industry for
10years bull Chief Chef was awarded the Best
Chef in Korea in 2000
LocationThe West Lethbridge Advantages
Population of Lethbridge
LocationThe strongest population growth
bullUniversity StudentsbullNew Housing
No direct competitorsNot enough restaurants in West
LocationSpecific Sitebull West Village Mall
ndash Easy access from University Drivendash Close to a dense population of the
target marketndash Walking distance of Universityndash Enough parking spaces
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Missionbull We supply the good quality and
delicious food with reasonable price
bull We provide a good balance diet to customer
bull We provide a good atmosphere for the family to spend time together
Management Teambull Experience in catering industry for
10years bull Chief Chef was awarded the Best
Chef in Korea in 2000
LocationThe West Lethbridge Advantages
Population of Lethbridge
LocationThe strongest population growth
bullUniversity StudentsbullNew Housing
No direct competitorsNot enough restaurants in West
LocationSpecific Sitebull West Village Mall
ndash Easy access from University Drivendash Close to a dense population of the
target marketndash Walking distance of Universityndash Enough parking spaces
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Management Teambull Experience in catering industry for
10years bull Chief Chef was awarded the Best
Chef in Korea in 2000
LocationThe West Lethbridge Advantages
Population of Lethbridge
LocationThe strongest population growth
bullUniversity StudentsbullNew Housing
No direct competitorsNot enough restaurants in West
LocationSpecific Sitebull West Village Mall
ndash Easy access from University Drivendash Close to a dense population of the
target marketndash Walking distance of Universityndash Enough parking spaces
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
LocationThe West Lethbridge Advantages
Population of Lethbridge
LocationThe strongest population growth
bullUniversity StudentsbullNew Housing
No direct competitorsNot enough restaurants in West
LocationSpecific Sitebull West Village Mall
ndash Easy access from University Drivendash Close to a dense population of the
target marketndash Walking distance of Universityndash Enough parking spaces
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
LocationThe strongest population growth
bullUniversity StudentsbullNew Housing
No direct competitorsNot enough restaurants in West
LocationSpecific Sitebull West Village Mall
ndash Easy access from University Drivendash Close to a dense population of the
target marketndash Walking distance of Universityndash Enough parking spaces
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
LocationSpecific Sitebull West Village Mall
ndash Easy access from University Drivendash Close to a dense population of the
target marketndash Walking distance of Universityndash Enough parking spaces
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
ProductQuality must be at the fore of our
productbull Quality in Foodbull Quality in Service
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
What Type of food we provided
bull Chinese Foodbull Korean Foodbull Japanese Food
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Integrating supply chainThree main ingredients Meat (Beef chicken and fork)Vegetables (typical vs basic)Other ingredients (spices salt sugar
and etc)
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Continued5 conditions Cost Charges for transportation Time Adequacy and speed of transit Capability The competency of suppliers
to provide amounts of ingredients we request
bull Dependability Reliability of service regarding time loss and damage
bull Frequency Scheduling
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Meat supplier Local (Lethbridge) transaction
Advantage1Best quality
2Cost effective low cost for transportation
3Easily monitor How the supplier produces products (quality of meat)
4 Customized products
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Vegetable supplier Typical ingredients (Chinese white cabbage Japanese
parsley)
Transaction proceeded in Calgary (Chinatown)
1) The cost for transportation
2) Possible economic detriments regarding to time damage and loss
of vegetables
3) Typical services offered by supplier (delivery discounts credit promotion promotional support materials guarantees and technical assistance) are not guaranteed
4) Need to acquire dependable suppliers and capability of managing adequate inventory level (constant and accurate inventory check)
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
continuedBasic ingredients (onion garlic ricehellip)
bull Transaction proceeded in local marketsbull Local farmers
Integrated market Farmerrsquos market in Lethbridge
None or inexpensive cost for transportation delivery service
suppliers offer and closeness to markets
Face to face contact with suppliers (if vegetables have bad
quality)
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Supplier for Other ingredients
Ingredients like sauce salt pepper sugar
Easily run out but easily purchased from local retailers (Wal-Mart Sears Canada)
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
InventoryUsing inventory organizer (Chart or notice
board) and collective inventory management involving all managers and employees
1) Unnecessary to purchase them in large quantities
(expense of cash out of our pockets)
2) Accurate estimation from chefs assistants and employees
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Two ways to purchase equipments
bull Buying the used Equipmentsbull Leasing
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
3 conditions for purchasing decision
Sales service credit sale guarantee
Repair
Affordability reduce star-up cost
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Marketing opportunities
target market
bull families in Westsidebull University Students
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Marketing strategybull Taste and service
bull Pricing
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
CompetitionAdvantagebull No Chinese restaurant in Westsidebull Only have the fast food chain
availableDisadvantagebull Low competitive with downtown
restaurant
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Advertising bull Flyer
bull Coupon
bull Word of Mouth
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Sales promotionsbull Lunch combo
bull Discount for every Tuesday
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Personnelbull 2 Chefsbull 1 Store Managerbull 4 Part time waiters
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Item Cost
Equipment 15000
Inventory 10000
Wages (first 2 months)
19520
Utilities
Deposite 100
First 2 months
800
Start Up Cost
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Rent
Deposite 1000
First 2 months 20000
Advertising 400
Insurance 3700
Licences and permits 850
Others Pre-Paid 200
Contingancy 1000
Total Start up Cost
72570
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
2006 2007 2008
Net Sales 288000 34500 380160
Cost of Good Sold 43200 51840 57024
Gross Margin on Sales 244800 276480 304128
Expenses
Rent 120000 120000 120000
Selling Expense
Advertising Expense 1200 1200 1200
Wages and Salaries 117120 117120 117120
Depreciation Expense 2000 2000 2000
Insurance Expense 3600 3600 3600
Utilities 4800 4800 4800
Total Operating Expense 248720 248720 248720
Profit Before Interest and Tax
-3920 27760 55408
Interest payment 8820 7140 5460
Net Income before tax -12740 20620 49948
Income Tax 0 5155 12487
Net Income -12740 15465 37461
Pro Forma Income Statement
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Break- Even Analysis
bull The Fixed Cost is $248720 bull The Contribution as of Sales is 80bull The Break-Even Point is $310900
Break-Even Analysis
-400000
-200000
0
200000
400000
0 310900 621800
Revenue
Profi
t Los
s
Profit Loss
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Legal Requirements
Legal StructureLegal Structure Limited partnership with 4 silent partnerLimited partnership with 4 silent partner
s s
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Legal Requirements (Contrsquod)
Licenses and TaxesProvincial business licenseTaxes Provincial Sale Taxes (PST) Goods and Services Taxes (GST)
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
Legal Requirements
(Contrsquod)Intellectual Property Prote
ction Gain a trademark from government fo
r the name of our restaurantmdashCan-Sian
QUESTIONQUESTIONQUESTIONQUESTION
QUESTIONQUESTIONQUESTIONQUESTION