Little Caesars Frachise

Business Plan

Latoya Pless

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Table of Contents 1.0 Executive Summary ................................................................................................................................ 4

1.1 Objectives........................................................................................................................................... 4

1.2 Mission and Vision ............................................................................................................................. 4

1.3 Keys to Success .................................................................................................................................. 4

1.4 Start-up costs and funding ................................................................................................................. 5

1.5 Company Ownership .......................................................................................................................... 5

1.6 Products and Services ........................................................................................................................ 6

1.7 Market ................................................................................................................................................ 6

1.8 Strategy .............................................................................................................................................. 6

1.9 Management ...................................................................................................................................... 6

1.10 Financials .......................................................................................................................................... 6

1.11 Investor Considerations ................................................................................................................... 7

1.12 Disclaimer ......................................................................................................................................... 7

2.0 Company Summary ................................................................................................................................ 7

2.1 Start-up Summary .............................................................................................................................. 7

2.2 Start-up Funding ................................................................................................................................ 9

2.3 Company Ownership .......................................................................................................................... 9

3.0 Products and Services ............................................................................................................................ 9

3.1 Business Model ................................................................................................................................ 10

3.1.1 Competitive Landscape ............................................................................................................. 10

4.0 Market Analysis Summary ................................................................................................................... 10

4.1 Market Segmentation ...................................................................................................................... 11

4.2 Target Market Segment Strategy ..................................................................................................... 11

5.0 Strategy and Implementation Summary .............................................................................................. 11

5.1 SWOT Analysis .................................................................................................................................. 12

5.1.1 Strengths ................................................................................................................................... 12

5.1.2 Weaknesses............................................................................................................................... 12

5.1.3 Opportunities ............................................................................................................................ 12

5.1.4 Threats ...................................................................................................................................... 13

5.2 Competitive Edge ............................................................................................................................. 13

5.3 Sales Strategy ................................................................................................................................... 13

5.3.1 Sales Forecast ............................................................................................................................ 13

5.4 Milestones ........................................................................................................................................ 16

5.5 Marketing Strategy .......................................................................................................................... 17

5.6 Pricing Strategy ................................................................................................................................ 17

5.7 Sourcing Strategy ............................................................................................................................. 18

5.8 Location and Facilities ...................................................................................................................... 18

6.0 Management Summary ....................................................................................................................... 18

6.1 Personnel Plan ................................................................................................................................. 18

7.0 Financial Plan ....................................................................................................................................... 19

7.1 Break-even Analysis ......................................................................................................................... 19

7.2 Projected Profit and Loss ................................................................................................................. 20

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7.3 Projected Cash Flow ......................................................................................................................... 23

7.4 Projected Balance Sheet .................................................................................................................. 25

7.5 Business Ratios ................................................................................................................................. 26

7.6 Important Assumptions ................................................................................................................... 29

7.6.1 Risks .......................................................................................................................................... 29

7.6.2 Entry Strategy ............................................................................................................................ 30

7.6.3 Investor Interest ........................................................................................................................ 30

7.6.4 Exit Strategy .............................................................................................................................. 31

APPPENDIX ................................................................................................................................................. 33

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1.0 Executive Summary

This business plan will show how a total investment of only $106,000 could yield cumulative net

profits in excess of $141,000 over a three-year period, and average monthly sales of $125,000,

while maintaining adequate levels of liquidity. The purpose of this plan is to secure additional funding from an investor and a bank ($96,000 investment, and $100,000 ten-year term business loan), to cover the start-up costs. Little Caesar’s-Camp Creek Marketplace is a start-up business dedicated to providing great value pizza to the residents of Atlanta, GA, in a manner that generates fair and equitable returns for present and future owners, and best value to our customers. We specialize in creating and offering a variety of delicious pizzas. Atlanta, GA has experienced explosive growth over the past five years. Over one million residents now live in the area. Local businesses are slowly catching up with this new opportunity. We are opening Little Caesar’s at Camp Creek Marketplace. Currently, the closest pizza restaurant is within the marketplace. Little Caesar’s will offer top

quality pizza with great value, something that many Americans look for in a product in this tough economic times.

1.1 Objectives

To attract a minimum of 1000 regular customers per day for pizza take-out and

delivery, in the first year of operations;

To offer our customers delicious pizza with the best value price, and provide outstanding customer experience by serving the pizzas quick and fast, measured by minimum 10 percent yearly sales growth, and customer complaints less than 1 percent.

To generate positive cash flow from operations, and at least 3 percent net profits to sales

1.2 Mission and Vision

Little Caesar’s-Camp Creek Marketplace’s mission is to offer residents of Atlanta, GA the best value

pizza n the area. We are committed to providing top quality great value pizza that our customers

expect. Our vision is to become the first choice of pizza in Atlanta, GA, and a respected company -- as

measured by our customers, our employees, our shareholders, and the community we live in. Our values are critical to our success. They are the strong foundation of Little Caesar’s, they define

who we are, and set us apart from our competitors. They underlie our vision of the future. These

values include:

• Performance excellence. We act like responsible owners, always seeking to meet

or exceed expectations. • Teamwork. We act as a team, committed to each other, and bound by trust and loyalty. • Integrity. We treat one another, and all our stakeholders with dignity and respect.

Honesty, ethical behavior, and integrity are fundamental characteristics of our business conduct.

1.3 Keys to Success Our keys to success are:

• Top quality, great value products that will build and maintain customer loyalty. • A business location that will assure high company visibility and a high flow of

customers. • Proven management ability to successfully run a similar business. • Our commitment to continuous improvement and total quality services.

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1.4 Start-up costs and funding

After spending several months searching for a convenient location, the owners decided to lease a commercial space in Camp Creek Marketplace, located in a densely populated area of Atlanta, GA. The start-up capital will be used for paying the franchise fee, legal expenses, kitchen inventory and equipment, packing and other materials, insurance, rent, promotion, business sign, and inventory on hand at start-up, as detailed in the company summary section of this plan. We have estimated total start-up costs of $206,000. The numbers in the start-up and the start-

up funding tables are meant to reflect these estimates. The company capital will be $106,000. Latoya Pless, as co-owner, will provide the part of the start-up financing in the amount of $10,000. Approximately $96,000 additional funding is needed. The purpose of this business plan is to secure financing for that amount. An investor and co-owner are welcome to participate in the company's capital for the amount of $96,000, and could be offered a portion of 90.56 percent ownership of the $106,000 company capital. The funds provided by the investor will be used to buy equipment, and to cover part of the start-up expenses. More details about the investor's potential interest in the company are provided in the important assumptions section of this plan. For the remaining $100,000 additional financing needed to cover the start-up costs, the company plans to receive a ten-year term commercial loan facility which will meet the cash flow requirements. The borrowed funds will be used exclusively to buy equipment, based on the list that will be made available to the lending institution. The loan could be repaid in equal monthly installments over a ten-year period. Our cash-flow analysis demonstrates the company's ability to repay the loan and meet the

interest payment obligations, while maintaining adequate liquidity and generating positive cash

flow, and sufficient cash reserves for unforeseen future events.

1.5 Company Ownership

Little Caesar’s-Camp Creek Marketplace will be a privately held C-corporation owned Latoya

Pless. A new investor will be invited to participate in the company's capital. At the time of formation, Little Caesar’s-Camp Creek Marketplace plans to issue 1,060 shares of $100 par value common stock. The issued and outstanding common stock would be $106,000. Latoya Pless would receive 100 shares, at $100 par value, or 10 percent. In return for investing $96,000 in the company's capital, the new investor would receive 960

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

YEAR 1 YEAR 2 YEAR 3

Highlights

Sales

Gross Margin

Net Profit

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shares at $100 par value, or 90% percent ownership. The new investor would be invited to discuss the quantity and quality of the stock to be issued, before the incorporation procedures are started. Additional information about investor's interest, entry, and exit strategy is available in the important assumptions section of this plan.

1.6 Products and Services

Little Caesar’s-Camp Creek Marketplace will offer a wide variety of pizzas, as well as sauces, sodas,

crazy breads, and chicken wings.

1.7 Market

Atlanta, GA is a growing low-to-middle-class area, counting more than one million residents. There are about five hundred businesses close to our location. Most of these residents are families of three or more. The average income for the area is $43,861. With continued growth in the area, opportunities to serve Atlanta, GA residents will increase. The

company will sell to individuals, but it will also accept some occasional catering jobs to

individuals and companies in the area. The main market segments are: a) individuals (retail customers) accounting for more than 90 percent of our sales, and b) local businesses (corporate customers) which, in terms of purchase orders, typically make larger orders for their employees and business needs.

1.8 Strategy

Our strategy is based on delivering a strong customer value proposition in a niche market.

We are looking to offer Atlanta, GA and its surrounding areas top quality, great value pizza. We are building our marketing infrastructure so that we can eventually reach more customers with the same pizza offering. We focus on satisfying the needs of low-to-middle class residents and companies located in Atlanta, GA.

1.9 Management

Our management is expected to use resources wisely, operate profitably, pay debts, and abide by laws and regulations. Our management philosophy is based on team work, responsibility, and mutual respect. People who work at Little Caesar’s-Camp Creek Marketplace would want to be part of our team because we operate in an environment that encourages creativity, diversity, growth, and performance. Latoya Pless will be the manager of Little Caesars. She has more than twenty three years

relevant experience in the retails industry, and holds various degrees and certificates in

management and hospitality.

1.10 Financials

According to our conservative estimates, Little Caesar’s-Camp Creek Marketplace is expected to

maintain a healthy financial position over the next three years. Our company is expected to break

even in the second month of operations. We also expect to be profitable in the first year of operations, with profits increasing over the next

two years, as we establish and increase our customer base. Our main concern will be to have sufficient cash on hand to meet our payment obligations and be prepared for unexpected needs of cash. Our conservative projections indicate that our business is able to generate positive cash flows and sufficient cash reserves. The ratio analysis clearly shows that Little Caesar’s-Camp Creek Marketplace financial position

is expected to remain strong, as measured by its liquidity, long-term solvency, and cash flow adequacy ratios. The company's profitability, as measured by its profitability ratios, is excellent, and will gradually

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increase over the next three years.

1.11 Investor Considerations

For investing $96,000 in the company's capital, the new investor would receive a portion of ownership of 90.56 percent (960 shares of $100 par value). As the investor will hold 90 percent of the voting stock, he or she will exercise control over the company's policies. According to our conservative estimates, the cumulative dividends that would be paid to the new

investor, based on 90.56 percent of ownership, over the next five years, would be $239,124.

Key measures of the expected benefit from the investment are presented in the important

assumptions section of this plan. They clearly show that the risks and benefits of such an

investment would be balanced. We recognize that any investor in a start-up company, no matter how well on paper, ultimately needs an exit vehicle. Our purpose is to provide the best alternatives to protect investor's interest, while maintaining the potential growth of our company, the liquidity, and the profitability of future operations. There are several options (exit strategies) that could be discussed while considering alternative

methods for the investor to turn illiquid securities into readily tradable securities or cash. These

options are discussed in the final section of this business plan.

1.12 Disclaimer

The current unfavorable economic conditions and prospects are carefully considered, and the estimates included in the plan are conservative. However, investors are advised to exercise caution when considering investment alternatives because actual data almost always differ from projections. This business plan is designed to help investors better understand the potential risks, costs and benefits of this business project, but it is not intended, and is not to be considered in itself or any part of it, as an investment offer or solicitation, as regulated by law. It was developed for sample purposes, and any resemblance to real situations, people, or data would be purely coincidental.

2.0 Company Summary

Little Caesar’s is pizza take out service which started its operations on May 8, 1959. From its

single store opened 50 years ago in Garden City, Michigan, it has now grown into a global chain by

franchising operations.

La Toya Pless, franchisee of Little Caesars-Camp Creek Marketplace has 23 years experience in

customer service and fashion retail sales. She started as a Sales Floor representative to Assistant

Manager and Store Manager. She will be inviting two investors to start this business.

Their goal is to provide “top-quality pizza made with fresh ingredients at a great price.” The company will serve a fifteen-mile area with over 500,000 residents, and a rapidly growing population. The location is very favorable, providing high visibility and a large flow of customers. Accordingly, the rent that was accounted for in this plan is higher than in other areas of the city. Little Caesars price is in line with their core value, which is providing top quality pizza with fresh ingredients at a great price. Customers get real value for their money, especially in the economic recession. Thus, we will maintain the high level of customer satisfaction.

2.1 Start-up Summary

After spending several months searching for a convenient location, the owners decided to lease a store space in Camp Creek Marketplace. The start-up capital will be used for legal expenses, kitchen inventory and equipment, packing and other materials, insurance, rent, promotion and business sign, and inventory on hand at start-up, as shown in the table below.

The highest initial expenditure is for the franchise fee. This is required to launch the franchise. After paying our franchise fee, our only liability to the franchise will be the 6% cost of sales (royalty fee) and 3% advertising fee.

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Cash requirements for start-up are $50,000 and most of this will sit in a bank saving account for easy access, and most of this will sit in a bank savings account for easy access. The first month change in accounts payable will top $ 16,347, so we need this $ 50,000 in the event sales are not what we expected. If the sales are off the projected target, this $50,000 will help us gather enough cash to pay off our accounts payable within 30 days.

The principals will invest a combined $106,000 to start-up the franchise. We expect the majority of this will be paid back to the owners within two years of operations, in the form of dividends. This investment makes up 50% of the of the total start-up requirements for the company.

The remainder consists of $100,000 long term loan guaranteed by a financing institution. The term of the expected loan is 10 years.

Table: Start-up

Start-up

Requirements

Start-up Expenses

Franchise Fee $20,000

Kitchen Inventory and Supplies $5,000

Insurance $1,500

Rent $3,000

Grand Opening Advertising $15,000

Training Expenses $10,000

Licenses and Permits $4,000

Utility Expenses $2,500

Total Start-up Expenses $61,000

Start-up Assets

Cash Required $50,000

Start-up Inventory $20,000

Leasehold Improvements $50,000

Furniture, Fixtures and Equipment $25,000

Total Assets $145,000

Total Requirements $206,000

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Expenses Assets Investment Loans

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2.2 Start-up Funding

We have estimated total start-up costs of $206,000. The numbers in the start-up and the start-

up funding tables are meant to reflect these estimates. The company capital will be $106,000.

LatoyaPless, as co-owner, will provide start-up financing in the amount of $10,000. Approximately $196,000 additional funding is needed. The purpose of this business plan is to secure financing for that amount. An investor and co-owner is welcome to participate in the company's capital for the amount of $96,000.00 and could be offered a portion of 90 percent ownership of the $106,000 company capital. The funds provided by the investor will be used to pay the franchise fee, and to cover part of the start-up expenses. More details about the investor's potential interest in the company are provided in the important assumptions section of this plan. For the remaining $100,000 additional financing needed to cover the start-up costs, the company plans to receive a ten-year term commercial loan facility which will meet the cash flow requirements. The borrowed funds will be used exclusively to pay the franchise fee and buy equipment and leasehold improvements, based on the list that will be made available to the lending institution. The loan could be repaid in equal monthly installments over a ten-year period. Our cash-flow analysis demonstrates the company's ability to repay the loan and meet the

interest payment obligations, while maintaining adequate liquidity and generating positive cash

flow and sufficient cash reserves for unforeseen future events.

For conservative purposes, the annual interest rate has been estimated at 12 percent. The actual interest rate and the borrowing terms will be negotiated with the participating bank. Strong collateral could be provided by an SBA guarantee, and by the owners' personal assets (for example, cash collateral in the form of certificates of deposit, to cover the remaining collateral requirements in addition to the guarantee).

2.3 Company Ownership

Little Caesars-Camp Creek Marketplace (LC-CCM) will be a privately held C-corporation owned in

majority by Ms. Latoya Pless. New investors will be invited to participate in the company's capital. At the time of formation LC-CCM plans to issue 1,060 shares of $100 par value common stock. The

issued and outstanding common stock would be $106,000. Latoyawould receive 100 shares of

$100 par value, or 9.43 percent ownership. In return for investing $96,000 in the company capital, the new investors would receive 960 shares of $100 par value, or 90.56 percent ownership. The new investors would be invited to discuss the quantity and quality of the stock to be issued, before the incorporation procedures are started. Additional information about investor's interest, entry, and exit strategy is available in the important assumptions section of this plan.

3.0 Products and Services Little Caesars-Camp Creek Marketplace will offer will offer a wide variety of pizza, and other products as follows;

1. Hot N’ Ready Pepperoni 2. Hot N’ Ready Cheese 3. Ultimate Supreme Pizza 4. 3 Meat Pizza 5. Hula Hawaiian Pizza 6. Custom Pizza 7. Hot N’ Ready Pizza Combo 8. Hot N’ Ready Caesar Wings 9. Italian Cheese Bread 10. Caesar Dips 11. Pepsi Products

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Pizza is served at the counter, for take-out. We take orders online, by phone, or at our location.

3.1 Business Model

Little Caesars-Camp Creek Marketplace is a typical take-out restaurant where customers order

food and drinks at the counter, as opposed to sit-down restaurants that provide table service. Wait-

staff is therefore not included in our work team. As explained in the previous section, our main products are a variety of pizzas that are served at the counter, for take-out, as street snacks. We take orders online, by phone, or at our location. To prepare pizza, we use high quality ingredients and traditional recipes. State-of-the-art energy-efficient food preparation equipment and technology will be available to our kitchen staff, as we plan to invest our capital in valuable long-term assets. Pizza will be served hot and ready to eat. Special package offers protection and quality conservation during transportation.

3.1.1 Competitive Landscape

Currently, the closest pizza restaurant, Papa John’s is also within Camp Creek Marketplace shopping center, our intended location in the Eastpoint, GA. Little Caesars will offer top quality pizza at a greater value, something that most Americans look for during this economic recession times. Other main competitors that we have identified in Eastpoint,GA area are: Best Pizza. Domino’s Pizza, and Pizza Hut. According to our own market survey (see Appendix M), we distinguish ourselves from them by providing great value quality pizza. Other differences are included in the next table.

Competitors We have, they don't They have, we don't Lower prices

table service

Best Pizza Hot and ready pizza

various other food items

better equipment

lower prices, own delivery

better location, better

Domino’s Pizza Delivery service

quality, faster service

customers

friendly pizza staff luxury environment, high-

Pizza Hut end customers, music and

Other color lighting

4.0 Market Analysis Summary Atlanta, GA is a growing low-to-middle-class area, counting more than one million residents. The presence of Hartsfield-Jackson International Airport paved the way for economic growth of the area. The airport can accommodate an average of 252,200 passengers daily. The average income for the area is $45,000. With continued growth in the area due to the presence of Hartsfield-Jackson International Airport,

opportunities to serve the public will increase. The company will sell to individuals, but it will also

accept some occasional catering jobs to individuals and companies in the area.

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4.1 Market Segmentation As explained above, the main market segments are: a) individuals (residents and passengers) accounting for more than 90 percent of our sales, and b) local businesses (corporate customers) which, in terms of purchase orders, typically make larger orders for their employees and business needs. Next illustration shows the market segmentation, taking into account, for conservative purposes, only the potential number of individuals that would order pizza. Of the 252,000 daily passengers of Hartsfield-Jackson International Airport, we estimate that 20% of them would go to Camp Creek Marketplace to have a take-out snack, and out of this, 30% prefers pizza and then the 10% who wants to have their pizza quick and fast, thus we project sales of 1,512 pieces pizzas a day. Of the 1, 512 pizzas a day served, 90% goes to retails customers (passengers) and 10% to businesses.

4.2 Target Market Segment Strategy

Little Caesars-Camp Creek Marketplace will focus on its target market, low-to-middle class residents in Atlanta, GA and passengers of Hartsfield-Jackson International Airport, along with

local businesses that are located in the area. Typically, according to our own market survey, the target individual customers prefer to order pizza more than once a month, as an occasional alternative to an expensive and time-consuming lunch or dinner. Businesses prefer to order pizza for their employees, or on different occasions or less exclusive business events. We will strive to abide with Little Caesar’s core value, which is serving top quality pizza at great value, give utmost convenience and service excellence to our customers. By always focusing on providing great value for money, we will be able to build customer

loyalty and word-of-mouth sales that will help us become number the number pizza store in

Eastpoint, GA. Target Market Share. The estimated total market in Atlanta, GA is 250,000 pizza pies per month, and our target market share would be 6.6 percent (16,600 pies / 250,000 pies = .066). We believe this target market share to be reasonable and achievable. See more details in the sales forecast section of this plan

5.0 Strategy and Implementation Summary

Our strategy is based on delivering a strong customer value proposition in a niche market. We are looking to offer Atlanta, GA and the passengers of Hartsfield-Jackson International Airport a new

choice in pizza options. We are building our marketing infrastructure so that we can eventually reach more customers with

Individuals90%

Businesses10%

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the same pizza offering. We focus on satisfying the needs of low-to-middle class residents of Atlanta, GA and passengers of Hartsfield-Jackson International Airport and the companies located in Atlanta, GA. Little Caesars-Camp Creek Marketplace will use the advertising tools created by the main office to promote the business. Adequate funding has been accounted for when projecting the advertising expenses. We intend to spend the marketing dollars in the most cost-effective way. Therefore, many other advertising options will be evaluated during the project implementation, to make sure that we achieve best results.

5.1 SWOT Analysis

The SWOT analysis provides us with an excellent opportunity to examine and evaluate the internal strengths and weaknesses of Little Caesars-Camp Creek Marketplace. It also allows us to focus on the external opportunities presented by the business environment as well as potential threats. Next sections explain major strengths, weaknesses, opportunities, and threats that Little

Caesars-Camp Creek Marketplace should be aware of.

5.1.1 Strengths

Little Caesars-Camp Creek Marketplace has a valuable inventory of strengths that would

help it to be successful. These strengths include:

a) Location

b) Top quality pizza at great value

c) Little Caesar’s successful franchise system for the past 50 years

d) State-of-the art, energy efficient pizza equipment and technology for quick and fast service

e) Clear vision of the market need: we know what the customers wants, we have the technology, and we can give them pizza products that brings the two together.

5.1.2 Weaknesses

Strengths are valuable, but it is useful to realize the weaknesses. We have identified some of

our weaknesses:

a) cost factor associated with franchising

b) we are new in town

c) start-up challenges

5.1.3 Opportunities

Little Caesar’s-Camp Creek Marketplace strengths and the awareness of its weaknesses will help it

capitalize on emerging opportunities. These opportunities include, but are not limited to:

a) Fast growing population in Atlanta, GA b) No other specialized pizza take-out restaurant within a five-mile radius from our chosen location c) A large segment of low-to-class population, huge number of passengers at Hartsfield-Jackson International Airport which is only minutes away from our location, and the more than five hundred businesses in the area.

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d) Increased preference of customers for affordable pizza due to economic recession.

5.1.4 Threats

Threats Little Caesars-Camp Creek Marketplace should be aware of include:

a) slow recovery process of the economy from the current crisis

b) changes in the business environment that might reduce our sales

c) higher taxes in the future

d) the commercial property is leased, not owned by our company

e) tight credit times, higher interest rate, and higher inflation rate than predicted.

5.2 Competitive Edge Little Caesar’s-Camp Creek Marketplace competitive edge is:

• Location: Little Caesar’s-Camp is located in the heart of Atlanta, GA, near the Hartsfield-Jackson International Airport. This is the busiest airport in America, serving an average of 252,000 passengers daily.

• Lower operating cost and reasonable prices: Since Little Caesar’s-Camp Creek Marketplace policy is to provide top quality pizza product with great value, it will be able to purchase state of the art equipment that can produce hot and ready pizzas by volume resulting to lower operating cost and great value prices.

• Excellent products and services, quick and fast pizza preparation and cooking, convenience in buying.

5.3 Sales Strategy

Though Little Caesar’s-Camp Creek Marketplace is a global pizza brand, still we recognize that we

will need to prove our company's worth to Atlanta,GA and Hartsfield-Jackson International

Airport customers, in order to earn respect and business. Our sales strategy is based on the belief that there will be a regular flow of first-time customers, due to our convenient location. The real sales effort will be to focus on the conversion of each first-time customer into a long-term customer relationship, where these customers come regularly to our pizzeria, and also bring or recommend new friends to share the experience of a great pizza. This focus recognizes that it would cost our company less money to convert a new customer into a long-term relationship, than it does to attract a new customer. With this in mind, our sales activities will concentrate on keeping existing customers happy, and always meet or exceed their expectations. Consistent, customer-centric service is the absolute requirement in the hospitality industry, and so it is for all our employees. Every member of our team will be empowered to deal with our customers' requests in such a way that no customer should leave dissatisfied. Problem solving will be encouraged throughout the organization, and it would also be fair to say that each employee is part of the sales staff, not only the first-line servers.

5.3.1 Sales Forecast

The following table and charts illustrate the sales forecast for three years. Though Little Caesar’s is a popular franchise, we still predict that the first few months will be be slower, a consequence of being new in town, struggling to become more visible within the community. A steady growth cycle will occur as the months pass. Profitability is projected to occur during the first half of the first year.

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The increasing sales forecast suggest an important potential growth. Our projected sales are

actually net sales, which consist of the gross proceeds from sales of merchandise -- gross sales --

less returns and allowances. The projected average monthly sales are approximately $125,000. Considering an average price of $7.57 per pie, Little Caesar’s-Camp Creek Marketplace, Inc. would need to sell on average 550 pies each day ($125,000 average monthly sales / $7.57 per pie / 30 business days per month). Using our equipment and technology we will be able to produce maximum 1500 pies per day (theoretical operating capacity). However the normal operating capacity, which takes into account the usual breaks and the idle periods, is only 1125 pies per day, or 75 percent (usually 12 working hours per day). That means that the average projected 550 pies per day would be reached at only 44 percent of normal operating capacity (550 pies / 1125 pies = .44), which is a reasonable target. The question remains, will we be able to attract and maintain at least the minimum number of customers required to order 550 pies per day? If each customer would order one pie it would mean a total of 16600 customers per month. This figure is disputable because the companies typically order a larger number of pizzas, and customers buy more than one pie due to its great value price. However, it is a good starting point for our analysis. According to a recent study, pizza sales account for 18 percent of all food service sales and, despite the economic crisis, continues to outpace overall restaurant growth. Our own market survey shows that one in five persons interviewed use to order pizza at least once a month. The population in the Atlanta, GA plus the passengers of Hartsfield-Jackson International Airport exceeds 1 million, which means that, theoretically, the maximum number of pizza ordered per month at different restaurants in the area (total market) would be 200,000 pies (1 million passengers / 5 passenger. To this number we would add the orders that will be made by many of the five hundred businesses in the area, which we estimate at 5 percent of the retail market, respectively 50,000 pies (1,000,000 pies x .05). The estimated total market in Atlanta, GA is 250,000 pies per month, and our target market share

would be 6.6 percent (16,600 pies / 250,000 pies = .066). We believe this target market share to

be reasonable and achievable.

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YEAR 1 YEAR 2 YEAR 3

Hot N' Ready Pepperoni 103,050 113,355 124,691

Hot N' Ready Cheese 47,980 52,778 58,056

Ultimate Supreme Pizza 24,155 26,571 29,228

3 Meat Treat Pizza 16,510 18,161 19,977

Hula Hawaian Pizza 7,940 8,734 9,607

Veggie Pizza 5,346 5,881 6,469

Other 53,461 58,807 64,687

Total Unit Sales 258,442 284,286 312,715

Unit Prices

Hot N' Ready Pepperoni $5.00 $5.00 $5.00

Hot N' Ready Cheese $5.00 $5.00 $5.00

Ultimate Supreme Pizza $10.99 $10.99 $10.99

3 Meat Treat Pizza $8.99 $8.99 $8.99

Hula Hawaian Pizza $8.99 $8.99 $8.99

Veggie Pizza $9.99 $9.99 $9.99

Other $4.00 $4.00 $4.00

Sales YEAR 1 YEAR 2 YEAR 3

Hot N' Ready Pepperoni $515,250 $566,775 $623,453

Hot N' Ready Cheese $239,900 $263,890 $290,279

Ultimate Supreme Pizza $265,463 $292,010 $321,211

3 Meat Treat Pizza $148,425 $163,267 $179,594

Hula Hawaian Pizza $71,381 $78,519 $86,371

Veggie Pizza $53,407 $58,748 $64,623

Other $213,843 $235,227 $258,750

Total Sales $1,507,669 $1,658,436 $1,824,280

Direct Unit Costs

Hot N' Ready Pepperoni $3.50 $3.50 $3.50

Hot N' Ready Cheese $3.50 $3.50 $3.50

Ultimate Supreme Pizza $7.69 $7.69 $7.69

3 Meat Treat Pizza $6.29 $6.29 $6.29

Hula Hawaian Pizza $6.29 $6.29 $6.29

Veggie Pizza $6.99 $6.99 $6.99

Other $2.80 $2.80 $2.80

Direct Cost of Sales

Hot N' Ready Pepperoni 360,675 396,743 436,417

Hot N' Ready Cheese 167,930 184,723 203,195

Ultimate Supreme Pizza 185,824 204,407 224,848

3 Meat Treat Pizza 103,897 114,287 125,716

Hula Hawaian Pizza 49,966 54,963 60,459

Veggie Pizza 37,385 41,124 45,236

Other 149,690 164,659 181,125

Subtotal Direct Cost of Sales 1,055,368 1,160,905 1,276,996

Gross Profit 452,301 497,531 547,284

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5.4 Milestones

The following table lists important start-up program milestones, with dates and budgets for each. The schedule indicates Little Caesar’s-Camp Creek Marketplace emphasis on planning for

implementation.

Milestones

Start Date Days End Date Budget

Market Research Feb-13 32 3/5/2013 $800

Business Plan Mar-13 20 3/25/2013 $675

Legal Documents Mar-13 68 6/1/2013 $1,200

Insurance Mar-13 97 6/30/2013 $1,500

Find Location, Rent Mar-13 31 4/15/2013 $2,000

Loan, Leasehold Improvements Apr-13 59 5/30/2013 $50,000

Promotion & Business Sign May-13 60 6/30/2013 $15,000

Other Start-up Activities May-13 46 6/30/2013 $84,825

Purchase Equipment Jun-13 10 6/25/2013 $25,000

Purchase Inventory & Materials Jun-13 15 6/30/2013 $25,000

Totals

$206,000

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

Sales Monthly

Other

Veggie Pizza

Hula Hawaian Pizza

3 Meat Treat Pizza

Ultimate Supreme Pizza

Hot N' Ready Cheese

Hot N' Ready Pepperoni

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

YEAR 1 YEAR 2 YEAR 3

Sales By Year

Other

Veggie Pizza

Hula Hawaian Pizza

3 Meat Treat Pizza

Ultimate Supreme Pizza

Hot N' Ready Cheese

Hot N' Ready Pepperoni

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5.5 Marketing Strategy

The marketing strategy of Little Caesar’s-Camp Creek Marketplace centers on creating and developing a unique identity that clearly defines our market niche in terms that benefit our retail

and corporate customers. Market needs and trends. Since our target market includes two major segments -- low-to-middle class residents in the Atlanta, GA, and passengers of Hartsfield-Jackson International Airport-- their most important needs are fast service and great value. One of the key points of Little Caesar’s-Camp Creek Marketplace strategy is to focus on these target segments that wants quick and fast pizza with great value. Factors such as current local trends and historical sales data of similar businesses in the area

ensure that the high demand for pizza will continue over the next five years.

Trends are in our favor: the last study we saw published in the Atlanta, GA area has fast-food and limited-service restaurant sales growing at 10 percent per year, while fine-dining restaurants, for example, experienced and will probably continue to see more than 20 percent decrease in sales. Little Caesar’s Franchise Package comes with advertising costs which have been proven effective over the years. This is one of our keys to success.

5.6 Pricing Strategy

Our retail and corporate customers are especially sensitive to product value. Little Caesar’s-Camp Creek Marketplace, Inc. must ensure that price and service are of great value to our customers. Top quality pizza will be offered at the best price. Therefore, our pricing strategy will be the most competitive but we will not rely on the selling price to overshadow other advantages of doing business with our company, such as other lines of top-quality pizza products that are hot and ready, with great value price and backed by fast service.

Feb-13 Mar-13 Apr-13 Jun-13 Jul-13

Market Research

Business Plan

Pay Franchise Fee

Legal Documents

Insurance

Find Location, Rent

Loan, Leasehold Improvements

Promotion & Business Sign

Other Start-up Activities

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5.7 Sourcing Strategy All of our pizzeria equipment, food supplies, ingredients, packing and accessories for pizza preparation will be provided by Little Caesar’s Franchising System.

5.8 Location and Facilities

Little Caesar’s-Camp Creek Marketplace is very favorable, providing high visibility, high traffic and

a high flow of customers (passengers from Hartsfield-Jackson International Airport) wishing to

stop at our restaurant to pick up a pizza. Accordingly, the rent that was accounted for in this plan

is higher than in other areas of the city. The restaurant will be located with Camp Creek Marketplace which provides shopping, dining, and

entertainment. According to Cole Real Estate, “completed in 2003, Camp Creek Marketplace is a Class A, 425,000-square-foot, 93% occupied power center. It is strategically located at the

intersection of I-285 and Camp Creek Parkway, a major east-west thoroughfare, in a dense retail corridor just three miles west of Atlanta’s Hartsfield-Jackson International Airport. With a

population of 600,000 residents within 10 miles of the center, and the nearest comparable power center approximately 15 to 20 miles away, Camp Creek serves a large trade area.”

All these characteristics of the location are consistent with Little Caesar’s goal of providing great

value pizza for Atlanta, GA. The restaurant will utilize 1250 square feet. The market rent in this high profile area is between

$1.90 and $2.40 per square foot per month. We have estimated $3,000 monthly rent expense

(1,250 square feet x $2.40 per square foot per month).

6.0 Management Summary Latoya Riley, owner and general manager will be responsible for all administrative functions, purchasing, inventory control and promotions.

Ms. Riley began as a Sales floor associate in an upscale Brooklyn, NY boutique in 1991, and in those years advanced to become one of the stores more prominent sales associates and assistant store manager.

She also functioned as the inside sales contact and handled a variety of special services for the boutique. In addition to her role as a sales floor representative, she also held positions as an assistant manager and Store Manager.

In addition to her retail experience, Ms. Riley is drawing on 23 years in the customer service industry.

Born in Brooklyn, New York, Ms. Pless is a graduate of the City University of New York in New York. There she earned a Bachelor of Arts degree, majoring in psychology with concentration in sociology. During the time of her formal education she was employed for four years with The NYC Department of Education, (NYCDOE) a branch of municipal government in New York City that manages the city's public school system. In addition LaToya was an active member of AAA, the American Auto club Association.

Ms. Riley, 35, is a resident of Atlanta, Georgia, and is a supporter of selected organizations such as Covenant House GA and Job Corps of America.

6.1 Personnel Plan

The personnel plan reflects the need to bolster our capabilities to match our positioning. Little

Caesar’s-Camp Creek Marketplace will have the following staff:

• Manager • Cook • Five Part-time Helps

In our experience, a team of seven multi-skilled employees works best for our kind of business. Working as a team is critical to our success. We recognize that human resources are Little Caesar’s most valuable asset. Our personnel strategy focuses on selecting, training, rewarding, and

19 | P a g e

stimulating all employees in order to build employee loyalty, and increase performance. It will be easy to find and select the best new members of our team. The traditional local food-service industry, well represented in the area, along with local colleges and schools, have contributed to the formation and growth of many skilled employees. In the selection process, the background check is a must in this line of business. As our restaurant will be open Monday through Sunday from 11:00 AM to 11:00 PM, the team of seven can operate effectively only by using alternative work schedules that take into account the busiest periods of the day, the time needed to prepare the food before opening, and a forty hours week. In addition to salaries, important bonuses and incentives are included in the personnel table that will be used to reward employee performance, on a pay-for-performance basis. The cornerstone of our personnel plan is to maximize productivity and minimize labor burden of the company's

operating expenses, while maintaining strong employee commitment to the success of operations.

Personnel Plan

YEAR 1 YEAR 2 YEAR 3

Manager $22,800 $25,080 $27,588

Cook $20,400 $22,440 $24,684

Part-time Help $16,320 $17,952 $19,747

Part-time Help $16,320 $17,952 $19,747

Part-time Help $16,320 $17,952 $19,747

Part-time Help $16,320 $17,952 $19,747

Part-time Help $16,320 $17,952 $19,747 Bonuses and Incentives $7,800 $8,580 $9,438

Total Payroll $132,600 $145,860 $160,446

Total People 7 7 7

7.0 Financial Plan According to our conservative estimates, Little Caesar’s-Camp Creek Marketplace is expected to maintain a healthy financial position over the next three years. The following plan outlines the financial development of our company. The business will be initially financed by a $100,000 ten-year term loan and a total capital investment of $106,000 (Latoya Pless $10,000, plus $96,000 from investors). The source to repay the loan will be the cash flow generated from operations. The company will also finance growth through cash flow. The projected financial statements have been prepared in accordance with the general accounting principles, and necessarily include some amounts that are based on reasonable estimates and judgement. For accounting purposes, the long-term assets are expensed using the straight-line depreciation method, and inventory is accounted for based on the First-In, First-Out (FIFO) method. The following sections outline important financial information.

7.1 Break-even Analysis

For our break-even analysis, we assume fixed costs of approximately $20,280 per month, which include payroll, utilities, insurance, rent and other fixed costs. We need to sell about 11,330 pies for minimum $85,920 per month to break even, based on our assumptions. Since our normal operating capacity is 1,125 pies per day (33,750 pies for $255,000 per month, as explained in the sales forecast section), and the average projected sales of $125,000 per month, or 550 pies per day (at only 44 percent of normal operating capacity) are expected to be much greater than the computed break-even point, we believe that our company is likely to easily reach and maintain profitability.

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Little Caesar’s-Camp Creek Marketplace is expected to break even in the second month of operations.

BREAK EVEN ANALYSIS

Monthly Units Break-even 11,330

Monthly Revenue Break-even $85,920

Assumptions:

Average Per-Unit Revenue $1.79

Average Per-Unit Variable Cost $5.78

Estimated Monthly Fixed Cost $20,280

7.2 Projected Profit and Loss

We expect to be profitable in the first year of operations, with profits increasing over the next two

years, as we establish and increase our customer base. The following table and charts show the projected profit and loss for three years.

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Pro Forma Profit and Loss

YEAR 1 YEAR 2 YEAR 3

Sales $1,507,669 $1,658,436 $1,824,280

Direct Costs of Goods $1,055,368 $1,160,905 $1,276,996

Franchisor Royalty $90,460 $99,506 $109,457

Total Cost of Sales $1,145,828 $1,260,411 $1,386,452

Gross Margin $361,841 $398,025 $437,827

Gross Margin % 24.00% 24.00% 24.00%

Expenses Payroll $132,600 $145,860 $160,446

Marketing Expenses $45,230 $49,753 $54,728

Depreciation $10,500 $10,500 $10,500

Office Supplies $1,200 $1,320 $1,452

Utilities $6,600 $7,260 $7,986

Insurance $18,000 $19,800 $21,780

Rent $36,000 $39,600 $43,560 Payroll Taxes and Benefits $38,454 $42,299 $46,529

Other $2,400 $2,640 $2,904 Total Operating Expenses $290,984 $319,032 $349,886

Profit Before Interest and Taxes $70,856 $78,992 $87,941

EBITDA $81,356 $89,492 $98,441

Interest Expense $12,000 $12,000 $12,000

Taxes Incurred $17,657 $20,098 $22,782

Net Profit $41,200 $46,895 $53,159

Net Profit/Sales 3% 3% 3%

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(8,000)

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12

Profit Monthly

-

10,000

20,000

30,000

40,000

50,000

60,000

YEAR 1 YEAR 2 YEAR 3

Profit Yearly

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7.3 Projected Cash Flow

Many profitable companies go bankrupt because of cash flow deficiencies. That is why our main concern will be to have sufficient cash on hand to meet our payment obligations, and be prepared for unexpected needs of cash. Our conservative projections indicate that our business is able to generate positive cash flows and sufficient cash reserves. In addition to normal cash inflows and outflows, we will focus on establishing sufficient cash reserves for contingencies. That includes a possible line of credit with our bank that could be used in slow sales periods as well. This is a good way to control the cash flow risk. In addition, excess cash, as projected, should not remain idle, especially during periods of high interest rates. Management will consider investing idle funds in time deposits or certificates of deposit at banks, in government securities such as U.S. Treasury notes, or in other trading securities (cash equivalents).

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12

Gross Margin Monthly

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

YEAR 1 YEAR 2 YEAR 3

Gross Margin Yearly

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The following table and chart show the projected cash flow for three years.

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Cash

Net Cash Flow

Cash Balance

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PRO-FORMA CASH FLOW MONTHLY

YEAR 1 YEAR 2 YEAR 3

CASH RECEIVED Cash from Operations Cash Sales

$1,507,669 $1,658,436 $1,824,280

Cash from Receivables

$0 $0 $0

Subtotal Cash from Operations $1,507,669 $1,658,436 $1,824,280

ADDITIONAL CASH RECEIVED Sales Tax, VAT,HST/GST Received 8.50% $128,152 $140,967 $155,064

New Current Borrowing

$0 New Other Liabilities (Interest Free)

$0

New Long Term Liabilities

$100,000 Sales of Other Current Assets

$0

Sales of Long-term Assests

$0 New Investment Received

$96,000

Subtotal Cash Received $1,831,821 $1,799,403 $1,979,343

EXPENDITURES Expenditures from Operations Cash Spending

$132,600 $145,860 $160,446

Bill Payments

$1,140,469 $1,254,516 $1,379,967

Subtotal Spent on Operations $1,273,069 $1,400,376 $1,540,413

ADDITIONAL CASH SPENT Sales Tax, VAT,HST/GST Paid Out

$128,152 $140,967 $155,064 Principal Repayment of Current Borrowing

$10,000 $10,000 $10,000

Other Liabilities Principal Repayment

$0 Long term Liabilities Principal

Repayment

$0 Purchase Other Current Assets

$0

Purchase Long Term Assets

$0 Dividends

$0

Subtotal Cash Spent $1,411,221 $1,551,343 $1,705,477

Net Cash Flow $420,600 $248,060 $273,866

Cash Balance $470,600 $718,660 $992,527

7.4 Projected Balance Sheet

We expect a healthy growth in net worth and a healthy financial position. We do not project any

real trouble meeting our debt obligations, as long as we achieve our specific objectives. The following table is the projected balance sheet for three years.

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ASSETS YEAR 1 YEAR 2 YEAR 3

Current Assets Cash $470,600 $718,660 $992,527

Accounts Receivable Inventory $181,815 $199,996 $219,996

Other Current Assets Total Current Assets $652,415 $918,656 $1,212,522

Long Term Assets Long Term Assets $0 $0 $0

Accumulated Depreciation ($10,500) ($21,000) ($31,500)

Total Long Term Assets -$10,500 -$21,000 -$31,500

TOTAL ASSETS $641,915 $897,656 $1,181,022

LIABILITIES AND CAPITAL Current Liabilities Accounts Payable $465,715 $693,587 $968,671

Current Borrowing Other Current Liabilities Subtotal Current Liabilities $465,715 $693,587 $968,671

Long Term Liabilities $90,000 $80,000 $70,000

TOTAL LIABILITIES $555,715 $773,587 $1,038,671

Paid In Capital $106,000 $106,000 $106,000

Retained Earnings ($61,000) ($19,800) $27,095

Earnings $41,200 $46,895 $53,159

TOTAL CAPITAL $86,200 $124,069 $142,352 TOTAL LIABILITIES AND CAPITAL $641,915 $897,656 $1,181,022

NET WORTH $86,200 $124,069 $142,352

7.5 Business Ratios

Business ratios for the five years of this plan are shown below. Management's main responsibility is to put into action and to carry out this plan that is designed to achieve the financial performance objectives. Little Caesar’s-Camp Creek Marketplace’s management will constantly monitor key financial performance measures, determine the cause of any deviations in the measures, and take corrective actions. A comprehensive ratio analysis can be made to evaluate the financial condition and operating

results of our company, based on the calculations included in the next table.The financial

ratios are calculated based on our conservative projections in terms of liquidity, profitability,

long-term solvency, cash flow adequacy, and market strength. Liquidity ratios (current and quick ratios, receivables turnover, average collection days, inventory turnover, average days inventory on hand, payables turnover, and average payment days) indicate a good debt-paying ability, the effectiveness of customer credit policies, and a number of days needed to collect receivables, to sell inventory, and to pay account payable that is consistent with best business practices in our industry. Liquidity is critical to building a strong and sustainable foundation for future growth. In dealing with short-term liquidity, we will need to correctly address three key issues: managing cash during seasonal cycles, setting sales and credit policies, and financing receivables. Profitability ratios (profit margin, assets turnover, return on assets, and return on equity) indicate a good profitability of operations, efficient use of assets to produce sales, a good earning power of the assets, and a good profitability of stockholders' investments. In addition, we will focus on increasing the gross margin by improving our purchasing methods to reduce the cost of goods sold. Reducing the selling price is not a preferred option. Our price strategy is flexible, but we are aware that we cannot compete on price only; there will always be a competitor offering a lower price. Long-term solvency ratios (debt to equity, interest coverage) indicate a good capital structure,

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and more than adequate creditor's protection from default on interest payments. Cash flow adequacy ratios (cash flow yield, cash flow to sales, cash flow to assets, and net cash flow) indicate a good ability to generate operating cash flows in relation to net income, a good ability of sales and assets to generate operating cash flows, and positive cash flow after providing for commitments. Market strength ratios (price/earnings ratio and dividend yield) measure investor confidence in

the company, and will be computed only after the company will go public so market price per

share can be determined. This ratio analysis clearly shows that Little Caesar’s-Camp Creek Marketplace’s financial

condition is expected to remain strong, as measured by its liquidity, long-term solvency, and

cash flow adequacy ratios.

The company's profitability, as measured by its profitability ratios, is excellent, and will gradually increase over the next three years.

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FINANCIAL RATIOS YEAR 1 YEAR 1 YEAR 1

Sales Growth 0.00% 10.00% 10.00%

Percent of Total Assets

Accounts Receivable - - -

Inventory 28.32% 22.28% 18.63%

Other Current Assets - - -

Total Current Assets 101.64% 102.34% 102.67%

Long-Term Assets -1.64% -2.34% -2.67%

Total Assets 100.00% 100.00% 100.00%

Current Liabilities 84% 90% 93%

Long-term Liabilities 16% 10% 7%

Total Liabilities 87% 86% 88%

Net Worth 13% 14% 12%

Percent of Sales Sales 100.00% 100.00% 100.00%

Gross Margin 24.00% 24.00% 24.00% Selling, General and Administrative Expenses 3.00% 3.00% 3.00%

Advertising Expenses 0.00% 0.00% 0.00%

Profit Before Interest and Taxes 5.40% 5.40% 5.40%

Main Ratios

Current 1.40 1.32 1.25

Quick 1.01 1.04 1.02

Total Debt to Total Assets 73% 77% 82%

Pre-Tax Return on Net Worth 103% 80% 78%

Pre-Tax Return on Assets 15% 12% 0%

Additional Ratios

Net Profit Margin 3% 3% 3%

Return on Equity 48% 38% 37%

Activity Ratios

Accounts Receivable Turnover - - -

Collection Days - - -

Inventory Turnover 5.80 5.80 5.80

Payment Days - - -

Total Asset Turnover 6% 5% 5%

Debt Ratios

Debt to Net Worth 6.45 6.24 7.30

Current Liab. to Liab. 0.84 0.90 0.93

Liquidity Ratios

Net Working Capital $186,700 $225,069 $243,852

Interest Coverage 6.90 7.58 8.33

Additional Ratios

Assets to Sales 43% 54% 65%

Current Debt/Total Assets 73% 77% 82%

Acid Test 1.01 1.04 1.02

Sales/Net Worth 17.49 13.37 12.82

Dividend Payout - - -

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7.6 Important Assumptions

Due to the current economic uncertainties, our assumptions are conservative. In judging and

estimating, we have chosen the alternatives that are least likely to overstate assets and income. The key underlying assumptions are:

• we assume a slow economic recovery process over the next five years, but no major depression

• we assume access to capital and financing sufficient to maintain our financial plan as shown in the tables

• we assume continued popularity of pizza services in our target market Other important assumptions are included in the next table

YEAR 1 YEAR 2 YEAR 3

Current Interest Rate 9.00% 9.00% 9.00%

Long-term Interest Rate 12.00% 12.00% 12.00%

Tax Rate 30.00% 30.00% 30.00%

Inventory on Hand (days) 21 21 21

Inflation Rate 0.41% 0.41% 0.41%

Max Op. Capacity (pizzas/day) 1500 1500 1500

Other 0 0 0

7.6.1 Risks

Company management is responsible for constantly evaluating risks and taking corrective actions

to provide adequate prevention, control and risk reserves. We have identified several risks that are

associated with our business project. There are many possible classifications of risks, but for the purposes of this plan, we have chosen

to group them as follows:

a) External Risks (These risks come from outside the company and are more difficult to

prevent and control.)

Economic depression. Current trends indicate that the economic downturn is reaching the bottom, and chances are that the recovery process will begin soon. However, it is likely to be a slow process, and it will probably take several years until complete recovery and full growth are achieved. We assess the risk of a major depression to be low.

Competition and buying patterns changes. There is a high risk that new competitors

will arrive in the relevant marketplace. Our continuous improvement management strategy and cost control techniques will help us to stay on top of customer preference. The pizza customer buying patterns are not likely to significantly change over the next five years. In addition, the population growth predicted in the area will increase the chances to maintain and boost sales.

Inflation. According to expert estimates, the inflation rate is likely to remain under

control over the next five years. We have accounted for a 5 percent annual inflation rate.

Currency. All our operations are in U.S. dollars, and both equipment and materials are manufactured in the United States. No currency risk has been accounted for.

U.S. taxation and economic policy changes. These changes are likely to occur, and it is not clear how they might influence our financial performance. That is another reason why our estimates are conservative. This risk is high.

b) Internal Risks (These risks come from inside the company and can be better prevented or

controlled.)

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Personnel. There are many skilled food-service employees in Atlanta, GA. We will be able to select the best new staff members from a large number of valuable applicants. Our personnel strategy includes modern management techniques that will be applied to select, hire, motivate, and reward the employees.

This strategy is expected to build and maintain employee loyalty, and increase productivity. However, before hiring new employees, their background check will be reviewed, to avoid possible employee theft, which is a frequent risk in the restaurant industry.

Cash flow deficiency. Our main concern will be to have sufficient cash on hand to meet

our payment obligations, and be prepared for unexpected needs of cash. Our conservative projections indicate that our business is able to generate positive cash flows and sufficient cash reserves to reduce the risk of cash flow deficiency.

Business continuity over the next three years. In the event something happens to one of

the company's managers and co-owners the other will have the skills and experience required to take over and continue operations. In addition, the company's incorporation legal documents include special provisions for protection in such cases.

Management. Latoya Pless have proven experience in customer service and sales. She

has relevant skills and a solid background in the service industry.

7.6.2 Entry Strategy

Little Caesar’s-Camp Creek Marketplace plans to issue 1,060 shares of $100 per share common

stock. The issued and outstanding par value common stock will be $106,000. Latoya Pless will invest $10,000 in the company's capital She will receive respectively 100 shares

of $100 par value, or .09 percent ownership. For investing $96,000 in the company's capital, the new investors would receive a portion of ownership of 90.56 percent (960 shares of $100 par value). As the investor will hold more than 90 percent of the voting stock, they will exercise control over the company's policies.

7.6.3 Investor Interest

According to our conservative estimates, the cumulative dividends that would be paid to the new

investor, based on 90.56 percent of ownership, over the next three years, would be $127,919. Dividend payments to the investor would be made as follows:

Year 1 $37,310

Year 2 42,468

Year 3 48,141

Totals $127,919

The other co-owner, Latoya Pless, will not take dividends over the next three years. The reasons

for this decision are: a) she will receive employment compensation and benefits, and b) the

undistributed dividends will increase the amount of retained earnings, as a strategy to strengthen

the company's financial position for sustainable future growth, to increase the company's net

worth, and subsequently its market value.

Key measures of the expected benefit from the investment include:

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Payback period (the minimum time to recover the initial investment) for the investor's initial

capital contribution of $96,000 is very short, only one year five months, computed as follows:

Initial Cash Investment $96,000

Less Dividends Paid

Year 1 37,310

Year 2 42,468

Year 3 16,222

Unrecovered Investment $0 Payback Period: 2.3369 years, or 2

year 4 months

Weighted average cost of capital (the lowest acceptable rate of return) is estimated at 16

percent. Net present value (NPV), which evaluates the capital investment by discounting at 16 percent its

future cash flows to their present values, and subtracting the initial investment of $96,000 from

their sum of $151,530 is $55,530, computed as follows:

Net Cash Inflows x Values

Factor

Year1 $37,310 x .862 $32,161

Year2 42,468 x .743 31,553

Year3 48,141 x .641 30,858

Year 4 52,955 x .552 29,231

Year 5 58,250 x .476 27,727 Total present value of

cash inflows discounted $151,530

at 16%

Less initial investment $96,000

NPV Net present value $55,530

Because the net present value is positive, the investment would achieve at least the minimum rate of return of 16 percent, and is expected to yield significant additional returns to the

investor.

7.6.4 Exit Strategy

We recognize that any investor in a start-up company, no matter how well on paper, ultimately needs an exit vehicle. Our purpose is to provide the best alternatives to protect investor's interest, while maintaining the potential growth of our company, the liquidity, and the profitability of future operations. Typically, the fear of investors is that they will become locked into a company that might show no sign of either going public or going bankrupt. To overcome this potential threat, we are open to discuss with the investor several exit alternatives, and include the best provisions in the agreements that are expected be reached by the time of the incorporation. There are several options that could be discussed while considering alternative methods for the investor to turn illiquid securities into readily tradable securities or cash. These options include, but are not limited to:

• IPO (Initial Public Offering) • Acquisition terms • Liquidation terms, certain rights and liquidation preferences over common stock • Selling to a friendly buyer • Preferred stock, redeemable at option of the holder • Convertible preferred stock • Investor's right of first refusal in the next round of financing • Anti-dilution measures • Buy-back after the initial five years

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In addition, we believe that following negotiating terms are expected to increase investor

confidence, and improve management-investor communication:

• A board position and consulting role of the investor • Good communication between company's management and the investor (For example:

quarterly reports, monthly updates, etc.) • Setting clear return objectives for the management (projected IRR, potential returns,

sales projections, etc.) • Not taking certain actions without investor's approval, such as: selling all or substantially

all of the company's assets, setting stock options programs, issuing additional stock to existing management, selling stock below prices paid by the investor, or creating classes of stock with liquidation preferences or other rights senior to the investor's class of security.

• Stock price protection, an anti-dilution provision that will result in the investor receiving more stock, should the company issue stock at a lower price that paid by the investor

• Corporate governance provisions.

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APPPENDIX

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

Hot N' Ready Pepperoni 3900 4800 6,500 7,700 8,350 8,600 9,000 9,250 10,050 10,750 11,500 12,650

Hot N' Ready Cheese 1700 2050 2780 3500 3650 3650 4100 4250 5,300 5,450 5,500 6,050

Ultimate Supreme Pizza 900 1080 1440 1800 1875 1875 2100 2150 2175 2775 2850 3,135

3 Meat Treat Pizza 600 700 800 1000 1100 1250 1350 1650 1750 1900 2100 2,310

Hula Hawaian Pizza 400 450 450 500 550 600 700 750 800 850 900 990

Veggie Pizza 250 275 303 333 366 403 443 487 536 589 648 713

Other 2500 2750 3025 3328 3660 4026 4429 4872 5359 5895 6484 7133

Total Unit Sales 10,250 12,105 15,298 18,160 19,551 20,404 22,122 23,409 25,970 28,209 29,983 32,981

Unit Prices

Hot N' Ready Pepperoni $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00

Hot N' Ready Cheese $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00

Ultimate Supreme Pizza $10.99 $10.99 $10.99 $10.99 $10.99 $10.99 $10.99 $10.99 $10.99 $10.99 $10.99 $10.99

3 Meat Treat Pizza $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99

Hula Hawaian Pizza $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99 $8.99

Veggie Pizza $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99 $9.99

Other $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00

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

Hot N' Ready Pepperoni $19,500 $24,000 $32,500 $38,500 $41,750 $43,000 $45,000 $46,250 $50,250 $53,750 $57,500 $63,250

Hot N' Ready Cheese $8,500 $10,250 $13,900 $17,500 $18,250 $18,250 $20,500 $21,250 $26,500 $27,250 $27,500 $30,250

Ultimate Supreme Pizza $9,891 $11,869 $15,826 $19,782 $20,606 $20,606 $23,079 $23,629 $23,903 $30,497 $31,322 $34,454

3 Meat Treat Pizza $5,394 $6,293 $7,192 $8,990 $9,889 $11,238 $12,137 $14,834 $15,733 $17,081 $18,879 $20,767

Hula Hawaian Pizza $3,596 $4,046 $4,046 $4,495 $4,945 $5,394 $6,293 $6,743 $7,192 $7,642 $8,091 $8,900

Veggie Pizza $2,498 $2,747 $3,022 $3,324 $3,657 $4,022 $4,424 $4,867 $5,354 $5,889 $6,478 $7,126

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Other $10,000 $11,000 $12,100 $13,310 $14,641 $16,105 $17,716 $19,487 $21,436 $23,579 $25,937 $28,531

Total Sales $59,379 $70,205 $88,585 $105,901 $113,737 $118,615 $129,149 $137,059 $150,367 $165,688 $175,707 $193,277

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

Hot N' Ready Pepperoni $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50

Hot N' Ready Cheese $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50

Ultimate Supreme Pizza $7.69 $7.69 $7.69 $7.69 $7.69 $7.69 $7.69 $7.69 $7.69 $7.69 $7.69 $7.69

3 Meat Treat Pizza $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29

Hula Hawaian Pizza $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29 $6.29

Veggie Pizza $6.99 $6.99 $6.99 $6.99 $6.99 $6.99 $6.99 $6.99 $6.99 $6.99 $6.99 $6.99

Other $2.80 $2.80 $2.80 $2.80 $2.80 $2.80 $2.80 $2.80 $2.80 $2.80 $2.80 $2.80

Direct Cost of Sales

Hot N' Ready Pepperoni $13,650 $16,800 $22,750 $26,950 $29,225 $30,100 $31,500 $32,375 $35,175 $37,625 $40,250 $44,275

Hot N' Ready Cheese $5,950 $7,175 $9,730 $12,250 $12,775 $12,775 $14,350 $14,875 $18,550 $19,075 $19,250 $21,175

Ultimate Supreme Pizza $6,924 $8,308 $11,078 $13,847 $14,424 $14,424 $16,155 $16,540 $16,732 $21,348 $21,925 $24,118

3 Meat Treat Pizza $3,776 $4,405 $5,034 $6,293 $6,922 $7,866 $8,496 $10,383 $11,013 $11,957 $13,215 $14,537

Hula Hawaian Pizza $2,517 $2,832 $2,832 $3,147 $3,461 $3,776 $4,405 $4,720 $5,034 $5,349 $5,664 $6,230

Veggie Pizza $1,748 $1,923 $2,115 $2,327 $2,560 $2,816 $3,097 $3,407 $3,748 $4,122 $4,535 $4,988

Other $7,000 $7,700 $8,470 $9,317 $10,249 $11,274 $12,401 $13,641 $15,005 $16,506 $18,156 $19,972

Subtotal Direct Cost of Sales $41,565 $49,143 $62,010 $74,131 $79,616 $83,031 $90,404 $95,941 $105,257 $115,982 $122,995 $135,294

Gross Profit $17,814 $21,061 $26,576 $31,770 $34,121 $35,585 $38,745 $41,118 $45,110 $49,706 $52,712 $57,983

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

Manager $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 $1,900

Cook $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700

Part-time Help $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360

Part-time Help $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360

Part-time Help $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360

Part-time Help $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360

Part-time Help $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360

Bonuses and Incentives $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650

Total Payroll $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050

Total People 5 5 5 5 5 5 5 5

5 5 5

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General Assumptions

Plan Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

Month 11

Month 12

Current Interest Rate 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%

Long-term Interest Rate 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00%

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Inflation Rate 0.41% 0.41% 0.41% 0.41% 0.41% 0.41% 0.41% 0.41% 0.41% 0.41% 0.41% 0.41%

Max Op. Capacity (pizzas/day) 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500

Other 0 0 0 0 0 0 0 0 0 0 0 0

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Pro Forma Profit and Loss

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

Sales

$59,379 $70,205 $88,585 $105,901 $113,737 $118,615 $129,149 $137,059 $150,367 $165,688 $175,707 $193,277

Direct Costs of Goods

$41,565 $49,143 $62,010 $74,131 $79,616 $83,031 $90,404 $95,941 $105,257 $115,982 $122,995 $135,294

Franchisor Royalty 6% $3,563 $4,212 $5,315 $6,354 $6,824 $7,117 $7,749 $8,224 $9,022 $9,941 $10,542 $11,597

Total Cost of Sales $45,128 $53,356 $67,325 $80,485 $86,440 $90,147 $98,153 $104,165 $114,279 $125,923 $133,537 $146,891

Gross Margin

$14,251 $16,849 $21,260 $25,416 $27,297 $28,468 $30,996 $32,894 $36,088 $39,765 $42,170 $46,387

Gross Margin % 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00%

Expenses

Payroll

$11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050

Marketing Expenses 3% $1,781 $2,106 $2,658 $3,177 $3,412 $3,558 $3,874 $4,112 $4,511 $4,971 $5,271 $5,798

Depreciation

$875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875

Office Supplies

$100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

Utilities

$550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550

Insurance

$1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Rent

$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Payroll Taxes and Benefits 29% $3,205 $3,205 $3,205 $3,205 $3,205 $3,205 $3,205 $3,205 $3,205 $3,205 $3,205 $3,205

Other

$200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Total Operating Expenses $22,261 $22,586 $23,137 $23,657 $23,892 $24,038 $24,354 $24,591 $24,991 $25,450 $25,751 $26,278

Profit Before Interest and Taxes

($8,010) ($5,736) ($1,877) $1,760 $3,405 $4,430 $6,642 $8,303 $11,098 $14,315 $16,419 $20,109

EBITDA

($7,135) ($4,861) ($1,002) $2,635 $4,280 $5,305 $7,517 $9,178 $11,973 $15,190 $17,294 $20,984

Interest Expense

$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Taxes Incurred 30% ($2,703) ($2,021) ($863) $228 $722 $1,029 $1,693 $2,191 $3,029 $3,995 $4,626 $5,733

Net Profit ($6,307) ($4,716) ($2,014) $532 $1,684 $2,401 $3,949 $5,112 $7,068 $9,321 $10,793 $13,376

Net Profit/Sales -10.62% -6.72% -2.27% 0.50% 1.48% 2.02% 3.06% 3.73% 4.70% 5.63% 6.14% 6.92%

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PRO-FORMA CASH FLOW MONTHLY

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

CASH RECEIVED Cash from Operations Cash Sales

$59,379 $70,205 $88,585 $105,901 $113,737 $118,615 $129,149 $137,059 $150,367 $165,688 $175,707 $193,277

Cash from Receivables

$0

Subtotal Cash from Operations $59,379 $70,205 $88,585 $105,901 $113,737 $118,615 $129,149 $137,059 $150,367 $165,688 $175,707 $193,277

ADDITIONAL CASH RECEIVED Sales Tax, VAT,HST/GST Received 8.50% $5,047 $5,967 $7,530 $9,002 $9,668 $10,082 $10,978 $11,650 $12,781 $14,083 $14,935 $16,429

New Current Borrowing New Other Liabilities (Interest Free) New Long Term Liabilities

$100,000 Sales of Other Current Assets

Sales of Long-term Assests New Investment Received

$96,000

Subtotal Cash Received $260,426 $76,172 $96,115 $114,903 $123,405 $128,697 $140,126 $148,709 $163,148 $179,772 $190,642 $209,706

EXPENDITURES Expenditures from Operations Cash Spending

$11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050 $11,050

Bill Payments

$300 $56,164 $64,716 $79,237 $92,916 $99,107 $102,960 $111,282 $117,531 $128,045 $140,148 $148,063

Subtotal Spent on Operations $11,350 $67,214 $75,766 $90,287 $103,966 $110,157 $114,010 $122,332 $128,581 $139,095 $151,198 $159,113

ADDITIONAL CASH SPENT Sales Tax, VAT,HST/GST Paid Out

$5,047 $5,967 $7,530 $9,002 $9,668 $10,082 $10,978 $11,650 $12,781 $14,083 $14,935 $16,429 Principal Repayment of Current Borrowing

$833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833

Other Liabilities Principal Repayment

Long term Liabilities Principal Repayment

Purchase Other Current Assets

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Purchase Long Term Assets

$0 Dividends

Subtotal Cash Spent $17,231 $74,014 $84,129 $100,122 $114,467 $121,073 $125,821 $134,815 $142,195 $154,011 $166,967 $176,375

Net Cash Flow $243,195 $2,158 $11,985 $14,781 $8,938 $7,625 $14,305 $13,893 $20,953 $25,760 $23,675 $33,331

Cash Balance $293,195 $295,353 $307,339 $322,120 $331,057 $338,682 $352,987 $366,880 $387,833 $413,594 $437,269 $470,600

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PRO-FORMA BALANCE SHEET Starting

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

ASSETS

Current Assets

Cash $0 $293,195 $295,353 $307,339 $322,120 $331,057 $338,682 $352,987 $366,880 $387,833 $413,594 $437,269 $470,600

Accounts Receivable $0

Inventory $0 $23,688 $33,203 $44,372 $57,799 $71,932 $86,504 $102,024 $118,256 $135,685 $154,494 $174,304 $181,815

Other Current Assets

Total Current Assets $0 $316,883 $328,556 $351,710 $379,919 $402,990 $425,186 $455,011 $485,136 $523,519 $568,087 $611,573 $652,415

Long Term Assets

Long Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Accumulated Depreciation

($875) ($1,750) ($2,625) ($3,500) ($4,375) ($5,250) ($6,125) ($7,000) ($7,875) ($8,750) ($9,625) ($10,500)

Total Long Term Assets $0 ($875) ($1,750) ($2,625) ($3,500) ($4,375) ($5,250) ($6,125) ($7,000) ($7,875) ($8,750) ($9,625) ($10,500)

TOTAL ASSETS $0 $316,008 $326,806 $349,085 $376,419 $398,615 $419,936 $448,886 $478,136 $515,644 $559,337 $601,948 $641,915

LIABILITIES AND CAPITAL

Current Liabilities

Accounts Payable

$178,148 $194,495 $219,622 $247,257 $268,602 $288,356 $314,190 $339,161 $370,434 $405,641 $438,291 $465,715

Current Borrowing

Other Current Liabilities

Subtotal Current Liabilities $0 $178,148 $194,495 $219,622 $247,257 $268,602 $288,356 $314,190 $339,161 $370,434 $405,641 $438,291 $465,715

Long Term Liabilities $100,000 $99,167 $98,333 $97,500 $96,667 $95,833 $95,000 $94,167 $93,333 $92,500 $91,667 $90,833 $90,000

TOTAL LIABILITIES $100,000 $277,315 $292,828 $317,122 $343,924 $364,435 $383,356 $408,357 $432,495 $462,934 $497,307 $529,124 $555,715

Paid In Capital $106,000 $106,000 $106,000 $106,000 $106,000 $106,000 $106,000 $106,000 $106,000 $106,000 $106,000 $106,000 $106,000

Retained Earnings ($61,000) ($61,000) ($61,000) ($61,000) ($61,000) ($61,000) ($61,000) ($61,000) ($61,000) ($61,000) ($61,000) ($61,000) ($61,000)

Earnings

($6,307) ($11,023) ($13,036) ($12,504) ($10,821) ($8,420) ($4,471) $641 $7,710 $17,030 $27,823 $41,200

TOTAL CAPITAL $45,000 $38,693 $33,977 $31,964 $32,496 $34,179 $36,580 $40,529 $45,641 $52,710 $62,030 $72,823 $86,200 TOTAL LIABILITIES AND CAPITAL $145,000 $316,008 $326,806 $349,085 $376,419 $398,615 $419,936 $448,886 $478,136 $515,644 $559,337 $601,948 $641,915

NET WORTH ($100,000) $38,693 $33,977 $31,964 $32,496 $34,179 $36,580 $40,529 $45,641 $52,710 $62,030 $72,823 $86,200