BERNIES

1
BERNIES

• BT101 - Business Plan presentation
• Professor Skown
• Al Lockhart
• Mark Rasulo
• Terrence Johnson
• Sundeep Basi
• Martin Angus

2
OUTLINE

• SURVEY
• SERVICES AND ALLIANCES
• MARKETING PLAN
• MANAGEMENT
• FINANCIALS
• RISK STRATEGY

3
SURVEY
4
SERVICES AND ALLIANCES

• Initial Services
• Liquor Delivery services
• 30 stores in Hoboken
• Alliances
• We are targeting 5, 10, 15, 20, 25 stores (in
  each of the 5 yrs)
• Avg. Revenue of over 1 million
• We are targeting 20, 25, 28, 33, 40 (of
  total sales each year)

5
SERVICES AND ALLIANCES

• Bartending services
• 40 per hour fee
• At startup 2 members will take over bartending
  duties
• DJ services
• 40 per hour fee
• At startup 2 members will take over the DJ
  services

6
SERVICES AND ALLIANCES

• Advertisement services
• Flyers
• 0.20 per flyer given out
• Internet based
• Years 1 3 - 20 per month
• Years 4, 5 - 25 per month
• Maximum number of companies allowed to advertise
  is limited to 3 per month

7
SERVICES AND ALLIANCES

• Additional Future Services (Starting in Year 3)
• Liquor Store
• Take advantage of customer base already built up
  from delivery/bartending/DJ/advertisement
  services.
• Reach the following sales percentage targets out
  of average revenue (approx. 1 million) for a
  liquor store
• 60 - Year 3
• 70 - Year 4
• 80 - Year 5

8
MARKETING PLAN

• Our business must service three key areas
• We must have a large area in which we would be
  able to deliver alcohol. (Hoboken and Jersey
  City)
• We must have a very in-depth website that would
  thoroughly describe the alcoholic beverage as
  well as what foods it complimented. This would
  be a competitive advantage
• We must be able to have a very large selection to
  choose from.
• (In the future we hope to be able to implement a
  hotline in which customers can call to ask
  alcohol related questions, but for now we will
  need to hold off on this due to cost issues.)

9
MARKETING PLAN

• PHASE I
• Flyers
• Word of Mouth
• PHASE II
• Newspaper ads
• Word of Mouth
• PHASE III
• Franchising
• Local Radio and TV ads

10
FINANCIALS

• Startup Cost 34,380
• Positive Free Cash Flows by the end of year 1.
• Revenues of over 1.5 million by year 3.
• Each owner will contribute 12,500 and will
  consequently receive a 12.5 stake in the
  business.
• Total owner investment of 87,500
• Total ownership is 87.5
• Remaining 12.5 will be offered to potential
  investors.
• Gross Margin percentage will continue to rise
  rapidly from years 1 to 5.

11
BREAK EVEN ANALYSIS

• Company will see positive free cash flow by the
  end of year 1.
• The Company will break even in year 2.

12
REVENUES
13
RISK STRATEGY

• Internal Risk Mitigations
• Potential for Human loss of life or injury on job
• Potential for major accidents, i.e. fire damage,
  car accident
• (year 3) Physical security breaches
• Competitive Risk
• Other bartenders and D.J. services
• New company tries to compete
• Other previous withstanding local liquor stores
• Partnership Risk
• Restaurant or liquor store goes out of business
• New Company starts delivering
• Partner tries to compete
• (year 3) Losing alliances in Hoboken once we open
  the store in Hoboken

14
QUESTIONS

• Are there any questions or comments???