Coffee Shop Business Plan Profit and Loss

Welcome to the Coffee Shop Sample Business Plan Projected Profit and Loss

Table Of Contents
FINANCIAL PLAN   IMPORTANT ASSUMPTIONS   KEY FINANCIAL INDICATORS   BREAK-EVEN ANALYSIS   PROJECTED PROFIT AND LOSS   PROJECTED CASH FLOW   PROJECTED BALANCE SHEET   BUSINESS RATIOS   EXIT STRATEGY

Coffee Shop is expecting some dramatic growth in the next three years, reaching $558,043 in sales and a 39.56% Gross Profit Margin by the end of the first year. Expenses during the first year will be roughly $233,483, leaving a Net After-tax loss of $20,541, or 3.68%. This loss will provide THE LOST TREASURE OF ‘ARABICA’ with a tax loss carry-forward for the second year of $30,936.
Aside from production costs of 60%, which include actual production of product and commissions for sales efforts, the single largest expenditures in the first year are in the general and administrative (G&A) area, totaling 23% of sales. G&A includes expenses for rents, equipment leases, utilities, and the payroll burden for all employees.

Sales increase by nearly 400% in the second year, due to the addition of two more Drive-thrus and two more Mobile Cafes, reaching a total of $2,348,900, with a Gross Profit Margin of 39.58%. Although operating expenses double in the second year, THE LOST TREASURE OF ‘ARABICA’ will be able to realize a Net After-tax profit of $190,467 or 6.79% of sales. In that same year, THE LOST TREASURE OF ‘ARABICA’ will make charitable contributions of $70,000.
The third year is when THE LOST TREASURE OF ‘ARABICA’ has the opportunity to break into markets outside the metropolitan area. THE LOST TREASURE OF ‘ARABICA’ will see nine additional Drive-thru facilities open in the third year, which will drive sales to $6,022,950 and, even with a 200% increase in production costs, help reach a Gross Profit Margin of 45.05%. Several expenses take substantial jumps this year--advertising increasing from $36,000 to $72,000 and donations increasing from $72,000 to $180,000--and THE LOST TREASURE OF ‘ARABICA’ will be adding several key management team members. These increases, as well as those for increased equipment leases and rents, raise our operating expenses to $1,673,431, leaving a Net After-tax profit of $860,428, or 11.96% of sales. The single largest expense sector in the third year, outside of production, is still G&A costs, but it is down from 23% in the first year and 18.5% in the second year to just 15.02%.