Aficionado

There’s Nothing Like It…

Café

Business Plan Overview

February 21, 2005

Aficionado, INC.

• Business Concept• Size and Nature of Markets• Competition• Marketing Strategy• Management Team• Growth Projections• Financial Highlights

C A

Business Concept

C A

• Premier cigar and wine bar• Products include world-class

cigars and accessories, vintage wines, full liquor bar, fine desserts, gourmet coffees, and memberships

• Located in beautiful Miami Beach area

• Fills need for a unique, prestigious, relaxed environment and atmosphere

• Dedicated in inviting and encouraging people, with both an interest and a passion for the finer things in life.

Size and Nature of Markets

Our Target Market Specifics:• Adults 25- above• Men and Women

Professionals• Middle-high class to

Upper Class• All ethnic groups• Responsible

Homeowners• Status Seeking/Socially

responsible consumers

C A

Size and Nature of Markets

C A

• Geographic areas: North Miami Beach, Coral Springs, South Miami Beach

• Suburban communities: Aventura, Coconut Grove, and Miami Lakes

• Our market is within the Miami-Dade County, made up of approx. 2.3 million people as of 2000

• 70% of the population is above the age of 25• 37.02% of our target market are

homeowners• 30.2% are working professionals• 21.6% of population fall in the income range

of $75,000 and above• Breakdown by race and ethnicity:

– Hispanic= 65.76%– White= 11.83%– Black/ Other= 34.24%

– *Source: US Census Bureau, 2000

Competition/Risks C A

• There are two major competitors within the Miami area:

• Jimmy at Cuba Club– In business for over 20 years– Consistent revenue– Great Industry experience

• Havana Cigar Emporium– Established client base– Excellent location

• We have one competitor named Tribeca Grill & Bar in New York, we include them due to the extreme similarity and ideas we share

• Our company will compete with competitive prices, exclusive services, such as memberships, superior marketing tactics, and a unique environment

Competition/Risks

C A

• Competitive advantages:• The unique and superb quality we offer• The never seen before original image,

style and design provided in our facility• The recognition with the product brands,

attracting and providing what our market needs

• The appeal we offer through our memberships and the environment that only our facility will bring fresh to the market

• The location we have is in need of what we offer

• For new competitors it’s relatively difficult to enter this industry

• Due to high start- up costs • Substantial expertise required • Slight chance of change, due to the stable

industry we currently hold.

Marketing Strategy

C A

• Slogan: “There’s Nothing Like it…”• Our distinct message is that we bring a

unique quality, elegant environment, and upscale atmosphere to our customers

• Our website: www.cafeaficionado.net is underway at this time

• Our Primary focus in marketing, is through advertisements– Local billboards and signs targeted to

the local upscale communities– Mobile Advertisements targeting our

younger progressive niche– Through magazine and newspaper ads

that are focused on our same market, for ex: Vanity Fair, The Robb Report, Wall Street Journal, New York Times, etc.

Advertisements

www.cafeaficionado.net

Management TeamRyan J. Mixon, President/CEO and

Founder

• Worked closely with most experienced, knowledgeable and successful industry leaders

• Trained by and worked for Aniello Caganello, owner and founder of a premier cigar bar in North Florida

• Personally managed, created and conceptualized every aspect of the business concept behind Café Aficionado and Aficionado, Inc

• Brings excellent knowledge ability of the industry

• Offers motivation and passion of the business as a strength

C A

Management Team Vincent Massanelli, CFO

• Newest addition to Aficionado in 2005• Prior experience as regional manager

for a financial organization called “PRG”

• Maintained financial accounts with major corporations, like, Publix and Winn Dixie

• Brings over thirty years experience in the financial department of business

• Successfully runs and owns five different businesses in real estate, liquor stores, etc.

C A

Krystal Collazo, Marketing/Sales Director

• Possesses prior marketing, management, public relations and sales experience in fine dining restaurants and bars in Orlando area.

• The organizational, dependable and qualified skills she brings allows for an accurate delivery of the message and image of Aficionado, Inc

• Successfully structured and created all marketing and public relations for local charity event

• Conveys sufficient industry experience but strong marketing and sales talent

C AManagement Team

Management TeamJared Moussa, Director of Human

Resources

• Began in a team of consultants for Aficionado and officially joined as of February 2005

• Credentials include everything from managing to directing all public affairs for some of Orlando’s finest smoke shops and local clubs

• Successfully developed FCAT training programs for the Dept of Education to implement in all public schools

• Brings excellent and fresh strategies for all new hires and staff, while still providing proper benefits

C A

Growth Projections

First YearOpen our doors May 2007• We will begin with 17 employees/staff

– Which includes management and key personnel• 10 different product lines• To reach these goals and overcome the risks that

come about in new businesses, is done through:– is careful and precise planning– Precise timing– precise execution

• Establish a strategic partnership with Cigar Aficionado Magazine

C A

C AGrowth ProjectionsThird Year

• Launch two additional product lines • Hire another key manager and add at least half the

employees, as well as, increase salaries by 5%• Last year to have paid our investors 30% equity on

investment• Built solid and stable relationships with suppliers• One risk is overestimated revenue, affecting hiring new

employees and the development of new product lines– We plan to overcome this risk by only hiring based off

our customer base and only launching new lines based off demand

• Will accomplish by applying these strategies:– Hard work– Providing consistency– Always in tune with customers, suppliers and

distributors needs

Growth Projections

Fifth Year• Pay off all investors by the end of year four• Additional location opened as of this year 2011

– Paid fully by company revenues only• Double employees/staff and increased salaries by

15%• Expand three new product lines• The risks involved with inaccurate revenue

projections with new facility, failure of location, etc.– We plan to overcome these risks through

accurate pre planning and thorough research• Implement strategies based off dedication,

strategic planning and organization

C A

Financial HighlightsYear One

Revenues $1,788,752Expenses $1,590,854Net Profit $197,898Profit Margin 11%

Revenue AssumptionsMemberships (@$1000) $78,023Cigars $118,788 - commercial/vintage - accessories Liquor $1,015,999 - Beer - vintage Wines - champagneDesserts $5,123Gourmet Coffees $570,819

C A

Major expenses include cost of goods sold, commission, return and allowances, and all general/administrative expenses

Financial HighlightsYear Three

Revenues $3,415,345Expenses $1,559,630Net Profit $1,855,715Profit Margin 54%

Revenue AssumptionsMemberships (@$1000) $315,912Cigars$215,700 - commercial/vintage - accessories Liquor$1,955,193 - Beer - vintage Wines - champagneDesserts $10,414Gourmet Coffees $918,126

C A

Major expenses include cost of goods sold, commission, return and allowances, and all general/administrative expenses

C AFinancial HighlightsYear Five

Revenues $6,957,846Expenses $2,052,123Net Profit $4,905,722Profit Margin 70%

Revenue AssumptionsMemberships (@$1000) $1,279,107

Cigars $366,318 - commercial/vintage - accessories Liquor $3,814,506 - Beer - vintage Wines - champagneDesserts $21,169Gourmet Coffees $1,476,748

Major expenses include cost of goods sold, commission, return and allowances, and all general/administrative expenses

Financial Highlights

C A

• Aficionado, Inc. was founded on September 2004 to be filed as a Florida S Corporation

• Shares authorized: 100 common stock

• Current Shareholders:– Ryan J. Mixon- 45 shares– Krystal E. Collazo- 10 shares– Jared Moussa- 5 shares

• Shares outstanding: 40 shares (30% equity)

Financial Highlights

C A• The company is currently seeking $3,800,000

in start up capita in exchange for 30% equity and a guaranteed 30% ROI every year .

• Investors will recoup initial investment by the end of year four, 2010.

Investor ROI- first four yearsYear One: $1,140,000Year Two: $1,140,000Year Three: $1,140,000Year Four: $3,800,000Total $7,220,000

• Two potential exit strategies choices will be given to investors in order to cash out of the company:– In the process of expansion or

franchising, current investors could choose to liquidate their holding or convert their holdings to stock, in the expansion or franchise of the company.

Aficionado

There’s Nothing Like It…

Café