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Sip 'n' Surf Club Business Plan

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come in as guests leave as family… Business Plan 04/12/2007 Mohammad Faisal Sufiyan Farooq M.Kamrul Hassan Maithreyi Muralidharan Jeciya Abdul Jabbar Amanda Sequeira Amber Fernandes
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Page 1: Sip 'n' Surf Club Business Plan

come in as guests leave as family…

Business Plan

04/12/2007

Mohammad Faisal

Sufiyan Farooq

M.Kamrul Hassan

Maithreyi Muralidharan

Jeciya Abdul Jabbar

Amanda Sequeira

Amber Fernandes

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Table of Contents

1.0 Executive Summary 3

1.1 Objectives 3

1.2 Mission 3

1.3 Risks 4

2.0 Company Summary 5

2.1 Company Ownership 5

2.2 Start-up Summary 5

2.3 Company Locations and Facilities 6

3.0 Services 8

3.1 Service Description 8

3.2 Competitive Comparison 8

3.3 Fulfillment 8

3.4 Technology 9

3.5 Future Services 9

4.0 Market Analysis Summary 10

4.1 Market Segmentation 10

4.2 Target Market Segment Strategy 10

4.3 Market Needs 10

4.4 Service Business Analysis 11

5.0 Strategy and Implementation Summary 12

5.1 SWOT Analysis 12

5.2 Marketing Strategy 13

5.3 Pricing Strategy 14

5.4 Sales Strategy 14

5.5 Sales Forecast 14

6.0 Management Summary 16

6.1 Personnel Plan 16

7.0 Financial Plan 17

7.1 Projected Profit and Loss 18

7.2 Projected Cash Flow 18

7.3 Projected Balance Sheet 19

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Executive Summary

1.0 Executive Summary

Sip ‘n’ Surf Club will provide a unique forum for communication and entertainment through

the medium of the Internet. Sip ‘n’ Surf is the answer to an increasing demand. The public

wants: (1) access to the methods of communication and volumes of information now

available on the Internet, and (2) access at a cost they can afford and in such a way that they

aren't socially, economically, or politically isolated. The main goal is to provide the

community with a social, educational, entertaining, atmosphere for worldwide

communication.

Sip ‘n’ Surf will be incorporated as a partnership business. This will shield the owners,

Mohammad Faisal, Sufiyan Farooq, M.Kamrul Hassan, Maithreyi Muralidharan, Jeciya

Abdul Jabbar, Amanda Sequeira and Amber Fernandes, from issues of personal liability. The

first two partners will invest AED1,75,000 each and the rest will invest AED70,000 each.

The profit sharing ratio will be defined according to the capital invested by each partners.

The financing from the owners will allow the Club to successfully open and maintain

operations through year one. The large initial capital investment will provide its customers

with a full featured Club. A unique, upscale, and innovative environment is required to

provide the customers with an atmosphere that will spawn socialization. Successful operation

in year one will provide a customer base that will allow it to be self sufficient in year two.

1.1 Objectives

Sip ‘n’ Surf’s objectives for the first three years of operation include:

• The creation of a unique, upscale, innovative environment that will differentiate it

from local clubs.

• The formation of an environment that will bring people with diverse interests and

backgrounds together in a common forum.

• Good coffee and bakery items at a reasonable price.

• Affordable access to the resources of the Internet and other online services.

1.2 Mission

As the popularity of the Internet continues to grow at an exponential rate, easy and affordable

access is quickly becoming a necessity of life. Sip ‘n’ Surf provides communities with the

ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a

comfortable environment. People of all ages and backgrounds will come to enjoy the unique,

upscale, educational, and innovative environment that the Club provides.

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1.3 Risks

The risks involved with starting Sip ‘n’ Surf Club are:

• Will there be a demand for the services offered by the Club in the Emirates City-

Ajman?

• Will the popularity of the Internet continue to grow?

• Will individuals be willing to pay for the service Sip ‘n’ Surf offers?

• Will the cost of accessing the Internet from home drop so significantly that there will

not be a market for Internet Cafes?

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Company Summary

2.0 Company Summary

Sip ‘n’ Surf Club, soon to be located in Emirates City-Ajman, will offer the community easy

and affordable access to the Internet. Sip ‘n’ Surf will provide full access to email, WWW,

FTP, Usenet and other Internet applications such as Telnet. Sip ‘n’ Surf will also provide

customers with a unique and innovative environment for enjoying great coffee, specialty

beverages, bakery items and a gaming zone.

Sip ‘n’ Surf will appeal to individuals of all ages and backgrounds. The instructional Internet

classes, and the helpful staff that Sip ‘n’ Surf provides, will appeal to the audience that does

not associate themselves with the computer age. This educational aspect will attract younger

and elderly members of the community who are rapidly gaining interest in the unique

resources that online communications have to offer. The location will provide business

people with convenient access to their morning coffee and online needs.

2.1 Company Ownership

Sip ‘n’ Surf Club is a privately held by 7 partners, Mohammad Faisal, Sufiyan Farooq,

M.Kamrul Hassan, Maithreyi Muralidharan, Jeciya Abdul Jabbar, Amanda Sequeira and

Amber Fernandes. The first two are active partners, who will be taking the major decision of

the Club, while others are inactive.

2.2 Start-up Summary

Sip ‘n’ Surf Club’s start-up costs will cover coffee making equipment, site renovation and

modification, capital to cover losses in the first year, and the communications equipment

necessary to get its customers online.

The communications equipment necessary to provide customers with a high-speed

connection to the Internet and the services it has to offer make up a large portion of the start-

up costs. These costs will include the computer terminals and all costs associated with their

set-up. Costs will also be designated for the purchase of a laser printer and a scanner.

In addition, costs will be allocated for the purchase of coffee making equipment. Cutlery

items will be purchased from Jashanmal Department Stores.

The site at Emirates City-Ajman will require funds for renovation and modification. A single

estimated figure will be allocated for this purpose. The renovation/modification cost estimate

will include the costs associated with preparing the site for opening business.

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Start-up

Start-up Expenses

Down payment for the land acquired

Legal

Stationary items

Brochures

Insurance

Consultants

Automatic Coffee Machine

Computer System (40)

Billiards Table (4)

Foosball Table(4)

Communication Lines (Al Mawrood, Landline, Mobile)

Fixtures

Total Start-up Expenses

AED204,000

AED25,000

AED2,000

AED2,000

AED3,500

AED4,000

AED24,300

AED120,000

AED36,000

AED40,000

AED3,500

AED70,800

AED5,35,100

2.3 Company Locations and Facilities

A site has been chosen at Emirates City-Ajman. This site was chosen for various reasons,

including:

• Proximity to the Ajman City Center, Dubai and Sharjah International Airports.

• Parking availability.

• Beautiful Green parks and lake view.

• Proximity to the shopping malls.

• No traffic problem.

• Low cost – AED 102 per square foot for 4000 square feet.

• High visibility as it is located on the side of the Emirates Road that run from Ras Al

Khaimah, through Umm Al Quwain, Sharjah and Dubai to Abu Dhabi. Estimated time

from Dubai is 25 minutes.

All of these qualities are consistent with Sip ‘n’ Surf Club’s goal of providing a central hub

of communication and socialization for the Ajman community.

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Services

3.0 Services

Sip ‘n’ Surf Club will provide full access to email, WWW, FTP, Usenet and other Internet

applications such as Telnet with the help of 20 high speed computers. Printing, scanning, and

introductory courses to the Internet will also be available to the customer. Sip ‘n’ Surf will

also provide customers with a unique and innovative environment for enjoying great coffee,

specialty beverages, bakery items and a gaming zone which includes video games, billiards,

foosball and 20 computers for playing games.

3.1 Service Description

Sip ‘n’ Surf is divided into 3 zones namely Internet Zone, Gaming Zone and Food Zone.

Internet zone will consist of 20 high speed computers which will provide customers to access

external POP3 email accounts, sign up for a Sip ‘n’ Surf email account, which will be

managed by the club, FTP, telnet and other popular application, access to Internet Explorer

and Firefox Mozilla browsers, color laser printer, scanner and popular software applications

like Adobe Photo Shop and MS office.

Gaming zone will also include 20 high speed computers with latest games, PS3’s with

Plasma screen, four billiard and foosball tables. Food zone will provide hot and cold

beverages and fresh bakery items.

Sip ‘n’ Surf Club will also provide its customers with access to introductory Internet and

email classes. These classes will be held in the afternoon and late in the evening. By

providing these classes, Club will build a client base familiar with its services. A comfortable

environment will provide Sip ‘n’ Surf customers with a home away from home, a place to

enjoy the benefits of computing in a comfortable and well-kept environment.

3.2 Competitive Comparison

This type of Club will be the first in Ajman. Sip ‘n’ Surf will differentiate itself from the

strictly-coffee clubs by providing its customers with Internet and computing services, gaming

zone and a food zone.

3.3 Fulfillment

Sip ‘n’ Surf will obtain computer support and Internet access from Etisalat, who will provide

the Internet connections, network consulting, and the hardware required to run the internet

zone. Jashanmal Department Stores will provide with coffee equipment, Nestle Middle East

Consumer Service with bulk coffee, Uniliver Gulf FZE with bulk tea bags and stationary

items will be provided by Farook stationary. The contract for the bakery items will be given

to Al Reem bakery. The fruits for juices will be provided by Al Manama Food Stuff.

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3.4 Technology

Sip ‘n’ Surf will invest in high-speed computers to provide its customers with a fast and

efficient connection to the Internet. The computers will be reliable and fun to work with. It

will continue to upgrade and modify the systems to stay current with communications

technology. The gaming zone will include plasma screens for PS3 and good performance

computers to play latest games.

3.5 Future Services

As Sip ‘n’ Surf Club grows, more communications systems will be added. The possibility of

additional units has been accounted for in the current floor plan. As the demand for Internet

connectivity increases, along with the increase in competition, it will continue to add new

services to keep its customer base coming back for more.

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Market Analysis Summary

4.0 Market Analysis Summary

Sip ‘n’ Surf Club is faced with the exciting opportunity of being the first-mover in the

Emirates City-Ajman. The consistent popularity of coffee, combined with the growing

interest in the Internet, has been proven to be a winning concept in other markets and will

produce the same results in the City.

4.1 Market Segmentation

Sip ‘n’ Surf’s customers can be divided into two groups. The first group is familiar with the

Internet and desires a progressive and inviting atmosphere where they can get out of their

offices or bedrooms and enjoy a great cup of coffee. The second group is not familiar with

the Internet, yet, and is just waiting for the right opportunity to enter the online community.

Sip ‘n’ Surf target market falls anywhere between the ages of 12 and 50. This extremely wide

range of ages is due to the fact that we will be providing a internet, gaming and food zone

which appeals to a variety of people.

4.2 Target Market Segment Strategy

Sip ‘n’ Surf intends to cater to people who want a guided tour on their first spin around the

Internet and to experienced users eager to indulge their passion for computers in a social

setting. Furthermore, the Club will be a magnet for local and traveling professionals who

desire to work or check their email messages and have refreshments in a friendly atmosphere.

These professionals will either use Club's PCs, or plug their notebooks into Internet

connections (Wi-Fi). Sip ‘n’ Surf target market covers a wide range of ages: from members

of modern generation who grew up surrounded by computers, to Baby Boomers who have

come to the realization that people today cannot afford to ignore computers.

4.3 Market Needs

Factors such as current trends, addiction, and historical sales data ensure that the high

demand for beverages and bakery items will remain constant over the next few years. The

potential growth of the Internet is enormous, to the point where one day, a computer terminal

with an online connection will be as common and necessary as a telephone. This may be 10

or 20 years down the road, but for the next five years, the online service provider market is

sure to experience tremendous growth. Being the first Club in Emirates City, Sip ‘n’ Surf will

enjoy the first-mover advantages of name recognition and customer loyalty. Initially, the

Club will hold a 100 percent share of the Club market in the City. In the next five years,

competitors will enter the market. Sip ‘n’ Surf Club has set a goal to maintain greater than a

50 percent market share.

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4.4 Service Business Analysis

The popularity of the Internet is growing exponentially. Those who are familiar with the

Internet are well aware of how fun and addictive surfing the Net can be. Those who have not

yet experienced the internet, need a convenient, relaxed atmosphere where they can feel

comfortable learning about and utilizing the current technologies. The Club seeks to provide

its customers with affordable Internet access in an innovative and supportive environment.

Due to expected intense competition, cafe owners must look for ways to differentiate their

place of business from others in order to achieve and maintain a competitive advantage. The

founders of Sip ‘n’ Surf Club realizes the need for differentiation and strongly believes that

combining a Club with complete Internet service along with a food and gaming zone will be

the key to success. The fact that no such Club is established in the Emirates of Ajman,

presents Sip ‘n’ Surf Club with a profitable avenue in this market.

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Strategy and Implementation Summary

5.0 Strategy and Implementation Summary

Sip ‘n’ Surf Club has two main strategies. The first strategy focuses on attracting novice

Internet users. By providing a novice friendly environment, the Club hopes to educate and

train a loyal customer base. It will also focus on pulling in power Internet users. Power

Internet users are extremely familiar with the Internet and its offerings. This group of

customers serves an important function at the Club. Power users have knowledge and web-

browsing experience that novice Internet users find attractive and exciting.

The second strategy focuses on building a social environment for Sip ‘n’ Surf customers. A

social environment, that provides entertainment (food and gaming zone), will serve to attract

customers.

5.1 SWOT Analysis

The SWOT analysis provides us with an opportunity to examine the internal strengths and

weaknesses Sip ‘n’ Surf must address. It also allows us to examine the opportunities

presented to the Club as well as potential threats.

Sip ‘n’ Surf Club has a valuable inventory of strengths that will help it succeed. Strengths are

valuable, but it is also important to realize the weaknesses. Sip ‘n’ Surf’s strengths will help it

capitalize on emerging opportunities and avoid threats faced in the market.

5.1.1 Strengths

1. Knowledgeable and friendly staff. We've gone to great lengths to find people with a

passion for teaching and sharing their Internet experiences. Our staff is both

knowledgeable and eager to please.

2. State-of-the art equipment. Part of the Club experience includes access to state-of-the-art

computer equipment. Our customers enjoy beautiful flat-screen displays, fast machines,

and high-quality printer and scanner.

3. Up-scale ambiance. When you walk into the Club, you'll feel the technology. Flat-screen

monitors and plasma screens inset into the walls provide a cozy hideaway for meetings

and small friendly gatherings. Aluminum track lighting and art from local artists sets the

mood. Last, but not least, quality cappuccino machines and a glass pastry display case

provide enticing refreshments.

4. Clear vision of the market need. The Club knows what it takes to build an upscale Club.

We know the customers, we know the technology, and we know how to build the service

that will bring the two together.

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5.1.2 Weaknesses

1. A dependence on quickly changing technology. Sip ‘n’ Surf Club is a place for people to

experience the technology of the Internet. The technology that is the Internet changes

rapidly. It needs to keep up with the technology because a lot of the Club experience is

technology.

2. Cost factor associated with keeping state-of-the-art hardware. Keeping up with the

technology of the Internet is an expensive undertaking. The Club needs to balance

technology needs with the other needs of the business. One aspect of the business can't be

sacrificed for the other.

5.1.3 Opportunities

1. Growing population of daily Internet users. The importance of the Internet almost equals

that of the telephone. As the population of daily Internet users increases, so will the need

for the services the Club offers.

2. Social bonds fostered by the new Internet communities. The Internet is bringing people

from across the world together unlike any other communication medium. It will capitalize

on this social trend by providing a place for smaller and local Internet communities to

meet in person. The Club will grow some of these communities on its own by establishing

chat areas and community programs. These programs will be designed to build customer

loyalty.

5.1.4 Threats

1. Rapidly falling cost of Internet access. The cost of access to the Internet for home users is

dropping rapidly. Internet access may become so cheap and affordable that nobody will

be willing to pay for access to it. Sip ‘n’ Surf is aware of this threat and will closely

monitor pricing.

2. Emerging local competitors. Currently, it is enjoying a first-mover advantage in the local

Club market. However, additional competitors are on the horizon, and we need to be

prepared for their entry into the market. Many of our programs will be designed to build

customer loyalty, and it is our hope that our quality service and up-scale ambiance won't

be easily duplicated.

5.2 Marketing Strategy

Sip ‘n’ Surf Club will position itself as an upscale internet, gaming and food zone provider. It

will serve high-quality coffee and beverages at a competitive price. It will use advertising as

its main source of promotion. Ads placed in Gulf News, Khaleej Times and Emirates Today

will help build customer awareness. Accompanying the ad will be a coupon for a free hour of

Internet travel. Furthermore, the Club will give away three free hours of Internet use to

beginners who will sign-up for the club’s membership.

The Club has budgeted AED4,000 for this promotional efforts. Sip ‘n’ Surf Club realizes that

in the future, when competition enters the market, additional revenues must be allocated for

promotion in order to maintain market share.

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5.3 Pricing Strategy

The Club bases its prices for coffee and specialty drinks on the "retail profit analysis"

provided by our suppliers, Nestle Middle East Consumer Service, Uniliver Gulf FZE and Al

Manama Food Stuffs.

Determining a fair market, hourly price, for online use is more difficult because there is no

direct competition from another cyber-cafe in the City. Therefore, the Club considered a

pricing strategy wherein the customers pay AED1 for each 15 minutes which comes up to

AED4 for an hour. This pricing strategy is flexible for those people who wish to use internet

for a limited time.

5.4 Sales Strategy

As a retail establishment, Sip ‘n’ Surf Club employs people to handle sales transactions.

Computer literacy is a requirement for the Club employees. If an employee does not possess

basic computer skills when they are hired, they are trained by our full-time technician. Our

full-time technician is also available for customers in need of assistance. Sip ‘n’ Surf’s

commitment to friendly, helpful service is one of the key factors that will distinguish the Club

from other competitors.

5.5 Sales Forecast

Sales forecast data is presented in the chart and table below.

Sales Forecast

Unit Sales

Coffee (based on average)

Specialty Drinks (based on average)

Email Memberships

Hourly Internet Fees

Baked Goods (based on average)

Total Unit Sales

2009 2010 2011

18,250

18,250

9,125

36,500

21,900

1,04,025

20075

20075

10038

40150

24090

1,14,428

22083

22083

11042

44165

26499

1,25,872

Unit Prices

Coffee (based on average)

Specialty Drinks (based on average)

Email Memberships

Hourly Internet Fees

Baked Goods (based on average)

AED5.0

AED6.0

AED2.0

AED4.0

AED5.0

AED5.0

AED6.0

AED2.0

AED4.0

AED5.0

AED5.0

AED6.0

AED2.0

AED4.0

AED5.0

Sales

Coffee (based on average)

Specialty Drinks (based on average)

Email Memberships

Hourly Internet Fees

Baked Goods (based on average)

Total Sales

AED91,250

AED1,09,500

AED18,250

AED1,46,000

AED1,09,500

AED4,74,500

AED1,00,375

AED1,20,450

AED20,076

AED1,60,600

AED1,20,450

AED5,21,951

AED1,10,415

AED1,32,498

AED22,084

AED1,76,660

AED1,32,495

AED5,74,152

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Direct Unit Cost

Coffee (based on average)

Specialty Drinks (based on average)

Email Memberships

Hourly Internet Fees

Baked Goods (based on average)

AED2.50

AED3.0

AED1.50

AED0.49

AED2.50

AED2.5

AED3.0

AED1.5

AED0.49

AED2.50

AED2.5

AED3.0

AED1.5

AED0.49

AED2.50

Direct Cost of Sales

Coffee (based on average)

Specialty Drinks (based on average)

Email Memberships

Hourly Internet Fees

Baked Goods (based on average)

Total Direct Cost of Sales

AED45,625

AED54,750

AED13,688

AED17,885

AED54,750

AED1,86,698

AED50,188

AED60,225

AED15,057

AED19,674

AED60,225

AED2,05,369

AED55,208

AED66,249

AED16,563

AED21,641

AED66,248

AED2,25,909

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Management Summary

6.0 Management Summary

Sip ‘n’ Surf Club owned and operated by seven partners, out of which two will be involved in

the management decisions and the remaining five will be inactive partners.

6.1 Personnel Plan

The staff will consist of six full-time employees working 336 hours a month at AED1,000 per

month. In addition, one full-time technician (who is more technologically oriented to handle

minor terminal repairs/inquiries) will be employed to work 336 hours a month at AED1,200

per month. This simple structure provides a great deal of flexibility and allows

communication to disperse quickly and directly. Because of these characteristics, there are

few coordination problems seen at Sip ‘n’ Surf Club that are common within larger

organizational chains. This strategy will enable the Club to react quickly to changes in the

market.

Personnel Plan

Partner 1

Partner 2

Partner 3

Partner 4

Partner 5

Partner 6

Partner 7

Full-Time 1

Full-Time 2

Full-Time 3

Full-Time 4

Full-Time 5

Full-Time 6

Technician

2009

AED13,075

AED13,075

AED5,230

AED5,230

AED5,230

AED5,230

AED5,230

AED12,000

AED12,000

AED12,000

AED12,000

AED12,000

AED12,000

AED14,400

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Financial Plan

7.0 Financial Plan

Sales: Sip ‘n’ Surf estimated 100 people coming to our club on a daily basis and an average

of 50 customers will be opting for coffee and other eatables.

Cost of Goods Sold: The cost of goods sold for hot and cold beverages will be 50% of the

selling price and the cost of bakery items will also be 50% of the selling price. The cost of

Internet hours sold will be 12.25%of the selling price and the cost of e-mail accounts will be

34% of the selling price.

Fixture Costs: Fixture costs associated with starting Sip ‘n’ Surf are the following: 40

computers = AED1,20,000, one color laser printer = AED1,150, one scanner = AED350, one

espresso machine = AED24,300, two coffee/food preparation counters = AED3,600, one

information display counter = AED3,600, fifteen stools = AED2,000, forty computer desks

and w/chairs = AED10,000, stationery goods = AED2,000, two telephones = AED100,

decoration expense = AED50,000, four billiard tables = AED36,000, four foosball table =

AED40,000 for a total fixture cost of AED2,193,100.

Profit Distribution: The partners Mohammad Faisal and Sufiyan Farooq will share 25% of the

total net profit each and the rest M.Kamrul Hassan, Maithreyi Muralidharan, Jeciya Abdul

Jabbar, Amanda Sequeira and Amber Fernandes, each will share 10% of the net profit of Sip

‘n’ Surf Club.

Payroll Expense: Sip ‘n’ Surf Club intends to hire six full-time employees at

AED1,000/month and a full-time technician at AED1,200/month. The total cost of employing

seven people at these rates for the first and second year is AED7,200/month and as the

payrolls of the employees will be increased in the third year the total expense will be

AED8,700/month,

Ownership Expense: Sip ‘n’ Surf will acquire the land of 4,000 square foot for

AED102/sq.foot which comes up to AED4,08,000.

Utilities Expense: The only utilities expense that the club must pay is the phone bill, DSL

connection, fax and data service, a mobile line and electricity expense. The basic monthly

charge for landline is AED50, fax and data AED25/quarter, DSL AED350/month.

Marketing Expense: The Club will allocate AED4,000 for promotional expenses at the time

of start-up. These amounts will be used for advertising in local newspapers in order to build

consumer awareness. For additional information, please refer to section 5.0 of the business

plan.

Insurance Expense: The Club has allocated AED10,500 for insurance only for the internet

zone for its first year of operation. As revenue increases in the second it will allocate a total

amount of AED15,000 which will cover both internet and gaming zone and in the third year

of business, it will intend to invest more money for all the three zones, which will be

AED20,000 for insurance coverage.

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Legal Expenses: The cost of obtaining legal consultation for the first year of the operation, in

order to draw up the paper work necessary for a partnership business is AED25,000 and

thereafter it will be AED10,000 every year. The amount is subjected to change according to

the rules and regulations of the government.

Depreciation: In depreciating our capital equipment, the Club will use straight line method.

We depreciated our computers over a three-year time period and our fixtures over five years.

7.1 Projected Profit and Loss

P & L data is presented in the table below.

Projected Profit and Loss

Sales

Direct cost of sales

Gross Margin

Operating Expenses:

Payroll

Marketing Expenses

Legal Expenses

Insurance

Utilities

Land Installments

Other Expenses

Total Operating Expenses

Net Profit

2009

AED4,74,500

AED1,86,698

AED 2,87,802

AED86,400

AED4,000

AED10,000

AED10,500

AED20,600

AED1,02,000

AED2,000

AED2,35,500

AED52,302

7.2 Projected Cash Flow

Cash flow data is presented in the table below:

Projected Cash Flow

Cash Receives:

Cash Sales

Total Cash Receives

Expenditures from operations:

Payroll

Utilities

Marketing Expenses

Insurance

Legal Expenses

Land installments

Other Expenses

Total Cash Spent

Net Cash Flow

Cash Balance

2009

AED4,74,500

AED4,74,500

AED86,400

AED20,600

AED4,000

AED10,500

AED10,000

AED1,02,000

AED2,000

AED2,35,500

AED2,39,000

AED3,26,012

Page 19: Sip 'n' Surf Club Business Plan

Sip ‘n’ Surf Club Business Plan Confidential

www.sipnsurfclub.com Page | 19

7.3 Projected Balance Sheet

Our projected balance sheet is presented in the table below:

Projected Balance Sheet for the Year Ended 2009

Capital and Liabilities Amount Assets Amount

Current Liabilities

Accounts Payable

Current Borrowings

Long Term Liabilities

Repayment of property

installments

Owners Capital

Paid-in Capital

Net Profit

---

---

AED1,02,000

AED7,00,000

AED52,302

Current Assets

Cash

Inventory

Fixed Assets

Land

Computers

Billiard Tables

Foosball Tables

Coffee Machines

AED326012

AED1,990

AED3,06,000

AED1,20,000

AED36,000

AED40,000

AED24,300

Total AED8,54,302 Total AED8,54,302


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