We want to finance growth mainly through cash flow. We recognized that this means we will have to grow slowly.
The most important indicator in our case is that minimal inventory will have to be stored for these products.

7.1 Important Assumptions

Monthly sales are the largest indicator for this business. There are some seasonal variations with the months of March through September being the highest sales months.

[table]

7.2 Key Financial Indicators

The following Benchmark chart shows our key financial indicators.

[graph]

7.3 Break-even Analysis

The following table and chart show the current break-even analysis. The operation will require sales of approximately $2,900 to break even during the first year of operation.

[graph & table]

7.4 Projected Profit and Loss

We expect a profit of $10,000 in year one; $23,000 in year two; and $37,000 in year three of operation.

[table]

7.5 Projected Cash Flow

Projected cash flow is estimated as follows for the next three years:

1997 - $24,000
1998 - $36,000
1999 - $50,000

7.6 Projected Balance Sheet

The balance sheet shows a slow but steady upward growth in net worth after initial start-up as follows:

1997: ($16,000)  (Negative)
1998: $7,500
1999: $45,000

7.7 Business Ratios

Standard business ratios are included in the table that follows. The ratios show a plan for balanced, healthy growth. The standard industry indicators shown are for SIC 5812, eating places.

[table]