BUSINESS PLAN

Hit or Miss Sports Bar

Lincoln Reeves, Owner

Created on July 29, 2015

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Hit or Miss Sports Bar Tuscaloosa, AL

1. EXECUTIVE SUMMARY
1.1 Product
Hit or Miss Sports Bar will provide a great selection of drinks along with great
American style bar foods.

1.2 Customers
I would like to attract young professional men and women, specifically 21 and
older.

1.3 What Drives Us

Being Fiscally Responsible
Customer / Employee Satisfaction
Maintain Health Standards
Return a Profit

2. COMPANY DESCRIPTION
2.1 Mission Statement
Hit or Miss would like to be know as the bar to go to in downtown Tuscaloosa. WE
would like to stay ahead of competetion, while keeping the customers satisfied. Hit
or Miss provides three spereate bars along with two pool tables. We try and offer an
overall great experience for the whole crowd.

2.2 Principal Members

Lincoln Reeves is the owner/operator of Hit or Miss Sports Bar. John C. Reiley is
the food Manager who oversees the food operations. Will Ferrell is the bar
Manager who oversees the bar operations. Hunter Thompson and Donald Trump
are the two bartenders while Billy Thornton is in the kitchen as the cook.

2.3 Legal Structure

Sole Proprietership

3. MARKET RESEARCH
3.1 Industry
The bar scene in Tuscaloosa is a growning market. It is focused on making a profit
but being affordable to the general public. Most bars in Tuscaloosa are centered
around sports and drink specials. These bars allow for a variety of themes, music,
and food.

3.2 Customers
The people who fill these bars up are most likely a college students from the ages
of 18-26. With it being a college town there are new potential customers every year
along with the fan base the come into town for sporting events.

3.3 Competitors
My competetion would be all of the other bars and resturaunts in the downtown
area of Tuscaloosa.

3.4 Competitive Advantage

A wide selection of craft beer, offering 70 taps, along with a view of downtown
Tuscaloosa from the patio.

3.5 Regulations
Health Inspections
Capacity Fire
Codes Alcohol
Age laws

Labor laws

4. PRODUCT/SERVICE LINE
4.1 Product or Service
Hit or Miss Sports bar will provide a great on tap draft beer system. It will include
imported, domestic, and craft beers. The liquor selection will be both top shelf and
well. What will seperate our food from others is that it is all locally farmed and
raised.

4.2 Pricing Structure

My pricing structure would be focused on the affordability of college students. It
will be an equal portion of food compared to the prices. There will be drink and
food specials offered daily. My prices are competitive because of my low markup
of 25%. It is the lowest in town. I also offer my customers to become a member of
the crimson club which allows them discounts, early admittance and faster service.

4.3 Product/Service Life Cycle

This is the first year that Hit or Miss is open.

4.4 Intellectual Property Rights

Currently the style name and processes of the drinks we make are all my bars
intellectual property. We also offer a wide variety of sauces unlike anywhere else
unique only to Hit or Miss.

4.5 Research & Development

I encourage my customers to add and follow my business on social media and
provide any feedback about the food, music, and events that are held. This is a vital

tool in todays growing market.

Hit or Miss Sports Bar Tuscaloosa, AL

5. MARKETING & SALES

5.1 Growth Strategy
Once I get my business's name out there and am known for having great food and
drinks, I would like to buy the spot that is available beside is and expand. This
addition will allow me to have catered events and exclusive parties.

5.2 Communication
I would continue to take advantage of social media and all of the benefits that it
offers in today's growing market. My customers are up to date on current events
and recieve most of that information from their social media accounts.

5.3 Prospects
The products that I sell will all be sold in house.

Hit or Miss Sports Bar Tuscaloosa, AL

6. FINANCIAL PROJECTIONS
6.1 PROFIT & LOSS
Sales
Costs/Goods Sold
GROSS PROFIT

Year 1

Year 2

Year 3

$1,200,000

$1,600,000

$2,100,000

$568,000
$632,000

$840,000
$760,000

$1,300,000
$800,000

$150,000

$157,500

$165,375

Payroll (taxes, etc.)

$0

$0

$0

Outside Services

$0

$0

$0

Supplies (office & operation)

$5,000

$5,000

$5,000

Repairs & Maintenance

$5,000

$5,000

$5,000

$50,000

$95,000

$135,000

$0

$0

$0

Accounting & legal

$10,000

$10,000

$10,000

Rent

$48,000

$52,000

$57,000

$1,200

$1,200

$1,200

Utilities

$26,000

$31,000

$33,000

Insurance

$36,000

$36,000

$36,000

Taxes (real estate, etc.)

$0

$0

$0

Interest

$0

$0

$0

Depreciation

$10,000

$10,000

$10,000

Other expenses
TOTAL EXPENSES

$10,000
$351,200

$5,000
$407,700

$5,000
$462,575

OPERATING EXPENSES
Salary (Office & Overhead)

Advertising
Car, delivery & travel

Telephone

NET PROFIT (before taxes)

Income Taxes
NET PROFIT (after tax)
Owner Draw/Dividends

$0
$280,800
$0

$0
$352,300
$0

$0
$337,425
$0

Hit or Miss Sports Bar Tuscaloosa, AL

ADJUSTED TO RETAINED

$280,800

$352,300

$337,425

6.2 CASH FLOW (01/01/2015 to 12/31/2015)

Cash on hand
CASH RECEIPTS
Cash Sales
Collections from CR
Accounts
Loan/Cash Injection
TOTAL CASH
RECEIPTS
TOTAL CASH
AVAILABLE
(before cash out)
CASH PAID OUT
Purchases
Gross Wages
Outside Services
Supplies
Repairs & Maintenance
Advertising
Car, delivery & travel
Accounting & legal
Rent
Telephone
Utilities
Insurance
Taxes (real estate, etc.)
Interest
Other expenses
SUBTOTAL
Loan principal payment
Capital purchase
Other startup costs
Reserve and/or Escrow
Others withdrawal
TOTAL CASH PAID
OUT

Pre Startup
EST
$250,000

Year 1

Year 2

Year 3

Total Item
EST
$753,000 $1,783,000

$335,000

$445,000

$0
$0

$500,000
$0

$750,000
$0

$1,000,000
$0

$2,250,000
$0

$250,000
$250,000

$0
$500,000

$0
$750,000

$0
$1,000,000

$250,000
$2,500,000

$500,000

$835,000

$1,195,000

$1,753,000

$4,283,000

$100,000
$0
$0
$5,000
$0
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$115,000
$0
$50,000
$0
$0
$0
$165,000

$102,000
$80,000
$0
$1,000
$5,000
$50,000
$0
$10,000
$48,000
$12,000
$26,000
$36,000
$0
$0
$10,000
$380,000
$10,000
$0
$0
$0
$0
$390,000

$105,000
$80,000
$0
$1,000
$5,000
$95,000
$0
$10,000
$52,000
$12,000
$31,000
$36,000
$0
$0
$5,000
$432,000
$10,000
$0
$0
$0
$0
$442,000

$110,000
$80,000
$0
$1,000
$5,000
$135,000
$0
$10,000
$57,000
$12,000
$33,000
$36,000
$0
$0
$5,000
$484,000
$20,000
$50,000
$0
$0
$0
$554,000

$417,000
$240,000
$0
$8,000
$15,000
$290,000
$0
$30,000
$157,000
$36,000
$90,000
$108,000
$0
$0
$20,000
$1,411,000
$40,000
$100,000
$0
$0
$0
$1,551,000

CASH POSITION

$335,000

$445,000

$753,000

$1,199,000

$2,732,000

6.3 BALANCE SHEET

Assets

Start Date:

End Date:

CURRENT ASSETS
Cash in bank

$250,000

$1,199,000

$0

$0

$100,000

$100,000

$48,000

$57,000

Deposits

$0

$0

Other current Assets

$0

$0

$398,000

$1,356,000

$100,000

$80,000

$20,000

$10,000

$2,000

$5,000

Land & Buildings

$0

$0

Other fixed assets

$0

$0

$122,000

$95,000

$0

$0

$10,000

$5,000

Accounts Receivable
Inventory
Prepaid Expenses

TOTAL CURRENT ASSETS

FIXED ASSETS
Machinery & Equipment
Furniture & Fixtures
Leaseholder improvements

TOTAL FIXED ASSETS

(net of depreciation)

OTHER ASSETS
Intangibles
Other

$10,000

$5,000

$530,000

$1,456,000

$180,000

$0

Interest Payable

$0

$5,000

Taxes Payable

$0

$0

Notes, short term (due in 12

months)

$0

$0

Current part, long-term debt

$0

$0

$180,000

$5,000

$250,000

$175,000

Notes payable to stockholders

$0

$0

LESS: short-term portion

$0

$0

Other long-term debt

$0

$0

TOTAL LONG-TERM DEBT

$250,000

$175,000

TOTAL LIABILITIES

$430,000

$180,000

TOTAL OTHER ASSETS

TOTAL ASSETS

Liabilities & Equity

CURRENT LIABILITIES
Accounts Payable

TOTAL CURRENT
LIABILITIES

LONG TERM DEBT

Bank loans payable

OWNERS EQUITY
Common Stock

$0

$0

Retained Earnings

$100,000

$1,276,000

TOTAL OWNERS EQUITY

$100,000

$1,276,000

TOTAL LIABILITIES &

EQUITY

$530,000

$1,456,000

6.4 BREAK EVEN ANALYSIS

DIRECT COSTS

Fixed Costs ($)

Variable Costs (%)

Cost of Goods Sold

$100,000

3%

Inventory

$100,000

3%

Raw Materials

$100,000

3%

$80,000

3%

Salaries

$80,000

3%

Supplies

$110,000

3%

$5,000

5%

$75,000

7%

$0

0%

Rent

$52,000

0%

Telephone

$12,000

0%

Utilities

$31,000

5%

Insurance

$0

0%

Taxes

$0

0%

Interest

$0

0%

Depreciation

$10,000

3%

Other Costs

$8,000

2%

TOTAL DIRECT
COSTS

$380,000

12%

TOTAL INDIRECT
COSTS

$763,000

40%

Direct Labor

INDIRECT COSTS

Repairs & Maintenance

Advertising
Car, delivery & travel

BREAKEVEN SALES LEVEL: $2,381,250

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Hit or Miss Sports Bar Tuscaloosa, AL

6.5 FINANCIAL ASSUMPTIONS

6.5.1 Assumptions for Profit and Loss Projections
My assumptions are as follows: taking on a lot of debt during start up, selling low
to attract customers, good customer service to keep those customers.

6.5.2 Assumptions for Cash Flow Analysis

At start up my primary cash flow will come from my loan. Once the business is
established and profitable, I will use the cash surplus to invest in properties
adjacent to the bar. This will allow me to hold larger crowds and make more
money.

6.5.3 Assumptions for Balance Sheet

The assumptions that my assets will out weigh my liabilities.

6.5.4 Assumptions for Break Even Analysis

This spreadsheet shows me information that tells me when I'm heading into a
positive direction away from my debt.

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