bowl. eat. drink. dance. promotion awareness campaign affiliation with university clubs bowling...

BOWL. EAT. DRINK. DANCE

PROMOTION

• Awareness Campaign

• Affiliation with University Clubs

• Bowling Leagues

• Host Beer nights

• Host local DJs

• Social Media

Level 1

Level 2

CAPITAL BUDGETLeasehold Improvements

200,000

Bowling equipment 150,000

Electronic Equipment 15,000

Furniture and Fixtures 70,000

Total 435,000

FINANCIAL BUDGET

Bank Debt 250,000

Equity 200,000

1 2 3 4 50

20

40

60

80

100

120

140

10096

106111

116

8689 88 88 88

Net Income Breakeven

Year

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NPV =

IRR= 41.6%NPV= 187,138

Average 5 year Net Income =

HOW DOES NEON BREAK EVEN?

FEASIBLE?

BOWL. EAT. DRINK. DANCE

By Kelsey Moreau

HOW SENSITIVE ARE THESE PROFITS?

Customers/dayAverage 5 year

Profit Net Payback IRR Compensation

80 (19,514.00) (97,995.00) -41% 55,191.00

90 34,745.00 333,764.00 12% 88,742.00

100 84,492.00 754,401.00 41% 149,620.00

110 134,240.00 1,175,037.00 66% 202,865.00

120 183,988.00 1,595,674.00 89% 256,110.00

Price/Customer

Average 5 year Profit Net Payback IRR Compensation

$15.00 (155,617.00) (1,202,062.00) % 55,191.00

$20.00 (19,514.00) (97,995.00) -41% 55,191.00

$25.00 84,492.00 754,401.00 42% 149,620.00

$30.00 183,988.00 1,595,674.00 89% 256,110.00

$35.00 283,483.00 2,436,947.00 134% 362,601.00

Bowling40%

Food25%

Liquor35%

Revenue Breakdown

Accounting and Legal

2,500 2,563

2,627

2,692

2,760 Advertising (Marketing)

3,000 3,075

3,152

3,231

3,311 General Supplies

1,000 1,025

1,051

1,077

1,104

Insurance

5,000 5,125

5,253

5,384

5,519 Telephone

1,200 1,230

1,261

1,292

1,325

Utilities

45,000 46,125

47,278

48,460

49,672 Repair and

Maintenance 5,000 5,125

5,253

5,384

5,519

Rent 250,000

256,250

262,656

269,223

275,953

Wages 217,580

220,994

242,795

260,114

279,027

Employee Benefits (salaried)

4,095 4,197

4,302

4,410

4,520 Employee

Benefits (wages) 23,394 23,696

26,561

28,795

31,248

Misc. Variable Costs % Sales

2,250 2,214

2,496

2,687

2,891 Capital Cost

Allowance 15,000 27,750

23,663

20,319

17,575

Debt Interest

17,500 16,522

15,475

14,355

13,156 Total Operating

Expenses 592,519

615,891

643,823

667,424

693,580