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BUSINESS PLAN Bar Bike ® Business Plan & Funding Proposal March 9, 2015

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Page 1: Bar Bike LLC

BUSINESS PLAN

Bar Bike ®

Page 1

Business Plan & Funding Proposal

March 9, 2015

Page 2: Bar Bike LLC

Bar Bike ®

BUSINESS

PLAN

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CONTENTS

1. Executive Summary ........................................................................................................................ 1

2. Vision & Mission Statements ......................................................................................................... 3

3. Business & Industry Profile ............................................................................................................ 4

4. Business Strategy ............................................................................................................................ 7

5. Company Products and Services ..................................................................................................... 9

6. Marketing Strategy .......................................................................................................................... 11

7. Location and Layout ........................................................................................................................ 15

8. Competitor Analysis........................................................................................................................ 19

9. Management Team .......................................................................................................................... 21

10. Plan of Operation .......................................................................................................................... 23

11. Financial Forecasts ....................................................................................................................... 24

12. Appendices.................................................................................................................................... 30

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1. EXECUTIVE SUMMARY

Company

Information Bar

Bike, LLC 1310 K

Street

San Diego, CA 92101

(310) 571-8781

Company Description

Company Owners / Members

Operations & Planning: D a v i d C l a r k

Marketing & Sales: Kevin Fontana

Finance: Kavi Bajaj

Human Resources: Steven Chow

The Bar Bike is a 16-person bicycle, manually powered by its passengers and operated by a “captain”,

that is ideal for just about every type of group outing/celebration imaginable — from bar-hopping

with friends to team-building with colleagues. It’s a fun, easy and safe way to socialize while

enjoying local sights and being outdoors.

We will be launching pub-crawl tours around the historic Gaslamp Quarter, which is located in the

heart of the San Diego nightlife. We will begin with two different routes set throughout the

Gaslamp Quarter, which when followed, will give our guests an exciting and new way to get

around.

Our target market is primarily college students. The typical college student goes out every

weekend and likes to socialize with others at bars and clubs.

The Gaslamp Quarter is also visited by millions of tourists every year; so new customers are

expected often. Our job is to present them with an exciting and unique way of traveling from one

place to another; a way in which they have never experienced before. Though San Diego city policy

forbids drinking on board at this time, we are hopeful that we will eventually be able to get this

concession from the city, as has been achieved in numerous cities throughout the United States by

similar companies (see appendix 1).

Bar Bike LLC is a company run by 4 members. We are planning to launch our company with a

splash during Oktoberfest. Because we anticipate October to be the busiest month, we are

operating on a fiscal year of Nov 1 - Oct. 31. The 2015-year in all proceeding diagrams and charts

is a short 3-month year.

Objectives

• Successfully develop client base of college students and tourists ages 21 to 44

• Purchase additional Bar Bike at beginning of second year (J)

• To increase our monthly sales above $20,000 by November 1, 2016

• Convince San Diego City to allow open-container drinking on-board Bar Bike

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Subtotal 95,885

External Debt Financing Required

Total Capital Costs in First 2 Year 183,736

Committed Capital (20,000)

15% Contingency 14,383

Total 110,268

Total 163,736

Additional Capital Investment on November 1, 2015

Bar Bike (made by BeerWheel Drive)

63,885

Financial Highlights We are seeking an SBA 7(a) 7-year loan of $200,000 at 5.25% (prime + 2%). Startup costs,

capital expenditures, and capital expenditures for the first 2 years are in the following table:

Startup Costs

Bar Bike (made by BeerWheelDrive) 63,885

Used 2007 Toyota Tundra Pickup Truck 15,000

Transportation Trailer & Hitch 5,000

Logo, Website Design & Social Media Setup 5,000

Legal Costs (Incorporation, IP, Licenses) 5,000

Warehouse Banners, Design 2,000

Committed Capital

Member 1: David Clark 5,000

Member 2: Kevin Fontana 5,000

Member 3: Kavi Bajaj 5,000

Member 4: Steven Chow 5,000

Total 20,000

15% Contingency 9,583

Total 73,468

Total Capital Costs in First 2 Years

Seeking $200,000 SBA 7(a) Loan @ 5.25% for 7 Years

Startup Costs 110,268

Additional Capital Investment 2014 73,468

Total 183,736

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2. VISION & MISSION

STATEMENTS

Vision Statement

We endeavor to give tourists and college students an unforgettable social experience that will stay with

them for years, and will be one that they will share with all their family and friends.

Mission Statement

To continuously strive to exceed peoples’ expectations by building unforgettable memories

through the Bar Bike. We will accomplish this by providing highly enjoyable and innovative

quality tours stopping at famous pubs and visiting historical artifacts throughout the beach towns

of San Diego.

Keys to Success

• We will use social media to introduce our bar bike to the marketplace and offer

discounts through Yelp, Groupon and Living Social.

• Our bar bike will stand out from other forms of transportation in which we will have an

interactive tour guide and eventually permit to have beer and wine on board

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3. BUSINESS & INDUSTRY PROFILE

Industry Background and Overview

The first group bicycle originated in Amsterdam in the late 1900’s1 , name the Pedal Pub. Since then, it has spread to other parts of the world. Dedicated competitor manufactures cropped up, one of which was Beer Wheel Drive, which we are using as the manufacturer for our Bar Bike.

The Pedal Pub industry has been growing in recent years such as in places like Berlin, the

Netherlands, Minneapolis, and is only expected to expand throughout the U.S. For current

operators within the US, please see appendix 1.

The principal target consumers are college students and tourists. We are targeting all students from

the Universities and Colleges in the surrounding San Diego area.

We are going to start off with only one location; the Gaslamp District. The Gaslamp District runs for

16 and a half blocks, and is referred to as the “Heart of San Diego’s Nightlife”. There are many

attractions around this area, which is what brings in hundreds of locals and tourists who are looking

for a place to relax and have a good time.

We intend to start up in a college-based environment because college students popularize alcohol.

These college students will be able to network with people from school. The growth rate will rise

substantially during the summer time, which is the off time of most college students. It will also be a

main attraction during spring break. Our environment will be friendly and attractive to college

students. Although our focus will be taking people to bars, customers can also enjoy shopping and

dining while cycling through the Gaslamp district.

Significant Industry Trends

The U.S. alcoholic industry continues to grow and brings in revenues by the billions every year. We

expect to get new customers every day, especially when the school years resume.

The Pedal Pub in Minneapolis has successfully managed to have their passengers bring alcohol

on board, but only bring drinks such as wine, beer and wine coolers. No hard liquor is allowed.

The Trolley Pub in North Carolina is also allowing people to take their own wine, beer, and

coolers on board, but again, no hard liquor is allowed.

1 http://www.nytimes.com/2012/05/31/world/europe/from-amsterdam-beer-bikes-popularity-

spreads.html?_r=0

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Industry Growth Rate

The alcohol industry is a multi-billion dollar industry, and is alive and well. As the chart below

shows, 56% of beverages sold in the US were alcoholic. The estimated total alcohol industry size is

$189 billion.

Alcohol consumption among college students has remained very high throughout the last 10 years,

with no indication of reducing.

2 US Beverage Industry Sizing Chart (2011): http://www.parkstreet.com/industry/alcoholic-

beverage-market-overview/

3 Alcohol Consumption Among College Students Chart (2010): http://www.centurycouncil.org/

underage-drinking/college-drinking

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Key Success Factors

• The alcohol industry has many key success factors that keep it thriving throughout the

years. One is being able to adapt to the new markets and another is being able to introduce

new and exciting alcoholic beverages.

• Having a good tour guide is also critical, if the tour guide is boring and does not entertain his

or her audience people will get bored easily and not use the tour services.

• Gaslamp Quarter is the heart of SD nightlife, so being able to introduce the crowd to good

pubs with the right “vibe” and not depressing dingy places is a must. Outlook for Future Growth in Industry

As is visible in appendix 1, there is substantial growth in the Pedal Pub / mobile, large-group bicycle

tours. PedalPub having started in only in the year 2000, there are already 38 cities in the US with one.

Startup Stage: Launch 1 Bar Bike in San Diego.

Growth Stage: Expand fleet to 2 Bar Bikes.

Maturity Stage: Once we have satisfied demand in the market, we can expand our fleet further, or

start expanding to other busy college locations such as Santa Barbara, Long Beach and Berkeley,

which are locations free of competitors.

The market for alcohol is big throughout the college life. Many college students spend their

weekends having fun and enjoying time with friends at bars and pubs. This is where a lot of the

sororities and fraternities like to hang out and socialize to meet new people.

Company Goals and Objectives

• Achieve 75% saturation of 2 Bar Bike’s scheduling capacity (18 hours/ week-day, 30

hours/week-end)

• Reach $100k annual profit by the end of 2017

• Convince San Diego city to allow drinking on board the Bar Bike

• Expand to other busy college location such as Santa Barbara, Long Beach, and Berkeley

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4. BUSINESS STRATEGY Desired Image and Position in Market

Bar Bike will have a modern and fun vibe at a moderate price level marketed that will appeal

primarily to college students and tourists. Bar Bike does not seek to compete with high-end pub-

crawl services like limousine and private-car tours, nor free and spontaneous meet-ups. Bar Bike is

entering into a mid-range affordable pub-crawl segment that is barely developed, even in San Diego.

SWOT Analysis Strengths

• Innovative, fun idea that is relatively new, but has demonstrated enough popularity and

success in those markets where it has already been tried and tested.

• Low variable-cost (low maintenance, no fuel, etc.) business, so expansion is easy, and a

matter of raising capital for purchasing additional Bar Bikes. Business is cash-flow

positive very quickly.

• Superior social media and marketing plans due to Kevin’s familiarity and experience with

marketing via Yelp, Facebook, Twitter, Pinterest, Living Social, Groupon, etc.

Weaknesses

• Nobody in management team has prior experience running this type of business, since it

is so new.

Opportunities

• Additional web services such as Pinterest, Living Social, Groupon, Foursquare, etc. make it

easier and easier for people to discover new local attractions. It also makes offering

discounts and doing promotions much simpler.

Threats

• Relatively little preventing new market entrants. This would require Bar Bike to expand

quickly to meet market demand to make sure there is little room for additional competitors.

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Competitive Strategy Cost leadership

• Bar Bike will be medium priced. Each tour will cost $200/hour on weekends, or $12.5/

hour per person (2-hour minimum), and $175/hour on weekdays, or $11.25/hour per person

(2-hour minimum).

• Bar Bike will also sponsor “Mixer” nights, where people can book only 1 spot - this will be

$18/hour per person, or $20/hour for “cling-on’s” Differentiation

• Provides a public-facing, attention-attracting way to crawl from pub to pub, as opposed to

limousine services and simply walking.

• Creates memorable photo opportunities for college student and tourists alike.

• Drinking water and soft-drinks on board while pedaling provides exercise and

additional recovery from drinking alcohol in pubs. Focus

• To be as entertaining and fun loving as possible, by having a “Captain” or driver that is very

engaging, and interacts well with riders.

• The focus is to create an experience that each participant will never forget, and share with

everyone he/she knows

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5. COMPANY PRODUCTS & SERVICES Bar Bike Tours

Bar Bike is a 16-person bicycle, manually powered by its passengers and operated by a “captain”, that

is ideal for just about every type of group outing/celebration imaginable — from bar-hopping with

friends to team-building with colleagues. It’s a fun, easy, and safe way to socialize while enjoying

local sights and being outdoors.

The Bar Bike has a maximum speed of 5-8mph, and struggles to go up a 6% steep grade, so we pick

routes that are easier on the riders.

At time of launch, we will have 2 routes:

1. The Gaslamp Quarter: The route starts the Gaslamp Tavern at 5th avenue and E street,

continues down on 5th avenue and includes the following bars: Urban bar and Grill, Analog

bar, The Tipsy Cow.

2. Mission Beach: The route follows the beautiful Mission Blvd. along the coastline. It starts at

Guava Beach Bar and Grill, next stop is Coaster Saloon, and Beach Comb.

The Bar Bike may also be booked for private events such as bachelorette/bachelor parties or birthdays, as

well as scenic tours of San Diego.

Customer Benefits

• Unique and memorable experience that few have experienced today.

• Social bonding with friends and colleagues

• Get a little exercise while having fun! Warranties & Guarantees

At this time, the city of San Diego requires a $2 million dollar liability insurance policy for public

transport carriers.

Every rider must fill out and sign a release waiver (see appendix 2)

Patent & Trademark Protection

The Bar Bike logo, name, and vehicle design will be trademarked using the services of Seton & Associates

Law Firm in Beverly Hills, CA, for a cost of $5,000.

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Production Process The Bar Bike will be built and manufactured to specification by Beer Wheel Drive (http://

beerwheeldrive.com), a subdivision of Caztek Egineering.

Please see appendix 3 for more information.

Future Service Offerings

In the future, Bar Bike intends to add scenic route day-tours during the week, as well as

ultimately expand into additional markets in Santa Barbara, Long Beach, and Berkeley.

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6. MARKETING STRATEGY Target Market

The market segmentation is divided into the leading target markets. The division reflects the

differences in marketing strategy that will be used to target each different market:

• Middle class, “white collar” office workers. These are people seeking to have a drink or some

quick food during lunchtime and sometimes want to show out-of-towners some of the local

highlights. The growth of this market segment as demonstrated in the Market Analysis table is

based on the estimated growth of business establishments in the Gaslamp Quarter area.

• Late nighters and weekend partiers (college students). These are the folks that drop by and

stay for many hours socializing and drinking. Since San Diego has a lot of college students,

our main focus is on these students. Growth of this segment is based on the estimated

population growth of San Diego itself.

• Brew Connoisseurs. These customers are a relatively new type to the American scene.

Although there have been beer connoisseur all over since beer was invented, all this

has inspired new connoisseur in brewing that has revolutionized the industry. With so

many new types and brands of beer available, the customer that wants to try new types

is being wooed by all industry participants. These are perfect for the Pedal Pub tours,

people can try all the different brews at each stop.

• Tourists. These are another important target market since there is always a steady flow

of tourism in the Gaslamp Quarter. The profile of the Pedal Pub customer consists of the following geographic, demographic,

psychographic, and behavior factors:

Geographic’s

• Our immediate geographic market is the San Diego area, with a population of 3,211,252.

This also makes up the major population surrounding San Diego (U.S. Department of

Commerce- Bureau of Economic Analysis) as part of our overall target area.

Demographics

Our general target market is male and female age 21-44, but we have segmented our market

into two smaller and more identifiable groups:

• College students

• The avid rider, male and female, age 21-44 with an average income of $45,000 or higher

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Psychographics

• Health and fitness is a priority

• Enjoys watching sporting events

• Enjoys going to bars

• Enjoys recreational activities

• Enjoys being outdoors and staying physically active

• He or she likes scenic tours Behaviors

• Take pride in how they look and feel

• Regularly goes to bars for fun

• Enjoy being outside and intermingling with people

• People who love attracting attention to themselves

• Likes to try new things

• Goes out to bars and pubs for recreational activities

Market Size & Trends

In order to figure out the market size and the trends that are associated with the Pedal Pub we have

to look at 2 different industries. First, the bar scene, second, the bicycle scene. Based on the

research:

1. IBISWorld expects revenue for the Bars and Nightclubs industry to grow at an annualized rate

of 0.02% over the five years to 2015, with an increase of 2.2% to $19.8 billion in 2013 alone.

2. The size of the industry has remained remarkably stable since 2003, with sales between

$5.8 billion and $6.1 billion each year (the exception being the recession year 2009).

For comparison purposes, the industry’s size is projected at $5.3 billion in 2002, $5.4

billion in 2003, $5.8 billion in 2004, $6.1 billion in 2005 (an all-time high), $5.8 billion

in 2006, $6.0 billion in 2007, $6.0 billion in 2008, $5.6 billion in 2009, $6 billion in 2010,

$6 billion in 2011, and $6.1 billion in 2012 and $5.8 billion in 2013. (The source is the U.S.

Bicycle Market 2013 report)

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3. There is a demand for both industries, so by putting them together there is a wider target

market and it appeals to more people. The market is only going to get bigger with the growing

economy. Even in the recession, both industries were doing relatively well. Advertising & Promotion

Bar Bike’s primary means of marketing is going to be word-of-mouth and college campus

marketing.

Media Used & Costs

• Student campus reps - recruit San Diego students (San Diego State, USD, UCSD) to

advertise on campus and use bulletin boards, and word-of-mouth. Pay with 5%

commission and $10/hour wage.

• Groupon, Living Social, Yelp, Foursquare, Twitter, Facebook (hire social media intern once

the manager is busy all day. In the beginning, have the manager deal with it between phone

calls, which are estimated to be moderately infrequent in the beginning. The cost of these

services is in the discount promotion very little - between 5% and 10% of Bar Bike’s gross

sales attained through them.

• Press releases to local media and blogs (see appendix 4 for example Beer Wheel Drive

press coverage) Frequency of Use

The Pedal Pub will be used more often in the warmer summer months, as well as Oktoberfest but

will be active all year long as well. Since the Gaslamp Quarter is a tourist destination we will be able

to operate year round.

Plans for generating publicity

We will start with passing out flyers at colleges in the surrounding San Diego area.

Since we will not have the capital to do online advertising for a while, we will advertise in

local newspapers and radio stations.

Once we have raised the necessary capital we will then advertise online and on television.

Pricing Cost structure (seats 16 people)

Fixed: $18 per person or $200 to rent the whole bike

Variable: With the proper coupon get $50 off if booked 1 week in advance.

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Distribution strategy Channels of distribution used

• We work with the bars and Pubs in the surrounding areas and bring the tourists to them.

• We also take them on planned out tours where they can visit gift shops and see the

historical aspects of the Gaslamp Quarter.

Sales techniques and incentives

• The bars and pubs we work with offer special deals on drinks like buy one get one free.

• If rented out a week in advance you can get a $50 rebate.

• If you are a college student you get a 1% discount.

• Groupon, Yelp, and Foursquare Deals

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7. LOCATION & LAYOUT

Demographic Analysis of Location

The Bar Bike will be operating in San Diego, California, which, according to Census1 has a fast growing population (2.6% from April 1 – July 1 2012). Furthermore, the cities’ many colleges and universities provide a solid customer base of college students, which is one of our target customer groups. The student population, includes college students from the following universities,

• San Diego State University: 30,541 students in Fall 20142

• University of San Diego: 8, 317 students in Fall 20143

• University of California San Diego: 29,234 in Fall 20144

Note, that these are only the three biggest universities and exclude the eight community

colleges and eight smaller universities in the area so the student population is assumedly much

larger than these numbers above displays.

In Addition to college students, our business also targets tourists. According to San Diego’s

Chamber of Commerce, San Diego is listen the 14th best place to visit in the world. Furthermore,

the tourism in San Diego is a booming industry, “In March 2014 the number of total visitors

increased by 2.3% as compared to the previous year and total visitor spending increased by 9.9%

this rate the tourism industry can be expected to add to the existing

152,000+ employees in its workforce” 5. According to another source, San Diego has 32 million

visitors every year, which spends $8 billion annually6. These numbers certainly argues the fact

that a business, which targets college students and tourists in San Diego, has the potential to

be successful.

Routes: The Bar Bike will initially have two different routes, the one in Gaslamp quarter will start

at our warehouse at 1310 K Street, which is close enough for the passengers to pedal to the route.

• The Gaslamp Quarter - The route starts the Gaslamp Tavern at 5th avenue and E street,

continues down on 5th avenue and includes the following bars: Urban bar and Grill, Analog

bar, The Tipsy Cow.

The Gaslamp Quarter is an historic area of San Diego that was previously known as the Old

Town, it is a 16 blocks large area, packed with bars, restaurants, and nightclubs that attracts

both tourists and locals. The Gaslamp Quarter is known as the heart of the San Diego nightlife

and is the perfect spot for bar hopping. Approximately 10 million tourists visit the Gaslamp

Quarter every year ([7]) It’s location near the San Diego Conventional Center, makes it

possible to coordinates routes with different events held at the convention center.

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• Mission Beach - The route follows the beautiful Mission Blvd. along the coastline. It

starts at Guava Beach Bar and Grill, next stop is Coaster Saloon, and Beach Comb.

Mission beach is one of the most popular beaches in San Diego, it contains a 3 mile long

beachfront boardwalk, and includes the popular Belmont Park that hosts an amusement part and

a entertainment center. The boardwalk has a vide variety of restaurants, shops and bars.

The Pedal pub may also be booked for private events such as bachelorette/bachelor parties or birthdays,

where the route could be changed.

Lease & Rental Rates

We will lease a warehouse where the Bar Bike will be stored when it is not being used. This is also

where the Bar Bike will be maintained by our repairman. We will lease a warehouse/ office space at

1310 K street, San Diego, CA 92101. This is adjacent to Gaslamp Quarter, making it the ideal

location for our bar hopping routes. These routes will start at the warehouse, this way there will be no

additional charge for transporting the BarBike to the Gaslamp quarter. The lease is approximately

$2,500/month The warehouse includes a roll up door, which will make the transportation of the

BarBike easier, as well as a small office and restroom.

Labor Needs and Supply

We will need one driver that will be steer, brake and ensure that all traffic rules are followed as

well as that the BarBike is operated safely.

There are no special competencies needed from the driver in terms of education and previous

experience. The main characteristics of the driver we are looking for is to be highly entertaining,

customer friendly, trustworthy and in good enough shape to be able to be pedaling for a couple of

hours. A driver with previous experience of similar work, such as a pedicab would also be

beneficial. There are multiple web sites were pedicab drivers are offering their services.

Furthermore, the driver needs to meet the following requirements:

1. Possess a valid State of California driver license or a valid driver license from their home

state. Those with out-of-state driver licenses must not have a currently cancelled, revoked or

suspended State of California driver license.

2. Be a minimum of eighteen (18) years old.

3. Shall not have had more than three (3) moving violations in the last three (3) years and no

more than two (2) moving violations in the last year.

4. Shall not have been convicted of careless or reckless driving or any violation of driving

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while impaired within the past three years.9

Furthermore, a repairman, a driver that will drive the Bar Bike to between the different routes and the

warehouse, and a full time manager that will be responsible for booking, customer service etc. will also

be hired.

Wage Rates

The minimum wage rate in California is $9.00 per hour.10

One of the companies hiring pedal cab drivers in San Diego pays their drivers between $10-50 per hour.11

We will be paying a competitive price to our driver of $14/hour, not including tips he will

receive from riders. Please see appendix 5 for more detailed wage rates paid to employees.

Layout

Please refer to the layout of the Bar Bike in appendix 3.

Size requirements

We will order an already assembled Bar Bike from Caztek Engineering12. The size of the pedal pub

is 19’10” in Length, 6’3” in width and 9’1” in height and weighs 1,800lbs13. The warehouse

therefore has to have a garage door with a clearings height of 12’ feet, assuming that the Bar Bike

will be up on a two feet high trailer.

Americans with Disabilities Act compliance

Our pedal pub will contain a bench at the back, which is suitable for passengers with

disabilities, who are not able to pedal themselves but still would like to enjoy our tours.

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Ergonomic issues

Our company is highly committed to our customers’ satisfaction and our pedal pub is therefore

equipped with ergonomic seats, since uncomfortable seats could pose an issue for

our passengers. Furthermore, there is overhead compartment and purse-hooks for bag storage

so one does not need to hold on to their belongings while pedaling. Lastly, the bench offers a place

to relax if one were to be tired of pedaling.

1 Census http://quickfacts.census.gov/qfd/states/06/06073.html 2 http://www.forbes.com/colleges/san-diego-state-university/ 3 http://www.forbes.com/colleges/university-of-san-diego/ 4 http://studentresearch.ucsd.edu/sriweb/Profile2014.pdf 5 http://www.sdchamber.org/assets/files/Website%20Resource%20Docs/San%20Diego%20

RCC%20Report_FINALv2.pdf 6 http://www.sandiego.org/industry-research.aspx 7 http://www.theheadquarters.com/uploads/media_items/demographicinfonearbyattractions.

original.pdf 8 http://www.cityfeet.com/cont/ForLease/CF1715800/4901-Morena-Blvd-San-Diego-

CA-92117 9 http://thepartybike.wordpress.com/ 10 http://www.dol.gov/whd/minwage/america.htm#California 11 http://www.pedicabforum.com/forums/jobs/3495-pedicab-drivers-wanted-san-ysidro-san-

diego.html 12 http://www.beerwheeldrive.com/index.php 13 http://www.beerwheeldrive.com/images/specs.pdf 14 http://www.beerwheeldrive.com/images/specs.pdf

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8. COMPETITOR ANALYSIS Existing Competitors

Our existing competitors are bicycle rentals, companies that offer unique tour experiences and pub-crawls,

limousine services for college students and tourists.

Scale:

1: Major weakness

2: Minor Weakness

3: Minor strength

4: Major strength

Ray’s Rentals is a company that offers bicycle rentals at Mission beach and other locations in San

Diego. Ray’s Rentals’ strength is the fact that they are flexible as they do not only have physical

stores at three San Diego locations, but they also offer delivery. Another strength is their low prices,

renting bikes for as low as ten dollars per day. One of their weaknesses is that they do not offer a

unique customer experience; bicycles and Segway’s can be rented in all major cities all over the

world. Pedal pubs however, are still a unique and new experience that not many people have had the

chance to experience. This will give our company a competitive advantage. Furthermore, our

company offer’s our customers a flexible experience, as it can

be used for different routes such as barhopping, wine tasting, or customized for birthdays,

bachelor/bachelorette parties etc. Ray’s Rentals cannot offer this kind of specialized service to their

customers, which is one of their weaknesses when compared to our company.

San Diego Pub Crawl is a company that offers different kind of pub-crawls, they host weekly pub-

crawls offering pick up and drop off, discounts on drinks and free admission. Furthermore, they

have customized events birthday parties, hot balloon rides, packages with hotel nights and different

tours.

One of their strengths is that they are flexible as they can offer a wide range of different

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type of pub-crawls and are able to customize birthday parties and other events. Furthermore they

are also able to offer low prices with their most basic weekly pub-crawl. One of their weaknesses

are that they offer pick up and drop of by bus or limousine, this makes their business less

environmental friendly if compared to the pedal pub which does not require gas at all. Another

weakness is that their business is mainly focused around alcohol consumption and nightlife. The

Bar Bike, on the other hand, is more flexible as it can also

be used as a tool of barhopping, but also during the day for a variety of activities such as pedal

along the beach or other scenic routes and allows a choice of alcohol-free beverages consumption. San Diego Limo Buses

San Diego Limo Buses is a company that provides limousines, party buses and similar vehicles

for college students, tourists and locals who wants to go barhopping or just cruise around San

Diego in a cool vehicle. They offer special events such as wine tasting, bachelorette parties,

as well as local tours. Their major strength is that they have a vide variety of vehicles which

can be used in many different settings, such as shopping tours, bachelorette parties as well as

basic transportation to air port or cruise ships. Their major weakness is that their business is

not as unique as our business, compared to a Bar Bike a party bus appears as rather plain and

can be provided by a vide variety of other companies. The Bar Bike’s unique appearance draws

more attention than a limousine and is more intimate than a large party bus. Potential competitors (companies that might enter the market)

Our potential competitors are companies that are currently operating pedal pubs in other cities and

are looking to expand. One example of such company is The Beach Barcycle, which is a pedal pub

currently operating in Santa Monica and Venice Beach, California.

If these competitors were to enter the market, it would certainly affect Bar Bike, as they would

compete for the same customers. However, they use a “simpler” version of the pedal pub, whereas

the type of pedal bar we use is more advanced and has features such as break lights, front and back

bumpers and ergonomic seats making our pedal bar the more safe and comfortable choice for the

customers.

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9. MANAGEMENT TEAM Our company will hire only the best people qualified to run the Bar Bike. There will be four owners

of this limited liability company; Kavi Bajaj, Kevin Fontana, Steven Chow and David Clark. Each will

contribute $5,000 starting capital, and will all have 25% equity in the business.

• Kavi Bajaj will be responsible for the financing and the accounting for the company

• David Clark will be in charge of writing out business strategies and planning

• Steven Chow will take charge of hiring and training people

• Kevin Fontana will be in charge for marketing and sales

We will also hire four more personnel with the following pay and requirements:

Employees Warehouse Manager

The Warehouse manager will preferably have a bachelors degree, and will be getting paid

$17 an hour. He/She will be in charge of resolving issues with the customers, and therefore

should have great customer service skills and have great attention to detail. They should have

prior cash handling experience of at least 1 year and must be able to work face-to-face with

customers. Also, they must know how to work a register, know how to do an end of day close

out, and must be able to complete refunds and schedule route. The manager will be required

to stand for long periods of time and will be in charge for having customers sign the liability

waiver forms.

Bar Bike Driver/Tour Guide

The driver will preferably be a college student and have a high school diploma. They will get

paid $12/hour + tips. (This is according to the median wage that tour guides typically make.)

http://www.bls.gov/oes/current/oes397011.htm The tour guide should be fully aware of his/

her surroundings and should be very knowledgeable about the history of the Gaslamp Quarter.

The guide/driver should be able to answer questions that the customers may have as well

as be able to recommend the best bars and restaurants. Some other requirements include

being able to manage large crowds of people, enjoy working with people, have a good sense

of humor, ensures the safety of the customers, have exceptional knowledge in the alcoholic

industry, be able to work under pressure and able to work without being micromanaged. The

driver must have a clean driving record and should be able to work in a noisy setting. Bilingual

is a plus.

Truck Driver

The driver that will drive the truck that carries the Bar Bike to/form location will preferably

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have a high school diploma. They will get paid $14/hour.(Other transit and ground transportation)

http://www.bls.gov/oes/current/oes533021.htm. This person is required to have at least two years of

driving experience along with at least one reference. They must also know the Gaslamp District area.

Repairman

The repairman will only need to work part-time and will get compensated $15/hour. They Must

know how to diagnose mechanical problems, should know how the bar bike operates, how to

estimate repair costs, and be able to demonstrate proficient trade skills.

College Promoter

The college promoter should be a current San Diego University student who demonstrates

excellent people skills, and is charismatic. They will be paid $10/hour + commissions which are

negotiable.

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10. PLAN OF OPERATION Bar Bike LLC will be a Limited Liability Company for the ease of formation. An LLC serves beneficial

for this business plan as it offers owners a limited liability without imposing any ceiling on individual

revenues. This form of management will cause any restriction in member’s involvement in managing the

company and will also allow the company to avoid double taxation imposed by corporations.

Below is the organizational chart of the Bar Bike LLC owners and employees:

Bar Bike LLC

David Clark Kevin Fontana Kavi Bajaj Steven Chow Employees

Manager Bar Bike Driver Truck Driver Repairman College Promoter

Principle decision-making authority rests with David Clark, who is our strategic partner. However,

whenever possible, we vote by consensus for all business-related matters (3/4 must consent).

Owner Compensation

At this time, the 4 owners of the business will not be receiving a salary nor benefits packages, but

regular distributions from the profits of the business (see Financial Forecasts section).

Distribution Schedule

$ 500/month draw to each member in 2016 (recoup original $5,000 investment)

$1,000/month draw to each member in 2017

$1,500/month draw to each member in 2018

$2,000/month draw to each member in 2019

$3,500/month draw to each member in 2020

Market Exit

Though Bar Bike LLC does not anticipate being forced to exit the market, it does sometimes occur

due to unforeseen circumstances. In the case of bankruptcy, Bar Bike carries a substantial portion of

its overall value in the form of capital assets - which can be liquidated and the funds used to pay off

outstanding debts. Bar Bike LLC does not anticipate problems repaying the SBA loan due to it being

cash-flow positive from the very beginning. Please see the following Financial Forecasts section.

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11. FINANCIAL FORECASTS

Sales Forecast 2015-2020

Bar Bike LLC will be launching for Oktoberfest 2015 - maximizing the growth potential and visibility

of the company. Based on a conservative estimate of booking 1 2-hour tour per week- day (Mon-Thu),

and 2 2-hour tours on each weekend-day (Fri-Su), we project the following growth rate for Bar Bike

sales:

Annual Gross Sales Annual Sales Growth

2015 (Partial Year) $ 16,466.67 N/A 2016 $ 199,766.67 N/A

2017 $ 281,233.33 40.78%

2018 $ 353,600.00 25.73%

2018 $ 423,800.00 19.85%

2019 $ 475,800.00 12.27%

Forecasted Annual Sales 2015-2020

$500,000

$450,000

$400,000

$350,000

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$- 2015 (Partial

2016

2017

2018

2019

2020

Year)

For a detailed month-by-month sales forecast of the first 2 years, please see appendix 6.

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Quarterly Growth 2016-2017

Due to the seasonal nature of tourist demand and college student availability, Bar Bike

experiences 2 major season of growth: June - October (Q4 Summer Tourism ending with Oktober

Fest) and March (Q2 Spring Break). We can see these seasonal fluctuations below:

Quarterly

Gross Sales

Quarterly

Growth Rate

2016 Q1 $ 35,533.33 N/A

Q2 $ 47,233.33 32.93%

Q3 $ 52,866.67 11.93%

Q4 $ 64,133.33 21.31%

2017

Q1 $ 58,500.00 -8.78%

Q2 $ 64,133.33 9.63%

Q3 $ 69,766.67 8.78%

Q4 $ 88,833.33 27.33%

Break-Even Analysis Bar Bike LLC will be generating profits within the first 4 months of operations, once revenues

exceed $130,000 annually ($2,500 / week).

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Income Statement

Revenues

2015* 2016 2017 2018 2019 2020

Weekend Sales 10,400 111,800 150,800 208,000 260,000 312,000

Weekday Sales 6,067 87,967 130,433 145,600 163,800 163,800

Gross Sales 16,467 199,767 281,233 353,600 423,800 475,800

Less: Sales Discounts (1,647) (13,195) (18,373) (22,100) (26,488) (29,738)

Net Sales 14,820 186,572 262,860 331,500 397,313 446,063

Total Revenues

14,820

186,572

262,860

331,500

397,313

446,063

Expenses

Operating Expenses

Salaries & Wages

6,311

82,990

97,028

105,969

115,009

122,829

Rent 2,500 30,900 31,827 32,782 33,765 34,778

Maintenance & Repairs 651 7,815 15,179 15,179 15,179 15,179

Liability Insurance 833 10,000 10,000 10,000 10,000 10,000

Depreciation 20,913 18,267 31,237 22,178 15,746 11,180

Marketing & Advertising 593 7,463 10,514 13,260 15,893 17,843

Legal & Professional Fees 5,000 1,000 1,000 1,000 1,000 1,000

Utilities 109 1,300 1,300 1,300 1,300 1,300

Transportation 50 900 1,035 1,191 1,369 1,575

Total Operating Expenses 36,960 160,635 199,121 202,859 209,262 215,684

Other Expenses

Interest Expense

875

9,046

34,200

34,200

34,200

34,200

Merchant Account Fees 453 5,494 7,734 9,724 11,655 13,085

Total Other Expenses 1,328 14,540 41,934 43,924 45,855 47,285

Total Expenses

38,288

175,175

241,055

246,783

255,116

262,969

Net Income

(23,468)

11,397

21,805

84,717

142,196

183,094

* Partial Year. Fiscal Year is from Nov. 1 - Oct. 31

The 2 most significant expenses for Bar Bike are Salaries & Wages and Rent. As we can see from the

prof-forma income statement above, Bar Bike begins generating a profit within it’s first year of

operation (2015 is a 1-month partial year). Since the majority of the costs are fixed, or very inelastic

such as Wages - revenue increase is not accompanied with a substantial rise in variable costs. By year

2018, the company is already generating a substantial return on the original owners’ investment of

$20,000. By the 5th year, the company will be producing almost enough profit to pay for the entire

200k SBA loan requested.

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Cash Flow Statement

It is a priority of Bar Bike LLC to remain highly capable of repaying its long-term debts. As a result,

our management has decided to operate with a significant cash reserve that allows for the company to

respond to outside threats (competitors) and lackluster demand, should it arise.

As we can see on the pro-forma cash flow statement - Bar Bike LLC produces a net cash inflow in

the 3rd year of operation. Based on regular performance reviews, the company reserves the right to

reduce the owner distributions schedule in order to make sure the company has sufficient cash.

Operating Activities

Net Income

2015*

(23,468)

2016

11,397

2017

21,805

2018

84,717

2019

142,196

2020

183,094

Add: Depreciation 20,913 18,267 31,237 22,178 15,746 11,180

Total Operating Activities (2,554) 29,664 53,042 106,895 157,943 194,274

Investing Activities

Purchase of 1x Bar Bike (83,885) (63,885) - - - -

Total Investing Activities (83,885) (63,885) - - - -

Financing Activities

200k SBA Loan

200,000

-

-

-

-

-

SBA Loan Repayment (1,975) (24,389) (25,701) (27,083) (28,540) (30,074)

Owner Contributions 20,000 - - - - -

Owner Draws - (24,000) (48,000) (72,000) (96,000) (168,000)

Total Financing Activities 218,025 (48,389) (73,701) (99,083) (124,540) (198,074)

Total Cash Inflows / Outflows 131,586 (82,610) (20,659) 7,812 33,403 (3,800)

Beginning Cash 0 131,586 48,976 28,316 36,129 69,532

Ending Cash 131,586 48,976 28,316 36,129 69,532 65,732

$500/month draw to each member in 2016 (recoup original $5,000 investment)

$1,000/month draw to each member in 2017

$1,500/month draw to each member in 2018

$2,000/month draw to each member in 2019

$3,500/month draw to each member in 2020

* Partial Year

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Balance Sheet

Assets

2015* 2016 2017 2018 2019 2020

Cash 131,586 48,976 28,316 36,129 69,532 65,732

Plant, Property & Equipment

83,885

147,770

147,770

147,770

147,770

147,770

Less: Accumulated Depreciation (20,913) (39,180) (70,417) (92,595) (108,342) (119,522)

Net Plant Property & Equipment 62,972 108,590 77,353 55,175 39,428 28,248

Total Assets

194,557

157,565

105,669

91,304

108,960

93,980

Liabilities & Equity

Liabilities

Notes Payable (200k SBA Loan)

198,025

173,636

147,935

120,852

92,312

62,238

Total Liabilities 198,025 173,636 147,935 120,852 92,312 62,238

Equity

Member 1: David Clark

(867)

(4,018)

(10,567)

(7,387)

4,162

7,935

Member 2: Kevin Fontana (867) (4,018) (10,567) (7,387) 4,162 7,935

Member 3: Kavi Bajaj (867) (4,018) (10,566) (7,387) 4,162 7,936

Member 4: Steven Chow (867) (4,018) (10,566) (7,387) 4,162 7,936

Total Equity (3,468) (16,071) (42,266) (29,548) 16,648 31,742

Total Liabilities & Equity

194,557

157,565

105,669

91,304

108,960

93,980

* Partial Year.

Fiscal Year is from Nov. 1 - Oct. 31

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Selected Ratios

Because Bar Bike LLC operates with free cash flow from the very first months, the company does

not carry short-term debt, as it’s only external financing is the SBA 7(a) loan of 200k. As a result,

several common liquidity-banking ratios do not exist for the company, such as the Current Ratio

and Quick Ratio.

The company also does not have Asset Management or Turnover ratios, as all payments are

received immediately via credit card, and Bar Bike LLC does not allow deferred payments.

Below are several of Bar Bike LLC’s pro-forma financial ratios:

Long-Term Solvency Ratios 2015 2016 2017 2018 2019 2020

Total Debt Ratio 1.02 1.45 1.40 1.32 0.85 0.66

Debt-to-Equity Ratio -57.10 -10.80 -3.50 -4.09 5.54 1.96

Profitability Ratios

Return on Assets

-0.12

0.07

0.21

0.93

1.31

1.95

Net Profit Margin -1.58 0.06 0.08 0.26 0.36 0.41

We can see from the solvency ratios that the company will be highly leveraged in the first

few years of operations, however in 2017 we see the beginning of a substantial increase in

profitability. In fact, by 2020, the company has a .41 net profit margin, which is only expected to

increase as revenues increase.

Loan Proposal

Due to the strong profitability and free cash flow the company expects, especially in the 2nd and 3rd

years, we believe that a $200k SBA 7(a) loan at 5.25% for 7-years is a very low risk proposal for a

lender. The company is profitable within the first year, and generating free cash inflows by the 3rd

year. In the 5th years of operations, the company can almost entirely repay the debt with one year’s

worth of profits.

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12. APPENDICES

Appendix 1 - Current U.S. Competitor Market

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21

Appendix 2 - Sample Liability Waiver

Name (print)

Date of birth

RIDER RELEASE OF LIABILITY:

I acknowledge that operating the Traveling Tap is a potentially dangerous activity. I assume the

risk that I may be injured and/or injure someone else while using the Traveling Tap. I assume all

risks associated with my use of the Traveling Tap and will not bring any action against Traveling

Tap, its successors and/or assigns, for personal injury, property loss, or property damage,

including any action for negligence, breach of warranty, products liability or strict liability. The

Traveling Tap is of proprietary manufacture, and I agree not to build or cause to be built any

vehicle of the same or similar construction.

I further agree to release, indemnify and hold harmless the owners and manufacturers of the

Traveling Tap from any liability against any and all claims, including damages or demands of

third parties as a result of my use of the Traveling Tap.

I decline the offer of the free use of a helmet while riding the Traveling Tap. (Initials)

1. All riders aboard on tours that serve alcohol must be 21 years of age or older.

2. Renters may bring beer or wine on board as allowed by law. No hard liquor.

3. All alcoholic beverages and people holding them must remain on the Traveling Tap at all

times.

4. Glass is strictly prohibited. No glass is allowed on the Traveling Tap.

5. The Traveling Tap driver is responsible for the Traveling Tap, and his/her decisions are final.

6. Inappropriate behavior before, during and after tours will result in the offending

passenger(s) being asked to disembark the Traveling Tap. These include but are not limited to:

t &YUSFNF JOUPYJDBUJPO t (JWJOH BMDPIPM UP OPO-QBTTFOHFST t -JUUFSJOH

t 1VCMJD VSJOBUJPO t -PJUFSJOH NPSF UIBO 5 NJOVUFT BGUFS UPVS t &YDFTTJWF OPJTF

7. Any open alcoholic beverages must be emptied immediately when the tour ends.

8. Severe transgressions of the above will result in the Pilot ending the tour immediately, and

causing a Late/Damage Fee of $200, to be charged to the Renter’s credit card.

9. All laws and rules regarding alcohol apply to all passengers before, during and after Traveling

Tap tours.

10. Any person arriving in an intoxicated condition shall not be allowed on the Traveling Tap.

I have read, understood, and I agree to the above provisions.

Rider Signature Date

ALL RIDERS MUST READ AND SIGN IN INK!

BEER WHEEL DRIVE Business Guide July 2014

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4

Appendix 3 - Construction Sheet

BEER WHEEL DRIVE Business Guide July 2014

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Appendix 4 - Press (1 of 2)

BUZZ

Make Magazine has a readership of over 250,000 and 5.2 million monthly on-line page views.

BEER WD was featured in Volume 28.

BEER WHEEL DRIVE Business Guide July 2014 Page 33

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Appendix 4 - Press (2 of 2)

Wired.com is an award-winning technology website.

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Annual Costs

Detail 2015-2020

Costs 2015* 2016 2017 2018 2019 2020 NOTES

Salaries & Wages

Manager (9 hours / day @ $17/hour) 4,667 56,000 59,360 62,922 66,697 70,699 Assume 6% raise every year

Manager's Assistant (9 hrs / weekend-day @ $17/hour) - - 2,652 2,811 2,980 3,159 Assistant Starts in 2017, 6% raise annually

Vacation & Medical Benefits (14 days) - 1,904 3,808 3,808 3,808 3,808 Benefits added for assistant in 2017

Bar Bike Driver ($14/hour * total hours from sales forecast) 1,218 14,866 20,988 26,208 31,304 34,944

Truck Driver ($14/hour * 1 hour/day for year 1, 2 hours/day for y2) 426 10,220 10,220 10,220 10,220 10,220

Total Salaries & Wages 6,311 82,990 97,028 105,969 115,009 122,829

Storage Rent 2,500 30,900 31,827 32,782 33,765 34,778 assuming 3% rental increase per year

Maintenance and Repairs

Daily Cleaning of each vehicle - takes 1 hour 456 5,475 10,950 10,950 10,950 10,950 Second vehicle added in 2017

Allowance 3% of total vehicles (Bar Bikes & Truck) annually 195 2,340 4,229 4,229 4,229 4,229

Total Maintenance and Repairs 651 7,815 15,179 15,179 15,179 15,179

Insurance Policy

$2,000,000 liability insurance policy (via manufacturer estimate) 833 10,000 10,000 10,000 10,000 10,000

Depreciation

Bar Bike #1 913 18,267 12,970 9,208 6,538 4,642 200% DB MACRS Method over 7 years (29% annually)

Bar Bike #2 - - 18,267 12,970 9,208 6,538 200% DB MACRS Method over 7 years (29% annually)

Toyota Pickup Truck & Trailer (Section 179 of up to $25,000) 20,000 - - - - - IRS PUB 946 http://www.irs.gov/pub/irs-pdf/p946.pdf

Total Depreciation 20,913 18,267 31,237 22,178 15,746 11,180

Marketing / Advertising (4% of net sales) +7000 7,000 first year startup cost

Legal Fees 5,000 1,000 1,000 1,000 1,000 1,000 5,000 startup cost, assumed 1,000 annually

Utilities

Phone 17 200 200 200 200 200

Internet 75 900 900 900 900 900

Website Hosting & Registration 17 200 200 200 200 200

Total Utilities 109 1,300 1,300 1,300 1,300 1,300

Transportation Costs

Fuel (12mpg, 4 miles a day, 8 miles a day 2nd year) 50 900 1,035 1,191 1,369 1,575 Costs rising about 15% annuallly over last 10 years

Cost per mile = Cost per gallon / 12 * # of miles per day * 365 Per GasBuddy LLC: http://bit.ly/18ApWFZ

Interest Expense ($200,000, 5.25% over 7 years, monthly compound) 2,850 34,200 34,200 34,200 34,200 34,200

Credit Card Merchant Expense (2.75% of gross sales annually)

* Partial Year - Also Includes Expensed Startup Costs

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# of 2-Hour Total Hours Week-day # of 2-Hour Total Hours Weekend-day Promos &

Tours / Day Per Week Sales (M-Thu) Tours / Day Per Week Sales (F-Su) Monthly Gross Discounts Monthly Net

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Sales Forecast - Detailed Monthly

2015 - 2017

Week-Day ($175 / Hour) Weekend-Day ($200 / Hour)

2015

October

1

8 $

6,066.67

2

12 $

10,400.00

$

16,466.67

10%

$

14,820.00

2015 Summary $ 6,066.67 $ 10,400.00 $ 16,466.67 $ 14,820.00

2016

November 0.5 4 $ 3,033.33 1.5 9 $ 7,800.00 $ 10,833.33 5% $ 10,291.67

December 0.5 4 $ 3,033.33 1.5 9 $ 7,800.00 $ 10,833.33 5% $ 10,291.67

January 1 8 $ 6,066.67 1.5 9 $ 7,800.00 $ 13,866.67 5% $ 13,173.33

February 1 8 $ 6,066.67 1.5 9 $ 7,800.00 $ 13,866.67 5% $ 13,173.33

March 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

April 1 8 $ 6,066.67 1.5 9 $ 7,800.00 $ 13,866.67 5% $ 13,173.33

May 1 8 $ 6,066.67 1.5 9 $ 7,800.00 $ 13,866.67 5% $ 13,173.33

June 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

July 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 10% $ 17,550.00

August 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 10% $ 17,550.00

September 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

October 2 16 $ 12,133.33 2.5 15 $ 13,000.00 $ 25,133.33 10% $ 22,620.00

2016 Summary $ 87,966.67 $ 111,800.00 $ 199,766.67 $ 186,571.67

2017

November 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

December 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

January 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

February 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

March 2 16 $ 12,133.33 2.5 15 $ 13,000.00 $ 25,133.33 5% $ 23,876.67

April 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

May 1.5 12 $ 9,100.00 2 12 $ 10,400.00 $ 19,500.00 5% $ 18,525.00

June 2 16 $ 12,133.33 2.5 15 $ 13,000.00 $ 25,133.33 5% $ 23,876.67

July 2 16 $ 12,133.33 2.5 15 $ 13,000.00 $ 25,133.33 10% $ 22,620.00

August 2 16 $ 12,133.33 3 18 $ 15,600.00 $ 27,733.33 10% $ 24,960.00

September 2 16 $ 12,133.33 3 18 $ 15,600.00 $ 27,733.33 5% $ 26,346.67

October 2.5 20 $ 15,166.67 3.5 21 $ 18,200.00 $ 33,366.67 10% $ 30,030.00

2017 Summary $ 130,433.33 $ 150,800.00 $ 281,233.33 $ 262,860.00