“sand castle” the “sand castle” is a one stop beach shop that offers a range of food and...
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“Sand Castle”The “Sand Castle” is a one stop beach shop that offers a range of food and
convenience products to meet your camping and holiday needs.
Leslie Beach, Fishing Lake, Saskatchewan
Erika Gudnason
Leslie Beach, Fishing Lake
Candy & beverages
Basic household items
Fast food
Layout 1,000 sq. feet
2 tables inside, 2 on patio
Majority of sales will be takeout
Owner/ Manag
er
Assistant
Manager
General Staff
Human Capital
• 8-17 yearsChildren
with Parents
Target Segment
• 18- 25 yearsYoung Adults
Target Segment
Promotion
Your one stop beach shop! Open Sun or Shine- 11am-11pm
BudgetsCapital Budget
Leaseholder Improvements
12,500
Fixtures & Equipment
7,500
Total 20,000
Financial Budget
Bank Debt (50%)
20,000
Equity 20,000
Total 40,000
Sensitivity Analysis Average # of
customers/dayAverage 5 year profit
Net payback IRR
20 (28,143) (251,980) 3.5%
40 (6,363) (34,920) 9%
60 13,557 160,418 29%
80 32,580 349,753 39%
1 2 3 4 50
20
40
60
80
100
60
69
77
8589
54 55 53 52 53
Net Income BreakevenN
um
ber
of
Cu
stom
ers
p
er
day
NPV = 88,868
Average 5 year Net Income = 13,559
Break-even Analysis
Base Case Customers/d
ay 60 69 77 85 89Breakeven
Customers/day 54 55 53 52 53
Profitability
Year 1 2 3 4 5
Net Income
17,006
3,264 10,058 16,668 20,798
Year 1 Year 2 Year 3 Year 4 Year 5 0
5,000
10,000
15,000
20,000
25,000
Critical Risk Factors
Customers per day
Customer spending
Weather
Feasibility
29% Required ROI
Risk Mitigati
on = Feasible
Questions?
Your one stop beach shop! Open Sun or Shine- 11am-11pm