BERNIES

BERNIE’S: 

BERNIE’S BT101 - Business Plan presentation Professor Skown Al Lockhart Mark Rasulo Terrence Johnson Sundeep Basi Martin Angus

OUTLINE: 

OUTLINE SURVEY SERVICES AND ALLIANCES MARKETING PLAN MANAGEMENT FINANCIALS RISK STRATEGY

SURVEY: 

SURVEY

SERVICES AND ALLIANCES: 

SERVICES AND ALLIANCES Initial Services: Liquor Delivery services 30 stores in Hoboken Alliances We are targeting 5, 10, 15, 20, 25 stores (in each of the 5 yrs) Avg. Revenue of over $1 million We are targeting 20%, 25%, 28%, 33%, 40% (of total sales each year)

SERVICES AND ALLIANCES: 

SERVICES AND ALLIANCES Bartending services $40 per hour fee At startup 2 members will take over bartending duties DJ services $40 per hour fee At startup 2 members will take over the DJ services

SERVICES AND ALLIANCES: 

SERVICES AND ALLIANCES Advertisement services Flyers $0.20 per flyer given out Internet based Years 1 – 3 - $20 per month Years 4, 5 - $25 per month Maximum number of companies allowed to advertise is limited to 3 per month

SERVICES AND ALLIANCES: 

SERVICES AND ALLIANCES Additional Future Services (Starting in Year 3): Liquor Store Take advantage of customer base already built up from delivery/bartending/DJ/advertisement services. Reach the following sales percentage targets out of average revenue (approx. $1 million) for a liquor store: 60% - Year 3 70% - Year 4 80% - Year 5

MARKETING PLAN: 

MARKETING PLAN Our business must service three key areas: We must have a large area in which we would be able to deliver alcohol. (Hoboken and Jersey City) We must have a very in-depth website that would thoroughly describe the alcoholic beverage as well as what foods it complimented. This would be a competitive advantage We must be able to have a very large selection to choose from. (In the future we hope to be able to implement a hotline in which customers can call to ask alcohol related questions, but for now we will need to hold off on this due to cost issues.)

MARKETING PLAN: 

MARKETING PLAN PHASE I Flyers Word of Mouth PHASE II Newspaper ads Word of Mouth PHASE III Franchising Local Radio and TV ads

FINANCIALS: 

FINANCIALS Startup Cost: $34,380 Positive Free Cash Flows by the end of year 1. Revenues of over $1.5 million by year 3. Each owner will contribute $12,500 and will consequently receive a 12.5% stake in the business. Total owner investment of $87,500 Total ownership is 87.5% Remaining 12.5% will be offered to potential investors. Gross Margin percentage will continue to rise rapidly from years 1 to 5.

BREAK EVEN ANALYSIS: 

BREAK EVEN ANALYSIS Company will see positive free cash flow by the end of year 1. The Company will break even in year 2.

REVENUES: 

REVENUES

RISK STRATEGY: 

RISK STRATEGY Internal Risk & Mitigations Potential for Human loss of life or injury on job Potential for major accidents, i.e. fire damage, car accident (year 3) Physical security breaches Competitive Risk Other bartenders and D.J. services New company tries to compete Other previous withstanding local liquor stores Partnership Risk Restaurant or liquor store goes out of business New Company starts delivering Partner tries to compete (year 3) Losing alliances in Hoboken once we open the store in Hoboken

QUESTIONS: 

QUESTIONS Are there any questions or comments???