I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is an upscale yet affordable hookah lounge located in [Location]. [Company Name] is focused on creating a fun and relaxed environment where residents can purchase affordable hookah and unwind from their busy lives. We offer over 30 flavors of hookah, along with a menu of food and drinks. We also have special events such as comedy nights and karaoke. With so much to offer, we aim to be the #1 location in [Location] for hookah, drinks, and entertainment.
Products Served
[Company Name] serves an extensive menu of over 30 hookah flavors. Some of these flavors include;
- Apple
- Orange
- Blueberry
- Cherry
- Bubblegum
- Blackberry
- Watermelon
We also offer a menu of food and drink items for customers to enjoy.
Customer Focus
[Company Name] will primarily serve the residents who live within a 20-mile radius of our hookah lounge and workers within a quarter-mile radius. The demographics of these customers are as follows:
- 75,923 residents
- 7,100 workers
- Average income of $77,200
- 28% married
- 45% in Mgt./Professional occupations
- Median age: 29 years
Management Team
[Company Name] is led by [Founder’s Name] who has worked in the industry for [X] years. Throughout his career, [Founder’s Name] has managed hookah lounges, nightclubs, and similar establishments throughout the [Region], one of which is [Hookah Lounge], the most visited hookah lounge in [Location]. He has also worked for the [Bar/Club Name] where he managed a crew of 25 people. He also graduated with an MBA from [University] in [Year].
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are very few hookah lounges in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume traffic area and will thus be highly convenient to a significant number of passersby each day.
- The management team has a track record of success in the hookah business.
- The hookah business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is seeking a total funding of $560,000 to launch its hookah lounge. The capital will be used for funding capital expenditures, building and design, bar equipment and kitchen appliances and utensils, labor costs, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Design/build: $300,000
- Equipment for bar and kitchen: $150,000
- Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
