Start-up Funding | |
Start-up Expenses to Fund | $75,000 |
Start-up Assets to Fund | $400,000 |
Total Funding Required | $475,000 |
Assets | |
Non-cash Assets from Start-up | $330,000 |
Cash Requirements from Start-up | $70,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $70,000 |
Total Assets | $400,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $240,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $240,000 |
Capital | |
Planned Investment | |
Investor 1 | $130,000 |
Investor 2 | $105,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $235,000 |
Loss at Start-up (Start-up Expenses) | ($75,000) |
Total Capital | $160,000 |
Total Capital and Liabilities | $400,000 |
Total Funding | $475,000 |
Vino Maestro will be located in the newly developing Southside Towers residential hi-rise project in Boston. The site is one of the densest and wealthiest markets in the nation. When fully completed (in approximately seven years), it will be comprised of 16 residential towers, 17,000 residents and 19 acres of new harbor front manicured park land.
Our storefront will be prime retail space in the southeast corner of the 247 Mainline Avenue building, facing Excelsior Place, a main artery for vehicles and city buses coming and going from the complex. The store is centered within a cluster of eight phase-one residential towers, three fully completed and five more planned for consecutive construction as the residences are sold or rented.
The next building to be constructed at 249 Mainline Avenue is the flagship residential tower of the Southside development, with 440 condominiums currently offered for sales at prices ranging from $350k for a studio, to $3.5 million for a four bedroom home. So far, about 150 of these units have been sold already, prior to construction, which is expected to be completed next year.
XYZ Realty, the agent for the landlord, has advised us that minimum household annual incomes of $100k are required to be eligible for rental residences within Southside Towers. Minimum income requirements are calculated at 95 times monthly rents. One-bedroom apartment rentals average in the $3,000 per month range.
Vino Maestro will be located in one of two currently existing, fully-rented residential towers.
U.S. sales of wines priced at $10 to $14 a bottle have climbed 14 percent over the past 12 months, and sales at $25 a bottle (and up) have grown 18 percent. The trend is expected to continue (source: UBS Warburg research).
Indeed, wine consumption is on the increase in the United States, and customers are trading up. Better still for the wine industry, wine overtook coffee as the most popular meal time beverage in the U.S. in 1998 (Wine Business Monthly, 6/00).
Americans spent more than $20 billion on wine in 1999, up from $17.6 billion the previous year – an increase of more than 13 percent (WBM, 4/00).
Consumption trends and demographics point to robust wine sales growth for the next 15 years.
The bullish outlook was documented by well-known industry consultant Vic Motto of Motto, & Fisher and is based on that firm’s look at the forces driving increased fine wine consumption. His findings and conclusions were presented as part of a presentation entitled “Wine: What’s Powering This Rocket?”
Wine demand is likely to be boosted strongly by the aging of the U.S. population. Per capita consumption of wine increases with age, with early consumers drinking only 6.6 bottles per year. Consumption peaks at 16.4 bottles annually among adults 50-59 years old. “Baby boomers, more than any other previous generation, view wine as a simple, affordable luxury.” Given that the strongest growth in population over the next 10 years will be among these adults, who currently consume about 40 percent of all wines, it is easy to understand Motto’s bullish outlook. “The aging demographic transformation is going to continue for the next 15 years, and the traits of this population as they shift into their older years of life fit wine to a ‘T'” said Motto. Interestingly, their children, today’s echo-boomers, make up another population group that will experience rapid growth over the next decade.
The influence of demographics on wine consumption is so strong, according to MKF, that if the current growth rate in wine sales were adjusted to account for the population changes, then U.S. wine consumption potentially could increase 80 percent by 2015 due to demographics alone. Also, comprehensive industry research has shown that down turns in the economy and the stock market appear to have no impact on wine sales. In fact, wine sales rose slightly during previous stock market declines.
U.S. Per Capita Wine Consumption by Age:
21-29 | 6.6 bottles |
30-39 | 9.7 bottles |
40-49 | 13.6 bottles |
50-59 | 16.4 bottles |
60+ | 14.5 bottles |
(source: Motto, Kryler, & Fisher)
As one would expect, wine consumption in the Boston metropolitan area exceeds national averages, primarily due to higher per capita income levels and a more global population mix. Europeans, for example, drink 5 to 10 times more wine per capita than their American counterparts. Consequently, we conservatively base our business plan projections for the Southside Towers resident segment to buy an average of 15 bottles of wine per capita per year from our store.
The following chart and table show the market analysis for Vino Maestro.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Southside Towers | 0% | 3,000 | 5,000 | 7,000 | 9,000 | 11,000 | 38.38% |
Milton Co-ops | 1% | 12,000 | 12,060 | 12,120 | 12,181 | 12,242 | 0.50% |
Downtown Harborside District | 2% | 50,000 | 51,000 | 52,020 | 53,060 | 54,121 | 2.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 4.45% | 65,000 | 68,060 | 71,140 | 74,241 | 77,363 | 4.45% |
Due to regulatory constraints, the retail wine and spirit trade in Massachusetts is comprised of many independent participants. Chain stores are not allowed. No change is seen in this structure for the foreseeable future, although some changes are afoot in Internet-driven distribution operations, particularly for wholesalers.
Competition to a large degree depends on location, as stores take a stake in a territory that engenders best in-store sales prospects. Relationships are cultivated with better customers, both individual and wholesale, who may qualify for discounts based on volume purchases. Prices in the Boston marketplace are not subject to much variance, as retailers seek to protect their margins against distributor costs that are virtually the same for all. Distributors, however, reward volume, and high-volume retailers have the capability to build a competitive advantage. For example, Millstones runs periodic Super Sales, with retail prices of over 200 wines offered at distributor cost prices. This is something only a high-volume retailer could afford to do.
Other competitive factors include breadth and depth of available stock, product knowledge, customer service, expense management, marketing programs, employee productivity, management of detailed information, in-store presentation and overall design, hours of operation, incoming and outgoing delivery efficiencies, product packaging, customer loyalty, out-of-area competition, pricing, and reputation.
Competitors:
Stillman Wines on Packard Street is the next nearest competitor, about 2,500 feet north of our location. Although Stillman is a high-volume shop with strength in pricing power, it remains far beyond the practical boundaries for shoppers who live in our neighborhood.
There are other direct marketers and major advertisers that can deliver into our territory: Beverson’s, Millstone’s, Gainer, and Morrison. We expect our local delivery service will be faster and more responsive than these bigger players.
Internet storefronts (evinyard.com, Wine.com, etc.) are emerging competitiors and may be more of a longer term issue, since the industry and marketplace is in the process of experimenting, testing and adapting to changing conditions in search of a business model that works over the long term. We intend to develop our own website and emerge as a player by developing with website economics that make this a self-funding outlet for sales and service.
Non-local stores that are in commuter paths of our neighborhood residents are also competitors, which will make us ever aware of the importance of cultivating relationships with our neighborhood residents so we can develop a long-term loyal customer base.
The target market profile consists of Boston residents who are educated, successful professionals, with high disposable income, and who are regular consumers of alcoholic beverages. Most of the consumers in this category rely on assistance in selecting wines and spirits. Consequently, they tend to reward the most capable merchants with loyalty and word-of-mouth advertising. This is an area that Vino Maestro will work to develop as a keystone of its marketing strategy.
Other potential segments (geographic, demographic, preferences):
Bulk volume : private and business. Much of this business needs to be cultivated through opportunistic networking, and diligent follow-ups of in-store inquiries and leads.
Boston direct deliverables: (outside immediate store neighborhood) viable only as the store earns its way into a position in which it can invest in vehicle delivery operations and line up target customers that would sustain such an operation.
Intra-state shipments: contingent on expansion following the successful implementation of this business plan in the first year or two of operations. This business would develop through direct-mail catalog marketing, and an Internet sales operation.
Other than the market segment carved out by Beverson’s and a handful of major players, little attention is paid to the opportunities of geographic extensions through direct shipments of wine & spirits throughout Massachusetts. Beverson’s markets over the Internet and has over 220 thousand actual and potential customers on its mailing list. As a goal, our company will seek to capture of piece of the apparently substantial demand for direct shipment sales. Is is important to note that if current lobbying efforts are successful in influencing state and national liquor authorities to allow interstate shipments, our company intends to be in a good position to capture a piece of this outstanding potential growth opportunity. Even without interstate sales, a successful penetration of the Massachusetts intra-state marketplace would mean substantial growth for a neighborhood business.
Exclusivity within Southside Towers is a significant competitive edge. It gives Vino Maestro geographic and protected domain as the most convenient source of fine wines and spirits for over 3,000 current residents and up to 14,000 additional future residents.
Marketing strategy will focus on:
Product pricing will be based on competitive parity guidelines. Prices will be consistent with those of the retail stores in our area, with the exception of very high-volume operations who have more powerful pricing leverage.
Pricing will be monitored continuously against neighborhood and other competitive sources (market leaders) who we can readily research.
Management will focus on daily sales revenue goals.
Best value products will be identified to assist customers with smart selections.
Deliveries will be geared to the customer’s convenience. The situation will be monitored to insure that the company invests adequately in its own delivery operations.
Sales feedback will be elicited to stimulate ideas, approaches, relate success stories, instruct in new techniques, share news, implement improvements.
Major accounts will be solicited through networking, neighborhood solicitations, and opportunistic encounters at any time by management.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Wine | $840,000 | $1,200,000 | $1,500,000 |
Spirits | $84,000 | $120,000 | $150,000 |
Other | $0 | $0 | $0 |
Total Sales | $924,000 | $1,320,000 | $1,650,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Wine | $509,091 | $727,273 | $909,091 |
Spirits | $68,852 | $98,361 | $120,968 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $577,943 | $825,633 | $1,030,059 |
Sales staff will have a level of wine and spirits knowledge that will position Vino Maestro to address customer needs better than our competition. The company will support high potential sales staff with education tuition assistance, and we will recruit our sales staff from students of wine education institutes.
One of the managing partners is musically talented and will use his skill to create programmed background music to enhance store ambience and stimulate sales. This music will have the potential to be copyrighted and tested as a stand-alone marketable product, similar to CD’s sold by Starbucks and Pottery Barn. The store layout will be planned with a commercial interior designer, to present an upscale, festive, cosmopolitan and culturally sophisticated image.
A proprietary website address has been registered, and a website will be built to enhance customer service, supplier commerce, and direct sales. Vino Maestro will take advantage of this opportunity as much as possible within budgetary limits.
Peripheral sales and marketing collaterals will be used to expand product lines and customer awareness of our store: wine glasses, recipes (that match wine with food), corkscrews, umbrellas, calendars.
A sophisticated proprietary software tool will be developed to enhance the customer buying experience with product knowledge matched to our customers’ tastes and preferences.
Vino Maestro will seek out opportunities to establish viable strategic alliances, such as co-marketing with gourmet food operations, wine and spirits distributors, importers, and producers. One such opportunity, and a natural fit, is an alliance with the upscale goumet food market that will occupy a neighboring retail storefront on Mainline Avenue, within about 100 feet from our storefront. Packaging party catering and event food services with a complement of fine wines and spirits from Vino Maestro will help promote both businesses and provide an extra measure of service to our neighborhood customers. Coordinating gift baskets with wine orders in a single delivery package presents another compelling co-marketing opportunity. Information specific to pairing wines with food can be used to stimulate sales as well.
Vino Maestro will be managed by Cris Martin and Bob Williams. After the launch of the business, as sales volumes increase, an associate manager may be hired to help with day-to-day store operations.
Cris Martin: Managing Partner
Cris has over 25 years of management experience in the retail, financial services and newspaper publishing businesses. After graduating with a B.A. from Bigten State University in 1981, Cris worked his way up the career ladder in retail management positions for Jensen’s, Hollard’s, and Northbank. In 1986, he became an assistant vice president with Hanson Trust. In 1988, he launched his first business, Atlantic Racquet Club. As the CEO of the organization, he learned, first hand, everything it takes to start and operate a small retail business in a major city. In the 1990’s, Cris worked as a newspaper executive, first for the Metropolis Star and later for the Gotham City Times, where as director of business operations he was a key member of the management team that launched and grew the gothamcitytimes.com website.
Cris holds an MBA degree in finance and accounting from Burke University, a B.A. in psychology from Bigten State University, and a Higher Certificate degree from the Wine and Spirit Education Trust.
Robert Williams: Managing Partner
Bob brings over 20 years of wine trade expertise and executive management skills to our company. For the last ten years, Bob served as the director of food and beverages for the Prestige Athletic Club, an $8 million/year operation where he personally selected the club’s wine list (of over 100 wines), coordinated over 20 wine tastings, taught wine classes, and developed relationships with some of the top wine makers in the world. As a volume buyer for the PAC, he has done business with many of the wine and liquor distributors and importers who cover the metro New York area.
Prior to his position at the PAC, Bob spent more than a dozen years in restaurant management positions–as restaurant manager of Mr. E’s in Houston, Partner and general manager of the Fieldstone Restaurant in Minneapolis, and restaurant manager for the Pinnacle Hotel in Boston.
After graduating from Tellford University in 1983 with a B.A. degree in history, Bob earned a Higher Certificate with Distinction from the Wine and Spirit Education Trust, and a Certified Sommelier degree from the Sommelier Society of America.
The following table shows the personnel needed for Vino Maestro.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Store Managers/Partners | $96,000 | $96,000 | $100,000 |
Salespeople — Full-time | $0 | $0 | $0 |
Salespeople — Seasonal | $4,650 | $3,070 | $3,380 |
Stock/Delivery — Full-time | $21,320 | $23,500 | $28,850 |
Stock/Delivery — Seasonal | $2,460 | $2,700 | $2,970 |
Other | $0 | $0 | $0 |
Total People | 6 | 7 | 7 |
Total Payroll | $124,430 | $125,270 | $135,200 |
50%-70% of sales are projected as credit card sales, in-line with actual experience of retail liquor stores in Boston.
Credit card collection is typically short, and this plan assumes an one day collection time.
The payment days estimate ranges from 30 days to 28 days. Distributors terms are 30 days, although substantial discounts can be secured with earlier payments.
The long-term interest rate basis is the current SBA guideline of prime plus 2.25% for a seven year loan.
The short-term interest rate basis is the fed funds rate plus 2.5%
Distributors reward volume purchases with lower costs. The company plans to take advantage of distributors’ volume discounts, and will pass along these savings to consumers in the form of sales and special promotions to stimulate loyalty and further growth. Gross margins will be maintained in the 30-33% range, which would put our business in-line with the competition in the Boston metro area.
As the business grows, our investment in inventory increases. This reflects sales volume increases and the commensurate ability to secure favorable volume discount terms with our distributors.
The projected accounts receivable position is relatively low and steady due to the nature of the business, in which up to 50% of our sales are cash, and the balance are consumer credit card purchases. No other consumer credit terms are envisioned or necessary for the operation of this business.
Long-term liabilities are projected to decrease steadily, reflecting re-payment of the original seven year term loan required to finance the business.
It is important to note that part of the retained earnings may become a distribution of capital to the owners, while the balance would be reinvested in the business to replenish depreciated assets and to support further growth.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $242,668 | $326,466 | $486,356 |
Inventory | $60,546 | $86,495 | $107,911 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $303,215 | $412,961 | $594,267 |
Long-term Assets | |||
Long-term Assets | $180,000 | $180,000 | $180,000 |
Accumulated Depreciation | $18,480 | $42,240 | $76,890 |
Total Long-term Assets | $161,520 | $137,760 | $103,110 |
Total Assets | $464,735 | $550,721 | $697,377 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $73,228 | $89,859 | $110,218 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $73,228 | $89,859 | $110,218 |
Long-term Liabilities | $205,716 | $171,432 | $137,148 |
Total Liabilities | $278,944 | $261,291 | $247,366 |
Paid-in Capital | $235,000 | $235,000 | $235,000 |
Retained Earnings | ($75,000) | ($49,209) | $54,431 |
Earnings | $25,791 | $103,640 | $160,580 |
Total Capital | $185,791 | $289,431 | $450,011 |
Total Liabilities and Capital | $464,735 | $550,721 | $697,377 |
Net Worth | $185,791 | $289,431 | $450,011 |
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 9.00% | 9.00% | 9.00% |
Long-term Interest Rate | 11.00% | 11.00% | 11.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
Since this is a start-up operation, a steady increase in sales is forecast over three years, as consumer awareness and regular repeat business grows with a strong and consistent increase in the population of Southside Towers, from an initial 3,000 residents to about 17,000 residents upon completion. A solid business plan and the management skills and experience of the managing partners should be sufficient to orchestrate the necessary growth to make this a successful launch with steady increases in sales over the first three years.
Operating expenses are based on an assessment of operational needs for a store of this size. Observations of Boston retail wine shop staffing, direct experience at Liberty and Star City wine stores, and interviews with store owners and suppliers are the basis for these projections. Rent is based on negotiated lease agreement with the landlord. Other estimates are based on experience in operating a 4,000 square foot Boston storefront business, and on vendor quotes and estimates.
Collection days should remain fairly short, given the substantial cash revenues, and standard credit card collection periods.
The following table presents the profit and loss figures for Vino Maestro.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $924,000 | $1,320,000 | $1,650,000 |
Direct Cost of Sales | $577,943 | $825,633 | $1,030,059 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $577,943 | $825,633 | $1,030,059 |
Gross Margin | $346,057 | $494,367 | $619,941 |
Gross Margin % | 37.45% | 37.45% | 37.57% |
Expenses | |||
Payroll | $124,430 | $125,270 | $135,200 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $18,480 | $23,760 | $34,650 |
POS computer software lease | $3,000 | $3,500 | $4,000 |
Rent | $56,093 | $77,000 | $80,000 |
Utilities- HVAC and phone/data lines | $6,000 | $6,600 | $7,260 |
Insurance | $6,000 | $6,600 | $7,260 |
Vehicle Delivery Expenses | $6,000 | $12,000 | $24,000 |
Maintenance/Repairs | $6,000 | $6,500 | $7,000 |
Cleaning/Supplies | $6,000 | $6,500 | $7,000 |
Rent | $23,664 | $23,664 | $23,664 |
Leased Equipment | $0 | $0 | $0 |
Advertising/Marketing | $12,000 | $24,000 | $36,000 |
Payroll Taxes | $19,909 | $20,043 | $21,632 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $287,575 | $335,437 | $387,666 |
Profit Before Interest and Taxes | $58,481 | $158,929 | $232,275 |
EBITDA | $76,961 | $182,689 | $266,925 |
Interest Expense | $24,357 | $20,743 | $16,972 |
Taxes Incurred | $8,333 | $34,547 | $54,723 |
Net Profit | $25,791 | $103,640 | $160,580 |
Net Profit/Sales | 2.79% | 7.85% | 9.73% |
We are positioning ourselves in the market as a medium-risk concern with steady cash flows. Accounts payable is paid at the end of each month while sales are in cash and short-term credit card collectibles. Cash balances will be used to reduce outstanding line of credit balances, or will be invested in a low-risk liquid money market fund to decrease the opportunity cost of cash held. Surplus cash balances during the critical first year of operations will function as protection against unforeseen changes in the timing of disbursements required to fund operations.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $924,000 | $1,320,000 | $1,650,000 |
Subtotal Cash from Operations | $924,000 | $1,320,000 | $1,650,000 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $924,000 | $1,320,000 | $1,650,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $124,430 | $125,270 | $135,200 |
Bill Payments | $592,618 | $1,076,648 | $1,320,626 |
Subtotal Spent on Operations | $717,048 | $1,201,918 | $1,455,826 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $34,284 | $34,284 | $34,284 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $751,332 | $1,236,202 | $1,490,110 |
Net Cash Flow | $172,668 | $83,798 | $159,890 |
Cash Balance | $242,668 | $326,466 | $486,356 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5921, [insert code title here], are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 42.86% | 25.00% | 9.40% |
Percent of Total Assets | ||||
Inventory | 13.03% | 15.71% | 15.47% | 42.10% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 32.30% |
Total Current Assets | 65.24% | 74.99% | 85.21% | 76.10% |
Long-term Assets | 34.76% | 25.01% | 14.79% | 23.90% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 15.76% | 16.32% | 15.80% | 41.80% |
Long-term Liabilities | 44.27% | 31.13% | 19.67% | 19.40% |
Total Liabilities | 60.02% | 47.45% | 35.47% | 61.20% |
Net Worth | 39.98% | 52.55% | 64.53% | 38.80% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 37.45% | 37.45% | 37.57% | 23.10% |
Selling, General & Administrative Expenses | 34.68% | 29.60% | 27.79% | 12.70% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.50% |
Profit Before Interest and Taxes | 6.33% | 12.04% | 14.08% | 1.10% |
Main Ratios | ||||
Current | 4.14 | 4.60 | 5.39 | 2.19 |
Quick | 3.31 | 3.63 | 4.41 | 0.50 |
Total Debt to Total Assets | 60.02% | 47.45% | 35.47% | 61.20% |
Pre-tax Return on Net Worth | 18.37% | 47.74% | 47.84% | 3.40% |
Pre-tax Return on Assets | 7.34% | 25.09% | 30.87% | 8.90% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 2.79% | 7.85% | 9.73% | n.a |
Return on Equity | 13.88% | 35.81% | 35.68% | n.a |
Activity Ratios | ||||
Inventory Turnover | 8.62 | 11.23 | 10.60 | n.a |
Accounts Payable Turnover | 9.09 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 27 | 27 | n.a |
Total Asset Turnover | 1.99 | 2.40 | 2.37 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 1.50 | 0.90 | 0.55 | n.a |
Current Liab. to Liab. | 0.26 | 0.34 | 0.45 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $229,987 | $323,103 | $484,049 | n.a |
Interest Coverage | 2.40 | 7.66 | 13.69 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.50 | 0.42 | 0.42 | n.a |
Current Debt/Total Assets | 16% | 16% | 16% | n.a |
Acid Test | 3.31 | 3.63 | 4.41 | n.a |
Sales/Net Worth | 4.97 | 4.56 | 3.67 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Wine | 0% | $40,000 | $45,000 | $50,000 | $50,000 | $60,000 | $75,000 | $100,000 | $125,000 | $70,000 | $70,000 | $75,000 | $80,000 |
Spirits | 0% | $4,000 | $4,500 | $5,000 | $5,000 | $6,000 | $7,500 | $10,000 | $12,500 | $7,000 | $7,000 | $7,500 | $8,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $44,000 | $49,500 | $55,000 | $55,000 | $66,000 | $82,500 | $110,000 | $137,500 | $77,000 | $77,000 | $82,500 | $88,000 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Wine | $24,242 | $27,273 | $30,303 | $30,303 | $36,364 | $45,455 | $60,606 | $75,758 | $42,424 | $42,424 | $45,455 | $48,485 | |
Spirits | $3,279 | $3,689 | $4,098 | $4,098 | $4,918 | $6,148 | $8,197 | $10,246 | $5,738 | $5,738 | $6,148 | $6,557 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $27,521 | $30,961 | $34,401 | $34,401 | $41,282 | $51,602 | $68,803 | $86,003 | $48,162 | $48,162 | $51,602 | $55,042 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Store Managers/Partners | 0% | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
Salespeople — Full-time | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Salespeople — Seasonal | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $930 | $1,860 | $1,860 | $0 | $0 | $0 |
Stock/Delivery — Full-time | 0% | $2,050 | $1,640 | $1,640 | $2,050 | $1,640 | $1,640 | $2,050 | $1,640 | $1,640 | $2,050 | $1,640 | $1,640 |
Stock/Delivery — Seasonal | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $820 | $1,640 | $0 | $0 | $0 | $0 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 6 | 6 | 6 | 6 | 6 | 6 | 8 | 8 | 6 | 6 | 6 | 6 | |
Total Payroll | $10,050 | $9,640 | $9,640 | $10,050 | $9,640 | $9,640 | $11,800 | $13,140 | $11,500 | $10,050 | $9,640 | $9,640 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | |
Long-term Interest Rate | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $44,000 | $49,500 | $55,000 | $55,000 | $66,000 | $82,500 | $110,000 | $137,500 | $77,000 | $77,000 | $82,500 | $88,000 | |
Direct Cost of Sales | $27,521 | $30,961 | $34,401 | $34,401 | $41,282 | $51,602 | $68,803 | $86,003 | $48,162 | $48,162 | $51,602 | $55,042 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $27,521 | $30,961 | $34,401 | $34,401 | $41,282 | $51,602 | $68,803 | $86,003 | $48,162 | $48,162 | $51,602 | $55,042 | |
Gross Margin | $16,479 | $18,539 | $20,599 | $20,599 | $24,718 | $30,898 | $41,197 | $51,497 | $28,838 | $28,838 | $30,898 | $32,958 | |
Gross Margin % | 37.45% | 37.45% | 37.45% | 37.45% | 37.45% | 37.45% | 37.45% | 37.45% | 37.45% | 37.45% | 37.45% | 37.45% | |
Expenses | |||||||||||||
Payroll | $10,050 | $9,640 | $9,640 | $10,050 | $9,640 | $9,640 | $11,800 | $13,140 | $11,500 | $10,050 | $9,640 | $9,640 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $880 | $990 | $1,100 | $1,100 | $1,320 | $1,650 | $2,200 | $2,750 | $1,540 | $1,540 | $1,650 | $1,760 | |
POS computer software lease | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Rent | $0 | $0 | $0 | $6,233 | $6,233 | $6,233 | $6,233 | $6,233 | $6,233 | $6,233 | $6,233 | $6,233 | |
Utilities- HVAC and phone/data lines | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Vehicle Delivery Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Maintenance/Repairs | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Cleaning/Supplies | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Rent | $1,972 | $1,972 | $1,972 | $1,972 | $1,972 | $1,972 | $1,972 | $1,972 | $1,972 | $1,972 | $1,972 | $1,972 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Advertising/Marketing | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Payroll Taxes | 16% | $1,608 | $1,542 | $1,542 | $1,608 | $1,542 | $1,542 | $1,888 | $2,102 | $1,840 | $1,608 | $1,542 | $1,542 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $18,260 | $17,894 | $18,004 | $24,713 | $24,457 | $24,787 | $27,843 | $29,947 | $26,835 | $25,153 | $24,787 | $24,897 | |
Profit Before Interest and Taxes | ($1,781) | $644 | $2,594 | ($4,114) | $261 | $6,111 | $13,355 | $21,550 | $2,004 | $3,686 | $6,111 | $8,061 | |
EBITDA | ($901) | $1,634 | $3,694 | ($3,014) | $1,581 | $7,761 | $15,555 | $24,300 | $3,544 | $5,226 | $7,761 | $9,821 | |
Interest Expense | $2,174 | $2,148 | $2,121 | $2,095 | $2,069 | $2,043 | $2,017 | $1,990 | $1,964 | $1,938 | $1,912 | $1,886 | |
Taxes Incurred | ($1,186) | ($376) | $118 | ($1,552) | ($452) | $1,017 | $2,835 | $4,890 | $10 | $437 | $1,050 | $1,544 | |
Net Profit | ($2,768) | ($1,127) | $355 | ($4,657) | ($1,356) | $3,051 | $8,504 | $14,669 | $29 | $1,311 | $3,149 | $4,631 | |
Net Profit/Sales | -6.29% | -2.28% | 0.64% | -8.47% | -2.05% | 3.70% | 7.73% | 10.67% | 0.04% | 1.70% | 3.82% | 5.26% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $44,000 | $49,500 | $55,000 | $55,000 | $66,000 | $82,500 | $110,000 | $137,500 | $77,000 | $77,000 | $82,500 | $88,000 | |
Subtotal Cash from Operations | $44,000 | $49,500 | $55,000 | $55,000 | $66,000 | $82,500 | $110,000 | $137,500 | $77,000 | $77,000 | $82,500 | $88,000 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $44,000 | $49,500 | $55,000 | $55,000 | $66,000 | $82,500 | $110,000 | $137,500 | $77,000 | $77,000 | $82,500 | $88,000 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $10,050 | $9,640 | $9,640 | $10,050 | $9,640 | $9,640 | $11,800 | $13,140 | $11,500 | $10,050 | $9,640 | $9,640 | |
Bill Payments | $277 | $8,341 | $9,052 | $10,162 | $30,390 | $64,482 | $80,408 | $107,065 | $122,410 | $23,698 | $64,358 | $71,975 | |
Subtotal Spent on Operations | $10,327 | $17,981 | $18,692 | $20,212 | $40,030 | $74,122 | $92,208 | $120,205 | $133,910 | $33,748 | $73,998 | $81,615 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $2,857 | $2,857 | $2,857 | $2,857 | $2,857 | $2,857 | $2,857 | $2,857 | $2,857 | $2,857 | $2,857 | $2,857 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $13,184 | $20,838 | $21,549 | $23,069 | $42,887 | $76,979 | $95,065 | $123,062 | $136,767 | $36,605 | $76,855 | $84,472 | |
Net Cash Flow | $30,816 | $28,662 | $33,451 | $31,931 | $23,113 | $5,521 | $14,935 | $14,438 | ($59,767) | $40,395 | $5,645 | $3,528 | |
Cash Balance | $100,816 | $129,477 | $162,929 | $194,860 | $217,973 | $223,494 | $238,429 | $252,866 | $193,100 | $233,495 | $239,140 | $242,668 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $70,000 | $100,816 | $129,477 | $162,929 | $194,860 | $217,973 | $223,494 | $238,429 | $252,866 | $193,100 | $233,495 | $239,140 | $242,668 |
Inventory | $150,000 | $122,479 | $91,518 | $57,116 | $37,842 | $45,410 | $56,762 | $75,683 | $94,604 | $52,978 | $52,978 | $56,762 | $60,546 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $220,000 | $223,295 | $220,995 | $220,045 | $232,702 | $263,383 | $280,256 | $314,112 | $347,470 | $246,078 | $286,473 | $295,902 | $303,215 |
Long-term Assets | |||||||||||||
Long-term Assets | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 | $180,000 |
Accumulated Depreciation | $0 | $880 | $1,870 | $2,970 | $4,070 | $5,390 | $7,040 | $9,240 | $11,990 | $13,530 | $15,070 | $16,720 | $18,480 |
Total Long-term Assets | $180,000 | $179,120 | $178,130 | $177,030 | $175,930 | $174,610 | $172,960 | $170,760 | $168,010 | $166,470 | $164,930 | $163,280 | $161,520 |
Total Assets | $400,000 | $402,415 | $399,125 | $397,075 | $408,632 | $437,993 | $453,216 | $484,872 | $515,480 | $412,548 | $451,403 | $459,182 | $464,735 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $8,040 | $8,735 | $9,187 | $28,258 | $61,832 | $76,861 | $102,870 | $121,666 | $21,561 | $61,963 | $69,450 | $73,228 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $8,040 | $8,735 | $9,187 | $28,258 | $61,832 | $76,861 | $102,870 | $121,666 | $21,561 | $61,963 | $69,450 | $73,228 |
Long-term Liabilities | $240,000 | $237,143 | $234,286 | $231,429 | $228,572 | $225,715 | $222,858 | $220,001 | $217,144 | $214,287 | $211,430 | $208,573 | $205,716 |
Total Liabilities | $240,000 | $245,183 | $243,021 | $240,616 | $256,830 | $287,547 | $299,719 | $322,871 | $338,810 | $235,848 | $273,393 | $278,023 | $278,944 |
Paid-in Capital | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 | $235,000 |
Retained Earnings | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) | ($75,000) |
Earnings | $0 | ($2,768) | ($3,896) | ($3,541) | ($8,198) | ($9,554) | ($6,503) | $2,001 | $16,670 | $16,700 | $18,010 | $21,159 | $25,791 |
Total Capital | $160,000 | $157,232 | $156,104 | $156,459 | $151,802 | $150,446 | $153,497 | $162,001 | $176,670 | $176,700 | $178,010 | $181,159 | $185,791 |
Total Liabilities and Capital | $400,000 | $402,415 | $399,125 | $397,075 | $408,632 | $437,993 | $453,216 | $484,872 | $515,480 | $412,548 | $451,403 | $459,182 | $464,735 |
Net Worth | $160,000 | $157,232 | $156,104 | $156,459 | $151,802 | $150,446 | $153,497 | $162,001 | $176,670 | $176,700 | $178,010 | $181,159 | $185,791 |
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Several local wineries (including Idaho’s oldest independent winery) offer the perfect pour on the Palouse. Tasting rooms let you sample the work of vintners, and in many cases, you can have a chat with the winemakers themselves.
A thriving winery developing a national reputation. Experience for yourself Basalt wines’ quality to appreciate one of Washington’s finest wineries.
906 Port Dr., Clarkston, WA 99403
(509) 758-6442
Camas Prairie Winery began in 1983 as a hobby, and is now Idaho’s oldest independent winery. The family operation recently moved its production to historic Bovill, Idaho but continues to produce a wide selection of wines.
207 Main St., Bovill, ID 83806
(208) 826-3222
Pursuing excellence in full lush blends and stand-alone varieties from local vineyards as well as a few select vineyards from central Washington.
Tasting room open every Saturday, 1-5pm.
3143 10th St., Lewiston, ID 83501
(208) 816-4679
Colter’s Creek has been crafting wines from our estate vineyard since 2007. Opened in 2018, our Moscow tasting room sits in the historic Hattabaugh building, built in 1890. Enjoy wine tasting at the bar, or relax on our interior patio and enjoy the sounds of Moscow. Stop in and refill your refill bottle from a variety of our wines on tap.
215 S Main St., Moscow, ID 83843
(208) 301-5125
Taste their commitment to wine as they produce a premium wine on the fourth- generation Lewiston farm turned vineyard. Tasting room is open Thurs-Sat 1- 9pm and Sun 1-5pm or by appointment.
3107 Powers Ave., Lewiston, ID 83501
(208) 746-9463
Merry Cellars is a family-owned winery which began in 2004 with their first crush. Winemaker Patrick Merry produces both red and white premium varieties, all from Washington fruit. The tasting room is open Mon-Sat 12Noon-6pm and by appointment.
1300 NE Henley Ct., Pullman, WA 99163
(509) 338-4699
Located in Lewiston, Idaho, Vine 46 is a boutique winery featuring an eclectic variety of red wines and small sampling of white wines. True to our mission, vision and values, at Vine 46 we create original wines that are a bit unexpected allowing you to explore your personal favorites – possibly shared among the most unlikely of friends.
800 Main St. #6, Lewiston, ID 83501
(208) 717-1648
This family owned and operated winery is the oldest bonded winery in Whitman County and is proud to create wines that are theirs from vine to bottle. Their tasting room is in historic Uniontown and is open 12Noon – 6pm Thursday through Saturday.
202 S Montgomery St., Uniontown, WA 99179
(509) 338-4916
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Russia’s Simple is not just a wine importer, writes Sergey Panov. It’s an interconnected series of brands that support and reinforce one another.
When anybody raises the subject of brand ecosystems, the companies most likely to come to mind are probably Google or Apple. But the wine industry also has a good example of a company that has built a system of successful brands that support each other’s growth. Professionals who are even slightly familiar with the Russian wine market know of Simple as one of its three largest importers. But Simple’s key feature is not so much the size of its turnover as its unique ecosystem. The best Russian sommelier school; a wine magazine with no competitor; Russia’s only wine conference; a chain of wine bars – all of these are parts of its single brand network.
Maxim Kashirin was looking for a project to invest in when he met another young businessman called Anatoly Korneev, who at that time was responsible for importing Ruffino into Russia. The two men realised there was a market niche for Italian wine in their country, and in 1994 their first pallet crossed the border into Russia. Quite soon, however, they found themselves facing a dilemma: to remain a tightly-focused market player or to become a more broad-based company offering options for every market segment.
Simple was launched in a country that was being built on the ruins of the Soviet Union, where the only wine available for purchase had been produced by the cooperatives of Georgia, Armenia and Krasnodar in southern Russia. After the fall of the Iron Curtain, citizens of the former USSR saw ‘French’ as a synonym for quality wine. Kashirin remembers early conversations with sommeliers: “French wine? Sounds nice,” they’d say. “Italian wine? No, thanks.”
At the time, wines were judged exclusively on the basis of their country of origin and it was possible to find French mass-market brands like Barton & Guestier on the wine lists of Moscow’s best restaurants. Fine, terroir-driven Italian wines, however, struggled to gain acceptance. Against this background, Kashirin and Korneev understood that they needed to be proactive. Their decision to establish the Enotria sommelier school in 1999 helped to accelerate the evolution of the Russian market as a whole. Sommelier education programmes were being offered by restaurants like Nostalgie, but Enotria was totally different in terms of the expertise of the educators and the courses’ intensity. Raising sommelier education to the next level helped Simple to create a market for its wines. Today, the school operates in both Moscow and Saint Petersburg and offers a range of courses, including the WSET Levels 2 and 3. In its nearly 20 years of operation, it has produced more than 7,000 graduates, including five of the ten most recent Best Sommeliers of Russia.
Simple’s influence on the sommelier community extends far beyond Enotria’s two branches. The company is a general partner of the Russian Sommelier Competition and sponsors educational activities ranging from weekly blind tasting training sessions, run by the Moscow Sommelier Association, to facilitating the participation of Russian champions in Association de la Sommellerie Internationale (ASI) competitions. Since 2014, Simple has organised, sponsored and hosted all ASI sommelier certification in Russia.
While educating professionals so they could better communicate with consumers was one way to build influence, the Simple team realised it was also important to communicate directly with wine drinkers. Initially, Kashirin and Korneev opened negotiations with Decanter magazine about launching a Russian edition. These discussions faltered, however, because the British publishers feared that Simple’s role as a distributor might influence editorial policy, and the Russians that the magazine’s London-edited content would not meet readers’ needs in their country. If it was hard to sell Russians European wines from outside France, articles about the differences between the subzones of Central Otago would be much too complicated for Russian readers.
In 2005, the company launched its own magazine: Simple Wine News (SWN). It became the first Russian publication dedicated to wine, with content not limited to Simple’s brands but also including fine wine news, gastronomy and detailed reports on wine regions. The magazine is free of charge and is distributed wherever there is a target audience, whether that’s hotels, restaurants, car dealerships or golf clubs.
“We didn’t launch it to make money or to print the CEO’s face on the cover,” explains Kashirin. “It was an integral part of our business philosophy. In the fine wine segment you have to create an emotional contact with your customer. The breadth and depth of our range meant that we needed a powerful communication tool, and that is what SWN has become.”
Today, the magazine is published eight times a year, with a circulation of about 30,000 copies.
For Ivan Glushkov, restaurant critic at GQ and founder of saltmagazine.ru, SWN is Russia’s main wine and spirit publication. “It aims to strike a balance between the seriousness of the professional booklets and frivolity of lifestyle magazines,” he says. Notably, SWN was the only printed wine magazine to survive the 2013 amendments to Russia’s advertising legislation that strictly banned press advertising of alcoholic beverages, and heavily restricted the way journalists could write about wine. While other magazines went out of business and wine writers were forced to change careers, SWN metamorphosed into a non-fiction book about wine and winemaking.
Simple is far from a simple organisation, being omnichannel. It is behind Russia’s only chain of wine shops that sell premium wines, rather than mass-market ones – a miracle in a country where the average cost of a bottle sold on the store shelf is Rb300 ($4.64, a third of which will be the ex-cellar price). In 2018, Simple was the number one wine importer by value, holding 8.4% of the market’s value.
Its assortment contains about 4,000 SKUs from 385 wineries, including such well-known names as Penfolds, Pingus, Frescobaldi, Joseph Drouhin and Louis Roederer, among many others. As well as wine stores in major cities, the company has warehouses in Moscow, Saint Petersburg, Rostov-on-Don, Sochi and Krasnodar, along with wine bars in Moscow and Saint Petersburg.
While online wine buying is not allowed in Russia, customers can navigate Simple’s intuitive website, find, select and order a bottle of rare wine from the importer’s stock and pick it up at the closest store. This system is complemented by attractively designed, welcoming shops whose staff are able to explain the difference between communes of the Côte d’Or.
Simple’s strength and its brand power is illustrated best by its performance against international giants with big marketing budgets. In 2018, Simple’s Louis Roederer and Lanson brands took fourth and fifth place behind three LVMH brands. In December of that year, despite the wide retail distribution of Dom Perignon, including in Krasnoe & Beloe, Russia’s biggest alcohol retailer, Simple sold so much Cristal that it could only supply it on allocation. In the Cognac category, Simple’s Frapin came just behind LVMH’s Rémy Cointreau and Denview.
As of 2016, Simple also moved into production in its own right. Its first product was luxury vodka called Onegin, after the main character of the Pushkin novel. This was followed in 2019 by the first Saperavi from the company’s Georgian winery Shilda; James Suckling gave its Tuscan Bertinga wines between 92 and 97 points.
Initially, Kashirin and Korneev had planned to build a winery in Russia rather than Georgia, and went looking around the Krasnodar Krai region, one of Russia’s centres of wine production. But they were unable to find land where they could grow grapes without the risk of frost; further, there had been a rise in Krasnodar real estate prices in the wake of the Olympic Games in Sochi. All of this made Georgia a more attractive prospect.
Despite the often tense political relations between the two countries’ governments, Russian consumers have a strong emotional link with Georgia. This could explain why in the five years after the relaxation of the ban on its imports, Georgia became the third-biggest wine exporter to Russia after Italy and France. But Simple’s import managers were not able to find Georgian wine that would meet their quality standards, so Kashirin and Korneev decided to produce it themselves.
While its image is that of the cradle of wine, Georgia’s exports to Russia rely heavily on inexpensive semi-sweet, semi-red wines made by large producers. Simple decided to produce wines made from Georgian grape varieties, grown in Georgian terroir, but using modern technologies at its 120ha Shildis Mtebi winery in Kakheti. A small number of grape varieties was chosen from 450 available in the local nursery, and experimentally planted on 5ha trial plots, and micro-vinifications were produced. Another 15-20ha are planted each year. The main risk for the young project is the political tension between the two countries, but Kashirin remains optimistic. “If Russia bans Georgian wine imports, the prospects aren’t very glorious,” he says. “The only encouraging fact is that we plan to increase market presence of the Shilda wines in 2021 and 2022, and we hope that by that time the relations between Russia and Georgia will have normalised”.
If Shilda was designed for Russian customers, the Chianti Classico Bertinga estate, founded in Georgia in 2014, targets the international market. Formerly part of the highly regarded estate of Castello di Ama, it is planted with Sangiovese and Merlot. The first harvest was in 2015, but the winemaking team decided to keep that year’s wine for longer ageing, so the first commercial vintage was the 2016. According to Kashirin, “we make IGTs, not Chianti DOCG, in order to make high-quality wine without compromising on price. Not being Italian has its benefits as we are not committed to sticking to a traditional style.” Apart from the agronomists, all the winery consultants are French, under the leadership of Stéphane Derenoncourt. James Suckling gave the 2016 basic blend of Sangiovese and Merlot 92 while awarding the single vineyard Merlot Volta di Bertinga 97.
In 2017, the company launched its Simple Congress, the most influential wine conference in Russia for industry professionals. Speakers have included experts such as Neal Martin, Ian D’Agata, Sören Polonius, Robert Joseph and Heini Zachariassen. Where dozens of Russians had been able to attend these kinds of presentations at European conferences such as MUST and wine2wine, Simple made it possible for hundreds to do so in Moscow.
It was Adam Smith who said, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest”. Twenty-five years ago, Kashirin and Korneev weren’t working for charity, but building their business. The choices they made have shaped Russia’s fine wine market, bringing to a new generation of eager consumers not just the best wines of the world, but a new way of thinking about wine.
This article first appeared in Issue 5, 2019 of Meininger's Wine Business International magazine, available in print or online by subscription .
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Niederösterreich, Austria’s largest wine-growing area, consists of eight independent quality regions designated as DACs, or Districtus Austriae Controllatus . They stretch in close proximity to one another, often taking their names from their own distinctive landscapes.
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Written by Dave Lavinsky
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their wine shops.
If you’re unfamiliar with creating a wine shop business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a wine shop business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
A business plan provides a snapshot of your wine shop as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
If you’re looking to start a wine shop or grow your existing wine shop company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your wine shop to improve your chances of success. Your wine shop business plan is a living document that should be updated annually as your company grows and changes.
With regards to funding, the main sources of funding for a wine shop are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for wine shops.
How to write a business plan for a wine shop.
If you want to start a wine shop or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your wine shop business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of wine shop you are running and the status. For example, are you a startup, do you have a wine shop that you would like to grow, or are you operating a chain of wine shops?
Next, provide an overview of each of the subsequent sections of your plan.
In your company overview, you will detail the type of wine shop you are operating.
For example, you might specialize in one of the following types of wine shops:
In addition to explaining the type of wine shop you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
In your industry or market analysis, you need to provide an overview of the wine shop industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the wine shop industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your wine shop business plan:
The customer analysis section of your wine shop business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, families, and corporations.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of wine shop you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other wine shops.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of wine retailers, wineries, bars, and restaurants that serve wine. You need to mention such competition as well.
For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a wine shop business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type of wine shop company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide a wide variety of wine brands, locally produced wines, or specialty wines?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.
Place : Place refers to the site of your wine shop company. Document where your company is situated and mention how the site will impact your success. For example, is your wine shop located in a busy retail district, a business district, a standalone shop, or purely online? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your wine shop marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your wine shop, including answering calls, helping customers make their selections, collecting payments, restocking inventory, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your wine shop to a new city.
To demonstrate your wine shop’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing wine shops. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a wine shop or running a small wine brand.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you sell wine by the bottle or the case and will you offer discounts for repeat customers? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your wine shop, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a wine shop:
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your wine shop location lease or a list of brands you carry.
Writing a business plan for your wine shop is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the wine shop industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful wine shop.
Don’t you wish there was a faster, easier way to finish your Wine Shop business plan?
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how a Growthink business plan writer can create your business plan for you.
Vine is a wine bar and retail bottle shop in beautiful downtown Moscow. Vine offers wine by the glass as well as a carefully curated selection of wines by the bottle from all over the world. Patrons can also sample specialty beer, cheese, and cider and a new food menu offers charcuterie boards, salads, panini sandwiches and more!
Where and When Find us at 618 S Main St Moscow, ID 83843 Open Tuesday – Friday Tuesday – Thursday 2pm – 8pm Friday 12pm – 8pm
Contact Email [email protected] Call 208-882-6502 vinemoscow.com Find them on Facebook and Instagram
This intimate charleston hotel has a decadent caviar and champagne bar.
Zero George hotel in Charleston, SC
When you turn off busy East Bay Street in Charleston, South Carolina and enter through the stately wrought iron gates of 0 George Street, the world instantly becomes quieter and more tranquil. With its flickering gas lamps, generous verandas, and private brick courtyard with climbing roses, terracotta-potted topiaries, and espaliered magnolias — the clutch of handsome carriage houses and “Charleston singles” probably look much like they did when they were built in 1804.
Zero George
You’ve arrived at Zero George , the intimate 16-room hotel in Charleston’s historic Ansonborough neighborhood. Boasting luxurious guest rooms, a fine dining restaurant, complimentary daily breakfast and wine & cheese happy hour, and brimming with original architectural details, this elegant boutique hotel is oozing with Southern charm and hospitality. (Not to mention an 8-seat caviar and Champagne bar on its picturesque porch.)
Caviar service at Zero George's 8-seat bar
Read on to learn more about what makes this historic property an ideal home away from home during any visit to The Holy City.
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Zero George is an intimate complex of three historic residences and two brick carriage houses surrounding a quiet and lush garden courtyard. All five of the circa 1804 buildings were painstakingly renovated in recent years.
The hotel’s namesake is Captain George Anson, a young commander of the H.M.S. Scarborough tasked with defending Charleston from pirates in the 18th-century. The captain reportedly used his winnings from playing cards to fund the purchase of the original tract of land where Zero George stands today.
Central courtyard
The historic hotel is located at 0 George Street, in the heart of Charleston’s historic Ansonborough neighborhood. It’s just off East Bay Street, a block south of Calhoun, and just a couple blocks from Marion Square.
Some rooms, suites, and residences feature private porches
Number of Rooms & Suites
16 rooms and suites, plus five one-to-three-bedroom residences for extended stays
Zero George's 5 properties date back to 1804
Charlestonian-meets-European elegance and quiet luxury
Drawing Room
Architecture and Decór
The five buildings date back to 1804, and their beautiful bones and original architectural details have been lovingly restored. From the wrought iron gates to the secluded brick courtyard, broad porches, original heart pine floors, wainscoting, and plantation shutters, the buildings have a sophisticated blend of Charleston’s European influences and the city’s own rich history, along with contemporary furnishings and decór.
Rooms & Suites
Interiors in the spacious guests rooms and suites feel fresh, relaxing, and quietly luxurious. Think classic and contemporary furnishings in whites, woods, and creams, with plush Frette linens, slipper chairs, acrylic desks, and gold accent pieces.
Bathrooms are modern and bright, with gleaming white subway tiles, fluffy Boca Terry robes, and Malin + Goetz toiletries.
The Caviar Bar
The Restaurant at Zero George , which is helmed by Executive Chef Vinson Petrillo, offers an opulent tasting menu dinner Tuesday through Sunday evenings to overnight guests and visiting diners.
For another truly decadent dining experience, book a spot at the 8-seat The Caviar Bar at Zero George on the graciously appointed porch. Tuck into a gorgeous spread of Regiis Ova Supreme caviar (served properly, on ice in fine silver, with mother-of-pearl spoons). It’s served with luxe accompaniments like buttery house-baked brioche fingers, perfectly custardy six-minute eggs, rich crème fraîche, lemon wedges, snipped chives, and crispy potato chips (washed down with your choice of Champagne, wine, or cocktails, of course).
If you’re looking for another restaurant recommendation while you’re in Charleston, visit Zero George’s sleek sister restaurant, Costa , for delicious upscale coastal Italian fare. Start with raw dishes like Scallop Crudo with passionfruit, avocado, and finger Lime, sample fresh salads like Burrata Caprese with peaches, tomatoes, and perilla leaf…and don’t miss signature dishes like the unforgettable Beef Cheek Tortelli with braised octopus and bone marrow gremolata.
Other Highlights
Daily European-style continental breakfast is complimentary
Who It’s Best For
Charleston's iconic pineapple fountain
What’s Nearby
Zero George is walkable to lots of nearby destinations, including:
For more information or to book a stay, visit Zero George . To help plan your trip, check out Explore Charleston for can’t-miss activities, itineraries, and the latest openings and events.
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Creating a business plan is essential for any business, but it can be especially helpful for wine businesses that want to improve their strategy and/or raise funding.
A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.
This article provides an overview of the key elements that every wine business owner should include in their business plan.
Download the Ultimate Business Plan Template
A wine business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.
A wine business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.
Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.
The following are the key components of a successful wine business plan:
The executive summary of a wine business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.
This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.
If you are just starting your wine business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your wine firm, mention this.
You will also include information about your chosen wine business model and how, if applicable, it is different from other companies in your industry.
The industry or market analysis is an important component of a wine business plan. Conduct thorough market research to determine industry trends and document the size of your market.
Questions to answer include:
You should also include sources for the information you provide, such as published research reports and expert opinions.
This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.
For example, a wine business’ customers may include restaurants, grocery stores, wine bars, and home consumers.
You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.
Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or wine services with the right marketing.
The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.
For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.
Below are sample competitive advantages your wine business may have:
This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.
This part of your wine business plan should include the following information:
The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.
Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a wine business include reaching $X in sales. Other examples include launching a new service, signing up X number of customers, or hiring key personnel.
List your team members here including their names and titles, as well as their expertise and experience relevant to your specific wine industry. Include brief biography sketches for each team member.
Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.
Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).
This includes the following three financial statements:
Your income statement should include:
Revenues | $ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 |
$ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 | |
Direct Cost | |||||
Direct Costs | $ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 |
$ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 | |
$ 268,880 | $ 360,750 | $ 484,000 | $ 649,390 | $ 871,280 | |
Salaries | $ 96,000 | $ 99,840 | $ 105,371 | $ 110,639 | $ 116,171 |
Marketing Expenses | $ 61,200 | $ 64,400 | $ 67,600 | $ 71,000 | $ 74,600 |
Rent/Utility Expenses | $ 36,400 | $ 37,500 | $ 38,700 | $ 39,800 | $ 41,000 |
Other Expenses | $ 9,200 | $ 9,200 | $ 9,200 | $ 9,400 | $ 9,500 |
$ 202,800 | $ 210,940 | $ 220,871 | $ 230,839 | $ 241,271 | |
EBITDA | $ 66,080 | $ 149,810 | $ 263,129 | $ 418,551 | $ 630,009 |
Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
EBIT | $ 60,880 | $ 144,610 | $ 257,929 | $ 413,351 | $ 625,809 |
Interest Expense | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 |
$ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 | |
Taxable Income | $ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 |
Income Tax Expense | $ 18,700 | $ 47,900 | $ 87,600 | $ 142,000 | $ 216,400 |
$ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 | |
10% | 20% | 27% | 32% | 37% |
Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:
Cash | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
Other Current Assets | $ 41,600 | $ 55,800 | $ 74,800 | $ 90,200 | $ 121,000 |
Total Current Assets | $ 146,942 | $ 244,052 | $ 415,681 | $ 687,631 | $ 990,278 |
Fixed Assets | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 |
Accum Depreciation | $ 5,200 | $ 10,400 | $ 15,600 | $ 20,800 | $ 25,000 |
Net fixed assets | $ 19,800 | $ 14,600 | $ 9,400 | $ 4,200 | $ 0 |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 | |
Current Liabilities | $ 23,300 | $ 26,100 | $ 29,800 | $ 32,800 | $ 38,300 |
Debt outstanding | $ 108,862 | $ 108,862 | $ 108,862 | $ 108,862 | $ 0 |
$ 132,162 | $ 134,962 | $ 138,662 | $ 141,662 | $ 38,300 | |
Share Capital | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Retained earnings | $ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 |
$ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 | |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 |
Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:
Below is a sample of a projected cash flow statement for a startup wine business.
Net Income (Loss) | $ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 |
Change in Working Capital | $ (18,300) | $ (11,400) | $ (15,300) | $ (12,400) | $ (25,300) |
Plus Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
Net Cash Flow from Operations | $ 21,480 | $ 82,910 | $ 152,629 | $ 256,551 | $ 380,709 |
Fixed Assets | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Net Cash Flow from Investments | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Equity | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Debt financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow from Financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow | $ 105,342 | $ 82,910 | $ 152,629 | $ 256,551 | $ 271,847 |
Cash at Beginning of Period | $ 0 | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 |
Cash at End of Period | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
You will also want to include an appendix section which will include:
Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your wine company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.
A well-written wine business plan is an essential tool for any entrepreneur looking to start or grow a wine company. Your business plan is your roadmap to success. By following the tips outlined in this article, you will be well on your way to writing a winning business plan for your wine company.
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Financial Plan. Provide an overview of your financial goals and projections, offering insights into revenue targets, profit margins, and anticipated growth trajectories. Example: The Vintage Vineyard Wine Bar aims for a projected revenue of $760,000 annually, targeting a 13% EBITDA profit margin by 2028.
Wine Bar Business Plan. Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their wine bars. If you're unfamiliar with creating a wine bar business plan, you may think creating one will be a time-consuming and frustrating process, but it won't be since we're here to help.
A Sample Wine Bar Business Plan Template 1. Industry Overview. A wine bar is a bar or small restaurant where wine is the main drink available; a characteristic feature of many standard wine bars is a wide selection of assorted wines available by the glass. Some wine bars are profiled on wines of a certain type of origin, such as Italian wine or ...
Wine bar space build-out: $100,000. Opening inventory, furniture decorations: $100,000. Three months of overhead expenses (payroll, rent, utilities): $50,000. Marketing costs: $25,000. Working capital: $25,000. The following graph below outlines the pro forma financial projections for A'Vin Garde Wine Bar.
Learn how to successfully write a wine bar business plan to help you start, grow, and/or raise funding for your wine bar business. ... Below is a sample of a projected cash flow statement for a startup wine bar. Sample Cash Flow Statement for a Startup Wine Bar. Year 1: Year 2: Year 3: Year 4: Year 5: CASH FLOW FROM OPERATIONS: Net Income (Loss ...
Here are a few tips for writing the market analysis section of your wine bar business plan: Conduct market research, industry reports, and surveys to gather data. Provide specific and detailed information whenever possible. Illustrate your points with charts and graphs. Write your business plan keeping your target audience in mind. 4.
Begin your business plan with a concise executive summary. Highlight your vision, mission, target market, and key differentiators. This section sets the tone for the entire document. 2. Business ...
Wine Bar Business Plan Template. If you want to start a Wine Bar business or expand your current Wine Bar, you need a business plan. The following Wine Bar business plan template gives you the key elements to include in a winning Wine Bar business plan.
Sample Bar Business Plan. The following bar business plan example gives you the key elements to include in a winning business plan:. Executive Summary - The Executive Summary is the most important part of your business plan. It is a brief overview of your bar business concepts, its products and services, potential market opportunity, and competitive advantage.
A customizable and editable template, specifically designed to meet the unique dynamics of establishing a wine bar, from concept development to operational execution. Executive Summary. A concise, engaging summary that captures the essence of your wine bar business, essential for attracting investors, partners, and wine aficionados.
Then, choose a pour cost percentage (or profit margin) to target. Price the drink by taking the cost of your ingredients and dividing by the target pour cost. That equals your price. Good target pour costs to target are 20 percent for beer, 14 percent for liquor, and 22 percent for wine.
Use this free bar business plan template to easily create a great business plan that organizes your vision and helps you start, grow, or raise funding for your bar., TEST. Many people dream of owning a bar: having their friends come by every week (or more), and getting to know their regulars. Bars, pubs, taverns, tap houses, clubs - no matter ...
One-bedroom apartment rentals average in the $3,000 per month range. Vino Maestro will be located in one of two currently existing, fully-rented residential towers. U.S. sales of wines priced at $10 to $14 a bottle have climbed 14 percent over the past 12 months, and sales at $25 a bottle (and up) have grown 18 percent.
202 S Montgomery St., Uniontown, WA 99179. (509) 338-4916. Visit Website. Indulge in a wine-tasting experience at one of the finest wineries in Moscow, Idaho. Uncover the flavors of local wines today.
It is behind Russia's only chain of wine shops that sell premium wines, rather than mass-market ones - a miracle in a country where the average cost of a bottle sold on the store shelf is Rb300 ($4.64, a third of which will be the ex-cellar price). In 2018, Simple was the number one wine importer by value, holding 8.4% of the market's value.
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a wine shop business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of wine shop company that you documented in your company overview.
Learn how to write a wine bar business plan that will help you get your business off the ground. Download our template and get started today! ... Sample Balance Sheet for a Startup Wine Bar Business. Year 1: Year 2: Year 3: Year 4: Year 5: ASSETS: Cash: $ 105,342: $ 188,252: $ 340,881: $ 597,431: $ 869,278: Other Current Assets: $ 41,600: $ 55,800:
Vine is a wine bar and retail bottle shop in beautiful downtown Moscow. Vine offers wine by the glass as well as a carefully curated selection of wines by the bottle from all over the world. Patrons can also sample specialty beer, cheese, and cider and a new food menu offers charcuterie boards, salads, panini sandwiches and more! Where and When
A longtime downtown Moscow wine store has closed and a new wine business recently opened its doors on South Main Street. Wine Company of Moscow, located on East Third Street between Main and ...
Caviar service at Zero George's 8-seat bar. Courtesy of Zero George / Hack Hargett. For another truly decadent dining experience, book a spot at the 8-seat The Caviar Bar at Zero George on the ...
The Czarneckis like to pair Oregon wine with Oregon produce, specifically mushrooms. Call 503-864-2995 to make a reservation or visit the website joelpalmerhouse.com
Learn how to write a wine business plan that will help you get your business off the ground. Download our template and get started today! ... Below is a sample of a projected cash flow statement for a startup wine business. Sample Cash Flow Statement for a Startup Wine Business. Year 1: Year 2: Year 3: Year 4: Year 5: CASH FLOW FROM OPERATIONS ...