• • Analyze the financial model that you created:
    • Using industry research, compare gross profit margins, profitability, growth rate and other benchmarks to the industry standards.
    • When is the startup expected to be profitable? What are the primary risks to this timeframe?
    • What do the projected financial sheets show about the growth and potential return on investment for the entrepreneurial startup?
  • Startup Capital
    • Based on startup costs and projected profitability, how much money will be needed to start and operate the business for the first three years?
    • List potential sources for startup capital, and analyze their motivations, interest in the business idea and required return.
    • Identify any impact to cash flow from your choice of startup capital
  • Financial Feasibility Analysis
    • Based on the information, research, and analysis, provide a summary financial feasibility conclusion.
• THIS IS FOR THE HOSPITALITY INDUSTRY

Projected Profit and Loss
	Year 1	Year 2	Year 3
Revenue	$ 770,100	$ 808,605	$ 849,035
Less COGS	$ 250,000	$ 255,000	$ 260,100
Gross Margin	$ 520,100	$ 553,605	$ 588,935
Percent Gross Margin	68%	68%	69%
Operating and General Expenses
Marketing and Sales	$ 23,103	$ 24,258	$ 25,471
Payroll	$ 113,000	$ 113,000	$ 113,000
Rent	$ 72,000	$ 72,000	$ 72,000
Utilities	$ 24,000	$ 24,240	$ 24,482
Other	$ 24,000	$ 24,000	$ 24,000
Total Expenses	$ 256,103	$ 257,498	$ 258,953
Earnings Before Interest, Taxes Ammortization (EBITA)	$ 263,997	$ 296,107	$ 329,982
Less Ammortization	$ 150,000	$ 150,000	$ 150,000
Earnings Before Interest, Taxes	$ 113,997	$ 146,107	$ 179,982
Less Interest	$ 4,500	$ 4,500	$ 4,500
Less Taxes	$ -	$ 20,000	$ 35,000
Net Earnings (Profit/Loss)	$ 109,497	$ 121,607	$ 140,482

Startup Item	Amount	Notes, Descriptions and Assumptions
Renting Building	$ 17,000.00	After taxes and paperwork fees, total startup for first month's rent including down payment
Equipment	$ 750,000.00	Jacuzzis, fixures, Soaps & Bath Amenities, Towels, Kitchen Appliances, Luggage Racks, Hotel Furniture, Ironing & Laundry Supplies, Security cameras, POS system
Pre-Opening Marketing Expenses	$ 25,000.00	Social Media, Fliers, Website Ads
Training Employees	$ 64,000.00	20-25 Employees - $16/ hour 40 hours/week for first month
Total	$ 856,000.00