3. Cupcakes & Wedding Cakes Vanilla Cake with Lemon Icing Chocolate Cake with Peppermint Icing Chocolate Cake with Peanut Butter Icing Vanilla Cake with Vanilla Icing

4. Critical Factor Sales!

5. 138 – 1820 McOrmond Drive University Heights Square

6. Why University Heights Square? Surrounded by 7 neighborhoods with a combined population of 45,000+ (Source: City of Saskatoon) The surrounding neighborhoods have an average household income of $85,704 (Source: City of Saskatoon) Next to 2 high traffic streets; Attridge Drive and McOrmond Drive Street2009 (estimated)2014 (projected) McOrmond Drive183 vehicles/hr1117 vehicles/hr Attridge Drive738 vehicles/hr1073 vehicles/hr (Source: Stantec Consulting Ltd)

7. Direct Competition The Cupcake CornerThe Cupcake Conspiracy $3.00/ Cupcake$2.50/ Cupcake

8. Indirect Competitors Safeway Starbucks $ 1.50/ Cupcake$1.95/ Mini Cupcake

9. Profit Margin Price: $3.00 Cost: $0.27 Profit Margin: 91% Price: $700 Cost: $104.58 Profit Margin: 85%

10. Customer Growth Expected Revenues 20122013201420152016 Number of Customers/Day 30364042 Numbers of Days/Year 350 Average Purchase/Customer $18.00$18.45$18.91$19.38$19.87 Total Sales $189,000$232,470$262,110$282,096 $294,93 1 20122013201420152016 25%20%10%5%

11. Marketing 20122013201420152016 Radio$12,090 $9,067$6,045$3,022 Newspaper$4,567 $3,425$2,283$1,141 Website$950$200 Print Ads$2,000 $1,500$1,000 Signage$3,000 Yellow Pages$240 Total$22,847 $22,09 7 $17,432 $12,76 8 $8,603

12. Breakeven Analysis

13. Return on Investment NPV: $82,891 Required Rate of Return: 25%

14. Thank You Questions?