2. Finance Overview Introduction Key Assumptions Start-up Costs Monthly Operating Expenses Projected Profit and Loss Sales Forecast Long term plan

3. Finance Overview

4. Introduction Key Assumptions Start-up Costs Monthly Operating Expenses Projected Profit and Loss Sales Forecast Long term plan

6. 1.We assume a slow-growth economy with no major recession. 2.We assume of course that there are no unforeseen changes in technology to make products immediately obsolete. 3.We assume that if equity is needed, capital and financing will be readily available. 4.We assume a growth rate of 5-10% in the first 3 years as shown in the following charts. 5.We assume that a Gross Margin of ranging from 60% to 80% is achievable based on national averages. Key Assumptions

7. Key Assumption Questions What sales are we expecting? Can we turn a profit after the first year? What do we expect to spend on fixed costs? Is our business able to break-even?

9. Operating Expenses Important to note: Advertising expenses increase Marketing expenses increase Eventually operating costs will decrease over time Total op costs will increase over time

10. Projected Sales

12. Break Even Make a profit!!!! $29,467

13. Income Statement Sweet Molly’s will make a profit in the first year of opening. One-time costs will be paid for in full within the first year Operating expenses will increase as sales increase. Inventory is going to be monitored for the first few months with a close eye in order to obtain raw materials effectively.

15. Profitability Ratios Gross Margin pretty average for the industry especially during out growth stage! Op margin and net margin increasing! ROE high which is a good sign that our investors will enjoy investing in our business.

16. As time goes on fixed expenses will decrease. Retail locations will open up as a result of increased demand. Sales will increase at the rate of 5-10%. Expansion will occur when capacity is met. Staff will be hired if bottlenecks are created due to capacity being reached The business will become a domestic well known brand in 5 years if expenses are appropriated correctly. Long Term Forecast

17. Exit Strategy Sweet Molly’s closes the business with a profit Sweet Molly’s liquidates everything including machinery and ends the business Sweet Molly’s sells everything to an investor or gets all their recipes bought by investor and is turned into a new company.

18. References US Census (2012) Wholesale and Retail Trade : Online Retail Sales (Food and Bev) http://www.census.gov/compendia/statab/cats/wholesale_retail_trade/online_retail_s ales.html Finance Plans, (2013) retrieved from http://www.bplans.com/financial_planning_business_plan/company_summary_fc.php http://www.bplans.com/financial_planning_business_plan/company_summary_fc.php Pell Research. Industry Analysis (2014) retrieved from http://www.pellresearch.com/chocolate-confectionery/ http://www.pellresearch.com/chocolate-confectionery/ Neubarger, K. (2013) Opening a retail chocolate store retrieved from http://www.thechocolatelife.com/forum/topics/opening-a-retail-chocolate-shop http://www.thechocolatelife.com/forum/topics/opening-a-retail-chocolate-shop Evans, J. (2014) Questionnaire about tax and business registrations in MO. BiZFilings (2014) Establishing Reasonable Planning assumptions. Retrieved from http://www.bizfilings.com/toolkit/sbg/startup/planning/establishing-reasonable- planning-assumptions.aspx http://www.bizfilings.com/toolkit/sbg/startup/planning/establishing-reasonable- planning-assumptions.aspx