1. Highland Haze Cigar Lounge
Per Lefsrud

2. Our Product

3. The Ambiance

4. Floor Plan

5. Location

6. Behind the Company
Management
Consulting
Suppliers

7. Target Market

8. Competition

9. Competitive Advantage

10. Capital Budget 80% Debt 20% Equity Land Building & Installation
Equipment
Total Capital Costs
$400,000
$1,768,189
$93,972
$2,262,161
80% Debt
20% Equity

11. Revenue Model Gross Profit Margin = 69% Net Profit Margin = 22%
Year
2018
2019
2020
2021
2022
Sales
848,575
1,442,578
2,163,866
2,875,100
3,018,854
COGS
262,973
447,055
670,582
890,993
935,543
Gross Profit
585,602
995,523
1,493,284
1,984,106
2,083,311
Expenses
584,256
791,592
1,128,507
1,252,114
1,296,043
Net income before Taxes
1,345
203,930
364,777
731,992
787,269
Income Taxes
168
25,491
45,597
120,498
134,317
Net Income
1,177
178,439
319,180
611,494
652,952
Gross Profit Margin = 69%
Net Profit Margin = 22%
IRR = 42%

12. Thank you!

13. Detailed Capital Budget Summary
Description
Estimated Cost ($)
Source
Land
400,000
Suncorp Valuations/various realtors
Building/installation Costs:
Structure (110x65=7,150 sq. ft.) (including doors, walls, and bars)
1,650,000
RSMeans
Sewage & water
8,400
Home Advisor
Electrical
45,000
Journeyman Electrician
Natural gas
9,500
Sask Energy
Heating/cooling (HVAC) system
12,500
Carpet (5,000 sq. ft.)
16,840
Great Floors
Paint (8,200 sq. ft. of wall)
22,550
Home Painters
Walk-in Humidor (300 sq. ft.)
3,399
Aristocrat Humidors
Total
2,168,189
Equipment:
Lounge chairs (70)
40,950
Surplus Furniture
Bar stools (10)
3,339
The Brick
Tables (13)
12,727
Wholesale Furniture Brokers
Sinks (4)
2,149
Webstaurant
Refrigerators (2)
10,516
Store room freezer unit
8,239
Toilets (5)
1,645
Lowe’s
Urinals (3)
780
Deelat Industrial Canada
Office desks (2)
1,490
ULINE
Office chairs (2)
682
Global Industrial
Dishwasher
2,699
Costco
Pool tables (3)
4,257
Wayfair
Sound system
1,399
Amazon
Dishes/cups/cutlery
3,100
Canadian Restaurant Supplier
Total Equipment Costs
93,972
Total Capital Costs
2,262,161
Detailed Capital Budget Summary

14. Annual Operating Budget/Cost of Sales
Expense
Estimated Yearly Cost ($)
Source
Property tax
39,639
City of Saskatoon
Natural gas
4,826
Sask Energy
Electricity
28,600
Sask Power
Water & Sewer
2,502
Sask Water
General Inventory
865,000
Various Suppliers
Cleaning
6,200
Manilla Cleaning Services Ltd.
Wages
431,910
Industry averages – marginally higher
Accounting (per-year for monthly consultations)
9,600
AdvisoryHQ
Legal (Startup consulting)
1,900
Mckercher Law
Advertising (Local radio/Newspaper)
~5,000
Industry Matters (Saskatchewan Campaigning) & The Star Phoenix
Freight
37,500
uShip
Insurance
6,000
SGI Canada
License and fees
annually
Telephone
258
Sasktel
Repair & Maintenance
1-3% of sales
Small Business Chron
CPP expense
21,379
Canada Revenue Agency
EI expense
1.4 times wages
Total Operating Expenses & Cost of Sales
1,464,325

15. Labour Total Hours Worked GM (me) Assistant Manager
Total Hours Worked
GM (me)
Assistant Manager
Bartenders (2 at a time)
Servers
(2-4 at a time)
Security (2-4 at a time)
Cooks
(2 at a time)
Sales Personnel (1-2 at a time)
Total Daily Paid Hours
Labour cost per day ($)
Monday 8 4 26 31 18
132
1,985
Tuesday
Wednesday
Thursday
Friday 44
158
2,236
Saturday
Sunday
Wages
Salary
50k Salary
$15
$12
$17
Yearly Total
719,850

16. Revenue & Marketing Expense Projections
Year
2018
2019
2020
2021
2022
Revenue:
Beer
Average Price
$8.00
$9.00
Quantity
33,943
57,703
86,555
102,226
107,337
$271,544
$461,625
$692,437
$920,032
$966,033
Cigars
$10.00
$11.00
9,334
15,868
23,803
28,751
30,189
$93,343
$158,684
$238,025
$316,261
$332,074
Scotch/hard liquor
$12.00
105,420
110,691
$373,373
$634,734
$952,101
$1,265,044
$1,328,296
Food
13,789
23,442
35,163
41,529
43,606
110,315
187,535
281,303
373,763
392,451
Total Revenue
$848,575
$1,442,578
$2,163,866
$2,875,100
$3,018,854
Marketing Expenses
Training
$7,000
$1,000
Newspaper ads
$1,500
Radio ads
$3,500
$2,000
Social media presence
$600
$500
Total
$12,600
$4,500

17. Pro-forma Income Statement
For the year ended
2018
2019
2020
2021
2022
Sales
848,575
1,442,578
2,163,866
2,875,100
3,018,854
COGS
262,973
447,055
670,582
890,993
935,543
Gross Profit
585,602
995,523
1,493,284
1,984,106
2,083,311
69%
Operating Expenses
Accounting and Legal
11,500
9,600
Advertizing (Marketing)
12,600
4,500
Insurance
6,000
Property Taxes
39,639
Telephone
258
Utilities
35,928
Repair and Maintenance
16,972
28,852
43,277
57,502
60,377
Wages and Salaries
243,970
389,940
679,920
782,780
828,093
Employee Benefits (salaries)
8,230
8,395
8,562
8,734
8,908
Employee Benefits (wages)
20,156
40,312
80,623
94,732
100,779
Misc Variable Costs % Sales
4,243
7,213
10,819
14,375
15,094
Capital Cost Allowance
44,761
86,528
80,912
75,976
71,602
Debt Interest
140,000
134,429
128,468
122,089
115,264
Total Operating Expenses
584,256
791,592
1,128,507
1,252,114
1,296,043
Taxable Income
1,345
203,930
364,777
731,992
787,269
Income Taxes
168
25,491
45,597
120,498
134,317
Net Income
1,177
178,439
319,180
611,494
652,952

18. Pro-forma Balance Sheet
Year
2018
2019
2020
2021
2022
Current Assets
Cash
209,401
389,787
700,104
1,291,360
1,309,455
Inventories
5,113
8,693
13,039
17,325
18,191
Total Current Assets
214,515
398,480
713,143
1,308,685
1,327,646
Non-Current Assets
Land
400,000
Buildings
1,768,189
Furniture and Fixtures
93,972
96,972
99,972
102,972
105,972
Accumulated CCA
(44,761)
(131,289)
(212,201)
(288,178)
(359,780)
Total Non-Current Assets
2,217,400
2,133,872
2,055,960
1,982,983
1,914,381
Total Assets
2,431,915
2,532,352
2,769,103
3,291,668
3,242,027
Liabilities
Accounts Payable
10,227
17,385
26,078
34,650
36,382
Long Term Debt
1,920,411
1,835,250
1,744,129
1,646,628
1,542,303
Total Liabilities
1,930,637
1,852,636
1,770,207
1,681,278
1,578,685
Common Shares Class A
100
Common Shares Class B
500,000
(100,000)
Retained Earnings
1,177
179,616
498,796
1,110,290
1,763,242
Total Equity
501,277
679,716
998,896
1,610,390
1,663,342
Total Liab & Equity

19. Pro-forma Cash Flow Statement
For the year ended
2018
2019
2020
2021
2022
Net Income
1,177
178,439
319,180
611,494
652,952
CCA
44,761
86,528
80,912
75,976
71,602
Operating Cash Flow
45,938
264,967
400,092
687,471
724,553
Changes in Working Capital
Inventories
(5,113)
(3,579)
(4,346)
(4,286)
(866)
Accounts Payable
10,227
7,159
8,693
8,572
1,732
Total
5,113
3,579
4,346
4,286
866
Investment Activities
Land
(400,000) -
Buildings
(1,768,189)
Furniture and Fixtures
(93,972)
(3,000)
(2,262,161)
Financing Activities
Long Term debt
1,920,411
(85,160)
(91,122)
(97,500)
(104,325)
Common Shares Class A
100
Common Shares Class B
500,000
(600,000)
Dividends
2,420,511
(704,325)
Net Cash Flow
209,401
180,386
310,317
591,256
18,094
Cash Bal Beg of Year
389,787
700,104
1,291,360
Cash Bal End of Year
1,309,455