Lounge 264 - Nightclub -Sample Restaurant Business Plan

4 © BPLANEXPERTS.COM The company will initially focus on launching a lounge in Michigan for the fashionable trendsetter. Over a period of 18 ‐ 36 months, the company hopes to build a large community of trendy party goers and strong brand presence to expand and branch out into a dedicated clothing line and TV shows. This business plan lays out the approach that The Party Group hopes to take while operating Lounge 264 and potential risks that it may need to overcome in order to provide better realization of the asset and higher quality of service to its customers. Sales Gross Margin Net Profit $0 $20,00,000 $40,00,000 $60,00,000 $80,00,000 $1,00,00,000 $1,20,00,000 $1,40,00,000 $1,60,00,000 $1,80,00,000 $2,00,00,000 Year 1 Year 2 Year 3 Year 4 Year 5 Highlights According to financial projections, Lounge 264 does not see any major cash flow problems in the long run. However, it is being forecast that the first year of operations may prove challenging. High capital costs, creation of a brand image and operational bottlenecks may have an impact on the overall profitability in year one. Over the next three years, it is expected that Lounge 264 will generate enough cash flows to fuel the company’s expansion plans. With the US economy showing signs of improvement and corporate expenses on the upswing, the demand for luxury lounges will improve. The founders of Lounge 264 are confident that through a mix of the right ambiance and product portfolio, well defined marketing strategy and customer relationship management it will be in a position to create a niche in the market for itself.