Business Plan Prepared By

Company Address

City, State and Zip Code

Date Prepared

Month Year

Business Plan

Table of Contents

EXECUTIVE SUMMARY ..........................................................................5

MANAGEMENT AND ORGANIZATION ................................................7

Management team.................................................................................. 7

Compensation and ownership ................................................................ 7

Contracts and franchise agreements ....................................................... 7

Board of directors/advisory council ......................................................... 7

Infrastructure ......................................................................................... 7

Insurance ............................................................................................... 7

Employee stock option plan and other incentives ..................................... 7

Organization charts ............................................................................... 8

PRODUCT AND SERVICE PLAN ............................................................9

Purpose of the product or service .............................................................. Unique features ........................................................................................

Stage of development .............................................................................. 9

Future research and development ........................................................... 9

Trademarks, patents, copyrights, licenses, royalties................................. 9

Government approvals ........................................................................... 9

Product and service limitations ............................................................... 9

Product liability ..................................................................................... 9

Related services and spin-offs ................................................................. 9

Production ........................................................................................... 10

Facilities .............................................................................................. 10

Environmental factors .......................................................................... 10

MARKETING PLAN ................................................................................11

Industry profile ..................................................................................... 11

Current size ........................................................................................ 11

Growth potential ................................................................................. 11

Geographic location ............................................................................ 11

Industry trends ................................................................................... 12

Seasonality factors .............................................................................. 12 2

Business Plan

Profit characteristics ........................................................................... 12

Distribution networks .......................................................................... 12

Basis of competition ........................................................................... 12

Competition profile ............................................................................... 12

Customer profile ................................................................................... 13

Target market profile ............................................................................ 13

Pricing profile ...................................................................................... 13

Gross margin on products .................................................................... 13

Break-even analysis .............................................................................. 14

Market penetration ............................................................................... 14

Distribution channels ........................................................................... 14

Sales representatives ........................................................................... 14

Direct sales force ................................................................................ 14

Direct mail/telemarketing...................................................................... 14

Advertising and promotion ................................................................... 14

Packaging and labeling ....................................................................... 14

Service and warranties ......................................................................... 14

Trade shows ......................................................................................... 15

Future markets ..................................................................................... 15

OPERATING AND CONTROL SYSTEMS ............................................16

Administrative policies, procedures, and controls .................................. 16

Receiving orders ................................................................................. 16

Billing the customers ........................................................................... 16 Paying the suppliers ...............................................................................

Collecting the accounts receivable ....................................................... 16

Reporting to management .................................................................... 16 Staff development ..................................................................................

Inventory control ................................................................................ 16

Handling warranties and returns ........................................................... 16

Monitoring the company budgets......................................................... 16 Security systems ....................................................................................

Documents and paper flow ................................................................... 16

Planning chart ..................................................................................... 17

Product development .......................................................................... 17

Manufacturing..................................................................................... 17

Financial requirements ......................................................................... 17 3

Business Plan

Marketing flow chart ........................................................................... 17

Market penetration .............................................................................. 17

Management and infrastructure ............................................................ 17

Risk analysis ........................................................................................ 17

Salvaging assets ................................................................................... 17

GROWTH PLAN ......................................................................................18

New offerings to market ........................................................................ 18

Capital requirements ............................................................................ 18

Personnel requirements ........................................................................ 18

Exit strategy ......................................................................................... 18

FINANCIAL PLAN ...................................................................................19

Assumptions ......................................................................................... 19

Sales .................................................................................................. 19

Accounts receivable ............................................................................ 19

Inventory purchases ............................................................................ 19

Accounts payable ............................................................................... 19

Sales and marketing expenses .............................................................. 19

General expenses ................................................................................ 19

Administrative expenses ...................................................................... 19

Capital expenditures ............................................................................ 19

Depreciation/amortization .................................................................... 20

Cash required ..................................................................................... 20

Interest rates ....................................................................................... 20

Income tax ......................................................................................... 20 First year cash flow projections ...................................................Exhibit # First year projected profit and loss statement ...............................Exhibit # First year pro forma balance sheet ..............................................Exhibit # Three year cash flow/projected profit and loss statement ..............Exhibit # Three year pro forma balance sheet .............................................Exhibit # Financial analysis/ratios .............................................................Exhibit # SUPPORTING DOCUMENTS ................................................ APPENDIX 4

Business Plan Executive summary

Date

Recipient's Name, Title Street Address

City, State Zip Code

Dear __________:

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Respectfully sumitted,

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Business Plan

Your Name, Title

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Business Plan Management and organization plan

Management team

Compensation and ownership

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Contracts and franchise agreements

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Board of directors/advisory council

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Infrastructure

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Insurance

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Employee stock option plan and other incentives

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Business Plan

Organization charts

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Business Plan Product and service plan

Stage of development

Life cycle, situation, how to develop

Future research and development

Trademarks, patents, copyrights, licenses, royalties

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Government approvals

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Product and service limitations

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Product liability

Insurance

Related services and spin-offs

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Business Plan Production

Facilities

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Suppliers

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Environmental factors

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Business Plan Marketing plan

Industry profile

The size of water bar industry is not very large at present. There are various

forms of water bar in China and Beijing. However, in Fengtai district and the area around CUEB, there is no professional and regular water bar. Although there are many cafe and milk tea shop exist which are similar to water bar. But our water bar provides some unique services that will differentiate us from the industry. InsertTextHere

The water bar industry is an expanding industry. Some people have heard of water bar but some people do not. Our products are in the development stage In the growth stage, we seek to build our products brand preference and

increase the market share. The customers have already known what is sold in a water bar, so we should have several specialties that customers can remember. As for our unique services, they are in the introduction stage. Our letter

delivering and matchmaker service are not familiar to the customers, so we should enhance the publicity.

Our water bar will be located on the street out of our school’s east gate. It is close to our campus, student’s dormitory, and the communities. And it is also the gathering area restaurants and entertainment, we can take advantage of the business climate.

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Business Plan

Just like the food industry, we think the water bar industry is also concentrating on low fat, no-cholesterol products as a result of advances in biotechnology and cancer research. So we can provide more healthy drinks such as fresh juice. The internet is affecting virtually every industry. The water bar industry is not an exception. So we may provide some reservation service via the internet.

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The water bar industry is not affect apparently by the seasonality factors. Because we can provide warm drinks in the winter and cool drinks in the summer. However, as for our water bar, the seasonality factor affects us a lot. The target customers are mainly the students from CUEB, so during the summer and winter holiday we will suffer the decline of customers which may lead to a decline in the profit. Therefore, during holidays we will provide some discounts and other promotion methods to attract customers, such as internet selling. InsertTextHere

Gross margin

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Competition profile

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Business Plan

Customer profile

Our target customers are the student form CUEB, the residents in the

surrounding communities, and the passerby. The students, especially the student couples and roommates, they need a place for dating and get-together. And the residents nearby need a place the relax and release their pressure and anxiety. Our water bar provides a place for the passerby to seat down and have a rest.

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Target market profile

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Pricing profile

Because the target customers are mainly the students of CUEB, we will control our price in a range that students can accept about 30-50 Yuan per person. This price is similar to the water shop in dining hall and in the supermarket in the

campus. But we provides more services than them. And we also provides some discounts during festivals such as the Christmas day and the valentine’s day and the customer’s birthday.

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Gross margin on products

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Break-even analysis

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Business Plan

Market penetration

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Direct mail and telemarketing can be one of our distribution methods. We can provide delivering service if the customer make orders by telephone. But we will charge some additional fees if the distance is too far. We will also put the

information of our products on the internet, customers can make reservation on the internet such as QQ, MSN, Microblogging, and . InsertTextHere

Advertising and promotion

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Packaging and labeling

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Service and warranties

We can guarantee the quality of our products meets the requirements of relevant laws and regulations.

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Business Plan Trade shows

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Future markets

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Business Plan Operating and control systems

Administrative policies, procedures, and controls

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Documents and paper flow

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Business Plan

Planning chart

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Risk analysis

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Salvaging assets

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Business Plan Growth plan

New offerings to market

Capital requirements

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Personnel requirements

Exit strategy

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Business Plan

Financial plan

Assumptions

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