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CASH FLOW COMPLETION FORM

Your Name(s) ……………………………………………………………...…………………………………..

Current Address………………………………………………………………………………………………

Name of Pub ……………………………..……………………………………………………….…………..

Pub Address …………………………………………………………..……………………………………...

Pub Company…………………………………………………………..……………………………………..

Contact Tel. No…………….………………………………………………………..………………………..

Email ………………………………………………………………………..………………………………...

Date Completed...…………………………………………………………..………………………………...

By completing this form we will be able to complete a cash flow forecast for you. The Guide Figures are for information and you must estimate what you believe the figures will be for your specific pub. Turnover refers to Total Sales exc. VAT. Q1 to Q24 refers to Question Numbers at the back of this document. Please call your Account Manager………………………………on ………………………… if you need any help.

WHEN COMPLETE PLEASE POST THIS FORM IN THE MILESTONE SELF ADDRESSED ENVELOPE INCLUDED.

IF YOU HAVE COMPLETED ELECTRONICALLY PLEASE EMAIL TO ………………………………

CASH FLOW COMPLETION FORM

ANTICIPATED COMMENCEMENT DATE OF TRADE ______/______/ 20____

YOUR TAKINGS (REVENUE)

What do you think your annual turnover (Exc. VAT) will be for the following. Please enter details into the boxes.

Wet Turnover

(Beers, ciders, wines and spirits, soft drinks, tobacco and bar snacks) Q1

What gross profit do you expect from wet sales (wet sales less wet purchases)? Q2

Depends on selling price and beer sales v other drink sales (generally, the higher the beer sales % the lower the Gross Profit).

Type of Pub / Gross Profit % Guide
Town Pub with no Food / 45+%
Food Pub (50% wet, 50% food) / 50+%
Restaurant Pub (35% wet, 65% food) / 55+%

Dry Turnover Q3

(Food)

What gross profit do you expect from food (dry sales less dry purchases)? Q4

Type of Pub / Gross Profit % Guide
Town Pub with no Food / N/A
Food Pub (50% wet, 50% food) / 50+%
Restaurant Pub (35% wet, 65% food) / 60+%

Accommodation Turnover Q5

(letting rooms, B&B, etc)

What gross profit to you expect from accommodation?

Other Income

Telephones Q5

Machines (AWP, SWP, juke box, pool etc) Q5

Interest from bank account Q5

CASH FLOW COMPLETION FORM

We need to understand how much trade you will do each month.

Please complete the % split by month below. Take into account local seasonal factors such as holiday periods, student term times etc. If you do not complete this we will use the split already included.

Q6

Month / Jan / Feb / Mar / Apr / May / Jun / Jul / Aug / Sep / Oct / Nov / Dec / Total
Your estimate / 100%
Our standard estimate / 5% / 6% / 8% / 7% / 7% / 11% / 9% / 10% / 9% /
7% / 6% / 15% / 100%

CASH FLOW COMPLETION FORM

YOUR COSTS (OR OVERHEADS)

What do you think your annual costs will be for the following:-

Direct expenses Guide Figures £ per annum

Beer gas 0.5% of wet turnover

Ullage and pipe cleaning 2% of wet turnover

Equipment hire 1-3% of turnover Q9

Machine rental 1-3% of turnover

Employee costs

Bar staff See Staffing Planner Q10

Staff drinks and meals As per your plans

Premises costs

Commercial rent 10-14% of turnover Q11

General rates 3% of turnover Q11

Water rates 0.5% of turnover Q11

Cleaning 1-2% of turnover

Guard dog expenses Only if applicable

Garden and flowers Only if applicable

Electricity, gas and oil 1.5-6% of turnover Q11

Repairs

Repairs 1-3% of turnover Q12

Renewals 1-3% of turnover Q12

General administration

Printing postage and stationery 0.5% of turnover

Telephone 1.5% of turnover

Newspapers Only if applicable

Training costs Only if applicable Q13

CASH FLOW COMPLETION FORM

Guide Figures £ per annum

General insurance 2% of turnover

Sundries 0.5-1% of turnover

Motor expenses

Motor expenses 1-2.5% of turnover

Advertising and promotion

Advertising £1-2000 per year Q14

Entertainment Only if applicable Q15

Team expenses Only if applicable

Promotional food and drink Discuss with Milestone

Legal and professional costs

Stocktaking £1000 -£2000 per yr Q16

Professional fees £500 per year Q16

Legal fees £1000 set-up fees Q16

Accountancy & Payroll £3000 per year Q16

Maintenance

Renewals crockery, glass and kitchen utensils 1-4% of turnover Q17

Renewals uniforms 0.5-1% of turnover Q17

Renewals soft furnishings, menu cards & napkins 0.5-3% of turnover Q17

Other financial charges

Bank charges Up to £250 per year

Credit card charges 0.5-1% of turnover Q18

CASH FLOW COMPLETION FORM

YOUR FINANCIAL COMMITMENT

Drawings – monthly requirement Q19

(cash to live on, personal loans, mortgages, etc)

This should not be more than 75% of your anticipated profit to allow for the payment of VAT and Tax.

Loans

Bank loan Brewery loan Other loans

Amount loaned Q20

Interest Rate

Monthly repayment

Car HP – monthly repayment

Initial ingoing costs Q21

(Deposit, Fixtures and fittings, stock, etc)

Personal funds available (Your financial commitment)

(Cash in bank or building society or other savings

you can invest into the business)

NB: Money introduced into the business may be verified by the Pub Company as part of Money laundering Regulations.

CASH FLOW COMPLETION FORM

The questions below are to aid completion of the Sections on pages 2-6

1.  What is the current wet turnover and what is your target? (What is the current customer base/pub style? If a change of customer base/pub style, how and where from? What are the local demographics – suburban, town centre, council estate, countryside?)

2.  What Gross Profit % do you expect from wet turnover (net income less cost of wet purchases)? What have you based this figure on? Will there be any opening offers or ongoing discounts?

3.  What is the current food offer and what will be your offer and target? (What is the pub’s history? Do the plans conflict with wet sales? Is the kitchen and equipment operational? Are there enough covers to achieve the figures? Is the menu appropriate to the pub’s style and location?)

4.  What Gross Profit % do you expect from food turnover (net income less cost of food purchases)? What have you based this figure on? Has each menu item been costed?

5.  Will there be any other income (accommodation, machines, door income etc)? Are the plans appropriate for the pub? Do the plans conflict with other plans – diners don’t like being next to pool tables or dart boards. Have costs been budgeted for?

6.  What seasonal factors will affect your takings? (Ensure that these have been accounted for – summer increase for gardens / tourists or decrease if residential and customers on holiday, student term times etc.)

7.  What could prevent you from achieving these targets? (Smoking legislation – may reduce wet sales or make food sales less viable? Have competitors and their reactions to changes been considered? Is planning/licensing required? What contingency plans are there – one partner staying/going back to employment, raising further capital etc.)

8.  What are your planned opening times? (Are all licensed times being efficiently utilised? Have extended hours been granted? Are the opening times acceptable to the surrounding area?)

9.  What equipment do you need to hire/rent? (Have glass washers, ice machines, kitchen equipment, sanitary facilities etc. been considered?)

10.  What will be your staffing levels? (Does this support the level and type of trade – the higher the standard of food service the higher the staff costs? Is it practical – a chef cannot work all shifts 7 days per week?). See Staffing Hours Plan on Page 12.

11.  Have you received premises costs (rent, rates, utilities etc.) and what are they? (May be obtained from Pub Company, existing publican, internet or local authority.)

12.  What is the state of repair/decoration of the pub, kitchen (catering facilities must be registered and approved by the EHO), accommodation and garden? Ensure spending plans reflect the need to update and any change in level or type of trade. (Catering equipment is very expensive and domestic equipment won’t last.). This is especially important if you are taking a FRI (Full Repair & Insuring) lease.

13.  What experience do you and/or your partner(s) have in the licensed or retail trades? (Are current, trained staff being retained? Ensure relevant training costs and/or support have been allowed for.)

14.  How are you going to promote your new business? (Has advertising been considered and if so have the costs been budgeted for? Are there any opening offers, 2-4-1, BOGOF etc., and have these been budgeted for? Do “A” boards, banners etc. need to be purchased? Is there any Pub Company spend?)

15.  Are you going to provide any entertainment (disco, karaoke etc. - to breakeven you will need to increase income by an extra 3-4 times the cost of the entertainment). How about extra facilities for customers (swings, slides, bouncy castles etc. – these are expensive and have to be approved re Health & Safety)? Do the plans relate to the type of customer wanted and have the costs, included any licences/insurances, been budgeted for?

16.  What professional services and advice will you require? (Ensure that start up and ongoing costs, e.g. stocktaking, have been considered.)

17.  How much maintenance is needed to achieve your plans? (Make sure that changes in the offer have been budgeted for – more crockery etc. needed for more food sales).

18.  What payment methods are you going to accept and have charges been considered? (If cheques have security processes been considered – Equifax or similar for hotels, if credit cards what charges will there be and what terminals will be used – chip & pin for security, if no credit cards will customers have the funds to pay for meals in a food led establishment?)

19.  What personal outgoings do you have that need to be covered? Do you have children (child care, schooling, college, maintenance) do you own any properties (mortgages, loans) do you have any vehicle costs, hobby costs etc.)

20.  How will your ingoing costs be met (Savings, house sale, loan etc.?) If a loan - where from and what will be the interest rate and repayments?

21.  What will be the initial costs (Fixtures & Fittings, stock, upfront rent, pub co. deposit, etc.)?

22.  After paying for the ingoing costs what funds will you have left? Is there enough working capital to fund initial running costs and development plans. Can you afford not to take any drawings initially if sales do not meet targets?

23.  Do not forget that you will need cash for VAT that has to be paid every quarter (VAT received on turnover less VAT paid out for purchases – usually around 8-10% of Sales) and for Personal tax, based on the business’s profit.

24.  Although this is only a one year plan do not forget to plan for future business building and your aspirations. Ideally, in conjunction with your accountant, you will produce a revised cash flow for each subsequent year of trade.

STAFFING HOURS PLAN

Employees / Mon / Tues / Wed / Thurs / Fri / Sat / Sun / Total
BAR
Manager
Staff
Cellar Person
Glass Collector
Other
FOOD
Chef
Assistant
Chef
Kitchen Porter
Waitress
Other

NB The below is a rough guide to the level of wage cost you could expect in your business.

No Food 8-12% of turnover

Food Pub 15-20% of turnover

Restaurant 20-25% of turnover

N.B. When costing the plan you must take into account the Minimum Wage, local availability/pay and additional costs (National Insurance, holiday pay etc.).

This document is for guidance only and you may incur additional costs to those mentioned.

In no way do any figures represent a guarantee of future income or costs.