LLC.

A Unique Cookie Experience

Patty Smith

Willis David

Kelly Benhart

Jim Dormady

Laurie Ladd

The components of this business plan hClve been submitted all <1 confidential basis. it
cannot be reproduced. stored or copied In any form By accepting delivery of this plan
tile recipient agrees to return trus cOfJY of the plan Do not copy. fax. reproduce 01

distribute Without permission.

 TABLE OF CONTENTS

Executive summary 1
Cookie Creations, LLC .3
• Mission
• Value Statement
• Ambience
• Cookie Creations Analysis
The Market , 5
• History of the Market
• Industry Trends
• Competition
• Advantages over Competition
Product and Services 7
• Pricing
• Distributing
Marketing Strategy 9
• Target Market
• Advertising and Promotions
• Marketing Budget
Operations 10
• Training Course
• Duties of Employees
• Competitive advantages
• Suppliers
• Checkpoints
Management Structure /2
Financial Plan /4
• Equity/Payback Plan
• Earnings Distribution
• Break-even Analysis
• Exit Plan
Development 15
Appendix A -Financial Reports i
Appendix B -Works Cited ii
 Executiye Summary

Company
Imagine a cookie store with 1,620 possible cookie choices. Cookie Creations, LLC will
provide a unique cookie experience where the customer has the option of selecting dough and
choosing the add-ins to create a personal cookie. Customers will watch and enjoy the aroma of
their creation as it bakes in a conveyor type oven in a few short minutes.

Financing
Cookie Creations, LLC will be a limited liability company (LLC) financed equally by its
five members: Kelly Benhart, Willis David, Jim Dormady, Laurie Ladd, and Patty Smith. The
company will seek a loan for $50,000 and each member will contribute $10,000. Cookie
Creations, LLC will consider borrowing for major future expansion.

Mission/Philosophy
Cookie Creations, LLC's focus is to provide guests with a customized quality cookie that
they create for a fair price. Customers will be surprised at the wide array of cookie
combinations. Cookie Creations, LLC will strive to meet or even exceed guests' expectations in
bringing them a unique cookie experience. The goal will be to build a positive reputation and
clientele in the Helena and surrounding communities for delicious cookies, fun atmosphere, and
friendly customer service.

Target Market
Cookie Creations, LLC targets families with children, married and single, males and
females with income levels from $10,000 and up, and individuals with special dietary needs
within Lewis and Clark County. Cookie Creations, LLC will target businesses within a five-ten
minute walk from the store's location and driving distance of seven miles. The company will
also target businesses and groups in the Helena area that have meetings and functions, offering a
delivery service of cookies and beverages. Six accounts with local restaurants have been
established.
Products and Services
Cookie Creations, LLC will offer an assortment of cookie sizes, one 5-inch, three 3-inch,
and six 2-inch cookies along with individually chosen coffee, tea, and cocoa choices, milk and
bottomless coffee. There are four regular, three sugar-free and one gluten-free dough types.
Dough enhancers include malted milk and instant coffee powders. Add-in ingredients consist of
varieties of nuts, candies (regular and sugar-free), candy chips, and dried fruit. In-house services
include rooms set apart for birthday parties and meetings. Wireless Internet is featured in one of
the meeting rooms. The Cookie Cart (company van) offers free delivery to the restaurant
locations and off-site functions.

Marketing Strategy
The primary focus is to create loyal customers through personal attention and satisfaction
to meet first years' projected sales. Cookie Creations, LLC seeks expansion into other markets
and distributions to increase first years' projected sales by 10%. Competitiveness will be
maintained by keeping costs at entry levels through competitive shopping and retaining
personnel. Cookie Creations, LLC will maintain a competitive advantage by expanding the
product line to include cookie cakes, other dough types, lactose-free dough, and seasonal
ingredients. Cookie Creations, LLC will seek equipment options to increase operating efficiency
to support added sales.

2
 Cookie Creations, LLC

Mission

Cookie Creations, LLC's focus is to provide guests with a customized quality cookie that
they create for a fair price. Customers will be surprised at the wide array of cookie
combinations. Cookie Creations, LLC will strive to meet or even exceed guests' expectations in
bringing them a unique cookie experience. The goal will be to build a positive reputation and
clientele in the Helena and surrounding communities for delicious cookies, fun atmosphere, and
friendly customer service.
Value Statement
Cookie Creations, LLC members are determined to have a positive involvement in the
Helena community by providing knowledgeable management skills, friendly staff, excel1ent
service, and a fun fil1ed atmosphere where customers create their own cookies. Cookie
Creations, LLC wil1 contribute to the community by establishing partnerships with local
nonprofit organizations.
Ambience
In order to strengthen Cookie Creations, LLC fun image, the store features glass top
tables and a special write-on wall for busy hands to create works of art. If younger patrons want
to display their work for others to see, they have the option of coloring on 8 Y2 x II - inch paper
or pre-printed pictures, which will be placed under the glass on the tables.
Birthday parties will be scheduled during non-peak hours. The parties wil1 feature themed
decorations, an age-appropriate craft and/or games with small prizes and a five-inch or six two­
inch cookie selections along with milk or cocoa. The birthday parties will be held in one of the
meeting rooms.
Cookie Creations, LLC features a dedicated room equipped with WiFi access. Both
meeting rooms are furnished with six-foot long (adjustable height) tables and comfortable
seating for business meetings, study groups, and birthday parties.

3
Cookie Creations SWOT Analysis

• Strengths

Knowledgeable management staff

Friendly customer service
Fun way to make a cookie
Student study/WiFi dedicated room
Sufficient capital to cover start-up and operating costs for six months
Three-year lease that includes all utilities

• Weaknesses

Start-up Company
New bakery for Helena area
Unknown Company name
Seasonal slowdowns
Finding the right cookie clerks for this highly intensive service business

• Opportunities

Growth of wholesale venue

Introducing a new twist on desserts in the Helena area
Cater to diabetics, dieters and gluten-intolerant individuals
Within easy walking distance of many uptown businesses

• Threats

Competition
Consumer desire of quantity versus quality and choice
Inability to procure some popular add-ins (seasonal ingredients)

The knowledgeable Cookie Creations, LLC team will work hard together in order to provide
excellent customer service. Cookie Creations, LLC allows the customers to design their own
cookies, which differentiates from other competitors. Cookie Creations, LLC is a bakery that
offers a new twist on dessert.

4
 The Market

History of the Market

The oldest, currently operating bakeries in Helena are Sweetgrass Bakery and Donut
Hole of Helena which opened in 1984. There are a total of thirteen bakeries in Helena, five are
grocery store bakeries.
Product lines in the grocery store bakeries consist of cakes, cookies, doughnuts, and
breads. One bakery's product line is breads and the remaining bakeries offer a variety of baked
goods; some operate as cafes and eateries.
Industry Trends
The latest trends in the cookie industry are customers wanting healthier and more
nutritious products with on-the-go convenience-sized packaging'. The aging population and
concerns over obesity are driving the move towards cookies that are sugar-, gluten-, and
cholesterol-free and fortified with iron, calcium, vitamins and minerals.
Gourmet and custom-made cookies are gaining in sales and customers. Bakery sales rose
2
12 percent in 2004 Consumers are more conscious of their health and nutritional needs, which
are creating a niche for gourmet and custom bakeries catering to their customer's desire for a
fresher and healthier product.
Competition
Direct competitors for Cookie Creations, LLC are the local bakeries. These cookies are
fresh-baked, using standard recipes. Some stores will do custom orders for large quantities. The
direct competitors' cookie prices vary in range.
The indirect competitors are the restaurants, grocery, big box stores and businesses
offering a selection of dessert options. The grocery and big box stores also sell mass-produced
boxed cookies with a variety of price ranges.
Advantages over competitors are freshly baked cookies, uniquely created by the customer
in a warm, friendly environment. Cookie Creations, LLC's edge is the freshness and
customization of the cookie that is not available at any bakery in the Helena area.

5
 Product and Services

Cookie Creations, LLC will offer eight dough flavors and tasteful ingredients including a
variety of nuts, chips, fruits, and chopped candy for 1,620 possibilities (with three add-ins).
The customer may select a dough flavor including:

• Vanilla (also sugar or gluten-free)

• Chocolate (also sugar-free)
• Peanut Butter (also sugar-free)
• Oatmeal

Customers will have the option of adding various nut types including:

• Peanut
• Walnut
• Macadamia
• Hazelnut
• Cashew

Customers may also choose from an assortment of chips including:

• Chocolate
• Peanut Butter
• Butterscotch
• Mint
• White Chocolate
• Toffee

Cookie Creations, LLC will feature the Favoritz line consisting of:
• Triple Peanut Butter
• Oatmeal Double Butterscotch Pecan
• Triple Chocolate Chip
• Oatmeal Raisin Date Walnut cookies

Cookie Creations, LLC will offer seasonal add-ins for customers to enhance their unique
cookie experience. Cookie Creations, LLC will also offer customers a variety of chopped
candy such as Snickers'", M&M's®, peanut butter cups, and Mounds.®Fruit add-ins may consist
of raisins, dates, cranberries, pineapple, coconut, maraschino cherries, papaya, mango and
apricot. There will be a variety of at least 22 add-ins including instant coffee and malted milk
powder for the customers to make their own customized Cookie Creation.

6
 Cookie Creations, LLC will provide "a unique cookie experience" with exceptional
service at a moderate price. All cookies are trans-fat free and are made with real butter, pure
vanilla and Wheat Montana" flour. Customers with special diet needs may choose from a
selection of sugar-free and gluten-free cookies.
The Cookie Creation process is unique, as the cookie chef will scoop the selected dough
and place it onto wax paper and the add-ins will be combined with the dough while the customer
watches. The cookie chef will place the cookie dough in the conveyor type oven, which will
produce a Cookie Creation in a matter of minutes.
There will also be a variety of drinks ranging from bottomless coffee and single-serve,
individually chosen coffee, tea, cocoa choices and milk available for the customer to purchase.
For the customer on the go, cookies will be individually wrapped in wax paper bags and stacked
in special cookie sized brown bags.

7
 Marketing Strategy

Target Market
Cookie Creations, LLC's target market will be families with children, male and female
adults with income levels from $10,000 and up, diabetics, dieters, and gluten-intolerant
individuals within Lewis and Clark County. The company will target businesses within a five-ten
minute walk from the store's location and driving distance within seven miles. Cookie Creations,
LLC will target businesses and groups in the Helena area by offering a delivery service of
cookies and beverages for meetings and functions. The six restaurant accounts will feature the
Favoritz line. Internet ordering will be available at the end of six months to target a wider range
of customers.
Pricing
Cookie Creations, LLC offers a unique cookie experience and product. The base price of $2.50
includes the option of one large, three medium or six small (bite size) cookies along with three
add-in ingredients. Each additional add-in is $0.25. There will be a variety of drinks available
for the customer. Prices for single-serve coffee, tea, milk and cocoa are $0.75 each and
bottomless coffee is $1.50. Cookie Creations, LLC's pricing objectives utilize cost-plus pricing.
Distribution

Cookie Creations, LLC will consist of a store front operation which would be the primary
location. Restaurant accounts, phone and internet orders will be promptly prepared and made
available for pick up or delivery.
Cookie Creations, LLC will invest in a van, "The Cookie Cart," which will allow Cookie
Creations, LLC to deliver to restaurants and businesses in the surrounding Helena area. "The
Cookie Cart" will also be available for special events throughout the year and will be stocked
with selected ingredients for customers to create a cookie or choose from a selection of favorites.
"The Cookie Cart", which can carry a portable conveyor oven, will provide the same unique
cookie experience that is guaranteed by Cookie Creations, LLC. Special events include "Alive
@ Five", local Stampede and Fair, bazaars, and youth sporting events.

Advertising and promotion

For the first week oftraining, Cookie Creations, LLC will give one free cookie per
customer and will deliver free cookies to businesses in the downtown area and the six restaurant
accounts.
Cookie Creations, LLC will offer frequent buyer cards; if the customer buys ten cookies,
the 11th is free. Cookie Creations, LLC will hold drawings during the grand opening, and the
winners will be presented with certificates for free cookies and drinks.
Marketing Budget
Cookie Creations, LLC's marketing expense for the first year will be approximately
$10,365. Expense includes the cost of advertising techniques, billboards, television, radio,
newspaper coupons (monthly), flyers, and frequent buyer cards.

Monthly Marketing Plan Budget - First Year

Advertising Vehicle Frequency Yearly Cost
Bresnan communications 36 spots per month $ 4,201
Yellow Pages Yearly $ 540
SW MT Radio Network 33 spots per month $ 2,400
Helena Independent Record One coupon per month $ 1,624
Billboard Ad First 2 months $ 1,600
Total $10,365

9
 Operations
Cookie Creations, LLCwill have its grand opening in January of2008. The store will be
open Monday through Saturday II :00 a.m. to 9:00 p.m. Accommodations can be made for
special events outside of normal operating hours (9 - lla.m. or 9 - IIp.m.).
Training Week
The week prior to opening employees will train for customer service (order taking,
preparation, and sale close), register responsibilities, cleaning, stocking and nightly closing.
Cookie Creations, LLC will advertise free cookies for this training week to family, friends and
local businesses and deliver free cookies to the six restaurant accounts. As a learning
organization, employees will be encouraged to become proficient in other areas such as
inventory, purchasing, baking for restaurant accounts and dough preparation in order to cover for
sick and vacation days.
Safety training for employees and members will be conducted during training week.
Laminated operation and safety rules will be posted by each piece of equipment (mixer, ovens).
Sanitation placards will be displayed by the sink and preparation areas. Dough will never be
handled with bare hands because all processes use scoops, spoons and flat paddles to transfer and
mix dough and add-ins.
Employee Responsibilities
The Cookie Creations, LLC employees' primary objective is to display friendly, prompt,
and accurate service. After greeting customers, employees will describe the cookie dough, add­
in, and size options. Once the order is placed the cookie chef will set the pre-measured dough on
the wax paper square and mash the add-ins into the dough. They will scrape the unbaked cookie
into the appropriate stainless steel ring (on parchment paper) and place in the oven. The cookie
chef will process the sale and retrieve the cookie from the oven, place on a paper plate or in a to­
go bag. The cookie chef will remind the customer of the buy lO-get-one-free card and facilitates
duties concerning the card. Other responsibilities include stocking of supplies, cleaning and
organizing the cookie preparation area.

10
Members' Responsibilities
Weekly meetings will be conducted with employees for the first 3 months and thereafter
once a month in order to correlate employee and management suggestions including information
received from the customer comment cards. Members will meet weekly to discuss the quality of
the product and the focus of customer satisfaction and the unique experience. Members will
meet monthly to review sales and process procedures to determine higher profit operating
methods.
Suppliers
Cookie ingredients, beverage suppliers and equipment suppliers include several different
local sources (Wheat Montana) and internet supply distributors (dried fruits, nuts, beverage
pods).
Inventory control measures will be met through weekly-advertised sales purchases and
volume discount pricing. Bulk items such as packaging will be purchased in monthly quantities.
Two of the suppliers offer weekly delivery for perishable items. Dried fruit and nuts will be
ordered on-line to meet monthly usage projections. Seasonal ingredients (macadamia nuts) will
be ordered in bulk and frozen for longer availability.

II
 Management Structure

Cookie Creations, LLC will operate as a limited liability company (LLC), and will
function as a flat organization structure with one full-time operations manager, four part-time
managers and three employees. Decision-making authority will rest with the managers
(members) but suggestions from employees will be welcomed and encouraged.
As a limited liability company, Cookie Creations, LLC will avoid double taxation
because income flows to its members who are responsible for paying income taxes on their share
of the net income. There is also flexibility in profit-loss allocation. The liability is limited to
members' investment and members are allowed to participate in the day-to-day operation.
Cookie Creations, LLC will create and submit to the secretary of state, articles of organization
and the operating agreement.
• Operations Manager - Patty Smith
Patty is earning an Associates of Applied Science in Accounting Technology (Small
Business Management Technology emphasis), and a Bachelor of Applied Science in
Business Management. She has ten years experience in customer service, three years as an
office manager, and has held a variety of positions requiring organizational skills. Patty will
be responsible for the day-to-day operations.
• Inventory and Distributions Manager - Willis David
Willis is earning an Associates of Applied Science in Accounting Technology. He has
nineteen years of experience in the area of acquisition, distribution and accountability of
supplies. Willis will be responsible for delivery, internet sales and inventory.
• Payroll Accounting Manager - Laurie Ladd
Laurie is earning an Associates of Applied Science in Accounting Technology. She has
twenty years 0 f accounting experience related to the banking industry and ten years of
customer service. Laurie will be responsible for payroll functions including deposits for
taxes.
• General Accounting Manager - Kelly Benhart
Kelly is earning an Associates of Applied Science in Accounting Technology. She has over
five years experience in the accounting field including accounts receivables, payables,
payroll, cash receipts, cash disbursements, payroll taxes, and end of year payroll taxes. Kelly

12
 will be responsible for general bookkeeping, managing accounts receivable, payable, cash
disbursements, and cash receipts.
• Maintenance and Financial Manager - Jim Dormady
Jim is earning an Associates of Applied Science in Business Management. He has five years
of management experience in the financial industry. Jim will be responsible for regular
maintenance and custodial duties. Jim will seek investment opportunities for profits with
financial advisors.
• Cookie Chefs
One full-time and two-part time employees will be hired with responsibilities of customer
service, making cookies and general preparation.
Consultant
• Ryan Domier is a senior credit analysis/loan officer at Mountain West Bank. Ryan's
primary responsibility includes the review of business plans.

13
 Financial Plan
Cookie Creations, LLCprojected net sales for years 1,2, and 3 are $186,666, $202,245
and $253,169 respectively. Projections for gross profit for years I, 2, and 3 are $136,561,
$148,015, and $182,664 correspondingly. Net income projections for years 1,2, and 3 are
$29,271, $43,160 and $60,519 respectively.
Equity/Payback Plan
Financing consists of $10,000 from each of the five members, and borrowing $50,000 for
a total investment of $100,000. The debt equity will be used for start-up costs including vehicle
and equipment purchases. The $50,000 loan will be through a local bank at 9.5% interest payable
over five years. The monthly payment is $1050.09.
Earnings Distribution
Any member working in excess often hours per week (starting in July 2008) will be
compensated at $lOlhour. This will be added to affected members equity and then paid out as
members' distribution on a monthly basis. Ten percent of yearly profit will be evenly divided
among members.
Breakeven Analysis
Break-even point for a cookie priced at $2.50 is $5,688 which is equivalent to 2,275
cookies sold per month and 88 cookies sold per day. Break even is determined based on the total
fixed cost of$2,912 with a variable cost of$1.22.
Exit Plan
Members may choose to withdraw their membership from Cookie Creations, LLC, with
their portion of the owner's equity offered to the existing members. Remaining members can
offer to absorb or sell the membership to interested investors.

14
 Developmen t

Cookie Creations, LLC will be open for birthday parties with appropriate aged
crafts/games/prizes, business meetings, student study groups, wedding and baby showers and
other functions.
Product Development
At the end of the first six months Cookie Creations, LLC will introduce 8-inch frosted
and decorated cookie cake desserts and frostings as a new add-in.
At the end of the first year Cookie Creations, LLC will introduce high-energy dough,
lactose-free dough and canine cookies.
Seasonal/Holiday products will include fudge, pumpkin cookies with orange butter cream
or cream cheese frosting (Thanksgiving), decorated almond sugar cookies (Valentine's Day), and
cookie bouquets (Mother's and Father's Day).
Future Expansions
At the end of six months, Cookie Creations, LLC plans include an internet site.
At the end of each year Cookie Creations, LLC will incorporate two additional outside accounts.
At the end of three years, further expansion plans include opening Cookie Creations, LLC in
Missoula.

15
 Appendix A

Cookie Creations, LLC

Income Statement Projections
Year Ending December 31,2008
January February March April MaV June July August September October November December Totals
INCOME
Net Sales
Cookies Se'es $11,957 $15,229 $14,281 $14,608 $15,000 $16,219 $14,760 $15,294 511,199 $11,920 $13,662 $15,077 $189,206
Beverage Sales 1,200 1,560 1,536 1,512 1,560 1,680 1,560 1,560 1,104 1,188 1,440 1,560 $17,460
NltlSales $13,157 $16,789 $15,817 $18,120 $1S,li80 $17,899 $16.320 $16,8&4 $12,303 $13.108 $16,102 $18,637 $186,666

COGS· Cookies $3,109 $3,960 $3,713 $3,798 53,900 $4,217 53,836 53,976 $2,912 $3,099 53,552 $3,920 $43,994
COGS ­ Beverages 420 546 53B 529 54B 5BB 546 54B 3B6 '16 504 5.6 $6,111
Tctal COGS 53,529 $4,506 $.4,251 $4,327 $4,446 $4,805 $4,384 $4,522 $3,298 $3,515 $4,056 $4,466 $50,105

Grose Profit $9.B26 $12,283 $11,588 $11,193 $12,114 $13,094 $11,936 $12,332 $9,006 $9,593 $11,046 $12,111 $136,661

OPERATING EXPENSES
AdVertising $3,800 52,200 $475 $485 5500 $540 5490 5505 5370 $400 $300 5500 $10,365
Coupons Redeemed 1500 1,985 1,230 1,280 1,300 1,420 1,280 1,330 910 990 1,160 1,300 $15,665
Equipment Depreciation BOB BOB BOB 60B 606 B06 B06 606 606 606 BOB BOB $7,272
Operating Insurance 63 B3 B3 B3 B3 63 B3 63 63 B3 63 B3 $756
Worker's Comp Insurance 450 0 0 315 0 0 315 0 0 315 0 0 $1,395
Wages & Salaries 3000 3,254 3,040 3,488 3,596 3,927 3,537 3,669 2,545 2,744 3,236 3,615 $39,650
Payroll Taxes 330 35B 334 384 396 432 3B9 404 2BO 302 358 396 $4,362
Telephone 100 100 100 100 100 100 100 100 100 100 100 100 $1,200
Rent 1200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $14,400
Delivery 35 35 35 35 35 55 70 BO 100 100 125 125 $630
Cookie Cart 463 4B3 4B3 4B3 4B3 4B3 4B3 'B3 'B3 4B3 463 4B3 $5,796
Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 $1,200
Loan Interest 396 391 3B5 3BO 375 370 364 359 353 34B 342 337 $4,400
Total Expentet $11,883 $10,n4 $8,051 $8,898 $8,764 $9,296 $8,991 $8,899 $7,110 $7,750 $a,011 $a,827 $101,291

Net Income (Lots) ($2.2361 $1,509 $3,515 $2,a94 $3,360 $3,798 $2,939 $3,433 $1,895 $1,843 $2,916 $3,344 $29,211
 Appendix A

Cookie Creations, LLC

Income Statement Projections

Year Ending of December 31, 2009

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Totals

INCOME
Net Sales
Cookie Sales $44,720 $49,780 $44,676 $44,060 $183,236
Beverage Sales 4,647 5,253 4,641 4,568 $19,109
Net Sales $49,367 $55,033 $49,317 $48,628 $202,345

COGS - Cookies $11,627 $12,943 $11,616 $11,456 $47,641

COGS - Beverages 1,626 1,839 1,624 1,599 $6,688
Total COGS $13,254 $14,781 $13,240 $13,054 $54,330

Gross Profit $36,113 $40,252 $36,077 $35,574 $148,015

OPERATING EXPENSES
Advertising $1,480 $1,650 $1,480 $1,460 $6,070
Coupons Redeemed 4,270 4,780 4,270 4,200 $17,520
Equipment Depreciation 1,818 1,818 1,818 1,818 $7,272
Operating Insurance 189 189 189 189 $756
Workers Comp Insurance 450 315 315 315 $1,395
Wages & Salaries 10,712 12,111 10,699 10,529 $44,051
Payroll Taxes 1,178 1,332 1,177 1,158 $4,846
Telephone 300 300 300 300 $1,200
Rent 3,600 3,600 3,600 3,600 $14,400
Delivery 350 375 400 425 $1,550
Cookie Cart 1,449 1,449 1,449 1,449 $5,796
Miscellaneous 300 300 300 300 $1,200
Loan Interest 976 924 870 816 $3,586
Total Expenses $25,796 $27,919 $25,697 $25,443 $104,856

Net Income (Loss) $10,317 $12,332 $10,380 $10,130 $43,160

 Appendix A

Cookie Creations, LLC

Income Statement Projections

Year Ending of December 31, 2010

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Totals

INCOME
Net Sales
Cookie Sales $48,592 $56,158 $48,544 $47,866 $201,160
Beverage Sales 12,237 14,448 12,764 12,560 $52,009
Net Sales $60,829 $70,606 $61,308 $60,426 $253,169

COGS - Cookies $12,634 $14,601 $12,621 $12,445 $52,302

COGS - Beverages 4,283 5,057 4,467 4,396 $18,203
Total COGS $16,917 $19,658 $17,089 $16,841 $70,505

Gross Profit $43,912 $50,948 $44,219 $43,585 $182,664

OPERATING EXPENSES
Advertising $1,825 $2,120 $1,840 $1,815 $7,600
Coupons Redeemed 4,660 5,420 4,650 4,590 $19,320
Equipment Depreciation 1,818 1,818 1,818 1,818 $7,272
Operating Insurance 189 189 189 189 $756
Worker's Comp Insurance 450 315 315 315 $1,395
Wages & Salaries 13,543 15,958 13,661 13,443 $56,605
Payroll Taxes 1,490 1,755 1,503 1,479 $6,227
Telephone 300 300 300 300 $1,200
Rent 3,600 3,600 3,600 3,600 $14,400
Delivery 375 400 375 425 $1,575
Cookie Cart 1,449 1,449 1,449 1,449 $5,796
Miscellaneous 300 300 300 300 $1,200
Loan Interest 765 703 644 584 $2,696
Total Expenses $29,698 $33,324 $29,700 $29,423 $122,145

Net Profit (Loss) $14,214 $17,624 $14,519 $14,162 $60,519

 Appendix A

Cookie Creations, LLC

Monthly Cash Flow Projections

For Year Ended December 31, 2008

January February March April May June July August September October November December TOTAL
CASH RECEIPTS
Income from Sales
Cookie Sales $11,957 $15,229 $14,281 S14,806 $15,000 $16,219 $14,760 $15,294 $11,199 $11,920 $13,662 $15,077 $169,206
Beverage Sales $1,200 $1,560 $1,536 $1,512 $1,560 $1,660 $1,560 $1,560 $1,104 $1,188 $1,440 $1,560 $17,460
Total Cash from Sales $13.157 $16,789 516,817 $16,120 $16,560 $17,889 $18,320 $16,864 $12.303 $13,108 $15,'02 $16,637 $188,666
Income trom Financing
Interest Income $163 $166 $180 $HID $202 $215 $221 $229 $232 $234 $241 $2,276
Start-up Loan SSO,OOD
Owner's Equily $50,000 $50,000
Total Cash from Financing $100,000 $183 $168 $160 $190 $202 $215 $221 $229 $232 $234 $241 $52,276

TOTAL CASH RECEIPTS $113,157 $16,952 $15,965 $16.300 $16,750 $18.101 $18,535 $17,076 $12,532 $13,340 $15,338 $16.878 $238,942

CASH DISBURSEMENTS
Inventory (Cookies) $3,109 $3,980 $3,713 $3,796 $3,900 $4,217 $3,636 $3,978 $2,912 $3,099 $3,552 $3,920 $43,994
Inventory (Bevelilge) $420 $546 $538 $529 $546 $568 $548 $546 $388 $416 5504 5546 $6,111
AdVertising $3,800 $;2,200 $475 $465 $500 5540 $490 $505 $370 $400 $300 $500 $10,365
Coupons Redeemed $1,500 $1,965 $1,230 $1,2£0 $1,300 $1,420 $1.280 $1,330 $910 $990 $1,160 $1,300 $15,665
Operating Insurance 563 563 $63 $63 $63 563 563 563 563 563 $63 $63 $758
Workman's Comp Insurance $450 $315 $315 $315 $1,395
Wages & Salaries $3,000 $3,254 $3,040 $3,486 $3,596 $3,927 $3,537 $3,669 $2,545 $2,744 $3,236 $3,615 $39,650
Payroll Taxes $330 $356 $334 $364 $396 $432 $389 $404 $260 $302 $356 $396 $4,362
Telephone 5100 $100 $100 $100 $100 $100 $100 $100 5100 $100 $100 5100 $1,200
Rent $1,200 $1,200 $1,200 $1,200 51,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $14,400
Delivery $35 $35 535 535 $35 $55 570 560 $100 $100 $125 $125 $630
Cookie Cart $483 $483 $463 $483 $463 $483 $483 $483 $463 $463 $463 5463 $5,796
Miscellaneous 5100 5100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
Loan Principle $854 $659 $665 $670 $675 5B60 $666 $691 $697 $702 $706 $713 $6,200
Loan Interest $396 $391 $365 $360 $375 $370 $364 $359 $353 $346 $342 $337 $4,400
Member Distribu1ion $1,200 $1,200 $1,200 $1,200 51,200 $1,200 $7,200
Dividend Paymen1s $2,927 $2,927
Startvup Costs $6,000 $6,000
Capital Purchases $42,664 $42,664
TOTAL CASH DISBURSEMENTS $84,324 $15,333 $12.381 $13,290 $13,269 $14,175 $14,681 $14,708 $11.899 $12.681 $13.429 $11,621 $211,334

NET CASH FLOW $48,833 $1,619 $3.824 $3.011 $3,481 $3,926 $1,874 $2.389 $833 $778 $1,901 1$649) $21,608

Opening Cash Balance $46,633 $50,452 $54,076 $57,067 $60,566 $64.494 $66,369 $86,736 $69,571 $70,350 $72,257

Cash Receipts $113,157 $16,952 $15,965 $16,300 $16,750 $16,101 $16,535 $17,075 $12,532 $13,340 $15,338 $16,678

Cash Disbursements $64,324 $15,333 512,381 $13,290 $13,269 $14,175 $14,861 $14,706 $11,699 512,581 $13,429 $17,527

ENDING CASH BALANCE $48,833 $50,452 $54,078 $57.087 $80,568 $84,494- 566,369 $68,736 589.571 $70,350 $72,257 $11,608

 Appendix A

Cookie Creations, LLC

Quarterly Cash Flow Projections

For Year Ended December 31, 2009

1.t Quarter 2nd Quarter 3rd Quarter 4th Quarter TOTAL

CASH RECEIPTS
Income from Sales
COOkie Sales $44,720 $49,780 $44,676 $44,060 $183,236
Beverage Sales $4,647 $5,253 $4,641 $4,568 $19,109
Tolal Cash from Sales $49,367 $55,033 $49,317 $48,628 $202,346
Incomefrom Financing
Interest Income $716 $768 $841 $895 $3,220
Owners Equity $0
Start-up Loan $0
Total Cash from Financing $716 $768 $641 $895 $3,220

TOTAL CASH RECEIPTS $60,083 $66,801 $50,168 $49,623 $205,666

CASH DISBURSEMENTS
Inventory (Ccosies] $11,627 $12,943 $11,616 $11,456 $47,641
Inventory (Beverage) $t ,626 $1,839 $1,624 $1,599 $6,688
Advertising
$1,480 $1,650 $1,480 $1,460 $6,070
Coupons Redeemed
$4,270 $4,780 $4,270 $4,200 $17,520
Operating Insurance
$189 $189 $189 $189 $756
Workman's Cornp Insurance
$450 $315 $315 $315 $1,395
Wages & Salaries
$10,712 $12,111 $10,699 $10,529 $44,051
Payroll Taxes
$1,178 $1,332 $1,177 $1,158 $4,846
Telephone
$300 $300 $300 $300 $1,200
Rent
$3,600 $3,600 $3,600 $3,600 $14,400
Delivery
$350 $375 $400 $425 $1,550
Cookie Cart
$t ,449 $1,449 $1,449 $1,449 $5,796
Miscellaneous
$300 $300 $300 $300 $1,200
Loan Principle
$2,174 $2,226 $2,280 $2,334 $9,014
Loan Interest
$976 $924 $870 $816 $3,586
Member Distribution
$4,200 $4,200 $4,200 $4,200 $16,800
Dividend Payments
$4,316 $4,316
Start-up Costs $0
Capital Purchases $0
TOTAL CASH DISBURSEMENTS $44,882 $48,533 $44,769 $48,648 $186,829

NET CASH FLOW $5,201 $7,268 $5,388 $877 $18,735

Opening Cash Balance $71,608 $76,809 $84,078 $89,466

Cash Receipts $50,083 $55,801 $50,158 $49,523
Cash Disbursements $44,882 $48,533 $44,769 $48,646
ENDING CASH BALANCE $76,809 $84,076 $89,466 $90,343
 Appendix A

Cookie Creations, LLC

Quarterly Cash Flow Projections

For Year Ended December 31,2010

lsi Quarter 2nd Quarter 3rd Quarter 41h Quarter TOTAL

CASH RECEIPTS
Income from Sales
Cookie Sales $48,592 $56,158 $48,544 $47,866 $201,160
Beverage Sales $12,237 $14,448 $12,764 $12,560 $52,009
Talai Cash from Sales $60,829 $70,606 $61,308 $60,426 $253,169
Income from Financing
InterestIncome $903 $978 $1,088 $1,168 $4,137
Owner's Equity $0
Start-up Loan $0
Total Cash from Financing $903 $978 $1,088 $1,168 $4,137

TOTAL CASH RECEIPTS $61,732 $71,584 $62,396 $61,594 $267,306

CASH DISBURSEMENTS
lnventory (Cookies) $12,634 $14,601 $12,621 $12,445 $52,302
Inventory (Beverage)
$4,283 $5,057 $4,467 $4,396 $18,203
Advertising
$1,825 $2,120 $1,840 $1,815 $7,600
Coupons Redeemed
$4,660 $5,420 $4,650 $4,590 $19,320
Operating Insurance
$189 $189 $189 $189 $756
Workman's Camp Insurance
$450 $315 $315 $315 $1,395
Wages & Salaries
$13,543 $15,958 $13,661 $13,443 $56,605
Payroll Taxes
$1,490 $1,755 $1,503 $1,479 $6,227
Telephone
$300 $300 $300 $300 $1,200
Rent $3,600 $3,600 $3,600 $3,600 $14,400
Delivery $375 $400 $375 $425 $1,575
Cookie Cart $1,449 $1,449 $1,449 $1,449 $5,796
Miscellaneous
$300 $300 $300 $300 $1,200
Loan Principle
$2,385 $2,447 $2,506 $2,566 $9,904
Loan Interest
$765 $703 $644 $584 $2,696
Member Distribution
$6,000 $6,000 $6,000 $6,000 $24,000
Dividend Payments
$6,051 $6,051
Start-up Costs $0
Capital Purchases $0
TOTAL CASH DISBURSEMENTS $54,247 $60,614 $54,421 $59,947 $229,229

NET CASH FLOW $7,485 $10,970 $7,975 $1,647 $28,077

Opening Cash Balance $90,343 $97,828 $108,798 $116,774

Cash Receipts $61,732 $71,584 $62,396 $61,594
Cash Disbursements $54,247 $60,614 $54,421 $59,947
ENDING CASH BALANCE $97,828 $108,798 $116,774 $118,420
 Appendix A

Cookie Creations, LLC

Balance Sheet Projections

As of December 31,2008

ASSETS
Current Assets
Cash $71,608.00
Inventory 705.00

Total Current Assets $72,313.00

Equipment
Furniture/Fixtures $4,000.00
Baking Equipment 18,884.00
Vehicle 20,000.00
Less:Accum. Dep. - Furniture 700.00
Less:Accum. Dep. - Baking Equipment 3,576.00
Less:Accum. Dep. - Vehicle 3,000.00

Total Equipment, Net $35,608.00

Total Assets $107,921.00

LIABILITIES and MEMBER'S EQUITY

Liabilities
Loan Principle $41,800.00

Total Liabilities $41,800.00

Member's Equity
Membe~s Equity $50,000.00
Retained Earnings 16,121.00

Total Membe~s EqUity $66,121.00

Total Liabilities and Member's Equity $107,921.00

 Appendix A

Cookie Creations, LLC

Balance Sheet Projections

As of December 31,2009

ASSETS
Current Assets
Cash $90,343.00
Inventory 70500

Total Current Assets $91,048.00

Equipment
Furniture/Fixtu res $4,000.00
Baking Equipment 18,884.00
Vehicle 20,000.00
Less:Accum. Dep. - Furniture 1,400.00
Less:Accum. Dep. - Baking Equipment 7,152.00
Less:Accum. Dep. - Vehicle 6,000.00

Total Equipment, Net $28,332.00

Total Assets $119,380.00

LIABILITIES and MEMBER'S EQUITY

Liabilities
Loan Principle $32,786.00

Total Liabilities $32,786.00

Member's Equity
Member's Equity $50,000.00
Retained Earnings 36,594.00

Totai Member's Equity $86,594.00

Total Liabilities and Member's Equity $119,380.00

 Appendix A

Cookie Creations, LLC

Balance Sheet Projections

As of December 31, 2010

ASSETS
Current Assets
Cash $118,420.00
Inventory 705.00

Total Current Assets $119,125.00

Equipment
Furniture/Fixtures $4,000.00
Baking Equipment 18,884.00
Vehicle 20,000.00
Less:Accum. Dep. - Furniture 2,10000
Less:Accum. Dep. - Baking Equipment 10,728.00
Less:Accum. Dep. - Vehicle 9,000.00

Total Equipment, Net $21,056.00

Total Assets $140,181.00

LIABILITIES and MEMBER'S EQUITY

Liabilities
Loan Priniciple $22,882.00

Total Liabilities $22,882.00

Member's Equity
Member's Equity $50,000.00
Retained Eamings 67,299.00

Total Member's Equity $117,299.00

Total Liabilities and Member's Equity $140,181.00

 Appendix A

Financial Statement Assumptions

Within one block of the business the traffic count is 12,455 vehicles per day on Last
Chance Gulch and in the opposite direction on North Park Avenue, approximately I Y, blocks
from the business, the traffic count is 10,432 daily.' The CDC reports that of all ages and
nationalities 7% of the population is afflicted with diabetes 4 • Percentage of diabetics (7%) times
the Helena population (26,000) totals 1,820 potential customers. Incidents of celiac disease
(gluten intolerant) are I in 133 people.'
-­
1sr Year Sale Assumptions

he-Sales Projection Quantity Total

I Cookies
Counter Sales 180 sold per day $146,014
-
Birthday parties 2 per week with average of 6 children $ 2,600
e-c----­
Meetings 3 per week with average of 8 people $ 3,744
--=:-­
Restaurant Accounts 6 accounts per week $ 16,848
I Total Cookies Sales $179,206
Beverages ] 40 percent of number of cookies sold $ 17,460
-­

Total Sales $186,666

• Advertising expense is 3 percent of net cookie sales

• Coupon redemption is based on 15 percent for the first month and 10 percent for the
following months.
• Equipment, furniture, and vehicle depreciation is based on a 5-year, straight-line
depreciation schedule. Salvage value is $1,000, $500, and $5,000 respectively.
• Operating insurance is based on insurance agent quotes.
• Wages are based on an hourly rate of $8 to $9 for part-time, full-time respectively.
• Payroll taxes are based on the standard percentage totaling 30.65.
• Rent including all utilities paid is a monthly total of $1,200.
• Shipping and telephone expenses are based on average quotes received from vendors.
• Vehicle expenses are based on average fuel cost, maintenance and insurance.
• Membership distribution is a $10 hourly rate for time contributed in excess often hours
 Appendix B

Works Cited

I Mintel International Group and Specialty Food Magazine

2 Modern Baking. "Retailers Offer Fresh Advantage". Modern Baking. Vol. 20, No. I (January
2006), p, 18. 3 April 2007 http://modernbaking.bakery-net.com/articleIl0928

J Godolphin, Sid. Trimac Realty. Telephone Interview. 24 Apr 2006.

4 National Diabetes Fact Sheet United States, 2005 Centers for Disease Control. 26 Nov 2006
http://www.cdc.gov/diabetes/pubs/pdf/ndfs 2005.pdf

5 National Digestive Diseases Information Clearinghouse (NDDlC). 2004 National Institute of

Diabetes and Digestive and Kidney Diseases (NIDDK) National Institute of Health. 26
Nov 2006 <http://digestive.niddk.nih.gov/ddiseases/pubs/celiac/index.htm>