Financial Projection

Key Highlights

• Client Description: The client, the current owner of an existing restaurant in North End Boston, sought to open a second location in East Boston, similarly a European style cafe, serving small bites and beverages while broadcasting soccer from around the world.
• Industry: Food & Beverage
• Years in Operation: Pre-startup (Feasibility stage)
• Program: City of Boston
• Economic Development Outcomes: Creation of new jobs, improvement of local supplier engagement, and occupation of underutilized commercial properties. The presence of the new cafe also strengthens community vitality in East Boston by providing an accessible gathering space.

The Challenge

The Client worried about potentially lower foot traffic and different demographics in the new location negatively impacting profitability and breakeven, and sought realistic and conservative financial projections for risk assessment.

Services Sought: Financial Feasibility Financial Projections Model

What We Delivered

• Financial projections model (pro forma income and cash flow statements), for following 3 years out, on a monthly basis 
• Scenario Analysis determining upside case, base case and down side case for business 
• Breakeven Analysis outlining minimum revenue (on a per-hour or per-day basis) that must be generated by the business to cover operating expenses and loan repayments 

Client impact

• Tools for informed business decision making: Understanding how business decisions affect bottom line allow owners to adapt their strategy over time especially during slower seasons during this uncertain start up period
• Insights into break-even revenue points: Allows for better financial planning, risk assessment, strategy adjustment and decision making for sustainable business operations

Economic Development Outcomes

• Community & Ecosystem Impact: The new cafe not only creates new jobs, improves local supplier engagement, and occupies underutilized commercial properties, it also strengthens community vitality in East Boston by providing an accessible gathering space.