MEETING NOTES: Greg Patterson, CPA
Date: [Last Thursday]
Re: Second location financial planning

ATTENDEES: Me, Sarah, Greg

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STARTUP COST ESTIMATES:

Greg's range: $150,000 - $200,000 total

Breakdown:
- Leasehold improvements/buildout: $60,000-80,000
  (depends heavily on condition of space)
- Equipment (espresso, brewing, fridges): $45,000-55,000
- Furniture and fixtures: $15,000-20,000
- Initial inventory: $8,000-10,000
- Permits and licenses: $3,000-5,000
- Working capital (3 months): $25,000-35,000
- Marketing/launch: $5,000-8,000
- Contingency (10%): $15,000-20,000

NOTE: Drive-thru would add $40-60K to buildout

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BREAK-EVEN ANALYSIS:

Assumptions Greg used:
- Monthly rent: $6,500
- Labor: 35% of revenue
- COGS: 28% of revenue
- Other operating: 15% of revenue

Break-even monthly revenue: ~$42,000
That's about $1,400/day

Location 1 does ~$2,100/day currently
New location would start slower - maybe 60-70% of L1?

Timeline to break-even: 6-12 months (his estimate)
Timeline to profitability: 12-18 months

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FUNDING OPTIONS DISCUSSED:

Option A: SBA Loan
- Can get up to $250K
- Interest rate: ~8-9% currently
- Requires personal guarantee
- Need to show L1 profitability (we can)
- Approval time: 60-90 days

Option B: Investor/Partner
- Give up equity (10-25%?)
- No debt service
- Lose some control
- They might have valuable expertise
- Greg knows some people...

Option C: Self-fund from L1 profits
- Would take 18-24 months to save enough
- No debt or equity dilution
- Slower but safer
- Could do combo (save + small loan)

Option D: Combination
- SBA loan for 60%
- Our capital for 40%
- Greg recommends this

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TAX IMPLICATIONS:
- Keep as LLC or create separate entity?
- Greg says separate entity cleaner but more paperwork
- Depreciation benefits for new equipment
- Can deduct startup costs over time

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WHAT GREG NEEDS FROM US:
1. Last 2 years P&L statements
2. Current year projections
3. Personal financial statements
4. Business plan with projections

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ACTION ITEMS:
[ ] Pull P&L statements for Greg
[ ] Create 3-year projection model
[ ] Research SBA loan requirements
[ ] Make list of potential investors

Greg's closing thought: "Numbers look good for expansion, but make sure you're ready operationally, not just financially."

NEXT MEETING: 3 weeks, review projections together
