123 Street

Camden, NJ 08101

July 23, 2002

Brendan M. Belcher

P.O.Box 123

Camden, NJ 08103

Telephone:

856-123-4567

Copy No. 1

Statement of Purpose

Stava Investments a seeks to contribute to the transformation of the cultural and physical landscape of Camden City with the development of habitable properties and the introduction of a restaurant featuring Caribbean Cuisine. We seek all the funding that is necessary to bring this idea to fruition. We estimate that this funding is $150,000.00. All funding will be used to purchase a mixed use structure and complete the appropriate renovations. A portion of the monies will be used to furnish and purchase the equipment and items needed to develop and open a take out restaurant and later a dine-in restaurant and gift shop boutique. It is expected that the business will produce a profit in the first year and increased profits are expected in subsequent years assuring a timely payback of the loan.

Company Background

Brendan Belcher, a native of Camden city saw the immense potential of the city within each abandoned building. He felt that with appropriate management and direction the abandoned squalor could be transformed into vibrant places of residence and business. With the state of New Jersey's renewed interest in the development of the city, the time was appropriate for reinvestment in Camden City's future. Stava Investments a real-estate investment company, founded in June 2002, was born out of the desire to improve and enhance the cultural and physical landscape of Camden City.

Currently there is an absence of dietary variety within the city of Camden. Research has indicated there are few cultural restaurants within the city. There is one soul food restaurant and one Mexican restaurant within 10 minutes of the proposed location. With the development of the city there will be increased activity and interest in the city. A variety of properties can be rehabilitated, sold and/or leased to prospective buyers and renters. Within one of these properties Portland Cottage a take- out Caribbean restaurant will be housed. As the city continues to flourish with the aid of the state and city governments it is anticipated that it will ultimately return to its former place of prestige. After Portland Cottage has been established it will be expanded include a dine- in restaurant that offers the taste, charm and ambiance of the Caribbean.

Mission Statement

Utilizing abandoned property to create habitable living and office space for the residential and business communities of Camden City and to provide access to the only restaurant featuring healthy, authentic Caribbean Cuisine available in the city of Camden. Our efforts seek to contribute to the overall development and revitalization of the city

Description of Business

Our endeavor is a double pronged approach. It is an investment in real-estate as well as the restaurant industry. We wish to acquire a mixed use structure in order to establish two separate vehicles for generating income and fulfill our mission statement to provide shelter and food for the people of Camden City. After renovating the appropriate site we will offer apartments for rent and open a take out restaurant.

Portland Cottage the name of the take out restaurant will give us an opportunity to place emphasis on the menu. A take out restaurant will not require a large amount of space or personnel. The structure will not require tremendous upkeep. We will offer guests modest seating arrangements. It will be our opportunity to introduce ourselves and our food to the city. We will offer a taste of what is to come and later a sample of what is available. Our hours of operation for Portland Cottage will be as follows:

11:00am-10:00pm M-Th, 11:00am-1:00am F-S, CLOSED-Sundays.

We estimate the structure will be ready and open for occupation in July of 2006 with Portland Cottage opening for business in September of 2006. Our current investor is Brendan Belcher. He will act as manager and buyer.

The Unique Concept

After Portland Cottage has won the support and interest of the community it will expand to form Jackson Bay an intimate experience in Caribbean Cuisine featuring authentic recipes from the island of Jamaica. Jackson Bay will offer the same items as Portland Cottage however it will be strictly a dine-in restaurant. Those who are in a hurry can continue to order take out from Portland Cottage.

Jackson Bay will be decorated with the look and feel of the Caribbean. It will feature paintings, sounds and definitely the taste. A dimly lit restaurant decorated with soft candles at each table and paintings with scenes from the Caribbean. It will seek to transport guests via their dining experience from the shores of Atlantic to those of the Caribbean Sea. Ultimately we will feature three stores, the third of which is called Portland Point which will offer the sale of genuine artifacts from the Caribbean, such as clothing, jewelry, art work and food items.

As our guests order their food from Jackson Bay and Portland Cottage they can tour our Caribbean boutique in order to view and purchase our wares. Portland Point will ultimately become a portion of the dining experience as diners will not only be able to taste Jamaica they will be able to see, touch and visit it as well. No such other experience currently exists within the Delaware Valley region. Also, the absence of restaurants that offer Caribbean cuisine makes this concept not only unique but also desirable.

Location

The mixed-use structure in the heart of the downtown area of the city Camden seeks to provide viable living spaces and ultimately three retail establishments. Camden city is poised to receive over 175 million dollars in aid from the State of New Jersey. This monetary assistance represents a tremendous interest and investment in transforming the poorest city in the state into a University City.

With Cooper Healthcare System, Our Lady of Lourdes Medical System, Robert Wood Johnson, Rider University, Rutgers-Camden, Camden County College this small city is teaming with an academic wealth that rivals cities twice its size. Camden City's location on the banks of the Delaware River provides an excellent position for commerce within the Delaware Valley. Camden also boasts the New Jersey State Aquarium, the Tweeter Center and the Camden Water Front. Although brimming with potential it has yet to be actualized. The property on in downtown Camden is currently a symbol of Camden City's demise, however our organization sees its potential to contribute to the city's resurrection.

Industry Trends

Apartment

Currently real estate is the prominent path by which individuals from modest means may augment their wealth. Real estate has a greater return than today's scandal riddled stock market. Despite the ebb and flow of various markets real-estate remains consistently profitable. Camden city has 79,000 residents. Between 1990 and 2000, the number of vacant housing units increased from 3,512 to 5,592, according to the 2000 Census. That means close to 19 percent of the city's 29,769 housing units are un-occupied . This also indicates that the equivalent number of housing units are available for redevelopment. Our organization sees this as a unique opportunity to invest in the city.

Restaurant

According to the 2002 industry forecast provided by the National Restaurant Association, restaurant sales in New Jersey is expected to increase by 4.6% to $8, 800,00.00 in 2002. If current trends continue an additional increase can be anticipated for the upcoming year.

Currently the average American household spends approximately 47% of their house hold budget eating outside of the home. Despite the turbulent economy Americans are turning to restaurants to provide great tasting food at an affordable price. Portland Cottage is the ideal opportunity to capitalize on the demands of rapid-paced lifestyle that allows many few hours to prepare home cooked meals. As America wages its war on obesity the concern for healthy eating will increase in years to come. In anticipation of this need, we will prepare our foods with low sodium and use seed based oils. Our menus will also feature a twist on the traditional Caribbean diet. We will offer jerk chicken and jerk shrimp salads as well as a variety of freshly prepared juices.

Other Resources

• Restaurant
• Lines of credit have been established with the following firms:
• Meat
• Food
• Wares/Equipment
• Professional services will be provided by the following firms:
• Accountant
• Attorney
• Apartment

Food and equipment suppliers, state their credit terms, Professionals: Lawyer, accountant, banker, insurance agency and consultants.

Management

Brendan Belcher the president with over 10 years experience in customer service and community development. Mr. Belcher is currently pursuing is BA in psychology at Rutgers, The State University of New Jersey. He has experience in the food service industry and knowledge of carribean culture.

Objectives and Financial Expectations

The immediate goal of the management is to generate a positive cash flow sufficient to meet all obligations of the business and generate a net profit prior to taxes of 11 percent of total sales. It is expected that this result will be achieved through creative marketing, and utilization of cost control techniques.

The long-term goal of the management is to contribute to the overall redevelopment of Camden City and to become one of the City's culinary and cultural landmarks, yielding an annual return on investment in excess of 25 percent to its investors.

Product and Services

Restaurant

Portland Cottage is unique to Camden City area. Guest will be served in a neat, clean, space that is reminiscent of a cozy roadside eatery in the Caribbean. Our message will be clear to transport our diners to the Caribbean via a wonderful dining experience. They will eat authentic cuisine featuring, stews, curries, and jerk seasoning recipes. Each entrée will be accompanied by plantains, a small salad and a choice of white rice or rice and peas or red beans. We will offer the well received meat and vegetable filled turnovers called patties. Our menu will feature sweet pastries called sugar buns and spice buns as well as authentic Jamaican sodas. Our recipes will be low in sodium and cooked with seed based oils.

Product Life Cycle

Restaurant

We anticipate that Portland Cottage will become a long term fixture within the community. Portland Cottage will have an indeterminate lifecycle, as long as its high standards of food and service are maintained. The theme of the Caribbean is trendy yet consistent. Like all business we will have to revise our products and services in order to remain competitive. Through continued market research and analysis we will remain abreast with market trends and the community. It is anticipated that due to normal wear and tear, the facility will require periodic maintenance and refurbishment.

Apartment

There will always be a need for housing. With the improvement of the city and its location we anticipate that housing in Camden city will become and remain highly desirable for many years to come.

Market Analysis

There are currently 79,000 residents in the city of Camden. There are five major centers of Learning. With visitors to the Tweeter Center and the New Jersey State Aquarium the restaurant will gain increased visibility. There are currently a limited number of restaurants out side of the take out Chinese food genre. There exists one national fast food franchise, one soul food restaurant and a variety of fried chicken restaurants, pizza stores, and a few bars which offer a dinner menu. The presence and success of these establishments indicates a market for restaurant foods, however it also indicates a lack of variety and the absence of Caribbean food.

Results of Survey

Competition and customers

Competition

Restaurant

Within the area, although there are myriad of Italian restaurants, rivaled number of Chinese food restaurants, bars and other chain or specialty stores, there remains very few which offer Caribbean Cuisine. Portland Cottage will provide take out Caribbean cuisine. Ultimately this take out restaurant is the fore runner for intimate dining space that seeks to transform dining in the area. Currently one restaurant in Camden city and few restaurants featuring Caribbean cuisine exists within the Philadelphia region. This restaurant would increase patronage to Camden city encouraging restaurant goers to return to the city.

Customers

Restaurants

The five colleges and universities, 4 health care systems, and City Hall provides a pre-existing base of customers within the professional, laborer and academic sectors. This customer base is ideal for offering, delicious, nutritious, affordable meals on the go and catering services for events and special occasions. Visitors to the New Jersey State Aquarium and Tweeter Center will also provide additional customers to Portland Cottage.

Apartment

For many students studying at the City's schools and individuals working in or outside the city decent affordable housing in the heart of The University City minutes away from Philadelphia and other major attractions will be a welcome sight

Marketing and Sales Planning

The professional and trade workers within the city are a primary target audience. We will market heavily to the professional sector. Offering, free delivery and quick lunches on the go. Added marketing features include placing orders via fax, phone or internet. Our establishment seeks to provide catering services to various businesses for all events. We will also advertise ready-made home cooked meals. Working moms can order meals from our restaurant and bring the taste of Caribbean food home to their families on any given night. We will encourage and maintain customers by handing out flyers that offer coupons with food at a discounted rate.

The student population is also a viable source of customers. We will offer these customers student discounts and student meal packages with the presentation of student ID. We will advertise our services via local papers e.g. the Rutgers- Camden's Gleaner and The Courier Post. We will also distribute flyers with coupons advertising our menus and any specials offered during the week.

In order to encourage and maintain sales Portland Cottage will offer buffets, where clients can taste multiple items on the menu for one low price. Our menu will initially feature a variety of items that are easily reproduced and in demand for the time of year. Although we will offer all items throughout the year our sales and marketing attempt will target our customer base according to the time of year. For example during the fall and winter we will offer specials with “chocolate tea” and soups. In the summer and spring our focus will shift to freshly prepared carrot juice and jerk chicken salads.

We will develop a mailing list of our customers reminding them of any upcoming specials, events or introductions to the menu.

Personnel

• Hours
• Days of business
• Style of Service
• Org Chart
• Personnel Schedule
• Estimated Payroll Costs

Contingency Planning

In the event that our apartments are not occupied by individuals within the city, we could market our residences as being highly affordable to individuals in nearby areas such as Philadelphia. Philadelphia is within walking distance of Camden and many may find a location in the newly developing Camden as a viable option. We may also seek out agencies with the state and city government that might have a need for residential areas.

In the event that the Caribbean cuisine is not received well we can expand the menu to feature more familiar foods with a nutritious angle. We can offer more American style foods like hamburgers prepared with lean meat, veggie burgers, and french fries prepared in seed based oils (e.g. olive and canola), wraps and meat as well as deli sandwhiches.

Loan Request and Anticipated Benefits

We are requesting a loan of $150,000.00. With these monies we will see improvement in the city of Camden.

Summary of Part One

Financial Projections and Supporting Data

Projected Costs for Business Start Up

Essential Equipment for Business Start Up

• Building ($100,000)
  • Mortgage
  • Updating
    • plumbing, heating, lighting, fixtures, floors internal and external appearance of structure
  • Licenses and permits
  • Trash cans, for recyclables and regular garbage
  • Appliances
    • stoves, refrigerator per apartment
• Restaurant ($50,000)
  • Rent
  • Insurances
  • Cooking Equipment
    • juicer, blender stove, oven, pots, pans, utensils, juicer blender
  • Spices and Seasonings
    • pepper, jerk seasoning, thyme, onions, garlic scallion, pimento, curry, salt,
  • Food items
    • chicken, shrimp, fish, flour, coco bread, spice bun, sugar bun, drops, cheese, beans, peas, rice, vegetables, fruit, wraps
  • Beverages
    • Ting, variety of D&G sodas, Fruit juice beverages, bottled water,
  • Restaurant Equipment-,
    • cash register, merchant account status, fax machine telephone, Refrigerator, Freezer, pens, pencils, notebooks, computer, printer
  • Utensils
    • permanent and disposable forks, knives, spoons, cups, plates, take out containers, paper bags
  • Restaurant Furniture
    • Tables and Chairs
• Licenses and Permit
• Advertising/Literature
• yellow pages, local papers, flyers, menus, business cards

Price List (Menu)

Entrees-each served with white rice or rice and peas and plantain and small salad

Soups

Beverages

Pastries and Baked Goods

Specialty items

Beverages