Part One: Description and Analysis of the Business Situation

A - B. Introduction and Self Analysis
This document has been prepared as a method of proposing my new business to you - my prospective financial lending partner. In the community of Terre Haute, new business rumors spread very rapidly. Thus, this project has been brought to an external lending institution in order to expedite the project while limiting the lending competition. I consider this proposal to be very innovative and exciting. I look forward to meeting with you. The contents contained herein must please remain confidential from unaffiliated parties and business networks of Terre Haute, Indiana.

I am the owner of J. Zuerner Enterprises, Inc., the "holding company" I created a few years ago for my other businesses. JZ Consulting, my primary business, provides Terre Haute with innovative computer software solutions for specialized business situations as well as software for the home and large industry. Quite often these solutions involve large network implementations, data migration/management, spread-spectrum database applications, and very expensive operating hardware. JZ Consulting takes pride in being Terre Haute's leader in business systems.

Our community is very diverse and exciting. It is home to individuals from all walks of life. A great portion of our local economy is stimulated by the progress of our industrial businesses and manufacturing facilities. I feel that my interest and life-long dedication to technology has allowed JZ Consulting to grow into a very large and specialized business. I am proud of the fine individuals who are working within the company to introduce and maintain our clients solutions. The company's existing position within our market is dominant and still continues to grow at a manageable pace. It is my continued objective to assist in the community's utilization and understanding of the abilities of computers and "the Internet." Put simply, I love to work with people, I love to share ideas, and I truly love to assist others in making their lives more successful while using the most modern equipment available.

Our city has a definite need for increased technological awareness. This proposed business would integrate the social aspect of business with the technology provided by JZ Consulting. It is my goal to create a dining facility for high school students, college students, business professionals, and large groups that will integrate computer technology with high-class (not high-priced) dining. It is with this goal in mind, that I propose EntréeDine, Inc., a company which will soon become an everyday name among individuals in the business, education, and community sectors. Customers will enjoy the features of a cutting-edge computer facility while interacting with others inside a modern restaurant and private meeting facility. Our extremely courteous staff will create a sensational setting that will encourage additional visits from our patrons.

This proposal has been carefully formulated based upon my experience in growing JZ Consulting to its present size. I am always looking for new ways to challenge myself while "selling" solutions to individuals. As discussed in this proposal, I plan to finance EntréeDine by loan on securities held by J. Zuerner Enterprises, Inc. The company will grow rapidly and will develop into a full-fledged profit-generating corporation within three years. The forecasts contained herein are very conservative.

I plan, with complete dedication, to make EntréeDine a first-class dining and meeting "tech-facility." I look forward to our meeting to review this proposal. If you have any questions, comments, or concerns please feel free to call my direct number at (812) 555-4056, or e-mail entreedine.com.

C. Analysis of the Trading Area, Customer, and Location
Presently, Terre Haute has a great number of restaurants. However, few truly cater to the business professional. In fact, only one business in Terre Haute specifically targets these individuals. Homecourt, previously known as Larry Bird's Boston Connection, has one area limited to satisfying business dining - but lacks private rooms and technology. In fact, I have been in the club when various community business people have literally argued over whose "turn" it is to use the only private room.

Examples of the targeted "business professional" would include a financial loan officer who would like to take a client to lunch - yet receive a formal and confidential PowerPoint presentation from the client. Or, a Sony/Digital Audio Disc Corporation executive hosting a group touring from another plant - such as a parent exchange plant in Japan. In the latter case, the executive may want to make a special multi-media presentation including digital video, Microsoft PowerPoint slides, and financial information. Presently, the executive must host the technology portion of the presentation within their office facilities and choose to either have a meal catered - or depart for a meal afterwards. I propose that EntréeDine, through the proper mix of style, technology, dining facilities, and service provide the perfect setting for our clients. Individual hookups for laptop computers will also be available in each of the rooms. These individuals are "hungry" for a different approach to the common business dining experience. Our unique and continued enhancement of technologies and services will allow for a successful product/service mix.

Individual reservations and large-group bookings, along with "come as you are" seating, will assure facility usage at near one hundred (100) percent utilization. The first floor setting will also be accommodating to students from Terre Haute's four universities and three nearby high schools during all hours. Single business professionals will also choose to use the first floor, whereas business professionals hosting meetings may use the second floor for their breakfast, lunch, or dinner appointments. The first floor setting will facilitate research, quiet personal studying, and friendly meetings accented by light snacks, beverages, or full-course meals. Our insured success is based upon the acceptance of all patrons, and thus, this plan attempts to satisfy as many potential patrons as possible.

EntréeDine's location is central to all Terre Haute customers and other industrial clients traveling from Robinson, Marshall, and Paris. These cities are just west of Terre Haute and located within Illinois. The city's retail commerce sector has one of the strongest per-capita revenue bases in the country. This is predominantly because individuals of neighboring communities travel to Terre Haute to fulfill their shopping needs. An expanded geographic base and varied demographic characteristics mean that EntréeDine is positioned for excellent growth, easy access, and frequent attention by our target market. A very large percentage of our targeted customers will not have to drive out of their way to use our facility. The location is perfect and will definitely appeal to the entire sector of individuals who work or live near its location. The location is extremely safe, located in the heart of the city's financial, insurance, and investment business district. EntréeDine will be practically on the campus of the largest Terre Haute University, Indiana State University. With main dorms and halls located within blocks, students will enjoy the "club" atmosphere of the first floor. Other aspects of value-added location, or utility, are located on page six (6) within the section titled marketing-focused "place" section.

D. Proposed Organization
The company will be chartered as a (non-S-elected) corporation, with seventy (70) percent stock issued to J. Zuerner Enterprises. The remaining thirty (30) percent of non-issued stock will be held for later transactions and possible partnering agreements. The necessary articles and by-laws have already been drafted are may be completed for filing within a short period of time.

Justification for the use of a corporate holding company is based upon the arrangement of staff, advisers, and the board of directors. Key individuals from our economic, social, and political system serve as advisers to J. Zuerner Enterprises. Our businesses can also share one centralized staff for bookkeeping, accounting, and secretarial services. Decreased costs of insurance, increased availability of financial planning, protection against various liabilities, and the sharing of the same building all provide excellent and unique benefits - simply due to the holding company configuration. These resources allow for a unique opportunity to make this highly specialized business work! Personal liability insurance is held through J. Zuerner Enterprises for all managers and board of director members.

The staffing needs will be minimal initially and expand slowly as necessary. The below personnel chart outlines the paid staff positions.

Personnel Needs / Staffing Table - Management and Consulting within the Finance Section

I have been very lucky to hire the services of J. Jackson, a retired Marriott Food Services manager. J. Jackson has tremendous experience in catering to cross-sector markets. As the local Marriott branch manager, he has experience dealing with businesses, schools, and individuals on a routine basis. I am thankful to have found a great consultant. The existing management team at JZ Consulting is not reliant upon my regular presence, and thus, due to the integration of the two businesses, I will be capable of dividing my time, as needed, between the two companies. I will closely supervise and direct the initial management team for EntréeDine. J. Jackson will be given the option to become an employee or "re-retire," at his option, within six to nine months after startup, as per our existing consulting contract. I will be paid by the holding company based upon annual returns and the revenues generated from the monthly maintenance contract.

Part Two: Marketing Plan

A. Proposed Product/Service
EntréeDine will provide three tiers of service for our patrons. These include a (first floor) restaurant-style coffee shop in conjunction with a soup, sandwich, and snack bar; ten (second floor) private meeting rooms; and a large (third floor) partition-able conference facility.

The first floor will be arranged to seat approximately seventy-five patrons. The layout will include four 72" high-resolution video screens displaying news and financial information for a decidedly all-business ambiance. Each "bar style" position and individual table will feature an IBM touch-screen terminal providing the patron with high-speed Internet access to stock quotes, electronic mail, cable and satellite television, and other Web-based information. These terminals will also channel the appropriate audio feeds to in-table speakers connected to the room's digital video screens; thus, providing the optimum acoustics for individual channel clarity. These information services will be provided on a ten-minute per $1.00 spent on food purchase basis. Additional time may be purchased for $.25 per minute.

The second floor will be configured as ten private meeting rooms. Individual sponsors have already been targeted for each room. The sponsor may place their company logo only on the outside door of the room and will paint / decorate the room according to their respective business. For example, a company manufacturing compact discs may decorate the room with a painted mural of CD-ROMs and digital video discs (DVDs). Each room will feature a fully equipped Pentium 450 workstation, wall integrated 32" digital video liquid-crystal display, and an extremely high quality BOSE ACS-3 sound system. The rooms will maintain a professional image, sleek integration of technology, beautiful woodwork and comfortable seating arrangements. The rooms vary in size and the pricing for sponsorship varies respectively as per the below "tier" system.

Tier Pricing Scheme - "Lifetime" Pricing Negotiations May be Feasible

The third floor will not be arranged in any fixed pattern; rather, the layout will be designed for easy conversion into many different floor plans. Video projection will be possible through rear projection and in-ceiling mounts. The upper floor will be wired for information transfer. Additionally, it will be easy to convert into a large lab arrangement for special training seminars and satellite-based video-conferencing capability for globally spanned board meetings.

JZ Consulting can provide these technologies to EntréeDine at a reduced price due to existing affiliations and labor discount options. JZ Consulting has been testing Toshiba's active matrix display modules for many months. As an incentive for our feedback, Toshiba has agreed to provide us with panels at fifty-percent below cost rates, thus allowing EntréeDine to receive pre-release technology at a significantly reduced market price. The labor and implementation resources JZ Consulting will provide make the project more feasible than any other potential competitor to EntréeDine.

B. Proposed Pricing Policies
The only "club" based membership luncheon/dinner business catering to the business community is Homecourt - formerly known as Larry Bird's Boston Connection. As discussed earlier, the business is limited to a static menu and only one meeting room. As a quick comparative analysis, the Boston Connection charges $333 (Larry Bird's jersey number is 33) for a membership - and average prices for meals. Thus, the enclosed market comparison and the stated financial projection would support a $500 per year membership fee to floors two and three.

Members receive a free 20 minute Internet usage period per $2.00 purchase on the first floor. Normal customers, in planning, would receive 20 minutes of usage for $1.00 at the time of purchase. Additional time may be purchased for terminal usage on the ground floor. Thus, the average business member may have a bagel with a cup of coffee for breakfast, read their e-mail, check their stock quotes - possibly even place some pre-market trades, then head to work. On average, based upon less than 20 minutes of Internet time, this sample meal would cost the member $4.80 and would be charged against their J. Zuerner Enterprises credit card.

Second floor pricing will be contingent upon computer usage and necessary equipment. Average meeting base fees involving a simple presentation would run $35.00 including the equipment rental. Individual meals will cost, on average, $15.00 each. Specific convention / conference requests will be quoted on an individual quote-by-quote basis. Customers will have the option of applying for and utilizing a J. Zuerner Enterprises Credit Card via American General Finance. This card will only be recognized within my companies, however, it will provide a thirty (30) day non-interest bearing payment period for authorized patrons. An electronic deposit of the purchase amount will be posted to EntréeDine's bank account within twenty-four (24) hours of the transaction. Thus, the company can maintain excellent cash flow and not be required to handle any billing issues.

Other sources of revenue include the sponsorship of the ten rooms, initial memberships, and special conference equipment rental. The sponsorship of rooms will assist in the lowering of startup costs. The rooms will be resold following the three year period for which they were purchased. Existing owners may upgrade / downgrade or renegotiate the contracts for longer periods, or, companies may resell their existing rooms to other businesses, as they desire. The individual owner of the room may decorate the room as to their desire; hopefully, they will decorate the room to reflect the products or services their individual company provides.

Part 3 outlines the methods used for revenue forecasting and calculation. Additionally, the income statement clearly justifies the cost-of-sales associated with the revenues generated by food sales.

C. Personal Promotion
Potential room sponsors will be contacted. I believe the concept of "room sponsorship" on the second floor will be extremely well received. Their contracts will be drafted and signed prior to the opening of the facility. The advertising client, however, will be expected to pay only a deposit prior to the opening of the facility. The existing base JZ Consulting clients will serve as a terrific group to target for memberships and sponsorship. The feedback collected from these initial members (via surveys filed by my staff during conversations) will assist in the design of the non-personal campaign. I will conduct all personal-selling efforts for the first year. Contingent upon needs results, I would consider the hiring of a dedicated sales account manager, scheduler, and special events planner.

D. Non-personal Promotion
It is my belief that the business will not require a tremendous amount of non-personal promotion. Interviews with the two television stations and radio stations will not be difficult to receive due to our company's existing relationships with these networks. In our town new businesses or changes in existing business always generates substantial publicity. The chamber of commerce has the capability of placing reservation requests for business groups or individuals visiting Terre Haute. Thus, their directory and phoning visitors are very useful in our non-personal promotion sources. The J. Zuerner Enterprises company maintains a full-page ad within the Terre Haute Journal of Business. Our companies, predominantly JZ Consulting, utilize this space on a rotational basis. EntréeDine will become a key partner in the rotation. The Tribune Star will also print full color ads per our technical designs and hopefully provide publicity through new-business interviews and respective articles. The EntréeDine logo will be placed on J. Zuerner Enterprise's letterhead as well as our own. Special sales promotion "gifts" will be presented at random as we greet new customers. Also, JZ Consulting will use the facility for the entertainment of prospective clients, existing clients, and employee training meetings.

E. Place
Presently, J. Zuerner Enterprises owns an entire city block in downtown Terre Haute. The real estate is paid for in full, and J. Zuerner Enterprises pays all taxes and utility fees, under the management agreement of JZ Consulting. A similar agreement will be drafted for EntréeDine - and will thus reduce the amount paid by JZ Consulting. This amount has been estimated within the $4,000 management fee paid back to the holding company (cited in the financial section). The existing building fills one-half of the lateral area of the lot, leaving the balance for parking and delivery of goods. Our existing three-story building is only being utilized at a 50 percent rate. This vacant area must be renovated. J. Zuerner Enterprises purchased the building as a new home for JZ Consulting upon the transfer of a large retail store. The square footage was initially immense - we have now grown nicely into our "half" of the building. JZ Consulting was quickly converted into an office scheme, and thus, I do not foresee any difficulties in converting the other half of the building into EntréeDine. The basement will be divided among the kitchen, meal preparation area, and the management offices. Both the service elevator and customer elevator are still operational. These fixtures will become active elements of the dining facility. Very little renovation outside of cosmetics will be necessary. The finance section includes quoted pricing from the general contractor for these services.

As indicated in the trade area, the location for EntréeDine is, quite literally, perfect. The building is located within (a one-minute) walking distance from Indiana State University, the new Center City community project, the Vigo County School Corporation administration building, Terre Haute First National Bank, Citizens Bank of Western Indiana, Merchant's Bank, AG Edwards, and Prudential Plaza. The building is four blocks from Highway 41, approximately three miles from Interstate 70 and about 15 minutes from State Road 46.

There is only one other "non-fast-food" restaurant within five blocks. CrossRoads serves approximately two hundred (200) patrons daily for lunch with an average meal price of $5.60 - $1.35 greater than my estimated average meal price.

Part Three: Justification of Financial Figures

Proposal for Installment Loan - Startup Capital