Founder: Damian Poznanovic Co-Founder: Kari Mortimer Partners: Cameron Lalonde & Kate Birmingham

1. Founder: Damian PoznanovicCo-Founder: Kari MortimerPartners: Cameron Lalonde& Kate Birmingham To provide superior customer service in a unique exotic environment that promotes fun and elegant atmosphere with unmatched ambiance

2. Company Overview • Liquid Lounge is a unique and exclusive lounge that moves away from a traditional night club scene by offering exquisite interior and unforgettable experience. • Liquid Lounge is a partnership company with a founder, co-founder and two partners that have a lot of experience in the industry. • The differentiating factor is the aquarium bar inside of the lounge as well as aquariums in different spots that complement the interior and ambiance. • The tables in VIP sections will also be aquariums with see-through tops and triple-layered glass. • The capacity of the venue is 7,200 sq feet, allowing a maximum of 350 guests.

3. Prototype of the Main Bar

4. Location • Liquid Lounge is located on 6361 Fallsview Boulevard in Niagara Falls, Ontario • Niagara Falls is still one of the world’s leading tourist destinations and it will continue to grow in that segment. • It is built on the rooftop of the new Hilton tower that is 52 stories high. • After an extensive research of the market and competitors, we agreed that this was the perfect location for our lounge.

5. Products and Services • Liquid Lounge offers a variety of exotic cocktails and classic martinis made only from finest ingredients. • A premium selection of wines, spirits, and beers is offered at reasonable prices. • The unmatched view of the falls will be as unforgettable as the experience you take home upon leaving our lounge. • Our employees offer nothing less than the exceptional service that will keep you coming back.

6. Prototype of Our Dance Floor

7. Primary Age: 35-50 Income: $75,000-$120,000 Occupation: White collar Marital Status: Single Education: College/University degree, MBA, PHD Secondary Age: 20-35 Income: $20,000-$55,000 Occupation: Blue collar Education: College/University degree Target Market

8. Market Research • There is definitely a demand for a unique and exciting lounge in Niagara Falls. • According to the National bar & Restaurant Association half of all new nightclubs fail within the first two years of operation, for the lack of experience or capital. • Liquid Lounge is a break from traditional bar scene. It will include exotic ambiance along with premium alcoholic beverages prepared by our mixologists and flare bartenders. • The aquarium theme has never been done in Niagara Falls before and we know that it will give us a competitive advantage over venues such as Dragon Fly and R5 Lounge. • Our competitors provide high level of service and beautiful interior, but they lack innovation and creativity. This is where we will differentiate ourselves with the aquarium theme.

9. Main Competitors

10. Main Competitors Cont’d

11. Advertising & Promotion • We will purchase few prime spots on specific radio stations relevant to our audience. • The billboard ad will also be placed on the corner of Stanley Ave & Ferry St since that is considered to be the busiest traffic area in the summer time. • We are tapping into social networks such as Facebook and Twitter to spread the word and establish relationships with our target market. • These mediums will bring us enough exposure for the Grand Opening. • We are mostly counting on a positive word-of-mouth advertising from our patrons.

12. Promotional Flyer

13. Advertising & Promotion Cont’d • We will get involved in local community events and give away free promotional items such as pens, brochures, USB key-chains, etc. • Once we get the exposure we will get into special internal promotions, such as prize give-aways, contests, brand promotions, etc. • Local hotels and restaurants will be given incentives to promote our venue to their guests and we are also considering cross promotion with some of the big hotel chains.

14. Legal Documents • We are seeking a loan of $2,000,000 for start-up purposes . • We are also putting down 25% of our own money which is $500,000. • The bank has given us 6.3% on a 10-year mortgage • The following documents represent our estimates and expectations in the first year of operation.

15. SLUSH FUND • From the $2,000,000 loan, we are putting aside $150,000 for our slush fund. • $150,000 will be enough to be put aside in case the winter season is slower then predicted, and the business from our local clientele is not generating the expected revenue. • The money will be used to pay the necessary bills, and to keep us in the business until we start generating revenues again.

16. ONE YEAR INCOME PROJECTION • Gross Sales……………………………………………………$2,500,000 • Cost of Goods Sold………………………………………. $990,000 • Gross Margin…………………………………………………40% • Total Fixed Expenses……………………………………..$560,000 • Total Operating Expenses………………………………$720,000 • Earnings Before Taxes…………………………………..$230,000 • Net Profit………………………………………………………$110,000

17. Pro Forma Cash Flow Statement • Total Cash Available………………………………………$315,000 • Total Variable Expenses…………………………………$70,000 • Total Fixed Expenses……………………………………..$145,000 • Total Operating Expenses………………………………$55,000 • Total Cash Flow…………………………………..………. $60,000

18. Prototype of Our Washroom Sinks Prototype of Bar Stools and Aquarium Table

19. PROTOTYPES VIP Private Booth Bar Stools

20. Relevant Experience in the Industry Founder: Damian Poznanovic • Work Related Experience: 5+ years of experience in hospitality and tourism industry in Niagara Falls. • Acquired Skills: Bartending, Supervising, Serving, Customer Relations Management, Marketing & Promotion, and Analytical Problem Solving Techniques • Main Expertise: Accounting and Financing

21. Relevant Experience in the Industry Cont’d Co-Founder: Kari Mortimer • 8 years of managing and running a family business that involved retail, sales, and customer service • Acquired Skills: Customer Service Expertise, Organizational and Communicational Skills • Main expertise: Sales and Supplier Channels

22. Relevant Experience in the Industry Cont’d Partner: Cameron Lalonde • Work Related Experience: 4 years of experience in Human Resources department at Hilton Niagara Falls • Acquired Skills: IT Communications, Hiring Protocols, Exceptional People Skills • Main Expertise: Market Research

23. Relevant Experience in the Industry Cont’d Partner: Kate Birmingham • Work Related Experience: 7 years of working as an account coordinator for Absolute Vodka • Acquired Skills: Brand Awareness, Tactical Promotional Strategies, Consumer Behaviour • Main Expertise: Marketing & Promotion

24. Prototype of Our Aquarium Tables

25. Grand Opening Date: Friday July 1st, 2011 • This date has been chosen based on the reason that the renovations to create the atmosphere needed for Liquid Lounge will take a year. • This is the 1st long weekend of the summer. July 1st is Canada’s holiday and July 4th is the United States, making the Niagara Falls a very high traffic area at this time. • A band will be playing from 6:00pm - 9:00pm on our grand opening weekend, with a different band each day. • From 10:00pm till 2:00am there will be a DJ playing a wide variety of music. • On Grand opening weekend there will be no entrance fee. • We are working with the hotel to get a discount rate for a one night stay during the grand opening weekend.

26. Prototype of the VIP Area

27. Company’s Future Goals • For the first five years we want to see how our lounge is doing before considering expanding in another market. • This gives us time to see how we fit into the market and generate more money for opening a second location. • We are expecting to be run at full capacity during the peak season in Niagara Falls, which is the summer months. • Liquid Lounge’s future venues is to have world recognized performers. • Create another revenue stream, possibly a banquet venue or tourist attraction.

28. SEE YOU SOON! Presented by: Damian Poznanovic Kari Mortimer Cameron Lalonde Kate Birmingham