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Document Information

Document ID:	BUSINESS PLAN
Reference:
Version:	Final Draft – May 26, 2020
Prepared for:	Banks, Grant Providers, Investors
Prepared by:

Cover letter

May26, 2020

– Business Plan

To Whom It May Concern

On behalf of NAME -ABCD, we are pleased to submit this business plan for your consideration. This document will help you to understand what we are aiming to do with our business by providing you with complete information within a variety of detailed sections.NAME -ABCD is looking forward to the Opportunity to work with you. Please feel free to call or contact me via e-mail for any clarification on this document.

Thank you in advance for your consideration.

Yours Sincerely,

Patrice Joyce Tuwairua

1 Executive Summary:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen Will serve speciality doughnuts, quality coffee and our signature menu item will be a piece of organic fried chicken paired with one of our speciality doughnuts (a play on the classic Chicken & Waffles). The speciality doughnuts, for example, will be old fashioned glazed, maple & bacon, Oreo, fruity pebbles, cinnamon toast crunch & bacon, etc.

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen have decided to set our prices on the variable criterion so we will offer higher rates than the average doughnut shop probably $2-$3 a doughnut unless purchased in bulk.

Donuts can be eaten at any time, at any place and — these days — with just about anything. While the treatment is still the perfect coffee pairing, now it’s also the bun on a chicken sandwich or a grilled cheese.

Beyond retailing quality and affordable items in our cafe, we will ensure that our customer care is second to none. We know that our customers are the reason why we are in a business which is why we will go the extra mile to get them satisfied and get what they are looking for whenever they visit our cafe. We will also offer incentives to our customers to inspire loyalty. These will include coupons to regular customers and punch cards that will reward the customer with 25% off on bakery items after the purchase of buying bakery items in bulk.

Founder of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen, David Dent

Recently moved back from Los Angeles where he ran a successful political consulting firm for 10+years. Past experiences in 5-star fine dining as well as being a key player in the opening and managing of a new restaurant for a TV Network celebrity that is why he pursued her dream as an entrepreneur in the food industry.

This plan includes chapters on the business, products and services, market focus, action plans and forecasts, and financial plan.

1.1 Objectives:

Fried and Frosted targets the community that are short on time yet desire to experience captivating yet simple flavours. The targeted community of the brand are the individuals that have a palate for bakery items, including doughnuts, coffee and fried chicken products. It will ensure the customers remain confident that the quality of the provided product doesn’t mitigate irrespective of the quantity of order.

Keeping in mind the needs of the target market. Our business objectives can be summarized as follows :

To be a leading provider of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen in targeted communities in the next five years of operation.
To build strong and sturdy relationships with our customers by introducing loyalty programs from time to time.
To ensure exceptional personalized, responsive service to all stakeholders.
To make our services conveniently accessible to masses.
To target and maintain a net profit of at least 10% by the end of the second year.
To expand from state to state at a rate that doesn’t sacrifice quality.

1.2 Mission:

The mission of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen is to satiate the hunger pang of the targeted segment that are short on time and need swift hunger relief. To ensure that we achieve our mission successfully, we have decided to formulate our services, keeping in mind the following characteristics:

1.2.1 Commitment:

We commit to being the best provider of the bakery product. We will follow up with our customers until we receive a confirmation of satisfaction from them.

1.1.1 Standardization:

Fried and Frosted will ensure that the quality of the offered product is not compromised under any circumstances. It will make sure to provide the same quality and eminence irrespective of the time and day of delivery.

1.2.2 Reliability:

The owner of the brand product David Dent wishes to establish strong ties with its clients and desires to make it’s a brand synonymous to reliability, trust and conviction for its patrons.

2 Company Summary:

Fried and Frosted will be providing special doughnuts with delicious fried chicken. The aim is to satisfy customers cravings and allow its customers to try its delicious organic fried chicken & maple doughnut combo available for breakfast and lunch. The objective of this business is “There is nothing more satisfying than sweet and savoury”.

2.1 Company Ownership:

David Dent

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen is a sole proprietorship business that is owned by David Dent. This business aims to contribute their unique skill set and a decade of experience in cooking that has inspired to become a food entrepreneur.

Startup Funds Requirements
Source/Name	Amount
Bank Loans	$0.00
Investors	$ 0.00
Capital Investment by Manager / Owner	$40,000.00

2.2 Startup Summary:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will have to incur the following

expenditures for successful operations:

We have a well thought out startup plan that will help us move forward with the right marketing tools, equipment, and staff to get started.


START-UP FUND REQUIREMENTS
TOTAL START-UP EXPENSES	$10,500.00
TOTAL START-UPASSETS	$29,500.00
TOTAL REQUIREMENTS	$40,000.00


STARTUP REQUIREMENTS
Startup Assets
Computer, Machinery & Equipment	$2,500.00
Furniture	$2,000.00
Inventory / Stock	$25,000.00
Total Start-up Assets	$29,500.00
Startup Expenses
Payroll Expenses (For 1 Month)	$1,000.00
Legal	$1,000.00
Advertising & Promotion	$1,500.00
Utilities (For 2 Months)	$1,000.00
Office Rent (For 1 Month)	$500.00
Website Design * Hosting Expenses	$1,000.00
Business Development Expenses	$2,000.00
Other & General Expenditure	$2,500.00
Total Start-up Expenses	$10,500.00
Total Requirements	$40,000.00

2.3 Keys to Success:

Our business success will be highly dependent upon our unpaid marketers, that is, our satisfied customers. Customers mostly rely upon the informal sources to testify the authenticity of business, and we need to ensure that our customers are satisfied to the extent that they become our brand loyalists and would advocate for our services to their immediate reference group.

To succeed in this business we must:

Create a unique, innovative, entertaining menu that will differentiate us from the rest of the competition.
Control costs at all times, in all areas and implement a conservative approach to growth policy. Although, we provide more than enough fund to open more than one outlet, we want to be on the safe side of the business.
Sell the products that are of the highest quality, as well as keeping the customers happy with all of our product categories from food to store merchandising.
Provide 100% satisfaction to our customers and maintaining the level of excellent services among other competitors.
Promote good values of company culture and business philosophy.

Our business offers a tangible product that is convenient to assess for quality. The most reliable way to gauge quality is to evaluate our products based on the revenue generation and customer’s valuable review. They must be of high quality and value.

3 . Services& Products:

The main product of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen is the variety of doughnuts. The other delicious items in our menu includes the fried chicken item will be a staple and paired with a doughnut for a unique experience with a nostalgic feel of Chicken and Waffles. The five Fied and frosted ofndoghnuts are as follows:

3.1 Future Services:

Currently, Fried and Frosted – Doughnuts, Coffee & Fried Kitchen offers limited product. However, it plans to diversify its proposed menu and exploring other food categories as well. David Dent is aim is to take advantage of the social distancing society changes and will introduce an app for preordering/paying for items at the grab & go locations. Also, planning on established delivery apps in the area to maximize outreach & availability.

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will also be a catering aspect provided in the future for special events, weddings, office parties, etc.

3.2 Pricing Strategy:

At the initial stage, we have decided to set our prices on the variable criterion. Our prices will vary based on the quantity required and time and day of order placement. Moreover, we would favour our loyal partners in setting up costs and closing deals with them.

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will offer higher prices than the average doughnut shop. probably $2-$3 a doughnut unless purchased in bulk.

4 Market Analysis:

Changing dietary and food consumption patterns due to rising health awareness, have significantly affected the industry, as many consumers have reduced carbohydrate consumptions, including breads. Moreover, consumers that are continuing to purchase doughnuts and fried chicken are increasing.

Some of the key players/Manufacturers involved in the market are – Daylight Donut Flour Company CO. , LLC (United States), Dunkin Brands Group (United States) , Krispy Kreme Doughnuts, Inc. (United States) , Mister Doghnuts (United States) , Restaurant Brands International Inc. (Canada) , Cinnabon (United States) , Country Style (Canada) , Bimbo Bakeries USA (United States) , Glory Hole Doughnuts (Canada) , Honey Dew Donuts (United States) , J.CO DONUTS COFFEE (Indonesia) and Jelly modern doughnuts (Canada).

In Kivela (1997), the author’s pilot study of a restaurant in Hong Kong and their marketing strategies found that while other things such as ambiance and trendiness influence diners choices, food quality and selection was the main variable for guests when deciding on where to dine out.

4.1 Industry Overview:

The Doughnut Stores industry is running rings around its competition in the food service sector, as major doughnut chains expand their menu offerings well beyond doughnuts. Both increased consumer confidence and consumer spending have facilitated individual spending on small luxuries, such as coffee and doughnuts. Additionally, a boost in corporate profit has increased the frequency with which employers purchase industry products for employees and corporate clients. As a result, industry revenue is expected to increase an annualized 3.1% to $8.3 billion over the five years to 2019. This includes an anticipated 1.4% increase in 2019 alone.The average per capita consumption stands at 81.3 kg in 2020.

This industry is comprised of establishments that primarily prepare or serve doughnuts. Purchases may be consumed on-site, taken out or delivered. A doughnut is usually sweet, deep-fried flour dough that has been shaped into a ring or sphere. Some contain fillings, such as jam or custard, and some have toppings, such as frosting or sprinkles.

The market size of the Doughnut Stores industry in the US has grown 2.0% per year on average between 2015 and 2020. The market size of the Doughnut Stores industry is expected to increase by 1.2% in 2020. The market size of the Doughnut Stores industry in the US increased faster than the Consumer Goods and Services sector overall.

Over the five years to 2024, as positive conditions in the broader economy boost consumer spending, the industry is expected to continue growing.

4.2 Market Opportunities:

Changing consumption trends and intensifying competitive pressures will continue to affect operators in the Bakery Product Manufacturing industry over the next five years. While industry operators are forecast to benefit from consumer trends favouring unpackaged, handcrafted artisan products made from locally sourced ingredients, industry bakeries will also face intensifying pressure from instore supermarket bakeries as these bakeries expand their range of products to include artisan bread and healthier baked products.

In the United States from 2015 to 2019, the market size of the industry has increased 2% per year on average and is expected to grow approximately 1.2% in 2020, according to IBISWorld’s 2019 report “Doughnut Stores Industry in the US – Market Research.”

The international donut market is seeing a steady increase as well, and some bakeries have had major breakthroughs over the past several years. Barcelona-based Europastry, creator of Dots Originals thaw-and-sell frozen donuts, is a worldwide company. Carolina Moré, marketing director USA, Europastry, said Dots sales increased by more than 30% from 2017 to 2019 due to an evolution of quality and more innovation.

Creativity is driving the donut industry forward. Consumers can eat sweet or savory, old-fashioned or gourmet, yeast or gluten-free donuts. All these offerings have not only increased sales but also broadened the time of day in which the sweet good is purchased. According to a survey from Jackson, Mich.-based Dawn Foods, 87% of people eat donuts in the morning, 38% in the afternoon, 33% in the evening and 23% late at night. That’s why many shops are open 24 hours.

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen offering is compliant to the market opportunities and tend to fill the existing gap in the market; that is, the offered doughnuts and fried chicken is homemade yet delicious. Moreover, David Dent

prefers to use only locally sourced ingredients to support the local industry.

4.3 Customer Need:

The target segment of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen are the individuals that have a palate for bakery items and prefer to have healthy homemade delicious doughnuts and delicious homemade fried chicken as an alternative to a pre-packed industry made doughnuts nad fried chicken products.

4.4 Competitor Analysis:

The notable competitor of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen in the market is Aunty Kath’s Cookie dough.

4.4.1 Sidecar Doughnuts and Caffee:

Sidecar’s mission is to consistently use a “from the earth” approach in their sourcing of ingredients, their innovation with new flavors, and their commitment to customer service. From the moment you step into Sidecar and bite into one of their delectable treats, you will surely agree that this is not your ordinary doughnut experience. However, the offering of Sidecar is different from Fried and Frosted – Doughnuts, Coffee & Fried Kitchen, yet it is a competitor of the brand as it offers doughnuts and coffee in Watsonville, CA .

4.4.2 Streetcar Doughnuts and Caffee

StreetCar Merchants of Fried Chicken, Waffles & Beer (PAYE) is a counter service restaurant serving an all-day menu of brunch, lunch, and supper. They specialize in cuisine from the Southern United States. However, it is also not the same as our Fried and Frosted – Doughnuts, Coffee & Fried Kitchen because we are offering different vriety of old fashion glazed doughnut which is rich of traditional flavor and mouth- watering fried chicken products under one roof.

4.5 SWOT Analysis:

SWOT analysis is a strategic management technique and is very useful to analyze the internal and external factors of an organization for planning and decision making process. Following is the SWOT analysis. Here is a summary of the SWOT analysis that was conducted for the Fried and Frosted – Doughnuts, Coffee & Fried Kitchen.

STRENGTHS

· Experienced Leadership

· Well Trained Employees

· Discreet Management Hierarchy.

WEAKNESSES

· New to business

· Limited financial backup

OPPORTUNITIES

· To become the most trusted organization in the operating market.

THREATS

· The Threat of new entrants.

4.5.1 Strength:

It has the following prominent advantages:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen has experienced leadership that will favour the overall outlook and operation of the organization as skilled leaders effectively guide and manage the employees working under them.

The hierarchy of management is well outlined. Each individual is assigned a task based on its skills. Fried and Frosted – Doughnuts, Coffee & Fried Kitchen has ensured to operate at the principle of placing the right person at the right place to extract the effective result.

Dedicated customer relationship management department has able to achieve a high level of customer satisfaction. We ensure that the company provides high quality of services to our customers to maintain the good relationship with customers.
Our company will built a reliable distribution network that can reach majority of its prospective market.
Fried and Frosted – Doughnuts, Coffee & Fried Kitchen has strong and stable cash flows that provide resources to the company to expand into new projects. Stable cash flow in the company’s account helps to invest in new technologies.

The surroundings and environment give a positive impression and feelings to the customers. We ensure a peaceful and high quality environment for our customers so that they will feel relax while getting their services. Therefore, High quality is strength for our company.

4.5.2 Weakness:

Some possible weaknesses of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen are as follows:

It is new to this industry, and it will be difficult to convince the organizations and individuals to work with it as it will take time for Fried and Frosted – Doughnuts, Coffee & Fried Kitchen to build trust.
Fried and Frosted – Doughnuts, Coffee & Fried Kitchen has limited financial assistance that can restrict its growth opportunities.

Our company is a startup company so we need high investment to study the different culture to work with, right now we don’t have the desired investment for the research and development.
As this is a new startup and it will have no brand recognition. Therefore, it will take some time and investment to create brand recognition. Some market players already have brand recognition. Therefore, it’s our weakness.

4.5.3 Opportunity:

There are the following opportunities in the native market for Fried and Frosted – Doughnuts, Coffee & Fried Kitchen

It has a chance to leave a mark in the market as it has the elements in place that are required for that job.
It can attract patronage by carefully catering to the needs of its market segments.

The new taxation policy has significant impact on our business and this can increase its profitability.
Strong consumer needs can open up new market for the Fried and Frosted – Doughnuts, Coffee & Fried Kitchen. It provides a great opportunity for our company to increase revenue streams.

4.5.4 Threat:

Some threats that Fried and Frosted – Doughnuts, Coffee & Fried Kitchen can encounter are as follows:

It is a novel idea, but once it attracts the patronage it can be adapted by the giants that will increase the competition in the market.
The main threat our company is facing is the different online channels that provides the similar services; that could be a threat to our existing supply chain model.
There is a strong competition in price and products segments. Many Competitors also provide slightly different services with different discounts and offers which build a very strong competition. That’s why, it is some difficult for new companies to grow easily in this industry.

·		·
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5 Implementation Strategy:

To implement our idea, we would predominantly focus on a comprehensive marketing plan, strategic utilization of competitive edge along with tactical sales strategy compare to competitors in the field.

5.1 Marketing Plan:

Marketing is essential for our startup because unless people know what we are offering, we will be unable to reach a profitable niche market. For our marketing strategy, we have decided to focus on foot in the door technique. We will create a buzz in the target market and will gradually announce our presence, our deals, and other attractive packages so that our customers remain engaged with us on our journey. We will be taking advantage of the social distancing society changes and utilizing an app for preordering/paying for items at the grab & go locations. Also, we will plan on using established delivery apps in the area to maximize outreach & availability.

When it comes to approaching the target customers effectively, we have two possible marketing approaches, i.e., segment-based marketing and impression-based marketing. Traditional marketing setup has various demerits associated with them. For instance, it is costly, and it is difficult to access for effectiveness, and it is difficult to measure the conversion rate in traditional marketing.

There are multiple tools in impression-based marketing, like instance, E-mail marketing, social media marketing, SEO, content marketing, and affiliate marketing. We will also use digital marketing for attracting more customers. Based on the performance report of these tools as published by an authentic site. Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will primarily focus on following marketing channels to target Small businesses &entrepreneurs.

Marketing analysis is an important part of growing a caffee from a new venture. The traditional four P’s of marketing are important to any business. Product, Price, Place and Promotion, create the marketing mix for any business and caffees are not the exception. Finding the proper product for the market, the right price to maximize profits, the right location and finally promoting that product can make or break any new business. Getting the right mix of these seven P’s are important tools which when creating a business plan a new restaurateur must take into respect. Research has shown that there are quite a few marketing strategies, which restaurateurs generally take. Differentiation is one of the most common either with food, service or atmosphere.

5.2 Marketing Mix :

Marketing Mix of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen covers 7Ps (Price, Place, Promotion, Physical Evidence, Positioning, and People) and explains its marketing strategy. In this fast-growing digital world, the products, markets, customers and needs changes rapidly, Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will continually revisit these 7Ps to make sure that Fried and Frosted – Doughnuts, Coffee & Fried Kitchen is on the right track in today’s marketplace.

5.2.1 Price:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen play a crucial role in giving services at best, thus getting the satisfaction and confidence of the customers. The business sales strategy is based on the provision of high-quality product/ service, prompt/ quick response to the order, working in a pleasant/ cordial atmosphere and of course, low price.

We will make such a reputation in the digital market that we get a brand name, this will be achieved through the customer satisfaction and the service quality that we provided. A positive trust and relation amongst its old clients, give the company, a loyal customer base.Fried and Frosted – Doughnuts, Coffee & Fried Kitchen ensure that competitive pricing is the need of time.A company can define and execute a sales process that will increase the likelihood of reaching its ultimate objective by truly understanding its customer’s need.

We will also offer special discounts and promotions to build relations with the customers, which include 10% discount when ccustomer refer toa new customer. Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will also give a discount to its repetitive customers.These additions bring not only new customers to the fold but also give old customer a reason to buy our products. Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will give attractive offers in pricing strategy which willcustomers.

5.2.2 Place:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen is based in Watsonville, CA . Our shop is situated in the market hub and provide a delicious food to many customers in Watsonville, CA. We will give services nation wide.

5.2.3 Product:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchenlab will primarily carry out analytical study for a deeper understanding of the customers and the requirement whereby enabling itself in submitting viable fast food products to improve the transformation journey of the customer.

5.2.4 Promotion:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will devise social media channel for its promotional activities. This act will help in building a strong bond between the customers and Fried and Frosted – Doughnuts, Coffee & Fried Kitchen. We will use print media for advertising our services such as newspaper, brochures, and flyers.

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will make a catalogue, which will enumerate capability andservices available to the customer to choose the product/ services in total or in sections.

5.2.5 Physical Evidence:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen main evidence will have the strong customer relationship bond. The location of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will be the strongest proof for the customers to trust on its product blindly. Our customer care department will ensure to solve the services related quarries. The online chat with customer will also increase the customers satisfaction. The highly trained staff will be there to deal with the customers problems.

5.2.6 People:

Physical interaction with the customer will be the most important aspect of the growth of Fried and Frosted – Doughnuts, Coffee & Fried Kitchen. We have well trained staff that will provide best and quality product services to its client’s company and will assists its customer through online chat and through call to customer care department. The strong bond with the customer will help the company to flourished.In this booming digital world, provision of effective and timely support/ service has its importance, but positive relationships with client/customer are also necessary and same will be gauged/ observed through stable cash flow required for its daily operations.

5.2.7 Process:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will tae care of all the hygienic craiteria while making the food products. Skilled and trained staff will be the strongest key of our business to flourished fast. The fast service delivery will increase the customers faster.

5.3 Competitive Edge:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen is new to the market, but it is entering the arena with a packed armour guard that would make it stand alleviated compared to the counterparts. Fried and Frosted – Doughnuts, Coffee & Fried Kitchen enjoys several advantages over its competitors. These advantages include:

Lower prices: Our Company’s competitive edge will be the lower prices, we will charge our customers. In the bookstore industry, low cost and dominate selection are the two success criteria. We plan to create these advantages in a new, comforting environment that will retain customers.
Easy-to-use website: Our Company’s competitive edge will be their easy-to-use website and superior customer service. The website design will be a competitive advantage because research indicates that an easy-to-use webpage significantly increases sales. The design of Nature’s site will encourage purchases because it is so easy and quick to make the purchase. Too often sales are lost because of complex websites that are far from intuitive.
Yearly membership: Another thing that we will offer is a yearly membership. By providing our customers with an inexpensive annual membership, we will be more competitive with the large retail bookstores. Our membership card will cost $10 a year and will allow the customer to receive between 5% and 15% off any product they purchase on our website.
Customer care: Another competitive edge is superior customer service. The objective of the customer service department is to serve the customer in any way required. Customers that call in with problem or issues will be amazed at the amount of personal attention they receive and how quickly problems are not only resolved, but significantly improved. This will be a powerful asset.

5.3.1 Highly Experienced staff/Mangment:

Our highly skilled and qualified management and customer service culture will serve as a competitive advantage for us. All our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

5.3.2 Convenient Product:

Fried and Frosted – Doughnuts, Coffee & Fried Kitchen is easy to use whereby the customers just have to add water in the already prepared Mix. Moreover, the Mix can be used to develope diverse range of doughnuts, fried chicken & coffee that can be served as a main or side, savoury or sweet.

5.4 Sales Strategy:

Our primary sales strategy is to target our segment that will comprise of cafee and restaurants of Watsonville, CA (In the first phase) through mass marketing, to create awareness and attract maximum patronage towards our brand. Fried and Frosted – Doughnuts, Coffee & Fried Kitchen will use narrow media tools to make it happen. It will be less expensive to use this sales and marketing approach compare to the traditional broad media source.

6 Financial Plan:

The business of NAME -ABCD does not require substantial outlays for inventory, and all sales are on a cash basis, so initial cash-flow deficits will not accompany increases in sales. We expect rapid growth through aggressive, proactive selling by our expert and trained sales team. Our financial plan is dependent upon a significant change in focus and marketing, to switch from an old way of advertising to the modern approach. We are confident that we can turn around the financial history of the company to create a very profitable business. The financial projections are as follows.

6.1 Startup Funds Requirement:

Startup Funds Requirements
Source/Name	Amount
Bank Loans	$0.00
Investors	$ 0.00
Capital Investment by Manager / Owner	$40,000.00

NAME -ABCD will initially require to invest a total of $30,000 in starting the business.

6.2 Projected Sales:

ESTIMATED REVENUES FOR 5 YEARS
Details	YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5
Sales	$120,000.00	$144,000.00	$172,800.00	$216,000.00	$270,000.00
Cost of Goods Sold	$66,000.00	$79,200.00	$91,584.00	$114,480.00	$135,000.00
Gross Profit	$54,000.00	$64,800.00	$81,216.00	$101,520.00	$135,000.00

6.3 Projected Profit and Loss Account:

ESTIMATED REVENUES FOR 5 YEARS
Details	YEAR 1	YEAR 2	YEAR 3	YEAR 4	YEAR 5
Sales	$120,000.00	$144,000.00	$172,800.00	$216,000.00	$270,000.00
Cost of Goods Sold	$66,000.00	$79,200.00	$91,584.00	$114,480.00	$135,000.00
Gross Profit	$54,000.00	$64,800.00	$81,216.00	$101,520.00	$135,000.00
Expenses
Start up Expenses	$10,500.00
Payroll Expenses (For 1 Month)	$12,000.00	$13,200.00	$14,520.00	$15,972.00	$17,569.20
Legal	$0.00	$0.00	$0.00	$0.00	$0.00
Advertising & Promotion	$2,000.00	$2,000.00	$2,500.00	$2,500.00	$2,500.00
Utilities (For 2 Months)	$6,000.00	$6,600.00	$7,260.00	$7,986.00	$8,784.60
Office Rent (For 1 Month)	$6,000.00	$6,000.00	$6,600.00	$7,260.00	$7,986.00
Website Design * Hosting Expenses	$500.00	$750.00	$1,125.00	$1,687.50	$2,531.25
Business Development Expenses	$2,000.00	$2,500.00	$3,000.00	$3,500.00	$4,000.00
Other & General Expenditure	$2,000.00	$2,500.00	$3,000.00	$3,500.00	$4,000.00
Total Expenses	$41,000.00	$33,550.00	$38,005.00	$42,405.50	$47,371.05
Net Profit	$13,000.00	$31,250.00	$43,211.00	$59,114.50	$87,628.95

6.4 Projected Cash Flow Statement:

6.5 Projected Balance Sheet:

7 Conclusion:

As a new company, we require a strategic approach considering the current players in the industry. The present market forces provide the business with the need to improve their way of operations to lure customers. The objective of our company is to become a strong brand to gain the much-needed competitive advantage. The business hence requires a strong planning in areas of the market segmentation, operation and risk management. To generate profit, detailed analysis of the cost requirement, operational expenses and revenue estimation is necessary. The project plan further includes a comprehensive plan for various aspects of the business, including legal requirements, health and safety regulations and corporate social responsibility. All these detailed aspects show the nature in which the company shall operate. We are very hopeful with our team that we will accelerate and multiply and become a profit-generating business in a few years.

8 Appendix – Supporting Documentation:

This section is reserved for future additional documentation in support of the business plan, as necessary.