Business Plan
The specific requirements for this assignment are to write a 3–5 page paper in which you:
- Describe the product or service on which the company is focusing, including the company’s name and its significance.
- Revise the company’s mission statement based on feedback received in the Week 1 discussion thread, including the rationale for each component of the mission statement.
Place the mission statement within quotation marks.
Use the Mission Statement Worksheet on pages 72–73 of your textbook as a guide. - Describe the trends in your specific industry, focusing on your particular type of product or service.
Research and outline industry trends. Be sure to consider the size and growth rate for the overall industry and for the specific product or service on which you are focusing.
Search the industry associations, and reliable websites for recent data. - Select the strategic position from the course text (pages 146–147) that you believe is the best one for your chosen company and explain how you will implement it to distinguish your product or service from the competition.
Consult Chapter 9, “Strategic Position & Risk Assessment” of your text for help in crafting this portion of your business plan.
- Describe the company’s distribution channels and provide the rationale for your selection.
Sample questions to ask when choosing distribution channels:
Will you sell your product in grocery stores, restaurants, or sports venues?
Will you sell your product online or as a subscription?
Where will the service be offered? - Revise your selected company’s SWOT matrix based on feedback from the Week 2 discussion thread and summarize the key learnings from your matrix.
Be sure to use the SWOT Matrix [DOCX] (table) when revising your SWOT matrix.
Running head: BUSINESS PLAN-TOPMARK CAFE
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BUSINESS PLAN-TOPMARK CAFE
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Business Plan- Topmark Cafe
Name
Name of the Institution
Business Plan-Topmark Cafe
Description of the Business
Topmark Cafe is a sole-proprietorship business that will be located at the heart of Applewood Mott Estate, Vienna, VA. The business will provide assorted snacks and to the population living in the area targeting students and employees residing, learning in schools, and working in the area. The idea to establish the business in this area was informed by the high demand for snacks in the area which was revealed through business research that was done earlier. Topmark cafe will employ five employees in the beginning and the owner will be the manager. The company will begin with an initial capital of $80,000 and will target people living in a 100-miles radius and will operate in a rented building.
Products Offered by the Business
Some of the products that will be offered by the business include hot and cold coffee beverages, pastries and desserts, cookies, coffee cakes, and muffins among others. With time, lunch and dinner items will be introduced in the café as it expands. Other snacks such as sugarless biscuits, brown bread, ice sugar cakes among others will be offered at the cafe. Other non-alcohol drinks and beverages such as soft drinks will also be included in the cafe menu.
Company Mission Statement
The mission of Topmark Cafe will be:
“To provide unbeatable and high-quality snacks and food to our clients while considering the different health needs and concerns of different consumers. We focus on high-quality standards when preparing our snacks and offer moderate returns on investment to our shareholders while considering the place of employees in achieving our goals.”
SNACK FOOD COMPANY GUIDELINES
· You must build your business plan using the information included within these guidelines.You can add to this information as needed.
· You will create a business plan for a company operating in the snack food industry.
· The instructor will approve your company in a reply to your Week 1 discussion post in which you will describe this business.You will revise your work based on feedback provided.
· You will be the CEO of the new business.
· You will develop the business plan with the intention to raise funds and increase sales.
Key Business Plan Parameters
Key Parameter
Explanation
Business Size
You are a startup not yet in operation. You have the recipe for the snack, and you have been operating from your home, but sales are small. You were selling the product for $3 per item at a cost of $1. You will develop the business plan with the intention to raise funds and increase sales. Your sales must be over $1 million by the end of the second year.
Product
You must focus on a snack. You decide what the snack will be and whether it will be sold in individual sizes or wholesale. The Snack Food industry produces snack foods, such as potato and corn chips, pretzels, roasted and salted nuts, nut butters, popcorn and other similar snacks.
Market Size
You will start marketing and selling the product in your geographical area within a 100-mile radius from your home.
Existing Funds
You received $
5
0,000 from your grandmother as a gift, and you borrowed $30,000 from your family and friends.
Intention to Raise Money
To grow the business further, you will need funds from outside investors, either angels, venture capitalists, a group of individual investors on Kickstarter.
Facility
You will rent.
Employees
You will have employees, and you will develop your own organizational hierarchy.
Annual CEO Salary
As CEO your salary will be $60,000 the first year, $120,000 the second year, and finally adjusted to $160,000 for all remaining years in the position.
Specific Business Details
This table identifies specific details you must use for your snack company business plan. Reflect any costs in your business plan narrative and in the Business Plan Financials Excel Template. The final column specifies the specific worksheet within the Business Plan Financials Excel Template where you need to input data.
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Item |
Worksheet Within the Business Plan Financials Excel Template |
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EQUIPMENT PURCHASES AT THE START OF THE BUSINESS AND AS THE BUSINESS GROWS · 2 machines to produce and package the product @ $10,000 each; about 50 bags per minute each · 2 vans for distribution @ $15,000 each · 3 computers @ $1,400 each · Software for inventory, payments, and customer accounts management · Printer |
Capital Expenditures Worksheet |
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PERSONNEL Current Personnel · CEO (you) · 1 part-time production worker @ $15.00/hour (20 hours/week) · 1 IT support person @ $25.00/hour (20 hours/week) · 1 paid consultant (your neighbor); retired executive in the snack food industry Considerations: Your goal is to reach sales of over $1 million by the end of the second year. You will need to hire additional personnel to meet this goal. Potential additional hires include: · 2 production line foremen · Production employees (more than one shift) · Business size of business will determine number · Maintenance staff · Business size will determine number · Additional employees according to your preferences |
Staff Budget Worksheet |
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Worksheet Within he Business Plan Financials Excel Template |
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BUSINESS EXPENSES Marketing Expenses · Consultant (your neighbor); 1st year only · Attorney · Accountant · Industry specialist Inventory Purchases (as needed) Additional Expenses · Telephone/fax · Business insurance · Office supplies · Mailings and postage · Building maintenance · Utilities, including · Water/sewer · Gas · Electricity · Trash removal |
Marketing Budget Worksheet Professional Services Worksheet Inventory Worksheet Income Statement Worksheet |
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FINANCIAL INFORMATION Available Funds · Balance in the bank · Gift from grandmother · Loan from relatives and friends · This is to be paid by the end of the second year of operation with 5% interest. Future Funds You will need to raise funds from investors. You will determine this based on how much you plan to grow the business. Reminder: · You will need to pay taxes. · You will determine sales projections. |
Capital Investments Worksheet Cash Flow Statement Worksheet Sales Projections Worksheet |
.Guide to Complete the Business Plan Financials Excel Template
The Business Plan Financials Excel Template is the base pro-forma financial statement for your business. Complete the worksheets in order.
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Worksheet |
Data Entry |
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Worksheet #1: Set Up and Assumptions |
Line 9–Enter the month the academic quarter starts. Line 12—Enter the year the academic quarter starts. Line 15–Enter 2; you choose the number of product lines you will have up to 10 lines. Line 21—Standard default is 30 days; you may adjust this for your business. Line 43—Enter $15,000; this is the money you currently have in the bank. |
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Worksheet #2: Sales Projections |
Speculate how much your company will grow and how much you will sell. Reflect this information in the Operations Section of your Business Plan (Week 5 Discussion and Week 8 Assignment). You need to reach sales of over $1 million by the end of the second year. |
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Worksheet #3: Inventory (Adjust These Figures As Needed) |
Line 7– Enter the cost of ingredients. Line 8—Enter the cost of bags. Line 9—Enter the cost of cartons to package the products. Repeat these three lines for each product line. |
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Worksheet #4: Capital Expenditures (applies to purchased NOT leased equipment) |
Insert the cost of the equipment, vehicles, computers, et cetera, you decide to purchase. |
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Worksheet #5: Staffing Budget |
Account for every paid employee using the appropriate lines for the six categories of employees 1. Management 2. Administrative/Support 3. Sales/Marketing 4. Operations/Production 5. Other 6. Part-Time/Hourly Indicate when their employment will start according to the Operations and Management and Organization sections of your business plan. |
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Worksheet #6: Marketing Budget |
Enter the cost for the marketing vehicles you plan to use. (Discussion 4 and Assignments 2 and 3). |
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Worksheet #7: Professional Services |
Line 6—Enter $3,000.00. Line 7–Enter $2,500.00. Line 9—Enter $2,000.00 Line 11—Enter $10,000.00 (first year only) |
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Worksheet #8 Capital Investments Worksheet |
Equity Capital Investments Line 6—Gift—Enter $50,000.00. Loans (Friends and Family) Line 24–$30,000 Note: The loan period = 24 months; interest rate = 5% |
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Worksheet #9: Income Statement |
Enter the cost of your expenses; see Business Expenses in the table that appears under the Specific Business Details section of these guidelines. |
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Worksheet #10: Cash Flow Statement |
Pay off taxes. |
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Worksheet #11: Balance Sheet |
This will automatically populate from the other completed worksheets. |
Resources on the Snack Food Industry
These resources are a good starting point for you as being researching the snack food industry.
C. Barnes. 2020.
2020 U.S. industry & market report–NAICS 31191: Snack food manufacturing
, 1–196.
Jan Conway. 2018.
U.S. Snack Foods Industry—Statistics & Facts
. Statista. https://www.statista.com/topics/1496/snack-foods/
Patrick Limdico. 2019.
47 Snack Food Industry Trends and Consumption Statistics
. Foodtruck Empire. https://foodtruckempire.com/news/snack-food-industry/
Douglas J. Peckenpaugh. 2019.
State of the Industry 2019: Defining the Future of Snacking
. SF&WB. https://www.snackandbakery.com/articles/93232-state-of-the-industry-2019-defining-the-future-of-snacking
L. Petrak. 2019.
Mindful Munching: The Evolution of Mealtime Is Fueling the Trend Toward New Kinds of Nibbles
. Progressive Grocer, 98(5), 50–54.
Statisa. No date.
Consumer Market Outlook: Snack Food; United States
. https://www.statista.com/outlook/40110000/109/snack-food/united-states
Mordor Intelligence. No date.
Snack Food Market—Growth, Trends, and Forecasts (2020–2025)
. https://www.mordorintelligence.com/industry-reports/snack-food-market
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Revisethe opportunities
.
Opportunities
are not under your control and cannot be created. You can just take advantage of them to grow the business. These should be stated to specify the external factors you plan to take advantage of to grow the business: events, trends, etc. Check the examples provided in the discussion under the second post (to help with week 2 discussion).
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Revised Mission
S
tatement: Topmark Cafe is a sole-proprietorship business that will be located at the heart of Applewood Mott Estate, Vienna, VA. The business will provide assorted snacks and to the population living in the area targeting students and employees residing, learning in schools, and working in the area.
SWOT Matrix
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Strengths 1. Topmark Cafe will have a vast customer strength whereby most potential customers will be students and employees residing, learning in schools, and working in the area. 2. Topmark has invested in business research, which was conducted earlier that led to the establishment of the idea that in the heart of Applewood Mott Estate, Vienna, VA, there is enormous demand for snacks in that area. 3. The snacks will also be of high-quality standards with moderate returns, meaning that their prices will be affordable to all their potential customers as they aim to make a small margin out of the cafe. 4. Topmark cafe has a tremendous financial strength whereby they have an initial capital of $80,000. |
Weaknesses 1. Topmark Cafe has five employees and the owner as the manager, which means they will not meet potential customers’ demands due to the overwhelming numbers of customer inflows. 2. Topmark Cafe owners will be required to employ more employees to avoid customer order delays to maintain a reputation based on managing time. 3. The owner should also employ a qualified professional manager who will be able to run the activities, however, the compensation plan may be below market rate. 4. Procuring other resources that will ensure the consumers are interested the snacks and become return customers. |
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Opportunities
1. Topmark Cafe has opportunities to offer a wide range of providing a wide range of products such as, pastries and desserts, cookies, coffee cakes and other delicious snacks. 2. Topmark Café will offer other snacks, such as sugarless biscuits, brown bread, and ice sugar cakes, will be offered at the cafe. 3. With time, international snack items will be made available in the cafe as it expands. 4. Additional products will ensure customer retention and maintain their loyalty when high quality is offered. There will be more significant potential for loans and mortgages by various financial institutions due to a massive potential, as earlier research |
Threats 1. Topmark cafe faces a threat of understaffing is quite critical because it needs to meet the overwhelming demand to avoid customer disappointment. 2. Topmark cafe offers a down pricing making the profit margin smaller, which may fail to meet the operational costs of the cafe in the long run. 3. The cafe should structure its prices, if not, the closure of the business of they operate with substantial incidental charges. 4. Customers tend to depart when introducing inflated prices in the various new products offered. |
The specific requirements for this assignment are to write a 3–5 page paper in which you:
1. Describe the product or service on which the company is focusing, including the company’s name and its significance.
2. Revise the company’s mission statement based on feedback received in the Week 1 discussion thread, including the rationale for each component of the mission statement.
. Place the mission statement within quotation marks.
. Use the Mission Statement Worksheet on pages 72–73 of your textbook as a guide.
Mission Statement Worksheet on pages 72–73 (next two pages)
· Describe the trends in your specific industry, focusing on your particular type of product or service.
. Research and outline industry trends. Be sure to consider the size and growth rate for the overall industry and for the specific product or service on which you are focusing.
. Search the
Strayer Library
, industry associations, and reliable websites for recent data.
· Select the strategic position from the course text (pages 146–147) that you believe is the best one for your chosen company and explain how you will implement it to distinguish your product or service from the competition.
Consult Chapter 9, “Strategic Position & Risk Assessment” of your text for help in crafting this portion of your business plan.
Text (pages 146–147)
What Kinds of Strategic Positions Are There?
What makes a company different? Is it the nature of its products or services? The quality or cost? The geographic area or type of customers served? Perhaps the company has proprietary products customers can’t find elsewhere.
There are many ways to distinguish yourself from your competitors, including:
■ Customer Perception Factors
■ Market Segment
■ Market Share
■ Operational and/or Technological Advantages
■ Proprietary Products, Technology, Abilities, or Relationships
■ Sales Channels
■ Business Model
■ First-Mover Advantage
■ Lean Startup
■ Branding
Each of these strategic approaches offers opportunities but also poses pitfalls. And they may be related: If you are positioning your company on the basis of low price, you’ll also need operational efficiencies to reduce costs or else you won’t be able to survive against competitors with higher profit margins.
Customer Perception Factors
This is the “better, faster, cheaper” approach, based on how customers distinguish your company and its products and services from the competition.
· Describe the company’s distribution channels and provide the rationale for your selection.
. Sample questions to ask when choosing distribution channels:
. Will you sell your product in grocery stores, restaurants, or sports venues?
. Will you sell your product online or as a subscription?
. Where will the service be offered?
· Revise your selected company’s SWOT matrix based on feedback from the Week 2 discussion thread and summarize the key learnings from your matrix.
· Be sure to use the
SWOT Matrix [DOCX]
(table) when revising your SWOT matrix(above)
S