Business proposal coffee shop in Canada

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Business proposal coffee shop in Canada

  1. 1. Newgate SolutionsBusiness PlanRobin Hood Cake Cafe In Toronto, Canada 1|Page
  2. 2. Table of ContentsExecutive Summary ........................................................................................................................... 51. The Concept ................................................................................................................................... 6 1.Introduction ................................................................................Error! Bookmark not defined. 1.1.1 Industry Overview ............................................................................................................ 6 1.1.2 Company Overview .......................................................................................................... 6 1.1.3 Our Business ..................................................................................................................... 6 1.1.4 Our Goals .......................................................................................................................... 6 1.1.5 Our Objective .................................................................................................................... 7 1.1.6 Mission Statement............................................................................................................ 7 1.1.7 Vision Statement ............................................................................................................... 8 1.1.8 Core Values ....................................................................................................................... 8 1.2. Product and Services ............................................................................................................... 8 1.2.1 Product .............................................................................................................................. 8 1.2.2 Service to customers ......................................................................................................... 9 1.2.3 Attributes of our product ................................................................................................... 9 1.3 The Customers ......................................................................................................................... 9 1.3.1 Target Customer................................................................................................................ 9 1.3.2 Target Customer’s Age ................................................................................................... 10 1.3.3 Income class .................................................................................................................... 11 1.3.4 Target Segment ............................................................................................................... 11 1.3.4 Target Geographies ......................................................................................................... 11 1.4 The Legal Organization ......................................................................................................... 12 1.5 The Owners ............................................................................................................................ 122. Feasibility of Business ................................................................................................................. 13 2.1 Location ................................................................................................................................. 13 2.2 Site ......................................................................................................................................... 13 2.3 Site Expenses ......................................................................................................................... 13 Table 2.1 (Site Expenses) ............................................................................................................ 13 2.4 Market Potential ..................................................................................................................... 14 2.4.1 Market Growth and Trend .............................................................................................. 14 2.4.2 Market Size ..................................................................................................................... 14 2.4.3 Market Gap ..................................................................................................................... 14 2.5 Competition............................................................................................................................ 14 2|Page
  3. 3. 2.5.1 Competitive Strategy ...................................................................................................... 14 2.5.2 Competitors ..................................................................................................................... 15 2.5.3 Sustainable Competitive Advantages ............................................................................. 16 2.5.4 Technology leadership .................................................................................................... 17 2.6 Opportunities and threats ....................................................................................................... 17 2.6.1 Opportunities................................................................................................................... 17 2.6.2 Threats............................................................................................................................. 17 2.7 Sales Forecast......................................................................................................................... 18 2.8 Protecting the Business .......................................................................................................... 18 2.8.1 Security System .............................................................................................................. 18 2.8.3 Contingency Planning ..................................................................................................... 19 2.8.4 Environmental and Legal Issues ..................................................................................... 19 2.8.5 Risk Management ........................................................................................................... 193. Marketing ..................................................................................................................................... 20 3.1 Business Name ....................................................................................................................... 20 3.2 Brand Image ........................................................................................................................... 20 3.3 Service/Product Mix .......................................................................................................... 21 3.3.1 Product Expansion Strategy ....................................................................................... 22 3.3.2 Product enhancement ...................................................................................................... 22 3.4 Pricing Strategy...................................................................................................................... 24 3.4.1 Target Based Costing ...................................................................................................... 24 Table 3.2 (Price catalogue) .......................................................................................................... 24 3.5 Distribution ............................................................................................................................ 25 3.5.1 ERP enable Systems ....................................................................................................... 25 3.6 Promotion............................................................................................................................... 26 3.6.1 Sales Promotion .............................................................................................................. 26 3.6.2 Direct Marketing ............................................................................................................. 26 3.6.4 Viral Marketing ............................................................................................................... 27 3.6.5 Display marketing ........................................................................................................... 27 3.6.7 Alliances ......................................................................................................................... 27 3.7 Sales plan ............................................................................................................................... 274. Operations .................................................................................................................................... 28 4.1 Space and Equipment ............................................................................................................. 28 4.2 Organization ........................................................................................................................... 29 4.2.1 Organization Structure .................................................................................................... 29 3|Page
  4. 4. 4.3 Management team .................................................................................................................. 30 4.3.1 Employee Engagement. .................................................................................................. 30 4.3.2 Proper goal setting. ......................................................................................................... 30 4.3.4 Managing work force diversity ....................................................................................... 31 4.3.5 Adopting Flat Organizational Structure .......................................................................... 32 4.4 Regulations ............................................................................................................................ 326. Finances ....................................................................................................................................... 33 6.1 Start-up Requirements ........................................................................................................... 33 6.2 Owner’s Investment ............................................................................................................... 34 6.3 Borrowed Money ................................................................................................................... 34 6.4 Balance Sheet ......................................................................................................................... 35 6.5 Income Statement .............................................................................................................. 36 6.6 Cash Flow Statement ............................................................................................................. 37References ........................................................................................................................................ 38 4|Page
  5. 5. Executive SummaryDIY cake has been a growing market for a long time and has years to grow. The notion of “do- it-yourself” style of business has been widely accepted.RobinHood Cake Cafe is the brand namechosen for our business and is also the name of the company under which the DYI cakes will beoffered. This brand would serve the needs of customers of Canada, more specifically for those wholive in Toronto.RobinHood name has been taken from the inspiring hero of English Folk, who was high skilledarcher and swordsman. Here archer shows that Robin Hood was very target oriented as he hardlymissed the arrows on the target. The swordsman shows that he was a charismatic leader. This twoimportant components “Target Oriented goal” and “Leader in the market” has been taken intoperspective while naming the business. Initially a fund of $30,000 will be invested and also anadditional of $30,000 will be raised in long-term loan.Here cake will be produced based on the exact needs of the customers and will be customizedbased on the specific requirement or order put by the customers.We would provide service thatwould create an ultimate experience for our customer and would attract them to come again andagain that would in turn promote brand loyalty. Our service will have following points ofdifferentiation.RobinHood cake will be focused on notion of having hygienic, healthy, low calories, balanced dietand organic ingredients need of customers. On the same front it would taste good and would beavailable in variety of flavors.We will be forming Sole Proprietorship ownership type legal organization. This type of business iseasiest way to start because here the owner only needs to get a license to begin the operations. Thislegal type of business gives absolute control over the business than that of partnerships orcorporations. But in long run as the business grows, chances of forming a partnership orcorporation are there. Since this a sole proprietorship business model, it will compromise of oneowner as the Managing Director..Site that has been chosen to set up a retail outlet for DIY cake would be in the downtown area ofToronto. Such site would be the most happening area, flooded with people, high density ofcustomers and customers can easily have accessibility to our brand. On the same time our shopwill also get noticed by mass population.There lies a huge potential in the cake industry. This industry has already turned $1.6 billion andhas created a significant demand among the people. The cake market is expected to grow by 5.2%in coming years. The business will be operating all 7 days a week. Online orders will be accepted all the time 24hours a day. The working hours of business would be 7 a.m. – 8:00 p.m. The fund required bybusiness would be $30,000. Hence a capital of 75% that is around $22,500 will be invested fromthe owner’ side. 5|Page
  6. 6. 1. The Concept1. Introduction1.1.1 Industry OverviewDIY cake has been a growing market for a long time and has years to grow. The notion of “ do- it-yourself” style of business has been widely accepted and helps business to provide customizedservice and variance of a product that have the ability to suit the exact needs of the any customer.Here instead of standardizing the process of manufacturing cakes, the staff design the cake anddecorates it, with exact specification required by the customer keeping in mind the ceremony andevent where the cake is going to be used.1.1.2 Company OverviewRobin Hood Cake Café is the brand name and also the name of the company under which the DYIcakes will be offered. It is an establishment that will meet the growing trend for cakes in Torontoarea of Canada. The cafe will be a sole proprietorship owned company registered in Canada.This brand would serve the needs of customers of Canada, more specifically for those who live inToronto. Initially afund of $30,000 will be invested and also an additional of $30,000 will beraised in long-term loan.1.1.3 Our BusinessThis business catering to the cake market will have a basic motive to provide the freshest, tasty andhigh quality cakes that are made from natural ingredients. Our brand also addresses the need forhygiene and being conscious about a healthy diet for our customers. In our business we areplanning to run our business in retail outlets and also have plans to run our own franchise in thelong run. Our food hygiene guidelines and rules for preparing a cake will be applicable to anypremises in which our cakes are being prepared and delivered under our brand name.Other than just preparing cake, our purpose is to create an attractive ambience and a uniquecustomer experience when they come in touch with our brand.1.1.4 OurGoalsPhilanthropic Goals• Offering our customers the freshest possible cakes which are made from organic resources• Promoting the notion of “Go Green”, through our brand and advertising tools to protect our mother earth.• Dedicating 3.7% of our earned profits to support education for handicapped children. 6|Page
  7. 7. Business Goals• To supply optimum quality cakes with high customer delight• Providing an unique experience to our customer• Ensuring that the cake delivered is hygienic and is not a rich diet for customers.• Giving high efforts nearly 80 hours per month specifically for branding and promotion• Minimize our cost and maximize our effectivenessStrategic Goals• Participating in nation-wide and local trade or event shows• Raising funds in order to support our goals through interested capital investors• Achieving 95% customer satisfaction and ensuring more and more loyal customers• Achieving 10% of DYI cake market down the line in 3 years1.1.5 Our ObjectiveBusiness Objectives:• Offering a clean and well serviced cake café.• Providing healthy menu for all our customers.• Offering superior, quality, fast and friendly service for all our customers.• Establishing ourselves as one of the leading service provider in DIY cake industry.Financial Objectives:• Increasing our sales by 17.36 % within the first year• Exceeding our monthly forecasted sales.• Meeting annual forecasted profits.• Maintaining strong cash flow by meeting estimated cash flow balances.Marketing Objectives:• Maintain strong customer base through intensive marketing efforts by advertising and salespromotions.• Creating online advertising and maintaining word of mouth through our optimum service andquality of cakes• Creating a brand value• Ensuring brand loyalty1.1.6 Mission StatementOur company’s mission statement has been designed to help our customer get maximum benefitout of our service.1. We provide cakes that are healthy, fresh and organic , ensuring that our customer have a good diet2. We are adaptable with product menu to include gluten-free, vegan and sugar free treats.3. We provide cakes that can be customized and are very specific to the requirements and orders of the customers. 7|Page
  8. 8. 4. We guarantee immediate service with delivery at customer’s door step5. Cleanliness of the shop and the staff is very important to us.6. Being environmentally responsible is our prime motive1.1.7 Vision StatementOur company’s vision statement has been designed to view ourselves in long term as an aspiringbrand.1. We intend to adopt practices that are eco-friendly and helps nourishing our environment.2. We believe in providing best product for our customers with unique experience.3. We continue to invest through our own franchise network and partnering with other business and Non profitable organizations.1.1.8 Core ValuesOur business core values would lie in three key attributes of business that is “Service”, “Sustain”and “Contribute”.Service: Building an environment for our customers where they get best possible service andanexperience that let them come again and again.Sustainability:Taking approach that is sustainable and help retaining our business for a longerperiod of time.Community Contribution: Believing in educating handicapped children to raise their literacylevel and give them moral support to live their life and grow like others.1.2. Product and Services1.2.1 ProductRobin Hood Cake shop core product is “DIY cake” where DIY stands for do it yourself. Here cakewill be produced based on the exact needs of the customers and will be customized based on thespecific requirement or order put by the customers.Product will have 3 important points of differentiation1. Customers themselves can design the cake and give an order accordingly2. Cakes decorative will be supplied and will be available in handy where customers can choose the flavors, accessories and decorative items available in cake decorative kits3. Pre framed designs for cake with various occasions like “Birthday”,” Christmas”, New-year”, “valentine’s Day” etc. will be available; however customers will always have the choice to create their own design.4. Available in different flavors, with creams, toppings etc. but customer have the option to create their own flavor, toppings and raise the order.5. We are adaptable with product menu to include gluten-free, vegan and sugar free treats. 8|Page
  9. 9. 1.2.2 Service to customersWe would provide service that would create an ultimate experience for our customer and wouldattract them to come again and again that would in turn promote brand loyalty. Our service willhave following points of differentiation 1. Instant cake preparation and home delivery at customers door step 2. Able to take orders online, through m-commerce, e-portals and process order payments online through online banking system/credit cards/debit cards 3. High quality ambience and friendly staff putting customers at ease 4. Online cake designing portal of our brand, where customers can design the cake and put us the order.1.2.3 Attributes of our productRobin Hood cake will be focused on notion of having hygienic, healthy, low calories, balanceddiet and organic ingredients need of customers. On the same front it would taste good and wouldbe available in variety of flavors. In addition, the café will provide accessories such as earrings andpocketbook items that will appeal to both the male and female consumer. Our cakes will dedicatein creating specialty cakes for all occasions which can fit to the individual needs of our diversifiedcustomer base.We also take care of cross-contamination and make sure that the equipment, cloths, gadgets,cleaning products, ingredients and packaging used are free from bacteria and are sterilized wellbefore use.1.3 The Customers1.3.1 Target CustomerOur target customers are those who would require cake at different occasion with specific needs.All cake shops may not satisfy or full their needs as most of the shops provide pre designedfabricated cakes that are standardized and customers have to choose any one from the. Howeverwe are targeting customers who are in need for customized cakes for a special occasion, wherethey want a cake of their own design.The below table we can sees that in Canada people from different geographies and ethnicbackground are located. Also we can see that the Americans are the people who mostly constitutethe population of Canada, followed by Africans and Asians. 9|Page
  10. 10. Table 1.1So our prime target community groups would be the Americans, the Africans and theAsiansresiding in Canada.1.3.2 Target Customer’s Age Chart 1.1From the above chart we can clearly see the age group distribution. Canada has 25-34 age groupsas the highest proportion, followed by 16-24.So our prime target age groups would be customers would fall in between 15 - 35 year. 10 | P a g e
  11. 11. 1.3.3 Income classSince we would be providing customized cakes, we would be targeting both premium customers aswell as economical customers. We will have separate section for both. For economical class wewould target customers with an average disposable income of $3,500 to $10,000 per month.For premium class our target customers would be one with an average disposable income above$3,000 to $10,000 per month.1.3.4 Target SegmentOur prime target would be to raise volumes of sales by targeting specific occasions or events. Thisoccasion are ranked in order of their priority.Psychographically, our target is in identifying peoplewho enjoy luxury items, organic products, and care about their health and are Concern aboutprotecting environment.Our efforts would be to entertaining the Baby Boomers (those born 1946-64), Generation X (born1964-74), Generation Y (born 1975-95) and Generation Z (born 2000-2021).Our prime target would be to raise volumes of sales by targeting specific occasions or events. Thisoccasion are ranked in order of their priority. 1. Birthday 2. Cake Festivals 3. Marriage& Weddings 4. Anniversary parties 5. Baby showers 6. Valentine’s Day 7. Christmas 8. New Year 9. Family Functions 10. Bon Voyage 11. Bridal showers 12. Congratulatory celebrations 13. Graduations 14. Holidays i.e., Easter, Christmas, Fathers’ Day, Mothers’ Day, St. Patrick’s Day, Thanksgiving, Hanukkah, Kwanzaa, Earth Day, Passover, Memorial Day, etc. 15. New Home Welcoming 16. Retirements 17. Thank you giving 18. Other Occasions1.3.4 Target GeographiesWe would cater to the market of Canada. Initially we start from Toronto. Our main aim is to targetthe down turn area in Toronto. 11 | P a g e
  12. 12. 1.4 The Legal OrganizationWe will be forming Sole Proprietorship ownership type legal organization. This type of business iseasiest way to start because the owner needs to get only a license to begin the operations. Thislegal type of business gives absolute control over the business than that of partnerships orcorporations. But in long run as the business grows, chances of forming a partnership orcorporation are there.The sole proprietor’s income from business perspective is considered aspersonal income. Owner can declare income as part of Schedule C, Profit and Loss from aBusiness or Profession, with a standard 1040 Federal Individual Income tax return.The sole tradestructure is on the most straight-forward option of carrying a business. The individual is taxedunder the Inland Revenues Self-Assessment system, with income tax calculated after deductionfor legitimate business expenses and personal allowances. A sole proprietorship owner ispersonally liable for all the debts of the business, but also owns all the profits. In case of conflict ordamage, owner can lose his personal asset which may not be the part of business.Advantages of a Sole Proprietorship Quicker Tax Preparation Lower Start-up Costs Ease of Money HandlingDisadvantages of a Sole Proprietorship Personally Liable to damage Lack of Financial Controls Lonely at the Top Difficult to Raise Capital1.5 The OwnersSince this a sole proprietorship business model, it will compromise of one owner as the ManagingDirector. In this case owner himself/herself would remain the Chairperson. However it will haveboard of directors of 2 members to look into the business, audit and inspect that everything is righton the way. Equity Shares will be raised to attract more investors and agreement will be signedbased on mutual understanding, so that the investors gets maximum benefit out of the business.However owner will enjoy the maximum privileged power. 12 | P a g e
  13. 13. 2. Feasibility of Business2.1 LocationThis business is basically established and is registered with Canada. The DIY cake shop will belocated in the Toronto, which are the largest city of Canada and also the capital of the state ofOntario. Toronto is situated in the southern part of Ontario, on the northwestern shore of the lakeOntario. Toronto has 2.6 million residents and is expected to have highest demand for cakes inentire Canada, because of its presence of high income class people, young working group ofpeople and students and also a presence of lifestyle that would trigger several happenings, partythemes, celebrations, events and occasion all around the city raising the demand for food andbeverages. Toronto is one of the worlds most diverse cities counted by percentage of nonnativeborn residents, where about 48% of the entire population are born outside Canada and are not anative.2.2 SiteSite that has been chosen to set up a retail outlet for DIY cake would be in the downtown area ofToronto. Such site would be the most happening area, flooded with people, high density ofcustomers and customers can easily have accessibility to our brand. On the same time our shopwill also get noticed by mass population.The retail zone for the downtown area is the Downtown Yonge, area which located along theYonge Street starting from the College Street to Queen Street. This area has a large base of retailoutlets and customers, including the Toronto Eaton Centre indoor mall making this place catchierfor people. There is total estimate of 600 retail stores, 7 premium hotels and 150 restaurants andbars. In recent years the area has been experiencing faster growth as the Business ImprovementArea (BIA) has brought in new retail and also have improved the cleanliness of this this area tocater it at posh market. Downtown area is also the financial District, which is centered on theintersection of Bay Street and King Street.2.3 Site ExpensesSite expenses for private office available in down turn area would be $300 / 100ft² on lease. Sowith an expectation of a shop of 4500 square feet, the expenses will go about $13500 per year.However the cost of the area and land is increasing by 11.2% hence every year is the site expenseswill go high. Also the maintenance cost for land and building is increasing by 7% every year inToronto. Table 2.1 (Site Expenses) Expenses Year 1 Year 2 Year 3 Land Licensing Expense $1,200 $0 $0 Lease for Office Space (4500 Square ft.) $13,500 $15,012.000 $16,813.44 Site & Building Maintenance $450 $481.50 $515.21 Municipality Expenses $200 $214.00 $228.98 Electricity, Water and Other $750 $802.50 $858.68 Total Expenses $16,100 $16,510 $18,416 13 | P a g e
  14. 14. 2.4 Market Potential2.4.1 Market Growth and TrendThere lies a huge potential in the cake industry. This industry has already turned $1.6 billion andhas created a significant demand among the people. The cake market is expected to grow by 5.2%in coming years. The global cake market is expected to exceed $310 billion in 2015 as per theglobal industry analytics.This demand is being driven by change in the lifestyle of people, wherepeople want to celebrate, and cake is an effective means of showing joy and affection. Consumersare increasing to buy convenient cake. The global cake market has shown a recovery fromeconomic recession and is expected to record strong growth in the coming years. Factors triggeringthe expansion of cake market include affordability, convenience and health benefits of bakedgoods products. Demand for healthier fortified cakes has also driven sales in US and Canada.2.4.2 Market SizeThe Market size for cake industry in Canada is $3.060 Billion. The largest four players areestimated to account for less than 15.0% of total industry revenue.The annual revenue is $919 million with annual growth of 4.9% in 2012. The average profit hasbeen 18.7%, which employees nearly 18,943 people in Canada, with 2,807 businesses running fulltime.2.4.3 Market GapThis is a very high potential market because of their so market gap in this sector from variousperspectives.  Only 15% of total industry revenue are estimated to be captured by market leaders, which says that the vast area of customer are untapped and since major players do not have major share, it would be easy to enter the market.  The market size is $3.060 billion but the revenue is only $919 million, which says that around 67% of the market is untapped and hence there lies a huge opportunity with first mover advantage to cater those areas of customer that have not been addressed.  The market is growing and expected to grow at a higher rate of 5.2%, so definitely there will be a rise in demand for cakes and this mismatch of demand and supply would lead to a gap which can met effectively by entering the market at right time at the right place.  Need for mass customization, health conscious, fresh organic cakes with DIY style of business is lacking in existing industry which would be an advantage to penetrate the market with unique selling strategy.2.5 Competition2.5.1 CompetitiveStrategyIt is very important to enter into the market adopting certain strategy that will help winning edgeover others.Point of DifferentiationIt is very much important for the brand to create a unique selling proposition and inherit certainattributes in the product that would help the brand to penetrate and capture the market at a fasterspace overtaking the current players. We will be differentiating us through extremely flexible 14 | P a g e
  15. 15. product attributes and high quality of service. Our products would be different to other on thecontext of “Hygiene”, “Health” and “low calorific content”.Blue Ocean StrategyA strategy that can lead to wide spread innovation, such that it spreads radically and would givebirth to a new market which nobody thought of earlier will help a company take miles ahead ofadvantage than that of its competitors. Our focus is on DIY style of cakes, where customer candesign there cakes online or offline and cam raise an order. We would have the ability to providemass customization.First Mover AdvantageBest way to be in the market is to be the first to take advantage of existing product and enjoy beingfirst to keep idea in front of the customers. We will be almost the first player in the domesticmarket in Toronto, to launch our services online, where customers can book, order, design and getdeliveries through our online portals.2.5.2 Competitors Table 2.2(MajorBenchmark Supermarket Players)Direct CompetitorsDirect competitors are basically are those brands that do serve the same product having samesimilar features and target the same customer segment with their try to place their product on thesame market and can take away the market share. The direct competitors in Toronto are Iris SegalCakes, Ola Bakery & Pastries, Cake & Co and Black Forest Pastry Shop.In Direct CompetitorsIndirect competitors are basically are those brands that do not serve the same product having samesimilar features but target the same customer segment and hence their alternative product can takeaway the market share. The direct competitors for cake industry would mainly be market playersfrom Bakery, Sandwiches industry. 15 | P a g e
  16. 16. The indirect competitors in Toronto are Jennifers Kitchen,Voila Gluten-Free,COBSBreadOakville and Artisano Bakery Café.But on the same front Supermarket can also be an indirect competitorwhere they would sellvarieties of cake and other substitutes that may take away our shares. The competing supermarketsare Wal-Mart Publix, Marsh and Meijer.Sales Forecast for competitors Table 2.3 Competitors Brands FY 1 FY 2 FY 3 Iris Segal Cakes 32.30 $ 33.92 $ 35.61 $ Ola Bakery & Pastries 54.70 $ 57.44 $ 60.31 $ Direct Competitors Cake & Co. 41.56 $ 43.64 $ 45.82 $ Black Forest Pastry Shop 34.46 $ 36.18 $ 37.99 $ Jennifers Kitchen 37.87 $ 39.76 $ 41.75 $ Indirect Competitors Voila Gluten-Free Bakeries 21.98 $ 23.08 $ 24.23 $ ( Bakery & Sandwich ) COBS Bread Oakville 25.67 $ 26.95 $ 28.30 $ Artisano Bakery Cafe 28.90 $ 30.35 $ 31.86 $ 27,363.11 Wal-Mart Publix 23,900.00 $ 25,573.00 $ Indirect Competitors $ ( Supermarkets ) Marsh 213.00 $ 232.17 $ 253.07 $ Meijer 196.00 $ 215.60 $ 237.16 $2.5.3 Sustainable Competitive AdvantagesBased our competitive strategy mentioned above, we need to have few competitive advantageswhich include adaptability with time. This can be done by sticking to the following rules.1. Price structure remains competitive2. Our selection of cake designs is much more diverse and can be customized.3. We are adaptable to our customers a) Vegan cupcakes b) Gluten-free cupcakes c) Sugar-free cupcakes d) Nut free cupcakes4. We can adapt any cupcake design to any specific occasion5. We deliver immediately at door step of customers6. In an effort to help save the environment a percentage of our net profits go to the ConservationFund. 16 | P a g e
  17. 17. 2.5.4 Technology leadership Figure:2.1 Sources:http://www.emeraldinsight.com/journals.htm?articleid=1563060&show=htmlAdopting continuous technical innovation, brainstorming and focusing on continuousimprovement would help in building technical competencies. Sustainable strategies can be adoptedto keep core technical competencies up to date with the current need in this sector.2.6 Opportunities and threats2.6.1 Opportunities There is a chance to capitalize on the changing market need where customer are looking more into customized cake orders Vast area of cake market in Canada, Almost 675 of market size is un captured Online placing of orders, placing design and shopping for cake has not taken up at a large scale People are becoming more and more health conscious and looking for low calorie cakes that are hygienic and made from organic components. The use of ecofriendly technology has been becoming popular in the market There is lesser barrier to entry as very few players has captured vast market share. Domestic market in Toronto is booming and expected to have large customer base Cake market is growing and hence supply needs to be increased with increase in demand Changes in lifestyle of people to go living a life full of happenings, celebrations, occasions, events, festivals, ceremonies have given a thrust to the cake industry Need for instant home delivery and online payment have significantly risen2.6.2 Threats  Competitors can steal our idea, imitate, copy or build superior products on our lacunae.  Business may face trouble due to delayed breakeven and liquidity crisis  Partnership in long term may become an important issues  Breakdown in technological, online portals or maintenance can lead to unexpected shut down of business. 17 | P a g e
  18. 18.  Financial problems could threaten our first year’s success  Time management could falter our productivity  Substitute products can overtake our products  Misunderstanding with suppliers can lead to cost conflicts  Economy slowdown can lead to losses  Growing inflation can put pressure on increase of cost which may have a competitive disadvantage.2.7 Sales Forecast Table 2.4The sales are expected to grow at an average of 7.7% in the first year and in two year the sales willgrow by 16%. On the first year the company would incur loses and net cash flow would benegative, but in the second year it will be compensated and in the third year company is expectedto gives us significant profit.2.8 Protecting the Business2.8.1 Security SystemSecurity system and CCTV would be installed in the shop to avoid any loss or damage due to stealand robbery. This security system will be in a position to generate an alert in case of any ambiguityand will be able to communicate to the staff working in the store and also to the top managementlike Director and Board committee via Mobile commerce or SMS.In case of theft or robbery, staff would be provided with intelligence surveillance system wherethey can easily notify and alert to the nearest police station or emergency rescue ward throughmobile devise or an automated alert system enabled on the shop, that help notifying without lettingpeople know that an alert has already being send. 18 | P a g e
  19. 19. 2.8.2 Insurance PolicyWherever possible an insurance policy should be adopted. This will help in avoiding any lossesdue to personal damage, natural disaster or catastrophe. Especially insurance should be made forElectronic gadgets, LCD or LED TV in the store, software systems and infrastructure supportservice. All staffs would be covered under insurance policy.The insurance will be updated every time it gets expire and can help the business to get rid of anylarger future risk of damage caused to shop, business or staff.2.8.3 Contingency PlanningIt is very important to make proper budgeting and decide a backup plan in case the businessdoesn’t operate as planned, deviates from actual cost that what was expected or goes bankruptcy.A reserve fund has to keep aside as contingency, which can used to attain liquidity at the time offinancial crisis.It is estimated that 6.7% of every investment and 7.8% of monthly profit would be kept aside as acontingency to protect the business at bad times.2.8.4 Environmental and Legal IssuesIt is to me made sure that in no case our brand violates environmental or legal issues. A familiarlawyer can be appointed on contract based to keep in track that everything is set correctly and thatthere is nothing wrong which may lead to penalty in future. Corporate governance will bemaintained and auditing be done through external auditors to maintain the transparency andcredibility of our accounting system and align our financial statements up to standards which willbe released every quarters.2.8.5 Risk ManagementThere are several risks that may come into picture during the business operations like lack ofresources at any particular festive seasons or holidays, break down in technology or limited accessto technical equipment, changes in the schedule of college going students, lack of training and skillset of employees, unwanted halting of city due to strike or loss or damage due to natural disaster. In such cases the team should be have prepared to take up a backup plan with the motive to solvethe inconveniences caused without affecting the course of the project. The risk assessment will becontinuously monitored and updated with weekly assessments in order to avoid misunderstandingsand reschedule the tasks if needed. 19 | P a g e
  20. 20. 3.Marketing3.1 Business NameThe name of the business is “Robin Hood Cake Café”. Robin Hood name has been taken in frominspiring hero of English Folk, who was high skilled archer and swordsman. Here archer showsthat Robin Hood was very target oriented as he hardly missed the arrows on the target. Theswordsman shows that he was a charismatic leader. This two important components “TargetOriented goal” and “Leaders in market” has been taken into perspective while naming thebusiness.Other than this Robin Hood was known for helping the poor people by stealing from rich people.Our brand does the same, where we extract profit from customers and donate 3.7% of profit tosupport education for handicapped children.Robin Hood at became a popular figure in the medieval age and we aspire to become the same atthis modern age.3.2 Brand ImageBrand IdentityRobin Hood Cake shop will be known for core product is “DIY cake” where DIY stands for do ityourself. Here cake will be produced based on the exact needs of the customers and will becustomized based on the specific requirement or order put by the customers. Customers themselvescan design the cake and give an order accordingly. Cakes decorative will be supplied and will beavailable in handy where customers can choose the flavors, accessories and decorative itemsavailable in cake decorative kits.Brand NotionRobin Hood cake will be focused with a notion of having hygienic, healthy, low calories, balanceddiet and organic ingredients need of customers. On the same front it would taste good and wouldbe available in variety of flavors. Our cakes will dedicate in creating specialty cakes for alloccasions which can fit to the individual needs of our diversified customer base.Brand ValueOur business value would lie in three key attributes of business that is “Service”, “Sustain” and“Contribute”. Building an environment for our customers where they get best possible service andan experience that let them come again and again. Taking approach that is sustainable and helpretaining our business for a longer period of time.Believing in educating handicapped children toraise their literacy level and give them moral support to live their life and grow like others. 20 | P a g e
  21. 21. 3.3 Service/Product Mix Figure 3.1 Product Category Flavors & Toppings Occasion & FestivalsCakes: 1. Birthday• Economical Cake 57 variety Banana 2. Cake Festivals• Premium Cake, 13 varieties Blueberry 3. Marriage &• DIY Cake (Customized) Butter Pecan Weddings Caramel 4. Anniversary partiesSalad cake: Cheesecake 5. Baby showers• Mushroom salad with fresh Cherry 6. Valentine’s Daychicken grilled chunks Chocolate 7. Christmas• Spinach salad with grilled Chocolate Raspberry 8. New Yearshrimp Coffee 9. Family Functions Cookies & Cream feat. Oreo 10. Bon VoyageMiscellaneous: Cookie Cake feat. Oreo 11. Bridal showers• Cold Beverages Green Apple 12. Congratulatory• Custard Hazelnut 3.1 Figure celebrations• Puddings 13. Graduations Lemon Strawberry, Banana 14. Holidays i.e., Easter,Dessert Items: Christmas, Fathers’• Dessert-punch bowl cake Pomegranate Day, Mothers’ Day,• Chocolate cover fruit Raspberry St. Patrick’s• Drink smoothest Vanilla Day, Watermelon Thanksgiving,Teas and Coffees: Hanukkah, Kwanzaa, Wedding Cake• Green tea Earth Day,• Coffee White Chocolate Passover, Memorial• Bottle water Day, etc.• Lemonade 15. New Home Welcoming 16. Retirements 17. Thank you giving 18. Other Occasions 21 | P a g e
  22. 22. 3.3.1 Product Expansion Strategy Figure 3.2 Sources:http://www.2020outlook.com/productStrategy.htmlIn this case we are looking to build a new product with unique features that would help to boost ofcake industry on a cost effective platform. However the market that it will be catering to alreadyexists and brand will try to establish within the existing industry. As per the Ansoff matrix productdevelopment strategy has to be adopted.3.3.2 Product enhancement Figure:3.3 Sources: http://www.nousinfosystems.com/product_enhancement.php 22 | P a g e
  23. 23. Product enhancement can be done my undergoing a product/service gap analysis by listing theproduct with their features and existing brand catering in the same sector. In the matrix the areaswhere product features are being neglected by most of the major market players but is veryessential can be targeted and a complete new product feature can be designed and upgraded.It is important to choose the right person and technology at the right time to upgrade the productfeature. It is very important to identify the product’s new requirement and technical requirements.Once it is finalised it is important to understand the business investment required and whether itdevelop a break even situation or not. In case it’s financially feasible,a proper plan should bedeveloped and implemented. After implementation it is very important to monitor the new productfeature and keep maintaining and sustaining it. Figure 3.4 Sources:http://productstrategy.squarespace.com/product-strategy- /Moving too far to the right on the matrix can increase product development costs to anunsustainable level. Moving too far upward on the matrix can require unsustainable levels ofmarketing expenditures to increase the Companys visibility in unfamiliar territory.Here we will befocusing on the core space with the development of new product. Most important cost involved in this sector will be the cost of transportation and while over hauling and maintenance. Shipment of equipment’s can be optimized .The cost can be brought down by locating in all important areas where such need arises. Proper inventory management and MRP (material resource planning) incorporated with Total quality management on shop floor can help down to reduce the cost to large extent by bringing down the wastage of resources. Reducing the entire cycle of service time would help in cost reduction. Modern methods and use of IT solutions can help reduce the burden and cover more contracts at limited time. A good scalable amount of leads and contracts can reduce the cost significantly by economic of scale thus reducing the variable cost. A complete end to end value added supply chain collaborated with efficient partners, suppliers and distributors would help to have a control on quality. 23 | P a g e
  24. 24. 3.4 Pricing Strategy3.4.1 Target Based CostingRobin Hood Cake coffee will be designing a target based costing, where based on the ability ofcustomers to pay for a product; the product would be designed in such way that it canaccommodate the price for them. This pricing strategy would give a better prospective that weunderstand the customer’s economical need and hence try to fit them based on their purchasingpower. It is basically a bottom to top approach of costing in which, at first we see at top that howmuch the customer can afford to pay and then based on that cost the breakdown of prices are doneto each individual components and a price associated to it. It leads to standardization of product.3.4.2 Value Pricing.However for premium customer who are more concerned about ordering customized cakes, forthem vale pricing would be done. In this price more than the cost, the value that we are deliveringfor a given cost will be of higher concern. Higher cost may not be an issue, if customer is gettingthe desired quality for the paid price.It is basically a top to bottom approach of costing in which,based on customer’s requirement or design all the components or items are gathered and they areadded one after other to calculate the total price, checking at each stage that for the price assignedthe value has been added to the product or service. At last a final price is quoted to customer fortheir specific design. It leads to customization of product.Especially in the case of custom orders, which are essentially a service, consumers will be led tobelieve that they are getting a superior product.Our prices charged will be slightly higher than thatof our domestic competitors, mainly because we are striving for optimum quality in our products. Table 3.2 (Price catalogue) 24 | P a g e
  25. 25. 3.5 DistributionThe primary mode of distributing our product would be through our retail stores. In future we willbe letting our won franchise network to promote the product. However suppliers will be there tomeet our resource requirement.Over a period of time, we will start distributing our cakes through other channels and retail outletslike in multi-brand shopping mall where our products too would be available.We would provideservice that would create an ultimate experience for our customer and would attract them to comeagain and again that would in turn promote brand loyalty. Our service will have Instant cakepreparation and home delivery at customers door step.3.5.1 ERP enabled SystemsAn ERP enabled tool that work on both e-commerce and m-commerce platform would be used tointegrate all the business process into one. It would connect between customers, staffs,management team and staff on delivery and would help in making business transaction likeordering, buying, delivering and storage very on simple online or offline.System for OrderingWe would be able to take orders online, through m-commerce a mobile based application, e-ecommerce an online based web portal where customers would be in a position to view the menuand catalogues, watch out special offers and make their choice of cakes through drag and dropfeatures available. In case of customers who are looking for customized cake, can design a specialcake online through our simulation tool kit, that will help a customer to design his/her own cake onthe web through available set of wizards and then after finish the design he can finally place theorder through submit button. The orders would automatically come to the Staff at our outlet; withauto generated mails send to the webmaster and director. The customers will have the option tomodify the order, reach out our staff in case of query through SKYPE enable video chatting, textmessage chatting or a phone call through Skype. Other than that they can also communicate to usthrough mails, phone or Fax.System of BillingOnline processing of order will be available through the gateway payment facility which wouldaccept Credit card, VISA or master card, debit card for all banks in Canada and PayPal.They willalso be able to make payments through online banking or mobile banking system. On our shop towe will be expecting cash/ cheque/ cards to process their transaction.System of DeliveryWe will have a network of home delivery in nearby areas, where while placing an order, the orderwill be delivered at home once the cake has been made. Automatically a message would be sent tothe customer that the cake is ready and will delivered shortly, with details and phone number of theperson who will be delivering. On the same front the staff in charge of delivery would getcustomer details and contact with address and mobile number. He updates the progress tocustomers in case of any delay.Our online team can monitor anytime the exact position of staff on delivery on Google mapsthrough android enabled GPRS tracking system. Manager can anytime check the status of a 25 | P a g e
  26. 26. particular order that whether it is closed, opened or is in progress with percentage of progressmade.System of StoringAn inventory tracking tool will help us to manage of our resources and material to be stored. Thissoftware tool will generate automatic reports on the number of cakes ordered, their ingredients,flavors, requirements of stuffs, toppings etc. and will generate a net summary on total requirementof every detailed item in an hourly basis.This system will let us know the shortage or excess of anytime and thus would help in maintaininginventory at proper level with safety limit that would reduce the cost of storage.The software would also be in a position to alarm when it sees that there is a chances that the storewill go out of processing capacity due to large orders or shortage of any resources to meet thetarget in given timeline.3.6 PromotionWe are expecting to come in touch with our customers through the internet by means of socialmedia like Facebook, promoting through twitter. A website will be freshly launched that willdedicate in order to sell our product, will help in branding and promoting our brand value. Other than promoting from internet, business corporate cards, brochure with menu andproduct selection will help in promoting our brands. Pamphlets, posters and flyers will be used inStreets of Toronto to attract customers. Use of media, newspaper will too be used to promote ourbrand and products and convey that how we are unique over other players.We hope to contact our customers through the Internet by the use of social Networking sites, suchas Facebook, and our own website in order to sell our products as Well as attract people to our onlocation business. Beyond an Internet connection, we will incorporate business cards, brochuresthat provide our menu and product selection, a Window display that will be a direct aestheticappeal, and in the beginning use Advertisements in the newspaper to introduce our new business.Various modes of Promotion would be as follows3.6.1 Sales PromotionFree Samples would be distributed to people in malls and near our shop to try and experience ourproduct. This sampling will help in promoting our brand. Weekly Sale Item would help in raisingthe sales to a new level at end of every weak. Organizing Trade showson retail mall would helppeople come I touch to the brand and be aware of our products in the market.Sponsorship or corporate social responsibility will be a catchy way to attract mass youth at atime.3.6.2 Direct Marketing Direct marketing can be an effective tool to promote brands through media sources likeRadio.Two weeks prior to grand opening of Robin Hood Cake café, several 30-second plots ofannouncement will do in radio FM of Toronto. The advertisements will be aired 2-5 times aneveryday which will help in grandopening. Local Newspaper advertisement would help in raisingawareness as well as credulity of the brand , as Newspaper are being read by mass population andis also trusted upon the facts portrayed by newspaper. 26 | P a g e
  27. 27. 3.6.4 Viral MarketingInternet marketing would help in gaining attention of huge population through word of mouth.Blogs and word press can be used to promote opinions on the product and how people would loveto have it. A video promotion or illustrators on YouTube can give an extra mileage to viralmarketing.Social networking forum like Facebook, MySpace have communities where posting can lead us tofootfalls or posting of link that direct to company website would generate traffic for awareness.Website will help customer direct, place order, watch brochures, make payment and get orderonline. Sending of Direct Mail to people from customer’s database and bulk SMS to targetcustomers can help us achieving a high footfall in our shop.3.6.5 Display marketingPosters, banners can help us attract attention of customer in an unconscious state while aretravelling on road or walking. Pamphlets, flyers put inside newspaper or supplied at door step canbe of great help. Digital boards and display can make an added advantage.3.6.7 AlliancesOur brand will work with some of the corporate companies in the area to display flyers in theirgallery areas. The expectation is that staff members will see the flyer and visit the café. Orstrategic alliances to share common resources while branding where both of us will be marketingeach other’s product would help in getting higher sales volume.3.7 Sales planWe will be focusing on following areas to generate higher sales Allocating sales quota for each day and target quota for a month that will be set as a benchmark to be achieved. Sales success would require planning. A sales strategy would be formulated to achieve sales success in stipulated time by setting reward system for marketers and ensuring superiors quality service and value pricing. Sales promotion technique like discounting, providing coupons, seasonal offers and free gifts will boost up the sales at the odd times. Constantly Reevaluating sale potential on a monthly basis will give idea on if any changes required on the existing advertisement techniques. Free home delivery would attract customer to make more orders sitting at their homes. Bringing the concept of loyal customer pricing will be of worth, where more a customer buys our product, more is the discount/bonus/reward points the customer gets on buying a product next time. The café will review its comprehensive tactical plan to identify weakness in its components. If there are components that are not delivering then they will be identified and altered to produce the desired results. Sales will be boost up varying the promotional strategy and devising a new sales strategy based on expected demand, market potential and festive seasons. Grand promotions at festive seasons, with special offers and combo packages can help customer to buy in higher volumes. 27 | P a g e
  28. 28. 4. Operations4.1 Space and EquipmentSpaceInitially a space of 4500 square feet will be required to set up the cake shop outlet. This space willbe taken indowntown area which located along the Yonge Street starting from the College Street toQueen Street in Toronto.Site expenses for private office available in down turn area would be $300 / 100ft². The space willbe taken on lease initially for 4 to 5 years. So with an expectation of a shop of 4500 square feet, theexpenses will go about $13500 per year. However the cost of the area and land is increasing by11.2% hence every year is the site expenses will go high. Also the maintenance cost for land andbuilding is increasing by 7% every year in Toronto. Table: 4.1 Expenses Year 1 Year 2 Year 3 Land Licensing Expense $1,200 $0 $0 Lease for Office Space (4500 Square ft.) $13,500 $15,012.000 $16,813.44 Site & Building Maintenance $450 $481.50 $515.21 Municipality Expenses $200 $214.00 $228.98 Electricity, Water and Other $750 $802.50 $858.68 Total Expenses $16,100 $16,510 $18,416Equipment’sThe equipment’s that would be need would include 2 iMac 21.5” (3.1 GHz), DomainName,website hosting service, Business License, commercial food mixer , RefrigeratedMerchandiser, Doors, Diamond Series , Double Standard Roast, Oven, Ingredients ,Cell Phones ,Desk Phones , Cooking supplies, Delivery Van , Extra . Table 4.2 28 | P a g e
  29. 29. 4.2 Organization4.2.1 Organization Structure Figure 4.1The management team will consist basically President/owner who will look into the entireoperations and execution of business. The Web master/marketing specialist will be supervised andreport to president. All other employees and staff will report to the Web Master/MarketingSpecialist. Web/master will be the person who would be driving the entire marketing needs ofbusiness and would be generating leads for the business. Since our company has the convenienceof being a small business, the President can step in at any point to help the company run smoothly.4.2.2 Personnel Plan/Job DescriptionsThere will be all total 3 full time positions and 3 part time positions on contract, which wouldinclude cake artist, Web designer and delivery person. The business will be operating all 7 days aweek. Online orders will be accepted all the time 24 hours a day. The working hours of businesswould be 7 a.m. – 8:00 p.m. The job description would be as followsWeb Master/Marketing Specialist (1 Full Time position)His/her responsibilities are:a) Design and maintain websiteb) Process online order and raise a requestc) Handle customer inquiriesd) Manage e-mail liste) Maintain blogsf) Post online press releasesg) Collect customer databaseh) Implement sales techniquesBakers/Creative Cake Artist ( 2 Full Time position)Their responsibilities are:a) Processing and login in customer orderb) Scheduling an order on calendar and start processing itc) Handling customer inquiries/confirming customer requirements 29 | P a g e
  30. 30. d) Creating customized cakese) Scheduling deliverf) Handling orders that come offline in the outletsg) Pricing for customized cake or specific ordersDelivery Driver (2 Full Time position)Their responsibilities are:a) Confirming details of delivery with location and timeb) Communicate with staff and customerc) Contacting customer to notify expected time of delivery and deliver receiptd) Loading product in the vehicled) Delivering producte) Thanking customer and leave business cardf) Maintaining vehicle’s resources like gas, oil and performing general repairs, overhauling etc.4.3 Management team4.3.1 Employee Engagement. Figure 4.2Engaging employee and keeping them motivated in work is very important. Alienation of employeescan result in low productivity. An individual should never get detached from his/her work leadingwhich would result in low productivity. Most of the companies give a lot of emphasis on this. It alsohelps in building team synergy.It is very important that an enthusiast leader takes care of the entire process. An employee should besurrounded by supportive coworkers, should be satisfied with job and career within a high performingorganization. As a result we industry owner’s get a committed set of employees who are satisfied andloyal to their customers. Organizations retain a high performing efficient workforce making it aproductive and profitable organization.4.3.2 Proper goal setting. Setting up of goal is very important. A goal is effective only when every individuals personalgoal is inclined with the organizational goal and if both of these goals are different then anindividual gets detached from his goals which may lead to alienation. To set a good goal we shouldtrain employees to build up a specific goal which should be measurable. 30 | P a g e
  31. 31. The goals must be assignable to individual or group and should be realistic enough to attend thosegoals within the stipulated time. However every goal should be time based and associated with adeadline that is feasible enough. Figure 4.34.3.4 Managing work force diversityManaging work force diversity is very important due to varied culture of people belonging todifferent society. When people are treated indifferently and do not resemble or fit in a particularsociety/environment of work, they get isolated leading to alienation. Most of the top marchingcompanies have adopted effective management strategies to overcome differences caused by workforce diversity to avoid alienation.It is to be kept in mind that the policies are fair for every individual irrespective of gender, ethnics,caste, culture, gender. All employees should be made satisfied and engaged in work equally.Diversity of each individual should be considered and their sentiments should never bedisappointed or discouraged just because they are different. Figure 4.4 31 | P a g e
  32. 32. 4.3.5 Adopting Flat Organizational Structure Figure 4.5Instead of adopting a traditional hierarchy based organizational structure a flat organizationalstructure would remove the communication gap and would help in free cob – web networking modeof communication where people can express freely removing the power apart and meeting efficiencyin team work. Most of the contemporary companies are adopting it because lack of communicationover a longer period of time can lead to alienation.4.4 Regulations Our brand will be liable to pay compensation for damage and losses due caused by any of our product. We would encourage scientific and technological research in this industry to extent our technical reach. Any unit or individual who achieves an outstanding outcome will be rewarded. Our brand wouldsafety of customer and ensure that it do not have any chemicals or ingredients that is not good for health. The complete department who is taking charge cake processing will held e responsible for any dispute in accounting system or violation of customers right. All technical control system would be centralized. We would strictly adhere to the socialist operation and management, pursuing the aim of serving people, improvises operation and management. We shall care for and abide by environmental regulations, emission on chemicals and we would certified by government body. 32 | P a g e
  33. 33. 6. Finances6.1 Start-up Requirements Table 6.1Survival of BusinessA minimum amount of $11,687has to be withdrawn to meet the monthly expenses for the survivalof business.As expected every month $5,730 has to be withdrawn to meet operational expenses, minimum $800 and $4800 for the payment of VAT, Sales Tax and Bill respectively and an amount of $ 357for Long term liabilities 33 | P a g e
  34. 34. Table 6.2 Minimum Expected cash to be withdrawn from business per month Minimum Monthly Expenses Amount Cash spending for Monthly Operations $5,730 Minimum VAT that would be Paid $800 Minimum Bill Payments $4,800 Long Term Liabilities Repayment $357 TOTAL WITHDRWAL $11,687From the cash flow statement in in table 6.5, we have identified the average minimum amount cashthat has to be withdrawn from business and has been listed in table 6.2.Survival of OwnerThe minimum amount of money that I would have to withdraw from business to meet my personalobligations would be $15,760, of which 60% of the amount which is $ 9546 will be kept as capital.Further 20% of this capital that is $1890 will save as a contingency amount to meet the emergencyor situation when business goes out of liquidity or cash.In long run business will generate profit, 7.8% of profit will be also kept aside as contingency.6.2 Owner’s InvestmentThe fund required by business would be $30,000. Hence a capital of 75% that is around $22,500will be invested from the owner’ side. No loans will be taken from banks to fetch this money. Thecapital of owner would be invested mainly in assets, buying equipment’s and allocating space forretail outlets as they are prime need. The amount that will obtain from other means would be usedfor marketing.6.3 Borrowed MoneyInitially no amount will be borrowed in the form of loans. We will not indulge with bank and takeloan as it would lead to pay back of interest which would decrease our profits over period of time.All borrowing would be made from family, friends, venture capitalist and public. It will bedividing in the following way. • 5% of capital be raised from Family and Friends which accounts to be around $ 1,5000 • However 10% of funds would be raised from one or at max two capital ventures which would account for $3,000 • Rest 10% would be open to public trade market to invest which would account for $ 3,000. 34 | P a g e
  35. 35. 6.4 Balance Sheet Table 6.3 35 | P a g e
  36. 36. 6.5 Income Statement Table 6.4 36 | P a g e
  37. 37. 6.6 Cash Flow Statement Table 6.5 37 | P a g e
  38. 38. ReferencesArkebauer, J. B. (1995). The McGraw-hill guide to writing a high-impact business plan: A provenblueprint for entrepreneurs. New York: McGraw-Hill.Barrow, C., Barrow, P., Brown, R., & NetLibrary, I. (2008). The business plan workbook[electronic resource] plan (6th ed.). London ; PhiladelphiaBlackwell, E., & Thomson Gale. (2007). How to prepare a business plan [electronic resource] (Rev4 ed.). Farmington Hills, Mich.: Thomson Gale.Dettmann, R. (2008). Organic produce: Who’s eating it? (Selected paper for presentation at theAnnual AmericanAgricultural Economics Assoc. meeting Orlando, Florida: Economic Research Service, USDA.Retrieved fromDOWNLOAD:Restaurant training manual templates. (2011). Retrieved March 19, 2011, fromhttp://www.restaurantowner.com/public/176.cfmDwyer, B. (2010). Market analysis: Celiac age and demographics. Retrieved March 17, 2011, fromhttp://brucedwyer.com/market-analysis-articles/85-celiac-age-a-sex.htmlEntrepreneur Staff. (2010). Starting a business: The idea phase. Retrieved Oct. 7, 2010, fromhttp://www.entrepreneur.com/article/217368Glaberson, H. (2011). Retailers help to fuel gluten-free boom, euromonitor. Retrieved Feb. 8,2011, from http://www.bakeryandsnacks.com/Markets/Retailers-help-to-fuel-gluten-free-food-boom-EuromonitorHanson, N. (2004). Organic food sales see healthy growth. Retrieved Feb. 23, 2011, fromhttp://www.msnbc.msn.com/id/6638417/Ivy Huges. (2010). A simple plan. Retrieved Oct. 7, 2010, fromhttp://www.entrepreneur.com/magazine/entrepreneur/2010/august/207578.htmlKuiper, S., & Kohut, G. F. (1999). Write to win!. Cincinnati, Ohio>: South-Western College Pub.Runningen, R. (2011). Obama economic report says U.S. recovery taking hold followingrecession. Retrieved Feb. 23, 2011, from http://www.bloomberg.com/news/2011-02-23/obama-economic-report-says-u-s-recovery-takinghold-following-recession.htmlThe Hartman Group. (2006). Who’s buying organic?: Demographics 2006. Retrieved March 17,2011, from http://www.hartman-group.com/hartbeat/2006-05-17Dwyer, B. (2010). Market analysis: Celiac age and demographics. Retrieved March 17, 2011, fromhttp://brucedwyer.com/market-analysis-articles/85-celiac-age-a-sex.html 38 | P a g e
  39. 39. Entrepreneur Staff. (2010). Starting a business: The idea phase. Retrieved Oct. 7, 2010, fromhttp://www.entrepreneur.com/article/217368ESRI, I. (2011). Tampa bay relocation- demographics. Retrieved Feb. 22, 2011, fromhttp://www.tampa4u.com/demographics.htmlThe Tampa Bay Partnership. (2011). 2011 regional profile. Retrieved Feb. 22, 2011, fromhttp://www.tampabay.us/relocation-information/regional-data-profile.aspxTim Berry. (2010). 5 easy ways to kick start your business planning. Retrieved Oct. 7, 2010, fromhttp://www.entrepreneur.com/article/217257 39 | P a g e

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