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Ice Cream Parlor
BUSINESS
PLAN
The best ice cream bar that ever existed
Prepared By
John Doe
(650) 359-3153
10200 Bolsa Ave, Westminster, CA, 92683
info@upmetrics.co
https://upmetrics.co
Table of Contents
Executive Summary 4
3 Year profit forecast 5
Chart 5
Objectives 5
Mission 6
Keys to Success 6
Business Summary 7
Overview 8
Start-up Summary 8
Startup cost 8
Chart 8
Funding Required 9
Company Ownership 10
Products and Services 11
Frozen Custard 12
Italian Ice 12
Market Analysis 13
Market Segmentation 14
Marketing share 14
Chart 14
18-24 Year Olds 15
First Families 15
Other 15
Market Analysis 15
Target Market Segment Strategy 15
Industry Analysis 16
Competition and Buying Patterns 16
Competitors 16
Strategy and Implementation Summary 17
Competitive Edge 18
Milestones 18
Marketing Strategy 19
Sales Strategy 19
Sales Forecast 19
1 / 33
Sales Yearly 20
Chart 20
Management Summary 21
Personnel Plan 22
Average Salaries 22
Financial Plan 23
Important Assumptions 24
Brake-even Analysis 25
Projected Profit and Loss 26
Profit Yearly 27
Chart 27
Gross Margin Yearly 27
Chart 27
Projected Cash Flow 28
Projected Balance Sheet 30
Business Ratios 31
2 / 33
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[YEAR] Business Plan | Ice Cream Parlor 3 / 33
1.
Executive Summary
Objectives
Mission
Keys to Success
[YEAR] Business Plan | Ice Cream Parlor 4 / 33
Before you think about how to start a Ice Cream Parlor services, you must
create a detailed Ice Cream Parlor business plan. It will not only guide you in
the initial phases of your startup but will also help you later on.
Start Writing here...
Zero Degree Frozen Ice will be an ice cream shop located on a busy street in
Davis Plaza in Davis, California. Pence's is a start-up shop and has long-term
presence plans in the Eugene/Springfield market. Along with a $17,000
investment by Rowland Pence, Pence's Frozen Custard hopes to initially make
a successful effort to secure start-up financing through a combination of
3 Year profit forecast
Financial Year Sales Gross Margin Net Profit
Year1 10000 500 6000
Year2 12000 800 8000
Year3 14000 1200 10000
Sales Gross Margin Net Profit
Year1 Year2 Year3
0
5.00k
10.00k
15.00k
Objectives
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[YEAR] Business Plan | Ice Cream Parlor 5 / 33
Start Writing here...
Zero Degree Frozen Ice has three main objectives:
1. To be rated one of the top sit-down dining restaurants in Davis,
California,
2. To support the local youth in Davis, California.
Mission
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The mission of Zero Degree Frozen Ice is to provide an inexpensive eatery for
families on the go throughout the county of Davis, California. In turn, the
Parlor's mission is also to give back to the community by creating employment
opportunities for high-school students, college students, and stay-at-home
mothers; subsidizing programs and sports activities that are in jeopardy of
Keys to Success
Start Writing here...
The keys to the success of the Restaurant are as follows:
1. Good hometown cream making
2. Affordable prices
3. Daily community activities
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[YEAR] Business Plan | Ice Cream Parlor 6 / 33
2.
Business Summary
Overview
Start-up Summary
Funding Required
Company Ownership
[YEAR] Business Plan | Ice Cream Parlor 7 / 33
Overview
Start Writing here...
Zero Degree Frozen Ice will purchase a frozen custard mix and Italian Ice base
from a distributor in Pennsylvania. We will use a frozen custard freezer to
quickly freeze the custard product into a premium, dense, and creamy frozen
dessert. We will feature vanilla and chocolate flavors each day plus one or two
additional flavors of the day.
Start-up Summary
Start Writing here...
To start up this business, we expect to incur a short-term debt of $5,000 to
cover initial inventory and other expenses for the first three months. We also
anticipate the need for a long-term loan of $70,000 to cover equipment and
fixtures costs. We also expect to incur $675 worth of legal expenses based on
the cost of forming the LLC and other legal liability issues.
Startup cost
Cost distribution Amount
Expenses 1550
Assets 1800
Investment 2050
Amount
Expenses Assets Investment
0
1.00k
2.00k
3.00k
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[YEAR] Business Plan | Ice Cream Parlor 8 / 33
Funding Required
START-UP FUNDING Amount
Start-up Expenses to Fund $5,062
Start-up Assets to Fund $94,938
TOTAL FUNDING REQUIRED $100,000
Assets
Non-cash Assets from Start-up $70,120
Cash Requirements from Start-up $24,818
Additional Cash Raised $0
Cash Balance on Starting Date $24,818
TOTAL ASSETS $94,938
Liabilities and Capital
Liabilities
Current Borrowing $5,000
Long-term Liabilities $70,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $75,000
Capital
Planned Investment
Rowland Pence $15,000
Investor 2 $10,000
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $25,000
Loss at Start-up (Start-up Expenses) ($5,062)
TOTAL CAPITAL $19,938
TOTAL CAPITAL AND LIABILITIES $94,938
Total Funding $100,000
[YEAR] Business Plan | Ice Cream Parlor 9 / 33
Company Ownership
Start Writing here...
The company will be owned by Rowland Pence and one or two additional
partners. Pence will contribute $15,000 and the other investor(s) will contribute
a combined additional $10,000. This will keep the majority of the equity in the
company under Pence's control. A buy/sell agreement will be established with
the other investors when the Limited Liability Corporation (LLC) is formed, to
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[YEAR] Business Plan | Ice Cream Parlor 10 / 33
3.
Products and
Services
[YEAR] Business Plan | Ice Cream Parlor 11 / 33
Before starting an ice cream parlor business, you must take many things into
consideration such as you must consider what types of ice cream services will
you be providing to your customers. Deciding your services is extremely
important since it helps you plan other components of your business so make
sure to consider it before you think about how to start an Ice Cream parlor.
Start Writing here...
Pence's will sell premium fresh-made Frozen Custard and Italian Ice. Frozen
Custard is a natural, wholesome, frozen dairy product. It differs from ice cream
in both taste and texture. Currently, the popular product known as Frozen
Custard in the Midwest and on the East Coast is not available in California.
There are a handful of small businesses in California that sell a product they
Frozen Custard
Start writing here...
Rich Flavor because it is made with an Egg Base
Less Fat and Sugar than Most Premium Ice Creams
Smoother and Creamier Texture (no ice crystals as in ice cream or ice
milk.)
Old-Fashioned Homemade Taste (made fresh every day.)
Italian Ice
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A Fruit-flavored ice mix with a smooth texture (very small ice crystals)
A Sweet and Fat-Free frozen product
Made without Dairy or Egg products
Made with Real Fruit Concentrate
Start Writing here...
Both Frozen Custard and Italian Ice are lower in fat and sugar content than
other premium ice creams available on the market. Our product is creamier and
smoother in texture than ice cream, and it is the only product available as hard
serve from a soft-serve machine. This is because Frozen Custard is made
using a unique machine called a batch freezer. This freezer pumps less air into
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[YEAR] Business Plan | Ice Cream Parlor 12 / 33
4.
Market Analysis
Market Segmentation
Market Analysis
Target Market Segment Strategy
Industry Analysis
[YEAR] Business Plan | Ice Cream Parlor 13 / 33
The most important component of an effective ice cream business plan is its
accurate marketing analysis. If you are starting on a smaller scale, you can do
marketing analysis yourself by taking help from this auto detailing business
plan sample or other auto detailing business plans available online.
Start Writing here...
The market we will engage in is the Eugene-Springfield metropolitan area. The
specific market we will serve consists of a 25 square block radius around our
scoop shop and includes the university student population and those primarily
within walking distance of the shop in downtown Eugene. The overall age
demographics of the population break down as follows:
Market Segmentation
The potential customer groups for Zero degree Frozen Ice are:
Marketing share
Segments Market share
18-24 Year Olds 45
First Families 35
Other 20
18-24 Year Olds: 45.0 %
18-24 Year Olds: 45.0 %
First Families: 35.0 %
First Families: 35.0 %
Other: 20.0 %
Other: 20.0 %
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[YEAR] Business Plan | Ice Cream Parlor 14 / 33
18-24 Year Olds
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Our market research indicates about 38,000 potential customers in the
Eugene-Springfield area who are within this age range. The target customer is
going to be a part of the "town and gown" niche: half college students and half
local residents. They have a tendency to spend more than they can afford on
prestige products.
First Families
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These are the grown children of the baby boomer population having children of
their own. Most of their children are not yet teens. By targeting this group, we
can not only generate a large volume of immediate business but also create
long term customers in the children. We also have found that families are
eating out at ice cream and frozen yogurt shops more, because such places
Other
Start writing here...
Our downtown location and increasing customer base will probably draw in
customers outside of our targeted groups, including those attending the
Saturday market, coming downtown to shop, or attending plays or musical
events. We conservatively estimate this third market segment at about 3,160
people (1% of the total local population).
Market Analysis
Potential Customers Growth YEAR 1 YEAR 1 YEAR 3 YEAR 4 YEAR 5 CAGR
18-24-Year-Olds 3% 38,040 39,181 40,356 41,567 42,814 3.00%
First Families 4% 55,852 58,086 60,410 62,826 65,339 4.00%
Other 1% 3,160 3,192 3,224 3,256 3,288 1.00%
Total 3.52% 97,052 100,459 103,989 107,649 111,441 3.52%
Target Market Segment Strategy
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[YEAR] Business Plan | Ice Cream Parlor 15 / 33
Start Writing here...
The 18-24-year-old go out for ice cream more than any other age group. Within
the 18-24-year-old group, the "town and gown" niche is very important,
because they heavily populate the area surrounding the store's location. They
are reachable through music, specifically R&B, and they prefer prestige
products, which match our choice of product offering.
Industry Analysis
Start Writing here...
The frozen dessert industry experienced sales of more than $20.7 billion last
year, with $13 billion of that on "away from home desserts."
The frozen dessert market is expected to grow by seven percent each year
through 2008. There are several existing competitors in the community,
including Pearl Street Ice Cream Parlour, Dairy Queen, Ben and Jerry's
Competition and Buying Patterns
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In the frozen dessert industry, consumers make purchasing choices for a
number of reasons. Perceived quality of the product is essential for consumers
going out to eat, because of the price premium they must pay. A gallon of
generic (or even name-brand) ice cream in the grocery store will cost about as
much as servings for one or two people at a scoop shop. Most of our
Competitors
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Zero Degree Frozen Ice faces approximately 15 competitors in the Eugene
area. The top competition comes from several national chain stores that have
years of experience and significant brand recognition as well as several locally
based competitors. In spite of all the competition, each of these scoop shops
remains profitable and open year-round.
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[YEAR] Business Plan | Ice Cream Parlor 16 / 33
5.
Strategy and
Implementation
Summary
Competitive Edge
Milestones
Marketing Strategy
Sales Strategy
[YEAR] Business Plan | Ice Cream Parlor 17 / 33
After identifying the market demand, market trends, and the potential
customers of the startup, the next step is to define an effective strategy for
attracting those customers. Like marketing analysis, sales strategy is also an
important component of an Ice Cream parlor business startup and must be
properly planned before you think about starting your own Ice Cream Parlor.
Start Writing here...
Zero Degree Frozen Ice will succeed in the Eugene market by selling a unique,
fresh, high-quality product that exceeds customer expectations. We will focus
on the local market, targeting two specific market segments, in an attempt to
achieve the best reputation in our segment. We will strive to increase brand
awareness among our target market during our first year of operation as a way
Competitive Edge
Start Writing here...
Pence's Frozen Custard has two competitive edges:
Rich and creamy, high class, low fat, frozen desserts.
Our friendly, neighborly approach to customers.
Milestones
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The following table lists important project milestones to be undertaken before
the business opens, during the start-up period, and immediately after opening
the doors. The table lists the dates and managers in charge and budgets for
each milestone. The milestone schedule indicates our emphasis on planning
for implementation.
Milestone Start Date End Date Budget Manager Department
Frozen Custard Taste Tests 8/1/2004 9/25/2004 $150 MB ProDev
Italian Ice Taste Tests 8/1/2004 10/25/2004 $150 MB ProDev
Business Logo/Sign
Development
1/1/2005 1/30/2005 $400 MB Marketing
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[YEAR] Business Plan | Ice Cream Parlor 18 / 33
Investment Campaign 8/15/2004 2/10/2005 $200 MB Admin
Product Packaging 12/10/2004 3/10/2005 $200 MB Marketing
Design Advertisements 1/20/2005 3/30/2005 $250 MB Marketing
Open Doors 4/1/2005 4/1/2005 $0 MB Marketing
Grand Opening Ad Campaign 4/18/2005 6/18/2005 $2,000 MB Marketing
Brand Awareness Campaign 4/10/2005 7/20/2005 $1,100 MB Marketing
Targeted Ad Campaigns 5/15/2005 10/31/2005 $4,000 MB Marketing
Totals $8,450
Milestone Start Date End Date Budget Manager Department
Marketing Strategy
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Pence's Frozen Custard will use multiple methods to approach its target
markets. Since our most difficult task will be attracting customers for that first
tasting, we have a two-tiered approach. First, a mass mailing campaign will
create customer awareness and generate trial. This will include coupons and
our "Grand Opening" offer: with a coupon, your first dessert at Pence's in April
Sales Strategy
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Our sales strategy focuses first on providing the highest quality products and
services to our target customers. Once a customer enters our store, it is our
job to make sure their experience with us is enjoyable. Product offerings and
prices will be clearly posted behind the counter, and scoopers will be educated
about the ingredients and processes involved in each one, so they can answer
Sales Forecast
Our sales will largely be determined by foot traffic in the area, the season of
the year, and current weather conditions. We estimate first-year sales of
approximately $66,840, $97,760 in the second year, and $113,402 in the third
year following this plan.
These sales forecasts are based on several real-world observations. On a rainy
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[YEAR] Business Plan | Ice Cream Parlor 19 / 33
Sales Forecast
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Sales Yearly
Financial Year Total Sales
Year1 66840
Year2 97760
Year3 113402
Total Sales
Year1 Year2 Year3
0
50.00k
100.00k
150.00k
[YEAR] Business Plan | Ice Cream Parlor 20 / 33
6.
Management
Summary
Personnel Plan
[YEAR] Business Plan | Ice Cream Parlor 21 / 33
Start Writing here...
Rowland Pence has a strong entrepreneurial spirit and he is prepared to invest
a great deal of time and effort over the coming years to make Zero degree
Frozen Ice a successful business venture. The owner has an outside income
source and does not expect to see returns on his initial investment until year
four. Mr. Pence shall act as the store manager, with the other owners acting as
Personnel Plan
Start Writing here...
We expect seasonal hiring of part-time employees. Because we will offer no
benefits to our employees, full-time employees will not be hired (nor are they
necessary through the first year.)
We foresee hiring two or three part-time employees besides the two or three
owners to begin working in May. Our two or three employees will share hours
Average Salaries
PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3
Part-time employees $8,094 $11,837 $12,784
Owner - Rowland Pence $0 $0 $0
Other Owner(s) $12,000 $12,000 $18,000
Total People 3 4 4
Total Payroll $20,094 $23,837 $30,784
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[YEAR] Business Plan | Ice Cream Parlor 22 / 33
7.
Financial Plan
Important Assumptions
Brake-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios
[YEAR] Business Plan | Ice Cream Parlor 23 / 33
The last component of an Ice Cream Parlor business plan is an in-depth
financial plan. The financial plan crafts a detailed map of all the expenses
needed for the startup and how these expenses will be met by the earned
profits. It is recommended that you use our financial planning tool for guiding
you through all financial aspects needed to be considered for starting an Ice
Cream Parlor business.
Start Writing here...
Rowland Pence's Frozen Custard expects to raise $70,000 in long-term debt
with $25,000 from the owners. A short term loan of $5,000 will be used to
maintain a level of cash necessary to maintain expected inventory levels and
to buy additional inventory should sales be higher than expected. The long-
term debt will be paid back over the next ten years. No other immediate
Important Assumptions
The financial projections of the company are forecast on the basis of the following assumptions. These
assumptions are quite conservative and are expected to show deviation but to a limited level such that
the company’s major financial strategy will not be affected.
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%
Other 0 0 0
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[YEAR] Business Plan | Ice Cream Parlor 24 / 33
Brake-even Analysis
Monthly Units Break-even 5530
Monthly Revenue Break-even $159 740
Assumptions:
Average Per-Unit Revenue $260,87
Average Per-Unit Variable Cost $0,89
Estimated Monthly Fixed Cost $196 410
[YEAR] Business Plan | Ice Cream Parlor 25 / 33
Projected Profit and Loss
Year 1 Year 2 Year 3
Sales $309 069 $385 934 $462 799
Direct Cost of Sales $15 100 $19 153 $23 206
Other $0 $0 $0
TOTAL COST OF SALES $15 100 $19 153 $23 206
Gross Margin $293 969 $366 781 $439 593
Gross Margin % 94,98% 94,72% 94,46%
Expenses
Payroll $138 036 $162 898 $187 760
Sales and Marketing and Other Expenses $1 850 $2 000 $2 150
Depreciation $2 070 $2 070 $2 070
Leased Equipment $0 $0 $0
Utilities $4 000 $4 250 $4 500
Insurance $1 800 $1 800 $1 800
Rent $6 500 $7 000 $7 500
Payroll Taxes $34 510 $40 726 $46 942
Other $0 $0 $0
Total Operating Expenses $188 766 $220 744 $252 722
Profit Before Interest and Taxes $105 205 $146 040 $186 875
EBITDA $107 275 $148 110 $188 945
Interest Expense $0 $0 $0
Taxes Incurred $26 838 $37 315 $47 792
Net Profit $78 367 $108 725 $139 083
Net Profit/Sales 30,00% 39,32% 48,64%
[YEAR] Business Plan | Ice Cream Parlor 26 / 33
Profit Yearly
Financial Year Profit
Year1 10000
Year2 12000
Year3 14000
Profit
Year1 Year2 Year3
0
5.00k
10.00k
15.00k
Gross Margin Yearly
Financial Year Gross Margin
Year1 10000
Year2 12000
Year3 14000
Gross Margin
Year1 Year2 Year3
0
5.00k
10.00k
15.00k
[YEAR] Business Plan | Ice Cream Parlor 27 / 33
Projected Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $40 124 $45 046 $50 068
Cash from Receivables $7 023 $8 610 $9 297
SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359
Expenditures from Operations
Cash Spending $21 647 $24 204 $26 951
Bill Payments $13 539 $15 385 $170 631
SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $35 296 $35 489 $43 882
Net Cash Flow $11 551 $13 167 $15 683
[YEAR] Business Plan | Ice Cream Parlor 28 / 33
Cash Balance $21 823 $22 381 $28 239
Cash Received Year 1 Year 2 Year 3
[YEAR] Business Plan | Ice Cream Parlor 29 / 33
Projected Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash $184 666 $218 525 $252 384
Accounts Receivable $12 613 $14 493 $16 373
Inventory $2 980 $3 450 $3 920
Other Current Assets $1 000 $1 000 $1 000
TOTAL CURRENT ASSETS $201 259 $237 468 $273 677
Long-term Assets
Long-term Assets $10 000 $10 000 $10 000
Accumulated Depreciation $12 420 $14 490 $16 560
TOTAL LONG-TERM ASSETS $980 $610 $240
TOTAL ASSETS $198 839 $232 978 $267 117
Current Liabilities
Accounts Payable $9 482 $10 792 $12 102
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $9 482 $10 792 $12 102
Paid-in Capital $30 000 $30 000 $30 000
Retained Earnings $48 651 $72 636 $96 621
Earnings $100 709 $119 555 $138 401
TOTAL CAPITAL $189 360 $222 190 $255 020
TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117
Net Worth $182 060 $226 240 $270 420
[YEAR] Business Plan | Ice Cream Parlor 30 / 33
Business Ratios
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 4,35% 30,82% 63,29% 4,00%
Percent of Total Assets
Accounts Receivable 5,61% 4,71% 3,81% 9,70%
Inventory 1,85% 1,82% 1,79% 9,80%
Other Current Assets 1,75% 2,02% 2,29% 27,40%
Total Current Assets 138,53% 150,99% 163,45% 54,60%
Long-term Assets -9,47% -21,01% -32,55% 58,40%
TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%
Current Liabilities 4,68% 3,04% 2,76% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,68% 3,04% 2,76% 54,10%
NET WORTH 99,32% 101,04% 102,76% 44,90%
Percent of Sales
Sales 100,00% 100,00% 100,00% 100,00%
Gross Margin 94,18% 93,85% 93,52% 0,00%
Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%
Advertising Expenses 2,06% 1,11% 0,28% 1,40%
Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%
Main Ratios
Current 25,86 29,39 32,92 1,63
Quick 25,4 28,88 32,36 0,84
Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%
Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%
Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%
Additional Ratios
Net Profit Margin 19,20% 21,16% 23,12% N.A.
Return on Equity 47,79% 50,53% 53,27% N.A.
[YEAR] Business Plan | Ice Cream Parlor 31 / 33
Activity Ratios
Accounts Receivable Turnover 4,56 4,56 4,56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19,7 22,55 25,4 N.A.
Accounts Payable Turnover 14,17 14,67 15,17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1,84 1,55 1,26 N.A.
Debt Ratios
Debt to Net Worth 0 -0,02 -0,04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120 943 $140 664 $160 385 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0,45 0,48 0,51 N.A.
Current Debt/Total Assets 4% 3% 2% N.A.
Acid Test 23,66 27,01 30,36 N.A.
Sales/Net Worth 1,68 1,29 0,9 N.A.
Dividend Payout 0 0 0 N.A.
Year 1 Year 2 Year 3 Industry Profile
[YEAR] Business Plan | Ice Cream Parlor 32 / 33
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[YEAR] Business Plan | Ice Cream Parlor 33 / 33

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Ice Cream Parlor Business Plan Example | Upmetrics

  • 1. Ice Cream Parlor BUSINESS PLAN The best ice cream bar that ever existed Prepared By John Doe (650) 359-3153 10200 Bolsa Ave, Westminster, CA, 92683 info@upmetrics.co https://upmetrics.co
  • 2. Table of Contents Executive Summary 4 3 Year profit forecast 5 Chart 5 Objectives 5 Mission 6 Keys to Success 6 Business Summary 7 Overview 8 Start-up Summary 8 Startup cost 8 Chart 8 Funding Required 9 Company Ownership 10 Products and Services 11 Frozen Custard 12 Italian Ice 12 Market Analysis 13 Market Segmentation 14 Marketing share 14 Chart 14 18-24 Year Olds 15 First Families 15 Other 15 Market Analysis 15 Target Market Segment Strategy 15 Industry Analysis 16 Competition and Buying Patterns 16 Competitors 16 Strategy and Implementation Summary 17 Competitive Edge 18 Milestones 18 Marketing Strategy 19 Sales Strategy 19 Sales Forecast 19 1 / 33
  • 3. Sales Yearly 20 Chart 20 Management Summary 21 Personnel Plan 22 Average Salaries 22 Financial Plan 23 Important Assumptions 24 Brake-even Analysis 25 Projected Profit and Loss 26 Profit Yearly 27 Chart 27 Gross Margin Yearly 27 Chart 27 Projected Cash Flow 28 Projected Balance Sheet 30 Business Ratios 31 2 / 33
  • 4. Easy to use Business Plan Software Get started using a business plan template is always the fastest way to write your business plan, but as you know, you can't just fill in the blanks along with a template. You will need a collaborative tool that guides you on every step of your planning. Upmetrics can help. With Upmetrics, you can easily bring your team to write a professional business plan with automated financial forecasts. You can also do: 200+ Sample business plans Get access to hundreds of sample business plans covering almost all industries to kick start your business plan writing. This helps you to get an idea how the perfect business plan should look like. View Sample Business Plans Step-By-Step Guide You'll receive step-by-step instruction as soon as you select any business plan template. We made business planning easy with prompt help and examples on every step of your business plan writing. See How It Works Conduct accurate financial projections Do not worry about not having accounting skills. With Upmetrics, Simply enter your sales and costs figures, and we'll prepare all of your monthly/quarterly and yearly financial projections. See How It Works [YEAR] Business Plan | Ice Cream Parlor 3 / 33
  • 5. 1. Executive Summary Objectives Mission Keys to Success [YEAR] Business Plan | Ice Cream Parlor 4 / 33
  • 6. Before you think about how to start a Ice Cream Parlor services, you must create a detailed Ice Cream Parlor business plan. It will not only guide you in the initial phases of your startup but will also help you later on. Start Writing here... Zero Degree Frozen Ice will be an ice cream shop located on a busy street in Davis Plaza in Davis, California. Pence's is a start-up shop and has long-term presence plans in the Eugene/Springfield market. Along with a $17,000 investment by Rowland Pence, Pence's Frozen Custard hopes to initially make a successful effort to secure start-up financing through a combination of 3 Year profit forecast Financial Year Sales Gross Margin Net Profit Year1 10000 500 6000 Year2 12000 800 8000 Year3 14000 1200 10000 Sales Gross Margin Net Profit Year1 Year2 Year3 0 5.00k 10.00k 15.00k Objectives To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 5 / 33
  • 7. Start Writing here... Zero Degree Frozen Ice has three main objectives: 1. To be rated one of the top sit-down dining restaurants in Davis, California, 2. To support the local youth in Davis, California. Mission Start Writing here... The mission of Zero Degree Frozen Ice is to provide an inexpensive eatery for families on the go throughout the county of Davis, California. In turn, the Parlor's mission is also to give back to the community by creating employment opportunities for high-school students, college students, and stay-at-home mothers; subsidizing programs and sports activities that are in jeopardy of Keys to Success Start Writing here... The keys to the success of the Restaurant are as follows: 1. Good hometown cream making 2. Affordable prices 3. Daily community activities To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 6 / 33
  • 8. 2. Business Summary Overview Start-up Summary Funding Required Company Ownership [YEAR] Business Plan | Ice Cream Parlor 7 / 33
  • 9. Overview Start Writing here... Zero Degree Frozen Ice will purchase a frozen custard mix and Italian Ice base from a distributor in Pennsylvania. We will use a frozen custard freezer to quickly freeze the custard product into a premium, dense, and creamy frozen dessert. We will feature vanilla and chocolate flavors each day plus one or two additional flavors of the day. Start-up Summary Start Writing here... To start up this business, we expect to incur a short-term debt of $5,000 to cover initial inventory and other expenses for the first three months. We also anticipate the need for a long-term loan of $70,000 to cover equipment and fixtures costs. We also expect to incur $675 worth of legal expenses based on the cost of forming the LLC and other legal liability issues. Startup cost Cost distribution Amount Expenses 1550 Assets 1800 Investment 2050 Amount Expenses Assets Investment 0 1.00k 2.00k 3.00k To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 8 / 33
  • 10. Funding Required START-UP FUNDING Amount Start-up Expenses to Fund $5,062 Start-up Assets to Fund $94,938 TOTAL FUNDING REQUIRED $100,000 Assets Non-cash Assets from Start-up $70,120 Cash Requirements from Start-up $24,818 Additional Cash Raised $0 Cash Balance on Starting Date $24,818 TOTAL ASSETS $94,938 Liabilities and Capital Liabilities Current Borrowing $5,000 Long-term Liabilities $70,000 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 TOTAL LIABILITIES $75,000 Capital Planned Investment Rowland Pence $15,000 Investor 2 $10,000 Other $0 Additional Investment Requirement $0 TOTAL PLANNED INVESTMENT $25,000 Loss at Start-up (Start-up Expenses) ($5,062) TOTAL CAPITAL $19,938 TOTAL CAPITAL AND LIABILITIES $94,938 Total Funding $100,000 [YEAR] Business Plan | Ice Cream Parlor 9 / 33
  • 11. Company Ownership Start Writing here... The company will be owned by Rowland Pence and one or two additional partners. Pence will contribute $15,000 and the other investor(s) will contribute a combined additional $10,000. This will keep the majority of the equity in the company under Pence's control. A buy/sell agreement will be established with the other investors when the Limited Liability Corporation (LLC) is formed, to To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 10 / 33
  • 12. 3. Products and Services [YEAR] Business Plan | Ice Cream Parlor 11 / 33
  • 13. Before starting an ice cream parlor business, you must take many things into consideration such as you must consider what types of ice cream services will you be providing to your customers. Deciding your services is extremely important since it helps you plan other components of your business so make sure to consider it before you think about how to start an Ice Cream parlor. Start Writing here... Pence's will sell premium fresh-made Frozen Custard and Italian Ice. Frozen Custard is a natural, wholesome, frozen dairy product. It differs from ice cream in both taste and texture. Currently, the popular product known as Frozen Custard in the Midwest and on the East Coast is not available in California. There are a handful of small businesses in California that sell a product they Frozen Custard Start writing here... Rich Flavor because it is made with an Egg Base Less Fat and Sugar than Most Premium Ice Creams Smoother and Creamier Texture (no ice crystals as in ice cream or ice milk.) Old-Fashioned Homemade Taste (made fresh every day.) Italian Ice Start writing here... A Fruit-flavored ice mix with a smooth texture (very small ice crystals) A Sweet and Fat-Free frozen product Made without Dairy or Egg products Made with Real Fruit Concentrate Start Writing here... Both Frozen Custard and Italian Ice are lower in fat and sugar content than other premium ice creams available on the market. Our product is creamier and smoother in texture than ice cream, and it is the only product available as hard serve from a soft-serve machine. This is because Frozen Custard is made using a unique machine called a batch freezer. This freezer pumps less air into To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 12 / 33
  • 14. 4. Market Analysis Market Segmentation Market Analysis Target Market Segment Strategy Industry Analysis [YEAR] Business Plan | Ice Cream Parlor 13 / 33
  • 15. The most important component of an effective ice cream business plan is its accurate marketing analysis. If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this auto detailing business plan sample or other auto detailing business plans available online. Start Writing here... The market we will engage in is the Eugene-Springfield metropolitan area. The specific market we will serve consists of a 25 square block radius around our scoop shop and includes the university student population and those primarily within walking distance of the shop in downtown Eugene. The overall age demographics of the population break down as follows: Market Segmentation The potential customer groups for Zero degree Frozen Ice are: Marketing share Segments Market share 18-24 Year Olds 45 First Families 35 Other 20 18-24 Year Olds: 45.0 % 18-24 Year Olds: 45.0 % First Families: 35.0 % First Families: 35.0 % Other: 20.0 % Other: 20.0 % To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 14 / 33
  • 16. 18-24 Year Olds Start writing here... Our market research indicates about 38,000 potential customers in the Eugene-Springfield area who are within this age range. The target customer is going to be a part of the "town and gown" niche: half college students and half local residents. They have a tendency to spend more than they can afford on prestige products. First Families Start writing here... These are the grown children of the baby boomer population having children of their own. Most of their children are not yet teens. By targeting this group, we can not only generate a large volume of immediate business but also create long term customers in the children. We also have found that families are eating out at ice cream and frozen yogurt shops more, because such places Other Start writing here... Our downtown location and increasing customer base will probably draw in customers outside of our targeted groups, including those attending the Saturday market, coming downtown to shop, or attending plays or musical events. We conservatively estimate this third market segment at about 3,160 people (1% of the total local population). Market Analysis Potential Customers Growth YEAR 1 YEAR 1 YEAR 3 YEAR 4 YEAR 5 CAGR 18-24-Year-Olds 3% 38,040 39,181 40,356 41,567 42,814 3.00% First Families 4% 55,852 58,086 60,410 62,826 65,339 4.00% Other 1% 3,160 3,192 3,224 3,256 3,288 1.00% Total 3.52% 97,052 100,459 103,989 107,649 111,441 3.52% Target Market Segment Strategy To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 15 / 33
  • 17. Start Writing here... The 18-24-year-old go out for ice cream more than any other age group. Within the 18-24-year-old group, the "town and gown" niche is very important, because they heavily populate the area surrounding the store's location. They are reachable through music, specifically R&B, and they prefer prestige products, which match our choice of product offering. Industry Analysis Start Writing here... The frozen dessert industry experienced sales of more than $20.7 billion last year, with $13 billion of that on "away from home desserts." The frozen dessert market is expected to grow by seven percent each year through 2008. There are several existing competitors in the community, including Pearl Street Ice Cream Parlour, Dairy Queen, Ben and Jerry's Competition and Buying Patterns Start writing here... In the frozen dessert industry, consumers make purchasing choices for a number of reasons. Perceived quality of the product is essential for consumers going out to eat, because of the price premium they must pay. A gallon of generic (or even name-brand) ice cream in the grocery store will cost about as much as servings for one or two people at a scoop shop. Most of our Competitors Start writing here... Zero Degree Frozen Ice faces approximately 15 competitors in the Eugene area. The top competition comes from several national chain stores that have years of experience and significant brand recognition as well as several locally based competitors. In spite of all the competition, each of these scoop shops remains profitable and open year-round. To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 16 / 33
  • 18. 5. Strategy and Implementation Summary Competitive Edge Milestones Marketing Strategy Sales Strategy [YEAR] Business Plan | Ice Cream Parlor 17 / 33
  • 19. After identifying the market demand, market trends, and the potential customers of the startup, the next step is to define an effective strategy for attracting those customers. Like marketing analysis, sales strategy is also an important component of an Ice Cream parlor business startup and must be properly planned before you think about starting your own Ice Cream Parlor. Start Writing here... Zero Degree Frozen Ice will succeed in the Eugene market by selling a unique, fresh, high-quality product that exceeds customer expectations. We will focus on the local market, targeting two specific market segments, in an attempt to achieve the best reputation in our segment. We will strive to increase brand awareness among our target market during our first year of operation as a way Competitive Edge Start Writing here... Pence's Frozen Custard has two competitive edges: Rich and creamy, high class, low fat, frozen desserts. Our friendly, neighborly approach to customers. Milestones Start Writing here... The following table lists important project milestones to be undertaken before the business opens, during the start-up period, and immediately after opening the doors. The table lists the dates and managers in charge and budgets for each milestone. The milestone schedule indicates our emphasis on planning for implementation. Milestone Start Date End Date Budget Manager Department Frozen Custard Taste Tests 8/1/2004 9/25/2004 $150 MB ProDev Italian Ice Taste Tests 8/1/2004 10/25/2004 $150 MB ProDev Business Logo/Sign Development 1/1/2005 1/30/2005 $400 MB Marketing To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 18 / 33
  • 20. Investment Campaign 8/15/2004 2/10/2005 $200 MB Admin Product Packaging 12/10/2004 3/10/2005 $200 MB Marketing Design Advertisements 1/20/2005 3/30/2005 $250 MB Marketing Open Doors 4/1/2005 4/1/2005 $0 MB Marketing Grand Opening Ad Campaign 4/18/2005 6/18/2005 $2,000 MB Marketing Brand Awareness Campaign 4/10/2005 7/20/2005 $1,100 MB Marketing Targeted Ad Campaigns 5/15/2005 10/31/2005 $4,000 MB Marketing Totals $8,450 Milestone Start Date End Date Budget Manager Department Marketing Strategy Start Writing here... Pence's Frozen Custard will use multiple methods to approach its target markets. Since our most difficult task will be attracting customers for that first tasting, we have a two-tiered approach. First, a mass mailing campaign will create customer awareness and generate trial. This will include coupons and our "Grand Opening" offer: with a coupon, your first dessert at Pence's in April Sales Strategy Start Writing here... Our sales strategy focuses first on providing the highest quality products and services to our target customers. Once a customer enters our store, it is our job to make sure their experience with us is enjoyable. Product offerings and prices will be clearly posted behind the counter, and scoopers will be educated about the ingredients and processes involved in each one, so they can answer Sales Forecast Our sales will largely be determined by foot traffic in the area, the season of the year, and current weather conditions. We estimate first-year sales of approximately $66,840, $97,760 in the second year, and $113,402 in the third year following this plan. These sales forecasts are based on several real-world observations. On a rainy To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 19 / 33
  • 21. Sales Forecast Start writing here... Sales Yearly Financial Year Total Sales Year1 66840 Year2 97760 Year3 113402 Total Sales Year1 Year2 Year3 0 50.00k 100.00k 150.00k [YEAR] Business Plan | Ice Cream Parlor 20 / 33
  • 22. 6. Management Summary Personnel Plan [YEAR] Business Plan | Ice Cream Parlor 21 / 33
  • 23. Start Writing here... Rowland Pence has a strong entrepreneurial spirit and he is prepared to invest a great deal of time and effort over the coming years to make Zero degree Frozen Ice a successful business venture. The owner has an outside income source and does not expect to see returns on his initial investment until year four. Mr. Pence shall act as the store manager, with the other owners acting as Personnel Plan Start Writing here... We expect seasonal hiring of part-time employees. Because we will offer no benefits to our employees, full-time employees will not be hired (nor are they necessary through the first year.) We foresee hiring two or three part-time employees besides the two or three owners to begin working in May. Our two or three employees will share hours Average Salaries PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3 Part-time employees $8,094 $11,837 $12,784 Owner - Rowland Pence $0 $0 $0 Other Owner(s) $12,000 $12,000 $18,000 Total People 3 4 4 Total Payroll $20,094 $23,837 $30,784 To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 22 / 33
  • 24. 7. Financial Plan Important Assumptions Brake-even Analysis Projected Profit and Loss Projected Cash Flow Projected Balance Sheet Business Ratios [YEAR] Business Plan | Ice Cream Parlor 23 / 33
  • 25. The last component of an Ice Cream Parlor business plan is an in-depth financial plan. The financial plan crafts a detailed map of all the expenses needed for the startup and how these expenses will be met by the earned profits. It is recommended that you use our financial planning tool for guiding you through all financial aspects needed to be considered for starting an Ice Cream Parlor business. Start Writing here... Rowland Pence's Frozen Custard expects to raise $70,000 in long-term debt with $25,000 from the owners. A short term loan of $5,000 will be used to maintain a level of cash necessary to maintain expected inventory levels and to buy additional inventory should sales be higher than expected. The long- term debt will be paid back over the next ten years. No other immediate Important Assumptions The financial projections of the company are forecast on the basis of the following assumptions. These assumptions are quite conservative and are expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected. Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10,00% 11,00% 12,00% Long-term Interest Rate 10,00% 10,00% 10,00% Tax Rate 26,42% 27,76% 28,12% Other 0 0 0 To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Ice Cream Parlor 24 / 33
  • 26. Brake-even Analysis Monthly Units Break-even 5530 Monthly Revenue Break-even $159 740 Assumptions: Average Per-Unit Revenue $260,87 Average Per-Unit Variable Cost $0,89 Estimated Monthly Fixed Cost $196 410 [YEAR] Business Plan | Ice Cream Parlor 25 / 33
  • 27. Projected Profit and Loss Year 1 Year 2 Year 3 Sales $309 069 $385 934 $462 799 Direct Cost of Sales $15 100 $19 153 $23 206 Other $0 $0 $0 TOTAL COST OF SALES $15 100 $19 153 $23 206 Gross Margin $293 969 $366 781 $439 593 Gross Margin % 94,98% 94,72% 94,46% Expenses Payroll $138 036 $162 898 $187 760 Sales and Marketing and Other Expenses $1 850 $2 000 $2 150 Depreciation $2 070 $2 070 $2 070 Leased Equipment $0 $0 $0 Utilities $4 000 $4 250 $4 500 Insurance $1 800 $1 800 $1 800 Rent $6 500 $7 000 $7 500 Payroll Taxes $34 510 $40 726 $46 942 Other $0 $0 $0 Total Operating Expenses $188 766 $220 744 $252 722 Profit Before Interest and Taxes $105 205 $146 040 $186 875 EBITDA $107 275 $148 110 $188 945 Interest Expense $0 $0 $0 Taxes Incurred $26 838 $37 315 $47 792 Net Profit $78 367 $108 725 $139 083 Net Profit/Sales 30,00% 39,32% 48,64% [YEAR] Business Plan | Ice Cream Parlor 26 / 33
  • 28. Profit Yearly Financial Year Profit Year1 10000 Year2 12000 Year3 14000 Profit Year1 Year2 Year3 0 5.00k 10.00k 15.00k Gross Margin Yearly Financial Year Gross Margin Year1 10000 Year2 12000 Year3 14000 Gross Margin Year1 Year2 Year3 0 5.00k 10.00k 15.00k [YEAR] Business Plan | Ice Cream Parlor 27 / 33
  • 29. Projected Cash Flow Cash Received Year 1 Year 2 Year 3 Cash from Operations Cash Sales $40 124 $45 046 $50 068 Cash from Receivables $7 023 $8 610 $9 297 SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359 Expenditures from Operations Cash Spending $21 647 $24 204 $26 951 Bill Payments $13 539 $15 385 $170 631 SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 SUBTOTAL CASH SPENT $35 296 $35 489 $43 882 Net Cash Flow $11 551 $13 167 $15 683 [YEAR] Business Plan | Ice Cream Parlor 28 / 33
  • 30. Cash Balance $21 823 $22 381 $28 239 Cash Received Year 1 Year 2 Year 3 [YEAR] Business Plan | Ice Cream Parlor 29 / 33
  • 31. Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets Cash $184 666 $218 525 $252 384 Accounts Receivable $12 613 $14 493 $16 373 Inventory $2 980 $3 450 $3 920 Other Current Assets $1 000 $1 000 $1 000 TOTAL CURRENT ASSETS $201 259 $237 468 $273 677 Long-term Assets Long-term Assets $10 000 $10 000 $10 000 Accumulated Depreciation $12 420 $14 490 $16 560 TOTAL LONG-TERM ASSETS $980 $610 $240 TOTAL ASSETS $198 839 $232 978 $267 117 Current Liabilities Accounts Payable $9 482 $10 792 $12 102 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102 Long-term Liabilities $0 $0 $0 TOTAL LIABILITIES $9 482 $10 792 $12 102 Paid-in Capital $30 000 $30 000 $30 000 Retained Earnings $48 651 $72 636 $96 621 Earnings $100 709 $119 555 $138 401 TOTAL CAPITAL $189 360 $222 190 $255 020 TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117 Net Worth $182 060 $226 240 $270 420 [YEAR] Business Plan | Ice Cream Parlor 30 / 33
  • 32. Business Ratios Year 1 Year 2 Year 3 Industry Profile Sales Growth 4,35% 30,82% 63,29% 4,00% Percent of Total Assets Accounts Receivable 5,61% 4,71% 3,81% 9,70% Inventory 1,85% 1,82% 1,79% 9,80% Other Current Assets 1,75% 2,02% 2,29% 27,40% Total Current Assets 138,53% 150,99% 163,45% 54,60% Long-term Assets -9,47% -21,01% -32,55% 58,40% TOTAL ASSETS 100,00% 100,00% 100,00% 100,00% Current Liabilities 4,68% 3,04% 2,76% 27,30% Long-term Liabilities 0,00% 0,00% 0,00% 25,80% Total Liabilities 4,68% 3,04% 2,76% 54,10% NET WORTH 99,32% 101,04% 102,76% 44,90% Percent of Sales Sales 100,00% 100,00% 100,00% 100,00% Gross Margin 94,18% 93,85% 93,52% 0,00% Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20% Advertising Expenses 2,06% 1,11% 0,28% 1,40% Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86% Main Ratios Current 25,86 29,39 32,92 1,63 Quick 25,4 28,88 32,36 0,84 Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10% Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40% Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00% Additional Ratios Net Profit Margin 19,20% 21,16% 23,12% N.A. Return on Equity 47,79% 50,53% 53,27% N.A. [YEAR] Business Plan | Ice Cream Parlor 31 / 33
  • 33. Activity Ratios Accounts Receivable Turnover 4,56 4,56 4,56 N.A. Collection Days 92 99 106 N.A. Inventory Turnover 19,7 22,55 25,4 N.A. Accounts Payable Turnover 14,17 14,67 15,17 N.A. Payment Days 27 27 27 N.A. Total Asset Turnover 1,84 1,55 1,26 N.A. Debt Ratios Debt to Net Worth 0 -0,02 -0,04 N.A. Current Liab. to Liab. 1 1 1 N.A. Liquidity Ratios Net Working Capital $120 943 $140 664 $160 385 N.A. Interest Coverage 0 0 0 N.A. Additional Ratios Assets to Sales 0,45 0,48 0,51 N.A. Current Debt/Total Assets 4% 3% 2% N.A. Acid Test 23,66 27,01 30,36 N.A. Sales/Net Worth 1,68 1,29 0,9 N.A. Dividend Payout 0 0 0 N.A. Year 1 Year 2 Year 3 Industry Profile [YEAR] Business Plan | Ice Cream Parlor 32 / 33
  • 34. Want to make it more presentable? Want help tips on each section? You'll save time and can write your professional business plan effectively and faster with Upmetrics' business plan software. Every feature you need to convert your great business idea into a reality. Write your plan easily and faster without any hassles. Structure your idea and create stunning pitches that awe your investors. Get access to Upmetrics software, invite your team members and start writing your business plan. Join over 100k+ entrepreneurs who have used Upmetrics to create their business plans. Start writing your business plan today 1. Get tried and tested tips Upmetrics business plan builder gives you everything you need to stay in sync and guides you on every step of your business plan writing. 2. Write an interactive plan Use our business plan sections - competitive Analysis, comparison tables, SWOT Analysis, charts, timelines, milestones, etc to create a visually impactful business plan. 3. Stunning business plan cover pages Upmetrics business plan builder comes with beautifully designed cover pages. Choose professional, creative cover pages to make your business plan stand out. 4. Financial forecasting With Upmetrics you don’t have to worry about navigating complex spreadsheets. Just input your numbers and we’ll provide you with well-structured financial reports that you and your investors understand. 5. Share easily with anyone Upmetrics plans are easily shareable in pdf and word documents. And if either doesn’t work, you can share it with a quick link too and track the reader's activity! 6. Real-time and Collaborative Invite your team members to initiate conversations, discuss ideas and strategies in real-time, share respective feedback, and write your business plan. [YEAR] Business Plan | Ice Cream Parlor 33 / 33