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BUSINESS PLAN - BRAIN FREEZE FRO-YO SHOP
Transcript of BUSINESS PLAN - BRAIN FREEZE FRO-YO SHOP
Our company Brain Freeze will provide the community of San Antonio with delicious and delectable frozen yogurt, with a twist. We will serve a wide variety of toppings for the yogurt and a way to create your own unique flavors.
Our customers will be able to create their own unique flavor by using our new machine that we have invented. The machine will have have a touch screen so that our customers can select their desired flavors and then mix and match it right there on the spot.
For example, if they want a banana, strawberry, and chocolate flavored frozen yogurt then the machine will mix all those flavors together.
Our Targeted Customers
Our company is targeted to all ages
But more family oriented
We want families to have an enjoyable place to go to after athletic events, school, work, or for birthday parties, etc.
Most frozen-yogurt shops are quite expensive, therefore we will have to base our shop in a more upscale part of San Antonio such as the Rim area or 1604 and Northwoods.
We want to target to all income levels with our cheaper prices
We at Brain Freeze want to provide the community of San Antonio with a place to help bring families together for Frozen Yogurt and a place to have a good time. We hope to offer a great quality dessert with a low price. Our main purpose is to provide yogurt with a personality. We want to come through on this mission so people will want to come back for more and tell their friends and family about our company.
The CEO of Brain Freeze is Dustin Bercutt. The marketing manager of the company is Ashley Stacy. The first-line manager is Kelsey Schwind. The financial manager is Cody Schnieder.
We each inherited half a million dollars.
The legal structure of our company is a Limited Liability Structure
We picked this structure because we wanted to have a more flexible type of structure. For example, we don't want to get double taxation, we want to report our share of profits and losses on our individual tax returns. If our company falls through we each get out equal amount of the money back. The main reason for picking an LLC is because we want to see our business pass on to our families and not be terminated after our deaths.
We are apart of the frozen yogurt and fast-food industry that sells frozen yogurt to the public and is self-serve to the customers.
Our Competitors in the San Antonio area, in the frozen-yogurt industry, are places like:
Our competitors from the fast-food industry are places like:
With the new touch screen machines that we invented we have created a way for our customers to make fro-yo with a personality
The touch screen machines lets you pick whatever flavor you want
a generic flavor or mixed flavors
The protected patent we have on our touch-screen machines
The facilitiy quality
Our frozen-yogurt is also cheaper than most of the other frozen-yogurt shops
Frozen-yogurt is healthier than regular ice cream
We are an independent company trying to succeed in a food-industry which is extremely difficult.
We only have one shop, so far.
There are millions of frozen-yogurt shops out there that we have to compete against.
Our customers might think that the machines are to difficult to work with so they will decide to not come back.
Our business will require a business license
Tax identification number
Purchase liability insurance
A milk license to regulate the yogurt we are selling
Product or Service
The product that our company will be serving the community of San Antonio with, is fro-yo with a lot of personality. The service that we are providing to the people in San Antonio is a place where families and friends can come to get away from our hectic society.
35 cents per ounce
The reason we came up with 35 cents per ounce is because this price puts our company's price below most frozen yogurt shops and will give our company an edge over the other companies. We will have a weight scale at the cashier that weighs the fro-yo and that determines the final price.
Research and Development
We can hand out surveys to our customers so that we get their opinions on changes that we should do to improve our business.
Through the market matches our team can go to competitors in our market to compare and contrast their prices, the flavors they serve, and the quality of their service
Marketing & Sales
Our plan is to start in San Antonio and then after the first year if we are in the profitable margin then we will build more shops in San Antonio and then depending on our success we will move on to more cities like Austin, New Braunfels, Dallas, and Houston.
We will hold a grand opening for our customers, offer samples, and let them get a feel for the shop.
We will have cards called "Freeze Cards" that you can get stamped when you make your first purchase and then after your fifth stamp you will get your next purchase free.
We will hang advertising in other businesses around town to tell people about deals.
We will have a website that can alert our customers when we offer a new flavor or when we are offering a new deal.
We will talk to our customers through social media: Instagram, Twitter, Facebook, etc.
Profit and Loss
Profit and Loss
We assume that if the economy stays on the positive side and that our company continues to succeed our numbers for gross profit will continue to go up each year. Also we assume that after all the dividends are taken away the retained earnings will increase over the years.
We assume that the cash on hand will start at two million dollars and then as we spend money on build-up and other products for the company the cash on hand will begin to decrease. We might be losing money to create the business but we assume that after three years our cash position will be in great condition.
Balance Sheet Cont'd
We assume that the current, fixed, and other assets after the start and end date will come out to be 2 million dollars which is the cash that we started out with. We assume that the current liabilities and long term debt will equal 2 million dollars. We assume that the owners' equity will equal 2 million dollars.
For the amount of money that we have starting off we assume that the total indirect costs will not put a dent on our money. The total direct costs is 147200 and 218217 is the total indirect cost. The break-even sales level comes out to be 36541700.
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