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Sock n Jocks: Business Plan

Socks nJocks: Business Plan Bachelors Capstone Final Project

Jonathan P. Melanson

MT499-01 Professor Andryce Zurick

Sock n Jocks: Business Plan Table of Contents

Section 1: Executive Summary (Business Description) ................................................................. 3 Section 2: Code of Conduct ............................................................................................................ 8 Section 3: Operations .................................................................................................................... 11 Section 4: Marketing Plan ............................................................................................................. 17 Section 5: Information Technology .............................................................................................. 24 Section 6: Financial Plan .............................................................................................................. 28 Section 7: Management Summary ................................................................................................ 32 References ..................................................................................................................................... 37 Appendix ....................................................................................................................................... 41

Sock n Jocks: Business Plan

Section 1: Executive Summary (Business Description) The business we are bringing to you today is named Socks nJocks. It is a unique business as it brings the fun atmosphere of a restaurant/bar together with a Laundromat. The ideas started back in college at the potential ownership team are now bringing it to the forefront. Set to be situated in the heavily populated city of Boston, Massachusetts this one of a kind business plans to take advantage of the college aged individual with one thing they love to do and another they hate to do. Competitively there are bars and there are Laundromats but none that combine them. Walking in with $315,000 to get things started the four member teams feels very comfortable and confident about this business venture! In developing a new business and sustaining it, the firm must determine the basic goals and philosophies that will posture its overarching business strategy (Pearce & Robinson, 2011, p. 21). The proposed business at hand is a sports bar with a twist its a Laundromat too. The name of the business is Socks n Jocks: Bostons First Wash and Grill. How many men out there would love to be able to get their laundry done on a Sunday afternoon while watching the game? The demographic area at hand is New England, a region of the United States that is rich is sports history but at the same time n area that is populated with people (especially college students) who need to do their laundry.. The Boston Celtics, Bruins, and Red Sox along with the New England Patriots have spoiled this region over the past 10 years with championships and in many ways the success of the local sports teams will provide free marketing for the business. .

Vision Statement Five years from now Socks n Jocks will become a successful national bar and Laundromat by providing quality suds while you drink your buds.

Sock n Jocks: Business Plan The vision is where the business proposes to be and I along with the partners see our idea reaching new levels as the first business of its kind to hit the open market (Mcintyre, An idea that was thought up on a dorm room couch is coming alive at the people will come. Boston, Massachusetts is home to 60+ colleges and universities. The starting point was a strategic choice due to the number of college aged people who would be attracted to such a venue.

Mission Statement Socks n Jocks is a down to earth bars with a twist that Laundromat, a laundrabar. We offer competitively priced food, cheap beer specials, and of course top of the line laundry services. Whether you want to eat while we do you laundry, or do it yourself.We are here to cater to you and make doing your laundry your most enjoyable weekly experience! In the development of the mission statement for our business a lot of personal history was involved ( The idea focused on the activities and responsibilities that come with being a college student and how we could join them together and make one enjoyable experience. The phrase laundrabar was coined in our past and now it is coming to the forefront as it really represents the mission of our company Socks n Jocks. Purpose, Values, Goals Sock n Jocks holds two purposes. The first purpose is the consumer as the business is there to serve them, serve their needs, and also to provide and fun, lively atmosphere (the bar) when they are doing their laundry. As a business in the service industry the consumer has to be number one as they represent the business revenue and the individual income for the partners. The second purpose of the business is to provide for the partners. As the sole means of

Sock n Jocks: Business Plan income for the four partners the reliance on success is of utmost importance for personal support. The equal partnership allows for equal income distribution among them. When people think of values they think of wealth, and money, and morals. All of these things prosper a feeling of growing up and doing the right thing all of the time. At Socks n Jocks we have non traditional values, ones that fit the chaotic life of the college student. We want a fun, loud, and messy atmosphere. If you want to have a beer at 8am we want it to be normal. Throw out the ideas and ideals that your parents talked about for years and have some fun while youre in college, that is the value of Socks n Jocks. Like the purpose of the business the goals are also broken up into two areas. The first again here is the consumer. If a goal is not to provide the best atmosphere possible, today, tomorrow and in the future, to do laundry and watch the game then we should not be in business. Secondly, the next goals are personal goals of the partners. Having a thought and seeing it grow, and have structure is a satisfying endeavor and if that is combined with success then a goal is achieved. The business is opening as one but we have a goal to open many and bring them to college cities across the United States. Business Structure and Management Socks n Jocks formed a general partnership between four individuals. The reason behind the partnership were the benefits being shared commitments, its easy an inexpensive, and it allows the skill sets of our partners to be utilized in different areas ( The Partners Jonathan Melanson Sam Williams Travis Ferrante Kevin Coyne

1. 2. 3. 4.

25% Shareholder 25% Shareholder 25% Shareholder 25% Shareholder

Sock n Jocks: Business Plan All profits, liabilities, and management duties are going to be divided equally among the above members. Upon financing approval we will be registering with the state of Massachusetts to obtain our EIN and will also be opening up a business checking account and credit line at Bank of Boston. Having these pieces in place allows us now to take the unique skill sets of the partners and implement them into the business plan ( Jonathan Melanson: Business Manager: Background in Management and Accounting: Sam Williams: Bar Manager: Former bartender and bar manager. Travis Ferrante: Kitchen Manager: Culinary Arts degree Kevin Coyne: Laundromat Manager: Grew up in the Laundromat business as his family owned a chain back in Maine. The management structure above will allow all areas of the business to be looked over by a partner with expertise in that particular area. Leadership and Optimal Performance Socks n Jocks will have the following leadership structure: Jon MelansonSam Williams-Bar Travis FerranteCEO/Business COO/Manager COO/Kitchen Manager Manager Assistant Assistant Manager Assistant Manager Accounting Clerk 5 Bartenders 5 Line Cooks 8 Servers 3 Hostesses 4 Helpers

Kevin CoyneCFO/Laundromat Manager Assistant Manager 3 Clerks 2 Washers 2 Folders

The leadership structure has an aggressive nature as we expect success. Now with the ideas in place regarding the structure of the business performance needs to be discussed. We estimate 41 employees on staff and will staff those hours from 9am to 2am for the bar and from 7am to 10pm for the Laundromat. During these hours it becomes hard to estimate what is expected for the business due to the lack of comparable businesses. But here is what we looked at for a performance projection:

Sock n Jocks: Business Plan Breakfast Monday Tuesday Wed. Thursday Friday Saturday Sunday 18 15 13 22 16 48 62 Lunch 20 16 17 18 32 78 108 Dinner 21 17 15 12 91 110 49 Breakfast $9 $9 $9 $9 $9 $14 $21 Lunch $13 $13 $13 $13 $17 $31 $40 Dinner $22 $22 $22 $22 $22 $40 $38 Sales $884 $717 $668 $696 $2690 $7490 $7484

The above projections would equal out to weekly sales of $20,629 to start which would annually equal $1,072,078. Now you have to understand these are modest projections. If the business takes off as expected these numbers could easily double (

Sock n Jocks: Business Plan

Section 2: Code of Conduct In the business world today it is important to set expectations and standards that an employee base should abide by. The expectations and standards should be set to achieve potential and to also achieve success. At Socks n Jocks we view conduct as both a responsibility and a requirement. Conduct in the service industry comes with great importance as the consumer is your business and how they feel and assess the business is a reflection of the conduct seen in the employees. At the beginning stages of building a Code of Conduct at Socks nJocks the management team feels that expectations need to be relayed to the employee base. In previous jobs the members of the management team discussed concerns that they never knew what was expected of them as an employee. Its a concept that can make an employee a little uneasy as they will never know if they are completing tasks or completing the job to the satisfaction of the employer. Having these thoughts in mind the first thing we are going to discuss is the expectations of the employees. Some may seem arbitrary but at Socks nJocks we are going to put it all out there as we want our employees to know what we want of them. Expectations: Smile Every Day: A smile is infectious, it is courteous and it really can go a long way in the service industry. Being a little early for a shift is being on time: Having a little time to prepare for work rather than rushing right into the job is important. It gives one a chance to relax and adjust to the work atmosphere. Serve as you would like to be served: Show respect, be courteous, and have fun with the customers.

Sock n Jocks: Business Plan Sunday Morning Meetings: 9am Weekly meeting are mandatory. Respect: We all know what it means and how to do it.

The expectations may be simple but in a normal business they are assumed and we feel by having them know they are more easily adhered to. If the above expectations can be met on a daily basis then the day-to-day operations should run a bit smoother thus relieving some tension from the management team as they wont have to worry about the employee base in some areas. Now that the expectations have been discussed it is important to move on to the actual code of conduct. The Code of Conduct is an actual document that is signed by each employees and it in fact describes what the conduct should and should not be at Socks n Jocks. It is also important to touch upon ethics when it comes to conduct as too many times it has been seen where unethical choice lead to a conduct detrimental to the work place. It is understandable that things can happen but at Socks nJocks it is important to the management team that expected conduct is known as it takes questions out of the situation if discipline is needed. There are three main areas that the code of conduct at Socks nJocks will focus on: legal, ethical, and social. Below the areas will be discussed: Legal: This area fits in all sectors of business. Abiding by the laws in required and if employees are unable to comply with this request then they will be terminated. Laws are built for reason and they are meant to be followed. A specific area is that employees while working are not expected to be under the influence of any drugs or alcohol. Ethical: This area was briefly touched upon above and it starts with respect, decision making, and integrity. All decision should come with the thoughts of others in mind, the law in mind, and the company in mind.

Sock n Jocks: Business Plan Discrimination, harassment, dishonest acts and improprieties fall into this area.

Social: Be respectful in the fun atmosphere. The code of conduct at Socks nJocks will be easy to abide by and if you follow the rules then success is expected at the company. The importance of a well respected and reputable business is important the management/ownership team as they expect growth in the future and if further investors are needed they want to see how well the company is run and the level of expectations that are held within the employee base.

Sock n Jocks: Business Plan

Section 3: Operations Socks n Jocks is a one of a kind business opportunity. It takes the tedious process of doing laundry and combines it with a fun and exciting sports bar & grill. A little history behind the idea stems from missing the game on Sundays while we were in college because we needed clothes to wear. The thought was discussed, interrogated, thought through and then finalized with three of my closest friends whom all had backgrounds that will be crucial to the success of the business. As stated in the business description the management structure at Socks nJocks will be as follows: CEO: Jonathan Melanson COO: Sam Williams COO: Travis Ferrante CFO: Kevin Coyne.

It is great to know who is going to run the company, who will make the decisions at the company, and who will lead the company but the real question should be; how will the company operate? What laws need to be known and followed? How does insurance work? What day will be pay day? Are taxes paid monthly, quarterly, or annually? There are many questions that can be asked when it comes to operating a business and now it is time to explore the operations of Socks n Jocks. The starting point will be the Laundromat portion of the business, which is run by CFO, Kevin Coyne. The following will be the areas that are addressed in starting the Laundromat.

Employees: Assistant Manager 3 Clerks 2 Washer

Sock n Jocks: Business Plan 2 Folders

The laundry portion of the business will be full service. Meaning we will offer wash/dry/fold for a cost. We are hoping this to be the lucrative portion of the business and that the bar & grill portion will entice the consumer to choose this option. Having the Laundromat be attended allows any issues to be dealt with immediately which is very important necessity for by the management team. Equipment: Nelson and Small a local company that specializes in furnishing equipment for Laundromats is a friend to the business. They have agreed to finance the start-up equipment for Socks nJocks. CFO Kevin Coyne was responsible for negotiating the terms for the equipment. The equipment purchased was 28 front loading washers and dryers, also a commercial sized washer and dryer for the wash/dry/fold portion of the business ( Marketing: How do you get people to use the Laundromat and not the competitors down the street? See bar & grill next store. The reliance on traffic will be the sports bar and the ability to not have to do your own laundry. Sit down have a beer watch the game and have someone else do it for you! The location of the business (Boston, Massachusetts) will also play a role in the marketing. Having a large population of college students should boast business and word of mouth among the students is a hope of the management team for some free marketing ( Bookkeeping: The financial records of the business are important as the business needs to make money. CFO Kevin Coyne will be the book keeper for the business for the first few years. The

Sock n Jocks: Business Plan background in accounting along with growing up on the Laundromat business will allow for him to keep track of all records such as: Payroll Taxes Insurance Maintenance Retirement Bills Supplies Security

There are probably many more areas that he will need to address when it comes to book keeping and financial records as well ( Amenities: Yes, the bar & grill will separate Socks n Jocks from other local businesses but there are still things that need to be present especially when marketing to the college student: Free Wi-Fi College Discounts Weeknight Specials

Now that there is an understanding on how the Laundromat portion of the business will run it is time to move on to the bar & grill portion of Socks n Jocks ( Financial Management CFO Kevin Coyne will again be involved with this portion of the business simply due to experience and educational background. He will handle the payroll, taxes, bills, maintenance costs, and supplies ( Health Department The Massachusetts Health Department sets certain codes and regulations when it comes to handling food for the consumer. COO and Kitchen Manager, Travis Ferrante will have the

Sock n Jocks: Business Plan responsibility to make sure the kitchen and grill portion of the business are up to code. Cleaning, food safety, sanitation, etc will all fall under this domain ( Employees:

COO/Bar Manager: Sam Williams COO/Kitchen Manager: Travis Ferrante 2 Assistant Managers 5 Bartenders 8 Servers 3 Hostesses 5 Line Cooks 4 Helpers

The bar & grill will offer top notch, fun, and interactive staff to adhere to the college student ( The Customer: The client base represents the revenue stream in a business, especially in a restaurant in the service industry. The training of the staff to treat the customer right should be near the top of the list when it comes to the business operations (

Promotional and Marketing Activities: Their will be competition in the restaurant and service business but again Sock Jocks offers the unique opportunity to have your laundry done while you enjoy the game with friends. Pool tables, cheap college nights, pay per view UFC fights, dart leagues will all be offered at the Socks n Jocks bar as promotional activities for the college students. Now that there is an understanding of how the operations will run at Socks n Jocks it is important to address certain laws and licenses that will be a part of the business: Liquor License: Bar Manager Sam Williams will go make sure this process is completed.

Sock n Jocks: Business Plan Labor Laws: The management team will need to know minimum wage, at-will termination, short term disability, etc. Accounting/Tax Laws: CFO Kevin Coyne will be responsible for this area of the business as he handles all of the financials. The laws will come with some cost and they need to be followed as the business wants to be legal and in compliance with all laws. It would be beneficial to obtain any and all documentation available and have it at the place of business for employees to view ( Outsourcing can be a very popular option in the business world as the cost saving availability can drastically increase a profit margin. In restaurant/Laundromat business outsourcing doesnt represent the best option for the business. Socks n Jocks is meant to be a local business with its heart in the college setting of Boston, Massachusetts. Moving it to another country wouldnt fit the proposed business model ( Why do businesses outsource? Here are the top twelve reasons a business will outsource: 1. Lower Wages 2. Lower Regulatory Costs 3. Tax Benefits 4. Ability to downsize at Will 5. Improved Performance 6. Free up Resources 7. Risk Management 8. Quick turnaround time 9. Politics

Sock n Jocks: Business Plan 10. Accelerated time to market 11. Commoditization 12. Contract Certainty As these are listed then it is easy to see cost benefits outweigh the most through the tax benefits, lower wages and freeing up of resources. The economy of the current market and the outsourced market are what makes the difference. A struggling economic area means cheap for a business and cheap means dollar signs in the eyes of a management team. Why can also be answered from a political sense. Does the management see a government without a purpose or a goal that could eventually hurt the business? Sending it across sees can take politics right out of the equation ( In the end outsourcing really is a preference as it is good for the business but can hurt the economic value of the area the business currently resides. How does your business see its value here versus there is the question that needs to be answered?

Sock n Jocks: Business Plan

Section 4: Marketing Plan Marketing Strategy In all cases where a business is to startup it is important to have a grasp on the market climate? Can this type of business survive here? Who will the customers be? How do we price our product? Could we price out a major share of the market? Questions could go on and on, some relevant, some not but the point is know what you are getting into before you dive in! Socks n Jocks is bringing the sports bar to the Laundromat or vice versa! A unique setting that has three favorite needs of the college aged student: Beer, Food, and Laundry. Boston, Massachusetts has a market that is home to some 60 colleges, some big, some small but none-the-less a home to the college aged individual (Allen, 2013)! The management team at Socks n Jocks will initially be looking for market growth. A startup business is in a situation where they need some immediate cash flow and immediate success. The market is going to dictate this success and this will be the strategy to start. Market Growth When it comes to the college aged individual how do you reach them? How do you get their attention? How do you get them to come to your business and more importantly how do you get them to become a regular at your place of business? In society today reaching out to the college aged individual has become rather easy due to technological advances and social media. Facebook Twitter LinkedIn

Sock n Jocks: Business Plan Email Smartphones Tablets Wi-Fi

The above are all areas that Sock nJocks plan to take advantage of in their marketing strategy. Facebook, Twitter, and LinkedIn pages will be setup and email blasts will be sent out to the surrounding colleges and universities. College students talk and word of mouth can be a piece of free marketing that can be unrivaled. Cost can be a concern when it comes to marketing especially in a startup business. The word of mouth route and social media sites are essentially very cheap. Here are the expected costs in our marketing strategy: Laptops: (4) @ $1000= $4000 Cell Phones: $1249 onetime cost, $495 per month (, 2013) Internet: $150/month broadband/wifi (, 2013) Website Startup: $3500 (, 2013) Total Cost: $9000 initial, $665 Annual Above there is a lot of information, ideas and thoughts but no process to make it work. When we are looking at our Marketing Strategy we will implement it in four stages: Stage 1: Observe Essentially in this stage we are looking at our environment, the surroundings, the people, and other businesses. Are there competitors? Is out market available in this area? Can our business work in these surroundings? These are really all questions that can be answered from just watching, observing, and taking note of what is happening ( 2013).

Sock n Jocks: Business Plan Step 2: Orient At this stage we are finding direction in our strategy. We know that the college aged individual is around. We know our business, which offers a sports bar and a Laundromat is a necessity to that demographic group and that it should be an attraction for them. The next step will be getting them there (, 2013). Step 3: Decide As is stated above the advances in technology today have made reaching out to be virtually effortless. It will be important for the Sock nJocks to decide what methods of this technology they want to use. Will it just be the social media pages or will they have an application that can be used on smart phones and tablets for the college aged individual (Mike, 2013)? Step 4: Act The put your money where your mouth is stage! Can you put all of your thoughts, ideas, and strategies into action so that Socks nJocks can become a successful business in the college communities of Boston, Massachusetts? The marketing strategy of the business is simple and unique just like the business. Is it fool proof, probably not? But if all things fall into place it will help Socks nJocks reached a liquid state at a more rapid pace, contain a strong customer base, and hopefully put some money in the pockets of the four owners (, 2013). Marketing Plan A marketing plan is a key piece and a key tool to any business as it helps a business recognize their market, their profitability, and their potential. When it comes to the plan there are many different roads you can take but in the case of Socks nJocks we are going to look at an e-

Sock n Jocks: Business Plan marketing plan as it plays into the technological pieces purchased for the management team and it also offers some free areas where the business can be seen. The e-marketing plan will be implemented using the following six steps: Step 1: Narrow the market Focus. When looking at a market you need to know who the target is and where the majority of the profit base will be. In our case we have identified the college communities in Boston, Massachusetts as our target and specifically the college student (Bly, 2013). Step 2: Position the Business. Knowing that the target group is college students you need to know what they want and more importantly what cost they can afford. Socks n Jocks is going to offer a sports bar, restaurant, and full service laundry. What college student doesnt see these three things as a necessity on a week-to-week, or even a day-today basis? Delivering the message to the college age student that there is a great atmosphere, cheap prices, and laundry to boot is very important. At Sock nJocks our plan is to reach great revenue with cheaper prices and mass quantity. The 60 plus colleges in the Boston, Massachusetts area will provide the quantity that we need (, 2013). Step 3: Create the Market Materials. Is the Facebook page, the Twitter feed, the email blasts, and the website updated with the specials and the atmosphere the business represents? If you want the market then you need to create the place that they want to be, the message needs to be what they want, where they want it, and when they want it. Crowds will create revenue for Sock nJocks on both the bar and the Laundromat sides (, 2013).

Sock n Jocks: Business Plan Step 4: Earn Media Attention. Now some may think that the business is getting ink in the paper or the local reporter is coming down to do an interview. Thats not the case here. The market for Socks nJocks is the college crowd and the media attention we are looking to stir up is social media. The word travels fast once it hits the internet and that is the attention that we want (, 2013). Step 5: Referrals. This stage essentially comes down to word of mouth. When we reach the projected environment that we want then people will talk and when people talk more people come. It really is a simple concept, a very inexpensive concept, and it may be our best marketing tool (, 2013). Step 6: Take Action. It all comes down to this step in business. Everyone can talk the talk but only some can walk the walk. The marketing plan can be great, it can be the best and it can be unrivaled but unless you can put it to use then it mean nothing. The management team at Socks nJocks all went to college together and they know what they wanted when they were in college. It is this experience which will help put the plan into play (, 2013) When looking at market research it is important to understand the value it can haven when opening a business. From the perspective of Socks nJocks it also set us as close to ease as we could be during the opening process. The following are the benefits we recognized for our business: Potential Opportunity: Is there a similar business to Sock nJocks in the area is the first questions to be asked? Well from the above discussion and the previous writing we know that we have no exact competition to the business that we are opening (, 2013).

Sock n Jocks: Business Plan Risk Assessment and Minimization: When looking at different demographic areas and different venues for Socks nJocks risk is assessed. Is this place to big, too small, in the right area? Is it close to a train stop? Is there another bar or Laundromat next door? When looking at risk we view it as a loss of success rather than a failure and this is the attitude or motto we have taken at Socks nJocks and it will help minimize our risk in the long run (, 2013). Problems and Solutions: Life would be easy if problems were not encountered but we all know in reality that is not the case. When putting the marketing plan together it is important to actually understand the market. Its a simple concept but if completed it will help. Markets change due to external factors such as construction, demolition, road work etc. When assessing a start-up market it is important to seek out these problems and then avoid a start-up in these areas (, 2013). Benchmarks: A benchmark represents in simplistic terms represents an industry goal that is established over a certain metrics. Market research in many ways allows for benchmarks to be established (, 2013). Self-Evaluation: Are the expectations being met? Are the benchmarks being reached? These are questions that can be answered with information that was gathered during the market research process (, 2013). When it comes to business there are certain tools that are simple on paper but can have an immense impact upon completion. One of those tools is a, S.W.O.T Analysis. The acronym represents strength, weakness, opportunity, and threat. Below is the completed SWOT for Socks nJocks:

Sock n Jocks: Business Plan Strength: Ownership Drive, Ownership Involvement, Market, Potential, Unique Business Weakness: No experience in the ownership realm, Capital, Unique Business Opportunity: Customer Traffic, Unique Business Threat: Competition, Inexperience, Costs, Profitability

Looking at the above areas it is only about Socks n Jocks as it should be. It is the business at hand and the business that is being opened. But there is one important element and in many ways the most important element, that has yet to be discussed. The Four Ps of marketing are essential, needed, and valuable tools to grasp when opening a business: 1. Product/Service: At Socks nJocks we are offering both a product and service. The sports bar/Laundromat is full service on both sides. Individually there are needs for the consumer at opposite ends of the spectrum. But when combined into the same place they offer a unique opportunity to relax at the bar while someone else is doing your laundry (, 2013). 2. Place: Here again is two opposite environments combined into one element (, 2013). 3. Price: The college market of Boston, Massachusetts is the target and the prices will be affordable and will borderline cheap. We are looking to maximize profit on quantity as the amount of college aged students in Boston is immense (, 2013). 4. Promotion: Promotion to the college aged individual can be very simplistic. The idea is to promote the atmosphere that involves something they love to do while something they hate to do is being done by another (, 2013).

Sock n Jocks: Business Plan Section 5: Information Technology Society today is a world that is revolves around technology and also is evolving with technology. Technology in many ways can brew a competitive market, it can put a business out of the market, and it can bring you to the head of the market. As far as the availability of technology it really is endless as long as the business checkbook is endless that is. Sock nJocks is a specialty business, a bar/Laundromat located in the busy New England city of Boston, Massachusetts. Both sections of the business sit in the service sector of the business market but both also will find the need for information technology to stay efficient. The management team at Socks nJocks; Jonathan Melanson, Travis Ferrante, Sam Williams, and Kevin Coyne have grown up in the ever evolving world of technology therefore they are looking to create an efficient and profitable business. The upfront costs are expected and budgeted for and they believe the return on investment will be threefold. When it comes to information technology there are different ideas that come to mind, the internet, computer, laptops, and easy communication. All three of which can create an efficient environment for a Socks nJocks which should equate to profit. Below are the initial hardware pieces that Socks nJocks will address when it comes to information technology: 1. Laptops: We will purchase four Dell Latitude Computers for Jon, Kevin, Sam, and Travis 2. Touch Screen PC/Cash Register/Printer: There will be three purchased for the restaurant bar and then two more for the Laundromat. 3. Software Packages: Point of Sale (POS) software to be purchased for each portion of the business. 4. Software Packages: QuickBooks, Microsoft Professional, Norton Antivirus 5. Printers: Two Cannon Laser/Monochrome: Printer, Scanner and Fax Machine (, 2013) In a business setting, especially a service business, it is very important that the above pieces are purchased and used effectively to create the efficient environment. The software packages that

Sock n Jocks: Business Plan are being installed are very common and easy to install, allowing Socks nJocks to complete all the initial setups internally. It is also very important to understand what the software packages are going to bring to the business. Lets first start by discussing the point of sale (POS) software which will be installed on the touch screen PC/Cash Register/Printer. The POS software will have the menu uploaded, it will act as the timekeeping for the staff, and it will also keep daily records of sales. The communication piece is the PC reaching the printer in the kitchen so orders are able to begin immediately. Next we will discuss Microsoft Professional and Norton Antivirus. The professional package is really no secret at all. Most all of us are familiar with the personal versions Microsoft has put forth. The will allow documents and spreadsheets to be built and they will also allow email addresses to be used and stored through Outlook. Now that we have discussed the hardware pieces that will be involved in the business it is important to discuss the development of the website, A website represents a necessity in the business world today with the evolution of the smart phone and the tablet. The website will be able to provide specials for food, the marketing of special events. Knowing that the target market is the college aged individual the website really becomes the marketing tool as all college students are surfing the internet and some point during the day. When it comes to technology, more specifically technology within a business questions about communications can arise. How does this PC use that printer? How is the POS system communicating with the Laundromat? How is the email working and how are the actual email addresses formed? At Sock nJocks the internal network is essential to business success. If

Sock n Jocks: Business Plan certain hardware pieces are unable to communicate then it will be a detriment to the business. Due to the ownership of the business growing up in a world of technology Sock nJocks is going to implement the cloud based technology. It is cost effective, efficient, and can handle an abundance of traffic. It can also allow access remotely which will be good for ownership to track the business when they are not on site. The cloud technology can also allow for a backup if the onsite system crashed. Having the cloud back up is a few clicks away from getting the business back up and running. The cloud is the disaster recovery plan for Sock nJocks. Information technology is not the be-all-end-all when it comes to business. Technology is evolving therefore it is not a perfect science at this time and there are flaws. In a service based business there will be consumer information transferring in and out of the system with the POS software. In todays world compliance issues play a major role when it comes to businesses. Making sure the proper measures are taken to protect the consumer is of utmost importance. The management piece of information is going to gall on the ownership team as this is their business and they want to be involved from open to close to make sure Sock nJocks gets off on the right foot. Is any business perfect? Absolutely not, but they do strive to be. This is the attitude that will be recognized at Socks nJocks as it is understood the weaknesses will be found in process. The biggest weakness that comes to mind in the information technology world really comes down to reliance. Will everything work? Computer can break, a bad email can be sent, and a card could be charged the wrong amount. These issues will happen in business and as long as they are addressed immediately and with respect things should be fine.

Sock n Jocks: Business Plan Up until now we have yet to discuss any sort of cost when it comes to information technology. The pieces have been talked about but when it comes to a startup accounting for every penny spent is important. Purchases: o Laptops: 4 @ $547 (, 2013) o POS Systems: 5 @ $1495 (, 2013) o Business Management Software: 5 @ $199 (, 2013) o Microsoft Professional: 4 @ $189.99 ( 2013) o Norton Antivirus: 4 @ $79.99 (, 2013) o QuickBooks: 4 @ $180 ( 2013) o Cloud Server: $184/Month (, 2013) o Website Design: $2500.00 Total Initial Cost: $14,046.92

The business world is not cheap and just getting things running in the world of information technology is going to be costly for Socks nJocks.

Sock n Jocks: Business Plan

Section 6: Financial Plan Part 1: Financial Analysis In the business world today there are many people who have great ideas for businesses but do not have the wherewithal to follow through with their idea and put it into play. Ideas usually dont come with money and that is what is needed to start a business. In many ways this is how we started our thought process. Sock n Jocks was once an idea or maybe it as even a dream but it has since evolved into an actual reality. Four college friends are actually now going to become business owners. In the following paragraphs we are going to look at the startup process and how the business eventually evolves through the eyes of the financial statements. The business that we are discussing today is Socks nJocks is a unique business that involves a restaurant, a sports bar, and a Laundromat. The trifecta in the business world for the ultimate sportsman. The unique business will also come with varying costs for the startup of the business. Starting this discussion I believe it is important to understand what the company is initially working with for money: Business Investment: Each of the four owners will invest $10,000 each. Investor Capital: Babson Capital Management: $275,000. o Rate: 9 %, Term: 120 Months Obtaining money from an investor can be a challenging process as investors are not in the business to lose money. They want to see value in the business and more importantly a return on their investment. We must have met with multiple investors and hedge fund managers who one after the other turned us down. Our last meeting ended up being with the Babson Capital Management Group and we caught some luck. We actually had an in that we didnt know about. An old college buddy of ours was one of their people who sat in on the meeting and he loved our

Sock n Jocks: Business Plan idea and the fact that it was going to sit in Boston where there is an excess amount of college student. It was actually our friend who got them to hand over the $275,000 investment. An initial startup fund of $315,000 is a very nice sum to work with. But it is during the start-up that the business may incur the most costs and moving forward we will look at the spending the business will have to do to get its doors open. The $40,000 initial investment by the owners is what each of them had in savings so this business venture represents all or nothing for them. The initial costs to find space for the business and furnishing the business are a necessity and are easily thought of but as you move forward there is listening and insurance costs that you really dont think of. In the end the after all the startup costs the business is going to end up with about $76,000 in an emergency fund. The financials for Socks n Jocks (see excel document) are strong for the first three years in existence as by year three the restaurants has income of almost 1.3 million dollars. Babson Capital Management made money on their investment and now Jon, Kevin, Sam, and Travis are off as business owner with only their own hard earned money. They are able to pay them employees, pay the bills, and they are even doing well individually. The owners have made the choice to not take more than enough money to live off for the first few years as they want the business to reach a high liquid level in hopes of using some of that money to open a second location. Part II: Cash Flow Analysis When looking at a cash flow analysis for a business you are essentially looking at the operating, investing, and finance activities on cash for a given accounting period. In the analysis the hope is that you will get answers to the following questions:

Sock n Jocks: Business Plan 1. Where does the cash come from and how is it spent? 2. Is there a difference between net income and cash? Why? 3. Is there enough cash to stay in business? 4. Is there enough cash to cover incurred debt and investment? 5. Is there enough cash for growth? Lets now look at the individual categories for the cash flow statements: Operating Activities: These are the active day-to-day activities at a business. In the case of Sock nJocks it would be the food service, bar service, and laundry services. Cash Intake: Revenue generated from the sale and service of food, alcohol, laundry and dry cleaning services. Interest derived from debt instruments, and dividends from investments. Cash Outflow: Payment to suppliers, government, investors, landlord, expenses, and also the payroll. Investing Activities: What money has been invested into fixed assets such as the washers and the dryers, the televisions, all restaurant furniture, the kitchen equipment, the bar equipment etc. Cash Intake: In the case of Sock nJocks in the first three years of existence they have no investing cash flow coming in, Cash Outflow: The purchase of all the equipment during the business startup.

Financing Activities: The start-up of Socksn Jocks did not involve a lot of financing as the initial investment from Babson Capital Management was the only money received. The Cash Flow Analysis itself is very important to a business. The phrase Cash is King holds very true to the health of a business. If you dont know how much cash you are

Sock n Jocks: Business Plan working with then how are you expected to meet expectations, pay for bills, invest in the future of the business, etc. Our in house accountant Kevin Coyne will handle all of these things for us.

Benefits: Meeting Payroll Paying the bills Investor or Stockholder Confidence Ability to grow and purchase items

Problems: Attempted survival off of credit Bankruptcy Employee Moral (not being paid)

It becomes obvious to the lay person that the inability to complete a cash flow analysis can lead to the failure of ones business. Businesses are created as a means of making income and if an ownership team or a management team is unable to tell who the cash that the business has available then it may be the management team that represents the problem rather than not completing a cash flow analysis. At Socks nJocks the plan will be to take any and all measure which will lead to a successful business. The cash flow analysis for the business will be of utmost importance especially with the business being a startup. The room for error is at its highest when we are in the beginning stages so cutting corners will not be an option.

Sock n Jocks: Business Plan Section 7: Management Summary As we move forward toward a complete business plan we have looked at marketing, financials, business structure, and what the actual business to be opened represents. The business that I am proposing to open is Socks nJocks. A unique combination of both a bar/restaurant and a Laundromat, which I believe to be the first of its kind, and it, will be set in the highly populated city of Boston, Massachusetts. Through the process of learning what the business is about, the staffing it needs, and the money that needs to be invested there really is one important piece that we have left out. In the initial business idea we touched upon the management team for the business but we really have yet to elaborate or provide any detail on how they plan to run the business. In the following paragraphs we will examine management, consulting, and other professional services needed to run the business. Management CEO: Jonathan Melanson o The job will consist of overseeing the company as a whole on both the bar/restaurant and Laundromat portions of the business. Jon will also hand the marketing and advertising for the business while receiving advisement from a marketing firm. His final duties will be that of compliance and human resources for the business. COO: Sam Williams o The job will consist of running the bar. Hiring/firing, ordering, payroll for the bar employees. COO: Travis Ferrante

Sock n Jocks: Business Plan o The job will consist of running the kitchen/restaurant staff, hiring/firing, and payroll for the restaurant staff. CFO: Kevin Coyne o Kevin is going to wear two hats as he will run the Laundromat and he will also handle the financials for both companies. All together these four individuals form the management team for Socks nJocks at least from the beginning. As cost saver the four members of the management team are handling duties that would normally be assigned to employees that are not yet present within the company. If the business does take off and grow to a profitable level then the idea of expanding the management team in the following positions will be discussed: HR Manager, Supply Manager, and Accounting Manager. In a business setting it is also important for the leadership to adopt a philosophy as it creates the atmosphere of the business and it can also set the expectations within the employee base. It will be no different at Socks nJocks as the management team expects a hardworking, fun, and competitive atmosphere. The athletic backgrounds of the ownership team really plays into the philosophy of the business and the actuality of what the business is. Also within the athletic background is teamwork and this also will be adopted by Socks nJocks. There are three main areas of the business: The Bar, The Restaurant, and the Laundromat. It makes sense that we have three teams at the business as well. Team work can make processes easier, it can build morale, and it can build trust all three of which are essential pieces of our business being successful. If each member of the group does their piece then the dynamic is met and the job is complete. A mantra at our business will be one person is good; two people are better but a team is the best.

Sock n Jocks: Business Plan In the interim the plan for the business will be to use consultants and advisors if we run into any issues. In reality though the cost will come in very low for the business as the personal contacts of the management team are going to be used to the advantage of Socks nJocks. Personal Advisors (Pro Bono) Vincent Coyne: Former owner of Coynes Laundromat (Portland, Maine) and he is also the father of our CFO, Kevin Coyne. He will be used to advise us in the operations of our Laundromat and in the purchasing of our startup equipment as well as future Laundromat purchases. Bob Napolitano: Owner Brunos Restaurant and Tavern (Portland, Maine). Bob is a friend of Jonathan Melansons family and has been a bar/restaurant owner for over 25 years. He has offered his services for any questions we may have on our bar restaurant side of the business. Consultants In the case of consultants Jon plans to use them for ideas and concepts in marketing and advertising. There really are no contacts for this part of the business so we were left search the Boston Area for a firm that we felt comfortable with. After a fairly extensive search we decided on the following firms: DC Associates: They are a firm that specializes in restaurant marketing and we feel they will be a good fit for us now and in the future as we grow (, 2013). 451 Marketing: They specialize in internet and social media marketing which will play very well into the consumer base we are targeting (, 2013). The use of the consulting firms will hopefully add to the success that we predict for the company.

Sock n Jocks: Business Plan Scenarios: In any and every business there are going to be issues that arise as no business is perfect. The character of the business and its individuals is built upon how the issues are handled and how they are put behind and the business is able to move forward. We are going to look at three different scenarios and how a management team would handle them: Scenario 1: Your manufacturer has a labor strike that may last for 6 months This is an interesting scenario and I am going to have to answer it from the hip as it really would not apply to Socks n Jocks. If I was a manager or executive in a manufacturing type of business or a business that relied on a manufacturer then the initial key is not to panic. The hire you are in a company the more important your reaction is. If you react calm your employees should follow suit. The next step would be to take an inventory of the product on hand and look for a time frame before panic would set in. As an executive it would be nave to think that your manufacturer is the only one around so getting on the phone would also be a necessary step as you may find a new manufacturer rather quickly and move on with business as if nothing happened. Scenario 2: Three more competitors emerge who are now in direct competition with your company in product quality and price. Competition in my mind is never a bad thing as it keeps your thoughts and reactions fresh. I would welcome competition as I believe I would be the best manager in a competitive environment. From a leadership and management perspective I would expect added effort from my employees and also a keen focus to the task at hand. Competition has the ability to bring out the best in most but it also has the ability to end a business. Competition can take customer and

Sock n Jocks: Business Plan product sales away and then the health of a business can fall. There are a few things that can be recommended when competitors come into the market: Be Prepared: Expect competition and you wont be caught off guard when it arrives. Be humble: Dont put all the effort into beating the competition, remember to keep the effort of your business being the most successful. Motivate: For the lacking of a better term, Winning is getting the most out of the employee base and it take motivation to do this. Scenario 3: You have had to layoff half your employees and the rest are disheartened as a result. Layoffs in many ways are part of the business world and they represent the economic health of the business. The most important step for a leader to take is this case is honesty. Dont surprise people, dont hide it from people.just let them know the truth. They may not react well at first but eventually they will respect the decision that needs to be made. In terms of the disheartened employees the honesty will show that you truly care about the employee base and the layoff was simply part of business and nothing personal. Business decisions are hard, there is no doubt about it and they need to be made with decisiveness and respect. As a leader in a business it is important not to fault the employee for a disheartened reaction but be open to conversation and a possible future reunion.

Sock n Jocks: Business Plan


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Sock n Jocks: Business Plan

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Sock n Jocks: Business Plan

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Sock n Jocks: Business Plan

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Sock n Jocks: Business Plan

Appendix Jon MelansonCEO/Business Manager Assistant Accounting Clerk Sam Williams-Bar COO/Manager Assistant Manager 5 Bartenders 8 Servers 3 Hostesses Breakfast Monday Tuesday Wed. Thursday Friday Saturday Sunday 18 15 13 22 16 48 62 Lunch 20 16 17 18 32 78 108 Dinner 21 17 15 12 91 110 49 Travis FerranteCOO/Kitchen Manager Assistant Manager 5 Line Cooks 4 Helpers Kevin CoyneCFO/Laundromat Manager Assistant Manager 3 Clerks 2 Washers 2 Folders Lunch $13 $13 $13 $13 $17 $31 $40 Dinner $22 $22 $22 $22 $22 $40 $38 Sales $884 $717 $668 $696 $2690 $7490 $7484

Breakfast $9 $9 $9 $9 $9 $14 $21