Paletta Pops Business Plan Section 6 – Operational Plan

Day to day operations

As mentioned before, Paletta Pops is currently a home-operated business,

without a standard physical retail location. However, upon expansion and
sourcing of a physical outlet, the estimated hours and days of operations will be
as follows:
 Mondays to Saturdays: 9am – 6pm
 Sundays: 1pm – 7pm
Currently, Paletta Pops provides a delivery service once a week on Saturdays from
2pm – 5pm. Upon expansion and upgrading of equipment, Paletta Pops will be
able to increase days of delivery due to higher supply capacities. Delivery will
increase from once a week to three times a week. The schedule will be as follows:
 Wednesdays: 10am – 2pm
 Saturdays & Sundays: 1pm – 5pm
In terms of seasonality, Paletta Pops will be open year-round. However, the only
seasonal aspect of the business will be related to flavors, as not all fruits are
available year round. The availability of some flavors will directly relate to the
seasonality of certain fruits. Additionally, certain sales promotions may also be
seasonal, for example holiday promotions.
At Paletta Pops, customer service is integral in everything that we do. We strive to
maintain a high level of customer service, and upon expansion, it is anticipated
that customer demands will be more effectively met as the output of the business
will increase. Effective responses to customer demand means higher customer
satisfaction.
With payment terms, mainly cash payments will be accepted. Paletta Pops does
not typically provide credit options, however in the case of bulk orders or large
event orders, credit policies and deposit payments may be put in place on a per
customer basis. Upon expansion to a physical location, customers will also be
provided with the option to pay with debit or credit cards, as a machine will be
set up. Discounts will only be offered in the event of special promotions,
giveaways or bulk orders. If clients are in some way dissatisfied with Paletta Pops’
service, or if the business is not able to fulfill a request that was paid for by the
client, they may be eligible to rebates and refunds.

Location Strategy

For the selection of the ideal location for a Paletta Pops store, the two major ideal
locations would be Kingstown or Arnos Vale. These two areas would be the main
sought after locations for a Paletta Pops expansion due to them possibly being the
two most frequently visited and popular locations in St. Vincent.
Kingstown, being the capital city of our country, is exposed to the highest amount
of traffic and visitors when compared to other places in St. Vincent. This is
because the majority of essential, popular and commercial businesses are located
here, as well as the majority of government offices. Having a location in
Kingstown (especially uptown) would be ideal for exposure of the business, as
well as ideal for having high levels of in-store traffic. Setting up shop in Kingstown
will open Paletta Pops to the possibility of having a broad range of clientele,
ranging from persons working in the area, visitors from the cruise ship terminal,
schoolchildren, and persons from other areas of the country who have come into
Kingstown to run errands or with the intent of spending money.
The next most logical area to place a Paletta Pops store would be Arnos Vale.
Although not as heavily visited or populated as Kingstown, Arnos Vale can be
considered to be the second most popular area in St. Vincent. Not only with plans
being put in place to develop Arnos Vale as the new capital city, it is slowly
becoming a commercial hot-spot due to the presence of a variety of popular local
businesses and franchises, and an emerging array of nightlife. Arnos Vale would
be a great option for a physical location as it also attracts a substantial amount of
traffic due to the businesses located there, as well as the fact that it acts as a hub
for local minibuses to pick up passengers and depart to their various locations.
Additionally, Arnos Vale is strategically placed on the outskirts of Kingstown,
meaning that the majority of working persons from the Windward side of the
island must pass through Arnos Vale several times on a daily basis. With proper
signage, many of these persons may be tempted to pull aside and grab a cold
treat after a long day of work.
Due to the vast majorities of properties in both of these areas already being
owned, the outlet space would most likely be leased. Given all the advantages of
the location, a strategically spaced property in Kingstown or Arnos Vale may
range from monthly rates of anywhere from $1200 - $4000. After careful
consideration of the size needed, the most adequate and affordable deals will be
chosen. The ideal characteristics for a rented space are the following:
 Minimal renovations needed
 Easily accessible to pedestrians or passersby (ideally visible from the road,
or no higher than the first floor of a building)
 Ample space to house necessary equipment and enough seating
arrangements for customers.
 Not exceeding a rent of $2,000 a month.

Production

 Can you describe the steps or procedures, manufacturing methods,

product components and required timelines? –

Although there are varying Paletta Pop flavours, the core manufacturing
process is practically the same. 1) The main Popsicle base is first made by
preparing ingredients. This begins with thoroughly washing fruits (if fruit
based), and slicing them into pieces. 2) Depending on the flavour, other
ingredients are then added, such as sugar and water, and the mixture is
then blended (in a home blender due to the current home-style
production) to create the main base. The process is the same for milk pops,
with the exception of certain ingredients. 3) The popsicle base is then
poured into molds with their sticks, and placed in a freezer. Chunks of fruit,
cookie pieces, chocolate chips and other ingredients may be added to the
popsicle (depending on the flavour) to add texture, create more visual
appeal, and to contribute to flavour. 4) After the freezing process, the
popsicle molds are then submerged in a tub of warm water for a few
seconds to loosen the pops from their molds, and then removed. Upon
removal, the popsicles are placed in special Paletta Pops branded bags, to
be served to customers. Each popsicle bag has a branded sticker indicating
the flavour. It can be said that there are three main components to each
Paletta Pop: The popsicle base, the popsicle stick, and packaging.

Timelines: At present, Paletta Pops is able to produce 20 Popsicles every 4

hours. In an average day of production, about 60 popsicles are made.
Including every day of production, an average of 300 popsicles are able to
be manufactured weekly, using basic home equipment. However, given the
lack of storage space, as Paletta Pops is a home business, the actual
production number is much lower than this, with a maximum of
approximately 80 popsicles to be stored at a time. This only allows for
Paletta Pops to engage in small scale distribution of its products, including
the fact that a minimum amount of stock must be kept on hand.

However, with the equipment being sourced from the grant, this number
will significantly increase. Being requested is a large deep freeze unit for
highly increased storage space, along with the Finamac Turbo 8 popsicle
machine. This machine is an entry level popsicle manufacturing machine
with the capacity of producing 100 – 250 Paletta Pops per hour. This will
not only enable Paletta Pops to more efficiently and comfortably provide its
products to a larger customer base, but will also allow for the capability of
distributing its products to retailers as well as for the catering of events.

The production calendar/schedule will be set on a daily basis, or based on

needs for the replenishment of stock for varying flavors.

Quality Control – At Paletta Pops, the quality of our products is the most
important aspect of our operation. To ensure the highest quality of our
 products, quality control begins before production. This entails the
selection of only the freshest and highest quality, all natural fruits and
ingredients in our popsicle blends. Each batch of our different flavors have
unique recipes which consist of specific measurements and quantities of
ingredients to ensure consistent flavor, quality and textures of our
products. As an extra measure, each mixture is individually taste tested to
confirm that tastes are up to standard. This is a process repeated after the
freezing of each popsicle, with a few set aside from each batch specifically
for this purpose.

Not only is flavour an important part of quality control, but presentation is

also key. After the freezing and de-molding of each popsicle, they are
carefully inspected for any defects and abnormalities in their shape which
may not be appealing to customers. The same goes for individual packaging
and labeling. Popsicles with defects or abnormalities will be discarded, and
not offered or sold to the public.

 What technologies will be used? – The main equipment that will be

employed by Paletta Pops upon the approval of the PRYME grant are as
follows:
1. Finamac Turbo 8 Popsicle Maker (with respective molds and
accessories) - Industrial grade, professional popsicle making machine
from Finamac. Has the capability of producing 100-250 popsicles an
hour. Working with water and milk based popsicles, this is the most
basic popsicle machine offered by Finamac, perfect for small startup
popsicle businesses. The employment of this machine would allow
Paletta Pops to comfortably and efficiently produce its products for
its own retail purposes, as well as to cater for events or other
businesses.
2. Finamac Mixer 15 - Industrial grade, professional mixer/blender from
Finamac. Goes hand in hand with the Turbo 8 popsicle maker, as a
blending machine is necessary to produce the base mixtures any
popsicle. This one in particular was chosen as it is the most basic
blending machine offered for startup popsicle businesses. It holds up
to 8 liters of mixture, and improves the quality of mixes by
 incorporating air into the blend to allow for smoother and richer
popsicles. The incorporation of air also allows for mixtures to last for
more batches, thus increasing profits by increasing the yield of one
batch.
3. Finamac Flex UnMold Tank - An essential tool in the process of
popsicle making. It consists of a tank of warm water where the ice
pops are placed for a few seconds and the temperature is controlled
electronically. The thermally controlled process of the ice pop mold
being dipped into the tank for a few seconds causes a heat shock that
allows the ice pops to be loosened from their molds almost instantly.
This prevents potential breaking of popsicles while unmolding,
reducing loss of materials and potential profits.
4. Mastertech 418L 14.8 CUFT Deep Freezer - A deep freezer is
essential to the business, as it allows for the storage of stock at the
optimal temperature, preserving quality and preventing loss of
inventory. This particular freezer by Mastertech has a capacity of
418L, the perfect size to store just enough popsicles for a small
startup popsicle business.

Inventory
 What raw materials will you be using for your manufacturing process? –
Since Paletta Pops are simple and naturally made popsicles, not many raw
materials will be used. The following are the raw materials to be used:
1. Assorted selection of fresh fruits/fruit pulp. (Flavor dependent)
2. Water/Milk. (Flavor dependent)
3. Sugar/Condensed milk. (Flavor dependent)
4. Additional toppings or ingredients such as chocolate chips or
cookie pieces. (Flavor dependent)
5. Popsicle sticks.
6. Popsicle bags and packaging.
 What quantities must you keep in inventory? – A minimum of 100 Paletta
Pops would be kept in inventory upon employment of machines. Current
home scale production allows for a minimum of 30 Paletta Pops to be kept
 in stock. The minimum quantity of raw materials to be kept in stock would
be estimated quantities to allow for a week’s production.

 Who are your main suppliers? – My current main suppliers are as follows:

1. Ranee’s Food Supplies: Located in the Mesopotamia Valley,

offer deliveries
2. Massy Stores: Several locations located in Arnos Vale,
Kingstown and Stony Grounds.
3. CK Greaves LTD: Several locations located in Arnos Vale,
Kingstown and Pembroke.
4. Amazon: Online based store, where popsicle sticks and
bags are sourced from.
Upon expansion, these suppliers will most likely remain the same, with the
exception of popsicle sticks and packaging being sourced from Finamac, located in
Sweetwater, Florida, USA. Paletta Pops does not currently have any credit terms
with its suppliers.

Supplier Location Type of Credit/Deliver Freight in

Name Inventory y Terms Shipping
Costs
Ranee’s Food Mesopotamia Fruits and N/A N/A
Supplies Valley, St. fresh produce
Vincent
Massy Stores Arnos Vale, Fruits and N/A N/A
Kingstown, additional
Stony ingredients
Grounds (St.
Vincent)
CK Greaves Arnos Vale, Fruits and N/A N/A
LTD Kingstown, additional
Pembroke (St. ingredients
Vincent)
Finamac LLC Sweetwater, Popsicle bags, N/A
 Florida, USA sticks

These suppliers do not offer credit payment options, and due to the nature of the
goods, return on items that are not selling is not available. However, return of
items that are damaged or broken may be available. All of the costs incurred are
already included in the cost of goods sold price for each unit.
These suppliers are all vital to the running of the business, as each of them
provide crucial raw materials. Although they have all proven to be very reliable
thus far, in the event that they cannot deliver, alternative suppliers can be
contacted to provide the same materials.

Inventory Purchasing Plan

Year 1
Month Inventory Plus =Available Minus Inventory
at Purchases Inventory Monthly at month
beginning Forecasted end
of month Sales
(costs)

Year 2
Month Inventory Plus =Available Minus Inventory
at Purchases Inventory Monthly at month
beginning Forecasted end
 of month Sales
(costs)

Equipment
Equipment Fair Market Acquired To Acquire Date of
Value Acquirement
Finamac $6,800. USD - To Acquire N/A
Turbo 8
Popsicle
Maker
Finamac $1,900 USD - To Acquire N/A
Mixer 15
Finamac Flex $1,900 USD - To Acquire N/A
UnMold Tank
Mastertech $1,999 XCD - To Acquire N/A
418L 14.8
CUFT Deep
Freezer

Quality Control
At Paletta Pops, the quality of our products is the most important aspect of
our operation. To ensure the highest quality of our products, quality control
begins before production. This entails the selection of only the freshest and
highest quality, all natural fruits and ingredients in our popsicle blends.
Each batch of our different flavors have unique recipes which consist of
specific measurements and quantities of ingredients to ensure consistent
flavor, quality and textures of our products. As an extra measure, each
mixture is individually taste tested to confirm that tastes are up to
standard. This is a process repeated after the freezing of each popsicle, with
a few set aside from each batch specifically for this purpose.

Not only is flavour an important part of quality control, but presentation is

also key. After the freezing and de-molding of each popsicle, they are
carefully inspected for any defects and abnormalities in their shape which
may not be appealing to customers. The same goes for individual packaging
and labeling. Popsicles with defects or abnormalities will be discarded, and
not offered or sold to the public.

Bookkeeping and Financial Controls

A Quickbooks digital accounting software will be used to control and

manage all financial aspects of the business. This will allow for the control
of stock on hand as well as goods sold, and financial statements to analyze
which product flavours are selling best. These financial statements will be
produced by the business every end of year.

Quickbooks and other bookkeeping aspects will be done by the owner.

Given the fact that the business is currently being run by the sole
proprietor, this ensures the highest level of security of the business’s
assets, as they will always be present to supervise equipment. Also, since
no employees are currently employed by the business, employee theft will
not be an issue. In the event that employees are to be hired, security
measures such as the instalment of security cameras will be implemented.
Inventory is to be counted at the end of every business week.