1.

Introduction

Addis Car Wash Service

House No- New
Akaki kaliti Sub-City, kebele 11

Addis Car Wash Service will be providing car wash service for
Auto mobiles,Minibuses, and land cruisers of Addis Ababa City
only. This business will includeexterior car wash and interior
cleaning services.

The business is a partnership type which is established by eight

partners. All arecontributed different amount of capital for
investment.
Detail of the Co-Owners

no name id
1 swalih mohammed
2 temesgen
3 Rediet
4 Rediet
5
6
7
8
9
10
ExecutiveSummary
Marianne and Keith Bean have been involved with the food industry for
severalyears.TheyopenedtheirfirstrestaurantinAntlers,Oklahomain1981,andtheirsecondi
n Hugo in 1988.Although praised for the quality of many of the items on their
menu,they have attained a special notoriety for their desserts.After years of requests for
theirflavored whipped cream toppings, they have decided to pursue marketing these
productsseparatelyfrom therestaurants.

Marianne and Keith Bean have developed several recipes for flavored
whippedcream topping.They include chocolate, raspberry, cinnamon almond, and
strawberry.Theseflavoreddesserttoppingshavebeenusedinthesettingoftheirtwo
restaurantsoverthe past 18 years, and have been produced in large quantities.The
estimated shelf life
oftheproductis21daysatrefrigerationtemperaturesanduptosixmonthswhenfrozen.
The Beans intend to market this product in its frozen state in 8 and 12-ounce plastic
tubs.They also intend to have the products available in six ounce pressurized cans.
Specialattention has been given to developing an attractive label that will stress
thegourmet/specialtynature of theproducts.

Distribution of Fancy’s Foods Whipped Dream product will begin in the

localsoutheasternOklahoma
area.TheBeanshaveanestablishednameandreputationinthisarea,and product
introductionshould encounterlittleresistance.

Financial analyses show that the company will have both a positive cash flow
andprofitin thefirstyear.Theexpected returnonequityinthefirstyearis 10.88%
 Tableof Contents
ExecutiveSummary............................................................................2

BackgroundandHistory......................................................................4

DescriptionofProducts........................................................................4

Market Description............................................................................4

Competition........................................................................................5

MarketingStrategies...........................................................................5

Manufacturing Plans..........................................................................6

FinancialProjections...........................................................................6
IncomeStatement.......................................................................7
CashFlowAnalysis....................................................................11
BalanceSheet.............................................................................12
FinancialRatios.........................................................................13

ContingencyPlans..............................................................................14

Appendices.........................................................................................15
LettersofEndorsement...............................................................15
ResumesofManagement............................................................15
ProductLabels...........................................................................15
BackgroundandHistory

Marianne and Keith Bean have been involved with the food industry for
severalyears.TheyopenedtheirfirstrestaurantinAntlers,Oklahomain1981,andtheirsecondi
n Hugo in 1988.Although praised for the quality of many of the items on their
menu,they have attained a special notoriety for their desserts.After years of requests for
theirflavored whipped cream toppings, they have decided to pursue marketing these
productsseparatelyfrom therestaurants.

DescriptionofProducts
Marianne and Keith Bean have developed several recipes for flavored
whippedcream topping.They include chocolate, raspberry, cinnamon almond, and
strawberry.Theseflavoreddesserttoppingshavebeenusedinthesettingoftheirtwo
restaurantsoverthe past 18 years, and have been produced in large quantities.The
estimated shelf life
oftheproductis21daysatrefrigerationtemperaturesanduptosixmonthswhenfrozen.

The Beans intend to market this product in its frozen state in 8 and 12-
ounceplastictubs.Theyalso intendto havethe productsavailable
insixouncepressurizedcans.

MarketDescription

The flavored whipped toppings that Fancy’s Foods will market will fall into
twodistinct categories: Dairy products and gourmet/specialty foods.This business plan
willlookat thesetwo marketsseparately.

Dairy Products:While the overall consumption of dairy products in the

UnitedStates declined from 1972 to 1994, the market has seen a slight increase in the
past fouryears (Census of Agricultural Products, 1998, USDA). Dr. John Moore of the
Universityof Florida expects the consumption of dairy product in the United States to
continue amodest increase of 1.5-2% per year, which is significant in this $268 billion
annualmarket.Thisis attributedin part tomoresophisticated
processingtechniqueswhichhaveincreasedthevarietyofdairyproductsavailable,aswellasthei
ncreasedawarenessofthebenefits of a calciumrich diet (Moore et al,1998).

Gourmet/Specialty Products:Kalorama Information LLC, a market

researchfirmbasedinNewYork, indicatesthatthe gourmet/specialtyfoodsmarket
willcontinuea fast paced growth well into the next decade.This $39-billion domestic
industry hasdoubledsince1992, andisexpected tocontinuedouble-digitgrowththrough
2002.
Whiledemographicinformationindicates thatthissector
oftheindustryisstrongestinmetropolitanareas,therearealsogrowthopportunities
insmallercommunities.
Packaging and point of purchase marketing efforts are especially important in
thismarket,andspecial attentionwill begiven tothese aspectsofWhipped Dream.
Competition

There areseveral brandsof whipped toppingavailable in mainstream retailoutlets.

In the grocery stores in the Antlers and Hugo area, all of the ready-to-eat varietiesare
produced by large players, specifically Kraft and Sara Lee.There are also dry
mixesavailable, but these are not direct competition for Whipped Dream.According to
salesfigures at grocery outlets in Antlers and Hugo, approximately 65% of the national
brandprepared whipped topping is sold in frozen tub form, while the remaining 35% is
inpressurizedcan form.

Thestrengths oftheseproductsaretheirmarket sharesand

distributionchannels.They are available in virtually any retail grocery outlet, and have
gained strong marketacceptance.They are also distributed with other refrigerated and
frozen dairy products.Finally, they are priced at $1.29-1.89 per 8-ounce tub or 6-ounce
pressurized can, anadvantage whencompared tothesuggested retailpriceof
WhippedDream.

Theweakness oftheseproductsis inthelackof variety.Noneof

thesecompaniesproduce or market a flavored topping.Several of the products are also
classified as‘whipped topping’, but areactuallynot dairybased.

MarketingStrategies

Distribution of Fancy’s Foods Whipped Dream product will begin in the

localsoutheasternOklahoma
area.TheBeanshaveanestablishednameandreputationinthisarea,andproduct
introductionshouldencounter littleresistance.Themanagersof
Pruett’s IGA and Gardiner’s Grocery in Antlers, as well as Pruett’s in Hugo,
haveindicated that they are willing to carry the products.Their letters of intent
andendorsement are included in the Appendix section.It is also important to note
thatGardiner’sGroceryputsanemphasis onspecialtyfoodproductsin additionto
standardgroceryitems.

After Whipped Dream’s debut in Antlers, Hugo, and surrounding towns,

Fancy’sFoods intends to participate in the “Made in Oklahoma” Demonstration
ProgramadministeredbytheOklahomaDepartmentofAgricultureandPratt’sFoodsinOklaho
maCity.This program will enable the Beans to introduce Whipped Dream into
theOklahoma City metropolitan area under more favorable market
conditions.Fancy’sFoodsalso intendsto enter thegroceryand specialtymarketsin the Tulsa
areain 2000.
The Beans will rely heavily on in-store displays and demonstrations in
southeasternOklahomastores, as wellas thoseinTulsaand OklahomaCity.
Theywilldemonstratethe flavored topping in conjunction with fresh fruit during
warmer months, and as atoppingongourmet coffeeandhot chocolate in the
coolermonths.

Special attention has been given to developing an attractive label that will
stressthe gourmet/specialtynatureof theproducts.A copyof thelabel is attached inthe
appendices.LindaByford,abusinessplanningandmarketingspecialistattheOklahomaFood
and Agricultural Products Research and Technology Center at Oklahoma StateUniversity
assisted with developing the label, and conducted a focus group study toevaluatethe
imageprojected bythe labelaswellas the packaging.

ManufacturingPlans

Because Fancy’s Foods owns and operates two restaurants, they have
facilitiesavailabletothemfor
acertainamountoftheproduction.RobertBattles,thePushmatahaCounty inspector for the
Oklahoma Health Department, indicates that The Beans can usethese facilities to
manufacture food available for retail sale provided that the
productionoccurswhiletherestaurant is not open to thepublic.

Fancy’s Foods has a 50-gallon high speed mixer, a pressurized tank in which
theproduct can be gassed with nitrous oxide, and a 10-foot by 10-foot walk-in
freezer,enablingthem toboth produceandstorefrozen tubsof Whipped Dream.This
processisalready established on a commercial scale.They are in fact already making
WhippedDreamfor usein their restaurant, and storingit in thefreezer.

Keith and Marianne feel that the specialty nature of the product will lend
itselfwell to the pressurized can, and this was confirmed by the focus group conducted
atOklahoma State University.To pursue that opportunity, Fancy’s Foods has
contractedproduction of the pressurized 6-ounce cans with Farm Fresh, an Oklahoma
dairyprocessingfirm.A non-competition/non-disclosureagreementis in place,and
acopyofthisdocument is included in the appendices.

FinancialProjections

The following pages include multi year projections for income, cash flow,
balancestatement, as well as estimated financial ratios.These projections are for the
WhippedDream division of Fancy’s Foods LLC only.Historical financial information on
Fancy’sFoodsrestaurants is available upon request.
 Fancy'sFoodsLLC
Pro Forma Income
StatementJanuary1999-
December1999

NetSales $240,450.00
Less:CostofGoodsSoldGross $182,000.00
Income $58,450.00

Operating
ExpensesLabor $12,000.00
Utilities $3,000.00
Insurance $2,400.00
SalesPromotion $12,000.00
DeliveryandTransportation $6,000.00
MiscellaneousT $1,500.00
otalExpenses $36,900.00

NetIncomeBeforeTaxes $21,550.00
Less:IncomeTaxes $6,465.00
NetIncomeAfterTaxes $15,085.00

Assumptions:
1 Netsalesbasedonpriceof$2.29perunit,
24,000unitssoldinAntlers 2,000 units per
month36,000unitssoldinHugo 3,000 units per
month45,000unitssold inOklahomaCity 9,000unitspermonthfor5
months

Salesestimatesbasedon5%marketshareforprepared whippedtoppingineachmarket.

2 Cost of goods sold includes ingredients, packaging materials, labels, and co-
packingexpensesfor canned product.

3 Nosalarywillbedrawn bytheowners/managersinthefirstyear.Allprofitswillbere-investedfor
newmarketentryand increasedproduction.
 Fancy'sFoodsLLC
Pro Forma Income
StatementJanuary2000-
December2000

NetSales $425,940.00
Less:CostofGoodsSoldGross $318,060.00
Income $107,880.00

OperatingExpenses
Labor $18,000.00
Utilities $5,000.00
Insurance $2,400.00
SalesPromotion $18,000.00
DeliveryandTransportation $12,000.00
MiscellaneousT $1,500.00
otalExpenses $56,900.00

NetIncomeBeforeTaxes $50,980.00
Less:Income $15,294.00
TaxesNetIncomeAfterTax $35,686.00
es

Assumptions:
1 Net sales based on price of $2.29 perunit,
26,400unitssoldinAntlers 2,200 units per
month39,600unitssoldinHugo 3,300 units per
month120,000unitssold inOklahomaCity10,000unitspermonth

Salesestimatesbasedon10%salesincreasefrompreviousyear.

2 Cost of goods sold includes ingredients, packaging materials, labels, and co-
packingexpensesfor canned product.

3 Nosalarywillbedrawn bytheowners/managersinthesecondyear.Allprofitswillbere-
investedfor newmarketentryand increasedproduction.
 Fancy'sFoodsLLC
Pro Forma Income
StatementJanuary2001-
December2001

NetSales $592,194.00
Less:CostofGoodsSoldGross $442,206.00
Income $149,988.00

Operating
ExpensesSalar $20,000.00
y
Labor $30,000.00
Utilities $6,500.00
Insurance $3,600.00
SalesPromotion $25,000.00
DeliveryandTransportation $16,500.00
MiscellaneousT $1,500.00
otalExpenses $83,100.00

NetIncomeBeforeTaxes $66,888.00
Less:Income $20,066.40
TaxesNetIncomeAfterTax $46,821.60
es

Assumptions:
1 Net sales based on price of $2.29 perunit,
29,040unitssoldinAntlers 2,420 units per
month43,560unitssoldinHugo 3,630 units per
month132,000unitssoldinOklahoma City 11,000 units per
month54,000unitssoldinTulsa 9,000unitspermonthfor6
months

Salesestimatesbasedon10%salesincreasefrompreviousyear.

2 Cost of goods sold includes ingredients, packaging materials, labels, and co-
packingexpensesfor canned product.

3 Salarywillbedrawnbytheowners/managersinthethirdyear.
 Fancy's FoodsLLC
ProFormaCashFlowStatementJanua
ry1999-December 1999
January February March April May June July August September October November December TOTAL
Revenues $11,450 $11,450 $11,450 $11,450 $11,450 $11,450 $11,450 $32,060 $32,060 $32,060 $32,060 $32,060 $240,450
Expenses
CostofGoodsSold $8,550 $8,550 $8,550 $8,550 $8,550 $8,550 $8,550 $23,940 $23,940 $23,940 $23,940 $23,940 $182,000
Labor $0 $0 $0 $0 $0 $0 $0 $2,400 $2,400 $2,400 $2,400 $2,400 $12,000
Utilities $100 $100 $100 $100 $100 $100 $100 $460 $460 $460 $460 $460 $3,000
Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
SalesPromotion $500 $500 $500 $500 $500 $500 $500 $1,700 $1,700 $1,700 $1,700 $1,700 $12,000
DeliveryandTransportation $200 $200 $200 $200 $200 $200 $200 $920 $920 $920 $920 $920 $6,000
Miscellaneous $50 $50 $50 $50 $50 $50 $50 $225 $225 $225 $225 $225 $1,500

TotalCashFlow $1,850 $1,850 $1,850 $1,850 $1,850 $1,850 $1,850 $2,215 $2,215 $2,215 $2,215 $2,215 $21,550
 Fancy's Foods
LLCProFormaBalanceSheet
December31,1999
CurrentAssets
Cash $7,054.00
AccountsReceivable $60,484.00
Inventory $80,042.00
Pre-PaidExpenses $1,046.00
TotalCurrentAssets $148,626.00

FixedAssets
Building $100,500.00
Equipment $40,950.00
GrossFixedAssets $141,450.00
LessAccumulatedDepreciation $16,900.00
NetFixed Assets $124,550.00

TotalAssets $273,176.00

LIABILITIESANDOWNERSEQUITY
Liabilities
CurrentLiabiliities
AccountsPayable $51,343.00
AccruedPayables $3,060.00
TotalCurrentLiabilities $54,408.00

LongTermLiabilities
MortgagePayable $20,708.00
TotalLiabilities $75,116.00

Owner'sEquity $198,060.00

TotalLiabilitiesandOwner'sEquity $273,176.00

[Note:A typical business plan would have 3-5 years of pro forma balance sheets, not
justone year as shown here.The pro forma balance sheets for following years will
beimpactedbyhowprofitsarehandled(retainedinthebusinessorpaidouttotheowner(s)), how
assets are depreciated over time, the reinvestment of cash, the pay-downof debts, etc. The
first year pro forma balance sheet shown here is used to calculatefinancialratios.]
 Fancy'sFoodsLLC
Financial
RatiosDecember31,1
999

ReturnonEquity = NetProfitbeforeTaxes = $21,550.00 = 10.88%

NetEquity $198,060.00

CurrentRatio = CurrentAssets = $148,626.00 = 2.73

CurrentLiabilities $54,408.00

Quick Ratio = Curr.Assets-Inventory = $68,584.00 = 1.26

CurrentLiabilities $54,408.00

DebttoEquity = TotalLiabilities = $75,116.00 = 0.38

NetEquity $198,060.00
ContingencyPlans

While careful planning was involved in setting the strategic goals for
WhippedDream, it may be that these goals are not met.The Beans have decided to set a
zone ofacceptability for meeting sales and financial objectives.For both sales and
financialobjectives,a10%negativedeviationfromexpectedsalesand projected
returnsonassetswill be accepted.However, if sales objectives and returns on investment
are less than90%of projections, certainactions will betaken.Theseactions include:

1. For unacceptable sales levels during the first year:Fancy’s Foods will
combatthis problem by doubling in-store promotions of Whipped Dream in
Antlers andHugo.The Beans will personally arrange and carry out these
promotions onweekendsatpeakshoppingtimes.Ifsales donotincreasewithin
onemonthofthe
in-storepromotions,Fancy’sFoodswilladvertise intheweeklyshoppingcircularsofthe
stores foronemonth.

2. For unacceptable sales levels in Oklahoma City and Tulsa:After 6 months

ofmarketing products in these two metropolitan areas, sales will be evaluated.If
notmeeting acceptable sales levels, Fancy’s Foods will consider contracting with
localmarketing specialists in Oklahoma City and Tulsa to carry out the in-store
promotionsand push the products to the stores.This contractual relationship will be
based uponsales commissions (to be determined by the specialists and Fancy’s
Foods), therebyprovidingincentiveforthespecialiststo generatesales ofWhipped
Dream.

3. Forunacceptablebusinessliquidity:Intheeventthatthebusinesslacksliquidity,Fancy’
s Foods will examine their accounts receivable procedures to ensure thatpayment
periods are just and that payments are being received in a timely manner.Also, cash
flow projections will be reviewed to determine if unforeseen
cashlayouts/expensesareunderminingthefinancialhealth of theenterprise.

4. For unacceptable returns on equity:If returns on assets and owners’ equity

fallbelow acceptable levels, Fancy’s Foods will first examine and compare the per-
unitcosts of production and marketing with sales prices.If the margins are too thin,
aprice increase for products sold in specialty/gourmet shops will be
considered.However,becauseestablishednon-
flavoredsubstitutesalreadyexistatlowerprices,the lost sales resulting from a price
increase may make this option unsuitable forproducts sold in general food
stores.Fancy’s Foods will therefore assessopportunities for minimizing production
costs and examine differentmarketing/distributionalternatives.
 APPENDIX

[This is where the appendix would start if there was one.Appropriate material
forappendixes include owner(s) resume, a processing flowchart, a management
hierarchydiagram (if the business has multiple employees, sales staff, etc.), letters of
intent
topurchasefrombuyers,advertisementmaterials,copiesoftrainingcompletioncertificates,etc.
]