The undersigned reader acknowledges and accepts that the information and details provided by Custom Baked Goods in this business plan is confidential; therefore, reader agrees not to disclose any information contain here-in without the express written permission of Daniel Lukasavitz or Anna Burns. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to Custom Baked Goods. Upon request, this document is to be immediately returned to: Custom Baked Goods 1223 24th Ave. Greeley, CO 80634 (970) 673-7255
____________________________________________ Signature ____________________________________________ Name (typed or printed)
This is a business plan. It does not imply an offering of securities.
Custom Baked Goods
The Tale of A Mobile Bakery
Daniel Lukasavitz Anna Burns BUS 115-702
We use all fresh and local premium ingredients. and pay property tax. There is a pinch of love in every product. This business plan will show how our company plans to carry-out the implementation of a mobile kitchen food truck. fairs. By having a mobile commercial kitchen truck our bakery will be able to avoid the cost of leasing/purchasing and maintaining a physical facility. We are custom from start to finish. successful company that is a leader in customer service. Your satisfaction is 100% guaranteed!
Company Goals and Objectives:
Our first goal is to have a healthy.
Our mission is to provide our clients with the best baked goods custom made to their personal specifications.Executive Summary
Custom Baked good will bring a unique option to Weld County by offering our delicious baked goods and premium coffee products to the public in multiple locations through a mobile bakery truck. By doing this we will use innovative and fresh ideas that break the mold of traditional companies within the market. We would be able to travel to area festivals. By having a mobile kitchen Custom Baked Goods can go to the public instead of having the public come to them. community events. and various catering events. No other local baking company has attempted to obtain a mobile commercial kitchen which is at their disposal around the clock. and that has a loyal community following. A mobile Custom Baked Goods will also create a niche in Greeley that no other company has achieved yet. superior products. as well as save on energy costs.
. Our second goal is to build and expand to keep up with our market and stay ahead of our competitors.
and of course making money. Every Custom Baked Goods product is made from scratch with fresh. but through online and print advertising. as well as intense community involvement. The daily location of the bakery truck will be posted on our Twitter and Facebook accounts. Our bakery prides itself on our drive to attend community events and fundraisers. When we commit to a project we give 200% into the project from start to finish. Customers will learn about Custom Baked goods not only through word of mouth. When customers would like to place a special order they are welcome to either call or place the order through our internet outlets. and we offer delivery to your location. By providing customer service beyond that of our competitors we can build a customer base that will not only expects our superb customer service but will look forward to being served in that manner again. ensuring we get every detail right. and high quality ingredients. We will listen to the customer and offer our expert advice to make the customers vision a reality. such as our decorate-your-own cupcake both at the
. as well as our website. we can not only open a new customer-base with every project we undertake but learn new and valuable skills that will in turn improve our overall customer satisfaction. There will be a large focus on connecting with customers online. The importance of excellent customer service and building desirable products is important to us in any business. We offer consulting with the customer with every order. When the customer goes to competitors they will be disappointed that their needs were not met as well as when they patronize our bakery. local.Company Overview
Custom Baked Goods prides itself in offering “homemade” baked items made to customers strict guidelines. Since our company has the ability to offer customers an endless variety of items.
558 Month 7 $1.058 Month 10 $1.300 $375 $483 $500 $100 6 $4.300 $1. and other essential logistics. Management/ Employee Structure Plan:
Personnel Plan Month 1 $1. we are planning on future hiring’s to go as follows.300 $1.300 $1. Lastly we would have an on-call cake delivery specialist."Zumbathon" Relay for Life fundraiser.300 $1.300 $1.558 Month 3 $1.558 Month 2 $1.300 $375 $483 $500 $100 6 $4.300 $375 $483 $0 $100 5 $3. After about six months of operation we would bring on a marketing guru to help us reach a larger group of customers and help to book community events.300 $375 $483 $0 $100 6 $3. This person would help to organizing deliveries.300 $1.558 Month 6 $1. The accountant would help to keep the books straight and keep us on track to achieve maximum profits.058 Month 9 $1. Daniel Lukasavitz and Anna Burns.300 $375 $483 $0 $100 5 $3. The first twelve months would be very
.300 $375 $483 $0 $100 5 $3. Since we currently do not have funding to pay any employees. After we obtain starting capital and acquire a food truck we would start to hire additional employees.300 $375 $483 $500 $100 6 $4.300 $1.058 Month 12 $1.300 $375 $483 $500 $100 6 $4.300 $375 $483 $0 $100 5 $3. table designs.300 $1.558 Month 5 $1.300 $1.558 Month 4 $1. These two positions would be critical to help us competently run a successful business.300 $1. The addition of an assistant baker would help to relieve Anna and Dan to help grow the company further and allow us to do administration work instead of production.058 Month 8 $1. Below is our organizational chart and expected monthly salaries.300 $375 $483 $500 $100 6 $4.300 $375 $483 $500 $100 6 $4.300 $1. Custom Baked Goods will also become a staple at family friendly events such as Friday Fest and Greeley's annual 4th of July Stampede celebration. The two of us run every aspect of the company with a little help from our hired assistants. We would start with an assistant baker and an accountant.300 $375 $483 $0 $100 5 $3.300 $1.058 Month 11 $1.058
Daniel Lukasavitz Anna Burns Baking Assistants Accountant Marketing Guru Delivery Specialist Total People Total Payroll
0% 0% 0% 0% 0% 0%
Our company currently consists of two proprietors.
We hope to become popular enough to be able to increase all pay rates by 20% for all employees
Core Product Offerings
.tight as far as monthly salaries.
and Community Bulletin Boards. using the outside of the truck as a billboard gives an incredibly inexpensive. We also plan on getting into a lot of the area events which involve print advertisement. nuts. That equals out to be $12.304 a year for “Bakery and Cereal product” sales. If we look at the “Snacks and Other Food at Home Products” category. prepared dessert. pickles. the chart defines as “Snacks and Other Food at Home includes candy. fat. jelly.pdf). salt. chewing gum.info). baby food. sauces. nondairy cream and milk. miscellaneous prepared food. gravy. margarine. artificial sweeteners. peanut butter. Twitter. with annual product sales that reach $31. Greeley Arts Picnic. relishes.55. we can effectively reach thousands of people.Market Research
While doing a market analysis I found that Greeley’s average family spends $572. and nonalcoholic beverages (http://greeleygov. but to even get a 10% market share would equal to about $300.com/CMO/Documents/Economic%20Development/greeleyretailgoodsandservi cesreport. I do realize that the majority of this business is focused in big box stores and franchised businesses. spices. jam. and also incredibly functional advertising medium.660. prepared salad.238! A 10% market share would be $759. olives.035.72 of annual business! With low over head and smart managing this could be the way to make some money.506. salad dressing.000 annual business. such as Taste of Loveland. oil. potato chips. seasonings.” This categories annual average families spending is $1. starting the day we receive starting capital. other condiments.845.
. frozen prepared food. preserves. sugar.
Custom Baked Goods plans a massive marketing plan. Using our existing Facebook page. Also. Oktoberfest and the various seasonal parades and festivals.businessdecision. soup.70 yearly on “Bakery and Cereal products” (www.
Key Demographic Existing custom order customers for cakes. Increasing our customer base through word of mouth.
. Organic Ingredients Bring the Goods to YOU!
Importance of Internet and Social Media Lets our customers know the truck location throughout the day. Office employees Families
Key Marketing Messages Quality. and deserts. cupcakes. Custom Baked Goods Local. Guest feedback and location requests.
These include Batter Up Cakes. Because Custom Baked Goods is a small company. if not for free. delivery of pastries. This is a win-win for both Custom Baked Goods and the local restaurants because they won’t have to pay to dispose of their waste oil and we can get fuel for our trucks for very cheap. Having our bakery located in a mobile kitchen is our key advantage.
Our company will have many advantages over our competitors. well-known Mom & Pop shops. Eileen's Colossal Cookies. The bakery intends to do a significant amount of sales via catering. Custom Baked Goods will also have to contend with big box grocery stores such as Safeway. and King Soopers. The company can be readily moved to areas where substantial sales can be made. and by having the truck positioned near popular events (such as concerts and sporting events) during the weekends. We can use recycled oil from local restaurants to fuel our truck. Approximately 1/3 of all food and beverage sale revenues will come from this aspect of Custom Baked Goods operations. Red's Dogs and Doughnuts. we can easily adapt to changing market conditions by modifying our offerings as well as changing locations. By utilizing bio-diesel in our food truck we can avoid the every looming gas-hike. something most of our competitors are lacking.Competition
Much of the competition located in Greeley is from local.
. Wal-Mart. and Nielsen Family Bakeries. The use of the mobile food truck also allows us to maintain low over-head costs resulting in a better profit margin.
Custom Baked Goods uses an existing “Facebook” page into order to connect and market to followers. Without these resources Custom Baked Goods cannot grow into the niche market of food trucks. We will have to obtain enough capital to sustain the company for at least the 6 months to a year of starting up.000
. The food truck will need to contain a 3 compartment sink. knowledge. 2 Cost $10. and a giant marketing campaign. a freezer and refrigerator. During the summer months Greeley’s population shrinks when schools is not in session.The main barrier that Custom Baked Goods will encounter would be contending with living in a college community. decorating supplies. Custom Baked Goods also already owns a lot of the necessary baking pans. obtaining enough capital to start the venture is our biggest risk. The resources we are lacking are: start-up capital. The company also currently has a point-of-sale system along with the ability to accept credit cards and gift cards. Food Processor.000 $6. Another risk would be that Custom Baked Good’s is still a fresh company and obtaining brand recognition will be hard. pictures. Mixer.000 $5. and specials with our customer base. This resource is key to the operation of the business because it allows for a free approach of sharing product details.
This venture already has about 51% of the needed resources to make this business succeed. Lastly. and a stove top. a functional food truck. and a growing customer base. but feasible. 2 ovens. These resources include: personal experience and talent. and tools needed to produce a majority of our products.
Equipment Food Truck Eco-Friendly Retrofit Dishwasher.
Since the main purpose of the kitchen in to serve as Custom Baked Goods commercial kitchen. range Exterior Truck Accoutrement Total $21. but do need to be aware of local laws for Mobile Food Operations. refrigerator.ovens. Once everything is finished and approved we will immediately begin working.500 $500
Custom Baked Goods will need to meet all health regulations for food service.
. freezer. In that time we will start to acquire all start up supplies and inventory. we can begin making all of our packaged goods to sell to local coffee shops on consignment. We will also be finalizing permits and setting up appointments for county and city inspections. Special Events permits will need to be obtained in certain locations. The customization of the food truck will most likely last 3-5 weeks. Because of our Food Truck status we do not have to be concerned with standing zoning permits. We will also be continuing to do our regular cake/cupcake business. Commercial insurance will be obtained as required by the county. Once we have the funding we will immediately put in a request for a custom made food truck.
The timeline for how we will proceed will start with securing start-up capital.
the company can grow into a traditional store front. Custom Baked Goods may seek to sell the business to a third party for a significant earnings multiple.
End Game Strategy
If the business is very successful. In years 5-10. After the first year the business would plan on hiring staff to cover more shifts so that the owners can work on marketing and finding new locations or even including another “bakery” truck. Capital is also being raised through current sales of in home baked items. Most likely. Capital to purchase insurance.000 from a bank loan. That means that if the truck operates for 28 days out of the month that we will only need to sell $43 of product a day to achieve this goal.200 will allow the company to make all of it payments and purchase goods. permits and licenses. the company will have multiple locations throughout the state serving our ever-growing customer-base. The interest rate and loan agreement are to be further discussed during negotiation. By utilizing the low overhead of running a “bakery” truck we can only see the profits growing rapidly. Financing for the first six months of operation. the Company will hire a qualified
. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.In the next five years Custom Baked Goods has the potential to grow exponentially. Once the truck is up and running we can predict that the company will generate a profit with-in 2 years. By starting out small with a food truck operation. Financial Projections: Custom Baked Good’s is seeking to raise $50. We believe that an estimated monthly income of $1. The company will be in the red to start but within the first year Custom Baked Goods will be in the black. The financing will be used for the following: Development of the Custom Baked Goods Food Truck.
000 $2.499 $0 $60.381 $100.696 $2.835 $2.business broker to sell the business on behalf of the Food Truck.400 $2.455 $0 $18.751 $60.500 $0 $0 $6.838 $118.455 $118.232 $0 $47.66%
Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Misc Truck Expenses Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales $45.058 $0 $88.000 $8.400 $2. If the venture has not gone according to play and we do end up having to close the doors (or in this case.905 $68.499 $252.260 $163.00 $0 $0 $6.572 $130.992 $118.293 80.232 $194.96% $54.000 $7.252 80.420 41.67% Year 2 $241.400 $2.
Table: Profit and Loss
Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % $166.103 $0 $75.455 $0 $33. the business could fetch a sales premium of up to 4 times earnings.43% $65.123 $68.802 $3.44% Year 3 $312.396 39.074 41.509 $0 $65.000 $9.123 $134.123 $0 $1.525 $47.70%
.727 $66. turn of the engine) Custom Baked Goods will sell of any property it can and claim Chapter 11.150 $32.000 $2. Based on historical numbers.000 $2.028 80.123 $0 $32.300 $0 $0 $6.
Chart: Profit Monthly
Chart: Profit Yearly
Chart: Gross Margin Monthly
150 $241.751 $312.150 Year 1 $0 $0 $0 $0 $0 $0 $0 $241.751 Year 3 $166.921 $200.063 $104.Chart: Gross Margin Yearly
Table: Cash Flow
Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax. VAT.181 $54.019 $146.515 $232.902 $0 $0 $0 $0 $0 $0 $0 $166.525 Year 2 $0 $0 $0 $0 $0 $0 $0 $312.525 $312.118 $154.150 $166.751 Year 2 Year 3
. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations $50.525 $241.387 $172.940 $60.
021 Year 2 $0 $0 $0 $158.554 $0 $0 $0 $0 $0 $0 $0 $232.834 $0 $34.802 Year 1 $0 $0 $0 $78.467 $0 $78.849 $151. VAT.902 $79.554 $6.940 $40.619 Year 2 Year 3
.216 $0 $158.403
Table: Balance Sheet
Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities $0 $0 $0 $34.403 $7. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $0 $0 $0 $0 $154.619 Year 3 $30.585 $71.021 $151.802 $71.181 $11.969 $3.969 $30.969 $0 $0 $0 $0 $0 $0 $0 $200.Additional Cash Spent Sales Tax.
619 $144.000) $4.365 $300.335 $144.029 $34.029 $23.029
$12.918 $78.802 $23.918
$14.774 $0 $11.103 $0 $0 $12.253
.971) $42.253 $158.Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth
$11.103 $0 $12.000 ($276.890 $65.774 $300.082) $78.021 $65.774 $0 $0 $11.000 ($234.000 ($281.365 $0 $0 $14.103 $300.365 $0 $14.
200 Month 10 $1.400 $30 $45 $270 $2.745 $12.300 Month 1 $2.100 Month 9 $2.000 $100 $300 $900 $13.400 $75 $105 $135 $2.700 Month 11 $2.625 $16.000 $500 $500 $900 $17.300 Month 2 $2.000 $50 $200 $900 $9.300 Month 5 $2.745 $12.300 Month 3 $2.655 $16.800 $14.000 $100 $200 $900 $9.800 $14.800 $19.780 $12.600 $15 $30 $135 $1.300 Month 4 $2.595 $12.200 $75 $75 $135 $3.400 $30 $45 $270 $2.Table: Sales Forecast
Sales Forecast Month 1 Sales Dessert Sales POP Sales Carry Out Weekly Lessons Total Sales Direct Cost of Sales Dessert Sales POP Sales Carry Out Weekly Lessons Subtotal Direct Cost of Sales 0% 0% 0% 0% $12.000 $500 $700 $900 $14.100 Month 7 $3.715 $8.745 $12.400 $45 $75 $135 $2.485 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
.000 $1.400 $15 $45 $135 $2.400 $15 $75 $135 $2.150 Month 8 $1.000 $100 $500 $900 $13.900 Month 12 $3.200 $45 $150 $270 $3.773 $12.000 $200 $300 $1.400 $15 $45 $135 $2.500 Month 6 $2.000 $100 $300 $900 $13.800 $14.400 $30 $45 $270 $2.000 $200 $300 $1.000 $300 $1.000 $300 $500 $900 $13.000 $200 $300 $1.595 $12.600 $8 $30 $135 $1.665 $8.