Business Plan - Designer Sweets!

Presented by

Shandy Allison

Stella

Agenda Executive Summary

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Shandy Company Structure

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Shandy Mission Statement Shandy Product & Service - Allison Marketing Analysis - Stella

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Executive Summary  Bakery

retail establishment  Located in north New Jersey  Bakery products  Online desserts design  Meet Middle-to-Higher-Income local area residents

Company Structure Brick and clicks model Two Partners & Eight Employees Raise capital by savings & Loans Mission Statement We provide affordable, convenient and delicious treats for special occasions or just for that every day craving.

Products Goodies kept in the Bakery: o Cookies

o o o o

Cupcakes Items Available Small Round Cakes Online: Donuts o All items that are Pies kept in the bakery o Gift sets o Seasonal Desserts o Design Your Own Cake

Top Five Cake Flavors 1. Key Lime 2. Chocolate Raspberry 3. Red Velvet 4. Chocolate 5. Vanilla

Design Your Own Cake Pick from different themes that are online or upload your own picture, pick the flavor of the cake and icing, the color and add a saying for a cake that is truly YOURS!

o o o o o o o o

Different Themes to Choose From: Popular TV Characters Holiday Flowers Sports Hobbies Planes Trains Cars

Marketing------Market analysis

Target Market Segment Strategy (General) • Not restricted to any age group or income level. • Products will appeal to many different types of people. • Pricing structure: ensures value to our business, but also takes into account affordability to the customers (Keeping our prices as low as we can to maintain profitability)

Special strategies: Target Customers & strategies •Family with their own children-------- themed cakes e.g. photo cakes (for specialized cakes, ordered mainly on line) •Business people with fast paced life----- varieties of fresh brewed coffee (for other desserts e.g. Danish or donuts)

Marketing------Customer Relationship with customers: • Membership: VIP cards • Facebook group: Make friendship with customers (directly communication ) www.facebook.com/designersweets • FAQ: Frequency Asked Questions Part in our website (www. designersweets.com ) •

• E-mails: [email protected] • Hotline: 609-666-9999

Marketing -------SWOT analysis Strength: • High quality products • Customer-oriented services • Good customer relationships • Easy to manage or improve

Weakness: •Low reputation •Capital limitations •Products limitation •Delivery limitation

Marketing------SWOT analysis Opportunities: • Mature on-line food delivery industry • On-line security is improving • Americans love Sweets or desserts

Threats: •Health concerns: health problems that caused by bad eating habits & improper ways of living (diet and health foods than desserts) •No pricing advantages compared with

Marketing Promotion: • On-line promotion: Google/Facebook/Delivery.com • Advertises on local newspapers • Pamphlets(in register areas and colleges) • Free sample delivering (in the first month & holidays & festivals)

Competitors analysis: •Main competitors: Dunkin Donuts and any other large bakery chain •Other competitors: Other on-line cakes and deserts stores •Cakes Across America http://www.cakesacrossamerica.com •David’s cookies

IT Costs – Initial and Recurring One-Time Only Initial Costs • Desktop PC’s x 2 - $1,000 •Dell PowerEdge T105 Customized Server - $1,800 •HP Officejet Pro All-In-One Printer x 2 - $229/each •MagTek Swipe Card Reader x 2 - $50/each •Misc Items (Router/Switch, Cabling, HW) - $1,000

Recurring Costs – Annually and Monthly • SSL Certificate - $500/Year •DNS Registration - $120/Year •Optimum Voice - $29.95/Month •Optimum Online Business Class Internet $54.90/Month •Autorize.net Credit Card Processing service -

IT Configuration Redhat Server: We will utilize one piece of server hardware to perform multiple hosting functions. Our one Dell server will provide the following services for us : •Web Server – Powered by the popular Apache Web Server Software •Mail Server – configured to work with Sendmail / pop3d Linux configuration •DB Server – SQL Database tied directly into our php designed website. •Server Specs – AMD Quad Core Opteron 2.1ghz cpu, 16 GB DDR2 Ram •RedHat Enterprise DNS Registration Server Operating System •DNSSATA/SAS hosting is provided to us by Network Solutions, inc. •Add in SAS6iR Controller – Raid 1 – prevents disk error Provides 10 Email boxes and failures. of data transfer •2 – 250 gb 250gb Sata Hard Drives •Symantec ISP Endpoint Protection 11.0 ( Antivirus) Service •Provides 5 Static IP Addresses •30 mbps down, 5 mbps upload •Optimum Voice Package for telephone •Optimum will provide Business class Internet for our company •Provides unlimited calling in the US/Canada/ Puerto Rico for one low cost.

IT Configuration Desktop PC’s

-2 desktop computers will be utilized for order entry and processing -Telephone Orders -POS Orders -Attached via USB to these computers will be a MagTek swipe card reader device. -Allows for secure processing of any major credit card -over the internet, using our credit card processing -Vendor – Authorize.net. SQL Database •All orders will be stored in our SQL database -Provides us with a fully trackable history of orders placed. -Allows for trend analysis and reporting to show trends in the business. Automated Mail System • Automated confirmation email for orders processed online •Confirmation Email for all phone orders •Monthly Newsletters sent with specials, new products, general Business announcements, etc. -Email provided on website for letter, requested during order process, given

IT Security Firewall •Redhat provided software will be utilized to ensure all unused ports are closed and unauthorized users are kept out. Secure Transactions •Our website will utilize an SSL certificate for all transactions. •All personal and financial information will be sent over the internet using the Comodo Extended Verification SSL Certificate (128 bit Encryption). -Provides the “good to go” Green IE browser bar to indicate that a secure session is in use -Recognized by all popular browsers. -Free EV Trust Logo provided for use on the website to ensure customers know that their purchases are secure. -Fully validated -Free phone support for our business. -Free Hacker Guardian vulnerability scan -$250,000 Warranty coverage.

IT Costs – Initial and Authorize.net Recurring

• Secure gateway service for online credit card processing.

-Provides secure transmission of all financial transactions using SSL. -Accepts all major credit cards. -Accept E-Checks for online customers. -Simple “One-Click” checkout option. -Verified Merchant Seal. -Advanced fraud protection suite included. -Secure processing of all POS credit card transactions via Cookies MagTek card•Cookies readers. will be used to record customer’s visiting sessions and location. No personal information will be stored in the cookies we use. Cookies may be used to create a custom landing page for you next time the website is visited, offering recommendations and specials based off of previous visits and browsing behaviors.

Human Resource Plan  Two managers Two Bakers  Four Assistance bakers  One part-time on line order checker  Another park-time delivery stuff  Total 10 people 

Financial Plan 

$200,000 start-up capitals $120,000 funding by two partners $ 80,000 Loan from SBA

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$95,058.35 capital expenditures for the first year

Capital Budget Permanent capital expenditure: Decoration fees Bakery Equipments

　 $12,000 75,000

Delivery truck

2,000

One Server Running Redhat Linux

1,700

Desktop computers Marketing expenditure Mag-Tek Swipe Card Reader Yearly capital expenditure

500 2,000 50.8 　

SSL fees

499.95

DNS fees

50

ISP charges

658.8

Telecommunicating fees

359.4

Authorize net charges

239.4

Total capital expenditure for the first year

$95,058.35

DISGNER SWEETS COMPANY Pro Forma Estimation of Profit  

2010

Sales Less: Cost of good sold

Gross Margin Expenses Depreciation expenses

2011

2012

$521,000

$601,755

$695,027

78,000

89,700

103,155

443,000

512,055

591,872

 

 

 

9,375

9,375

9,375

12,000

12,000

12,000

378,061

396,962

416,809

1,800

2,079

2,401.25

50

50

50

ISP expenses

54.9

54.9

54.9

SSL expenses

499.95

499.95

499.95

359.4

359.4

359.4

239.4

239.4

239.4

500

150

150

402,939.65

421,769.65

441,938.90

40,060.35

90,285.35

149,933.13

Less: Income tax (6.5%)

2,603.92

5,868.55

9,745.65

Net Income after Tax

$37,456

$84,417

$140,187

Rent expenses Payroll Utilities expenses DNS expenses

Tele-Communciating expenses Authorized net expenses Sales & Marketing expenses Total Operating Expense Net operating income

Projected Profit & Financial Ratio

•Expected Average Sales Growth = 15.5% •Expected Average Profit margin on sales = 13.8% •Target ROA to achieve = 10%

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