Business Plan Example by Jhanghiz Syahrivar

1 BUSINESS PLAN (EXAMPLE) – KARTOFFEL DONUTZ| JHANGHIZ SYAHRIVAR

BUSINESS PLAN (EXAMPLE)

Proposed by:Jhanghiz Syahrivar

TABLE OF CONTENTS

EXECUTIVE SUMMARY...........................................................................................................................3

Company Brief History 4

Objectives and Missions 6

Keys to Success 6

COMPANY SUMMARY...........................................................................................................................7

Company Ownership 7

Start-Up Summary 7

Company Locations and Facilities 8

Layout and Design 9

Labeling 9

PRODUCTS, MENUS, PACKAGING AND PROCEDURES.........................................................................10

Competitive Comparison 10

Sales Literature 10

Technology 10

MARKET ANALYSIS SUMMARY.............................................................................................................12

Target Market Segment Strategy 12

Business Analysis 12

Food and Beverages Industry Overview: 2007............................................................................13

Main Competitors........................................................................................................................13

STRATEGY SUMMARY..........................................................................................................................15

Positioning Statement 16

Setting the Right Price 16

Marketing Tactics and Programs 16

MANAGEMENT SUMMARY..................................................................................................................18

Organizational Structure 20

Management Team 21

Management Team Gaps 21

Personnel Plan 21

FINANCIAL PLAN..................................................................................................................................22

Important Assumptions 22

Key Financial Indicators 22

Break-Even Analysis 22

Projected Profit And Loss Error! Bookmark not defined.

Projected Balance Sheet Account Error! Bookmark not defined.

Projected Cash Flow 25


EXECUTIVE SUMMARY

Kartoffel Donutz Shop – is proud to offer our Donuts made from highly selected potatoes! We prepare a large variety of unique donut specialties, made from the freshest ingredients, and we offer them all at prices to suit your budget. If you've got a special craving for something not listed, no problem—just ask us and will fix your special order for you. Whatever you're looking for, you can be sure that we'll do everything possible to send you off fully satisfied.

Apart from our finest Donuts, we also offer a unique blend of the world's finest Indonesia beans, roasted to perfection. If you like the other donut shop coffee, you'll love ours. “Kartoffel Donutz” Shop made unique fresh specialty donuts and coffees fresh every day, also we offer a catalogue of specialty donuts for all occasions. We never use any chemical enhancers or preservatives and you will taste the difference that high quality freshest ingredients make when used with our award winning recipes.

This plan is prepared to obtain financing for the initial launch of this concept. The financing is required to begin work on site selection, bakery equipment purchases and etc… A drive-through business will be built on commercial property on Delta Orchard Road, Singapore. Other products which will be incorporated into the business including beverages, soft drinks and coffee.


Company Brief History

Potato doughnuts were introduced in the mid-1900s, and a recipe was published in

1938, in the Glenna Snow Cook Book.

The potato doughnut is a doughnut, typically sweet, made with either mashed

potatoes or potato starch instead of flour, the most common ingredient used for doughnut

dough. Potato doughnuts tend to be lighter than flour doughnuts, and are prepared in a similar

method to other doughnuts.

Potato doughnuts are prepared by mixing instant mix or already prepared mashed

potatoes in a bowl with eggs and other ingredients, ranging from baking powder to a small

amount of flour. The dough is then shaped and refrigerated before being cooked. Much like

flour doughnuts, potato doughnuts are often accompanied with coffee.

Kartoffel Donutz is the name of a multinational chain of doughnut stores that was

founded by Jane Doe Kartoffel in 2007 at Jakarta, Indonesia. She is Indonesia-Germany

descent. The parent company of Kartoffel Donutz is Kartoffel Donutz Indonesia, Inc. and is

based in Jakarta Barat, Indonesia.

Jane using potato rather than flour, despite potato is lighter than flour, also Potatoes are

filling, moderate in calories, and non-fattening, and are an excellent way to ensure your

continued success in eating healthy. Potatoes are nutrient-dense, meaning you receive many

nutrients for the amount of calories they have. The fiber is half soluble, half insoluble, so it

helps to keep you regular and helps to lower cholesterol. And slowing down digestion helps to

keep you full longer. Did you know potatoes are full of vitamin C? However, since we do not

eat potatoes raw, most of the vitamin C is lost due to the heat of cooking. In addition, one

baked potato offers about 20 percent of the daily recommended amount of vitamin B6, which is

good news for your heart. They are also very high in potassium, beating other potassium-rich

foods. They are a good source of iron and copper, too. In fact, a potato a day is good for

your heart, promoting normal blood-pressure levels.


http://health.howstuffworks.com/heart.htm

http://healthguide.howstuffworks.com/copper-in-diet-dictionary.htm

http://healthguide.howstuffworks.com/iron-in-diet-dictionary.htm

http://healthguide.howstuffworks.com/potassium-in-diet-dictionary.htm

http://health.howstuffworks.com/vitamin-b6.htm

http://health.howstuffworks.com/vitamin-c.htm

http://health.howstuffworks.com/cholesterol.htm

http://health.howstuffworks.com/food8.htm

http://health.howstuffworks.com/calorie.htm

http://en.wikipedia.org/wiki/Flour

http://en.wikipedia.org/wiki/Potato_starch

http://en.wikipedia.org/wiki/Mashed_potato

http://en.wikipedia.org/wiki/Mashed_potato

http://en.wikipedia.org/wiki/Doughnut

Nutritional Values for White Potato, Fresh, Baked (with Skin)

Serving Size: 1 large baking potato (3-4")

Calories 278

Fat <1 g

Saturated Fat <1 g

Cholesterol 0 mg

Carbohydrate 63 g

Protein 6 g

Dietary Fiber 6 g

Sodium 21 mg

Vitamin C 37 mg

Thiamin <1 mg

Niacin 5 mg

Vitamin B6 1 mg

Copper <1 mg

Iron 2 mg

Magnesium 81 mg

Manganese <1 mg

Phosphorus 224 mg

Potassium 1,627 mg

While selling assorted types of doughnuts, Kartoffel Donutz’s signature item is

a glazed doughnut that is traditionally served warm. Along with their own Kartoffel Donutz

brand store locations their products are sold in supermarkets, grocery stores, convenience

stores, gas stations stores in Jakarta.

Besides donut, Kartoffel Donutz also provides coffee. We are also offer a unique blend

of the world's finest Indonesia beans, roasted to perfection. Kartoffel Donutz is sales the

freshest and tastiest donuts and coffee, staying open 12 hours per day.

Our Vision is to be the number one recognized brand in the industry to serve the most

delicious and healthy donuts to our growing numbers of health-conscious donuts lovers in the

world.

Our Mission is to accommodate each customer in a special way through high quality

donuts, service excellence, and friendly atmosphere.


http://en.wikipedia.org/wiki/Convenience_stores

http://en.wikipedia.org/wiki/Convenience_stores

http://en.wikipedia.org/wiki/Glaze_(cooking_technique)

http://healthguide.howstuffworks.com/potassium-in-diet-dictionary.htm

http://healthguide.howstuffworks.com/phosphorus-in-diet-dictionary.htm

http://healthguide.howstuffworks.com/magnesium-in-diet-dictionary.htm

http://healthguide.howstuffworks.com/iron-in-diet-dictionary.htm

http://healthguide.howstuffworks.com/copper-in-diet-dictionary.htm

http://health.howstuffworks.com/vitamin-b6.htm

http://health.howstuffworks.com/vitamin-b-3.htm

http://health.howstuffworks.com/vitamin-b-1.htm

http://health.howstuffworks.com/vitamin-c.htm

http://healthguide.howstuffworks.com/sodium-in-diet-dictionary.htm

http://healthguide.howstuffworks.com/fiber-dictionary.htm

http://health.howstuffworks.com/food3.htm

http://health.howstuffworks.com/carbohydrate-basics-ga.htm

http://health.howstuffworks.com/cholesterol.htm

http://health.howstuffworks.com/fat.htm

http://health.howstuffworks.com/calorie.htm

Objectives and Missions

Kartoffel Donutz Shop owners' and employees' mission is to ensure all customers want to come back again.

Our business wants to accommodate each customer in a special way. Selling the freshest and tastiest donuts and coffee, staying open 12 hours per day, providing a fun and clean atmosphere, and catering to many different local organizations will ensure that Kartoffel Donutz Shop will succeed in being the best donuts store in the area. In other words, we want to guarantee 100% carefree satisfaction.

Kartoffel Donutz Shop will provide the highest-quality donuts and coffee, and insure a timely delivery service. We want every customer to be 100% satisfied with their experience at our store.

Employee welfare will be equally important to our success. All will be treated fairly with the utmost respect. We want our employees to feel a part of the success of Kartoffel Donutz Shop. Retail customers will be in the low- to mid-income bracket, and will range in age from children to adults.

Keys to Success

The keys to the success of Doughnut Cookie Shop are:

The creation of a unique, innovative atmosphere that will differentiate us from the competitors; highest quality donuts made from Indonesian finest potatoes low prices in a clean, fun environment. We must deliver on this pledge 100% of the time, without exception. Controlling costs at all times, in all areas. Hiring the best people available, training, motivating and encouraging them, and thereby retaining the friendliest, most efficient staff possible. Business has the potential for expansion into other County communities


COMPANY SUMMARY

Kartoffel Donutz Shop Company summary: Fresh and Healthy Donuts every day. The best coffee from Indonesia

Friendly staffs

Internet/Wi-Fi access

Company Ownership

Kartoffel Donutz Shop Company Ownership

Kartoffel Donutz Shop is a sole proprietor business.

Start-Up Summary

Kartoffel Donutz Shop Start-up costs will be approximately SGD 840,496,95 which will include facility construction including sidewalks, parking, inventory, mandatory city permits, and other expenses associated with opening this business. The start-up costs will be financed through a loan. Appendix A provides more detailed information regarding permit requirements, equipment, construction costs, and land improvements required to open this new business. Kartoffel Donutz Shop start-up Inventory cover a wide range of assets as shown in the following chart.

Bakery equipment Doughnut machine

Refrigeration equipment

Coffee machine

Restaurant equipment


Company Locations and Facilities

The point is that you have to locate your store in the right place to hope to succeed. Our case is about a Kartoffel Donutz Shop. Each store needs bakery and retail space of 440 square feet and space for 100 guests.

The store has to have room for a bakery, as well as counters, tables and etc. The store also needs parking spaces for customers who visit the store each day, minimum of 40 parking spaces A key to the success of the store is the population base (number people in the area). Kartoffel Donutz Shop wants 15,000 households with a short drive of each store, a number that equates


to about 45,000 people (there are more then one person per household). Convenience is the key to the location. People will not drive out of their way to grab a coffee and donuts.

Our planned site has to be located in the suburbs and is usually based in regional malls with easy access to major highways. We choose Orchard Road as our main store location!

Layout and Design

Our bakery's character and the sight and aroma of freshly baked goods can entice people to buy, especially on impulse:

Present the entire assortment of goods in an area that is as large as possible. Select furnishings to properly display products under excellent lighting.

Design an efficient and inviting counter area.

Consult equipment manufacturers for their guidance and layout suggestions.

Display the history and benefits of Kartoffel Donutz on every wall in the store to place our donuts shop in the top of their mind.

Labeling

The label is one of the most important considerations when developing a food product. It is how consumers identify your brand from the rest on the shelf. When designing a label we consider the following:

Function - a primary label will have the required regulatory information and ingredients listed. It could also include other design elements used for marketing the product.

A secondary label will include information that is not essential or required by law.

Promotional and security labels can also be applied to the product.

Application - removability, application surface, application temperature, storage and display of product, shape of surface to be labeled, exposure to moisture, application method, time of application and recyclables.

Label construction - glue, inserts, pressure sensitive, or expanded content


PRODUCTS, MENUS, PACKAGING AND PROCEDURES

The number of items in a bakery depends on the trading area and specialization. Small bakeries usually only break-even on bread, even though it may make up the largest percentage of sales. As a result, the profit has to come from specialties.

Monitor the use of all baking supplies and ingredients. Record incidents of spillage, spoilage and leakage during production. The largest ingredient is usually flour. Obtain the lowest possible purchase price for an acceptable grade.

Train staff to make products according to strict weight specifications: overweight products result in losses. Calculate how much to charge per 25 grams.

Train staff to conserve packaging and to open one unit at a time as needed. Calculate the costs of each prepackage unit and the packaging itself.

Permit staff to taste product as a training aid but do not allow constant nibbling.

Test order taking. Each month ask someone unknown to staff to place an order.

Remove all products from shelves after expiry dates. Monitor stock rotation.

Count your customers each hour to establish traffic patterns. Schedule staff accordingly and make sure they are on time.

Give each cashier a separate cash drawer and constant cash float. Count the cash the end of each shift.

Establish procedures for managing all areas of the business. This includes recording monthly inventory and filling out purchase orders/receiving records.

Competitive Comparison

Kartoffel Donutz Shop will have customer appeal due to our casual atmosphere, wide variety of high quality and healthy donuts, and affordable prices. Apart from that, we strongly emphasize our business on these 5 areas:

High quality and healthy donuts Outstanding customer service

Competitive pricing

Cozy atmosphere

Convenient shop location

Sales Literature

Sales literature to be distributed to the general community will include fliers, advertisement in the local newspaper and other print media.


Technology

Kartoffel Donutz Shop will invest in a single high-speed computer to provide a fast and efficient connection to the Internet and also be a link to our cash registers. We will then be able to poll each Donuts Shop nightly to our Corporate Support Center and be able to daily digest key financial information. We will also order online, email, and have a Web page.

Kartoffel Donutz Shop plans for slow and cautious growth during its initial start-up phase. We foresee no more than three units within the first three years of operation. Thereafter, we will never develop more units than we have adequate manpower to operate. A second principle in our growth will be to cluster our development.

Our first three units will be within a short distance of each other (a three-hour drive). Afterwards, we will work with neighboring geographical areas for development. Thirdly, we will develop one ground-up unit and one conversion with the first three Donuts Shops. This will then allow us to test which model will work best for future, long-term development.

KARTOFFEL DONUTZ - SINGAPORE Financial Ratio Analysis End of year 2011 up to 2014 Ratios 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Fixed Assets Turnover ( X ) FATO 0,60 1,13 0,93 2,83 2,03 1,16 0,76 0,63 0,53 0,45

Total Assets Turnover ( X ) TATO 0,45 0,97 0,88 0,79 0,62 0,56 0,48 0,49 0,45 0,40

Profit Margin ( % ) PM 1,25% 17,35% 27,28% 42,97% 55,61% 29,94% 25,06% 35,57% 51,83% 55,73%

Return on Investment (ROI) ( % ) ROI 0,56% 16,80% 24,12% 34,14% 34,64% 16,90% 12,12% 17,57% 23,31% 22,55%

Return on Equity (ROE) ( % ) ROE 0,56% 16,80% 24,12% 34,14% 34,64% 16,90% 12,12% 17,57% 23,31% 22,55%


MARKET ANALYSIS SUMMARY

Kartoffel Donutz Shop will invest in a single high-speed computer to provide a fast and efficient connection to the Internet and also be a link to our cash registers. We will then be able to poll each Donuts Shop nightly to our Corporate Support Center and be able to daily digest key financial information. We will also order online, email, and have a Web page.

The consistent popularity of bakery shops, combined with a value price point, has proven to be a winning concept in other markets and will produce the same results nationally.

By our definition, we will have very broad appeal for our concept. It is our goal to be the Donuts Shop of choice for the local audience.

Target Market Segment Strategy

Kartoffel Donutz Shop will target the low- to mid-income consumers who want to have a high quality and healthy dessert for moderate prices. Kartoffel Donutz Shop meets the quality required by these customers. Lastly, this group will see a large growth in their numbers over the next decade. If we can continue to meet and exceed their expectations, we should witness same store sales growth over this time period. We have to stay focused on their changing needs and pastry choices to maintain their loyalty.

Despite the growing concern on the part of nutritionists and physicians about our overweight population, the donuts business remains a rapidly growing one. Why the donuts business is robust is open to debate. Among the possibilities -- the price is right. Donuts are not expensive. And they're easy to eat on the run and not too messy. (Some people have been seen devouring them while behind the wheel -- not exactly a safe driving mode.) They're also readily available


to whether you're in Jakarta, Singapore or the neighborhood mall. And the shops that sell them offer other items with everyday appeal -- coffee, tea, hot chocolate, frappes, smoothies, ice cream, sorbets and in some cases, bagels, muffins, cookies and sandwiches.

Business Analysis

From an independent market analysis made in Singapore; 46% of bakeries represented retail shops, 34% represented wholesale operations, 4.6% were from in-store bakery persons, and 4.6% were from multi-unit retailers, the remainder from miscellaneous categories. Of the retail-type bakeries, 58% were traditional full-line bakeries while 42% were specialty bakers of which-

30% were donut bakeries

31% were bread shops

24% were cake shops

12% were muffin/cookie specialty shops

Food and Beverages Industry Overview: 2007

F&B establishments have been growing. Singapore’s diverse culture has produced a highly developed F&B sector offering an extensive array of cuisines. Singapore has been ranked alongside Hong Kong and Australia as one of the three major eating capitals in the Asia-Pacific. F&B establishments here can be broadly categorised into restaurants, fast food outlets, food caterers and others (including cafes, coffee , houses, food courts etc.)

According to the Singapore Department of Statistics, there were 5,200 F&B establishments in Singapore in 2007, up 6.4% yoy. Sector operating receipts grew 8.7% yoy to S$5.0bn in 2007.

Stiff competition. The F&B industry in Singapore is highly competitive and fragmented with low barriers to entry. With many bakeries reinventing their existing products and expanding, it gets increasingly difficult to compete for choice locations and market share.

Impact of swine flu minimal. As the global swine-flu pandemic is not transmissible via the consumption of cooked pork, the impact on the F&B industry should be minimal.

Subject to inflationary pressures. As with most other industries in Singapore, the F&B industry has been hit by the inflation of rental expenses and utility charges, which has hurt profitability. As such, many establishments have been raising their ASPs. We believe prices will continue to trend up and businesses will have to continually adjust their selling prices in order to maintain profit margins.

Main Competitors


Dunkin Donuts

Dunkin’ Donuts is known for the large variety of doughnuts, flavors and other baked items like donut whole treats, bagels, muffins and munchkins etc. The products of the company are available at more than 6,590 outlets and franchises in more than 4,815 alone in the United States of America.

Dunkin’ Donuts was founded in the year of 1950 and has today expanded its operations in many countries of the world. The company is now one of the largest baked goods and coffee chains in the world. According to a survey the company sells more than 4 million doughnuts and about 2.7 million coffee cups every day.

Dunkin’ Donuts has established a good reputation over the last five decades for brewing high quality and tasty coffee. In the America, Dunkin’ Donuts is the largest retailer of coffee-by-the-cups and serves nearly 1 billion brewed coffee cups each year.

The company is known to be using hundred percent original Arabica coffee beans to make delicious coffee. The special ingredient is known by the food industry as a superior grade of coffee.

The company to develop more loyal customers as well as to retain the customers offers discount cards and special deals coupons.

However, Dunkin’ Donuts does not spend much for marketing its products and on media advertising while its competitors do.

The price of different ingredients and raw materials especially high quality coffee beans is increasing. Also the company needs to introduce low calorie doughnuts and other food items.

J.CO Donuts & Cofee

J.CO Donuts & Coffee is a cafe retailer in Indonesia specializing in donuts frozen yogurt and coffee. The company is owned and managed by Johnny Andrean Group. J.CO Donuts & Coffee began trading in 2005.

J.CO is the fastest growing donut & coffee chain in South-East Asia. Within a short span of 4 years, J.CO has grown to 73 outlets in 15 cities in Indonesia. It recently began its foray into Malaysia and Singapore with the opening of an outlet in Pavilion Kuala Lumpur and subsequently in Sunway Pyramid in Petaling Jaya, Selangor. Raffles City, Bugis Junction and Tampines One in Singapore J.CO is famous for its wide variety of soft donuts.

As of October 2010, J.CO operates 87 outlets throughout Asian countries, namely Bali, Jakarta, Bandung, Kuala Lumpur, Singapore and Shanghai. The company planned to expand its chain in Philippines in mid 2011.

Krispy Kreme


http://en.wikipedia.org/w/index.php?title=Johnny_Andrean_Group&action=edit&redlink=1

Krispy Kreme is the name of an international chain of doughnut stores that was founded by Vernon Rudolph in 1937 at Winston-Salem, North Carolina. The parent company of Krispy Kreme is Krispy Kreme Doughnuts, Inc. (NYSE: KKD) and is based in Winston-Salem, North Carolina, United States.

While selling assorted types of doughnuts, Krispy Kreme's signature item is a glazed doughnut that is traditionally served warm. Along with their own Krispy Kreme brand store locations their products are sold in supermarkets, grocery stores, convenience stores, gas stations, Wal-Mart and Target stores in the United States.

Internationally, Loblaws supermarkets and Petro-Canada gas stations in Canada along with BP Service Stations and BP Travel Centres in Australia. In the United Kindgom Tesco supermarkets, Tesco Extra and Moto service stations carry Krispy Kreme products.

The company's growth was steady prior to its initial public offering but profits have decreased in recent quarters.

Munchy's Donut

Munchy's Donut history dates back to 1991 when its founder, Mr Lim Joo Seng used to run his bakery business from a makeshift cart dodging environment officers conducting enforcement action. Each morning, he would knead dough, press-cut it into O's and then fry them. Later, he set up his own bakery, styled, My Favorite Cake Shop, in Tampines. In 2001, he focused on doughnuts and set up his sole-proprietorship in Munchy Donut.

In 2004, Mr Ng Chee Kok Steven, a long-time buddy and a veteran senior police officer of 32 years, joined Mr Lim as a business partner. They converted the sole-proprietorship into a company and named it Munchy Foods Pte Ltd. Munchy Donut becomes their trademark for their doughnuts.

Soon after its incorporation, Munchy Foods became Singapore's largest doughnut manufacturer, rolling out more than 20,000 handmade doughnuts a day supplying to about 200 outlets, such as, supermarkets, cafeterias, convenience stores and schools. It quickly became a house-hold name among doughnut lovers.

In 2007, when doughnuts were the latest food fad in town the 2 partners went into direct retailing and franchising. They roped in a third partner and incorporated Munchy Donut Pte Ltd with its headquarters at Tanjong Katong. Within 7 months, they opened 13 corporate and franchised outlets. In May 2008, Mr Lim and Mr Ng sold their entire stake to the other partner. They retained their famous Munchy Donut trademark.

Bringing doughnuts to the next level, the 2 partners went into gourmet and designers doughnut creating attractive and beautiful doughnuts that taste as good as they look. In June 2008, they re-opened their popular Munchy Donut outlets at Bedok Central, and Clementi. On 28 Oct 2008, they opened their latest outlet at the crowded Singapore Expo.


STRATEGY SUMMARY

Kartoffel Donutz Shop Advertising aims to inform and create interest. We focus on convenience, specialties and service. Four strategies revolving our business:

Utilization of official website and social media. Public speaking (guess speaker and seminar on health issue) A special marketing program will also be incorporated by offering special coupon prices

and/or membership card to customers who frequently purchase any product at Kartoffel Donutz shop.

Word of Mouth

Our Web site will have details to describe the location (our bakery's address, telephone and fax numbers, and directions on how to get to our bakery), hours of operation, menus, and anything else you think may be of interest to potential customers. Once we launch our Web site, we will update it on a regular basis.

Successful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about our customers and competitors is a critical first step in market investigation and development of a marketing plan.

In developing a marketing plan, our primary functions are to understand the needs and desires of our customer, select or develop a product or service that will meet customer needs, develop promotional material that will make the customers aware and ensure product or service delivery.

Positioning Statement

Our positioning statement is : “We are professional donuts-makers serve the most delicious and healthiest potato donuts ever to our growing health and hygiene-concern donuts-lovers.”

Setting the Right Price

Donut CoffeeCurrency Rp SGD Rp SGD

Price per Unit 14.000* 2 35.000* 5*under the assumption that 1 SGD = Rp 7.000

Marketing Tactics and Programs

We will discuss here a few of the popular options for our advertising, promotion and PR efforts. We believe that all of the techniques listed below are perfectly capable of generating new clients in droves. Our challenge is to identify which option suits us, try it, and measure the results so that we can improve our ROI in our future promotional efforts.

1. Website Marketing Strategy


Kartoffel Donutz website provides the best and fun way to interact with our existing and prospective customers. They can do anything from interacting with our representatives to buying donuts online! Everytime new visitors visit our website, we will ask them to register to our website to get more info and special promo sent directly to their e-mails.

2. Membership CardKartoffel Donutz Membership Card can be purchased for $20 giving 10% reduction to the total price for each purchase.

3. Free CouponsFree Coupons are given to our customers who purchase our donuts/coffees 10 times in a month (of minimum purchase equal to 200 Sing. Dollar). They are entitled for 2 free donuts and 1 coffee after purchasing our donuts

4. Newspaper Advertising We will promote our product in local newspapers in form of advertorials. The advertorials mainly discuss the health issue that will relate the issue to the benefits of consuming our donuts.

5. Radio Ads Radio spots are not usually well-targeted. We don’t advertise on radio unless we can try it very cheaply, and be sure to track the results! On the other hand, a radio appearance can be a great way to boost our profile. For instance, if we're interviewed as a special guest during an on-air show at some local radio station, we can attract real attention to ourselves and our business.

6. Flyers Flyers are OK, but only because they’re cheap. We can target them a little by delivering them only to local pedestrians on Orchid Road, and with a little luck we might receive a call or two as a result of our efforts.

7. Branded Merchandise T-shirts, stickers, buttons, mouse pads, pens, and mugs with our logo on them. We do find these products great as gifts for clients we want to thank for some reason. But this kind of expense can only really be justified when we’re well established and very profitable.

8. Guest Speaking


Guest speaking is free, and generates real interest on the spot. We’ll be perceived as an expert, we’ll learn the techniques required for public speaking (which are a huge advantage), and we’ll be exposing ourselves in the nicest possible way to our potential market.

9. Word Of Mouth/In-Store Marketing We will instruct our in-store staffs to tell our new customers the benefits of consuming potatoes. A simple question such as, “Hello, Sir/Madam do you know some benefits of consuming potatoes?” should be aroused to them while transaction is in process. It should be done swiftly and fast!

10. Grand Opening celebrationDuring the grand opening celebration, we will invite the neighbors in the area to trial our tasty and healthy donuts.

SUMMARY OF SWOT ANALYSIS

SWOT ANALYSIS EXPLANATIONSStrengths Fresh and Healthy Donuts made from highly selected potatoes.

Exellence customer service Competitive pricing Unique and highly innovative atmosphere Clean and friendly environment Convenient shop location Professional staffs

Weaknesses New player in the market Lack of patent protection Limited resources Limited source of funds Imperfect knowledge about the market condition

Opportunities F&B Sector is growing in Singapore. Singapore has been ranked alongside Hong Kong and

Australia as one of the three major eating capitals in the Asia-Pacific.

According to the Singapore Department of Statistics, there were 5,200 F&B establishments in Singapore in 2007, up 6.4% yoy. Sector operating receipts grew 8.7% yoy to S$5.0bn in 2007.

Of the retail-type bakeries, 58% were traditional full-line bakeries while 42% were specialty bakers of which 30% were donut bakeries , 31% were bread shops, 24% were cake shops, and 12% were muffin/cookie specialty shops.

Today’s societies are becoming more health-conscious and selective of foods/meals they consume especially for Junk-Food Category.


Threats Stiff competition. The F&B industry in Singapore is highly competitive and fragmented with low barriers to entry. With many bakeries reinventing their existing products and expanding, it gets increasingly difficult to compete for choice locations and market share.

Subject to inflationary pressures. As with most other industries in Singapore, the F&B industry has been hit by the inflation of rental expenses and utility charges, which has hurt profitability. As such, many establishments have been raising their ASPs in order to maintain profit margins.

SUMMARY OF SWOT MATRIX

Strengths WeaknessesOpportunities Kartoffel Donutz is

already successful at community outreach and It has a growing customers not only in Indonesia but also some other Asian countries.

Kartoffel Donutz will employ customer-driven strategy; we will appeal to health-conscious donuts lovers and we will continue to educate our growing customers about the benefits of consuming potato donuts. To top it off, Kartoffel Donutz will establish 1-2 outlets every 3 years in Singapore.

Introducing a relatively new product to a growing F&B Market, especially the donuts sector in Singapore.

Kartoffel Donutz needs to train staff members to proficiently use our database in order to increase our customers. Apart from that, promotions through social medias, like Facebook, Twitter, and the likes are the key success in ensuring our long-term profitability.

Becoming a new player in the Singapore market doesn’t always mean a bad thing. Kartoffel Donutz will pose as offering a new and better alternative to, but not limited to, young, vagrant, and adventurous donuts lovers in Singapore who are health-conscious.

Threats Kartoffel Donutz will Kartoffel Donutz needs


keep producing different types of donuts and coffee with unique flavors.

Kartoffel Donutz will also engage in social campaigns for health issues in Singapore; collaborating with local health experts in local news papers and radio.

to prioritize building a reserve fund to minimize the impact of increased rental cost in the future. Apart from that, the management of Kartoffel Donutz has been considering of making loan to a Singaporean Bank after 5 years running the business as a strategy to increase our outreach.


MANAGEMENT SUMMARY

Kartoffel Donutz Shop will hire an employee to assist with the business. Kartoffel Donutz Shop will require minimum daily supervision after it has been established since all three products are fairly easy to make.

At present time, -OWNER- is the sole individual firmly committed to the Kartoffel Donutz Shop concept.

No shortage of qualified staff or management from local labor pools in each market area is expected. One of our key principles in site selection is the availability of staff in the immediate area.

Organizational Structure

Kartoffel Donutz Shop plan to have our accounting and payroll functions done by a contracted bookkeeping service. However, we will constantly monitor this expense and at such time that it is economically feasible, bring this function in-house. Other possible positions that might be added at a later date include marketing director, purchasing agent, controller, director of human resources, director of training/new store opening team coordinator, director of research & development (for new bakery recipes), and administrative assistants.

Operations of individual stores will be the responsibility of the proprietor/managing partner.


Management Team

Kartoffel Donutz Shop is currently the creative idea solely of “OWNER”. As the company is small in nature, it requires a simple organizational structure. Implementation of this organization form calls for “OWNER” to make all of the major management decisions in addition to monitoring all other business activities.

Management Team Gaps

Specific opportunities exist in the store operations supervisory area (not needed initially). These people will be recruited when needed in the local market. However, the first key employee needed will be the proprietor/managing partner.

This individual will assist in the detail development of the Kartoffel Donutz Shop concept. Hiring of this individual is slated during the initial construction phase.

Temporary help has been secured that will assist in the administrative assistant area. This individual will work on the development of all training materials and manuals plus do our correspondence.

Personnel Plan

Monthly personnel cost estimates are included in the following table :

PERSONNEL PLAN

YEARS 2011 2012 2013 2014

SHOP MANAGER SGD 8,678 SGD 17,878 SGD 18,325 SGD 18,829

EXECUTIVE CHEF SGD 4,114 SGD 8,475 SGD 8,687 SGD 8,926

PASTRY HELPER SGD 1,865 SGD 3,840 SGD 3,936 SGD 4,045

WAITERS [ 3 Persons ] SGD 5,657 SGD 11,654 SGD 11,945 SGD 12,274

CASHIER SGD 2,185 SGD 4,503 SGD 4,615 SGD 4,742ACCOUNTING STAFF SGD 2,828 SGD 5,827 SGD 5,973 SGD 6,137

TOTAL PERSONNEL 8 8 8 8

TOTAL PAYROLL SGD 25,328 SGD 52,177 SGD 53,481 SGD 54,952


FINANCIAL PLAN

Kartoffel Donutz Shop Financial Plan

It has been our corporate philosophy that, for each opening branch/new project, funding requirements met from corporate cash without borrowing from a third party. Only after successful operations in the period of 2-3 years, to speed up our business, we make a loan to third parties. We realize that with this funding pattern, we will not have rapid business growth. However, based on business experience that we have been through, by applying principles of effective and efficient consistently, the business will definitely grow very well.Important indicators that will greatly assist the growth of our business include:

a. Inventory management system Just In Time,b. Tight Budget System, especially the variance between the budget vs actual

expenditures,c. Getting good quality but relatively cheap factors of production, and d. Effective fund management.

Important Assumptions

Kartoffel Donutz Shop Important Assumptions

Monthly sales are the largest indicator for this business. There are some seasonal variations with the months of March through September being the highest sales months.

GENERAL ASSUMPTIONS

Indicators 2011 2012 2013 2014

Interest Rate : Comm. Bank 5,4% 6,2% 6,2% 6,6%Inflation Rate 3,2% 2,5% 1,8% 1,9%Tax Rate 17,0% 17,% 16% 16%G D P 4,1% 5,0% 4,8% 4,9%

Key Financial Indicators

Kartoffel Donutz Shop Key Financial Indicators

Donuts products costs must be kept at, or below, 50% while coffee below 30%.

Unit level employee costs must be kept at, or below, 15%.

Break-Even Analysis

Kartoffel Donutz Shop Break-Even Analysis

We will breakeven at 20.994 pcs for donuts and 5.249 cups for coffee.


Your breakeven point is where your profit equals zero. As long as your contribution margin is greater than zero, every unit sold after you have reached your breakeven point will add to your profitability. If your gross margin is less than zero, regardless of the units sold, there is no breakeven point

Breakeven Analysis Summary

Price DonutSGD 2,00 per pcs

CoffeeSGD 5,00 per cup

Variable Cost SGD 0,92 SGD 1,00 Contribution Margin SGD 1,08 SGD 4,00Sales Mix (in unit) 4 unit 1 unitSales Mix (in SGD) SGD 4,32 SGD 4,00 Weighted SGD 1,66BEP Sales mix 26.243 unitFixed Cost SGD 43,660BEP – unit 20.994 pcs 5.249 cupsTotal Revenue SGD 41,989 SGD 26,243Total Variable Costs SGD 19,321 SGD 5,250Profit SGD 22,667 SGD 20,993


Projected Profit And Loss

Kartoffel Donutz Shop Projected Profit and Loss

We expect a profit of SGD 84,066 in year two; SGD 146,721 in year thee; and SGD 257,085 in year four of operation.

We expect to sell 115,835 donuts + 28.959 cups of coffee monthly during year one; 247,114 donuts + 61,778 cups of coffee daily during year two; 265,132 donuts + 66,283 cups of coffee daily during year three; and 297,309 donuts + 74,327 cups of coffee daily during year four.

KARTOFFEL DONUTZ – SINGAPOREPROFIT & LOSS

Period 2011 – 2014

Account 2011 2012 2013 2014

Sales 384.761,24 938.249,56 1.038.186,54 1.197.365,94

Variabel Cost 135.570,14 297.892,79 305.340,11 313.736,97

Fixed Cost 265.827,68 539.072,29 556.074,11 573.887,63

EBIT (16.636,58) 101.284,48 176.772,32 309.741,35

Pajak (17%) - 17.218,36 30.051,29 52.656,03

EAT (16.636,58) 84.066,12 146.721,02 257.085,32


Projected Balance Sheet Account & Ratio Analysis

Kartoffel Donutz Shop Projected Balance Sheet Account

KARTOFFEL DONUTZ - SINGAPORE Balance Sheet - Proforma

End of year 2011 up to 2014

Account 2011 2012 2013 2014 Current Asset

Cash & Cash Equivalent 270.429 589.370 885.967 1.287.928

Prepaid Expense 450.000 270.000 90.000 -

Sub total 720.429 859.370 975.967 1.287.928

Fixed Asset

Acquisition 300.497 300.497 385.497 385.497

Accum. Deprec (37.562) (92.438) (147.313) (202.189)

Sub total 262.935 208.059 238.183 183.308

Total Asset 983.363 1.067.430 1.214.151 1.471.236

Current Liability

Trade Payable - - - -

Sub total

Long Term Liab - - - -

Equity

PT. KDI 1.000.000 1.000.000 1.000.000 1.000.000

Retained Earning (16.637) 67.430 214.151

Earning Current Year (16.637) 84.066 146.721 257.085

Total Equity 983.363 1.067.430 1.214.151 1.471.236

KARTOFFEL DONUTZ - SINGAPORE Financial Ratio Analysis

End of year 2011 up to 2014 Ratios 2011 2012 2013 2014

Fixed Assets Turnover ( X ) FATO 0,53 1,09 1,06 0,93

Total Assets Turnover ( X ) TATO 0,39 0,88 0,86 0,81

Profit Margin ( % ) PM (4,32) 8,96 14,13 21,47

Return on Investment (ROI) ( % ) ROI (1,69) 7,88 12,08 17,47

Return on Equity (ROE) ( % ) ROE (1,69) 7,88 12,08 17,47


Projected Cash Flow & Cash Budgeting Analysis

Kartoffel Donutz Shop Projected Cash Flow

Projected cash flow is estimated as follows for the next four years:

PRO FORMA CASH FLOW in SGD

CASH FROM OPERATIONS 2011 2012 2013 2014

Cash Sales 384,761 938,250 1,034,045 1,137,498

Cash from Receivables 0 0 0 0

SUBTOTAL CASH FROM OPERATIONS

384,761 938,250 1,034,045 1,137,498

Additional Cash Received

New Investment Received 1,428,571 0 0 0

Subtotal Cash Received 1,813,333 938,250 1,034,045 1,137,498

EXPENDITURES FROM OPERATIONS

2011 2012 2013 2014

Cash Spending (Ops. + Payroll) 273,836 711,841 725,654 831,229

Payment of Accounts Payable 0 0 0 0

SUBTOTAL SPENT ON OPERATIONS

Additional Cash Spent

Purchase Long-term Assets 840,497 0 0 0

Dividends 0 0 0 0

SUBTOTAL CASH SPENT 1,114,333 711,841 725,654 831,229

NET CASH FLOW (729,571) 226,409 308,390 306,269

CASH BALANCE 699,000 1,035,160 1,453,302 1,869,322

CASH BUDGETING - INVESTMENT ANALYSIS 1. Payback Period 2 3/4 years 2. N P V 196.396,08 3. Profitability Index 1,23


APPENDIX


Documents

Business Plan Example by Jhanghiz Syahrivar