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E L L IS E Y ’SF r o z e n Y o g u r t
Ellen Garr Allison Edwards Ashley Ropolo
EXECUTIVE SUMMARY Ellisey’s will provide self-‐serve frozen yogurt, in ten different flavors with a variety of toppings. We will hire employees to work directly under our management supervision. As avid yogurt connoisseurs and dietitians, we are promoting healthier dessert alternatives. We are prepared to do this with our wide variety of skills in nutrition and food service. Frozen yogurt and healthier dessert alternatives are the new trend, which will allow the business to flourish. This business will give us income because consumers are always looking for new and trendy places to shop. Since our business is going to provide fresh and new yogurt ideas, this will bring people in and keep them coming back on a regular basis. MANAGEMENT Business Organization Ellisey’s is a business to provide self-‐serve frozen yogurt in nine different flavors at a time with a variety of healthy and sustainable toppings. Ellisey’s business structure will be a partnership between Ellen Garr, Allison Edwards and Ashley Ropolo. There will be employees working under Ellen Garr, Allison Edwards and Ashley Ropolo’s supervision. Ellisey’s is in great demand due to the location of Boulder, Colorado. The University of Colorado, Boulder resides in this town, creating a large demand for college age individuals. Product Life Cycle With the introduction of Ellisey’s, we are expecting to have a low growth rate, as the product is newly getting launched in the market. There is great potential for Ellisey’s and after the initial introduction, growth of the business should occur. Growth will occur when acceptance of the business and the profit starts to flow. At this point, we will experiment with new innovative ways to increase profit and sales. After these initial two phases, we should have maturity of Ellisey’s. This will be when our business has been accepted into the market. With the maturity of our business, we may need to decrease sale prices to compete with other businesses. Mission Statement Ellisey’s mission statement is to distribute healthy, sustainable, wholesome and natural ingredients of frozen yogurt to our customers at a great value with optimal customer satisfaction. Vision Statement 1. To provide an atmosphere to customers that is fun, comfortable and friendly. 2. To provide sustainable and healthy options for customers to consume. 3. To continue to seek out and incorporate new ingredients and ideas into our business. 4. Strive to make Ellisey’s a family friendly atmosphere that will bring people back time after time. Goals By the end of year 1, Ellisey’s will have a fully functioning frozen yogurt bar, with hopes of having a minimum of 60 customers per day. a. All equipment will be set up and functioning properly. b. All employees will be trained and have part-‐time schedules.
Within 3 years of operation, Ellisey’s will continue to strive as a business and continue to grow. At this point we will have apparel for our shop. We will also hopefully have enough profit to add supplements to our product.
a. Ellisey’s will compete with other frozen yogurt businesses, while adjusting prices during this time if needed to meet demand. b. Ellisey’s will have t-‐shirts and hats available with our Ellisey’s logo to generate profit and market. c. At this point we will see if there is opportunity to add supplemental mix in’s to our frozen yogurt, such as protein or probiotics.
Within 5 years of operation, Ellisey’s will be financially free of any debt. a. The three managers will have paid off their bank loans within the last 5 years. b. We will be making profit only, with minor repairs needing to be made. c. Employees can get raises at this point. Organization and Job Descriptions Ellen Garr-‐ Manager/ management Building cleanliness and maintenance Employee scheduler Product manager HIPPA, contracts, legal requirements, insurance Allison Edwards-‐ Manager/ marketing advisor Advertising Marketing plans Competition Ashley Ropolo-‐ Manager/ financial planner and organizer Financial forecasts Profit and loss projections Cash flow Employee wages Taxes Employees (approx. 15) -‐ Front of the house operations Assist customers in any needs or questions Operate the cash register Have a friendly and nice personality Work part-‐time shifts ***Refer to appendix 1 for resumes, appendix 2 for organizational chart, appendix 3 for job descriptions, and appendix 4 for work flow chart. Licensing ·∙ Paperwork for naming “Ellisey’s” submitted to county clerk ·∙ Contact local zoning agency for the Pearl Street Mall location ·∙ Serve Safe certificates for managers Ellen Garr, Allison Edwards and Ashley Ropolo ·∙ All employees must have food handler’s permits in order to operate within the business
·∙ Insurance for all equipment ·∙ Building agreement and bank loans ·∙ Contract between all food operations and deliveries ·∙ Contract between local food sources for our toppings of fruit ·∙ HIPPA policy in place before opening to ensure confidentiality and privacy of our employees ·∙ Tax ID number finished and submitted prior to opening month Products and Service Ellisey’s will sell and provide nine different flavors (that will continually be rotated out) of frozen yogurt for customers. There will be 20 different toppings, some from local distributors. When financially stable enough, we will also provide t-‐shirts and hats for our customers to buy. Ellisey’s will also use recyclable and sustainable containers for our frozen yogurt. Prices will be determined in order to barely break even in the beginning years of operation. Pricing will also be determined from our competition prices. Prices will be $0.37/ounce including toppings. Therefore, our customers will be able to get as much as they would like without being charged specific amount for separate toppings. Once our business starts to grow and generate profit, we will then be able to either lower or raise our prices depending on the market and our resources. ***Sample of menu and pricing in appendix 5.
Price: 0.37 cents/ounce
Yogurt Flavors Flavors may vary
Vanilla
Peanut Butter
Chocolate
Cake Batter
Strawberry
Cheesecake
Cookies and Cream
Red Velvet
Mocha Latte
Toppings *Fruit toppings are from local farms
*Strawberries *Blackberries
*Raspberries Granola
Bananas Waffle Cookies
Chocolate Chips Animal Crackers
Peanut Butter Chips Pineapple
Cookie Dough *Blueberries
M&M’s Almonds
Chocolate Covered Raisins Cashews
Yogurt Chips Peanuts
Kiwis Walnuts
COMPETITION AND MARKETING Target Market Our business targets both men and women in high school and college, ages 15 to 24. Ellisy’s will be located on 1942 Broadway, Boulder, Colorado at the Pearl Street Mall. This pedestrian mall is located in downtown Boulder and is a popular place for tourists and students attending the University of Colorado, Boulder, which is just a few blocks away. Boulder High School is also just a few miles way. Pearl Street Mall is where much of Boulder City’s nightlife happens, especially during the summer months. Based on our market research in Boulder, Colorado, this location will be a perfect place for our business, and a popular “hang out” place for both high school and college students. Boulder City has a high percentage of persons ages 15 to 24 and average annual income within normal range. Boulder also has an unemployment rate lower than the US, with recent job growth higher than the US. This shows that the city has a good economic status, which will be beneficial to our business.
Population size 97, 385
% Population ages 15-‐24 31.3
Average Annual Income $66,479
% Unemployment 5.9
% Recent Job Growth 2.84
Competition There are currently four frozen yogurt businesses in Boulder, Colorado, but only one that is within a five-‐mile radius of Ellisey’s. Three of the businesses are very similar to ours, which have self serve frozen yogurt with toppings and pricing per ounce, but all more expensive. The yogurt shop that is closest to ours does not do self serve and only offers four flavors, which will greatly work to our advantage, as we can offer something different. Many of the yogurt places are eco-‐friendly and make the yogurt from local milk, but none serve toppings from local farms, which is something different we are offering. The four businesses are described in detail below: Aspen Leaf Frozen Yogurt 637 South Broadway, Boulder, CO 80305 ·∙ Self-‐serve frozen yogurt ·∙ Provides toppings from Rocky Mountain Chocolate Factory ·∙ $0.45 per ounce Ripple Pure Frozen Yogurt 1682 30th Street, Boulder CO 80302 ·∙ Self-‐serve frozen yogurt ·∙ Emphasizes sustainability, as the spoons, cups, and napkins are all compostable; electricity is offset by wind power; and milk is from front range dairies ·∙ Also offers bakery foods such as cookies and brownies ·∙ $0.44 per ounce Smooch Frozen Yogurt 1926 14th Street, Boulder CO 80302 ·∙ Not self serve, only offers four flavors ·∙ Uses eco-‐friendly products ·∙ Offers an additional bakery that sells smoothies, hot and cold drinks, Belgian waffles, and steel cut oatmeal ·∙ $3.95 plus $0.65 per topping Spooner’s Frozen Yogurt 1805 29th Street, Boulder CO 80301 ·∙ Self-‐serve frozen yogurt ·∙ Yogurt made from local milk, no synthetic growth hormones ·∙ $0.41 per ounce Marketing Plan The marketing plan will employ a variety of methods to maximize results while staying within the initial marketing budget. Initial marketing for Ellisey’s include:
·∙ Sign in front of business and grand opening banner ·∙ Social Media (Facebook page, etc) ·∙ Website ·∙ Sponsor local races such as “Quick Like a Bunny Fun Run” in March and the nationally famous 10K, “BolderBoulder.” ·∙ Pass out sample cups at the Pearl Street Mall for students and tourists walking by ·∙ Flyers at parades, local high schools, and around campus at the University of Colorado Boulder ·∙ Host a Karaoke Fundraising Night during the first two weeks of opening, raising money for cancer research The following professional services will be employed for promotional materials (see Appendix for promotional materials): ·∙ Colt Printing Services for flyers and banners (located in Boulder, CO) ·∙ Boulder City directors for the sponsoring of races ***A sample of the marketing promotion in appendix 7 Marketing Budget: 7,000 dollars was set for the marketing budget and will be spent in the following areas:
Sign and Grand Opening Banner $4500
Website $100
Sponsorship $1200
Flyers $600
Fundraisers $500
Miscellaneous (sample cups, etc) $100
Total $7000
Competitive Advantages Compared to other frozen yogurt places, Ellisey’s has many competitive advantages. Many frozen yogurt places in Boulder offer yogurt made from milk of local cows, but none of them offer fruit toppings from local farms. Out of the four frozen yogurt businesses currently in Boulder, only one is within a five-‐mile radius of Ellisey’s, and this business does not offer self-‐serve frozen yogurt. Ellisey’s also has lower prices than all of the other business, as we only charge 37 cents per ounce and all other business charge 41 cents per ounce or more. These lower prices alone will draw in more customers. The location of Ellisey’s will also work to our advantage, as it is right in downtown Boulder at a very popular mall near the university. Opening Day Checklist ·∙ Make sure all staff members are available for the Grand Opening
·∙ Assign three staff members to put up Grand Opening banner one day prior to opening ·∙ Print out flyers from Colt Printing Services to hang up around local high schools and the university one week before opening ·∙ Have all staff make sure all machines are working properly ·∙ Order toppings one week prior to opening to have them delivered the morning of ·∙ Order yogurt one week prior to opening to have them delivered the morning of ·∙ Order sample cups one week prior so they are available for free samples on opening day FINANCIAL Start-‐up Expenses Ellisey’s Frozen Yogurt will be equally owned and financially operated by Ellen Garr, Allison Edwards and Ashley Ropolo. All three managers will invest 30,000 dollars towards the opening and start up of the business. The rest of the contributing funds will come from American First Credit Union and Wells Fargo bank loans. The start-‐up expenses spreadsheet can be found in the appendix, under the financial documents section. The start-‐up expenses are quite high, as we have decided to build our own building to meet the needs of our company. The specific furniture, equipment and machinery needed to run this business successfully can be found on the start-‐up expense spreadsheet as well. 12-‐Month Sales Forecast/Profit and Loss Projection The expected sales forecast for Ellisey’s opening year, can be located in the financial documents section of the appendix. Sales have been calculated based on the weather variations with the four different seasons of Boulder, Colorado. Frozen yogurt and toppings will be purchased at different prices, however they will remain the same price per ounce for customers to avoid any confusion on our pricing system. The sales of the first year are projected to be lower, as people are still learning about our new company. We expect a huge increase over the next few years and may sponsor events, in the near future. All income for product sold is expected at the time of service. The expected revenue for Ellisey’s is the greatest during May through September, as these are the warmest/nicest months of the year in Boulder. We also expect that toppings will increase the average weight purchased during the summer months, as we are providing locally grown, fresh fruits to choose from. With that being said, we are anticipating a drop in sales during the winter months. 12-‐Month Cash Flow Statement This statement shows how Ellisey’s started with a positive beginning cash balance of $7,000, provided by the remainder of the loan we have taken out. It also walks through how cash is being handled throughout the year, based on revenue and expenses. The 12-‐Month Cash Flow Statement can be found in the appendix, listed with the other financial spreadsheets. Record Keeping and Documentation To decrease confusion, Ashley Ropolo, Ellisey’s financial coordinator, will be in charge of all the financial record keeping and documentation. If further assistance is needed, the other two managers will be available.
There will be no outside source of help, as tight funds do not allow for that at this time. The business is small enough that it should be manageable. As the business begins to grow and flourish, further outside assistance may be needed. Record keeping will consist of a filing system, to organize all the necessary documents from the financial aspect of the business. These include, but are not limited to, invoices, receipts, ledgers, spreadsheets, computer program printouts, etc. As the business grows, an electronic filing system will likely be more practical. ***All financial documents can be found in appendix 8 CONCLUSION As this is a new business, we will have to wait to see how our business grows and develops over the next year to determine if Ellisey’s will be successful. Ellisey’s total cash balance by the end of year one is projected out to be $30,569. If our annual losses are greater than our profit in the following years, Ellisey’s will likely go out of business. Due to our clientele, location of business, and lower prices than other yogurt businesses in Boulder, however, we expect that our business will likely flourish and be successful in the following years. APPENDIX
1 Organizational Chart 2 Job Descriptions 3 Work Flow Chart 4 Sample of product/service 5 Marketing budget 6 Samples from Marketing Plan 7 Financial Documents
Appendix 1 Organizational Chart
Organizational Chart
Ellen Garr
Owner/Manager
Management
Allison Edwards
Owner/Manager
Marketing
Ashley Ropolo
Owner/ Manager
Financial
Employees (15)
Appendix 2 Job Descriptions Ellen Garr-‐ Manager/ management Building cleanliness and maintenance Employee scheduler Product manager HIPPA, contracts, legal requirements, insurance Allison Edwards-‐ Manager/ marketing advisor Advertising Marketing plans Competition Ashley Ropolo-‐ Manager/ financial planner and organizer Financial forecasts Profit and loss projections Cash flow Employee wages Taxes Employees (approx. 15) -‐ Front of the house operations Assist customers in any needs or questions Operate the cash register Have a friendly and nice personality Work part-‐time shifts
Appendix 3 Work Flow Chart Work Flow of Product
Order Completed
Receving Product
Store Product (Dry storage/
freezer) Put Out for Customers
Self Serve
Work Flow of Employees
Arrive at work
Open shop and put away any orders
Organize and clean
Ensure everything is stocked
Help customers
when needed
Clean shop and close
Appendix 4 Sample of product/service
Appendix 5 Marketing budget
Sign and Grand Opening Banner $4500
Website $100
Sponsorship $1200
Flyers $600
Fundraisers $500
Miscellaneous (sample cups, etc) $100
Total $7000
Appendix 6 Sample from Marketing Plan
E l l i s e y ’ sF r o z e n Y o g u r t
G r a n d O p e n in g J u n e 1 , 2 0 1 3 !L o c a t e d a t t h e P e a r l S t r e e t M a l l1 9 4 2 B r o a d w a y , B o u ld e r C O
C o m e e n j o y f r i e n d s , f u n , a n d d e l i c i o u s s e l f -‐ s e r v e f r o z e n y o g u r t a t o n l y 3 7 c e n t s p e r o u n c e !
C o m e E a t L a t e !S u n t h r u T h u r s 1 1 a m -‐ 1 0 p mF r i a n d S a t 1 1 a m -‐ 1 1 p m
Appendix 7 Financial Documents
Startup Expenses
Sources of Capital
Owners' Investment (name and percent ownership)
Ashley Ropolo (33%)
$ 30,000 Ellen Garr (33%)
30,000
Allison Edwards (33%)
30,000 Total Investment
$ 90,000
Bank Loans America First Credit Union
$ 87,500 Wells Fargo
87,500
Total Bank Loans
$ 175,000
Startup Expenses
Buildings/Real Estate Purchase
$ - Construction/Buildout
125,000
Menu Board
- Remodeling
-
Other
-
Total Buildings/Real Estate
$ 125,000
Leasehold Improvements Item 1
$ - Item 2
-
Item 3
- Item 4
-
Total Leasehold Improvements
$ -
Capital Equipment List Furniture (tables and chairs)
$ 4,500 Equipment (mop sink, 3 dept. sink, hand sinks)
2,000
Fixtures
2,000 Machinery (yogurt machines, fridge, freezer, topping display, POS system)
64,000
Other (garbage cans, chalk board, decorations
2,500
Total Capital Equipment
$ 75,000
Location and Admin Expenses Rental Insurance
$ 2,000 Utility deposits
2,000
Legal and accounting fees
3,000 Prepaid insurance
2,000
Pre-opening salaries
10,000
Other
- Total Location and Admin Expenses
$ 19,000
Opening Inventory Bowls, lids, napkins, utensils
$ 2,000 Food (yogurt and toppings)
5,000
Total Inventory
$ 7,000
Advertising and Promotional Expenses
Advertising/Grand Opening Promotion
$ 2,500 Signage
4,500
Printing
- Travel/entertainment
-
Other/additional categories
- Total Advertising/Promotional Expenses
$ 7,000
Other Expenses Other expense 1
$ - Other expense 2
-
Total Other Expenses
$ -
Reserve for Contingencies
$ 15,000
Working Capital
$ 10,000
Summary Statement
Sources of Capital Owners' and other investments
$ 90,000 Bank loans
175,000
Total Source of Funds
$ 265,000
Startup Expenses
Buildings/real estate
$ 125,000
Leasehold improvements
- Capital equipment
75,000
Location/administration expenses
19,000 Opening inventory
7,000
Advertising/promotional expenses
7,000 Other expenses
-
Contingency fund
15,000 Working capital
10,000
Total Startup Expenses
$ 258,000
Owners Ashley Ropolo Ellen Garr Allison Edwards
Loan Guarantors (other than owners) American First Credit Union
Wells Fargo
12-‐Month Sales Forecast
Fiscal Year Begins Jun-1312-month Sales Forecast Sales History
Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14Annual Totals
Current Month Ending mm/yy 2012 2011 2010
Frozen Yogurt (highly variable) (oz) 12000 14400 13200 12000 10800 6000 4800 4800 4800 6000 10800 10800 110400Sale price per ounce 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37Frozen Yogurt TOTAL ($) 4,440 5,328 4,884 4,440 3,996 2,220 1,776 1,776 1,776 2,220 3,996 3,996 40,848 0 0 0 0
Toppings (oz) 7500 9000 8250 4500 4050 1500 1200 1200 1200 1500 6750 6750 53400Sale price per ounce 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37Toppings TOTAL 2,775 3,330 3,053 1,665 1,499 555 444 444 444 555 2,498 2,498 19,758 0 0 0 0
Monthly totals: All 7,215 8,658 7,937 6,105 5,495 2,775 2,220 2,220 2,220 2,775 6,494 6,494 60606 0 0 0 0
Sales Forecast (12 Months)Ellisey's Frozen Yogurt
12-‐Month Profit and Loss Projection
12-‐Month Cash Flow Statement -‐ first six months
Cash Flow Budget Worksheet
Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 TotalBeginning Cash Balance 7,000 $9,705 $13,903 $17,500 $19,145 $22,561Cash Inflows (Income):
Accts. Rec. Collections 0Loan Proceeds 0Sales & Receipts 7,215 8,658 7,937 6,105 5,661 2,775 38,351Other:
00
Total Cash Inflows $7,215 $8,658 $7,937 $6,105 $5,661 $2,775 $38,351Available Cash Balance $14,215 $18,363 $21,840 $23,605 $24,806 $25,336Cash Outflows (Expenses):
Advertising 150 100 100 100 75 75 600Bank Service Charges 0Credit Card Fees 0Delivery 0Health Insurance 0Insurance 75 75 75 75 75 75 450Interest 0Inventory Purchases 240 240 120 240 240 120 1,200Miscellaneous 50 50 50 50 50 50 300Office 100 100 100 100 100 100 600Payroll 2,970 2,970 2,970 2,970 1,080 1,080 14,040Payroll Taxes 500 500 500 500 200 200 2,400Professional Fees 100 100 100 100 100 100 600Rent or Lease 0Subscriptions & Dues 0Supplies 0Taxes & Licenses 0Utilities & Telephone 325 325 325 325 325 325 1,950Other:
000
Subtotal $4,510 $4,460 $4,340 $4,460 $2,245 $2,125 $22,140Other Cash Out Flows:
Capital Purchases 0Loan Principal 0Owner's Draw 0Other:
0 Subtotal $0 $0 $0 $0 $0 $0 $0 Total Cash Outflows $4,510 $4,460 $4,340 $4,460 $2,245 $2,125 $22,140
Ending Cash Balance $9,705 $13,903 $17,500 $19,145 $22,561 $23,211
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12-‐Month Cash Flow Statement -‐ last six months
Cash Flow Budget Worksheet
Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 TotalBeginning Cash Balance 23,211 $23,306 $23,521 $23,736 $24,386 $28,635Cash Inflows (Income):
Accts. Rec. Collections 0Loan Proceeds 0Sales & Receipts 2,220 2,220 2,220 2,775 6,494 6,494 22,423Other:
00
Total Cash Inflows $2,220 $2,220 $2,220 $2,775 $6,494 $6,494 $22,423Available Cash Balance $25,431 $25,526 $25,741 $26,511 $30,880 $35,129Cash Outflows (Expenses):
Advertising 75 75 75 75 75 200 575Bank Service Charges 0Credit Card Fees 0Delivery 0Health Insurance 0Insurance 75 75 75 75 75 75 450Interest 0Inventory Purchases 120 0 0 120 240 240 720Miscellaneous 50 50 50 50 50 50 300Office 100 100 100 100 100 100 600Payroll 1,080 1,080 1,080 1,080 1,080 2,970 8,370Payroll Taxes 200 200 200 200 200 500 1,500Professional Fees 100 100 100 100 100 100 600Rent or Lease 0Subscriptions & Dues 0Supplies 0Taxes & Licenses 0Utilities & Telephone 325 325 325 325 325 325 1,950Other:
000
Subtotal $2,125 $2,005 $2,005 $2,125 $2,245 $4,560 $15,065Other Cash Out Flows:
Capital Purchases 0Loan Principal 0Owner's Draw 0Other:
0 Subtotal $0 $0 $0 $0 $0 $0 $0 Total Cash Outflows $2,125 $2,005 $2,005 $2,125 $2,245 $4,560 $15,065
Ending Cash Balance $23,306 $23,521 $23,736 $24,386 $28,635 $30,569
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