Business Plan Business Plan Prepared By: Amanda Hoehn Jeremy Olthof Leigh Anderson Glenn Stacey.

Business PlanBusiness Plan

Prepared By:

Amanda Hoehn

Jeremy Olthof

Leigh Anderson

Glenn Stacey

AgEc 495.3 College of Agriculture AgEc 495.3 College of Agriculture and Bioresourcesand Bioresources

IntroductionIntroduction

The feasibility of The feasibility of moving a packaged moving a packaged fudge bar into the fudge bar into the premium retail market premium retail market

Primary target market Primary target market will be Western Canadawill be Western Canada


Site LayoutSite Layout


Goals of BusinessGoals of Business

Short TermShort Term Western CanadaWestern Canada Retail marketRetail market

Packaging and selling of:Packaging and selling of: 12 regular flavours 12 regular flavours 2 sucrose free flavours2 sucrose free flavours

Long TermLong Term Expand to the rest of Expand to the rest of

Canada Canada Relocate to a larger Relocate to a larger

facilityfacility


Fudge ProcessFudge Process

RawIngredients A

FudgeVat B

Fudge Pan

C Scoring

H

Packaging

G

Heat Sealing

D

Labeling

F

Display Case Master Case

CuttingE

I


Inventories, AR and APInventories, AR and AP

InventoriesInventories 12 days12 days

FIFOFIFO

Accounts ReceivableAccounts Receivable 12 days12 days

Consignment and PharmaChoiceConsignment and PharmaChoice®®

Customer pay by credit card at gift Customer pay by credit card at gift shows shows

Accounts Payable Accounts Payable 10 days10 days

New York supplier - 2/10 n/45New York supplier - 2/10 n/45 Harlan Fairbanks - 2/10 n/30Harlan Fairbanks - 2/10 n/30


Capital BudgetCapital Budget

ValuePurchased Assets

Heat Sealer 7,500$ Printer 10,000$ Computer 3,200$ Blackberry™ 400$

Current AssetsFudge Pots 10,000$ Fridge and Freezer 500$ Miscellaneous Equipment 5,000$ Total Equipment Costs 36,600$ Total Working Capital 7,521$ Total Capital Required 44,121$


Organizational Structure: Board Organizational Structure: Board of Directorsof Directors

Board of Directors (2)

Sales Representative

Factory Staff

President/General Manager Co-Manager


Human ResourcesHuman Resources

CurrentlyCurrently President/General ManagerPresident/General Manager Co-ManagerCo-Manager Fudge ChefFudge Chef Fudge WorkersFudge Workers

AdditionsAdditions Sales RepresentativeSales Representative Fudge WorkersFudge Workers


ProductProduct

80g premium fudge bar80g premium fudge bar 4 x 2 package4 x 2 package 12 regular flavours and 2 12 regular flavours and 2

sucrose freesucrose free Wrapped in a glossy packageWrapped in a glossy package

WeightWeight FlavourFlavour IngredientsIngredients Best before dateBest before date Nutritional informationNutritional information

RegularPumpkin Pie

Heavenly GooChocolateMaple Nut

English ToffeeChocolate Peanut Butter Swirl

Summer TortoiseCaramel Pecan

Chocolate Amaretto SwirlChocolate Mint SwirlCookies and Cream

Sucrose-freeChocolateMaple-Nut

Varieties


PricePrice

Wholesale $2.59Wholesale $2.59 Retail and consignment $3.99Retail and consignment $3.99 Both premium and competitive pricing strategyBoth premium and competitive pricing strategy FF will be the only providers of fudge to the retail FF will be the only providers of fudge to the retail

marketmarket


PromotionPromotion

Gift showsGift shows ““Fudge Program”Fudge Program” Retail display rackRetail display rack WebsiteWebsite Pamphlets and signsPamphlets and signs


PlacePlace

Gift shopsGift shops 24 PharmaChoice24 PharmaChoice®® stores stores SaskMade MarketplaceSaskMade Marketplace®®

Shipped by private courier Shipped by private courier Contacted via gift showsContacted via gift shows

http://www.pharmachoice.com/images/front-logo.gif

http://www.sfpa.sk.ca/img/programs_market_saskmade.gif


SWOT: StrengthsSWOT: Strengths

Human ResourcesHuman Resources Ease of communication with staff Ease of communication with staff Excellent knowledge base of fudge industryExcellent knowledge base of fudge industry Commissioned sales personal Commissioned sales personal

Physical ResourcesPhysical Resources Low capital investment Low capital investment Leasing the buildingLeasing the building

Financial ResourcesFinancial Resources Just in time inventory turnoverJust in time inventory turnover Line of credit available in case of low cash flowLine of credit available in case of low cash flow


SWOT: WeaknessesSWOT: Weaknesses

Human ResourcesHuman Resources Executive and Sales Rep. have overlapping positions Executive and Sales Rep. have overlapping positions Consistency of product and packagingConsistency of product and packaging

Physical ResourcesPhysical Resources Low capital investment Low capital investment Limited expansion potential with a leased buildingLimited expansion potential with a leased building Product has to be set at a certain temperatureProduct has to be set at a certain temperature

Financial ResourcesFinancial Resources No accounts receivable at gift showsNo accounts receivable at gift shows


SWOT: Opportunities and SWOT: Opportunities and ThreatsThreats

OpportunitiesOpportunities Provide an alternative to chocolate – niche marketProvide an alternative to chocolate – niche market Other retailers can follow the gift stores, PharmaChoice, Other retailers can follow the gift stores, PharmaChoice,

SaskMade Marketplace SaskMade Marketplace Sucrose free product to diabetics and dietersSucrose free product to diabetics and dieters

ThreatsThreats No barriers to entry for competitionNo barriers to entry for competition Healthier consumption choicesHealthier consumption choices


CompetitionCompetition

Cote D’orCote D’or®®

PoulainPoulain®®

LindtLindt®®

Bernard CallebautBernard Callebaut®®

Laura SecordLaura Secord®®

CadburyCadbury®®

HershyHershy®®


Balance Sheet Balance Sheet

Assets LiabilitiesCurrent Assets: Current Liabilities:Cash 4,996 Accounts Payable 9,180 Accounts Receivable 9,367 Total Inventories 7,335 Long-Term Liabilities:

Total Current Assets 21,697 Long Term Debt -

Long-Term Assets: Total Liabilities 9,180 Buildings, Machinery & Equipment 18,400 Accumulated C.C.A (13,725) Owner Equity

Total Long-Term Assets 4,675 Owner Equity 50,000 Retained Earnings (32,808) Total Owner Equity 17,192

Total Assets 26,372 Total Liabilities & Owner Equity 26,372

Chocolate Moose Fudge Factory Balance Sheet

as at August 31, 2007


Year 2007 2008 2009 2010 2011Sales 110,000 132,000 158,400 190,080 228,096 COGS 300,982$ 291,367$ 359,676$ 410,493$ 491,786$

Gross Margin (16,082)$ 57,350$ 67,154$ 111,947$ 147,681$

Expenses 66,725$ 65,024$ 66,853$ 71,019$ 71,197$

Income b/f Taxes (82,808)$ (7,674)$ 301$ 40,928$ 76,483$

Income Tax -$ -$ -$ -$ 2,723$ Net Income (82,808)$ (7,674)$ 301$ 40,928$ 73,760$

Beg. Retained Earnings

50,000$ (32,808)$ (40,482)$ (40,181)$ 747$

Dividends -$ -$ -$ -$ -$

End. Retained Earnings

(32,808)$ (40,482)$ (40,181)$ 747$ 74,508$ Ending Cash 4,996$ 4,002$ 4,805$ 44,584$ 115,674$

$137,172Internal Rate of Return on Equity InvestmentExternal Rate of Return on Equity Investment

Net Present Value (NPV)38.63%33.32%

Statement of Financial ResultsStatement of Financial Results


FinancialsFinancials

Sensitivity of Net Present Value: Price and Sales

$(15,262)

$(159,253)

$137,172

$297,213

$466,268

-10%

-5%

0 (Base)

5%

10%

Percen

tag

e C

ha

ng

e i

n P

ric

e

an

d S

ale

s

NPV


FinancialsFinancials

Sensitivity of Internal Rate of Return: Price and Sales

18.0%

38.6%

61.6%

88.7%

-3.6%-10%

-5%

0 (Base)

5%

10%

Percen

tag

e C

ha

ng

e i

n P

ric

e

an

d S

ale

s

IRR


Questions ?Questions ?

www.fudgefix.com

Business Plan Business Plan Prepared By: Amanda Hoehn Jeremy Olthof Leigh Anderson Glenn Stacey.

Documents

college of agriculture

bioresources product

n30 slide

retail market slide

bioresources human resources

bioresources inventories

bioresources swot

bioresources site layout