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Home made candy



Business Plan






















Owner:*5 (20% each partner)
Date:*28/02/2012
Intended Audience:*Mid high &above





Home made candy Overview:

Home made candy is a for-profit, limited liability corporation (LLC) that will be located in East proven in Saudi Arabia. We pr***de special candies for a party/wedding servings.


Mission Statement:

Our mission is to pr***de delicious & nice looks candies.


Objective:

1-pr***de candies for gifts in unique boxes. 2-pr***de wedding cakes. 3-pr***de sweets for parties.


Start-Up Expenses

Date: 28/02/2012

Cash Required $ 800.00
Operational Supplies $ 600.00
Furniture and Computer Supplies $ 200.00
Advertising & Promotion for Opening $ 800.00
Business Licenses & Fees $ 200.00
Starting Inventory $ 400.00
Current Assets $ 400.00
Long Term Assets $ 800.00
Miscellaneous $ 600.00
Other Starting Costs $ 400.00
Total Fixed Start-Up Costs*** $ 5200.00
Monthly Utility Expenses $ 400.00
Monthly Legal Fees $ 200.00
Total Recurring Start-Up Costs*** $ 600.00
Total Start-Up Costs $ 5800.00



Explain Start-Up Assumptions:


Description of Product or Service:

Products: Must 7 popular eastern/western sweets made by best cocking goods with the standard health environments, and unique designs/covers.


List of Characteristics for Target Customers:

East proven public specially : 1- mid high village area & above. 2- large companies employees. 3- schools&colleges. 4-Internet costumers.


Overview of Competition:

Home sweets makers & Lebanon shops will be must of our competitors, however they were in the business round 30years ago, so we need time and serious work on the quality & marketing to build our primary shop by our frozen profits. The good news. We have different type of taste & designs!


Internet Presence:

Our website will serve two critical functions, first it will pr***de potential customers with positive reinforcement that we exist, what products we sell and how to find us. Second, it will allow customers to sellect there orders and scheduling the time they would like to be ready.


Marketing Plan:

Advertising will be critically important in growing the brand; customers obviously cannot purchase products that they do not know exist. Originally we will have to be much tighter with our ad dollars and need to focus our spending where we will get the highest ROI. ******* the free sites like ******** and tweeter. ( we may begin with 50% discount to support our marketing plan.


SWOT Analysis:

Strengths

1. Competitive taste cause our costumers are same nation. 2. We can market our products as well to both males&females. 3. Our products are 10% cheaper than others.


Weakness

1. We have variable production costs which could reduce our profit margin. 2. The company only has enough capital to cover the first three months of operations. 3. The owners have to work full time on intensive marketing cause probably we will start without shop.


Opportunities

1- wide market that may help us to make Higher sales than our expectation. 2- to find another distribution channels for non main target costumers. 3-to get loan or invite silent costumers to open stores. 4-expand the business to other main cities in gulf countries. 5-franchise our company. 6-start a product line by a factory agreement for must profitable items.


Threats

1-shut down the business in beginning cause it will start illegal. 2-one or more of owners not doing the job on scheduled time. 3-unexpected marketing/operations fails.


List of Advertising Opportunities:

Our initial advertising expenditures will be very s****, as a result we're going to focus on a number of inexpensive options like word of mouth, online buzz, product reviews, commenting on blog posts, writing articles, messaging updates to our Twitter and ******** followers, free software promotions, advertising on our own website, search engine optimization, organic search rankings and keyword advertising.


Management and Employee Summary:

Home made candies is a partnerships company with acting as the principal owners and manager. Currently there are no plans to hire employees in the first year. In seconed year we plan to hire a full time sales man within opening the store.


Pro-Forma Profit & Loss Statement

Year 1 Year 2 Year 3
Gross Sales $ 50000.00 $ 144000.00 $ 720000.00
Direct Cost of Sales $ 10000.00 $ 28000.00 $ 80000.00
Total ********** $ 40000.00 $ 116000.00 $ 640000.00
Expenses
Cost of Beginning Inventory $ 400.00 $ 20000.00 $ 10000.00
Merchandise Purchases $ 1000.00 $ 2000.00 $ 3000.00
Total Cost of Goods Sold*** $ 1400.00 $ 22000.00 $ 13000.00
Advertising $ 1000.00 $ 2000.00 $ 5000.00
Payroll $ 0.00 $ 12000.00 $ 25000.00
Supplies $ 1000.00 $ 5000.00 $ 2000.00
Utilities $ 2000.00 $ 4000.00 $ 16000.00
Rent $ 0.00 $ 26000.00 $ 26000.00
Interest $ 0.00 $ 1000.00 $ 2000.00
Insurance $ 0.00 $ 2000.00 $ 3000.00
Other Expenses $ 1000.00 $ 2000.00 $ 3000.00
Total Expenses*** $ 6400.00 $ 76000.00 $ 95000.00
Gross Margin 80% 81% 89%
Net Profit Before Taxes $ 33600.00 $ 40000.00 $ 545000.00
Income Tax $ 0.00 $ 0.00 $ 0.00
Net Profit After Taxes $ 33600.00 $ 40000.00 $ 545000.00

Explain Pro-Forma Profit & Loss Statement:

We plan to sell on average of 28$ per kg.our assumptions are based on the sale of 1800 kg in the first Year then more than 5000kg next year,and more than 15000kg. It will take an entire year to break even,but After that we will investing all available capital into various advertising campaigns and product updates.


Pro-Forma Balance Sheet:

Assets Year 1 Year 2 Year 3
Current Assets
Cash $ 16000.00 $ 20000.00 $ 200000.00
Inventory $ 0.00 $ 0.00 $ 100000.00
Total Current Assets*** $ 16000.00 $ 20000.00 $ 300000.00
Long Term Assets
Property, Plant, and Equipment $ 1000.00 $ 40000.00 $ 100000.00
Intangible Assets $ 10000.00 $ 30000.00 $ 100000.00
Total Long Term Assets*** $ 11000.00 $ 70000.00 $ 200000.00
Total Assets $ 27000.00 $ 90000.00 $ 500000.00
Liabilities and Owner's Equity
Current Liabilities
Total Current Liabilities*** $ 0.00 $ 0.00 $ 0.00
Owner's Equity
Total Owner's Equity*** $ 0.00 $ 0.00 $ 0.00
Total Liabilities and Owner's Equity*** $ 0.00 $ 0.00 $ 0.00

Explain Pro-Forma Balance Sheet:

We expect our total assets at the end of our first full year of operations to equal $33000 Our total liabilities will ******* short and long term financing of $40000 and our owner's equity will equal $30000.


Home made candy Summary:

In summary, the home made candy Will sell hand made candy throw local area/online. Our start up forecast is for 5800$ which we will use to purchase equipment and starting supplies.Our first sales will probably come from face to face meetings and attending various public events. As word of mouth spreads and our cash flow increases, we will begin to market our products online through websites that sell handmade sweet.In our first year we expect to make $33,000 dollars, based on the income that other business like this have made in their first year. By our second year we expect to make $5,000 dollars and then more than $40000 next year.We will turn our first profit in the second year and plan to hire our first employees by next year.After re-paying our start-up costs and purchasing new supplies, we expect to turn a profit of more than$500,000 in year three.