Business plan for Pop-up Kitchen and Supplies in Hawaii

Equipment Needed

Market Analysis

Situational Analysis

Target Market

Segmentation

Geographical Segmentation

Demographic Segmentation

Market Targeting

Differentiation and Positioning

Strengths and Weaknesses of Venture

Market Opportunities and Threats

Competitor Analysis

Management Plan

Founders Experience

Organizational Chart

Financial Plan

Project Investment

Startup Costs

Essentials of financial Plan

Pro forma income statement

Pro forma Balance Sheet

Assessment of Risk

External risks

Financial Risk

Contingency Plan

Production Plan

Manufacturing Process

Machinery & Equipment

Equipment Required

Operational Plan

General Operating Hours

Flow of order for goods and services

Layout

Human Resource

Technology utilization

Abstract

The paper is a business plan for a new business which is aimed to create a new product in the U.S. market. The paper discusses the various aspects of the business plan. It includes the market analysis, operational plan, marketing plan, financial plan and the risks associated with the business.

Executive Summary

I would like to introduce the readers to the business plan of a pop up kitchen. The name of the company would be Pop-up Kitchen and Supplies, which is self explanatory of the business. The company will be initially located in Hawaii and will operate from home, after a while it is planned to achieve growth and will expand into different states.

The company will go ahead with its operations as soon as it gets its finances through owner's equity and bank borrowings which will take about 2 months of processing to register the business. The company will operate as a sole proprietorship. The business will be based on a B2B model as its customers would be businesses that are operating in the food business.

The business will provide its customers with a unique channel to operate in and will provide them an opportunity to test out their products in a completely new market without incurring many costs. As the costs of the food business are rising it is hard for the food and beverage businesses to expand. Expansion requires big budgets and the risk associated with the failure of expansion have limited the number of expansions in the past few years. This situation provides a unique opportunity to establish a pop up kitchen which can solve the problems of food businesses. The potential for the business is enormous.

Introduction

Name and Address of Business

The name of the business will be kept viewing the present business scenario. There are many companies that are operating in the same category. However the nature of the business is entirely different from any other current business. "Pop-UP Kitchen and Supplies" will be the name of the business; the name clearly tells what the business is all about.

The business will be setup in Hawaii on a small scale from home. After establishing the business from home it will be gradually expanded in different states through acquiring property in prime locations for the business.

Web Address:

www.P-upkitchen.com

Nature of Business

The business is centered on the idea of pop-up kitchen. The company will provide its customers with a pop up kitchen along with all the necessary kitchen supplies. The business will basically cater the new entrants in the food business who wants to try out their product on a small scale to reduce the risk of failures.

Statement of financing needed

Initial project investment is estimated at $10,500. Out of this amount, $3,500 would be the personal equity of the partners while $7,000 would be financed through a 5-year debt secured by the business and personal assets of the partners in equal proportion.

Statement of Confidentiality of report

This report is confidential and is the property of the owners. It is intended for use only by the person to whom it is transmitted and any reproduction or divulgence of any of its contents without the prior written consent of the company is prohibited.

Mission

Pop-UP Kitchen and Supplies will provide a great opportunity for its customers to lower their costs and provide a new channel for business which was non-existent before.

Product

"Pop-UP Kitchen and Supplies" provides portable kitchens with all the required kitchen supplies. It is a new and an impressive way of capturing the target market by providing a unique opportunity. The product will be based on remodeled shipping container which will carry all the necessary kitchen supplies. It will basically t the new food businesses (including the beverage businesses) which are entitled to use pop up kitchen initially in their business to test a particular market. The trial will enable them to try their products in a market and then launch their restaurant with a better understanding of the market. Our company will reduce their risks by providing them a platform to have a trial of their product.

The business will also cater to those food business that want to operate from abroad on a small scale just to promote their traditional food or cater to the overseas population of their country living in United States. Through the pop kitchen such businesses will not have to make heavy investments in order to fulfill their objectives.

Location

The business will be setup in Hawaii on a small scale from home. After establishing the business from home it will be gradually expanded in different states through acquiring property in prime locations for the business.

Equipment Needed:

A detailed description of the equipment required is given in the production plan. Pop up Kitchen equipment will include:

1. Shipping Containers

2. Kitchen equipment

3. Decorations

4. Crockery

5. Other equipments (such as electrical appliances on additional costs)

Market Analysis

Situational Analysis:

The food and beverage business is highly popular in United States. The major sources of new innovation in this industry are the international fast food chains and small scale food businesses. Many local chains have developed around the main states to compete with international chains and provide menu items that appeal to the unique regional tastes and habits.

The rapid rate at which the food industry continues to add outlets is as much a reflection of consumer demand for convenience as it is a reflection of demand for food itself. Expanding the number of outlets increases accessibility, thus making it more convenient for consumers to purchase a variety of food. The growing food business provides a great opportunity to our pop up kitchen business.

Target Market:

As far as targeting the marketing is concerned, this is divided into four steps:

1. Segmentation

2. Targeting

3. Differentiation

4. Positioning

Segmentation

Pop up Kitchen and Supplies has segmented the heterogeneous market on the basis of Geographic and Demographics features.

Geographical Segmentation

We plan to open our operations in Hawaii initially. Since it's a new venture, we plan to focus on online order and later when the business gains popularity, then we'll open it in other states as well.

Demographic Segmentation

Prices will be also charged for the unique services we provide. So, our target market will be the new food businesses and those food and beverage businesses that are in their expansion phases.

Market Targeting

Pop up Kitchen and Supplies will be interested in segments that have the right size and growth characteristics.

Founders Experience

The founders have an experience in dealing with the food business which helps in understanding the nature of the business. The founders also possess the required technical skills for the business to make it a success.

Founders have been working on the project since the past two years and have been analyzing the various factors which can affect the performance of the business. Founders are to be graduated from business school which has groomed them to operate efficiently in the business environment. The purchase of the equipment and machinery will be outsourced and that can pose a threat to the cost structure.

Organizational Chart:

Director Accounts

Director Operations

Director HRM

Director Marketing

Director Finance

Accountant

Web Designer

HR Officer

Investment Manager

Sales Manager

Service Manager

Customer Relations Manager

Above is the planned organizational chart for the business, initially the human required for the business would be less but as the business grows, more personnel will be added to the organizational chart.

Financial Plan

The Company will follow the four main objectives they are:

Profitability

Liquidity

Efficiency

Stability

Project Investment

Item

Cost ($)

Construction cost (all inclusive)

3,000

Shipping furniture & decor

1,500

Equipment & machinery

1,500

Advance rent

2,500

Preliminary expenses

Working capital

1,500

Total

10,500

Pop up Kitchen and Supplies is seeking $7,000 in 5-year, long-term debt financing secured by a combination of business and personal assets. These funds combined with $3,500 of personal equity of the partners will amount to a total of $10,500 for the project investment. All the funds would be loaned to the founders. The assets will be owned by the founders and will be held accountable in case of redemption due to non-payment of the long-term loan.

Startup Costs

Following startup costs will be incurred:

START-UP COSTS

AMOUNT ($)

Office security deposit

10,000

Add: Advance Rent for 3 months

3,000

13,000

Furniture & Shelves

25,000

Telephone Connection

1,000

Security System (CCTV, LCD etc.)

5,000

Air Conditioner

6,000

Miscellaneous

10,000

Staff cost (peons)

7,500

Certification cost

Designing Cost

3,000

Domain Cost (5 years)

Bandwidth Cost

1,500

Total

$73,600

Essentials of financial Plan

For the next 1 year, profits will be reinvested into the business.

The main revenue will be generated by putting ads and promotions for its clients.

Total number of clients: 50

Pro forma income statement

Pop up Kitchen and Supplies

Income Statement

For the year ended

PARTICULARS

AMOUNT ($)

Sales.

24,000

Less: Cost of goods sold.

(6,620)

Gross Profit

17,380

Less: Operating Expenses

Telephone bill

6,000

office supplies

1,200

Repair and maintenance

1,800

selling and admin expense

1,800

interest expense

1,250

Legal & Audit Expenses

Total Operating Expenses

12,250

Operating loss/profit

5,130

Less: Taxes

(1,025)

NET PROFIT

$4,105

Pro forma Balance Sheet

Pop up Kitchen and Supplies

Balance Sheet

As on December

ASSETS

EQUITY

Current Assets

Current Liabilities

Cash

15,348

prepaid rent

3,000

deposits

1,000

capital

26,150

Non-Current Asset

net Profit

4,100

Furniture

2,500

Computer Equipment/air conditioner / sec system

4,100

Certificate cost

Design cost

3,000

Domain cost

TOTAL ASSETS

$30,350

TOTAL EQUITY

$30,350

Assessment of Risk

External risks

The business environment can have a big impact on our business' long-term future. A single political event of importance can have an adverse impact on the business environment. One way to overcome the problems posed by the political situation is to get the business insured against political risk. Moreover, a change of government may lead to an adverse change in the tax rate or the rules and regulations governing the business.

Economic variables also influence the outcomes of the strategies that we have drawn up. High food inflation, high oil prices, energy and food shortages, and high interest rates also pose a threat to our business. The business is heavily dependent on the correct execution of technology. The high costs associated with maintenance and obsolescence of technology will be a problem.

Financial Risk

The business will find it difficult to attract investors to a new venture because the amount of investment we need is a large amount.1. In analyzing costs, we find that our cost of goods sold account for 73% of our revenue. Any high rise in inflation will result in deteriorating gross profit, hence active management of supplies needs to be carried out. High amount of current assets indicate excess liquidity hence better cash management is required. The return on assets and equity are negative in the first year of operations.

Contingency Plan

Save at least 20% of the monthly earnings as reserve money for any unforeseen circumstance like raw material prices shooting upwards or any natural disasters etc.

Production Plan

Manufacturing Process:

Pop up Kitchen will provide its customers with a shipping container and all the required kitchen supplies of the highest quality. The container will also be decorated properly to give it a differentiated look from its competitors. The company will buy shipping containers from Maersk Line, who provides the best quality containers that last for a long period of time. The kitchen supplies will be bought from Ace Mart. Container and kitchen supplies will be bought in bulk therefore the company will get discounts. A detailed plan of all the machinery and equipment required for the business is given below.

Machinery & Equipment:

Machinery and Equipment

Preferable

Brand

Stove

GE Appliances

Deep Freezers

Whirlpool Corporation

Cutlery Set

Cutco Cutlery

Display Racks

Any brand

Air Conditioners

Microwaves

Lighting and Fixtures

Interior and Furniture

Toasters

Sandwich Press

Sandwich Grills

Samsung

LG

Samsung

LG

Black and Decker's

Black and Decker's

Black and Decker's

KITCHEN

Equipment Required:

1. Kitchen Equipment

23

Commercial Fryers

Hot Food Storage

Steam Equipment

Commercial Ovens

Wood Cabinet Carts

Work Tables

Tissue rolls

Cutlery sets

Freezers

Generators

Microwaves

Waste bins

2. Cooking equipment

Toasters

Sandwich Grills

Sandwich Press

3. Kitchen apparels

Aprons

Bandannas

Caps & Hats

Chef Coats

Chef Hats

Face Masks

Finger Guard

Kitchen Gloves

4. Stationary

Register rolls

Sales book

5. Shipping Containers

Decoration Items

Paint

Operational Plan

General Operating Hours:

The business will be open daily from 10:00 AM to 9:00 PM for business dealings and customer facilitation.

Flow of order for goods and services:

The operations of Pop up Kitchen and Supplies would be multi-faceted and would involve the following:

1. Ordering of shipping containers and kitchen supplies

2. Servicing customers

3. Controlling and co-coordinating the activities

4. Maintenance of its equipment and facilities

5. Ensuring that inventory is sufficient.

Layout

The layout of the shipping containers will be entirely customized according to the requirements of the customers. There will be some general patterns available to the customers if they want to select it from there. The customization will be based on outsourcing and the customers will be charged more for availing the customized services.

Human Resource

Initially the business will not require much of a workforce. There will be an executive person who will be responsible for controlling and co-coordinating the activities. He will be responsible for running operations, planning and maintaining quality standards. He will also be responsible for evaluating business periodically.

Technology utilization

Because we are a start-up venture only, we won't be investing in heavy information systems. A desktop computer will be needed which will have a software specific to our business. This will help us in keeping track of our order status, pending orders, stock and inventory and payments and other details.

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