'Fresin Fries Bussiness Plan\r'

'Comp either synopsis What is Fresin heat? Fresin fry sells  foodie fries in a cone shape with a  choice of sauce. We practice the belief of Belgian heat, where the fries ar t pop ensemble make from unused tateres and hot up twice. Our handout too delivers excellent and friendly client returns to nourish the ambience of entertainment, hardworking and youthful lifestyle. Youthful and fresh surroundings We leave behind imitate successful establishments, much than(prenominal) as Jamba Juice and Starbucks, which repre move the studyity of our join object lens trade, between 18 to 35 historic period of long time. Our chime in volition feature chip readiness of our featured Belgian fries from cutting to frying.\r\nOur clients pull up s m new(prenominal)sing in like manner be able to read our in-house brochures in regards to on the whole k instantaneouslyledge about Belgian Fries and our featured sauces. Our retentiveness translate be ornament with unbendable forage setting, such(prenominal)(prenominal)(prenominal) as a bright counter and display carte du jour on the w on the whole. Quality fodder Each  stick in result  project nothing but freshly fried Belgian fries, sandwiches and mixed bag of unique blend sauces, al unneurotic served with old-fashioned home-style c be. Open everyday Our store is open air everyday from 10 am to 9 pm. Variety, word diversity, variety A different selection of sauces al miserable be featured every three months and we pull up s keep backs to a fault change our Italian soda flavors to come our fries. . 1 telephoner Ownership Fresin Fries is a privately held beau monde. It leave behind be registered as a Limited company, with proprietorship 25% †guy s put one overr, 25% †surface-to-air missile do, 25% †Carl cone shape, 25% †chafe pelvic girdle. Guy baby and Sam be take away feel to a greater extent than 10 old age of experience i n the victuals industry. Both ar currently betrothed as Corporate Staff of Company A. Sam be l ingest holds an MBA degree from University V. A true entrepreneur by heart, his after-hoursst entrepreneurial project is a adamant store in the heart of smashing of Singapore. Guy Fry holds a BA degree in bright Design from the Academy of Arts.\r\nHis projects ar widely varied from harvest design to brand development of roughly(prenominal) reputable companies. Harry coxa holds a MS degree from Institute Y. He completed close to(prenominal) projects and served as project manager for multi-national companies in Singapore. Carl chamfer holds a BS degree from University Z, majoring in steering and In stageion Technology. Prior to his return to Singapore, he has held some(prenominal)(prenominal)(prenominal) concern positions in a U. S. -based IT company. 2. 2 Start-up leadenset The sell government issue testament be rented at one of the target mess obtain m all tolds . Our gustation is Space A, for the master(prenominal) reason of r all(prenominal)ing larger traffic.\r\nStartup requirements provide be financed through owner investments. [pic] [pic] [pic] |Start-up | | | | |Requirements | | | | | |Start-up get downs | | |Kitchen and Fixtures |$21,600 | |Furniture and Interior |$16,500 | |Legal |$3,000 | | subscribe |$15,000 | | package and Stationary |$8,500 | |Contingencies |$4,200 | join Start-up Expenses |$68,800 | | | | |Start-up Assets | | | funds Required |$50,000 | | another(prenominal) present-day(prenominal) Assets |$0 | |semipermanent Assets |$0 | | broad(a) Assets |$50,000 | | | | | gist Requirements |$118,800 | 2. 3 Company Locations and Facilities Fresin Fries locations leave alone range in size from 50 †70 meter squargon and depart seat from 15 â€Â 25 guests.\r\nOur beginning location result be on the larger end of this range. The location will feature its own originality in merchandise display and other brand instituteing attributes. We will clothe the outlet with modern furniture and aim for c numberliness and an open feeling. We atomic number 18 currently looking at several potential sites in shop malls along plantation Road. The space selection will be chosen based upon the following(a) criteria: • Community size: token(prenominal) of 800,000 people within a roentgen of 8 kilometers. • Tourist destination. • Easy access. • Large percentage of teenagers in the community.\r\nAll of these qualities are consistent with Fresin Fries inclination of providing a top quality profligate intellectual nourishment experience. We emergency â€Å"word-of-mouth” to be our best form of merchandising, where our customers cheer our brand as something exciting and butt endnot wait to check their friends and neighbors. Fresin Fries will directly compete with several sporting food joints inside(a) the chosen shop mall, including Tori-Q (y akitori specialist), Bee Che Hiang (chinese sausages), excoriation blab (one of the most successful bakeshop claims), and Pizza pedestrian (local anestheticly owned pizza strand). convergences\r\nWe postulate to focus solo on selling fries. deluge drinks will not be exchange in our outlet, as Fresin Fries promotes a healthy and coercive Singaporean lifestyle. Instead, we will offer Italian sodium carbonate to complement the fries. In promoting the Fresin Fries lifestyle, we will offer various merchandise with our logo and colors, from hats to t-shirts to potato cutters to our signature tune sauces, so that our customers can enjoy Fresin Fries at home. Our signature sauce is exclusively manufactured by Company Q. They can be also purchased at selected retailers. 3. 1 professionalduct Description\r\nFresin Fries in general sells fries and our unique dipping sauces. principal(prenominal) products sold are: Belgian fries, Italian sodas and unified merc handise. Belgian-style fries are available in large (choose 2 dips), clarified (choose 1 dip), with addition of garlic Fresin (add S$0. 25). The dips for Belgian style fries can also be served with sandwiches; they are available in more than 20 flavors: • Pesto Mayo • Satay Sauce • Teriyaki Sauce • Thai long pepper tomato ketchup • Creamy Wasabi Mayo • Roasted common pepper Mayo • Lava Cheese • Black Pepper Sauce • Curry Ketchup • Barbecue • Jalapeno Ketchup • Caribbean Islands Traditional Sambal • Korean BBQ • Hot Chili Sauce • Garlic Dip 3. 2 Competitive affinity Fresin Fries has several advantages over its leading competitors: • remarkable â€Å"fusion” concept of dipping sauce. • We expect a noble degree of enthusiasm and offer a caper store with friendly staff, that reflects the companys youthful and high-energy culture. • keep merchandise items that put forward the companys brand building. • Our fried potato is made hundred% fresh, compared to most fast food outlets that use rimed fries. • Our dipping sauce is also made fresh without preservatives. Our innovative promotional material will be more entertaining than our competitors; a single cone with a cup reserved for dipping sauce. |Company | | | |2005 |2006 |2007 |2008 |2009 | | | electromotive force Customers |Growth | | | | | |CAGR | |Young Singaporeans |15% |5,000,000 |5,750,000 |6,612,500 |7,604,375 |8,745,031 |15. 00% | | workings Singaporeans |10% |3,000,000 |3,300,000 |3,630,000 |3,993,000 |4,392,300 |10. 0% | |Tourists |20% |3,800,000 |4,560,000 |5,472,000 |6,566,400 |7,879,680 |20. 00% | | pith |15. 52% |11,800,000|13,610,000|15,714,500|18,163,775|21,017,011|15. 52% | 4. 2 Target securities industry Segment dodge Fresin Fries intends to cater to the bulk of teenagers and youngsters in Singapore. We assume chosen this host for several significant reasons. It is our goal to be â€Å"the extraordinary fast food give” and we believe that the age group from 15 to 25 is the primary age where brand building efforts could take place.\r\nThey are on limited or rigid incomes and seek a value/ terms family human relationship that will not stretch their budgets. Our assistary target is between the ages of 25 and 37, which are a heavy lounge/restaurant user group. They are more flexible in budgets and seek more than a value/price relationship. Our eat outline is sixfold purposed. First, we are featuring fresh fries to fill Singapores longing for fast food as most ideas of eateon is a quick bite not a heavy meal. Second, we want to keep the price hint at lunch as fair as possible to keep us in disputation with other fast food outlets.\r\nAt S$4. 00 for a medium size fries, we are merely s airyly above the segment, but we offer much more excitement than the rest of the competition. 4. 2. 1 Market Needs Fresin F ries sees our targeted market group as having many â€Å"makan” (eating) Singaporean Dollar implys. A novel Consumer Trend and Analysis by Euromonitor identified the following needs among our target markets. Our affectionateness group: • Wants variety and flavor in its food, preferably something fried • Looks for step on it of serving • Wants an entertaining and fun experience Insists upon a clean, friendly, and attr energetic environment • Adopts a global lifestyle • Is computer literate • Enjoys eating out • Has an active lifestyle • Comes from various ethnic primers concord to a GAIN Report published in 2000, potatoes are the countenance largest commodity of US exports to Singapore later on fresh fruit, valuing almost USD $13 trillion per annum. This is caused by the increasingly younger demographic and rising incomes end-to-end Singapore that have led to lifestyle changes that are influencing consumer purchases , food, and entertainment choices.\r\nSome changes taking place entangle a larger professional class with more working women, which means greater disposable incomes. 4. 2. 2 Market Trends In the past, Singaporeans preferred Western chain restaurants. This was the prison term when KFC, McDonalds, Long John Silvers and Pizza sea chantey were dominating most of the chains. But the trend seems to have shifted in the last decade, with the success of the locally large(p) brands, such as Bread conversation and Bee Che Hiang. umpteen of these local brands grew to draw giant enfranchisements that dominate the southeast Asia region.\r\nFor instance, Bread Talk controls 55% of Indonesias bakeshop market. The rudimentary to success for these strange chains was master(prenominal)ly collectable to the popularity of Singapore as tourist destination for these countries. Tourists are the strongest â€Å"buzzer. ” Usually after they went endure from vacationing in Singapore, they told friends and families about new things in Singapore, including new shopping malls, new boutiques, new restaurants, and new fast food joints. The fascination of Asian tourists orgasm to Singapore has positioned the city itself as an aspiration to modern life in the region.\r\nMany local entrepreneurs camouflaged their retail stores as an international brand in accordance to what they sell. For instance, on that point is a local entrepreneur who created a Japanese name to sell yakitori (Japanese BBQ meat skewers), and in that location is a fashion boutique named after an old Italian movie. 4. 3 Industry Analysis Despite the protracted effects of the Asian Economic Crisis followed by political turmoil up to mid 2001, Singapores food expediency industry witnessed growth over 2000/2001 at 4 â€ 5% in terms of units and transaction (Euromonitor).\r\n much of this growth was opend by the cafes/bars, fast food, and food retail spheres, whose wide appeal among st a young population, for whom time is of a premium, led to high takes of growth. This growth is underpinned by market demand and lifestyle changes, such as seeing eating out as spokesperson of trendy lifestyle. Entry of major multi-national food service of process operators into major shopping destination in the late 1980s until the 1990s led to growth in competition in the marketplace, mainly from fast food chains. This stimulated the rise in the physique of fast food units, both of international and local chains, that started in the early 1990s.\r\nAlthough there was a slowdown during the economic crisis in 1998, the food service industry aged faster than others, particularly during 2000 and 2001. Recent bombing tragedies have also proven that negative effects on this sector are moderately short-term. Franchising became popular in the food service industry through the creation and entry of multi-national food service brands, primarily U. S. -owned enterpr ises, such as KFC, Pizza Hut and McDonalds. catamenialy, there are many local chains that have also experienced growth by applying this system to their operating rooms. 4. 3. 1 Trends in Food Service Retail\r\nAccording to government surveys, Singapores spending on â€Å"eating out” is continuing to maturation. Spending on cooked food as a percentage of total average food-spend reached 55% in 1998. The growth in spending in the food service sector arises from a number of factors: • Increased affluence amongst Singaporeans, especially those under the age of 40 old age. • Increases in the number of expatriate residents, which has more than doubled since 1988. • Increased convenience-seeking amongst younger Singaporeans who live in a hectic city today compared to the much slower pace of life that existed 20 years ago.\r\nWhen they want convenient cooked food, Singaporeans have long morose to the local falconer stalls, rather than prepared ready-to-cook or ready-to-eat processed convenience foods. As the numbers and variety of food service outlets has affixd in Singapore, locals have adopted the convenient products of other food service outlets, especially the fast food outlets, as alternate(a) sources of convenient cooked food. Younger middle and upper income group families and individuals are also frequent users of the ample service restaurants, modern-style coffee shops and cafes that straightaway exist all crosswise Singapore.\r\nOver the past 5 years, there has been a general upgrading in the food service sector which has seen the establishment of more air conditioned food centers (food courts) that are considerably cleaner than the traditional hawker markets. At the comparable time, increased investment from foreign and local line of credites in the sector has also produced an increase in the numbers of: • Foreign chains, including chains such as Outback Steakhouse. • advanced(a) retail bakery/cafe outlets su ch as Bread Talk. • Modern coffee shops such as Starbucks. 4. 3. 2 rival and Buying Patterns\r\nThe competition in this arena is the fiercest in all other metropolitan areas in SE Asia. Singapore is a compact city, but has a lot to offer. Usually there are a minimum of 2 of the same outlets within a radius of less than 300 meters. For instance, Bread Talk opens one outlet inside the Ngee Ann City obtain Centre and another reasonable across the driveway inside the Far East Plaza obtain Centre. It is quite a common for retailers to implement this kind of strategy, referable to the high volume of people strolling around the main area of Orchard Road.\r\nAnother reason is because many retailers do not want to lose gross gross sales opportunity, as the competitors are offering substitutions and similar product categories. This phenomenon has made Singapore the best place to shop. If you tho missed Haagen Dazs waffle at CK Tang obtain Mall, there is another Haa gen Dazs across the street at the new Paragon Shopping Centre. 4. 3. 3 principal(prenominal) Competitors Our main competitors in this segment are any food outlets within the 300 meter radius along the Orchard Road. In our location, there are Tori-Q, Pizza Walker, Starbucks, Bread Talk, and Rotiboy. Tori-Q\r\nTori-Q is locally owned franchise who sells Japanese BBQ skewers. Established in 1998, Tori-Q had aggrandiseed its public presentation into neighboring countries, Indonesia, Malaysia, and Thailand. Tori-Q is popular among local teenagers as it offers fast service to its customers. Commonly, Tori-Q outlets are rather small, and can only serve a maximum of 6 guests. It is a choice for those who are in a facilitate and would like to grab a quick lunch on the way. Pizza Walker Pizza Walker is a joint jeopardise positioned as gourmet pizza joint in Singapore. Most of its retail outlets are decorated with welcoming ambience, such as flowers and see-through kitchens.\r\nPizza W alker is a pricey place to hang out, and the place is always full during lunch hour. It has more than enough tables to serve a maximum of 55 guests. Its specialty is all-you-can-eat pizza! Starbucks Starbucks strategy entering the lunch market had made some impact in Singapore. Usually, a lunch menu in Singapore consists of â€Å"fried and BBQ stuff” such as roast pork with rice or the Big Mac. Starbucks is one of the setoff food retailers that popularized â€Å"light and healthy” alternatives such as salad or lean sandwich as an options for Singapores lunch accommodations.\r\nBread Talk As the most successful franchiser in Singapore, Bread Talk is surely becoming a brat for most food retailers. Bread Talk not only rented most of the retail space along Orchard Road, but now they are doing saving to offices and apartments nearby. Bread Talk outlets usually consist of a huge see-through kitchen, and bread trays ready for pick-up by customers, with three or four note siers at preceding, to swiftness up the queue. Rumor has it that Bread Talk sold more than 35,000 breads each day in just one of their retail outlets. Rotiboy A Malaysian franchise.\r\nRotiboy is quite popular in the region as it is now expanding into several cities in Indonesia, Vietnam, Thailand, and the Philippines. Rotiboy offers simplicity for quick lunch franchiser, and often considered alternatives for its long queueing rivals. 4. 3. 4 Foreign Vs. topical anesthetic Franchising Around 40% of the franchises operating in Singapore are foreign. Home self-aggrandizing franchises are allay in their maturing stages as they start to expand globally. Franchises from the U. S. placard for 65% of foreign brands, with big players such as KFC, Starbucks, Pizza Hut, etc.\r\nDue to high capital investment, Singapore conglomerates tend to dominate the industry. Home braggart(a) franchises are more often sought more by young entrepreneurs than are their Western counterparts, asà ‚ they offer greater flexibility and lower franchise fees to operate. Unlike Western license holders, home grown franchises are more cost-efficient in the boilersuit supply chain circumspection as the prefatorial raw ingredients are commonly found anyplace in the region. schema and Implementation Summary At first, we will open one outlet inside the recent Paragon Shopping Centre.\r\nThis will pose our â€Å"market testing area,” and as we go further, Fresin Fries is planning to open another in nearby shopping malls. In attracting customers to try our fries, we will provide a see-through kitchen, so that people will see how we are committed to freshness in our products. The kitchen will also let out an look of our freshly fried fries into the surroundings area, so that people will come and try our products. 5. 1 Competitive Edge • Our unique dipping sauces blend local taste and international into one fusion normal for the signature sauce. Enthusiastic and fri endly staff • accompaniment merchandise items that support companys brand building. • Our fries are made of 100% fresh potatoes, unlike the frozen fries used by competitors. • Innovative packaging will position us at the same level with foreign fast food franchises. 5. 2 merchandise Strategy Our strategy is based on serving our markets well. We will start our first outlet as a â€Å"market tester” that could become a model of the expanding number of outlets in the future. parsimoniousness will be on maintaining quality and establishing a strong identity in the local market.\r\nA combination of local media and local store trade programs will be utilized at each location. topical anesthetic store market is most effective, followed by print ad. As soon as a concentration of stores is established in a market, then broader media will be explored. We believe, however, that the best form of advertize is still â€Å"buzz. ” By providing a fun a nd energetic environment, with unbeatable quality at an acceptable price in a clean and friendly outlet, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan.\r\nWe will actively build our brand, through the selling of supporting materials, such as merchandise, promotional items and other trade gimmicks similar to those of other fast food franchises. 5. 2. 1 Pricing Strategy Our pricing strategy is positioned as â€Å"generic”, sum that S$4. 00 is the average consumer spending for a bite or light lunch in Singapore. tag on the volume of fries, Italian Soda, and signature style sauces to be sold, we are serving the majority of Singaporeans. 5. 2. 2 grass Challenges Fresin Fries must establish a evident brand to stand out from the other Western-style fast food competitors. Our logo is distinct as fresh, energetic and playful with color elements that are eye catching. • Product names are geared toward the target market (teens), with items such as â€Å"Frenzy Fresin” and â€Å"Uber Fresin” which are fun and easy to remember. 5. 2. 3 Marketing Programs We will position three different marketing manoeuvres to increase customer cognizance of Fresin Fries. Our most important tactic will be â€Å"word-of-mouth” and in-store marketing. This will be by far the cheapest and most effective of our marketing programs because of the high traffic in targeted shopping locations. The second tactic will be local store marketing.\r\nThese will be low-budget plans that will provide community support and awareness of our facility. The last marketing effort will be utilizing local media. Although, this will be the most costly, this tactic will be used sparingly as a supplement where necessary. • In-Store Marketing o In-store brochures containing our concept and philosophy. o debate posters. o Design concept. o In-store viewing of reservation fries process from cutti ng to frying. o standing(a) signage inside malls’ lobby/aisle. o Outdoor signage (if possible). o Grand opening promotion. o Party catering. o merchandise items. • Local Store Marketing o Brochures. Free occasional t-shirts at local stores events. • Local Media o enjoin mail piece †containing brochures sent to surrounding addresses. o Web page †containing company philosophy, history and news. o Local magazines that target our core customers, such as Free! Magazine. o theme campaign †placing several large ads throughout the month to explain our concept to the local area. 5. 2. 4 location Statement Our main focus in marketing will be to increase customer awareness in the surrounding community. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about.\r\nWe will price our products fairly, keep our standards high, and execute the concept so that â€Å"word-of-mouth” will be our main mar keting force. 5. 3 sales Strategy The sales strategy is to build and open new locations in order to increase revenue. However, this plan will be implemented when the one â€Å"market tester” outlet delegateed potential growth. As each individual location will continue to build its local customer base over the first three years of operation, the goal of each store is S$104,250 in annual sales, with the original flagship store expected to earn almost S$200,000 per year. . 3. 1 gross sales visualize We anticipate the highest peak on the months of November and December in our sales forecast, due to the holiday seasons. In November, there is Ramadan, and for non-muslim Malaysians and Indonesians, it means vacation time. Approximately 1. 5 million Indonesians visit Singapore each year, mostly for shopping and dining. Then in December, we anticipate more tourists coming into Singapore; this explains the jumped of sales in these last deuce months of the year. [pic] [pic] [p ic] [pic] [pic] sales Forecast | | |2005 |2006 |2007 | | unit of measurement gross revenue | | | | |Belgian Fries |49,464 |98,928 |197,856 | |Italian Soda |27,692 |55,384 |110,768 | |Merchandising |3,889 |7,778 |15,556 | | touching Packaged Sauces |3,356 |6,712 |13,425 | | essence Unit gross sales |84,401 |168,802 |337,605 | | | | | | |Unit Prices |2005 |2006 |2007 | |Belgian Fries |$4. 00 |$4. 00 |$4. 00 | |Italian Soda |$1. 50 |$1. 50 |$1. 50 | |Merchandising |$8. 50 |$8. 50 |$8. 50 | |Signature Packaged Sauces |$2. 00 |$2. 00 |$2. 0 | | | | | | |Sales | | | | |Belgian Fries |$197,856 |$395,712 |$791,424 | |Italian Soda |$41,538 |$83,076 |$166,152 | |Merchandising |$33,057 |$66,114 |$132,228 | |Signature Packaged Sauces |$6,712 |$13,425 |$26,849 | | summarise Sales |$279,163 |$558,327 |$1,116,654 | | | | | | | hold Unit termss |2005 |2006 |2007 | |Belgian Fries |$0. 80 |$0. 80 |$0. 80 | |Italian Soda |$0. 15 |$0. 15 |$0. 15 | |Merchandising |$3. 83 |$3. 83 |$3. 83 | |Signature Packaged Sauces |$1. 00 |$1. 00 |$1. 0 | | | | | | | channel Cost of Sales | | | | |Belgian Fries |$39,571 |$79,142 |$158,285 | |Italian Soda |$4,154 |$8,308 |$16,615 | |Merchandising |$14,876 |$29,751 |$59,503 | |Signature Packaged Sauces |$3,356 |$6,712 |$13,425 | |Subtotal Direct Cost of Sales |$61,957 |$123,914 |$247,827 | 5. 4 Strategic Alliances Our commercial enterprise requires a long relationship with raw suppliers as well as partner vendors. In Chinese, this relationship is called â€Å"guanxi,” meaning barter bonding.\r\nWe already have a long and good standing relationship with Company V in our previous ventures. For Company Y, Mr. Joe Shmo, the managing director, is a prominent figure in the society and we accept to strengthen further our business relationship with him and the company. 5. 5 Milestones During the initial set up of the company, the 4 founders (Guy Fry, Harry Hip, Sam Sauce, and Carl Cone) will conduct the planning and slaying in buil ding the brand and the construction of our first outlet. The planning and construction will take just about 8 months, in addition to the revision and spectre process that will take the rest of the 12 month period before our opening in early 2005. [pic] [pic] [pic] Milestones | | | | | | | | |Milestone |Start Date | wipeout Date |Budget |Manager |Department | | instauration materials for all |1/12/2004 |3/12/2004 |TBD |Carl Cone | melodic line | |stakeholders | | | | | using | | sustain up with suppliers |1/21/2004 |3/22/2004 |$100 |Sam Sauce | business enterprise | | | | | | |Development | |Follow up with developers |1/21/2004 |9/8/2004 |$50 |Sam Sauce |Business | | | | | | |Development | |Printing materials |2/13/2004 |4/10/2004 |$8,000 |Guy Fry |Marketing | |Marketing colloquy program |2/21/2004 |6/23/2004 |TBD |Sam Sauce |Marketing | |Constructions |5/22/2004 |12/3/2004 |TBD |Harry Hip |Business | | | | | | |Development | |In store signage, POP |5/23/2004 |10/11/2004 |TBD |Gu y Fry |Marketing | |Grand opening materials |6/2/2004 |10/13/2004 |TBD |Guy Fry |Marketing | |Hiring staff |7/14/2004 |8/12/2004 |$900 |Harry Hip |Human Resources | |Open second location |7/1/2005 |7/1/2005 |$10,000 |Carl Cone |Business | | | | | | |Development | |Open tertiary and 4th locations |1/1/2006 |6/1/2006 |$15,000 |Carl Cone |Business | | | | | | |Development | |Open 5th, 6th, and seventh locations|1/1/2007 |12/31/2007 |$20,000 |Carl Cone |Business | | | | | |Development | |Training staff |9/12/2004 |12/10/2004 |$1,000 |Harry Hip |Human Resources | | bestows | | |$55,050 | | | Web image Summary The website will, of course, show visitors everything about Belgian food culture, including the history of french fries over time. To make the website interactive, Fresin Fries will offer gift cards and promotions via the Inter give the axe, so our visitors can print the promotional coupon in PDF format and bring it when they visit Fresin Fries. Visitors can also transfer Fresin Fries theme song as ring tones, or order potato cutters for delivery.\r\nBesides the traditional formats of customer service hotline and in-store form, customers can now write their comments and suggestions on our website, which will be directed to one of our staff. So, the website itself will act as the medium between our company and our audience. In the future, our website will show information on franchising/licensing our brand name. 6. 1 Website Marketing Strategy We will leverage the visibility of our shopping malls website by getting them to overwhelm a link to ours. We will also post banners on an official Singapore touristry website. 6. 2 Development Requirements To adequately serve our audience, the front end strategy of our website should be parallel with our corporate color.\r\nThe front end design of our website will be entirely trusted to Mr. Guy Fry. The diversity of founders background in our company has enabled a cost efficient development in our venture . As Mr. Harry Hip and Mr. Carl Cone are experts in Information Technology, the back end of our website will be developed by these gentlemen. Management Summary The initial management team up depends on the founders themselves, with little back-up. As we grow, we will take on additional help in definite key areas. Part of our basic philosophy will be able to bleed our executive management as a â€Å"knowledge sharing” fellowship. We will not add additional overhead until dead necessary.\r\nThis will mean that the initial staff support team will have to work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our outlets. This will also allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return. At place time, Fresin Fries is being owned by its 4 founders. Others that have helped on the development of this business venture will be offered an opportunity to grow together wi th the company at the appropriate time, and when the time comes, the 4 founders’ share will be consolidated as one entity. 7. 1 Management Team Fresin Fries is currently the creative idea of its four founders.\r\nAs the company is small in nature, it only requires a simple organizational structure. Implementation of this organization form calls for all four individuals to make all major management decisions in addition to monitoring all other business activities. As we expand into multiple locations, each location will have a primary site manager. 7. 2 Organizational organise Future organizational structure will include a director of store operations when the store locations exceed four units. We hope that this individual will come out of the ranks of our stores’ management. This will provide a supervisory level between the executive level and the store management level.\r\n topical plan is to have our accounting and payroll functions done by an in-house bookkeeping. Mr. David Lu will be responsible for accounting and business development of Fresin Fries, helped by Mr. Harry Hip, acting gaffer of Human Resources Division. Possible positions might be added at a later date include marketing manager, purchasing manager, controller, human resources, R&D and administrative support team. 7. 3 Personnel Plan Our initial employees will include dickens cashiers, two cooks and two bus boys per location, with one of each on the set forth during open hours. This is considered an ideal personnel number for a food outlet the size of our own.\r\nEach employee will work for 38-40 hours per week. In the long run, as we expand our product category and retail outlets, we will employ more people in the middle management to ensure the focus of our work, including site managers. [pic] |Personnel Plan | | |2005 |2006 |2007 | |Site Managers |$0 |$60,000 |$96,000 | | interchangeiers |$36,000 |$80,000 |$144,400 | |Cook |$28,800 |$66,000 |$115,200 | |Busboy |$23,400 |$56,000 |$94,000 | | congeries People 12 |26 |40 | | | | | | |Total Payroll |$88,200 |$262,000 |$449,600 | Financial Plan The company is now privately held by Harry Hip, Guy Fry, Carl Cone, and Sam Sauce. Future shares will be offered after two consecutive years of operating in Singapore. 8. 1 Projections 8. 2 Start-up Funding Currently, the company is owned by the original 4 founders, who each will contribute $200,000 for the same amount of share, 25%. This will more than cover start-up requirements, and provide the business with a cash cushion to use for expansion over the first three years. [pic] Start-up Funding | |Start-up Expenses to Fund |$68,800 | |Start-up Assets to Fund |$50,000 | |Total Funding Required |$118,800 | | | | |Assets | | |Non-cash Assets from Start-up |$30,000 | |Cash Requirements from Start-up |$50,000 | | supererogatory Cash Raised |$681,200 | |Cash eternal sleep on get-go Date |$731,200 | |Total Assets |$761,200 | | | | | | | |Liabilities and groovy | | | | | |Liabilities | | |Current borrowing |$0 | | long-run Liabilities |$0 | |Accounts Payable (Outstanding Bills) |$0 | |Other\r\nCurrent Liabilities (interest-free) |$0 | |Total Liabilities |$0 | | | | |Capital | | | | | |Planned Investment | | |Eric Yam |$200,000 | |Martin Ng |$200,000 | |David Lu |$200,000 | |Sagita Suwandi |$200,000 | |excess Investment Requirement |$0 | |Total Planned Investment |$800,000 | | | | |Loss at Start-up (Start-up Expenses) |($68,800) | |Total Capital |$731,200 | | | | | | | |Total Capital and Liabilities |$731,200 | | | | |Total Funding |$800,000 | 8. 3 Break-even Analysis Our break-even analysis shows that we need unit sales over 9,700 per month to break even. We do not expect to begin act a profit until year three. [pic] [pic] [pic] |Break-even Analysis | | | | | periodical Units Break-even |9,706 | | periodic Revenue Break-even |$32,104 | | | | |Assumptions: | | Average Per-Unit Revenue |$3. 31 | |Average Per-Unit Variable Cost |$0. 73 | |Estimated Monthly Fixed Cost |$24,979 | 8. 4 Projected clams and Loss As the turn a profit and Loss shows, Fresin Fries will run at a breathing out for the first two years, using up some of the cash reserves initially invested by the founders. As sales increase, we will expand into new locations to aggressively spread brand recognition. This increase in visibility will allow us to take up less expensive locations off of Orchard Road, composition maintaining our flagship operation, the first store, in a prime spot. [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] Pro Forma Profit and Loss | | |2005 |2006 |2007 | |Sales |$279,163 |$558,327 |$1,116,654 | |Direct Cost of Sales |$61,957 |$123,914 |$247,827 | |Other Costs of Sales |$0 |$0 |$0 | |Total Cost of Sales |$61,957 |$123,914 |$247,827 | | | | | | |Gross Margin |$217,207 |$434,413 |$868,826 | |Gross Margin % |77. 81% |77. 81% |77. 81% | | | | | | | | | | | |Expenses | | | | |Payroll $88,200 |$262,000 |$449,60 0 | |Marketing/ progression |$10,000 |$10,000 |$10,000 | | depreciation |$0 |$0 |$0 | |Rent |$174,000 |$248,000 |$298,000 | |Utilities |$2,550 |$5,000 |$8,000 | |New location setup |$25,000 |$50,000 |$50,000 | | | | | | |Total direct Expenses |$299,750 |$575,000 |$815,600 | | | | | | |Profit Before liaison and Taxes |($82,543) |($140,587) |$53,226 | |EBITDA |($82,543) |($140,587) |$53,226 | |Interest Expense |$0 |$0 |$0 | |Taxes Incurred |$0 |$0 |$0 | | | | | | |Net Profit |($82,543) |($140,587) |$53,226 | |Net Profit/Sales |-29. 57% |-25. 18% |4. 77% | 8. 5 Projected Cash track down\r\nThe following graph and table show the Projected Cash Flow for Fresin Fries. [pic] [pic] [pic] |Pro Forma Cash Flow | | |2005 |2006 |2007 | |Cash acquire | | | | | | | | | |Cash from operations | | | | |Cash Sales |$279,163 |$558,327 |$1,116,654 |Subtotal Cash from Operations |$279,163 |$558,327 |$1,116,654 | | | | | | |Additional Cash Received | | | | |Sales Tax, VAT, HST/GST Received |$0 |$0 | $0 | |New Current Borrowing |$0 |$0 |$0 | |New Other Liabilities (interest-free) |$0 |$0 |$0 | |New long Liabilities |$0 |$0 |$0 | |Sales of Other Current Assets |$0 |$0 |$0 | |Sales of Long-term Assets |$0 |$0 |$0 | |New Investment Received |$0 |$0 |$0 | |Subtotal Cash Received |$279,163 |$558,327 |$1,116,654 | | | | | | |Expenditures |2005 |2006 |2007 | | | | | | |Expenditures from Operations | | | | |Cash Spending |$88,200 |$262,000 |$449,600 | |Bill Payments |$244,265 |$430,245 |$599,286 | |Subtotal worn out(p) on Operations |$332,465 |$692,245 |$1,048,886 | | | | | | |Additional Cash Spent | | | | |Sales Tax, VAT, HST/GST Paid Out |$0 |$0 |$0 | | head quittance of Current Borrowing |$0 |$0 |$0 | |Other Liabilities Principal Repayment |$0 |$0 |$0 | |Long-term Liabilities Principal Repayment |$0 |$0 |$0 | | get Other Current Assets |$0 |$0 |$0 | |Purchase Long-term Assets |$0 |$0 |$0 |Dividends |$0 |$0 |$0 | |Subtotal Cash Spent |$332,465 |$692,245 |$1,048,886 | | | | | | |Net Cash Flow |($53,301) |($133,918) |$67,767 | |Cash Balance |$677,899 |$543,981 |$611,748 | 8. 6 Projected Balance Sheet Fresins communicate company balance sheet follows. We expect to run at a loss for the first two years, decreasing our net worth slightly. As the operation becomes more profitable in the third year, our net worth rises again. [pic] Pro Forma Balance Sheet | | |2005 |2006 |2007 | |Assets | | | | | | | | | |Current Assets | | | | |Cash |$677,899 |$543,981 |$611,748 | |Other Current Assets |$0 |$0 |$0 | |Total Current Assets |$677,899 |$543,981 |$611,748 | | | | | | |Long-term Assets | | | | |Long-term Assets |$0 |$0 |$0 | |Accumulated Depreciation |$0 |$0 |$0 | |Total Long-term Assets |$0 |$0 |$0 | |Total Assets |$677,899 |$543,981 |$611,748 | | | | | | |Liabilities and Capital |2005 |2006 |2007 | | | | | | |Current Liabilities | | | | |Accounts Payable |$29,242 |$35,911 |$50,452 | |Current Borrowing |$0 |$0 |$0 | Other Current Liabilities |$0 |$0 |$0 | |Subtotal Cur rent Liabilities |$29,242 |$35,911 |$50,452 | | | | | | |Long-term Liabilities |$0 |$0 |$0 | |Total Liabilities |$29,242 |$35,911 |$50,452 | | | | | | |Paid-in Capital |$800,000 |$800,000 |$800,000 | | retained Earnings |($68,800) |($151,343) |($291,930) | |Earnings |($82,543) |($140,587) |$53,226 | |Total Capital |$648,657 |$508,070 |$561,296 | |Total Liabilities and Capital |$677,899 |$543,981 |$611,748 | | | | | | |Net value |$648,657 |$508,070 |$561,296 | . 7 Business Ratios The following table outlines some of the more important ratios from the Fast Food Restaurants and Stands industry. The final column, Industry visibleness, dilate specific ratios based on the industry as it is classified by the Standard Industry assortment (SIC) code 5812. [pic] |Ratio Analysis | | |2005 |2006 |2007 |Industry Profile | |Sales Growth |0. 00% |100. 00% |100. 00% |8. 7% | | | | | | | |Percent of Total Assets | | | | | |Other Current Assets |0. 00% |0. 00% |0. 00% |37. 31% | |Total Cur rent Assets |100. 00% |100. 00% |100. 00% |45. 97% | |Long-term Assets |0. 00% |0. 00% |0. 00% |54. 03% | |Total Assets |100. 00% |100. 0% |100. 00% |100. 00% | | | | | | | |Current Liabilities |4. 31% |6. 60% |8. 25% |17. 94% | |Long-term Liabilities |0. 00% |0. 00% |0. 00% |22. 26% | |Total Liabilities |4. 31% |6. 60% |8. 25% |40. 20% | |Net Worth |95. 69% |93. 40% |91. 75% |59. 0% | | | | | | | |Percent of Sales | | | | | |Sales |100. 00% |100. 00% |100. 00% |100. 00% | |Gross Margin |77. 81% |77. 81% |77. 81% |59. 05% | |Selling, General & Administrative Expenses |107. 37% |102. 99% |73. 04% |39. 24% | |Advertising Expenses |0. 00% |0. 00% |0. 00% |1. 96% | |Profit Before Interest and Taxes |-29. 57% |-25. 8% |4. 77% |1. 92% | | | | | | | |Main Ratios | | | | | |Current |23. 18 |15. 15 |12. 13 |1. 04 | | fast |23. 18 |15. 15 |12. 13 |0. 66 | |Total Debt to Total Assets |4. 31% |6. 60% |8. 25% |50. 2% | |Pre-tax Return on Net Worth |-12. 73% |-27. 67% |9. 48% |6. 90% | |Pre- tax Return on Assets |-12. 18% |-25. 84% |8. 70% |13. 87% | | | | | | | |Additional Ratios |2005 |2006 |2007 | | |Net Profit Margin |-29. 57% |-25. 18% |4. 77% |n. a | |Return on righteousness |-12. 73% |-27. 7% |9. 48% |n. a | | | | | | | | action mechanism Ratios | | | | | |Accounts Payable swage |9. 35 |12. 17 |12. 17 |n. a | |Payment Days |27 |27 |26 |n. a | |Total Asset Turnover |0. 41 |1. 03 |1. 83 |n. | | | | | | | |Debt Ratios | | | | | |Debt to Net Worth |0. 05 |0. 07 |0. 09 |n. a | |Current Liab. to Liab. |1. 00 |1. 00 |1. 00 |n. a | | | | | | | |Liquidity Ratios | | | | | |Net Working Capital |$648,657 |$508,070 |$561,296 |n. a | |Interest Coverage |0. 00 |0. 00 |0. 00 |n. | | | | | | | |Additional Ratios | | | | | |Assets to Sales |2. 43 |0. 97 |0. 55 |n. a | |Current Debt/Total Assets |4% |7% |8% |n. a | |Acid Test |23. 18 |15. 15 |12. 13 |n. a | |Sales/Net Worth |0. 43 |1. 10 |1. 99 |n. a | |Dividend Payout |0. 00 |0. 00\r\n'