food processing business plan sample

Sample Food Processing Business Plan

• December 2, 2022

FOOD PROCESSING BUSINESS PLAN SAMPLE

Food processing is the subjecting of raw ingredients under physical and chemical procedures that leave edible items as products.

Starting a food processing business comes easy if you align your passion with public needs.

Anyone familiar with Maslow’s hierarchy of needs would know the position held by Food; nothing happens without food. No wonder the food processing industry churned in over $53.9 billion in 2014 in Australia alone, and India expects to have realized $480 billion from the industry by 2020.

People seldom employ much effort into food preparation; they would rather pay for processed food. They often consider the volume of energy and time that would be consumed by culinary activities.

Since there is an alternative that is easily seen to be more effective in the sense that time and energy are vastly saved, likely, the idea of patronizing processed food would never lie far from the minds of members of society.

Busy schedules have made it imperative for individuals to patronize the market of processed foods. For this reason, the market of food processing is one that is undergoing constant expansion, raking in good returns for entrepreneurs trading in the niche.

Lucrative Niches in the Food Processing Industry

The list below highlights some great aspects to focus your small scale food processing business; you can also consider more than one area if you have the means to.

1) Baking Bread and Biscuits

From the wealthy to the average homes across the globe, tea and bread is a common breakfast; perhaps because of the fiber and energy content. Being at the other end manufacturing bread or cookies would mean so much good for your entrepreneurial story.

2) Making Custard Powder

Provided you have got a sufficient supply of corn, then you are in a great position to go into this aspect of food processing. Being a great source of carbohydrates, as well as a major diet given to babies, it’s a favorable market to venture into.

3) Fruit Processing

This section can be considered in two directions;

i) Juice Making: The fruits can be squeezed using specialized machines and their content extracted in liquid form. Containing all the vital flavor and nutrients of the fruit, the juice can be packaged and sold. ii) Fruit Wafers: Some of the fruits like banana can be sliced and dried after coating them in a honey-like paste, then the resultant tasty product launched into the market; and you might want to ask which market has a phobia for a tasty diet. iii) Making of fruit bars  4) Processed Ginger, Garlic, and Onions

You can consider sealing dried onions; not much equipment is needed. It is another business route to turn the garlic and ginger into a paste and package them. The rush for spices has induced a boost in this market. Oil can also be extracted from ginger, and this oil has large medicinal values.

5) Processed Tomatoes

Tomato can be dried and put in a packaged form that would serve the need of users for culinary activities when the need arises. By soaking the tomato in hot water, the freshness of the ordinary tomato becomes roughly equivalent.

6) Making of Beverages and Confectioneries

Think of transforming cocoa into other useful products, think of sweeteners, and chocolates.

7) Processing Meat

There are ways of doing this. But one very popular method is to dry the meat with spices, then chopped into small pieces that fit a small can; it is traditionally called ‘Kilishi’ in Nigeria.

8) Processing of Milk

Some parts of the country and the world are blessed with livestock and cows that are rich in the supply of milk. This is an indicator of the potentials of milk processing and manufacture. Only a few, easily affordable specialized equipment would suffice to start the technical part of the milk business .

9) Rice Processing

The eastern part of the country is rich in rice cultivation. A rice mill can therefore easily thrive if established. Once the necessary machinery is put in place, then what is left is great gains.

10) Popcorn Making

This business is a popular business that requires minimal startup funds. Just a good number of corn, and a heating device to pop the grains into the attractive white edibles.

11) Plantain and Potato Processing

It is common in markets to find plantain and potato chips. Well executed and modified processing and packaging can see you into the azure pastures of food processing.

Steps to Starting Your Food Processing Business

Factors that are Considered when one Goes into Food Processing Business

1) Decide on the Specific Product(s)

There is a wide spectrum of foods that are categorized under ‘processed’, this is obviously seen from the above list. You would have to decide which of the niche(s) you fall in terms of. This is the first step in starting a business of processed foods. 2) A Food Processing Business Plan based on Market Research

Feasibility studies must be conducted to find out which products entice consumers more. A business plan should be made that would entail the dimensions in which you intend to run your business, what tactics you intend to employ in your manufacturing process. Then registration of the business, then its structure.

As regards the business structure, there are some basic configurations the business can assume:

a) Sole Proprietorship b) Partnership c) Corporation

You can also decide to go into a franchise with established food processing firms. The business plan must be as detailed as possible, and it should sufficiently include information on staffing. 3) Incorporate Insurance Plans and Business Regulations

It is a great policy to make adequate provisions for insurance in your business, this is so that in case any work-related injuries are sustained by any worker within your firm, there would be adequate aid.

4) Safety Measures to Protect your Products

It must be ensured that your products have nothing on them that can raise questions or cause any health issues to consumers. Good preservatives should be used, and the products should satisfy the conditions put by special health agencies.

5) Branding, Packing, and Labeling

Professional and registered businesses are recognized by their brands. Your products must be well packaged and clearly labeled before launched into the market. This is a food market; it’s a market in which people are skeptical as to hygiene and professionalism, they are afraid of the conditions surrounding the processing of the food they are paying for.

6) Advertisement, Promotion, and Marketing

Without these business lags behind the time. Thanks to social media now that has made it a trivial affair to boost awareness about a product; we have got Facebook, Linked In, etc.

7) Supply and Distribution

It must be ensured that there are well-formed channels by which these products can reach the average retailers and final consumers; necessary for the growth of the food processing business.

Here is a sample business plan for starting a food processing company.

FOOD PROCESSING BUSINESS PLAN EXAMPLE

Food processing is a multi-billion dollar industry that has increasingly become attractive to investors. There are tremendous potentials for any investor willing to venture into this area of business.

If you are one of such investors, you will find this food processing business plan sample a great tool to use in writing your own plan. The success of any business starts with the plan.

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But before putting together a great plan, you must understand the business you are venturing into. It is based on this knowledge that you will put in place a plan of action.

While having a plan is necessary for success, this is not enough in itself. You need to fully follow or implement these plans for your business to really grow.

• Executive Summary

Foodie® is a licensed food processing business that will be located in Boise, Illinois. We produce a variety of health-friendly food products as well as contribute to the prosperity of the agricultural industry. By reducing food spoilage through the extension of the shelf life of agricultural products, farmers get a better deal for their farm produce.

We process a variety of products that include canned fruit, fruit sauces, ketchup, French fries, granola, energy bars, precooked foods, sausage, cured meat, milk (pasteurized, and homogenized), and BBQ sauce. Others include margarine, mayonnaise, corn syrup, rice syrup, and chocolate. These products will be processed using the most hygienic and health-friendly procedures.

• Our Products and Services

In addition to being a food processing business, we also provide training and advisory services to our clients and smaller food processing businesses. Our processed products include chocolate, sausage, milk, BBQ sauce, canned fruit, ketchup, French fries, granola, fruit sauces, corn syrup, rice syrup, cured meat, mayonnaise, margarine, energy bars, and precooked foods.

• Vision Statement

At Foodie® we are not in business to just make up the numbers. We are driven by a passion to establish a thriving food processing business that will compete with established brands. Within a 10-year period and with the right effort, we intend to be reckoned among the top 20 food processing brands in America. This is achievable and we are dedicated to bringing this to fruition.

• Mission Statement

To set up a flourishing brand, we need to provide our customers with quality products. Our desire is to be known as a brand synonymous with quality. All our products will undergo the most stringent internal checks. We have a fully equipped world-class quality control department that will monitor all production procedures. This is to ensure that it passes minimum regulatory standards.

To finance our food processing business, we are applying for a loan facility of $2,500,000.00. This credit comes with a monthly interest rate of 3% after which the principal sum will be payable in 8 years. 60% of these funds will be used in purchasing the necessary equipment while 40% will go into running costs for a period of 4 years.

• SWOT Analysis

An in-depth analysis of our capacity to deliver has been done. We deliberately sought to find out this aspect of our operations because we want to take off on a solid footing.

An independent business consulting firm was contracted to get the job done. The results reveal the following;

The organizational structure at Foodie® is such that guarantees stability and growth. This is because the management team is led by seasoned business people who have successfully led major companies through challenging times. They have a deep understanding of what needs to be done to guarantee success.

This is a strength we will be leveraging to guide our business to the path of profitability and growth.

In being frank to ourselves, we have identified our weakness to be the small size of our operations. This limits our reach significantly and makes us less competitive when compared with major food processing companies.

However, we consider this weakness to be only temporary. We are strategizing on adopting highly effective growth strategies to eventually over these challenges.

• Opportunities

We have tremendous opportunities before us. Some of these include increasing our production capacity. There are many more food categories we intend to add to our food processing operations. We will target those with the highest demand among consumers.

In the long term (20 years), we envision our business going into the export of our processed food products to different markets across the world.

Threats are commonplace for businesses. We have identified our likely threats to be stiff competition from major food processing companies.

Drought is also a threat we are likely to be faced with. Lately, major changes in climatic conditions have affected agricultural production. This can hurt our business too.

• Sales Projection

Sales are largely driven by the intensity and impact of marketing activities. We are adopting a robust marketing strategy to drive sales.

In achieving this, we have projected our sales over a 3-year period. This has shown positive signs as summarized in the chart below;

• First Financial Year $450,000.00
• Second Financial Year $790,000.00
• Third Financial Year $1,500,000.00
• Competitive Advantage

To achieve our target, we need to have an advantage over similar businesses. A deep understanding of the food processing industry is one area we have a tremendous advantage in. We have a collection of industry veterans in our management team as well as the workforce.

Also, our marketing team is made up of some of the best minds in the industry. This gives us a huge advantage to advance our food processing business.

• Marketing Strategies

Marketing is central to achieving our growth targets. We understand this and have committed enormous resources to put together a team of seasoned professionals who will handle all marketing activities.

We are also working closely with major companies that control the main distribution channels. These will enable our processed food products to get across to a wide consumer base.

• Target Market

Every human needs survival food. This makes our business indispensable. Through value addition, we can increase the shelf life of food products as well as reach a wider segment of the market without fear of food spoilage.

Our target market consists of busy professionals and parents, singles, and many others who have little time to prepare food.

There you have it! Our food processing business plan sample includes some of the most important parts that should never be ignored when writing a plan.

By finding out about your business, you can provide more detailed content to each of these sections. The main purpose is to have a plan that adequately reflects what needs to be done in growing your food processing business.

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Business Plan Template for Food Processing Companies

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Main Elements of Food Processing Companies Business Plan Template

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Creating a comprehensive business plan for your food processing company is essential for success. Follow these six steps to effectively use the Business Plan Template in ClickUp:

1. Define your vision and mission

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2. Conduct market research

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Create tasks in ClickUp to gather data, analyze market trends, and identify your target audience.

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Outline your product line and describe the unique features and benefits of each product. Consider factors such as ingredients, packaging, pricing, and distribution channels. This will help you position your food processing company in the market and attract customers.

Use custom fields in ClickUp to track product details, pricing, and distribution strategies.

4. Create a financial plan

Develop a comprehensive financial plan that includes projected revenue, expenses, and profitability. This should also include a sales forecast, funding requirements, and a break-even analysis. A solid financial plan will demonstrate the viability of your food processing company to potential investors or lenders.

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5. Outline your marketing and sales strategy

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Use Automations in ClickUp to automate marketing tasks, such as social media scheduling or email campaigns.

6. Review and revise regularly

Once your business plan is complete, regularly review and revise it to ensure it remains relevant and aligned with your business goals. As your food processing company evolves, you may need to make adjustments to your strategy, target market, or financial projections. Regularly updating your business plan will help you stay on track and adapt to changing market conditions.

Set recurring tasks in ClickUp to review and update your business plan periodically, ensuring it remains a living document.

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First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

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• Use the Topics View to organize your plan into different sections, such as Executive Summary, Market Analysis, Operations, and Financial Projections
• The Status View will help you track the progress of each section, whether it's Complete, In Progress, Needs Revision, or To Do
• The Timeline View will give you a visual representation of your plan's timeline, with start and end dates for each section
• The Business Plan View will provide a comprehensive overview of your entire plan, with all sections and details in one place
• The Getting Started Guide View will provide step-by-step instructions on how to use the template and create your business plan
• Add custom fields like Reference, Approved, and Section to provide additional information and track important details
• Update statuses as you work on each section to keep team members informed of progress
• Monitor and analyze your plan to ensure it aligns with your company's goals and objectives
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• Food Processor Business Plan

Food Processor

BUSINESS PLAN

12659 San Ablo Blvd. Santa Fe, New Mexico

This business plan is for a food processor within the specialty foods industry who will be using various marketing strategies to reposition their product and become a reknowned manufacturer of high quality foods. The following plan will outline the products history, competition, potential new markets, and promotional opportunities.

EXECUTIVE SUMMARY

Situational analysis, strategic plan, tactical plan.

• BIBLIOGRAPHY

Rio Grande Foods is a food processor in the specialty foods industry (SIC 2033) and sells its products on a wholesale basis to brokers, distributors, and retailers. The present product mix is one product wide and the line is two products deep. The product is Rio Grande Salsa Picante, which can be found in a 16 oz. Paragon jar in both mild and medium heat levels. The salsa is a richtextured, home style salsa which sustains the individual flavors of the all-natural ingredients. The ingredients are as follows: diced tomatoes, garlic, cilantro, onions, jalapeno peppers, salt, and a trace of organic vinegar.

Rio Grande Foods utilizes a co-packer for processing purposes. A co-packer is a company that has the facilities to process foods for public consumption. In order to be an acceptable and legitimate co-packer, the company must be certified by the Food and Drug Administration and the New Mexico Department of Health. Rio Grande Foods' co-packer is C & D Mexican Foods. Taking marginal costs and operating expenses into consideration along with primary competition prices, Rio Grande Salsa Picante's wholesale cost is $2.25. The company's primary competition has its product priced at $2.50 on the wholesale level. Rio Grande Salsa Picante can be found at three different concept stores - grade "A" grocery stores, specialty food stores, and gift shops. Rio Grande Foods utilizes mostly push strategy efforts through the use of guerrilla warfare tactics. The type of sale promotions utilized are trade oriented in the form of credit terms, discount offers, and occasional volume discounts. Consumer oriented sales promotions will be through the print media, such as point of purchase recipes and some couponing (premiums). Rio Grande Foods mission is to earn a position in consumers minds as a manufacturer of high quality Mexican foods in the specialty foods industry. The company will do this by producing products that have an authentic texture and flavor by using the highest quality ingredients possible. Objectives are to be positioned in the specialty foods market throughout New Mexico by 1998 with sales volume increasing 9% on an annual basis. These figures will be based on the number of case units sold annually (12/16 oz. Pack). The company has a .03% market share at the present time and has goals of attaining a .0316% hold on the market by the end of the third quarter in 1995.

Business and Product Service Description

The industry.

Rio Grande Foods is in the processed foods industry. The Standard Identification Classification code for this industry is 2033. More specifically, Rio Grande Foods is in the specialty foods industry procession and wholesaling Mexican salsa picante. Specialty products are foods, beverages or confections meant for human use that are of the highest grade, style and/or quality in their category. The specialty food nature derives from a combination of some or all of the following qualities: their uniqueness, exotic origin, particular processing, design, limited supply, unusual application or use, extraordinary packaging or channel of distribution has been growing strong since the 1950's and is now beginning to stabilize the rate of growth. This specialty foods segment is small compared to the highly commercialized market in which Pace foods and Old El Paso venture. Being that this is a relatively small industry the composition of it consists of several small independent processors and wholesalers. Even though the niche of the specialty foods industry is small, it was worth $30 billion in 1993. The condiment segment itself is worth $13 billion. Rio Grande Foods' products are aimed at middle aged consumers with high disposable incomes. However, prices are much lower than most competitors that other income brackets can afford to purchase a specialty Mexican salsa. Rio Grande Foods has had great success thus far in its start up period. The high quality and fancy packaging go hand in hand with the authentic flavor of Mexican salsa picante. The availability of two heat levels allow for access into other consumers tastes. Larger product mixes of other companies are forcing Rio Grande Foods to develop other products in the future.

Mission and Objectives

Rio Grande Foods' mission is to earn a position in consumers minds as a manufacturer of high quality foods in the specialty foods industry. This will be done by producing food products that have an authentic texture and flavor by using only the highest quality ingredients. Objectives are to be positioned in the specialty foods market throughout New Mexico by 1988 with sales volume increasing 9% on an annual basis. These figures will be based on the number of case units sold annually (12/16 oz. Pack).

The Product

Rio Grande Salsa Picante is a rich-textured, home style salsa which sustains the individual flavors of 100% all-natural ingredients. The ingredients consist of diced tomatoes, garlic, cilantro, onions, jalapeno peppers, salt, and a trace of vinegar. They combine to yield a product that has no fat, 2 grams of carbohydrates, 2% vitamin A, and 10% vitamin C. Rio Grande Salsa Picante has no artificial preservatives, fillers, oil, water, or sugars. This is what distinguishes it from other brands and qualifies it as a specialty food. The packaging is also very attractive. It has a very "classy" and conservative look at the same time. The trademark is a ristra of chiles and the name Rio Grande written in a vibrant red. The background is a chipped stucco wall that exposes bricks. It helps amplify the authenticity of the product.

Market Environment

Market potential.

Market potential for the condiment segment is very high. The two highest ranking condiments are Mexican salsa and ketchup, first and second respectively. Since Mexican salsa is out selling ketchup it is apparent that there is a lot of room for growth within this segment. Recently, there has been some growth within minority ethnic populations and sales are expected to increase in the specialty food industry as a whole. The Hispanic population has seen a 38% increase since 1980 along with a 71% income increase. Also, several cooks have developed recipes which contain Mexican salsa, for example, chile con queso and salad dressings.

Market size

The current market size of Rio Grande Foods is held within Santa Fe, NM. The customer base on the wholesale level is made up of 10 companies for a total of 16 retail store locations. All of these accounts handle a vast variety of specialty foods. The market size is expected to grow steadily.

Demand Trend for Product

Mexican salsa picante has reached a point of saturation in the southern part of the United States. A shake out is presently occurring, large wealthy processors are riding out losses for long periods at a time by offering sales promotions and price savings. They are trying to keep customers from buying the competitions brands so that their competitors might go out of business. However, this is going on in the high volume commercial market. In the specialty foods industry, prices are not going down, the product mixes are going up per company. All sorts of varieties are beginning to appear. J. Jose's has a Mexican salsa, a salsa verde, chile con queso, spices, candies, hot sauces (Tabasco style), mayonnaise, tartar sauce, and gift boxes. End consumers like to be different and daring. Mexican fruit salsa is the latest in the market, with variations such as peach, strawberry, pineapple, and other strange and exciting flavors. Rio Grande Foods plans to diversify its product line offerings so that it might be able to increase revenues and consumer interest.

Current Market Segments

Rio Grande Foods' is only supplying retail stores in three categories. They are grade A grocery stores, specialty food stores, and gift shops. An example of a grade A grocery store is J.E.B. Marketplace in Santa Fe, NM. These are the larger grocery stores that large grocery chains, such as J.E.B. open in locations near large upper income locations. They carry all of the highly commercialized grocery and general merchandise, but they also carry some specialty food items. About 24% of their total merchandise is specialty food items. These stores are normally close to several small populations with access from several different locations. Specialty food stores are generally small in size yet very fancy or unique in design. They are located in or near wealthy neighborhoods. They only carry specialty food products. The average cost for a 16 oz of Mexican salsa at these stores is $3.75. An example of a specialty food store would be Farm To Market on Taylor Hwy. in Santa Fe, NM. Products found in these stores' gift shops are normally products that are indigenous to the city or state in which it is located. The reason for this is that the majority of the customers are tourists. They are located near tourist attractions in cities or in major malls. An example of a tourist gift shop is Toddies in Franklin Mall located in downtown Santa Fe, NM. All of these stores have one thing in common, they all attract specialty food enthusiasts.

Market Segment Currently Targeted

The market segment currently targeted are individuals that fall into the following categories:

• 35-44 years old
• home rented (not owned)
• income of $50,000 and over
• dual income household

Of the people who will fit in above, these are the top ten lifestyles ranked by index:

Immediate Competitors

Rio Grande Foods' immediate competitor is J. Jose's. J. Jose's has a product mix of 11 products with an average depth of 3. They have Mexican salsa (red), salsa verde, chile con queso, mayonnaise, tartar sauces, Tabasco style hot sauce, spices candies, olives, mustard, and chips. Other competitors are New Canyon Farms, Don Jovencio's, Rio Diablo, Truly Texas, Guiltless Gourmet, and Rose's. These all process specialty salsa in the same market segments, however, they are priced slightly higher.

Different Advantage(s) by Segment

Rio Grande Foods has an overall lower cost throughout the channels. On the wholesale Rio Grande Salsa Picante is priced lower, thus allowing the retailer to still meet their pricing margins and at the same time the product has a lower retail price. Rio Grande Salsa has a fancy package in a competitive container. The label also reveal nutritional facts about the product unlike the competitor's products.

Product Usage

Members of the targeted market enjoy Rio Grande Salsa Picante on an occasional basis. A consumer can expect to pay anywhere from $1.99 to $3.50 for a 16 oz. jar of Rio Grande Salsa Picante. The consumer is beginning to be inventive by using salsa on almost anything that has cheese, vegetables, or meats, along with several other dishes.

Comparison of Competitive Players

This year Rio Grande Foods saw sales increase by 200% by the end of the second quarter as it began establishing and broadening its customer base. In terms of volume, sales increased from 1993 sales of 82 cases to 1994 third quarter sales of 244 cases. In terms of market share, some difficulty is encountered because of the fragmented and small specialty Mexican salsa market. In the specialty Mexican salsa market, the market leaders J. Jose's and New Haven Farms who hold 34% and 27% respectively when the 23.8% allocated below will show how small the specialty food market is compared to the entire Mexican salsa market as a whole.

The category titled other does not only consist of specialty food processors in the specialty food industry, but countless other small private label companies selling in mom and pop convenience stores, grocery stores, and even to friends.

Comparison of Competitor's Resources/Willingness

After having viewed the breakdown of market share and Rio Grande Foods' sales volume, it is plain to see that this company is only a pebble in a quarry when compared to J. Jose's. Jose's has a larger flow of capital and has a higher inventory turnover rate compared to Rio Grande Foods. Rio Grande Foods has a lot of growing up to do before it even becomes a contended or an actual threat to Jose's. Jose's has a large product mix with great adequate depth in each line. They have consumer recognition due to the large amount of shelve space they occupy in the stores. Jose's know the tricks of the trade in production, distribution, and direct marketing, because they have been in the game longer than Rio Grande Foods. There is a new contender in the market that could pose a threat for Rio Grande Foods in the future. The name of the Mexican salsa is Chili's. Chili's utilizes the same 16 oz. container as Rio Grande Foods and has a mild, medium, and hot Mexican salsa picante. They are small players like Rio Grande foods with potential to grow and increase market share.

Additional Segments to Target

Rio Grande Foods would also do very well to expand into other large metropolitan cities, such as Albuquerque, Las Cruces, Roswell, etc.. Other very strong cities where the National Association for the Specialty Food Trade, Inc. is headquartered in New York along with the entire east cost region of the United States. Mexican salsa has just begun to make its mark in this region. Specialty food stores can be found all over in these areas. The larger the city in most cases the larger the standard of living thus yielding higher incomes. Being that Rio Grande Salsa Picante is from Santa Fe, NM, people of these eastern regions would be very excited to try an authentic Mexican salsa like Rio Grande.

Potential Competition

A primary competitorin the un-targeted segments would be J. Jose's. Jose's is the leader of Mexican salsa in the specialty foods market. They have surplus resources to venture and test other potential markets. Being that Rio Grande Foods is fighting as a guerrilla, it has to put all of its resources into one attack and only one. It does not have the resources to fight a flanking battle. The assets that Rio Grande Foods does have are creativity and enthusiasm. Another restaurant that might pose a threat in the future is Chili's. It is based in Santa Fe, NM and is competing in the current segment of Rio Grande Foods. It is important that Rio Grande Foods eats up all of the available market share possible before Chili's does, because it can not afford another competitor.

Macro Environment

Impact of economic trends.

Food processors and retail food store operators approach 1995 with some concern. While inflation is expected to remain under control, processors and retailers are concerned about the pace of domestic and international recovery and the expected growth of non-traditional retail outlets. Processors of brand name products will strive to stem the flow of less costly generic goods while retailers will attempt to offset the effects of new, non-traditional competition. Adjusted for inflation, the value of shipments of the food and beverage sector is forecasted to rise about 1 percent in 1995. Processors are also concerned about NAFTA, it has brought great export opportunities and will continue to bring opportunity in the future years. However, some processors fear backlash, which would have adverse effect on 1995 U.S. export sales. Processors are also concerned about the rate of recovery worldwide. For 1995, the value of processed foods and beverage exports is forecasted to rise about 5% to more than $25 billion. Over the next five years, the processed food and beverage industries are likely to grow slowly; adjusted for inflation, the value of aggregate industry shipments is forecasted to grow 1% a year. The industry growth in the beginning of the year will not be large, but will improve as the U.S. and international economies improve.

Impact of Social/Cultural Trends

Aside from the presently targeted consumers for a specialty Mexican salsa like Rio Grande Salsa Picante, other ethnic markets are beginning to emerge in the 1990's. For example, the Hispanic population in the United States has increased by 38% since 1980. But not only is the population growing, so is their annual income. More and more Hispanics are seeking an education past high school, which has led to a 71% increase in their income. At the present time, Rio Grande Salsa Picante is appealing to the Hispanic market, in terms of flavor and authenticity. The only problem is that the portion of this population that can afford to purchase specialty items has remained very small. Now, in the 90's it is beginning to reach a point where the Hispanic purchasing power cannot continue going on without notice by small and large processors.

Impact of Political/Legal Trends

As specialty food and retailers know, many consumers are reading food labels. Interest in the nutrition label and claims such as "no cholesterol" are examples of this phenomenon. So, just around the corner is another marketing tool for specialty food processors. It is known as organic labeling. In 1995, the Department of Agriculture (USDA) is expected to finalize its rules on organic food production, processing and labeling. This federal program will go side-by-side with state organic certification programs, which may contain additional or more restrictive that the federal program. However, the state programs must be approved by USDA, the state labeling must be consistent with federal labeling. Labeling cannot say that the particular state's products are of superior quality, and the state may not discriminate against out of state foods that bear the USDA label. A food which contains at least 95% ingredients which meet the farm-to-table requirements may use an organic claim, such as," 100% organic". It may also bear the USDA shield to show that the product meets USDA standards for organic production, and also bear the logo of the certifying agent. This is something that Rio Grande Foods can concern itself with in the future, it is not something that is mandatory. Rio Grande Foods needs to allocate all of its capital resources to what it is trying to accomplish in the marketplace. This organic logo is just another point of purchase tool that Rio Grande Salsa Picante has already used. The latest law that has been already ratified since May 1993 is the Nutrition Labeling and Education Act. This law was developed and ratified by the Food and Drug Administration (FDA) as the consumer market demanded. This law simply requires food products for public consumption to reveal nutritional facts on the package itself. Rio Grande Foods has already complied with this required law. The reason Rio Grande Foods did not have to comply with the law immediately is because there is a low volume item exemption. If a processor does not have volumes sales that generate $60,000 or more on an annual basis or sell 600,000 individual units, it is not required to comply.

Impact of Related Technology

In the grade A grocery stores like J.E.B. Marketplace mentioned above, Efficient Consumer Response is beginning to be utilized by large grocery store suppliers. This service is being used by processors and distributors alike. This service is offered by the Uniform Code Council (U.C.C.), which is located in Dayton, Ohio. This is the same company that makes the service of Uniform Product Code symbols (U.P.C.) on most retail items these days. The Efficient Consumer Response service allows processors to be directly in touch with their customers, be it distributors or retailers. The information they receive is scan movement information, this means that each time a related product of the processor is sold at a particular retail location, they are made aware of it electronically. This scan/product movement allows processors to operate on the efficient Just In Time method. Present primary competitors are not using this service, however, it is a thing of the future. Pace Foods is already utilizing this service. The reason they are is because they move such high volumes of product and their processing material requirement planning depends on it. Rio Grande Foods is only utilizing the U.P.C. symbols for efficient retail handling of the products. It also allows the retailers to know if the product is moving good enough to make them a profit with the shelf space Rio Grande Salsa Picante is occupying.

Organizational Environment

Capabilities and responsibilities.

Rio Grande Foods is a very small company in the start up stages of a business venture. The product itself is in the growth stage at the present time. Rio Grande foods will continue to look for an additional customer base outside of Santa Fe, NM and will aim for larger and wealthier markets such as the ones mentioned above in the opportunities section. Rio Grande Foods has a lot of potential in terms of growth if it can successfully launch a product that is unique into the specialty foods market. Customers are already testifying that it is truly an authentic experience and they are asking for a list of other products the company has to offer. Rio Grande Foods is led by a young, creative and talented management team. The primary product has surprisingly gotten off the ground in a market which was said to be super saturated by the Wall Street Journal in 1993. The credit goes to the quality of the product and the management team which consisted of one individual and later expanded to two in the summer of 1994.

Organizational Support/Willingness

Rio Grande Foods is very committed to maintaining their mission statement of authenticity. The company will not put a product on the market just to have a diverse product mix. If the products that they try to develop do not abide by the mission statement they will be discontinued. Management works hard to maintain the authentic reputation from the stationery their presentations are presented on to the products themselves. Management knows that without profits the company will no longer exist, but profit is not the only reason for the company's existence. Management puts employee and customer satisfaction above everything else. They feel that if the consumer is happy so are the employees, because they are directly related. If the consumer is happy, profits will take care of themselves.

THREATS AND OPPORTUNITIES

Threat statements.

• Consumer preference of non-traditional salsa, such as the fruit salsa discussed above over authentic salsa picante like Rio Grande brand
• Target market becomes more interested in Tabasco style hot sauces
• Constant entry of new competitors with more capital may win any potential market share
• Food processing plant may be brought out by a large successful processor who is ready to handle its own production
• The economy stumbles and the Hispanic population is unable to flourish the way it has been into the specialty foods market
• Communicating wrong message to consumers about the product/company
• Company is unable to keep up with changing factors in the targeted segments
• Sales are not good enough to sustain growth

Opportunity Statements

• Consumers of other types of salsa and sauces prefer a more authentic experience
• Growth in consumer awareness is directly related to word of mouth advertising
• The growth segment of the products life cycle will show consumers that Rio Grande Salsa
• Picante is preferred over the others
• Changes in market segmentation will be a new path for new markets (restaurants)
• Current targeted consumers become brand loyal to Rio Grande Salsa Picante
• Increased product diversity can make the company more noticeable for its brand name and quality
• A more diversified product mix can open the doors to new consumer segments and markets
• Rio Grande Foods product will set a new standard for specialty Mexican salsa
• Rio Grande Foods' can prosper while large competitors rival amongst themselves
• Ability to stay ahead of the competition by complying with new packaging and product laws even though it is not required to do so

STRENGTHS AND WEAKNESSES

Strength statements.

• Young motivated, creative, and educated management
• High quality product
• Lower wholesale cost due to cost savings on packaging: three color label
• High volume jar and lid make for lower costs, and low miscellaneous expenses
• Financed only through family equity
• Good relationship with co-packer (C&D Mexican Foods)
• Competitive packaging
• Located near larger consumer markets, such as Albuquerque, Las Cruces, and Santa Fe
• Appropriate packaging for the specialty food market
• Experienced independent sales representative
• Nutritional facts table
• Development of new recipes
• Member of the National association for the Specialty Food Trade, Inc. (NASFT)
• Aware of primary competitor (J. Jose)

Weakness Statements

• Limited time to allocate 100% effort by management
• One product-product mix
• Small distribution established
• Low inventory turnover rate
• Limited consumer awareness
• Small budget for print media (direct marketing)

KEY ASSUMPTIONS

Assumptions for threat and opportunity statements.

• Consumers will continue to purchase traditional authentic salsa picante
• Tabasco style hot sauces already have their own share of the "hot sauce market" as a whole, but there is plenty of room for both styles of salsa
• Rio Grande Foods will have to continue with Guerrilla warfare tactics in order to stay ahead of the big player's advertising campaigns
• Food processing plant co-packer is committed to several large private label companies that will not allow it to sell out
• Rio Grande Foods will not lose its focus and communicate the wrong message to its consumers
• Sales will pick up in the future when the product line becomes more diversified with product categories that are not nearly as competitive as the Mexican salsa product category

Marketing Objectives

Objectives of marketing plan.

The company's objectives are to earn a position in the marketplace as a manufacturer of high quality Mexican food products in the specialty foods industry. Committed to supplying grade "A" grocery stores, specialty food stores, and gift shops, on a wholesale basis only, throughout Texas by 1998. At the same time the company wants to diversify its product mix steadily with products of the same quality standards as Rio Grande Salsa Picante. Sales for 1 year from 1994 up to the present have increased by 300%. The reason for the big surge is because it wasn't until the beginning of 1994 that the company started to push its products. Revenues were $2,200 in 1993, they have grown to $6,600 by the end of the third quarterin 1994. However, the company needs to reach revenues of $7,500 before it can break even. The company is sure to do this by the third quarter of 1995 if it can meet its goal of a 9% increase in sales per year up to 1998, once account growth stabilizes by the end of the second quarter in 1995. By the third quarter in 1995 with all goals met, market share should be .0316% up from .03% at the end of the third quarter in 1994. The company is planning on accomplishing its goals by doing what is written in the mission/objective statement, which is to position the company and the product in the client and consumers mind as a processor of high quality products and nothing less. Packaging will assist in the positioning of the product by revealing nutritional facts and by reinforcing the idea of authenticity.

Marketing Strategies

Product positioning.

The national marketplace for the condiment segment of the specialty foods industry is worth $ 13 billion. Rio Grande Foods has just begun its hike in terms of growth. It has only tapped into the Santa Fe, NM market at the present time. The beginning of 1994 marked the beginning of the company's intial effort to establish its customer base, at which time it saw an increase of 200% by the second quarter and 300% by the end of the third. When growth begins to stabilize the company expects growth of 9% per annum. The company will continue to target the high income educated individuals originally discussed in the "Market Segment Currently Targeted" section of this plan. Any promotional efforts will be prepared and implemented with that type of individual in mind. Rio Grande Foods will also have to remember the flourishing Hispanic market in the near future who will be very capable of purchasing specialty foods. In order to achieve the company's print media marketing objectives, sales will have to be in the $7,500 plus (+) category overall. The company will have to keep enlarging its customer base and must also maintain a 9% annual growth rate once growth has been stabilized. Other important factors to consider are consumer taste/preferences and trends.

Perceptual Positioning

The target market that the company will need to satisfy is one that is looking for specialty food items. Products are considered specialty food items because of their unusually high product quality due to ingredients and not for unusual packaging. The consumer in the specialty food industry is just as concerned about value as the consumer in the highly commercialized industry. The specialty foods consumer is not simply interested in spending his/her money on more expensive food products to make a fashion status statement. This is why Rio Grande Salsa Picante can be found a few cents cheaper, to a few dollars cheaper in some cases, in the market place. The company wants to be perceived as a "quality leader" in the specialty foods industry.

Product/Service

Current Product Fit per Segment - The current products of Rio Grande Foods satisfies the very active, health conscious consumers in the specialty food industry, because of the better quality products that can be found in terms of ingredients. This consumer pays more for a specialty food item only because the quality of the ingredients justify the higher price. The nutritional factors are also very important to them and that is why Rio Grande Foods has nutritional facts on its packaging. Required Product Additions/Modifications - In order for the company to stay in operation it will have to increase its distribution to cities outside of Santa Fe, NM to increase the inventory turn over rate. It will also need to increase its product mix to a more diverse mix so that it can please a lot more consumers and to increase point of purchase visibility/awareness.

Additional Product Strategies - Utilize all of the company's strengths to make itself a strong preference to consumers and position itself as a "quality leader." To assist in accomplishing its goals the company will utilize a push strategy to get retailers to carry their product. Credit terms of 2/10 Net 30 are offered and occasional volume discounts will be offered.

Distribution

Due to the nature of the product (Mexican salsa) and the specialty food industry itself, volume per store delivery is low. To elaborate, a delivery destination outside a 5 mile radius of the company is not cost effective if done by a company truck. Therefore, the company utilizes a parcel delivery company to distribute its products. United Parcel Services (UPS) is the company utilized for all deliveries to specialty food stores and gift shops. When orders need to be filled and product distributed, a phone call is all it takes to get a delivery truck over to the company to pick up the product. A $5.00 pick-up fee is charged per visit and the cost per package varies from $4.85 on up depending on the destination. Distribution to the higher volume grade "A" grocery stores are handled by the company itself. Not only is it cost effective, but it also helps increase product freshness and all merchandising activities as well. Quality and dependability is important in large stores, such as J.E.B Market Place, because without it the company risks loosing customers and eventually loosing the account. The reason UPS delivery is accepted in the other two segments is because those stores are not as competitive and busy as grade "A" grocery stores. They have someone to unpack and stock low volume items every day.

Additional/Modified Distribution per Segment - The only thing that can be improved is the number of accounts being serviced at the present time. The reason for this is not only to improve sales and profits, however, it is a factor that will assist in the process. If distribution could be increased to the point where there was a shipment every day, an account could be set up with UPS. This would eliminate the $5.00 pick up fee they have on sporadic pick up calls.

Distribution for Efficiency/Effectiveness - A larger customer base and a higher consumer awareness over other products will be needed to gain sales, market share, and to reduce marginal costs. Increased sales will increase inventory turnover rates, which means higher volume manufacturing will bring fixed manufacturing costs down. This will make the net profit margin larger if all expenses remain fixed. This will allow the company to allocate more funds to promotional efforts and product development.

Pricing Fit per Segment - The company is trying to position itself as a processor of highly valuable products in the specialty foods industry. It wants to be a "quality leader" and at the same time a "price leader". On the following page a breakdown of the company's specialty foods pricing practices can be seen on Table 1 in the appendices. The price will adjust through the years up to 1998 to compensate for an average inflation rate of 4%, this can also be seen at the bottom of Table 1. Table 1.5, is a pricing schedule that has been developed to show the average competitor's pricing practices for comparison. After comparing the two tables, the differences can be seen in the wholesale cost per unit and the cost of goods sold. Most competitors are using not so fresh ingredients while maintaining a higher wholesale cost. Rio Grande Foods is trying to do the opposite within a relevant range so that the company is making a suitable profit that is consistent with corporate objectives.

Required Pricing Modifications per Segment - The company needs to reduce the cost of goods sold through increased volumes and not through cheaper ingredients. Also, more funds need to be allocated to point of purchase advertisements, such as recipe books. Recipe books will present new ways to use Rio Grande Salsa Picante, which will increase the rate of consumption - increasing turn over.

Refined Messages - The niche of Rio Grande Foods is accented by its products' packaging that represents authenticity from the name to the graphic trade mark and label scheme complete with nutritional facts. There is also plenty of clear glass that allows for easy view of the sauces authentic texture and appearance. It "tells" the consumer that there is no need to eat out or to make they're own salsa, that home style texture and flavor can now be found in a jar at a valuable price that is not only good for my pocket book, but also for my health.

Optimal Promotional Mix - Targeting the consumer at his/her favorite events and bringing that appeal to them in the form of pure eating satisfaction at a price that will not be taking advantage of them. Formulating a memorable slogan that will remind the consumer of authenticity, value, quality, and satisfaction.

Tactical Product Objectives

Rio Grande Foods will continue to grow with the original product, because it has proven to be satisfactory since the beginning. The packaging and the ingredients help the company as it tries to reach its positioning objectives. Being that Rio Grande Foods is fighting guerrilla warfare tactics, it cannot not afford to launch another product because all of its resources are pushing the Mexican salsa in 1995.

Marketing Channels

Tactical objectives for channel distribution.

In 1995, Rio Grande Foods will continue to satisfy its current accounts while continuing to increase its consumer base/distribution. The company will keep servicing its present accounts the same reliable way it has been from the beginning. It will try to increase consumer awareness at the present stores by increasing shelf space. Some success has been seen at the J.E.B. grade "A" grocery stores where shelf space went from four-facings/two cases to eight-facings/four cases. The company will have to continue pushing the product through the marketing channels on a wholesale basis to the targeted segments. There is a great need to prove to the retail customers that the product does move and that it could do even better with increased exposure on the shelf.

Physical Distribution

Tactical objectives for physical distribution.

For 1995, the company will continue to service the grade "A" grocery stores through direct store delivery (DSD) methods. The specialty food stores and gift shops will continue to be supplied via UPS. The objective is to have a broad enough distribution to establish an account with UPS so that the $5.00 pick up fee can be eliminated, thus making distribution more cost effective. The company will have to continue pushing the product as explained above so that it can reach a level where an account with UPS can be established. If the company can establish approximately 35 separate accounts this goal can be met. The accounts will have to be staggered carefully for delivery according to demand so that a daily pick up will be possible.

Tactical Pricing Objectives

For 1995, the price on a wholesale basis will remain the same as it was in 1994 ($2.25/unit - $27.00/case). However, there will be price increases in the future years as seen in the situational analysis on table 2. The only thing the company hopes to do is increase volume so that the cost of goods sold can go down allowing more funds to be allocated to the promotional margin. These funds can be used to meet the marketing objectives.

Advertising

Tactical objectives for advertising.

In 1995, advertising will equal $300.00 due to the low amount of money available. These funds will be used to make consumers notice Rio Grande brand salsa picante in the market place. Funds will be spent on print media only. The company must continue with steady growth of sales so that the margin allocated to advertising can generate the required funds to meet objectives.

Personal Selling

Tactical objectives for sales promotions.

The company will continue approaching new customers on the retail level in hopes of meeting growth objectives so that all other factors discussed will fall into place. The company will do this by setting up appointments for presentations to grocery buyers. It is important to only target those consumers listed in its target segments - grade "A" grocery stores, specialty food stores, and gift shops. The company will also continue to sell itself and its product to its present customers in hopes of increasing shelf-facings and shelf-space in the same manner. The company will have to begin compiling a list of potential customers that can be screened for accuracy. Once the list has been narrowed down, the company can begin setting appointments on an efficient schedule so that it is not in conflict with other company operations.

Sales Promotions

The company will use allocated promotional funds to conduct samplings and to produce point of purchase advertisements, such as recipes, Samplings can be held on the weekends inside some of the busier stores, between 9:00 a.m. to 11:00 a.m. in the mornings and 4:00 p.m. to 9:00 p.m. in the evenings. At the same time the company can distribute recipes that require Rio Grande Salsa Picante as one of the ingredients. These new food ideas will help stimulate a more frequent use of the product thus increasing consumer consumption while causing the same effect all the way up to higher volume production runs. These recipes can also be used as a point of purchase marketing tool. They have proven more successful at the privately owned specialty food stores and gift shops, because the employees have more time to discuss the products and ideas to customers. This helps to answer any questions and make the customer aware of the recipes. This promotion proved to be successful at Toddie's in downtown Santa Fe, NM, where the recipes were placed on hooks directly below the product for better visibility to the consumer. The company will also offer occasional business to business promotional allowances to retailers in terms of lower wholesale costs. In order for these sales promotions to be feasible, the company will have to maintain sales growth as mentioned above.

Operational Budgets

On table 2, the cost of goods sold will be dropping steadily if growth of 9% per annum can be sustained after account growth has stabilized at the end of the second quarter in 1995 with revenues of $7,500. From that point onto 1998, the 4% inflation rate is taken into consideration along with the 9% annual growth rate, the result is what is seen on Table 2 in the appendices. The expenses margin will remain at 30% because as other expenses are reduced, the advertising margin will grow accordingly. These extra funds will help the company become more recognized through the use of print media as it tries to establish itself in the specialty foods industry as a "price" and "quality leader".

FINANCIAL INFORMATION

Rio grande foods fiscal year 1994-95.

Average Competitor's Price Fiscal Year 1994-95

Operational Budgets 1995-1998

User Contributions:

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Stellar Food for Thought

Strategic Planning for Food Processors: 4 Elements Your Business Plan Must Address

• Food process & packaging engineering
• Strategic planning

Does your food processing company have a strategic plan ? Failing to plan is planning to fail —especially when it comes to your business. Earlier this year, Stellar hosted the Food Engineering webinar, 3 Key Elements in a Successful Strategic Plan for Growth . That webinar is now available on-demand , so you can still catch up on our discussion about how strategic planning can benefit food manufacturing plants, and how you can get started with developing your own strategic plan.

The benefits of a strategic plan include:

• Clearly defined mission and vision
• Objective view
• Cost management
• Competitive advantages
• Adaptability
• Improved communication

The first step in building your strategic plan is to develop your business plan , where you define and analyze aspects of your business against its business objectives. Your business plan outlines where your business is going and how you want it to grow.

Your business plan should address the following four key elements:

1. Company description

The first element of your business plan is defining the identity of your company: who it is and what you want it to be. This is your “company description.”  Be sure to answer these questions:

• What is the nature of your business, and how will your product serve the market’s needs?
• Who are your target customers?
• What sets your company apart from other food processing companies in the marketplace offering similar products?

2. Product mix

Detail each product your company will manufacture and its contribution to meeting sales goals. In other words, understand which products are profitable—and which are not. Each individual SKU will fill a unique customer desire and have its own price and profit margin, in addition to competitive advantages, such as ingredients, packaging or price.  Be sure to answer these questions:

• What similar products are available and what market share do they own?
• Are there product lines the company may add in the future?
• What products are profitable?
• What products are not profitable?
• What are your products’ profit margins?
• For each product, what is the cost of equipment utilization, labor, materials, etc.?

3. Industry analysis

Address both the specific market segment you’ll serve and your customers’ wants/ needs. This analysis should involve your company’s sales and marketing departments: the individuals who understand where the customer base is headed and how customer preferences are shifting from one product to another.  Be sure to answer these questions:

• Is the market expanding or well saturated?
• Who are the current market leaders and what is their brand strategy?
• What profit margins are typical in the industry?
• Are there seasonal or geographic limitations or opportunities?

4. Marketing and sales

Determine your sales goals and develop your marketing strategy to meet those goals.  Be sure to answer these questions:

• Is this a new market you’re hoping to penetrate or are there existing product lines in the market?
• Could your product target an entirely new demographic, and if so, how will you reach it?
• How will you meet your sales goals? Will it be through organic growth, a business acquisition or a vertical growth strategy?
• What channels of distribution will you use to meet these sales goals?

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A SAMPLE BUSINESS PLAN FOR SMALL FOOD BUSINESSES

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How to Write a Food and Beverage Business Plan + Sample Business Plan PDF

Elon Glucklich

7 min. read

Updated May 10, 2024

Free Download: Sample Food and Beverage Business Plan Templates

The food and beverage sector is booming. Restaurant openings rose 10% in 2023 compared to 2022 — even higher than in pre-pandemic years.

From fine dining to food trucks, farmers to brewers, and wholesalers to coffee makers, there are opportunities across the food and beverage industry. 

But starting a business without covering the basics — your operations plan, marketing tactics, financial strategy, and more — carries huge risks. 

That’s why we recommend you write a business plan.

• Why write a food and beverage business plan?

Writing a business plan is an easy first step that you can start for free. Plus, businesses that take time to plan are significantly more successful than those that don’t.

Many food and beverage establishments fail because of one of the following:

• Poor inventory management
• Underestimated expenses
• High employee turnover
• Misjudged the size of their market

Writing a business plan can help you:

• Develop processes for managing inventory and logistics
• Understand your cash flows and create a realistic expense budget
• Budget for competitive employee pay that increases worker retention
• Analyze your competition and determine how big your market is  

If you’re looking for funding from investors for your business, you’ll definitely need a business plan.

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• How to write a food and beverage business plan

Many business plans follow a standard format and you can use it as a starting point when writing your own plan. Here’s what that includes:

Executive summary

• Company summary and funding needs
• Products and services
• Marketing plan
• Management team

Financial plan

For food and beverage companies, you must give extra attention to your market analysis, operations plan, and financial forecasts.

If you’re ready to start, download a free business plan template and fill it out as you read this article.

Every business plan should include an executive summary . It’s a brief outline summarizing the plan, no more than one or two pages.

We recommend that you write the executive summary last after fleshing out the details of your plan. 

Just summarize the vision for your business, describe your offerings and target market , and touch on your management team and financials. Don’t go into tons of detail — just provide a high-level sense of what you want your business to accomplish.

Opportunity: problem and solution

This section of your food and beverage business plan describes the opportunity you hope to capture.

Maybe you’re a farmer looking to diversify your revenue streams by distributing to grocery stores. Or a bar owner with high-end liquor that competitors in the market aren’t serving. 

Whatever your business is, describe the gap in the market and how you aim to fill it.

If you’re operating a more common type of business, like a restaurant , you can probably keep this section short. But it’s useful to document what makes your business unique and it will help focus your sales and marketing efforts later on.

Market analysis

In a field as crowded with competitors as the food and beverage space, a detailed market analysis is essential. 

Your focus should be on identifying the specific customer segments you aim to serve. 

Maybe you’re a butcher with connections to fresh livestock. Will you be more successful selling directly to consumers, or should you focus on selling to grocery stores and markets in your area?

Or, you’re opening  a diner. Should your menu focus on healthy meals or easy-to-make child-friendly options?

These are the types of questions that market research helps you answer. This section should detail the defining characteristics of your target market, including the demographics and preferences of your ideal customer and the size of the market you’re targeting. Market research questions specific to a food and beverage business could include:

• Business location and characteristics
• Area income
• Local food and beverage preferences
• Existing food and beverage options 

Elaborate on how your food and beverage offerings align with that target market ’s needs. Remember, you can’t please everyone, so focus on a specific group of people or type of person and build out from there.

Marketing and sales

For food and beverage businesses promotions are how you stand out and seize a share of your market.

The marketing and advertising chapter of your business plan is where you’ll detail your strategies for capturing the attention — and loyalty — of the customers you identified as your target market in the previous section.

With so many options for consumers in the food and beverage space, you’ll likely have to rely on multiple marketing channels , including::

• Advertising on websites, television, and in relevant publications.
• Content marketing — developing an engaging website and writing blog content that’s search engine optimized to drive traffic to your site.
• Engaging with your customers on social media.
• Offering discounts and customer loyalty programs.
• Appearing at food and beverage industry trade shows and community events.

It doesn’t matter how delicious your recipes are, how fresh your crops are, or how innovative your cocktails are — if you don’t operate efficiently, your business probably won’t last long.

The operations strategy may be the most detailed section of your business plan, especially if you’re writing it for a bank loan or investment. This section describes how you will run your business day to day.

When writing the operations section, describe the following:

Physical space

Whether it’s a restaurant, a farm, or a food transportation business, describe the space you’re operating in, and all of the physical assets and equipment you’ll need to be successful. 

If it’s a sit-down restaurant, consider including a floorplan mockup in your appendix.

Supply chain 

List the suppliers and partners that get your product to customers. Think about the businesses you purchase ingredients from, the warehouses that goods are stored in, and the trucking companies that deliver your products to grocery stores. 

These are your supply chain partners. It’s crucial that you maintain good relationships with them.

Production processes

How long it takes to make your product, and what materials and equipment are required. Documenting how you produce your goods or services demonstrates that you understand the costs of making them. 

You may also uncover ways to produce them more quickly, or at a lesser cost.

Detail how you’ll handle matters of efficiency like order fulfillment, storage, shipping, and returns, as well as customer satisfaction. If you provide delivery services, document how you will handle the process of getting your product to customers’ homes or businesses.

List your staffing needs, training, and experience requirements for key staff. Also, document the management structure of your business. 

This helps ensure that important tasks you don’t have time to monitor are being done and that workers are being supervised.

Describe investments in payment processing systems, inventory management software, and other tools that support sales or operations in your business. Cataloging your technology systems will help you determine where it might make sense to invest in upgrades for efficiency.

Take some time to write a financial plan . Create detailed financial projections, including sales , expenses , and profitability .

If that sounds intimidating, take a deep breath, and remember that financial forecasts are really just best guesses. If you’re running an existing business, you can start with your previous year’s numbers. If you’re starting, make an educated guess about where you hope to be financially a year from now.

Investors will want to see a: 

• Sales forecast
• Income statement (also called a profit and loss statement )
• Cash flow statement
• Balance sheet 

If you use a tool like LivePlan , you’ll be able to build out your financial forecasts relatively quickly, even if you don’t have experience with business numbers.

Even if you aren’t seeking investment, the financial plan is crucial for understanding the viability of your business. It allows you to adjust your business model based on projected performance, and make informed decisions about where to spend your money.

• Food and beverage business plan templates and examples

If you want to see how other food and beverage businesses have created their plans, check out our free library of food and beverage business plans . 

You can download all of them in Word format and jump-start your own business plan.

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Potato Chips Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Food Sector » Food Processing

Are you about starting a potato chips production business? If YES, here is a complete sample potato chips production business plan template & feasibility report you can use for FREE .

One business that you can successfully launch with less stress, minimal startup capital and little or no technical knowledge is potato chips production business. With this type of business all you will need is potato peeling equipment, deep fryers and sealing machines.

It is important to point out that potato chips production business is one the businesses that can’t go out of fashion simply because people eat food and snacks on a daily basis. As a matter of fact, you can start your own potato chips production business and then grow it big within a short period of time by reinvesting your profits back to the business.

A Sample Small Scale Potato Chips Business Plan Template

1. industry overview.

Potato chips production business belongs to the Snacks Food Production industry and operators in this industry primarily produces snack foods such as potato and corn chips, pretzels, roasted and salted nuts, nut butters, popcorn and other related snacks.

Most players in this industry do not produce cookies, crackers, bakery products, cereal or granola bars et al. French fries are generally served hot, either soft or crispy, and are usually eaten as part of lunch or dinner or by themselves as a snack, and they generally appear on the menus of fast food restaurants or in shelves in supermarkets.

A close watch of events in the Snack Food Production industry reveals that the industry has profited from increased demand over the last half a decade. As the economy experience growth, discretionary income levels also experience upward movement. Hence, renewed consumer spending has increased sales of potato and tortilla chips, along with nuts and seeds.

With improvement in the economic conditions, the industry is expected to rake in more revenue. Expected increases in per capita disposable income will aid some consumers to trade up to premium brands and product segments, helping drive revenue growth.

In addition, as consumers demand more healthy versions of existing snacks, players in the industry are expected to introduce a wider variety of products especially in terms of packaging and branding. The Snack Food Production industry is a thriving sector of the economy of the united states, United Kingdom , France, Italy, and Canada and in most country of the world.

Statistics has it that in the United States of America. The Snack Food Production industry generates a whooping sum of well over $38 billion annually from more than 2,851 registered snack food production outlets / franchise scattered all around the United States of America.

The industry is responsible for the employment of well over 53,204 people. Experts project the industry to grow at a 3.6 percent annual rate from 2011 to 2016.

A recent report published by IBISWorld shows that Snack food production establishments throughout the United States are strategically located near sources of key inputs, such as potato, wheat, corn and sugar, while they remain within serviceable distance to large population centers for distribution. The report stated that the western region accounts for 25.0 percent of establishments.

Many industry establishments are located in this region due to the favorable climate conditions that make it an ideal location for growing key inputs such as potato, almonds, walnuts, wheat and corn.

As the home of 12.2 percent of the US population, California holds more manufacturing facilities than any other state, comprising 17.6 percent of all establishments. Also, the West has access to large population centers such as San Francisco, Los Angeles and Seattle.

Over and above, the potato chips production line of business is a profitable business and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in a street corner like the average mom and pop business or you can choose to start on a large – scale distribution you products across key cities all across the United States of America.

2. Executive Summary

Peter Pan Potato Chips is a standard and registered potato chips production company that will be located in Los Angeles – California but hope to establish a robust distribution network all across the United States of America and also abroad.

We are at the final stage of leasing a facility along that is big enough to fit into the design of the kind of potato chips production company that we intend launching and the facility is located in between a farm settlement area and one of the largest residential estate in Los Angeles – California.

Peter Pan Potato Chips will be involved in the production, packaging and distribution of potato chips. Our plan is to build our brand to become a household name all across the United States of America. We want our potato chips to be found in supermarkets and stores all across the United States of America and Canada.

We are aware that there are several large and small scale potato chips production business scattered all around Los Angeles – California, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.

We have delivery service options for our customers, and our outlet is well secured with the various payment options. Peter Pan Potato Chips will ensure that all our customers are given first class treatment whenever they visit any of our chains of outlets.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to.

We will ensure that we get our customers involved when making some business decisions that directly affect them. Peter Pan Potato Chips will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Peter Pan Potato Chips is a family business that is owned by Peter Paddy and his immediate family members. Peter Paddy is a potato chips specialist; he has a B.Sc. in Food Science and a Diploma in Business Administration, with well over 10 years of hands on experience in the snacks production industry, working for some of the leading brand in the United States.

Although the business is launching out with a distribution network around Los Angeles- California, but there is a plan to expand our distribution network via franchising all around California and in other key cities in the United States of America and Canada.

3. Our Products and Services

Peter Pan Potato Chips is in the snacks production industry to sell our well – packaged potato chips and of course to make profits, which is why we will ensure we go all the way to employ all the available and workable business strategies.

We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business.

4. Our Mission and Vision Statement

• Our vision is to become the leading potato chips production company – brand in the whole of California and to favorably compete with other leading brand in the United States of America and Canada.
• Our mission is to build a potato chip production company whose products can be found in supermarkets and grocery stores all across the United States of America and Canada.
• We also want to want to build an international brand and export our well – packaged potato chips to other countries of the world.

Our Business Structure

Peter Pan® Potato Chips do not intend to start a potato chip production business just like the usual mom and pop business around the street corner; our intention of starting a potato chip production business is to build a standard business in Los Angeles – California.

Although we will initial supply our well – packaged potato chips to supermarkets and grocery stores all across Los Angeles – California, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Kitchen Manager
• Human Resources and Admin Manager
• Kitchen Workers

Sales and Marketing Manager

• Accountants / Cashiers
• Customer Services Executive
• Van Drivers / Deliverers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Kitchen Manager:

• Responsible for managing the daily activities in the kitchen
• Ensure that the kitchen facility is in tip top shape and conducive enough to meet the required health and safety standard
• Interfaces with third – party providers (vendors)
• Reports to the Chief Executive Officer
• Attends to Customers complains and enquiries
• Prepares budget and reports for the organization
• Handle any other duty as assigned by the CEO

 Kitchen Staff

• Responsible for producing potato chips
• Responsible for operating the sealing machine used in sealing packaged potato chips
• Responsible for carrying out all casual or unskilled jobs in the restaurant
• Responsible for packaging potato chips meant for delivery
• Handles any other duty as assigned by the kitchen manager
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Van Drivers / Sandwich Deliverers:

• Delivers customer’s orders promptly
• Deliver correspondence for the organization
• Runs errand for the organization
• Handle any other duty as assigned by the floor / line manager
• Responsible for cleaning the kitchen facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the kitchen facility
• Handle any other duty as assigned by the kitchen or HR and Admin manager.

6. SWOT Analysis

Our intention of starting our potato chips production company by supplying supermarkets and grocery stores in and around Los Angeles – California is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then supply our potato chips to supermarkets and grocery stores all over California and Key Cities in the United States of America and Canada.

We are quite aware that there are several large scale, medium scale and small scale potato chips production companies all over Los Angeles- California and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Peter Pan® Potato Chips, LLC employed the services of an expert HR and Business Analyst with bias in snacks production industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Peter Pan® Potato Chips, LLC;

Our location, the business model we will be operating on (robust distribution network), varieties of payment options, different sizes of well – packaged potato chips and our excellent customer service culture will definitely count as a strong strength for Peter Pan® Potato Chips, LLC.

So also, we have a management team that has what it takes to grow startup business from survival to profitability within the shortest time – frame.

A major weakness that may count against us is the fact that we are a new potato chips production company – business and we don’t have the financial capacity to compete with multi – million dollars chains potato chips production companies who are already determining the direction of the market as it relates to the sale and supply of potato chips all across the globe.

• Opportunities:

The fact that we are going to be operating our potato chips production company in – between a farm settlement community and one of the largest residential estates in Los Angeles – California, provides us with unlimited opportunities to sell our well – packaged potato chips to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new potato chips production company in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Most companies that are into potato chips production or similar snacks production are becoming more creative when it comes to packaging and branding their potato chips.

The truth is that, if you can successful package and brand your potato chips to meet international standards; you can indeed successfully export your products to other countries of the world. There are potato chips brands that can be found in supermarkets all across the globe.

So also, keeping consumers’ appetites satisfied, snacks production industry cum potato chips production line of business have created new menu options that capitalize on the trend of increasing awareness of the health risks associated with a high-fat diet.

The industry has also thrived by developing products at price points attractive enough to weather the slow recovery, resulting in strong revenue growth. As a result of this, these trends are expected to continue and contribute to revenue growth going forward.

Lastly, in the bid to maximizing profits, large scale potato chips production companies now own potato farms; they are into full – time potato cultivation. All they need to do is to position their food processing plant (where they make potato chips) close to their farm.

With this, they can have full control of the production of potato chips from start to finish without any obstruction or under supply of raw materials (potatoes).

8. Our Target Market

One thing about potato chips and similar products is that you can hardly find someone who don’t patronize them. As a matter of fact, it is difficult to enter into a standard Supermarket or grocery store without finding potato chips.

In view of that, we have positioned our potato chips production company to service (supply) supermarkets, grocery stores and other outlets all across Los Angeles – California and other key cities all over the United States of America and Canada.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail our well – packaged potato chips to the following groups of people and businesses;

• Supermarkets
• Grocery Stores
• Vegetarians

Our Competitive Advantage

A close study of the snacks food production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other potato chips production companies in Los Angeles- California.

Peter Pan® Potato Chips, LLC is launching a standard potato chips production business that will indeed become the preferred choice of residence and businesses in Los Angeles – California and other cities where we intend selling / supplying our products.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups potato chips production companies) in the snacks food production / fast food industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Peter Pan® Potato Chips, LLC is in business to operate a standard potato chips production company in Los Angeles – California. We are in the snacks food production / fast food industry to 10. Sales Forecast

One thing is certain when it comes to potato chips production business, if you are able to cut cost of production, pay attention to branding and packaging and you able to build a robust distribution network, you are sure of generating good sales and of course make good profits from the business.

We are well positioned to take on the available market in Los Angeles– California and in other cities in the United States of America and Canada and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the snack food production industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – California.

Below are the sales projection for Peter Pan® Potato Chips, LLC, it is based on the location of our business and other factors as it relates to potato chips production business start – ups in the United States of America;

• First Fiscal Year-: $120,000
• Second Fiscal Year-: $250,000
• Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for launching Peter Pan® Potato Chips, LLC, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence and businesses in Los Angeles – California.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time. We hired experts who have good understanding of the snacks food production industry to help us develop

In other to continue to be in business and grow, we must continue to sell and supply our potato chips which is why we will go all out to empower or sales and marketing team to deliver. In summary, Peter Pan® Potato Chips, LLC will adopt the following sales and marketing approach to win customers over;

• Open our potato chips production company in a grand style with a party for all.
• Introduce our potato chips production company by sending introductory letters alongside our brochure to supermarkets, grocery stores, schools, event planners, households and key stake holders in Los Angeles – California
• Make use of attractive hand bills to create awareness and also to give direction to where customers can get our potato chips
• Position our signage / flexi banners at strategic places around Los Angeles – California
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our potato chips and also sell our products.

11. Publicity and Advertising Strategy

Despite the fact that we are going to be starting on a small – scale supplying our potato chips to supermarkets and grocery stores in Los Angeles – California, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote Peter Pan® Potato Chips, LLC.

Peter Pan® Potato Chips, LLC has a long-term plan of supplying our potato chips to supermarkets and grocery stores all around California and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Los Angeles – California before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Peter Pan® Potato Chips, LLC;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – California
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact supermarkets, grocery stores, corporate organizations, households, religious centers, schools and event planners et al by calling them up and informing them of Peter Pan® Potato Chips, LLC and the product we sell
• Advertise Peter Pan® Potato Chips, LLC business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and delivery vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to products such as potato chips, it is normal for consumers to go to places where they can purchase / order potato chips at a cheaper price which is why big players in the snacks food production / fast food industry will continue to attract loads of consumers.

We know we don’t have the capacity to compete with bigger and well – established chains of snacks food production companies, but we will ensure that the prices of our well – packaged potato chips are competitive with what is obtainable in the US market.

We are aware that there are contracts for supply of potato chips by government establishments, NGOs, corporate organizations or big religious organization; we will ensure that we abide by the bidding pricing template when we bid for such contracts.

• Payment Options

The payment policy adopted by Peter Pan® Potato Chips, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Peter Pan® Potato Chips, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our potato chips without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our potato chips.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a potato chips production company; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up capital on;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Peter Pan® Potato Chips, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• The cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• The cost for construction of a standard kitchen for mass production and packaging of potato chips – $100,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (potato, other ingredients and packaging materials et al) – $80,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a Website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of two hundred and fifty thousand dollars ( $250,000 ) to successfully set up our potato chips production company in Los Angeles – California. Please note that this amount includes the salaries of the entire staff member for the first month of operation and the amount could be more or lower.

Generating Funds / Startup Capital for Peter Pan® Potato Chips, LLC

Peter Pan® Potato Chips, LLC is a private business that is solely owned and financed by Peter Paddy and his immediate family members. We do not intend to welcome any external business partner, which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Peter Pan® Potato Chips, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell and supply our well – prepared and well – packaged potato chips a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Peter Pan® Potato Chips, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility to accommodate a standard kitchen: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – suppliers of potato, ingredients and packaging materials: In Progress

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