BUSINESS PLAN FOR

SMALL FOOD BUSINESSES

Melchie Ejase January 2021

Why Develop a Business Plan?

In the book The Entrepreneur’s Manual, Richard M. White, Jr. states that
business plans are “road maps” for business creation: “You identify your origin, select
a destination, and plot the shortest distance between the two points.”

True, a business plan is essentially a blueprint for a business. However, it also serves
many other purposes:
• A business plan is a detailed blueprint for the activities needed to establish a
business (the details of a product or service, the market for that product or service,
and the management of the business providing that product or service).
• A business plan is also the ‘yardstick’ by which a business owner measures success
in meeting stated goals and objectives.
• Also, a business plan is a tool for obtaining a loan from a lending agency, or for
attracting venture capital.

Title Page: Melchihay’s Food Restaurant

What Does a Business Plan Look Like?

There is no standard format for a business plan, but there are many common
components of a business plan:
• Executive Summary
• Business Description
• Marketing Strategies
• Manufacturing Plans
• Pro Forma Financial Analysis
• Contingency Plans

Many business plans will also include appendixes with additional information related to
the business, its operations, its owners/managers, marketing/promotional plans, etc.
Executive Summary

My Father and I have been involved with the food industry for several years, but
we did not opened a business yet. But my niece have their own Food Business and we
decided to have a business with them, they opened their first restaurant in Masinloc
Public Market since 2010. Although praised for the quality of many of the items on
their menu, they have attained a special notoriety for their desserts. After years of
requests for their flavored whipped cream toppings, they have decided to pursue
marketing these products separately from the restaurants.

Business Description

My Father and my beloved Niece have developed several recipes for flavored
whipped cream topping. They include chocolate, raspberry, cinnamon almond, and
strawberry. These flavored dessert toppings have been used in the setting of their
restaurants over the past 11 years, and have been produced in large quantities. The
estimated shelf life of the product is 21 days at refrigeration temperatures and up to six
months when frozen. The Beans intend to market this product in its frozen state in 8 and
12-ounce plastic tubs. They also intend to have the products available in six ounce
pressurized cans. Special attention has been given to developing an attractive label that
will stress the gourmet/specialty nature of the products.

Marketing Strategies

Distribution of my Niece Foods Whipped Dream product will begin in the local
area of Masinloc Public Market. The Whipped Dream have an established name and
reputation in this area, and product introduction should encounter little resistance. The
managers are indicated that they are willing to carry the products. Their letters of intent
and endorsement are included in the Appendix section. It is also important to note that
also the Groceries puts an emphasis on specialty food products in addition to standard
grocery items.

After Whipped Dream’s debut in Masinloc Public Market and surrounding

Special attention has been given to developing an attractive label that will stress
the gourmet/specialty nature of the products. A copy of the label is attached in the
appendices. My father and my Niece preparing for a business planning and marketing
specialist at the Masinloc Public Market.
The food experts assisted with developing the label, and conducted a focus group study
to evaluate the image projected by the label as well as the packaging.

How can best sell in the market?

Target groups of Melchichay’s Food Restaurant

 Home Owners
 Institutes
 Companies
 Event Organizers

*Home Owners
The first group of our customers will be the people living in our city, Seattle. This group of general
population is expected to purchase our foods and desserts as well to avail our Foods Products to
try/loved of our food even if it is ‘in and outdoor space’ we assure that they will feel satisfy,
delicious and well gain strengths of our clean foods.

*Institutes
The second category includes research and Home economics institutes who can buy our delicious
foods and will also avail our good services to create satisfying moments.

*Companies
Our third target category includes companies and offices who always have a priority of
foods and have a good taste of any of foods also they have a food catering services.
They are expected to make big purchases with us.

*Event Organizers
Our last category to target will be the event organizers in restaurants or in homes. For a
good services and a quality of the food we serves, especially for the desserts and drinks.
Competitive Analysis

There are several brands of whipped topping available in mainstream retail outlets. In the grocery
stores in the St. Cruz area, all of the ready-to-eat varieties are produced by large players,
specifically Kraft. There are also dry mixes available, but these are not direct competition for
Whipped Dream. According to sales figures at grocery outlets in St. Cruz Zambales, approximately
65% of the national brand prepared whipped topping is sold in frozen tub form, while the
remaining 35% is in pressurized can form. The strengths of these products are their market shares
and distribution channels. They are available in virtually any retail grocery outlet, and have gained
strong market acceptance. They are also distributed with other refrigerated and frozen dairy
products. Finally, they are priced at 50 to 100 pesos per 8-ounce tub or 6-ounce pressurized can, an
advantage when compared to the suggested retail price of Whipped Dream. The weakness of these
products is in the lack of variety. None of these companies produce or market a flavored topping.
Several of the products are also classified as ‘whipped topping’, but are actually not dairy based.

Design and Contingency Plan

While careful planning was involved in setting the strategic goals for Whipped Dream, it may be
that these goals are not met. The Whipped Dream have decided to set a zone of acceptability for
meeting sales and financial objectives. For both sales and financial objectives, a 10% negative
deviation from expected sales and projected returns on assets will be accepted. However, if sales
objectives and returns on investment are less than 90% of projections, certain actions will be taken.
These actions include:

1. For unacceptable sales levels during the first year: My Niece Foods will combat this problem by
doubling in-store promotions of Whipped Dream in St. Cruz Zambales. The Whipped Dream will
personally arrange and carry out these promotions on weekends at peak shopping times. If sales do
not increase within one month of the in-store promotions, My Niece Foods will advertise in the
weekly shopping circulars of the stores for one month.

2. For unacceptable sales levels in Masinloc Public Market: After 6 months of marketing products
in these areas, sales will be evaluated. If not meeting acceptable sales levels, My Niece Foods will
consider contracting with local marketing specialists in St. Cruz and Iba, Zambales to carry out the
in-store promotions and push the products to the stores. This contractual relationship will be based
upon sales commissions (to be determined by the specialists and My Niece Foods), thereby
providing incentive for the specialists to generate sales of Whipped Dream.

3. For unacceptable business liquidity: In the event that the business lacks liquidity, My Niece
Foods will examine their accounts receivable procedures to ensure that payment periods are just
and that payments are being received in a timely manner. Also, cash flow projections will be
reviewed to determine if unforeseen cash layouts/expenses are undermining the financial health of
the enterprise.

4. For unacceptable returns on equity: If returns on assets and owners’ equity fall below acceptable
levels, My Niece Foods will first examine and compare the per-unit costs of production and
marketing with sales prices. If the margins are too thin, a price increase for products sold in
specialty/gourmet shops will be considered. However, because established non-flavored substitutes
already exist at lower prices, the lost sales resulting from a price increase may make this option
unsuitable for products sold in general food stores. My Niece Foods will therefore assess
opportunities for minimizing production costs and examine different marketing/distribution
alternatives.

The products we will be offering to our customers is the “Whipped Dream”

Business Targets of My Niece Foods are:

To earn net profit margin of 50,000 per month by the end of the first year

To maintain an average client rating score of 4.5 out of 5 at the end of first year

To increase our sales by 50% every 2 months

Financial Plan

Source of startup Expenditure

We have been able to carry out a detailed study on the amount we will need to startup our Food Business.
A total 100,000 is what we will need to fully set up our Food Business in Masinloc, Zambales. A third of the
startup capital will be raised by the owners, Ms. Melchie Ejase. Another third will be secured by obtaining
loans from the owners’ banks, while the final third will be sourced from friends and families of the owners.

CONCLUSION

Nowadays Food Industries is one of the largest industries in the world. Every corner of the globe has a
food business so we conduct this business plan. We all know that if a business has a good customer service
it can ensure you that profit will be made because it is a key factor that can determined the success rate of
a business.