Posted November 9, 2017 (edited) STATEMENT OF PURPOSE Commercial Food, Inc. seeks a loan of $75,000 to establish a new business. This sum together with $5,000 equity investment by the principals will be used as follows: Merchandise inventory $25,000 Office fixture/equipment 12,000 Warehouse equipment 14,000 One delivery truck 10,000 Working capital 39,000 Total $100,000 DESCRIPTION OF THE BUSINESS Commercial Foods, Inc. will be a distributor of specialty food service products to hotels and upscale restaurants in the geographical area in a 50 mile radius of Roseport. Richard Roberts will direct the sales effort and John Williams will manage the warehouse operation and the office. One delivery truck will be used initially with a second truck added in the third year. We expect to begin operation of the business within 30 days after securing the requested financing. MANAGEMENT A. Richard Roberts is a native of Memphis, Tennessee. He is a graduate of Roseport State University with a Bachelor's degree from the School of Business. After graduation, he worked for a major manufacturer of specialty food service products as a detail sales person for five years and for the past three years, he has served as a product sales manager for this firm. B. John Williams is a native of Roseport. He holds a B.S. Degree in Food Technology from the University of Tennessee. His career includes five years as a product development chemist in gourmet food products and five years as operations manager for a food service distributor. Both men are healthy and energetic. Their backgrounds complement each other which will ensure the success of Commercial Foods, Inc. They will set policies together and personnel decisions will be made jointly. Initial salaries for the owners will be $1,000 per month for the first few years. The spouses of both principals are successful in the business world and earn enough to support the families. They have engaged the services of Foster Jones, CPA, and William Hale, Attorney to assist them in an advisory capacity. PERSONNEL The firm will employ one delivery truck driver at a wage of $8.00 per hour. One office worker will be employed at $7.50 per hour. One part-time employee will be used in the office at $5.00 per hour. The driver will load and unload his own trucks. Mr. Williams will assist in the warehouse operation as needed to assist one stock person at $7.00 per hour. An additional delivery truck and driver will be added the third year. LOCATION The firm will lease a 20,000 square foot building at 3003 Avondale Ave., in Roseport, which contains warehouse and office areas equipped with two-door truck docks. The annual rental is $9,000. The building was previously used as a food service warehouse and very little modification to the building will be required. PRODUCTS AND SERVICES The firm will offer specialty food service products such as soup bases, dessert mixes, sauce bases, pastry mixes, spices, and flavors, normally used by upscale restaurants and nice hotels. We are going after a niche in the market with high quality gourmet products. There is much less competition in this market than in standard run of the mill food service products. Through their work experiences, the principals have contacts with supply sources and with local chefs. THE MARKET We know from our market survey that there are over 200 hotels and upscale restaurants in the area we plan to serve. Customers will be attracted by a direct sales approach. We will offer samples of our products and product application data on use of our products in the finished prepared foods. We will cultivate the chefs in these establishments. The technical background of John Williams will be especially useful here. COMPETITION We find that we will be only distributor in the area offering a full line of gourmet food service products. Other foodservice distributors offer only a few such items in conjunction with their standard product line. Our survey shows that many of the chefs are ordering products from Atlanta and Memphis because of lack of adequate local supply. SUMMARY Commercial Foods, Inc. will be established as a foodservice distributor of specialty food in Roseport. The principals, with excellent experience in the industry are seeking a $75,000 loan to establish the business. The principals are investing $25,000 as equity capital. The business will be set up as an "S" Corporation with each principal owning 50% of the common stock in the corporation. PRO FORMA INCOME STATEMENT Attached is a three year pro forma income statement we believe to be conservative. Also attached are personal financial statements of the principals and a projected cash flow statement for the first year. 1st Year 2nd Year 3rd Year Gross Sales 300,000 400,000 500,000 Less Allowances 1,000 1,000 2,000 Net Sales 299,000 399,000 498,000 Cost of Goods Sold 179,400 239,400 298,800 Gross Margin 119,600 159,600 199,200 Operating Expenses Utilities 1,200 1,500 1,700 Salaries 76,000 79,000 102,000 Payroll Taxes/Benefits 9,100 9,500 13,200 Advertising 3,000 4,500 5,000 Office Supplies 1,500 2,000 2,500 Insurance 1,200 1,500 1,800 Maintenance 1,000 1,500 2,000 Outside Services 3,000 3,000 3,000 Whse Supplies/Trucks 6,000 7,000 10,000 Telephone 900 1,000 1,200 Rent 9,000 9,500 9,900 Depreciation 2,500 2,000 3,000 Total Expenses 114,400 122,000 155,300 Other Expenses Bank Loan Payment 15,000 15,000 15,000 Bank Loan Interest 6,000 5,000 4,000 Total Expenses 120,400 142,000 174,300 Net Profit (Loss) (800) 17,600 24,900 FINANCIAL STATEMENT I Assets Liabilities Cash 15,000 1991 Olds 11,000 Unpaid Balance 8,000 Residence 140,000 Mortgage 105,000 Mutual Funds 12,000 Credit Cards 500 Furniture 5,000 Note Payable 4,000 Merck Stock 10,000 182,200 117,500 Net Worth 64,700 182,200 182,200 FINANCIAL STATEMENT II Assets Cash 5,000 1992 Buick Auto 15,000 Unpaid Balance 12,000 Residence 120,000 Mortgage 100,000 U.S. Treasury Bonds 5,000 Credit Cards 500 Home Furniture 4,000 Note Payable 2,500 AT&T Stock 3,000 147,000 115,000 Net Worth 32,000 147,000 147,000 Edited November 9, 2017 by ItsRaiden 2 Share this post Link to post Share on other sites
Posted November 19, 2017 I think this is a good way to plan for a business 1 Share this post Link to post Share on other sites
Posted November 20, 2017 9 hours ago, ItsRaiden said: I think this is a good way to plan for a business I like the way you think honestly, I'd be interested in working for you if you want to talk further about it, message me. Share this post Link to post Share on other sites
Posted November 20, 2017 On 11/8/2017 at 8:24 PM, ItsRaiden said: STATEMENT OF PURPOSE Commercial Food, Inc. seeks a loan of $75,000 to establish a new business. This sum together with $5,000 equity investment by the principals will be used as follows: Merchandise inventory $25,000 Office fixture/equipment 12,000 Warehouse equipment 14,000 One delivery truck 10,000 Working capital 39,000 Total $100,000 DESCRIPTION OF THE BUSINESS Commercial Foods, Inc. will be a distributor of specialty food service products to hotels and upscale restaurants in the geographical area in a 50 mile radius of Roseport. Richard Roberts will direct the sales effort and John Williams will manage the warehouse operation and the office. One delivery truck will be used initially with a second truck added in the third year. We expect to begin operation of the business within 30 days after securing the requested financing. MANAGEMENT A. Richard Roberts is a native of Memphis, Tennessee. He is a graduate of Roseport State University with a Bachelor's degree from the School of Business. After graduation, he worked for a major manufacturer of specialty food service products as a detail sales person for five years and for the past three years, he has served as a product sales manager for this firm. B. John Williams is a native of Roseport. He holds a B.S. Degree in Food Technology from the University of Tennessee. His career includes five years as a product development chemist in gourmet food products and five years as operations manager for a food service distributor. Both men are healthy and energetic. Their backgrounds complement each other which will ensure the success of Commercial Foods, Inc. They will set policies together and personnel decisions will be made jointly. Initial salaries for the owners will be $1,000 per month for the first few years. The spouses of both principals are successful in the business world and earn enough to support the families. They have engaged the services of Foster Jones, CPA, and William Hale, Attorney to assist them in an advisory capacity. PERSONNEL The firm will employ one delivery truck driver at a wage of $8.00 per hour. One office worker will be employed at $7.50 per hour. One part-time employee will be used in the office at $5.00 per hour. The driver will load and unload his own trucks. Mr. Williams will assist in the warehouse operation as needed to assist one stock person at $7.00 per hour. An additional delivery truck and driver will be added the third year. LOCATION The firm will lease a 20,000 square foot building at 3003 Avondale Ave., in Roseport, which contains warehouse and office areas equipped with two-door truck docks. The annual rental is $9,000. The building was previously used as a food service warehouse and very little modification to the building will be required. PRODUCTS AND SERVICES The firm will offer specialty food service products such as soup bases, dessert mixes, sauce bases, pastry mixes, spices, and flavors, normally used by upscale restaurants and nice hotels. We are going after a niche in the market with high quality gourmet products. There is much less competition in this market than in standard run of the mill food service products. Through their work experiences, the principals have contacts with supply sources and with local chefs. THE MARKET We know from our market survey that there are over 200 hotels and upscale restaurants in the area we plan to serve. Customers will be attracted by a direct sales approach. We will offer samples of our products and product application data on use of our products in the finished prepared foods. We will cultivate the chefs in these establishments. The technical background of John Williams will be especially useful here. COMPETITION We find that we will be only distributor in the area offering a full line of gourmet food service products. Other foodservice distributors offer only a few such items in conjunction with their standard product line. Our survey shows that many of the chefs are ordering products from Atlanta and Memphis because of lack of adequate local supply. SUMMARY Commercial Foods, Inc. will be established as a foodservice distributor of specialty food in Roseport. The principals, with excellent experience in the industry are seeking a $75,000 loan to establish the business. The principals are investing $25,000 as equity capital. The business will be set up as an "S" Corporation with each principal owning 50% of the common stock in the corporation. PRO FORMA INCOME STATEMENT Attached is a three year pro forma income statement we believe to be conservative. Also attached are personal financial statements of the principals and a projected cash flow statement for the first year. 1st Year 2nd Year 3rd Year Gross Sales 300,000 400,000 500,000 Less Allowances 1,000 1,000 2,000 Net Sales 299,000 399,000 498,000 Cost of Goods Sold 179,400 239,400 298,800 Gross Margin 119,600 159,600 199,200 Operating Expenses Utilities 1,200 1,500 1,700 Salaries 76,000 79,000 102,000 Payroll Taxes/Benefits 9,100 9,500 13,200 Advertising 3,000 4,500 5,000 Office Supplies 1,500 2,000 2,500 Insurance 1,200 1,500 1,800 Maintenance 1,000 1,500 2,000 Outside Services 3,000 3,000 3,000 Whse Supplies/Trucks 6,000 7,000 10,000 Telephone 900 1,000 1,200 Rent 9,000 9,500 9,900 Depreciation 2,500 2,000 3,000 Total Expenses 114,400 122,000 155,300 Other Expenses Bank Loan Payment 15,000 15,000 15,000 Bank Loan Interest 6,000 5,000 4,000 Total Expenses 120,400 142,000 174,300 Net Profit (Loss) (800) 17,600 24,900 FINANCIAL STATEMENT I Assets Liabilities Cash 15,000 1991 Olds 11,000 Unpaid Balance 8,000 Residence 140,000 Mortgage 105,000 Mutual Funds 12,000 Credit Cards 500 Furniture 5,000 Note Payable 4,000 Merck Stock 10,000 182,200 117,500 Net Worth 64,700 182,200 182,200 FINANCIAL STATEMENT II Assets Cash 5,000 1992 Buick Auto 15,000 Unpaid Balance 12,000 Residence 120,000 Mortgage 100,000 U.S. Treasury Bonds 5,000 Credit Cards 500 Home Furniture 4,000 Note Payable 2,500 AT&T Stock 3,000 147,000 115,000 Net Worth 32,000 147,000 147,000 Where df are you getting these numbers from 1 Share this post Link to post Share on other sites
Posted November 21, 2017 5 hours ago, YouKnowBro said: Where df are you getting these numbers from I believe @ItsRaiden created predicted projections for sales per annum. @ItsRaiden what are your company's short and long term plans? As for the statement of financial position I am not sure where these numbers come from. Is shareholder's / owner's equity taken into account for the statement of financial position? 1 Share this post Link to post Share on other sites
Posted November 21, 2017 (edited) The above is simply a proposal of a business plan with a requested financial loan. This asssumes that the numbers given are correct. However, this is only an example of a business plan. The numbers will very based on assets/capital at the time. Market value of such service is only a prediction with no real data. Which means it's all made up, assuming value only if the example given predicts the market in which the pitched business plan is set in. Assuming the market predictions are true then this business plan is a reflection of what it would look like if you were to pitch the idea in that market. Hence, the numbers come from an example; assuming the writer knows the market of course. The market value of this idea is not given. For the sake of simplicity. When identity launches, the actual end result of such plan will change dramatically. This is simply a real life plan for a business in identity. Assuming markets will be in a similar trend as in real life allows for a real business proposal. The short term and long term goals are outlined in the proposal. We will start with one truck. Based on a 3 year pro forma income statement we can assume what the long term goal is. Like any business how we perform in a 12 quarter period will dictate how well we can expand into bigger and better things. Edited November 21, 2017 by ItsRaiden Share this post Link to post Share on other sites
