Business Profile 10/5/2010. Eva Tan Age: 20

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1 Eva Tan Age: 20 1 Mission Statement Mission Statement Eva s Edibles, a personal chef service, will provide busy professionals with healthy and delicious dinners that are based on their preferences and prepared in their own kitchens. Opportunity Columbus has a growing population of professionals who have busy lifestyles, but want healthy yet affordable dinner options. 2 Type of Business Business Profile Eva s Edibles is a service business cooking meals for customers in the customers own kitchens. Legal Structure Eva s Edibles is a Limited Liability Company (LLC). I chose this status to protect my personal assets and give the company some added tax benefits. 3 1

2 Qualifications I m qualified to run this business because: I am a Certified Personal Chef, a certification offered by the U.S. Personal Chef Association (USPCA). I ran an event-planning business for four years. I have an associate s degree in Business Management and was Assistant to the Director of Campus Dining Services at Ohio State University. 4 Market Analysis Industry Name Industry Size Personal Chef Industry/Special Food Services $32,000,000 (personalchef.com) Total Population Target Market Potential Market Columbus, Ohio, households with two or more people Above households with household income of $50,000 or more Above households that go out to dinner or order in at least four days per week Total Population 301,800 Target Market 110,760 Potential Market 27,690 5 Target Market Segment Demographics Professional couples and families, with household incomes of over $50,000 Geographics Greater Columbus, Ohio, area Psychographics Desires healthy food, often dual-income households living hectic lives, hard working, would like to spend more time at home without increasing time in the kitchen cooking and cleaning up Buying Patterns Eats out often (4 times a week) but would like to reduce the cost of eating out 6 2

3 Competitive Advantage Factors Eva s Edibles At-Home Chef Chef d Jour Price $325/5 dinners $400/5 dinners $500/5 dinners Quality of Product/Service Custom meals, healthy Meals from chef s plan, l not t focused f on health Meals from chef s plan, l healthy Location Columbus Columbus Columbus Reputation/Brands New to market Known, but not good reputation Well established, good reputation Unique Factors/ Knowledge Certified Personal Chef, event planning Focuses on kid friendly meals Certified Personal Chef, knows customers 7 Marketing Mix Appeals to busy professional who value free time and healthy, home-cooked meals Customers in the greater Columbus, OH area Website, USPCA referrals, in-store promotions, providing samples at local events, customer retention program People Product Place Price Promotion I will purchase groceries, cook 5 dinners in the customer s kitchen, store the meals in their freezer, and clean up $325 for 5 full, healthy dinners is competitive, but affordable when compared to eating out or ordering in 8 Advertising Promotional Mix Promotional Expense Brochure, cards, postage, Website development Monthly Amount $146 Publicity Press releases, postage $5 Contacting past customers of eventplanning, OSU contacts, follow up mail- Personal Selling back cards from brochure Sales Promotion Purchasers of three 5-dinner meal plans receive free snacks and desserts Other Customers referring other customers receive 10% for 3 meal plans Total Monthly Promotional Expense $

4 Cost of Materials/Labor Materials Material Description Cost/Total Quantity Cost per Unit Groceries Varies per customer, for $100 5 dinners Total Material Cost per Unit $100 Labor Labor Cost per Hour Time (in Hours) to Labor Cost per Unit Make One Unit $25 6 $150 Total Labor Cost per Unit $150 COSS (per Unit) $ Economics of One Unit Description of One Unit of Sale: 5-Dinner Plan (1 Day of Cooking) Selling Price (per Unit) $325 COSS (per Unit) 250 Other Variable Expenses (per Unit) 4 Total Variable Expenses (per Unit) 254 Contribution Margin (per Unit) $71 11 Average Monthly Fixed Expenses Fixed Expense Average Monthly Expense* Insurance $117 Salaries of Employees Advertising 146 Interest Depreciation 17 Utilities (Gas, Electric, Telephone) 100 Rent Other Fixed Expenses (Auto- and 107 Cooking-Related) Total Average Monthly Fixed Expenses $487 * Numbers are rounded to the nearest dollar throughout. 12 4

5 Time Management Plan Schedule for a Typical Week Total Hours in a Week = 168 Free Time 42 Work 70 Sleep Hours 13 nits Sold Un Monthly Sales Projections First Year Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Units Sold Monthly Break Even Units =8.04 In an average month, the company will begin to make a profit after selling 8 units. 15 5

6 Projected Yearly Income Statement First Year Selling Price per Unit $325 Number of Units Sold 252 Total Sales $81,900 Variable Expenses 64,000 Contribution Margin 17,892 Fixed Operating Expenses 5,844 Pre-Tax Profit 12,048 15% $1,807 Net Profit $10, Start Up Investment Start-Up Expenditures Item Where Will I Buy This? Cost Knife Kit (7-Knife On-Line $550 Set) Cooking Equipment On-Line 475 (10-Piece Set) Miscellaneous Cooking Equipment On-Line 313 Spices, Oils, etc. Grocery Store 100 Wheeled Cart On-Line 550 Total Start-Up Expenditures $1,988 Cash Reserves Emergency Fund $1,000 Reserve for Fixed Expenses 2,012 Total Start-Up Investment $5, ROS & ROI ROS: Return on Sales For My Business: $10,241 $10,241 X 100 =13% ROS $81,900 $81,900 X 100 =13% ROS Dollar Equivalent = $0.13 ROI: Return on Investment For My Business: $10,241 $5,000 X 100 =205% ROI Dollar Equivalent = $

7 Financing Strategy Total Start-Up Investment $5,000 Source Amount Debt Equity Gift Personal Savings $5,000 $5,000 Relatives/Friends Investor Partner(s) Totals $5,000 $5, Business Responsibility & Philanthropy Business Responsibility Use natural, organic, locally grown ingredients Use green practices Choose vendors who are environmentally and socially responsible Philanthropy Provide internships for culinary students in the community Speak to elementary students about healthy eating Contribute 1% of yearly net profit to local food bank after three years of operation 20 Business & Personal Goals Business Personal Short-Term Build a strong customer base to ensure returning customers Strengthen relationship with local grocers and farmers to reduce costs and offer better produce Take a USPC course on growing a personal chef business Use the services of the USPC more, including local meetings to meet colleagues Long-Term Lease or buy a commercial kitchen to serve more clients by delivering meals to customers Establish a relationship with the local community college in order to find graduating culinary students as possible employees I have no plans to leave the business in the foreseeable future Investigate the possibility that in the future the business could be franchised in other cities 21 7

8 Let us be your personal chef! Thank you for your consideration. 22 8