Transcription
BUSINESS PLAN:SHANNON LOWERYERIN FAIGHTCHRISTINA RULLOALEC ROBERTSON
LEGAL NAME:Groceries-R-UsBUSINESS DESCRIPTION:Our company will offer the service of delivering groceries to people who are unable to conveniently grocery shop themselves.We will take orders via phone and online and fulfill the orders before delivering the items to customers. For a la carteorders, customers will pay the fee of the groceries plus a percentage of interest which will be the profit for our service.We also will offer special packages for target groups such as a family-friendly, college focused, and health-enthusedcustomers.FORM OF BUSINESS OWNERSHIP:Multi-Partner PartnershipLOCATION:One Oxford Center, 301 Grant Street, Suite 4300, Pittsburgh, Pennsylvania, 15219VISION AND MISSION STATEMENT:Groceries-R-Us will strive to provide the most affordable and convenient service to our customers in Allegheny County whowill also receive the highest quality customer service. We take the hassle out of shopping in store, while still bringing thesame great quality of your favorite products right to your front door.
COMPETITIVE MARKET hs-A huge brand name-Very inexpensive-Large selection of brand name products-- Already have a well established customer base.-- Simple website layout-- Wide variety of product choices and categories ofproducts-Already own and distribute groceries in store, sothey will not be a middle man for the grocerydelivery process-Solid social media integration-Simple easy to use website-- Service all 50 states-- Services exclusively to Western PA-- InexpensiveWeaknessWeakness- Great social media following-Unknown companyWeakness-- Very limited brand selection-Not well advertised-Delivery outsourced by FedEx-- Limited selection of groceries and brands-- Does not service Allegheny county- Not able to focus marketing efforts specifically ongroceries because they have a wide selection ofproducts and product categoriesBEST GROCERY DELIVERY-Unknown company- Ugly website design-No social media-- Very limited delivery areas- Expensive
INDUSTRY PROFILESWOT ANALYSISStrengthsOpportunities:-Our company will be unique because unlike our competitors we also will offer specialpackages for target groups such as a family-friendly, college focused, and healthenthused customers. This will provide a quicker and more effective buying process forour target market that will fit in well with their busy lifestyle.-Another great selling point for our business is the fact that the products that we aredistributing will be purchased from Foodland, this grocery store already has a loyalcustomer base and a reputation for reasonably priced products. Our service will addon to the benefit that Foodland already provides its customers.-Finally we will sell exclusively to Allegheny County ensuring our customers that our focus islocal and not like a corporation who can sometimes forget about segments of itsgeographic market.Weakness and Planned ResourcesOur biggest anticipated challenge is getting Foodland on board with the partnership. we hopethat our business model along with the fact that we will provide service for only theircustomers will sway them into accepting our offer. The biggest resource we have in thiscase is exclusivity for Foodland.The biggest opportunity that we see is being able toprovide healthy lifestyle bundles, based on statisticsand sociocultural analysis we have concluded thatconsumers want healthier food options but it is clearto us that they don’t have the time to research what ishealthy or not so we step in and do the legwork forthem.Threats:The largest environmental factor for our company isthe rising gas prices, it is hard to determine wheregas will be at the end of every quarter therefore it ishard to determine our costs. If we are payingextremely high gas prices we will have to raise ourdelivery charge for customers in order to make anysort of profit and this will cause a loss of business.Our next concern is whether or not people will choose to use our business over that of anational chain like Wal-Mart because we are the middle man for Foodland, while WalMart already has access to its own product. Our hope is that the added benefit of thepackaging/ bundling option will make our company stand out above that of ourcompetition. The resources that make this a challenge we can overcome is the factthat the delivery process is not outsourced like our competition, we have our owntrucks and delivery equipment making the prices comparable.Industry Description- Our business is a grocery delivery company in the service industry because we provide theservice of grocery delivery as well as bundling groceries for different individual or family needsand wants. Our growth potential is very high because based on a study by seekingalpha.com,focus on consumer health is one of the leading trends in 2012. Our bundling service providesthe consumer with the option of choosing a healthy lifestyle bundle. Being able to offer theconsumer healthier options at the click of a button, without the hassle of doing their ownresearch into healthier food options will give us a huge edge in the grocery delivery industry.
lecandShannon- ‐Create vision of business, overseeoperations, handle hiring -inancialmanagerwithin- tmanagementoftheoperationsmanager,thein- ebusiness.
3 year goal: To be recognized as the area’s premier provider for grocery deliveryservice. To increase company size to 12 employees (4 owners and 8 deliverydrivers) over the first 3 years of operation.CODE OF ETHICS1.Respect, honesty and fairnessmust be maintained with thehighest priority in all workingrelationships2.All delivery commitments must behandled promptly and courteouslyby our staff.3.We will continue to make thebusiness grow through commongoals and teamwork.4.Employee safety will be held in highpriority To increase delivery vehicle fleet to 8 vehicles. To make a profit of 500,000 during year 3 operations. To expand service area to include a 30 mile radius around the City ofPittsburgh.5 year goal: To expand delivery hours to include 7 days per week.SOCIAL RESPONSIBILITY To increase delivery vehicle fleet to 12 vehicles. To increase company size to 16 employees (4 owners and 12 deliverydrivers) over the first 5 years of operation. To make a profit of 1,500.000 during year 5 operations. Hybrid DeliveryVans Reusable ShoppingBags Recycling Program
MARKET RESEARCH AND PLANNINGTarget MarketPricingBusy working professionalsPricing is a straight 30% gratuity added to the total grocery billCollege StudentsPrices are higher than other grocery delivery services in the citySeniors on a fixed incomeHigher price for a higher level of service and leave room for discountsProduct FeatureCustomers will be able to choose their products bysimply checking a box on our websiteCustomers can request specific packages- healthfood- diabetic diet-food allergiesAdvertising and PromotionValuPak- Coupon distribution service that has the ability to deliver upto 10,000 homes in your particular target market for a fee.Flyer distribution- Senior centers, collage campuses, and grocerystoresProduct DifferentiationGoogle, Yahoo, and Bing profileComprehensive list for packages to create acustomer profileGoogle ADWORDSPhone ordersDelivery time will be predetermined by the customerDistributionOur service will be available online and over the phone.The products will be delivered straight to the customers door.
FINANCIALSProjected Order Cost/ ProfitWeekly CostSource of Capital/FinancingSource Of CapitalResponsible PartyInvestment AmountFaight, Erin (25%) 25,000.00Lowery, Shannon (25%) 25,000.00Owner's InvestmentRobertson, Alec (25%) 25,000.00Rullo, Christina (25%) 25,000.00Bank LoanStart Up Bank Loan 100,000.00Total Capital 200,000.00initial Start Up CostsStart Up ItemOffice Space (Deposit)Salaries & WagesSupplies: Technological,Equipment, Furniture, Other(computers, software, copymachine, desks, chairs, etc.)Advertising & Other PromotionsUtilities: Telephone, InternetInsuranceDeliver Vehicle PurchaseTotal Start Up CostsTotal CapitalDifferenceEstimated Cost 1,476.00 17,833.33 10,000.00 1,500.00 800.00 800.00 80,000.00 112,409.33 200,000.00 87,590.67Age- ‐gendergroups Low- ‐CostModerate- ‐Average- ‐PlanCostPlanCostPlanMale: 53.20 67.40 60.3019- ‐50 50.70 62.70 56.7051- ‐70 50.50 62.10 56.3071 Female: 46.70 57.80 52.2519- ‐50 45.50 56.50 51.0051- ‐70 45.30 55.90 50.6071 Familesof2 110.50 137.70 124.1019- ‐50 105.90 131.10 118.5051- ‐70Familesof4Couple19- ‐50and 198.00 179.05children2- ‐3&4- ‐5 160.10Couple19- ‐50and 235.70 212.45children6- ‐8&9- ‐11 189.20Averagestorecostperorder 96.13Averagedeleverychargeperorder 33.64Averageexpenseperorder- ‐ 10.00Averageprofitperorder 23.64Data dPlans/2012/CostofFoodAug2012.pdf
BREAKEVEN ANALYSISBreak Even AnalysisNumber of Deliveries per monthFixed Cost AssumptionVariable Cost Assumption per DeliveryTotal Cost per DeliveryProjected Delivery RevnueRevenue1 21,931.00 5.00 21,936.00 33.64- 21,902.36500 21,931.00 2,500.00 24,431.00 16,821.88- 7,609.13600 21,931.00 3,000.00 24,931.00 20,186.25- 4,744.757007668009001000 21,931.00 21,931.00 21,931.00 21,931.00 21,931.00 3,500.00 3,830.00 4,000.00 4,500.00 5,000.00 25,431.00 25,761.00 25,931.00 26,431.00 26,931.00 23,550.63 25,771.11 26,915.00 30,279.38 33,643.75- 1,880.38 10.11 984.00 3,848.38 6,712.751100 21,931.00 5,500.00 27,431.00 37,008.13 9,577.131200 21,931.00 6,000.00 27,931.00 40,372.50 12,441.50
12-MONTH PROFIT & LOSS STATEMENTJanDeliveries 3,364Cost of Deliveries 500FebMarApr 6,729 10,093 20,186 13,458 1,000 1,500Office Space Rent (includes utilities) 738 738 738Salaries & Wages 17,833 17,833 17,833Advertising & Other Promotions 500 500 500Utilities: Telephone, Internet 160 160 160Insurance 800 800 800Bank Loan 1,700 1,700 1,700Delivery Vehicle Maintenance 200 200 200Total Fixed Expenses 21,931 21,931 21,931Net Profit / LossQ1 3,000 2,000 2,214 738 53,500 17,833 1,500 500 480 160 2,400 800 5,100 1,700 600 200 65,794 21,931- 19,067 - 16,203 - 13,338 - 48,608 - 10,474MayJunQ2Revenue 16,822 20,186 50,466Variable Expense 2,500 3,000 7,500Fixed Expenses 738 738 2,214 17,833 17,833 53,500 500 500 1,500 160 160 480 800 800 2,400 1,700 1,700 5,100 200 200 600 21,931 21,931 65,794Net Profit / Loss- 7,609 - 4,745 - 22,828JulAugSepQ3OctNovDecQ4Year to Date 23,551 25,771 26,915 76,237 30,279 33,644 37,008 100,931 247,820 3,500 3,830 4,000 11,330 4,500 5,000 5,500 15,000 36,830 738 17,833 500 160 800 1,700 200 21,931 738 17,833 500 160 800 1,700 200 21,931 738 17,833 500 160 800 1,700 200 21,931 2,214 53,500 1,500 480 2,400 5,100 600 65,794 2,214 53,500 1,500 480 2,400 5,100 600 65,794 8,856 214,000 6,000 1,920 9,600 20,400 2,400 263,176- 1,881 10 984- 887 3,848 6,712 9,577 20,137- 52,186 738 17,833 500 160 800 1,700 200 21,931 738 17,833 500 160 800 1,700 200 21,931 738 17,833 500 160 800 1,700 200 21,931
EMPLOYEE SALARYEmployeesHourly SalaryFaight, ErinLowery, ShannonRobertson, AlecRullo, ChristinaDriver 1Driver 2Driver 3Driver 4Total Compensation 17.07 17.07 17.07 17.07 8.65 8.65 8.65 8.65 102.88EstimatedEstimated YearlyMonthly SalarySalary 2,958.33 35,499.99 2,958.33 35,499.99 2,958.33 35,499.99 2,958.33 35,499.99 1,500.00 18,000.00 1,500.00 18,000.00 1,500.00 18,000.00 1,500.00 18,000.00 17,833.33 213,999.96
BALANCE SHEET
BUSINESS PLAN: SHANNON LOWERY ERIN FAIGHT CHRISTINA RULLO ALEC ROBERTSON . BUSINESS DESCRIPTION: Our company will offer the service of delivering groceries to people who are unable to conveniently grocery shop themselves. We will take orders via phone and online and fulfill the orders before delivering the items to customers. For a la carte orders, customers will pay the fee of the
