Final Business Plan. Kalie Herman. University of Southern Mississippi
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1 1 Final Business Plan Kalie Herman University of Southern Mississippi
2 2 Table of Contents Executive Summary Description, Target Market, and Goals Business Vision Short-term and Long-term Goals Potential Market Products and Services Offered Current and Future Flavors Management Marketing Strategy Before and During Operations Pro-forma Appendices
3 3 Executive Summary Miracle Milkshakes is envisioned to be a kiosk stand within the Hederman Cancer Center at Baptist Hospital. This oncology unit treats more cancer patients than any other oncology unit in the state of Mississippi. The large number of cancer patients and their families passing through makes it the perfect environment to open up Miracle Milkshakes. Miracle Milkshakes is a kiosk business that prepares and sells its own milkshake creations. These milkshake creations are tailored specifically for patients with cancer. They are high in calories, protein, and fat to keep cancer patients from losing body weight and muscle mass. Not only would these milkshakes be nutritious for them but they would also taste delicious. This would allow the patients to get nutrient dense foods and a pleasurable milkshake in one. Miracle Milkshakes would be located right within the Hederman Cancer Center making it easily accessible for patients and their families. Miracle Milkshakes also delivers to rooms anywhere in the hospital if patients are too weak to go to the kiosk themselves. Miracle Milkshakes plans on marketing towards cancer patients and their families that pass through the Hederman Cancer Center. Miracle Milkshakes plans to hang a banner outside of the construction area that announces the kiosk is coming soon. Flyers and coupons will initially be passed out amongst patients, their families, and health care providers within the oncology unit. This will begin to notify future customers that Miracle Milkshakes is opening soon. Social media will also be utilized to keep future customers up to date on construction, the opening date, what Miracle Milkshakes is all about, and the menu. This will build customers anticipation and get them excited to try Miracle Milkshakes. Once Miracle Milkshakes is up and
4 4 running, the flyers, coupons, and the use of social media will continue to be used to promote new flavors, new products, and discount deals. Miracle Milkshakes plans to start off with five flavors of milkshakes and grow from there. Within a year, Miracle Milkshakes plans to strengthen financially while introducing seasonal milkshakes and permanent milkshakes slowly. This will help to keep customers intrigued and coming back for more. Within the next 2-5 years, Miracle Milkshakes plans to expand the kiosk and provide more products to the customers. Seven years after opening, Miracle Milkshakes plans to expand its services to other hospitals and oncology units in the area. Business Vision The vision of Miracle Milkshakes is in line with the mission statement for Baptist Health Systems which is to pursue the highest quality care for all patients. Miracle Milkshakes envisions doing just that by providing flavorful, high calorie and high protein milkshakes to cancer patients in the oncology unit. Cancer is a stressful time for patients and their families. There is what seems to be never ending treatments that are hard on the patient s body, physically and mentally. The treatments lead patients to lose their appetite, alter their senses of taste and smell, and increase their energy needs. The appetite, taste, and smell alterations can cause patients to decrease their intake greatly. This combined with their increased energy needs can cause many cancer patients to become malnourished. Malnourishment would cause the recovery process to take longer and decrease their chances of a safe recovery.
5 5 So, that is where Miracle Milkshakes comes in to provide the highest quality care for cancer patients. Miracle Milkshakes will proudly serve high calorie and high protein milkshakes to cancer patients in the oncology unit. Miracle Milkshakes are rich in flavor and creamy which makes eating them so enjoyable. The high calorie and high protein milkshakes will allow cancer patients to maintain their weight and muscle mass during their treatments. Miracle Milkshakes plans to start small and grow big. The menu is going to start out with just five flavors which are: Banana Chocolate Peanut Butter Shake, Strawberry Sherbet Swirl, Cookies and Cream Creation, Mega Mango Milkshake, and Double Fudge Chocolate Shake. After sales have showed a steady, strong income, more products will be introduced at Miracle Milkshakes. More flavors will hit the menu, new products, and a variety of sizes. Potential flavors include salted caramel, cookie dough, and coconut hot-fudge. Potential new products include warm muffins, soups, breads, and homemade granola bars. Introduction of these products will occur in 2-5 years, once the business is financially stable and is able to expand. A variety of sizes will be offered based on customer of the original size. Based on their response, smaller or larger sizes will be available for customers to order. Potential Market Upon extensive review, Baptist Health System s cancer unit, Hederman Cancer Center treats approximately 2,000 cancer patients a year. That is more than any other hospital in the state of Mississippi. Hederman Cancer Center is a three story cancer unit connected to Baptist Health System in downtown Jackson, Mississippi. Of those 2,000 patients, about 40% of them will lose weight during treatment according to the American Cancer Society (2012). At the
6 6 Hederman Cancer Center, bladder, bone, brain, breast, cervical, colon, esophageal, Hodgkin s lymphoma, Non-Hodgkin s lymphoma, kidney, liver, lung, melanoma, ovarian, pancreatic, prostate, skin, stomach, testicular, thyroid, and uterine cancer are all treated. With the wide variety of cancer treatments, exceptionally high amounts of cancer patients seen each year, and nearly half of them losing weight, it is evident that Miracle Milkshakes would succeed in this type of market. Within the potential marketing area, there is an ice cream shop that serves milkshakes but milkshakes that are not as beneficial as Miracle Milkshakes. Miracle Milkshakes tailors their milkshakes to meet the needs of cancer patients by providing high calorie, high protein, rich, creamy milkshakes that they can enjoy right at their convenience. Patient services do offer supplemental shakes for cancer patients but upon interviews with several dietitians at Baptist Health Systems, many patients do not like these supplemental shakes. They complain of them being powdery or gritty. Miracle Milkshakes would provide milkshakes that are smooth and rich in flavor which cancer patients have said they would enjoy. Providing the patients with shakes they would enjoy would allow them to maintain their weight and muscle mass while bringing pleasure into their day. Products and Services Offered Miracle Milkshakes will offer a variety of high calorie and high protein milkshakes for cancer patients. Upon opening, there will be five milkshakes available to order with plans to expand the menu in the future. All milkshakes will be made with whole milk and carnation instant breakfast mixes. These ingredients will boost calories, fat, and protein which are
7 7 beneficial to those suffering from cancer. The flavorful milkshakes will hopefully make getting those nutrients more enjoyable. The first five flavors will be Banana Chocolate Peanut Butter Shake, Strawberry Sherbet Swirl, Cookies and Cream Creation, Mega Mango Milkshake, and Double Fudge Chocolate Shake. The Banana Chocolate Peanut Butter Shake will be made with 1 banana, 4 tablespoons peanut butter, 1 cup chocolate ice cream, ½ cup whole chocolate milk, 1 package of chocolate carnation instant breakfast. This milk shake would provide the patient with 1000 calories, 31 grams of protein, and 52 grams of fat. The second milkshake would be the Strawberry Sherbet Swirl. This milk shake would be made with 1 cup of frozen strawberries, 1 cup of strawberry sherbet, ½ cup whole milk, and 1 package of vanilla carnation instant breakfast. This sweet milkshake would provide the patient with 634 calories, 22 grams of protein, and 10 grams of fat. The other fruity milkshake would be the Mega Mango Milkshake which would consist of 1 cup frozen mangos, 1 cup mango sherbet, ½ cup whole milk, and 1package of carnation instant breakfast. This milkshake would provide the patient with 710 calories, 22 grams of protein, and 10 grams of fat. Cookies and Cream Creation would be the fourth milkshake Miracle Milkshakes offers. This rich milkshake would be made of 1 cup of cookies and cream ice cream, ½ cup whole milk, 3 Oreo cookies, and 1 package of carnation instant breakfast. This milkshake would provide patients with 904 calories, 25 grams of protein, and 46 grams of fat. The last milkshake that Miracle Milkshakes would offer at the grand opening would be the Double Fudge Chocolate Shake. This milkshake would consist of 1 cup of chocolate ice cream, 1 brownie slice, ½ cup
8 8 whole milk, and 1 package of carnation instant breakfast. Together, these ingredients would provide the patient with 794 calories, 24 grams of protein, and 35 grams of fat. Miracle Milkshakes would prepare all milkshakes at the kiosk stand in the oncology unit at Baptist Hospital. Patients could order them at the kiosk and take them to go or stay and drink them at some of the benches and tables right beside the Miracle Milkshakes kiosk. The patients could also order a milkshake by calling Miracle Milkshake and placing their order. The phone number and extension number would both be listed in the hospital booklet that next to their bed with other information about the hospital. Call-in orders could be picked up or delivered to the patient s room wherever they may be in the hospital. The delivery service would allow those patients that are extremely fatigued to get the nutrients they need to recover. Management Miracle Milkshakes would be made up of five employees. Four employees would be full time employees who are responsible for taking milkshake orders, preparing milkshakes, ringing up milkshakes, delivering milkshakes, and cleaning the kiosk area. These four employees would also be responsible for routine opening and closing procedures of kiosk. These procedures include locking the register and kiosk, cleaning all counter tops and work areas, recording temperatures of refrigerators and freezers, and turning on/off all lights. The employees would also be responsible for following all recipes and notifying the manager when ingredients are low. Each employee would have a regular schedule of working 40 hours a week. There would always be two employees on shift at a time. One to be at the kiosk taking orders and preparing
9 9 milkshakes all of them time while the other employee would aid in preparing the milkshakes but would be responsible for delivering milkshakes to patient s rooms. The fifth employee would be the manager of Miracle Milkshakes. The manager would be responsible for ensuring all employees are following standards, ordering ingredients, scheduling shifts, marketing the products, and maintaining the budget. The manager would help out employees when needed and be on call when not working. The manager would work 40 hours a week. Marketing Strategy Miracle Milkshakes would begin marking their grand opening while the kiosk is being built. A large banner that advertises the business would hang in the construction area. This banner would say Coming Soon: Miracle Milkshakes Shakin Cancer One Milkshake at a Time. With the banner hanging up around the construction area, it will increase the anticipation of future customers and allow them to gain an idea of what business is actually coming in. When the grand opening gets closer, flyers and coupons will be handed out to patients and their families. See Appendices B-1 and B-2 as a sample. The flyer will include information about what Miracle Milkshakes is all about, their mission, and flavors of the first five milkshakes. The opening date will also be listed on the flyer along with information to follow Miracle Milkshakes on social media such as Facebook, Twitter, and Instagram. Involving social media will allow
10 10 Miracle Milkshakes to market towards more individuals. Initially, the social media websites will keep future customers up to date on the construction process and the grand opening date to build excitement amongst them. Once Miracle Milkshakes was up and running, the social media advertising would switch to marketing new products, deals, and events. All together, Miracle Milkshakes would market to their customers before the grand opening through banners, flyers, coupons, and social media. After the grand opening, Miracle Milkshakes would continue marketing through flyers, coupons, and social media sites. All of these different types of marketing strategies would allow Miracle Milkshakes to reach as many customers as possible. Pro-forma Miracle Milkshakes would have many investments within the first year of business in order to start up successfully. This includes purchasing the kiosk, equipment, supplies, and inventory. An estimated income statement is listed in Appendix A. The kiosk would cost roughly $800 a month to rent for the year which comes out to be $9,600. Equipment must also be purchased. Upon starting, one reach-in refrigerator, one reach-in cooler, three blenders, one two compartment sink, and a cash register must be purchased. The seven pieces of equipment combined will cost approximately $7,435. Supplies which include food products, cups, utensils, napkins, and decorations will cost approximately $65,000 for the first year. Of the $65,000,
11 11 $53,000 will be strictly food costs. This includes all ingredients: ice cream, sherbet, white and chocolate whole milk, peanut butter, Oreos, strawberries, and mangoes. Cups, utensils, napkins, and decorations will use the remaining $12,000 with some room for emergencies. Emergencies include milk or ice cream spoiling, products expiring, product damage, and theft. Based on the plan to hire five employees, Miracle Milkshakes would use $62,000 a year to pay them. This would cover four employees working for the minimum and the manager being paid $10.00 per hour to start off at. The employees would see a pay increase each year they continued to work for Miracle Milkshakes. Miracle Milkshakes will be covered by insurance in case anything was to happen to the kiosk, a piece of equipment, an employee, or a customer. Insurance will cost approximately $10,000 for the first year. Miracle Milkshakes plans to do all of the marketing and designing for advertisement except the printing aspect of it. Miracle Milkshakes will pair up with Office Depot to print banners, flyers, and coupons for the first year. This will cost Miracle Milkshakes approximately $
12 12 Appendix A Pro-forma Gross Sales 275,000 Beginning Inventory 60,000 Materials Purchased 73,000 Ending Inventory 45,000
13 13 Cost of Goods Sold 88,000 Gross Profit 187,000 Fixed Expenses Wages 62,000 Accounting and Legal 1,200 Advertising 200 Rent 9,600 Supplies 73,000 Utilities 2,500 Repairs 0 Insurance 10,000 Misc. 1,000 Total 159,500 Net Profit 27,500
14 14 Appendix B-1 COMING SOON MIRACLE MILKSHAKES Miracle Milkshakes are nutrient dense milkshakes made especially for individuals battling cancer. These delicious milkshakes are smooth, creamy, and rich in flavor. The high amount of calories, protein, and fat within each milkshake is guaranteed to help with weight and muscle mass maintenance. Flavors: Banana Chocolate Peanut Butter Shake Strawberry Sherbet Swirl Cookies and Cream Creation Mega Mango Milkshake Double Fudge Chocolate Shake Expected to open April 2015 in the Hederman Cancer Center at Baptist Health Systems.
15 15 Appendix B-2 MIRACLE MILKSHAKES Take 10% off your first milkshake. Limit one milkshake per customer. Offer expires August 31, 2015.
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