Business Financial Plan Herriman High School Lauren Sam and Camille Murdock
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1 6 Business Financial Plan Herriman High School Lauren Sam and Camille Murdock
2 TABLE OF CONTENTS Executive Summary Page Company Description Mission Statement Business Description Legal Form of Business Company Governance Company Location Long and Short Term Goals Operations and Management Business Facilities Services Personnel Target Market Loan Request Purpose Loan Type First Year Expenses Cash Flow Income Statement Works Cited
3 EXECUTIVE SUMMARY Gourmade is a meal kit delivery service that focuses on bringing a gourmet meal to the table, without the hassles of recipe hunting and long grocery checkout lines. Customers order the kits based on meals selected on the Gourmade website, receive the meal kit with ingredients and instructions, then prepare and cook the Gourmade meal. Ingredients are carefully placed into each meal kit which also includes a well explained recipe to prepare the meal. Meal kit delivery businesses are becoming a new trend as people are becoming more and more pressed for time. By utilizing new technology, customers are able to order fresh food online, which allows Gourmade to fill a niche within the food industry. Consumers currently have the mindset that the luxury of quality meals must be sacrificed for efficiency, but Gourmade takes the stress out of cooking, making it possible for even the busiest professional to become a gourmet chef on any weeknight. Gourmade offers a variety of different meal and dessert options that simulate ordering from a restaurant menu. With easy to follow instruction, Gourmade meals are simple to prepare. Gourmade uses locally grown ingredients to create a healthy and delicious meal of the highest standard. The Gourmade experience can be as flexible as needed with as little as two deliveries and a maximum of five deliveries per week. The founders of Gourmade each have experience in their field, which will allow them to lead the company to profitable success. During the process of developing their business model, Gourmade sat down with a local meal kit delivery company, Wasatch Fresh, to compare their business model to an existing company. Some of the information that was compared with details from Wasatch Fresh were: business concepts, customer target market, and financials. Gourmade is requesting a loan for $500,000 to cover the initial expenses of starting the business such as costs of infrastructure, supplies, marketing, and transportation. 2
4 COMPANY DESCRIPTION Mission Statement Gourmade s chef in a box brings the quality ingredients for gourmet meals to your doorstep. Business Description Gourmade is a home meal kit delivery service which provides quality ingredients accompanied by easy to follow instructions, which allows customers to cook a well-balanced, gourmet meal on even the busiest night. Gourmade s slogan, Gourmet chef in a box, illustrates how they provide gourmet ingredients that can be used to create a meal with the highest quality. Gourmade s user-friendly website helps consumers to order meals with ease, and allows their customers to rate past meals. This rating system is used to customize what their next meal will be. The website is also a simple way for customers to order their personalized meal kits. On the website, their customers can choose from a variety of packages to best fit their needs, including specialty diets. What differentiates Gourmade from the competition is they allow customers to order as many portions as needed, whereas competitors only have options for up to four servings per order. 3 Legal Form of Business Gourmade will be run as a Limited Liability Company (LLC.) As an LLC, Gourmade will have the benefits of both a corporation and a partnership. The primary benefit of an LLC is limited liability, meaning that if Gourmade were to accumulate an insurmountable amount of debt the owners would not be held accountable to pay it off using their own capital. Primary voting rights on the board of directors, beginning as a LLC, will allow the owners to be the main decision makers even if they acquire investors. To formalize becoming an LLC, Gourmade has an operating agreement and will apply for an Employer Identification Number (EIN.) Lauren Sam and Camille Murdock will share equal ownership in Gourmade.
5 COMPANY DESCRIPTION Company Governance Lauren Sam Lauren Sam is the Chief Executive Officer for Gourmade. She graduated from Utah State University with a Bachelor of Science in Hotel and Restaurant Management. She worked for a catering company, Veronica s Cuisine, managing and running events. This has helped prepare her to manage the delivery and preparation of meals to people all over the Salt Lake Valley. Through her catering career, Lauren has heard about the booming home food delivery service industry and wanted to be apart of it. Having previous experience in the catering industry, she found that she had the adequate amount of knowledge in the food industry to start her own company. Camille Murdock Camille Murdock is the head chef for Gourmade. She graduated from Park City Culinary Institute and obtained a master s degree in Culinary Procedures. She worked as a professional chef for five years in France before returning home to America. After returning home, Camille found an interest in home food delivery services and recognized the potential this market has. When Lauren Sam offered her the opportunity to be head chef for a food delivery service in her hometown, she immediately accepted. 4
6 COMPANY DESCRIPTION Company Location Gourmade is located in the hub of Salt Lake City, Utah. The company executives have found an available location for their company at 3359 S. Main Street Salt Lake City, Utah It is strategically placed in the most densely populated valley of Utah, with Salt Lake City nearly reaching 200,000 residents and the Salt Lake Valley having a population of more than one million. This allows the company easy access to highly populated residential areas surrounding Salt Lake City. Because of its excellent location, Gourmade can deliver its food quickly and efficiently to their customers. The location of the building is on a road with heavy traffic, this will allow them to have publicity. Having a large facility will make it easier for the company to load their trucks which will help them to be more efficient in their delivering. 5
7 COMPANY DESCRIPTION Short and Long Term Goals Short Term 1 year 2 years Develop a social media presence, create a functioning website with at least 1,000 views per month, and sales revenue $500,000 Increase customer base by 25%, widen our menu by adding a diet option, expand to serve people in Summit and Davis counties, and sales revenue of $1,000,000 5 years 10 years Long Term Create and launch an app, finish paying off loan and debt, and 80% growth in sales Retain customers through a loyalty program and expand outside of Utah and to surrounding areas 6
8 OPERATIONS AND MANAGEMENT Business Facilities In Salt Lake City, Utah, the facility that Gourmade found is 1300 square feet and has been previously used as a commercial kitchen. The preparation space is large enough that employees can create the meal kits efficiently. The size paired with the preinstalled kitchen amenities will benefit the company because it cuts down on initial costs and allows them to focus on setting up other aspects of the company. The business will operate Monday through Friday, allowing Gourmade customers to prepare up to five meals per week for delivery. The company will be closed on the weekends to reduce operating costs. Operating from nine in the morning to five at night, the business will have time to create, package, and deliver their meals to Gourmade customers. 7
9 Once a customer has placed an order, Gourmade can have it assembled and delivered in 48 hours. They send all of the ingredients ready to use along with easy to follow recipes. In each box, Gourmade includes what a customer would need to make a high quality, nutritional meal without the hassle. Shopping locally not only supports the local community, but also ensures that all of their ingredients are fresh and highest quality. Gourmade allows their customers to choose food options that fit their dietary needs such as vegan and vegetarian options, along with any allergy restrictions. Unlike their competitors, there is an option to add dessert to regular meals. Having a dessert option is not offered by other fresh food delivery services and makes Gourmade unique. Because of Gourmade s flexible selection, there are meal options for families up to six people while also offering a meal option for singles and couples. Gourmade s customers will have the option to get between two and five meals per week. Gourmade decided to have a minimum of two meals to help cut down production cost. Because of Gourmade s high quality meals, the price is higher than other home delivery services. It costs $14.99 per serving of the meal and an additional $5.00 per serving to add dessert, making it cost $19.99 per serving for both the meal and the dessert. Meals are delivered each day around 5:30 pm, which allows the customer to have time to come home from work and prepare the meal. OPERATIONS AND MANAGEMENT Services 8
10 OPERATIONS AND MANAGEMENT Personnel In the marketing area for Gourmade there will be personnel to help the operations of the company. There will be one person handling the social media and marketing campaigns. The company operations will consist of seven drivers, five sorters, two dishwashers, and four cooks. These numbers are based on research from a local fresh food delivery service, Wasatch Fresh. The personnel will help facilitate the delivering, preparing, and cleaning of the prep facility. The number of positions will expand as Gourmade grows. The management department will consist of a head chef, an accountant, and one administrative director. The founders of Gourmade make up the management department and they will work full time to ensure their customers will get their best product. Sorters The sorters are responsible for the packaging of the ingredients and take the finished meal kits onto the delivery trucks. Drivers Being a delivery service, Gourmade relies a lot on the work of their drivers to ensure the customers get their orders. The drivers deliver the meal kits to their customers daily. Dishwashers After the food is prepared and packaged, dishwashers are responsible for cleaning all of the dishes and making sure the kitchen area is all clean and ready for the cooks. Cooks The cooks at Gourmade are responsible to prepare all of the ingredients needed to meet dietary needs and guarantee customer satisfaction. Management The management personnel include, the Accountant, in charge of the finances of Gourmade, the Administrative Director, in charge of management, and the Su Chef, in charge of creating the menu and running the kitchen. 9
11 OPERATIONS AND MANAGEMENT Target Market Gourmade chose their target market because they saw an opportunity to target working adults who are short on time and want to spend less time on grocery shopping and spend more time with family, careers, and hobbies. Information was gathered through surveying 500 people throughout the Salt Lake Valley, via an online questionnaire. After looking through the survey results, it was concluded that it would be best to direct their marketing to both couples and families located in the Salt Lake Valley. The main target will be working adults, twenty-five to forty-five years of age, with an annual household income of $80k to $150k. Couples & Families Upper Middle Class Located in Salt Lake $80k-$150k Household Income Years Old Working Adults 10
12 LOAN REQUEST Purpose Gourmade will need to acquire a loan to allow them to receive all the materials needed to run the business such as, transportation. The loan will be for $500,000 which will cover the initial costs of opening the business such as purchasing equipment and delivery vehicles, paying the rent, buying food and sending out advertisements and operation costs for the first six months. Loan Type The loan type will be a Small Business Administration (SBA) loan from Wells Fargo in Salt Lake City, Utah. The SBA loan program is a beneficial resource for small business owners that need capital to open up their business. An SBA loan will allow the company to startup with the addition of $250,000 contributed by the three founders of the company. The loan request is for $500,000 at a 6.25% interest rate. With monthly payments of $9,725, the loan will be paid off in five years. 11
13 12 LOAN REQUEST
14 13 LOAN REQUEST
15 14 LOAN REQUEST
16 WORKS CITED Amadeo, Kimberly. 2 Legal Ways Corporations Avoid Paying Taxes. The Balance, tiverate , Accessed 1 Feb Berry, Tim. What is an Acceptable Rate of Growth for a Small business during the first five years? Entrepreneur, 4 Dec. 2007, Blue Apron Holdings. Blue Apron, 10 Aug. 2017, earning-release.pdf. Business Lines of Credit. Wells Fargo Business Lines of Credit, Accessed 1 Feb Commercial Auto Insurance Cost. How Much, howmuch.net/costs/commercial-auto insurance, Accessed 1 Feb Fresh Handmade Meals Delivered Just For You. Wasatch Fresh, Accessed 1 Feb General Liability Insurance Cost Analysis. Insureon, costs/general-liability, Accessed 26 Jan How to Make a Budget for Repair and Maintenance for a Restaurant. Chron, html, Accessed 22 Dec Pace, Gina. The Cost of Starting Up a Restaurant. Inc.com, Inc., articles/201111/business-start-up-costs-restaurant.html. Restaurant Insurance Costs. Insureon, Accessed 1 Feb Accessed 1 Feb Swimnova.com. Counter Free Hit Unique Web, ty map-utah.html, Accessed 17 Jan Utah LLC Utah Limited Liability Company. Northwest Registered Agent, westregisteredagent.com/utah-llc.html, Accessed 28 Dec Veronica s Cuisine Inc. Veronica s Cuisine Inc., Accessed1 Feb
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