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TheFinanceResource.comFreeDonutShopBusinessPlan

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ExcecutiveSummary
CompanyandFinancingSummary
ProductsandServicesOverview
StrategicAnalysiswithcurrentresearch!
MarketingPlan
PersonnelPlan
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1.0ExecutiveSummary
Thepurposeofthisfreebusinessplanistoraise$100,000forthedevelopmentofadonutshopwhile
showcasingtheexpectedfinancialsandoperationsoverthenextthreeyears.DonutShop,Inc.(the
Company)isaNewYorkbasedcorporationthatwillprovidesalesofdonuts,pastries,andbeverages
tocustomersinitstargetedmarket.TheCompanywasfoundedin2009byJohnDoe.
1.1ProductsandServices
TheDonutShopwillofferanextensivevarietyofdonuts,danishes,andpastriestothegeneralpublic
throughitsretaillocation.Thebusinesswillalsohaveanextensivecollectionoffreshlybrewedcoffees
andteasavailable.OneoftheuniquefeaturesoftheDonutShopwillbethatallofitsdonutsand
pastrieswillbemadeonsiteandsoldfresh(ascomparedtofranchisedlocationsthatpurchase
wholesaledonutsandpastries).Thethirdsectionofthefreebusinessplanwillfurtherdescribethe
servicesofferedbytheDonutShop.
1.2TheFinancing
Mr.Doeisseekingtoraise$100,000fromasabankloan.Theinterestrateandloanagreementareto
befurtherdiscussedduringnegotiation.Thisfreebusinessplanassumesthatthebusinesswillreceive
a10yearloanwitha9%fixedinterestrate.
1.3MissionStatement
TheDonutShopsmissionistobecometherecognizedleaderinitstargetedmarketforqualitydonuts
andbeverages.
1.4MangementTeam
TheCompanywasfoundedbyJohnDoe.Mr.Doehasmorethan10yearsofexperienceintheretail
foodmanagementindustry.Throughhisexpertise,hewillbeabletobringtheoperationsofthe
businesstoprofitabilitywithinitsfirstyearofoperations.
1.5SalesForecasts
Mr.Doeexpectsastrongrateofgrowthatthestartofoperations.Belowaretheexpectedfinancials
overthenextthreeyears.

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1.6ExpansionPlan
TheFounderexpectsthatthebusinesswillaggressivelyexpandduringthefirstthreeyearsof
operation.Mr.Doeintendstoimplementmarketingcampaignsthatwilleffectivelytargetindividuals
withinthetargetmarket.
2.0CompanyandFinancingSummary
2.1RegisteredNameandCorporateStructure
DonutShop,Inc.TheCompanyisregisteredasacorporationintheStateofNewYork.
2.2RequiredFunds
Atthistime,theDonutShoprequires$100,000ofdebtfunds.Belowisabreakdownofhowthese
fundswillbeused:

2.3InvestorEquity
Mr.Doeisnotseekinganinvestmentfromathirdpartyatthistime.
2.4ManagementEquity
JohnDoeowns100%oftheDonutShop,Inc.
2.5ExitStrategy
Ifthebusinessisverysuccessful,Mr.Doemayseektosellthebusinesstoathirdpartyfora
significantearningsmultiple.Mostlikely,theCompanywillhireaqualifiedbusinessbrokertosellthe
businessonbehalfoftheDonutShop.Basedonhistoricalnumbers,thebusinesscouldfetchasales
premiumofupto4timesearnings.
3.0ProductsandServices
Belowisadescriptionofthedonuts,pastries,andbeveragesofferedbytheDonutShop.
3.1SalesofDonutsandPastries
Theprimaryrevenuestreamforthebusinesswillbethesaleofdonuts,pastries,danishes,andother
sweetbreadgoodstothegeneralpublic.Mr.Doeexpectsthatthebusinesswillcarryupto25different
typesofdonutsandpastriesonadailybasis,whichwillbepreparedonadailybasis.
3.2SalesofBeverages
TheCompanyssecondarystreamofrevenuewillcomefromthesaleoffreshlybrewedcoffeesand

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teasaswellasbottledwaterandbeverages.Mr.Doeanticipatesthat30%oftheCompanys
aggregatesaleswillcomefromthesaleofbeverages,whichcarryextremelyhighmargins.Inthis
sectionofthefreebusinessplan,youshouldfurtherdescribetheproductsandservicesthatyouintend
tooffertoyourcustomers.Ifyouneedtoaddmoreproductcategories,pleaseconsulttheinstructions
thatwereincludedintheBizPlanDB.comzipfile.
4.0StrategicandMarketAnalysis
4.1EconomicOutlook
Thissectionoftheanalysiswilldetailtheeconomicclimate,thedonutshopindustry,thecustomer
profile,andthecompetitionthatthebusinesswillfaceasitprogressesthroughitsbusinessoperations.
Currently,theeconomicmarketconditionintheUnitedStatesisinrecession.Thisslowdowninthe
economyhasalsogreatlyimpactedrealestatesales,whichhashaltedtohistoricallows.Many
economistsexpectthatthisrecessionwillcontinueuntilmid2009,atwhichpointtheeconomywill
beginaprolongedrecoveryperiod.However,donutshopsoperatewithgreateconomicstabilityas
peoplewillcontinuetopurchasedonuts/coffeeduetothelowpricingpointfortheseproducts.
4.2IndustryAnalysis
WithintheUnitedStates,therearemorethan7,000businessesthatoperateoneormoreretail
locationsthatspecializeinthesaleofdonutsandpastries.Eachyear,thesebusinessesaggregately
generatemorethan$3billionofrevenuesandprovidejobstomorethan70,000people.Aggregate
payrollsineachofthelastfiveyearshaveexceeded$750milliondollars.
4.3CustomerProfile
TheDonutShopsaverageclientwillbeamiddletouppermiddleclassmanorwomanlivinginthe
Companystargetmarket.Inthissectionoftheanalysis,youshoulddescribethetypeofcustomeryou
areseekingtoacquire.Thesetraitsincludeincomesize,typeofbusiness/occupationhowfaraway
fromyourbusinessistoyourcustomer,andwhatthecustomerislookingfor.Inthissection,youcan
alsoputdemographicinformationaboutyourtargetmarketincludingpopulationsize,income
demographics,levelofeducation,etc.
4.4CompetitiveAnalysis
Thisisoneofthesectionsofthefreebusinessplanthatyoumustwritecompletelyonyourown.The
keytowritingastrongcompetitiveanalysisisthatyoudoyourresearchonthelocalcompetition.Find
outwhoyourcompetitorsarebysearchingonlinedirectoriesandsearchinginyourlocalYellowPages.
Ifthereareanumberofcompetitorsinthesameindustry(meaningthatitisnotfeasibletodescribe
eachone)thenshowcasethenumberofbusinessesthatcompetewithyou,andwhyyourbusinesswill
providecustomerswithservice/productsthatareofbetterqualityorlessexpensivethanyour
competition.
5.0MarketingPlan
TheDonutShopintendstomaintainanextensivemarketingcampaignthatwillensuremaximum
visibilityforthebusinessinitstargetedmarket.Belowisanoverviewofthemarketingstrategiesand
objectivesoftheCompany.
5.1MarketingObjectives
ImplementalocalcampaignwiththeCompanystargetedmarketviatheuseofflyers,local
newspaperadvertisements,andwordofmouthadvertising.
Continuallydistributecouponsamonglocalpublicationsandcircularsthroughoutthetarget
market.
Acquireahighlyvisibleretaillocationfromwhichtoconductbusinessoperations.
5.2MarketingStrategies
Mr.DoeintendsonusinganumberofmarketingstrategiesthatwillallowtheDonutShoptoeasily
targetmenandwomenwithinthetargetmarket.Thesestrategiesincludetraditionalprint
advertisements,distributionofcoupons,andmaintainingahighlyvisibleretaillocation.Foremost,Mr.
Doeintendstofindahighlyvisibleretaillocationthatreceivessubstantialtrafficfrompassersbyand
vehicles.AppropriatesignagewillbeplacednearandaroundtheDonutShoptoensurethatpeople
withintheareabecomefamiliarwiththeCompanyslocationandtheproductsthatitsells.
5.3Pricing
Inthissection,describethepricingofyourservicesandproducts.Youshouldprovideasmuch
informationaspossibleaboutyourpricingaspossibleinthissection.However,ifyouhavehundredsof
items,condenseyourproductlistcategorically.Thissectionofthefreebusinessplanshouldnotspan
morethan1page.
6.0OrganizationalPlanandPersonnelSummary
6.1CorporateOrganization

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6.2OrganizationalBudget

6.3ManagementBiographies
Inthissectionofthebusinessplan,youshouldwriteatwotofourparagraphbiographyaboutyourwork
experience,youreducation,andyourskillset.Foreachownerorkeyemployee,youshouldprovidea
briefbiographyinthissection.
7.0FinancialPlan
7.1UnderlyingAssumptions
TheDonutShopwillhaveanannualrevenuegrowthrateof10%peryear.
TheOwnerwillacquire$100,000ofdebtfundstodevelopthebusiness.
Theloanwillhavea10yeartermwitha9%interestrate.
7.2SensitivityAnalysis
Intheeventofaneconomicdownturn,thebusinessmayhaveadeclineinitsrevenues.However,the
verylowpricingpointoftheCompanysdonutsandcoffeeproductswillensurethattheCompanycan
effectivelymaintainprofitabilityandapositivecashflowinanyeconomicenvironment.
7.3SourceofFunds

7.4GeneralAssumptions

7.5ProfitandLossStatements

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7.6CashFlowAnalysis

7.7BalanceSheet

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.
7.8GeneralAssumptions

7.9BusinessRatios

ExpandedProfitandLossStatements

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ExpandedCashFlowAnalysis

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