Pamela GutiérrezDaniela UribeEren Kongu

Rafael González

Modern

Warm

Fresh

Healthy

Service Experienc

e

Customization

Product

• What is a Simit?

• How do you prepare it?

SWOT Analysis

STRENGHTSNovelty ProductEasy to produce

Freshness. Prices

Culturally flexible.

WEAKNESSESNoveltyImage Culture

OPPORTUNITIESFirst mover advantage. Product transformation.

Expansion.

Franchising. Economic incentives.

THREATSSubstitute products.

Competition. Customer loyalty.

Target

Local

residents

Tourists

No gender discrimination

Only limited to infants

Medium and medium-high class, with medium and medium-high purchasing power

ADVERTISEMENT& PROMOTION

TASTING

SERVICE

Strategies

Marketing Expenses

Pop-up Banners Simit Tasting Flyers Total - €

500.00 €

1,000.00 €

1,500.00 €

2,000.00 €

2,500.00 €

3,000.00 €

3,500.00 €

Pop-up Banner

Simit Tasting Flyers Total

570.00 € 969.12 € 1,324.80 € 2,379.36 €

Marketing Activities Chart

Location

Distribution Plan

1-Ordering Area

2- Customization

3- Payment &Delivery

Legal Structure

Limite

d

Liabilit

y

Compan

y-

SL

Four

capitalistic

partners

Corporate Social Responsibility

Initial Investment

Equity Investment

Total start up capital expenditure

85,000 €

55,751 €

Projection Scenarios

Pessimistic 4%

Moderate 5%

Optimistic 6%

Food Consumption in Spain

100BN € were spent on food consumption in Spain, 2013.

32BN € were spent on “extradomestic” food consumption.

Average Ticket Price – 4.81 €

Simit Salty Simit

Sweet Simit

Coffee 1.5 cl

Beer 33cl

Soda 33cl

Water 33cl

2.00 € 4.00 € 3.00 € 1.20 € 1.50 € 2.00 € 1.00 €

Food Consumption by Month

Janu

ary

Febr

uary

Mar

chApr

ilMay

June Ju

ly

Augus

t

Sept

embe

r

Octob

er

Novem

ber

Decem

ber

Med

ium

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Traffic Calculation

100%

32%

9%

172k persons

55k persons

4.8k persons

Sales Projections – Moderate Scenario

2015 2016 2017 -

50,000

100,000

150,000

200,000

250,000

300,000

Units Sales

2015 Units Sold

2015 Sales

Revenue

2016 Units Sold

2016 Sales

Revenue

2017 Units Sold

2017 Sales

Revenue

92,706 200,445 € 106,256 241,230 € 111,569 265,956 €

Variable Costs – Simit Prodution

Ingredient 100 Units Price 45,935 Units Cost 52,649 Units Cost 55,281 Units CostFlour gr 7,142 12.50 € 3,280,701 5,741.23 € 3,760,221 6,711.99 € 3,948,232 7,259.02 €

Pekmez- Molasses ml 2,142 2.93 € 983,935 1,347.99 € 1,127,750 1,575.92 € 1,184,138 1,704.36 € Sunflower oil ml 28 0.01 € 12,862 4.12 € 14,742 4.81 € 15,479 5.20 €

Yeast gr 65 0.27 € 29,858 125.40 € 34,222 146.61 € 35,933 158.56 € Salt ml 7 0.44 € 3,215 200.97 € 3,685 234.95 € 3,870 254.10 €

16.15 € 7,419.70 € 8,674.28 € 9,381.23 €

2015 2016 2017

TOTAL

Cost per ingredient

Units sold Cost Units sold Cost Units sold Cost45,935 7,419.70 € 52,649 8,674.28 € 55,281 9,381.23 €

2015 2016 2017

Variable Costs – Simit Production

2015 2016 2017Units sold Cost Units sold Cost Units sold Cost

45,935 7,419.70 € 52,649 8,674.28 € 55,281 9,381.23 €

2015 2016 2017 -

10,000

20,000

30,000

40,000

50,000

60,000

Units Cost

Variable Costs – Customizations

Ingredient Weight Cost 15 gr 30 gr 100 grHam (Iberico) 7 kg 130.00 € 0.28 € 0.56 € 1.86 €

Chorizo (Iberico) 1 kg 12.40 € 0.19 € 0.37 € 1.24 € Salchichon (Iberico) 1 kg 10.70 € 0.16 € 0.32 € 1.07 €

Cheese (Burgos) 1kg 7.56 € 0.11 € 0.23 € 0.76 € Chocolate 550 gr 3.30 € 0.05 € 0.10 € 0.60 €

Units sold Cost Units sold Cost Units sold Cost30,902 19,696.49 € 35,419 23,026.91 € 37,190 24,178.25 €

* 3% cost increase in 2017* 2% cost increase in 2016

2015 2016 2017

Cost per Gram

Variable Costs - Customizations

2015 2016 2017 -

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Units Cost

Variable Costs - Additionals

Vegetables Beverages Napkins & Bags0

20000

40000

60000

80000

100000

120000

2015 Units 2015 Costs 2016 Units 2016 Costs 2017 Units 2017 Costs

Total Variable Costs

2015 2016 2017Simit 7,419.70 € 8,674.28 € 9,381.23 €

Customizations 19,696.49 € 23,026.91 € 24,178.25 € Vegetables 462.50 € 540.71 € 584.77 € Beverages 7,256.11 € 8,483.03 € 9,174.39 €

Bags and Napkins 1,148.38 € 1,278.63 € 1,451.98 € Total 35,983.19 € 42,003.55 € 44,770.63 €

2015 2016 201735,983.19 € 42,003.55 € 44,770.63 €

Total Variable Costs

2015 2016 2017 - €

5,000.00 €

10,000.00 €

15,000.00 €

20,000.00 €

25,000.00 €

30,000.00 €

35,000.00 €

40,000.00 €

45,000.00 €

50,000.00 €

Units

Fixed Costs

Income StatementSALES REVENUE 2015 2016 2017

200.445 € 241.230€ 265.956 €

COST OF PURCHASE 2015 2016 2017

35.983 € 42.004 € 44.771 €

Gross Margin 160.453 € 194.402 € 215.866 € Returns to Vendor 4.009 € 4.825 € 5.319 €

Operating ExpensesTotal Marketing Expenses 4.303 € 2.921 € 3.009 €

Total General and Adminstrative Expenses 172.963 € 150.051 € 155.783 €

TOTAL OPERATING EXPENSE 177.266 €

152.972 € 158.792 €

EBITDA - 16.813 € 41.430 € 57.074 €

INTEREST € - € - € -

DEPRECIATION 3.251 € 3.251 € 3.251 € EBT - 20.064 € 38.179 € 53.823 €

Tax (%25) € - 4.529 € 13.456 €

Net Income - 20.064 € 33.650 € 40.367 €

Cash Flow Start-Up 2015 2016 2017

Cash In

Cash Sales 176.793 € 200.945 € 208.510 €

Collections from Accounts Receivables 17.548 € 33.638 € 49.761 €

Equity Received 85.000 € 85.000 €

Total Cash In 85.000 € 279.340 € 234.583 € 258.271 €

Total Cash Available 85.000 € 308.589 € 274.879 € 332.342 €

Total Cash Out 55.751 € 239.044 € 205.308 € 216.556 €

Yearly (cash in - cash out) 29.249 € 40.296 € 29.275 € 41.715 €

Beginning Cash Balance - - 40.296 € 69.571 €

Ending Cash Balance 29.249 € 40.296 € 69.571 € 111.286 €

Balance SheetASSETS 2015 2016 2017

Cash in hands 40,296.02 € 69,570.79 € 111,285.58 €

Accounts Receivables 1,702.97 € 2,816.28 € 4,139.93 €

Inventory 1,016.81 € 2,513.27 € 3,242.64 €

Security Deposits 4,000.00 € 4,000.00 € 4,000.00 €

CURRENT ASSETS 47,015.80 € 78,900.34 € 122,668.15 €

Offi ce Equipment 22,221.00 € 22,221.00 € 22,221.00 €

Accumulated Depreciation 3,250.62 € 6,501.24 € 9,751.86 €

NET FIXED ASSETS 18,970.38 € 15,719.76 € 12,469.14 €

TOTAL ASSETS 65,986.18 € 94,620.10 € 135,137.29 €

LIABILITIES Accounts Payables 1,050.00 € 1,050.00 € 1,200.00 €

Non Comercial creditors

CURRENT LIABILITIES 1,050.00 € 1,050.00 € 1,200.00 €

Long Term Debt

TOTAL LIABILITIES 1,050.00 € 1,050.00 € 1,200.00 €

OWNER`S EQUITYEren Kongu 45,050.00 € 45,050.00 € 45,050.00 €

Rafa Gonzalez 14,450.00 € 14,450.00 € 14,450.00 €

Pamela Gutierrez 12,750.00 € 12,750.00 € 12,750.00 €

Daniela Uribe 12,750.00 € 12,750.00 € 12,750.00 €

Retained Earnings 20,063.82 €- 8,570.10 € 48,937.29 €

Profit and Loss

TOTAL EQUITY 64,936.18 € 93,570.10 € 133,937.29 € TOTAL LIABILITIES 65,986.18 € 94,620.10 € 135,137.29 €

Break-Even Point

BREAK-EVEN ANALYSIS 2015 2016 2017

GENERAL

Average Selling price per unit 2.16 € 2.27 € 2.38 €

Average cost of each unit 0.32 € 0.33 € 0.34 €

Gross profit margin 0,85 0,86 0,86

Fixed Costs 144,577 € 148,750 € 154,005 €

Euro sales to break even 169,692 € 173,939 € 179,505 €

Number of Units Sales to break even 78,484 76,617 75,304

Break-Even Point

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC0

50000

100000

150000

200000

250000

UNIT SALES (€)

Payback

39,670.26 €NPV

20.98%IRR

Conclusions

• The Simit Shop is economically viable.

• The Simit Shop has a great growth potential.

• The city of Madrid is open to our products and taste.

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