PART 1 The Contemporary Business Environment

EXECUTIVE SUMMARY

Fresin Fries is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. Fresin Fries will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. Fresin Fries is the answer to an increasing demand for snack-type fast food, to be consumed while window shopping and walking around inside a shopping mall.In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Singapore, a city state, is now becoming the model metropolis for Asia's new economic boom. With more than 11 million visitors yearly, mainly from neighboring countries (Malaysia, Indonesia, Thailand and the Philippines), Singapore's retail sector is the strongest in the region.Our main priority is to establish one outlet in a crowded mall, preferably in one of prominent shopping malls in Singapore. Later, our effort will be a further development of more retail outlets in the surrounding area.This plan is prepared to obtain a location for the initial launch of this concept. Additional financing will need to be secured for the two subsequent outlets, anticipated in month 13 and early in year three. The financing, in addition to the capital contributions from shareholders, will allow Fresin Fries to successfully open and expand through year two. The initial capital investment will allow Fresin Fries to provide its customers with a value-driven, entertaining experience through the creativity of its founders.Fresin Fries will entice youngsters to bring their friends and family with our innovative environment, fresh-cut Belgian fries, and selection of unique signature dipping sauces.

OBJECTIVES

To establish a presence as a successful local fast food outlets and gain a market share in Singapore's fast food industry.

To make Fresin Fries a destination spot for mall-goers. To expand into a number of outlets by year three, and sell the franchise to neighboring

metropolitan cities, such as Jakarta, Kuala Lumpur, Bangkok and Manila.

MISSION

Our main goal is to be one of the most successful fast food outlets in Singapore, starting with one retail outlet located inside a major shopping mall as a "market tester."Fresin Fries will strive to be a premier local fast food brand in the local marketplace. We want our customers to have the total experience when visiting our outlet(s) and website as they will learn about this fascinating new "pop culture." We will sell merchandise from pre-packaged sauces and t-shirts, to potato cutters, all with our official brand attached to them.Our main focus will be serving high-quality food at a great value.

KEY TO SUCCESS

To succeed in this business we must:

PART 1 The Contemporary Business Environment

Create a unique, innovative, entertaining menu that will differentiate us from the rest of the competition.

Control costs at all times, in all areas and implement a conservative approach to growth policy. Although, we provide more than enough fund to open more than one outlet, we want to be on the safe side of the business.

Sell the products that are of the highest quality, as well as keeping the customers happy with all of our product categories from food to store merchandising.

Provide 100% satisfaction to our customers and maintaining the level of excellent services among other competitors.

Encourage the two most important values in fast food business: brand and image, as these two ingredients are a couple of main drivers in marketing communications.

Get access to high-traffic shopping malls near the target market. Promote good values of company culture and business philosophy.

PART 1 The Contemporary Business Environment

BUSINESS NAME

PRESTON FRIES

DESCRIPTION OF BUSINESS Fresin Fries sells gourmet fries in a cone with a  choice of sauce. We use the concept of Belgian Fries, where the fries are all made from fresh potatoes and fried twice. Our outlet also provides excellent and friendly customer service to support the ambience of fun, energetic and youthful lifestyle. 

FORM OF BUSINESS OWNERSHIP

Fresin Fries is a privately held company. It will be registered as a Limited company, with ownership 25% - Guy Fry, 25% - Sam Sauce, 25% - Carl Cone, 25% - Harry Hip.

IDEAL CUSTOMER We will imitate successful establishments, such as Jamba Juice and Starbucks, which represent the majority of our core target market, between 18 to 35 years of age. Our store will feature display cooking of our featured Belgian Fries from cutting to frying. Our customers will also be able to read our in-house brochures in regards to all knowledge about Belgian Fries and our featured sauces.

OUR ADVANTAGES

Quality foodEach store will offer nothing but freshly fried Belgian fries, sandwiches and variety of unique blend sauces, all served with old-fashioned home-style care.

Open everyday Our store is open everyday from 10 am to 12 am.

Variety, variety, varietyA different selection of sauces will be featured every three months and we will also change our Italian soda flavors to accompany our fries.

ETHICAL ISSUES

Doing the Right ThingWe have the responsibility to do the right thing for cutomer and one another.

Trusting and TeamworkWe succed together, taking collective respnsibility for our customers’ satisfication.

Inclusive MeritocracyWe care about one another, values one onther’s differences, focus on results and strive to help all associates reach their full potential.

PART 1 The Contemporary Business Environment

SOCIAL RESPONSIBILITY

When compelling information is presented to the public about a social issue, the marketplace reacts. A case in point is the social issue of obesity in the United States. Obesity became a visible social issue when medical research, national health organizations and medical professionals tied obesity to many health conditions such as type 2 diabetes and heart disease and found obesity to be the second leading cause of unnecessary deaths.

GLOBAL ISSUES

The food economy is increasingly shaped by such new issues as sustainability, safety and quality standards, consumer health, and industry concentration. Cultural and ethical arguments gain momentum when aligned with issues such as economic welfare and stakeholder interests. The food economy grows ever more global and encompasses more elusive elements like trust, integrity, transparency, corporate social responsibility and creating emotional bonds with customers. The foodeconomy is inextricably interrelated with globalisation, changes in consumer demand for food and energy, the ICT revolution, sustainability issues, and shifts in the relationship between private companies and public regulators.

The Food Economy explores a variety of trends and topics from the broad perspective that their evolution is interdependent with all kinds of counter currents and opposite notions: scarcity goes together with abundance, public and private initiatives co-evolve, slow food is connected with fast food, global brands and local products exist simultaneously. The FoodEconomy devotes chapters to existing and emerging issues and challenges of the expanding food economy. The Food Economy is relevant to academics, students, policymakers and consumers who are interested in recent developments in the food system and their implications for the food policy and research agendas in the years to come.

PART 2 The Business of Managing

MISSION STATEMENT Our main goal is to be one of the most successful fast food outlets in Singapore, starting with one retail outlet located inside a major shopping mall as a "market tester."

Fresin Fries will strive to be a premier local fast food brand in the local marketplace. We want our customers to have the total experience when visiting our outlet(s) and website as they will learn about this fascinating new "pop culture." We will sell merchandise from pre-packaged sauces and t-shirts, to potato cutters, all with our official brand attached to them.Our main focus will be serving high-quality food at a great value.

BUSINESS GOALS Dramatically increase the size of our business

Reach a new level of production

Open branches in different cities

To build bottom line profit by 20% every year for the next four years.

SWOT ANALYSIS

Strengths Excellent quality and taste, Workers is commited and confident.

Weaknesses Customer lists not tested.

Opportunities Could develop new products. Profit margins will be good, could extend to overseas, can surprise competitors.

Threats Price wars with competitors.

MANAGEMENT We will have three levels of management, top, middle and front-line managers. And the areas of management will be Human resource manager, marketing manager, informational manager, financial manager, specialozed manager and sales manager.

ORGANIZATION CHART Show how the “team” fits together by creating a simple organizational chart for your business. Make sure that you organizational chart indicates who will work for each manager as well as each person’s job title.Hint: Most businesses start off quite small. However, as you create your organizational chart, consider what your business will look like in the future. What different tasks are involved in the business? Who will each person report to in the organizational structure? Refer to the discussion of organizational structure in Chapter 6 for information to get you started.

     

PART 2 The Business of Managing

FLOOR PLAN Create a floor plan of the business. What does it look like when you walk through the door?Hint: When sketching your floor plan, consider where equipment, supplies, and furniture will be located. Ask your instructor how they would like you to submit the floor plan for your business.

     

RAW MATERIALS AND SUPPLIES Explain what types of raw materials and supplies will you need to run your business. How will you produce your good or service? What equipment do you need? What hours will you operate?Hint: Refer to the discussion of operations in Chapter 7 for information to get you started.

     

QUALITY ASSURANCE What steps will you take to ensure that the quality of the product or service stays at a high level? Who will be responsible for maintaining the quality of the product or service (or both)?Hint: Refer to the discussion of quality improvement and Total Quality Management in Chapter 7 for information to get you started.

     

PART 3 People in Organizations

CORPORATE CULTURE What do you see as the “corporate culture” of your business? What types of employee behaviors, such as organizational citizenship, will you expect?Hint: Will your business demand a casual environment or a more professional environment? Refer to the discussion on employee behavior in Chapter 8 for information on organizational citizenship and other employee behaviors.

     

LEADERSHIP PHILOSOPHY What is your philosophy on leadership? How will you manage your employees day-to-day?Hint: Refer to the discussion on leadership in Chapter 9 to help you formulate your thoughts.

     

JOB DESCRIPTIONS Looking back at your organizational chart in Part 2, briefly create a job description for each team member.Hint: As you learned in Chapter 10, a job description lists the duties and responsibilities of a job; its working conditions; and the tools, materials, equipment and information used to perform it. Imagine your business on a typical day. Who is working and what are each person’s responsibilities? (Note that if your business is very large, you should ask your instructor how many positions he or she would like you to create job descriptions for.)

     

JOB SPECIFICATIONS Next, create a job specification for each job, listing the skills and other credentials and qualifications needed to perform the job effectively.Hint: As you write your job specifications, consider what you would write if you were making an ad for the position. What would the new employee need to bring to the job in order to qualify for the position?

Insert Job Title #1:      Insert Needed Skills/Credentials/Qualification for Job:      

Insert Job Title #2:      Insert Needed Skills/Credentials/Qualification for Job:      

Insert Job Title #3:      Insert Needed Skills/Credentials/Qualification for Job:      

TRAINING EMPLOYEES What sort of training, if any, will your employees need once they are hired? How will you provide this training?Hint: Refer to the discussion of training in Chapter 10. Will you offer your employees on-the-job training? Off-the-job training? Vestibule training?

     

PART 3 People in Organizations

COMPENSATION A major factor in retaining skill workers is a company’s compensation system—the total package of rewards that it offers employees in return for their labor. Part of this compensation system includes wages/salaries. What wages or salaries will you offer for each job? Why did you decide on that pay rate?Hint: Refer to Chapter 10 for more information on forms of compensation. You may also want to check out sites like www.salary.com, which includes a salary wizard you can use to determine how much people with different job titles are making in your area and across the United States.

     

INCENTIVES As you learned in Chapter 10, incentive programs are special programs designed to motivate high performance. What incentives will you use to motivate your workforce?Hint: Be creative and look beyond a simple answer such as giving pay increases. Ask yourself, who are my employees and what is important to them? Refer to Chapter 10 for more information on the types of incentives you may want to consider.

     

PART 4 Principles of Marketing

TARGET MARKET Describe your target market in terms of age, education level, income, and other demographic variables.Hint: Refer to Chapter 11 for more information on the aspects of target marketing and market segmentation that you may want to consider. Be as detailed as possible about who you think your customers will be.

     

PRODUCT FEATURES AND BENEFITS Describe the features and benefits of your product or service.Hint: As you learned in Chapter 11, a product is a bundle of attributes—features and benefits. What features does your product have—what does it look like and what does it do? How will your product benefit the buyer?

     

PRODUCT DIFFERENTIATION How will you make your product stand out in the crowd?Hint: There are many ways to stand out in the crowd, such as a unique product, outstanding service, or a great location. What makes your “great idea” special? Does it fill an unmet need in the marketplace? How will you differentiate your product to make sure that it succeeds?

     

PRICING What pricing strategy will you choose for your product, and what are the reasons for this strategy?Hint: Refer to Chapter 12 for more information on pricing strategies and tactics. Since your business is new, so is the product. Therefore, you probably want to choose between price skimming and penetration pricing. Which will you choose, and why?

     

PLACE (DISTRIBUTION) ISSUES Where will customers find your product or service? (That is, what issues of the distribution mix should you consider?)Hint: If your business will sell its product directly to consumers, what types of retail stores will sell your product? If your product will be sold to another business, which channel of distribution will you use? Refer to Chapter 12 for more information on aspects of distribution you may want to consider.

     

PART 4 Principles of Marketing

ADVERTISING How will you advertise to your target market? Why have you chosen these forms of advertisement?Hint: Marketers use several different advertising media—specific communication devices for carrying a seller’s message to potential customers—each having its advantages and drawbacks. Refer to Chapter 12 for a discussion of the types of advertising media you may wish to consider here.

     

PROMOTIONS What other methods of promotion will you use, and why?Hint: There’s more to promotion than simple advertising. Other methods include personal selling, sales promotions, and publicity and public relations. Refer to the discussion of promotion in Chapter 12 for ideas on how to promote your product that go beyond just advertising.

     

PART 5 Managing Information

IT RESOURCES What kind of IT resources will your business require?Hint: Think about the employees in their business and what they will need in order to do their jobs. What computer hardware and software will they need? Will your business need a network and an Internet connection? What type of network? Refer to Chapter 13 for a discussion on IT resources that you may want to consider.

     

CUSTOMER SERVICES How will you use information technology to keep track of your customers and potential customers?

Hint: Many businesses—even small businesses—use databases to keep track of their customers. Will your business require a database? What about other information systems? Refer to Chapter 13 for more information on these topics.

     

COST OF DOING BUSINESS What are the costs of doing business? Equipment, supplies, salaries, rent, utilities, and insurance are just some of these expenses. Estimate what it will cost to do business for one year.

Hint: Insert the costs associated with doing business in the following table. The list below provides some hints as to where you can get this information. Note that these are just estimates—just try your best to include accurate costs for the expenses you think will be a part of doing business.

Hints for each expense in the table below:

Rent: Refer to the floor plan. How many square feet is your place of business? What is the “going rate” per square foot for office space in your community? A real estate agent or a local SBA representative (www.sba.gov) can also be helpful in answering this question.

Salaries: Refer to the organizational chart. How much will each employee earn? How many hours will each employee be needed on a weekly basis? Once you’ve determined the weekly cost, then expand it to a monthly and a yearly cost.

Supplies: Refer to the floor plan. How much will all of the computers, equipment, and furniture cost? What kinds of general office supplies will you need? Most prices for this information can be found on an office supply website such as www.staples.com.

Advertising and Other Promotions: Refer to your marketing section. You have described how you wish to reach your customer—now you need to decide how much it will cost. If you are using television, contact the sales department at a local station. If you are using newspaper, contact their advertising department. Salespeople are usually happy to answer your questions.

PART 5 Managing Information

Utilities: These amounts will vary, depending on your business and what utilities you will pay. If your business looks like an office, then this cost may be similar to what a homeowner pays. However, if your business involves making a product, then the costs will be significant. An SBA representative can be a good resource.

Insurance: This value will be affected by the nature of the business. More equipment will usually mean higher insurance costs. Again, contact an SBA representative for feedback.

ExpensesExpected

Monthly CostExpected Yearly Cost

Rent            

Salaries and Wages            

Supplies: Technological, Equipment, and Furniture (computers, software, copy machine, desks, chairs, etc.), other

           

Advertising and Other Promotions

           

Utilities: Heat, Electricity, etc.

           

Telephone and Internet

           

Insurance            

Other (specify)            

Other (specify)            

PART 5 Managing Information

EXPECTED REVENUE How much will you charge for your product? How many products do you believe that you can sell in one year (or how many customers do you think your business can attract)? Multiply the price that you will charge by the number of products that you hope to sell or the amount you hope each customer will spend. This will give you an estimate of your revenues for one year.Hint: You will use the amounts you calculate in the costs and revenues questions in this part of the plan in the accounting statements in the next part, so be as realistic as you can.

     

INCOME STATEMENT AND BALANCE SHEET Create a balance sheet and an income statement (profit-and-loss statement) for your business.You will have to report. This option is to use the Microsoft Word versions that are found within this Business Plan Student template.

12-Month Income Statement (Profit & Loss Statement)

JuneJuly

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

March

April

May

YEARLY

Revenue (Sales)                          

Category 1                          

Category 2                          

Total Revenue (Sales)

                           

Cost of Goods Sold                          

Category 1                          

Category 2                          Total Cost of Goods Sold

                           

Gross Profit

                           

Expenses                          

Rent Expense                          

Salary/Wage Expenses                          

Supplies Expense                          

Advertising Expense                          

Utilities Expense                          Telephone/Internet Expense                          

Insurance Expense                          Interest from Loans (if applicable)                          Other Expenses (specify)                          

Total Expenses

                           

Net Profit

Balance Sheet

Assets

Current Assets

Cash in Bank      

Cash Value of Inventory      

Prepaid Expenses (insurance)      

Total Current Assets      

Fixed Assets

Machinery & Equipment      

Furniture & Fixtures      

Real Estate / Buildings      

Total Fixed Assets      

Total Assets      

Liabilities & Net Worth

Current Liabilities

Accounts Payable      

Taxes Payable      

Notes Payable (due within 12 months)      

Total Current Liabilities      

Long-Term Liabilities

Bank Loans Payable (greater than 12 months)      

Less: Short-Term Portion      

Total Long-Term Liabilities      

Total Liabilities      

Owners' Equity (Net Worth)      

Total Liabilities & Net Worth      

Executive Summary

STARTUP COSTS How much money will you need to get your business started?Hint: Refer back to Part 5 of the plan, where you analyzed the costs involved in running your business. Approximately how much will you need to get your business started?

     

FINANCING How will you finance your business? For example, will you seek out a bank loan? Borrow from friends? Sell stocks or bonds initially or as your business grows?Hint: Refer to Chapter 16 for information on securities such as stocks and bonds. Refer also to Appendix I: Financial Risk and Risk Management and Chapter 3 for more information on sources of short-term and long-term funds.

     

EXECUTIVE SUMMARY Now, create an executive summary for your business plan. The executive summary should be brief—no more than two pages long—and should cover the following points:

The name of your business Where your business will be located The mission of your business The product or service you are selling Who your ideal customers are How your product or business will stand out in the crowd Who the owners of the business are and what experience they have An overview of the future prospects for your business and industry

Hint: At this point, you’ve already answered all of these questions, so what you need to do here is put the ideas together into a “snapshot” format. The executive summary is really a sales pitch—it’s the investor’s first impression of your idea. Therefore, as with all parts of the plan, write in a clear and professional way.

Once you have written the executive summary, copy and paste it so that it falls at the beginning of your business plan, as the very first element.