Food Distributor

views updated Jun 11 2018

Food Distributor

FICTIONAL BUSINESS PLAN

COMMERCIAL FOODS, INC.


3003 Avondale Ave.
Knoxville, TN 37920


October 31, 1992


This plan demonstrates how a partnership can have a positive impact on a new business. It demonstrates how two individuals can carve a niche in the specialty foods market by offering gourmet foods to upscale restaurants and fine hotels. This plan is fictional and has not been used to gain funding from a bank or other lending institution.



  • STATEMENT OF PURPOSE
  • DESCRIPTION OF THE BUSINESS
  • MANAGEMENT
  • PERSONNEL
  • LOCATION
  • PRODUCTS AND SERVICES
  • THE MARKET
  • COMPETITION
  • SUMMARY
  • INCOME STATEMENT
  • FINANCIAL STATEMENTS

STATEMENT OF PURPOSE

Commercial Foods, Inc. seeks a loan of $75,000 to establish a new business. This sum, together with $5,000 equity investment by the principals, will be used as follows:

Merchandise inventory$25,000
Office fixture/equipment12,000
Warehouse equipment14,000
One delivery truck10,000
Working capital39,000
Total$100,000

DESCRIPTION OF THE BUSINESS

Commercial Foods, Inc. will be a distributor of specialty food service products to hotels and upscale restaurants in the geographical area of a 50 mile radius of Knoxville. Richard Roberts will direct the sales effort and John Williams will manage the warehouse operation and the office. One delivery truck will be used initially with a second truck added in the third year.

We expect to begin operation of the business within 30 days after securing the requested financing.

MANAGEMENT

A. Richard Roberts is a native of Memphis, Tennessee. He is a graduate of Memphis State University with a Bachelor's degree from the School of Business. After graduation, he worked for a major manufacturer of specialty food service products as a detail sales person for five years, and, for the past three years, he has served as a product sales manager for this firm.

B. John Williams is a native of Nashville, Tennessee. He holds a B.S. Degree in Food Technology from the University of Tennessee. His career includes five years as a product development chemist in gourmet food products and five years as operations manager for a food service distributor.

Both men are healthy and energetic. Their backgrounds complement each other, which will ensure the success of Commercial Foods, Inc. They will set policies together and personnel decisions will be made jointly. Initial salaries for the owners will be $1,000 per month for the first few years. The spouses of both principals are successful in the business world and earn enough to support the families.

They have engaged the services of Foster Jones, CPA, and William Hale, Attorney, to assist them in an advisory capacity.



PERSONNEL

The firm will employ one delivery truck driver at a wage of $8.00 per hour. One office worker will be employed at $7.50 per hour. One part-time employee will be used in the office at $5.00 per hour. The driver will load and unload his own trucks. Mr. Williams will assist in the warehouse operation as needed to assist one stock person at $7.00 per hour. An additional delivery truck and driver will be added the third year.



LOCATION

The firm will lease a 20,000 square foot building at 3003 Avondale Ave., in Knoxville, which contains warehouse and office areas equipped with two-door truck docks. The annual rental is $9,000. The building was previously used as a food service warehouse and very little modification to the building will be required.

PRODUCTS AND SERVICES

The firm will offer specialty food service products such as soup bases, dessert mixes, sauce bases, pastry mixes, spices, and flavors, normally used by upscale restaurants and nice hotels. We are going after a niche in the market with high quality gourmet products. There is much less competition in this market than in standard run of the mill food service products. Through their work experiences, the principals have contacts with supply sources and with local chefs.


THE MARKET

We know from our market survey that there are over 200 hotels and upscale restaurants in the area we plan to serve. Customers will be attracted by a direct sales approach. We will offer samples of our products and product application data on use of our products in the finished prepared foods. We will cultivate the chefs in these establishments. The technical background of John Williams will be especially useful here.


COMPETITION

We find that we will be only distributor in the area offering a full line of gourmet food service products. Other foodservice distributors offer only a few such items in conjunction with their standard product line. Our survey shows that many of the chefs are ordering products from Atlanta and Memphis because of a lack of adequate local supply.


SUMMARY

Commercial Foods, Inc. will be established as a foodservice distributor of specialty food in Knoxville. The principals, with excellent experience in the industry, are seeking a $75,000 loan to establish the business. The principals are investing $25,000 as equity capital.

The business will be set up as an "S" Corporation with each principal owning 50% of the common stock in the corporation.

Attached is a three year pro forma income statement we believe to be conservative. Also attached are personal financial statements of the principals and a projected cash flow statement for the first year.

PRO FORMA INCOME STATEMENT

 1st Year2nd Year3rd Year
Gross Sales300,000400,000500,000
Less Allowances1,0001,0002,000
Net Sales299,000399,000498,000
Cost of Goods Sold179,400239,400298,800
Gross Margin119,600159,600199,200
Operating Expenses
Utilities1,2001,5001,700
Salaries76,00079,000102,000
Payroll Taxes/Benefits 9,1009,50013,200
Advertising3,0004,5005,000
Office Supplies1,5002,0002,500
Insurance1,2001,5001,800
Maintenance1,0001,5002,000
Outside Services3,0003,0003,000
Whse Supplies/Trucks6,0007,00010,000
Telephone9001,0001,200
Rent9,0009,5009,900
Depreciation2,5002,0003,000
Total Expenses114,400122,000155,300
Other Expenses
Bank Loan Payment15,00015,00015,000
Bank Loan Interest6,0005,0004,000
Total Expenses120,400142,000174,300
Net Profit (Loss)(800)17,60024,900

FINANCIAL STATEMENT I

AssetsLiabilities
Cash15,000  
1991 Olds11,000Unpaid Balance8,000
Residence140,000Mortgage105,000
Mutual Funds12,000Credit Cards500
Furniture5,000Note Payable4,000
Merck Stock10,000  
 182,200 117,500
Net Worth  64,700
 182,200 182,200

FINANCIAL STATEMENT II

AssetsLiabilities
Cash5,000  
1992 Buick Auto15,000Unpaid Balance12,000
Residence120,000Mortgage100,000
U.S. Treasury Bonds5,000Credit Cards500
Home Furniture4,000Note Payable2,500
AT&T Stock3,000  
 147,000 115,000
Net Worth  32,000
 147,000 147,000

Food Distributor

views updated Jun 11 2018

Food Distributor

FICTIONAL BUSINESS PLAN

COMMERCIAL FOODS, INC.


3003 Avondale Ave.
Knoxville, TN 37920

October 1992


This fictional plan demonstrates how a partnership can have a positive impact on a new business. It demonstrates how two individuals can carve a niche in the specialty foods market by offering gourmet foods to upscale restaurants and fine hotels. This plan is fictional and has not been used to gain funding from a bank or other lending institution.


  • statement of purpose
  • description of the business
  • management
  • personnel
  • location
  • products and services
  • the market
  • competition
  • summary
  • pro forma income statement
  • financial statements

STATEMENT OF PURPOSE

Commercial Food, Inc. seeks a loan of $75,000 to establish a new business. This sum together with $5,000 equity investment by the principals will be used as follows:

Merchandise inventory$25,000
Office fixture/equipment12,000
Warehouse equipment14,000
One delivery truck10,000
Working capital39,000
$100,000

DESCRIPTION OF THE BUSINESS

Commercial Foods, Inc. will be a distributor of specialty food service products to hotels and upscale restaurants in the geographical area in a 50-mile radius of Knoxville. Richard Roberts will direct the sales effort and John Williams will manage the warehouse operation and the office. One delivery truck will be used initially with a second truck added in the third year.

We expect to begin operation of the business within 30 days after securing the requested financing.

MANAGEMENT

A. Richard Roberts is a native of Memphis, Tennessee. He is a graduate of Memphis State University with a Bachelor's degree from the School of Business. After graduation, he worked for a major manufacturer of specialty food service products as a detail sales person for five years and for the past three years, he has served as a product sales manager for this firm.

B. John Williams is a native of Nashville, Tennessee. He holds a B.S. Degree in Food Technology from the University of Tennessee. His career includes five years as a product development chemist in gourmet food products and five years as operations manager for a food service distributor.

Both men are healthy and energetic. Their backgrounds complement each other which will ensure the success of Commercial Foods, Inc. They will set policies together and personnel decisions will be made jointly. Initial salaries for the owners will be $ 1,000 per month for the first few years. The spouses of both principals are successful in the business world and earn enough to support the families.

They have engaged the services of Foster Jones, CPA, and William Hale, Attorney to assist them in an advisory capacity.

PERSONNEL

The firm will employ one delivery truck driver at a wage of $8.00 per hour. One office worker will be employed at $7.50 per hour. One part-time employee will be used in the office at $5.00 per hour. The driver will load and unload his own trucks. Mr. Williams will assist in the warehouse operation as needed to assist one stock person at $7.00 per hour. An additional delivery truck and driver will be added the third year.

LOCATION

The firm will lease a 20,000 square foot building at 3003 Avondale Ave., in Knoxville, which contains warehouse and office areas equipped with two-door truck docks. The annual rental is $9,000. The building was previously used as a food service warehouse and very little modification to the building will be required.

PRODUCTS AND SERVICES

The firm will offer specialty food service products such as soup bases, dessert mixes, sauce bases, pastry mixes, spices, and flavors, normally used by upscale restaurants and nice hotels. We are going after a niche in the market with high quality gourmet products. There is much less competition in this market than in standard run of the mill food service products. Through their work experiences, the principals have contacts with supply sources and with local chefs.

THE MARKET

We know from our market survey that there are over 200 hotels and upscale restaurants in the area we plan to serve. Customers will be attracted by a direct sales approach. We will offer samples of our products and product application data on use of our products in the finished prepared foods. We will cultivate the chefs in these establishments. The technical background of John Williams will be especially useful here.

COMPETITION

We find that we will be only distributor in the area offering a full line of gourmet food service products. Other foodservice distributors offer only a few such items in conjunction with their standard product line. Our survey shows that many of the chefs are ordering products from Atlanta and Memphis because of lack of adequate local supply.

SUMMARY

Commercial Foods, Inc. will be established as a foodservice distributor of specialty food in Knoxville. The principals, with excellent experience in the industry are seeking a $75,000 loan to establish the business. The principals are investing $25,000 as equity capital.

The business will be set up as an "S" Corporation with each principal owning 50% of the common stock in the corporation.

Attached is a three year pro forma income statement we believe to be conservative. Also attached are personal financial statements of the principals and a projected cash flow statement for the first year.

PRO FORMA INCOME STATEMENT

lst Year2nd Year3rd Year
Gross Sales300,000400,000500,000
Less Allowances1,0001,0002,000
Net Sales299,000399,000498,000
Cost of Goods Sold179,400239,400298,800
Gross Margin119,600159,600199,200
Operating Expenses
Utilities1,2001,5001,700
Salaries76,00079,000102,000
Payroll Taxes/Benefits9,1009,50013,200
Advertising3,0004,5005,000
Office Supplies1,5002,0002,500
Insurance1,2001,5001,800
Maintenance1,0001,5002,000
Outside Services3,0003,0003,000
Whse Supplies/Trucks6,0007,00010,000
Telephone9001,0001,200
Rent9,0009,5009,900
Depreciation2,5002,0003,000
Total Expenses114,400122,000155,300
Other Expenses
Bank Loan Payment15,00015,000
Bank Loan Interest6,0005,0004,000
Total Expenses120,400142,000174,300
Net Profit (Loss)(800)17,60024,900

FINANCIAL STATEMENT I

AssetsLiabilities
Cash15,000
1991 Olds11,000Unpaid Balance8,000
Residence140,000Mortgage105,000
Mutual Funds12,000Credit Cards500
Furniture5,000Note Payable4,000
Merck Stock10,000
182,200117,500
Net Worth64,700
182,200182,200

FINANCIAL STATEMENT II

AssetsLiabilities
Cash5,000
1992 Buick Auto15,000Unpaid Balance12,000
Residence120,000Mortgage100,000
U.S. Treasury Bonds5,000Credit Cards500
Home Furniture4,000Note Payable2,500
AT&T Stock3,000
147,000115,000
Net Worth32,000
147,000147,000

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