Transcript Slide 1
Eva Tan Age: 20 1 Mission Statement Mission Statement Eva’s Edibles, a personal chef service, will provide busy professionals with healthy and delicious dinners that are based on their preferences and prepared in their own kitchens. Opportunity Columbus has a growing population of professionals who have busy lifestyles, but want healthy—yet affordable— dinner options. 2 Business Profile Type of Business Eva’s Edibles is a service business cooking meals for customers in the customers’ own kitchens. Legal Structure Eva’s Edibles is a Limited Liability Company (LLC). I chose this status to protect my personal assets and give the company some added tax benefits. 3 Qualifications I’m qualified to run this business because: I am a Certified Personal Chef, a certification offered by the U.S. Personal Chef Association (USPCA). I ran an event-planning business for four years. I have an associate’s degree in Business Management and was Assistant to the Director of Campus Dining Services at Ohio State University. 4 Market Analysis Industry Name Personal Chef Industry/Special Food Services Industry Size $32,000,000 (personalchef.com) Total Population Columbus, Ohio, households with two or more people Total Population 301,800 Target Market Target Market Above households with household income of $50,000 or more 110,760 Potential Market 27,690 Potential Market Above households that go out to dinner or order in at least four days per week 5 Target Market Segment Demographics Professional couples and families, with household incomes of over $50,000 Geographics Psychographics Greater Columbus, Ohio, area Desires healthy food, often dual-income households living hectic lives, hard working, would like to spend more time at home without increasing time in the kitchen cooking and cleaning up Buying Patterns Eats out often (4 times a week) but would like to reduce the cost of eating out 6 Competitive Advantage Factors Eva’s Edibles At-Home Chef Price $325/5 dinners $400/5 dinners $500/5 dinners Custom meals, healthy Meals from chef’s plan, not focused on health Meals from chef’s plan, healthy Columbus Columbus Columbus New to market Known, but not good reputation Well established, good reputation Certified Personal Chef, event planning Focuses on “kid friendly” meals Certified Personal Chef, knows customers Quality of Product/Service Location Reputation/Brands Unique Factors/ Knowledge Chef d’Jour 7 Marketing Mix Appeals to busy professional who value free time and healthy, home-cooked meals People Customers in the greater Columbus, OH area Product I will purchase groceries, cook 5 dinners in the customer’s kitchen, store the meals in their freezer, and clean up Place Website, USPCA referrals, in-store promotions, providing samples at local events, customer retention program Price Promotion $325 for 5 full, healthy dinners is competitive, but affordable when compared to eating out or ordering in 8 Promotional Mix Promotional Expense Advertising Brochure, cards, postage, Website development Monthly Amount $146 $5 Publicity Press releases, postage Personal Selling Contacting past customers of eventplanning, OSU contacts, follow up mailback cards from brochure — Sales Promotion Purchasers of three 5-dinner meal plans receive free snacks and desserts — Customers referring other customers receive 10% for 3 meal plans — Other Total Monthly Promotional Expense $151 9 Cost of Materials/Labor Materials Material Description Cost/Total Quantity Groceries Varies per customer, for 5 dinners Total Material Cost per Unit Cost per Unit $100 $100 Labor Labor Cost per Hour Time (in Hours) to Make One Unit $25 6 Total Labor Cost per Unit COSS (per Unit) Labor Cost per Unit $150 $150 $250 10 Economics of One Unit Description of One Unit of Sale: 5-Dinner Plan (1 Day of Cooking) Selling Price (per Unit) COSS (per Unit) Other Variable Expenses (per Unit) $325 250 4 Total Variable Expenses (per Unit) 254 Contribution Margin (per Unit) $71 11 Average Monthly Fixed Expenses Fixed Expense Average Monthly Expense* $117 Insurance — Salaries of Employees Advertising 146 Interest — Depreciation 17 Utilities (Gas, Electric, Telephone) 100 — Rent Other Fixed Expenses (Auto- and Cooking-Related) Total Average Monthly Fixed Expenses 107 $487 * Numbers are rounded to the nearest dollar throughout. 12 Time-Management Plan Schedule for a Typical Week Total Hours in a Week = 168 42 Free Time 70 Work 56 Sleep 0 20 40 60 80 Hours 13 Monthly Sales Projections First Year Units Sold Total Units Sold 252 25 20 15 10 5 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 14 Monthly Break-Even Units 571 71 = 8.04 In an average month, the company will begin 8 to make a profit after selling units. 15 Projected Yearly Income Statement First Year Selling Price per Unit $325 Number of Units Sold 252 $81,900 Total Sales Variable Expenses 64,000 17,892 Contribution Margin Fixed Operating Expenses 5,844 12,048 Pre-Tax Profit Taxes @ 15% Net Profit $1,807 $10,241 16 Start-Up Investment Start-Up Expenditures Item Where Will I Buy This? Cost Knife Kit (7-Knife Set) On-Line $550 Cooking Equipment (10-Piece Set) On-Line 475 Miscellaneous Cooking Equipment On-Line 313 Grocery Store 100 On-Line 550 Spices, Oils, etc. Wheeled Cart Total Start-Up Expenditures $1,988 Cash Reserves Emergency Fund Reserve for Fixed Expenses Total Start-Up Investment $1,000 2,012 $5,000 17 ROS & ROI ROS: Return on Sales $10,241 For My Business: $10,241 X 100 =13% ROS X 100 =13% ROS $81,900 $81,900 Dollar Equivalent = $0.13 Dollar Equivalent = $2.05 ROI: Return on Investment For My Business: $10,241 X 100 =205% ROI $5,000 18 Financing Strategy $5,000 Total Start-Up Investment Source Amount Personal Savings $5,000 Relatives/Friends — — — Investor — — — Partner(s) — — — $5,000 — $5,000 Totals Debt Equity Gift $5,000 — — 19 Business Responsibility & Philanthropy Business Responsibility Use natural, organic, locally grown ingredients Use “green” practices Choose vendors who are environmentally and socially responsible Philanthropy Provide internships for culinary students in the community Speak to elementary students about healthy eating Contribute 1% of yearly net profit to local food bank after three years of operation 20 Business & Personal Goals Long-Term Short-Term Business Build a strong customer base to ensure returning customers Strengthen relationship with local grocers and farmers to reduce costs and offer better produce Lease or buy a commercial kitchen to serve more clients by delivering meals to customers Establish a relationship with the local community college in order to find graduating culinary students as possible employees Personal Take a USPC course on growing a personal chef business Use the services of the USPC more, including local meetings to meet colleagues I have no plans to leave the business in the foreseeable future Investigate the possibility that in the future the business could be franchised in other cities 21 Let us be your personal chef! Thank you for your consideration. 22