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1 2 Mission Statement SMSA’s FMN ensures that each customer receives professional, devoted, and amicable service. We pledge to provide at an affordable price – well prepared meals using quality ingredients. To ensure that all customers/families receive their home cooked meals on time. Finally, to thank each customer for the opportunity to serve them and their families Opportunity Our service will prepare meals for busy families who lack the time to cook when they arrive home from work and desire a healthy meal Market Analysis Industry Name Catering Services Industry Size $7 Billion Total Population Hartford, CT All Hartford Public Schools Total Population 21,000 Target Market Target Market Potential Market Adults/families Males and Females Ages of 18 + Average household income of $33,000 or greater in SMSA. 68% of the target market said they would order dishes from SMSA’s FMN 650 Potential Market 442 8 Factors Dominos Cook Yourself SMSA’s FMN Price Affordable None Affordable Quality of Product/Service Good Good Excellent Location Nationwide Your own home SMSA, Hartford Reputation/Brands Excellent None Excellent Unique Factors/ Knowledge Pizza making skills Time consuming & Not enough skill Variety of foods SMSA Hartford, CT Males & Females Families Ages: 18+ People Product Devoted, amicable, and professional catering Place •Business cards •Online websites •Word of mouth Price Affordable and includes some discounts to make it even more affordable Promotion Promotional Expense Advertising Publicity Personal Selling Sales Promotion Internet and Business cards Facebook, Twitter, SMSA’s official website, and word of mouth Our website with personal emails (Within SMSA’s website) Coupons – Purchase from us 4 times in a row without missing a week and get 25% off your next purchase. Total Monthly Promotional Expense Monthly Amount $20.00 $0.00 $0.00 $69.98 $89.98 For just one chicken dinner, which includes side dishes like rice with salad and fruits will be just $6.00. Materials Material Description Cost/Total Quantity Hefty Styrofoam plates Chicken Salad & Fruit Rice Cost per Unit $12.27 (350 plates) $0.03 $1.89 (1lb) $0.95 $1.69 $0.56 $13.69 (20lb) $0.46 Total Material Cost per Unit $2.00 Labor Labor Cost per Hour Time (in Hours) to Make One Unit $8.25 Time (6 mins) Total Labor Cost per Unit COGS (per Unit) Labor Cost per Unit $0.83 $0.83 $2.83 For just one chicken dinner, which includes side dishes like rice with salad and fruits will be just $6.00. Selling Price (per Unit) $7.00 COGS (per Unit) $2.83 Other Variable Expenses (per Unit) $0.00 Total Variable Expenses (per Unit) $2.83 Contribution Margin (per Unit) $4.17 Fixed Expense Insurance ($1/2 M liability) Salary Average Monthly Expense $75.00 $1,000.00 Advertising $89.98 Depreciation (computer, cell phone,) $50.00 Rent/Utilities (Gas, Electric, Telephone, Internet) $25.00 Total Average Monthly Fixed Expenses $1,239.98 Total Hours in a Week = 168 Total Units Sold Units Sold 6,420 800 600 400 200 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Monthly Fixed Expenses $1,239.98 = Contribution Margin per Unit Monthly Break-Even Units $4.17 In an average month, the company will begin 297 to make a profit after selling units. Selling Price per Unit $7.00 Number of Units Sold 6,420 $44,940.00 Total Sales Variable Expenses $0.00 $44,940.00 Contribution Margin Fixed Operating Expenses $11,779.81 $33,160.19 Pre-Tax Profit Taxes @ 15% Net Profit $4,974.03 $28,186.16 Start-Up Investment Start-Up Expenditures Item Where Will I Buy This? Cost Computer/cell phone Best Buy/AT&T Already owned Start up supplies/ ingredients BJ’s $200.00 DBA Hartford ServSafe certification Culinary School $350.00 Stove/Cooking utensils SMSA’s Kitchen (Commercial) $0.00 Partnership Agreement Webber & Myers LLC $150.00 Total Start-Up Expenditures $710.00 $10.00 Cash Reserves Emergency Fund Reserve for Fixed Expenses (x3) Total Start-Up Investment $355.00 $3,719.94 $4,784.94 ROS: Return on Sales For My Business: $28,186.16 $44,940.00 X 100 = 63% Dollar Equivalent = $.63 ROI: Return on Investment For My Business: $28,186.16 $4,784.94 X 100 = 589% Dollar Equivalent = $5.89 $4,784.94 Total Start-Up Investment Source Amount Personal Savings $4,000.00 Relatives/Friends $800.00 Totals $4,784.94 Debt (owe) Equity(own) x x Gift Personal Long-Term Short-Term Business To get our business up and running (June – Aug) Will improve our business by hiring more employees to help with the cooking. Hire a professional chef later on Training/education involves going to culinary school which will perfect our skills To use a professional chef as our mentor which we will pay to teach us the cooking skills we need in order to successfully run our business Graduate from SMSA and attend a college of our choice K: To graduate from college and secure a job in the criminal justice field J: To graduate from college and secure a job in the medical field Thank you for your consideration. SMSA’s Family Meal Night Visit our website: www.smsafmn.webs.com UNDER CONSTRUCTION