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Business Plan

Crème-Borne

Group Number-

Members-Aashima Sahni

   Navdeep Kaur

   Luo Yiting

Executive summary

Black ice cream has been highly sought after by people in recent times. Our black ice cream store will be opened in the city and the name is Crème Borne.

Crème Borne is established by 3 students (Chloe, Aashima and Navdeep). The goal is to be a special and famous ice cream store and get profit. There are many schools and a university in the city. Creme Borne will mainly target children and teenagers. Since, the unique personality of young people and children is more willing to try new things, the birth of black ice cream meets this market demand. We will use a dining car to sell it, this greatly reduces the cost of rent. The store has three staffs (Chloe, Aashima and Navdeep).

Each staff has 20000 dollars, the total start-up cost is, we calculated that the annual profit is $1306833.

Table of Contents  

1. Background

2. Implementation table

3. Financial projections

4. Concluding statements

5. References

6. Appendix

Background

With the emergence of Starbucks' Green Dragon and Unicorn Frappuccino, Dark Dessert is the latest Instagram-friendly food. The favourite dessert of social media is black ice cream, which is a mixture of charcoal and ice cream. It has gained a lot of attention on Instagram and the entire Internet, so it attracts a lot of people to taste.

Crème Borne (Anon, 2018)  provides seven kinds of ice cream(kids special, customize sundae, ice cream sandwich, twisto, ice cream roll, charcoal waffle). From Monday to Thursday, our business hour is 10:00 am- 7:00 pm. From Friday to Sunday, the business hour is 10:00am-9: 00 pm. We plan to get a business license and open the store in six months. The goal is to be a special and famous ice cream store and get profit.

Creme Borne will mainly target children and teenagers. We plan to open Crème Borne in the city, there are many schools and university in the city and have adequate student market and moreover, it is a crowded and central point of Victoria thus, it is a good place to start our business. We will use a dining car to sell ice cream, it is very convenient and greatly reduce the cost of rent.

Our marketing plan is to promote our business by distributing flyers in the city and posting black ice cream information online by developing web pages on Twitter, Facebook, Instagram and WeChat as well as our own webpage. Customers who taking photo share on social media will get 10% off in the first month. (Scribd, 2018)

The business will be self-financing. The total venture capital is 60,000$ from us (3 staffs). The start-up cost is about $ We sell ourselves, so we don't need to hire employees. Unless a major accident or major change occurs, the entire process does not require a loan. We expected the profit at the end of the business is in a year.

Implementation Table

We come up the black ice cream store idea in August 2018. The first thing we have to do is to get a business license because we need a business to open a store and sell food, if our store does not have a business license, it will be illegal. It will take us about three months to get a business license. In December 2018, we will purchase equipment and insurance, we need to buy a dining car, black ice cream materials, some machine and packing box. We will rent a place in the city to gather our dining car and renovate it, the reason we chose the city is because a large number of the people, city has many shopping malls and schools, most of the decoration of the dining car will be decorated by us, this reduces a lot of unnecessary expenses and makes the design more in line with our ideas. It will take us about two months. And then we will make a marketing plan to promote my social media and posting advertising poster in January 2019.  Creme Borne will be opened in February 2019. (Smallbusiness.chron.com, 2018)

Financial projection

Start-up costs for the business

We are planning to start to start our business in the city as there is a huge crowd, which is good for the business to start. We have to prepare the equipment such as refrigerator, table and chair, kitchen utensils, induction cooker, incubator, ice cream machine. We set the budget for these facilities about $2320 by referring the official website of eBay and  Amazon. We have decided to buy the second-hand equipment thus, the cost of equipment has reduced. Although, we would like to serve our customers in the latest, unique and hygienic tablewares, tables and chairs. Hence they feel more attractive and healthy. Therefore the cost of serving equipment is more than the production equipment. Moreover, advertisement fee and caravan rent also play a significant role in the start-up costs. The monthly rent of dining car is $1500. In addition, we have to re-decorate the dining car and make it more attractive and soothing before the start of the business. Ultimately, we think that licensing is important to start an ice cream truck. Thus, this is the part of the start-up cost too, it would take about $85 per month.

Loan

Having loans is not necessary as all the initial costs are generated from our own funds. If there is the requirement of more funds and in any compulsion and we are not able to raise up the fund, the first consideration would be given to imparting to financial institutions like banks to manage proceedings. The suitable option to adopt is Westpac bank for business overdraft according to us. The amount which can be borrowed is $30000, hence it can be used in an emergency according to our requirement, moreover, it does not carry any fixed term. The interest is charged monthly in respect to the aggregate amount used (Westpac bank official website, 2018).

Sales Budget

In reference to the sales budget table, there is a gradual rise in the growth of the business as it almost increases to 7000 units for specific months. Even though it also shows that there are fewer sales in a few months like June, July and August because of winters. Due to this, we anticipate that sales will be not so high during these three months.

But later on, there is a huge rise in the sales in the summers due to Christmas and public holidays. These assumptions can be seen in sales revenue.

Purchase Budget

In reference to the purchase budget table, it is seen that the company wants to maintain a balance of twenty per cent (20%) at the end of each month. Thus, it can anticipate any other future circumstances.

Schedule of Expected payments for Purchases

In reference to the expected payments for purchases, our company has decided to that all the purchases are made on credit., with payments to the suppliers are to be done as 35% to be made in the month of purchase and 65% in the following month.

Selling, General and Administrative expenses Budget

In reference to the budget, the advertising expenses in the first month are $120 moreover there are more other expenses such as packaging containers, rent, depreciation, licencing and legal permit, insurance, repairs and maintenance, fuels etc. There are three employees in our business which are the owners itself. Thus, these expenses have been reduced.

Budgeted Income Statement

In the revenue budget, we begin to profit in the month of February and reached a high point in the month of November. But from June to August due to winters our company had minimum profit in July.

Profit and loss balance analysis

As per the plan, our expectations are to sell 81490 Units of ice cream in the first year. This will result in earning $1306833 as total income from sales to us.

Concluding Statements

To sum up, the business plan describes the first one year plan of the business that we are about to start. It gives us the full information about the companies background, marketing, implementation timetable and financial projections with a detailed series of the budget. Our Ice cream caravan provides the unique and different style of ice creams. Our main target is kids and youngsters, thus, we get extra profit in the city and attempt our best to minimize the losses. With the help of these budget and the detailed description of the shop, we all believe that we can make a lot of profit and are assured enough to establish this business in Australia. With these financial gains, our company can grow and spread this take this business to a higher level.  

Reference

1. Anon, (2018). [online] Available at: https://www.zomato.com/ncr/creme-borne-connaught-place-new-delhi [Accessed 16 Aug. 2018].

2. Scribd. (2018). Best-Ice-Cream-Business-Plan-wth-Financials.pdf | Expense | Tax Deduction. [online] Available at: https://www.scribd.com/document/260783963/Best-Ice-Cream-Business-Plan-wth-Financials-pdf [Accessed 16 Aug. 2018].

3. Smallbusiness.chron.com. (2018). How to Start an Ice Cream Truck or Cart Business. [online] Available at: https://smallbusiness.chron.com/start-ice-cream-truck-cart-business-4421.html [Accessed 17 Aug. 2018].

4. ShopKeep. (2018). Here's How Much it Really Costs to Start a Food Truck. [online] Available at: https://www.shopkeep.com/blog/how-much-does-it-cost-to-start-a-food-truck#step-1 [Accessed 19 Aug. 2018].

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