Janette TaboneMGT 253

Professor Toler

A sister owned limited liability company

Operates in the specialty foods business

Deliver quality, wholesome tasting, creative flavored, home canned jams and jellies to those who value nutrition, freshness, and feeling of home

Janette Tabone & Jen Vanderlinden owners. Janette is responsible for operations and

sales Janette has extensive experience in

management of logistical operations and has a keen insight for future planning

Jen is responsible for production and distribution

Jen has experience in the mass production of specialty foods

Geographic market- assisted living facilities in East Valley cities

Currently 1800+ assisted living communities in Arizona and 900,000 elderly residents in AZ,representing18 % of the population

Elderly population expected to grow to 1.8 million (24%) by 2020 and to 3 million(26%) by 2050

1) Begin business operations by January 2013

2) Provide excellent quality specialty jams by January 2013

3) Generate sales with a gross profit margin of 20% by December 2013

Strengths Management experience Logistics experience Problem solver Willingness to learn

Opportunities Increase popularity in

Farmers Markets Untapped market in

assisted living facilities

Weaknesses No experience making

specialty jams Lack of sales experience Web design

Threats Poor economy Fluctuation in produce

prices No commercial kitchen

The objective is to include a service that is not currently available, delivery of homemade jam to individuals who are not able to visit Farmers markets

Product adds the personal touch of direct communication with those in assisted living facilities, instilling a sense of care

Product adds a value of emotional well being over the competition

Manufacturing of the jams and jellies will be done at a kitchen incubator

Distribution of the jam will be at Farmers Markets as well as home delivery

A brochure with pictures and easy to fill out order forms will be necessary

Orders will be taken in person, further developing the personal relationship with the customer that the company strives for

“Bringing home the goodness with specialty and care”

A promotional coupon/discount will be offered in order to get the product into the market

As a promotional reminder, plastic spoons made with the company name, website and phone number will be given for customers to use in their home

Income StatementInflation 1% 2%

Year 1 Year 2 Year 3Revenue $4,400 $7,400 $17,430 Cost of Goods $3,933 $6,388 $14,567 Gross Margin $467 $1,012 $2,864

Operating ExpFarmers Market Fees 300 303 309Marketing 200 202 206Website 100 101 103Insurance 1500 1515 1545Travel 500 505 515Total Operating Exp 2600 2626 2679

Income Before Tax ($2,133)($1,614

) $185 Income Tax 25.00% ($533) ($404) $46

Net income After Tax ($1,600)($1,211

) $139

Market ForecastYear 1

Products Cost / Unit

Selling Price Qty Revenue

Cost of Goods

4oz jar jam $ 3.14

$ 3.75 300 $1,125 $942

8oz jar jam $ 6.15

$ 6.75 300 $2,025 $1,845

16oz jar jam

$ 11.46

$ 12.50 100 $1,250 $1,146

$4,400 $3,933 Year 2

Products Cost / Unit

Selling Price Qty Revenue

Cost of Goods

4oz jar jam $ 3.20 $4 500 $2,000 $1,600

8oz jar jam $ 6.21 $7 400 $2,800 $2,484

16oz jar jam

$ 11.52 $13 200 $2,600 $2,304

$7,400 $6,388

Initial Costs Food Handlers License $15.00 Application Fee for Commercial Kitchen $50.00 Deposit for Commercial Kitchen $250.00 Liability Insurance $750   Rent Commercial Kitchen $6500 Gasoline for deliveries $250 Equipment $500 (pans, etc)   Inventory $3,000 (jars, fruit)   Advertising $100 Salary $3,500   $15,000

Meet regulatory requirements for operation NLT JUN 2012

Secure $15,000 to finance business NLT JUN 2012 Establish suppliers of goods needed for production

NLT AUG 2012 Master current recipes NLT JUN 2012 Create AZ specialty jams NLT APR 2012 Create low sugar jams NLT MAY 2012 Establish sales at assisted living community Launch promotion campaign NLT DEC 2012 Conduct product review NLT NOV 2012