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Pick’s Sweetz & Treatz Jennifer Pickerill

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Contents Section 1 - Introduction ................................................................................................................................ 4

Business Plan - Executive Summary .......................................................................................................... 4

Self-Analysis .............................................................................................................................................. 5

Section 2 – Analysis of the Business Situation .............................................................................................. 6

Trade Area Analysis ................................................................................................................................... 6

Geographical Analysis ........................................................................................................................... 6

Competitive Data .................................................................................................................................. 7

SWOT ANALYSIS .................................................................................................................................... 8

Market Segment Analysis ....................................................................................................................... 11

Market Segment Analysis ................................................................................................................... 11

Analysis of Location ................................................................................................................................ 12

Location ............................................................................................................................................... 12

Floor Plan ............................................................................................................................................ 14

Section 3 – Planned Operation of Proposed Business ................................................................................ 15

Proposed Organization ........................................................................................................................... 15

Type of Ownership .............................................................................................................................. 15

Management ....................................................................................................................................... 16

Proposed Product ................................................................................................................................... 17

Proposed Product and Service ............................................................................................................ 17

Suppliers .............................................................................................................................................. 18

Equipment ........................................................................................................................................... 19

Proposed Marketing Strategies .............................................................................................................. 19

Pricing Policies .................................................................................................................................... 19

Promotional Strategies ....................................................................................................................... 20

Section 4 –Financing ................................................................................................................................... 21

Projected Income and Expenses ............................................................................................................. 21

Sales Forecast ...................................................................................................................................... 21

Building Cost ....................................................................................................................................... 22

Proposed Plan to Meet Capital Needs .................................................................................................... 22

Financing ............................................................................................................................................. 22

Conclusion ................................................................................................................................................... 22


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Bibliography ................................................................................................................................................ 23

Appendix ..................................................................................................................................................... 27

Selection Letter ....................................................................................................................................... 27

Print Ad ................................................................................................................................................... 28

Business Card .......................................................................................................................................... 29

Logo ......................................................................................................................................................... 30


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Section 1 - Introduction

Business Plan - Executive Summary Pick’s Sweetz & Treatz is a bulk candy and bakery retail store located in Southern Oregon. Pick’s plans to be a one of the kind experience sweet shop, like no other in the Rogue Valley. The business expects to have a huge success in the Rogue Valley, with the need of the store, the perfect location, the clientele and climate. Pick’s plans to have products like no other store in the Rogue Valley, as well as an unforgettable experience.

Pick’s is equally owned by its two partners. One partner with a focus of marketing, and the other with financing. It also plans to hire 2 full-time managers, and 6 part-time employees. Part-time employees will work on the floor, working with customers and stocking shelves. Two of the part-time employees will be bakers, with the potential of moving to full-time bakers (depending on need). Managers will be on the floor working cash register and supervising. One owner will be at the location at all times, working in office and available if needed, on floor.

Pick’s Sweetz & Treatz will offer a large selection of bulk candy, specialty candy, baked goods, and novelty gift items. New products will always be coming in, giving customers always a reason to return. Fresh bakery products will always be available, with prep being done the night before and baking being done every other day. Customers will also have the ability to watch the baking of cupcakes, and chocolate good being done, with a windowed kitchen.

Pick’s main focus is on students and their families. With a party room available and the fun atmosphere of the store it will appeal to people of all ages. Pick’s also plans to help the community in many ways, with volunteering for events, donating to schools, and giving a college scholarship to the winner of the annual baking contest. Seniors will be able to compete in a cupcake baking contest; they will have the ability to use the business’s kitchen facilities to bake a creative cupcake recipe. There will then be a testing/judging day, where the community votes for the best cupcake. This will all be located in the courtyard of the Medford Center, outside of the store. It will help support the community, and the store.

A large regular customer base is expected to be established at Pick’s, this will depend mostly on local residents with families. With promotion throughout schools and friendly partnerships with other local business this goal will be achieved with ease. Heavy tourist traffic will always be a huge addition to sales. The store will be located in the ideal location, the Medford Center, where there is heavy foot traffic and several busy businesses in the same location.

Pick’s already has $200,000 of its own capital from the owners and investors, and hopes to obtain more investors soon. Loans will be taken out for building costs, equipment, and capital. The overall cost will be around $377,059.58. A total of $299,455.13 will be taken out of loans, and a monthly payment of $2,393.23 will be put to paying off loans. The business hopes to obtain the sales of around $271,500 in the first year and around $400,000 in the second year. All loans will be paid off, and the businesses ultimate goal is to become completely sustainable.

Pick’s Sweetz & Treatz will be a business like no other, in Southern Oregon. It will bring value and qualities to the people of the Rogue Valley, as well as its visitors. Pick’s will be successful because of its unique atmosphere, impeccable customer service, and its competitive pricing.


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Self-Analysis Owning a candy store requires dedication, responsibility and the drive to make it the best. A candy store is constantly changing, and there is always something going on in the store. A business needs an outgoing, focused individual who will do whatever needs to be done to help make the business succeed. They also need to be able to work in a team, and have an organized schedule and plan for each day. With the qualifications of being: outgoing, organized, responsible, driven, and dedicated; a candy store can drive to success in very short amount of time.

With previous work experience in my high school student store and in a bakery, I have learned many skills. Some of these skills include teamwork, prepping, working with partnering businesses, planning, ingredients, and having things always in stock. I have also worked in retail, which has given me skills in customer service and selling. Then with high school classes, marketing camps, and being a part of DECA, I have knowledge in advertisement, marketing, and finances.

My biggest strengths include being focused and outgoing. I love working with others, not only with other employees but customers. Networking is very important in owning a business. Also being focused is important, having the drive to make things happen and following goals. My weakness would be being too organized and probably planning too much. Things can happen unexpectedly and you have to always be ready for those things. I work hard to be flexible and prepared for whatever comes my way.

With hard work and determination, I am also always willing to take risks for the purpose of bettering the business. No one gets anywhere without taking chances, and no one knows what they are capable of doing until they try. I have always been more than willing to take chances and risks, and they have always benefited me in amazing ways. I of course think about the chances I am taking, and what comes with the risk.

Having a candy store would not only strengthen the skills I already have, but help give me skills I don’t have as well. In the Liraz Entrepreneur Quiz, it gave me a score of 92, saying that “You definitely have what it takes to succeed in a small business of your own.” With this only supporting the decision even more of having my own business.

My hard work and strive for the best will help make this business above and beyond expectation. I have passion for this business and will do whatever it takes to make it the best it can be, as well as be the best I can be.


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Section 2 – Analysis of the Business Situation

Trade Area Analysis

Geographical Analysis

(SORedi)

Oregon is the only state on the West Coast with zero sales tax, making it the perfect place to shop and have a business. Within Oregon is the Rogue Valley, located in Southern Oregon. Southern Oregon is expanding everyday with new business and new things to do. Medford is the ideal location for Pick’s Sweetz & Treatz because of its perfect location, weather and typography. Rogue Valley is located in Southern Oregon. Pick’s Sweetz &Treatz will be located in the city of Medford. Medford is located between Central Point and Phoenix. There are three high schools located in Medford: South, North and Central High School. There are also fourteen elementary schools, two middle schools, and three charter schools. (Medford School District) This is important because Pick’s main focus is to cater to students. Southern Oregon has a mild Mediterranean climate. There are four main seasons, summers are hot, and winters are cold. The average temperature in the summer is around 90 degrees F and on some days can reach up to 100 degrees F. In winter temperature ranges around 32 degrees F. The rainy season starts in October and receives an average of 17’’ of rain annually. (Rogue River Valley) Medford is known for being very sunny compared to other locations in Oregon with around 200 days of sun. The topography of the Rogue Valley is ideal for Pick’s Sweetz & Treatz, with no big mountain ranges blocking the town, and lots of lakes for activates. Medford is midway between Portland and San Francisco; also it is conveniently located right next to Interstate 5. Being near not only interstate 5, but also Highways 60, 140, and 199, so people will be constantly going through the city for travel and exploring. (SORedi) Also with major roads, it will give ease to distribution of products to Pick’s. With convenient roads, and great weather, Medford is the ideal location for Pick’s Sweetz & Treatz. Distribution and tourism will be an ease. Also, two hundred sunny days will encourage foot traffic, which will be ideal for the business. In conclusion, location, temperature, and typography are working hand in hand to make Medford the perfect location for new business’s, making the town grow exponentially.

Over 200 sunny days

3 major highways

Interstate 5


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No sales tax

Average commute time of a short 18 minutes

22.3% of the population that is over 25 years old, has a bachelor’s degree or higher *Info taken from SORedi

Competitive Data

One would never see two convince stores placed right next to each other with the exact same products. They both would have to have something different from each other, or else there would be no point. There are lots of similar businesses in one area, but they have something different about them; it could be products, or service. There are two main types of competitors, direct and indirect. Direct competitors have very similar products, prices, promotions and relatively close proximity. Indirect competitions have similar products but not the same focus (like a grocery store compared to a specialty store.)

Direct Competitors

Candy Tyme Artisan Bakery

Products Bulk candy Specialty candy

Small gifts

Cupcakes Croissants

Bread Dinner

Lunches Coffee/specialty drinks

Prices Candy by the pound: $4.99/lb Gifts: $5 - $15

Meals: $5-$8 Cakes: $25-$100 (Full sheet -

$99.95) Cupcakes and baked goods: $4 -

$7

Location Rouge Valley Mall

South Medford

Promotion Website, Facebook, Coupons

TV, Social Media

Indirect Competitor

Safeway is an indirect competitor because quality of service and product will not be comparably to a specialty bakery. Specialty candy also won’t be as accessible because it being a large chain store. Safeway

Products Full service grocery store, with bakery. (Candy bars/bags, cupcakes, specialty cakes)

Prices Cakes: $18 - $57 (Full sheet - $55.99) Specialty cakes: $23 and up

Cupcakes and small treatz: $2 - $9 Candy: $0.25-$3

Location Three locations:

3169 Crater Lake Hwy Medford, OR

1902 United Way Medford, OR

1003 Medford Ctr Medford Center, Medford, OR

Promotion Online website/ordering, coupons


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SWOT ANALYSIS

A SWOT analysis was done on Picks Sweet & Treatz, as well as one direct competitor and one indirect

competitor. Strengths, weaknesses, opportunities and threats were given for each business as well as an

explanation as to why each one was either a positive and negative.

Picks Sweetz &

Treatz

Strengths

Busy business area

Lots of foot traffic

Several options

not just baked goods.

Weaknesses

Competition is in close proximity

Prices will be more expensive

Opport

unit

ies

Room

for

gro

wth

.

Abilit

y t

o o

pen m

ult

iple

store

s.

No e

xact

store

s in

South

ern

Ore

gon.

Room for growth means that multiple stores could be open, and expansions could be possible. Making the store the number one location to get baked goods, and candy.

With expenses of new merchandise regularly, the option of expansion would be expensive, and capital would be lost.

Thre

ats

The s

low

ris

ing e

conom

y.

Nearb

y a

ttra

cti

ons

openin

g.

The a

bundance o

f new

sto

res

openin

g n

earb

y.

Online s

tore

s, a

nd

opport

unit

y t

o o

rder

specia

lty ite

ms

online.

New stores, different types of clientele which might not be interested in the type of store. Distraction away from the store could be a possibility.


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Artisan Bakery

Strengths

Food options (salad, sandwiches, soup)

Very open space and atmosphere.

Weaknesses

Hidden behind businesses.

Food isn’t up to par, bad reviews.

Not a lot of options as to cupcakes/baked goods.

Opport

unit

ies

Lots

of

space t

o e

xpand a

nd a

dd

more

.

Tow

n h

as

opport

unit

y f

or

gro

wth

.

With more space, there is more room for expansions. If a new business came in, with new products, the old business would be easily to order new products.

There is opportunity for growth, but with small amount of capital, the opportunity is very unlikely.

Thre

ats

More

experi

enced b

akeri

es

in

clo

se p

roxim

ity.

Gro

cery

sto

res

wit

h b

akeri

es.

The ability to expand and have exclusive items, would set the bakery apart. If taken advantage of.

New clientele will be hard to find, with new competition coming into town.


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Safeway Bakery

Strengths

Inexpensive.

Ability to change easily.

Well known.

More products available. (Including candy)

Weaknesses

Not the top quality.

Not the same experience.

Not the bakery atmosphere.

Opport

unit

ies

Easy

im

port

ing.

Lot

of

fundin

g t

o e

xpand.

Abilit

y t

o h

ave p

rivate

label

pro

ducts

.

A lot of capital, means the business has the ability to expand easily. If competition has new products, the store could easily add the same products if not more.

Even with the right products, the store does not have the bakery atmosphere.

Thre

ats

No b

akery

atm

osp

here

.

Corp

ora

te n

atu

re.

Com

peti

tion.

With the potential to expand, a bakery atmosphere could be obtained.

People don’t look to go to Safeway to sit down and have a cupcake or coffee. The need for a bakery like atmosphere is not high.


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Market Segment Analysis

Market Segment Analysis

When a teen is trying to convince their parents to let them go out on a Friday night, they are not going to talk to them like their best friend. They talk to their parents like adults, and how they are going to be responsible, and not do anything illegal. The teen is trying to convince his parents; therefor his target market is adults. If his target market was his friends, he would probably talk with more slang, and focus on how much fun the night will be, and less about how responsible he will be. When trying to market to a certain target, the way things are said and done matter. It’s the most important part of a business plan, the target market helps decide everything else like: the product, price, place, and promotion. Age, culture/ethnic background, family size, and income level are huge factors when discussing demographics. Demographics are important when deciding a target market because they are they subcategories that decide the target. Person’s ages of 25-40 will be the main focus for Picks Sweetz & Treatz. Parents are the main clientele that will be buying in the store. Family size will be three or more, because children are the main focus of the store. Income level would have to be considerably high, because of spending habits. Families with more money are willing to spend more on food.

Picks Sweetz & Treatz

Demographics

Psychographics

Age: 25-40

Believers - As consumers, Believers are predictable; they choose

familiar products and established brands. They favor U.S. products

and are generally loyal customers.

Strivers-Strivers are active consumers because shopping is both a

social activity and an opportunity to demonstrate to peers their

ability to buy. As consumers, they are as impulsive as their financial

circumstance will allow.

Experiencers-Experiencers are avid consumers and spend a

comparatively high proportion of their income on fashion,

entertainment, and socializing. Their purchases reflect the emphasis

that they place on looking good and having "cool" stuff.

Family Size: 3 or more

Culture: Big spenders, who

generally don’t care about health.

Income Level:

$20,000 to $50,000

Psychographics group people based on attitude, and aspirations. For Picks Sweetz & Treatz there are 3 major groups that the store will focus on: believers, Strivers, and experiencers. Believers believe in established brands and familiar products with the store having bulk of big corporation candy, like MARS, believers will show interest in spending at the store. Strivers believe that shopping is a social activity, which the store caters to. Having a friendly and welcoming atmosphere for fun times, and lots of socializing, Picks Sweetz & Treatz is the ideal location for Strivers. Lastly, experiencers are avid consumers, who want to have the latest products, and enjoy the social aspect.

No matter what the situation, whether it be trying to convince ones parents to let them go out or trying to get people to come in to one’s business it’s important to know who the audience is, and how to cater


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towards their needs. A target market is a specific audience. Demographics and psychographics help to understand who a business needs to focus on.

Analysis of Location

Location

BUSINESS LOCATION

Medford Center 539 Medford Center Medford, OR 97504

It is located in North Medford, off of E Jackson St. which is off of Biddle Rd. Conveniently located across from Cinemark Tinseltown, and the in same complex as Sears.

The current owner is LBG Medford LLC.

COMPETITION

Candy Tyme is approximately 1.4 miles away (In Rogue Valley Mall)

Artisan Bakery approximately 2.0 miles away (South Medford)

Safeway approximately 174 ft. away (block away from Pick’s)

TRAFFIC

Foot traffic is a big necessity to the business, as well as some car traffic.

Most customers will be people coming or going to/from the movie theater.

About 7,528 people go back and forth on Biddle Rd. a day, making it a perfect location for Pick’s Sweetz & Treatz.

Area Map


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Floor Plan


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Section 3 – Planned Operation of Proposed Business

Proposed Organization

Type of Ownership

Pick’s Sweetz & Treatz will be a partnership. This will be the best type of ownership for Pick’s because

two brains are always better than one. With one owner specialized in marketing and one in financing

will help make sure the success of the business. A partnership is not only easy to get started, but there is

no tax burden of profits.

Sole Proprietorship Partnership Corporation Limited Liability

Pros Cons Pros Cons Pros Cons Pros Cons

Easy to form

Owner is liable for

finical obligations

No tax burden of

profits

Each partner is liable for financial

obligations

Corporation can make a

profit

Can be taxed

Takes advantage

of both corporation

and partnership

Ownership can easily

get corrupted

Complete managerial

control

Raising money for business is

difficult

Two in charge

Profit is shared

No personal liability

Held legally liable for actions

Profits and losses are

passed through to

owners with no taxation

Members cannot pay themselves

Owner takes all

profit

Unlimited liability

Easy to get started

Conflict could occur

between partners

Stockholders have limited

liability

Expensive to form

corporation

Owners are shielded

from personal liability

Self-employment

tax

Easy to stop

business at anytime

Fewer resources

Investment capital is

easily accessible

Life of business is

limited

Life of business is unlimited

Extensive record

keeping

Unlimited amount of members

No outside funding

Income is taxed as personal income

Less opportunity

for job advancement

Partners only pay personal

income tax

Ownership can be

changed

Closely regulated by government

Employees have

guaranteed paychecks

No fringe benefit


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Management

Pick’s Sweetz & Treatz management style will be in a participatory style. Every employee has tasks that they have to complete. Every person has a specific job that needs to be done. Having a specific job gives the employee a sense of value; if they don’t get their job done everyone else is affected by it. With everyone having to do their part to make things run smoothly, they feel important and feel like they are needed in order to make the business run. (Which is true) Part of participatory management is that everyone’s opinion matters. “When people on your team know where they fit in the big picture, they’re more likely to be motivated to complete the task.” (allbsuiness.com) With two owners, one will always be in office. Also, with two mangers (possibly three) one will always be working, with two retail staff working at the same time as well.

Managers will work around 40 hours a week, while part time employees will work around 10 hours a week. Part time employees will receive minimum wage, and have the opportunity to move up to manager depending on performance. Managers will receive $18hrs with the chance of raise depending on performance.

Salaries

Managers $37,440 yearly ($18/hr)

Part-Timers $4,810 yearly ($9.25/hr)

Teams have to work together if they want to be successful. People want to feel important and participatory management would be the best fit for the employees of Pick’s Sweetz & Treatz. Everyone will have a part in the business, be able to speak their mind, and work together to make Pick’s the best it can be.

Part-times (6)

Managers (2-3)

Owners (2) (Always in office)

Available to help if employees ask for owner.

Working on stock and finances.

One manager always working on floor. Helping with difficult customers.

Make employee schedules. Open and close

store. Balance drawer.

Helping customers, running cash register,

stocking shelves, cleaning duties.


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Proposed Product

Proposed Product and Service

In the Rogue Valley most stores are geared toward adults, there are many wineries, sit down restaurants, and tasting bars. The need for a safe fun destination for families and children is at an all-time high. Picks Sweetz & Treatz is the perfect answer to this problem; with a much needed family friendly service, and exclusive and yummy products not currently available in Medford. The store will be a one stop shop for baked goods, bulk candy, specialty items, and a fun experience. Products that will be available are listed below in the chart.

Baked Goods Candy Gifts Services

Cakes:

Specialty made cakes

8" 4 layer Round

1/4 Sheet

1/2 Sheet

Full Sheet

Bulk candy:

Jolly Rancher

Wonka

Jelly Belly

M&M’s

Bazooka

Hershey

Haribo

Gimbals

Sour candy

Novelty gifts:

Kidsmania

Retro gifts

Noveltees Company

Hello Kitty

Disney

Parties:

Private room

Party packages

Party Activities

Cupcakes:

4 different flavors each day

Cupcake cakes

Specialty candy:

Gilliam

Ghirardelli

Retro candy

Pastries:

Holiday pies

Croissants

Scones

Macaroons

Cookies

Chocolates

Chocolate bites

Truffles

Carmel apples

Fudge

Brownies

Picks Sweetz & Treatz will satisfy the many needs of people, with their vast supply of fun products and entertaining atmosphere. Impulse buying will be the main purchases made at Picks Sweetz & Treatz. With the help of the fun atmosphere and creative marketing the business will for sure be a success.


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Suppliers

Picks Sweetz & Treatz Suppliers List

Company

Name

Address Phone Number

Web Address Rating

Pinto Novelty

Co.

2118 Avenue X

Brooklyn, NY

11235

800-854-8490

http://www.pintonovelty.com/ 5 stars

Product Offerings

Pinto Novelty is based out of Brooklyn, New York. They have over 2,000 products online, and are known from their great customer service. They carry novelty items for every holiday, special occasion as well as fun every day toys. Also, party supplies and packs are offered on their website.

Company

Name

Address Phone Number

Web Address Rating

Candy Favorites

1101 Fifth

Avenue

McKeesport, PA

15132

1-888-525-7577

http://www.candyfavorites.com/ 5 stars

Product Offerings

Candy Favorites has been open since 1927. Their website has more than 2,800 varieties of candy, as well as supplies for running a candy store. Both bulk candy, candy bars, and vintage candy is available for purchase. Candy Favorites has hundreds of testimonials and strive to have excellent service.


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Equipment

Equipment

Candy Jars & Display Racks

5 tier candy rack $3,990.00

8 Chimneys $574.95

4 Tier Metal candy display $2,995.00

3 Tier round and 24 radius bins $2,310.50

30 Bucket Rack $286.00

Slant Front Bakery $2,000.00

Bakery/Kitchen Convection Oven $2,500.00

Planetary Mixer $2,500.00

Work table 2 x $200.00

3 Compartment sink $400

Solid door refrigerator $2,204.00

19’’ Showcase refrigerator $694.48

Bags Poly Stand Up Bags 100 x $30.80

Twist Ties $9.80

Candy Scoops 12 x $29.88 (Need 3)

5 Ft. Spiral Gumball Machine $715.00

Cash Register & Retail Pricing

Supplies

Shopkeep $49/month

Ipad Air 2 $499

Price gun $116.98

Ink Refill $15.58

Labels $59.80

Pyle 5.1-Channel Home-Theater Passive-Audio System $89.99

Security Quarter Dome Mirror

$26.98 (2x)

8.2 MHz EAS System $1,749.00

Counters & Shelves

Display Risers $12.98

Cylinder cups $37.00

Cash Wrap Black Counter System w/open showcase $432.00

$28,084.58

Proposed Marketing Strategies

Pricing Policies

Pricing is one of the most important parts when establishing a business, pricing of products determines the amount of profit the business will receive. If a business does not price their products correctly, things can go terribly wrong. If the prices are too high, customers will be less willing to pay for the products, especially if competition has their prices way lower. Setting a price too low, will run a business


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into a hole and no profit will be made. If the business makes little to almost no profit there is no room to improve or grow. After endless research and comparing Pick’s Sweetz & Treatz has found the best pricing policy, and pricing technique for not only its company but as well as investors and customers.

Pricing Policy – Pick’s Sweetz & Treatz will be using markup pricing. Products will be coming from other distributors, so the price of the product being sold in store will be the original cost to make the product in addition to a markup percentage.

Pricing Technique – Psychological pricing, odd-even pricing, and promotional pricing will be taken into consideration for Pick’s Sweetz & Treatz. All three techniques have been proven as successful, and with the wide variety of products in the store, all three could work for different situations. A great value will always be given to customers. With great value, prices will also end in all even numbers. (ex. $4.22) In addition to these will be promotions, where items are reduced for a short period of time.

New Product Introduction – With a new store, new products will be introduced. Humans don’t always adapt to change well, and don’t always like to try new things. One thing that is known to get people interested is a good deal, making promotional pricing key in the business. Having new items be reduced for a short period of time will help customers gain interest and be more open to new items.

Pick’s Sweetz & Treatz believes in their future customers and wants to give in return, a great value. Pricing of products is important for the business’s profit, customers, investors and overall image. Having the correct pricing policies and techniques makes or breaks a business’s profit. With the techniques and policies Pick’s has chosen, it will be the ideal place to shop for latest treatz and candy.

Promotional Strategies

There is a lot of amazing products in the world, but a lot people don’t know about. That is because of poor advertising; not getting the word out about the product. Having a promotional plan is very important, especially when the store first opens. Every great product didn’t just spread by word of mouth, even though that is a huge part of a business, but it became a “great” product because of the things that promoted it. Promotion consists of personal/non personal selling, advertising, public relations/publicity, direct marketing and sales promotions. Promotional activities

o Advertising - internet, radio, billboards Paid for It uses a set format to carry the message Identifies the sponsor of the message (win/win) Informs a large range of people

o Publicity/Public relations- press release, news Creates interest by having news in various forms of media Help builds an image No cost

o Sales Promotions – displays, coupons, member cards, product samples Catches the eye, creates interest


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Member cards give a reason to return Coupons give a reason to spend more Samples create interest in new products

Having a good image is important, and in order to have a good image, you need positive promotions. The positive advertising, publicity and sales described above will be implemented and successful for Pick’s Sweetz & Treatz business.

Section 4 –Financing

Projected Income and Expenses

Sales Forecast

The total target population was averaged to about 90,500 people, which includes residents and visitors from nearby towns. (Fact Finder) The percent of market share was estimated, and the percent of target market was calculated from the market share percentage and the 90,500 people. Ten percent of that was then taken. It was then estimated that the average cost a customer would spend in one transaction would be about $10. The $10 was then multiplied by the percent of the target market to find the estimated sales that was then divided by two. Reason being: a new business is only going to make half of their potential profits in the first year.

Company % of Market Share % of Target Market 10% Estimated Sales Estimated Earnings

Pick's Sweetz & Treatz 30% 27,150 2,715 $271,500 $135,750

Artisan Bakery 14% 12,670 1,267 $126,700 $63,350

Safeway 20% 18,100 1,810 $181,000 $90,500

Candy Tyme 2% 1,810 181 $18,100 $9,050

Buttercloud 14% 12,670 1,267 $126,700 $63,350

Starbucks 20% 18,100 1,810 $181,000 $90,500

Estimated Customer Spending Per Month $120

Total Target Population 90,500


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Building Cost

Building for the new store will cost $121.00 per square foot and $250.00 per square foot for kitchen and bath. The total building is 2235 square feet. Two hundred and sixty square feet of that is dedicated to kitchen and bath. The total cost will be $243,180.00. Pick’s Sweetz and Treatz will put $67,795.00 as a down payment. With a 20 year loan and an annual interest fee rate at 3.95% the loan amount will be $243,180.00 and Pick’s will pay $1,619 a month to pay it off.

Building Costs

Sq. Feet

Cost

Facilities

1975 ft

$121.00

Kitchen and Bath

260 ft

$250.00

Total

2235 ft

$303,975.00

Cash for Down Payment

$60,795.00

Term of Loan (Years)

20

Annual Interest Rate % - 3.25

3.95%

Loan Amount

$243,180.00

Monthly Payment

$1,467.22

Proposed Plan to Meet Capital Needs

Financing

Both owners for Pick’s have $50,000 each to invest in the company; they also have 2 angel investors who will be giving a total of $100,000 to the company. They have also sent multiple letters to different investors in the hope of getting more support. With the $200,000 already invested, it will go to mainly paying the deposits on the loans for equipment and working capital.

To repay the angel investors, they will receive a percent of the profit. Loans have been taken out for equipment cost, and working capital. These planned to be pay off in 6 years with an interest rate of 5.75%. There was an additional loan taken out for building cost, which is planned to be paid for in 20 years with an annual interest rate of 3.95%. The total monthly payment for all the loans will be an average of $2,393.23.

Conclusion With a strong support from the community, Pick’s Sweetz & Treatz is going to succeed. The community

includes the students, the customers, the investors, the employees, and even the suppliers. From

supplying baked goods, and candy to giving a fun atmosphere; and financial support to the town, this

business has a strong focus on helping everyone in the Rogue Valley. People should enjoy the sweeter

things in life, and Pick’s can help in doing just that.


23

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24

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Appendix

Selection Letter

Picks Sweet & Treatz Jennifer Pickerill Street Address City, State, Zip Phone

March 28, 2011 Mr. Frances Hedge SBA Loan Officer Bank of America 845 N. Highland Street Medford, OR 97501

Dear Mr. Hedge: Picks Sweetz & Treatz would be an amazing addition to the town of Central Point. Being a bake/candy shop it would bring in a lot of clientele and turn the business into a necessity for our town. Having a candy/bake shop would make a huge impact on the community. With not a lot of options for places for teens to hang out, it would help the need of a safe, fun environment. It allow the opportunity for a safe place for teens to study, hangout and stray away from parties. There are also not a lot of options for baked goods/candy in the town of Central Point. With the opening of the store it would bring a new demand to the town because of the products and great service received at the store. Families would feel comfortable spending a Friday after dinner in the store to have a special treat for the week. Birthday parties and special events would also be satisfied by Sweetz & Treatz delectable cakes. Having such a business in our community would make a huge impact. It would not only bring in a healthy profit, and funds being given to the community would be a great opportunity that shouldn’t be wasted. Picks Sweetz & Treatz would be a successful thriving business in Central Point. I look forward to discussing my thoughts and ideas for this business and our community more in depth. Let us schedule a time to meet soon, you can contact me by phone: (541) 326-2511 or by email: [email protected]. Sincerely,

Jennifer Pickerill


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