rmcf business plan prelim (1) latest
TRANSCRIPT
Business Plan
Rocky Mountain Chocolate Factory
22 Chicago Ave #109 Naperville, IL 60540
630.637.0085
April 16, 2014
Zachary Brelsford2710 Fairleigh Ter.
St Joseph, MO 64506816.256.6218
Table of Contents
Section I - Executive Summary.......................................................................................................3Section II - Company Description...................................................................................................4
Background..........................................................................................................................4Naperville.............................................................................................................................4
Section III - Industry Overview.......................................................................................................5Background..........................................................................................................................5Companies............................................................................................................................5Rocky Mountain Chocolate Factory....................................................................................5
Section IV - Local Competitors.......................................................................................................6Chart.....................................................................................................................................6
Section V - Market Analysis............................................................................................................6Median Income....................................................................................................................6Tapestry................................................................................................................................7Graph....................................................................................................................................7
Section VI - Marketing Strategy......................................................................................................8Pricing..................................................................................................................................8Promotions...........................................................................................................................8Community Involvement.....................................................................................................9
Section VII - Financial Plan...........................................................................................................10Sales...................................................................................................................................10Cost of Goods Sold............................................................................................................10Payroll................................................................................................................................10Bottom Line.......................................................................................................................10Cash Flow..........................................................................................................................10
Section VIII - Management...........................................................................................................11Owner.................................................................................................................................11Manager.............................................................................................................................11Customer Service...............................................................................................................11
Section VIIII - Financial Projections.............................................................................................12Profit and Loss...................................................................................................................14Cash Flow..........................................................................................................................15Balance Sheet.....................................................................................................................16
Appendix........................................................................................................................................18
2
Section I - Executive Summary
My goal is to turn the Naperville Rocky Mountain Chocolate Factory Store into the premiere confectionery destination. I want everyone in Naperville and beyond to experience the value and quality of our products. From the moment they come into my store or contact me for an event, I will always treat the customer as royalty. This will create a ripple effect of goodwill that will permeate the community. With the plan I have laid out, I can not only be successful at my location, but eventually expand.
I will take control of the Naperville RMCF in July of 2014. The store is currently owned by the corporation but was previously run by a franchisee. At its high point in 1999 the store did $413,368 in sales. However, the last full year it was open, which was 2012, the store only did $287,286. This leaves plenty of room for improvement and I plan to capitalize on that. My first year projection for sales is $302,562. My projected sales for the next three years combined are $962,995.
My plan is to become the leader in the confectionery market of Naperville. I will achieve this by doing promotional events, building a reputation for quality, improving customer service, maintaining an active social media presence, innovating with new ideas and delving into new market segments.
I once heard a good saying that “you can be the best or the cheapest, but not both”. Some of the local competitors may have cheaper products, but the RMCF store will beat them in value, and because of this will be made into the best store in the area. The store will not only be the best in quality, but also in service.
My experience for the last seven years has been in customer service and sales. I have dealt with a variety of customer concerns and customers left the store pleased with the results. I have sold everything from pizza to paint and I think selling is all about creating relationships with customers. I have been successful in doing this by staying patient, listening, and understanding what the customer wants. My ability to create relationships will build a solid customer base and a lasting reputation in the community.
This plan will show RMCFs value, explain the industry and market, list the competitors, and demonstrate how the store will be transformed into the premiere confectionery location.
3
Section II - Company Description
Rocky Mountain Chocolate Factory (“RMCF”) is a confectionery manufacturer and international franchisor. It operates in the United States, Japan, Canada and the United Arab Emirates, and is based in Durango, Colorado. The company produces an impressive line of gourmet handmade chocolates in its 53,000 square foot factory. The products are then shipped fresh in refrigerated delivery trucks to the franchised locations. (RMCF, 2009).
RMCF, as a manufacturer, produces some of the finest chocolate in the world. The company makes great tasting confectionery items and specializes in fudge and caramel apples. All the chocolate that comes from RMCF is handmade. “The factory typically produces approximately 300 chocolate candies and other confectionery products, using proprietary recipes developed primarily by its master candy maker. These products include many varieties of clusters, caramels, creams, meltaways, truffles and molded chocolates”. (RMCF, 2009).
Since RMCF has been a proven successful franchisor since 1982, RMCF’s winning marketing support services combined with an in-depth seven day training program and an experienced field team help improve the franchisees success. With this proven formula, the store can be profitable in the Naperville, Illinois location.
Naperville is the second largest city in Illinois and has a population of around 145,000 people. Just under 30 minutes west of Chicago, it has easy access to highways and the major airports. Naperville’s median household income (within 5 miles of the store) is $92,965.(Esri, 2014). According to the census conducted in 2012 the median household income in the United States is considerably lower at $51,371. Also, Fortune Small Business magazine listed Naperville as #29
4
in its Top 100 Best Places to Live and Launch for the year 2008.(Development Partnership, 2013).
Section III - Industry Overview
The confectionery industry, for the most part, is resistant to the fluctuations of the economy. Even during the recent recession people considered chocolate an affordable luxury. In fact, a recent study showed that 90 percent of people surveyed consume chocolate.(Sena, 2014).
As the economy recovers, premium chocolates are becoming even more popular. Packaged Facts predicts that soon premium chocolate sales will account for 15% to 17% of the total market share.”(Lindell, 2011).
The confectionery industry has two main groups of buyers, impulse driven and brand loyalists. Impulse driven buyers make unplanned purchases based on emotions. Brand loyalists repeatedly purchase products from the same company almost regardless of competition.
The 5 biggest companies on a global scale are Mars, Nestle, Kraft, Hershey and Ferrero. (Five, 2014). The bulk of what these companies produce is for mass distribution. The total confectionery market grew 3.6% and reached $33.6 billion in 2013, which is the six consecutive year of growth. Additionally the chocolate market continues to grow 3 to 4 percent every year according to NCA reports. (Wexler, 2013) The U.S. market share of chocolate is estimated at 86%. (Sena, 2014).
RMCF competes in the confectionery industry and some of its main competitors on a global scale are Hershey's, Kraft and Nestle. RMCF is a relatively small company compared to these competitors and has to differentiate itself to compete. This is achieved through hand-making high end, gourmet chocolate and a variety of other products. The high quality of the product draws many product loyalists to the RMCF brand and the variety of products sparks impulse buys.
5
Section IV - Local Competitors
On a local level the store will be competing for snack dollars. Snack dollars are what a person is willing to spend to quickly satisfy a craving. There are many competitors in the area. Here is a list:
Competitor Strengths Weaknesses Distance
Forever Yogurt- Variety of flavors
- Eye catching- Only Yogurt
- 210 Feet
Le Chocolat de Bouchard
- Gourmet Styled chocolate- Offer a taste testing
seminar
- Price is high compared to competitors
- .2 Miles
Popcorn Palace- Cheap- Quick
- Customizable
- No products besides popcorn
- .2 Miles
Cold Stone Creamery
- Brand Recognition- Advertising
- Expensive - .2 Miles
Fannie May Fine Chocolates
- Been in business since 1920
-Large selection of products
- Chocolate is not handmade
- 3.8 Miles
Section V - Market Analysis
With a high household median income, families in Naperville will be able to afford luxury items like confectionery products. A high level of college education means that consumers will have the ability to discern between high end chocolate and a Hershey’s bar, just as they can taste the difference in wines. Consumers here know what they like and have the means to buy it. The main target customers for the Naperville location are women ages 25-55 because they are the primary purchaser in the household and are often impulse buyers.
6
Knowing the tapestry of an area is important for effective marketing. Twenty-seven percent of Naperville is considered an “In Style” group. This means they are more educated than the average American and have a high household income. Seventeen percent are “Retirement Communities” which usually are over the age of 50 and have lots of free time. Thirteen percent are considered “Young and Restless” who are around 30 years old and pursuing careers. Thirteen percent are “Wealthy Seaboard Suburbs” who are around 40 and make around $100,000 a year. Twelve percent are considered a “Suburban Splendor” who enjoy luxury and have a very high level of disposable income. These five groups make up 82 percent of the population of Naperville and only 8.5 percent of the population in America.(Esri, 2014). This is a strong advantage because of the extra disposable income and time. With demographics like this, gift giving is commonplace and a potential source of significant income for RMCF.
Not only does Naperville have a high median household income and large population but both of these are on the rise. Naperville has grown 10.51% since the year 2000. (Noss, 2013) According to an Esri report the median household income will go from $92,965 in 2012 to $101,621 in 2017. (Esri, 2014).
7
Section VI - Marketing Strategy
The stores budget for local advertising and promotions will be two percent of sales. According to the projections this will be $6051 for the first year. That money will allow many promotions to be run.
Due to the high median income, the market will support a higher price than what RMCF recommends. Higher pricing will work because of higher rates of disposable income and the higher frequency of gift giving, which reduces peoples sensitivity to price.
The store is only half a mile south of North Central College, which has 3000 students. Events could be held on the campus, with the schools permission, and free samples could be handed out in exchange for email addresses. This is a private college and many students there have significant discretionary cash.
One way sales will increase is by maintaining an active social media presence. This will mean putting coupons on Facebook and Twitter and also sharing pictures of products. Traditionally Facebook has been better for businesses than Twitter so the focus will be on promoting the FB page. One way the store will get likes on Facebook will be by doing giveaways for shares and likes. Additionally, business cards will be printed that say “Like us on Facebook” and have the information for the store. Business cards for the owner and the email signature for the store will contain the same message.
Customers will be informed of the daily special while being offered a sample. Sampling is important because customers need to experience our superior product to understand the value. In addition to daily specials, the store will do a monthly drawing where customers can enter to win a twenty dollar gift card by providing their home address and email. Email promotions are important and the store will gather emails from as many customers possible in order to send out specials. When a promotion or advertisement is run, the main selling point will be freshness and the fact that the products are handmade and high quality.
The coffee industry is as big as it has ever been and companies like Starbucks have benefitted greatly. Consumers who drink coffee typically go to the same place every day to get their fix. The RMCF store will be open to offering coffee too. After finding out what customers like, money will be saved to buy a coffee machine. Having repeat customers in the store will lead to great word of mouth advertising. Additionally the coffee drinkers will make impulse buys.
8
Since the people of Naperville live an active lifestyle, the store will target health conscious people with low sugar dark chocolate. According to WebMD “a few squares of dark chocolate a day can reduce the risk of death from heart attack by almost 50% in some cases”. (Magee, 2014) The store could run a blood drive and hand out small dark chocolate candy bars with a flyer about heart health.
While Naperville is not a big tourist destination, it does have a lot of travel for business. Many businesses are based in Naperville which means businessmen and businesswomen are coming into town daily. The store could partner with a hotel for turndown service and specials.
Sponsoring some local sports teams on a smaller scale would be beneficial. A little league baseball team would be perfect for this. Many leagues will let sponsors put up signs in the outfield and run specials if certain specifications are met. One example would be if a home-run was hit, that night would be buy one, get one free for fudge. This is just one way the store might be involved in the community.
Once a month the store will host a couples chocolate tasting night. Couples are always looking for something new and fun to do and this will be perfect. They will get the chance to sample an assortment of flavors, along with chocolate covered strawberries. These sessions could be run by one person and would have great profit margins along with creating new customers.
Another great opportunity for the store would be providing products for weddings. People are willing to spend more on these events to make sure everything is perfect. With the high quality product RMCF provides, brides and grooms alike will jump at the chance to have our product in the wedding.
Radio shows are always looking for a place to host shows outside of the studio. It gives them face time with people and helps them make their show more popular. If spacing is possible, a station could broadcast from the RMCF store and promote the store on the radio for free. This would be a win-win for both the store and the station.
Something that will be popular in the store will be a prize wheel. For instance, if a customer spends $15, they get to spin the prize wheel. The prizes could be a free drink or other various items. This will help motivate customers to spend over the average ticket or invoice sale, which is about eight dollars, and will also add excitement for the customer.
Based on the outlined marketing program listed above, the store will be back above the $300,000 sales mark for the first time since 2006.
9
Section VII - Financial Plan
Sales projections- I used historical data of 2010-2012 and averaged the sales per month. Using that as my base, I plan to increase sales six percent my first year. Six percent is justifiable because of the increasing population and median income. If all the store does is maintain market share then it will grow two percent. Since the plan is to grow market share, not just maintain, another four percent can be expected through increased customer service, new types of promotions and a franchisee prospective. A six percent growth will mean $302,562 in sales at the end of the first year. The second year I plan to grow an additional seven percent due to learning the business and market better, along with gaining a reputation throughout the community. Seven percent growth in the second year will mean $323,742 in sales. Four percent growth is projected for the third year. This is because the main customer base will have been reached and new customers will be harder to come by. Four percent growth in the third year means $336,691 in sales.
Cost of goods sold- My cost of goods sold will be 32%. I will pay close attention to inventory levels and what is selling. I asked many RMCF owners and found this to be a good prediction for my first year. My second and third year I expect to lower the percentage due to my experience and knowledge of product popularity in the market.
Payroll- I want to know the store and get settled in before training a manager. After two months, an assistant manager will be hired for 24,000 dollars per year. Additional part time staff will also be hired. I will keep payroll down by knowing when to staff the store and when I can run it on my own. The hourly wages will be kept to 9% of sales and the total salary will be approximately 16% of sales. I will work as many hours a week as needed to keep this percentage.
Bottom Line- By keeping a good net profit percentage and increasing sales I plan to pay my loan back in four years.
Cash Flow- The store is projected to keep a positive cash flow every month throughout my 3 year outlook. The lowest projection is $14,993 during August of my second year. I will be watching for that a couple months in advance and if it looks like the store will not have enough cash I will reduce the draw I take. This applies to any other month as well.
10
Section VIII - Management
I will manage the store. I am majoring in marketing and business management, both of which apply heavily to this position. I have been in the customer service industry for 7 years and feel very comfortable around customers. All my jobs have been sales-oriented and I now have a good read on what customers are thinking. I know how to be friendly and helpful with a positive attitude. I have used a planogram before and understand the structuring of product placement. College has helped me improve my time management skills. All of these skills make me confident in my ability to run the Naperville Rocky Mountain Chocolate Factory.
I will hire an assistant manager after two months for $24,000 per year. I researched what competing businesses were hiring for and this seemed an adequate salary for this position. I will be able to attract a talented person without overpaying them. I will look for someone with experience in management, preferably in the food industry. I would like someone with strong customer relations skills and a positive attitude. Once hired, I would immediately go over customer service goals and introduce them to the system of “Greet, sample, promote”. After training them I would provide ongoing support for them so that they could keep improving.
Since this is not a big tourist area, a good percentage of the sales will be repeat customers. Due to this, excellent customer service will be key. Customer service will be improved by stressing the value of customers with the staff. Patience, attentiveness and communication skills will be some of the main qualities screened for in the hiring process. Many training exercises will be conducted for the employees to understand they are the face of the company while behind the counter. Birthday emails will also increase customer satisfaction. Getting customer feedback through surveys and questionnaires and making sure to act on that feedback would be a necessity.
11
Section VIIII - Financial ProjectionsProfit and Loss Year One
12
Fiscal Year 2015July August September October November December January February March April May June TOTAL
Ordinary Income/ExpenseIncome
41000 · Merchandise Sales 16,116 17,644 23,927 40,174 21,481 51,456 13,943 31,878 19,339 24,585 23,521 18,498 302,562Total Income 16,116 17,644 23,927 40,174 21,481 51,456 13,943 31,878 19,339 24,585 23,521 18,498 302,562
Cost of Goods Sold51000 · Cost of Goods Sold 5,157 5,646 7,657 12,856 6,874 16,466 4,462 10,201 6,188 7,867 7,527 5,919 96,82052000 · Freight-In 282 309 419 703 376 900 244 558 338 430 412 324 5,295
Total COGS 5,439 5,955 8,075 13,559 7,250 17,366 4,706 10,759 6,527 8,297 7,938 6,243 102,115
Gross Profit 10,677 11,689 15,852 26,615 14,231 34,089 9,237 21,119 12,812 16,287 15,583 12,255 200,447
Expense61000 · Payroll Expenses
61100 · Salaries 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,00061200 · Hourly Wages 1,450 1,588 2,153 3,616 1,933 4,631 1,255 2,869 1,740 2,213 2,117 1,665 27,23161300 · Bonuses 061400 · Payroll Taxes 401 417 483 653 457 771 378 566 435 490 479 426 5,95661500 · Employee Benefits 0
Total 61000 · Payroll Expenses 3,852 4,005 4,636 6,268 4,391 7,402 3,633 5,435 4,175 4,702 4,596 4,091 57,186
62000 · Office Expenses62100 · Telephone Expense 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 1,08062200 · Computer and Internet Expenses 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 1,56062300 · Business Licenses and Permits 1,700.00 1,70062400 · Bank Service Charges 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 24062500 · Office Supplies 15 15 15 15 15 15 15 15 15 15 15 15 180
Total 62000 · Office Expenses 1,945 245 245 245 245 245 245 245 245 245 245 245 4,640
63000 · Occupancy Expenses63100 · Rent Expense 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 42,75663200 · Repairs and Maintenance 200 50 50 200 50 50 200 50 50 200 50 50 1,20063300 · Utilities 650 650 650 650 650 650 650 650 650 650 650 650 7,150
Total 63000 · Occupancy Expenses 4,413 4,263 4,263 4,413 4,263 4,263 4,413 4,263 4,263 4,413 4,263 4,263 51,756
64000 · Selling Expenses64100 · Royalty Payment 403 441 598 1,004 537 1,286 349 797 483 615 588 462 7,56464200 · Credit Card Processing Charges 242 265 359 603 322 772 209 478 290 369 353 277 4,53864300 · Advertising and Promotion 161 176 239 402 215 515 139 319 193 246 235 185 3,02664400 · Eat,Waste, Sample 161 176 239 402 215 515 139 319 193 246 235 185 3,02664500 · Uniforms 200 200
Total 64000 · Selling Expenses 1,167 1,059 1,436 2,410 1,289 3,087 837 1,913 1,160 1,475 1,411 1,110 18,354
65000 · Insurance Expense65100 · General Liability Insurance 263 263 263 263 263 263 263 263 263 263 263 263 3,15065200 · Worker's Compensation 223 223 223 223 223 223 223 223 223 223 223 223 2,67065000 · Insurance Expense - Other 0
Total 65000 · Insurance Expense 485 485 485 485 485 485 485 485 485 485 485 485 5,820
66000 · Professional Fees66100 · Accounting/Tax 70 70 70 320 70 320 320 70 70 320 70 70 1,84066000 · Professional Fees - Other 0
Total 66000 · Professional Fees 70 70 70 320 70 320 320 70 70 320 70 70 1,840
67000 · Travel Expense67100 · Mileage 896 89667300 · Meals and Entertainment 200 20067000 · Travel Expense - Other 1,000 1,000
Total 67000 · Travel Expense 2,096 0 0 0 0 0 0 0 0 0 0 0 2,096
68000 · Other Expense68100 · Charitable Gifts 161 176 239 402 215 515 139 319 193 246 235 185 3,026
Total 68000 · Other Expense 161 176 239 402 215 515 139 319 193 246 235 185 3,026
69000 . Financing Expenses
69100 . Interest Expense 0 0 0 544 538 533 527 522 516 510 505 499 4,693
Total 69000 . Financing Expenses 0 0 0 544 538 533 527 522 516 510 505 499 4,693
69500 · Amortization 14 14 14 14 14 14 14 14 14 14 14 14 16769600 · Depreciation Expense 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 19,405
Total Expense 15,820 11,934 13,005 16,718 13,126 18,480 12,230 14,882 12,739 14,028 13,441 12,579 168,983
Net Ordinary Income -5,143 -245 2,847 9,897 1,105 15,609 -2,993 6,237 73 2,260 2,142 -324 31,465
Profit and Loss Year Two
13
Ordinary Income/ExpenseIncome
41000 · Merchandise SalesTotal Income
Cost of Goods Sold51000 · Cost of Goods Sold52000 · Freight-In
Total COGS
Gross Profit
Expense61000 · Payroll Expenses
61100 · Salaries61200 · Hourly Wages61300 · Bonuses61400 · Payroll Taxes61500 · Employee Benefits
Total 61000 · Payroll Expenses
62000 · Office Expenses62100 · Telephone Expense62200 · Computer and Internet Expenses62300 · Business Licenses and Permits62400 · Bank Service Charges62500 · Office Supplies
Total 62000 · Office Expenses
63000 · Occupancy Expenses63100 · Rent Expense63200 · Repairs and Maintenance63300 · Utilities
Total 63000 · Occupancy Expenses
64000 · Selling Expenses64100 · Royalty Payment64200 · Credit Card Processing Charges64300 · Advertising and Promotion64400 · Eat,Waste, Sample64500 · Uniforms
Total 64000 · Selling Expenses
65000 · Insurance Expense65100 · General Liability Insurance65200 · Worker's Compensation65000 · Insurance Expense - Other
Total 65000 · Insurance Expense
66000 · Professional Fees66100 · Accounting/Tax66000 · Professional Fees - Other
Total 66000 · Professional Fees
67000 · Travel Expense67100 · Mileage67300 · Meals and Entertainment67000 · Travel Expense - Other
Total 67000 · Travel Expense
68000 · Other Expense68100 · Charitable Gifts
Total 68000 · Other Expense
69000 . Financing Expenses
69100 . Interest Expense
Total 69000 . Financing Expenses
69500 · Amortization69600 · Depreciation Expense
Total Expense
Net Ordinary Income
Fiscal Year 2016July August September October November December January February March April May June Total
17,244 18,879 25,602 42,986 22,985 55,057 14,919 34,110 20,692 26,306 25,168 19,793 323,74217,244 18,879 25,602 42,986 22,985 55,057 14,919 34,110 20,692 26,306 25,168 19,793 323,742
5,432 5,947 8,065 13,541 7,240 17,343 4,700 10,745 6,518 8,286 7,928 6,235 101,979302 330 448 752 402 964 261 597 362 460 440 346 5,665
5,734 6,277 8,513 14,293 7,642 18,307 4,961 11,342 6,880 8,747 8,368 6,581 107,644
11,511 12,602 17,090 28,693 15,342 36,751 9,959 22,768 13,812 17,559 16,800 13,212 216,097
2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,0001,552 1,699 2,304 3,869 2,069 4,955 1,343 3,070 1,862 2,367 2,265 1,781 29,137
0413 430 500 682 473 809 389 589 449 508 496 440 6,177
03,965 4,129 4,805 6,551 4,542 7,764 3,731 5,659 4,311 4,875 4,761 4,221 59,314
90.00 90.00 90 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 1,080130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 1,560900.00 90020.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 240
15 15 15 15 15 15 15 15 15 15 15 15 1801,155 255 255 255 255 255 255 255 255 255 255 255 3,960
3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 3,563 42,756200 50 50 200 50 50 200 50 50 200 50 50 1,200650 650 650 650 650 650 650 650 650 650 650 650 7,800
4,413 4,263 4,263 4,413 4,263 4,263 4,413 4,263 4,263 4,413 4,263 4,263 51,756
862 944 1,280 2,149 1,149 2,753 746 1,705 1,035 1,315 1,258 990 16,18700
172 189 256 430 230 551 149 341 207 263 252 198 3,2370 200 200
1,035 1,133 1,736 2,579 1,379 3,303 895 2,047 1,242 1,578 1,510 1,188 19,624
263 263 263 263 263 263 263 263 263 263 263 263 3,150223 223 223 223 223 223 223 223 223 223 223 223 2,670
0485 485 485 485 485 485 485 485 485 485 485 485 5,820
350 75 75 350 75 350 350 75 75 350 75 75 2,2750
350 75 75 350 75 350 350 75 75 350 75 75 2,275
000
0 0 0 0 0 0 0 0 0 0 0 0 0
172 189 256 430 230 551 149 341 207 263 252 198 3,237172 189 256 430 230 551 149 341 207 263 252 198 3,237
493 488 482 476 470 465 459 453 447 441 435 429 5,538
493 488 482 476 470 465 459 453 447 441 435 429 5,538
14 14 14 14 14 14 14 14 14 14 14 14 1671,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 1,617 19,405
13,699 12,647 13,988 17,170 13,330 19,066 12,368 15,209 12,916 14,292 13,667 12,745 171,097
-2,189 -46 3,102 11,523 2,012 17,685 -2,410 7,560 896 3,267 3,133 467 45,000
Profit and Loss Year 3
14
Fiscal Year 20171st. Qtr 2nd. Qtr. 3rd. Qtr. 4th. Qtr. Total
64,194 125,869 72,510 74,117 336,69164,194 125,869 72,510 74,117 336,691
19,900 39,019 22,478 22,976 104,3741,123 2,203 1,269 1,297 5,892
21,024 41,222 23,747 24,273 110,266
43,171 84,647 48,763 49,844 226,425
6,000 6,000 6,000 6,000 24,0005,778 11,328 6,526 6,671 30,302
01,369 2,014 1,456 1,473 6,313
013,147 19,343 13,982 14,143 60,615
0270 270 270 270 1,080390 390 390 390 1,560900 90060 60 60 60 24045 45 45 45 180
1,665 765 765 765 3,960
010,689 10,689 10,689 10,689 42,756
300 300 300 300 1,2001,950 1,950 1,950 1,950 7,800
12,939 12,939 12,939 12,939 51,756
03,210 6,293 3,626 3,706 16,835
00
642 1,259 725 741 3,367200 200
4,052 7,552 4,351 4,447 20,401
0788 788 788 788 3,150668 668 668 668 2,670
01,455 1,455 1,455 1,455 5,820
0540 540 540 540 2,160
0540 540 540 540 2,160
0000
0 0 0 0 0
0642 1,259 725 741 3,367642 1,259 725 741 3,367
0
1,252 1,198 1,143 1,088 4,682
1,252 1,198 1,143 1,088 4,682
42 42 42 42 1674,851 4,851 4,851 4,851 19,405
40,584 49,944 40,793 41,012 172,333
2,586 34,704 7,970 8,832 54,092
15
Ordinary Income/Expense
Income41000 · Merchandise Sales
Total Income
Cost of Goods Sold51000 · Cost of Goods Sold52000 · Freight-In
Total COGS
Gross Profit
Expense61000 · Payroll Expenses
61100 · Salaries61200 · Hourly Wages61300 · Bonuses61400 · Payroll Taxes61500 · Employee Benefits
Total 61000 · Payroll Expenses
62000 · Office Expenses62100 · Telephone Expense62200 · Computer and Internet Expenses62300 · Business Licenses and Permits62400 · Bank Service Charges62500 · Office Supplies
Total 62000 · Office Expenses
63000 · Occupancy Expenses63100 · Rent Expense63200 · Repairs and Maintenance63300 · Utilities
Total 63000 · Occupancy Expenses
64000 · Selling Expenses64100 · Royalty Payment64200 · Credit Card Processing Charges64300 · Advertising and Promotion64400 · Eat,Waste, Sample64500 · Uniforms
Total 64000 · Selling Expenses
65000 · Insurance Expense65100 · General Liability Insurance65200 · Worker's Compensation65000 · Insurance Expense - Other
Total 65000 · Insurance Expense
66000 · Professional Fees66100 · Accounting/Tax66000 · Professional Fees - Other
Total 66000 · Professional Fees
67000 · Travel Expense67100 · Mileage67300 · Meals and Entertainment67000 · Travel Expense - Other
Total 67000 · Travel Expense
68000 · Other Expense68100 · Charitable Gifts
Total 68000 · Other Expense
69000 . Financing Expenses
69100 . Interest Expense
Total 69000 . Financing Expenses
69500 · Amortization69600 · Depreciation Expense
Total Expense
Net Ordinary Income
Cash FlowFiscal Year 2015
July August September October November December January February March April May June TOTAL
CASH RECEIPTS
Income from Sales
Cash Sales 16,116 17,644 23,927 40,174 21,481 51,456 13,943 31,878 19,339 24,585 23,521 18,498 302,562
AR Collections 0
Total Cash from Sales 16,116 17,644 23,927 40,174 21,481 51,456 13,943 31,878 19,339 24,585 23,521 18,498 302,562
Income from Financing
Interest Income 0
Loan Proceeds 145,000 145,000
Total Cash from Financing 145,000 0 0 0 0 0 0 0 0 0 0 0 145,000
Other Cash Receipts 0
TOTAL CASH RECEIPTS 161,116 17,644 23,927 40,174 21,481 51,456 13,943 31,878 19,339 24,585 23,521 18,498 447,562
CASH DISBURSEMENTS
Inventory Purchases 5,439 5,955 23,075 13,559 7,250 17,366 4,706 10,759 6,527 8,297 7,938 110,872
Operating Expenses 14,189 10,303 11,374 15,087 11,495 16,849 10,599 13,251 11,108 12,397 11,810 10,948 149,411
Capital Purchases 115,000 115,000
Principal Loan Payments 0 0 0 1,472 1,477 1,483 1,488 1,494 1,500 1,505 1,511 1,517 13,446
Owner Income Tax Payments 0 6,653 829 7,482
Owner's Draw 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 31,200
TOTAL CASH DISBURSEMENTS 131,789 18,342 19,929 42,235 29,131 28,182 38,707 22,051 25,967 23,858 24,218 23,003 427,411
NET CASH FLOW 29,327 -699 3,998 -2,061 -7,651 23,273 -24,763 9,827 -6,628 727 -696 -4,505 20,151
Opening Cash Balance 29,327 28,629 32,627 30,567 22,916 46,189 21,426 31,253 24,626 25,352 24,656
Cash Receipts 161,116 17,644 23,927 40,174 21,481 51,456 13,943 31,878 19,339 24,585 23,521 18,498
Cash Disbursements 131,789 18,342 19,929 42,235 29,131 28,182 38,707 22,051 25,967 23,858 24,218 23,003
ENDING CASH BALANCE 29,327 28,629 32,627 30,567 22,916 46,189 21,426 31,253 24,626 25,352 24,656 20,151
Cash Flow Year One
Cash Flow
CASH RECEIPTS
Income from Sales
Cash Sales
AR Collections
Total Cash from Sales
Income from Financing
Interest Income
Loan Proceeds
Total Cash from Financing
Other Cash Receipts
TOTAL CASH RECEIPTS
CASH DISBURSEMENTS
Inventory Purchases
Operating Expenses
Capital Purchases
Principal Loan Payments
Owner Income Tax Payments
Owner's Draw
TOTAL CASH DISBURSEMENTS
NET CASH FLOW
Opening Cash Balance
Cash Receipts
Cash Disbursements
ENDING CASH BALANCE
Fiscal Year 2016
July August September October November December January February March April May June Total
17,244 18,879 25,602 42,986 22,985 55,057 14,919 34,110 20,692 26,306 25,168 19,793 323,742
0
17,244 18,879 25,602 42,986 22,985 55,057 14,919 34,110 20,692 26,306 25,168 19,793 323,742
0
0
0 0 0 0 0 0 0 0 0 0 0 0 0
0
17,244 18,879 25,602 42,986 22,985 55,057 14,919 34,110 20,692 26,306 25,168 19,793 323,742
6,243 5,734 6,277 8,513 14,293 7,642 18,307 4,961 11,342 6,880 8,747 8,368 107,306
12,068 11,016 12,357 15,539 11,699 17,435 10,737 13,578 11,285 12,661 12,036 11,114 151,526
0
0
1,020 217 1,236
2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 31,200
21,931 19,350 21,234 26,869 28,592 27,678 31,644 21,139 25,226 22,141 23,383 22,082 291,268
-4,687 -471 4,368 16,117 -5,607 27,380 -16,725 12,971 -4,534 4,164 1,785 -2,289 32,473
20,151 15,464 14,993 19,362 35,479 29,872 57,251 40,527 53,498 48,964 53,128 54,914
17,244 18,879 25,602 42,986 22,985 55,057 14,919 34,110 20,692 26,306 25,168 19,793
21,931 19,350 21,234 26,869 28,592 27,678 31,644 21,139 25,226 22,141 23,383 22,082
15,464 14,993 19,362 35,479 29,872 57,251 40,527 53,498 48,964 53,128 54,914 52,625
Cash Flow Year Two
Fiscal Year 2017
1st. Qtr 2nd. Qtr. 3rd. Qtr. 4th. Qtr. Total
64,194 125,869 72,510 74,117 336,691
0
64,194 125,869 72,510 74,117 336,691
0
0
0
0 0 0 0 0
0
64,194 125,869 72,510 74,117 336,691
20,597 34,489 29,572 24,098 108,756
35,692 45,051 35,900 36,119 152,761
0
0
0
7,800 7,800 7,800 7,800 31,200
64,089 87,340 73,272 68,017 292,718
106 38,529 -762 6,100 43,973
52,625 52,730 91,260 90,498
64,194 125,869 72,510 74,117
64,089 87,340 73,272 68,017
52,730 91,260 90,498 96,598
Cash Flow Year Three
Cash Flow
CASH RECEIPTS
Income from Sales
Cash Sales
AR Collections
Total Cash from Sales
Income from Financing
Interest Income
Loan Proceeds
Total Cash from Financing
Other Cash Receipts
TOTAL CASH RECEIPTS
CASH DISBURSEMENTS
Inventory Purchases
Operating Expenses
Capital Purchases
Principal Loan Payments
Owner Income Tax Payments
Owner's Draw
TOTAL CASH DISBURSEMENTS
NET CASH FLOW
Opening Cash Balance
Cash Receipts
Cash Disbursements
ENDING CASH BALANCE
Ending Balances Ending Balances Ending Balances6/30/2105 1/0/1900 6/30/217
ASSETSCurrent Assets
Checking/Savings10100 · Cash
Total Checking/Savings 0 0 0
Other Current Assets12000 · Inventory 15,000 15,000 15,00012300 · Accounts Receivable
Total Other Current Assets 15,000 15,000 15,000
Total Current Assets 15,000 15,000 15,000
Fixed Assets7 15001 · Furniture and Equipment
150011 · Cost 42,500 42,500 42,500150012 . Accum. Depreciation -6,071 -12,143 -18,214
Total Furniture and Fixtures 36,429 30,357 24,286
10 15002 - Tenant Improvements150021 . Cost 50,000 50,000 50,000150022 . Accum. Depreciation -5,000 -10,000 -15,000
Total Tenant Improvements 45,000 40,000 35,000
3 15003. Computer Equipment150031 . Cost 10,000 10,000 10,000150032 . Accum. Depreciation -3,333 -6,667 -10,000
Total Computer Equipment 6,667 3,333 0
3 15003 - Smallwares150031 - Cost 15,000 15,000 15,000150032 - Accum. Depreciation -5,000 -10,000 -15,000
Total Smallwares 10,000 5,000 0
Total Fixed Assets 98,095 78,690 59,286
Other Assets15 16001 · Franchise Fee
160011 - Cost 2,500 2,500 2,500160012 · Accum Amortization -167 -333 -500
Total Other Assets 2,333 2,167 2,000
TOTAL ASSETS 115,429 95,857 76,286
LIABILITIES & EQUITYLiabilitiesCurrent Liabilities
Accounts Payable20000 · Accounts Payable 5,734 6,581 6,741
Total Accounts Payable 5,734 6,581 6,741
Other Current Liabilities22000 · Payroll Liabilities24000 . Short Term Note Payable - RMCF 18,648 19,505 20,401
Total Other Current Liabilities 18,648 19,505 20,401
Total Current Liabilities 24,382 26,086 27,142
Long Term Liabilities25000 · Long-term Note Payable-RMCF 131,554 112,906 93,401
Total Long Term Liabilities 131,554 112,906 93,401
Total Liabilities 155,935 138,991 120,543
Equity33000 · Student Owner Equity
33100 · Student Compensation Draws -71,971 -88,135 -98,34933200 · Student Est Taxes - Fed33300 · State Est Taxes -State33400 · Student Draws - Moving Expenses33500 . Student Partnership Equity
Total 33000 · Total Student Equity -71,971 -88,135 -98,349
32000 · Retained EarningsCurrent Year Net Income 31,465 45,000 54,092
Total Equity -40,506 -43,135 -44,257
TOTAL LIABILITIES & EQUITY 115,429 95,857 76,286
Balance Sheet
References
Development Partnership, N. (2013). Doing business in Naperville. Retrieved from http://www.naperville.il.us/community_relations_doing_business_naperville.aspx
Five, T. (2014). The top 5 global confectionery companies. Retrieved from
http://top5ofanything.com/index.php?h=efb06b00
Esri. (2014). Market profile. Retrieved from
http://mwsu.mrooms3.net/pluginfile.php/302677/mod_resource/content/0/RMCF
Naperville Market Report.pdf
Invest, W. (2014, April 2). Rocky mountain chocolate factory (rmcf). Retrieved from
http://www.wikinvest.com/stock/Rocky_Mountain_Chocolate_Factory_(RMCF)
Lindell, C. (2011). Industry trends: Premium products. Retrieved from
http://digital.bnpmedia.com/article/Industry_Trends:_Premium_Products/831248/81161/
article.html
Noss, A. (2013, September). Household income 2012. Retrieved from
https://www.census.gov/prod/2013pubs/acsbr12-02.pdf
Magee, E. (2014). How enjoying a little chocolate might actually help your health.. Retrieved
from http://www.webmd.com/diet/features/health-by-chocolate
RMCF. (2009). About us. Retrieved from
http://rockymountainchocolatefactory.com/rmcf/Documents/WebHelpingFiles/
aboutUs.html
Sena, M. (2014). Chocolate industry analysis 2014 - cost & trends. Retrieved from
https://www.franchisehelp.com/industry-reports/chocolate-industry-report/
Stevenson, J. (2014). Naperville, il. Retrieved from http://www.usa.com/naperville-il.htm
Wexler, A. (2013, March 3). Chocolate sales seen outpacing non-chocolate candy
for next 5 years -- nca . Retrieved from http://online.wsj.com/article/BT-CO-
20140303-710203.html
Appendix
Zachary Brelsford2710 Fairleigh Terr
St. Joseph, MO 64506(816) 256-6218
Missouri Western State University, St. Joseph, MO B.S. Double Major in Business Management and Marketing, Expected May 2014
EXPERIENCE
Sherwin Williams, St. Joseph, MOSales Associate, June 2013 to present
· Assist customers in purchasing decisions
· Make payments to credit accounts
· Stock and organize a perpetual inventory system
· Train new employees
· Make sales calls inquiring about customer purchasing and satisfaction
Hastings Entertainment, St. Joseph, MO
Customer Service Associate, 2010 to 2013
· Assessed customer complaints and determined solutions
· Followed a planogram to organize multiple departments
· Assisted in promoting the store and attracting future customers
Pizza Hut, Kearney, MO
Delivery Driver, 2006 to 2009
· Handled cash transactions
· Adapted to time sensitive situations
ACTIVITIES
· Helped a local business rebrand their company through focus groups and a SWOT analysis
SKILLS
· Proficient in Microsoft Office Applications including Word, Excel, and PowerPoint.
· Experience using Quickbooks accounting software
Professional References
M.D. JonesSherwin Williams
2101 N Belt Hwy, St Joseph MO 64506
Phone: 816.225.1794E mail: [email protected]
Beatty MengelSherwin Williams
St. Highway A, LathropMO 64465
Phone: 816.853.5164Email: [email protected]
Prashant TarunProfessor
4525 Downs Dr, St Joseph MO 64507
Email: [email protected]