Cup Cake Business Plan by Chinadollpublishing

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									Sensuous Cupcakes
   St. Paul, Minnesota

                               Table of Contents

I. Executive Summary                                   04
II. General Company Description                        05
        2.1 Overview                                   05
        2.2 Legal Description                          06
        2.3 Company Concept/History                    07
        2.4 Current Status                             07
        2.5 Vision & Mission Statement                 08
III. Products and Services                             09
        3.1 Product Description                        09
        3.2 Service Description                        09
IV. Marketing Plan                                     10
        4.1 Industry Overview                          10
        4.1.1 Market Size                              12
        4.1.2 Target Market                            13
        4.1.3 Marketing Objectives                     14
        4.2 Products/Services                          15
        4.2.1 Pricing Strategy                         15
        4.2.2 Promotion Strategy                       16
        4.2.3 Distribution/Placement Strategy          16
        4.3 Competitor Analysis                        17
        4.4 SWOT Analysis                              19
        4.5 TOWS Strategy Development                  20
V. Operational Plan                                    22
        5.1 Production                                 22
        5.2 Location                                   22
        5.3 Inventories                                22
        5.4 Suppliers                                  23
        5.5 Exit Strategies                            23
IV. Management and Organization                        24
        6.1 Company Structure & Ownership              24
        6.2 Core Management Personnel                  24
        6.3 Roles & Responsibilities                   24
        6.4 Salary Structure                           25
        6.5 Key Success Factors                        25
VII. Personal Financial Statements                     27
        7.1 Personal Financial Statements              27
        7.2 Details of Personal Financial Statements   28
VIII. Startup Expenses and Capitalization              30
        8.1 Capitalization                             30
        8.2 Startup Expenses                           30
IX. Financial Plan                                     32
        9.1 Primary Assumptions                        32
        9.2 Summary of Financial Results               32
        9.3 12 Month Profit/Loss                       33

     9.4 3 Year Profit Projection    33
     9.5 Opening Day Balance Sheet   34
     9.6 Break Even Analysis         36
Appendices                           38
Appendix 1: Supply Lists             38
Research Bibliography                39

                            I. Executive Summary

      This business plan details a quick serve concept to be called Sensuous that

exclusively sells and markets the traditional American cupcake. The business is the

concept of Ms. Afarenses who for years managed the marketing department for a large

donut shop. She envisioned starting her own dessert outlet based on a fast food format

but with a mixed concept that would appeal to a wider clientele and demographic set.

Her concept is based on a Duncan Donuts type of format in which consumers are

served quickly but also encouraged to sit and drink coffee or tea with their dessert

items. Ms. Afarenses is investing $50 thousand of her own personal savings in order to

fund this venture and she is also applying for a $50 thousand small business

administration loan. Currently, she has located a site in the St. Paul, Minnesota area in

the downtown area along the Mississippi River.

                         II. General Company Description

2.1 Overview

          The intended small business is a dessert format fast food restaurant with

attributes of a quick casual format. The business’ name is Sensuous, Inc. or Sensuous

for short and the company is expected to be extremely popular with a wide range of

consumers by selling and marketing a traditional American treat which is the cupcake.

The cupcake has been noted by researchers to be uniquely American having first been

documented as a recipe in an American cookbook as long ago as 1826.1 The

opportunity for this format exists because the overall restaurant industry which is

composed of two major segments, which are the full-service segment and the fast food

segment, is still a popular industry to establish a new business in because food items

are always necessary.

          Additionally, over the past decade a newer concept has quickly been developing

into a segment of its own which is the quick-casual segment. The quick-casual concept

is essentially a combination of the quick order and fast service of the fast-food segment

combined with some of the quality food products found in the traditional full-service

segment.2 The fast food-quick casual combination is a segment that produces over $6

billion a year in revenue and is growing in double digit percentages one year to the next.

The quick-casual as well as the more traditional fast food segment is still a growth

oriented market in the general restaurant industry and hold much promise for the

    Musser, G. “Cupcakes.” Scientific American, (2009)301/03.
    Varley, Rosemary, and David Gillooley. Retail Product Management: Buying and Merchandising.

London: Routledge, 2001.

companies and small businesses involved in it. As a new concept in the greater fast

food segment, Sensuous has found a niche market product in its mixed dessert

products focusing on the traditional American cupcake. The company has planned its

menu to include, in addition to its dessert oriented cupcakes, cookies and similar items,

a variety of other support
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