January 2005

36 Pages·2015·0.18 MB·English

January 2005
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Table of Contents
1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Goals and Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Mission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.3 Keys to Success. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.1 Company Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.0 Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.1 Product and ServiceDescription. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.2 CompetitiveComparison. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.3 Future Productsand Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.1 Market Segmentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.2 Target Market SegmentStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.2.1 Market Trends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.2.2 Market Needs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.3 ServiceBusinessAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.3.1 Competitionand BuyingPatterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.1 CompetitiveEdge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.2 MarketingStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.3 SalesStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.4 StrategicAlliances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.5 SalesForecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.6 Milestones. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
6.0 Web Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.1 WebsiteMarketingStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.2 DevelopmentRequirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.1 PersonnelPlan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
8.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
8.1 Break-even Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
8.2 ProjectedProfit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
8.3 ProjectedCash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
8.4 ProjectedBalance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
8.5 BusinessRatios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
9.0 Exit Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Sarrica's Market
1.0 Executive Summary
Sarrica's Market is a new businesslocatedin downtownMoab, Utah. The store is an upscale
internationalgrocery and delicatessenwith a distinctmenu that includesauthentic,hard to
find ingredientsfrom around the countryand the world.The facilitywillincludea sixteen
person capacity eatingarea, deli/kitchenwith counterand check out area, grocery/giftarea,
and a publicrestroom.
The missionof Sarrica's Market is to provideMoab, Utah's residentsand visitorswitha
combinationof quality,authentic,hard to find,grocery items and prepared foods,with good
serviceand a pleasantatmospherewith the warm feelof an Old-Worldoutdoor market. Our
store motto is, "eat and enjoy."
The deliwillserve sandwiches,salads,specialtydrinks,and picniclunches.Gift items will
complementthe internationaltheme of the store and includea limitedselectionof kitchen
wares, cookbooks,picnicitems,and originalhand-sewnitems and jewelry.Gift baskets will
also be availablein the store and over the internet. All the recipesused in the deliwill
highlightthe grocery items soldin the market.
The gourmetand specialtyfoods market is boomingacross the country.Consumersare
lookingfor qualityfood coupledwith a qualityshoppingexperience.Many large citieshave
have entiresectionsdedicatedto ethnicfoods and culture.As rural America moves away from
agricultureand naturalresources,and towards tourismas its main economysource,more and
more peopleare flockingto areas such as Moab. These new populationsare starved for the
fine ingredientsthey were able to purchasein bigcitiesand are lookingfor a rural solutionto
this problem.Moab's residentsand many visitorshave expressedthe desirefor a local
gourmet food store.
By makingallianceswith localfarmers and restaurants,as wellas internationaldistributors,
Sarrica's Market willgivecustomersa combinationof "shoppinglocal"and widegourmet
selectionpreviouslyunavailablein this highlyvisitedrural area. For residents,Sarrica's offers a
more convenientand appealingoptionthan orderingonlineor luggingfancy groceriesback
from infrequenttrips to the nearest cities(several hours away), especiallyin winter.
Sarrica's projectsnet profitsof $7,131in the first year, increasingto $27,270by year 3. The
increasingprofitabilityis partly basedon expectationsthat wide seasonaldifferencesin sales
levelsin the first year willmoderate as we strengthenour localclientelebase. These forecasts
are based on the recent performanceof similarcross-market upscalestores in Moab, and
generaltrends inthe gourmetfood stores industry.
To achieveour objectives,the owners of Sarrica's Market are contributing$24,000and
seekinga $100,000smallbusinessloan. These loans willbe used for start-up costs and will be
paidback from the cash flowof the businesswithinfiveyears.
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Sarrica's Market
Highlights
$600,000
$500,000
$400,000
Sales
$300,000 Gross Margin
Net Profit
$200,000
$100,000
$0
2005 2006 2007
1.1 Goals and Objectives
Sarrica's Market has the followinggoalsand objectives:
1. Obtain necessaryfunding($24,000in investor/personalloans and $100,000in small
businessadministrationloans).
2. Create a service-basedcompanythat exceedscustomers'expectations,and increases
the number of repeat clientsservicedby at least 20% per year, through superior
performanceand word-of-mouthreferrals.
3. Become an establishedcommunitydestinationwith a customersatisfactionrate of 90%
by the end of the first year.
4. Achievecash flowself-sufficiencyby the end of the first year.
5. Salesof $461,900in the first year, with salesincreasingto $484,735in the second
year and $508,000in the third year.
6. Providean incomefor the foundersby the end of the second year with incomegrowth
possibilities.
7. Repay debt from originalfinancingby the end of the fifthyear.
1.2 Mission
The missionof Sarrica's Market is to provideMoab, Utah's residentsand visitorswithan
upscalegrocery store,gift shop,and delicatessenspecializingina combinationof quality,
authentic,hard to find,grocery items from around the world.
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Sarrica's Market
1.3 Keys to Success
The keys to successfor Sarrica's Market include:
• Reputation: Every customer visitingour store willwant to return and willrecommend
us to their friendsand family.Word of mouth marketingwillbe a powerfulallyfor our
business.
• Superior Customer Service: Knowledgeable,friendlyservicewillbe of the utmost
importance.
• Location: Providean easilyaccessiblelocationfor customer convenience,including
walk-by and drive-bytraffic.
• Product/Environment: Offer a variety of highqualityfoods with domesticand
internationalthemes,sold at a fair pricein a clean,authentic,comfortableenvironment.
• Convenience: Our customerswillknow that they can get what they need at our
market for a fair price.This willreducetheir need to travel to get desireditems or
order them online.
2.0 CompanySummary
Sarrica's Market is a new businesslocatedin downtownMoab, Utah on Main Street.The store
is an upscaleinternationalgrocery and delicatessen,with a distinctmenu that includes
authentic,hard-to-findingredientsfrom aroundthe countryand the world.The facilitywill
includea sixteenperson capacity eatingarea, deli/kitchenwith counter& check out area,
grocery/giftarea, and a unisexpublicrestroom.
The missionof Sarrica's Market is to provideMoab, Utah's residentsand visitorswithan
upscalegrocery store,gift shop,and delicatessenspecializingina combinationof quality,
authentic,hard-to-findgrocery items from around the world.Our store motto is, "eat and
enjoy," and our decor depictsthe warm feelof an old worldoutdoor market.
The deliwillserve sandwiches,salads,specialitydrinks,and picniclunches. Gift items will
complementthe internationaltheme of the store and includea limitedselectionof kitchen
wares, cookbooks,picnicitems,and originalsewn items and jewelry. Gift basketswillalso be
availablein the store and over the internet. Allthe recipesused in the deliwillhighlightthe
grocery items soldin the market.
2.1 CompanyOwnership
Sarrica's Market is a LimitedLiabilityCompany owned and operated by the foundersAndy
Boone, Cathy O'Connor, RosieO'Connor, and KennyVanStone. It willbe registeredwiththe
country as Sarrica's Market.
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Sarrica's Market
2.2 Start-up Summary
Start-up costs and initialfinancingare shown in the followingtable. The foundersare seeking
a smallbusinessloan in the amount of $100,000to supplementownerinvestmentin covering
these costs. The estimatedstart-up costs may be lower than projectedhere if the owners are
able to purchaseused equipmentand do the renovationlabor themselves.
We plan on a three month start-up period.Expensesare brokendown as follows:
• Insurance@$300/month
• Rent @$2,500/month
• InitialLoan Repayment@$1,000/month
• Utilities@ $1,000/month
• Salaries:2 managers @$2,000/montheach
Long-termAssets:
• RefrigerationUnits
• DisplayCabinets
• KitchenEquipment
Short-term Assets:
• Tablesand Chairs
Table: Start-up
Start-up
Requirements
Start-upExpenses
Legal $500
Books/Accounting $600
Marketing/Website $5,000
Licenses/Permits $1,000
Delivery/Transportation $1,500
Insurance $900
Rent $7,500
LoanPayment $3,000
Utilities $3,000
Deposits $500
ExpensedEquipment $5,000
BuildingRenovatons $20,000
Salaries $12,000
PayrollTaxes $1,800
Other $1,000
TotalStart-upExpenses $63,300
Start-upAssets
CashRequired $15,700
Start-upInventory $20,000
OtherCurrentAssets $5,000
Long-termAssets $20,000
TotalAssets $60,700
TotalRequirements $124,000
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Sarrica's Market
Table: Start-upFunding
Start-upFunding
Start-upExpensestoFund $63,300
Start-upAssetstoFund $60,700
TotalFundingRequired $124,000
Assets
Non-cashAssetsfromStart-up $45,000
CashRequirementsfromStart-up $15,700
AdditionalCashRaised $0
CashBalanceonStartingDate $15,700
TotalAssets $60,700
LiabilitiesandCapital
Liabilities
CurrentBorrowing $0
Long-termLiabilities $100,000
AccountsPayable(OutstandingBills) $0
OtherCurrentLiabilities $0
TotalLiabilities $100,000
Capital
PlannedInvestment
AndyandCathy $12,000
RosieandKenny $12,000
Other $0
AdditionalInvestmentRequirement $0
TotalPlannedInvestment $24,000
LossatStart-up(Start-upExpenses) ($63,300)
TotalCapital ($39,300)
TotalCapitalandLiabilities $60,700
TotalFunding $124,000
Start-up
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Expenses Assets Investment Loans
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Sarrica's Market
3.0 Products and Services
Sarrica's Market offers the followingproducts and services:
Groceries
We willoffer highqualitygroceriesfrom Italy, the Mediterranean,Mexico,Asia,Europe,
Australia,and the UnitedStates (Wisconsin,the Southwest,and locally). Grocerieswillinclude
items that represent the best known and desiredfoods from these areas. Items willincludebut
willnot be limitedto: sauces,oils,spices,spreads,peppers,cheese,meats, pasta, rice,
canned goods,drinks,chocolates,and hard-to-finddessertsand candies. A selectionof frozen
meals (made in the store)willbe availablefor home cooking,and willincludeitems such as
homemadeItalianmeatballs& sausage,pizza, and "holiday"tamales.
Gifts
Gift itemswillcomplementthe internationaltheme of the store and includea limitedselection
of kitchenwares,cookbooks,picnicitems,and originalsewn items and jewelry.Gift baskets
willalso be availablein the store and over the internet.
Delicatessen
Sarrica's Market willoffer uniquecuisinewith an internationalflair. The deliwilloffer a limited
menu for breakfast,lunch,and dinner.The rotating menuwillfeature sandwiches,soups,
salads,drinks,and desserts.All menu itemswillbe preparedfresh each morningand displayed
for easy pick-up.We willoffer picniclunchesand frozen meals as wellas cheese,meats, and
ethnicdelisalads by the pound.
The breakfastmenu willincludeitems such as quiche,scones,and biscotti,and the
lunch/dinnermenu willconsistof sandwiches,salads,homemadebreads, frozen meals,and
dailyspecials.
We willserve highqualitycoffee,tea, juice,and soda from around the world through out the
day.
Picnicluncheswillbe made availableto visitors,speciallypackedto be carried into the
numerous nationalparks and outdoor venues surroundingMoab. We willalso make this
serviceavailableto the many outdoor guidingservicesin Moab. Thesebusinessesinclude
climbing,hiking,mountain biking,river rafting,and jeep touringcompanies.
3.1 Product and Service Description
The startingmenu willincludeitems such as:
Breakfast:
• Quiche - Made with fresh ingredientsand cheesefeaturedin the market
• Fresh Bread - Crusty Italian,wheat, and pumpernickel
• Scones/Muffins/Biscotti - Internationalrecipes
• Coffee, Tea, and Juice - From aroundthe world
Lunch/Dinner:
• Roast Beef - With sharp provolonecheese,red onion,lettuce,& tomato on dark rye
bread
• Corned Beef/Pastrami- With Wisconsinswisscheese,red onion,shreddedred
cabbage and Russiandressingon rye bread
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Sarrica's Market
• Turkey - With sharp Wisconsincheddarcheese,lettuce& tomato on French bread
• Smoked Turkey - With Havarti cheese,avocado, sprouts,cucumber,lettuce& tomato
on multigrain bread
• The Boonero - DailySpecial
• The Day After Thanksgiving - Turkey, herb stuffing,lettuce& cranberrieson a
potato bread roll
• The O'Connor - Turkey, Genoa salami,bacon, sharp Wisconsincheddar cheese,
lettuce& tomato on Italianbread
• The BLT - Bacon, sharp provolonecheese,lettuce& tomato on Italianbread
• Veggie Deluxe - Avocado,cucumber,sprouts, lettuce,tomato, red onion& sharp
Wisconsincheddar cheeseservedon multigrain bread
• Italian Veggie Deluxe - MarinatedItalianvegetables,artichokehearts, olives,red
onion,& fresh mozzarellacheeseon Italianbread
• Tomato with Fresh Mozzarella & Basil - On foccaciabread
• Grandma Sarrica's Market Pizza - Made fresh and soldby the slice
• Bruschetta - Toppedwith ripe tomatoes, fresh basil,olives,& grated Italiancheese)
• Fresh Gaspacho - Ripetomatoes, sweet whiteonions,jicama,cilantro,fresh
jalapenos,and lime juicechoppedand mixedfor a truly refreshingtaste.
• Eggplant Chickpea Pesto - A deliciouscombinationof baba ganoushand hummus
served with pita wedges
• Seven Layer Bean Dip - Refriedblack beans, tomatoes,corn, onion,mixedfresh,
cilantro,and authenticmexicancheese. Served with sour cream, your choiceof hot
sauce, and corn chipsfor dipping
• Organic Soups - Made fresh
• Chili - Homemadeusingonly the best ingredients
• Chips - A widevariety of specialityflavors
* Giardiniera is always available as a side dish to add a little spice to your sandwich.
Salads:
• Caesar Salad - Homemadedressingwith bacon, croutons,and importedparmesan
cheese.
• Greek Salad - Lightairy and zesty Rotelopasta tossed with tomatoes,spinach,
cucumbers,red onion,feta cheese,and Greek olives.
• Italian Salad - Ripetomatoes, cucumbers,fresh basil,and balsamicvinegarmixedto
perfection.
• Tomato, Basil, & Fresh Mozzarella Salad - Tossed in a lightoliveoil and balsamic
vinegardressing.
• Fresh Herb Salad - Springgreens mixedwith dill,cilantro,basiland Italianparsley for
a delightfullyfresh taste.
• Pasta Salad of the Day - Alwaysfresh and tasty.
Drinks/Ice:
• Juice - High qualityflavorsfrom around the world
• Soft Drinks - Allnatural
• Coffee - International& organicchoices
• Tea - Highqualityflavors from aroundthe world
Frozen Dinners:
Sarrica's Market willcarry a varietyof hard to findfrozen food items. Many of our frozen
meals willbe preparedat Sarrica'sMarket and followrecipesthat highlightitems we sellin the
grocery and deli.
• Grandma Sarrica's Market Pizza
• Meatballs& Sausagewith Marinara Sauce
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