Business Plan for

The Original Chicago Bakery , Inc.

Gluten-Free Bakery
Confidential
Jane Smith
154 Main St.
Los Angeles, CA 90035
(310) xxx-xxxx
Business Plan for
The Original Chicago Bakery, Inc.
Gluten-Free Bakery
Executive u!!ary.........................................................."
#escri$tion of the Business.............................................."
Intro%uction& the nee% for a GF 'akery.............................(
)*hat+s a co-$acker,-........................................................
The GF $ro'le! / short shelf life.....................................
The solution / fro0en foo%...............................................1
The GF custo!er .............................................................1
Tra%itional GF sales venues.............................................2
3etail GF 'akeries............................................................4
5arketing strategy............................................................6
7ayout 8 o$erations $lan..................................................9
tart-u$ 'u%get..............................................................."(
Pro:ecte% inco!e............................................................".
Pro:ecte% ex$enses........................................................".
O$erating 'u%gets
Best-case....................................................................."1
3ealistic ......................................................................"4
*orst-case ................................................................."9
2
Executie su!!ary
i!e Ca"es #o$%met, &n!. (C#) is a ne'l( in!o%)o%ate*
'holesale man$+a!t$%e% o+ gl$ten-+%ee ,a"e* goo*s (,%ea*s, *esse%ts,
- sna!" +oo*s) in *o'nto'n Chi!ago, &L. .his *o!$ment o$tlines the
)lans +o% sta%t-$) an* the +i%st (ea% o+ o)e%ation, +o% a total )%o/e!te*
,$*get o+ 0200,000.
"escri#tion of the Business
State o+ Cali+o%nia Co%)o%ation 1222xxx, s$,!ha)te% S, name*
i!e Ca"es #o$%met, &n!. on J$l( 20, 2011. 500 sha%es o+ sto!" ea!h
iss$e* to the o'ne%s.
3m)lo(e% &*enti+i!ation 4$m,e% 20-530xxxx
Owner; Jane Smith
1541 #len5ille 6%i5e
Los Angeles, CA 90035
(310) 925-xxxx
Owner; Sandy Newman
1290 Main St.
(310) 925-xxxx
Accountant; James (Jim) Karp
CHARLES !LANK " KAR# LL#
Ce%ti+ie* 7$,li! A!!o$ntants
4419 8an 4$(s 9l5*., Ste. 310
She%man :a"s, CA 91403-2910
7hone; (212) 3<<-3300
=ax; (212) 3<<-3555
jkarp@cbc-cpa.com
Lawyer; $ar% !aer Es&'
3500 >. :li5e 1300
9$%,an", CA 91505
7hone; (212) 22<-<125
=ax; (212) 22<.<12?
'''.ma%",ae%es@.!om
1
Introduction$ the need for a GF %akery
At this time, the%e a%e no !omme%!ial gl$ten-+%ee ,a"e%ies in
Chi!ago, &L. .his is mainl( *$e to the !ontaminating nat$%e o+ gl$ten
an* the ne!essit( +o% *e*i!ate* +a!ilities. An* o+ !o$%se, $ntil %e!entl(,
a gl$ten-+%ee *iet 'as !onsi*e%e* highl( $n$s$al. 7e%ha)s one in +i5e
tho$san* )eo)le 'e%e *iagnose* 'ith !elia! *isease A a )otentiall(
li+e-th%eatening !on*ition t%igge%e* ,( eating gl$ten, a )%otein +o$n*
in 'heat, %(e, an* ,a%le(.
4ot an(mo%e. 4e', im)%o5e* *iagnosti! tools ha5e sho'n that in
+a!t 1 in 133 )eo)le, o% a))%oximatel( 2.25 million Ame%i!ans, ha5e
!elia! *isease, ma"ing it one o+ the most !ommon he%e*ita%(
*iso%*e%s B a,o$t )a% 'ith he%e*ita%( high !holeste%ol. 9<C o+ !elia!s
*onDt e5en %ealiEe the( ha5e the *isease, ,$t !ontin$e* ex)os$%e to
gl$ten !an lea* to othe% )%o,lems, %anging +%om an ina,ilit( to
!on!ent%ate to in+e%tilit( to intestinal l(m)homa. Celia! *isease is
@$ite the hot to)i! in the me*i!al 'o%l*.
A gl$ten-+%eeF*ai%(-+%ee *iet has also ,een in*i!ate* in the
t%eatment o+ othe% illnesses, most nota,l( a$tism - %elate* *iso%*e%s.
Some *o!to%s estimate that +o% e5e%( one )e%son 'ho has !elia!
*isease, ten othe%s 'o$l* ,ene+it +%om a gl$ten-+%ee *iet. G#l$ten-
+%eeH is the hot !ommo*it( o+ the health-+oo* 'o%l*.
=o% exam)leI 2009 %etail sales o+ gl$ten-+%ee )%o*$!ts 'e%e 0450
million. 2011 %etail sales a%e ex)e!te* to to) 0?9? million. .he ma%"et
is anti!i)ate* to g%o' at 25C ann$all( +o% the next +o$% (ea%s, to %ea!h
01.< ,illion in 2014. (Gluten-Free Foods and Beverages, 7a!"age* =a!ts, 200?.)
S$**enl(, e5e%(one 'ants to ma"e a gl$ten-+%ee )%o*$!t. An*
theo%eti!all(, e5e%(one !an B itDs not that ha%*. .he t%i!"( )a%t is
ens$%ing against gl$ten !ontamination. &n a no%mal ,a"e%( thatDs
im)ossi,le ,e!a$se the light'eight 'heat +lo$% ,e!omes ai%,o%neI it
gets e5e%('he%e, e5en into the ai% *$!ts. An* 'hile the =6A 'onDt
iss$e la,eling la's +o% #= +oo*s $ntil 2002, no one 'ants to sell a
gl$ten-+%ee )%o*$!t that might ma"e )eo)le si!".
:n the othe% han*, itDs not !ost-e++e!ti5e +o% most !om)anies to set
asi*e *e*i!ate* +a!ilities +o% the +e' )eo)le 'ho, at this moment, eat
gl$ten-+%ee. J.hin" a,o$t it; &+ 1C o+ the )o)$lation has !elia! *isease,
,$t onl( 3C o+ !elia!s ha5e ,een *iagnose* B o$% 2.25-million-
)e%son ma%"et /$st sh%an" to ??,000.)
2
So 'hat 'e ha5e a%e a +e' *e*i!ate* gl$ten-+%ee ,a"e%ies,
nation'i*e, most eithe% selling *i%e!tl( to the !ons$me% o5e% the
inte%net o% 'holesale 5ia health-+oo* o% $)s!ale g%o!e%( sto%es.
>hat 'e need is an ex)losion o+ gl$ten-+%ee o)tions to mat!h the
ex)losion o+ gl$ten-+%ee *iete%s. >e nee* a !o-)a!"e% 'ho !an
)%o5i*e the +a!ilities +o% all those !om)anies to ma"e all those #=-
)%o*$!ts.
&hat's a co-#acker(
A !o-)a!"e% is a +oo* man$+a!t$%e% 'hi!h )%o*$!es a )%o*$!t +o%
anothe% !om)an( to %esell $n*e% the se!on* !om)an(Ds ,%an* name.
Ks$all( the( )%o5i*e )%o*$!t *e5elo)ment, )%o*$!tion (,a"ing), an*
)a!"aging. >hen .%a*e% JoeDs o++e%s .JDs-,%an* items, the( a%e
,$(ing +%om anothe% man$+a!t$%e% 'ho /$st )$ts the .JDs la,el on.
.hat man$+a!t$%e% is a !o-)a!"e%. .()i!all( onl( a )e%!entage o+ the
g%oss sales !omes +%om !o-)a!"ing a%%angements, an* the
man$+a!t$%e% also sells $n*e% its o'n ,%an*.
&n a**ition to !o-)a!"ing a!ti5ities, i!e Ca"es 'ill also sell its
o'n line o+ ,%ea*s an* *esse%ts to ,a"e%ies, %esta$%ants, !ate%e%s, et!.,
th%o$gho$t So$the%n Cali+o%niaI 'holesale to health-+oo* sto%es -
s)e!ialt( F $)s!ale g%o!e%( sto%esI 'e 'ill *e5elo) ma%"ets +o%
!atalog F gi+t items, an* se!on*a%( )%o!essing (i.e., the ,%o'nie )ie!es
in So( 6eli!io$s =$*ge 9%o'nie +%oEen *esse%t)I an* *i%e!tl( to the
!ons$me% 'ith o$% online (LahooM) sto%e.
=$%the%mo%e, i!e Ca"es 'ill )%o5i*e gl$ten-+%ee s$))o%t to +oo*
se%5i!e ,$sinesses in the +o%m o+ in+o%mation, hel) *e5elo)ing gl$ten-
+%ee %e!i)es an* men$s, an* a!ting as a liaisonFma%"eting
!oo%*inato% to the #= !omm$nit( (+o% exam)le, i+ A))le,eeDs sho$l*
,e!ome o$% !$stome%, an* *o a #=-+%ien*l( men$ 'ith a )e!an )ie
+o% *esse%t, 'e 'ill ale%t the #= me*ia).
The GF #ro%le! ) short shelf life
.he ,iggest )%o,lem 'ith most #= ,a"e* goo*s is the( get stale so
@$i!"l(. &n5ento%( management an* e++i!ient *ist%i,$tion a%e the
"e(s to s$!!ess. 9$t the gl$ten-+%ee ma%"et isnDt li"e the "oshe%-+oo*s
ma%"et, +o% exam)le, 'he%e the%e is an i*enti+ia,le en!la5e, in a
%elati5el( s)e!i+i! lo!ation, 'he%e (o$ !an +in* (o$% !$stome%. #l$ten-
+%ee-*iete%s !ome in all geog%a)hi!, so!io-e!onomi!, an* ethni!
3
+la5o%s.
The solution ) fro*en food
&n the !ase o+ ,%ea*s, it is )ossi,le to )a%-,a"e the )%o*$!t an*
+lash-+%eeEe it, an* sell it 'ith the intent that it sho$l* +inish ,a"ing in
the !$stome%Ds o5en. .his is ho' La 9%ea 9a"e%( sells thei% a%tisan
loa5es nation'i*e. &t ma"es +o% a !onsistent, high-@$alit( )%o*$!t. >e
'o$l* nee* )a!"aging to )%ote!t the loa5es against !%oss-
!ontamination in the +inal o5en. (7e%ha)s something li"e the +oil ,ags
$se* +o% +%oEen ga%li! ,%ea*.)
>ith !a"es, it is inte%esting to note that (a) gl$ten-+%ee !a"es a%e
/$st as tast( as the 'heat "in* - in +a!t, (o$ *onDt 'ant gl$ten in a
!a"e. (,) #= !a"es "ee) as long as the !on5entional 5a%iet(. 4$t
to%tes, tho$gh ex)ensi5e, a!t$all( last longe% than those ma*e +%om
'heat. (Lo$ *onDt noti!e ,e!a$se most #= )%o*$!ts *onDt !ontain
)%ese%5ati5es.) =inall(, (!) it is stan*a%* ,a"e%( )%a!ti!e to +%eeEe
!a"es, sometimes +o% 'ee"s, ,e+o%e *e!o%ating.
35en tho$gh it means highe% sto%age - *ist%i,$tion !osts,
!on!ent%ating on +%oEen +oo*s, 'ith longe% li+e o+ the )%o*$!t, gi5es $s
,ette% !ont%ol o+ in5ento%(. >e !an ma"e +%oEen )%o*$!ts in la%ge%
,at!hes, 'hi!h means lo'e% !osts. An* +inall(, the @$alit( o+ the
)%o*$!t 'ill ,e +a% s$)e%io%, an* that means highe% sales.
6ist%i,$tion o+ +%esh items 'o$l* ,e limite* ,( the nee* to get the
)%o*$!t into the !ons$me%sD mo$th as soon as )ossi,le.
The GF custo!er
LetDs loo" at it +%om the othe% )e%s)e!ti5e. No' *oes the a5e%age
gl$ten-+%ee in*i5i*$al manage his sit$ationO
Sa*l( +o% $s, most a*$lts tell $s the( *onDt )$%!hase a lot o+
s)e!ialt( gl$ten-+%ee )%o*$!ts. .he( ten* to *o 'itho$t, +in*ing it
easie% on thei% 'aistlines - thei% 'allets. .he( eat )otatoes an* %i!e i+
the( 'ant !a%,s, an* nosh on !ho!olates o% so%,et.
9$t e5e%(one eats a san*'i!h o!!asionall(. :n!e a (ea%, e5e%(one
nee*s a s)e!ial *esse%t on his ,i%th*a(. An* )eo)le 'ill al'a(s !%a5e
)iEEa. So the%e is a ma%"et +o% g%o'n-$) +oo*s, 'ith a lot o+ %oom +o%
ex)ansion i+ 'e !an +ig$%e o$t 'hat )eo)le 'ant an* 'he%e the(
might ,e )e%s$a*e* to )$%!hase it.
4
#l$ten-+%ee children a%e a 'hole othe% sto%(. An a*$lt ma( not
s)en* on #=-items +o% himsel+, ,$t he 'onDt 'ant to see his !hil* *o
'itho$t. .he%e 'ill ,e ,%ea* almost e5e%( *a( +o% s!hool l$n!hes,
)a!"age* sna!" +oo*s li"e )%etEels an* shel+-sta,le !oo"ies, an*
s)e!ial t%eats li"e !$)!a"es at e5e%( )a%t( that !hil* atten*s.
Traditional GF sales enues
40C o+ the %etail sales o+ gl$ten-+%ee )%o*$!ts ha))en in health-
+oo* sto%es. (Again, Gluten-Free Foods and Beverages, 7a!"age* =a!ts, 2009.) .he
lea*e% in this +iel* is +a% an* a'a( >hole =oo*s Ma%"et. .he( ha5e
thei% o'n G#l$ten-=%ee 9a"eho$seH +o% P+%eshD )%o*$!t that is shi))e*
all a%o$n* the !o$nt%( o$t o+ 4o%th Ca%olina. &Dm s$%e it is *eli!io$s
,$t itDs not "oshe% so & 'o$l*nDt "no'. .his isnDt an Ga%!ht()i!alH
,a"e%( selling +%esh ,%ea*s an* !a"es. &tDs mo%e li"e an 3ntenmannsD.
>hate5e% the !ase, 'e !anDt o)en a gl$ten-+%ee !om)an( 'itho$t
+a!to%ing >hole =oo*s into the e@$ation. An* >hole =oo*s 'onDt
'o%" 'ith a s$))lie% thatDs not KS6A-!e%ti+ie*. >e /$st ha5e to a!!e)t
the t%o$,le - ex)ense o+ ,eing !e%ti+ie* as a !ost o+ *oing ,$siness.
(An* an('a(, it allo's $s to *o meat, an* !hi!"en-)ot-)ies.) As soon
as 'eD%e !e%ti+ie* an* %ea*(-to-go 'e m$st !onta!t them ,e!a$se o$%
+%oEen )iEEa !%$st ,lo's a'a( 'hat the( !a%%(.
& ,elie5e .%a*e% JoeDs is %ea*( to !laim a ,igge% sha%e o+ the #=
ma%"et. .hei% hea* o++i!e is in Mon%o5ia (nea% 7asa*ena A a lot !lose%
than A$stin, .exas, 'he%e >hole =oo*s is hea*@$a%te%e*) an* the(
/$st nee* a !onsistent !o-)a!"e% +o% ,asi!s li"e +%oEen ,agels - 'a++les
- !$)!a"es. Kn+o%t$natel(, one so$%!e tells $s that the(D%e not 'illing
to )a( +ai% )%i!e +o% a goo* )%o*$!t. 9$t that 'as a !o$)le o+ (ea%s ago
an* things ma( ha5e !hange*.
Anothe% o)ening is at 3%e'hon, 'he%e 'e ha5e a lea*.
35en ,ette%, +in* a *ist%i,$to% 'ho *eals 'ith health-+oo* sto%es,
an* han*les +%oEen +oo*s. #o 5isit, ta"e sam)les, an* ta"e !on+i*en!e
in the +a!t that itDs an ex!ellent )%o*$!t.
Sales to %egional health-+oo* (an* s)e!ialt(F$)s!ale) ma%"ets
means 'eDll nee* some "in* o+ *eli5e%( me!hanism. Lo$ *onDt shi)
K7S to .%a*e% JoeDs. Lo$Dll +in* )a(ments on a %e+%ige%ate* 5an,
ins$%an!e - maintenan!e, in the )%o/e!te* ,$*gets that +ollo'.

5
.he next-most-+%e@$ent 'a( gl$ten-+%ee +oo*s a%e )$%!hase* is
o5e% the )hone o% o5e% the inte%net. .he%eDs no 'a( a%o$n* this one,
eithe%I 'e m$st )%o5i*e +o% online sales. LahooM Sto%es o++e%s a
sim)le, !ost-e++e!ti5e 'a( o+ setting $) an online sto%e
('''.%i!e!a"es,a"e%(.!om) an* han*ling 8&SA t%ansa!tions.
>eD5e ,$*gete* +o% *esign on a +i5e-)age 'e,site, LahooM +ees, -
ass$me* the manage% 'ill han*le o%*e% +$l+illment to sta%t, *eli5e%ing
th%o$gh K7S.

:the% 'a(s gl$ten-+%ee +oo*s a%e t%a*itionall( )$%!hase* a%e /$st

mo%e o+ the same, %eall(. Con5entional g%o!e%( sto%es a%e in!%easingl(
!a%%(ing #= )%o*$!ts (al,eit at a highe% )%i!e than at the health-+oo*
sto%es). Some #=-online-s$)e%sto%es !a%%( a n$m,e% o+ *i++e%ent
,a"e%iesD )%o*$!ts. & ,elie5e the%e is an $nta))e* ma%"et in gi+t
!atalogs (+o% exam)le, #=-Ch%istmas +%$it!a"es an* ginge%,%ea* men,
,oth o+ 'hi!h "ee) - shi) 'ell.)
+etail gluten-free %akeries
etail ,a"e%ies an* ,a"e%(F!a+Qs a%e )o))ing $) a%o$n* the
!o$nt%(, an* at some )oint 'e sho$l* !onsi*e% a %etail o$tlet.
Chi!ago s)%a'l is a +a!to% to !onsi*e% B one mothe% o+ a !elia! !hil*
tol* me she 'o$l* *%i5e a !o$)le o+ miles to go to a #= ,a"e%(, ,$t
,e(on* that it 'o$l* ,e easie% +o% he% to o%*e% online. &tDs ,ette% +o%
o$% !$stome%s +o% $s to ,%ing the )%o*$!t !lose% to them, ,( selling to
othe% sto%es, ,a"e%ies, an* %esta$%ants.
&n the !ase o+ a ,a"e%(F!a+Q, 'e ha5e to %emem,e% that !elia!s a%e
$se* to *oing 'itho$t. athe% than al'a(s ma"e all his +%ien*s an*
%elati5es *%i5e to eat at PhisD s)e!ial #= !a+Q, itDs li"el( Joe Celia! 'ill
sometimes 'ant to go to a #=-+%ien*l( esta,lishment an* sometimes
heDll go some'he%e else an* eat a ,a"e* )otato. Joe is a!t$all( ,ette%
se%5e* ,( )%o5i*ing +o% mo%e #=-+%ien*l( %esta$%ants 'he%e he !an
t%$st the sala* *%essing an* ma(,e s)l$%ge no' an* then on a sli!e o+
!ho!olate !a"e.
,arketing strategy
6$%ing the 'ee", 'e ma%"et to othe% ,$sinesses. :n 'ee"en*s, 'e
go to !elia! s$))o%t g%o$) meetings an* gi5e sam)les o+ o$% )%o*$!ts
?
an* tal" a,o$t 'he%e it !an ,e )$%!hase*. Meeting the )eo)le, +in*ing
o$t 'hat the( 'ant an* 'he%e the( 'ant to ,$( it, is )%i!eless ma%"et
%esea%!h. An* sam)ling is the ,est a*5e%tising.
&n the same 5ein, 'e !an *ist%i,$te !o$)ons, ,oth to !ons$me%s
an* to e*ito%s o+ the #=-magaEines an* ne'slette%s. 7e%ha)s 'e !an
e5en ,a%te% +o% a*5e%tising s)a!e, "illing t'o ,i%*s 'ith one stone.
3a!h ,$siness 'ill %e@$i%e its o'n a))%oa!h. 4ot /$st ea!h t()e o+
,$siness, ,$t ea!h s)e!i+i! ,$siness. =o% exam)le; >hole =oo*s an*
.JDs a!t$all( %e@$i%e totall( *i++e%ent a))%oa!hes. .JDs 'ill li"el( nee*
a )a!"age o+ +%oEen ,agels o% )etit-+o$%s to o++e% at !om)etiti5e )%i!es.
>hole =oo*s ma( 'ant to o++e% +inishe* loa5es o+ a%tisan ,%ea*s, o%
+%esh !a"es in the sel+-se%5e ,a"e%(. >eDll ha5e to see.
.he ,%ea* an* ,$tte% o+ the ,$siness 'ill ,e the 1000Ds o+ +%oEen
*esse%ts an* %ea*(-to-,a"e ,%ea*s sol* *i%e!tl( to 100Ds o+ +oo*
se%5i!e esta,lishments. &tDs all a,o$t /$st going o$t an* ma"ing those
sales !alls. .he A$g$st %esta$%ant t%a*e !on5ention sho$l* ,e a goo*
)la!e to han* o$t ,$siness !a%*s.
A ni!e to$!h 'o$l* ,e to sen* a )%ett( ,ox 'ith a !$)!a"e an* a
!a%* to sales )%os)e!ts an* +ollo' it $) 'ith a )hone !all.
>hen 'e meet, )a%t o+ the 5isit !an ,e to ex)lain to the ,$siness
o'ne% o% !he+ a,o$t gl$ten an* ,%ainsto%m 'a(s to ,e mo%e gl$ten-
+%ee-+%ien*l(. 9( o++e%ing 5al$e +i%st, 'itho$t ex)e!tation, 'e set $) a
%elationshi) 'ith the !lient. A m$t$all( )%o+ita,le %elationshi).
9a"e%ies !an sell +%oEen ,a"e* goo*s (as S!h'a%tE 'ill *o) o%
+%oEen-)a%-,a"e* loa5es ,a"e* to o%*e% in o$% gl$ten-+%ee +oil
)a!"aging (as 9%ea*,a% might). 9a"e%ies !o$l* also s)e!ial-o%*e%
items li"e !a"es - holi*a( )ies, o% sto!" a limite* n$m,e% o+ small
!a"es 'ee"l( (o% 4-)a!"s o+ i!e* !$)!a"es) o% a sh%in"-'%a))e*,
*e!o%ate* holi*a( !oo"ie.
:the% ma%"ets a%e hotels, )a%ti!$la%l( ones that *o !on5entionsI
)la!es li"e Kni5e%sal St$*ios - 6isne(lan*I !ommissa%ies - !ate%e%s
that *o ,$siness l$n!hesI hos)itals - n$%sing homesI an* ,asi!all(
an(one 'ho +ee*s masses o+ )eo)le *ail(.
<
-ayout . O#erations
/ote that all the !a0or i!#roe!ents 12alls, #lu!%ing, heay-duty
2iring, gas, enting, and floor drain3 can go along one 2all, 2hich
2ill sae 44 on %uild-out.
.he othe% si*e o+ the ,a"e%( *oesnDt %eall( e5en nee* 'alls A
)a%titions ma*e o+ sheet metal an*Fo% 'i%e g%i*s 'o$l* 'o%" - sa5e
s)a!e - 00. =loo%s - 'alls nee* to ,e seale*. .hat si*e !an hol*
'i%ing +o% tele)hone, !om)$te% net'o%"ing, ,$%gla% ala%m an*
se!$%it( !ame%as.
1. Loa*ing *oo% A to alle( A this is main ent%an!e to ,a"e%(.
4ee*s +an a,o5e -Fo% s!%een. 7$n!h!lo!" next to the *oo%.
S)a!e +o% staging *eli5e%ies in - o$t.
2. 7%i5ate o++i!e B next to the +%ont *oo% so the manage% !an
ha5e a !lea% i*ea o+ t%a++i! in - o$t. &nsi*e a lo!"e* *oo% is a
sa+e, !he!",oo"s, an* !on+i*ential +iles. .his is 'he%e the
tele)hone h$, is, the inte%net !a,le in, an* the net'o%"ing
!a,les o$t. Also 'i%e* into !om)$te% a%e th%ee se!$%it(
!ame%as - )ossi,l( the ala%m s(stem. :++i!e so+t'a%e -
,a"e%( so+t'a%e (m$st ,e ne', o,5io$sl(.) (9$t !om)$te%s
*onDtM 9ette% an ol* 7C 'ith +ast inte%net, than 5i!e-5e%sa.)
3. Shi))ingF%e!ei5ing *es" A !o$nte% height 'F !om)$te%,
tele)hone, s)a!e +o% 7.:.Ds, %e!ei5ing s!ale on +loo%, han*
t%$!". Also )ostage s!ale, K7S ,oxes - +o%ms. 4ee*s +loo%
s)a!e +o% %a!"s.
4. 7$,li! o++i!e A *es", !hai%, !om)$te%, tele)hone, all-in-one
)%inte%Fs!anne%F+axF!o)ie%. =ilesF%e!o%*s sto%age. S)a!e
a,o5e +o% 'ate% !oole% - !o++ee ma!hine. 9a"e%s 'ill $se this
s)a!e +o% o%*e%ing, in5ento%(, an* ,%ea"-time.
5. 3m)lo(ee ,%ea" a%ea ('ith 5a, lo!"e%s) B !o$)le o+ !o$!hes,
a !o++ee ta,le, - anothe% tele)hone.
?. est %oom 11 B stan*a%* iss$e, one toilet, one sin", mi%%o%,
)a)e% to'el *is)ense% F t%ash %e!e)ta!le. =loo% *%ain. 8ent
to alle( si*e o+ ,$il*ing.
<. Maintenan!e !losetB 'ith sin", shel5ing +o% !leaning
s$))lies, hoo"s +o% mo) - ,%oom, an* sta!"e* 'ashe%F
2
*%(e% to sa5e on linen ex)enses.
2. est %oom 12 B li"e %est %oom 11, onl( )e%ha)s 'ith sho'e%
hea* ,ehin* a hal+ 'all. 8ent, +loo% *%ain, et!.
9. >al"-in +%eeEe% (<.5D x 12D)
10. >al"-in %e+%ige%ato% (<.5D x 12D). ese%5e s)a!e +o% %a!".
11. 7a!"aging !ente% B !a"e ,oxes 'ith tam)e%-e5i*ent seal
(i.e, Gsa+e-t-ga%*H at '''.inline)lasti!s.!omFne's.)h))I
)lasti! ,ags 'ith Ginnoseale%H ('''.innoseal.!om). 4ot so
high-te!h ,$t e++e!ti5e. Sh%in"-'%a)-seale% an* +ilm,
,oxes. 10D 'o%" !o$nte%, 'ith stool, an* s)a!e +o% %a!"s.
A!!ess to +%eeEe%. :,5io$sl( )a!"aging ta"es )la!e he%e,
an* also in5ento%( management.
12.6e!o%ating !ente% A *e!o%ating ma!hine, t%a*itional )ast%(
,ags, asso%tment o+ ti)s. 10D 'o%",en!h, 'ith stool,
tele)hone, s)a!e +o% )ae%'o%". Lots - lots o+ sto%age,
shel5es, little !$,,ies - ,oxes. (One day with own hot-top
burner, microwave, small mixer &/or reach-in ridge! to
ta"e pressure o main wor" centers#$ A!!ess to ,oth
+%eeEe% an* %e+%ige%ato%.
13.6%( sto%age B Se5en 5D-long 'i%e shel5ing $nits, 2<H *ee).
7lasti! sto%age ,ins. Ste) la**e%.
14.6ish'ashing a%ea B 9a"e%(-siEe* 3-*%o) sin". #a%,age -
%e!(!ling !ente%. One day a rac" dishwashing machine (a
whole rac" o pans could be wheeled into it$ but
otherwise, a pan-type dishwashing machine#
15.S!aling !ente% B,ins, s!oo)s. 2D 'o%",en!h. 9a"e%Ds s!ale.
Shel5ing a,o5e 'ith smalle% ,ins. A!!ess to sin" a!%oss
Ghall,H *%( sto%age, - !oole%.
1?.Mixing !ente% B No,a%t, ?0 @t., 'ith atta!hments - ext%a
,o'ls. One day % a bowl liter on wheels (can ta"e bowls
to extruders$#
9
1<. Coo"ing a%ea B )%e) sin" 'ith *%ain, <D stainless !o$nte%,
!om,ination %ange-t()e o5en - ?-,$%ne% !oo"to), steam
"ettle (*o$,le, i+ )ossi,le, to $se one +o% !hi!"en )ot )ies),
an* se)a%ate ,agel "ettle (*i++e%ent animal). Mi!%o'a5e,
"ni5es, !$tting ,oa%*s, +oo* )%o!esso%, meas$%ing tools,
)ots, 'his"s, !olan*e%s. Ne%eDs 'he%e )ie +illings, !$sta%*s,
!%eam +%ostings, et!., a%e ,o%n. 9o'l-li+te% sho$l* ,e a,le
to a!!ess steam "ettles.
12. >o%" a%ea 11 B 12D 'o%",en!h, 'et glo) ext%$*e% (all-
)$%)ose, a*/$sta,le o$t)$t), all 'o%" tools, )ins, )ans, )ie-
)%ess, s)a!e +o% %a!"s.
19.>o%" a%ea 12 B simila%l( o$t+itte* to 11, ,$t mo%e +o%
,%ea*-ma"ing, an* less +o% !a"es, *$e to )%oximit( to
o5ens.
20. Single (one *a( a *o$,le) %e5ol5ing %a!" o5en, )%oo+ ,ox,
an* %otating 24-)an o5en A one o+ the ne'e%, smalle%
mo*els. .his !om,ination )%o5i*es the most +lexi,ilit( +o%
*i++e%ent )%o*$!ts, 'ith ex!ellent s)a!e, +$el, an* la,o%
e++i!ien!(. K)g%a*es a%e a5aila,le, s$!h as an o5en-loa*e%
+o% the )an o5en. 8entilation !an go st%aight th%o$gh the
!eiling - %oo+. Mason-,lo!" !onst%$!tion is )%e+e%%e* +o%
ins$%an!e %easons, an* o5ens !an ,e )la!e* !lose% to 'all .
21.3me%gen!( exit to st%eet. 7ossi,le mail *eli5e%(. 6oo%
sho$l* ,e ala%me*, 'ith metal s!%een *oo% +o% 5entilation
an* se!$%it(. =an a,o5e *oo% +o% ,$gs.
22. >in*o' !o$l* ,e +%oste* +o% )%i5a!(, ,$t sho$l* ha5e sign
+a!ing st%eet. =%ee a* s)a!e, ,a,(.
10
5tart-u# %udget
Lease (1
st
- last monthDs %ent) 010,000
#et 3 monthDs %ent a,atement , an* 'o%" o$t !ontingen!( +o%
'aiting +o% health *e)t. )e%mits. Sometimes ta"es as m$!h as ?
monthsM (6o it %ight the +i%st time, ,$t allo' ? months, in !ase.
A t%( to negotiate *e+e%%e* %entM)
Const%$!tion; 020,000
3@$i)ment ($se*, goo* @$alit() ?0,000
Sala%ies *$%ing ,$il*-o$t 15,000
Legal (&n!o%)o%ation, state +o%ms, 3&4 n$m,e%) 1,500
A!!o$nting, tax )%e). 1,500
#%a)hi!s - Ma%"eting Mate%ials 3,000
Co%)o%ate i*entit(, ,$siness !a%*,
'e,site *esign, some )a!"aging *esign,
signage o$tsi*e ,$il*ing, 7:7 signs
9eginning &n5ento%( 2,000
SK9-.:.AL 0113,000
Contingen!( 012,000
(O(AL S(AR()*# +,-.///
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Inco!e Pro0ections
&*eall( ,( the time 'e o)en 'e sho$l* ha5e soli* !ont%a!ts 'ith a
+e' mi*-siEe* ,$(e%s li"e S!h'a%tE 9a"e%( an* the 9%ea*,a% ('ho
might e5ent$all( %$n as m$!h as 01000Fmonth ea!h), an* one ,ig
,$(e% li"e Co++ee 9ean ('ho, on!e the( sell i!e Ca"es a!%oss &llinois,
might *o 0<50Fday o% o5e% 020,000Fmonth). & thin" la%ge% sto%es
li"e >hole =oo*s o% .JDs a%e going to 'ant to see $s o)en an*
+$l+illing o%*e%s ,e+o%e ,$(ing +%om $s, ,$t that as)e!t o+ the ,$siness
might e5ent$all( ,%ing in 050,000 )e% month.
Kltimatel( 'e !o$l* *o 0125,000 a month in 2000 s@$a%e +eet.
Sin!e 'e a%e a ne' !om)an(, it is im)o%tant not to g%o' too +ast
an* ta"e on mo%e !ont%a!ts than 'e !an han*le. .he )%o/e!tions
%e+le!t a slo' an* stea*( g%o'th 'itho$t s$**en s)i"es that 'ill
!%eate ha5o! 'ith o$% 'o%"loa*.
>e thin" 'e !an %ea!h ,%ea"-e5en )oint ,e+o%e the en* o+ (ea%
one, an* ,egin )a(ing o++ sta%t-$) !osts ,( the en* o+ (ea% t'o.
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Pro0ected Ex#enses
Cost o0 1ood So2d3 &n*$st%( stan*a%* is 33C. .his in!l$*es )a!"aging. &n
gene%al 'holesale%s o)e%ate on smalle% ma%gins ,$t ma"e it $) in 5ol$me,
,$t o$%s is a s)e!ialt( )%o*$!t an* !omman*s highe% )%i!e. i!e - othe%
gl$ten-+%ee +lo$%s ha5e high !ost !om)a%e* to 'heat 5a%ieties (a5e%age
G5ol$meH )%i!e is 01Fl,., !om)a%e* to )ennies +o% 'heat +lo$%) an* 'eDll ha5e
to see 'hat the ma%"et 'ill ,ea%.
#ayro223 &n*$st%( stan*a%* is /$st $n*e% 25C. #l$ten-+%ee ,atte%s an* *o$ghs
ha5e a *i++e%ent !onsisten!( than %eg$la% )%o*$!ts, an* %e@$i%e s)e!ial
han*ling an* *i++e%ent e@$i)ment. :n!e 'eD%e o)e%ating at +$ll !a)a!it(, 'eDll
,e a,le to sti!" to 25C ,$t onl( ,e!a$se 'e a%e !ha%ging mo%e +o% the )%o*$!t
to ,egin 'ith (to maintain 33C +oo* !ost).
$isc' Ser4ices3 .his in!l$*es ongoing monthl( a!!o$nting - legal +ees,
/anito%ial, e@$i)ment maintenan!e, exte%minato%, an* g%a)hi! *esignI et!.
Rent3 2000 s@$a%e +eet at 02 )e% s@$a%e +oot, )l$s t%i)le net. No)e+$ll( it 'ill
,e less than the 05,000 ,$*gete* +o%.
Supp2ies3 &n!l$*es !leaning - maintenan!e s$))lies, small e@$i)ment, o++i!e
s$))lies (in!l$*ing !o++ee +o% the sta++M) - statione%(.
5e6t Ser4ice3 Ass$ming inte%est onl(, at +i%st, on 0120,000 loan. 7a(ments
to )%in!i)al 'ill ,egin 'hen 'e !an a++o%* to *o so.
Ad4ertisin73 Set at 01000Fmonth $ntil 050,000Fmonth sales, then 2C o+
in!ome. Ma%"eting )lan is in an a))en*ix, ,$t to s$m; ,$l" o+ this mone( 'ill
,e s)ent going to gl$ten-+%ee s$))o%t g%o$)s an* sam)ling )%o*$!ts, an* to
)a( +o% )oint-o+-)$%!hase ma%"eting (li"e G:%*e% (o$% gl$ten-+%ee ,i%th*a(
!a"e he%eMH signs.) As ,$*get in!%eases, it ma( ,e 'o%th'hile to sha%e !osts o+
a*5e%tising 'ith o$% !$stome%s (Gi!e Ca"es, a5aila,le at these +ine sto%es.
RH) ,$t +i%st 'eDll ex)lo%e o)tions +o% +%ee )$,li!it(.
8nsurance; &n!l$*es not onl( +i%e - lia,ilit( ,$t also 5ehi!le ins$%an!e an*
'o%"e%Ds !om)ensation. 35ent$all( 'eDll ha5e to o++e% health ins$%an!e
o)tions +o% "e( em)lo(ees.
*ti2ities Linen " (rash Remo4a23 All +ai%l( st%aight+o%'a%*. >e 'ill
sa5e 00 ,( *oing o$% o'n linen.
13