ONE GOOD COOKIE

A Final Business Plan

Presented to Professor Hal Lefkowitz

School of Business and Management

National University

In Partial Fulfillment

of the Requirements for MGT 610C and the Degree

Master of Business Administration

by

Virginia C. Hire Damrauer

September 2010
 Copyright 2010

Virginia C. Hire Damrauer

ALL RIGHTS RESERVED

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 Executive Summary

When I was traveling for work, it struck me that the interesting places were *not* the chains I

find at home, it was the unique experiences that I was craving. Not a franchise, and not an internet

thing, just a face-to-face unique experience kind of place.

One Good Cookie is a sole proprietorship business with the vision of providing “One Good

Cookie at a Fair Price.” Our slogan is “One Good Cookie Deserves Another! TM” and our mission is

“To make unique, creative, high quality cookies and provide them locally at a fair price in a single-

store cookie shop.” Our values are community, quality ingredients, and fair prices.

Our financial objectives are to achieve an average sales transaction of $4.50 per customer by the

end of the first year and to increase the first year profit by 5% in the second year of business. The top

local competitors are profitable with revenues of over $500,000 per year (Manta.com, 2010b, 2010d)

and are sustainable as most have been in business for 15 years or more (Manta.com, 2010a, 2010b,

2010d). Financial projections show that the business will have positive cash flow in the first month of

operations as 34% of revenue generated. Start up expense will be $22,605 with a net profit in the first

year of just over $75,000.

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 Table of Contents
EXECUTIVE SUMMARY______________________________________________________________III
TABLE OF CONTENTS_______________________________________________________________IV
SITUATIONAL ANALYSIS______________________________________________________________1
MARKET RESEARCH_________________________________________________________________2
Secondary Research Information___________________________________________2
Demographics._____________________________________________________________________2
Industry Trends.____________________________________________________________________3
Supply Sources.____________________________________________________________________4
Industry Information Sources._________________________________________________________4
Competitive Intelligence___________________________________________________4
Strengths and Weaknesses.___________________________________________________________9
Opportunities._____________________________________________________________________10
Threats.__________________________________________________________________________11
The Marketing Mix______________________________________________________11
Summary______________________________________________________________12
Quantitative Market Research____________________________________________13
Sampling Methodology & Sample Size._________________________________________________13
Target Respondent Profile.___________________________________________________________13
Questionnaire.____________________________________________________________________14
Primary Research Analysis of Quantitative and Data__________________________14
Survey Data.______________________________________________________________________14
Research Conclusions____________________________________________________26
MARKETING PLAN__________________________________________________________________28
Vision_________________________________________________________________28
Slogan_________________________________________________________________28
Mission Statement_______________________________________________________28
Values_________________________________________________________________28
Objectives______________________________________________________________28
The Target Customer____________________________________________________28
The Marketing Mix______________________________________________________29
Product.__________________________________________________________________________30
Price.____________________________________________________________________________31
Place.____________________________________________________________________________31
Promotion._______________________________________________________________________31
Branding______________________________________________________________32
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Advertising_____________________________________________________________32
Customer Service and Suggestive Selling____________________________________32
Uncontrollable Variables_________________________________________________33
Conclusion_____________________________________________________________33
FINANCIAL PLAN____________________________________________________________________34
Narrative Introduction___________________________________________________34
Financial Objectives_____________________________________________________34
Revenue Forecast_______________________________________________________34
Pro Forma Cash Flow Analysis____________________________________________36
Pro Forma Income Analysis_______________________________________________39
Pro Forma Balance Sheet_________________________________________________40
Schedule of Estimated Start-Up Expenses___________________________________40
Furniture ($900).__________________________________________________________________41
Fixtures ($2,000).__________________________________________________________________41
Kitchen Equipment ($4,380)._________________________________________________________41
Tenant Improvements ($2,000)._______________________________________________________42
Signs ($8,600).____________________________________________________________________42
Business Computer Equipment ($620)._________________________________________________42
Leased Space ($1,200).______________________________________________________________42
Restaurant Supplies ($1,100).________________________________________________________42
Office Supplies ($400).______________________________________________________________43
Kitchen Dishes ($150).______________________________________________________________43
Kitchen Utensils ($150)._____________________________________________________________43
Printing Services ($625).____________________________________________________________43
Licenses & Permits ($630).__________________________________________________________43
Plan for Financing the Business____________________________________________44
Narrative Conclusions___________________________________________________45
OPERATIONS PLAN__________________________________________________________________46
Legal Form of Business__________________________________________________46
Staffing Plan___________________________________________________________46
Training and Motivation.____________________________________________________________46
Organizational Chart.______________________________________________________________46
Risk Management_______________________________________________________47
Insurance.________________________________________________________________________47
Contractual____________________________________________________________47

5
Other Needs____________________________________________________________48
Research & Development.___________________________________________________________48
Supply Chain._____________________________________________________________________48
Production Procedures._____________________________________________________________48
Service Procedures.________________________________________________________________48
Implementation Plan____________________________________________________48
CONCLUSION AND STATEMENT OF VIABILITY________________________________________50
APPENDIX A – RESUMES_____________________________________________________________53
APPENDIX B – SURVEY QUESTIONS__________________________________________________56

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 List of Tables and Exhibit
Figure 1. Working population by zip code.......................................................................................2
Figure 2. The majority of the cookie manufacturing industry in California...................................3
Figure 3. Survey question 1..........................................................................................................15
Figure 4. Survey question 2..........................................................................................................16
Figure 5. Survey question 3..........................................................................................................17
Figure 6. Survey question 4..........................................................................................................18
Figure 7. Survey question 5..........................................................................................................19
Figure 8. Survey question 6..........................................................................................................20
Figure 9. Survey question 7..........................................................................................................21
Figure 10. Survey question 8........................................................................................................22
Figure 11. Survey question 9........................................................................................................25
Figure 12. Survey question 10.....................................................................................................26
Figure 13. Organizational Chart....................................................................................................47
Y

Table 1. Competitive Intelligence about Financials and Employment............................................5

Table 2. Competitive Intelligence about Product.............................................................................6
Table 3. Competitive Intelligence about Price.................................................................................7
Table 4. Competitive Intelligence about Promotion........................................................................7
Table 5. Competitive Intelligence about Place................................................................................8
Table 6. Summary of competitive intelligence findings...............................................................12
Table 7. Secondary research indicates ideal characteristics for a local cookie company.............30
Table 8. Sales per month as a percentage of total annual sales....................................................36
Table 9. Adoption curve applied to start up revenue projection...................................................36
Table 10. Cost per Cookie Calculation.........................................................................................37
Table 11. Simple Pro-Forma Cash Flow Analysis........................................................................38
Table 12. Pro Forma Income Statement........................................................................................39
Table 13. Pro Forma Balance Sheet..............................................................................................40
Table 14. Start Up Expenses.........................................................................................................44
Table 15. Implementation Schedule..............................................................................................49

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Situational Analysis

My vision is for a one-location cookie shop in the San Diego area. When I was traveling

for work, it struck me that the interesting places were *not* the chains I find at home, it was the

unique experiences that I was craving. Not a franchise, and not an internet thing, just a face-to-

face unique experience kind of place. Location will be critical, but I'm looking at more of a

grass-roots type thing, very local, very old-fashioned.

The focus is strictly cookies - do one thing and do it well. There are tons of exceptional

'bakeries' here in San Diego (with French trained culinary wizards at the helm) and I do not want

to put myself in their niche. I'm looking for that little, local, comfy, home-made,

grassroots feeling. More along the lines of "the Livingroom" but not a coffee shop. I don't want

it to be about beverages, and I thought about this a lot, there are too many of those out there

already. I really want to keep it simple and focus on this niche where I can excel. Nothing too

corporate, I’d like to keep it smaller and more quaint. Just a little local hole-in-the-wall (in a

cute and clean way) best-kept-secret-that-is-not-a-secret type of thing.

My desired endpoint is to have a complete business plan in place that will show me what

I need to do (operationally) and how much money I will need (financially) to actually get this

business started within 12-18 months. As a result of this business plan, “I will understand the

market, financial commitment, profit potential, and other aspects of the business and establish its

viability" (Lefkowitz, 2010).

The company will begin as a sole proprietorship. The distinctive core competencies are

that my husband is a cook and is in Culinary School, I am finishing my Master of Business

Administration, and I have unique family recipes to offer.

 Market Research

Market research includes secondary and primary research on available information for

single-location fresh cookie stores in San Diego County.

Secondary Research Information

Secondary research methods were used to find business information about target

customers, product and current industry trends, sources of supply and competitive intelligence.

Demographics.

Demographic information was gathered from the US Census Bureau website from the

year 2000 Census results for the zip codes 92123 and 92124 which are potential store locations.

In each of these communities gender is balanced 50/50. The total population of working people

ages 16 and over is distributed as shown by zip code in Figure 1.

In labor force (age 16+)

92123
92124
92123; 13,487; 45.74%
92124; 16,002; 54.26%

Figure 1. Working population by zip code.

 Industry Trends.

NAICS code 311821 corresponds to the “Cookie and Cracker Manufacturing” industry.

Data was gathered from the Economic Census of 2007, which indicates that there are 56

establishments in California for this industry. Of these 56 establishments, 43% are in the Los

Angeles-Long Beach-Riverside combined statistical area, and 13% are in the Santa Ana-

Anaheim-Irvine combined statistical area (Orange County). This means that at least 56% of

these establishments are nearby in Southern California, but there is no specific census line for the

San Diego County area for this industry code. There may be a strong market opportunity here.

California Industry 311821 Overview

Other
Other; 45%; 44.36% Southern California
Southern California; 56%; 55.64%

Figure 2. The majority of the cookie manufacturing industry in California

 Supply Sources.

Restaurant supplies in San Diego are mostly ordered from Sysco Corporation

(www.sysco.com ). Some entrepreneurs also shop at Costco for Wholesale prices on bulk items

(www.costco.com). Both companies offer delivery service to business locations.

Industry Information Sources.

This industry poses challenges in that some cookie stores have categorized themselves as

bakeries or snack bars rather than as cookie manufacturers. Additionally, these are small private

companies, therefore there is not a lot of information available about their finances or

production. Informal yet valuable sources of information included Manta.com and Yelp.com,

and official information sources included the City of San Diego Business License database and

each company’s own website.

Competitive Intelligence

Product sales information is private, and these are all privately owned small companies.

According to Manta.com, the City of San Diego, and Yelp.com, each company has the following

financial and employment characteristics:

 UNCLE BIFF'S SEAPORT COOKIE CO. THE CRAVORY GIRARD GOURMET

Location Type Single Location Single Location Farmers markets Single Location
$500,000 to $1
Annual Sales (Est.) Less than $500,000 $500,000 to $1 million Unknown million

Employees (Est.) 1 to 4 (D&B: 2) 5 to 9 (D&B: 30) Unknown 5 to 9

722213, Snack &

Nonalcoholic 445299, All Other Food stands, 311811, Retail
NAICS code Beverage Bars Specialty Food Stores desserts Bakeries

Since 3/1/1993 Unknown – est. Since 8/1/1987

Years in Business 18 years 17 years 2009 23 years
Derek Jaeger,
Mike Baker Adam Koven, & Francois and Diana
Business Owner John Ledgerwood “Torrey Point Inc” Nate Ransom Goedhuys
Table 1. Competitive Intelligence about Financials and Employment

An analysis of the San Diego County businesses that fit the business model of a single

location cookie store reveals that there are very few in the area, but the few that are here are well

known and successful. Customer review comments from the yelp.com for each of the four main

competitors were analyzed to reveal forty-three different elements of concern for their patrons.

The current demand in the market is high, as many cite in online comments a willingness

to pay a premium for a good product as well as willingness to put up with what is occasional

poor service or long lines to get their ‘cookie fix.’

Tables 2 through 5 provide a summary of the online reviews for each competitor and

have been categorized with respect to (a) product, (b) price, (c) promotion, and (d) place.
 GIRARD
GOURMET
SEAPORT COOKIE DESIGNER
UNCLE BIFF'S CO. THE CRAVORY COOKIES
PRODUCT
1. Moist or dry? Moist Moist Moist Dry
2. Fresh or stale? Fresh Fresh Fresh Sometimes stale
3. Chip ratio? Good Good Good Good
4. Quality
ingredients? Good Ok Good Ok
5. Buttery or oily? Buttery Oily Ok Dry
6. Scent? Good Good Good Good
7. Soft or hard? Soft Chewy Soft Hard
8. Thick or flat? Thick Flat Thick Flat
9. Warm? Warm Warm Not Not
10. Healthy
options? Oatmeal Oatmeal Gluten Free Oatmeal
11. Undercooked? Sometimes No No No
12. Size? Too small (3") Good (5") Good Good (5")
13. Appearance? Good Average Average Excellent
14. Firm edges? Yes Yes Unknown Yes
950 custom,
9 signature,
& 3 monthly Average – 12
15. Flavor/taste? Good – 15 flavors Average – 10 flavors cookie flavors flavors
16. Custom orders? Yes No Yes Yes
17. Beverages? Few Yes No Yes
18. Creativity? No No Yes Yes

Table 2. Competitive Intelligence about Product

 GIRARD
GOURMET
SEAPORT COOKIE DESIGNER
UNCLE BIFF'S CO. THE CRAVORY COOKIES
PRICE
19. One cookie? $1.75 $1.50 $2.00 $4.00
Yes (day old 6 for
20. Deals? $5) Yes (buy 3 get 1 free) Yes (6 for $10) No
21. Credit Cards? Yes ($5 minimum) Yes (problems) Unknown Unknown
22. Reviews? Too expensive Good deal Worth it Overpriced

Table 3. Competitive Intelligence about Price

GIRARD
GOURMET
SEAPORT COOKIE DESIGNER
UNCLE BIFF'S CO. THE CRAVORY COOKIES
PROMOTION
23. Supply? Sometimes wait Good supply Run out quick Good supply
24. Wait? No lines No lines Long lines Long lines
25. Samples? No No Free samples No
26. Watch
production? Yes Yes No No
27. Delivery? Unknown No Yes Yes
28. Donate to
charity? Yes Unknown Yes Unknown
29. Service? Ok Ok Excellent Ok

Table 4. Competitive Intelligence about Promotion

 GIRARD
GOURMET
SEAPORT COOKIE DESIGNER
UNCLE BIFF'S CO. THE CRAVORY COOKIES
PLACE
Farmers
markets in La
Jolla & Scripps
30. Location? Hillcrest Downtown Ranch La Jolla
31. Store? Yes Yes Not yet Yes
32. Signage? Good Good Poor Good
33. Parking? Yes- their own lot Validated Street Street
34. Décor? No frills Average N/A Average
35. Indoor seating? Yes No No Yes
36. Outdoor
seating? No Yes No Yes
37. Hours? Unknown 10 am- 10 pm Sat/Sun 9-1 7am - 7 pm
38. Music? Unknown Yes Unknown Unknown
39. Cleanliness? Ok Ok Ok Sometimes poor
40. Restrooms? No Outside Outside No
41. Pan Handlers? Unknown Unknown Unknown Sometimes
42. Microwaves? Unknown Unknown Unknown Yes
43. Air
conditioning? Unknown No No No

Table 5. Competitive Intelligence about Place

 Strengths and Weaknesses.

Strengths of the competitors are that they are well established and well known. They

have each generated a unique following and have differentiated themselves in the marketplace.

Yet each business has its unique challenges as well, and that leaves room for opportunity.

Uncle Biff’s Killer California Cookies

Located in the walking-friendly area of Hillcrest, Uncle Biff’s has a simple storefront

with a big, eye-catching neon sign. They have a huge and loyal following, and their signature

cookie is the “California Killer Cookie.” One unique strength is their deal on day-old cookies of

buy 6 for $5. Their weaknesses include that their one-cookie price is perceived as too high, their

no-frills decor, lack of outdoor seating, and there are grumbles that the cookies could be larger

for the price. Website: http://unclebiffskillercookies.com/ourcookies.html

Seaport Cookie Company

With a perfectly sized, double-window booth in the heart of Seaport Village, the Seaport

Cookie Company could not ask for a better location. The double-window booth eliminates long

lines, and fresh baking lures plentiful tourists with yummy aromas. As if that was not enough,

their ‘buy 3 get one free’ deal is the perfect value. Weaknesses include that the cookies are flat

rather than thick, parking must be validated, and there have been problems with credit card

mischarges. Website: http://www.seaportvillage.com

The Cravory

Overcoming the challenge of selling at local Farmer’s Markets, the Cravory has

generated a vocal and loyal following who are yearning for a local storefront. The owners

actually respond to their fans on yelp. In addition, they allow custom orders and unique grown-

up flavors that you won’t find anywhere else, including gluten-free varieties. A major weakness

is a lack of signage, making it difficult for patrons to locate them at the various markets. In

addition, since they can’t bake on-site, they often run out of popular flavors and there are long

lines. Website: http://www.thecravory.com/ and also http://410degrees.com/

Girard Gourmet Designer Cookies

This competitor started as more than just a cookie store, but in their cookie offerings

simply cannot be ignored. The real draw is their unique eye-catching sugar cookies. Not only

are they beautiful, they are witty in their attention to current events, such as a Shawn White

snowboarder cookie during the Winter Olympics. Pair that with their La Jolla location and the

premium price of $4 each makes sense. They feature a sugar ‘cookie of the day’ in their

windows which draws the curious to stop by often and look to see what is new for the day.

Website: http://www.funcookies.com/ and http://www.girardgourmet.com

Opportunities.

There are quite a few opportunities here for a great business. First, the market is not

over-saturated with competition. It an effort to identify competitors in the San Diego County

area, I came up with only four unique local cookies specialty stores, and three cookie franchise

locations. For a city with over 2 million residents, seven cookie stores spread out over the entire

county does not seem to be an overwhelming amount of competition. And of the cookie stores

that I have discovered, most have been in business for over 10 years each, showing that they are
very stable. Customers want a product that is warm, fresh, moist, soft, flavorful, and attractive,

and they are willing to pay for quality. They want a clean facility, easy parking, air conditioning,

restrooms, indoor and outdoor seating options, and a pleasant atmosphere with no microwaves

and no pan handlers. They are looking for quality and value. They will pay up to $2 per cookie

with few grumbles for gourmet quality with excellent visual appeal. The ideal price point seems

to be $1.50 each with a deal of “buy 3 get 1 free.” The other popular deal was day-old cookies at

a price of $5 for 6 cookies.

Threats.

The biggest threat is that the location would not prove to be profitable. There are

enormous benefits to having a fixed location, but the drawback is that if surrounding

demographics are not suitable it can kill a business before they even get off the ground. Other

threats include that new competitors can enter the market, that knock-offs could be developed, or

that economic conditions become worse than they currently are which would leave people with

little or no disposable income for small luxuries like cookies.

The Marketing Mix

Competitive intelligence reveals that the ideal company would have the following

characteristics for product, price, place, and promotion:

 ONE GOOD COOKIE

PRODUCT PRICE PLACE PROMOTION

Moist 1.50 each Good location for walking Good supply
Buy 3 get one free; day
Fresh old 6 for $5 Storefront No lines
Good chip ratio Careful with credit cards Good signage Free samples
Good quality ingredients A good deal Good parking Watch production
Buttery Comfortable décor Delivery optional
Good scent Indoor seating Donate to charity
Soft and chewy Outdoor seating Excellent service
Thick 10 am – 7 pm daily
Warm Good music
Healthy options Good cleanliness
Not undercooked Restrooms
5" or larger No pan handlers
Good appearance No microwaves
Firm edges Air conditioning
Good flavor with 12+
choices for variety
Custom orders
Variety of beverages
Creative

Table 6. Summary of competitive intelligence findings.

Summary

Secondary market research has been incredibly valuable as it has informed not only the

ideal marketing mix but also revealed that the local market is far from saturated and has only a

handful of very strong, well established competitors for this industry. By learning from the

established companies before the new business is started, we can avoid some of the problems

that they currently face.

Quantitative Market Research

 It is important to conduct primary market research in addition to gathering the secondary

market information that is summarized in the previous section. For the following primary

market research, a ten question survey was developed and posted on the internet via a free survey

software company called Survey Monkey. Responses remain anonymous, but ample room for

comments was provided in order to gain more insight into what potential customers would like to

see in the product, price, place, and promotion mix.

Sampling Methodology & Sample Size.

This first primary research survey will be conducted with non-probability based

sampling, with a goal of 50 responses. Without the time or funds to conduct a probability based

sampling, the minimum of 50 responses will give a small glimpse into the mind of potential

consumers, and can point the way for further more in-depth primary market research.

Target Respondent Profile.

The target respondent for the proposed shop location is someone who lives, works, or

goes to school in the 92123 or 92124 zip code. Since I work in the 92123 zip code, I will ask

people who I come into contact with at work to complete the survey. In addition, however, I will

also contact people I know who live in other cities and states, to get their input as well.

Responses from people outside that zip code will be considered for general information, and it is

possible that they may live, work, or go to school near one of the four local major competitors

being analyzed.

An online survey was created in Survey Monkey, the free internet survey software

mentioned above. This survey (Appendix B – Survey Questions) asks 10 key questions for this

early stage of business development as a single-location cookie shop. The link to this online

survey was sent to 14 classmates, and was posted to Facebook with approximately 150 contacts
listed there. I work in the 92123 zip code, and also asked co-workers to participate. While this

is clearly a convenience sample, and therefore biased, it has been noted that it is a starting point

to gather some basic ideas and then refine the questions for a future more in-depth and

statistically valid probability sample survey of the target zip code for the store itself.

Questionnaire.

A ten question survey was designed with feedback from the professor and classmates. It

was refined and posted on 22 August, 2010 (Appendix B – Survey Questions). This type of

primary research, survey research, is very important to any business but it is especially helpful to

a new business. The purpose of primary research is to “quantify the opportunity which will

include determining the total demand, the unmet demand, how competitors are or could satisfy

this demand, how your offering is to be distinctive in this market, and your reasonable sales

projections at your proposed selling prices” (National University, 2010, p. 14).

Primary Research Analysis of Quantitative and Data

Analysis of the data gathered from the primary research survey provides some important

clues as to customer preferences, especially from the comments where participants elaborated on

their responses.

Survey Data.

Survey responses are displayed below and comments have been summarized. For all

responses, the sample size “N” is equal to 45, which means that 45 people completed the survey.
Question 1

The other zip codes are:

Figure 3. Survey question 1

Question 2

Figure 4. Survey question 2

Question 3

Figure 5. Survey question 3

Question 4

Figure 6. Survey question 4

Question 5

Figure 7. Survey question 5

Question 6

Figure 8. Survey question 6

Question 7

Figure 9. Survey question 7

Question 8

Figure 10. Survey question 8

Question 9
Figure 11. Survey question 9
Question 10

Figure 12. Survey question 10

Research Conclusions
The most beneficial result was input on the company name, with “One Good Cookie”

coming out significantly ahead of the other choices. In addition, it was discovered that the

survey participants would look for a business like this at the mall more frequently than they

would look for it in their neighborhood. That result was surprising, and requires additional

market research before an actual location is selected for the store itself. For the product, the

likely time of purchase indicates that business would be best from lunchtime/afternoon through

evening hours, with few customers in the early morning or late at night.

But with N=45 but only 5 of those actually in the target zip code, I would not rely

entirely on these survey replies for creating a product marketing plan. Some of the comments

provide sound advice, and when added to the secondary research comments from actual local
cookie patrons this provides an interesting picture of the market potential. Further study should

be made within the targeted neighborhoods to get a larger sample, and a mall area should also be

surveyed for comparison to see if it is more supportive of this type of business than a

neighborhood shopping strip.

 Marketing Plan

The marketing plan includes the company vision, slogan, mission, values, objectives,

marketing mix, branding, and advertising strategy.

Vision

One Good Cookie at a Fair Price. TM

Slogan

One Good Cookie Deserves Another!TM

Mission Statement

To make unique, creative, high quality cookies and provide them locally at a fair price in

a single-store cookie shop.

Values

 Community

 Quality Ingredients

 Fair Prices

Objectives

1. Achieve an average sales transaction of $4.50 per customer within the first year.

2. Increase profit by 5% in the second year of business.

The Target Customer

The target customer for this business is a person who totally loves cookies. The cookie

lover is a niche market, as demonstrated in the comments of the primary research survey. Cookie

lovers, like myself, tend to take it for granted that everyone else loves cookies as much as they

do. While enthusiasm is important for any business, I cannot allow it to blind me to the cold fact

that not everyone is in love with cookies. More importantly, among cookie lovers I am seeking
those who are not the health nuts looking for ‘alternative’ cookies. My vision is for good old

fashioned high calorie splurge type cookies. Locating these cookie lovers is no simple task, as it

is more of a psychographic characteristic than any sort of easily identifiable demographic.

Within my primary research, I had one potential customer out of 45 who stated “I’d go anywhere

for a cookie” – this is my target customer, the one who will, in theory, go the extra mile in the

middle of the night to satisfy that cookie craving. It is said that the rule of 80/20 in business is

that 80% of your profits will come from 20% of your customers. The 20% of my customers who

will sustain the business are these true cookie lovers.

The Marketing Mix

Based upon secondary data research, the ideal company would have the following

characteristics for product, price, place, and promotion:

 ONE GOOD COOKIE

PRODUCT PRICE PLACE PROMOTION

Moist 1.50 each Good location for walking Good supply
Buy 3 get one free;
Fresh Yesterday’s @ 6 for $5 Storefront No lines
Good chip ratio Careful with credit cards Good signage Free samples
Good quality ingredients A good deal Good parking Watch production
Buttery Comfortable décor Delivery optional
Good scent Indoor seating Donate to charity
Soft and chewy Outdoor seating Excellent service
Thick 10 am - 7 pm daily
Warm Good music
Healthy options Good cleanliness
Not undercooked Restrooms
5" or larger No pan handlers
Good appearance No microwaves
Firm edges Air conditioning
Good flavor with 12+
choices for variety
Custom orders
Variety of beverages
Creative
Table 7. Secondary research indicates ideal characteristics for a local cookie company.

Product.

Cookie lovers want a moist, fresh cookie with ample ingredients. They prefer a 5”

diameter or larger size with firm edges and a soft chewy thick warm center, but not undercooked.

Scent and appearance should both be attractive, and they want a nice variety of choices for

flavor. Creativity is important, plus a variety of beverages and the ability to place custom orders.

Most want real butter in their cookies, while some want a healthy alternative too.
 Price.

Customers want a good deal. They are willing to pay $1.50 per cookie, but not much

more than that. Two of the most popular deals were “buy 3 get 1 free” and also 6 cookies that

were 1 day old for $5. Credit cards may be more trouble than they are worth – one mistake with

those and customers were extremely unhappy and vocal about it.

Place.

The location should be accessible to those who walk around, yet have good parking too.

Customers prefer a storefront over a farmer’s market location, and good signage is an absolute

must. The décor should be comfortable rather than spartan, and both indoor and outdoor seating

are desired. Indoor areas should be air conditioned and clean, with restrooms for customers. No

pan handlers and do not warm things up in the microwave – it’s not authentic. Good music is

welcomed, and hours of operation should be approximately 10 am – 7 pm every day.

Initial primary market research revealed that a shopping mall is one of the stronger

possibilities for a store location, rather than a neighborhood location which was being considered

before primary market research was completed. Further primary market research will need to be

conducted regarding the ideal location for the business. Location will be critical to generate the

appropriate volume of business. Shopping mall patrons will need to be surveyed, and further

studies should be done at the neighborhood strip mall locations as a comparative before the

location is determined.

Promotion.

Be sure to have a good supply of product on hand, and give out samples so they can try

before they buy. Don’t make people wait in line, be sure to help them promptly. Let them watch

the process of products being made – it inspires trust. Delivery is a nice service, but it is
optional. Overall, good customer service is very important and customers value a company that

donates their product to charity fundraisers and events.

Promotion will use an integrated marketing approach that includes public relations, sales

promotion, customer service, and suggestive selling techniques to help keep sales at target levels.

Promotion will include a strong branding element, as described in the next section.

Branding

A graphic designer will be hired to create three brand image choices for the logo, website

for promotion only (no online sales), packaging, décor, signage, employee attire, and product

display designs. They will use feedback that we have from our primary research indicating that

neutral colors like off-white, peach, beige, and brown are colors people associate with our

concept of fresh, warm, and tasty cookies. We will do market research with those three choices

and select the most popular of the three designs to be implemented.

Advertising

Our primary research indicates that the number one information source for us will be

word of mouth, closely followed by signage on location and information on the internet.

Signage and internet branding will be designed by a graphic designer and tested with market

research before being implemented. Word of mouth will require that we are good about getting

the initial word out so people can tell others about our product. To encourage word of mouth we

will provide free product samples to local businesses and community organizations in the first 90

days that we are open for business.

Customer Service and Suggestive Selling

Customer service must be of the highest quality in a small business like this, and

extensive care will be taken to select the right employees for the job of working with the public
and representing the brand. Suggestive selling techniques will be used, and each customer

should be offered the ‘buy 3 get 1 free’ opportunity. In addition, free samples will be provided,

to help customers find their favorite flavors and not be disappointed in paying for something they

may not like as much as another flavor.

Uncontrollable Variables

The uncontrollable variables include changes in the economic, legal, and political

climate; changes in technology; and socio-cultural changes. Changes in these areas require

adaptation of the business itself in order to survive as the world around the business changes.

Therefore, it will be important to stay informed on these local environmental factors throughout

the lifespan of the business. For example, if there are legal changes in any health permit laws,

then it will be critical to keep up to date with these changes.

Conclusion

Primary and secondary research have been insightful in designing a strong marketing

plan. The vision is clear, the slogan is sensible, the mission and objectives are achievable, and

all of these integrate well with the values of the company. The marketing mix of product, price,

place, and promotion were developed based upon these research results. Branding, advertising,

customer service, suggestive selling, and uncontrollable variables are each addressed. Overall,

the marketing plan is viable and will help create a strong new business.
 Financial Plan

Narrative Introduction

The purpose of the plan is to illustrate the revenue and expense situation for starting this

business and generating a profit. The financial plan includes financial objectives, revenue forecast,

pro forma cash flow analysis, pro forma income analysis, pro forma balance sheet, and estimate of

start-up expenses. The financial plan for this business has been developed with information

gathered from secondary and primary market research as well as US Economic Census data.

Projections have been made with the unit sales method.

Financial Objectives

1. Achieve an average sales transaction of $4.50 per customer within the first year.

2. Increase profit by 5% in the second year of business.

Revenue Forecast

Based on the secondary data information for Seaport Cookie Company, they had at least

$500,000 in sales in one year with a cookie price of $1.50 each (Manta.com, 2010b; yelp.com,

2010b). This is most similar to the pricing and financial model that I wish to follow, so it is being

used as a basis for financial projections. Since their most popular deal is ‘buy 3 get 1 free’ I am

going to add in 1 ‘free’ cookie for every 3 sold when making production estimates.

If sales in 12 months are $500,000 divide that by $1.50 and you get 333,333 cookies that

were paid for. Since their most popular deal is ‘buy 3 get 1 free’ we will estimate that they

produced 444,444 cookies to generate that much revenue. That is a daily average of 1,218 cookies

sold in a year with 365 days. They are open from 10 am to 10 pm for 12 hours each day, so that is

an hourly sale rate of about 102 cookies per hour. In order to reach this target, production will

have to match that pace, with approximately 2 cookies per minute being produced and given out.
That requires heavy foot traffic, which Seaport Village definitely has, so we must look not at

neighborhood locations which are low density, but at high density areas like tourist spots, large

shopping malls or downtown nightlife areas. Other possibilities would be to lease space in college

campus food courts or airports where there is high foot traffic.

Seaport Village Cookie Co. is well established and has been in business for at least 10

years. To be more reasonable in our projections, if we did 50% of their annual business volume in

our first year it would be a great year. That’s $250,000 in sales in the first year as a new start-up

with a rate of 1 cookie per minute being produced and given out, or about 5 dozen per hour.

Our plan, however, calls for 9 hours per day of work time versus their 12 hours per day,

which would mean either an increase in number of cookies per hour to achieve the revenue target

of $250,000 in sales, or a decrease in target revenue for the first year. That would mean sales of 68

cookies per hour or 1.13 cookies per minute to stay on target with a first year sales revenue of

$250,000 before taxes and other expenses. That would be approximately $76 per hour of incoming

revenue during open business hours. If business is distributed evenly across all months.

Monthly sales are not normally equal, so ratios were obtained from the US Census Bureau

(2009) for Retail and Food Services Sales by Kind of Business for two categories – “Food and

Beverage Stores” (NAICS 445) and also “Limited Service Eating Places” (NAICS 7222), and were

compared to each other and found to be almost identical. The sales per month was calcualted as a

percentage of total annual sales as shown in the following table.

 Table 8. Sales per month as a percentage of total annual sales

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
8% 7% 8% 8% 9% 9% 9% 9% 8% 8% 8% 9%
Source: http://www.census.gov/retail/#mrts Retail and Food Services Sales: Excel (1992-present)

An adoption curve from MBA class lecture notes (Lefkowitz, 2010) is factored in for the

first six months of business, to give a more accurate picture of start up revenue. Table 9 below has

an adoption curve of 60% of capacity in the first month and grows to 97% capacity in the sixth

month of business.

Table 9. Adoption curve applied to start up revenue projection

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Full revenue 20,000 17,500 20,000 20,000 22,500 22,500 22,500 22,500 20,000 20,000 20,000 22,500
Adoption curve 60% 66% 73% 80% 88% 97% 100% 100% 100% 100% 100% 100%
Revenue 12,000 11,550 14,520 15,972 19,765 21,862 22,500 22,500 20,000 20,000 20,000 22,500

Pro Forma Cash Flow Analysis

To calculate gross profit, we need to take the adoption curved revenue and then subtract the

cost of goods sold. To find an accurate cost of goods sold, we need to know our cost per cookie

and how many cookies were produced. It is important to remember we’re offering “buy 3 get 1

free” so for every 3 cookies paid for in revenue, one will be given away for free.

Using a list of ingredients for an average cookie recipe, and current figures from a leading

national grocery chain, the cost per cookie was calculated at $.25 each. Note that this is a

conservative estimate because we would actually be able to lower the cost per cookie by buying in

bulk from wholesalers or club stores instead of retailers.

Table 10. Cost per Cookie Calculation

Ingredients (36 cookies)
3 eggs 1.05
1 tsp vanilla extract .06
1 cup butter 2.99
1 cup brown sugar .64
1 cup sugar .32
2.5 cups flour .60
1 tsp cinnamon .21
2 tsp baking soda .03
2 cups oats 1.60
1 pkg secret ingredients 1.50

BATCH TOTAL 9.00

Cost per Cookie .25

Once the cost per cookie is known, we need to figure how many cookies are being made.

If we have a revenue of $12,000 at $1.50 per cookie that means that 8,000 cookies were sold, but

with our special there is one cookie given for free for every 3 cookies sold, so 8,000 is only 75%

of the cookies that were actually made and distributed. Therefore, we will produce and distribute

10,667 cookies in the first month of business. At $.25 each that is a cost of goods sold of $2,667

for that month, which will result in a positive cash flow in the first month of business, as shown

in the table below.

 Table 11. Simple Pro-Forma Cash Flow Analysis

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash 0 4,053 7,954 12,858 18,254 24,930 32,315 39,915 47,515 54,271 61,027 67,783
Balance
Revenue 12,000 11,550 14,520 15,972 19,765 21,862 22,500 22,500 20,000 20,000 20,000 22,500
(curved)
Cookies 8,000 7,700 9,680 10,648 13,177 14,574 15,000 15,000 13,333 13,333 13,333 15,000
“Sold”
Cookies 10,667 10,267 12,907 14,197 17,569 19,433 20,000 20,000 17,778 17,778 17,778 20,000
Made
Cost per 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Cookie
COGS 2,667 2,567 3,227 3,549 4,392 4,858 5,000 5,000 4,444 4,444 4,444 5,000

Gross 9,333 8,983 11,293 12,423 15,373 17,004 17,500 17,500 15,556 15,556 15,556 17,500
Profit
O&A 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44
ratio
O&A 5,280 5,082 6,389 7,028 8,697 9,619 9,900 9,900 8,800 8,800 8,800 9,900
expense
This 4,053 3,901 4,904 5,395 6,676 7,385 7,600 7,600 6,756 6,756 6,756 7,600
month's
cash
End of 4,053 7,954 12,858 18,254 24,930 32,315 39,915 47,515 54,271 61,027 67,783 75,383
month
Cash
Balance

ASSUMPTIONS

Working capital needed = $0

Break even = Month 1

From MBA class lecture notes, adoption curve percentages are used for revenue smoothing (Lefkowitz,
2010).

Expense ratios are based on the Bakery industry average of 44% for small businesses (Troy, 2008, pg.
48).
 Pro Forma Income Analysis

This business will have positive cash flow from the first month of business. The product is

offered at a fair price that will generate a net profit of 34% of revenue with expenses estimated at

44% of revenue based upon bakery industry averages for NAICS codes 311800 (Troy, 2009, pg.

48).

Table 12. Pro Forma Income Statement

Rati
o Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
Revenu 100 12,00 11,55 14,52 15,97 19,76 21,86 22,50 22,50 20,00 20,00 20,00 22,50 223,26
e 0 0 0 2 5 2 0 0 0 0 0 0 9
(curved)
COGS 22 2,667 2,567 3,227 3,549 4,392 4,858 5,000 5,000 4,444 4,444 4,444 5,000 49,614

Gross 78 9,333 8,983 11,29 12,42 15,37 17,00 17,50 17,50 15,55 15,55 15,55 17,50 173,65
Profit 3 3 3 4 0 0 6 6 6 0 5

O&A 44 5,280 5,082 6,389 7,028 8,697 9,619 9,900 9,900 8,800 8,800 8,800 9,900 98,238
expense
Net 34 4,053 3,901 4,904 5,395 6,676 7,385 7,600 7,600 6,756 6,756 6,756 7,600 75,417
Profit

ASSUMPTIONS

From MBA class lecture notes, adoption curve percentages are used for revenue smoothing (Lefkowitz,
2010).

Expense ratios are based on the Bakery industry average of 44% for small businesses (Troy, 2008, pg.
48).
Pro Forma Balance Sheet

The owners will need to invest $22,605 to start the business, as shown on the balance sheet

below.

Table 13. Pro Forma Balance Sheet

ASSET LIABILITIE
S S
Current
Assets Current Liabilities
Cash 4,105 Accounts Payable 0
Total 4,105 Total 0

Fixed Assets Long Term Liabilities

Furniture 900 Debts 0
Fixtures 2000
Kitchen
Equipment 4380
Tenant
Improvement
s 2000
Signs 8600
Computer
equip. 620 Total 0
Total Liabilities 0
Total 18,500 Net Worth 22,605
Net Worth +
Total Assets 22,605 Liabilities 22,605

Schedule of Estimated Start-Up Expenses

Start up expenses for this business will include leasing the space, acquiring pre-owned

furniture, pre-owned fixtures, and pre-owned kitchen equipment (including dishes and utensils).

Tenant improvements may be needed, as well as signage and business computer equipment. In

addition to these fixed capital items, we will need consumables such as restaurant supplies and

office supplies. Then there are also services to pay for including printing, licenses, and permits.

Pre-owned equipment prices were averaged from current listings on e-bay with knowledge of
standard industry prices from several years of work at Williams-Sonoma cooking specialty retailer

plus kitchen industry experience.

Furniture ($900).

Secondary market research demonstrated that cookie store patrons prefer to have the option

to sit inside or outside. Therefore there is a need for indoor and outdoor tables and chairs, and

some sort of shade in the form of umbrellas or awnings for the outdoor seating area. Outdoor patio

bistro sets for two can be purchased for $100 each through discount retailers. Two would be

needed, for a total of $200 for outdoor tables/chairs. Indoor sets to match would be 4 for $100

each for a total of $400 for indoor tables/chairs. Two umbrellas with stands would be needed for

outdoors, at $150 each and can be branded with the company logo for better visibility and

marketing, so these would total $300.

Fixtures ($2,000).

Fixtures that may be needed include ensuring that all plumbing and lighting are in good

working order. Estimate $600 for these items. Two bakery cases with lighting and temperature

control are also required at $700 each pre-owned.

Kitchen Equipment ($4,380).

One pre-owned Vulcan commercial triple oven at $1,200, plus one rolling bake rack at

$100 with 20 commercial cookie sheets at $7 each to fill the rack will be required. Two electric

hot plates will also be needed at $20 each, plus one well-hidden small microwave in the prep area

(not to be used for re-warming anything!) for melting chocolate without burning it at $25. An

industrial 3 bay sink with appropriate sanitizer and drainage is also required at $800 (may be

included in the leased space, see below)*. A commercial refrigerator with prep counter for $1,215

is required, and a commercial freezer at $500. An additional 4 stainless steel prep surfaces will be
needed at $100 each, plus two units of shelving for dishes and utensils at $80 each. And two

commercial quality KSM-5 stand mixers will also be required at $300 each.

Tenant Improvements ($2,000).

Secondary market research demonstrated that cookie store patrons prefer an air conditioned

environment. With a baking operation it is essential to ensure a comfortable climate indoors, so

the air system must be in good working order for the comfort of patrons and employees. Ideally,

we will not lease a location that requires any improvements to the air system, and therefore will

save costs in this area, but realistically we will budget $2,000 for any unforeseen needs.

Signs ($8,600).

Signage will be needed for the storefront and for any local directional signs, such as a mall

marquee. Signage costs are $1,600 for a standard storefront sign lit with aluminum floodlights. A

mall sign lit from within is $7,000.

Business Computer Equipment ($620).

Our personal computer is in need of repair at $500, so that it can be used for the business.

Internet service would need to be paid for also. Backup memory storage will be needed in case of

equipment or software failure at $120. We will avoid a computerized cash register for simplicity

and ambience.

Leased Space ($1,200).

Local space lease rates, as gathered from craigslist san diego, show that there is a restaurant

space of 750 sq. ft. in the college area which includes the three bay sanitation sink for $1,200 per

month. *This would save the $800 start up cost estimated for a three bay sink.

Restaurant Supplies ($1,100).

 Inventory will need to be purchased for the ingredients at an estimate of $500 for starting

inventory. Aprons, chef pants, logo jackets and prep towels will be required at $200 per kitchen

worker also with 2 workers at the start of business. Paper towels, toilet paper, and cleaning

supplies are needed as well, at an estimate of $300 for start up supplies.

Office Supplies ($400).

These include pens, paper, ink for the printer, stapler, scissors, scotch tape, and paperclips

and other miscellaneous office supplies for a total of $200 at start up. An old-fashioned

mechanical cash register will be obtained for $100, and we will need a small safe for cash and

change storage at about $100.

Kitchen Dishes ($150).

Mixing bowls, prep bowls, and measuring cups will be needed for two kitchen workers at

$75 each. The owners have a personal collection of over 300 specialty cookie cutters that will be

used for the business.

Kitchen Utensils ($150).

These include spoons and scrapers as well as cookie spatulas and rolling pins at

approximately $75 per kitchen worker with 2 kitchen workers. The owners will also provide some

equipment from their own collection at home.

Printing Services ($625).

This will include business cards at approximately $25, preprinted bakery receipt books at

$100, and any promotional printing or advertising with a start-up budget of $500.

Licenses & Permits ($630).

The executive chef has an up to date ServSafe certificate as well as a current food handler

permit. The second kitchen worker will need a food handler permit at $25. State sales tax permit
which is free, and local business license for $75 will need to be acquired, as well as a health permit

for the location estimated at $500 and a fictitious business name fee of $30. Details were obtained

from the County of San Diego website and the “Guide to Opening a New Food Business in San

Diego County” (County of San Diego, 2010a; County of San Diego, 2010b).

Table 14. Start Up Expenses

DISCOUNTED
or
Fixed Capital PRE-OWNED
Furniture 900
Fixtures 2,000
Kitchen Equipment 4,380
Tenant Improvements 2,000
Signs 8,600
Computer equip. 620
Total Fixed Capital 18,500

Start-Up Expenses
Leased space 1,200
Restaurant Supplies 1,100
Office Supplies 400
Kitchen dishes 150
Kitchen utensils 150
Printing 625
Licenses & permits 630
Total start-up expenses 4,105

Capital Needs
Analysis
Working Capital 0
Fixed Capital 18,500
Start-up expense 4,105

Total Capital Needed 22,605

NOTE
Fixed capital needs
were reduced with pre-
owned items at approx.
50% savings.

Plan for Financing the Business

 Our main source of funding would be cash that we earn and set aside for the purpose of

starting our own business. It is clean and simple, with little or no debt looming at the beginning of

the enterprise to add unnecessary financial pressure to the challenges of starting a business. We

can buy most equipment pre-owned or at discount prices.

Narrative Conclusions

The business itself is financially viable with break even in the first month at 34% of

revenue. Start up costs are reasonable provided that the larger items are purchased pre-owned.

The owners will need to invest the start up capital of $22,605 in order to start the business with

no long term debts. Net profit in the first year will be just over $75,000.
 Operations Plan

The plan for operations includes an organization chart and job descriptions, a summary of

owner qualifications to run the business, and daily management plans. Also included are details on

the legal form of business, insurance, licenses, production, supply chain, and trademarks.

Legal Form of Business

The legal form of business is a sole proprietorship. The owner will file schedule C for the

tax year when paying their personal income taxes.

Staffing Plan

The staffing plan for the first year is for the owners to do all of the work themselves. Virginia

will be the operations manager and the point of contact for customer service, and David will be the

Executive Chef. Since they are owners of the business, the business itself will have no employees,

no wages or salaries, and no employee tax withholding.

Training and Motivation.

Virginia has extensive experience and training in customer service, and David has over 20

years of culinary experience and training. Owners of a business are highly motivated to see their

operations succeed.

Organizational Chart.

The organizational chart for the first year is extremely simple, with Virginia as the Sole

Proprietor and David as the Executive Chef.

 Virginia C. Hire
Damrauer
Sole Proprietor

David J. Damrauer
Executive Chef

Figure 13. Organizational Chart.

Risk Management

Virginia’s father works in the insurance industry and he will be consulted to ensure that

insurance needs are being met for the business. Insurance will be needed for General Liability,

Product Liability, Property, and Business Loss.

Insurance.

General liability insurance will cover things like slip and fall incidents. Product liability

insurance covers any illness or allergic reactions to the product. Property insurance is to protect

against any damage such as vandalism. Business Loss insurance is used when a business is

closed due to uncontrollable circumstances like a natural disaster.

Contractual

An attorney will be retained to assist with all contracts, leases, and licenses. These will

include any business space leases, insurance contracts, supply contracts, health permits, license

agreements, and trademark applications.

Other Needs

Other needs for the business will include research and development of new products,

management of the supply chain, and the establishment of production and service procedures.

Research & Development.

We plan to start with family recipe cookies, and then monitor their success. More

successful products will be analyzed for commonalities, and then new products can be developed

based on the known success factors.

Supply Chain.

The supply chain will have to be established very clearly. Ingredient and supply orders

will be placed once a week with major suppliers who will deliver to the premises once a week.

Production Procedures.

Culinary industry standard procedures, such as mise en place, will be used to ensure a

clean and safe production environment that is in compliance with all health regulations.

Service Procedures.

Customer service will be critical, as word of mouth is an essential good marketing tool for

any start-up business.

Implementation Plan

A six month implementation plan is outlined in the following table. This is the steps needed to

get the business started and open the doors.

Table 15. Implementation Schedule

Item Task Start Date Resources needed Due Date

Find attorney 1/1/2011 Research the BBB website for good 2/1/2011

prospects, interview potential candidates

DBA 1/1/2011 Follow the procedures on County website 5/1/2011
Seller’s Permit 1/1/2011 Follow the procedures on State website 5/1/2011
Business License 1/1/2011 Follow the procedures on County website, 5/1/2011

must have seller’s permit first

Trademarks 5/1/2011 Must have attorney and capital first 6/1/2011
Graphic Artist 1/1/2011 Research the BBB website for good 5/1/2011

prospects, interview potential candidates

Insurance 5/1/2011 Must have capital first 6/1/2011
Rent Property 5/1/2011 Must have capital first 6/1/2011
Health Permit 5/1/2011 Follow the procedures on County website 6/1/2011
Procurement of 5/1/2011 Must have capital first 6/1/2011

tangible items
 CONCLUSION AND STATEMENT OF VIABILITY

The cookie business itself is a very viable venture. Cash flow is positive in the first

month, and net profit is 34% of revenue generated. Start up expenses are $22,605 with a net

profit in the first year of just over $75,000. Competitive intelligence demonstrates that this local

industry is both sustainable and profitable, with two of the top competitors generating over

$500,000 in annual revenue and they have been in business for over 15 years each.

Further primary market research will need to be conducted regarding the ideal location

for the business. Location will be critical to generate the appropriate volume of business.

Shopping mall patrons will need to be surveyed, and further studies should be done at the

neighborhood strip mall locations as a comparative before the location is determined.

Operationally, culinary industry standard procedures will be implemented in the kitchen

area. An attorney will be hired to help with all contracts and licensing, and a graphic designer will

be hired to help with branding and advertising. A six month implementation schedule will be

followed beginning January 1, 2011. One Good Cookie is going to be one good business.
 REFERENCES

City of San Diego. (2010). Business license company directory. Retrieved from

http://www.sandiego.gov/directories/business.shtml

County of San Diego. (2010a). Licenses and Permits. Retrieved from

http://sdpublic.sdcounty.ca.gov

County of San Diego. (2010b). Guide to Opening a New Food Business in San Diego County.

Retrieved from http://sdpublic.sdcounty.ca.gov

Girard Gourmet. (2010). Fun Cookies. Retrieved from http://www.girardgourmet.com and

http://www.funcookies.com

Lefkowitz, H. (2010, August-September). MGT 610C Lecture Notes. La Jolla, CA: National

University.

Manta.com (2010a, September). Girard Gourmet. Retrieved from Manta.com

Manta.com (2010b, September). Seaport Cookie Company. Retrieved from Manta.com

Manta.com (2010c, September). Uncle Biff’s Killer Cookies. Retrieved from Manta.com

National University. (2010, January 1). Graduate Business Project Handbook. La Jolla, CA:

National University.

Seaport Village. (2010). Seaport Cookie Company. Retrieved from

http://www.seaportvillage.com

The Cravory. (2010). The Cravory. Retrieved from http://www.thecravory.com and

http://410degrees.com

Troy, L. (2008). Almanac of Business and Industrial Financial Ratios. Chicago, IL: CCH.

Uncle Biff’s Killer Cookies. (2010). Our Cookies. Retrieved from

http://unclebiffskillercookies.com
US Census Bureau. (2000). Demographic Data. Retrieved from http://www.census.gov

US Census Bureau. (2007). Economic Data. Retrieved from http://www.census.gov

Yelp.com (2010a, September). Girard Gourmet. Retrieved from yelp.com

Yelp.com (2010b, September). Seaport Cookie Company. Retrieved from yelp.com

Yelp.com (2010c, September). The Cravory. Retrieved from yelp.com

Yelp.com (2010d, September). Uncle Biff’s Killer Cookies. Retrieved from yelp.com
 APPENDIX A – RESUMES

David J. Damrauer – Executive Chef

Specific Interests

 Sauces
 Health and Nutrition

Completed Classes in Culinary Arts

 Intermediate Culinary Skills

 Essential Skills for Culinary Arts
 Principles of Soup, Stock, & Sauce Prep
 Principles of Buffet and Catering
 Healthy Lifestyle Cuisine
 Food Purchasing
 Realities of Nutrition

Relevant Work Experience

 Worked as a cook in the US Navy for six years

 Seasonal work as a cook at SeaWorld
Virginia C. Hire Damrauer – Operations Manager

Degrees
2010 Master of Business Administration, Marketing emphasis (in progress), National University
2010 Master of Fine Arts, Videogame Production, National University, Honors
2007 Master of Library and Information Science, San Jose State University
1993 Bachelor of Arts , History major, Biology minor, UCSD Revelle College, Regents Scholar

Related Employment
2006-present Library System Administrator, National University Library System
2005-2006 Instruction Librarian, National University Library System
2003- 2005 Document Delivery Specialist, National University Library System
2000-2002 Administrative/Database Assistant, SDSU Foundation
1999-2000 GS-05, Secretary (Office Automation), Internal Revenue Service, Salt Lake City
1998 Administrative Assistant, Plant Operations Data Systems, University of Utah
1997 Program Representative, Information Technology, UCSD Extension
1993-1996 Administrative Assistant, UCSD Extension

Certificates & Training

2009 7 Habits of Highly Effective Managers, National University Extended Studies
2006 National University Supervisor Development Program
2000 Certificate in Geographic Information Systems, SDSU Extended Studies
1996 Certificate in Meeting Management & Special Events Planning, UCSD Extension
1993 Certificate in Transportation Demand Management, UCSD Extension

Awards & Achievements

2006 “Club 1000” recipient of $1,000 peer award for excellence, UCSD Extension
1988-1989 Freshman Honors Group, UCSD Revelle College
1987 Girl Scout Gold Award (female equivalent of Eagle scout)

Selected Publications
Hire, V. C., & Lockerby, R. A. (2008). Accessibility of psychology and education test kits:
Identifying common practices and problems. Journal of Interlibrary Loan, Document
Delivery & Electronic Reserve, 18(2), 181-193.

Hire, V. C. (2007). Academic Libraries, Student Expectations, and College Admissions (Master’s
thesis). Available from ProQuest Dissertations and Theses database.
Selected Presentations & Posters
Stillwell, B. N., Hire, V. C., & Lockerby, R. A. (2010, March). Academic Library in a Virtual
World: Library Services to a Growing Online Teacher Education Population. Poster
session presented at the Society of Information Technology in Education Conference, San
Diego, CA.
Stillwell, B. N., Hire, V. C., & Lockerby, R. A. (2010, March). Advanced Research in Education
Tutorial and Quiz. Poster session presented at the Society of Information Technology in
Education Conference, San Diego, CA.
Hire, V. C. (2010, March). Academic Library Sharing Session. Conference session led at the
SirsiDynix Conference, Tampa, FL.
Hire, V. C. (2008, April). Catalog Search Box for MySpace. Conference session led at the
SirsiDynix Conference, Detroit, MI.
Hire, V. C. (2008, January). Academic Libraries, Student Expectations, and College Admissions
(Master’s thesis). Paper presented at the Hawaii International Conference on Education,
Honolulu, HI.

Selected Instruction
Hire, V. C. (2005-present). Library Instruction [Classes or Individuals]. National University, San
Diego, CA.
Green, V. C. (2002, May). Intermediate Microsoft Excel for Research Administrators [Hands-
On]. Three hour computer workshop developed and presented twice at the Society of
Research Administrators Western Region, Tucson, AZ.

Reviewer
Hire, V. C. (2010, April). CIS 620 Capstone presentations. National University, San Diego, CA.
Hire, V. C. (2007, May). Innovation & Technology session proposals. Library Orientation
Exchange, San Diego, CA.

Committees
2005-2006 2006 Conference Planning, Association of Mental Health Librarians
2001-2002 Purchase Order Process Improvement, SDSU Foundation

Memberships
1993 UCSD Alumni Association, Lifetime Member
 APPENDIX B – SURVEY QUESTIONS

*
1. What is your zip code at home?
What is your zip code at work and/or at school?

92123 Kearny Mesa

92124 Tierrasanta

Other

(please specify)
Add Question HereSplit Page Here
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2. How do you find out about new stores or where do you get your information?

Internet

I see the Sign or Store Front

Radio

Television

Word of Mouth

Other

(please specify)
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3. Would you buy a new local cookie from a store that only sells cookies?

Yes

No

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4. What is a fair price for a freshly baked 3” diameter cookie in a unique flavor that you will not find anywhere else?

Under $1 each

Between $1 and $1.50 each

Between $1.50 and $1.95 each

$2 or more each

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5. What time of day would you most likely buy a cookie from a store that only sells cookies (mark up to three of the
following):

Before work/school

Morning

Lunchtime

Afternoon

After work/school

Evening

Late Night

Other

(please specify)
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6. In which of the following locations would you most likely buy a cookie from a store that only sells cookies?

Near the grocery store

At the mall

On vacation

Downtown

Near the high school

In my neighborhood within walking distance

Other

(please specify)
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7. In your mind, what is a good color for the logo of a cookie store, something that says ‘fresh’ ‘warm’ and ‘tasty’
when you see it?

Pink

Red

Peach

Orange

Green

Blue

Violet

Brown

Other

(please specify)
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8. Which of the following names for a cookie store would be most appealing to you?

Gingerbread: A Cookie Store

Gingerbread: Family Recipe Cookies

San Diego Sugar Cookies

Tierrasanta Cookie Company

Kearny Mesa Cookie Company

One Good Cookie

Damrauer's Cookies

Other

(please specify)
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9. What suggestions would you offer to someone who wants to open a unique cookie store in your area?

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10. Approximately how much do you spend or budget in one week for sweets like
cookies, ice cream, chocolate, or candy?
Zero

$5 or less

$5 to $10

$10 to $20

$20 or more

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