Business Plan for Frozen Yoghurt Company, Research Paper Example

Executive Summary

This paper is based on the business plan of opening a new small shop ‘Frozen Yoghurt’. The company is based in London. The name of the Company is ‘YOG Frozen Yoghurt’. The office is located in Shopping Center of Brent Cross, Charles Prince Drive, UK, and London.  The company has a medium serving one size of classic flavor which comprises of toppings. These include using the machines of 2 frozen yoghurt like the Tylor machine. The selling price of the frozen yoghurt is 3.50£. The paper includes the sales level and expected growth of the company plus the breakeven point. The business plan also show the selling price in comparison with the competitors of the industry. One the other hand the stock levels, the inventory and the production goods used to meet the demand of the customers will also be discussed. The production input used like the labor, production overheads and the materials used in making the frozen yoghurt will also be explained in the excel sheet. The fixed assets like purchases, useful lives, depreciation expense will also be shown. The initial investment require to startup the company will also be explained. The additional finance cost will also be included in the financials. The additional funds will be borrowed from the banks and the creditors. The company is founded by 4 sponsors from the Regent University. YOG Frozen yoghurt is a treat which is non-frozen and has an increasing demand across the Europe, UK and other countries. The total market potential of this industry is £ 4 million in the year 2012 (Dan Columbine, food manufacture). As there is a rising demand in the frozen yoghurt, the recent food service sector have estimated that the sales of the frozen yoghurt are expected to increase by £ 35-40 Million in the coming years. The reason for this incline in the sales and demand of frozen yoghurt is that it is a healthy substitute for the ice-cream. It is both delicious, affordable and healthy. Our company ‘Yog frozen yoghurt’ shop will allow the customers to help satisfy their demand with a sweet and cool served frozen yoghurt served with toppings as per their satisfaction and requirements.

Company Profile

YOG Frozen yoghurt is a treat which is non-frozen and has an increasing demand across the Europe, UK and other countries. The total market potential of this industry is £ 4 million in the year 2012 (Dan Columbine, food manufacture). As there is a rising demand in the frozen yoghurt, the recent food service sector have estimated that the sales of the frozen yoghurt are expected to increase by £ 35-40 Million in the coming years. The reason for this incline in the sales and demand of frozen yoghurt is that it is a healthy substitute for the ice-cream. It is both delicious, affordable and healthy.

Product

YOG Frozen yoghurt is a treat which is non-frozen and has an increasing demand across the Europe, UK and other countries.

Target Market

The target market of the company comprises of tourists, local market, both genders, children’s and all age group people especially family. However, majority of the market segment lies between the ages of 18-24 as they are more likely to eat frozen treat anytime in the day in comparison to the other age groups.

Promotion and Pricing

The company has identified a strong marketing team with a vast skills in the industry to achieve the following. Advertising its services through various vocational and tourism magazines, media and various sport activities and games. Create a vibrant and attractive website. It also intends to partner with musicians and sports men/women to feature on the website. To carry out Email campaigns through e-brochure that will disseminate information to new clients. Create online and cell phone competition that will reward winners with good money packages.

Price Strategy

In order to maximize company’s returns, it believes that a strong marketing service will increase sales. It will also implement strategies to reduce operating costs.

Sales Forecasts

From the strategies that the company intends to unveil and implement, the management has projected the following sales returns for the next four years.

Startup Financial Cost

According to the franchise.com, the average operating of a frozen yoghurt franchise costs around £ 20,000. So, the initial amount of this business is 18,471 Pounds as shown in excel sheet.

Financial Plan

An assessment carried out by experts professionally versed in the financial sector, because he knows that it is always important to pay attention to the intangible aspects.  For example, investing in a particular enterprise clearly promises investor benefit.  But in the study of the situation at the enterprise may find that your investment will have a negative impact on the opinion of workers or residents of the region where this company operates.  The following situation – when assessing the cost-effectiveness of investments investor understands that this option will pay all his costs and will benefit.  But a comprehensive study of the problem shows that the project is contrary to the strategy that the investor has chosen to develop their own business.  So, invest their money here will not be employed.

Despite the fact that in the analysis took into account technical and economic factors completely absent marketing and financial evaluation. With regard to methods for assessing the cost-effectiveness of investments, used until recently only in countries with market economies, and now throughout the former Soviet Union, the situation is as follows.  Before you implement any investment project is a business plan based on several standard methods.  These schemes are developed by major international organizations and guided them to the company with a certain specific activities.  Each organization uses certain techniques based on global goals and targets, facing her leadership and working staff. The company’s investment requires £ 18,471 funding. The company intends to raise these funds through external funding.

Projected Profit And Loss

After initiating its activities, it is expected that business profits will increase by 14%. This will be caused by an increase of 12% in sales volumes that is largely contributed by the growing frozen yoghurt industry in UK. As can be seen in Excel sheet. The Sales are expected to grow by 23% in second year and 50% in the 3^rd year.

Break – Even analysis

The table below shows the break-even analysis of the company together with two main assumptions as shown in excel sheet. It is assumed that monthly variable cost will be 10% due to the cost used in hiring junior employees including fees and charges of the interviews. The costs will also be inclusive of the implementation of the quality management system. Monthly fixed costs will increase due to the purchases and installation of the frozen yoghurt machines known as Tylor machine. Other costs include the franchise fee, store construction and design, Furniture, fixtures and the tenant improvement allowance.

Conclusion

YOG Frozen Yoghurt Company offers a delicious and healthy substitute for the ice-cream and that is a frozen yoghurt. The company is newly established in January 2015 and it has captured the frozen market industry. Around 31% of this capital will be raised through equity financing from the new investors while 69% will be funded by the company owners. From this investment, it is expected that the company will achieve its targeted objectives through the projected cash flows in the pro forma cash flow statement. Potential investors are therefore invited to be part of this excellent frozen yoghurt company in London, UK.

References

Alsharji, Adel, and Syed Zamberi Ahmad. “Yogen Früz: it’s all about ü.”Emerald Emerging Markets Case Studies 3.7 (2014): 1-9.

Boynton, Robert D., and Andrew M. Novakovic. “Industry Evaluations of the Status and Prospects for the Burgeoning New York Greek-style Yogurt Industry.” Program on dairy markets and Policy Research Paper Series, Research paper number RP13-01 (2013).

Briones, Adriana, et al. “Pinkberry Business Plan.” (2012).

Phelan, Sylina. An Entrepreneurial Analysis of the Specialty Food Market: Starting Your Own Custom Bake Shop. Diss. University of North Carolina Wilmington, 2012.