A new trend to really made good and legitimate money was introduced into Nigeria not too long ago. Many people would like to use Plaster of Paris on their houses but on the other hand do not know how easy it is to produce the ceilings. P.O.P ceilings are special ceilings made from Plaster of Paris, and many people think that they are more beautifying than other ceilings. This is because you can have diverse designs of them and they could be more easily maneuvered for better aesthetic appeal. In addition Plaster of Paris ceilings are fire resistant and relatively lighter, thereby lessening the load on the beams and roofing structure of the houses.
Moreover, a prospective entrepreneur can actually produce the ceiling himself, as it is quite an easy process. There are other casting that could be made locally from P.O.P powder though, some of these others include polyurethane cornice, rosace and niche, columns & pedestals, doors and windows surround, etc but some of these might not be as easy, cheap or straight forward as ceiling tiles, and that is why it’s advisable to start that way.
Plantain Chips production
After removing the skin, the unripe fruit can be sliced (1 or 2 mm thick) and fried in boiling oil, to produce chips. Plantain Chips, if they are made of green plantains that taste starchy are called potato chips. If the chips are made from sweeter fruit, they are called ‘Banana Chips. They can also be sliced vertically to create a variation known as Plantain Strips. Just make sure that you put your label on your product for branding purposes. The more you produce, the more money you make, because majority of Nigerian love plantain chips.
Liquid Air Freshener Production
Liquid air freshener is a product that plays a strategic role in homes, offices, etc. It is demand cut across sex age groups and social strata. This product can be prepared in a one-room apartment since all the chemicals involved are user friendly. Machines are also not required when producing in small or medium scale. All the chemicals required are locally available all year round. It is also heartwarming to know that the production technology is a very simple one.
Even an illiterate housewife can churn out good quality air freshener if well instructed. This product that has 80% water content and a high profit yield. There are high qualities and well-designed plastic containers that will give the product like this an irresistible finishing touch and they are all locally available.
Production Of Toilet Rolls And Paper
It is time Nigerian businessmen and potential investors became aware of the commercial viability and profitability of toilet rolls production. Toilet paper rolls are used for sanitation purposes in big hotels, educational institutions, cinema houses, fast food centers, water closet toilets etc. Most people even prefer it to handkerchief due to its relative cost advantage. All Nigerian men, women and children consume toilet rolls. It demands is influence by population explosion, rapid urbanization and social awareness. Our local production is made more attractive because the raw materials are available locally. The machines can be fabricated locally.
You can set up the project without initially acquiring the machines, while you make a lot of money. The raw materials include jumbo reel, glue, paper; packaging materials include printed labels and nylon. If you are buying the machine, the machines required are core gluing machine, jumbo rewinding machine, core cutting machine and band saw cutting machine.
Small Business Ideas: 15 New Innovative Product Ideas to Sell in Nigeria this 2013
Setting up A Bakery
The amount require to set up a Bakery is directly related to the cash at hand, if you want to start small you can get a small parcel of about half a plot or a full plot of land and build a clay oven. It will cost you about N400, 000 to start, while it will cost between N4,000,000 (four million Naira) to N5, 000,000 or more to start on a large scale. It is very important to engage the services of skill labour that knows the ins and outs of bread baking.
You can operate 2 gang i.e. 2 shifts which is day and night. You will also need 2 apprentices who will provide all the necessary assistance during the baking process. You can also then enter a contractual agreement on how they will be remunerated; either on daily basis, weekly or monthly. But in some cases, the laborers are paid between N500 to N1000 per bag of flour produced in every shift. Some laborers produce as much as 10 to 12 bags in their shift. Proper supervision is very important, as you must be vigilant, so that a bag of flour must not fall short of expected amount of quantity of bread.
Paint Production Business
Paint production business is a very lucrative business and its profit potential is very high. Going by the number of houses and other structures in the country, it is certain that you can never run out business if you go into paint production. Paint is an essential commodity needed for painting houses, offices, etc and the demand is on the increase. There is hardly any house that is not painted these days, so the market is there for you.
What is left for you to do is to penetrate and capture the market by producing good quality paint and marketing it very well. You can start your home-based paint production with as little as N100,000. The raw materials are readily available in the Nigerian market. You also don’t need any expensive equipment to produce paint; you only need some buckets and your two hands to do the mixing.
Soya milk Production
Soymilk is a nutritious and refreshing drink produced from soya beans which is a leguminous grain. It is creamy and whitish in colour, with a neutral taste. It is a good dairy milk substitute. Soya beans, the major raw material is available everywhere in Nigeria and it is affordable. You can start small with between N50,000 – N100,000. Soya milk is commercially appreciated, but not many investors are tapping into it. Majority of soya milk in the market are imported. This is an opportunity for wise investors.
Toilet Cleaner Production
Toilet Cleaner is a chemical mixture for removing dirt and stains on tiles, floor and for cleaning toilet. Its domestic use includes stains and dirt removal from toilet, bathroom and kitchen. It is also used for scrubbing. Industrially, toilet cleaner is used for removing grease, stain and chemicals on the floor and for washing toilet and tools. You can start with as little as N50,000. Toilet Cleaner is very easy to produce; all the chemicals and raw materials for production are readily available locally and affordable. This business can be done anywhere by anyone.
Production Of Deodorant/Air Freshener
Air fresheners are consumer products that mitigate unpleasant odours in indoor spaces. They are used everywhere – rooms, toilet, offices, shop, cars, eateries, canteens etc. Air fresheners are very affordable and both the poor and the rich use them. The raw materials, meaning the chemicals to produce deodorant/air freshener are available locally everywhere and are cheap. You can start production with between N45,000 – N60,000.
Small Business Ideas: 15 New Innovative Product Ideas to Sell in Nigeria this 2013
Wine Production
Wine is an alcoholic beverage, typically made of fermented grape juice or juice of other fruits. Wine is a popular and important beverage that accompanies and enhances a wide range of cuisines from the simple and traditional to the most sophisticated and complex. Wine is enjoyed by everyone and the market for it is huge. This is an opportunity for wise and smart investors or businessmen because 95% of the wine consumed in this country is imported.
Polythene/Nylon Bags Manufacturers
Polythene/nylon bags are made from polymer of high and low density respectively. If you have been looking for a business you can start with little capital with huge turnover, this is the best business opportunity for you. The demand for polythene shopping bags is on the increase and you should be part of this boom as a manufacturer or a supplier. Polythene shopping bags are not only used for packaging goods, they are also used by Banks, Eateries, Supermarkets, Pharmaceutical stores, Fashion houses, Textile stores to mention but a few; and the profit potential in this business is enormous.
Ice Cream Production
Ice Cream is a nutritious beverage taken by children and adults alike. It contains nutritive carbohydrate as sugar, fats, protein and minerals etc. Ice cream is enjoyed by both adults and children especially in the cities. It is however, consumed any time but more in the dry seasons. Ice cream is taken by almost everybody due to its sweet taste.You can start with less than N70,000 and the raw materials are readily available in the Nigerian market. And the profit margin is also high and that makes it a very lucrative business.
Foodstuff packaging
The Demand for African foodstuff in Europe and America is rising due to the increasing number of Africans, particularly Nigerians who sojourn to these Countries for better life. It is estimated that 20 million people of Nigerian descent reside outside Nigeria, with the majority living in the United Kingdom and the United States. This is a great opportunity to sell to this category of people. My research in this business sector revealed that the few exporters of African foodstuff cannot meet with the demand of Nigerians because population is increasing everyday in US and UK. You can package any of Nigerian foodstuffs like egusi, Ogbono, Garri, Kilishi, vegetable, and you can package in 1kg or 2kg bags and penetrate the local or international market
Zobo fruit drink production
Zobo is derived from a multidimensional plant whose botanical name is sorrel. In some places like Minna it is called “Sobo rodo”, while is called “Zobo” rod in some places in Gombe and Bauchi. The raw materials for zobo production are Sorel red dried plants, treated water, Honey or Glucose syrup, Citric acid, Flavors, Preservatives, Vitamin C. The equipment needed are Boiler or heater, Liquid fitters, stainless steel liquid mixer, weighing scale, graduated plastic or stainless buckets, storage tanks, Microscopes, Filling machine (Manual or automatic), batching machine, PH Meter, Measuring cylinder,, Overall and cups, laboratory wares. It is advisable to package it in plastic bottles. It can also be made available in various designs and sizes, or you can also package it in Nylon sachets of smaller sizes. You can print your details such as Brand name, composition, Type of fruit drink, Batch number, expiring dates and storage instructions.
Felinna Inch Los Lotion adalah satu produk yang mampu membuang lemak-lemak berlebihan yang ada dalam badan dan dalam masa yang sama mampu memperlihatkan badan yang SLIM ke atas pengamal produk ini.
Dalam masa 3 hari anda sudah boleh melihat kesannya. Memang sangat SUPERB.
Secara asasnya ianya adalah losyen yang disapukan pada bahagian badan yang ingin dibuang lemaknya. Contoh pada bahagian perut maka anda sapu bahagian perut. Jika bahagian peha yang ingin dikuruskan maka anda sapu bahagian peha.
Memang mudah untuk menggunakan losyen Felinna Inch Loss ini. Anda hanya perlu sapu, sapu dan sapu sahaja.
Yang mudah lagi anda hanya perlu sapukan pada bahagian yang ingin dibuang lemak sahaja 2 kali sehari iaitu pada waktu pagi dan malam.
Seperti yang saya katakan anda tidak perlu :
Minum / makan ubat.
Bersenam ( pergerakan seharian anda sudah memadai).
Berlapar menahan makan.
Yang paling penting tidak menyakitkan… (ini kerana losyen ini tidak seperti losyen lain yang sangat pedih rasanya bila disapu di atas kulit – Felinna Inch Loss TIDAK MEMEDIHKAN KULIT).
Namun begitu jika anda rasakan dengan menyapu losyen ini sesuatu yang sukar saya tidak tahu lagi apa yang paling mudah di dunia ini.
Losyen ini sangat harum baunya. Tiada siapa yang tahu anda sebenarnya sedang menggunakan produk pelangsingan badan dan sedang membuang lemak-lemak badan anda.
Anda tidak perlu pun memperuntukkan masa yang khusus bagi membuang lemak badan yang berlebihan itu… hanya gunakan masa seharian anda sahaja.
Waktu pagi sedang anda bersiap-siap untuk ke tempat kerja anda sapu losyen ini dan terus ke tempat kerja anda. Ditempat kerja losyen ini akan bertindak membakar lemak berlebihan.
Anda pulang dari kerja lakukan kehidupan seperti biasa dan sebelum tidur anda sapu lagi losyen ini dan losyen ini akan bertindak sekali lagi sewaktu anda sedang tidur.
Nah… sememangnya ia tidak akan mengganggu aktiviti harian anda dan yang BAGUSnya tiada siapa tahu pun.
Tahu-tahu dalam tempoh sebulan dalam tak sedar rakan-rakan anda akan pelik melihat bagaimana anda boleh menghilangkan berat badan anda dan kelihatan SLIM.
Rahsia kehebatan Losyen Felinna Inch Loss ini terletak kepada dua perkara iaitu FIZIKAL dan SPIRITUAL.
Secara fizikalnya losyen ini mengandungi pelbagai jenis herba serta bahan semulajadi yang terpilih. TIADA BAHAN KIMIA BERBAHAYA digunakan dan kesemua bahan-bahan ini sangat-sangat sesuai untuk bertindak menghilangkan lemak badan yang berlebihan seperti :
Ekstrak Aloe Vera
Sodium Edta
Triethanolamine
Acrylate
Iris Florantina Extract
Glycerine
Capsaicin
Fragrance
Methylparaben
Ethylparaben
N-butylparaben
Propyparaben
Isobutylparaben
Air tapisan Reverse Osmosis
Ianya telah diformulakan dengan formulasi yang disahkan oleh Kementerian Kesihatan Malaysia [KKM. No. KKM :NOT120101613K]. Secara SPIRITUALNYA, produk ini telah dibacakan dengan ayat-ayat Al-Quran 30 Juzuk di Maahad Tahfiz di Bukit Mertajam, Pulau Pinang.
Oleh itu dengan gabungan bahan-bahan yang terpilih yang berkesan, yang diformulasikan dengan formulasi yang berhati-hati ditambah suntikan bacaan Al-Quran menjadi losyen Felinna Inch Loss ini satu produk yang hebat yang tiada seumpamanya di pasaran.
Fresin Fries is a locally owned fast food outlet that will be positioned as an international franchise through our creative approach to the company's image and detail presentation. Fresin Fries will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. Fresin Fries is the answer to an increasing demand for snack-type fast food, to be consumed while window shopping and walking around inside a shopping mall.
In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. Singapore, a city state, is now becoming the model metropolis for Asia's new economic boom. With more than 11 million visitors yearly, mainly from neighboring countries (Malaysia, Indonesia, Thailand and the Philippines), Singapore's retail sector is the strongest in the region.
Our main priority is to establish one outlet in a crowded mall, preferably in one of prominent shopping malls in Singapore. Later, our effort will be a further development of more retail outlets in the surrounding area.
This plan is prepared to obtain a location for the initial launch of this concept. Additional financing will need to be secured for the two subsequent outlets, anticipated in month 13 and early in year three. The financing, in addition to the capital contributions from shareholders, will allow Fresin Fries to successfully open and expand through year two. The initial capital investment will allow Fresin Fries to provide its customers with a value-driven, entertaining experience through the creativity of its founders.
Fresin Fries will entice youngsters to bring their friends and family with our innovative environment, fresh-cut Belgian fries, and selection of unique signature dipping sauces.
Please note that all tables are in Singaporean Dollars (1 USD= S$1.60)
1.1 Objectives
To establish a presence as a successful local fast food outlets and gain a market share in Singapore's fast food industry.
To make Fresin Fries a destination spot for mall-goers.
To expand into a number of outlets by year three, and sell the franchise to neighboring metropolitan cities, such as Jakarta, Kuala Lumpur, Bangkok and Manila.
1.2 Mission
Our main goal is to be one of the most successful fast food outlets in Singapore, starting with one retail outlet located inside a major shopping mall as a "market tester."
Fresin Fries will strive to be a premier local fast food brand in the local marketplace. We want our customers to have the total experience when visiting our outlet(s) and website as they will learn about this fascinating new "pop culture." We will sell merchandise from pre-packaged sauces and t-shirts, to potato cutters, all with our official brand attached to them.
Our main focus will be serving high-quality food at a great value.
1.3 Keys to Success
To succeed in this business we must:
Create a unique, innovative, entertaining menu that will differentiate us from the rest of the competition.
Control costs at all times, in all areas and implement a conservative approach to growth policy. Although, we provide more than enough fund to open more than one outlet, we want to be on the safe side of the business.
Sell the products that are of the highest quality, as well as keeping the customers happy with all of our product categories from food to store merchandising.
Provide 100% satisfaction to our customers and maintaining the level of excellent services among other competitors.
Encourage the two most important values in fast food business: brand and image, as these two ingredients are a couple of main drivers in marketing communications.
Get access to high-traffic shopping malls near the target market.
Promote good values of company culture and business philosophy.
Company Summary
What is Fresin Fries? Fresin Fries sells gourmet fries in a cone with a choice of sauce. We use the concept of Belgian Fries, where the fries are all made from fresh potatoes and fried twice. Our outlet also provides excellent and friendly customer service to support the ambience of fun, energetic and youthful lifestyle.
Youthful and fresh surroundings We will imitate successful establishments, such as Jamba Juice and Starbucks, which represent the majority of our core target market, between 18 to 35 years of age. Our store will feature display cooking of our featured Belgian Fries from cutting to frying. Our customers will also be able to read our in-house brochures in regards to all knowledge about Belgian Fries and our featured sauces. Our store will be decorated with fast food setting, such as a bright counter and display menu on the wall.
Quality food Each store will offer nothing but freshly fried Belgian fries, sandwiches and variety of unique blend sauces, all served with old-fashioned home-style care.
Open everyday Our store is open everyday from 10 am to 9 pm.
Variety, variety, variety A different selection of sauces will be featured every three months and we will also change our Italian soda flavors to accompany our fries.
2.1 Company Ownership
Fresin Fries is a privately held company. It will be registered as a Limited company, with ownership 25% - Guy Fry, 25% - Sam Sauce, 25% - Carl Cone, 25% - Harry Hip.
Guy Fry and Sam Sauce have more than 10 years of experience in the food industry. Both are currently employed as Corporate Staff of Company A.
Sam Sauce holds an MBA degree from University V. A true entrepreneur by heart, his latest entrepreneurial project is a diamond store in the heart of Singapore.
Guy Fry holds a BA degree in Graphic Design from the Academy of Arts. His projects are widely varied from product design to brand development of several reputable companies.
Harry Hip holds a MS degree from Institute Y. He completed several projects and served as project manager for multi-national companies in Singapore.
Carl Cone holds a BS degree from University Z, majoring in Management and Information Technology. Prior to his return to Singapore, he has held several management positions in a U.S.-based IT company.
2.2 Start-up Summary
The retail outlet will be rented at one of the target location shopping malls. Our preference is Space A, for the main reason of reaching larger traffic.
Startup requirements will be financed through owner investments.
Start-up Requirements
Start-up Expenses
Kitchen and Fixtures
$21,600
Furniture and Interior
$16,500
Legal
$3,000
Rent
$15,000
Packaging and Stationary
$8,500
Contingencies
$4,200
Total Start-up Expenses
$68,800
Start-up Assets
Cash Required
$50,000
Other Current Assets
$0
Long-term Assets
$0
Total Assets
$50,000
Total Requirements
$118,800
2.3 Company Locations and Facilities
Fresin Fries locations will range in size from 50 – 70 meter square and will seat from 15 – 25 guests. Our first location will be on the larger end of this range. The location will feature its own originality in merchandise display and other brand building attributes. We will equip the outlet with modern furniture and aim for cleanliness and an open feeling. We are currently looking at several possible sites in shopping malls along Orchard Road.
The space selection will be chosen based upon the following criteria:
Community size: minimum of 800,000 people within a radius of 8 kilometers.
Tourist destination.
Easy access.
Large percentage of teenagers in the community.
All of these qualities are consistent with Fresin Fries' goal of providing a top quality fast food experience. We want "word-of-mouth" to be our best form of marketing, where our customers value our brand as something exciting and cannot wait to tell their friends and neighbors.
Fresin Fries will directly compete with several fast food joints inside the chosen shopping mall, including Tori-Q (yakitori specialist), Bee Che Hiang (chinese sausages), Bread Talk (one of the most successful bakery franchises), and Pizza Walker (locally owned pizza chain).
Products
We want to focus only on selling fries. Alcoholic drinks will not be sold in our outlet, as Fresin Fries promotes a healthy and positive Singaporean lifestyle. Instead, we will offer Italian Soda to complement the fries.
In promoting the Fresin Fries lifestyle, we will offer various merchandise with our logo and colors, from hats to t-shirts to potato cutters to our signature sauces, so that our customers can enjoy Fresin Fries at home. Our signature sauce is exclusively manufactured by Company Q. They can be also purchased at selected retailers.
3.1 Product Description
Fresin Fries primarily sells fries and our unique dipping sauces. Main products sold are: Belgian fries, Italian sodas and corporate merchandise.
Belgian-style fries are available in large (choose 2 dips), small (choose 1 dip), with addition of garlic Fresin (add S$0.25).
The dips for Belgian style fries can also be served with sandwiches; they are available in more than 20 flavors:
Pesto Mayo
Satay Sauce
Teriyaki Sauce
Thai Chili Ketchup
Creamy Wasabi Mayo
Roasted Pepper Mayo
Lava Cheese
Black Pepper Sauce
Curry Ketchup
Barbecue
Jalapeno Ketchup
Caribbean Islands
Traditional Sambal
Korean BBQ
Hot Chili Sauce
Garlic Dip
3.2 Competitive Comparison
Fresin Fries has several advantages over its leading competitors:
Unique "fusion" concept of dipping sauce.
We expect a high degree of enthusiasm and offer a fun store with friendly staff, that reflects the company's youthful and energetic culture.
Supporting merchandise items that support the company's brand building.
Our fried potato is made 100% fresh, compared to most fast food outlets that use frozen fries.
Our dipping sauce is also made fresh without preservatives.
Our innovative packaging will be more entertaining than our competitors; a single cone with a cup reserved for dipping sauce.
Company
Clean
Value
Merchandising
Hang Out
Simple
Fresh
Cool
Pop Culture
Fresin
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
McDonald's
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
KFC
Yes
Yes
No
Yes
No
No
Yes
No
Tori-Q
Yes
Yes
No
No
Yes
Yes
No
No
Roti Boy
Yes
Yes
No
No
Yes
Yes
No
No
Bread Talk
Yes
Yes
Yes
No
Yes
Yes
Yes
No
Bee Che Hiang
Yes
Yes
Yes
No
Yes
Yes
No
No
Pizza Walker
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
3.3 Sales Literature
Fresin Fries will use advertising and sales programs to get the word out to customers.
2,000 color brochures to be distributed throughout destination shopping mall and facilities: in-store, cinemas, area eateries, information during the grand opening in January 2005.
Half page magazine reviews in Singapore's lifestyle magazines that advertise the presence of the outlet.
3.4 Sourcing
Fresh potatoes will be delivered weekly by our distributor directly from the U.S. We also have an agreement with Company Q to exclusively manufacture our signature sauces, and all of our merchandise will be printed and produced by our partner's office in China.
3.5 Sales Programs
Each opening of Fresin Fries will have, more or less, the same marketing mix as the others. Below are the programs that we will develop to open each location.
Grand Opening
Each new outlet will have outdoor signage as soon as possible. We want the signage to be supported by banners before the opening.
Point of Purchase
We will use "tray toppers" to explain the concept and philosophy of Fresin Fries. We will also sell gift certificates, announce future job openings, and possibly mention franchise opportunities.
Direct Mail Piece
A stand-alone piece, folded, will be produced in full color on heavy weight paper. Inside will be all the important details of Fresin Fries, explanation of our menu, prices, house of operation and a locator map.
3.6 Future Products
For now, we will focus on selling fries and signature sauces. However, as we grow further, we will add new categories to our menu, such as Belgian Sandwiches and Buffalo Wings.
In the future, our growth strategy will be offering the franchise of our brand to food entrepreneurs in the region. The success of Bread Talk franchising in Indonesia is the best example on growing globally.
Value Meal
Sales of Fresin Fries will not only generated from the selling of its famous Belgian Fries, but also will be generated by the conception of an innovative package menu called the "value meal." It primarily consists of a combination of our featured Belgian Fries, sandwiches and Italian soda at greater value than selling at individual items. Further customization could be done by selling a bigger size of fries called "Uber Fresin" to attract price sensitive customers.
Private Parties
Brochures and handouts will explain that we can handle banquets and private parties, in addition to our brochure that will list our daily entrees.
Market Analysis Summary
Consumer expenditures for fast food in Singapore rose during the end of the year 2000, followed by the recovery of Singapore's economy. The increasing number of new establishments such as fast food franchises, fancy restaurants and gourmet bakeries around Singapore has shown a significant growth in this sector. Food spending is around 56% of total consumer expenditures in Singapore, and consumer spending on leisure and recreation made up of 13% of total consumer spending.
A much broader appeal exists for weekend slots because those are the days when most of our core target market enjoys the mall going activities.
Age - Youngsters, single, currently enrolled in college and high school.
Family unit - We will also appeal to families (young families) with children.
Gender - We will target both sexes, with a slight skew for males due to their lower attention to dietary concerns.
Income - We will appeal to the medium income individuals and to all in the lower medium income bracket.
Our concept will have very broad appeal. It is our goal to be the hip destination for fast food cravings.
According to a recent public survey of people 15 - 45 years old, 80% of those interviewed like fast food. 90% of them like fast food on a regular basis, and 10% of them claimed that they like fast food "very much," or "love" fast food. The survey also provided the following particular reasons for the increasing popularity of fast food:
People have 52 weekends and three long holidays a year. Most of Singaporeans love to window shop, and when they do strolling around the shopping district, they need a quick bite to accommodate their activities.
White-collar workers in offices have stopped bring lunch, and enjoy chicken, hamburger, pizza or other fast food joints in the vicinity.
Parents give more money to kids and students to buy lunch. Fast food is naturally their first choice, because of the brand building effort that heavily targets their age group.
Eating out still remains as Singaporeans' common habit of life. They do not perceive fast food is a luxury, and they enjoy it by bringing their family, especially if they have smaller kids, in the environment of the western-style fast food outlets.
4.1 Market Segmentation
We are targeting young Singaporeans as our primary market. Orchard Road is the place to meet and hang out after school. Due to heavy extra-curricular activities among Singapore's youth, it is common for high schoolers to have lunch inside shopping malls, and not at home. They tend to flock to fast food joints inside shopping malls across Orchard Road.
Our secondary market segment is the "Working Singaporeans." With so many shopping malls in the vicinity, Orchard Road is the haven for shoppers and job seekers alike. In the new Paragon Shopping Centre, there are more than 8,000 workers currently working as sales persons and boutique staff. There are more than 10 major shopping malls across Orchard Road, including Ngee Ann City, the biggest shopping mall in the nation, employing more than 50,000 workers.
Lastly, Orchard Road is also the destination for tourists staying in the area. The Meritus Mandarin, Crown Prince Hotel, the Hilton, and Popular Hotel are a few of the biggest accommodations in Singapore. Tourists will stroll Orchard Road, hunting for the latest trend in fashion and have no time to stop for a full meal during shopping. Fresin Fries is the alternative for a quick bite while shopping the fancy boutiques in the area.
Market Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
Potential Customers
Growth
CAGR
Young Singaporeans
15%
5,000,000
5,750,000
6,612,500
7,604,375
8,745,031
15.00%
Working Singaporeans
10%
3,000,000
3,300,000
3,630,000
3,993,000
4,392,300
10.00%
Tourists
20%
3,800,000
4,560,000
5,472,000
6,566,400
7,879,680
20.00%
Total
15.52%
11,800,000
13,610,000
15,714,500
18,163,775
21,017,011
15.52%
4.2 Target Market Segment Strategy
Fresin Fries intends to cater to the bulk of teenagers and youngsters in Singapore. We have chosen this group for several important reasons. It is our goal to be "the extraordinary fast food place" and we believe that the age group from 15 to 25 is the primary age where brand building efforts could take place. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets.
Our secondary target is between the ages of 25 and 37, which are a heavy lounge/restaurant user group. They are more flexible in budgets and seek more than a value/price relationship.
Our lunch strategy is dual purposed. First, we are featuring fresh fries to fill Singapore's craving for fast food as most ideas of lunch is a quick bite not a heavy meal.
Second, we want to keep the price point at lunch as fair as possible to keep us in competition with other fast food outlets. At S$4.00 for a medium size fries, we are only slightly above the segment, but we offer much more excitement than the rest of the competition.
4.2.1 Market Needs
Fresin Fries sees our targeted market group as having many "makan" (eating) Singaporean Dollar needs. A recent Consumer Trend and Analysis by Euromonitor identified the following needs among our target markets. Our core group:
Wants variety and flavor in its food, preferably something fried
Looks for speed of service
Wants an entertaining and fun experience
Insists upon a clean, friendly, and attractive environment
Adopts a global lifestyle
Is computer literate
Enjoys eating out
Has an active lifestyle
Comes from various ethnic backgrounds
According to a GAIN Report published in 2000, potatoes are the second largest commodity of US exports to Singapore after fresh fruit, valuing almost USD $13 million per annum. This is caused by the increasingly younger demographic and rising incomes throughout Singapore that have led to lifestyle changes that are influencing consumer purchases, food, and entertainment choices. Some changes taking place include a larger professional class with more working women, which means greater disposable incomes.
4.2.2 Market Trends
In the past, Singaporeans preferred Western chain restaurants. This was the time when KFC, McDonald's, Long John Silver's and Pizza Hut were dominating most of the chains. But the trend seems to have shifted in the last decade, with the success of the locally grown brands, such as Bread Talk and Bee Che Hiang. Many of these local brands grew to become giant franchises that dominate the Southeast Asia region. For instance, Bread Talk controls 55% of Indonesia's bakery market.
The key to success for these foreign chains was mainly due to the popularity of Singapore as tourist destination for these countries. Tourists are the strongest "buzzer." Usually after they went back from vacationing in Singapore, they told friends and families about new things in Singapore, including new shopping malls, new boutiques, new restaurants, and new fast food joints. The fascination of Asian tourists coming to Singapore has positioned the city itself as an aspiration to modern life in the region.
Many local entrepreneurs camouflaged their retail stores as an international brand in accordance to what they sell. For instance, there is a local entrepreneur who created a Japanese name to sell yakitori (Japanese BBQ meat skewers), and there is a fashion boutique named after an old Italian movie.
4.3 Industry Analysis
Despite the prolonged effects of the Asian Economic Crisis followed by political turmoil up to mid 2001, Singapore's food service industry witnessed growth over 2000/2001 at 4 - 5% in terms of units and transaction (Euromonitor). Much of this growth was contributed by the cafes/bars, fast food, and food retail sectors, whose wide appeal amongst a young population, for whom time is of a premium, led to high levels of growth. This growth is underpinned by market demand and lifestyle changes, such as seeing eating out as part of trendy lifestyle.
Entry of major multi-national food service operators into major shopping destination in the late 1980s until the 1990s led to growth in competition in the marketplace, mainly from fast food chains. This stimulated the rise in the number of fast food units, both of international and local chains, that started in the early 1990s. Although there was a slowdown during the economic crisis in 1998, the food service industry recovered faster than others, particularly during 2000 and 2001. Recent bombing tragedies have also proven that negative effects on this sector are moderately short-term.
Franchising became popular in the food service industry through the introduction and entry of multi-national food service brands, primarily U.S.-owned enterprises, such as KFC, Pizza Hut and McDonald's. Currently, there are many local chains that have also experienced growth by applying this system to their operations.
4.3.1 Trends in Food Service Retail
According to government surveys, Singapore's spending on "eating out" is continuing to increase. Spending on cooked food as a percentage of total average food-spend reached 55% in 1998. The growth in spending in the food service sector arises from a number of factors:
Increased affluence amongst Singaporeans, especially those under the age of 40 years.
Increases in the number of expatriate residents, which has more than doubled since 1988.
Increased convenience-seeking amongst younger Singaporeans who live in a hectic city today compared to the much slower pace of life that existed 20 years ago.
Over the past 5 years, there has been a general upgrading in the food service sector which has seen the establishment of more air conditioned food centers (food courts) that are considerably cleaner than the traditional hawker markets. At the same time, increased investment from foreign and local businesses in the sector has also produced an increase in the numbers of:
Foreign chains, including chains such as Outback Steakhouse.
The competition in this arena is the fiercest in all other metropolitan areas in SE Asia. Singapore is a compact city, but has a lot to offer. Usually there are a minimum of two of the same outlets within a radius of less than 300 meters. For instance, Bread Talk opens one outlet inside the Ngee Ann City Shopping Centre and another just across the street inside the Far East Plaza Shopping Centre. It is quite common for retailers to implement this kind of strategy, due to the high volume of people strolling around the main area of Orchard Road.
Another reason is because many retailers do not want to lose sales opportunity, as the competitors are offering substitutions and similar product categories. This phenomenon has made Singapore the best place to shop. If you just missed Häagen Dazs waffle at CK Tang Shopping Mall, there is another Häagen Dazs across the street at the new Paragon Shopping Centre.
4.3.3 Main Competitors
Our main competitors in this segment are any food outlets within the 300 meter radius along the Orchard Road. In our location, there are Tori-Q, Pizza Walker, Starbucks, Bread Talk, and Rotiboy.
Tori-Q Tori-Q is locally owned franchise who sells Japanese BBQ skewers. Established in 1998, Tori-Q had expanded its operation into neighboring countries, Indonesia, Malaysia, and Thailand. Tori-Q is popular among local teenagers as it offers fast service to its customers. Commonly, Tori-Q outlets are rather small, and can only serve a maximum of 6 guests. It is a choice for those who are in a hurry and would like to grab a quick lunch on the way.
Pizza Walker Pizza Walker is a joint venture positioned as gourmet pizza joint in Singapore. Most of its retail outlets are decorated with welcoming ambience, such as flowers and see-through kitchens. Pizza Walker is a good place to hang out, and the place is always full during lunch hour. It has more than enough tables to serve a maximum of 55 guests. Its specialty is all-you-can-eat pizza!
Starbucks Starbucks' strategy entering the lunch market had made some impact in Singapore. Usually, a lunch menu in Singapore consists of "fried and BBQ stuff" such as roast pork with rice or the Big Mac. Starbucks is one of the first food retailers that popularized "light and healthy" alternatives such as salad or lean sandwich as an options for Singapore's lunch accommodations.
Bread Talk As the most successful franchiser in Singapore, Bread Talk is surely becoming a threat for most food retailers. Bread Talk not only rented most of the retail space along Orchard Road, but now they are doing delivery to offices and apartments nearby. Bread Talk outlets usually consist of a huge see-through kitchen, and bread trays ready for pick-up by customers, with three or four cashiers at front, to speed up the queue. Rumor has it that Bread Talk sold more than 35,000 breads each day in just one of their retail outlets.
Rotiboy A Malaysian franchise. Rotiboy is quite popular in the region as it is now expanding into several cities in Indonesia, Vietnam, Thailand, and the Philippines. Rotiboy offers simplicity for quick lunch franchiser, and often considered alternatives for its long queueing rivals.
4.3.4 Foreign Vs. Local Franchising
Around 40% of the franchises operating in Singapore are foreign. Home grown franchises are still in their maturing stages as they start to expand globally. Franchises from the U.S. account for 65% of foreign brands, with big players such as KFC, Starbucks, Pizza Hut, etc. Due to high capital investment, Singapore conglomerates tend to dominate the industry.
Home grown franchises are more often sought more by young entrepreneurs than are their Western counterparts, as they offer greater flexibility and lower franchise fees to operate. Unlike Western license holders, home grown franchises are more efficient in the overall supply chain management as the basic raw ingredients are commonly found anywhere in the region.
Strategy and Implementation Summary
At first, we will open one outlet inside the New Paragon Shopping Centre. This will become our "market testing area," and as we go further, Fresin Fries is planning to open another in nearby shopping malls. In attracting customers to try our fries, we will provide a see-through kitchen, so that people will see how we are committed to freshness in our products.
The kitchen will also let out an aroma of our freshly fried fries into the surroundings area, so that people will come and try our products.
5.1 Competitive Edge
Our unique dipping sauces blend local taste and international into one fusion recipe for the signature sauce.
Enthusiastic and friendly staff
Supporting merchandise items that support company's brand building.
Our fries are made of 100% fresh potatoes, unlike the frozen fries used by competitors.
Innovative packaging will position us at the same level with foreign fast food franchises.
5.2 Marketing Strategy
Our strategy is based on serving our markets well. We will start our first outlet as a "market tester" that could become a model of the expanding number of outlets in the future. Concentration will be on maintaining quality and establishing a strong identity in the local market.
A combination of local media and local store marketing programs will be utilized at each location. Local store marketing is most effective, followed by print ad. As soon as a concentration of stores is established in a market, then broader media will be explored. We believe, however, that the best form of advertising is still "buzz." By providing a fun and energetic environment, with unbeatable quality at an acceptable price in a clean and friendly outlet, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. We will actively build our brand, through the selling of supporting materials, such as merchandise, promotional items and other marketing gimmicks similar to those of other fast food franchises.
5.2.1 Pricing Strategy
Our pricing strategy is positioned as "generic", meaning that S$4.00 is the average consumer spending for a snack or light lunch in Singapore. Leveraging the volume of fries, Italian Soda, and signature style sauces to be sold, we are serving the majority of Singaporeans.
5.2.2 Brand Challenges
Fresin Fries must establish a distinct brand to stand out from the other Western-style fast food competitors.
Our logo is distinct as fresh, energetic and playful with color elements that are eye catching.
Product names are geared toward the target market (teens), with items such as "Frenzy Fresin" and "Uber Fresin" which are fun and easy to remember.
5.2.3 Marketing Programs
We will deploy three different marketing tactics to increase customer awareness of Fresin Fries. Our most important tactic will be "word-of-mouth" and in-store marketing. This will be by far the cheapest and most effective of our marketing programs because of the high traffic in targeted shopping locations.
The second tactic will be local store marketing. These will be low-budget plans that will provide community support and awareness of our facility. The last marketing effort will be utilizing local media. Although, this will be the most costly, this tactic will be used sparingly as a supplement where necessary.
In-Store Marketing
In-store brochures containing our concept and philosophy.
Wall posters.
Design concept.
In-store viewing of making fries process from cutting to frying.
Standing signage inside malls’ lobby/aisle.
Outdoor signage (if possible).
Grand opening promotion.
Party catering.
Merchandising items.
Local Store Marketing
Brochures.
Free occasional t-shirts at local stores events.
Local Media
Direct mail piece – containing brochures sent to surrounding addresses.
Web page – containing company philosophy, history and news.
Local magazines that target our core customers, such as Free! Magazine.
Newspaper campaign – placing several large ads throughout the month to explain our concept to the local area.
5.2.4 Positioning Statement
Our main focus in marketing will be to increase customer awareness in the surrounding community. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. We will price our products fairly, keep our standards high, and execute the concept so that “word-of-mouth” will be our main marketing force.
5.3 Sales Strategy
The sales strategy is to build and open new locations in order to increase revenue. However, this plan will be implemented when the one "market tester" outlet showed potential growth. As each individual location will continue to build its local customer base over the first three years of operation, the goal of each store is S$104,250 in annual sales, with the original flagship store expected to earn almost S$200,000 per year.
5.3.1 Sales Forecast
We anticipate the highest peak on the months of November and December in our sales forecast, due to the holiday seasons. In November, there is Ramadan, and for non-muslim Malaysians and Indonesians, it means vacation time. Approximately 1.5 million Indonesians visit Singapore each year, mostly for shopping and dining. Then in December, we anticipate more tourists coming into Singapore; this explains the jumped of sales in these last two months of the year.
Sales Forecast
Year 1
Year 2
Year 3
Unit Sales
Belgian Fries
49,464
98,928
197,856
Italian Soda
27,692
55,384
110,768
Merchandising
3,889
7,778
15,556
Signature Packaged Sauces
3,356
6,712
13,425
Total Unit Sales
84,401
168,802
337,605
Unit Prices
Year 1
Year 2
Year 3
Belgian Fries
$4.00
$4.00
$4.00
Italian Soda
$1.50
$1.50
$1.50
Merchandising
$8.50
$8.50
$8.50
Signature Packaged Sauces
$2.00
$2.00
$2.00
Sales
Belgian Fries
$197,856
$395,712
$791,424
Italian Soda
$41,538
$83,076
$166,152
Merchandising
$33,057
$66,114
$132,228
Signature Packaged Sauces
$6,712
$13,425
$26,849
Total Sales
$279,163
$558,327
$1,116,654
Direct Unit Costs
Year 1
Year 2
Year 3
Belgian Fries
$0.80
$0.80
$0.80
Italian Soda
$0.15
$0.15
$0.15
Merchandising
$3.83
$3.83
$3.83
Signature Packaged Sauces
$1.00
$1.00
$1.00
Direct Cost of Sales
Belgian Fries
$39,571
$79,142
$158,285
Italian Soda
$4,154
$8,308
$16,615
Merchandising
$14,876
$29,751
$59,503
Signature Packaged Sauces
$3,356
$6,712
$13,425
Subtotal Direct Cost of Sales
$61,957
$123,914
$247,827
5.4 Strategic Alliances
Our business requires a long relationship with raw suppliers as well as partner vendors. In Chinese, this relationship is called "guanxi," meaning business bonding. We already have a long and good standing relationship with Company V in our previous ventures. For Company Y, Mr. Joe Shmo, the managing director, is a prominent figure in the society and we hope to strengthen further our business relationship with him and the company.
5.5 Milestones
During the initial set up of the company, the 4 founders (Guy Fry, Harry Hip, Sam Sauce, and Carl Cone) will conduct the planning and implementation in building the brand and the construction of our first outlet. The planning and construction will take approximately 8 months, in addition to the revision and refinement process that will take the rest of the 12 month period before our opening in early 2005.
Milestones
Milestone
Start Date
End Date
Budget
Manager
Department
Presentation materials for all stakeholders
1/12/2004
3/12/2004
TBD
Carl Cone
Business Development
Follow up with suppliers
1/21/2004
3/22/2004
$100
Sam Sauce
Business Development
Follow up with developers
1/21/2004
9/8/2004
$50
Sam Sauce
Business Development
Printing materials
2/13/2004
4/10/2004
$8,000
Guy Fry
Marketing
Marketing communication program
2/21/2004
6/23/2004
TBD
Sam Sauce
Marketing
Constructions
5/22/2004
12/3/2004
TBD
Harry Hip
Business Development
In store signage, POP
5/23/2004
10/11/2004
TBD
Guy Fry
Marketing
Grand opening materials
6/2/2004
10/13/2004
TBD
Guy Fry
Marketing
Hiring staff
7/14/2004
8/12/2004
$900
Harry Hip
Human Resources
Open second location
7/1/2005
7/1/2005
$10,000
Carl Cone
Business Development
Open 3rd and 4th locations
1/1/2006
6/1/2006
$15,000
Carl Cone
Business Development
Open 5th, 6th, and 7th locations
1/1/2007
12/31/2007
$20,000
Carl Cone
Business Development
Web Plan Summary
The website will, of course, show visitors everything about Belgian food culture, including the history of french fries over time. To make the website interactive, Fresin Fries will offer gift cards and promotions via the Internet, so our visitors can print the promotional coupon in PDF format and bring it when they visit Fresin Fries. Visitors can also download Fresin Fries' theme song as ring tones, or order potato cutters for delivery.
Besides the traditional formats of customer service hotline and in-store form, customers can now write their comments and suggestions on our website, which will be directed to one of our staff.
So, the website itself will act as the medium between our company and our audience.
In the future, our website will show information on franchising/licensing our brand name.
6.1 Website Marketing Strategy
We will leverage the visibility of our shopping mall's website by getting them to include a link to ours. We will also post banners on an official Singapore tourism website.
6.2 Development Requirements
To adequately serve our audience, the front end strategy of our website should be parallel with our corporate color. The front end design of our website will be entirely trusted to Mr. Guy Fry.
The diversity of founders' background in our company has enabled a cost efficient development in our venture. As Mr. Harry Hip and Mr. Carl Cone are experts in Information Technology, the back end of our website will be developed by these gentlemen.
Management Summary
The initial management team depends on the founders themselves, with little back-up. As we grow, we will take on additional help in certain key areas. Part of our basic philosophy will be able to run our executive management as a "knowledge sharing" fellowship. We will not add additional overhead until absolutely necessary. This will mean that the initial staff support team will have to work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our outlets. This will also allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return.
At present time, Fresin Fries is being owned by its 4 founders. Others that have helped on the development of this business venture will be offered an opportunity to grow together with the company at the appropriate time, and when the time comes, the 4 founders’ share will be consolidated as one entity.
7.1 Management Team
Fresin Fries is currently the creative idea of its four founders. As the company is small in nature, it only requires a simple organizational structure. Implementation of this organization form calls for all four individuals to make all major management decisions in addition to monitoring all other business activities.
As we expand into multiple locations, each location will have a primary site manager.
7.2 Organizational Structure
Future organizational structure will include a director of store operations when the store locations exceed four units. We hope that this individual will come out of the ranks of our stores’ management. This will provide a supervisory level between the executive level and the store management level.
Current plan is to have our accounting and payroll functions done by an in-house bookkeeping. Mr. David Lu will be responsible for accounting and business development of Fresin Fries, helped by Mr. Harry Hip, acting Head of Human Resources Division. Possible positions might be added at a later date include marketing manager, purchasing manager, controller, human resources, R&D and administrative support team.
7.3 Personnel Plan
Our initial employees will include two cashiers, two cooks and two bus boys per location, with one of each on the premises during open hours. This is considered an ideal personnel number for a food outlet the size of our own. Each employee will work for 38-40 hours per week.
In the long run, as we expand our product category and retail outlets, we will employ more people in the middle management to ensure the focus of our work, including site managers.
Personnel Plan
Year 1
Year 2
Year 3
Site Managers
$0
$60,000
$96,000
Cashiers
$36,000
$80,000
$144,400
Cook
$28,800
$66,000
$115,200
Busboy
$23,400
$56,000
$94,000
Total People
12
26
40
Total Payroll
$88,200
$262,000
$449,600
Financial Plan
The company is now privately held by Harry Hip, Guy Fry, Carl Cone, and Sam Sauce. Future shares will be offered after two consecutive years of operating in Singapore.
8.1 Start-up Funding
Currently, the company is owned by the original 4 founders, who each will contribute $200,000 for the same amount of share, 25%. This will more than cover start-up requirements, and provide the business with a cash cushion to use for expansion over the first three years.
Start-up Funding
Start-up Expenses to Fund
$68,800
Start-up Assets to Fund
$50,000
Total Funding Required
$118,800
Assets
Non-cash Assets from Start-up
$30,000
Cash Requirements from Start-up
$50,000
Additional Cash Raised
$681,200
Cash Balance on Starting Date
$731,200
Total Assets
$761,200
Liabilities and Capital
Liabilities
Current Borrowing
$0
Long-term Liabilities
$0
Accounts Payable (Outstanding Bills)
$0
Other Current Liabilities (interest-free)
$0
Total Liabilities
$0
Capital
Planned Investment
Eric Yam
$200,000
Martin Ng
$200,000
David Lu
$200,000
Sagita Suwandi
$200,000
Additional Investment Requirement
$0
Total Planned Investment
$800,000
Loss at Start-up (Start-up Expenses)
($68,800)
Total Capital
$731,200
Total Capital and Liabilities
$731,200
Total Funding
$800,000
8.2 Break-even Analysis
Our break-even analysis shows that we need unit sales over 9,700 per month to break even. We do not expect to begin turning a profit until year three.
Break-even Analysis
Monthly Units Break-even
9,706
Monthly Revenue Break-even
$32,104
Assumptions:
Average Per-Unit Revenue
$3.31
Average Per-Unit Variable Cost
$0.73
Estimated Monthly Fixed Cost
$24,979
8.3 Projected Profit and Loss
As the Profit and Loss shows, Fresin Fries will run at a loss for the first two years, using up some of the cash reserves initially invested by the founders. As sales increase, we will expand into new locations to aggressively spread brand recognition. This increase in visibility will allow us to take up less expensive locations off of Orchard Road, while maintaining our flagship operation, the first store, in a prime spot.
Pro Forma Profit and Loss
Year 1
Year 2
Year 3
Sales
$279,163
$558,327
$1,116,654
Direct Cost of Sales
$61,957
$123,914
$247,827
Other Costs of Sales
$0
$0
$0
Total Cost of Sales
$61,957
$123,914
$247,827
Gross Margin
$217,207
$434,413
$868,826
Gross Margin %
77.81%
77.81%
77.81%
Expenses
Payroll
$88,200
$262,000
$449,600
Marketing/Promotion
$10,000
$10,000
$10,000
Depreciation
$0
$0
$0
Rent
$174,000
$248,000
$298,000
Utilities
$2,550
$5,000
$8,000
New location setup
$25,000
$50,000
$50,000
Total Operating Expenses
$299,750
$575,000
$815,600
Profit Before Interest and Taxes
($82,543)
($140,587)
$53,226
EBITDA
($82,543)
($140,587)
$53,226
Interest Expense
$0
$0
$0
Taxes Incurred
$0
$0
$0
Net Profit
($82,543)
($140,587)
$53,226
Net Profit/Sales
-29.57%
-25.18%
4.77%
8.4 Projected Cash Flow
The following chart and table show the Projected Cash Flow for Fresin Fries.
Pro Forma Cash Flow
Year 1
Year 2
Year 3
Cash Received
Cash from Operations
Cash Sales
$279,163
$558,327
$1,116,654
Subtotal Cash from Operations
$279,163
$558,327
$1,116,654
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$0
$0
$0
New Current Borrowing
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
New Investment Received
$0
$0
$0
Subtotal Cash Received
$279,163
$558,327
$1,116,654
Expenditures
Year 1
Year 2
Year 3
Expenditures from Operations
Cash Spending
$88,200
$262,000
$449,600
Bill Payments
$244,265
$430,245
$599,286
Subtotal Spent on Operations
$332,465
$692,245
$1,048,886
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$0
$0
Purchase Other Current Assets
$0
$0
$0
Purchase Long-term Assets
$0
$0
$0
Dividends
$0
$0
$0
Subtotal Cash Spent
$332,465
$692,245
$1,048,886
Net Cash Flow
($53,301)
($133,918)
$67,767
Cash Balance
$677,899
$543,981
$611,748
8.5 Projected Balance Sheet
Fresin's projected company balance sheet follows. We expect to run at a loss for the first two years, decreasing our net worth slightly. As the operation becomes more profitable in the third year, our net worth rises again.
Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Assets
Current Assets
Cash
$677,899
$543,981
$611,748
Other Current Assets
$0
$0
$0
Total Current Assets
$677,899
$543,981
$611,748
Long-term Assets
Long-term Assets
$0
$0
$0
Accumulated Depreciation
$0
$0
$0
Total Long-term Assets
$0
$0
$0
Total Assets
$677,899
$543,981
$611,748
Liabilities and Capital
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
$29,242
$35,911
$50,452
Current Borrowing
$0
$0
$0
Other Current Liabilities
$0
$0
$0
Subtotal Current Liabilities
$29,242
$35,911
$50,452
Long-term Liabilities
$0
$0
$0
Total Liabilities
$29,242
$35,911
$50,452
Paid-in Capital
$800,000
$800,000
$800,000
Retained Earnings
($68,800)
($151,343)
($291,930)
Earnings
($82,543)
($140,587)
$53,226
Total Capital
$648,657
$508,070
$561,296
Total Liabilities and Capital
$677,899
$543,981
$611,748
Net Worth
$648,657
$508,070
$561,296
8.6 Business Ratios
The following table outlines some of the more important ratios from the Fast Food Restaurants and Stands industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code 5812.
