I have cobbled together a type of business plan for our Sown Boxes. It runs to around 33 pages and the figures need re-juggling (that's what I like about numbers).
Please find the first few pages of the plan.
Sown Boxes
Executive Summary
Introduction
Sown Boxes (SB) is a new company which specialises in bio-degradable fast food containers. SB is concentrating on making recyclable food containers with a wide range of vegetable seeds impregnated within a section of the container. In addition to having several sizes of containers , SB will also offer the option of a customer choosing which type of seeds and size of containers they require. SB will be selling to smaller retail outlets as well as larger ones. Initially the bulk of SB's business will be generated by individuals from word-of-mouth referrals, but as time passes, it is intended that corporations will become a growing percentage of sales.
Once up and running with some momentum, SB will be steadily producing profits. It is projected that SB will be making a profit by December 2012. By the end of year three, it is projected that SB will be generating a net profit of approximately £15,000.
The Company
The Sown Boxes' mission is to create the finest boxes of this type available. SB, soon to be located in Dundee, using premier local seeds, when possible and good quality biodegradable boxes. The business will be based in a working unit which is part of a small industrial development site within the city. Although this will be a small business to begin with, it is anticipated that as the venture grows it shall create a few working places to the local community.
The founders of the company are, at present, full time students at Dundee Duncan of Jordanstone University and have various skills which they can bring to the business. The primary Sown Boxes that will be offered shall be for: pizza, burgers, fries, soup, hot drinks. Each container shall have a section which will contain the vegetable seeds with the remainder of the box being used on the compost heap.
The Market
The purchasing of Sown Boxes shall rely heavily on the buying public and the retail outlets who shall provide this type of container. It is anticipated that a greater number of containers shall be required during the 2summer holiday” period.
SB's competitive advantage will be based on two factors, low overhead which allows reasonable prices, and an unrelenting desire for the highest quality product and service.
1. Low overhead.
2. Highest quality product and service.
SB's sales strategy will be targeted at obtaining both the individual and corporate clients through word-of-mouth referrals. Customers will be able to place an order at the office, over the phone or via the website.
Financials
SB's start-up costs will include all the equipment needed for the unit-based office, legal fees, website creation, and start-up advertising. The home office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies, cellular phone, and pager. Additionally, there will be the installation of a broadband connection, and furniture for the home office. Total start-up expenses are expected to be £28,000, all of which will be provided through the Groups own equity.
The Break-even Analysis indicates SB will need to sell approximately £4,900 per month to break even. SB expects to earn approximately £14,000 in year two and £21,000 in year three.
INSERT CHART HERE
1.1 Mission
The Sown Boxes' mission is to create the finest food containers available. We exist to attract and maintain customers. When we hold fast to this truism, everything else will fall into place. Our products and services will exceed the expectations of our customers.
1.2 Objectives
The objectives for the first three years of operation include:
1. To create a small company whose primary goal is to exceed customer's expectations.
2. To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals.
3. To develop a sustainable small business, surviving off its own cash flow.
Company Summary
SB, soon to be located in Dundee, and will offer a wide range of bio-degradable food containers, production as well as custom units. SB will be producing the containers out of premier ingredients, local seeds when possible.
The business will be based in a small Dundee industrial unit. Although this will be a small local business, to begin with, toward the end of year one it is anticipated that it will have one more employee. If the business goes per the forecasted plan, the business will achieve profits by the end of year one.
2.1 Company Ownership
The Sown Boxes will be a sole proprietorship, owned by the group of students.
2.2 Start-up Summary
SB's start-up costs will include all the equipment needed for the unit-based office, legal fees, website creation, and start-up advertising. The home office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies, cellular phone, and pager. The computer should have a 500 megahertz Celeron/Pentium processor, 64 megabytes of RAM (preferably 128), 6 gigabyte hard drive, and a rewritable CD-ROM for backing up the system. Additionally, there will be the expense installation of a broadband connection. While a broadband connection is not totally necessary, it only costs between £40-50 per month for service and will make working on the Internet significantly faster and easier.
The unit office will also require a few pieces of furniture such as a desk, chair, and bookshelf to transform a standard room into an office. Lastly, an additional land phone line will be required. The legal fees are used for the formation of the business as well as for reviewing/generating standard client contracts. The Web creation fees at start-up costs are for design and creation of the website. The start-up advertising will be the production of brochures.
