Business Plan
Running head: OLLIE’S ICE CREAM CART 1
Ollie’s Ice Cream Cart
Final Business Plan
April 19th, 2019
OLLIE’S ICE CREAM CART 2
Table of Content
Executive Summary……………………………………………………………………………….4
Company Description……………………………………………………………………………..5
Company History………………………………………………………………………….5
Mission Statement…………………………………………………………………………5
Tagline…………………………………………………………………………………….6
Products and Services……………………………………………………………………..6
Current Status……………………………………………………………………………...6
Legal Status and Ownership………………………………………………………………7
Industry Analysis………………………………………………………………………………….8
Industry Size………………………………………………………………………………8
Growth Rate of the Street Vendor Industry……………………………………………….8
Sales Projection……………………………………………………………………………9
Trends of the Industry……………………………………………………………………..9
Key Success Factors………………………………………………………………………9
Market Analysis………………………………………………………………………………….11
Market Segmentation…………………………………………………………………….11
Buyer Behaviour…………………………………………………………………………11
Competitive Analysis…………………………………………………………………….11
Marketing Plan…………………………………………………………………………………...12
Overall Marketing Strategy………………………………………………………………12
Positioning Strategy……………………………………………………………………...12
Points of Differentiation…………………………………………………………………12
OLLIE’S ICE CREAM CART 3
Pricing Strategy…………………………………………………………………………..13
Promotions Mix………………………………………………………………………….13
Management Team and Structure………………………………………………………………..14
Management Team……………………………………………………………………….14
Operations Plan…………………………………………………………………………………..16
Operations Model and Procedures……………………………………………………….16
General Approach to Operations………………………………………………………...16
Equipment………………………………………………………………………………..17
Greeting Guests…………………………………………………………………………..17
Hours of Operation………………………………………………………………………17
Business Location………………………………………………………………………..18
Financial Projections……………………………………………………………………………..19
References………………………………………………………………………………………..20
Appendices……………………………………………………………………………………….22
OLLIE’S ICE CREAM CART 4
Executive Summary
Ollie’s Ice Cream Cart will provide the locals of Oak Bay and the guests of the hotel an
alternative food and beverage outlet to enjoy during the warm summer months. There will be a
variety of options available on the menu to cater dietary needs for all. The menu will consist of a
handful of gourmet ice cream flavours that will be hand-made by our specialized pastry chef.
Only the finest, local ingredients will be used to provide guests a new level of ice cream unlike
any other competitor can offer.
The management team of the Oak Bay Beach Hotel are driven individuals with a passion
for hospitality and food and beverage. With the realization that there was no ice cream outlet
nearby, the idea was created to combine the well-known Oak Bay Beach Hotel with their very
own ice cream cart. By acknowledging the gap, the Oak Bay Beach Hotel is able to take
advantage of the market and the environment by offering the locals a place to enjoy ice cream
during the summer months right by the ocean. In addition, the hotel can anticipate being sold out
through the season, meaning the occupancy from the hotel guests will also ensure business for
the ice cream cart.
By targeting the locals of Oak Bay and the hotel guests of the Oak Bay Beach Hotel we
will see exponential increase in sales. To get to this point, the Oak Bay Beach Hotel team will
rely heavily on the assistance of our marketing team to use social media platforms, monthly
newsletters and emails, word of mouth, signage and much more to spread the exciting news.
It is with great pleasure that we wish you join us May 2019 for the grand-opening of
Ollie’s Ice Cream Cart. We will attract consumers to our grand-opening by offering free samples,
door prizes, and tickets can be bought to win a one night stay at the Oak Bay Beach Hotel. We
hope to see you then!
OLLIE’S ICE CREAM CART 5
Company Description
Ollie’s Ice Cream Cart is proposing to operate an ice cream cart, located in front of
Kate’s Café at the Oak Bay Beach Hotel. This outlet is designed to target hotel guests, as well as
residents of the Oak Bay area aged 15-64 years old. The ice cream cart will be available May-
September through the summer season.
The founder of Ollie’s Ice Cream Cart is no other than Food and Beverage Director,
Cassandra Maurice-Magee. With the go-ahead from Owner Jason Ratzlaff, and General
Manager, Michelle Le Sage, Cassandra has a full team behind her consisting of another manager
as well as our talented pastry chef who will be the developer of the ice cream flavours. The
company is located at 1175 Beach Drive, Victoria, British Columbia. Cassandra can be reached
at 250-940-0319 or via email at cmauricemagee@obbh.com.
Company History
The Oak Bay Beach Hotel has been on property for over 90 years, with the new hotel on
site for over 6 years. After some speculation about adding a new food and beverage outlet to the
hotel, Cassandra was conducting a meeting to the managers and owners. It was then, Cassandra
asked the question, “Why is there nowhere close for our hotel guests to enjoy ice cream during
the summer?” It was this question that made the management team think. With the financial
support from the owners, it was established that Ollie’s Ice Cream Cart could in fact develop to
be something big for the community.
Mission Statement
The mission of Ollie’s Ice Cream Cart is to provide the guests of the hotel and the locals
of Oak Bay a vibrant atmosphere for them to enjoy ice cream while experiencing high level of
service.
OLLIE’S ICE CREAM CART 6
Tagline
To maintain reputation with the Oak Bay Beach Hotel, the tagline will remain “Our Best,
Always.” This tagline, which emerged years ago, has been an important phrase in the branding of
the Oak Bay Beach Hotel and it is crucial is translated to Ollie’s Ice Cream Cart so consumers
know the same level of service can be expected.
Products and Services
The products and services that will be offered by Ollie’s Ice Cream Cart will consist of a
variety of ice cream flavours. These flavours will be developed in-house by our talented pastry-
chef and they will be created to cater to dietary restrictions we anticipate having. We will ensure
there is something for everyone to enjoy. The following flavours that will be included but are not
limited to are the following:
• Rose water with raspberry (vanilla based; dairy included)
• Mint chocolate chip (almond based; dairy-free)
• Lemon and blueberry gelato (dairy-free)
• Peanut butter & chocolate chip (vanilla based; dairy included)
Current Status
Ollie’s Ice Cream Cart is set to commence operations on May 4th, 2019. Since
development, the following milestones have been completed, and the following milestones
remain to be completed for the company to start operations.
Milestones Completed:
• Feasibility, industry and market analysis
• Marketing operations
• Financial projections
OLLIE’S ICE CREAM CART 7
• Five-member management team in place
• Business plan complete
• Full investment from ownership group
Milestones Remaining to Be Completed:
• Prepare for grand opening
• Select grand opening flavours and tasters
• Survey out what flavours are going to be successful
• Design promotional flyers and signage
Legal Status and Ownership
Ollie’s Ice Cream Cart is a Limited Partnership Corporation in relation to the Oak Bay
Beach Hotel. It is currently privately owned by the Ratzlaff family.
OLLIE’S ICE CREAM CART 8
Industry Analysis
According to NAICS Association (2019), my chosen industry code is 722330. The
industry is known as preparing and servings snacks for immediate consumption from motorized
vehicles or nonmotorized carts, such as an ice cream cart. (NAICS Association, 2019). My
business idea directly fits in this industry because the main objective is to be able to provide
consumers with immediate snacks that come directly from the ice cream cart. This idea was
decided upon cleaning the first screen analysis (As seen in Appendix A).
Industry Size
(NAICS Association, 2019)
Growth Rate of the Street Vendor Industry
The growth rate of the street vendor industry is 2.3% from 2018-2020. We expect to see
the growth rate continue steadily as we see consumers wanting an alternative to purchasing quick
snacks, and street vendors such as ice cream carts offer that unique experience as oppose to
simply just going to the grocery store.
$305,000,000.00
$310,000,000.00
$315,000,000.00
$320,000,000.00
$325,000,000.00
$330,000,000.00
2018 2019 2020
Industry Size
$321 Million
$321 Million
$314 Million
OLLIE’S ICE CREAM CART 9
Sales Projection
For the first year of sales, we anticipate opening for the summer season between May to
September in order to take advantage of the market. Since we only will be open for a few
months, we estimate the total sales of ice cream will generate around $250 each day. This
amount multiplied by being open seven days a week for 5 months, we hope to make $35,000 in
the first year. With the $35,000 we will then subtract the $28,000 required to start our first year,
and we have recognized the first year will profit a total of $7,000. The sales projection for year
two of my business is based on an increase of $100, indicating we anticipate making $350 each
day, thus a total sale of $60,000 before operation expenses.
Trends of the Industry
Trends in the street vendor industry can be seen in the PEST analysis in Appendix C.
These trends are important for my business idea to consider as they could ensure the success of
my business or they could be the reason we are unable to succeed. According to Why 2018 is Set
to be the Year Street Food gets a lot more Sophisticated (2019), street food is at the forefront of
innovating the way we receive food. Being mobile, it allows the industry to keep up with the
changing consumer demand and can adapt to trends such as veganism and dairy-free options.
This implies that in order for my business to be successful, it is important to have a variety of
options on the menu for everyone. Furthermore, mobile food businesses also provide an
opportunity for people to have other sources of income and allow people to have flexible work
schedules or more than one source of income (Saxe, 2018).
Key Success Factors
Key success factors for my ice cream cart include the positive image connected with the
Oak Bay Beach Hotel. The hotel is a historic property, with deep ties to their values as well as
OLLIE’S ICE CREAM CART 10
the Oak Bay area. The hotel already has a small coffee shop that does well year-round. To
further enhance the guest experience, by adding an ice cream cart, it will not only provide a great
addition to the hotel but also to the local community. The closest ice cream place is located at
Willows Beach which is roughly a 20-minute walk. In the residential area surrounding the hotel,
there isn’t an option for consumers to enjoy an ice cream near the hotel. I will ensure the ice
cream products we offer is of variety of dairy-free, and applicable to trends related to the
evolving industry of ice cream. We will hand craft some of our ice cream products in-house to
provide guests unique, incredible, hand-made flavours. This will provide consumers with an
overall authentic experience. We will continue to offer guests only the highest standards of
customer service, as we will be operating in relation to luxury property.
OLLIE’S ICE CREAM CART 11
Market Analysis
Market Segmentation
According to Census Profile (2016) the Oak Bay area features over 18,000 people. Of
that 18,000 people, there are around 10,000 who are between the age of 15-64 years old. With
this data, we chose to target this age for our proposed ice cream cart. In addition, we also will be
targeting our hotel guests who are also in similar ages to the proposed market segmentation. This
proposed market segmentation was selected because this age group allows us to accommodate to
the variety of different ice cream flavours and trends occurring as this may affect this age group
the most.
Buyer Behaviour
The consumers at my ice cream cart are their own decision maker as it will be based on
their individual preference to certain flavours. Customers will make the decision if they are
craving a sweet treat as the weather will be fitting. The length of the buying process will be
relatively short as we will not have a large menu. In place, we will have a carefully thought out
menu that accommodate to a wide pallet. Once guests have paid for their ice cream, they may
choose to walk around the property which could also entice them to purchase other services or
products from the Oak Bay Beach Hotel.
Competitive Analysis
Direct Competitors:
The Willows Beach Tea House is a small food and beverage outlet that services a variety of food
and in the summer months they open a section of their outlet that has ice cream and frozen treats.
They are located in the Oak Bay area and according to Facebook, their hours of operations are
from 10:00am to 4:30pm. They are the only direct competition in the area.
OLLIE’S ICE CREAM CART 12
Marketing Plan
Overall Marketing Strategy
The overall objective of Ollie’s Ice Cream Cart is to elevate the guest experience at the
Oak Bay Beach Hotel, while catering to residentials in the area who would be eager to enjoy an
ice cream while being in the Oak Bay area. To market our plan, we will create a few signs to post
around the Oak Bay area and rely heavily on social media. With the help of our Sales and
Marketing team, we will take advantage of our social media platform to spread the news and to
inform customers of this exciting proposal. Furthermore, we will also be relying on word-of-
mouth through the Oak Bay Beach Hotel’s highly reputable reputation.
Positioning Strategy
Ollie’s Ice Cream Cart’s target market are hotel guests at the Oak Bay Beach Hotel, and
the residents in the Oak Bay Area aged 15-64 years old. Its position in the market is to fill a gap
for there not being an ice cream spot in the area in front of the Oak Bay Beach Hotel. The closest
spot for Ice Cream is located at Willow’s Beach and is about a 20-minute walk. By adding
Ollie’s Ice Cream Cart as a seasonal outlet to the hotel, it caters to the gap, while positioning
itself in the middle end of the market, in terms of price and offerings.
Points of Differentiation
• Only one of two ice cream outlets located in the Oak Bay area. The other one is
significantly farther away, and does not cater to the hotel guests, nor residents in the area
• Offers a variety of flavours that are all hand-made by a specialist that will accommodate
dietary trends
• Partnered with the Oak Bay Beach Hotel that will ensure customers are receiving a
luxury experience, with high quality products
OLLIE’S ICE CREAM CART 13
Pricing Strategy
Ollie’s Ice Cream Cart will adopt a status quo pricing strategy. Ollie’s Ice Cream Cart has
decided to shift to this pricing strategy because the implementation of Ollie’s Ice Cream Cart is
to simply elevate the guest experience and to offer the community another food and beverage
outlet. After viewing the ice cream outlet at Willows Beach, Ollie’s ice cream cart has decided to
act on status quo pricing as the prices are similar, but yet will offer guests a high-quality product.
We will be pricing small ice cream cones at $3.25, medium at $4.00 and large ice cream cones at
$4.50. This pricing is based on the assumption of selling 20-75 cones each day that will generate
around $35,000 for the first year. After the first year of business, the Ice Cream team will re-
evaluate their service offerings and decide on raising prices should it be appropriate to do so.
Promotions Mix
Ollie’s Ice Cream Cart’s promotion mix will include advertising, public relations, and
social media. For their advertising, the company will invest in proper signage to be around the
Oak Bay area. Furthermore, the Oak Bay Beach Hotel will also invest in radio advertisements to
spread the news to the Greater Victoria area. Under their public relations, the Oak Bay Beach
Hotel will market Ollie’s Ice Cream Cart through press release, event sponsorship, monthly
newsletter, the hotel’s social media platform, and through their involvement in the community.
The hotel will be including it as a part of their outlets and guests will be informed prior to
booking about the seasonal addition to the hotel. The marketing team will also send out monthly
newsletters informing customers have the exciting addition and will continue to market through
the community. Through this, word-of-mouth will develop and the company forecasts that it will
shed a positive limelight on the hotel and bring in more customers.
OLLIE’S ICE CREAM CART 14
Management Team and Company Structure
Management Team
Please refer to Append D for analysis of investment from the management team as well
as estimated salary prices. We also recommend you refer to Appendix E to see the diagram of
our organizational culture that is listed below.
Jason Ratzlaff (Owner):
With over 20 years’ experience in revenue investment corporations, Jason brings a wealth
of knowledge in investments and financial operations. Jason also has an educational background
from BCIT where he gained a Master’s in Economics. Jason contributes widely to the success of
the Oak Bay Beach Hotel while lending a wealth of knowledge.
Michelle Le Sage (General Manager):
Michelle brings over 25 years’ experience in the hospitality industry in upper
management positions. She has created a team culture that is immediately apparent with the
service quality the hotel provides. Michelle also holds a Bachelor of Commerce in
Entrepreneurial Management from Royal Roads University. She was awarded in 2016 as
‘Hotelier of the Year’ for her dedicated work in the industry.
Cassandra Maurice-Magee (Director of Food and Beverage):
Starting her first job in the ice cream industry, Cassandra brings an extensive background
in the hospitality industry. With over 10 years’ experience and an expected graduation in
International Hotel Management, Cassandra will be the direct point of contact for Ollie’s Ice
Cream Cart. She will oversee the operations run smoothly and will also take ownership for
overseeing the day-to-day operations.
OLLIE’S ICE CREAM CART 15
Lindsay Fleming (Ollie’s Ice Cream Cart Manager):
Lindsay brings an extensive food and beverage background, following a degree in
Culinary Management. Lindsay will work with Cassandra to ensure smooth operations and will
oversee training for employees.
Teddy Brown (Pastry Chef and Ice Cream Expert):
Growing up in Paris, France, Teddy has a background in pastry and desserts. Spending
many years training with the world’s best pastry and ice cream chefs, Teddy will lead the way
for developing the ice cream flavours and he will oversee the quality of it.
OLLIE’S ICE CREAM CART 16
Operations Plan
Operations Model and Procedures
Ollie’s Ice Cream Cart will operate a limited ice cream outlet for the residents of Oak
Bay and for the hotel guests of the Oak Bay Beach Hotel during the high season of beginning of
May to the end of September when the weather is at its peak. The operating model and
procedures for the outlet are explained in the following sections. Please refer to Appendix F to
view Ollie’s Ice Cream Cart Operations Flow Diagram. This diagram exhibits the guest buying
decisions.
General Approach to Operations
Operating an Ice Cream Cart during the hot, summer months requires dedication. It
requires a thought-out ice cream plan in order to create flavours that are well-known but also can
adapt to a variety of dietary concerns. It also needs to be fairly-priced in order to attract
customers to try the outlets at the Oak Bay Beach Hotel, without worried about spending a lot.
The biggest challenge in operating an ice cream cart is maintaining the quality and
making profit from the new outlet the Oak Bay Beach Hotel will be offering during the high
season. As a result, the operations centre will be prepared to (1) provide a welcoming
environment to all to enjoy the hotel’s outlets, (2) providing high-quality ice cream at a fair
price, (3) encourage the local community in the Oak Bay area to spend within the local
community and not through chain operated facilities, and (4) elevating the guest experience at
the Oak Bay Beach Hotel by offering outlets that would bring more business the overall
company as oppose to competitors. The operations will be discussed below.
OLLIE’S ICE CREAM CART 17
Equipment
The equipment that will be used to run Ollie’s Ice Cream Cart will consist of a POS
system, the supplies required for an ice cream cart such as scoops and containers, and of course
the actual ice cream cart. Food and beverage employees assigned to work the ice cream will have
access to utilize the equipment. Typically, there will be a manager and one employee working at
all times. One will be taking orders, and one will be scooping ice cream. The cart will not be
large and will only have a handful of flavours, so we do not anticipate it being overwhelming.
We will be purchasing our equipment and it will be ours to own as we will decorate the ice
cream cart to fit our marketing theme. Furthermore, the POS system will be an addition to what
the food and beverage department already have to keep consistency and ensure training is easier.
Greeting Guests
To great our guests, we will implement the same, high-level of standards we do with all
our employees. Due to the luxury standards, the Oak Bay Beach Hotel has imposed, we will be
ensuring our staff use the highest respect when speaking with our guests in a professional
manner. This will be done through proper etiquette training in order to help our employee’s
practice their verbiage. When a guest is approaching the ice cream cart, the employee will be the
first to acknowledge the guest with eye contact and a greeting. This will begin with, “Good
afternoon, how are you doing today? May I prepare an ice cream cone for you sir/madam?” This
kind of verbiage will be used with our employees and they will be well-trained to handle
different situations.
Hours of Operation
Ollie’s Ice Cream Cart will be open seven days a week, with hours that will be 12:00PM
until 7:00PM from Sunday until Thursday, and Friday and Saturday will be 12:00PM until
OLLIE’S ICE CREAM CART 18
8:30PM. The purpose of these hours will be to accommodate guests and residents, and to ensure
we are taking advantage of peak purchase times. Being open seven days, a week will also allow
our hotel guests to enjoy the outlet throughout their stay. The weather will be hot in the afternoon
and warm in the evenings, which will make it the perfect time for an ice cream treat.
Business Location
The location for Ollie’s Ice Cream Cart will be positioned outside the Oak Bay Beach
Hotel in front of the patio section of Kate’s Café. This location is a prime spot as it is easily
accessible for hotel guests and the local residents. The patio will require more patio furniture, but
it is a great size to accommodate guests as they enjoy their ice cream. Furthermore, the Oak Bay
Beach Hotel is a perfect spot as it does not have many competitors, there is a gap in the market
area for an ice cream outlet for the summer months, and it is not only accommodating for hotel
guests but also for the locals.
OLLIE’S ICE CREAM CART 19
Financial Projections
For more information on final projections, please review the information listed in detail
located in the separate excel spreadsheet attached to this assignment. In this excel spreadsheet
sources and uses of funds, an income statement, a balance sheet and the cash flow can be viewed
in detail for Ollie’s Ice Cream Cart. Instructor’s Note, a brief review of the financial information
was required but not included here.
OLLIE’S ICE CREAM CART 20
OLLIE’S ICE CREAM CART 21
References
Barringer, B. (2014). Preparing Effective Business Plans. An Entrepreneurial Approach (2nd ed.).
Pearson.
Census Profile. (2016). Oak Bay, District Municipality, British Columbia. Retrieved from
https://www12.statcan.gc.ca/census-recensement/2016/dp
pd/prof/details/page.cfm?B1=All&Code1=5917030&Code2=59&Data=Count&Geo1=C
SD&Geo=PR&Lang=E&SearchPR=01&SearchText=Oak+Bay&Searchtype=Begins&T
ABID=1
Drayer, L. (2018). What Makes Ice Cream so Addictive? CNN. Retrieved from
https://www.cnn.com/2018/05/02/health/ice-cream-addictive-food-drayer/index/html
Flanagan, M. (2017). How to Start an Ice Cream Truck or Cart Business. Retrieved from
https://smallbusiness.chron.com/start-ice-cream-truck-cart-business-4421.html
How Much Income Does an Ice Cream Truck Driver Make Per Day. (2016). Survey Results.
Retrieved from https://foodtruckempire.com/news/income-ice-cream-truck/
NAICS Association. (2019). Mobile Food Services. NAICS Association Code. Retrieved from
https://www.naics.com/naics-code-description/?code=722330
Saxe, L. (2018). Want to Know the Future of Food Trucks in 2019. Retrieved from
https://www.forbes.com/sites/lizzysaxe/2018/12/12/want-to-know-the-future-of-food-
trucks-in-2019-read-this-report/#34fe04f398f
The Best Ice Cream in Victoria. (2019). TripAdvisor. Retrieved from
https://www.tripadvisor.ca/Restaurants-g154945-zfd9899-
Victoria_Victoria_Capital_Regional_District_Vancouver_Island_British_Columbia-
Ice_Cream.html
OLLIE’S ICE CREAM CART 22
The History of Ice Cream. (2019). International Dairy Foods Association. Retrieved from
https://www.idfa.org/news-views/media-kits/ice-cream/the-history-of-ice-cream
Why 2018 is Set to be the Year Street Food gets a lot more Sophisticated. (2019). Independent.
Retrieved from https://www.independent.co.uk/life-style/food-and-drink/street-food-
2018-sophiscation-why-kerb-club-mexicana-bao-pop-brixton-streeet-feast-
a8186716.html
OLLIE’S ICE CREAM CART 23
Appendix A
First Screen
Part 1: Strength of Business Idea Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Extent to which the idea: • Takes advantage of
an environmental trend
• Solves a problem • Addresses an
unfilled gap in the marketplace
Weak Moderate Strong
2. Timeliness of entry to market
Not timely Moderately timely Very timely
3. Extent to which the idea “adds value” for its buyer or end user
Low Medium High
4. Extent to which the customer is satisfied by competing products that are already available
Very satisfied Moderately satisfied
Not very satisfied or ambivalent
5. Degree to which the idea requires customers to change their basic practices or behaviors
Substantial changes required
Moderate changes required
Small to no changes required
Part 2: Industry-Related Issues Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Number of competitors
Many Few None
2. Stage of industry life cycle
Maturity phase or decline phase
Growth phase Emergence phase
3. Growth rate of industry
Little or no growth
Moderate growth Strong growth
4. Importance of industry’s products and/or services to
“Ambivalent” “Would like to have”
“Must have”
OLLIE’S ICE CREAM CART 24
customers 5. Industry operating
margins Low Moderate High
Part 3: Target Market and Customer-Related Issues Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Identification of target market for the proposed new venture
Difficult to identify
May be able to identify
Identified
2. Ability to create “barriers to entry” for potential competitors
Unable to create May or may not be able to create
Can create
3. Purchasing power of customers
Low
Moderate High
4. Ease of making customers aware of the new product or service
Low Moderate High
5. Growth potential of target market
Low Moderate High
Part 4: Founder- (or Founders-) Related Issues Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Founder or founders experience in the industry
No experience Moderate experience
Experienced
2. Founder or founders’ skills as they relate to the proposed new venture’s product or service
No skills Moderate skills Skilled
3. Extent of the founder or founders professional and social networks in the relevant industry
None Moderate Extensive
4. Extent to which the proposed new venture meets the founder or founders’ personal goals and aspirations
Weak Moderate Strong
5. Likelihood that a Unlikely Moderately likely Very likely
OLLIE’S ICE CREAM CART 25
team can be put together to launch and grow the new venture
Part 5: Financial Issues Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Initial capital investment
High
Moderate Low
2. Number of revenue drivers (ways in which the company makes money)
One Two to three More than three
3. Time to break even
More than two years
One to two years Less than one year
4. Financial performance of similar businesses
Weak Modest Strong
5. Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via bootstrapping
Low
Moderate High
Overall Potential Score
(-5 to +1) Overall Potential of the Business Idea Based on Each Part
Suggestions for Improving the Potential
Part 1: Strength of Business Idea
+3
High potential Moderate potential
Low potential
Part 2: Industry-Related Issues
+3
High potential Moderate potential
Low potential
Part 3: Target Market and Customer-Related Issues
+4
High potential Moderate potential
Low potential
OLLIE’S ICE CREAM CART 26
Part 4: Founder- (or Founders-) Related Issues
+3
High potential Moderate potential
Low potential
Part 5: Financial Issues
+3
High potential Moderate potential
Low potential
Overall Assessment +17
High potential Moderate potential
Low potential
OLLIE’S ICE CREAM CART 27
Appendix B
Part 2: Industry/Market Feasibility
Industry Attractiveness
Low Potential Moderate
Potential
High Potential
1) Number of competitors Many Few None
2) Age of industry Old Middle aged Young
3) Growth rate of industry Little or no
growth
Moderate
growth
Strong growth
4) Average net income for firms
in the industry
Low Medium High
5) Degree of industry
concentration
Concentrated Neither
concentrated
nor fragmented
Fragmented
6) Stage of industry life cycle Maturity phase
or decline phase
Growth phase Emergence
phase
7) Importance of industry’s
products and/or services to
customers
“Ambivalent” “Would like to
have”
“Must have”
8) Extent to which business &
environmental trends are
moving in favor of the
industry
Low Medium High
OLLIE’S ICE CREAM CART 28
9) Number of exciting new
product and services
emerging from the industry
Low Medium High
10) Long-term prospects Weak Neutral Strong
Target Market Attractiveness
Low Potential Moderate
Potential
High Potential
1) Number of Competitors in
target market
Many Few None
2) Growth rate of firms in the
target market
Little to no
growth
Slow growth Rapid growth
3) Average net income for the
firms in the target market
Low Medium High
4) Methods for generating
revenue in the industry
Unclear Somewhat
clear
Clear
5) Ability to create “barriers to
entry” for the potential
competitors
Unable to
create
May or may
not be able to
create
Can create
6) Degree to which customers
feel satisfied by the current
offerings in the target market
Satisfied Neither
satisfied or
dissatisfied
Unsatisfied
7) Potential to employ low-cost Low Moderate High
OLLIE’S ICE CREAM CART 29
guerrilla and/or buzz
marketing techniques to
promote the firm’s product or
services
8) Excitement surrounding new
product/service offerings in the
target market
Low Medium High
Market Timeliness
Low Potential Moderate
Potential
High Potential
1) Buying mood of customers Customers are
not in a buying
mood
Customers are
in a moderate
buying mood
Customers are in
an aggressive
buying mood
2) Momentum of the market Stable to
losing
momentum
Slowly gaining
momentum
Rapidly gaining
momentum
3) Need for a new firm in the
market with your offerings or
geographic location
Low Medium High
4) Extent to which business and
environmental trends are
moving in favor of the target
Low Medium High
OLLIE’S ICE CREAM CART 30
market
5) Recent or planned entrance of
large firms into the market
Large firms
entering the
market
Rumors that
large firms may
be entering the
market
No larger firms
entered the
market or are
rumored to be
entering the
market
Conclusion
A) Industry Attractiveness In the Victoria area there are a variety of ice cream shops. From known
competitors such as Dairy Queen, there is also a wide spread of locally-owned and operated ones
as well. There are over twenty competitors in the Victoria area, but only one in the Oak Bay area
in close proximity to the Oak Bay Beach Hotel (The Best Ice Cream in Victoria, 2019).
Although the age of ice cream dates back to around the 1500s, the evolving growth of the
industry continues to evolve as ice cream becomes more adaptability to people wishing to live a
healthier lifestyle, or whom may have allergies to dairy (The History of Ice Cream, 2019).
Today, we are seeing trends of vegan ice cream or ice creams that are half the sugar, and
it is prompting consumers to opt for different choice than the typical type of ice cream we are
used to. In the Oak Bay area near the Oak Bay Beach Hotel, there is certainly a desire for more
options around the area. The closest ice cream place is located at the Willows Beach Tea House.
Although it is a top competitor, it still is about a 20-minute walk from the hotel directly and the
OLLIE’S ICE CREAM CART 31
majority of guests who stay do not have vehicles. The business and environmental trend is very
high in this area because the environment could benefit by adding more options for ice cream
during the hot summer months.
B) Target Market Attractiveness
For the purpose of this analysis, the target market for the ice cream cart is for hotel
guests, and the local community in Oak Bay. There are not a lot of competitors with the same
desire, but the competitors in the downtown area focus a lot on the high tourism levels we see in
the summer. By comparing the income possible for ice cream trucks in regard to an ice cream
cart they are similar. The average ice cream truck can make anywhere between $200-$1,000 or
more a day during the summer time, which would help boost revenue for the Oak Bay Beach
Hotel (How Much Income Does an Ice Cream Truck Driver Make Per Day, 2016).
By creating an option to enjoy ice cream at one of the most popular hang-out spots in
Oak Bay for families, seniors and of course hotel guests, it would leave guests satisfied with the
additional option for food and beverage.
C) Market Timeliness
In the summer time, consumers tend to vouch for ice cream desserts due to the factors
associated with flavour. The warm summer days trigger customers to want something that has
been transformed to be customizable to what you prefer (Drayer, 2018). The market for ice
cream and ice cream substitution treats is constantly evolving as it adapts to each consumers
desire. By creating and implementing an ice cream cart to be located at the Oak Bay Beach
Hotel, it allows locals and hotel guests to take advantage of the prime location, so they do not
need to venture far to satisfy that craving during the summer days. Due to the residential area
OLLIE’S ICE CREAM CART 32
near the hotel, it would be extremely difficult for competitors to enter the market, thus allowing
the business to flourish.
D) Industry/Market feasibility (Circle the correct response)
Not Feasible Unsure Feasible
E) Suggestions for Improving Industry/Market feasibility
To improve industry/market feasibility, it is crucial our ideas and flavours are different
than competitors. By creating authentic flavours with local ingredients for what our food and
beverage team already strives for, we are certain we can gain the competitive edge as long as
we continue to improve our products.
Organizational Feasibility
Management Prowess
Low Potential Moderate
Potential
High Potential
1) Passion for the business idea Low Moderate High
2) Relevant industry experience None Moderate Extensive
3) Prior entrepreneurial
experience
None Moderate Extensive
4) Depth of professional and
social networks
Weak Moderate Strong
5) Creativity among management
team members
Low Moderate High
6) Experience and expertise in
cash flow management
None Moderate High
OLLIE’S ICE CREAM CART 33
7) College graduate No college
education
Some college Graduated or are
currently in
college
OLLIE’S ICE CREAM CART 34
Resources Sufficiency Ratings Resource Sufficiency 1 2 3 4 5 Office space 1 2 3 4 5 Lab space, manufacturing space, or space to launch a
service business 1 2 3 4 5 Contract manufacturers or outsource providers 1 2 3 4 5 Key management employees (now and in the future) 1 2 3 4 5 Key support personnel (now and in the future) 1 2 3 4 5 Key equipment needed to operate the business
(computers, machinery, delivery vehicles) 1 2 3 4 5 Ability to obtain intellectual property protection on key
aspects of the business 1 2 3 4 5 Support of local and state government if applicable for
business launch 1 2 3 4 5 Ability to form favorable business partnerships Ratings: Strong, Neutral, or Weak
Neutral Proximity to similar firms (for the purpose of knowledge sharing)
Strong Proximity to suppliers Strong Proximity to customers Strong Proximity to a major research university (if applicable) Conclusion
A) Management Prowess
Under the management prowess analysis, there is a high passion for the business idea. As
the food and beverage director at the Oak Bay Beach Hotel, being able to expand the hotel’s
amenities not only to the hotel guests, but to the local community would open a lot of
opportunities. With over eight years’ experience in the food and beverage sector, and with a
specialization with ice cream products through Dairy Queen, it has prepared me for the concept
of bringing an ice cream cart into the Oak Bay Beach Hotel. Furthermore, with an extensive
background in customer service, I have developed the necessary social networks required to
market this business idea. In addition, our management team has an extensive background in the
hospitality industry. Although we do not have entrepreneur experience, we are keen for a new
challenge and for the opportunity to extend our services.
OLLIE’S ICE CREAM CART 35
B) Resource Sufficiency
In terms of access to resources, I would have my own dedicated office to oversee the
food and beverage department in addition to the extension to the ice cream cart. Furthermore,
we would implicate our pastry chef to assist in the creation of the ice cream flavours and he
would use his space to create our products. We would allow him to make the necessary calls
to decide if he would like to have assistance in creating flavours for inventory. It has been
estimated to cost around $500 to start our initial stock, and we anticipate a low waste cost
because as long as the ice cream is kept in a frozen area, the quality will remain good (How
Much Income Does an Ice Cream Truck Driver Make Per Day, 2016).
By partnering this concept with the Oak Bay Beach Hotel, we will have our resources
met due to the strong partnership with our owners, and the vision to have this service
available during the high season. Due to the existing relationship to Sysco and other
companies, having our ingredients delivered will be no problem in addition to our ordering as
is.
C) Organizational Feasibility (Circle the Correct Response)
Not Feasible Unsure Feasible
D) Suggestions for Improving Organizational Feasibility
To improve organizational feasibility, I want to ensure that should we see a demand in
our product, then we are able to pull in the necessary personnel to assist. In order to to follow
with this, we could implement cross-training our staff to have the skills to create ice cream
desserts, so everyone is able to assist if needed.
OLLIE’S ICE CREAM CART 36
Financial Feasibility Total Start-Up Cash Needed
Capital Investments Amount Property $0 Furniture and fixtures $10,000 Computer equipment $0 Other equipment $0 Vehicles $0 Operating Expenses Amount Legal, accounting, and professional services $0 Advertising and promotions $1,000 Deposits for utilities $0 Licenses and permits $500 Prepaid insurance $500 Lease payments $0 Salary and wages $12,000 Payroll taxes $1,500 Travel $0 Signs $1,000 Tools and supplies $1,000 Starting inventory $500 Cash (working capital) - Other expense 1 - Other expense 2 - Total Startup Cash Needed = $28,000 Comparison of the Financial Performance of Proposed Venture to Similar Firms
Annual Sales
Estimate of Proposed Venture’s Annual Sales— Year 1
Explanation of How the Estimate was Computed
Estimate of Year 1 Sales: $35,000 +/-
Summary: How proposed annual sales, on average, compares to similar firms (circle one)
Below Average Average Above Average
• Small ice cream cone priced at $3.25
• Medium ice cream cone priced at $4.00
• Large ice cream cone priced at $4.50
Assuming 20-75 cones are sold each day during the summer months of
OLLIE’S ICE CREAM CART 37
May-September, we anticipate bringing in between $250 a day. Thus, would mean a Year 1 Sale amount an estimate of over $35,000 for the first year (Open May- September, 7 days a week for a total of 5 months open).
Estimate of Year 2 Sales: $60,000 +/-
Summary: How proposed annual sales, on average, compares to similar firms (circle one)
Below Average Average Above Average
Making the assumption the above information for the first year does not change too much, we anticipate making an additional $100 per day, averaging around $350 per day. We expect to make an estimate of $60,000 for the second year (Open May-September, 7 days a week for a total of 5 months open).
Net Income
Estimate of Proposed Venture’s Net Income— Year 1
Explanation of How the Estimate was Computed
Estimate of Year 1 Net Income: $7,000+/-
Summary: How proposed net income, on average, compares to similar firms (circle one)
Below Average Average Above Average
$35,000 minus the estimated $28,000 required for an investment = $7,000
Estimate of Year 2 Net Income: $42,000 +/-
Summary: How proposed net income, on average, compares to similar firms (circle one)
Below Average Average Above Average
With the assumption our capital investment is paid off, we will only require to pay for our operating expenses for the season which we can anticipate it will not fluctuate too much due to partnership with the Oak Bay Beach Hotel budget for the food and beverage department.
Overall Financial Attractiveness of Proposed Venture Assessment Tool Low Potential Moderate Potential High Potential 1. Steady and rapid growth in
sales during the first one to three years in a clearly defined target market
Unlikely Moderately likely Highly likely
2. High percentage of Low Moderate Strong
OLLIE’S ICE CREAM CART 38
recurring income—meaning that once you win a client, the client will provide recurring sources of revenue
3. Ability to forecast income and expenses with a reasonable degree of certainty
Weak Moderate Strong
4. Likelihood that internally generated funds will be available within two years to finance growth
Unlikely Moderately likely Highly likely
5. Availability of exit opportunity for investor if applicable
Unlikely to be unavailable
May be available Likely to be available
Conclusion
A) Total Startup Cash Needed
After careful research, it is concluded there will be a standard Startup cost required. From
purchasing the necessary equipment needed to hold frozen desserts, to buying the cart and
ensuring the staff is able to operate in the new environment, the basics will be required.
Because we are choosing to operate at Kate’s Café during the high season, we have the
option to have the cart outside when the weather is appropriate or inside when the weather is
not ideal. This allows us to save large amounts on our start up ice cream cart because we are
simply adding an extension to our food and beverage system that will help elevate the overall
guest experience. Kate’s Café already will have the seating area required for our guests, but
we may need to expand the area to adapt to large growth we can anticipate (Flanagan, 2017).
B) Financial Performance of Similar Businesses
Although, it was difficult to discover exact numbers to compare to similar businesses,
from previous experience, it was concluded that for independently owned and operated ice
cream businesses, we were similar to their numbers, if not slightly higher. Being in the Oak
OLLIE’S ICE CREAM CART 39
Bay area gives us the competitive advantage because we are able to target our market well
since we are one of the only ones available in the area to residential guests living within a
ten-minute walk, and directly to hotel guests when the hotel is forecasted to see over 80%
occupancy over the summer season.
Financial Feasibility (Circle the Correct Response)
Not Feasible Unsure Feasible
Suggestions for Improving Financial Feasibility
To improve our financial feasibility, more research is required to conclude exact numbers
for costing. Due to the specific nature of this market, it can be challenging to find exact finances.
With the fortunate partnership with the Oak Bay Beach Hotel, it leaves us with the flexible in
budgeting because the ownership group has given us the support to make the extension happen
within reasons.
Overall Feasibility: Summary and Conclusion
Overall Feasibility of the Business Idea Based on Each Part
Suggestions for Improving the Feasibility
Industry/Market Feasibility
Not feasible Unsure Feasible
Ensure products are diverse from competitors
Organizational Feasibility
Not feasible Unsure Feasible
Ensure communication for staffing is prioritized
Financial Feasibility
Not feasible Unsure Feasible
Finances will be invested by the Oak Bay Beach Hotel
Overall Assessment Not feasible Unsure Feasible
Solid idea to assist in boosting revenue during high season in order to attract loyal business from guests and the local community
OLLIE’S ICE CREAM CART 40
Conclusion
In conclusion to the overall assessment, it is with great pleasure that we see the business
idea for adding a seasonal ice cream cart during the high season at the Oak Bay Beach Hotel be a
profitable choice. Not only can we expect to see a return on investment, but we also can improve
the local community with more opportunities for long-term revenue during the off season by
capturing the loyalty of guests during the high season who may have not been to the hotel
otherwise until the opening of one of the only ice cream spots in the area.
OLLIE’S ICE CREAM CART 41
Appendix C
PEST Analysis
Political Economic Social Technological
Political regulations
about ingredients and
the debate around
climate change
Increased market
for street vendors
is growing
Increased awareness
about the variety of
options related to ice
cream (dairy free
options)
Processing payment
through payment
systems through an
iPad or cell phone
device
Allows people to
have a side job
and a more diverse
work schedule
than what the 9-5
offers
Mobile carts/trucks are
on the rise as they are
becoming convenient for
not only operators but
for consumers as well
Fosters social interaction
in a diverse environment
OLLIE’S ICE CREAM CART 42
Appendix D
Analysis of Investments and Salary
Name Position Pay % Ownership Investment in
Firm
Jason Ratzlaff Owner S500,000 100% $50,000 +/-
Michelle Le
Sage
General
Manager
$120,000 0% $0
Cassandra
Maurice-Magee
Director of Food
and Beverage
$60,000 0% $0
Lindsay Fleming Ollie’s Ice
Cream Cart
Manager
$25,000 0% $0
Teddy Brown Pastry and Ice
Cream Chef
$30,000 0% $0
OLLIE’S ICE CREAM CART 43
Appendix E
Jason Ratzalaff (Owner)
Michelle Le Sage (General Manager)
Cassandra Maurice-Magee (Director of Food & Beverage)
Lindsay Fleming Teddy Brown (Ollie’s Ice Cream Cart Manager) (Pastry and Ice Cream Chef)
OLLIE’S ICE CREAM CART 44
Appendix F
Operations Flow Diagram: Guest Buying Decision
Guest arrives at
Ollie’s Ice Cream Cart
Oak Bay Beach Hotel employee greets guest in a
friendly, professional
manner
Guest asks to try a sample before
deciding
Employee goes over the menu with guest and informs
him what is available
Guest decides and orders ice cream
Guest takes a minute to
decide what they would like to order
Employee completes order for
guest and processes payment
Guest accepts order
and is satisfied with experience