Business plan - Food Truck
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sample_business_plan.docxRide Smooth, LLC Business Plan Ima Student February 2, 2016
Executive Summary
The University of Indianapolis is a growing campus bustling with faculty, staff, students, and community members. University of Indianapolis is home to nearly 6,000 students and faculty and staff members. Ride Smooth, LLC is a food truck establishment, with an opening date of April 2016, primarily providing delicious, healthy smoothies made with fresh never frozen fruits and vegetables that will be parked on the bustling campus of the University of Indianapolis. The sales strategy that Ride Smooth, LLC will be using is differentiation. Ride Smooth will differentiate through its fresh never frozen, prepared right in front of the customer policy.
Ride Smooth, LLC’s Mission Statement is as follows: Ride Smooth, LLC is a food truck company that is more than just making smoothies and providing organics snacks. Ride smooth seeks to provide the UIndy Campus and the surrounding community with a healthy option that will get them on the right track to becoming a happier and healthier version of themselves.
Company Description
Ride Smooth, LLC is a food truck establishment, with an opening date of April 2016, primarily providing delicious, healthy smoothies made with fresh never frozen fruits and vegetables. Not only will Ride Smooth, LLC provide energizing, organic smoothies, but this convenient, mobile establishment will also provide its customers with various healthy snacks including nuts, muffins, breads, and dedicated gluten free and vegan snacks. Ride Smooth, LLC’s mission is a food truck company that is more than just making smoothies and providing organics snacks. Ride Smooth, LLC seeks to provide the UIndy Campus and the surrounding community with a healthy option on the go that will get them on the right track to becoming a happier and healthier version of themselves. Ride Smooth, LLC will be located on the corner of Otterbein and Westminster Ave on the public street on the campus of University of Indianapolis.
Market Analysis
The University of Indianapolis is a growing campus bustling with faculty, staff, students, and community members. University of Indianapolis is home to nearly 6,000 students and faculty and staff members. Therefore, Ride Smooth, LLC’s target customer will primarily be UIndy faculty, staff, and students. Ride Smooth, LLC will also have a reach customer of the surrounding neighborhoods.
During an observational study, counting food traffic, it was found that the most profitable times to have the food truck out would be 7:30 to 2:30 near the corner of Otterbein and Westminster Avenues.
Ride Smooth, LLC is going to differentiate itself from their competition, including nearby food places such as: UIndy dining services, Subway, Hound Express, Perk I, II, III, Dairy Queen, McDonald’s, Walgreens, Walmart, Dunkin’ Donuts. To differentiate from these well-known and busy establishments, Ride Smooth, LLC is going to focus upon bring a better, healthier alternative that has never been frozen, induced with hormones or refrigerated for longer than two days. Ride Smooth, LLC will instead focus upon ensuring organic, vegan, and gluten free products, so that our customers can receive a delicious, healthy, nutritious and tailor made smoothie and snack choices.
According to an article supplied by Entrepreneur Media, Inc., “Among the most important costs you'll have is insurance. You need to cover both a business and a vehicle against as many potential risks as possible…You need both liability and theft insurance. You might even consider employment interruption insurance in case a natural disaster makes it impossible to do business” (Entrepreneur Media, Inc., 2015). Ride Smooth, LLC will need to take all precautions that are available to protect themselves from potential trouble, and getting adequate insurance is the best way possible.
Not only will insurance be important for Ride Smooth, LLC to protect itself, but the following will be required by law: licenses, permits, health and safety regulations, labor rules and regulations, registering with the state, food handler’s permit, music license and Employee ID numbers (Jones, 2015). Ride Smooth, LLC will have all legalities, paperwork, and registering accomplished before January 2016.
Organization
The following is a list of the equal partners of ride smooth and their functions in the business:
Group 1
· Abigail Adams: Accounting
· Dolley Madison: Supply Chain
· Mary Lincoln: Operations
· Anna Harrison: Marketing
· Jane Pierce: Sales
· Elizabeth Ford: Finance
· Anna Roosevelt: Management
Ride Smooth, LLC will be operating under the scope of a Limited Liability company in order to keep personal and business assets separate. The following is a statement that describes better why Ride Smooth has chosen to be a Limited Liability Company: “LLC is a business structure that has flexible organization, is privy to tax efficiencies and provides limited liability for its members. Members may include individuals, corporations, other LLCs and foreign entities. One benefit of an LLC is that there is no maximum number of members. An LLC is also known as a ‘hybrid’ business structure in the sense that it brings together elements of a corporation and limited liability partnerships” (Michael H. Cohen, 2015).
Service
Ride Smooth, LLC will be purchasing its organic ingredients from Whole Foods because their mission statement lines up with Ride Smooth, LLC. It is as follows: “Our motto—Whole Foods, Whole People, Whole Planet — emphasizes that our vision reaches beyond food retailing. In fact, our deepest purpose as an organization is helping support the health, well-being, and healing of both people — customers, Team Members, and business organizations in general — and the planet” (Whole Foods Market, 2015). Options for the smoothies will include the following: Acai, Apple Juice, Banana, Blueberry Juice Blend, Kiwi Juice Blend, Orange Juice, Pineapple, Raspberry Puree, Strawberries, Carrot, Kale, Almonds, Peanut butter, Protein Blend - Chocolate, Protein Blend – Vanilla, Whey Protein – Chocolate, Whey Protein – Vanilla, Sunbutter Raw Plant-Based Protein, Seasonal.
Marketing and Sales
The marketing strategy that Ride Smooth, LLC will be mainly focused around social media and word of mouth. Ride Smooth will have a Facebook page, Instagram page, Twitter page and their own website. Ride Smooth, LLC will also use Radio spots on local radio stations. Because UIndy is the target audience of Ride Smooth, LLC, we will be using flyers and ads on the intranet to advertise and educate the campus community about Ride Smooth, LLC.
The sales strategy that Ride Smooth, LLC will be using is differentiation. “A food truck’s success depends on its ability to establish a brand and stick to it, so develop an identity and focus on perfecting it. If your food truck doesn’t differentiate itself from the competition, consumer acceptance of your truck’s concept is bound to wane quickly” (Myrick, 2015). Ride Smooth, LLC will differentiate through its fresh never frozen, prepared right in front of the customer policy. Ride Smooth, LLC also be using niche marketing so that we can focus on providing easy to access to organic, healthy foods to its customers who are particularly interested in clean eating. According Liz Jordan “Add a dash of niche marketing. Food trucks can afford to be highly specialized to reach a certain target or taste. Take The Dump Truck, which serves dumplings. Period. If you like dumplings, you will be there” (Jordan, 2015).
The sale prices for Ride Smooth, LLC will be:
· Small Smoothie $2.00
· Medium Smoothie $4.00
· Large Smoothie $6.00
· Organic Snacks $2.00
Funding
Funding requirements for starting up will be $65,000 to meet rental, equipment, truck, licensing, and advertising. Projected sales for the first year are $400,000. Retained Earnings will be $124,760 with a 100% plowback to provide support for future growth.
Appendix A Profit/Loss Statement
Category |
Year 1 |
Year 2 |
Year 3 |
|
|
|
|
|
|
Sales |
400000 |
480000 |
576000 |
|
Cost of goods sold |
150000 |
180000 |
216000 |
|
GROSS PROFIT |
250000 |
300000 |
360000 |
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
Salary (office & overhead) |
50000 |
55000 |
60500 |
|
Payroll (taxes, etc.) |
0 |
0 |
0 |
|
Outside services |
200 |
220 |
242 |
|
Supplies (office & operation) |
500 |
400 |
300 |
|
Repairs & maintenance |
500 |
550 |
605 |
|
Advertising |
250 |
275 |
302.5 |
|
Car, delivery & travel |
60000 |
0 |
0 |
|
Accounting & legal |
250 |
275 |
302.5 |
|
Rent |
0 |
0 |
0 |
|
Telephone |
500 |
550 |
605 |
|
Utilities |
1000 |
1100 |
1210 |
|
Insurance |
1000 |
1100 |
1210 |
|
Taxes (real estate, etc.) |
0 |
0 |
0 |
|
Interest |
1000 |
1100 |
1210 |
|
Depreciation |
500 |
500 |
500 |
|
Other expenses |
150 |
165 |
181.5 |
|
TOTAL EXPENSES |
115850 |
61235 |
67168.5 |
|
|
|
|
|
|
NET PROFIT BEFORE TAXES |
134150 |
238765 |
292831.5 |
|
|
|
|
|
|
Income taxes |
9390.5 |
16713.55 |
20498.21 |
|
NET PROFIT AFTER TAX |
124760 |
222051.5 |
272333.3 |
|
|
|
|
|
|
Owner draw or dividends |
0 |
0 |
0 |
|
ADJUSTED TO RETAINED |
124760 |
222051.5 |
272333.3 |
Bibliography Entrepreneur Media, Inc. (2015). Are You Financially Equipped to Run a Food Truck? Retrieved from Entrepreneur.com: http://www.entrepreneur.com/article/233383 Jones, J. (2015). How to Start a Mobile Food Truck Business. Retrieved from Small Business Chronicles: http://smallbusiness.chron.com/start-mobile-food-truck-business-4419.html Jordan, L. (2015). Marketing Takeaways from the Food Truck Trend. Retrieved from DANA: http://www.danacommunications.com/food-truck-marketing-trends/ Michael H. Cohen, E. (2015). LegalZoom.com, Inc. Retrieved from Starting an LLC in Indiana: https://www.legalzoom.com/articles/indiana-llc-guide Myrick, R. (2015). Running a Food Truck For Dummies. Retrieved from http://www.dummies.com/how-to/content/ten-tips-for-preventing-food-truck-failure.html: http://www.dummies.com/how-to/content/ten-tips-for-preventing-food-truck-failure.html Whole Foods Market. (2015). Our Values Our Mission. Retrieved from Whole Foods Market: http://www.wholefoodsmarket.com/careers/our-values-and-mission
