Are you about starting a homemade chocolate retail business? If YES, here is a complete sample homemade chocolate retail business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a homemade chocolate retail business.
We also took it further by analyzing and drafting a sample homemade chocolate retail marketing plan template backed up by actionable guerrilla marketing ideas for homemade chocolate retail businesses. So let’s proceed to the business planning section.
Table of Content
- 2. Executive Summary
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Why Start a Homemade Chocolate Retail Business?
Someone with little schooling and no serious business background and training can successfully launch a homemade chocolate retail business. The major things you would need to have in place to make success from this type of business is a good location, well – packaged homemade chocolate and of course good customer service cum accounting skills.
The truth is that if your store is located in an area with good human and vehicular traffic, a place with the right demographic composition (children and adults who love homemade chocolate), you may not have to struggle to get people to buy your homemade chocolate.
If you are sure this type of business is what you truly want to do after you must have undertaken your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services amongst other areas of interest to you.
Below is a sample homemade chocolate retail business plan template that will help you successfully write yours without much stress;
A Sample Homemade Chocolate Retail Business Plan Template
1. Industry Overview
Homemade chocolates are chocolates that are made from the home and not in a factory of some sort where mass production of chocolates is produced with a short period of time. Those who are into homemade chocolate retail businesses ensure that they target locations where they can easily attract children because children are the major consumers of products such as homemade chocolates and candies et al.
Starting a homemade chocolate retail business is a very easy business to start and it is a business that be started with very minimal start – up capital. Getting the right formula and good stock keeping records are the secrets of running a homemade chocolate retail business.
Chocolate consumption seems to be a mainstay among US consumers. In recent time, the revenue for the Chocolate Stores industry that homemade chocolate retail business is a part of has expanded and will continue to increase over the next half a decade.
Rising per capita disposable income is expected to drive the majority of industry growth. Many consumers consider chocolates daily luxuries, in which they will indulge regardless of economic conditions. Although the majority of branded chocolate will be retailed at supermarkets and other retailers outside the industry, industry operators will continue to benefit from rising disposable incomes and growing demand for homemade chocolates. Limited cocoa supply will also keep homemade chocolate selling prices high, aiding industry revenue and profit.
The Candy cum Chocolate Stores industry of which homemade chocolate retail business is a part of is indeed a thriving sector of the economy of the united states of America and the industry generates a whooping sum of well over billion annually from numerous candy cum chocolate stores (homemade chocolate retail business inclusive) scattered all around the United States of America.
The industry is responsible for the employment of several people. Experts project the candy cum chocolate stores industry to grow at a 1.9 percent annual rate within 2011 and 2016. The establishment in this industry that has a dominant market share in the United States of America are; Godiva, See’s Candies and Lindt & Sprungli Inc.
If you are contemplating starting your own homemade chocolate retail business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies. If you get some key factors wrong before starting your own homemade chocolate retail business, then you are likely going to struggle to stay afloat. But over and above, chocolate retail business is a thriving and profitable business especially if you are creative and ready to take on the available market within the location where your business is located.
2. Executive Summary
Ashley Brownie® Homemade Chocolate Stores is a neighborhood mom and pop homemade chocolate retailing business that will be based in Pierre – South Dakota, USA. We have been able to secure a corner piece store facility where we intend launching our first homemade chocolate retail store before venturing out to place our well – branded homemade chocolate cum candy kiosks in strategic locations all around South Dakota and key locations in the United States of America.
Our business goal as neighborhood homemade chocolate retailing business is to become the number one choice for residence in the whole of the communities where we intend retailing our homemade chocolates. Aside from retailing homemade chocolates, we are set to also retail a wide range of candies, chocolates, chewing gums, sweeties, and toffees et al from different manufacturers both from the United States of America and from other countries.
Ashley Brownie® Homemade Chocolate Stores is set to redefine how neighborhood based homemade chocolate retail business should be run, not just in Pierre – South Dakota, but also in the whole of the United States of America. This is particularly why we have put plans in place for continuous training of all our chocolate markers, store keepers and other back office staff members at regular interval.
No doubt the demand for homemade chocolates and other related products is not going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the communities where we intend retailing our homemade chocolates. In the nearest future, we will ensure that we create a wide range of distribution channels via franchising. With that, we know we will be able to maximize profits in our business.
Our strongest selling point at Ashley Brownie® Homemade Chocolate Stores is the unique strategy of ensuring that we brand kiosks and strategically position them in different locations prone to high human traffic all around Pierre – South Dakota. There is hardly any customer who would taste our homemade chocolates and who would not want to come back and make more purchase – we take delight in welcoming repeated customers over and over again.
Ashely Brownie® Homemade Chocolate Stores will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.
Our plan is to position our homemade chocolate retail business to become the leading brand in the homemade chocolate retail line of business in the whole of Pierre – South Dakota, and also to be amongst the top 2 homemade chocolate brand in the whole of Pierre – South Dakota within the first 5 years of starting our business.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our market research and feasibility studies and we are enthusiastic and confident that Pierre is the right place to launch this type of business before spreading to other cities all across the state of South Dakota.
Ashely Brownie® Homemade Chocolate Stores is a family business that is owned by Mrs. Ashely Brown and her immediate family members. Mrs. Ashely Brown has a B.Sc. in Business Administration, with well over 10 years of experience in the retailing and production industry, working for some of the leading chocolate production brand in the United States. Although the business is launching out with just one outlet in Pierre, but we have plans to open other outlets (well – branded homemade chocolate kiosks) all around South Dakota.
3. Our Products and Services
At Ashely Brownie® Homemade Chocolate Stores we are set to retail homemade chocolate and a wide range of candies, chocolates, chewing gums, sweeties, and toffees et al from different manufacturers both from the United States of America and from other countries.
Our intention of starting Ashely Brownie® Homemade Chocolate Stores is to make profits from the candy and chocolate stores retailing industry and we will do all that is permitted by the law in the United States to achieve our aim and ambition.
Here are the products that will be found in our homemade chocolate store and kiosks;
- Homemade Chocolate
- Hard candy
- Milk chocolates and caramels
- Dark chocolate
- Soft or creamy candies, like candy corn
- Chewing gum and gumballs
- Products from top candy production companies in the United States of America such as Almond Joy, Aplets & Cotlets, Big Hunk, Reese’s Pieces, Mounds, U-No Bar, and Ayds et al
4. Our Mission and Vision Statement
- Our vision as a neighborhood homemade chocolate retailing business is to become the number one choice in the whole of Pierre and also to be amongst the top 2leading homemade chocolate retailing business in the State of South Dakota.
- Our mission is to build a highly successful, and profitable homemade chocolate retailing business that will grow from one store in Pierre to different locations all around South Dakota. We want to become a one stop homemade chocolate retail store cum candy shop.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our homemade chocolate retail business on the right business foundation.
As a matter of fact, we are set out to build a homemade chocolate retail business that will favorably compete with some of the leading brand such as Godiva, See’s Candies and Lindt & Sprungli Inc. in the United States of America and Canada.
We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied, enjoy homemade chocolates and candies bought from our store. In other to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and standard operating processes in place that will help us meet our clients demand and run the business on auto pilot. The success of our homemade chocolate business will be anchored on the team not on any individual.
With the nature of homemade chocolate retailing business, we intend running and the plan to strategically locate our well – branded homemade chocolate kiosks in various locations all around South Dakota; we are only expected to employ more than it is required to run a conventional candy store retailing business.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Store Manager
- Human Resources and Admin Manager
- Homemade Chocolate Markers
- Merchandize Manager
- Accountants / Cashiers
- Customer Services Executive
Roles and Responsibilities
Chief Executive Officer – Owner:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
- Responsible for managing the daily activities in the store
- Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
- Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Controls goods distribution and supply inventory
- Supervise the workforce in the candy store sales floor.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality of candy products on our rack
- Responsible for the purchase of goods and products for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Homemade Chocolate Markers
- Responsible for the production of various flavor of homemade chocolates
- In charge of packaging finished homemade chocolates
- Handles any other duties as assigned by the chief executive office
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
- Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- make suggestions and encourage purchase of products
- Bag or package purchases and gift wrap merchandise
- Responsible for cleaning the store facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the store facility
- Handles any other duty as assigned by the store manager.
6. SWOT Analysis
Due to our drive for excellence when it comes to running a standard homemade chocolate retailing business, we were able to engage some of the finest business consultants in Pierre – South Dakota to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard homemade chocolate retailing business that in the nearest future can compete favorably with leading brand such as Godiva, See’s Candies and Lindt & Sprungli Inc. in the United States of America
In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Pierre – South Dakota and also in other cities that we intend positioning our well – branded homemade chocolate kiosks.
Here is a of what we got from the critically conducted SWOT Analysis Ashely Brownie® Homemade Chocolate Stores;
Our location, the Business model we will be operating on (strategically locating our well branded homemade chocolate kiosks in various locations), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for Ashely Brownie® Homemade Chocolate Stores.
A major weakness that may count against us is the fact that we are a new homemade chocolate retailing business in Pierre – South Dakota and we don’t have the financial capacity to compete with multi – million dollars candy stores like Godiva, See’s Candies and Lindt & Sprungli Inc. and even Supermarket and grocery store outlets like Albertson, Kroger, Publix Super Markets Inc. and co when it comes to retailing homemade chocolates and candies at a rock bottom prices.
The fact that we are going to be operating our homemade chocolate retail store in one of the busiest streets in Pierre – South Dakota provides us with unlimited opportunities to sell our homemade chocolates and candies to a large number of people.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our homemade chocolate retail store; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new candy store or even a supermarket in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
Homemade chocolate retailing business and retailing business generally has been in existence for as long as human started trading goods, which is why you can easily find mom and pop shops scattered all around the United States. In most cases, those people that you find running mom and pop business in a very small scale in a street corner may not have the education that would propel them to want to aspire to run the business on a large scale.
Just like in any retailing business, it is common to find homemade chocolate retailing stores locating their business in a location with the right demographic composition and a place that is visible to their target market. For example, it will be suicidal to locate a business such as homemade chocolate / candy store in a location that is predominantly inhabited by old people and retirees; if you make the mistake of doing that, you will definitely struggle with the business and sooner or later you may close shop.
The trend in the homemade chocolate retailing business is to locate such business in places with a good percentage of children. Places like schools, parks, estates, street corners, churches and other religious center where children can easily be attracted.
Lastly, it is a common trend to find homemade chocolate / candy stores that are determined to stay top if the game retail all sort of candies, chocolates, chewing gums, sweeties, and toffees et al from different manufacturers both from the United States of America and from other countries. With that, they can be considered a one stop homemade chocolate cum candy shop and if they retail in rock bottom prices, then they are going to be stay atop for a long time.
8. Our Target Market
As a matter of fact, the candy store retailing industry has one of the widest range of customers; everybody on planet earth has one or more things that they would need from a candy store whether you are an adult or a kid. It is difficult to find people around who don’t patronize candy stores even if it is to buy homemade chocolates.
In view of that, we have positioned our homemade chocolate retailing store to service the residence of Pierre and every other location where our well – branded kiosks will be located all over South Dakota. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to retail homemade chocolate and a wide range of candies to the following groups of people;
- School Children
- Bachelors and Spinsters
- Corporate Executives
- Business People
- About to wed couples
- Expectant Mothers
- Sports Men and Women
A close study of the candy stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading homemade chocolate / candy stores in Pierre – Alabama.
Ashely Brownie® Homemade Chocolate Stores is launching a standard homemade chocolate retailing business that will indeed become the preferred choice of residence of Pierre – South Dakota. Our homemade chocolate retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Pierre – South Dakota. We have enough parking spaces that can accommodate about 20 cars per time.
One thing is certain; we will ensure that we have a wide range of homemade chocolates, and candies in our store at all times. It will be difficult for customers to visit our candy store and not see the product that they are looking for. One of our business goals is to make Ashely Brownie® Homemade Chocolate Stores a one stop candy shop. Our excellent customer service culture, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups homemade chocolate / candy stores in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Ashely Brownie® Homemade Chocolate Stores is in business to retail a wide range of homemade chocolates and candies to the residence of Pierre – South Dakota. We are in the candy stores industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be the retailing of a wide range of candies at affordable prices. We will retail candy products such as;
- Homemade chocolates
- Hard candy
- Milk chocolates and caramels
- Dark chocolate
- Soft or creamy candies, like candy corn
- Chewing gum and gumballs
- Products from top candy production companies in the United States of America such as Almond Joy, Aplets & Cotlets, Big Hunk, Reese’s Pieces, Mounds, U-No Bar, and Ayds et al
10. Sales Forecast
One thing is certain when it comes to homemade chocolate / candy stores, if your store is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Pierre – South Dakota and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our customer base.
We have been able to critically examine the candy stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Pierre – South Dakota.
Below are the sales projections for Ashely Brownie® Homemade Chocolate Stores, it is based on the location of our business and other factors as it relates to homemade chocolate cum candy stores start – ups in the United States;
- First Fiscal Year-: $60,000
- Second Fiscal Year-: $150,000
- Third Fiscal Year-: $350,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Ashely Brownie® Homemade Chocolate Stores, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Pierre – South Dakota. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the homemade chocolate / candy stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Pierre – South Dakota.
In other to continue to be in business and grow, we must continue to sell the homemade chocolate and candies that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Ashely Brownie® Homemade Chocolate Stores will adopt the following sales and marketing approach to win customers over;
- Open our homemade chocolate / candy store in a grand style with a party for all.
- Introduce our homemade chocolate / candy store by sending introductory letters alongside our brochure to schools, households and key stake holders in Pierre – South Dakota
- Ensure that we have a wide range of homemade chocolate and candies from different brands at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our homemade chocolate / candy store
- Position our signage / flexi banners at strategic places around Pierre – South Dakota
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our homemade chocolate / candy store.
11. Publicity and Advertising Strategy
Despite the fact that our homemade chocolate / candy store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our brand.
Ashely Brownie® Homemade Chocolate Stores has a long-term plan of opening outlets (well – branded homemade chocolate kiosks) in various locations all around South Dakota which is why we will deliberately build our brand to be well accepted in Pierre before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Ashely Brownie® Homemade Chocolate Stores;
- Place adverts on community based newspapers, radio stations and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Pierre – South Dakota
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact households, landlord associations and schools by calling them up and informing them of Ashely Brownie® Homemade Chocolate Stores and the products we sell
- Advertise our homemade chocolate retailing business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Pricing is one of the key factors that gives leverage to retail businesses like homemade chocolate/ candy stores, supermarkets and grocery stores et al, it is normal for consumers to go to places (retail outlets) where they can get candies and groceries at cheaper price which is why big player in the candy stores industry like Godiva, See’s Candies and Lindt & Sprungli Inc. et al will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.
We know we don’t have the capacity to compete with Godiva, See’s Candies and Lindt & Sprungli Inc., but we will ensure that the prices of all the homemade chocolates and other candies that are available in our homemade chocolate / candy store are competitive with what is obtainable amongst homemade chocolate/ candy stores within our level.
- Payment Options
The payment policy adopted by Ashely Brownie® Homemade Chocolate Stores is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Ashely Brownie® Homemade Chocolate Stores will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our homemade chocolate and candies without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our homemade chocolate and candies.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a homemade chocolate retailing business; it might differ in other countries due to the value of their money.
These are the key areas where we will spend our start – up capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Mama Jay Candy Stores in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $53,300.
- The cost for Shop remodeling (construction of racks and shelves) – $5,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (stocking a wide range of homemade chocolates, candies, premium chocolates, chewing gums, sweeties, and toffees et al from different manufacturers both from the United States of America and from other countries) – $15,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost for launching a website: $600
- The cost for our opening party: $3,000
- Miscellaneous: $1,000
We would need an estimate of $150,000 to successfully set up our homemade chocolate retailing business in Pierre – South Dakota. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funds / Startup Capital for Ashely Brownie® Homemade Chocolate Stores
Ashely Brownie® Homemade Chocolate Stores is a family business that is solely owned and financed by Mrs. Ashely Brownie and her immediate family members. We do not intend to welcome any external business partner which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Ashely Brownie® Homemade Chocolate Stores is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our wide range of homemade chocolates and candies a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Ashely Brownie® Homemade Chocolate Stores will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the shop: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Compilation of our list of products that will be available in our store: Completed
- Establishing business relationship with vendors – suppliers of candies: In Progress
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