Sweet Tooth Bites. Crystal Vo Grade 11 Age 17
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1 Sweet Tooth Bites Crystal Vo Grade 11 Age 17
2 Mission Statement The Opportunity allows consumers to eat delicious cake bites that satisfy cravings without overindulging Mission Statement deliver consumers all of their guilty pleasures (cake, frosting, and chocolate) in a healthier portion, satisfying the cravings without the added calories 2
3 Business Profile Type of Business Service Custom cake ball orders Legal Structure Sole proprietorship For profit 3
4 Qualifications have a keen eye for aesthetics and will provide products that are appealing to the eye as well as the taste buds already sold over 500 cake bites have entrepreneurial spirit and belief in my business 4
5 Market Analysis Industry Name Special Food Services Industry Size $31,130,659 Total Population San Jose 1 million Target Market Everyone within the San Jose market ages 15 to ,000 Potential Market Size 10 out of 10 people would buy my product based on a survey 665,000 5
6 Consumer Profile By Location - San Jose By Population - 1 of 665,000 By Personality - Loves sweets, but does not want to overindulge By Behavior - Exercises regularly and watches what they eat - Eats sweets in moderation By Income - Average family income of $50,000 and up 6
7 Competitive Advantage Factors The Cake Ball Company MAD Cravings Sweet Tooth Bites Quality of Product//Service Excellent Great Excellent Price 1 for $3 1 for $2 1 for $1.50 Location Brand/Reputation Online Online Online/ San Jose Good Good Good products and service Unique Knowledge Several flavors Football shapes Unique shapes and decorations 7
8 Marketing Plan People Dessert lovers that are also calorie conscious Price $1.50 per unit Marketing Mix Promotion Social networks Word of mouth Free samples Place San Jose Online Product A delicious 90 calorie treat 8
9 Marketing Plan Awareness Word of mouth Social networks Free samples at the end of athletic events Purchase Current & Short Term (1 month -6 months) Free samples at NFTE events Customization Personalized bites Seasonal themes Long Term ( 6 months-1 year) Retention Frequent customer discounts Innovative recipes More creative decorating options Promotion posters at gyms and health stores $54.58 Seasonal themes Excellent reputation $0.00 $0.00 Purchase Retention 9
10 Cost of Materials/Direct Labor Definition of One Unit Cost of Sales Per Unit Direct Labor Time/hours to make 1 batch (50 cake balls) Direct Labor Cost Per Unit $8 1 hour $0.16 Total Direct Labor Per Unit $0.16 Material Description Cost/Total Quantity Cost Per Unit Eggs (3) $5.09/60 $0.30 Cake Mix $1.00/1 $1.00 Vegetable oil (2.66) $6.59/166 oz. $0.24 Cream Cheese Frosting Candy Melts Decorations $2.75/16 oz. $2.99/ 1 bag $1/ all $2.75 $2.99 $1.00 Total: $8.28/50 = $0.16 Total Other Variable Costs Per Unit $0.03 Cost of Sales Per Unit $
11 Economics of 1 Unit Definition of One Unit Selling Price per Unit $ 1.50 Direct Labor per Unit $ 0.16 Materials per Unit $ 0.16 Total COGS per Unit $ 0.35 Total Other Variable Costs per Unit $ 0.00 Total Cost of Sales $ 0.35 Contribution Margin $
12 Average Monthly Fixed Costs Type of Fixed Cost Entrepreneurial Stipend $0 Insurance $0 Salaries of Employees $0 Advertising $25 Interest $0 Depreciation $0 Utilities $0 Rent $285 Other Fixed Costs $0 Total Monthly Fixed Costs $310 Monthly Cost 12
13 Time Management Plan School Hours, 77 Business, 45 Free time, 46 13
14 Units Sold Monthly Sales Projections Break-Even Units Jan Feb Mar Apr MayJuneJuly AugSept Oct Nov Dec Total Units 20,500 Full Capacity 30,000 14
15 Projected Yearly Income Statement Selling Price Per Unit $1.50 # of Units Sold 20,500 Total Sales $30,750 Total COGS $7,175 Other Variable Costs $0 Total Variable Costs $ 7,175 Gross Profit $ 23,575 Yearly Fixed Costs $3,720 Other Costs/Unforeseen $0 Total Fixed Costs $3,720 Profit before Taxes $19,855 Less Estimated Taxes $4,964 Net Profit $14,891 15
16 Start-up Investment Item Where I will buy this? Cost of Item Eggs Costco $6.59 Sprinkles/Decorations Michael s $10.00 Candy Melts Michael s $2.99 Cake Mix FoodMaxx $1.00 Vegetable oil Costco $5.09 Commercial Kitchen (rental) MR. C'S KITCHEN RENTAL FACILITY $285 Cream Cheese Frosting Safeway $2.75 Packaging Online $97.60 CASH RESERVE covering 3 months of fixed expenses $1,000 Estimated TOTAL START-UP INVESTMENT $ x $8/hr = $16 16
17 Return on Investment Annual Net Profit Start-Up Inv. = $14, $ % $30.90 on Sales 48% Annual Net Profit Total Sales $14, $0.48 = $30,750 17
18 Financing Strategy Source Amount Debt Equity Gift Personal Savings $1,000 $1,000 Relatives/Friends $ Investor $ Grant $ Totals: $ 1,000 18
19 Business Responsibility Plan Make business themed cake bites to promote NFTE 10% of sales from business cake bites will go to NFTE 19
20 Long Term Short Term Business & Educational Goals Business Personal Establish my business, become well known, and build a great reputation Work on streamlining my cake bite producing process Graduate from high school Pursue a degree in business at UCLA Have my own manufacturing company for cake bites Brand name my cake bites Have my products in grocery and department stores Always be in charge of my life 20
21 Satisfy Your Sweet Tooth Sweet Tooth Bites
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