Building a Business Plan
Introduction
Executive Summary
I believe this business can be made off of a sole proprietorship. Since It's mainly targeting small
markets and the goal isn't really to expand worldwide. Since just looking at it realistically, it'll be
very hard to catch up to other businesses that are doing the same thing. When it comes to the
top priority of our company, we want every consumer to get what they want, when they want.
Our services will make us go above and beyond to make sure our customers are happy at the
end of the day. We prioritize customer satisfaction over everything.
Benefits to the Community
Company and Industry
The food delivery service is a big and booming thing in our day and age. In 2018, Uber Eats was
reportedly used by a little under 50% of the people in the United States. With the way things are
going, that number is only going to go up. The customers of this service range from kids to
adults. Anyone can use this service honestly. The current big competitors out now are probably
Uber Eats and GrubHub. Our service is aimed towards less populated cities, trying to aim our
target audience at places with less than 50,000 total population. This can be big since those main
big competitors mainly stick with big markets like Los Angeles and New York for example. If I
were a rival, the main thing that would be a concern is the customers. Since this is mainly
targeted towards smaller towns or just where bigger services aren't provided, there is only so
many customers to go around. If one service were to capture most of the clientele, the other
would go out of business. This service is mainly is pretty much a race between who can set it up
faster and get their business out there the quickest. Once you've gotten your customers, the
chance of them sticking with you over the other company is very high. The customers of this
service can range from really anyone, young or old. If somebody was really craving something
that they couldn't get, our service would easily help with that. When looking at other companies
like Uber Eats and Door Dash, they're doing great. The food delivery service is growing every
year and is becoming really popular in our day and age. I see it being successful since this
serivce is generally only available in bigger cities. If this is introduced to smaller cities, it can
have the chance to really blow up locally.
Management Team
Since the business is still going to be in startup, me myself am going to have to play most those
roles. When it comes to financial management, I am attending YVC majoring in accounting so
that should cover that. For marketing, I am hoping to bring someone since that area of business I
am not really fond of or have intelligence in. When it comes to human resources, our employee's
can come to me specifically and talk to me about their problems and what they see unfit. I
believe I would suffice to work these roles because for one, I am understanding, and two, I know
to separate friendship and business. When it comes to being a boss, you really have to separate
the two so it doesn't affect your business. When it comes to having management skills, I am not
going to lie, I am still very new to all of this. Over time though, I expect to learn everything
while working with it. I don't expect everything to be 100% from the start so i expect to grow
along the way. If a customer has a problem with our service, we're going to have to talk to them
to settle it. So in order to prepare having to talk to customers about their problems, I'm going to
need to practice situations where customers can run into problems with our service.
Manufacturing and Operations Plan
Well when it comes to the food delivery service, not much is needed. Our service goes to the
customer so there is no need to buy a facility to bring customers to us. We expect to at least have
our service used at a bare minimum, 20 times a day. 7 days a week, so roughly 5000 deliveries a
year. When it comes to our food delivery service, the main quality customers expect is the time it
takes to reach the customer. To combat that, we are going to try and be very transparent with
delivery times as accurately as possible so customers are never in the dark.
Labor Force
At the beginning of our business, I am projected to have 2 employees under the company. By the end of
the year, depending on how everything goes, we are expecting to at least double that figure. Pertaining
to the job of the employees, I am expecting to hire someone to help with advertising, and 1 driver to
deliver the service. Given the number of employees in the business, a narrow span of management
would be ideal. Reason why I say that is because, the company is so small so they can talk directly to the
owner with any problems.
Marketing Plan
Social media is going to be a big play in the business plan. Advertising is going to be the main
way customers will hear about the service. Most of the money spent on promoting the business
will have go towards social media advertising. Another thing when it comes to technology is, an
app is probably going to have be created so customers can reach us quicker. Technology is
definitely a major plus for a food delivery service. With a sole proprietorship, if you're going to
want to expand, i am going to have start allowing workers to bring in their own cars for the job.
Reason I say that is because, if the only cars that would be used for the service would be
company cars, it would cost the owner a lot of money to buy more than one. Thus, lowering the
chances of the business succeeding. Research and development can play a part in our service I
guess. We could maybe look into a tamper safe device that keeps food warm on their
destination to a customer. This would have to be looked into way deep into our business.
Something like that is definitely not a need until a couple of years in.
Financial Plan
One of the main expenses involved in this business would be first of all, getting a car that is safe
and up to regulation with the state to be able to comply to be a business vehicle. Another thing
would be gas. Since the main thing about this product is being on the move, that expense will
add up over time. In our first year of offering our service, we expect to have over $50,000 in
sales and at least 5,000 unique customers. We hope that every year we at least double our
expected customer base. Once we reach our peak, at that point we are going to have expand to
other cities to expand. When it comes to all the challenges we will face, we will be able to
overcome them and thrive in the selected cities.
Exit Strategy
When looking at an exit strategy, a business like this wouldn't be that hard to just pass it down
to a family member so I think a sole proprietorship would be fine.
Critical Risks and Assumptions
Before I'd join in as a partner, I would definitely ask if any surveys were conducted in the place
they are planning to do business if people are even interested in the first place. That's something
that definitely has to be done. As popular as a service like this is, it really depends on the locals
on if you will succeed or fail. If they had gauged interest from people in the supposed market
location, then the next thing I would need before thinking of joining is seeing if local restaurants
would be willing to partner with the company to make things easier. If I see that those two things
are in place, then I would happily join.
Appendix