OLIVER’S PASTRY
Business Plan
CONTENTS
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8.
EXECUTIVE SUMMARY
MISSION STAEMENT
PRODUCT DESCRIPTION
ADMINISTRATION
MARKET ANALYSIS
BUSINESS CONCEPT
GOALS AND OBJECTIVES
FINANCIALS
a) Start up costs
b) Eight hour production cost(1day).
c) Twelve Sales forecast
d) Twelve months cash flow
e) Twelve months Profit & Lost
f) Five year financial plan
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KEY SUCCESS FACTORS
SALES AND MARKETING
EQUIPMENT NEEDED
INGREDIENTS LISTING
PAYROL LISTING
PRODUCTION LINE MODEL
KEY NOTES
Executive Summary
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Oliver’s Pastry is a producer of high end quality rum cakes as specialty tourism product. We also produce snacks
and drinks for schools with a reputation for integrity, transparency, trust and quality customer service backed by
excellent management concept.
By year two annual sales will increase to well over 67 million dollars.
Oliver’s Pastry was formed by Oliver Fagan as a Sole Proprietorship in December 2004. In 2006 a combination
of his baking skills, and hired partner Nadia Fagan and succeeded with Gross Sales of $366,000.This business
they operate on a part time basis as they were full time employees in hospitality.
The Company experienced steady growth since its inception in 2004. In 2005 Oliver’s Pastry was selected to be
the supplier of authentic Jamaican delicacies to the Ritz-Carlton Golf & Spa Resort, Rose Hall for their guests
recognition program. Other souvenir outlets sought to have these products as well both locally and overseas.
The Company has as its address a rented premises at 124 Armstrong Terrace Coral Gardens, Montego Bay, St.
James. Its’ activities witch falls under food Industry Classification under the Public Health Act as bake and pastry
shop.
OLIVER’S PASTRY is involved in three major activities:
1) RUM CAKE (SPECIALITY PRODUCTION).
2) BAKED SNACKS FOODS,
3) DRINK MANUFACTURING.
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Sixty percent of gross sales are from baked products (rum cakes and snacks) with the remaining 40% is drink
manufacturing. At the moment our anticipated employment would be six (6) permanent employees on the payroll
and other sub-contracted workers including subcontracting companies for distribution.
The company's short term objectives (within the next year) are to acquire equipment to enhance our rum cake
plant, increase activity in all areas and to achieve annual net profit after taxes of over $9,000,000 annually by
2010. Its long term objectives are: to maintain the level of current business growth achieved up to 2010 and then
to move into expansion restorations, acquiring up-dated machinery, more overseas markets and increased
production for the hospitality market while seeking to cover the Island’s schools with snacks.
To begin implementing these plans and objectives the company needs:
1. A loan of $3,000,000. This loan to be used for current near term expenses including buying equipment,
inventory and to have our products assessed by the JBS. It will be repaid within four years.
2. A line of credit of $500,000 to take advantage of discounts available, avoid associated penalties and expand
into high profit areas requiring positive cash flow.
The prospects for OLIVER’S PASTRY’ continued growth is excellent, with over 2,000 new hotel rooms being built
with other contracts underway creates many prospective clients for customized products.
The company's overall objective is to satisfy that market segment that demands integrity and superior quality
products, and to maintain a steady growth in sales volume that will sustain the company for future years. Oliver’s
Pastry has enhanced it’s reputation to the point where the company is regarded by many as the recommended
choice with their clients due to the excellence of its products and services.
Market research shows that tourist arrivals will increase by over 2,000,000 between 2007 and 2010. This
increase will bring about an increase of over three billion dollars. This increase gives the area existing
businesses a potential remodeling market opportunity. Estimates published by the ministry of tourism, 2007,
indicate that an additional 20,000 new job opportunities will be created in several areas of the industry between
2007 and 2010. OLIVER’S PASTRY intends to pursue this opportunity to make an input and to penetrate market
vigorously. (See sales and marketing for marketing strategy).
Financial Objectives
The financial objectives of OLIVER’S PASTRY over the next five years are as follows:
To earn $9,000,000$ to $11,000,000 2008 to 2009 gross revenue with a gross profit margin of 55% and a
net income of not less than 10%. annually. (see financials for clarification)
Please review the enclosed business plan and loan proposal and of course feel free to ask for any additional
information or explanations you may want. I will make myself available at your request to arrange an appointment
so that we can discuss the loan in person.
I look forward to a mutually profitable relationship with JAMAICA NATIONAL SMALL BUSINESS LOANS.
Sincerely,
Oliver Fagan.
Executive Summary continue
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A line of credit of $470,000 to take advantage of discounts available, avoid associated
penalties, and expand into high profit areas requiring positive cash flow.
The prospects for OLIVER’S PASTRY’ continued growth is excellent, with over 2000
new hotel rooms being built with other contracts underway. With many prospective
clients for customized products.
For equity the company has assets of $2,758,000 (see Balance Sheet as of year one.
Additionally we are expecting to see a growth by year 4 to $38,000,000 total assets.
The company's overall objective is to satisfy that market segment that demands integrity
and superior quality products, and to maintain a steady growth in sales volume that will
sustain the company for future years. Oliver has enhanced his reputation to the point
where the company is regarded by many as the recommended choice with their clients
due to the excellence of its products and services.
Market research shows that the tourist arrivals will increased by over 2,000,000 between
2007 and 2010. This increase will bring about an increase of over three billion dollars.
This increase gives the area over 128,000 existing business as a potential remodeling
market. Demographic estimates published by the ministry of tourism, 2007, indicate that
an additional 20,000 persons will be employed between 2007 and 2010. OLIVER’S
PASTRY intends to pursue this market relentlessly. (See sales and marketing for
marketing strategy).
Financial Objectives
The financial objectives of OLIVER’S PASTRY over the next five years are as follows:
$9,000,000 to $11,000,000 2008 to 2009 respectivley. Net Income after Tax and will
exceed the $11,000,000 by year five while maintaining a gross of between 55% and
60% annually. (see financials for clarification).
For equity the company will realize assets of over $6,000,000 as of year one.
Additionally we are expecting to see growth by year 4 to over $39,000,000 total assets
and liabilities that should reflect an equity exceeding $30,000,000. (See Balance Sheet)
Please review the enclosed business plan and loan proposal and of course feel free to
ask for any additional information or explanations you may want. I will make myself
available at your request to arrange an appointment so that we can discuss the loan in
person.
I look forward to a mutually profitable relationship with JAMAICA NATIONAL SMALL
BUSINESS LOANS.
Sincerely,
Oliver Fagan.
Mission Statement
“OLIVER’S PASTRY” pledge to
be a global leader in producing
authentic Jamaican delicacies
of the highest quality and value
pricing, with emphasis on
product quality, unmatched
customer service, employee
and owners benefits and to
enhance the lives of each
individual involved with this
company. Through trust,
integrity, honesty and loyalty
with all transparency And to be
a good cooperate citizen.
PRODUCT DESCRIPTION
09
SNACKS
JAMAICAN BANANA
BREADS
WHOLE WHEAT
REGULAR
RUM CAKES
FRUIT CAKES
LOAVS AND SWEETDOUGHS
Drinks
Flavored milk drinks.
Fruit concentrate drinks.
Fresh fruit drinks.
Low sugar drinks.
Jamaican Easter bun
The Administration
Team
OLIVER P. FAGAN:
Managing Director & Chief Baker
Responsible for Product Quality
and Production.
Diploma Restaurant and
Hotel Management.
Associate Degree Hospitality Management
Over ten years five diamond
food service experience.
Very experienced entrepreneur in
business development and
operations.
Oliver is also managing director and chief consulting officer
for Global Hospitality and Restaurant Consulting
Services that offer services in other Caribbean islands.
Mrs. Nadia Fagan :
Director of Sales,
Nadia has been a top producer in sales for AAA five diamond
resorts and has a very high end market experience, with
this experience we are expected to penetrate the
overseas market by leaps and bounds as most of these
leads are connected to large groups and companies that
travels to Jamaica for incentive trips on a regular basis.
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Market Analysis
Our flagship product (Petro’s Authentic Jamaican Rum Cake) is tourism related and in so being
we will be targeting the Hotels, Restaurants, Cruise Ships, Gift and Souvenir Shops, with
overseas market prospects.
Being a tourism related product the development of new mega size resorts expands retail
tourism shopping, this gives an expected economic growth that will bring more visitors to the
island. This will bring an increase of millions of dollars in spending on genuine authentic
products. Through the Jamaica business development agency authentic jamaican products
are In demand for the tourism market.
None other such product is available on the island that will be offering the oportunities we do for
our clients so we will have a dominance of this market and is expected to introduce other
exiting products within the first year of operation.
We will also be targeting the overseas market. Our overall annual expected growth is
approximately 30% to 40% over the first four years. This will be closely monitored with
continued market and product research programs.
From site visits to prospected overseas clients there is a demand for Jamaican authentic
products in the caribbean populated areas (New York area) (please see customer listings).
As for our school snack and drink this market has been ignored by producers and suppliers. In
and around Montego-bay and its environs there are over 40 primary and secondary schools
that consumes over $10,000,000 dollars worth of product weekly without mentioning basic
schools, of that market we are expected to take a share of 5% in the our initial stage (year
one) and up to a 20% by year two (2) with an eventuality of major market share as we will be
focusing on maintaining this market share with improved products and services over time.
Business Concept
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Our products will be done in small batches to ensure the finest
ingredients and detailed care is taken during the process and will
be carefully packaged with the latest technology to ensure
wholesomeness, the natural preservation stays and presentation
will depict the high quality product and authenticy of the
Jamaican culture (Rum Cake).
This product will be marketed as a specialty gift item in resorts
and gift shops and as a great dessert menu item for fine-dining
and casual restaurants.
Seasonal specialty products will be available to visitors all year
round for the experience and for Jamaicans who want them to
take them overseas (Jamaican Christmas cakes)
School snacks and drinks will be our secondary products as
these products takes less effort and time to produce larger
quantities and these are more stabled year round and will be
done to maximize the plants capacity and to make available to
school community more nutritious and healthy drinks and snacks
at better prices.
Special assistance will be given to customers (retailers) in their
areas of need in carrying our products . Suppliers, employees
and all who we associate with will be treated with all due respect
and acknowledgment so as to retain high customer base,
employee retention and development and to maintain our
commitments as good corporate citizen.
Goals & Objectives
Our goals and objective are combined with the crave for economic
contribution and a high profit driven operation through.
1.
Creating employment opportunities directly and indirectly.
2.
Sales over $60,000,000 in year one and over $75,000,000 by
year three.
3.
Gross profit margin higher than 40% of revenue.
4.
Net income not less than 10% of revenue.
5.
Giving Schools a new approach in providing for their
population healthy and reasonably priced snack items.
6.
Expansion and upgrading to a multi product bakery for the
hospitality industry and the island’s schools with the most
modern equipment and technology available in the industry
within the next five years.
Financials
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START UP EXPENCES
FIRST SIX (6) MONTHS CASHFLOW
TWELVE MONTHS CASHFLOW
TWELVE MONTHS SALES FORECAST
TWELVE MONTHS PROFIT AND LOST
BREAK-EVEN ANALYSIS
FIVE YEAR FINANCIALS & PROFIT PROJECTION.
Key Success Factors
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As for a company fulfilling our promise we will
execute our processes with completeness,
confidence, reliability, integrity and trust.
Develop new products over time to maximize our
capability and capacity.
Develop innovative and practical marketing
strategies through research and technology.
Continue to improve our processes and
production to increase and maintain the highest
quality product and profit margin to ensure the
highest level customer satisfaction and company
profitability. (Keep listening to our customers).
Manage our resources with actual, realistic and
fair judgment.
Ensuring that our schools get better quality
service to help them better serve their population.
Instill the wellbeing of our Owners, Employees,
Customers, Suppliers, Financiers all who we do
business with.
Maintain the high quality product standards.
Our relentless effort for new markets on the
global seen and establish international food
certifications for access to the international
market as is required by our enquiries.
SALES & MARKETING.
Export/Overseas Market
We will relentlessly pursue prospective opportunities by
ensuring we are ISO and JBS certified and we will be
also doing direct customer contacts along with website
marketing.
Onsite sampling sessions where applicable.
Local Market
Advertisements in print and electronic
media
Tasting sessions at major tourist towns
With sample sizes available for retail
outlets weekly.
Special incentive for schools and support for education
needs.
Better pricing for schools and retailers who sells to students.
EQUIPMENT NEEDED
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1 Convection double Oven
$408,000
1 Kwickpack Stainless Steel L-Bar shrink tunnel with
console 15”x 9”-H opening
$390,000
1 Vacuum pack Machine 110 Volts
$324,000
200 small baking tins
$ 35,000
100 medium baking tins
$ 29,000
100 Large baking tins.
$ 30,000
1 U B-20 Bar sealer
$ 60,000
2 Stainless steel Table 8’x 4’
$ 57,000
Bag Juice Machine/ Mixing tank
$350,000
2-22 cub ft. Freezers
$120,000
50- Plastic crates
$ 50,000
Total -----------------------------$2.374,000
INGREDIENTS LISTING
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RUM CAKE MIX
FLOUR
EGGS
OILS
RUM
WINE
FLAVOURINGS
SYRUPS
RISING AGENTS
Payroll Listing
PERSONEL
WEEKLY
MONTHLY
ANNUALY
Manager C.E.O.
$25,000
$108,334
$1,300,000
Sales team
$5,122
$22,195
$266,344
Mixer x2
$9,000
39,000
468,000
Packer
$4,500
19,500
234,000
General helper
$4,500
19,500
234,000
Driver
$5,122
22,195
266,344
TOTAL
$53,244
$230,724
$2,768,640
Production line model
REQUIRED ROOM SIZE 50’X30’/ 1600-SQFT.
Delivery area
Office
area
Raw materials store
Room 10x10
Mixing 7-10min
Bag juice area
3tub Washing sink
Finish
goods
Portioning 5min
Storage for finished goods
Baking
45mins
Shrink wrap 150phr
Cooling
11/2 hrs
Vacuum sealing bags
150phr
Placed in tins
Bagging 150phr
KEY NOTES
Required production space 1000sqft.
Production capacity 112kgs cake = 125 - 1kg
cakes
250- 1000gms “
500- 500 gms “
per eight hour shift.
Juice plant will produce over 300 bags per hour.
With an average breakeven point of $20,000,000 annually we will maintain our cost and operation
expenses at (COG @50%-55%)AND others at 10%-12% so as to maintain a gross
profit of 45%-50% and a net of not less than 10% annually.
As a proactive measure we will anticipate an inflation effect of a 4% increase in our price on
average through to year five and an average 4.3% on our expenses over the same
period.
On financial security we will seek to secure ourselves a permanent home office by investing in realestates within a five year period and to increase our production and to secure our
financial standings for the benefit of our associates.
We will overtime purchase equipment as soon as we realize it from our profits in this manner we
will not have to close for any period of extended time to disrupt our production flow
Some of the items considered,
1) Freezer trucks
2) Baking equipment
3) Improved Packaging equipment.
Our operation and facilities will be fully inspected and certified by the health regulations of the
authorities (ministry of health).
We will control the production line at 85% to 90% capacity this will enable for the equipment to
retain their wear and tear advantage prevent over-heating give more time for proper
hygiene maintenance and also more time to service our customers the way they need
us.
All milk products (drinks) will be delivered at controlled temperature to ensure freshness.
All materials needed are readily available locally so no importation is required.
Shrinkage represents damaged or returned goods for replacement or refund for this we allotted
ourselves 2% of revenue in that respect.
Transparency will be our gateway to the public.
All our assumptions and calculations are based on information from operation experience and
actual observations and information from government agency like the business
development agency (jbda) website relative to the tourism sector and local observation
of the schools snack operations.