Shredz Salad Co.
Sole Proprietorship
Raelynn Leffler
May – Twenty First – Two Thousand Fifteen
Shredz Salad Co.
Raelynn Leffler
Table of Contents
Section 1 - Introduction.................................................................................................... 3
1. Executive Summary................................................................................................ 3
2. Self Analysis ................................................................................................................ 4
Section 2 - Analysis of the Business Situation ..................................................... 5
1. Trade Area Analysis ............................................................................................... 5
1. Geographical Analysis ............................................................................. 5
2. Competitive Data........................................................................................ 6
2. Market Segment Analysis ................................................................................... 8
1. Market Segment Analysis ....................................................................... 8
3. Analysis of Location ............................................................................................... 9
1. Location ............................................................................................................ 9
2. Floor Plan ..................................................................................................... 11
Section 3 - Planned Operation of Proposed Business .................................. 11
1. Proposed Oragnization ..................................................................................... 11
1. Type of Ownership ................................................................................. 11
2. Management .............................................................................................. 12
2. Proposed Product or Service ......................................................................... 13
1. Proposed Product or Service ........................................................... 13
2. Suppliers ....................................................................................................... 13
3. Equipment................................................................................................... 14
3. Proposed Marketing Strategies .................................................................... 15
1. Pricing Policies ......................................................................................... 15
2. Promotional Strategies........................................................................ 15
Section 4 - Financing ....................................................................................................... 16
1. Projected Income and Expenses .................................................................. 16
1. Sales Forecast............................................................................................ 16
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Raelynn Leffler
2. Building Costs ........................................................................................... 17
2. Proposed Plan to Meet Capital Needs ....................................................... 18
1. Financing ..................................................................................................... 18
Section 5 - Conclusion..................................................................................................... 19
1. Concusion.................................................................................................................. 19
Section 6 - Bibliography ................................................................................................ 20
1. Bibliography............................................................................................................ 20
Appendix ................................................................................................................................ 21
1. Selection Letter...................................................................................................... 21
2. Print Ad ...................................................................................................................... 23
3. Business Card ......................................................................................................... 24
4. Logo .............................................................................................................................. 25
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Shredz Salad Co.
Raelynn Leffler
Section 1 – Introduction
Executive Summary
A majority of the population of Southern Oregon has access to recreational outside
activities and for those who choose to live a healthy lifestyle, there are only a few of
restaurants that cater to nutrition. Shredz Salad Co. is a fast and healthy salad restaurant
located in downtown Medford, on the corner of South Central Ave and East 9th Street. Shredz
aims to help improve the health of the community by offering quick service and quality food for
a decent price.
Medford, Oregon is an emerging town that makes it the perfect setting for opening a
new business. Many small businesses open their doors in Southern Oregon and go on to
surpass the expectations that were forecasted. A sole proprietorship business like Shredz is
predicted to do extremely well in the proposed location for the reason that there are no
businesses exactly like it.
Shredz serves a variety of salads as well as the option to build-your-own salad. This
option allows the customer to create a salad catered to their personal preferences ensuring
that they will be satisfied with purchase. Apart from the salads, Shredz will also offer the option
of turning your salad into a wrap for an equal price, and a variety of freshly baked breads. For
beverages, Shredz will offer a select group of gourmet lemonades, juices, teas, coffees, and
Pepsi drinks by the can.
Choosing the right target for a business is crucial. If a business is to incorrectly evaluate
their target market then it could lead to a down fall of the business. Our target market includes
not only the healthy lifestyle activists but also the younger population attending school. The
reason we are also targeting the young generation is because of our location, nearly on the
Rogue Community College campus. This plays hand-in-hand with our promotional strategies.
With our target market being the younger population, we’ve chosen a variety of online
marketing strategies so they can be accessed anywhere.
To finance all the costs of Shredz, we willl take out two loans to cover the working
capital and equipment. The first loan will be a SBA 7a Loan to for the costs of the working
capital for a total of $80,000. The second loan will be a SBA 504 loan to cover the expenses of
the equipment for $18,300. Within 7 years of low monthly payments, the loan will be fully paid
off.
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Shredz Salad Co.
Raelynn Leffler
Shredz Salad Co. will bring a new liveliness to the valley that is lacking restaurants that
offer quick, but healthy products. With the extensive business plan that has been conducted for
the start-up company, the business will be quick to succeed in the emerging market.
Self Analysis
If an owner of a business is not dedicated or equipped with the skills to run a business,
the establishment will fail. When thinking about starting a business, there are many things that
need to be taken into account in order for the business to succeed such as location, target
market, promotion, financials, etc. I have knowledge in business and restaurant services and I
also enjoy the great outdoor beauty that the Rogue Valley offers. These qualities will help my
proposed business be a success in Southern Oregon.
My experiences throughout the years along with my education will be a great
benefactor for starting this business. I grew up in the Rogue Valley and graduated from the
Business, Innovation and Science sector of Crater High School in June 2015. During my time at
Crater, I participated in DECA, a business and marketing club, for four years as well as interned
at an advertising agency during my senior year all while managing an outside job since I was 16.
After finishing my high school life, I attended Southern Oregon University for two years before
transferring to Portland state and receiving a degree majoring in marketing and minoring in
advertising. By living in a fast paced town like Portland, I began to learn the importance of quick
service and quality food. There were many times when I was in a rush and needed a quick bite
to eat, and there were several options other than typical fast food restaurants that could
accommodate my need for speed. When I moved back to Southern Oregon, I realized there was
a lack of quick and nutritious food options throughout the valley.
Everyone has their own person strengths and weaknesses, but it’s using both to your
advantage that will allow a business to flourish. A weakness of mine is that I have a lack of
experience in opening a business; however, my strengths play into the hand that I am very
responsible, dedicated, and hard-working. Due to my lack of experience, I plan to overcome this
by putting all my time and effort into the business from working behind counter to managing all
the financials and consult professionals in the field when needed.
There are two possible outcomes when a business opens its door: success or failure. To
invest in a business is a risk and no matter the outcome of the business, the willingness to take
a chance on an upcoming company will result in it being a learning opportunity whether that is
positive or negative. Either way, it is the enthusiasm to take risks that let you grown as a human
being and develop skills in the area of your interest and apply them later in life. In a generation
that is at a constant change, one must be willing to get on the bandwagon of innovation and
survive and bumps in the road all the while being able to stand out among the crowd of
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Raelynn Leffler
emerging businesses. It is a risk to start a business, but with all the right tools and dedication, a
business can succeed and surpass expectations.
When trying something new, most people will require some assistance from a
professional in the field they are lacking knowledge. Opening a new business, I hope to further
my skills in financing by attending business seminars and trainings as well as through personal
experience. When I reach the point when my business is at a steady pace, I hope that I will have
a full understanding of the financials as well as all the other aspects of the business.
There are many important characteristics a business owner needs to possess in order
for a business to succeed, but I believe the one that stands out most is dedication. If there is no
dedication to the business, it will fail because there is no one taking care of the important
factors. Dedication is key to starting a business and combined with the other qualities of
experience, education, willingness to take risks, and utilizing your strengths and weaknesses, a
business has all the power to succeed.
Section 2 - Analysis of the Business Situation
Trade Area Analysis
Geographical Analysis
The beauty of Southern Oregon is unlike any other place. From the view from atop Table
Rock to the live music at the Britt Festivals to the annual Pear Blossem Parade, Southern
Oregon enhabits a diverse community within the small towns. Medford is an emerging town
that makes it the perfect setting for opening a new business. The location, climate, and
topography of Southern Oregon support the proposed building site for Shredz Salad Co.
Southern Oregon is stratgeically placed between Portland and San Francisco along the
Interstate 5 and also offers connections to the Oregon Coast as well as Eastern Oregon
(Southern Oregon Area Profile). The location of Southern Oregon
makes it easy for distributors to deliever the merchanidise by air,
sea, trucking or a combination of two or more. The proposed
building location in downtown Medford has easy access for
deliveries. Located on the corner of South Central aveune and
East 9th street, it is easily seen when driving down the main road
through downtown. Although South Central aveune is a narrower
road that most with only two one way lanes and parking on either
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Shredz Salad Co.
Raelynn Leffler
side, it could be difficult for a distributer truck to stop which is why projected an easier route of
having the truck turn onto East 9th street to avoid cause traffic back-up and any possible
injuries.
Residents of Southern Oregon experience all four seasons, sometimes all in one day.
Winters reach cold enough for snow to fall while summers reach higher temperatures ranging
from 90 to 100 degrees F. An average rainfall in Jackson County ranges from 18-20 inches
(“Southern Oregon Climate”). The difficulty of experiencing extreme weather conditions,
specifically in the winter months, in addition to the large mountians can result in roads being
closed. This can effect the distribution of products with an emphasis in the agricultural field
because your delievery could be held up. Climate can also be a factor for the customers for a
business. For instance, if a great deal of your customers had to travel a reasonable distance to
get to a business such as a ice cream parlor,
during extreme weather conditions of summer
the number of your sales might increase while
on the opposite side, if it’s winter and there
snow on the roads, the number might drop.
One disadvantage of the topography of
Southern Oregon is the surrounding mountains
on all sides. This can make is difficult for
truckers to progress over the steep hills. While
this may be challenging for truckers, it is not impossible for the reason that much of the
distribution in Southern Oregon is by truck. The Table Rocks, Mount McLaughlin, and Mount
Ashland are all famous landmarks visible to citizens of Southern Oregon. Community elevations
in Southern Oregon range from 960 to 2,535 feet above sea level (Southern Oregon Area
Profile).
The location, climate, and topography of Southern Oregon only compliment why this is a
budding town and many businesses are beginning their start here. With all the outdoor
adventures offered in the area that the younger population is finding benefit in, a nutritious
salad company would be successful in reaching a target market that heavily populates Medford.
Competitive Data Analysis
By knowing the direct and indirect competitors, a business can tweak their marketing campaign
that can make the business more successful than their competition.
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Raelynn Leffler
The competitors of Shredz are Sophia's Soup Factory, Basil & Berries, and Traders Joe’s. Trader
Joe’s is an indirect competitor because while they do sell pre-made salads, it is not their major
product of promotion.
Business Name
Major Products
Price of Products
Location
Sophia’s Soup
Factory
(Direct)
Basil & Berries
(Direct)
Soup
Salad
Under $10
Wraps
Salads
Sandwiches
Organic Groceries
Approximately
$10
543 Medford
Center, Medford
OR 97504
1600 N Riverside
Ave, Medford, OR
97501
55 Rossanley Dr,
Medford, OR
97501
Trader Joe’s
(Indirect)
$10-$20
Promotion
Types
Radio, Word
of Mouth
Word of
Mouth,
Website
Radio,
Newspaper
SWOT Analysis
A SWOT analysis is significant to a business because it includes information of not only your
company, but also similar companies. A SWOT analysis focuses on the strengths, weaknesses,
opportunities and threats of a business. The analysis might also refer other aspects of the
business like who the target market is, what product or service is being sold, when the product
or service is selling the most, and where the business will be located.
Shredz



Great location
Near the RCC campus
Minimal parking in front
Opportunities


Threats

Parking lot across the street & parking garage within blocks
Many new local businesses bringing in more people to the
area
Surrounded by many food businesses
Strengths
Weaknesses
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Raelynn Leffler
Sophia’s Soup Factory
Strengths


Lot of foot traffic
Many places to sit
Weaknesses


Surrounded by other food companies
Can’t be seen from the street
Opportunities


Healthiest option against competitors
Lots of parking
Threats

No social media presence
Trader Joe’s
Weaknesses



Great Location
Organic produce
Many products
Opportunities

Healthy option compared to competitors
Threats

Little social media presence
Strengths
Market Segment Analysis
Market Segment Analysis
When making marketing decisions relating to product, price, place and promotion, a
business will refer to their target market as well as the demographics and psychographics to
make the best choice possible in order for the business to flourish. A business needs to have a
clear target market in order to be profitable for investors. If the business has an unclear target
market or a target market that is too broad, the predicted numbers for the business will not
match the real numbers the business is receiving. This could result in the business losing money
or having to spend more money to make changes to get the predicted numbers.
The demographics of Shredz are in direct correlation with the location of the business.
Located in downtown Medford, Oregon and nearly on the Rogue Community College Campus,
Shredz is surrounded by students and local businesses. The demographics of Shredz will allow
the business to flourish and be profitable month-to-month.
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Shredz Salad Co.
Raelynn Leffler
Shredz
Demographics
Age: 18 - 35
Sex: Female/Male
Race: Any
Income Level:
$12,000 to $30,000
Education: High
School/GED
The target age for potential consumers of Shredz products is someone
between 18 – 35. Rogue Community College is open to students wishing
to pursue a higher education regardless of their age and businesses near
the area are new and trendy bringing in young clientele. Sex and race are
inapplicable elements to Shredz for the reason that a salad can be
desired by anyone regardless of both factors. The income level is a
decent amount for a college student or someone living a little less than
middle class (Middle Class Income Calculator).
The psychographics of the target market is a combination of Achievers and
Experiencers. Achievers are goal-oriented are have a connection to their career and family
(VALS). Many of the traits of an achiever can be found in college students that didn’t want to be
too far away from home to further their education. Experiencers find their energy outlet in
exercise, sports, outdoor recreation, and social activities (VALS). Based on those qualities, an
experiencer puts their health on a high pedestal which can be translated into what they eat.
Determining the right target market is crucial for any business to survive. The
demographics and psychographics that make the target market might alter a little when the
doors of the business open but just like anything in life, change is inevitable. Shredz offers
products that are not promoted widely in the valley and an opportunity that can be taken
advantage of.
Analysis of Location
Location
Business Location





149 S Central Ave, Medford, Oregon
On the corner of S Central Ave and E 9th Street
Downtown Medford
Other local businesses include Tacos Mi Tierra, RCC Campus, Medford Library, Oh’s
Osaka, Coffee Bar, Astrial Games, The Fella’s Barber Shop (Google Maps)
Owned by Central Avenue Properties LLC
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Shredz Salad Co.
Raelynn Leffler
Competition



Sophia’s Soup Factory
o 0.7 mi away (Google Maps)
o North Medford
Basil & Berries
o 1.5 mi away (Google Maps)
o Central Medford
Trader Joe’s
o 1.7 mi away (Google Maps)
o Central Medford
Traffic


Mostly Foot Traffic
People will drive by when passing through downtown Medford
Area Maps

Shredz Location

Competition Map
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Raelynn Leffler
Floor Plan
The building is a rectangular shape with a
square footage of 1456 feet (LoopNet).
With a flow to the interior design, it is
easily manageable for cleaning and
maintenance. There are 5 tables, 3 inside
and two outside, a bathroom for
customers, a break room for employees as
well as a back room where all the extra
supplies and refrigerators will be kept.
Section 3 - Planned Operation of Proposed Business
Proposed Organization
Type of Ownership
The ownership of Shredz will be sole proprietorship. A sole proprietorship leaves all the
managerial control to the owner and the owner collects all the profits of the business
(Entrepreneur). More than 75 percent of companies use this method of ownership for the
reason that it is the simplest form for starting a new small business (PowerHomeBiz.com). One
disadvantage to this type of ownership is the personal liability, but that can easily be overcome
by having a successful business. The owner of a sole proprietorship business must wear many
hats from accounting to advertising to employee.
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Raelynn Leffler
Management
While each management style has their benefits, the participatory technique best suits
me for the reason that when give specific tasks, I tend to work better and understand more
depth in what duties I’m performing. Rewards for jobs done well and motivation to improve
help maintain the momentum of the tasks and let peers know that you have faith in their
efforts (AllBusiness).
General
Manager
Assistant
Manager
Employee
Employee
Employee
The general manager will be in control of all financials and marketing of the business as
well as being able to perform all the tasks of those below her. The general manager will also be
the director of the team and will control the flow of the business. The assistant manager will be
responsible for keeping the employees in check and being able to perform closing duties such
as closing till and cleaning. The employees will work the salad bar and register as well as restock
at night and clean when closing.
Yearly Labor Schedule
General Manager
Assistant Manager
Employee
$12.00 /hr
$10.00 /hr
Flat Salary
40 hours/week
25 hours/week
$55,000 /year
$24,960 /year
$13,000 /year
A good management will lead the business to success because it’s the employees and
assistant manager that will be bring in most of the image of the business. If they do not pose a
good representation of the business it falls back onto the general manager for they are the one
that is in control of the business. I believe this management style will lead to a successful
business because we treat the employees and assistant manager with respect and let them
know that they are a key factor for this business.
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Shredz Salad Co.
Raelynn Leffler
Proposed Product or Service
Proposed Product or Service Mix
When a company is starting out or is trying to build a new clientele, it is important for
the business to introduce new products and/or services for their customers. By having new or
temporary items on a regular basis, customers will always be given an opportunity for a new
experience. Obviously, some individuals are not as susceptible to change as others, but
providing a little bit of something new every once in a while will be proven to be beneficial to a
company’s ratings.
With five signature salads as well as the option to build your own unique salad, Shredz
offers a healthy eating option to those on the go. The signature salads we will have available
are some of the major classics of the salad realm; for example: Asian salad, Caesar salad, Cobb
Salad, Greek Salad, and The Shredz Salad. With the build your own option, customers will have
a chance to make a salad that is uniquely catered to their preferences. They will be able to
choose toppings and add ins from the salad bar that contains over 30 different options of salad
toppings. Apart from the salads, Shredz will also offer the option of turning your salad into a
wrap for an equal price, and a variety of freshly baked breads. For beverages, Shredz will offer a
select group of gourmet lemonades, juices, teas, coffees, and Pepsi drinks by the can.
With the majority of the immediate target market being of the surrounding two college
campuses, our products will be easy to sell to the students who are constantly on the move
around our location. It is essential for us to provide fast, easy, and fairly cheap products for this
specific demographic of people. We plan on keeping the business young and lively to fit the
new ideals of college life. With all the healthy and satisfying options that Shredz is going to offer
to the public, our business is sure to be successful.
Suppliers
Company
Name
Organic
Produce
Warehouse
Product
Offerings
Address
Ashland, OR
Shredz Supplier List
Phone
Web Address
Number
(541) 201
-0985
http://opwfresh.com
Rating
5 stars
Organic Produce Warehouse offers a variety of products such as fresh produce,
Columbia Gorge smoothies, Genesis juices, Viso energy drinks, Rogue Coffee
Roasters coffee, Honest Tea teas, Amy & Brian's and Blue Monkey coconut juice,
Rogue Salsa, and much more. OPW specializes in distribution to Rogue Valley,
13
Shredz Salad Co.
Charlie’s
Produce
Product
Offerings
Raelynn Leffler
Illinois Valley, Willamette Valley, and Siskiyou Country. To become a customer of
OPW, a New Customer Service Agreement can be faxed and then a sales
representative will contact back (Organic Produce Warehouse).
(541) 491 http://www.charliesproduce.com
4 stars
10755 SE
- 5974
Jennifer
Street,
Clackamas, OR
97015
Charlie’s Produce carries a variety of vegetables, fruit, specialty items, fresh-cut
produce, grocery products, and floral items. Charlie’s is the leading organic
produce supplier in the Northwest. A feature this company offers is the option to
purchase your produce online (Charlie's Produce).
Equipment
Quantity
1
1
1
1
1
5
1
6
12
4
1
1
2
1
1
2
2
1
Product
Dishwasher
Refrigerator
Soda Refrigerator
Continental Refrigerator
Espresso Machine
Small Table
Large Table
Table Base
Chairs
Break Room Chairs
Ice Machine
Large Sink
Small Sink
Toliet
Register
TV
TV Mount
Locker
14
Price
2,959.00
1,999.00
849.00
6,371.88
3,393.00
126.00
225.00
109.99
924.00
22.68
1,645.00
579.00
499.00
295.00
159.99
238.00
16.88
529.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total
2,959.00
1,999.00
849.00
6,371.88
3,393.00
630.00
225.00
659.94
924.00
90.72
1,645.00
579.00
998.00
295.00
159.99
476.00
33.76
529.00
22,817.29
Shredz Salad Co.
Raelynn Leffler
Proposed Marketing Strategies
Pricing Policies
The pricing for a company’s products is one of the most important parts of a business because if
the pricing is higher than what people think it should be, individuals will stop buying your product. To
set a good price, it would be wise to see what people are willing to pay for the given item. When the
item being sold is of higher quality it’s understandable that someone is more willing to pay an expensive
price. Finding the balance between low and high pricing is the main goal.
Shredz is an establishment with many different salad options, and our prices are going to vary
depending on how many ounces the salad weighs. With saying this, it is up to the customer to decide
the price of their food. For signature salads, there will be a flat fee for each size: $4 for a small, $6 for a
medium and $8 for a larger. The same goes for the process of putting these salads into wraps. In simple
terms, it is up to the customer what the price of their meal is going to end up being. If a customer that
wanted a lot of toppings came up to the counter, it is inevitable that their bowl of salad would weigh
more, and then cost more, than someone who didn’t add as many toppings to their salad.
Our main goal as a food provider is to give our customers healthy and nutritious meals at a price
that is reasonable enough for them to want to come back again. It would be insane to target our
business to a demographic of people who are kind of known for not having a whole lot of money and
then charging them outrageous prices for our products. I think through the policy we are implementing
that basically says ‘you’re paying what you want to pay for,’ we will be able to be a reasonably cheap
place for students to dine all throughout the Rogue Valley. Because of our dedication to the public in
which we will serve, our prices are something that work well with what our business is trying to achieve.
Promotional Strategies
The only way for a business to succeed in the first few months is to get their name to
the public. There are many different strategies to do this ranging in forms of paid and free
advertisement. A business needs to promote their product for customers to be aware of their
establishment. For example, if a business is tucked away on a side street, the only customers
they will have with no promotion are people who pass by the area on a regular basis; if the
business was to promote themself, that’s putting them out to an audience that did not know of
them before their promotion. Shredz Salad Co. plans on using the best advertisement strategies
to promote their product in order to reach the most benefits for the company.
Advertising


Website & Social Media (Instagram, Facebook, Twitter)
Radio Ad (Kiss Fm, The Wolf)
Publicity
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Shredz Salad Co.

Raelynn Leffler
Press release featured in Southern Oregon Magazine and Mail Tribune
Sales Promotions


Contests on Social Media platforms
Booth at local races (Pear Blossom, Southern Oregon Runners)
Promotion is crucial in order for a business to survive in a generation that is constantly
looking down at their smart phone. The promotional strategies we’ve chosen to implement for
Shredz Salad Co. will bring the maximum benefit and business to the company. We plan to
continue to use the promotional strategies after the initial opening in order to keep our name
out in the public for the only way a business can succeed is by being known.
Section 4 - Financing
Projected Income and Expenses
Sales Forecasting
Company
Shredz
Sophia's
Soup Factory
Trader Joe's
Basil &
Berries
Wendy's
Great
Harvest
Estimated
Customer
Spending Per
Month
Total Target
Population
% of
Market
Share
9%
% of
Target
Market
6,991
14%
10%
Estimated
Sales
Estimated
Earnings
Yearly Gross
699
22,368
$11,184.00
$134,208.00
10,875
1,087
34,784
$17,392.00
$208,704.00
26%
20,196
2,020
64,640
$32,320.00
$387,840.00
11%
8,544
855
27,360
$13,680.00
$164,160.00
27%
20,973
2,097
67,104
$33,552.00
$402,624.00
11%
8,544
855
27,360
$13,680.00
$164,160.00
$32
77,677
After finding five competitors and determining the percent of the market each possess, we
found the total population of the target market. Each competitor as well as your own business
has a percentage of the target market so we multiplied the percent of market share and the
16
Shredz Salad Co.
Raelynn Leffler
target market to get the percentage of the target market for each business. As a general rule of
thumb, 10% of your customers will purchase 90% of your products so we took 10% of the
percentage of the target market. We estimated that one person would come into our business
at least once a week and spend on average eight dollars, so over the course of one month one
customer would spend $32. Now we took the number that was calculated for the 10% and
multiplied it by the amount each customer would spend per month. This gave us the estimated
sales for the month. For the graph above, we divided the estimated sales in half because this is
a new business and new business usually only make 50% of their potential sales in the first year.
For the graph below, we determined that we would gain more of the market share after the
first year which in turn would make out estimated earnings grow.
Company
% of
Market
Share
15%
Shredz
Sophia's
Soup Factory
Trader Joe's
Basil &
Berries
Wendy's
Great
Harvest
Estimated
Customer
Spending Per
Month
Total Target
Population
% of Target
Market
10%
Estimated
Sales
Estimated
Earnings
Yearly Gross
11,652
1,165
37,286
$18,643.20
$223,718.40
13%
10,098
1,010
32,314
$16,156.82
$193,881.79
25%
19,419
1,942
62,142
$31,070.80
$372,849.60
10%
7,768
777
24,857
$12,428.32
$149,139.84
24%
18,642
1,864
59,656
$29,827.97
$357,935.62
10%
7,768
777
24,857
$12,428.32
$149,139.84
$32
77,677
Building Costs
Based on the square footage cost, Shredz will cost $235,000. With monthly payments of
$1,134.30 for twenty years with a 3.95% interest rate the building will be paid off by then end
of the twentieth year.
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Shredz Salad Co.
Raelynn Leffler
Fill in your building data to determine how much your building will cost based on the cost/square
foot. You should use spreadsheet formulas that refer to the data below and automatically
calculate your costs so that you can change figures easily in case you need to make adjustments.
After you find out how much the building will cost, estimate the monthly payments on a 20 year
loan with 20% down and 3.95% interest using the chart below.
Facilities
Kitchen and Bath
Total
Sq. Feet
1000 ft
456 ft
Cost
$121.00
$250.00
1456 ft
$235,000.00
Cash for Down Payment
Term of Loan (Years)
Annual Interest Rate % - 3.25
Loan Amount
Monthly Payment
Figures for Building Costs
Cost per
square foot
Regular Retail
$121.00
Regular Residential
$125.00
Kitchen & Bath
$250.00
$47,000.00
20
3.95%
$188,000.00
$1,134.30
Financing
Rates
20 year fixed
20 year fixed
15 year fixed
3.95
3.95
3.375
Proposed Plan to Meet Capital Needs
Financing
Shredz Salad Co. will take out two loans to cover the working capital and equipment.
The first loan will be a SBA 7a Loan to for the costs of the working capital for a total of $80,000.
The second loan will be a SBA 504 loan to cover the expenses of the equipment for $18,300.
Both loans will be paid off in 7 years with a monthly payment of $1,039.34 combined.
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Shredz Salad Co.
Raelynn Leffler
Working Capital
$100,000
Equipment
$22,817.00
20% down payment
$20,000
$4,563.00
3% loan fees
Total out of pocket
cash needed
$2,400
$22,400
$548.00
$5,111.00
Loan amount
$80,000
$18,300.00
Total cash needed
Prime rate
Additional interest
3.25%
2.55%
3.25%
2.55%
Total interest rate
5.80%
5.80%
Length of loan in
years
7
Monthly payment*
$845.85
7
$193.49
Section 5 - Conclusion
Overall, Shredz Salad Co. has a promising future in the Rogue Valley. Our goal is help
improve the health of the Southern Oregon community through quick service and quality food.
This is something that is lacking in the Rogue Valley. With the help of generous investors, they
too can be involved in a business that is expected to grow every year of establishment.
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Raelynn Leffler
Section 6 - Bibliography
AllBusiness Editors. "Three Effective Management Styles." AllBusiness. AllBusiness, n.d. Web. 11
May 2015. <http://www.allbusiness.com/three-effective-management-styles-114381.html>.
"Choose Your Business Structure." Entrepreneur. Entrepreneur, n.d. Web. 11 May 2015.
<http://www.entrepreneur.com/article/38822>.
Chou, Hugh. Middle Class Income Calculator for Major Metropolitan Areas, Cities and States in
the United States (2012 Data). N.p., Web. 13 May 2015.
<http://www.hughcalc.org/midclass.php>.
"Historical Retail Sale Listing - 149 S Central Ave." LoopNet. LoopNet, n.d. Web. 11 May 2015.
<htt p://www.loopnet.com/Listing/16343715/149-S-Central-Ave-Medford-OR/>.
Isidro, Isabel. "Choosing the Legal Structure of Your Business."PowerHomeBiz.com.
PowerHomeBiz.com, Web. 11 May 2015. <http://www.powerhomebiz.com/starting-abusiness/business-structure/choosing-the-legal-structure.htm#Sole%20Proprietorship>.
"Our Products." Organic Produce Warehouse. Organic Produce Warehouse, n.d. Web. 11 May
2015. <http://opwfresh.com/customers/>.
"Products." Charlie's Produce. Charlie's Produce, n.d. Web. 11 May 2015.
<http://www.charliesproduce.com/products/>.
Southern Oregon Area Profile. Southern Oregon Regional Economic Development, Inc., n.d.
Web. 9 Apr. 2015.
<http://www.soredi.org/SIB/files/Southern%20Oregon%20Profile%2C%202012.pdf>.
"Southern Oregon Climate." Climate. Southern Oregon Regional Economic Development, Inc. ,
Web. 9 Apr. 2015. http://www.soredi.org/Page.asp?NavID=426#.VV77CE9VhBc
US Framework and VALS™ Types. Strategic Business Insights, n.d. Web. 11 May 2015.
<http://www.strategicbusinessinsights.com/vals/ustypes.shtml>
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Shredz Salad Co.
Raelynn Leffler
Appendix
Selection Letter
Shredz Salad Co.
Raelynn Leffler
188 S Central Ave
Medford, Oregon 97501
May 11th, 2011
Mr. Frances Hedge
SBA Loan Officer
Bank of America
845 N. Highland Street
Medford, OR 97501
Dear Mr. Hedge:
The Rogue Valley lacks businesses that not only provide quick service and quality food but also
food that is healthy while at a decent price. I believe Shredz Salad Co. will meet those needs of
time efficiency, good quality, and nutritious all while at a price one is willing to pay. What I’m
asking of you is to hear out my ideas and invest in this future business coming to the Rogue
Valley.
Shredz Salad Co. is focused on improving the health of the community by offering a healthy
eating option to those that need a meal in a quick stop. With our proposed location in
downtown Medford and nearly on the Rogue Community College, our target market is focused
on the students and workers of the area. The idea of Shredz Salad Co. is not only practical for
our location and target market, but it also fills a demand that is not met in the Rogue Valley.
While every business has competitors, ours do not solely focus on the healthy choice of salads,
but rather salads with a fattening side dish or a salad as a complimenting dish to an
unwholesome main course. All our produce is bought through two Oregon distributors based in
Ashland, Oregon and Willamette Valley. By buying from these two distributors that already
have a positive and great value feedback on their produce, it ensures that Shredz will also be
able to deliver a high quality product.
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Raelynn Leffler
Overall, Shredz Salad Co. demonstrates characteristics that are not being strongly implemented
in the valley and has room to further its potential down the road. I look forward to further
discussing my ideas with you, and would like to schedule a time to meet with you. You can
contact me at raelynnleffler@yahoo.com. I appreciate your time although if I do not hear from
you within two weeks I will get in touch with you.
Sincerely,
Raelynn Leffler
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Shredz Salad Co.
Raelynn Leffler
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Shredz Salad Co.
Raelynn Leffler
Business Card
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Shredz Salad Co.
Raelynn Leffler
Logo
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