Business Plan
Contact Information
Business Name: Smith Enterprises, Inc. t/a Chesapeake Dogs
Mailing Address: 1709 Crain Highway, Waldorf, Maryland
Telephone: (301) 876-5309
Fax: (301) 555-1234
E-mail: ChesapeakeDogs@domain.com
Business Location: 1709 Crain Highway, Waldorf, Maryland
Date Formed: April 2, 2002
Owner: Robert Smith
% ownership: 81%
Larry Edwards
I
19%
Introduction
This business plan demonstrates to a lending institution that loaning Robert Smith needed funds to start
Chesapeake Dogs is a wise investment. Chesapeake Dogs provides the customers of Waldorf with a highquality product coupled with superior, reasonable priced service.
Below are the uses and sources of proceeds for this project.
Uses
Real Estate & Building Acquisition:
$0
New Construction/Expansion Repair:
$ 37,250
Acquisition/Repair of Equipment:
$ 27,700
Inventory Purchase:
$ 2,000
Working Capital:
$ 23,050
Debt Refinance:
$0
Business Acquisition: (Goodwill)
$0
Other:
$0
Total Uses:
$ 90,000
Sources
Equity Injection:
$ 40,000
Already Spent:
$0
New Cash:
$ 40,000
Used Equipment: $ 0
Commercial Loan:
$ 50,000
Private Loan:
$0
II
Company
A. History
Bob Smith has been employed at Best Hot Dogs in La Plata, Maryland since October 1997. Over this
period of time he has held positions as cashier, assistant manager, and, for the past three years, store
manager. He knows the business inside and out and is extremely excited about the prospects of this
new opportunity. In addition to Mr. Smith, Chesapeake Dogs will employ Jerry Wiley, a long-time
business associate who now works as a store manager in a fast food restaurant elsewhere in Maryland.
After studying the feasibility of this venture, Mr. Smith feels very satisfied with the viability of the
business and its potential for profit. He has made conservative projections based on his experience in
the field, hot dog restaurant industry averages, and historical information from other hot dog
restaurants in this same market area. He is a long-time resident of the area and has conducted several
surveys that showed the need for alternative fast food items. While customers see his product as a
direct substitute for hamburgers and chicken sandwiches, the labor and product costs for serving hot
dogs are lower. In addition, people in this rural Maryland county have shown a loyalty to locally
owned establishments over the giant chain businesses. For all these reasons, Mr. Smith believes this is
an excellent, low-risk opportunity.
B. Legal Structure
Chesapeake Dogs, Inc is a Maryland Sub-Chapter S-Corporation owned by Robert Smith (81%) and
Larry Edwards (19%).
C. Facility
The business will be located at 1709 Crain Highway, Waldorf, Maryland and will be of 1,500 square
feet.
This location benefits the business because it is on the southbound side of Route 30l with immediate
neighborhood access at an intersection controlled by a traffic light. This will make it convenient for
commuters to stop and pick up dinner on their way home from their jobs in Washington, DC/Northern
Virginia. The location has a daily traffic count of 55,000 vehicles, and it is in the center of the
county’s fastest growing market. Our location is in an area zoned for retail/commercial use; and while
no customer or employee parking requirements exist for this area, our parking lot is adequate for over
50 cars.
The facility needs the following improvements:
D. Equipment
Description
Miscellaneous equipment
Cost / Value
Total:
$27,700
$27,700
Status
Need
III
Product / Services
Chesapeake Dogs will specialize in several types of hot dogs and sausages served on a variety of buns.
Chesapeake Dogs’ original chili sauce will make the sandwiches unique and differentiate Chesapeake Dogs
from the competition. The primary products to be sold at Chesapeake Dogs will be regular and foot-long
hot dogs, bratwursts, Italian sausages, kielbasas, and barbecue served on homemade buns. Chesapeake
Dogs will also offer side dishes (coleslaw, French fries, onion rings, potato chips), desserts (cookies, and
ice cream bars), and canned and bottled soft drinks.
IV
Industry & Market
A. Industry
Chesapeake Dogs has identified the restaurant as our industry. According to National Restaurant
Association, the size of the industry is $44 million, with an average growth rate of 3% per annum.
This industry is currently strong because there is a growing desire for sit-down restaurants in the
proposed location. With businesses moving into the surrounding areas and housing developments
being built within a 5-mile radius, the client-base will only increase with higher potential for repeatcustomers.
B. Target Market / Description of Customer Base
Our typical customers are families, working professionals that are looking for a simple treat for lunch
and children in our targeted area of Waldorf, Maryland. Based on National Hot Dog Association it is
estimated that there are 104,750 customers, spending $591,000 per year in hot dog focused restaurants
in our targeted area and surrounding areas.
C. Competition
Competitor
Best Hot Dogs
Location
La Plata, Maryland
Estimated Sales
$252,000
Strengths
Excellent service
Dog and Draft
Waldorf, Maryland
$372,000
Very nice dining
area
Weaknesses
Smaller customer
market
Charge 15% more
for food
Big Dogs
Waldorf, Maryland
$204,000
Good food prices
and quality
Poor customer
service
D. Market Potential
Based on our research, we believe that there is an un-met need in our target market. There is a great
need for a quality hot dog restaurant in the area of Waldorf, Maryland. Our marketing plan will tap into
that market and provide for that un-met need.
V
Marketing
A. Product / Service’s Comparative Advantage
The business will promote the following:
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





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Chesapeake Dogs’ original chili sauce
Regular and foot-long hot dogs
Bratwursts
Italian sausage
Kielbasas
Barbecue
Side dishes (coleslaw, French fries, onion rings, potato chips)
Desserts (cookies, and ice cream bars)
Canned and bottled soft drinks
B. Pricing
Our pricing will be determined by averaging surrounding restaurants that provide our type of
service and charging that average.
C. Promotional Strategy
The company will promote in the following ways:
Vehicle
Print
Print
Print
Word of Mouth
Media
Direct-mail
coupons
Door
Hangers/menus
Mailbox Mailer
coupons
Word of Mouth
Frequency
1,000 per month
Year 1 Budget
$2,400
2,000 per month
$2,640
15,000 per month
$600
Constant
Free
D. Physical Distribution of Services
Chesapeake Dogs will provide a nice sit-down area for patrons to eat as well as providing carryout
service, delivery and catering.
VI
Management & Staff
Position
Co-owner
Co-owner
Manager
Basic labor
Duties
General
management, basic
accounting tasks
and marketing
General
management,
overseeing of daily
operations
Management of
employees and
daily operations
Cash register
attendant, greeters,
servers, cooks
Person
Robert Smith
Experience
7 years
Compensation
$22,800
Larry Edwards
10 years
Profits only
Jerry Wiley
5 years
Profits only
6-8 employees
Required: 1 year
restaurant
experience
$8-10 per hour
VI
Professional Services and Advisors
Bank: Not Yet Determined
Lawyer: Robert Hutchings, Esq.
Accountant: Jim Edmonds, CPA
Insurance Agent: Not Yet Determined
Business Advisor: Joe McGinnis, SBDC
Restaurant Advisor: Mark Lewis
Management / Owner Biographical Background / Financial Information
Personal Information
Name: Robert Smith
SSN: 123-45-6789
DOB: 03/22/1969
Place of Birth: Baltimore, MD
Marital Status: Married
Spouses Name: Ann Marie Smith
U.S. Citizen: Yes
Alien Registration Number: N/A
Current Home Address: 160 Wayfield Lane
Waldorf, MD
Here Since: February 1994
Current Home Phone: (410) 555-9621
Current Business Phone: (410) 555-9724

Immediate Past Home: 23 S. Security Street
Westernport, MD
From: January 1989
To: February 1994
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Have the owners or officers of this company ever
been involved in bankruptcy or insolvency
proceedings? No
Has the business itself ever been involved in
bankruptcy or insolvency proceedings? No
Is the business or any of its owners involved in any
pending lawsuits? No
Are any officers, directors, key managers or owners
of 20% or more of the company presently under
indictment or on parole or probation? No
Have any officers, directors, key managers or
owners of 20% or more of the company ever been
charged with or arrested for any criminal offense
other than a minor vehicle violation? No
Have any officers, directors, key managers or
owners of 20% or more of the company ever been
convicted of any criminal offense other than a minor
vehicle violation? No
Business / Employment Information
Company Name: Best Hot Dogs
Type of Business: Hot Dog Restaurant
Address: La Plata, Maryland
Position / Duties: Currently store manager, past positions include: cashier and assistant manager
Here From: October 1997
To: Present
Personal Budget Analysis (After Loan)
Income(monthly)
(monthly)
Income
Expenses (monthly)
Salary(Gross)
(gross)
Salary
Spousal Salary (Gross)
Rental Income
Interest Income
Investment Income
Other (…)
$ $1,900
$0
$0
$0
$0
$0
Total Monthly Income
$ 1,900
Mortgage Payment / Rent
Real Estate Taxes
Auto Loans
Installment Payments
Credit lines/ Cards
Utilities & Telephone
Insurance
Food
Clothing
Child Care
Other (…)
Total Monthly Expenses
$ 850
$ Inc. above
$ 150
$0
$ 100
$ 200
$ 150
$ 80
$ 60
$0
$0
$ 1,590