Business Plan
Prepared By:
Amanda Hoehn
Jeremy Olthof
Leigh Anderson
Glenn Stacey
Introduction
 The feasibility of
moving a packaged
fudge bar into the
premium retail market
 Primary target market
will be Western Canada
AgEc 495.3 College of Agriculture
and Bioresources
Site Layout
AgEc 495.3 College of Agriculture
and Bioresources
Goals of Business
 Short Term
 Western Canada
 Retail market
 Packaging and selling of:
 12 regular flavours
 2 sucrose free flavours
 Long Term
 Expand to the rest of
Canada
 Relocate to a larger
facility
AgEc 495.3 College of Agriculture
and Bioresources
Fudge Process
Raw
Ingredients
A
Fudge
Vat
Fudge
Pan
B
C
Scoring
D
F
Heat Sealing
Cutting
E
Packaging
G
Labeling
H
Display Case
I
Master Case
AgEc 495.3 College of Agriculture
and Bioresources
Inventories, AR and AP
 Inventories
 12 days
 FIFO
 Accounts Receivable
 12 days
 Consignment and PharmaChoice®
 Customer pay by credit card at gift shows
 Accounts Payable
 10 days
 New York supplier - 2/10 n/45
 Harlan Fairbanks - 2/10 n/30
AgEc 495.3 College of Agriculture
and Bioresources
Capital Budget
Value
Purchased Assets
Heat Sealer
Printer
Computer
Blackberry™
Current Assets
Fudge Pots
Fridge and Freezer
Miscellaneous Equipment
Total Equipment Costs
Total Working Capital
Total Capital Required
$
$
$
$
7,500
10,000
3,200
400
$
$
$
$
$
$
10,000
500
5,000
36,600
7,521
44,121
AgEc 495.3 College of Agriculture
and Bioresources
Organizational Structure: Board
of Directors
Board of Directors (2)
President/General Manager
Co-Manager
Sales Representative
Factory Staff
AgEc 495.3 College of Agriculture
and Bioresources
Human Resources
 Currently




President/General Manager
Co-Manager
Fudge Chef
Fudge Workers
 Additions
 Sales Representative
 Fudge Workers
AgEc 495.3 College of Agriculture
and Bioresources
Product
 80g premium fudge bar
 4 x 2 package
 12 regular flavours and 2
sucrose free
 Wrapped in a glossy package





Weight
Flavour
Ingredients
Best before date
Nutritional information
Varieties
Regular
Pumpkin Pie
Heavenly Goo
Chocolate
Maple Nut
English Toffee
Chocolate Peanut Butter Swirl
Summer Tortoise
Caramel Pecan
Chocolate Amaretto Swirl
Chocolate Mint Swirl
Cookies and Cream
Sucrose-free
Chocolate
Maple-Nut
AgEc 495.3 College of Agriculture
and Bioresources
Price




Wholesale $2.59
Retail and consignment $3.99
Both premium and competitive pricing strategy
FF will be the only providers of fudge to the retail
market
AgEc 495.3 College of Agriculture
and Bioresources
Promotion





Gift shows
“Fudge Program”
Retail display rack
Website
Pamphlets and signs
AgEc 495.3 College of Agriculture
and Bioresources
Place
 Gift shops
 24 PharmaChoice® stores
 SaskMade Marketplace®
 Shipped by private courier
 Contacted via gift shows
http://www.pharmachoice.com/images/front-logo.gif
http://www.sfpa.sk.ca/img/programs_market_saskmade.gif
AgEc 495.3 College of Agriculture
and Bioresources
SWOT: Strengths
 Human Resources
 Ease of communication with staff
 Excellent knowledge base of fudge industry
 Commissioned sales personal
 Physical Resources
 Low capital investment
 Leasing the building
 Financial Resources
 Just in time inventory turnover
 Line of credit available in case of low cash flow
AgEc 495.3 College of Agriculture
and Bioresources
SWOT: Weaknesses
 Human Resources
 Executive and Sales Rep. have overlapping positions
 Consistency of product and packaging
 Physical Resources
 Low capital investment
 Limited expansion potential with a leased building
 Product has to be set at a certain temperature
 Financial Resources
 No accounts receivable at gift shows
AgEc 495.3 College of Agriculture
and Bioresources
SWOT: Opportunities and
Threats
 Opportunities
 Provide an alternative to chocolate – niche market
 Other retailers can follow the gift stores, PharmaChoice,
SaskMade Marketplace
 Sucrose free product to diabetics and dieters
 Threats
 No barriers to entry for competition
 Healthier consumption choices
AgEc 495.3 College of Agriculture
and Bioresources
Competition







Cote D’or®
Poulain®
Lindt®
Bernard Callebaut®
Laura Secord®
Cadbury®
Hershy®
AgEc 495.3 College of Agriculture
and Bioresources
Balance Sheet
Chocolate Moose Fudge Factory
Balance Sheet
as at August 31, 2007
Assets
Current Assets:
Cash
Accounts Receivable
Total Inventories
Total Current Assets
Liabilities
Current Liabilities:
4,996 Accounts Payable
9,367
7,335 Long-Term Liabilities:
21,697 Long Term Debt
Long-Term Assets:
Buildings, Machinery & Equipment
Accumulated C.C.A
Total Long-Term Assets
Total Assets
Total Liabilities
18,400
(13,725) Owner Equity
4,675
Owner Equity
Retained Earnings
Total Owner Equity
26,372 Total Liabilities & Owner Equity
AgEc 495.3 College of Agriculture
and Bioresources
9,180
9,180
50,000
(32,808)
17,192
26,372
Statement of Financial Results
Year
Sales
COGS
Gross Margin
Expenses
Income b/f Taxes
Income Tax
Net Income
Beg. Retained
Earnings
Dividends
End. Retained
Earnings
2007
110,000
$ 300,982
2008
132,000
$ 291,367
2009
158,400
$ 359,676
2010
190,080
$ 410,493
2011
228,096
$ 491,786
$ 111,947
$
71,019
$
$
147,681
71,197
$
$
$
$
$
$
76,483
2,723
73,760
(40,181) $
747
$
$
(16,082) $
66,725 $
57,350
65,024
$
$
67,154
66,853
$
$
$
(82,808) $
$
(82,808) $
(7,674) $
$
(7,674) $
301
301
(32,808) $
(40,482) $
$
50,000
$
$
-
$
-
$
$ (32,808) $ (40,482) $
Ending Cash
$
4,996 $
4,002 $
Net Present Value (NPV)
Internal Rate of Return on Equity Investment
External Rate of Return on Equity Investment
-
$
(40,181) $
4,805 $
AgEc 495.3 College of Agriculture
and Bioresources
40,928
40,928
-
$
-
747 $
74,508
44,584 $ 115,674
$137,172
38.63%
33.32%
Financials
Se nsitivity of Ne t Pre se nt Value : Price and
Sale s
Percentage Change in Price
and Sales
10%
$466,268
$297,213
5%
0 (Base)
-5%
-10%
$137,172
$(15,262)
$(159,253)
NPV
AgEc 495.3 College of Agriculture
and Bioresources
Financials
Sensitivity of Internal Rate of Return: Price
and Sales
Percentage Change in Price
and Sales
10%
88.7%
5%
61.6%
0 (Base)
38.6%
-5%
-10%
18.0%
-3.6%
IRR
AgEc 495.3 College of Agriculture
and Bioresources
Questions ?
www.fudgefix.com
AgEc 495.3 College of Agriculture
and Bioresources