Best Ice Cream
There’s Best and then there’s the rest.
Business Plan
April 2013
Sherif Alghali
Owner & Founder
TABLE OF CONTENTS
EXECUTIVE SUMMARY ....................................................................................................................1
LEADERSHIP ....................................................................................................................................2
PRODUCT OFFERING .......................................................................................................................2
MARKET ..........................................................................................................................................2
COMPETITION ..................................................................................................................................3
DIFFERENTIATION ...........................................................................................................................3
MARKETING STRATEGY ..................................................................................................................3
VISION AND OBJECTIVES.................................................................................................................4
FINANCIAL SUMMARY .....................................................................................................................6
FINANCING STRATEGY ....................................................................................................................6
FINANCIAL PROJECTIONS .............................................................................................. ATTACHED
EXECUTIVE SUMMARY
Overview: Best Ice Cream is an ice cream truck that
Management:
Sherif Alghali focuses on festivals, high-traffic parks, and special events in
Dallas, Texas. We provide an alternative to the high-end
Company Name:
Best Ice Cream specialty ice cream trucks in Dallas, in which patrons are
charged upwards of $5 for ice cream. We will provide
Industry:
Mobile Food Service traditional ice cream novelties at a price point of $3. We
believe that there is a large market of families that want
Owner investment - cash
$ 1,000 simple and affordable ice cream at fairs, festivals, and
Owner investment - equipment
2,000 special events. This will be a part- time business that
operates on weekends and holidays.
Vehicle and/or equipment loan
Start up financing
5,000 Product Offering: Best Ice Cream provides packaged ice
Total start up costs:
$ 8,000 cream, chips, sodas, bottled water, pickles, and candy at
high traffic parks and special events in Dallas, Texas. Our
Plan Purpose:
Business advisors and main focus will be traditional ice cream treats like ice cream
debt funding sandwiches, popsicles, fruit bars, and packaged cones.
Market: The packaged ice cream market has been growing
steadily year over year. This is an industry with a history of consistent growth that is projected to continue
in the future. Best Ice Cream’s target markets are middle to upper-middle class families that attend fairs,
special events and high-traffic parks in Dallas, Texas.
Competition: Local direct competitors include Gypsy Scoops, Short-n-Sweet Ice Cream, and Coolhaus to
name a few. These companies all have a social media presence and are found at the special events and
festivals that we target. The barriers to entry are medium; to begin operations a modest capital outlay is
required. To be successful, networking and social media skills are essential.
Differentiation: At Best Ice Cream we differentiate ourselves from the competition through our use of
technology, our simple approach to ice cream, and our service. We will make use of Square Register to
drive our analytics and customer loyalty strategy. We will offer simple, traditional ice cream that our
competitors do not offer. We will make a point to provide quick and friendly service.
Marketing Strategy: Our ice cream novelties will be sold at an average price of $3. Best Ice Cream will be
located in and serve Dallas, Texas. To reach our target market, we will heavily use Social Media and the
web. We will develop pages on Twitter, LinkedIn, Facebook, Google+, and Yelp, as well as our own
Webpage.
Revenue Model and Financial Projections:
Ice Cream Novelties
Per Unit Dollars
Sales price
Non-owner labor cost
Other variable costs
Fin. stmt. gross profit
Owner labor value
Pro forma gross profit
Year 1 total units sold
$
$
3.00 100%
(0.60)
2.40
80%
2.40
80%
8,407
Year one summary income statement:
Sales:
$ 41,000
100%
COGS
9,000
22%
Gross profit
32,000
78%
Overhead
17,500
43%
Pretax income
14,500
35%
Tax expense
3,600
9%
Owner withdrawals
7,000
17%
Net income
$
3,800
9%
Sherif O Alghali
Best Ice Cream
Drinks
$
$
2.00 100%
(0.55)
1.45
73%
1.45
73%
6,556
Pickles
$
$
2.00 100%
(0.30)
1.70
85%
1.70
85%
1,378
LEADERSHIP
As the owner of Best Ice Cream, Sherif will be in charge of servicing customers, sales, lead
generation and forging partnerships with event organizers and park managers.
Sherif has over five years of customer service experience. He also spent four years running
his own computer services business. In addition, Sherif has spent time working with Steve
Akinbinu of Good Time Ice Cream, learning the business of selling ice cream. Sherif has also
had extensive business training. He is a graduate of the PEP entrepreneurship program,
which consisted of over five months of business training in which he developed and
eventually pitched a business concept to over two hundred executives. This combined with
his skills in public speaking, sales, and management make him imminently capable of making
Best Ice Cream a successful venture.
In addition, Sherif brings more than 12 years of experience in the information technology
industry, with nearly four years supporting restaurant and retail point of sale systems. He
worked for Luby’s Inc. at their corporate office as a help desk specialist, where he worked
remotely and on-site supporting hardware, operating systems and networks. He currently
works for Rogers-O’Brien Construction as a help desk specialist, supporting over 200 users
in multiple sites throughout Texas. This background in IT will help him in executing Best Ice
Cream’s technology and Social Media strategy
Sherif is currently a student at Western Governor’s University working towards a Bachelor’s
degree in Information Technology. Sherif also has earned several industry certifications from
Microsoft, Cisco, and Comptia.
Sherif is a member of the DFW World Affairs Council.
PRODUCT OFFERING
Best Ice Cream provides packaged ice cream, chips, sodas, bottled water, pickles, and candy
at high traffic parks and special events in Dallas, Texas. Our main focus will be traditional ice
cream treats like ice cream sandwiches, popsicles, fruit bars, and packaged cones.
Our main products will be ice cream novelties, drinks and pickles. These three product
groups will make up 61%, 32% and 7%, respectively of our annual revenues. Our first priority
when we begin operations in July 2013 will be to build relationships with park managers and
special event planners.
MARKET
The packaged ice cream market has been growing steadily year over year. This is an
industry with a history of consistent growth that is projected to continue in the future. Best Ice
Cream’s target markets are middle to upper-middle class families that attend fairs, special
events and high-traffic parks in Dallas, Texas. We believe that these families are not properly
served and present on opportunity for us. This will be a part-time venture. We will operate on
Sherif O Alghali
2
Best Ice Cream
weekends and holidays. This is a seasonal business. While there are some opportunities for
us during the winter, late-fall and early-spring, sales during these time are limited. Our
greatest opportunities will be in the late-spring, summer and early-fall.
COMPETITION
There is a great deal of competition in the packaged ice cream industry. There is a lot of
indirect competition in the form of ice cream parlors and shops, convenience and drug stores,
and traditional ice cream trucks. Nationally our largest competitors are ice cream parlors,
Baskin-Robbins and Ben and Jerry’s; convenience and drug stores like, Walgreens, CVS,
and 7 Eleven. Locally we will compete indirectly with Braum’s and Dairy Queen. The
traditional ice cream trucks and carts are too numerous to count. We consider them indirect
competitors because they mostly roam neighborhoods and are not found at the festivals and
special events that we will target. Local direct competitors include Gypsy Scoops, Short-nSweet Ice Cream, and Coolhaus to name a few. These companies all have a social media
presence and are found at the special events and festivals that we target. The barriers to
entry are medium; to begin operations a modest capital outlay is required. To be successful,
networking and social media skills are essential.
DIFFERENTIATION
At Best Ice Cream we differentiate ourselves from the competition through our use of
technology, our simple approach to ice cream, and our service. Many in our industry accept
only cash and do not track inventory in a meaningful way. We intend to use Square Register
to handle credit card transactions and inventory, which will give us access to analytics. This
will allow us to determine which products sell best at which locations, and what our turnover
time is for our inventory. Thereby, we will be able to operate much more efficiently and
profitably than the competition. We will also make use of Social Media to spread the word
about our business and post a schedule for our loyal customers. We also differentiate
ourselves by our simple approach to ice cream. Many of our direct competitors sell
specialized products, like custom-built ice cream sandwiches. We offer traditional packaged
ice cream at an affordable price for those who prefer something familiar. This is something
that is not found at most events in Dallas. Finally, we differ from our competition in our
commitment to service. We will offer friendly, hassle-free service. While this seems like a
given in any business, it is not standard in our industry. We will commit to a set of best
practices when serving customers. This will allow us to standout from our competitors.
MARKETING STRATEGY
Price
Best Ice Cream offers its products at three different price points our ice cream novelties will
be sold at an average price of $3. Our sodas will be sold at an average price of $2. Pickles
will be sold at an average price of $1.
Sherif O Alghali
Best Ice Cream
Place
Best Ice Cream is located in North Dallas, but will serve all of Dallas. There are numerous
high-traffic parks, festivals, and special events in Dallas that present a great opportunity for
us.
Promotion
To reach our target market, we will heavily use Social Media and the web. We will develop
pages on Twitter, LinkedIn, Facebook, Google+, and Yelp, as well as our own Webpage. The
owner will also use his extensive personal network and web presence to get out the word
about the business. Additionally, we will use Square Register to implement a rewards
program to develop a loyal customer base. We will wear a uniform of Khaki pants or shorts
with a polo shirt bearing our name and logo. Our truck will also have our name and logo as
well as our Web address. The most important promotional work we will do will be to network
and develop relationships with event organizers, planners and park managers. We will pass
out business cards and fliers at small business events in Dallas, such as those sponsored by
the Dallas Small Business Development Center, Minority Business Council and Dallas
Chamber of Commerce. We will also join the previously mentioned organizations and others
like the DFW World Affairs Council and Dallas Public Radio to increase our networking
opportunities.
VISION AND OBJECTIVES
Two Months Before Starting
Research/Advisory
 Finalize business plan
 Further research startup costs
 Recruit advisory team including an accountant, bookkeeper and lawyer
Marketing
 Create marketing strategy
 Develop plan to assess marketing effectiveness
 Write 100 objectives and responses
 Register with Chamber of Commerce and Minority Business Council
Compliance
 Get Texas Sales Tax ID
 Organize business as RFL Investment Corporation
 Obtain DBA for Best Ice Cream
 Open a business checking account
Other
 Obtain a phone
 Acquire appropriate insurance
 Buy needed tools
Sherif O Alghali
Best Ice Cream

Secure legal counsel
First Two Months After Starting
 Assess marketing strategy effectiveness
 Generate publicity by talking to civic groups about entrepreneurship
 Participate in community events to increase networking opportunities
First Year
 Make a sales goal of $41,000
 Develop job description for the salesperson position
 Create standard operating procedures for each position
 Hire first employee
 Work with a mentor from SCORE
 Update my business skills through the Dallas Small Business Assistance Center
 Expand marketing
 Expand Equipment
 Be profitable in the first year
Second Year
 Expand to cover events in Richardson
 Update business plan
 Update sales goal
 Expand service offered
Third Year
 Further standardize practices
 Expand geographic area
 Research franchising
 Update sales goal
Fourth Year
 Sell the business
Philanthropy
At Best Ice Cream we believe that making a positive impact on the world as a whole is a
central part of our mission. As such we will focus our philanthropic efforts on donating 5% of
profits to organizations that provide vocational training to young people. We believe this helps
them to find better jobs, thereby empowering them to become productive citizens.
Community Impact
In the communities in which we operate we intend to pursue our philanthropic efforts as well
as sponsoring events for community non-profits and organizations. Through these services
we believe that we can assist these groups in better serving our community, which in turn will
enable the community in which we serve to flourish.
Sherif O Alghali
Best Ice Cream
FINANCIAL SUMMARY
Best Ice Cream’s revenue model1 is based on selling the following three products:

Ice cream novelties at an average price of $3. This service has a material cost of $.60,
producing a gross profit of $2.40 for each product sold. Materials include wholesale ice
cream. We project selling 8,407 of these in the first year for revenues of $25,200.

Drinks at an average price of $2. This product has a material cost of $.55, producing a
gross profit of $1.45 for each product sold. Materials include wholesale drinks. We project
selling 6,556 of these in the first year for revenues of $13,100.

Pickles at an average price of $2. This product has a material cost of $.30, producing a
gross profit of $1.70 for each service sold. Materials include wholesale pickles. We project
selling 1,378 of these in the first year for revenues of $2,800.
This will generate more than $41,100 in first-year revenues with a net profit of more than
$3,900. This is a 9% net margin after deducting $10,600 in total owner compensation ($7,000
cash withdrawals and $3,600 income taxes).
Best Ice Cream will have a positive cash flow in the second month of operations.
FINANCING STRATEGY
Best Ice Cream will start in July 2013. Total start-up funding is $8,000. This amount will cover
all equipment, beginning cash balance and other start-up costs.
Sherif will save $1,000. He also currently owns a truck valued at $2,000, which he will use to
start the business. The combined $3,000 will be Sherif’s initial capital contribution.
The company will have an additional $5,000 in debt financing that will be repaid in 24 months
at 18%
1
The revenue model in the Executive Summary includes money paid for non-owner labor plus the economic
value of the owner’s labor (not necessarily cash paid). Initially, the business will be unincorporated and, as such,
receives no tax deduction for money paid to the owner. A deduction for owner’s labor is included in the
Executive Summary so the reader can assess the pro forma gross profit of the products and/or services.
Estimating this pro forma gross profit requires the PEP participant to value his time in calculating a realistic
sales price for his company’s services. The attached financial projections differ in that non-owner labor is
included in cost of goods sold, and money withdrawn by the owner is shown as owner withdrawals after
calculating the business’s tax expense but before net income.
Sherif O Alghali
Best Ice Cream