ENGAGING SASKATOON’S ONLINESAVVY RESIDENTS & THEIR TASTEBUDS
Business Plan Presentation
Stephen Leask § Arvind Kumar § Stephanie Hughes
WHAT IS
Source: http://www.jerrys.ca/artisanicecreams/icecreams.shtml
?
MOBILE FOOD SERVICES INDUSTRY
• 253 Businesses
• 79.2% Profitable
• Net Profit: 19.2% of Revenue
Sources: Answers Yahoo; 2006 Industry Canada Profile
SOCIAL MEDIA
• Facebook, You Tube, Twitter, Flickr
– 48% increase in use
– 49% Canadians use daily
– 61% turn to social media when researching
potential purchases
• “. . . it’s not just a registration system, it’s a
marketing channel.”
• Businesses exploiting 2-way channel
Sources: http://www.upi.com/Top_News/2009/04/06/So-called-social-media-soaring-inCanada/UPI-84441239050428/ ; cnet News Article
SOCIAL MEDIA MARKETING
• “Utilizes social networking and usergenerated content platforms to promote a
product”
• “Involves creating and participating in a
dialogue with the target audience, rather
than forcing an advertisement upon them”
• “Social networks can be extremely effective
channels for building product evangelism”
Sources: http://www.yoursearchadvisor.com/glossary.php
TARGET MARKET
• Ages 16 – 50
• Actively engaged in social media
Source: http://weblogs.hitwise.com/heather-dougherty/2009/01/twitter_catches_up_to_digg.html
Source: http://www.facebook.com/ads/create/
MARKETING MIX
• $3.75 / serving
• Mobile by name, mobile by nature
– High traffic areas
– Major events
– Social media channels
• Delectable treat uniquely distributed through
customer engagement
• Facebook, Twitter, Signage
NAME: GELATO
MOBILE
GELATO MOBILE WILL BE AT THE CENTRE MALL TODAY! FIRST 2
PEEPS TO FIND US AND SAY “GELATO” GET A FREE SCOOP!
Message
Nudge
OPERATIONS
• Location: Mobile by name, mobile by nature
• Average Business Cycle
• Supply Analysis
– Jerry’s Gelato
– Mr Cool Ice Cream Truck Rental
• Capital Budget
• Operational Expenses
OPERATIONS
(Expenses)
• Variable Overhead Costs
–
–
–
–
Maintenance for Truck
Fuel for Truck
Power for Cold Plates
TOTAL
$ 1,000
$ 3,511
$ 250
$4,761
• Fixed Overhead Costs
–
–
–
–
–
–
Rental of Truck
Insurance
Business License
Business Incorporation
Telephone/Internet
TOTAL
$ 3,250
$ 1,000
$ 100
$ 265
$ 450
$5,065
HUMAN RESOURCES
• Job Description
– Owners
– Coop Student (Supervisor)
– High School Student
• Scheduling
• Training
• Labour Costs: $12.50/hr Average
FINANCIALS
•
•
•
•
Startup Capital: $6,000 ($2,000/owner)
No Borrowing Required
Positive Net Income Year 1 of Operations
Income and NPV highly sensitive to sales
• Estimated Customers (2009): 844 hrs of Ops x
20 customers/hr = 16,880
• Revenue = 16,880 x $3.75 = $63,300
FINANCIALS
Year
2009
2010
2011
2012
2013
Sales Revenue
63,300
68,127
71,371
74,615
77,859
Cost of Goods Sold
25,257
25,888
26,535
27,199
27,879
Gross Margin
38,043
42,239
44,835
47,416
49,980
Total Expenses
29,279
29,739
35,382
36,266
37,977
Net Income Before
Taxes
8,765
12,499
9,454
11,150
12,003
Income Taxes
1,632
2,265
1,713
2,020
2,175
Net Income(Loss)
7,133
10,234
7,741
9,129
9,828
Net Present Value
(NPV)
IRR
30,612
N/A
FINANCIALS
Scenario Analysis
Scenario
NPV
Base Case
Worst Case
Best Case
IRR
Avg Annual Net Income
$30,612
N/A
$8,813
($35,889)
N/A
($6,990)
$91,668
N/A
$23,342
Worst
Change in Sales
Change in NPV
Best
-25%
25%
$66,501.00
$61,056
CONCLUSION
• Gelato Mobile is a unique and innovative
concept
• Based on financial projections, a small profit is
possible
• Sales is the key critical success variable
• Delivery and marketing of the concept is
crucial for success
Q&A