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Jods Cake-A-Roons
Business Plan
Cake Pops and Macarons

1.
1.1

OPPORTUNITYRECOGNITION&BUSINESSSTRUCTURE
BusinessOpportunity

JodsCakeaRoonsprovidesadeliciousproductthatisperfectforpeoplewhohavea
sweettooth.CakepopsandMacaronsareeasilyenjoyableandareverypopular
desserts.Thisproductwillprovideamessyfreewaytoeatdeliciousdessertsinasmall
formsothataconsumercanenjoynotonlyatastydessertbutalsoadecorativefun
waytolightupanormalday.
Manypeoplehaveanissuewitheatingcakeinacleanway.Duringbirthdayparties
customersalwaysorderahugecakewhichnormallyturnsintoleftoversbecauseno
onecaneverfinishtheentirecake/dessert.Daybydaycakeisbeingwastedbecause
peopleordertoomuch.Whatiftherewasawaytopreventthat?CakeARoonsishere
tosavetheday!CakeARoonsprovideeasy,hasslefreeandperfectbitesizepiecesof
cakecombinedtogetherwiththeperfectFrenchMacaron.
1.2

TypeofBusiness

Havingamanufacturing/retailingbusinessnotonlyallowsyoutocontrolhowyour
productturnsout,butalsoletsyourunyourbusinessinauniquewayandonyourown.
1.3
TypeofBusinessOwnership
JodsCakeARoonsbusinesswillbeasoleproprietorshipwhichistheperfectwayto
runadessertbusinesssothattheycaneasilybemadewithnodistractionsormishaps.
.
Makingcakepopsandmacaronscanbetoughandifyouhavesomanypeople
scramblingaroundyou,itcouldmessupthewholesituation.Workingindependently
canbeanadvantageduetoorganization.

1.4
MissionStatement

JodsCakeARoonsiscommunitybasedcompanythatprovidesdeliciousdessertsto
perfectlysatisfycravings.CakeARoonsaremadewithtopnotchingredientstoensure
aclean,healthydessert.

1.5
Social

Responsibility

JodsCakeARoonswilldonatemoneytodifferentcharitiesdependingonthedifferent
flavorsandcolorsofaCakepoporMacaron.Forexample,agreencakepopcouldbe
donatingtowardsanaturaldisastercharityandapinkMacaronwouldbedonating
towardsaBreastCancerAwarenesscharity.Therewillbeatleast5colorsrepresenting
adifferentcharity.
1.6
Qualifications
Jodiehasgreatexperienceinbeingaleader,frombeingpresidentofherclassin
elementaryandclasspresidentofherninthgradeclass.Inadditionsheiscurrentlythe
secretaryoftheassociationofDECA.

JodsCakeARoonsiscurrentlynotlookingforateam,butifshewasshewouldwant
heremployeestohavegreatleadership,organization,andeducationalskills.

2.
MARKETRESEARCH
2.1
MarketResearch

JodsCakeaRoonsbelongstotheFoodServiceindustry.(BakeriesandTortilla
Manufacturing)

Thesizeoftheindustryis45,261,656
Theoverallsizeofmytargetmarketisapproximately9,731,068.Imspecifically
th th
targeting9
12gradeconsumers.

ThedatathatIfoundwasthatthenetincomeoffoodmanufacturingis1,830,649.The
percentofreturnsandreceiptswas0.07%and0.18%.

2.2
TargetMarket

Demographics:
Ifoundthatcakepopsandmacaronsarepopularduringthemonths
thathavespecialcelebrationsandevents.Theyarestillprettypopularonadailybases
becausedessertisapopularfood.


Geographics:
ThecustomersthatImsellingtoliveinSanLeandro,Californiaandalsothroughoutthe
BayArea.

Psychographics:
Customerswanteasy,hasslefree,deliciousandhealthydesserts.

ConsumersintheBayAreabuysweetsanddessertstwotimesaweek.Consumers
rangefromteachersstudentsatschoolandeveryoneoutsideofschool.

2.3
Competitors

ThereiscurrentlyonlyonedirectcompetitorinSanLeandrothatsellsMacarons,which
iscalled,HanasSweetCourse.Thereare2bakeriesinSanLeandrothatsellCake
pops.StarbucksbeingoneofthemostcompetitiveonesandHanasSweetCourse
beingtheother.

Localbakeriessellhealthy,delicious,bakedgoodswithpopularserviceandgood
prices.

2.4

CompetitiveAdvantage

Factor1:
Goodprices

Factor2:
Location

JodsCakeaRoons CompetitorA
Starbucks

Affordable.Offers
Notveryaffordable,
cakepopsforjust
especiallywith
$1.50`
macarons.
Macaronsforonly
$2.00
Sellsthroughout
Onlysellsattheir
BayAreabutalso
store
availableforonline
orders.

CompetitorB
LaBoulange

Lowpricesbutalso
notgoodquality.

Locatingonthe
othersideofthe
BayArea,itcanbe
ahassletoget
there.

Factor3:
UniqueFlavors

Goodflavors,
productismade
withcare

Goodsarentmade Donthavemany
withcare,justmade flavorstochoose
toorder
from

JodsCakeaRoonsoffersgoodquality,goodflavors,andfriendlyservice.

2.5
BusinessGrowth

Trendsinmyindustrywouldprovideadditionalopportunitiesforgrowthinmybusiness.

Jodswillprovideextraadvertisementhaveaveryeyeopeningwebsite,andgood
customerservice.Advertisingandaneyeopeningwebsitewillcreateabetteroutlook
forthecustomerstosee.

2.6
Challenges

Trendsthatcouldprovidepotentialchallengeswouldbehavinglotsofcustomersand
notbeingabletoprovideservicefatenoughtofulfillthewantsandneedsofcustomers.

Barrierswouldbeformetocontinuetakingbusinessclassestohelpadvancemyskills
formybusiness.

3.
FINANCIALINFORMATION&OPERATIONS
3.1
DefinitionofOneUnit

Oneunitofsaleisonecakepop.Acakepopisaroundpieceofcakeshapedintoaball
andcoveredinchocolatecandymelts.Astickisthenputintothebottomofthecake
andtransformedintoacakepop.

3.2
ProductionProcess

DescriptionofProcessSteps
1. FirstthecustomerwillmakeanorderviaInstagram,Facebook,Weeblywebsite,
orinperson.

2. Theorderwillbebakedtoperfection

3.
4.
5.
6.

3.3

Theorderwillbewrappedbeautifullyinsmallplasticbaggies.
Thepackagingwillbenicelywrappedwithdecoration.
Theorderwillthenbedeliveredtothecustomerinperson.
Thecustomerwillpay$1.50.

VariableExpenses
Materials
MaterialDescription

$24.96
$26.08
$7.00
$15.99
$2.99
$15.99
$3.61
$9.10
$8.99
$1.11

Bulk
Quantity
6boxes
2dozen
2Bottles

Costper
Unit
$0.40
$0.04
$0.0010
$0.00036
$0.0199
$0.0003
$0.00361
$0.0057
$0.0031

BulkPrice

CakeMix
Eggs
VegetableOil
Sticks
ClearBags
CakePopSticks
TwistTies
Sprinkles
Frosting
TotalMaterialCostsperUnit

Quantity
perUnit
1
18
1
100
100
100
100
1
2

1000pieces

200pieces
600pieces
1000pieces

1box
3pack

Labor

CostofLaborperHour

$10.00

Time(in
hrs)to
makeone
unit
2hours

Total
Labor
Costs
perUnit
$0.20

EOU

MaterialCosts
$1.11

3.4

EconomicsofOneUnit

Labor
Costs
$0.20

TOTAL
EOU
$1.31


SellingPriceperUnit

$1.50
VariableExpensesperUnit

CostsofGoodsSold

Materials
$0.11

Labor
$0.20

TotalCostofGoodsSold

$0.13

OtherVariableExpenses

Commission
$0.00

Packaging
$0.02351

Other

TotalOtherVariableExpenses

$0.00

TotalVariableExpenses

$0.26
ContributionMarginperUnit

$2.22

3.5
FixedExpensesfor
OneMonth

ExpenseType
Monthly
Explanation
Cost
Insurance
$0.00
Notneeded.
Salary
$0.00
NotNeeded
Advertising
$51.50
Iwillhave30flyersmadeeveryothermonth
whichwillcost$7.50.
Iwillhave40businesscardsavailablewhichwill
cost$10.00because10piecesare$2.50each.
Iwilluse2hoursofuseageforsocialmediafor
mybusinesswhichis$4.48perhourwhichwill
be$8.96foratotalof2hours.Whenaddingitall
togetheryoupay$34.00permonth.

Interest
$0.00
Notneeded.

Depreciation
0.00
DepreciationisnotneededbecauseIwillnotbe
hiringanyone.
Utilities
$5.00
Ovenuseage,electricmixer

Rent
$36.00
Sharedbedroom,ofmyhalf

OtherFixed
$0.00
Notneeded.
Expenses
TotalFixed
$74.96

Expenses

3.6

IncomeStatementfor
FirstYear
ofOperations
$1.50

15,190

REVENUE
Gross Sales
Sales Returns
Net Sales
VARIABLE EXPENSES
Costs of Goods Sold
Materials
Labor
Total Cost of Goods Sold
Other Variable Expenses
Commission
Packaging
Other
Total Other Variable Expenses
Total Variable Expenses

CONTRIBUTION MARGIN

$22,785.00-$19,907.30

A
B
C
D

E
F
G
H
I
J
K

N
O
P
Q
R
S
T
U
V

FIXED OPERATING EXPENSES

Insurance
Salaries
Advertising
Interest
Depreciation
Utilities
Rent
Other fixed expenses
Total Expenses

PRE-TAX PROFIT
X
Taxes (15%)

NET PROFIT

$1.50

15,190
$1.50
x
0

$22,785.00
$22,785.00
$0.00
$22,785.00

$22,785.00x$0.00

$1.11s

15,190
$0.20
15,190

$16,860.90
$3,038
$19.898.90

$16,860.90x$3,038
$0.00

15,190

$0.02351

15,190
$0.00

15,190

$0.00
$8.40
0.00
$8.40

$0.00+$8.40+$0.00

$19,907.30

$19,898.90+8.40

$0.00

12 months

$360/mo

12 months

$51.50/mo

12 months
$0.00/mo

12 months
$0.00

12 months

$5.00/mo

12 months

$36.00/mo

12 months

$0.00/mor

12 months
$0.00
+
$4,320
+
$618.00
+
$0.00
+
$0.00
+
$60.00
+
$432.00
+
$0.00
$2,877.70-$5,430
$-2,552.30
0.15
$-2,552.30

$-382.845

$2,877.70

$0.00
$4,320
$618.00
$0.00
$0.00
$60.00
$432.00
$0.00
$5,430

$-2,552.30
$-382.845
$2,935.145

3.7

StartupInvestment
Item
CakeMix
Eggs

VegetableOil

WhyNeeded
Tomakethebatter
Eggsareneededtoput
inthebatter
Tomakebattermoist

Vendor
Target
Costco

Cost
$24.96
$7.49

Costco

$3.50

Tomakebakedcake
moist
Tocovercakepops
withhardchocolate
shell
Toholdthecakepop
Todecoratecakepops

Target/EBay

$8.99

Amazon/EBay

$19.24

Michaels
Amazon/EBay

$2.99
$9.10

EBay
Michaels

$3.61
$15.99

Frosting

CandyMelts

ClearBags
Sprinkles
Twistties
Cakepopsticks

Toclosetheclearbag
Toinsertintothestick
tobeheld
TotalStartup
$95.87
Expenditures
EmergencyFund
(1/2of
$49.93
startupexpenditures)
ReserveforFixed
$287.61
Expenses
(covers3
monthsoffixedexpenses)

TotalStartup
Investment

$433.41

Howmuchofthisstartupinvestmentcanyouaffordtopayyourself?______$73.00
whichis50%ofthestartup_______

Howmuchofthestartupinvestmentwillyouneedtofinance?(TotalStartup
InvestmentWhatyoucanaffordtopay)_______$136.44_______

3.8
FinancialRatios

ReturnonSales(ROS):

AnnualNetProfit
$
2,935.14

18.83%
$0.18
=

TotalAnnualSales

$15,585.00

Foreverydollarinsales,mycompanymakes$0.18profit.

ReturnonInvestment(ROI):

AnnualNetProfit
$2,935.14

677.2%
$6.77
=

TotalStartup

$433.41

Investment

Foreverydollarinvested,mycompanywillmakebeabletogive____

BreakevenUnits(Monthly)
:

FixedMonthly
$74.96

33.80
34units
Expenses
=

ContributionMargin

$2.22

Everymonthmycompanyhastosell____numberofunitstopaymyfixedcosts.

4.
MARKETING&SALES
4.1
MarketingPlan

MytargetcustomersaremainlyteenagersfromSanLeandroHighSchoolwhichis
whereIwillbesellingmyproductsmostofthetime.Peoplewillhelpmarketmy

businessbyspreadinghowgoodtheythinkmyproduct.Peoplewillalsoadvertisemy
product.

Thefeaturesandbenefitsofmyproductsisthattheyaremadedeliciouslyandcarefully.
JodsCakeARoonsalsooffersfastdeliverywithgoodqualitydesserts.

IwillbesellingmyproductsintheBayArea,butmostlySanLeandro.Mostofmy
customerswillbefromSanLeandroHighSchool.

ThestrategiesIwillusefordeterminingprocesswillbetodoresearchandpayattention
tohowmuchmydirectcompetitorsaresellingtheirproducts.

4.2
Promotion

AsapartofmypromotionalstrategiesIwillusesocialmediaasabigpartofmy
advertisingbecauseitsthemosteffectiveandaffordablewaytopromotemyproduct.

ThevisualmerchandisingthatIwillprovidewillbetogiveoutfreesamplesoncea
monthandgiveoutspecialoffersandcouponsonmysocialmediasitesthatare
specificallyjustforJodsCakeaRoons.Givingoutfreesamplesandcouponswillgive
thecustomerafeelofhowthecustomerserviceisandhowwelltheproducthasbeen
made.

ThepublicityandpublicrelationsthatIwillincludewillbeincentivessuchasrafflesor
contestssothatthecustomerswillnotonlyhaveareasontocomebacktobuymore
productsbutalsobeabletoseethenewproductsthatarebeingdevelopedand
purchasemoreproducts.
Iwillusetradepromotionbyjoiningtogetherwithanotherbusinesstocreatetwoforone
dealsgivingtheotherbusinessprofitalso.Byjoiningtogetherwithanotherbusinessto
havecooperativeadvertisingwearecreatingmoreattentiontowardsourproducts.

4.3
SalesMethods

Myoverallpersonalsellingstrategytogetsalesfrommytargetmarketwilltobetoput
moreemphasisonadvertisingsothatIcanreallygetmyproductouttheresothat
consumerswillbeinterestedinpurchasingit.

4.4
SalesEstimates

ThemaximumamountsofunitsIcouldphysicallymake/deliverwouldbe1200units.
ThiswillbepossiblebecauseIwillbeselling100cakepopseveryotherday,and
Macaronswillbeaseasonaloffer.

Iwouldneedtosellatleast100unitseachmonthtocoverfixedexpenses.

BasedonthenumberofcustomersinmytargetmarketIwouldbeabletosell
9,731,068unitsifIsoldonetoeveryoneinmytargetmarket.

Saleswillbeaffectedduetopopularholidays.Onpopularholidayssaleswillbehigher
duetotheseasonaldesignsandgiftgivingthatpeopledo.

Month
Units
Revenue

January
890
$1335.00

February
1200
$1,800.00

March
1200
$1,800.00

April
900
$1,350.00
May

$1,800.00

June

1200

700

July

300

$450.00

$1,050.00

August

400

$600.00

September

1200

$1,800.00

October

1200

$1,800.00

November

1200

$1,800.00

December

1200

$1,800.00

AnnualTotal

15,190

$15,585.00