This business plan seeks to show how a total investment of $ 101,500 can yield cumulative net profits above $600,000 over four years, with an average monthly sales of $72,000. Now, this will be achieved while maintaining liquidity. This business plan aims to secure additional funds from an investor and request a loan from a bank as startup costs.

Company X is a friends-run startup food company specialized in making quality pizzas to the residents of town Y. This production is done in a manner that ensures fair and equitable returns for the present and future owners. It is also considerate of providing superior value to our customers, allowing them to eat pizza while in the company hotel or take away. Company X is specialized in producing and selling delicious pizzas.

Town Y has seen explosive growth in population over the past four years, with an approximate population of 1.5 million. The area has witnessed a rise in business activities, deeming to maximize the large population. My two friends and I are opening company X, which will produce and sell pizzas in town Y.

Currently, the only nearest pizza restaurant in town Y is two kilometers away from our planned location within the town. Company X will produce high-quality pizzas and sell them to customers at a fair price. We will also make timely deliveries to the doorstep as a response to customer orders.

1.1 Mission and Vision

1.1.1 Mission

Company X’s mission is to offer town Y’s residents with the best pizza service in the area. We are committed to ensuring that our pizza service is of quality and value that meets customers’ expectations. Through its strategy, staff, and systems, Company X will provide customers with seamless three-part customer experience, that is, service environment, service product, and service delivery. We believe that all these parts will exceed customers’ expectations.

1.1.2 Vision

To become a first-class pizza source in town X and build an excellent reputation for customers, shareholders, and the community at large. Our success will be highly dependent on our values as they define who was as company X, and this differentiates us from our competitors. These values are;

Teamwork: Company X is composed of teams that act and committed to each other, working with a high degree of loyalty and trust.
Performance excellence: We work for the best to meet and exceed customers’ expectations. We act responsibly as the owners of Company X.
Integrity: We are guided by respect and dignity when dealing with our stakeholders and customers, and the community. Our business conduct is guided by ethical behavior, honesty, and integrity.

1.2 Keys to Success

Company X’s keys to success are:

Quality pizzas and services that build and maintain customers’ loyalty.
A strategic location where our company is easily accessible.
Potential management skills to run the company successfully.
Commitment to continuous advancement to total quality products and services.

Highlights

2024

2023

2022

2021

2020

1.3 Objectives

The following are our objectives:

To serve a minimum of 150 customers daily in the first year of business operations.
To offer quality pizzas and services at a fair price and exemplary customer experience with as little as 1% customer complaints and a 5% growth in sales per year.
To ensure positive cash flow and at least 10% net profits to sales.

2.0 Company Summary

Company X is a new pizza point started in town Y where customers can order, or take-out pizza in the company. This company is owned by my two friends and I. I have six years of experience in the hospitality industry, while one of my two friends have eight years of experience as a cook. The other friend has six years of experience in hotel management. The merger up was informed by a plan we had while in college. We had decided to start our own company after some years of graduating from college.

Our focus is to produce quality pizzas that exceed customer’s expectations. Pizzas can be served or bought from the company and also delivered to customers after they order. Company X will serve the 12-mile area with over 700,000 people and a rapidly growing population. Company X is strategically located, ensuring easy visibility and accessibility by the customers. As a result, the rental cost in this place is higher than in other areas within town Y.

Arguably, company X’s prices will not beat the competition, and we are alert that we cannot compete on prices alone. Now, as a result, we have decided to focus on customers’ expectations to ensure we meet and exceed them. Through this, we will maintain and increase customer satisfaction for the future growth of the company.

Our pizza delivery process will be achieved through three existing online catering services where we will be supplying the online services and additionally, we will design our online delivery service where customer will be able to order pizzas. Through online marketing, we will be able to interact with our customers and listen to their views and needs. Customers will be able to order for pizza at their comfort in their homes. This strategy will expose our customers to internet and this will increase efficiency and effectiveness of our marketing as customers will save their traveling costs. The company will acquire three motor bikes for doing the deliveries.

3.0 Organization

3.1 Company Ownership

Company X will be owned privately owned by my two friends and I although we will invite an investor to participate in the company’s capital. At its initial operation, company X will issue 10,150 shares of $100 par value common stock. Each person in the ownership of the company will receive 2600 shares of $100 par value or simply, each will own 26% of the company. Our total contributed capital will be $78,000. An investor would receive 22% of the ownership after investing $22000 in the company. The new investor will be invited to discuss about interest, entry and exist strategies. Further, the quality and quantity of the stock to be issued will be discussed prior to the incorporation.

3.2 Location and Facilities

Company X’s location is very favorable, enhancing clear visibility of the company and easy access by our customers. As a result, the rent cost in this place is higher than in other areas of town Y. Company X is located just few miles from the downtown which offers dining, shopping and entertainment services. Our company is located adjacent to G and sons shopping mall which receives a lot of customers in a day.

Furthermore, the location offers other advantages that include:

Ample parking and additional storage structures
Good centrality facilitating accessibility to major destinations, transport linkages and freeways.
High pedestrian traffic
Newly opened commercial complex near our company that will draw more people to our immediate vicinity.
Proximity to other more than 450 businesses
Nearness to other restaurants and recreational facilities

The above attributes of the location are consisted with company X’s goal of providing quality pizzas and delivery services to the residents of town Y. The location will require high rents as compared to other areas due to its high business profile and thus the estimated monthly rent expense is $2,000.

3.3 SWOT Analysis

Our SWOT analysis is an opportunity to assess our internal strengths and weaknesses as company X. It will allow us to focus on the external opportunities offered by our business environment and the potential threats.

3.3.1 Strengths

The following are our strengths as company X.

Central location facilitating easy visibility and accessibility
Variety of toppings and flexibility of them rarely offered by other pizza companies in town Y
Competence of the three main owners of the company
Adequate equipment and technology
Familiarity with pizza customers and customer’s needs in general informed by former employments

3.1.2 Weaknesses

Our weaknesses include;

We are new in the town and we have little experience in starting and running a business
Startup challenges such as assembling all the necessary components of the company
Cost factor of maintaining the equipment and technology

3.1.3 Opportunities

Rapidly growing population in town Y
No near specialized pizza restaurant within our location.
Over 400 well established businesses within our location which will bring customers close to us.
No competitor who offers a wide range of pizza toppings like us

3.1.4 Threats

The following are some of the threats we face as company X.

Leased commercial properties
Higher rent rates

4.0 Products and Services

Company X will offer pizzas as well as sauces, juices and sodas. According to Wikipedia.com, pizza making started in Italy and it consists of a round, flattened base made of leavened wheat-base dough. The top of it is usually tomatoes, various ingredients such as meat, anchovies, and cheese.

The selling of pizza will be by cutting it into pieces or sell it as whole. The diameter of the pizza is about 18 inches and selling in pieces, one pizza may give 8 slices. To exceed customers’ expectations, we will be offering different toppings. Our pizza will be served with condiments like chili, garlic powder, cheese and others according to the customer’s preference and taste. Our menu will include other products such as sodas and juices.

Our pizzas will be served at the company or delivered to customers through orders. Customers will be able to make direct calls, order online or visit our company for pizzas. Or deliveries, we will be packing our pizzas well to ensure that the customer can eat it while fresh. According to the customer’s preference, we will refrigerate pizzas and also serve them hot.

4.1 Future Products and Services Opportunities

After some years of operation as a pizza specialized company, company X will have an opportunity to include other dishes in its menu. This will be after building customer trust and expanding our reputation. We will incorporate entertainment services in our company where people will be able to entertain themselves as they enjoy our services and products.

5.0 Definition of the Market

5.1 Market Analysis Summary

Town Y is a rapidly growing area with a population size of approximately 1.5 million residents. This population is composed of mostly middle-class residents. The town has more than 400 well established businesses close to our company. In average, the income of the area is about $45,000. Some traditionally well-established catering industries have proven the potential for the growth of company X. The ever increasing population of the town is a great advantage to our company as the customer base is also increase with increase in the population. We anticipate 90% of our customers to be individuals (retail customers) and 9% to be other already established traditional catering industries (corporate customers). The remaining 1% include other buyers of our pizza.

4.4 Market Segmentation

Our customers will include retail customers and corporate customers. 90% of our customers are anticipated to be individuals (retail customers) and 9% will be already established local businesses (corporate customers). 1% will be other buyers of our pizza.

5.2 Competitive Comparison

The closest specialized pizza restaurant is a mile away from our location. Company X will offer quality pizza with a variety of toppings at a fair price and according to customer preferences (hot or refrigerated). Within our locality, the exist other four fast-food companies which include pizza in their menu although not specialized. These are our competitors although they their pizza will not match our quality. Their low prices pose a stiff competition to us although their pizza of low quality.

Our main competitors are the specialized restaurants which offer pizza in town Y although they are not near our location. They include Pizza Deli, Yummy Pizza, DonaldsTech Foods. The following table presents our comparison with these competitors.

Competitor

We have, they don’t

They have, we don’t

Pizza Deli

High quality specialized products and services, improved equipment

Lower priced pizza, other food items in the menu.

Yummy Pizza

Central location, quality pizza, fast deliveries

Lower priced pizza, delivery vehicles

DonaldsTech Foods

Competent staff, fair prices

Luxury business, classic customers, customized environment with attractive lighting and entertainment

6.0 Marketing Strategy

Our marketing strategy bases on developing a corporate identity that explains our company in a way that is beneficial to our customers. We understand that our customers’ needs are service, price and delivery. Company X is aware of these customers’ needs and we are willing to set fair prices to meet customers’ needs. According to our previous experience, advertising costs can financially overwhelm a newly started business. With this knowledge, we are willing to keep our marketing as simple as possible to see effective use of marketing funds.

The following techniques will be part of our marketing strategy:

Local radio advertisements
Social networking: we will utilize social media and websites to market our products. Some of the social media platforms we will be using include; YouTube, twitter, Facebook and Instagram. We will launch a company’s website where we will be marketing our products.
Local business events and exhibitions
Grand opening event

Our marketing strategies will be well evaluated to ensure that the costs of each technique does not overwhelm the company’s financial status.

Start-up Business Plan

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1.0 Executive Summary