MBA ASSIGNMENT! PLEASE ANSWER THIS I REALLY NEED THIS! ITS ONE OF MY LAST ASSIGNMENTS! ALSO IF YOU USE YOUR OWN WORDS I WILL UPVOTE!!!

Reading (sorry but its 29 pages and I couldn't link a pdf) attached or below:

Directions:

Evaluate the business plan and identify 10 questions about their assumptions

and concept plus Include 5 KPIs, a risk inventory and ROI to investors.

PLEASE PLEASE PLEASE SOMEONE ANSWER THIS!

EXECUTIVE SUMMARY Salad stop is an independent operator in a small business offering salads, wraps, paninis, hot and cold beverages including organic smoothies, located in Burbank, California USA. A locally owned healthier alternative fast food outlet, Salad Stop is predicted to be a successful business, especially with it's creative approach to the company's image and detail presentation, such as the drive-thru layout. Salad Stop will provide a combination of gourmet salads at value pricing, with eco-friendly packaging, and a fun and entertaining atmosphere. Salad stop is the answer to an increasing demand for a more convenient organic lifestyle. In today's highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another. A few of our key success factors include the use of organic ingredients from local farmers; conducting activities in an environmentally friendly manner; provide transparency with the process of food preparation in front of our customers; a one of a kind eco-friendly drive thru; a promise to provide quality and freshness while constantly working on our responsibility towards the society and the environment and a constant service of goodness, freshness and smiles. Salad Stop plans to market itself through the means of local newspapers, magazines, coupons, discounts, specials, social media, health talks in local high schools and colleges and social ambassadors, network studios-caters and to show gratitude to our service men there will be police officer discount. The business is a friend starter, where three investors have each invested $25,000 and through loans and advances another $25,000 are invested by friends and family totalling 2 investment to $100,000. For the purpose of sharing ownership, we are each equal partners in this small business with each earning 25% of earning each and the remaining 25% is split into savings and repayments of loans and other advances. According to our estimates $75,000 will be enough to build our niche drive through salad bar. We might have extra expenses therefore we are working on getting loans from family and friends to set ourselves up for successes before we really start seeing profits from our revenues. The capital investment will be falling into categories such as renovating and altering a property, equipment, training of employees, and marketing. Our biggest expense that we are diligently monitoring is building our specific salad location. With the help of the company's financial projections, in the initial years of our commencement we do suffer losses, but moving further down in the financial year we end up with a surplus. Our highest costs are the cost of goods sold as we are completely organic, use locally grown ingredients and operate in an environmentally friendly way. Our highest sale earner is our delicious salads and in the future we hope to keep innovating our menu and make everything offered somebody's favorite. The future for Salad Stop is split into two possibilities of growth and exit strategies. A growth strategy we would most likely diverge in is diversification where Salad Stop will have an expanded menu in the future incorporating more food varieties offering different foods made organically, healthily prepared keeping the environment in mind. Exit strategies would include "The Modified Nike Maneuver: Just Take It" and as our last option, liquidate. Our main priority is to establish one outlet in Burbank, California, where the majority Bohemian mix demographic fits perfectly with our customer. These individuals are always on the go, 3 wanting fast healthy food, and at a good price. This plan is prepared to obtain a location for the initial launch of this concept. The financing, in addition to the capital contributions from investors, will allow Salad Stop to successfully open and expand through year two. The initial capital investment will allow Salad Stop to provide its customers with a value-driven, entertaining experience through the creativity of its founders. Salad Stop will entice youngsters to drive-thru with their friends and family with our innovative environment, easy convenience, and selection of unique signature salads. a. calculate economics of one unit for our org; b. short term and long term busi goals; c. our skills and resources that will help make our org successful and what skills do we need; MISSION, VISION AND CULTURE "Anyone can make you a fantastic salad, but to create a delicious, nutritious, affordable meal, it takes culinary expertise, farm-fresh ingredients, award-winning recipes, and unwavering commitment to quality." We promise you a superb salad, a delicious panini or wrap, and an excellent value. Join us for lunch or dinner and taste for yourself. But, that is only the beginning. We believe that a truly enjoyable dining experience requires fast, friendly service, and a warm, inviting environment. As a friend-owned company that cares our employees and the Burbank community, we hope our salad restaurant reflects these values. At Salad Stop, our goal to to make your life that much easier. Located in the Heart of Burbank, California, we aim to provide our customers with an out-of-this-world experience, with 4 a drive thru system that is futuristic, and practical for those who love their health and overall well-being. Imagine healthy and organic gourmet salads, at a great price, all made fresh in a timely manner. Every Farmer knows that nothing's better than just-picked produce. That's why we partner with local growers and food suppliers whenever The Health Hut is proud to support our local organic farmers. Whenever possible, we stock locally grown produce possible for all of our fresh produce. We hope you can taste the difference in every bite. COMPANY DESCRIPTION Industry Salad Stop is one of a kind specializing in the most organic, healthy and "green" salads. It is a fast food salad stop with quick service of the food ordered, and paid at counter, and this is why we come under the Fast Food and Quick Service industry. This industry consists of companies that operate as restaurants in which orders are made and paid for at a counter by customers. This industry consists of national and regional chains; franchises and independent operators. Salad Stop will be categorized as an independent operator as it is still a small business. In the US, this industry consists of more than 250,000 restaurant locations with combined annual revenue of $190 billion (Hoovers). Consumer tastes and preferences and their personal income drives this industry and the profitability of the companies within the fast food and quick service industries. Like every industry, large and small companies both exist here and they both have some benefits to their 5 name. Large companies have positives of purchase, finance and marketing while small companies must have superior quality food and services in order to compete and stay in the industry. Quick service restaurants usually have a food preparation area, a dining area, a parking lot, a drive thru and some even have a children's play area. These restaurants can be of any size depending on the seating and their equipment requirements. There are many aspects affecting this volume driven fast food and quick service industry, which we will discuss further. As mentioned earlier, this is a volume driven industry the speed of transactions that are occurred must be quick and done at great speed. Ways to speed up processes could include incorporating the fact that because restaurants within the industry usually specialize in their food offerings, it will have a limited menu that require fewer ingredients and therefore, reduce food assembling time and make it an easier process. Simplicity also leads to fewer errors and creates a smooth flow of operations. Lunch time is the busiest times for restaurants in this industry, therefore, there must be smooth, efficient, quick and of great quality in order to offer to its customers who want quality and quick to get food. SAYADO SAAD Technology is a very important factor affecting the fast food and quick service industry. Digital point of sales (POS) systems are used by restaurants within the industry. The POS 6 systems aid in communication between the front house and kitchen along with taking customer reservations and orders and help in coordinating seating arrangements along with other things. A new trend in this system is that they now come in mobile and tablet forms that supplement conventional touch screen monitor display. Another technological instrument used is the inventory management system. These help restaurant operators maintain supply at a steady rate and prevent foods from getting spoilt by decreasing waste. A trend that has been predicted is that restaurants use of customer friendly technology is going to rise along with increasing "consumer acceptance and the opportunity to reduce labor costs." (Hoovers). Recent growth is seen in the use of online ordering, apps, free Wi-Fi and other attractive schemes that are helpful enough to attract the niche customer market. Because we are a sustainable, green and environmentally friendly restaurant we will be incorporating energy efficient kitchen equipment and solar panels and more eco friendly technology in the future, once the business picks up so revenue, in order to reduce or maybe even eliminate costs and increase business and customer satisfactions. Salad Stop caters to all demographic groups and tries to promote organic salads for everyone to eat and enjoy. The ever increasing and growing trend of being a health conscious population and eating and living healthy and in a fresh and green environment will take over, and Salad Stop has already tapped on it and will work to grow in this aspect to incorporate the new changes it brings. Mass media is an important medium through which we can connect with our customers. Through the easy availability of the internet and other technology, we can build our website communicating our story, offering online ordering and maybe even in the future offer 7 catering services, and develop apps that are mobile friendly and available to our customers and everyone anywhere and everywhere. There are several trends predicted for the fast food and quick service industry and we will discuss them in further detail. The first trend seen is the growth in the fast casual dining. This is where quick service restaurants (Chipotle, Panera Bread) serve higher quality foods as compared to something like McDonalds. According to Technomic, there was a 13% increase in sales in the US in fast casual chains. Another trend is the unique and innovative ideas and food options made available to customers in restaurant menus and the constant need and force of differentiation in this cutthroat competitive industry. By offering new food options to consumers, it keeps the company fresh and always evolving while still sticking to its roots. Opportunities in the industry are vast and range from going green and sustainable (methods of operations and workings) to introducing new beverage options and definitely expanding on breakfast menus customers have been seen to have increased liking for breakfast food. According to Hoovers, "quick service restaurants that promote their use of locally sourced ingredients can tap into a growing segment of customers concerned with sustainability and food quality. This is exactly what Salad Stop plans on doing, tapping this opportunity to attract the predicted growing green population. Like every industry, this industry too has its challenges, and the most important one being, food safety and quality. Keeping in check food quality is the most important factor in any restaurant business because if there is, for example, even one hair strand in one bowl, then the reputation of the restaurant would be permanently scarred and it becomes very difficult to come back from it. Other challenges as explained in Hoovers include, intense competition within the 8 industry; increasing labor costs; ever changing customer preferences and tastes which becomes hard to keep up with; and the most important thing a food industry depends on, the changing costs and production of ingredients (crops etc.) required to make the food. Because they depend majorly on natural elements, which are hard to predict, this is a very vulnerable element. This is the fast food and quick service industry that Salad Stop is a part of and hopes to help in increasing industry revenues and reputation. Type of Organization Salad Stop is an independent operating small business established and registered in the state of California, United States. It is physically located in Burbank, California. Salad Stop is new start up founded in January 2016, by Brigitte Knoll, Sabrina Bekhloyan and Aishwarya Wanchu. Each of us have equally invested $25,000 and counting loans from friends and families, our total start up costs $100,000. We are each equal partners in this small business with each earning 25% of earning each and the remaining 25% is split into savings and repayments of loans and other advances. We picked starting our own business is because we didn't have enough investments to pay royalties and other fees to franchisers and we wanted to operating something all on our own with our rules and practices without interference from outside parties. OPPORTUNITY ANALYSIS AND RESEARCH Research Methods and Target Customers Burbank is a city in Los Angeles County in Southern California, United States, 12 miles northwest of downtown Los Angeles. Billed as the "Media Capital of the World" and located only a few miles northeast of Hollywood, numerous media and entertainment companies are headquartered or have significant production facilities in Burbank, including The Walt Disney Company, Warner Bros. 9 Entertainment, ABC Studios, Marvel Studios, Nickelodeon, and NBC. The city is also home to the Bob Hope Airport. Burbank consists of two distinct areas: a downtown in the foothills of the Verdugo Mountains and flatlands at the east end of the San Fernando Valley. The most common market segments in Burbank are bohemian mix, urban achievers and elders, and wealthier older family mix. There is a big collection of mobile urbanites. Bohemian Mix represents the nation's most liberal lifestyles. Its residents are an ethnically diverse, progressive mix of young singles, couples, and families ranging from students to professionals. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop, and restaurant. This mix of individuals is workaholic and incredibly health conscious. They really care about appearance, and want people to know they are taking care of their bodies. In a recent survey performed to analyze market potential, we came to find that people living all over California believe having a salad bar drive thru would make it easier for them to eat healthier. They believe that if it is fast to go through a Taco Bell drive thru, why not just got through another convenient food drive thru, such as Salad Stop. According to our research, we found that Burbank would be the perfect location for our Salad Stop. Survey takers said they loved Burbank because of its safe community, cleanliness, easy parking, entertainment industry, and the studios. They were also very fond of the many restaurant options, store, bars, malls, and movie theater that are walking distance. People living in Burbank really like to have options, and adding a salad bar drive thru will not only give them another healthy meal choice, but also a convenience. In one of the questions asked in the survey, "how convenient would a drive thru salad bar be for you? 57.14% said it would be extremely convenient, 28.57% said it would be very convenient, 14.29% said it would be moderately convenient, and 0% said it would be slightly or not at all convenient. All in all, everyone found that the salad bar drive thru would be convenient; no one felt it would add an inconvenience to their lives, or found that they would not be interested at all. 10 How convenient would a drive thru salad stop be for you? . Another question we analyzed was: How important is cost when choosing a salad restaurant? This shows that our target market would be able to afford, and would not mind purchasing a $10 salad. Most survey takers said it was slightly or moderately important, and no one found it to be extremely important. Another very important question we asked in our research was, "how often do you go through a drive thru for a quick bite?" We found that this question was very important to ask and get more information on because we need to know how often people are in a rush and need something fast to eat. Now unfortunately, most fast food restaurants are unhealthy, thus with adding a salad bar drive thru, this will add a whole other clientele to the fast food industry. Our survey takers go through a drive thru, 11 roughly 1-2 times a week, or not at all. This was not that surprising, especially because eating fast food is unhealthy. How often do you go through a drive thru But in another survey, we asked what they would like most about a salad bar drive thru, and most said, it would be a convenience to healthy eating. Here are some responses to our question: "I don't go to drive thru's because they are all fast food besides a few exceptions such as Starbucks. Opening a salad stop would be great because I drive a lot and sometimes don't have time to physically go into a restaurant just to order a salad." "I can get something very healthy, without leaving my car. Many days i have very little time between work and errands, and a healthy drive through would be my choice. And I don't know of any healthy drive thru's." "It sounds much healthier than the normal drive thru restaurant, it will make it easier for me to grab a healthy bite when I'm on the go. 99 Environmental Analysis THREAT OF NEW ENTRANTS - HIGH Food industry has high rates or return on investment Everybody wants food 12 . The world is getting healthier, therefore, more options creates more variety and higher competition Easy start up, there are now online delivery services for food made from a local kitchen and people still eat it No legal barriers Spend a large amount of capital on advertising and marketing in order to have successful existence Competition from existing chain restaurants THREAT OF SUBSTITUTES - HIGH . . . Consumers may not always want to eat salads and wraps and will explore other options like burgers, fries, rice and other gourmet options There are other salad and wrap options (Simply salad, Tender Greens, Veggie Grill) Restaurants like Panera Bread and Chipotle give other options and a more popular cuisine and not just salads and wraps Price is a major factor that can influence substitutes as cheaper options are available even though they might be less healthy Traditional and older more locally restaurants and dining areas available in Burbank With so many firms in the quick service/burger industry, low switching costs, similar products, and healthier options, the threat of substitutes is very high . BARGAINING POWER OF CONSUMERS - LOW Even though customer-switching costs are nearly zero, the fast food industry does not worry about loyalty because "On average, one-fifth of the population of the USA eats in a fast-food restaurant each day" (Oxford University Press). It is this volume that keeps customer bargaining power low by diluting the effect of a few picky customers. BARGAINING POWER OF SUPPLIERS - LOW 13 Large fast food chains thousands of suppliers to choose from and select theirs through a competitive bid process. They can switch suppliers easily and tend to make up a large portion of the supplier's revenue. This severely limits the bargaining power of suppliers. Standardized Products - meaning in the fast food industry, products are considered high substitutes of each other, which results in low switching costs for the buyer to one chain to another RIVALRY AMONG FIRMS - HIGH The limited-service industry defines a red ocean industry. Firms compete for market share in a saturated market. Growth, particularly in hamburger chains, is very slow so the customer base is not growing as fast as the industry. This leads to high rivalry among firms. Increasing Market for Fast Food/Convenience Product Innovation - the companies in fast food industry tend to distinguish by providing its customers with a unique fast food experience and offering value menu items in their foods. Competitive Analysis DIRECT COMPETITORS INDIRECT COMPETITORS Simply Salad McDonalds Tender Greens Pizza Hut Veggie Grill Chic-fil-a Chop Stop Domino's Pizza Subway Burger King The Plate California Panda Express Fala Bar El Pollo Loco Shred Caf Panera Bread Chipotle 14 There are so many different categories of competitors because this is ultimately a food industry and food cannot be standardized as this industry runs on consumer demands, their tastes and preferences and lifestyles. Presently the trend is predicted to be a health conscious world where people are being aware of the benefits of being healthy and eating right and working out. People are also more environmentally friendly and are appreciating Mother Nature and learning the consequences of not protecting her. Today's consumers are very smart and savvy especially with their money and are more aware about the products and services being offered to them. They know what they want and are not afraid to ask for it. Our target health conscious customers market would readily go for the above mentioned restaurants and salad bars mainly because they provide fresh, good quality food, with a friendly staff and a great location (because Burbank is too beautiful!). Every single competitor has their own specialty that the people love, for example, the Fala Bar boasts its sweet potato falafel and kale burger as people's top favorite; the Just Salad bar boasts of nutrition and fitness ambassadors assigned to particular areas. These are the positives that customers would see available to them especially due to their limited choice and settle and feel satisfied. However, there have been complaints of slow services; depressing atmospheres; high price for "organic fresh produce"; unclean clean environments; outdated websites and slow services especially when it comes to ordering food. It is hard to keep up to date with growing technology and customer needs together while trying to deliver the best of food service and that is why some restaurants feel the heat of some drawbacks. These are few of the many drawbacks that customers face but don't voice but at the end of the day, there is only one goal, and that is customer satisfaction and if the customer isn't 15 happy, they will not come back. But the people of Burbank, because have limited choices, tend to just be satisfied with the average service provided to them and don't feel extremely happy with it. Some are too high priced, while some take too long, some have a bad ambiance while some have bad staff; most offer the same products and services in different names, and that is where we come in! MARKETING STRATEGY AND PLAN Product Gourmet organic salads made with love and your lifestyle in mind. Pricing $7.50-$8.75 for Salads, wraps, or paninis Place Burbank, California. Burbank is home to many employees of the motion picture, digital cinema and television studios located in the area. Promotion In order to reach our target customer who is women living in Burbank, whom lives a fast-paced lifestyle, juggling work and family, we are going to promote Salad Stop in the Burbank Magazine and Newspaper. The newspaper is called the Burbank Leader, and women love to view this paper as well as the Magazine, to get more information on what is going on in their town. Since these ladies love to know what is trending, Salad Stop would be a perfect advertisement to include on a weekly bases. Each week we will add coupons, and specials that will intrigue our customers to come in with friends during lunch hours, or for a snack after picking up their kids from school. Also, we will give discounts to those who use our exclusive drive thru system. We want to be unique, and known for our drive thru system, and using our 16 updated ordering and check-out system within the drive thru, will make it that much easier and convenient for our employees as well as our customers. Which is of course our number one goal! Including advertisements on the Burbank newspaper and magazine, we will create a Facebook Account, Instagram Account, as well as Twitter, to keep up with our younger-adult customers. They will be able to pull coupons and promotions from each social media site, as well as post pictures to help spread the word. Don't forget to Hashtag #saladstopburbank! Also, we will promote on all the advertising platforms, a promotion to Burbank Police Officers, offering 50% off their entire purchase. Moving forward, with health being a huge fad, and people taking health into consideration more often than not, we believe that teaching young adults about health is the perfect first step in opening their eyes into how important it is to be health conscious. Therefore, we want to offer health talks at local high school and colleges. Some schools we will further look into will be, Burbank High School, Burroughs High School, Los Angeles Valley College, Glendale Community College, Glendale Career College, and Woodbury University. These are potential colleges where we will give health talks to high school, and college students and promote our salads, and how eating salads will provide more energy throughout the day, cut calories, and provide other health benefits from vegetables. Also, according to WebMD, eating salads provides people with smart fats. Eating a little good fat (like the monounsaturated fat found in olive oil, avocado and nuts) with your vegetables appears to help your body absorb protective phytochemicals, like lycopene from tomatoes and lutein from dark green vegetables. A recent study from Ohio State University measured how well phytochemicals were absorbed by the body after people ate a salad of lettuce, carrot, and spinach, with or without 2 17 1/2 tablespoons of avocado. The avocado-eaters absorbed eight times more alpha-carotene and more than 13 times more beta-carotene (both of which are thought to help protect against cancer and heart disease) than the group eating salads without avocado. Lastly, another form of advertisement that we believe would be suitable, (considering our salad bar/restaurant is in Burbank), is to cater to the different Network Studios located around the Burbank area. Doing this would increase our brand image the most than any other form of promotion. Billed as the "Media Capital of the World" and only a few miles northeast of Hollywood, numerous media and entertainment companies are headquartered or have significant production facilities in Burbank, including The Walt Disney Company, Warner Bros. Entertainment, ABC Studios, ABC Family, Marvel Studios, Nickelodeon, and NBC. If we were to cater to different filming studios in Burbank, we will increase brand awareness by 65% (Hoovers). We will contact each Network Studio at the beginning of every month and organize catering events to supply meals for the entertainment workers, and film crew. All in all, this is our one year marketing plan, considering we have a limited budget. Within the following years to come we would eventually like the different network studios to sponsor us during their commercial breaks. For example, at the end of the Ellen Show, Ellen could do a shout out to Salad Stop, thanking us for providing the audience and crew members for our gourmet organic salads. We will also give Ellen promotion coupons that she can give out to her audience, and crew members. Such coupons would be either 20% off salads, or Buy one Get one Half off. Thus, increasing our customer base, and brand awareness. In the future we also hope to expand, grow, and diversify. 18 MANAGEMENT AND OPERATIONS Thus far, Salad Stop's growth has been characterized by locations within a 6 hour drive from Los Angeles. Company policy dictates that locations cannot be more than 500 miles from its suburban Los Angeles distribution center so that the meat and produce do not have to be frozen. Indeed, much of our company's marketing revolves around the theme of never freezing our ingredients. Channel members can expect that we will have daily deliveries of our ingredients so it's fresh and customers know what they will be getting every time they visit. This will help the marketer promote Salad Stop and how it will set us apart from our competitors. Our employees at Salad Stop are key to our success so it's imperative that we thoroughly hire our staff and keep them satisfied. Criteria Used to Select Sales Personnel Requirements in Sales Personnel Mental Aptitude Dimensions Personality Dimensions Mental Alertness Honesty or character strength Sociability Business terms and memory recall aptitude Cynicism High energy levels Communication skills Dominance Numerical ability Competitiveness 1 Mechanical interest Emotional maturity Work habits Work motivation Selection Process: 19 Simple one step system (personal interviews) to complex multiple systems (preliminary interview test - final interviews) Intelligence Test: learning / alertness/ reasoning ability Reference checks Physical examination Making the selection Sales Training Initial salad stop training 1-2 weeks 1. Lectures 2. Discussions . 3. Demonstration 4. Role playing Buddy system training 2 days Sales Force compensations Education background Industry experience Flexibility Incentive and motivation FINANCIAL ANALYSIS AND PROJECTIONS Sources and uses of capital: We all three investors) will be investing $25,000 each into Salad Stop. According to our estimates $75,000 will be enough to build our niche drive through salad bar. We might have extra expenses therefore we are working on getting loans from family and friends to set ourselves up successes before we really start seeing profits revenues. capital investment will be falling into categories such as renovating and altering a property, equipment, training of employees, and marketing. Our biggest expense that we are diligently monitoring is 20 building our specific salad location. The physical location will be one of our strengths and also the biggest advantage we will have over competitors. Our goal at Salad Stop is primarily to provide a sleek, affordable, and interactive bar for family and friends to enjoy a bite to eat. Start Menu Items Salud $8.50 58.75 Con of Goods Sold $3.06 Gross Predi 3950 Cost of Good Sold SALAD STOP. FINANCIAL ANALYSIS SER Des 2016 850 3050 1200 1350 140 1560 13.920 39.100.00 56.0 39.690.00 57.995.90 58.925.00 $10,300.00 31.033.00 $11.3.2.30 5:2.095.00 $12,000.00 $125.00 $13.650.00 $130,742.50 $1.500.00 52.250.00 53.150.00 53.500.00 SL50.00 54.340.00 S43300 54.500.00 541.980.00 SEE950.00 SO $1934.00 58.580.00 SEIDO 58,970.00 S.NO 390 dod 50 10 390 900 7.500 52.250,00 53.150.00 59.375.00 $3.500.00 4096.30 5.65000 35.380.00 55.812.50 56.21750 5609900 5575150 $1.050.00 31.575.00 51.10.00 9,100.00 52.310.00 $2.590.00 59,42500 52.355.00 53.549.00 53.150.00 $26.250.00 $1.500.00 $1.680.00 SOCO $19:00 59265 S000 0.00 18750 $3.80750 SUST.00 1.327.50 330 300 690 STO 660 30 6.00 51.590.00 52.550,00 52.505.00 $313.30 53.0250 5425.00 19.250.00 55,912.50 $5,975.00 56,300.00 5656350 552.350.00 563000 51,050.00 51,135.00 $1.365.00 51.995.00 $1.650.00 51.390.00 52.205.00 52.310.00 $2.520.00 $9.605.00 $21.10300 $900.00 $ 500.00 $19000 1990.00 91.50.00 $3.307 50 53.730.00 $1,24.00 350 960 160 0 780 1630 sed 7630 1630 12.000 590000 590000 5900.00 51.950.00 51.990.00 $4.050.00 $4,050.00 54.050.00 54050.00 $216.00 $30,000.00 $216.00 5316.00 1996.00 5995.00 399.00 5468.00 $168.00 5972.00 1972.00 5972.00 $9200 37.200 00 Gross Profit $8.50 58.9 Cost of Good Sold Groms Profil RectiStits sold $ $250 Cow of Goods Sold 50 60 Gross Prehe Total Remur al Products Sold Each Month Total Grous Profil for Pradees Semar Mesh SELLER SA SIBLES SUR $1.2125100900 WOTE.CO.IN WORD.00 99,730.00 $1:55.00 $14.000 SITES. SI 30.0 32000 3200 52.992.90 597450 S, 902.909091750 1970 19600.00 $12.000.000 SEZONOSSO SI7805.00 S12.345.50 1.10.19 $19.310.50 $1643.00 Operating Expenses e Utes Electricity Peyroll and Payroll art for a responsidery 2.23 Utensils Cidery Parking Repairs and Serv Uniforms Total Operating Espesies Net Prafie Netlon Atvumilased Prolit Loss 5900 S2,000 $2.000 $200C S2000 200 39.000 SLOO $94.600 SP 5990 See 5900 1990 $4.633 52.700 52.700 9.00 55.000 53.000 52.700 52.00 52.700 $2,900 52.700 $3,000 56.093 $53,300 56.093 56.005 56.03 56.990 56.50 $5.09 56.03 55099 56.03 56.09 56.750 $94.923 9399 5990 $250 $350 $250 5250 5250 53,000 $1.000 5500 S450 $450 $450 $350 w 5230 $352 5250 $200 $200 $4300 SH 50 SA 580 580 SIC 580 5950 $350 599 $30 350 550 $50 330 $50 $50 350 5600 5:00 51060 $5.00 $160.00 $100.00 50.00 S24 550.00 $530,00 $12,684 SIT $19. SEN 311365 $13,364 $12.30 $11.36 $13,336 $14780 $100.000 1) 5 S14 5150 56.103 58.931 $7.95 $100.000 SITI) 110,30% SULLE SUE 155 115.551.830 OG 1832.28 94.456 $16.700 ASSUMPTIONS SALADS: Assuming that we sell 20 salads each day till the end of Janurary @ 8.50 per salad Assuming Salad stop increases units sold of salads to 25 salads each day @ $8.50 per unit With Spring Break around the corner, we must assume there will be more foot traffic due to students being out on spring break. Thus, from March - May, we sell 30-35 salads each day @ $8.50 per unit 21 From June - August, Summer will be our biggest months. Selling 40-45 Salads per day @ 8.75. (A $0.25 increase in price.) After the month of August, we assume there is a 20% increase till the end of the year for salads, priced at $8.75 WRAPS: Assuming that we sell 10 wraps each day till the end of January @ $7.50 per wrap. Assuming Salad Stop increases units sold of wraps to 14 wraps a day@ $7.50 per unit. Because it will be around Spring Break time, we assume a lot more high schoolers will come in more, and some college kids might be home from college. Therefore, we assume to sell 15-20 wraps. Forecast to sell approximately 18 wraps per day at @7.50 in May Summer break- healthy, beach fit bodies, school's out, sales are assumed to increase all the way till August for wraps at an increased price of $7.75 per wrap. Therefore, assuming, from June to August we sell 20-25 wraps each day After the month of August we assume to have a 20% increase till the end of the year for wraps starting at $7.75 per unit PANINIS: Assuming that we sell 6 paninis each day till the end of January @ $8.50 per panini. Assuming Salad Stop increases units sold of paninis to 10 paninis a day @ $8.50 per unit. Because it will be around Spring Break time, we assume a lot more high schoolers will come in more, and some college kids might be home from college. Therefore, we assume to sell 10-15 sandwiches at the end of the month. 22 Forecast to sell approximately 15 sandwiches at @8.50 in May Summer break-healthy, beach fit bodies, school's out, sales are assumed to increase all the way till August for paninis at $8.75 per sandwich. Therefore, assuming, from May to August we sell 16-20 sandwiches a month. After the month of August we assume to have a 20% increase till the end of the year for paninis starting at price $8.75. BOTTLED BEVERAGES: Assuming we sell a total of 1,080 salads, paninis,and wraps each month, we can assuming that 30% of customers are purchasing a bottled beverage each day at $2.50 from Janurary to March Assuming we sell a total of 1,800 salads, paninis, and wraps each month starting in April, we can assume 50% of customers are purchasing a bottled beverage at $2.50 from April to August Assuming we sell a total of 2,760 salads, paninis, and wraps each month, starting in September, we can assume that 55% of customers are purchasing a bottled beverage each day at $2.50 from September - December OPERATIONS: Rent amounts to $2000 per month costing $24,000 for the whole year-Burbank. Salad Stop has employees including servers, chefs, cleaners and manager and supevisors. In the months of May and June we do employ part timers for the summer break time period. August onwards we do let go some staff because of lesser more manageable traffic and employ part timers (few) in the month of December in time for the holidays. 23 For utilities, in the summer months our electricity costs reduces due to excessive use of Solar power and other renewable sources which are used throughout the year. Excessive cost of utensils in the beginning phase, but as we begin to grow, we get more sponsors and better wholesale deals. Also a reduced cost in utensils because we already bought the basics. Uniforms depend on the number employees we have working, and initial cost is higher but reduces due to business relationships formed. $300 are kept aside for surprise and miscellaneous expenses regarding operations. Taxes depend on our income - progressive taxes to the state. FUNDING REQUEST AND EXIT STRATEGY We at Salad Stop do not require funds at the moment as we have individually and with the help of friends and family, raised sufficient funds to start the business. We do however, have growth and exit strategies. A growth strategy we would most likely diverge in is diversification where Salad Stop will have an expanded menu in the future incorporating more food varieties offering different foods made organically, healthily prepared keeping the environment in mind. We would also like to open more branches and expand Salad Stop out of Burbank too. Exit strategies would include, The Modified Nike Maneuver: Just Take It" (entrepreneur.com) According to Stever Robbins for entrepreneur.com, this strategy involves that you, "pay yourself a huge salary, reward yourself with a gigantic bonus regardless of actual company performance, and issue a special class of shares that only you own that gives you ten times the dividends the other shareholders receive." This practice is usually beneficial for lifestyle 24 companies, and Salad Stop is and sells a lifestyle. We intend to reduce our dependence on outside investors and structure our business the way we want and draw cash out when we can and need it. We think this is the best option for our company and for us investors, we do however, must have a clear cut long term plan set up in order to prevent pulling and drawing too much cash causing us to be bankrupt. Our next best exit strategy would be to liquidate and call it quits for the business. APPENDICES PRODUCT ILLUSTRATIONS / DIAGRAMS: Salad Stop Floor Plan, (But with Glass Windows Surrounding Building for salad viewing) VIPSET 25 Sources and uses of capital: We all three investors) will be investing $25,000 each into Salad Stop. According to our estimates $75,000 will be enough to build our niche drive through salad bar. We might have extra expenses therefore we are working on getting loans from family and friends to set ourselves up for successes before we really start seeing profits from our revenues. The capital investment will be falling into categories such as renovating and altering a property, equipment, training of employees, and marketing. Our biggest expense that we are diligently monitoring is building our specific salad location. The physical location will be one of our strengths and also the biggest advantage we will have over competitors. Our goal at Salad Stop is primarily to provide a sleek, affordable, and interactive bar for family and friends to enjoy a bite to eat. Start Menu liems Saunis sold $8.50 58.75 Cost of Goods Sold Gross Profit SALAD STOP - FINANCIAL ANALYSIS 2 dar 2016 600 900 950 1650 1250 1550 1380 14 1300 1560 13.920 55,100.00 56.95.00 $8.993.00 $10.500.00 $11.025.00 $11.312.50 312,093.00 $12.500.00 513,125.00 $13.650.00 $120,142.50 $1,500.00 2.250.00 52.00.00 5.2.190.00 53.150.00 $3,500.00 53.790.00 SL.090.00 54.340,00 5420.00 $4.660.00 541,760.00 SU300.00 SESOO $4950.00 $15.00 59,7632505790 S8210.00 $ 13.50 300 230 0 390 750 310 900 2300 52.250.00 53,150.00 $3.395.00 53.530.00 $4,000.00 $4.590.00 3.13.00 55.380.00 $5.312.50 56,297.50 56.995.00 557,577.50 51.650.00 51,470.00 51.595.00 SL500.00 31.120.00 59.100.20 52,310.00 52.320.00 $2,695.00 52.333.00 $3.045.00 53,130.00 $3,250,00 51.300.00 51.680.00 SKO $3,40.50 $9,897.40 $395.00 31-327.50 Wanita 57.50 Cast of Goods Sold 5390 Gross Profit 350 51.590.00 52,550.00 720 56,300.00 340 34. 23.00 53.315.00 600 59.250.00 6,030 $ 552 350,00 52.305.00 53.235.00 54.200.00 55.512.50 59,999.00 56.562.50 $690.00 SL09000 51.150 $1.365.00 $157300 $1.580.00 $2,100.00 52.209.00 2.310.00 $9.520.00 52.699.00 $21.105.00 $8.50 5875 Cost of Goods Sold $3.50 Gross Profil Based BSRBERE 52.50 Com of Goods Sold 50 50 Gross Predis Total Remove of Produces Seld Tarb Menth Total Gross Profit for Products Sold Each Month 51.500.00 $1,450.00 SI950.00 9.330.00 93.00 $5,937.99 $31.345.00 350 350 360 960 950 30 1630 TOS 12,000 SPOO S900.00 590000 52.400.00 $2,200.00 51.950.00 $1.950.00 54.050.00 $4,050.00 54,050.00 $4,050.00 590,000.00 5.916.00 5465.00 5468.00 5972.00 5972.00 5972.00 592.00 $200.00 $68.00 84.00 $13.00 $139LO SIBUSBLO 31.082.00 51.00.00 $2.078.00 SOLO $2.078.00 $2,300.00 30,130.00 $13395.00 $12.790.00 $1233010 319.300.00 591.550.00 3915.00 5243932 527,450.00 50.2022.50 $30,31250 $31337750 $60.670.00 $6.00 $2.99 SONS SIO SONO $13.000.000 $1457700 SI5,454,50 $11.300.00 313,248.99 $10.180.50 $10.510.00 $164.385.00 Operating Express Per Uelis-Erich Payel was and its Payroll taxes (wtate tax exempt for social ripoesibiley-223 lustAC Us Clery Parking Repair and Services Uniform Total Operating Expenses Net Pro Net Loss Acrumilated Profile . $2.000 000 S2000 od 5.000 3.000 $2.000 324,000 5930 5900 5900 5930 $9.85 54,635 52.700 $2.700 $3.000 53,000 $2.00 52.700 53,000 333,300 56.675 56,05 56093 56.30 56.03 $6099 56.790 574,923 $350 $350 $250 $250 5.950 $250 5.250 33.000 $1.000 $300 $450 $450 450 5.30 5250 $150 1330 3.300 5200 54.800 533 SRC 580 380 $80 380 $80 SOC 580 5960 39 $30 5.30 350 $50 $90 $50 $90 590 550 5600 51000 5290 5100 3000 5000 50.00 $0.00 550.00 5990.00 $12345 $13,485 312 S12 $13.50 S11.504 $12.304 511,404 51331 513.325 $146,760 $100,000 156.171) SLORO S80 1.149 5214 1 95931 57.13 36.486 $14,701 (1.000) 10 31100 SIT 308 IISIL) 115.51) 13 S10995103.506597605380723 3GP ASSUMPTIONS SALADS: Assuming that we sell 20 salads each day till the end of Janurary @ 8.50 per salad Assuming Salad stop increases units sold of salads to 25 salads each day @ $8.50 per unit With Spring Break around the corner, we must assume there will be more foot traffic due to students being out on spring break. Thus, from March - May, we sell 30-35 salads each day @ $8.50 per unit From June - August, Summer will be our biggest months. Selling 40-45 Salads per day @ 8.75. (A $0.25 increase in price.) After the month of August, we assume there is a 20% increase till the end of the year for salads, priced at $8.75 WRAPS: Assuming that we sell 10 wraps each day till the end of January @ $7.50 per wrap. Assuming Salad Stop increases units sold of wraps to 14 wraps a day@ $7.50 per unit. Because it will be around Spring Break time, we assume a lot more high schoolers will come in more, and some college kids might be home from college. Therefore, we assume to sell 15-20 wraps. Forecast to sell approximately 18 wraps per day at @7.50 in May Summer break- healthy, beach fit bodies, school's out, sales are assumed to increase all the way till August for wraps at an increased price of $7.75 per wrap. Therefore, assuming, from June to August we sell 20-25 wraps each day After the month of August we assume to have a 20% increase till the end of the year for wraps starting at $7.75 per unit PANINIS: Assuming that we sell 6 paninis each day till the end of January @ $8.50 per panini. Assuming Salad Stop increases units sold of paninis to 10 paninis a day @ $8.50 per unit. Because it will be around Spring Break time, we assume a lot more high schoolers will come in more, and some college kids might be home from college. Therefore, we assume to sell 10-15 sandwiches at the end of the month. Forecast to sell approximately 15 sandwiches at @8.50 in May Summer break- healthy, beach fit bodies, school's out, sales are assumed to increase all the way till August for paninis at $8.75 per sandwich. Therefore, assuming, from May to August we sell 16-20 sandwiches a month. After the month of August we assume to have a 20% increase till the end of the year for paninis starting at price $8.75. BOTTLED BEVERAGES: Assuming we sell a total of 1,080 salads, paninis,and wraps each month, we can assuming that 30% of customers are purchasing a bottled beverage each day at $2.50 from Janurary to March Assuming we sell a total of 1,800 salads, paninis, and wraps each month starting in April, we can assume 50% of customers are purchasing a bottled beverage at $2.50 from April to August Assuming we sell a total of 2,760 salads, paninis, and wraps each month, starting in September, we can assume that 55% of customers are purchasing a bottled beverage each day at $2.50 from September - December OPERATIONS: Rent amounts to $2000 per month costing $24,000 for the whole year-Burbank. Salad Stop has employees including servers, chefs, cleaners and manager and supevisors. In the months of May and June we do employ part timers for the summer break time period. August onwards we do let go some staff because of lesser more manageable traffic and employ part timers (few) in the month of December in time for the holidays. For utilities, in the summer months our electricity costs reduces due to excessive use of Solar power and other renewable sources which are used throughout the year. Excessive cost of utensils in the beginning phase, but as we begin to grow, we get more sponsors and better wholesale deals. Also a reduced cost in utensils because we already bought the basics. Uniforms depend on the number employees we have working, and initial cost is higher but reduces due to business relationships formed. $300 are kept aside for surprise and miscellaneous expenses regarding operations. Taxes depend on our income - progressive taxes to the state. FUNDING REQUEST AND EXIT STRATEGY We at Salad Stop do not require funds at the moment as we have individually and with the help of friends and family, raised sufficient funds to start the business. We do however, have growth and exit strategies. A growth strategy we would most likely diverge in is diversification where Salad Stop will have an expanded menu in the future incorporating more food varieties offering different foods made organically, healthily prepared keeping the environment in mind. We would also like to open more branches and expand Salad Stop out of Burbank too. Exit strategies would include, "The Modified Nike Maneuver: Just Take It" (entrepreneur.com) According to Stever Robbins for entrepreneur.com, this strategy involves that you, "pay yourself a huge salary, reward yourself with a gigantic bonus regardless of actual company performance, and issue a special class of shares that only you own that gives you ten times the dividends the other shareholders receive." This practice is usually beneficial for lifestyle companies, and Salad Stop is and sells a lifestyle. We intend to reduce our dependence on outside investors and structure our business the way we want and draw cash out when we can and need it. We think this is the best option for our company and for us investors, we do however, must have a clear cut long term plan set up in order to prevent pulling and drawing too much cash causing us to be bankrupt. Our next best exit strategy would be to liquidate and call it quits for the business