Question
I need help with the business plan for the ice cream gelato business that I choose. I need help or ideas on the accounting plan.
I need help with the business plan for the ice cream gelato business that I choose. I need help or ideas on the accounting plan.
- Accounting Plan- In order useful business plan, preparers need to understand how to put financial information into useful financial statements, to price and cost out products and services and use basic financial information for making decisions about how to much to produce to stay in business. As part of the business plan, you shall:
- use financial statements to analyze business performance and recommend changes in operations. The business plan must include, at a minimum of the first three years of business, the following: Income Statements, Balance Sheets, and Statements of Cash Flow.
- Explain Cost product and services using both traditional (absorption) costing and Activity Based Costing (ABC) procedures.
- Explain how the choice of different accounting principles impacts the bottom line and cash flows (Inventory, depreciation computations, extension on credit to customers, and bad debt.
- Use accounting information to explain how decisions are made regarding financing the business's operations. (choice of debt or equity funding).
- Use CVP to explain short-term decisions relating to breakeven point, segment/product margins, and contribution margins.
- Perform breakeven (BE) analysis to estimate BE quantity of products/services that you plan to offer and the quantity you must produce/services to meet expected profit. Discuss the feasibility of the cost, revenue, and profit structure in your proposal.
Business Plan. Gelato ice cream.
Introduction
We are setting up a Gelato ice cream business because there are very few locations in Omaha that you can buy Gelato. Gelato uses more milk than cream than ice cream and does not use egg yolk. Italian gelato uses less fat and less air than ice cream, which results in a dense, fluid, and creamy sweet treat. Additionally, gelato is ten to fifteen degrees warmer than American ice cream, which makes your mouth less numb and allows you to fully appreciate the delicious flavor. Above all, gelato will stay frozen for two hours, allowing for superior logistical capabilities.
Pitch
Are you tired of buying tubs of ice cream with the same flavors over and over again? Are you scared to order online ice cream because it will just melt before it gets to you? Worry no more. At Gianni's Gelato, we provide authentic Italian gelato ice cream. This means it doesn't melt away and has delicious surprises at the end of that yummy wafer cone! Our gelato ice cream gives you a scoop of comfort and a taste of summer, anytime and anywhere. As the regional leading gelato ice cream provider, we strive to serve everyone a scoop, creating strong bonds along the way. Our gelato ice cream features eco-friendly packaging and high-quality, vegan ingredients. When it comes to pricing, we offer a competitive price of as low as $2.50 a scoop or you can buy a tub of our fantastic gelato ice cream for only $10.00. You can find us at your local grocery store, online, or on any of our different social media platforms like Facebook, Twitter, or Instagram.
Business plan
Our target market is anyone who wants to enjoy the creamy flavor of gelato. Primarily, we will partner with a delivery service so people can order online and have it delivered. We will also have ice cream carts so we can capitalize on high-traffic areas. In production, we will have eco-friendly packaging and will serve vegan and healthy dairy options to service a wide range of consumers and maintain an eco-friendly stance. We will aim to have a strong and robust relationship with local suppliers of raw ingredients and other supplies and will also work with local businesses to get flavors for the ice cream. For example, working with the local coffee shop to get coffee beans to use to flavor the gelato. Our initial target is a twenty percent mark-up pricing from production.
Logistically, we plan on developing a website so people can see our flavors online and order the Gelato for delivery. In the initial stages, we will purchase a small warehouse for production. After this, we will immediately begin marketing the business. Our initial price point is a 20% markup. This places our pricing at $2.50 for one scoop, $4.00 for two scoops, $5.00 for 3 scoops, and $10.00 for a 14oz container. We will also secure partnerships with local businesses for recurring events and will participate in regional food festivals.
The initial setup cost will include rent, website, payroll, advertising, and basic supplies. Rent will cost $2,750, Website $2,000, Payroll for five employees at $35K/year salary will be $175,000, advertising will be $5,000 and, finally, basic office supplies will be $80. This leads to a total of $184,830 in startup fees.
We will have eco-friendly packaging to promote environmental stewardship and will use vegan and healthy dairy options to service a wide range of consumers. We will have a good and robust relationship with local suppliers of raw ingredients and other supplies and will work with local businesses to get flavors for the ice cream. An example of this would be working with a local coffee shop to cross-promote using their coffee beans as one of our flavors. Although our primary logistical system will be partnerships with existing food delivery services, we will reach additional customers when we travel with our ice cream carts. Finally, we will use social media to help increase our visibility and will maintain a strong social media presence.
Corporate ValuesVision Statement
We strive to become the leading gelato ice cream provider, committed to serving people and conquering adversity.
Mission Statement
At Gianni's Gelato, we understand the importance of people who are forever young at heart. After all, these sweet treat loving people are our customers. Because of this, we provide our delicious gelato anywhere it is desired in the Omaha metropolitan area through our delivery service or even at one of our many ice cream stands. Because our gelatos stay frozen for up to two hours but don't get overly cold, our customers can enjoy them for a longer period (without the headache). Our delivery system, competitive pricing, and strong expansion plan allow for the ability to expand along with our fanbase, attracting dedicated employees along the way. Being both vegan and eco-friendly, our company also employs local college students, giving them an opportunity to build a great set of business-friendly skills while improving the community along the way. No matter the circumstance, it is our goal for every customer to leave with a smile after sampling our gelato!
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