Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $1,500 |
Stationery etc. | $400 |
Office Supplies | $500 |
Kitchen Supplies | $1,000 |
Janitorial Supplies | $400 |
Insurance | $719 |
Rent | $5,182 |
Utilities | $1,085 |
Sales and Marketing | $2,800 |
Website Development | $4,000 |
Leasehold Improvements | $140,000 |
Licenses/Permits | $422 |
Construction Fees / Permits | $35,000 |
Outdoor Sign | $3,500 |
Miscellaneous | $200 |
Total Start-up Expenses | $196,708 |
Start-up Assets | |
Cash Required | $34,000 |
Start-up Inventory | $9,000 |
Other Current Assets | $8,000 |
Long-term Assets | $42,000 |
Total Assets | $93,000 |
Total Requirements | $289,708 |
What’s For Dinner? is a privately held Sub Chapter S-corporation. This allows for the protection allowed by the corporate legal structure combined with the “fall through” Generally Accepted Accounting Principals that will make personal financial sense to the corporations principle owners. The principle owners of What’s For Dinner? are Alan and Kim Kirby; each owns a 50% stake in the company. This company operates under the jurisdiction of the State of Texas and the United States of America.
What’s For Dinner? will provide its customers with twelve home cooked meals that they will freeze until customers are ready to serve them. These meals will be chosen from a set menu designed weekly by us and the meals will be prepared in our location. All of the planning, shopping, food preparation, recipe directions and containers will be provided to help make it as easy as possible for our customers to enjoy their time at our establishment.
Our customers will prepare their meals in a fun, party-like atmosphere where they can relax, meet new friends or spend time with old friends while preparing dinners for their families for the next month.
The Key benefits our customers will receive from using What’s For Dinner? are:
Our menus and portion sizes are tailored for the group and individual customers. Seniors get added benefits, with diabetic, low-cholesterol, and low-sodium choices. Families can increase portion sizes for a small fee to accommodate more children or guests.
The Dallas area’s meal preparation market is untapped. As a matter of fact, there is no other business of this kind in the Dallas/Ft. Worth area. Though there are no exact replicas of our company there are some types of companies that we would have to consider to be indirect competitors. These include such companies and service professionals as caterers and those that will come to your home and prepare meals for you to freeze. What’s For Dinner?, at this time, has few direct competitors, with exception to area restaurants and your basic home cooking. At the inception of What’s For Dinner?, there will be no type of company like ours in the area, thus giving us the overwhelming competitive advantage of first entry.
The What’s For Dinner? market is primarily in the Collin County area: Plano, Frisco, Allen and McKinney. We will be focusing on households in these areas that have more than one person. Primarily, those households whose income is over $50,000, with someone under the age of 18 living there. As a secondary target market, we will market to the elderly population in the aforementioned areas. Initially, the greater portion of our customers will be busy, working class people and the growing group of single-parent families, but it will be of great benefit now and in the future to market our services to the highest growing population demographic – senior citizens.
The following statistics were taken from Table DP-1 Profile of General Demographic Characteristics: 2000 for Collin County.
What’s For Dinner? has three distinct target populations:
We will market several menus designed for the diet needs of the senior populace (diabetic, low cholesterol, low sodium), with pick-up and drop-off coordinated with a local senior-transportation center. All prep and measuring will be done beforehand, so they will need only to stir and combine ingredients. In addition to meeting their practical needs, we will create the social experience that this group consistently hunts for, and help them to enhance their lifestyle through a higher quality of health.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Households with children | 10% | 73,864 | 81,250 | 89,375 | 98,312 | 108,144 | 10.00% |
Households with no children | 10% | 58,404 | 64,244 | 70,668 | 77,735 | 85,509 | 10.00% |
Seniors | 12% | 25,852 | 28,954 | 32,428 | 36,319 | 40,677 | 12.00% |
Total | 10.33% | 158,120 | 174,448 | 192,471 | 212,366 | 234,330 | 10.33% |
These target market segments were chosen based on their greater need for our services. Families with children are very busy, and they can end up spending a great deal on fast food and junk food because they don’t have time to cook healthy meals at home. Busy working couples and individuals without children are also busy, and may not have the skills or desire to plan and cook entire meals at home just for themselves; they can spend a lot on going out to eat. Seniors have special challenges in obtaining and preparing quality ingredients to feed themselves, including the loneliness of cooking for oneself. Options like “Meals on Wheels” are generally last-resorts, and many would prefer alternate food preparation arrangements, if any were available at a reasonable price – fixed incomes can be hard on the palate.
Our marketing strategies for all groups will emphasize our relatively inexpensive, fun, and easy approach to preparing healthy meals. We will vary our serving sizes, menu options, and level of preparation for each group; the family-size entree just right for a family of four makes no sense for a single individual. Different sized families have different needs, and it will be our goal to look to accommodate most family sizes through our variations in serving size.
Our service is unique among Dallas meal preparation options. There are no direct competitors for What’s For Dinner? The closest competitors are personal chefs, who will come to your home and prepare your chosen meals for you and freeze them, at a very high price. Our target market segments cannot afford personal chefs.
Our indirect competitors are area restaurants. These include family-oriented, inexpensive diners and casual restaurants, as well as fast food and takeout. We will generally not be competing with upscale, adult-oriented restaurants, since those are “special occasion” locations, and do not fulfill local residents’ daily meal needs.
Our competitor restaurants compete on price, perceived convenience, and atmosphere. They succeed when they convince customers that going out to eat is an affordable “treat” that is easier and more pleasant than preparing meals at home. In truth, the restaurants with the lowest prices also offer poor quality food and atmosphere, and the struggle to get children ready, out the door, and have them behave in a restaurant setting can make these choices less appealing in families’ realities than in their imagination. For all customers, the time it takes to get ready, travel to a restaurant, order dinner, eat, pay, and get home make going out to a eat a full-evening’s commitment – hardly the convenience it claims.
With the introduction of What’s For Dinner? to the Dallas market, we will revolutionize the way that the community looks at cooking convenience. Our prices really are much lower than restaurant meals, with much higher quality meals. In addition, our “convenience” comes in two ways – preparing meals at a set time, outside the daily routine, so they are ready in advance, and eating and minimal clean-up right in the customer’s own home, which saves time and energy at the end of a long day.
Even though What’s For Dinner? has no direct competitors, we will set up our business as if we are entering an already aggressive and hostile market. This is aimed at helping us to become successful through a constant drive for increased service model efficiencies and marketing effectiveness. We will strive to excel in customer service excellence, continuing our menu varieties and achieving the highest standards for our food products. As owners, we feel that word of mouth and customer retention are significant factors in our success. Our convenient locations, sanitary facilities, competitive pricing structure and honorable reputation will all play a part in satisfying our customers and increasing our clientele at an accelerating rate. What’s For Dinner? will focus on these factors and always strive to improve our business model and service offerings. We will strive to be the very best in our industry and will not rest until we not only have the largest market share in our industry, but also have the most satisfied customers.
The buying patterns of our customer base will be affected by our initial meal prep party prices. We have concluded through our exhaustive focus market groups that we could set our prices high, since there is no direct competitor, but we feel that to attract and retain customers and be able to steadily grow our customer base, so we should price ourselves at a lower level first. By setting ourselves at the lower end of our pricing range, we will not only gain the attention of the vast majority of our target markets, but we will also be able to start our revenue streams off with an upward growth pattern. The price that we will choose will be reasonable for our customers and be adequate for the business to maintain a gross margin around 25%.
What’s For Dinner? will gradually gain market share in the four focal geographic markets (Plano, Frisco, Allen and McKinney) by leveraging its competitive edges. These edges are superior attention to detail in the local food service market, a revolutionary food-servicing outlook and excellent nutritional meals at competitive price. These advantages have been unavailable in this market for some time. We will market our services with a targeted advertising campaign and networking.
What’s For Dinner? will begin with a critical competitive edge: we have no direct competitors in the Dallas/Ft. Worth area. By being the first-mover and (for at least a while) the only service of our kind, we will have the initial market buzz that is normally reserved for the first company of its kind into a given market. Our positioning is very hard to match, but only if we maintain focus on our strategy, marketing, business development, and fulfillment of quality and customer service will we be able to continually grow and outpace the “copy-cat” businesses that are sure to follow our market lead. We are aware that the tendency to relax due to lack of competition could weaken our competitive edge. What’s For Dinner? will be operated as if our direct competitors were conducting the same service business that we are in and we will be looking for additional enhancements to our operating procedures from day one.
In addition to our unique positioning, we offer the following advantages to our customers:
As a food service business, our main goal is to provide high quality food with excellent customer service. Our challenge as a new company is to quickly establish a reputation for such quality among our potential markets. With this in mind, the initial focus of our marketing strategy will be to get our name and reputation out to the public to create “buzz.” Creating brand recognition for our new concept will be the first measurable milestone in our marketing strategy.
This will be one of the most important factors when measuring success within the first couple of months after inception. The basis for our ideology is simple; the more people that hear our name and become familiar with our services, the more people will use it. The marketing campaign will involve a targeted advertising campaign, different specials to entice the customers to try our business and a very intense networking campaign. All of these tactics will be used to help gain a loyal clientele aimed at fostering our happy customer base.
At start-up, we will begin a focused advertising campaign toward target segments in our geographical area. We will update our advertising campaign regularly to fill in gaps based on follow-up research: do people recognize our name? Do they know what we do? What is their impression of our services’ costs and quality?Marketing campaigns will work via:
What’s For Dinner? will also have a networking campaign that will start with the owner’s contacts and friends attending our first months’ meal prep parties. This will be the “word of mouth” campaign that will feature:
In the food service business, as in any customer service intensive business, sales revenue is our lifeblood. The way in which we present ourselves to our customers and deal with the public will determine the success of our business. The food service industry is facilitated by repeat business and referrals. In order to continuously compete against other food providers, we need to enhance our repeat customer service business by making this our main sales focus. We cannot expect to have a satisfied customer by selling them one month’s of meals and then never seeing them again. We must make our sales strategy revolve around making the customer’s experience with us the best it possibly can, and further, making every effort to get our current customer base to visit us again. It is much more expensive to get new customers than to keep the customers you already have. Our customers cannot stop eating, but they could stop using our services. We will be selling our service to our current customers each time they come, in order to have repeat business and new business through their word of mouth.
These are just a few of the ways we will sell to our customers to gain repeat business and word of mouth advertising:
The What’s For Dinner? website will serve as a productive and consistent selling tool. Our website will be set up to explain what we offer and the many benefits customers will receive for using our meal prep services. The website will help “close the sale;” customers will be able to register for the meal prep party they would like to attend and accepting payments online. This will be our main source of registrations for parties. The ease of use allowed by the Internet will be key to driving our customer pipeline. Our sales and marketing campaigns will help focus our customer traffic through our website, so that people can see how easy it will be to interact with our company. This element of efficiency will also help enhance our bottom line by allowing for a 24 hour customer service mechanism without having to keep a customer rep staffed all the time.
Through our research of other businesses like ours in Seattle, WA and Omaha, NE, we found that all of them quickly increased their sales over their first year. All of these researched companies went from their first month of 100 customers on average to over 1,000 customers within their first year of business. One company opened in Seattle against two other competitors and now has over 2,000 customers with three different locations.
We are optimistic that What’s For Dinner? will grow and prosper just as these other companies have, but we want to set reasonable forecasts for growth. We have therefore taken a conservative approach in preparing our Sales Forecast Table.
The following table and chart give a run-down on forecasted sales. We have forecasted that sales will increase each month with the exception of the summer months, when vacations and other seasonal activities may reduce purchases. Once we get our first few customers, our sales will increase through customer retention, and gaining new customers through networking. We expect sales to grow incrementally over the first year, reaching profitability by the fifth month of operation.
After the first year of operation, we expect sales to continue increasing, from 10% the first year up to 25% by the third year. As sales increase, we will make modifications to our facility and hire new employees to share in the work. Our proposed location allows room for expansion. Based on our research, and the size of our potential market, we expect to reach close to one million dollars in sales by the end of 2005.
Our direct costs of sales listed here are inventory used up in sales, including the meal ingredients and additional supplies, such as themed-party decorations, containers, napkins, and so on. Fixed operating expenses are listed in the Profit and Loss.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Party Fees | $857,674 | $1,072,093 | $1,340,116 |
Other Fees | $24,505 | $30,631 | $38,289 |
Total Sales | $882,179 | $1,102,724 | $1,378,405 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Ingredients | $612,624 | $765,780 | $957,225 |
Other Supplies | $44,109 | $55,136 | $68,920 |
Subtotal Direct Cost of Sales | $656,733 | $820,917 | $1,026,146 |
The accompanying table lists important program milestones, with dates and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan -vs. – actual analysis, and we will follow-up often to discover variances and course corrections.
What’s For Dinner? will have several milestones, including:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Plan Completion | 7/1/2003 | 9/1/2003 | $250 | Alan Kirby | Administration |
Site Selection | 8/22/2003 | 9/1/2003 | $0 | Alan Kirby | Administration |
Architect Designs | 7/20/2003 | 9/1/2003 | $5,000 | Alan Kirby | Administration |
Licensing | 9/1/2003 | 10/1/2003 | $500 | Alan Kirby | Administration |
Site Construction | 9/15/2003 | 12/15/2003 | $0 | Alan Kirby | Administration |
Website Design | 10/1/2003 | 12/15/2003 | $1,280 | Alan Kirby | Web |
Business Funding Secured | 9/1/2003 | 12/30/2003 | $0 | Alan Kirby | Administration |
Site Set-Up | 11/1/2003 | 1/15/2004 | $0 | Alan Kirby | Administration |
First Party | 1/15/2004 | 1/30/2004 | $0 | Alan Kirby | Administration |
Profitability | 1/1/2004 | 12/1/2004 | $0 | Alan Kirby | Administration |
Totals | $7,030 |
The What’s For Dinner? website will be the virtual business card, party scheduler and payment acceptance source all rolled into one. It will showcase our services and highlight the benefits of using our company. The website will be a crucial portal for party scheduling, as well as having availability cross-referenced with party menus. Customers will also use this website to register for their parties and pay for them using PayPal, which accepts MasterCard, Discover Card, Visa, or e-checks.
The What’s For Dinner? website will be a strategic and very important part of our marketing mix. It will be used as a marketing tool to attract new customers, and as a sales tool to schedule parties, select menus, and pay. We will be promoting our website in all marketing programs, including newspaper ads, yellow page ads, business cards and flyers. We will also purchase targeted key word searches to help potential customers find our website. In addition, our website will feature prominently on all napkins, packaging, and receipts which current customers bring home, making repeat business easy and convenient.
Our main internet strategy is to direct the majority of our potential clients to our website first, as the introduction to our services, prices, and availability. This will reduce the time necessary for staff to provide basic information over the phone, allowing them to answer customer questions and provide more details, once customers know who we are, what we do, and how we might help them.
To encourage customers to use the website, we will offering special discounts to those who register their parties with our website and pay online. Our website must be easy to access and navigate, and must answer every customer question we can anticipate. It must use a legitimate, well-respected security feature and a reliable payment method. If it is all these things, many of our repeat customers will be happy to save time by researching party options and scheduling them online.
Clearly, we expect website use to be highest among younger, internet-savvy customers. We anticipate that our senior customers will use phone and direct contacts for most scheduling and payment interactions.
The What’s For Dinner? website will be developed with the technical resources of a local web design artist. He has designed websites for over 325 businesses, most with e-commerce capabilities. He is designing a database interface which will let us adjust the schedule and track click/sales ratios, and easily update menu offerings.
As the website development progresses, he will work with a local graphic artist we have hired to come up with the website logo and graphics. We are still researching hosting possibilities, but feel our needs will be best served by subcontracting out the hosting of the site and the technical back-end supporting.
The What’s For Dinner? management team will initially consist of the founders/owners themselves, Alan and Kim Kirby. We do not anticipate the need to hire anyone else on a full time basis during the first year, because all of the services that a normal small business needs will be outsourced. These services include the e-commerce infrastructure, accounting, marketing, and legal services. We do plan to employ one part-time employee from the beginning to help with cleaning and dishwashing.
Alan and Kim have 15 years of experience in the food service and entertainment industries, as a party planner and personal chef, respectively. Until the second year, Kim will continue to work part-time as a personal chef for several couples in Plano, doing the prep work and menu planning for What’s for Dinner? in the mornings. Alan will host the majority of the parties, after having prepared test batches of every menu item with Kim. The owners anticipate possibly hiring local high-school students as sous-chefs in years 2 and 3; Kim’s experience with local restaurants has shown that these students can often do quite well, paid only minimally in exchange for professional restaurant and food preparation training. Alan’s existing contacts with local social and community groups, and Kim’s ongoing relationships with food distributors, specialty grocers, and high-end clients will all help to generate high sales from early in the first year.
Throughout the first two years we will conduct an aggressive cost analysis as to what our capabilities are as owners and with what activities we need assistance.
The following table summarizes our personnel expenditures for the first three years, with compensation increasing from $34K the first year to about $60K in the third. We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. The detailed monthly personnel plan for the first year is included in the appendices.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Alan Kirby | $24,000 | $30,000 | $40,000 |
Kim Kirby | $5,000 | $7,500 | $10,000 |
Part-time cleaner | $5,000 | $7,500 | $10,000 |
Total People | 3 | 3 | 3 |
Total Payroll | $34,000 | $45,000 | $60,000 |
What’s For Dinner expects strong sales, based on research into our target market, similar businesses in other parts of the country, lack of direct competition, and the experience, reputations, and know-how of its owners/managers. By steadily repaying our long-term loan and holding down costs, we will generate a net profit midway through the first year and increase net worth dramatically by year 3. Our major fixed expenses are payroll and rent.
The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendices.
Three of the more important underlying assumptions are:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 7.00% | 7.00% | 7.00% |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% |
Tax Rate | 24.00% | 24.00% | 24.00% |
Other | 0 | 0 | 0 |
The following chart and table summarize our break-even analysis. With fixed costs of $10,520 per month at the outset (to cover payroll and other operating costs), and variable costs (inventory) at 74% of sales, we need to bill $41,167 to cover our costs. We do not expect to reach break-even until the sixth month into the business operation.
Break-even Analysis | |
Monthly Revenue Break-even | $39,503 |
Assumptions: | |
Average Percent Variable Cost | 74% |
Estimated Monthly Fixed Cost | $10,095 |
What’s For Dinner?’s projected profit and loss is shown in the following table, with sales increasing from $10K the first month to close to $1.4M by the third year. We will reach profitability in the middle of our first year.
We are projecting very conservatively regarding cost of sales and gross margin. Our costs of sales are based on grocery store prices, which will decrease once we are to consistently able to buy our food in larger quantities from a food distributor. This will significantly lower our cost of sales, and increase our gross margin more than in this projection. We prefer to project conservatively so that we make sure we have enough cash.
The Sales and Marketing Expenses vary from the food preparation industry norms. Our Sales and Marketing Expenses will be to consistently maintain our advertising and promotions, while our biggest marketing will be word of mouth from our customers. We are budgeting for a high level of service from our website hosting company and payment processor, since the website is a key component of our Sales and Marketing Strategies.
The detailed monthly projections are included in the appendices.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $882,179 | $1,102,724 | $1,378,405 |
Direct Cost of Sales | $656,733 | $820,917 | $1,026,146 |
Other Costs of Sales | $0 | $0 | $0 |
Total Cost of Sales | $656,733 | $820,917 | $1,026,146 |
Gross Margin | $225,446 | $281,807 | $352,259 |
Gross Margin % | 25.56% | 25.56% | 25.56% |
Expenses | |||
Payroll | $34,000 | $45,000 | $60,000 |
Sales and Marketing and Other Expenses | $3,000 | $3,000 | $3,000 |
Depreciation | $4,200 | $4,200 | $4,200 |
Rent | $53,304 | $54,000 | $54,500 |
Utilities | $13,160 | $14,476 | $15,924 |
Office Supplies | $1,200 | $1,200 | $1,200 |
Insurance | $3,000 | $3,000 | $3,000 |
Payroll Taxes | $0 | $0 | $0 |
Accountant | $3,000 | $3,200 | $3,500 |
Lawyer | $1,000 | $1,100 | $1,100 |
Bank Charges | $180 | $180 | $180 |
Website Payment Fees | $600 | $700 | $800 |
Website Hosting & Support | $1,500 | $1,600 | $1,650 |
Repairs and Maintenance | $3,000 | $3,000 | $3,000 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $121,144 | $134,656 | $152,054 |
Profit Before Interest and Taxes | $104,302 | $147,151 | $200,205 |
EBITDA | $108,502 | $151,351 | $204,405 |
Interest Expense | $17,342 | $15,861 | $14,316 |
Taxes Incurred | $20,870 | $31,510 | $44,614 |
Net Profit | $66,089 | $99,780 | $141,276 |
Net Profit/Sales | 7.49% | 9.05% | 10.25% |
The following cash flow projections show the annual amounts only. Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $882,179 | $1,102,724 | $1,378,405 |
Subtotal Cash from Operations | $882,179 | $1,102,724 | $1,378,405 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $882,179 | $1,102,724 | $1,378,405 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $34,000 | $45,000 | $60,000 |
Bill Payments | $758,414 | $1,055,142 | $1,197,241 |
Subtotal Spent on Operations | $792,414 | $1,100,142 | $1,257,241 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $22,080 | $22,080 | $22,080 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $814,494 | $1,122,222 | $1,279,321 |
Net Cash Flow | $67,685 | ($19,498) | $99,083 |
Cash Balance | $101,685 | $82,187 | $181,270 |
The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. Our negative net worth, due to borrowed capital for start-up, makes a significant increase by the second year, and becomes positive in year three. It is common for start-up businesses to have a negative net worth their first few years.
The monthly estimates are included in the appendices.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $101,685 | $82,187 | $181,270 |
Inventory | $137,714 | $172,142 | $215,178 |
Other Current Assets | $8,000 | $8,000 | $8,000 |
Total Current Assets | $247,399 | $262,329 | $404,448 |
Long-term Assets | |||
Long-term Assets | $42,000 | $42,000 | $42,000 |
Accumulated Depreciation | $4,200 | $8,400 | $12,600 |
Total Long-term Assets | $37,800 | $33,600 | $29,400 |
Total Assets | $285,199 | $295,929 | $433,848 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $148,189 | $81,220 | $99,942 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $148,189 | $81,220 | $99,942 |
Long-term Liabilities | $237,628 | $215,548 | $193,468 |
Total Liabilities | $385,817 | $296,768 | $293,410 |
Paid-in Capital | $30,000 | $30,000 | $30,000 |
Retained Earnings | ($196,708) | ($130,619) | ($30,838) |
Earnings | $66,089 | $99,780 | $141,276 |
Total Capital | ($100,619) | ($838) | $140,438 |
Total Liabilities and Capital | $285,199 | $295,929 | $433,848 |
Net Worth | ($100,619) | ($838) | $140,438 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 2099, Food Preparation, are shown for comparison.
The following table outlines some of the more important ratios from the Food Preparation industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 2099.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 25.00% | 25.00% | 5.54% |
Percent of Total Assets | ||||
Inventory | 48.29% | 58.17% | 49.60% | 11.58% |
Other Current Assets | 2.81% | 2.70% | 1.84% | 22.16% |
Total Current Assets | 86.75% | 88.65% | 93.22% | 53.03% |
Long-term Assets | 13.25% | 11.35% | 6.78% | 46.97% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 51.96% | 27.45% | 23.04% | 27.29% |
Long-term Liabilities | 83.32% | 72.84% | 44.59% | 20.18% |
Total Liabilities | 135.28% | 100.28% | 67.63% | 47.47% |
Net Worth | -35.28% | -0.28% | 32.37% | 52.53% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 25.56% | 25.56% | 25.56% | 30.90% |
Selling, General & Administrative Expenses | 17.88% | 16.00% | 15.03% | 16.61% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.28% |
Profit Before Interest and Taxes | 11.82% | 13.34% | 14.52% | 1.33% |
Main Ratios | ||||
Current | 1.67 | 3.23 | 4.05 | 1.54 |
Quick | 0.74 | 1.11 | 1.89 | 0.98 |
Total Debt to Total Assets | 135.28% | 100.28% | 67.63% | 55.42% |
Pre-tax Return on Net Worth | -86.42% | -15658.38% | 132.36% | 2.12% |
Pre-tax Return on Assets | 30.49% | 44.37% | 42.85% | 4.76% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 7.49% | 9.05% | 10.25% | n.a |
Return on Equity | 0.00% | 0.00% | 100.60% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.91 | 5.30 | 5.30 | n.a |
Accounts Payable Turnover | 6.12 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 42 | 27 | n.a |
Total Asset Turnover | 3.09 | 3.73 | 3.18 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 0.00 | 2.09 | n.a |
Current Liab. to Liab. | 0.38 | 0.27 | 0.34 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $99,209 | $181,110 | $304,506 | n.a |
Interest Coverage | 6.01 | 9.28 | 13.99 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.32 | 0.27 | 0.31 | n.a |
Current Debt/Total Assets | 52% | 27% | 23% | n.a |
Acid Test | 0.74 | 1.11 | 1.89 | n.a |
Sales/Net Worth | 0.00 | 0.00 | 9.82 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Party Fees | 0% | $10,500 | $17,500 | $26,250 | $35,000 | $44,297 | $66,445 | $66,445 | $66,445 | $99,667 | $112,125 | $149,500 | $163,500 |
Other Fees | 0% | $300 | $500 | $750 | $1,000 | $1,266 | $1,898 | $1,898 | $1,898 | $2,848 | $3,204 | $4,271 | $4,671 |
Total Sales | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Ingredients | $7,500 | $12,500 | $18,750 | $25,000 | $31,641 | $47,461 | $47,461 | $47,461 | $71,191 | $80,089 | $106,786 | $116,786 | |
Other Supplies | $540 | $900 | $1,350 | $1,800 | $2,278 | $3,417 | $3,417 | $3,417 | $5,126 | $5,766 | $7,689 | $8,409 | |
Subtotal Direct Cost of Sales | $8,040 | $13,400 | $20,100 | $26,800 | $33,919 | $50,878 | $50,878 | $50,878 | $76,316 | $85,856 | $114,474 | $125,194 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Alan Kirby | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Kim Kirby | 0% | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 |
Part-time cleaner | 0% | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 |
Total People | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
Total Payroll | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
Tax Rate | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Direct Cost of Sales | $8,040 | $13,400 | $20,100 | $26,800 | $33,919 | $50,878 | $50,878 | $50,878 | $76,316 | $85,856 | $114,474 | $125,194 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $8,040 | $13,400 | $20,100 | $26,800 | $33,919 | $50,878 | $50,878 | $50,878 | $76,316 | $85,856 | $114,474 | $125,194 | |
Gross Margin | $2,760 | $4,600 | $6,900 | $9,200 | $11,644 | $17,466 | $17,466 | $17,466 | $26,198 | $29,473 | $39,297 | $42,977 | |
Gross Margin % | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | |
Expenses | |||||||||||||
Payroll | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | |
Sales and Marketing and Other Expenses | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Depreciation | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
Rent | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | |
Utilities | $980 | $1,030 | $1,030 | $1,030 | $1,030 | $980 | $980 | $980 | $1,280 | $1,280 | $1,280 | $1,280 | |
Office Supplies | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Insurance | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accountant | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Lawyer | $500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $500 | |
Bank Charges | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | |
Website Payment Fees | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
Website Hosting & Support | 0% | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 |
Repairs and Maintenance | 15% | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $10,395 | $9,945 | $9,945 | $9,945 | $9,945 | $9,895 | $9,895 | $9,895 | $10,195 | $10,195 | $10,195 | $10,695 | |
Profit Before Interest and Taxes | ($7,635) | ($5,345) | ($3,045) | ($745) | $1,698 | $7,570 | $7,570 | $7,570 | $16,003 | $19,278 | $29,102 | $32,282 | |
EBITDA | ($7,285) | ($4,995) | ($2,695) | ($395) | $2,048 | $7,920 | $7,920 | $7,920 | $16,353 | $19,628 | $29,452 | $32,632 | |
Interest Expense | $1,504 | $1,493 | $1,483 | $1,472 | $1,461 | $1,451 | $1,440 | $1,429 | $1,418 | $1,408 | $1,397 | $1,386 | |
Taxes Incurred | ($2,193) | ($1,641) | ($1,087) | ($532) | $57 | $1,469 | $1,471 | $1,474 | $3,500 | $4,289 | $6,649 | $7,415 | |
Net Profit | ($6,946) | ($5,198) | ($3,441) | ($1,685) | $180 | $4,651 | $4,659 | $4,667 | $11,084 | $13,581 | $21,056 | $23,481 | |
Net Profit/Sales | -64.32% | -28.88% | -12.75% | -4.68% | 0.40% | 6.81% | 6.82% | 6.83% | 10.81% | 11.78% | 13.69% | 13.96% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Subtotal Cash from Operations | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | |
Bill Payments | $480 | $14,790 | $26,201 | $34,869 | $42,144 | $51,001 | $78,542 | $60,501 | $62,351 | $115,990 | $110,789 | $160,756 | |
Subtotal Spent on Operations | $3,314 | $17,624 | $29,034 | $37,703 | $44,977 | $53,834 | $81,375 | $63,334 | $65,184 | $118,824 | $113,622 | $163,589 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $5,154 | $19,464 | $30,874 | $39,543 | $46,817 | $55,674 | $83,215 | $65,174 | $67,024 | $120,664 | $115,462 | $165,429 | |
Net Cash Flow | $5,646 | ($1,464) | ($3,874) | ($3,543) | ($1,254) | $12,669 | ($14,872) | $3,169 | $35,491 | ($5,335) | $38,309 | $2,742 | |
Cash Balance | $39,646 | $38,183 | $34,309 | $30,766 | $29,512 | $42,181 | $27,309 | $30,478 | $65,969 | $60,633 | $98,942 | $101,685 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $34,000 | $39,646 | $38,183 | $34,309 | $30,766 | $29,512 | $42,181 | $27,309 | $30,478 | $65,969 | $60,633 | $98,942 | $101,685 |
Inventory | $9,000 | $8,844 | $14,740 | $22,110 | $29,480 | $37,311 | $55,966 | $55,966 | $55,966 | $83,948 | $94,441 | $125,922 | $137,714 |
Other Current Assets | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
Total Current Assets | $51,000 | $56,490 | $60,923 | $64,419 | $68,246 | $74,822 | $106,146 | $91,274 | $94,444 | $157,917 | $163,075 | $232,864 | $247,399 |
Long-term Assets | |||||||||||||
Long-term Assets | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 |
Accumulated Depreciation | $0 | $350 | $700 | $1,050 | $1,400 | $1,750 | $2,100 | $2,450 | $2,800 | $3,150 | $3,500 | $3,850 | $4,200 |
Total Long-term Assets | $42,000 | $41,650 | $41,300 | $40,950 | $40,600 | $40,250 | $39,900 | $39,550 | $39,200 | $38,850 | $38,500 | $38,150 | $37,800 |
Total Assets | $93,000 | $98,140 | $102,223 | $105,369 | $108,846 | $115,072 | $146,046 | $130,824 | $133,644 | $196,767 | $201,575 | $271,014 | $285,199 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $13,927 | $25,047 | $33,474 | $40,476 | $48,362 | $76,525 | $58,484 | $58,476 | $112,355 | $105,422 | $155,646 | $148,189 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $13,927 | $25,047 | $33,474 | $40,476 | $48,362 | $76,525 | $58,484 | $58,476 | $112,355 | $105,422 | $155,646 | $148,189 |
Long-term Liabilities | $259,708 | $257,868 | $256,028 | $254,188 | $252,348 | $250,508 | $248,668 | $246,828 | $244,988 | $243,148 | $241,308 | $239,468 | $237,628 |
Total Liabilities | $259,708 | $271,795 | $281,075 | $287,662 | $292,824 | $298,870 | $325,193 | $305,312 | $303,464 | $355,503 | $346,730 | $395,114 | $385,817 |
Paid-in Capital | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 |
Retained Earnings | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) |
Earnings | $0 | ($6,946) | ($12,144) | ($15,585) | ($17,270) | ($17,090) | ($12,439) | ($7,780) | ($3,113) | $7,972 | $21,553 | $42,608 | $66,089 |
Total Capital | ($166,708) | ($173,654) | ($178,852) | ($182,293) | ($183,978) | ($183,798) | ($179,147) | ($174,488) | ($169,821) | ($158,736) | ($145,155) | ($124,100) | ($100,619) |
Total Liabilities and Capital | $93,000 | $98,140 | $102,223 | $105,369 | $108,846 | $115,072 | $146,046 | $130,824 | $133,644 | $196,767 | $201,575 | $271,014 | $285,199 |
Net Worth | ($166,708) | ($173,654) | ($178,852) | ($182,293) | ($183,978) | ($183,798) | ($179,147) | ($174,488) | ($169,821) | ($158,736) | ($145,155) | ($124,100) | ($100,619) |
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Browse this list of food business ideas and learn how to develop a business plan for your food industry startup.
Tastes may differ from person to person, but one thing’s for certain: everyone needs to eat.
With so many potential customers and such a wide variety of product offerings, no matter how many food retailers enter the market, there’s always room for one more.
If you’ve decided to get into the food business as a first-time merchant, here are a few ideas to get you started.
Every food business has advantages and disadvantages, so consider what you’ll be able to commit to and choose the food business idea that’s best for you.
To get started, here are 13 ideas for products and services to inspire you.
Food trucks are an especially popular way to get into the food business. Right now, growth in food trucks is outpacing that of traditional restaurants , and it’s not hard to see why.
A food truck business can give a chef the same opportunity they’d get with a restaurant to develop their own unique menu, but with the added benefit of mobility.
Getting customers through the door can be one of the biggest challenges that comes with owning a restaurant, so why not bring the restaurant to your customers?
⭐ Get inspired: The Cheese Bar’s Journey From Food Truck to Seven Figures and Multichannel Success
Ice cream is one of the world’s most beloved deserts and an excellent food business idea. In fact, the ice cream industry is expected to be worth $135.6 billion worldwide by 2029 , meaning the industry is set to become increasingly profitable over the next few years.
Ice cream can be served alongside just about any other dessert and comes in a wide variety of styles, including frozen yogurt, sorbet, gelato, and frozen custard. With endless recipe ideas, ice cream is great for niching.
When University of Washington graduates Ivana Orlovic and William Hubbell developed an edible, egg-free version of cookie dough, they knew they were on to something. Sugar + Spoon creates rich, creamy treats by combining cookie dough and ice cream with a number of toppings and flavors.
Sugar + Spoon maintains a strong online following and sells out of its storefront in Seattle, as well as at pop-up shops, food truck events, and online. It even offers DIY ice cream packs, letting customers combine their favorite flavors into a single purchase.
⭐ Get inspired: How These 4 Pop-Up Shops Went Viral (And How Yours Can Too)
If you’re into a more hands-on personal approach for your food business, then cooking classes may be just what you’re looking for. Teaching can be an extremely rewarding experience, and there’s no shortage of options in how to approach it.
You could offer online courses or in-person classes. You might pre-record your courses and allow students to watch at their convenience, or do live one-night-only events for an online audience.
No matter your skill level, teaching others is a great way to hone your cooking skills and build personal relationships with your audience.
Before her passing in January 2023, 84-year-old Nonna Nerina welcomed an audience into her kitchen in a small village in Italy via online video conferencing. When viewers tune in to Nonna Live , they’re transported directly to an authentic Italian kitchen and taught recipes, by a staff of Nonnas, that have been passed down for generations.
On Nonna Live’s website, customers select a date and time and reserve their spot in a number of online classes. They’re provided a list of ingredients and supplies, and when the time comes, all of the Nonna’s students gather for a live hands-on cooking lesson.
⭐ Get inspired: This 84-Year-Old Grandmother Serves Comfort and Community Through Livestreamed Cooking Classes
If you’ve ever been in sales, you know the skills needed to build a personal relationship with your clients. If you’re looking for one food business idea that offers that chance, then becoming a personal chef might be right up your alley.
Personal chefs are trained cooks hired to provide at-home meals for their clients, who often may have special dietary needs or preferences. They can be employed by individuals, families, or caterers, or for special events.
Coffee is a vital part of many people’s morning routine, so it should come as no surprise that the industry is expected to reach revenues of $166.39 billion by 2029 . Coffee beans are widely available from dropshippers meaning overhead costs can be kept low.
There’s also a small-business advantage for first-time merchants who decide to sell coffee . Since it’s a widely available product, customers tend to value exclusivity when it comes to coffee, meaning they’re more receptive to new brands.
Steeltown Garage is a Hamilton, Ontario–based retailer of premium apparel and specialty coffee. At the start, Steeltown Garage sold graphic tees built around its freewheeling lifestyle brand. As the brand grew, so did its products.
Steeltown Garage now sells a wide range of premium motorcycle-riding gear, grooming products, vintage art, posters, and, of course, coffee. Branding is vital when selling coffee, and Steeltown Garage understands this. Despite all of the products it sells, Steeltown Garage’s collections are harmonized around a brand that resonates with its audience.
⭐ Get inspired: How James Hoffmann Found His Niche and Became the Coffee Expert on YouTube
Meal kits are a type of food delivery business offering pre-portioned ingredients and recipes for creating high-quality dishes at home. They’ve grown increasingly popular over the past couple of years, aiming to combine the convenience of fast food with the quality of at-home cooking.
Meal kits can be sold on a subscription-based model , wherein retailers provide customers with a new meal on a recurring basis. Or you might create a collection of meal kits and sell them à la carte.
The Dough Bros is a wood-fired pizza restaurant operating out of Galway, Ireland. For customers that can’t make it to the restaurant, The Dough Bros offers ready-made pizza kits that come with all the toppings and sauce to make the brand’s signature slices at home.
When it comes to meal kits, large brands may have more name recognition, but what they don’t have is a specialty. The Dough Bros’ branding works because it takes a beloved pizza, enhances it with the meal-kit model, and immediately sets itself apart from larger brands.
⭐ Get inspired: How To Start a Subscription Business: A 2024 Guide
Bakeries are one of the oldest types of food businesses. Baked goods have become a staple of holidays and special events, making them popular year round. Perhaps that’s why the baking industry generates more than $99 billion annually .
Selling baked goods can open a lot of other doors for your brand. You could sell baked goods for specific dietary restrictions, or specialize in something more specific, like bread, cookies, cakes, pastries, or pies.
Katz Gluten Free specializes in baked goods for a wide range of allergies and dietary restrictions that might be harder to find in a grocery store. Katz’s variety is extensive—selling items such as whole wheat bread, cream-filled cupcakes, and apple fritters.
Despite the selection of products, Katz is laser focused when it comes to its branding. Dietary restrictions can make shopping hard, but Katz stands out as a brand because it does everything in its power to make it easy. Katz’s website even has a special “Shop By Allergy” tab that lets visitors quickly and easily filter out any products they might be allergic to.
⭐ Get inspired: How to Write a Bakery Business Plan in 9 Steps
Sauces can be a great product to sell for first-time merchants. Food aficionados are always looking for new tastes to try, so they tend to be more receptive to less familiar brands when it comes to sauces.
On top of this, sauces have a tendency to grow cult followings—think of the popularity of sriracha sauce or the communities built around hot hot sauces. Sauce is versatile. That means if customers grow a taste for yours, they’ll want to try it on everything.
Sauces are a feature of nearly every cuisine. They’re relatively easy to adapt to any dietary restrictions. They can be savory, sweet, spicy, or all three.
And sauces don’t just have to be a feature of dinnertime. Dessert sauces like custard, butterscotch, hot fudge, and fruit-flavored sauces are equally popular.
Based in Thunder Bay, Ontario, Heartbeat Hot Sauce develops, cooks, bottles, and distributes its own signature line of hot sauces. Heartbeat Hot Sauce offers staples like piri piri and Louisiana-style hot sauce, alongside more unique flavor combinations like pineapple and blueberry habanero.
The flavors in Heartbeat’s line of hot sauces hit all the right notes, blending familiarity with novelty. The brand also maintains a strong online relationship with its community on Instagram.
⭐ Get inspired: How Heatonist Became the World’s Top Hot Sauce Website
Chips, nuts, pretzels, popcorn, granola bars, or maybe a mixture of all of them—prepackaged snack products come in limitless varieties. Prepackaged snacks are a staple of both adventurous outdoor excursions and late-night cravings—and nearly everyone has a fondness for them.
The market for savory snacks in North America is expected to reach $139.4 billion in 2024 , meaning there’s a lot of room for new merchants with a unique product. With a little bit of grit and luck, you could even land your snacks in grocery stores.
Based in the United Kingdom, The Snaffling Pig sells all kinds of prepackaged snacks, but its signature is its pork crackling—a chip-esque snack made from dried pork meat and seasonings. The brand also sells nuts, pork rinds, chorizo bites, and even beers and ciders, flavored to compliment its snacks.
What brings these elements together is The Snaffling Pig’s branding, which aims to recreate the flavors of casual pub food, drawing on its own nostalgic memories to create a sense of camaraderie with the brand.
Every parent wants to give their child the best, most nutritious food there is. Why not cater to this huge market? Baby food is one of the easier things to make and sell and can be a great first-time home-based business .
There’s also growth potential with a baby food business. Doctors recommend different types of foods for babies of different ages—starting with formula for newborns, mashed foods after about six months, and, finally, softer solid foods for toddlers.
This opens up a lot of opportunities for cross-marketing and creating repeat buyers of those with growing children. With the global baby food market on track to grow to more than $155 billion by 2032 , there’s lots of new customers on the way.
Fragola is a baby food brand based in Innisfil, Ontario. Fragola offers both one-time orders and baby food subscriptions that offer a new combination of flavors each week.
Fragola’s branding puts a lot of emphasis on nutrition and the freshness of its products. The first page of its order form breaks down the nutritional value of its products, and on-page copy often explores their reasons for selecting certain foods over others.
Fragola understands that it needs to establish trust with its customers right away. Parents are immediately made aware of the care put into selecting the best ingredients, which already helps set it apart from larger brands.
Jams and jellies are a great low-cost business to start for entrepreneurs interested in growing their own fresh produce. At-home jam jarring machines are relatively inexpensive, and growing your own ingredients will add a personal touch to your brand that will resonate with customers.
On top of this, farmers markets are a great place to meet potential customers in person. While the volume of customers might be smaller than online, face-to-face sales opportunities tend to provide more value in terms of customer loyalty and word-of-mouth sales.
Fruits of the Forage is a UK-based retailer of jams, jellies, marmalades, sauces, and other fresh preserves.
For smaller brands, setting yourself apart from your larger competitors is crucial. That’s why Fruits of the Forage bases its branding around the freshness of its ingredients and the championing of local produce, highlighting what makes the brand different.
Organic foods are foods produced using natural fertilizers, as opposed to chemical pesticides. Official standards can vary between organizations and regions, but they all place emphasis on the recycling of resources, ecological balance, and long-term sustainability.
Organic foods have grown incredibly popular in the past decade as the safety of pesticides has become an important concern for a lot of customers. You could sell raw, organic produce or use organic ingredients in your food products.
Socializing over alcoholic beverages is a common pastime. They’re popular year round but still lend themselves well to seasonal promotions, with plenty of opportunities to test out new products.
Like with jams and jellies, selling wine can give you the opportunity to grow your own fresh ingredients, and wine-tasting events can be a great way to establish meaningful customer relationships.
With beer, craft breweries (sometimes called microbreweries) have become increasingly popular in the past couple of years, so beer connoisseurs place a lot of value in exclusivity—something that gives smaller brands an advantage.
Haus is a California-based brand specializing in apéritifs—alcoholic beverages that are rich in flavor, low in alcohol, and meant to be served before a meal. Haus isn’t shy about emphasizing the freshness of its products, using only natural ingredients, like locally sourced fruits, herbs, and botanicals.
Haus also keeps a vibrant community alive via Instagram, where it posts recipes and serving suggestions to keep its audience engaged.
⭐ Get inspired: Why a Retail-First Approach Worked for this Booze-Free Brand
The food business thrives on cross promotion. Any product can be a jumping off point for a more involved brand, but it’s best to start with a singular goal in mind.
For example, your food truck could double as a catering business. You might sell baby food specifically for babies with certain dietary restrictions. Or, like The Snaffling Pig, you could sell a prepackaged snack alongside a complimentary beverage.
We’ve written a more extensive guide on how to start a food business that’s worth checking out if you want to know the ins and outs of the food industry.
For now, here’s a quick overview:
Coming up with your first product can be tricky. There are so many options in the food industry, and it’s never easy knowing which product opportunities are the best. But the first question to ask yourself is: Does the idea excite me?
If the answer is no, then scrap it. Your passion for your own food business fuels its growth. No matter how good an idea may be, it won’t thrive if it’s not something you’re interested in. Once you’ve decided on your idea, it’s time to evaluate it.
There are a number of ways to validate product ideas , but it’s important in the initial stages to make sure that there’s a potential market for your product. You’re going to be investing a lot of time and effort into your business, and it’s important to know that it has potential.
Try meeting directly with potential customers, doing taste tests, exploring the community around your product, researching customer pain points and market demands—anything to gain a deeper understanding of the potential for your idea.
Once you’ve validated your product idea, you’re ready to start crafting your business plan . A business plan is a written document that outlines your business’s products or services, how you’ll earn money, and your financing, staffing, logistics, and other vital details.
It may sound daunting, but a good business plan is crucial to starting yourself off on the right foot. If you’re looking for a breakdown of time-tested techniques used by successful business owners, make sure to check out our business plan template .
Branding is crucial to any business, but it’s especially important in the highly competitive food industry. Your branding will be what sets you apart from your competitors, so it’s important to craft a consistent visual message that sparks the interest of potential customers.
Check out our guide on how to build a brand for an in-depth breakdown of how to find your target audience, learn about their needs and interests, and give your business a personality that resonates with them.
Once you’ve developed your brand, you’re ready to start building your online store . Add your products, create your collections, and customize your theme in a way that harmonizes all the visual elements of your brand.
Once your store is set up, it’s time to start bringing in customers. There are a lot of ways to build an audience—such as organic social media content that engages your niche and paid ads that help widen the audience for your content.
You might consider working with social media influencers. Or maybe your business lends itself well to blog content that would be relevant to your audience. The best marketing strategies can differ based on your branding, audience, product, niche, and a host of other factors specific to your business.
Food is a constantly evolving industry with a wide variety of products, a huge volume of customers, and endless options for scalability—regardless of your level of experience. That makes it a great business opportunity.
Few things are more fulfilling than growing a business in an industry that excites you. For foodies and at-home chefs everywhere, starting a food business is a great chance to make money doing what you love.
Which food business is most profitable.
Any food business can have a high profit margin, but if you’re looking for a low-cost, low-risk food business idea with no overhead, check out our dropshipping guide. Dropshipping is a business model that allows entrepreneurs to start an online business and sell products while working with a third party that manufactures, stores, and ships your items directly to your customers.
There’s no best business for everyone, but on an individual level, it’s best to start a food business you’re passionate about—even if you might not have a high level of experience. New skills can be learned and experience will come with time, but a founder’s passion for their business is crucial to success. Pick the type of business that excites you the most.
Any food can make money, but if you’re unsure if your idea has legs, it’s best to validate your product ideas by meeting directly with potential customers, addressing their pain points, and researching the audience around your product to see if there’s potential.
Different foods sell for different reasons, but the bestselling ones usually either address a common pain point (such as Katz Gluten Free, in the above example) or appeal to customers by combining familiar favorites with an intriguing novelty (such as Sugar + Spoon’s cookie dough cones).
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Food business plan sample.
With the high deficit in food/restaurants to serve a growing urban population, there is great potential for profitability in starting a food /restaurant business. But this business would not just succeed automatically when entered into without any form of planning.
It requires careful planning and organization to enable it succeed.
Hence, the development of a viable food business plan would do much in guiding the business to profitability and stability.
Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.
Read: List of Food Business Name Suggestions
It is in the light of this that this food business plan sample has been developed to guide intending investors interested in this sector to on how to carefully write their business plans following the procedures listed in this article.
This is how a food business plan sample should look like;
SAMPLE FOOD BUSINESS PLANS:
EXECUTIVE SUMMARY Providing quality and hygienic restaurant services to our underserved clients, and communities, Food Haven restaurant LLC provides round the clock restaurant services to its esteemed clients around the Washington DC area, with plans of expanding nationwide. This is based on the understanding that people have different needs and have their varying schedules spread round the clock.
To this end, because the body needs some replenishment of energy after a hectic day’s work, Food Haven restaurant comes to the rescue as it will be providing comprehensive care services to the food needs of the and by extension, the society.
Among the restaurant services to be provided by Food Haven are Mexican dishes, Intercontinental dishes, among other dishes served at our restaurants
MARKET ANALYSIS/TRENDS
Market analysis carried out by Food Haven restaurants have discovered that apart from the desire to eat good food to quench their hunger, there are those clients who’s interest in not to satisfy hunger. In fact, they are not necessarily hungry but are just out to satisfy their curiosity by sampling dishes from other parts of the world. For example, clients who are not Indians might want to have a taste of Indian menu.
This might be because they learnt about it from friends or saw it somewhere such as in a TV program or the internet and want to have a try because they thought it might taste good. Food Haven seeks to provide these services through the hiring of capable hands skilled in a wide array of restaurant services.
OUR TARGET MARKET
Due to the fact that food is one of the basic requirements needed for survival, Food Haven LLC seeks to make these abundantly available in different variants.
However Food Haven restaurants LLC has a certain category of people that makes up its target market and these include visiting tourists, neighbouring businesses, families, and corporate bodies among several other category of targeted clientele.
COMPETITIVE ADVANTAGE
In a market full of innovations and ingenious business ideas, we plan on not being left out of this great business opportunity as we will be providing services that will ensure that we capture a good share of the food/restaurant market.
This we try to achieve through going a step further to make home and office deliveries and also the provision of other outdoor catering services especially at the request of our clients.
SALES AND MARKETING STRATEGY
Food Haven LLC will be adopting flexible marketing methodologies to ensure it stays afloat and catches up with current market innovations in the food industry. Because the industry is constantly changing, coupled with the change in client preferences, we intend adopting a sales and marketing strategy that will capture these areas of choice fluctuations.
Some of the sales and marketing strategies we will be adopting include direct marketing and online marketing to showcase our rich services to potential clients. Also, fliers and banners will be printed, distributed, advertising our services to the general public.
PRICING STRATEGY
The pricing strategy adopted by Food Haven LLC intends to be pocket and customer friendly.
Although certain aspects of our services such as intercontinental dishes are quite expensive as compared with the daily foods being consumed by most Americans, we at Food Haven intend striking a balance between profitability and client satisfaction. Compared to other restaurants offering similar services, our pricing regime will be among the friendliest.
FINANCIAL PROJECTION
The financial projection (profits) envisaged by Food Haven LLC within the next three years includes the following brief representations below;
– First Year $150,000 – Second Year $300,000 – Third Year $770,000
PAYMENT OPTIONS
Food Haven LLC seeks to provide a wide variety of payment options aimed at creating ease in the payment of bills by our esteemed customers. These include almost all the payment platforms such as through cheques, mobile payments, POS options, and of course payment through cash.
However, we seem to add other payment options as soon as they are available to reduce the stress on our clients, as they are most likely to return if they are satisfied with our services.
PUBLICITY AND ADVERTISING STRATEGY
The advert and publicity strategy to be used by Food Haven LLC includes the deployment of ICT tools such as the internet to make our presence felt.
Also, fliers, banners and other advert strategies will be used to showcase our services. In addition, we will be using the local radio in passing across knowledge of our services.
SUSTAINABILITY AND EXPANSION STRATEGY
Food Haven LLC plans to expand from its current location in Washington DC to 50 outlets within this region within the next 6 years. Our long term expansion strategy is to spread our tentacles across the United States with a target of hitting the 200 mark in the number of outlets spread across the United States of America.
This is an example of a food business plan sample and intends to shed light on what a food business plan should contain.
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Updated: May 4, 2024, 4:37pm
Why business plans are vital, get your free simple business plan template, how to write an effective business plan in 6 steps, frequently asked questions.
While taking many forms and serving many purposes, they all have one thing in common: business plans help you establish your goals and define the means for achieving them. Our simple business plan template covers everything you need to consider when launching a side gig, solo operation or small business. By following this step-by-step process, you might even uncover a few alternate routes to success.
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Whether you’re a first-time solopreneur or a seasoned business owner, the planning process challenges you to examine the costs and tasks involved in bringing a product or service to market. The process can also help you spot new income opportunities and hone in on the most profitable business models.
Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. However, if you’re seeking startup funding or partnership opportunities, you’ll need a write a business plan that details market research, operating costs and revenue forecasting. Whichever startup category you fall into, if you’re at square one, our simple business plan template will point you down the right path.
Copy our free simple business plan template so you can fill in the blanks as we explore each element of your business plan. Need help getting your ideas flowing? You’ll also find several startup scenario examples below.
Download free template as .docx
Whether you need a quick-launch overview or an in-depth plan for investors, any business plan should cover the six key elements outlined in our free template and explained below. The main difference in starting a small business versus an investor-funded business is the market research and operational and financial details needed to support the concept.
Start by declaring a “dream statement” for your business. You can call this your executive summary, vision statement or mission. Whatever the name, the first part of your business plan summarizes your idea by answering five questions. Keep it brief, such as an elevator pitch. You’ll expand these answers in the following sections of the simple business plan template.
These answers come easily if you have a solid concept for your business, but don’t worry if you get stuck. Use the rest of your plan template to brainstorm ideas and tactics. You’ll quickly find these answers and possibly new directions as you explore your ideas and options.
This is where you detail your offer, such as selling products, providing services or both, and why anyone would care. That’s the value proposition. Specifically, you’ll expand on your answers to the first and fourth bullets from your mission/vision.
As you complete this section, you might find that exploring value propositions uncovers marketable business opportunities that you hadn’t yet considered. So spend some time brainstorming the possibilities in this section.
For example, a cottage baker startup specializing in gluten-free or keto-friendly products might be a value proposition that certain audiences care deeply about. Plus, you could expand on that value proposition by offering wedding and other special-occasion cakes that incorporate gluten-free, keto-friendly and traditional cake elements that all guests can enjoy.
Here is where you explore bullet point number three, who your business will benefit. Identifying your ideal customer and exploring a broader audience for your goods or services is essential in defining your sales and marketing strategies, plus it helps fine-tune what you offer.
There are many ways to research potential audiences, but a shortcut is to simply identify a problem that people have that your product or service can solve. If you start from the position of being a problem solver, it’s easy to define your audience and describe the wants and needs of your ideal customer for marketing efforts.
Using the cottage baker startup example, a problem people might have is finding fresh-baked gluten-free or keto-friendly sweets. Examining the wants and needs of these people might reveal a target audience that is health-conscious or possibly dealing with health issues and willing to spend more for hard-to-find items.
However, it’s essential to have a customer base that can support your business. You can be too specialized. For example, our baker startup can attract a broader audience and boost revenue by offering a wider selection of traditional baked goods alongside its gluten-free and keto-focused specialties.
Thanks to our internet-driven economy, startups have many revenue opportunities and can connect with target audiences through various channels. Revenue streams and sales channels also serve as marketing vehicles, so you can cover all three in this section.
Revenue Streams
Revenue streams are the many ways you can make money in your business. In your plan template, list how you’ll make money upon launch, plus include ideas for future expansion. The income possibilities just might surprise you.
For example, our cottage baker startup might consider these revenue streams:
Sales Channels
Sales channels put your revenue streams into action. This section also answers the “where will this happen” question in the second bullet of your vision.
The product sales channels for our cottage bakery example can include:
Channels that support other income streams might include:
Nowadays, the line between marketing and sales channels is blurred. Social media outlets, e-books, websites, blogs and videos serve as both marketing tools and income opportunities. Since most are free and those with advertising options are extremely economical, these are ideal marketing outlets for lean startups.
However, many businesses still find value in traditional advertising such as local radio, television, direct mail, newspapers and magazines. You can include these advertising costs in your simple business plan template to help build a marketing plan and budget.
This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and responsibilities, supplier logistics and day-to-day operations. Also, include any certifications or permits needed to launch your enterprise in this section.
Our cottage baker example might use a structure and startup plan such as this:
Click to get started.
Your final task is to list forecasted business startup and ongoing costs and profit projections in your simple business plan template. Thanks to free business tools such as Square and free marketing on social media, lean startups can launch with few upfront costs. In many cases, cost of goods, shipping and packaging, business permits and printing for business cards are your only out-of-pocket expenses.
Cost Forecast
Our cottage baker’s forecasted lean startup costs might include:
Business Need | Startup Cost | Ongoing Cost | Source |
---|---|---|---|
Gross Profit Projections
This helps you determine the retail prices and sales volume required to keep your business running and, hopefully, earn income for yourself. Use product research to spot target retail prices for your goods, then subtract your cost of goods, such as hourly rate, raw goods and supplier costs. The total amount is your gross profit per item or service.
Here are some examples of projected gross profits for our cottage baker:
Product | Retail Price | (Cost) | Gross Profit |
---|---|---|---|
Putting careful thought and detail in a business plan is always beneficial, but don’t get so bogged down in planning that you never hit the start button to launch your business . Also, remember that business plans aren’t set in stone. Markets, audiences and technologies change, and so will your goals and means of achieving them. Think of your business plan as a living document and regularly revisit, expand and restructure it as market opportunities and business growth demand.
You can copy our free business plan template and fill in the blanks or customize it in Google Docs, Microsoft Word or another word processing app. This free business plan template includes the six key elements that any entrepreneur needs to consider when launching a new business.
A simple business plan is a one- to two-page overview covering six key elements that any budding entrepreneur needs to consider when launching a startup. These include your vision or mission, product or service offering, target audience, revenue streams and sales channels, structure and operations, and financial forecasts.
Start with our free business plan template that covers the six essential elements of a startup. Once downloaded, you can edit this document in Google Docs or another word processing app and add new sections or subsections to your plan template to meet your specific business plan needs.
When writing out a business plan, you want to make sure that you cover everything related to your concept for the business, an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.
Krista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and logistics, website platforms, payment systems, side-gig and affiliate income, and multichannel marketing. Krista holds a bachelor's degree in English from The University of Texas at Austin and held senior positions at NASA, a Fortune 100 company, and several online startups.
So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.
Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.
Build your dream business with the help of a high-paying job—browse open jobs on The Muse »
According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.
“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”
Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.
The four main types of business plans are:
Internal business plans, strategic business plans, one-page business plans.
Let's break down each one:
If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.
Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.
Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.
Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.
As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .
Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.
Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).
A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.
Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:
Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?
The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.
Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.
A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.
For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.
How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.
What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.
Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”
A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.
“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”
When you consider the world in 2024, starting a meal prep business could be the smartest business idea you’ve ever had. So many people work long hours, they’re stressed out, and they’ve lost touch with the idea of home cooking with fresh ingredients.
They want delicious, healthy home-style food, but they have no idea where to start.
These are your potential customers and they’re a gold mine. It’s no surprise that demand for prepared meals, either frozen or ready-to-eat, is booming around the world.
According to the FitMenCook blog:
“The meal prep industry shows no signs of slowing, and with projected growth, for years to come, it’s a great market to jump into if you’re considering starting a business.”
The numbers back this up. Meal prep businesses in the USA are projected to show annual revenue around $15.1 billion in 2024 , with a compound annual growth rate (CAGR) of 9.3% from 2020 to 2027.
But a passion for food and cooking is not enough to start a successful meal prep business. Your killer lasagna recipe can only get you so far when it comes to running your own business and delivering cost-effective, delicious meals across town!
We’re here to help you take the first steps towards making your food business dream come true. Let’s go!
This is your first decision, and it’s a critical one. A lot depends on what type of business you want to start. There are two main options:
This involves preparing complete meals in your own commercial kitchen , then delivering them directly to customers. Some things to consider with this model are:
Bowlz is a good example: They deliver ready-to-eat lunches around Zurich, and keep their menu small and focussed so that they can deliver fresh, fast, and cost-effectively.
Meal kit delivery means your customers receive a package containing all the pre-prepped ingredients they need to make their own meal at home , along with a recipe card. This is a popular option for busy people who love the idea of having someone else take care of their meal planning and basic prep, so they can just show up and cook. It’s also great for foodies who like to try out new things.
Some things to consider with this model:
Vancouver-based Fresh Prep , for example, delivers all its kits in reusable coolers , so there are no cardboard boxes. It’s also developed a zero waste kit to cut out single-use plastics as much as possible.
There’s an article by NerdWallet which suggests meal prep workshops as a third option. It might be a good addition to a meal prep business — you could offer in-person workshops as an extra, or do online workshops for very new and inexperienced cooks. This is a very difficult model to scale, though, so won’t discuss this option in much detail.
Now that you’ve decided what kind of meal prep business you want to focus on, it’s time to take the next step — developing a business plan.
Every startup needs a solid business plan , and your meal prep business is no exception. A well thought out business plan will force you to think strategically and find a model that works. It’s also the first step to finding funding.
Here’s how to set about creating a business plan that will set you up for success.
You need solid facts to work with. Answer these questions to get started:
The deeper you go with this kind of research, the greater your chances of success will be. The key is to understand your customers’ pain points and develop personas that capture your market. Here are some examples of personas:
All of these are great niches to occupy — you just need to find the one you can feel passionate about, that also meets a real local need. If you can gear your business model towards solving a client's problems then you’re probably on the right track.
Once you understand your customers, take a long, hard look at all of your competitors. Don’t stop with the big names like Blue Apron and HelloFresh — find out what small, local meal prep businesses are doing in your area. Sample their service, look for the gaps, and try to find an underserved niche you can own. Your chances of success increase dramatically if you can find a niche that you can dominate.
Once you understand your customers and your niche, craft your USP (unique selling proposition). What is going to make you stand out from the crowd? Whatever it is, you need to find an edge, own it and make sure you can deliver on what you promise. Take your time . Remember you only get one shot to make a good first impression on your target audience. Some questions to consider:
Every startup needs to get their legal basics in place. As a small business owner you need to decide:
Other important steps every entrepreneur needs to take:
Delivery is often overlooked when people begin their meal prep business, but it will be one of your biggest costs so it’s critical to your success. Some considerations:
There’s more about how to streamline your food delivery process, including the importance of route optimization , in the section on scaling your business further down in this article.
The final part of your business plan is always the money , (honey).
First of all, what are your startup costs likely to be? Consider:
We highly recommend working with a small business adviser or accountant to help with your financial planning. Don’t be afraid to ask silly questions — this can be a steep learning curve, but the better you understand your financials, the higher your chances of success.
💡 Check out our article on writing a business plan for a delivery service for more details, and a free template to help you get started.
Like most businesses in the digital economy, your meal prep business will live or die on the quality of your marketing strategy . Building a strong online presence is patient work that really pays off when you get it right. It doesn’t have to cost a lot and can help you build up exactly the kind of customer base you need.
Here are five steps to building a marketing machine that will consistently bring in new business:
Your website should turn visitors into customers by clearly showing why your meal prep service is the best choice:.
Luckily you don’t have to build everything from scratch. There are plenty of e-commerce site building tools that include shopfronts, ordering and payment tools. Check out our review of the best 11 platforms for small businesses for more details.
SEO helps people find your service on Google and other search engines. It can appear very scary and technical at first, but don’t let the buzzwords fool you! Read up on the basics , and then start by following some simple ground rules:
Use social media to connect with customers . Depending on your audience, there are lots of ways:
Used well, social media lets you build relationships with customers, turning them into fans who recommend your service.
Send emails that keep customers coming back :
Monitor how many people open and click your emails to make them better over time.
Reward customers for spreading the word. Give them discounts when they bring in new customers. For loyal customers, offer points for each order that add up to free meals. Surprise them with perks like free delivery. These programs keep customers ordering from you and help bring in new business.
Chances are you’re going to start off small in your home kitchen while you figure everything out. That makes perfect sense. Costs are low, it fits into your lifestyle, and you know where everything is (and if it works). It won’t take long before you get a real sense of whether this is going to work or not.
But as you grow, so will the demands on your workspace. Here are some things to plan for.
At some point, your meal prep business is going to need a commercial kitchen and a dedicated staff if it’s going to be sustainable.
What should you be looking for?
But having the right tools is just the start; how you use them matters most. Set up your kitchen with clear areas for prepping, cooking, packaging, and sending out orders. Create a smooth, one-way flow from raw ingredients to finished, healthy meals, and make sure everything has its designated spot.
Whether you’re flying solo or working with a friend, most people start out with the owner(s) doing everything. You set the standard, you learn every aspect of the business and figure out what works and what’s not worth doing.
But eventually, if this is working, you’re going to need to hire employees . It’s important to find staff who are passionate and work well under pressure. Look for experience, but don’t ignore those who are eager to learn and enthusiastic. Good communication is key in a fast-paced, busy kitchen. Make sure you hold regular team meetings to keep everyone on the same page and be open to new ideas.
By focusing on a smart layout, reliable equipment, a streamlined workflow, and a strong team, you're setting up your kitchen for success. It's not just about cooking; it's about creating a system that delivers tasty meals quickly and consistently .
Your food delivery system is the lifeline between your kitchen and your customers' tables.
If you’re not handling your deliveries in-house, then partnering with reliable delivery service s is crucial; find a provider with a track record of punctuality and care in handling food orders. These partnerships should feel like extensions of your own team, they share your commitment to customer satisfaction.
When evaluating potential partners, prioritize those offering real-time tracking, temperature-controlled vehicles, and comprehensive insurance coverage.
The secret weapon of successful food delivery companies? Route optimization to lower the cost of each delivery and ensure a five-star customer experience, with fast turnaround time and live tracking.
For example, Greenhouse Juice uses Routific to optimize their delivery routes so they can get their fresh-pressed organic juices to customers as fast and fresh as possible. Their logistics manager Brian Zaffuto says:
“Depending on the time they order, there are some instances where customers get their orders even faster than Amazon Prime.”
Getting your packaging right is another crucial factor. Not only should it be well-branded so that people recognize where the food is from, but it needs to be robust enough to protect the food in transit, able to keep it warm, and made from sustainable materials.
Packaging can do so much to improve your branding and help with dietary requirements. Think about color-coding for different diets, make sure your labeling is clear and informative (e.g CONTAINS NUTS), consider separate compartments within the packaging… the list goes on.
A final note on packaging: the best delivery companies ensure that they pack their orders into the vehicle in such a way that it streamlines the delivery process. The last thing you want is your driver going through each and every package trying to find the right one for the right customer. That’s when errors occur.
Before we wrap up this guide to starting your own meal prep business, it makes sense to take a look at what’s coming down the pipeline in the world of online meals. Technology is likely to make a dramatic impact on meal prep in ways big and small.
If you can get this right, and maintain your passion for making beautiful, healthy food, then you’re in the right industry.
Success in the meal prep delivery business hinges on a delicate balance of culinary creativity, operational efficiency, and customer-centric strategies. By focusing on swift, economical delivery without compromising food quality, you position your business at the forefront of a rapidly evolving market. Remember, your journey as a food service entrepreneur will be challenging, but the rewards—both personal and financial—can be substantial.
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Starting a food business, running a food business, food safety toolkit, food recalls.
Importing food and beverages, exporting food and beverages.
Food monitoring and surveillance, food safety codes and standards, food safety insights, emerging risks, and current issues bulletin, world food safety day.
How to start and run a food business: learn how to register, verify your business, and manage risks. Read about food safety, food recalls, and requirements for food and beverage production, testing, storing, and transporting.
Use a food control plan for making or selling higher-risk food
How to do a simulated or mock food recall
Register a food or beverage business
Exporting food made from animal products? Check OMARs by country/market
Find out how we look after the safety and suitability of New Zealand food
A tool to find out the food safety rules that apply to your business. Use it to find the right plan or programme, where to register, and who can verify
Getting your food business started, hiring a food consultant, how to register
Food control plans, national programmes, risk management programmes, verifying your business
Videos, posters, templates, and staff training resources to help meet food safety rules
Recalled food products list, develop your plan, how to do a recall
How to label what's in your food for retail sale, food sold to caterers, and food sold to other businesses
Information for registration authorities, verifiers, evaluators, and food safety officers
Operators, businesses, and individuals that are registered, recognised, approved, or listed under laws administered by MPI
Food Act 2014, Wine Act 2003, Animal Products Act 1999, Agricultural Compounds and Veterinary Medicines Act 1997
Avoid foodborne illness during floods, storms, power cuts, and earthquakes
How to import food products, including meat, dairy, grains, seeds, wine, and beverages
How to meet the standards of more than 200 export markets
Getting started, yoghurt, ice cream, cheese, liquid milk, and raw milk products, and monitoring and testing
Iodine and folic acid fortification of bread and bread products
Mānuka honey, managing tutin contamination, RMPs for honey, industry organisations
Primary and secondary meat processing, dual operator butchers, rendering, homekill and wild meat
Fish and seafood harvest, processing, and sale, sea and land-based processing, aquaculture, bivalve molluscan shellfish
Wine standards management plans (WSMP), supplying grapes, labelling requirements, laboratory testing, verifying winemakers
Primary and secondary poultry processing, poultry farming, Whole Flock Health Scheme, egg production, RMPs
Risk management programmes (RMP), regulated control schemes (RCS), transporting and storing animal products for export
Using approved agents in dairy, meat, non-dairy animal, and seafood processing
Human health surveillance, managing foodborne risks, food science research, food risk assessment
National Chemical Contaminants, National Chemical Residues, and Food Residues Survey programmes
Codes of Practice, Hazard Analysis and Critical Control Point, good operating practice, hazard data sheets, regulated control schemes
A fortnightly bulletin on emerging food safety risks and issues
About the day, getting involved, sharing messages
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Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.
A financial advisor is a catch-all term that includes financial planners and investment advisors. Most online advisors offer investment management — whether it's carried out by a human or a sophisticated computer algorithm — and financial planning services or tools.
The main types of online financial advisors are:
Online financial advisors allow you to ditch the in-person hassle and access expert financial guidance from your phone or home computer. Online financial advisors leverage investment technology and generally low-cost compared to traditional in-person consultants.
Not only does it make investing more affordable for many individuals, but clients can more easily adjust and monitor their investments on their own time. Robo-advisor and hybrid online advisors typically offer online dashboards and tools for convenient managing and monitoring.
For this list, we didn't consider online advisors that match clients and advisors for comprehensive financial planning services, such as Zoe Financial or Facet Wealth . Instead, we focused on tech-driven firms where you can access an automated and personalized portfolio and consult a professional for advice when needed.
Here are our top picks for the best online financial advisors as picked by Business Insider editors in 2024.
SoFi Automated Investing supports individual investment accounts, joint accounts, traditional IRAs, Roth IRAs, SEP IRAs, and 401(k) rollovers.
SoFi Invest is one of the best investment apps and the best investment apps for beginners. It's a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account, and assets like cryptocurrencies.
SoFi Automated Investing offers individual and joint taxable brokerage accounts , traditional IRA, Roth IRA, and SEP IRA.
SoFi stands out for its lack of advisory fees, free one-on-one consultations with CFPs, portfolio diversity, and goal-planning features. SoFi builds a personalized investment portfolio based on your risk tolerance, goals, and time horizon. Additional SoFi membership perks include loan discounts and career counseling.
What to look out for: SoFi doesn't have tax-loss harvesting features and limited portfolio diversity.
SoFi Invest review
Betterment offers individual or joint accounts, IRAs, trust accounts, and cash reserve or checking accounts.
$0 to open, $10 to start investing ($100,000 for premium plan)
$4 per month (or 0.25%/year) for digital plan; 0.40%/ year for premium plan; 1%/year for crypto portfolios
Betterment is best for hands-off investors who want to take advantage of professionally built, personalized ETF and cryptocurrency portfolios. The platform offers CFP access, so it could suit those in search of additional guidance from human advisors.
Betterment Investing offers individual and joint taxable brokerage, traditional IRA, Roth IRA, SEP IRA, inherited IRA, and trust.
What stands out: Betterment is a robust trading platform offering premium plans with unlimited access to CFPs through phone or email. Investors can use the platform's goal-setting feature, ESG investing, automatic rebalancing, and easy-to-use financial dashboard.
What to look out for: Accounts with a $100,000 balance can upgrade to get advisor access, but the annual fee increases from 0.25% (an industry low) to 0.40%
Betterment review
Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus.
$1 ($500 for automated investing)
$0 for stock trades. 0.25% for automated investing (0.06% to 0.13% for fund fees)
Wealthfront is one of the best robo-advisor options if you're in search of low-cost automated portfolio management, and one of the best socially responsible investing apps for features like tax-loss harvesting, US direct indexing, and crypto trusts.
Wealthfront Investing offers individual and joint taxable brokerage, traditional IRA, Roth IRA, SEP IRA, trust, and 529 savings plan .
Wealthfront is one of the best online financial advisors for college education savings and cryptocurrency trusts. You can borrow up to 30% of your investment balance at a low interest rate with a portfolio line of credit. Wealthfront also offers personalized recommendations with smart financial planning software.
What to look out for: On-staff financial advisors don't offer personalized advice
Wealthfront review
Ellevest offers two investing portfolios to fit your needs.
$1 - $240 (varies by portfolio)
$54 - $97 annually; $5 or $9/month
Ellevest is one of the best robo-advisors for goal-focused investing. It could be a good fit if you want automated investing and retirement accounts.
Ellevest offers individual taxable brokerage, traditional IRA, Roth IRA, and SEP IRA (all held at Folio Investments).
Ellevest is a comprehensive financial advisor and trading platform built around women's unique needs and challenges. Investors get access to an extensive library of content and advisor-led workshops. Additionally, Ellevest offers a socially responsible investment portfolio and monthly progress reports.
What to look out for: Financial coaching costs extra (but members get 30%- 50% off). Access to retirement account management requires an upgrade.
Ellevest review
Ameriprise Financial Services has been operating for 130 years Ameriprise Financial Services is licensed in all 50 states but only has 10 physical locations throughout the US; it's currently headquartered in Minneapolis, Minnesota
Varies by account
$500 annual advisory fee, 2% AUM
Ameriprise Financial Services is a brokerage and financial advisory firm best for experienced, passive investors interested in using the site's financial planning services, wealth management tools, and fiduciary advisor access.
Ameriprise Financial Investments offers three managed account options that can be opened as an individual brokerage account, traditional IRAs, Roth IRAs, Simple IRAs, SEP IRAs, 401(k)s, 403(b)s, 529 plans, and Coverdell education savings accounts (CESA).
Ameriprise Financial Investments is one of the largest registered investment advisors in the US and is best for experienced investors looking for advanced charting and investing features. You'll get access to fiduciary financial advisors for consultations or account management.
What to look out for: Ameriprise 's managed account fees are high, and it has a complex fee structure.
Ameriprise Financial Services review
Financial advisors providing financial advice often charge by the hour, typically between $100 to $300. Advisors creating a comprehensive financial plan tend to charge a flat rate between $1,000 and $3,000.
If you hire an advisor to manage your investment portfolio, you'll be charged a percentage of your account balance, typically between 1% and 3% annually. In comparison, that's much higher than the fees that the best robo-advisors charge; you get the added benefit of building a relationship with a trusted source who can adjust your strategy as needed, provide personal recommendations, and answer questions when they arise.
The best online financial advisor for you depends on your goals, risk tolerance, investments, and time horizon. If you're a new investor interested in passive investing, an online robo-advisor is likely a good place to start. On the other hand, if you're looking for professional insight and a customized financial plan, you're better off with access to a human advisor through phone or video calls.
You can also meet with an expert in person for financial guidance. So if you prefer to meet face-to-face, here are some tools to find some in your area:
Online financial advisors are generally trustworthy. The best advisors follow the fiduciary rule, meaning they operate in their clients' best interest and are fee-only. This means client fees are their only compensation, and they don't earn a commission when they invest in certain funds or buy financial products.
Not everyone needs a robo-advisor, but beginners or passive investors looking for a hands-off approach to stock trading may prefer how cost-effective and convenient robo-advisors are. Affordable financial advisors can be hard to come by, so robo-advisors are a great alternative for many people. However, a financial advisor may be better if you need specific advice on your finances or investment strategy or if you're too overwhelmed or confused by your money to plan for retirement or invest in the stock market.
The cost of an online financial advisor varies from platform to platform and advisor to advisor. The cost largely depends on the services, licensing, account balance, and complexity. Robo-advisors typically charge lower fees than human advisors.
We Reviewed the best online financial advisors using Business Insider's methodology for rating investment platforms . We compared a long list of Registered Investment advisors (RIAs), considering fees, investment selection, access, ethics, and customer service. The best online advisors have top marks in all five categories. Investment platforms are given a rating between 0 and 5.
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Supreme court strikes down chevron , curtailing power of federal agencies.
This article was updated on June 28 at 3:46 p.m.
In a major ruling, the Supreme Court on Friday cut back sharply on the power of federal agencies to interpret the laws they administer and ruled that courts should rely on their own interpretion of ambiguous laws. The decision will likely have far-reaching effects across the country, from environmental regulation to healthcare costs.
By a vote of 6-3, the justices overruled their landmark 1984 decision in Chevron v. Natural Resources Defense Council , which gave rise to the doctrine known as the Chevron doctrine. Under that doctrine, if Congress has not directly addressed the question at the center of a dispute, a court was required to uphold the agency’s interpretation of the statute as long as it was reasonable. But in a 35-page ruling by Chief Justice John Roberts, the justices rejected that doctrine, calling it “fundamentally misguided.”
Justice Elena Kagan dissented, in an opinion joined by Justices Sonia Sotomayor and Ketanji Brown Jackson. Kagan predicted that Friday’s ruling “will cause a massive shock to the legal system.”
When the Supreme Court first issued its decision in the Chevron case more than 40 years ago, the decision was not necessarily regarded as a particularly consequential one. But in the years since then, it became one of the most important rulings on federal administrative law, cited by federal courts more than 18,000 times.
Although the Chevron decision – which upheld the Reagan-era Environmental Protection Agency’s interpretation of the Clean Air Act that eased regulation of emissions – was generally hailed by conservatives at the time, the ruling eventually became a target for those seeking to curtail the administrative state, who argued that courts, rather than federal agencies, should say what the law means. The justices had rebuffed earlier requests (including by one of the same lawyers who argued one of the cases here) to consider overruling Chevron before they agreed last year to take up a pair of challenges to a rule issued by the National Marine Fisheries Service. The agency had required the herring industry to pay for the costs, estimated at $710 per day, associated with carrying observers on board their vessels to collect data about their catches and monitor for overfishing.
The agency stopped the monitoring in 2023 because of a lack of funding. While the program was in effect, the agency reimbursed fishermen for the costs of the observers.
After two federal courts of appeals rebuffed challenges to the rules, two sets of commercial fishing companies came to the Supreme Court, asking the justices to weigh in.
The justices took up their appeals, agreeing to address only the Chevron question in Relentless v. Department of Commerce and Loper Bright Enterprises v. Raimondo . (Justice Ketanji Brown Jackson dissented in the Relentless case but was recused from the Loper-Bright case, presumably because she had heard oral argument in the case while she was still a judge on the U.S. Court of Appeals for the District of Columbia Circuit.)
Chevron deference, Roberts explained in his opinion for the court on Friday, is inconsistent with the Administrative Procedure Act, a federal law that sets out the procedures that federal agencies must follow as well as instructions for courts to review actions by those agencies. The APA, Roberts noted, directs courts to “decide legal questions by applying their own judgment” and therefore “makes clear that agency interpretations of statutes — like agency interpretations of the Constitution — are not entitled to deference. Under the APA,” Roberts concluded, “it thus remains the responsibility of the court to decide whether the law means what the agency says.”
Roberts rejected any suggestion that agencies, rather than courts, are better suited to determine what ambiguities in a federal law might mean. Even when those ambiguities involve technical or scientific questions that fall within an agency’s area of expertise, Roberts emphasized, “Congress expects courts to handle technical statutory questions” – and courts also have the benefit of briefing from the parties and “friends of the court.”
Moreover, Roberts observed, even if courts should not defer to an agency’s interpretation of an ambiguous statute that it administers, it can consider that interpretation when it falls within the agency’s purview, a doctrine known as Skidmore deference.
Stare decisis – the principle that courts should generally adhere to their past cases – does not provide a reason to uphold the Chevron doctrine, Roberts continued. Roberts characterized the doctrine as “unworkable,” one of the criteria for overruling prior precedent, because it is so difficult to determine whether a statute is indeed ambiguous.
And because of the Supreme Court’s “constant tinkering with” the doctrine, along with its failure to rely on the doctrine in eight years, there is no reason for anyone to rely on Chevron . To the contrary, Roberts suggested, the Chevron doctrine “allows agencies to change course even when Congress has given them no power to do so.”
Roberts indicated that the court’s decision on Friday would not require earlier cases that relied on Chevron to be overturned. “Mere reliance on Chevron cannot constitute a ‘special justification’ for overruling” a decision upholding agency action, “because to say a precedent relied on Chevron is, at best, just an argument that the precedent was wrongly decided” – which is not enough, standing along, to overrule the case.
The Supreme Court is expected to rule on Monday on when the statute of limitations to challenge agency action begins to run. The federal government has argued in that case, Corner Post v. Federal Reserve , that if the challenger prevails, it would open the door for a wide range of “belated challenges to agency regulation.”
Justice Clarence Thomas penned a brief concurring opinion in which he emphasized that the Chevron doctrine was inconsistent not only with the Administrative Procedure Act but also with the Constitution’s division of power among the three branches of government. The Chevron doctrine, he argued, requires judges to give up their constitutional power to exercise their independent judgment, and it allows the executive branch to “exercise powers not given to it.”
Justice Neil Gorsuch filed a longer (33-page) concurring opinion in which he emphasized that “[t]oday, the Court places a tombstone on Chevron no one can miss. In doing so, the Court returns judges to interpretative rules that have guided federal courts since the Nation’s founding.” He sought to downplay the impact of Friday’s ruling, contending that “all today’s decision means is that, going forward, federal courts will do exactly as this Court has since 2016, exactly as it did before the mid-1980s, and exactly as it had done since the founding: resolve cases and controversies without any systemic bias in the government’s favor.”
Kagan, who read a summary of her dissent from the bench, was sharply critical of the decision to overrule the Chevron doctrine. Congress often enacts regulatory laws that contain ambiguities and gaps, she observed, which agencies must then interpret. The question, as she framed it, is “[w]ho decides which of the possible readings” of those laws should prevail?
For 40 years, she stressed, the answer to that question has generally been “the agency’s,” with good reason: Agencies are more likely to have the technical and scientific expertise to make such decisions. She emphasized the deep roots that Chevron has had in the U.S. legal system for decades. “It has been applied in thousands of judicial decisions. It has become part of the warp and woof of modern government, supporting regulatory efforts of all kinds — to name a few, keeping air and water clean, food and drugs safe, and financial markets honest.”
By overruling the Chevron doctrine, Kagan concluded, the court has created a “jolt to the legal system.”
Kagan also pushed back against the majority’s suggestion that overruling the Chevron doctrine would introduce clarity into judicial review of agency interpretations. Noting the majority’s assurances that agency interpretations may be entitled to “respect” going forward, she observed that “[i]f the majority thinks that the same judges who argue today about where ‘ambiguity’ resides are not going to argue tomorrow about what ‘respect’ requires, I fear it will be gravely disappointed.”
Similarly, she questioned the majority’s assertion that Friday’s decision would not call into question decisions that relied on the Chevron doctrine to uphold agency action. “Courts motivated to overrule an old Chevron -based decision can always come up with something to label a ‘special justification,’” she posited. “All a court need do is look to today’s opinion to see how it is done.”
But more broadly, Kagan rebuked her colleagues in the majority for what she characterized as a judicial power grab. She lamented that, by overruling Chevron , the court had, in “one fell swoop,” given “itself exclusive power over every open issue — no matter how expertise-driven or policy-laden — involving the meaning of regulatory law.”
Roman Martinez, who argued the case on behalf of one of the fishing companies, applauded the decision. “By ending Chevron deference,” he said in a statement, “the Court has taken a major step to preserve the separation of powers and shut down unlawful agency overreach. Going forward, judges will be charged with interpreting the law faithfully, impartially, and independently, without deference to the government. This is a win for individual liberty and the Constitution,”
But Kym Meyer, the litigation director for the Southern Environmental Law Center, decried the ruling in a statement. “[T]he Supreme Court today says individual judges around the country should decide the best reading of a statute. That is a recipe for chaos, as hundreds of federal judges — who lack the expertise of agency personnel — are certain to reach inconsistent results on the meaning of federal laws as applied to complex, technical issues.”
Friday’s ruling came in one of three cases during the 2023-24 term seeking to curtail the power of federal agencies – a conservative effort sometimes dubbed the “war on the administrative state.” In October, the court heard arguments in a challenge to the constitutionality of the mechanism used to fund the consumer watchdog Consumer Financial Protection Bureau. Last month the court upheld the CFPB’s funding by a 7-2 vote. And on Thursday, the justices pared back the power of the Securities and Exchange Commission and other administrative agencies, holding that the SEC cannot continue to use in-house proceedings to impose fines in securities fraud cases.
The fishermen in both cases were represented at no cost by conservative legal groups, the Cause of Action Institute and the New Civil Liberties Alliance, linked to funding from billionaire and longtime anti-regulation advocate Charles Koch .
This article was originally published at Howe on the Court .
Posted in Featured , Merits Cases
Cases: Loper Bright Enterprises v. Raimondo , Relentless, Inc. v. Department of Commerce
Recommended Citation: Amy Howe, Supreme Court strikes down Chevron , curtailing power of federal agencies , SCOTUSblog (Jun. 28, 2024, 12:37 PM), https://www.scotusblog.com/2024/06/supreme-court-strikes-down-chevron-curtailing-power-of-federal-agencies/
COMMENTS
The breakout of the funding is below: Restaurant Build-Out and Design - $100,000. Kitchen supplies and equipment - $100,000. Opening inventory - $25,000. Working capital (to include 3 months of overhead expenses) - $25,000. Marketing (advertising agency) - $25,000.
The food and beverage industry includes all businesses involved in the production, distribution, and sale of food and drinks. The global food and drink market is expected to grow at an annual rate of 11.9%, reaching a market volume of $3.8 billion by 2027. This increase sharply contrasts the declining industry performance over the last three years.
Free Download: Sample Food and Beverage Business Plan Templates. The food and beverage sector is booming. Restaurant openings rose 10% in 2023 compared to 2022 — even higher than in pre-pandemic years. From fine dining to food trucks, farmers to brewers, and wholesalers to coffee makers, there are opportunities across the food and beverage ...
6. Restaurant design. The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don't have professional mock-ups of your restaurant rendered, that's fine. Instead, put together a mood board to get your vision across.
Sample Business Plans for Food Industry 1. Charcuterie Business Plan. Charcuterie is a display of prepared meats paired with cheeses and plain vegetables on a traditional board. Charcuterie is the culinary art of preparing meat products such as bacon, salami, ham, sausage, terrines, galantines, ballotines, pâtés, and confit professionally.
5) Menu. Every restaurant needs a good menu, and this is the section within your restaurant business plan that you describe the food you'll serve in as much detail as possible. You may not have your menu design complete, but you'll likely have at least a handful of dishes that serve as the foundation of your offerings.
When writing a restaurant business plan, include an executive summary, a detailed restaurant description, market analysis research, a sample menu, a breakdown of your business structure, the design and location of your restaurant, your planned takeout and delivery options, your marketing strategy, and your financial projections.
Your restaurant business plan company overview should include: Purpose: The type of restaurant you're opening (fine dining, fast-casual, pop-up, etc.), type of food you're serving, goals you ...
Small Restaurant Business Plan. Bistro Locale offers an intimate and authentic dining experience by serving fresh, seasonal dishes inspired by local flavors and ingredients. With its warm, inviting atmosphere and exceptional customer service, it provides a unique destination for food lovers seeking a local, high-quality dining experience. You ...
A business plan is an essential tool for any entrepreneur looking to start a food and beverage business. It outlines the goals and strategies for your company, and serves as a roadmap for success. In this guide, we will walk you through the process of creating a business plan for your food and beverage business, covering everything from market ...
Our food and beverage industry business plan examples are curated especially for restaurateurs, café owners, food truck entrepreneurs, and beverage innovators. Each plan has been meticulously developed to cover key aspects such as industry analysis, marketing, branding, operations, and financial planning. Tailored to meet the unique challenges ...
The executive summary of a food business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which you will present in full in the rest of your business plan. Start with a one-line description of your food company. Provide a short summary of the key points in each section of your business plan ...
Whether planning to open a small food truck or an expensive fine-dine restaurant, you'll do great as long as you serve good food and have a solid business plan. This library of food, beverage, and restaurant business plan examples here can inspire and guide you as you begin to plan your business. So, we got you covered on that part.
Step 1: Ideation and Market Positioning. A great food business starts with a compelling concept that stands out in the food service industry. It's about identifying a unique angle or niche - whether it's a focus on health-conscious meals, ethnic cuisines, or innovative food products.
The kitchen is the most expensive part of a restaurant's total cost. And every square foot taken up by cooking space is a square foot that can't hold customers. Industry wisdom states that a kitchen should be between 25% and 30% of the total restaurant space—including storage. So you have to plan your kitchen as efficiently as possible.
A business plan is a detailed blueprint for the activities needed to establish a business (i.e. the details of a product or service, the market for that product or service, and the management of the business providing that product or service). A business plan is also the 'yardstick' by which a business owner measures success in meeting ...
2. Company Description. Use this section of your food truck business plan to explain the details of your company. Describe your food truck business and convey how it will be a valuable addition to the existing market. Essentially, this is the section where you can expand upon the topics you briefly mentioned in the executive summary.
An example of a food truck business plan is a great resource to draw upon when creating your own business plan to ensure that all the key elements are included in your document. Below is an example food truck business plan to help you see what one should look like. It can provide a good starting point for writing a business plan for your food ...
A food business plan is the kind of business plan that is commonly used in the food industry. However, a food business plan is a generic type and consists of a lot of subtopics such as a fast-food business plan, catering business plan, food truck business plan, etc. Moreover, a business plan is one of the keys to a successful business because ...
The start-up expenses include: Rent expenses include a deposit and rent for one month at $28.75 per square foot for 1,854 square feet, in the total amount of $5,182. Utilities expenses for one month. Insurance deposit and first month. Sales & Marketing expenses including stationery, brochures, outdoor signage.
Baby food. Homemade jams and jellies. Organic foods. Wine, beer, and spirits. Every food business has advantages and disadvantages, so consider what you'll be able to commit to and choose the food business idea that's best for you. To get started, here are 13 ideas for products and services to inspire you. 1.
food business plan sample With the high deficit in food/restaurants to serve a growing urban population, there is great potential for profitability in starting a food /restaurant business. But this business would not just succeed automatically when entered into without any form of planning.
This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and ...
A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you'll make money). A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage ...
Getting all your ingredients pre-measured in a meal kit, with a recipe included, is a big advantage for busy home cooks. 2. Meal kits. Meal kit delivery means your customers receive a package containing all the pre-prepped ingredients they need to make their own meal at home, along with a recipe card.This is a popular option for busy people who love the idea of having someone else take care of ...
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Here are our top picks for the best online financial advisors as picked by Business Insider editors in 2024. ... Advisors creating a comprehensive financial plan tend to charge a flat rate between ...
The following plan for a completely fictional business is used for a monthly entrepreneur workshop at Oklahoma State University's Food & Agricultural Products Center, entitled "Food Business Basics: A Guide to Starting Your Own Food Business.". This mock business plan focuses on a whipped topping business, but the format is appropriate ...
This article was updated on June 28 at 3:46 p.m. In a major ruling, the Supreme Court on Friday cut back sharply on the power of federal agencies to interpret the laws they administer and ruled that courts should rely on their own interpretion of ambiguous laws. The decision will likely have far-