Naked Pizza Business Plan
Section 1: Business Profile
My business is a franchised branch of Naked Pizza chain of fast food outlets which will specialize in providing healthier versions of fast food pizza. It will be located in XXX City in the state of XXX at the following address: XXXXX (Insert city, state, and address). It is a social media based company that will specialize in selling quality pizza. This is why my business plan will largely rely on using social media to promote my healthier version of popular fast food.
I will specialize in selling real fast foods made from well-known natural ingredients in an effort to change the nutritional profile of American fast food. My objective for providing natural rather than processed fast food will be to demonstrate that pizza should not necessarily be the cause for obesity and chronic illnesses but the solution to this national problem. I will also provide carry out and delivery services to my customers. The business will be registered in the social media sites like Tweeter with forums discussing food related problems like obesity to create awareness of the nutritious value of my products.
Targeted market and consumers
Due to the healthy nature of my version of fast food, Naked Pizza will target customers from a cross section of health conscious consumers of all ages, gender, and race. The customers will be attracted to my products by their natural ingredients as opposed to other fast food outlets selling pizza made from processed ingredients. This category of customers is expected to include men and women in their late thirties to middle age who are conscious of what they eat. The use of social media will draw in another category of customers who are mainly youths of either gender aged between twelve to mid thirties who are ardent users of the internet and frequent visitors to social networking sites like twitter and Facebook.
The third category of customers will be family groups since my healthy versions of fast food will be friendly to each member of a family unit from the parents to their youngest child. The price of my fast food will be adjusted to accommodate customers of both the high and middle income levels. Professionals in both the white and blue collar jobs will afford to have a bite of my healthy food. An outlet specializing in my kind of fast food will be relatively new in this area and is this expected to grow in time as people realize the nutritional value of my products through the rapidly growing social media. The frequency with which my customers will buy my product will, expectedly, increase as they realize the full value in terms of processing and ingredients of my products.
Growth trends in the business
As the world becomes more and more aware of the growing epidemic of obesity and chronic illnesses such as hypertension and cardiac problems brought about by the kind of diet we eat, most people in the neighborhood of my business will realize the value of eating highly nutritious food like mine. The trend in the pizza business shows that other leading outlets are gradually realizing the same thing and have even started repositioning the making of pizza in the way health conscious Americans want to eat. This emerging trend shows that the market for naturally made pizza is expected to grow as people discard the old processed pizza. The growth in the social media is also another factor to consider. With millions signing in to twitter and Facebook everyday, more people in the neighborhood of my business will become aware of what we do. The ever expanding social media will provide a high growth in this industry by being visible in every type of online gadget such as phones, laptops, and computers in offices and other businesses. Therefore with the growth in the Information Technology, the fast food via social media industry will grow at the same rate.
Pricing
My products will be 100% natural which will mean my production costs will be higher than those selling pizza made from processed ingredients. The price for my pizza will therefore be slightly higher than the competition since I shall emphasize on quality rather than quantity.
My products will compete in the market based on quality rather than price. I shall therefore concentrate on a specific niche of customers who are conscious of nutritional value of what they eat. My customers will be the kind of people who read the price label of an item not to check on its price but the nutritional value of its ingredients.
Work experience related to the business
I have previously worked in the food processing industry and have a wide experience in internet marketing using the social media like Tweeter and Facebook.
Business organization
The business will be a joint venture with one or two partners. This will be necessary in acquisition of the necessary capital required to set it up as well as in acquiring expertise in fields I am not well conversant with.
Professional consultants
(List three names of recognized experts in your area)
Section 2. Marketing
Marketing Plan
Naked Pizza will be built around the belief that healthy eating can have significant effects on its customer’s health and the environment too. It will adopt a green attitude as one of its marketing strategies. This will be incorporated in the promotion of our healthy naturally processed pizza. Naked Pizza will have a visibly spectacular launch in xxx city that will be advertised and hyped up specifically in the social media sites like Tweeter and Facebook.
Prior to the launch the company will have created a public awareness campaign in every internet forum discussing the effects of processed fast food and their effects on the national health standards by aggressively participating in the discussions and providing remedial suggestions like eating natural pizza at the soon to be launched Naked Pizza.
Location
Naked Pizza will be located physically on strategic intersection in xxx city where it will be visible. Other locations will be in leading shopping mall food courts to cater for the affluent clientele. The company will also have a heavy presence in the internet through its main website that will be very interactive with visitors through healthy eating discussion forums, organic food advisory, recipe contests with gift vouchers to eat at our establishment (as a way of attracting an retaining loyal customers), and a feedback section for customers to post opinions and better ways to improve our services. We shall still continue to maintain a heavy presence in social media sites like twitter and Facebook to attract visitors to our website and outlet.
Advertising and promotion plans
Naked Pizza’s marketing campaign will involve print and electronic advertising, referral marketing, and a very attractive loyalty program for every returning customer. This plan will allow me to focus on the business by evaluating the results of my efforts on a daily, weekly, and monthly basis to see how my tactics and innovations are successful. The personal goal of my plan will be to devote at minimum 40 hours every month to marketing and obtain one speaking opportunity at a function in within the state that is related to environmental conservation, organic food, or healthy living matters.
The goal for the business will be to achieve total revenue that will exceed $250,000 in the second year of operation, an average of 6 monthly transactions foe every customer by the third year, and an average of $36 expenditure at Naked Pizza every month per customer by the end of the third year. My tactical marketing goal through social networks will be to reach over 5,000 Naked Pizza e-newsletter subscribers by the end of the third year. I plan to achieve 99.5% customer satisfaction, meaning that one hundred and ninety nine customers out of two hundred will be leaving my outlets satisfied by our services. At this time I should also have more than twenty business referral partners in the industry.
Competition
Our major competition will come from other establishments that have had over thirty years of operations like SUBWAY FRESH FIT, Extreme Pita, and Mr. Goodcents Subs and Pastas. These companies will provide formidable competition because they also serve similar food like ours which does not contain additives, preservatives or other chemicals.
Subway Fresh Fit claims to have a menu low in saturated fat and cholesterol and quality nutritious value. Their slogan states that they promote a lifestyle of eating fresh and living green. Extreme Pita is a Quick Service Restaurant chain that also specializes in fresh pita sandwiches and a diverse organic menu in a made-to-order style. Their green approach involves recycling waste in the kitchens and they have a wide appeal among eco-friendly consumers. Mr. Goodcents Subs and Pastas will provide formidable competition by their customer friendly prices and excellent catering services for business and community functions.
My strategy to overcoming the competition posed by the three companies will be to incorporate a system that adopts their techniques and improving on them to take our services to another level. This will involve an initial budget for innovations of my competitors’ strategies and advertising these achievements in social media sites and the local press.
Taking advantage of my competitors weak points
My competitors might have been in operation for a longer time and are thus used to the traditional methods of running a business. They would not be very eager to adopt new ways of running a business. In the twenty first century, technology is advancing faster than most old companies can keep up with and are therefore disadvantaged in adopting new and better ways of production and marketing their services. Fortunately, my company will be founded on the current technology that will include internet marketing and other techniques like an e-mail referral system in which consumers who refer customers via email are given points vouchers that can be redeemed for free meals.
The established companies have grown by serving unhealthy food that has led to national health problems like obesity, diabetes, and hypertension. My company will use their unhealthy products as an advantage by providing a healthy alternative that is increasingly becoming popular with health conscious consumers.
Section 3. Accounting and Cash Flow
Pro-forma Start up Costs
Requirements
Start up expenses
Legal $500
Stationery etc $500
Other$500
Total start up expense $1,500
Start up assets needed
Cash balance on starting date $80,000
Other current assets $40,000
Total current assets $120,000
FUNDING
Investment
1st Investor $25,000
2nd Investor $25,000
Total investment $50,000
Current liabilities
Accounts payable $500
Current liabilities $500
Long term liabilities $50,000
Total liabilities $51,000
Loss at start up $1,500
Total capital $48,500
Total capital and liabilities $99,500
Pro-forma Cash Flow
Pro-forma cash flow201120122013
Cash received
Cash from operations
Cash from sales$300,000$550,000$750,000
Cash from receivables$0$0$0
Sub-total cash from operations$300,000$550,000$750,000
Additional cash received
Other income
From borrowing
Interest free liabilities
Sale of other assets
Sub-total cash received$300,000$550,000$750,000
Expenditures
Expenditures from operations
Cash spent$8,000$13,000 $20,000
Accounts payable $350,000 $475,000$600,000
Sub total $358,000$488,000$620,000
Net cash flow ($58,000) $62,000 $130,000
Cash balance
Pro-forma Income Statement
Sales Forecast
Unit Sales201120122013
Meals $20,000$30,000$40,000
Drinks$10,000$15,000 $20,000
Other $250 $500 $1,000
Total unit sales$30,250$45,500 $61,000
Unit Prices201120122013
Meals$15.00$15.00$15.00
Drinks $2.00 $2.00 2.00
Other $10.00$10.00$10.00
Sales201220122013
Meals$350,000 $550,000$650,000
Drinks $25,000 $35,000 $45,000
Other $2,500 $5,000 $10,000
Total sales$377,500$590,000 $700,000
Direct cost of sales20112012 2013
Meals$45,500 $70,000 $85,000
Drinks $7,500 $8,500 $10,500
Other $250 $500 $1,000
Subtotal direct cost of sales $53,250$79,000 $965,000
Appendix 1. Personnel
Personnel Plan201120122013
Manager$50,000$55,000 $60,000
Hostess$30,000$35,000$40,000
Chef$45,000$50,000$55,000
Cleaning$25,000$30,000$35,000
Waiters $70,000 $100,000 $135,000
Total people81215
Total payroll $220,000$270,000 $650,000
