Business Plan Click & Wash May 2017 Charline Richard Table of content Executive Summary ..................................................................................................................................................................................... 3 I. Company Description .......................................................................................................................................................... 4 a. b. c. Mission statement ................................................................................................................................................................................. 4 Vision statement: ................................................................................................................................................................................... 5 Objectives............................................................................................................................................................................................... 5 II. Industry analysis.................................................................................................................................................................. 5 III. Market analysis and competition ........................................................................................................................................ 7 a. b. c. Pembroke ............................................................................................................................................................................................... 7 Fairmont ................................................................................................................................................................................................. 8 Lumberton.............................................................................................................................................................................................. 8 IV. Marketing plan ............................................................................................................................................................... 9 a. b. c. d. Service .................................................................................................................................................................................................... 9 Place ..................................................................................................................................................................................................... 11 Promotion ............................................................................................................................................................................................ 11 Prices .................................................................................................................................................................................................... 13 V. Operations ........................................................................................................................................................................ 13 a. b. c. d. Business facilities ................................................................................................................................................................................. 13 Policies ................................................................................................................................................................................................. 14 Workforce plan defined and analyzed ................................................................................................................................................. 15 Organizational chart ............................................................................................................................................................................. 15 VI. Management and Organization .................................................................................................................................... 16 a. b. c. d. e. Owner .................................................................................................................................................................................................. 16 Cleaner/Delivery people ...................................................................................................................................................................... 17 Assistant ............................................................................................................................................................................................... 17 Web master .......................................................................................................................................................................................... 17 Compensation ...................................................................................................................................................................................... 18 VII. Long term development ............................................................................................................................................... 18 VIII. Financial statement ...................................................................................................................................................... 18 a. b. c. d. e. f. g. Introduction ......................................................................................................................................................................................... 18 Start-up costs ....................................................................................................................................................................................... 19 Monthly expenses ................................................................................................................................................................................ 19 Sales forecast ....................................................................................................................................................................................... 20 Income statement ................................................................................................................................................................................ 20 Cash Flow ............................................................................................................................................................................................. 21 Balance Sheet ....................................................................................................................................................................................... 21 Appendix 1: Investments and depreciation ............................................................................................................................................... 22 Appendix 2: Sales Forecast ........................................................................................................................................................................ 23 Appendix 3: Loan amortization.................................................................................................................................................................. 24 Appendix 4: Income Statement Year 1....................................................................................................................................................... 25 Appendix 5: Income Statement Year 2....................................................................................................................................................... 25 Appendix 6: Income Statement Year 3....................................................................................................................................................... 26 Appendix 7: Cash Flow ............................................................................................................................................................................... 26 Appendix 8: Opening Balance Sheet .......................................................................................................................................................... 27 Appendix 9: Ending Balance Sheet............................................................................................................................................................. 27 Appendix 10: Ratios ................................................................................................................................................................................... 28 Appendix 11: Breakeven analysis .............................................................................................................................................................. 28 References ................................................................................................................................................................................................. 28 2 Executive Summary Business Description Click&Wash is a North Carolina based dry cleaning company focused on on-line services. It offers a high-standard dry-cleaning service to consumers through an online ordering system and delivery lockers. The company based the business on eco-friendly activities, using energy and water saving machines and natural solvent. Click&Wash expects to become the reference in the green high-quality connected cleaning in the area. The industry and competiton The dry-cleaning activity as most of the services activities depends a lot on the economic situation. However, the industry succeeded to overcome the difficulties and reached a $51 billion revenue in 2015, showing the strong fidelity of the customers. Because in this industry, the service and the customer satisfaction are the key to succeed. In this industry, most of the current business are focus on traditional dry-cleaning and implement their activity by following trends: online services and deliveries or green-services. But none of them did combined both of those trends in their business which provides Click&Wash with a strong competitive advantage. Moreover, in the Robeson County, the competition is not numerous and most them are oldfashion businesses without a high advancement in the technology area or green practices. In fact, most of them doesn’t even have a web-site which once again provides a competitive advantage for the company. Operations The company will have one laundry facility located in Lumberton, NC and will spread delivery lockers on Fairmont, Pembroke, and Lumberton in partners locations such as Walmart, the University of North Carolina at Pembroke, or in restaurants. Any high-traffic or close to common walking areas. Obstacles for development Click&Wash hopes expand its activity through new lockers facilities and new laundries all over the county. This expansion will require some years since the two first year the company will have a loss and will start making profit the third year with a net income of $24,740.26. Finance The company will start with the owner equity of $40,000 and a loan of the same amount. Those two allowing to cover the initial investment of $56,135 for the equipment and covering the losses of the first two years. 3 I. Company Description You have delicate clothes you do not know how to take care of? You have no time to go on laundries during the operating hours? Tired of driving far away just to get well-dressed? Or you simply cannot do your own laundry? Look no further! Click&Wash is there for you! Click & Wash is the state of the art of the laundry for delicate clothes. Equipped with water and energy saving machines and armed with a French cleaning know-how the company will take care of customers’ clothes by using natural solvents, high quality dry-cleaning, professional hand-made ironing, and quality clothes’ adjustments. But beyond the high-quality cleaning, the company is offering a quality service, abolishing the constraint of the operating hours. Indeed, customers will not need to come during specific hours. The concept is that in addition to the laundry facility, lockers will be spread all over the city and will be used as 24/7 deposit box. Customers just need to order a deposit on the web-site that allows him/her to choose the service needed, the place and date of deposit, the place of pick-up, and give specific requests. The laundry will be settled in Lumberton, NC and will be 3,200 square foot. The facility will host the machines and the administration office, and will be open on traditional operating hours (9am-6pm) for direct deposit. But the laundry will also have deposit lockers available at any time. The other deposit lockers will be dispatched in Lumberton, Pembroke and Fairmont. The locations of those lockers will be strategic high-traffic sites where customers go regularly in order to be practical and time-saving. No detour are needed, it’s the laundry that goes on your way! The company will be created on July 2017 as a limited liability company owned and run by on person. The activity will start on February 2018. The six month will be used to make renovation or to build the facility, acquire the equipment and install the lockers. a. Mission statement Click&Wash is designed to provide the best laundry service to busy people by offering a high-quality cleaning, by using ecological-friendly equipment, and by bringing the service to the consumer. 4 b. Vision statement: Click&Wash expects to become the reference in the green high-quality connected cleaning in the area. c. Objectives Short to medium objectives: • Finance the business durably • Set up efficient processes • Build a productive and friendly team Medium to long term objectives: • To become the reference of high-quality dry-cleaning • To reinforce the environmentally-friendly position • To extend the service to further towns Click&Wash will become the most renowned dry-cleaning laundry of the Robeson county, thanks to its effectiveness, professionalism, accessibility, flexibility, quality, and exceptional know-how. II. Industry analysis The laundry market is part of the cleaning industry market that takes into account residential cleaning, commercial janitorial services, specialty cleaning and laundry/dry cleaning services. Companies may also provide drop-off and pick-up sites for customers and specialty cleaning services for garments and textiles such as fur, leather, suede, wedding gowns, draperies and pillows. This market represented 875,000 businesses in 2015. The industry suffered from the crisis, from the declining demand for professional dry cleaning services and from the increased competition from coin-operated laundromats and household washing machines. But it succeeded to overcome it and reached a $51 billion revenue in 2015. Establishments close to high-traffic, business-related places, and work places that require dry-cleaning have a better opportunity to grow and make profit. In this industry, 5 customers’ perception has a big influence on the activity. The more important element is to find and exploit a competitive advantage because the entry barriers are low. There are about 33,000 business in this industry and they suffered because of the new “easy-to-care” clothes. Dry cleaning is the process of cleaning textiles using an organic solvent rather than water. The solvent often is perchloroethylene (“perce”). This process allow to clean clothes that would have been damaged by other techniques. The best opportunity to revive the companies is the “green” trend. Indeed, the consumers have become more sensible of their impact on the world and especially in developed countries where people are aware of the good or bad effect of their daily consumption. They try more and more to reduce their energy and water consumption, use more responsible products and so on. That trend is thus a great opportunity for the company that is responding both to an existing need (laundry) and a growing concerns (more natural products). Another trend that is profitable for the company is the need for convenience. People expect services to fit their schedule and not to schedule their day according to laundry issues. They need to have a proximity service, flexible that fit their planning. Since ordering anything online became the trend, they should be able to order their laundry anytime, anywhere, without time restriction. Consumers will come for the quality, the innovation, and the service provided and since in this sector, the word of mouth has a big influence, having a competitive advantage is the only way to have a lasting business. But following the trends and anticipate the needs of consumers may not be useful if the company itself does not respond to regulations. Indeed, as a new business and as a laundry business, Click&Wash needs to get registered and buy licenses allowing it to do business legally. This business depends on The Dry-cleaning Solvent Cleanup Act of 1997 (DSCA) and its amendments. It is ‘a fund to assess and cleanup dry-cleaning solvent contamination at drycleaning and wholesale distribution facilities’. The state of North Carolina also requires facilities to manage hazardous waste in accordance with the N.C. Hazardous Waste Management Rules. 6 III. Market analysis and competition This high efficiency, natural, and convenient laundry service is available for everyone but will focus on the 18-54 years old who are more comfortable with technologies and online ordering. Indeed, the all online ordering trend is especially used by younger people, who need everything to be fast and simple. In Lumberton, Pembroke and Fairmont, NC the median resident ages are respectively 34.4, 24,6, and 44,5 which matches perfectly target market. Indeed, the company is focusing on people using technologies in a daily basis and who need a laundry service for delicate clothes or wash and fold. Moreover, it is the same target that is involved in the ‘green trend’. In addition to the matched age structure, the advantage of being implanted on those 3 cities is the presence of the University of North Carolina at Pembroke which provides a wide number of prospects. a. Pembroke Pembroke is a town of 3,000 residents driven by the educational services and administrative and support and waste management services that represent 37% of the activity in Pembroke. The target (18-54 years) represents 44% of the population. The median household income is $15,934. The town has a young population of students, about 6,000 students (see distribution below) and since the drop of clothes can be done anytime, even the non-resident students are potential targets. Each time they need to clean coats or professional clothes, they will be able to drop them at the University and take them back a few days later without changing their routine. The same pattern runs for the staff of the University, about 900 people (see distribution above), which dresses professionally on a daily basis and are more likely to use a laundry service. The University also has a Business department that represents 10,3% of the degrees awarded, with students that must get used to wear suits or any professional clothes. All of them are the perfect target. The town of Pembroke only has one laundry facility, Margaret’s Drycleaning, situated on the main street of Pembroke (404 W 3rd St, Pembroke, NC 28372). This location is a strength since it is a high traffic road in the town. But the location is not enough for a total success. Indeed, the research showed a lack of communication making it hard to be informed about the services proposed and the prices. Knowing that the aforesaid do not provide delivery/pick-up service, the competition is thus weak. And the word of mouth is already installed for this business but may 7 not be the strongest threat for Click&Wash since the service is more innovative and adapted to the market. Undergraduates Graduates Full-time Part-time In-state Out-of-state TOTAL 4983 747 4125 1605 5524 206 5730 Non teaching EPA employees Faculty Full-time SPA employees Total 147 421 315 364 932 b. Fairmont Fairmont, is a 2,700 resident city with mainly a retail trade activity (21%). The average houslhold income is $19,792. Demographics match the company’s target with 41% of people between 18 and 54. This town may not be the biggest market but it is an excellent opportunity to gain market share. Fairmont has only one dry cleaning laundry, K & W One Stop Dry Cleaners, which is a home cleaning company. It offers drapery cleaning, vacuuming, and move out cleaning as well as other services. The target is not the same so the competition will not be so intense. Moreover, the Laundry does not have a web-site, so it is a great opportunity to gain the market. Our advantage will be that people can know our services from anywhere. Our communication will be more adapted to the technology-friendly generation. c. Lumberton Lumberton will be the headquarter of the activity. The median household income is $31,245. Driven by the manufacturing industry (26%), Lumberton has more than 21,000 residents with 46% from 18 to 54, and count about 11 laundry businesses. The competition is thus higher. Especially since some cleaners are well-known is the neighborhood like the Larry’s cleaners who gets recognition for its long years of experience. The competitors laundry are not completely or at all engaged in the environmental protection or the online service. Indeed, some are offering a pick-up service but few of them and people still need an “appointment” for the pickup and drop-off. So the constraints are still there. Therefore Click&Wash is better suited. The 8 facility will be situated on the center-west of the town where there is not any competitors (see green circle). The kiosks with the lockers will be dispatched in the downtown, the east, the north, and the south (see blue Points). Each of this three cities offer opportunities for a new dry-cleaning laundry following the green trend and offering a flexible service to connected people. The Click&Wash’s target is growing thanks to the different trends. By adding the target market of the three city, the total market represents about 17,000 people. Moreover the population of Lumberton is expected to grow about 3% within the next two years. Despite the initial investments that may be high, Click&Wash will draw and win loyalty of customers through the high-standard and affordable service. Residents, students in campus, and workers will all have the opportunity to find a kiosk close to their usual path and profit from a laundry service, environmentally friendly and appropriate for any schedule. IV. Marketing plan a. Service Click&Wash is a dry-cleaning facility with 24/7H pick-up and drop-off lockers located in the Robeson county and more precisely in Lumberton, Pembroke and Fairmont, NC. 9 The company offers a high-quality and eco-friendly dry cleaning service for all types of clothes, using water and energy saving machines. The detergents used will also be eco-friendly with as much natural products as possible, the strongest ones will be used wisely, only if needed. The pick-up will be performed via electrical cars in order to limit the environmental impact of the rides. The service will be on two parts, first a usual laundry facility opened from 9 am to 6 pm where customers can interact with the staff. There will be two employees working on the cleaning service, taking care of the customers’ clothes and another worker will be in charge of the administration work on the front office, he/she will host customers, answer the phone and run the day to day business. The three employees will be selected according their know-how and trained to use responsible cleaning methods. The second part of the service are the lockers dispatched all over the cities where people will be able to drop-off their clothes anytime simply by ordering online. They will not need to come to the facility to profit from our services, they will not need any appointment to get their clothes back. Those lockers will be managed by a fourth employee in charge of the pick-up and drop-offs. There will be two rides to the lockers a day with defined time slot for each location. So as for the mail, people put their mail anytime and the postman get them the same day or the next day. Either way, customers has no constraints. In addition to the service, a garment bag and a laundry bag will be provided for each new customer, and extra bags can be purchased online or in store. They will be recycled and recyclable tissue bags that customers will reuse indefinitely, the goal being to limit the use of plastic bags. The company’s logo will be on the bags and a tag with the customer’s name added to offer personalized service and to facilitate the management of the bags. Two sizes of garment bags will be proposed according to the type of clothes (long or short) and three size of laundry bags. 10 To summarize, the company offers a daily connected service, respectful of the environment and caring about the customers’ property. b. Place Customers will have the choice to come to the facility and interact with the staff directly as a usual laundry to explain its needs and schedule the pick-up or he/she can schedule and order it online through the website and then drop his/her clothes in one of the kiosks available. The web site will provide a scheduling online and a safe online payment. Customers will be able to place the order in advance and drop their clothes later, they will have to confirm the drop off to launch the final order. Each order will be traceable and customers will always know where are their clothes. If after 15 days the customers did not get his/her property back, the company will call him/her. In addition to the facility and the web site, an app will be created in order to simplify the procedure. Nowadays the number of mobile users overtake the number of desktop users with more than 1,900 million users and the use of the mobile is especially strong on the morning and evenings, which are the times when the prospects will be impacted by the advertising. The internet and the mobile app will be the main sales channel. c. Promotion 1. Online advertising The advantage of using online services is that customers can easily find information about the company and the services. Indeed, having a website describing the products and services, the company history and values allows to reach more people almost everywhere. The communication will thus be centralized on the website since our target is technology-friendly people. The website will be an ergonomic and easy-to-use interface with a description of each services proposed, a contact rubric, the detail of the offers, the values of the company, and so on. Everyone will have access to it. The company will also be present on Facebook, Twitter, and Instagram where people can discover the company, its values and its employees. A partnership with a GPS application such as Waze could also be relevant, with an alert when customers drive close to one of the deposit location. This way they will notice they can take care of the laundry without changing their habits. 11 2. Personal advertising Customers however will have access to a personal account they can create easily using an e-mail address. This account will be personalized according to the preferences of every customers, their favorite locations, and the type of services more frequently used or their schedule. It will be an intuitive interface to facilitate a daily use. This will also be the channel used to create personalized offers like a sponsorship system, specific discount or loyalty reward. The website and the customers’ accounts will be the basis of our communication. Using electronic communication has its advantages, it is easy to change channel (website, e-mails…) by keeping the same support, the same advertising and thus having a consistency that will help build the brand awareness. Moreover, this communication is cheap giving that there is not a printing cost or renting costs, the advertising needs to be created once and then the diffusion can easily be expanded through the internet and the social network. And since our target is mostly composed of young people, social networks would be an adequate channel. 3. Traditional medias But to start, a more traditional communication will also be necessary. Local people usually do not use internet before going to the laundry since it is a proximity service. In small towns, everyone knows where is the laundry. So, as an outsider and in order to start a brand awareness the use of more traditional advertising is required to catch the attention. First, since the offer will be close to working places or high-traffic places, there will be posters close to these areas in strategic spots in order to be viewed by as many people as possible. This way prospects will have an idea of the business and will know where to find it. The posters will be close to the lockers’ spots so when they will see the advertising they will experience the convenience of the location. The second step will be a radio spot since about 80% of Americans listen to the radio daily. and most of the workers in Pembroke, Fairmont and Lumberton have a commute time (travel time) included between 9 and 35 minutes which gives us an opportunity to catch their attention on their way to work. 12 d. Prices Usually, to enter a market it would be smart to set initial prices lower than the competitors. But giving that the company is going to invest in high-efficiency machines, building, communication, and cars the costs are higher. The prices will be set to match competitors’ prices and cover charges. Dry cleaning 2 piece suit Tuxedo suit 3 piece suit Blazer Dress skill 2 piece dress Vest Sweat Sweater cachemir Tank top Robe Rain coat Laundry Dry cleaning $US $US $US $US $US $US $US $US $US 9,5 10,5 12,5 6,5 12,0 13,5 4,5 5,0 6,0 $US $US $US 4,0 12,0 13,0 Long coat Jacket Skirt Skirt suit Evening dress Tie Scarf Cap Glove Blouse Graduation gown Thick gown $US 15,0 $US 8,0 $US 5,0 $US 9,0 From $9 to $20 $US 4,0 $US 6,0 $US 5,0 $US 6,0 $US 5,0 $US 13,0 $US Shirt (men) Shirt (women) Tuxedo shirt Pants Shorts Golf shirts Sweater Lab coat Blouse $US $US $US $US $US $US $US $US $US 18,0 V. Operations a. Business facilities The laundry facility will be situated on 2112 Cedar St, Lumberton, NC 28358, a commercial property for rent. The facility of 3,200 Square feet will host the workshop, the offices, and lockers. First the front office will be a nice front desk equipped with a computer, furniture, tv, and some plant. The employee will be behind this desk to welcome customers, but it will not be a big, impressive wall-desk, but a mid-size desk with a lower side adapted for wheel-chairs. The goal is to have a nice, welcoming, and enjoyable laundry where customers feel good. The value of the company must be visible in the facility. In that room will be a table, chairs, magazines, and a water fountain because even if it is not a laundromat and people do not have to wait for the laundry to be over, they still can enjoy a nice waiting room so they will feel welcome. That room will be the store front of the company. It will also be a way to share information about the company, the offers, the working hours, and all communication supports. Then in the back office will be the cleaning room where one will find different machines. The washing and drying machines, with a capacity of 40lb each, the iron, the dry-cleaning 13 1,50 2,00 4,50 5,00 4,50 4,50 5,00 7,00 6,00 machine, the press, and then the clothe storage area which goes in each other area. To begin with, the company will buy some machines. The building will be rent and the electric car bought. Regarding the lockers, there will be 10 lockers per location with different sizes adapted for all types of clothes. Four high lockers (66’’ high and 11’’ width), four medium lockers (33’’ high and 15’’ width) and finally eight smaller lockers (15’’ high and 15’’ width). The lockers will be equipped with electronic lock using a code that each consumer will be free to choose. The company will also have a master key code to open any locker. This code will change every day for security issues. The lockers will be installed close to working places or places where people go often. The lockers will be provided for free by Parcel Pending, company that will also do the maintenance. Only installation fees and a small monthly fee will be needed. In Pembroke, a locker will be installed in Walmart as a partnership, Walmart’s employees will dispose of 5% discount. The same partnership will be installed with the UNCP. In Lumberton, five kiosks will be installed in addition to the Click&Wash building and two in Fairmont. All the lockers will be settled in partner’s building/facilities. Letting open doors to expansion. b. Policies 1. Payment policy All payments must be done online with a credit or debit card or directly to the store in credit card or cash. Regarding the checks, employees can accept checks only under certain circumstances:  Checks must be from a local or in-state bank  Checks should not be written and accepted for more than the purchase amount  Checks should not be accepted that are starter checks, unnumbered checks, or nonpersonalized checks 2. Customer satisfaction policy Click&Wash will provide a high-quality service within 5 days. It will also guarantee the respect of your clothes. If the customer is not satisfied with the cleaning, the company will re-clean it without extra charges. 14 3. Human resources policies Employees must provide a fair and friendly service to customers Employees will be trained and involved in the company’s strategy All employees will enjoy a 20% discount on the services. The policies intend to provide the best conditions for both the customers and the employees. As well as for the environment. c. Workforce plan defined and analyzed All employees will be wisely selected according their know-how of course but also according their own values. The goal being that each of them not only understand the values of the company but go along with them. The strengths of the company must be completely integrated by the staff in order to share them with the customers. Because a satisfied customer will bring more customers (word of mouth). The staff will be composed of the owner, who will run the business. Three workers will run the cleaning area and the driving, by shifts. The three of them will be skillful and able to switch post any time so they will be involved and understand all the activity. At the beginning of the activity, only two workers will be hired to limit costs. When sales will increase, a third worker will reinforce the team. The company will also hire a freelance web master to run the website, the app, the advertising and deal with all the information technology issues. An additional administrative employee may be hired to respond to the growing activity if need be to assist the owner. d. Organizational chart 15 VI. Management and Organization Click&Wash is managed by the owner, who has extensive leadership and management skills. The company will have employees to run the business and each member of the team as the manager will be professional, honest, efficient and friendly people who can easily make contact with the customers. a. Owner The owner is from a French business school in three ways accredited (Equis, AMBA, and AACSB). In the business school, she was treasurer of an association and manager of a project which provide her a great pool of skills essential for the management of a new small business. Moreover, concurrently with her studies and her mandate, she worked as receptionist/cashier for a big sport retailer where she acquired a key skill for the company: knowing how to create and maintain a good customer relationship. Her experience will be one of the most important asset at first since she will be in charge of the reception/cashing. She also has previous experiences in small businesses, especially in start-up and has knowhow in different functions such as management, marketing, sales, and communication. Her background, as much professional as educational, is then more than beneficial for the business and will be a strength. At the beginning, the owner will be in charge of the marketing, communication, financial, human resources, and commercial functions and will be the cashier/receptionist at laundry. 16 The owner duties and responsibilities will be to: ❖ Be a leader: be an example, resolve conflicts, keep motivation up ❖ Be figurehead: represents the company outside ❖ Be a decision maker: Fixing goals for the long, medium, and short term ❖ Be the financial analyst: overseeing your financial records, monitoring and corrective actions ❖ Be a marketer: lead the marketing plan and establish a good image ❖ Be the human resources manager: select, hire, and train the employees ❖ Be visionary: look forward b. Cleaner/Delivery people There will be three employees in charge of the cleaning area and the delivery/pickup activity who will switch position regularly so they all know how to perform in different functions. Each of them will be selected according their knowledge, skills, and previous experiences. The selection won’t be simply to choose the worker with the most experience but the worker who fit with the company’s values and who has potential to professionally evolve. They all should have worked at least on year in a laundry or related activity and have the basics knowledge for the use of the machines. However, since the procedures will be as ecological as possible and the machines more innovative, the workers will be trained. The company also intend to be part of the Dry-cleaning and Laundry Institute which helps professionals to succeed in the industry, giving up dates and formations. This way our employees will always be at their best. c. Assistant If the activity grow enough, the company and more specifically the owner may need an assistant to help with different function such as the reception/cashing, the financials, and the management. He or she should have a business formation. d. Web master 17 The management of the web-site, the app, and all the information technologies related activities will be outsourced to a freelance web master. The choice of the web master will be according to his educational background and according to his previous experiences, it will be a professional web master who will be able to prove his skills. As a new business Click&Wash needs someone already productive, who has all the tools necessary to perform. e. Compensation Each employee will receive the minimum wage of $8 per hour at the beginning. If the activity improves well enough they will receive a part of the profit through a profit sharing plan. VII. Long term development Click&Wash intends to become the most famous and the most used dry-cleaning business of North Carolina. The state has a population of 9,278,237 with 41% between 18 and 54. So the company expects to make the most of this large target market and hopes to expand its activity by opening more laundries and more kiosks all over the state, with operation facilities in Fayetteville, Raleigh, Charlotte, Greenville, Wilmington, and their surroundings. The goal would be to have facilities all managed independently by a manager. Off course they will refer to the CEO but remain autonomous. VIII. Financial statement a. Introduction The following statements, calculations and assumptions are made for a 12-month period excepted for the income statement that will be forecast for the three first years. It will be a forecast as accurate and realistic as possible. The accounting system will be based on an accrual-basis method recording the income and expanses when they are incurred. 18 b. Start-up costs Description Cost Industrial washing machine $6,000 Industrial dryer $4,000 Dry-cleaning machine Iron and iron table Press machine Boiler system and exhaust Spotting table Ventilation $11,000 $1,500 $3,000 $5,000 $2,000 $800 Office equipment/Furniture Computer Paint/decoration Lockers settlement Electric car License/Permit Dry cleaning solvemt (perclore) Hangers (450) Garment bags $500 $600 $500 $4,000 $16,000 $350 $540 $30 $315 The initial investment for the project is estimated at $56,135. It will be funded thanks to the owner’s equity capital of $40,000 and a commercial loan of $40,000. c. Monthly expenses Description Costs Electricity Water Lockers rent Phone/Website/App Insurance Supplies Wages Loan repayment 4% of sales 2% of sales $40 $100 $50 $70 $3,072 $903.16 Rent Maintenance $1,000 $60 Taxes 3% of income As explained earlier, for the first years the company will have only two employees in order to limit the costs. The maintenance cost will be a regular control/maintenance on the machines to ensure their efficacy and increase their total running time. The rent will be a fixed rent for the next 8 years. 19 d. Sales forecast The following forecasted sales are based on expected monthly sales of 450 pieces the three first month, 500 the three next years, 550 for the following three month and 600 for the last three month. The growth for the following years is expected to be 10% per quarter (see Appendix 2). Pieces per month Laundry Shirt (men) Shirt (women) Suits Pants Shorts Golf shirts Dress Lab coat Blouse Blazer Other (average price) TOTAL per month Costs 1,50 2,00 9,50 5,00 4,50 4,50 12,00 7,00 6,00 6,5 8,9 Percentage of sales 9% 9% 14% 18% 15% 8% 5% 6% 4% 9% 3% 100% 450 500 550 600 Month 1-3 Month 4-6 Month 7-9 Month 10-12 60,75 81 598,5 405 303,75 162 270 189 108 263,25 120,555 2561,805 67,5 90 665 450 337,5 180 300 210 120 292,5 133,95 2846,45 74,25 99 731,5 495 371,25 198 330 231 132 321,75 147,345 3131,095 81 108 798 540 405 216 360 252 144 351 160,74 3415,74 e. Income statement The income statement shows that the two first years the company is having a loss but the situation improves when the sales increase. The main expense comes from the salaries of 2 employees and the rent of the facility. Sales increases by 50% from year 1 to years 2 and by 72% from years 2 to year 3 up to 92,675 (see Appendix 4 for more details). Sales revenues TOTAL revenues TOTAL COGS GROSS Margin Gross profit Margin TOTAL general and administrative expenses EBITDA Depreciation Interest expenses Taxe expenses 5% Net income 20 Year 1 35865,27 35865,27 3711,92 32153,35 89.65 50664,00 - 18510,65 7760,00 1428,74 0,00 -27699,39 Year 2 53863,39 53863,39 4791,80 49071,58 91,02 50664,00 -1592,42 7760,00 1028,91 125,20 -10523,02 Year 3 92675,82 92675,82 7120,55 85555,27 91.96 50664,00 34891,27 7760,00 0,00 1744,56 24,740.26 Given that the prices are not the same for all products it’s difficult to know exactly how many pieces the company must sell to break even, the possibilities are endless. However, with the current repartition of the sales, to breakeven the company must have $56,513.11 of revenues which represents 828 pieces (Appendix 11). f. Cash Flow Although the Income statement showed a loss, the cash flows remains positive and allow to compensate this loss. It is mostly due to the loan that provides extra cash and compensate the initial investment (Appendix 7). g. Balance Sheet The balance sheet (Appendix 9) shows the total assets of the company composed by the initial investment in equipment. It also shows how this equipment has been financed which is mostly by the owner’s equity. One can see that the company owes more than $7,000 to suppliers. The overall situation for the first year is not perfect but is promising. Indeed, thanks to the loan, the losses are covered and the increase of sales will allow to get a bigger profit. The debt asset ratio is 0.61 which shows that the company is using a large amount of financial leverage and takes some risky. But as the Cash flow statement shows, the company will be able to manage this risk. 21 Appendix 1: Investments and depreciation 22 Appendix 2: Sales Forecast 23 Appendix 3: Loan amortization Loan period Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 40000 Rate 48 Payment Beginning 40000 39 230,17 € 38 457,78 € 37 682,81 € 36 905,25 € 36 125,11 € 35 342,36 € 34 557,01 € 33 769,04 € 32 978,44 € 32 185,20 € 31 389,33 € 30 590,80 € 29 789,60 € 28 985,74 € 28 179,20 € 27 369,96 € 26 558,04 € 25 743,40 € 24 926,05 € 24 105,97 € 23 283,16 € 22 457,61 € 21 629,31 € 20 798,25 € 19 964,41 € 19 127,80 € 18 288,39 € 17 446,19 € 16 601,18 € 15 753,36 € 14 902,71 € 14 049,22 € 13 192,89 € 12 333,70 € 11 471,66 € 10 606,73 € 9 738,93 € 8 868,23 € 7 994,62 € 7 118,11 € 6 238,68 € 5 356,31 € 4 471,00 € 3 582,74 € 2 691,52 € 1 797,33 € 900,16 € 0,00 € 0,00333333 903,16 € Payment 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € 903,16 € Interest 133,33 130,77 128,19 125,61 123,02 120,42 117,81 115,19 112,56 109,93 107,28 104,63 101,97 99,30 96,62 93,93 91,23 88,53 85,81 83,09 80,35 77,61 74,86 72,10 69,33 66,55 63,76 60,96 58,15 55,34 52,51 49,68 46,83 43,98 41,11 38,24 35,36 32,46 29,56 26,65 23,73 20,80 17,85 14,90 11,94 8,97 5,99 3,00 0,00 24 Principal 769,83 € 772,39 € 774,97 € 777,55 € 780,14 € 782,75 € 785,35 € 787,97 € 790,60 € 793,23 € 795,88 € 798,53 € 801,19 € 803,86 € 806,54 € 809,23 € 811,93 € 814,64 € 817,35 € 820,08 € 822,81 € 825,55 € 828,30 € 831,06 € 833,83 € 836,61 € 839,40 € 842,20 € 845,01 € 847,82 € 850,65 € 853,49 € 856,33 € 859,19 € 862,05 € 864,92 € 867,81 € 870,70 € 873,60 € 876,51 € 879,44 € 882,37 € 885,31 € 888,26 € 891,22 € 894,19 € 897,17 € 900,16 € 903,16 € Ending balance 39 230,17 € 38 457,78 € 37 682,81 € 36 905,25 € 36 125,11 € 35 342,36 € 34 557,01 € 33 769,04 € 32 978,44 € 32 185,20 € 31 389,33 € 30 590,80 € 29 789,60 € 28 985,74 € 28 179,20 € 27 369,96 € 26 558,04 € 25 743,40 € 24 926,05 € 24 105,97 € 23 283,16 € 22 457,61 € 21 629,31 € 20 798,25 € 19 964,41 € 19 127,80 € 18 288,39 € 17 446,19 € 16 601,18 € 15 753,36 € 14 902,71 € 14 049,22 € 13 192,89 € 12 333,70 € 11 471,66 € 10 606,73 € 9 738,93 € 8 868,23 € 7 994,62 € 7 118,11 € 6 238,68 € 5 356,31 € 4 471,00 € 3 582,74 € 2 691,52 € 1 797,33 € 900,16 € 0,00 € (903,16 €) Appendix 4: Income Statement Year 1 Appendix 5: Income Statement Year 2 25 Appendix 6: Income Statement Year 3 Appendix 7: Cash Flow 26 Appendix 8: Opening Balance Sheet Assets Current assets Cash Account receivable Inventory Prepaid expenses Short-term investment Total current assets Liabilities and owner's equity 23865 885 24750 Long-term assets Long term investment property, plant, and equipment Intangible assets Total fixed assets Other assets Total assets Currrent Liabilities Account payable Short-term loans Income taxes payable Accrued salaries and wages Unearned revenues Current portin of long-term debt Total current liabilities Long-term liabilities Long-term debt other 50900 Total long-term debt 4350 Owner's equity Owner's investment Retained ernings Other Total owner's equity 80000 Total liabilities and owner's equity 50900 0 40000 40000 40000 40000 80000 Appendix 9: Ending Balance Sheet Assets Current assets Cash Short-term investment Total current assets Long-term assets Long term investment property, plant, and equipment Depreciation Total fixed assets Other assets Total assets Liabilities and owner's equity 3925,61 885 4810,61 50900 -7760 43140 4350 52300,61 Currrent Liabilities Account payable Short-term loans Interests payable Accrued salaries and wages Unearned revenues Current portin of long-term debt Total current liabilities Long-term liabilities Long-term debt other Total long-term liabilities Owner's equity Owner's investment Retained ernings Other Total owner's equity Total liabilities and owner's equity 27 7980,46 1428,74 9409,20 30 590,80 € 30590,80 40000 -27699,39 12300,61 52300,61 Appendix 10: Ratios A high number means the firm is using a larger amount of financial Debt to assets 0,61 61,22 leverage, which increases its financial risk in the form of fixed interest payments. However, the increased financial risk of higher leverage may hold the Debt to capital 0,72 72,25 company to stricter debt covenants. These covenants could restrict the company’s growth opportunities and ability to pay or raise dividends. The debt-to-equity ratio measures the amount of debt capital a firm uses compared to the amount of equity capital it uses. A ratio of 1.00x Debt to equity 2,60 260,31 indicates that the firm uses the same amount of debt as equity and means that creditors have claim to all assets, leaving nothing for shareholders in the event of a theoretical liquidation. A current ratio under 1.00x, for example, means that even if the Current ratio 3,37 336,70 company liquidates all of its current assets, it would still be unable to cover its current liabilities. Appendix 11: Breakeven analysis Fixed costs = 50,664 Variable costs = 3,711.92 => 10.35% of sales Contribution margin = 100%-10.35% = 89.65% Fixed costs/contribution margin = 50,664/0.8965 = 56,513.11 References 28 ➢ https://www.ibisworld.com/industry/default.aspx?indid=1730 ➢ http://oxxocarecleanersfranchise.com/2016/03/22/2016-dry-cleaning-industry-outlook/ ➢ http://www.payscale.com/research/US/Industry=Dry_Cleaning/Hourly_Rate ➢ http://www.dlionline.org ➢ http://valuationresources.com/Reports/SIC7216DryCleaners.htm ➢ http://www.weingarten.com/shopcentric-documents/sampledocuments/SampleBusPlan-DryCleaner.pdf ➢ http://www.bplans.com/dry_cleaning_home_delivery_business_plan/market_analysis_s ummary_fc.php ➢ http://www.anythingresearch.com/industry/Drycleaning-Laundry-Services.htm ➢ https://deq.nc.gov/about/divisions/waste-management/dry-cleaning-solvent-cleanup-actprogram ➢ http://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_66/Article_13. pdf ➢ https://www.google.com/maps/ ➢ http://www.city-data.com 29 Faster Food Pembroke. NC 28372 One University Road Tele: 9107362506 Company Description It’s rainy outside, but you want to have a cup of vanilla latte from Starbucks? You have no time to cook lunch before your next class? You don’t want to waste your time in such a long queue for ordering your food? No one cooks for your children when you are out? Why not open your phone and enable your location services to order a food for yourself or your family? There is always a group of people don’t want you hungry! Faster Food App is always waiting for you wherever you are and is responsible for your food ordering and deriver. Behind Faster Food, fastest delivers equipped with the fastest deliver motorbikes and magic warm-keeping boxes are waiting for picking food from the store you ordered. We guarantee every deliver is well trained, and we will provide premium service for you. The operation hours (6am-12pm). Service area is limited in Pembroke. When we will start positioning you and ask the destination where the items you want them to go. The service includes Delicious Foods, Fresh Fruits, Drink and Desserts. Think about it for a moment and select the service you want. Then you will find out the list of store. Don’t be shy to eat too much, and we can deliver them for you once. Add all the items you want in the shopping cart. After making the payment just wait for 10-15 minutes, and the items will go to destination. You are wondering where is the food? Don’t worry, click the button “order in process”. The map will show you the food track and the estimated arrival time. We guarantee all the stores in the list are verified by the quality standard of health security. Mission statement Faster Food is designed to provide the best quality food and fastest delivery services on time. Make sure every customer will enjoy the first class service. Having the most trusted partners and best delivery team. Vision statement Faster Food wants to be the leader service in the efficiency. Objectives Eco-friendly, we use battery-operated motor Having good relationship with partners Building an efficient team Faster Food will become the most trusted delivery service in Pembroke and Lumberton. Thanks to its customers’ loyalty, effectiveness, efficiency, quality. Industry analysis Food delivery market is part of delivery service. The first meal delivery services are believed to have been started in wartime London. Many Londoners had lost their homes and their ability to cook for themselves. In response to this need the WVS (Women's Volunteer Service) produced meals and delivered them to people who had lost practically everything. This caring approach was carried on in various areas of the UK where injured servicemen were provided meals by volunteers in the local vicinity. The business of delivering restaurant meals to the home is undergoing rapid change as new online platforms race to capture markets and customers across the Americas, Asia, Europe, and the Middle East. 1, Two types of delivery Two types of online platforms have risen to fill the food delivery industry. The first type is the “aggregators,” which emerged roughly 15 years ago; the second is the “new delivery” players, which appeared in 2013. Both allow consumers to compare menus, scan and post reviews, and place orders from a variety of restaurants with a single click. The aggregators, which are part of the traditional-delivery category, simply take orders from customers and route them to restaurants, which handle the delivery themselves. In contrast, the new-delivery players build their own logistics networks, providing delivery for restaurants that don’t have their own drivers. 2, Opportunity The opportunity for new delivery is to extend food delivery to a new group of restaurants and customers. Rather than competing directly with the aggregators, new-delivery players are expanding the overall market. However, it is possible that in the future even lower-end traditionaldelivery restaurants will migrate to new delivery because they will find it more cost efficient to outsource logistics; thus, new delivery poses at least a potential threat of disruption to the aggregators. The growth in new delivery is driven by two sources of consumer demand. This first is as a substitution for dining in a restaurant. With new delivery, consumers can dine at home with the same quality food they would enjoy at a fine restaurant. Some platforms even include Michelin-starred establishments in their offerings in selected cities. The second source of demand is as a substitution for meals prepared and consumed at home. In addition, this kind of new food delivery industry try to make add the whole market together and cut down the cost of advertising for the stores. And at the certain area there will be an optimum competition for supplying best service or food. The data form the McKinsey&Company shows that the online food-delivery market has a strong potential in the growth. McKinsey&Company also gathered the top five food online delivery food service in Europe. It indicates two of the top five online deliverers, GrubHub and Just Eat, made their IPOs in 2014. They raised moderate total funding, of less than €100 million, before their IPOs. Delivery Hero made its IPOs in 2017 June 30. Deliveroo could make its own IPOs in the next year or two. In 2016, the revenue of the restaurant industry in the United States reached 782.67 billion U.S. dollars, with the fast food industry contributing an estimated 206 billion U.S. dollars to this figure. Consumer spending on food delivery in 2015 was worth around 30 billion U.S. dollars - four billion U.S. dollars of this was accounted for by online delivery sales. Delivery services are a popular dining option with U.S. consumers, as a November 2016 survey found that 20 percent of respondents use food delivery at least once a week. In 2016, around 48 percent of U.S. diners stated that they enjoy using food delivery services 'very much' or 'quite a lot'. Men seem to prefer ordering food for delivery with 25 percent of male respondents stating that they enjoy using such services 'very much', compared to only 16 percent of women. (Statista) Market analysis Pembroke is a town in Robeson Country, according the statistics of 2010 census the population of Pembroke is 2,973 and 961 households. The town has the total area of 2.3 square miles, all land. The majority is Native American 88.90%. In the town, 34.8% under the age of 18, 11.5% from 18 to 24, 25.8%from 25 to 44, 17.6% from 45 to 64, 10.3% older than 65. The median income for a household in the town was $18,355, and the median income for a family was $21,218. Males median income versus females’ is $26,875 to $21,510. About 39.9% of families and 40.7% of the population were below the poverty line, including 54.3% of those user age 18 and 34.1% of those age 65 over. In addition, Pembroke is led by the educational service. It was estimated 6,222 students registered which including 5,429 undergraduates ,793 postgraduates and 326 full-time academic staffs. But there are 1028 fully online students which is the 16.5% of UNCP’s total enrollment. That is to say, there will be still 5520 students and staffs in total. Age struct Percentage 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% under 18 18-24 25-44 45-64 over 65 age There are about 33 restaurants including dessert and drink store. in Pembroke. Most of the restaurants are American, including Chinese, Italian, Mexican. Only Domino’s Pizza have the online ordering and delivery service. Almost all the restaurants are located at downtown on the side of the main street, so there is no problem on the traffic. Through the analysis of population structure and income of the town. People between age 18-64 will be the target in the market, and they are 54.9% of the total population in the town which is 1632 people. And their income is above the poverty line. 5520 UNCP students and staffs will be a big market for the online ordering and delivery market as well. Especially for the students who don’t have a car to eat outside or don’t have time to cook for themselves. According to the analysis, online food ordering and delivery will have a strong vitality in the Pembroke. Competition For the food delivery service, there are two restaurants in the Pembroke supply the service. They are Domino’s and pizza Hut. Compared with the customers’ address, products will be delivered from the nearest store. Both of these two services are traditional food delivery service. It means they will only deliver the product which has been purchased in there stores, and both of them charge the deliver fee. For Pizza Hut the fees have ballooned to $2 to $3 in recent years, that money doesn't necessarily go to the person delivering pizza. No time guarantee. The operation hours 11:00am-10:00pm. It will cost 20- 30 mins to deliver. Domino’s charges $2 deliver fee. And they have 20 minutes “Guarantee” promotion. Domino’s will use reasonable endeavors to ensure that the customer’s order is delivered to the nominated delivery address in under fifteen or twenty minutes (depending on the option selected by the customer, with the time starting from when the customer’s order is received – this time can be seen in the confirmation email sent by Domino’s to the email address associated with the order). If for any reason your order is not delivered in under fifteen/twenty minutes (as appropriate), you will receive a Domino’s pizza voucher via email (containing a voucher code) redeemable online only, and redeemable only at the store the original order was placed with, for one free Traditional, Chef’s Best, or Value Range pizza. But the deliver fee will not give to the driver as well. Operation hours 10.30am-12:00am. Marketing Plan Service Faster Food is a food related delivery service. Operation hours is 7 days a week 6am12am. The company supplies an effect and high-quality delivery service for all the customers. Company has the guarantee the moment the diver get the customers’ ordered items will be in customers’ hands within 20 minutes. For a higher quality service, customers can track the driver and the purchased items in the Faster Food app. The name and the cell phone number of the driver is included. Company also has the service to help customer to deliver items within the Pembroke town. Place The company will be at the downtown of Pembroke. For the convenient and efficient job to gather the order items from the store. In most of the condition, customers just need app to order all the services. Products The products include Delicious Foods, Fresh Fruits and Vegetables, Drink and Desserts, On an Errand Delicious Food: Customers will enter the list of restaurant within the deliver capacity then select or search the store they want. The food shown in the menus will be exactly same as the dishes in the restaurant. Sometimes restaurant will offer special combo at a special price. American, Chinese, Italian, Mexica, Japanese and so on for customers to choose. At the end of the order, customer can leave the message for their preference on food. Starting delivery requirement depends on specific stores’ condition. Fresh Fruits and Vegetables: Customers will be able to get the list of stores which supply groceries then select or search the store they want. Companies guarantee all the fruits and vegetables are fresh and the price will be exactly same in the store. Special price groceries will be list at first. Starting delivery requirement depends on specific stores’ condition. Drink and Desserts: Customer will need to select or search the store they want. It includes bakery food, cakes, drinks, ice creams and so on. On an Errand: First, select the service options: flowers, food, fruit, document, electric devices, keys, clothes. The weight mush be under 44 lbs. and the price of the items must be under $455. Company guarantee will keep the customers’ privacy and items delivered at the aim place will be the same when they are received. After selecting the aiming service, customers need to fill the picking address, the senders’ cellphone number and the aiming address, receivers’ cellphone number. The time of picking and tips should be filled as well. Price Delicious Food Fresh Fruits and Vegetables Faster Food will charge 20% delivery fee Within 8.8 lbs. $1.5 from each order More than 8.8 lbs. $0.3/ lbs. (exceed) Drink and Deserts $2 per order On an Errand Within 1.9 miles $2 per order 1.9 miles-3miles $3 per order Note: Weight over 11lbs per mile add extra $0.5 Promotion To encourage the customers to use the Fasters Food’s delivery service. Company will service free each new user’s first order. In addition, any previous user who share the app to a new user will get a random amount voucher. Company will also sponsor the activities in UNCP to promote the reputation and introduce this service to students and professors. Poster will so be put up in communities, apartments and notice board and so on. The partner stores will also help company to promote the use of this service. Company will also put ads on Facebook, Twitter, Instagram and Snapchat. People who share the experiment with use of Fast Food in the social media will have a chance to get a random discount in any store. Website. Faster Food will an official website which customers can order services on the page. Website will also have a certain amount of vouchers for customers to log in and collect every Friday. Operations Business facilities Faster Food company will be situated on W 3rd St, Pembroke, NC 28372, a commercial property for rent. 700 square feet offices. In from of the office, equipped with sofa and table for receiving guests. Behind the sofa is office with 5 computers and wheelchairs. The print machine is equipment. The back office will be a restroom, a separate office room and a kitchen. Outside of office is parking area. 5 delivery motors and staffs’ vehicles park outside. Policies Payment policy All payment must be paid online by customers’ debit card or credit card to Faster Food. No other payment is acceptable. Refund policy All the refund will be completed by 7 workdays. Customer satisfaction policy Faster Food will offer a high-quality service within 20 minutes without unexpected factors. If the customer is not satisfied with the service, the company will send you a free chance to enjoy the service. Human resources policies Employees will be trained and involved in the company’s strategy. Employees will treat and service each custom fairly and no discrimination at any time. Workforce plan define and analyzed All employees will must be under the legal work age. Employees in delivery apartment will must have driver’s license and at least 1-year experience on driving motor bike. What’s more employees must familiar with the road in Pembroke town. Combine the value of company with employees own values to supply the best service for customers. The owner of the company will in charge of the company. An HR manager who is experienced in hiring and managing the changes of employees. One clean worker to clean the inside of office and kitchen. A delivery apartment manager and 5 employees in delivery apartment is responsible for the clean and the security of motors. Two computer engineers are responsible for the management of app and official website. An accountant who should be very intelligent on the financing activities and budget. There will be a purchasing staff who can be wise on managing the daily cost and purchasing daily supplies. Organizational chart Owner HR Manager Accountant Clean worker Department Manager 2 Computer engineer 5 Deliver Management and Organization Faster Food is operated by the owner, who has the skill of management. Employees are hired to run the company and managers will be the leader of the employees. They are efficient, skillful workers to serve customers. Owner The owner will take charge of the operation of company with marketing, HR, financial and commercial functions. The duties and responsibilities of the owner” Be a problem finder: be sensitive to the current situation of the operation and find the problem Be a leader: the owner should be responsible to all the efficiency of employees and make sure everyone is given clear target. Be a financial analyst: oversee the financial situation and make the correct budget. Be a marketer: make sure the brand can access the market by using the right decision Be a HR manager: hire, train the employees and make sure they are skillful Deliver The five employees will work at the department of delivery. Each of them should have the enough experience of driving motorbike, patience and value. The selection will focus on the long-term development and the value of employees along with the core value of the company. All of them should have an entire realization of the duty of delivery person and have at least 2-year driving experience. The should also be required some basic knowledge of how to fix motorbikes, keep the bike clean and the security of the motor. Web master The two computer engineers should be responsible for the web-site, app and update the social media on time. Make sure customers will have the accurate information. The operation of app and web-site should be guaranteed. Long term development Faster Food wants to dominate the food related and other delivery service business in North Carolina. The state has a population of 9,278,237 with 41% between 18 and 54. So the company expects to make the most of this large target market and hopes to expand its activity by serving more delivery service all over the state, with operation facilities in Fayetteville, Raleigh, Charlotte, Greenville, Wilmington, and their surroundings. The goal would be to have facilities all managed independently by a manager. Financial Statement The following statements, calculations and assumptions are made for a 12-month period excepted for the income statement that will be forecast for the three first years. It will be a forecast as accurate and realistic as possible. The accounting system will be based on an accrual-basis method recording the income and expanses when they are incurred.
Purchase answer to see full attachment