PARTS OF BUSINESS PLAN

1. Executive Summary

 The executive summary is the most important part of the business plan. It should effectively summarize
the business's goals and objectives. What makes the startup unique? How is the startup qualified to solve
the industry's biggest challenges? What does organization do to "wow" consumers?
 "Think of the executive summary as an advance organizer for the reader. Above all else, it must be clear
and concise. But it also has to entice the reader to read the rest of the business plan," says Susan Ward,
contributor at The Balance. Because the executive summary serves as an overview of the entire plan,
write it last. As a baseline, the best startups.

2. Company history
 is a record of pivotal moments in your business from its origins to present-day. It organizes milestones,
accomplishments and the work of influential figures into a cohesive narrative. Your corporate history is
built on facts, but the way you present it can bring your company’s strengths, leadership, culture and
values to the forefront.

3. Product description
 portion of a business plan describes all the products a business manufactures. Your product description
section should also explain how your products stand out from comparable items on the market or the
need for your product if no market already exists. This section needs to be easily understandable by
anyone who reads your plan to ensure the value of your products is clear.

4. Market Description
 This data should include demographics on the group you are targeting including age, gender, income
level, and lifestyle preferences. This section should also include data on the size of the target market, the
purchase potential and motivations of the audience, and how you intend to reach the market.
 A market is any place where two or more parties can meet to engage in an economic transaction—even
those that don't involve legal tender. A market transaction may involve goods, services, information,
currency, or any combination of these that pass from one party to another.

5. Competition
 Competitive analysis involves identifying your direct and indirect competitors using research to reveal
their strengths and weaknesses in relation to your own. Direct competitors market the same product to
the same audience as you, while indirect competitors market the same product to a different audience.
6. Marketing Strategy

 A marketing strategy is a business's overall plan for reaching prospective customers. Usually, a
marketing strategy describes a value proposition and key messages, and it has information about who
the target market is - where they shop and what drives them to make a purchase.

7. Manufacturing Plan

 The collective term manufacturing planning includes needs to include such factors as plant location, the
type of facilities needed, space requirements, capital equipment requirements, and labor force (both full-
and part-time) requirements. Measures for the production of products, product parts, and complete
assemblies. It thus creates and controls the conditions under which the entire production process
follows.
 Business Plan

Fancy’s Foods, LLC.

 2409 Oak Hollow Drive Antlers, OK 74523
(580) 298-2234

Keith Bean Marianne Bean

December 1, 1998

Table of
Contents
Executive Summary......................................2
Background and History................................4
Description of Products.................................4
Market Description........................................4
Competition...................................................5
Marketing Strategies......................................5
Manufacturing Plans.....................................6

EXECUTIVE SUMMARY
Marianne and Keith Bean have been involved with the food industry for several
years. They opened their first restaurant in Antlers, Oklahoma in 1981, and their second
in Hugo in 1988. Although praised for the quality of many of the items on their menu,
they have attained a special notoriety for their desserts. After years of requests for their
flavored whipped cream toppings, they have decided to pursue marketing these products
separately from the restaurants.

Marianne and Keith Bean have developed several recipes for flavored whipped
cream topping. They include chocolate, raspberry, cinnamon almond, and strawberry.
These flavored dessert toppings have been used in the setting of their two restaurants over
the past 18 years, and have been produced in large quantities. The estimated shelf life of
the product is 21 days at refrigeration temperatures and up to six months when frozen.
The Beans intend to market this product in its frozen state in 8 and 12-ounce plastic tubs.
They also intend to have the products available in six ounce pressurized cans. Special
attention has been given to developing an attractive label that will stress the
gourmet/specialty nature of the products.
 Distribution of Fancy’s Foods Whipped Dream product will begin in the local
southeastern Oklahoma area. The Beans have an established name and reputation in this
area, and product introduction should encounter little resistance.

Financial analyses show that the company will have both a positive cash flow and
profit in the first year. The expected return on equity in the first year is 10.88%

BACKGROUND AND HISTORY

Marianne and Keith Bean have been involved with the food industry for several
years. They opened their first restaurant in Antlers, Oklahoma in 1981, and their second
in Hugo in 1988. Although praised for the quality of many of the items on their menu,
they have attained a special notoriety for their desserts. After years of requests for their
flavored whipped cream toppings, they have decided to pursue marketing these products
separately from the restaurants.

DESCRIPTION OF PRODUCTS

Marianne and Keith Bean have developed several recipes for flavored whipped
cream topping. They include chocolate, raspberry, cinnamon almond, and strawberry.
These flavored dessert toppings have been used in the setting of their two restaurants over
the past 18 years, and have been produced in large quantities. The estimated shelf life of
the product is 21 days at refrigeration temperatures and up to six months when frozen.

The Beans intend to market this product in its frozen state in 8 and 12-ounce
plastic tubs. They also intend to have the products available in six ounce pressurized
cans.
MARKET DESCRIPTION

The flavored whipped toppings that Fancy’s Foods market will fall into two
distinct categories: Dairy products and gourmet/specialty foods. This business plan will
look at these two markets separately.

Dairy Products: While the overall consumption of dairy products in the United
States declined from 1972 to 1994, the market has seen a slight increase in the past four
years (Census of Agricultural Products, 1998, USDA). Dr. John Moore of the University
of Florida expects the consumption of dairy product in the United States to continue a
modest increase of 1.5-2% per year, which is significant in this $268 billion annual
market. This is attributed in part to more sophisticated processing techniques which have
increased the variety of dairy products available, as well as the increased awareness of
the benefits of a calcium rich diet (Moore et al, 1998).

Gourmet/Specialty Products: Kalorama Information LLC, a market research

firm based in New York, indicates that the gourmet/specialty foods market will continue
a fast paced growth well into the next decade. This $39-billion domestic industry has
doubled since 1992, and is expected to continue double-digit growth through 2002.
While demographic information indicates that this sector of the industry is strongest in
metropolitan areas, there are also growth opportunities in smaller communities.
Packaging and point of purchase marketing efforts are especially important in this
market, and special attention will be given to these aspects of Whipped Dream.
COMPETITION

There are several brands of whipped topping available in mainstream retail

outlets. In the grocery stores in the Antlers and Hugo area, all of the ready-to-eat
varieties are produced by large players, specifically Kraft and Sara Lee. There are also
dry mixes available, but these are not direct competition for Whipped Dream. According
to sales figures at grocery outlets in Antlers and Hugo, approximately 65% of the
national brand prepared whipped topping is sold in frozen tub form, while the remaining
35% is in pressurized can form.

The strengths of these products are their market shares and distribution channels.
They are available in virtually any retail grocery outlet, and have gained strong market
acceptance. They are also distributed with other refrigerated and frozen dairy products.
Finally, they are priced at $1.29-1.89 per 8-ounce tub or 6-ounce pressurized can, an
advantage when compared to the suggested retail price of Whipped Dream.

The weakness of these products is in the lack of variety. None of these

companies produce or market a flavored topping. Several of the products are also
classified as ‘whipped topping’, but are actually not dairy based.

MARKETING STRATEGIES

Distribution of Fancy’s Foods Whipped Dream product will begin in the local
southeastern Oklahoma area. The Beans have an established name and reputation in this
area, and product introduction should encounter little resistance. The managers of
Pruett’s IGA and Gardiner’s Grocery in Antlers, as well as Pruett’s in Hugo, have
indicated that they are willing to carry the products. Their letters of intent and
endorsement are included in the Appendix section. It is also important to note that
Gardiner’s Grocery puts an emphasis on specialty food products in addition to standard
grocery items.

After Whipped Dream’s debut in Antlers, Hugo, and surrounding towns, Fancy’s
Foods intends to participate in the “Made in Oklahoma” Demonstration Program
administered by the Oklahoma Department of Agriculture and Pratt’s Foods in
Oklahoma City. This program will enable the Beans to introduce Whipped Dream into
the Oklahoma City metropolitan area under more favorable market conditions. Fancy’s
Foods also intends to enter the grocery and specialty markets in the Tulsa area in 2000.
The Beans will rely heavily on in-store displays and demonstrations in southeastern
Oklahoma stores, as well as those in Tulsa and Oklahoma City. They will demonstrate
the flavored topping in conjunction with fresh fruit during warmer months, and as a
topping on gourmet coffee and hot chocolate in the cooler months.

Special attention has been given to developing an attractive label that will stress
the gourmet/specialty nature of the products. A copy of the label is attached in the
appendices. Linda Byford, a business planning and marketing specialist at the Oklahoma
Food and Agricultural Products Research and Technology Center at Oklahoma State
University assisted with developing the label, and conducted a focus group study to
evaluate the image projected by the label as well as the packaging.
 MANUFACTURING PLANS

Because Fancy’s Foods owns and operates two restaurants, they have facilities
available to them for a certain amount of the production. Robert Battles, the Pushmataha
County inspector for the Oklahoma Health Department, indicates that The Beans can use
these facilities to manufacture food available for retail sale provided that the production
occurs while the restaurant is not open to the public.

Fancy’s Foods has a 50-gallon high speed mixer, a pressurized tank in which the
product can be gassed with nitrous oxide, and a 10-foot by 10-foot walk-in freezer,
enabling them to both produce and store frozen tubs of Whipped Dream. This process is
already established on a commercial scale. They are in fact already making Whipped
Dream for use in their restaurant, and storing it in the freezer.

Keith and Marianne feel that the specialty nature of the product will lend itself
well to the pressurized can, and this was confirmed by the focus group conducted at
Oklahoma State University. To pursue that opportunity, Fancy’s Foods has contracted
production of the pressurized 6-ounce cans with Farm Fresh, an Oklahoma dairy
processing firm. A non-competition/non-disclosure agreement is in place, and a copy of
this document is included in the appendices.