404 Business Plan

8/13/2019 404 Business Plan

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NUTR 404

Business Plan

Chef In Fridge

Natalie Meltzer, Katie Lechner, Gabby Monzon, Austin Hermosillo

11/20/2013


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1. Executive SummaryCompany Summary:Chef In Fridge is an established and unique personal chef business located in South San Diego,

California. Chef in Fridge has been growing in revenue and clientele each year catering to the

greater southern region of San Diego and is now ready to expand business to the northern region

of San Diego and Orange County to reach new clientele.The services that Chef in Fridge provides includes a chef entering the clients home to prepare

meals, package and store them properly with reheating and/or other instructions immediately

prior to consumption. The partners, who bring more than 20 years of management, restaurant,

and retail experiences to the company, are seeking a $10,000 loan for a 10% stake in our

business to facilitate the expansion of Chef In Fridge.1.1-Business OpportunityChef In Fridge is an up-and-coming business in the personal chef industry that is

currently based in San Diego, California. We are finding that more families are requiring

a dual income household and often time there is little time to prepare meals after

returning home from work. We have also found a greater opportunity among the single-

housed professionals and the elderly population. San Diego has been a great place to start

our business, as there are 3.1 million people in the San Diego County (FactFinder). San

Diego is becoming increasingly aware and conscious about making healthy choices and

becoming more of a health conscious consumer, this makes San Diego the perfect place

to expand Chef in Fridge. These people will find that having a freshly made, readyprepared meal in their house will fit their fast paced lifestyle.1.2-Product/Service SummaryChef In Fridge will be providing services to the greater San Diego County and will

expand to Orange County. After one complete session with CIF, the customer will start

with the base package and have seven days worth of home cooked meals that are

prepared, packaged, and stored in the home of the customer. Any additional meals will be

at the discretion of the customer for an extra charge. The meals will be chosen from a

standard menu with several additional meals and preferences to please the customersdesires. Each meal will be pre-portioned and have reheating instructions for ease of the

customer.

An additional service that is offered by Chef In Fridge are counseling sessions with a

registered dietitian. A client has the opportunity to meet one-on-one with one of the RDs

on staff to discuss food and nutrition.


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1.3-Current Business PositionChef in Fridge is currently owned by four partners: Katie Lechner, Natalie Meltzer,

Gabby Monzon, and Austin Hermosillo. All owners are equal partners, each owning 25%

of the company.

1.4-Financial PotentialThe projected profit and loss for Chef In Fridge will be that of a sales increase of about

$150,000 for the first month to close to $300,000 by at least the third year through the

proposed expansion plan. There may be a slight loss at the initial start up of the

expansion but Chef in Fridge is expected to break even within the first six months of the

expansion.


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Profit Monthly1.5-The RequestIn the first year of business, Chef in Fridge made a little over $150,000 in sales and after

three years of business, the number of sales have been increasing dramatically after eachyear. At the rate that Chef in Fridge is going, the expected profits made for this year

would be over $100,000. Therefore, Chef in Fridge is seeking a loan of $10,000 in order

to expand into northern San Diego and Orange County, to procure new office/storage

facilities, and to purchase more equipment.

Sales, Gross Margin and Net profit for years 1, 2 and 32. Company BackgroundAustin, Gabby, Katie, and Natalie all lead busy lives in the of field of nutrition. The company is

set up such that each person owns an equal part. The partners recognized a need for not only a

personal chef business, but a personal chef business that focuses on healthy quick meal options.

Chef in Fridge recognizes a market gap in the personal chef field. With an ever rising obesity

trend in this country, Chef in Fridge sees it as an opportunity to help provide affordable quick

nutritious meals for those with busy lives that would otherwise turn to less nutritious options.

2.1- Business DescriptionChef in Fridge provides home cooked meals that are targeted towards the working class

professionals, dual income households, and the elderly and with pricing rates that even

the single parent household could afford. Delicious, nutrient dense meals are prepared on


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site at the clientshome by the head chef and sometimes assisted by a sous chef. All of

the items are portioned out and stored in the clientsfreezer. All of our products are

cooked and prepared with the least amount of preservatives possible, so the products are

meant to be consumed fresh within one week. Frozen meals can be stored up to one

month.

2.2-Company HistoryThe four partners became associated in 2010 as college students at San Diego State

University, all aspiring to become Registered Dietitians. Our passion for food and skilled

techniques in the kitchen eventually turned into the business idea of Chef In Fridge. We

conducted extensive research on how to prepare healthy and ready-to-eat food for the

working professionals who are too busy to maintain a healthy diet with their busy

schedules. Our research indicated that there were no other companies quite like Chef In

Fridge in the San Diego. The absence of a similar business drove the four partners to the

beginning of Chef In Fridge.2.3- Current Position and Business ObjectivesChef In Fridge is currently in the expansion process. The expansion of offices from

southern to northern San Diego will attract new business clients and opportunities.

Chef In Fridges mission statement is as follows:Chef In Fridge has a goal to create every meal to the highest quality in the clients home.

We are committed to creating meals with fresh ingredients and no preservatives,supporting a healthy lifestyle, and supporting efforts to reduce our carbon footprint.

Long-term goals for Chef In Fridge include an expansion into North San Diego and

Orange County. We would like to hire more qualified employees to be capable to provide

our services to future clientele.

3. Ownership and ManagementThe partners of Chef In Fridge are Registered Dietitians all with adequate experience in the

hospitality industry. The partners are aware of the management and operation duties as well asmaintaining their customer contacts in the business. The following sections will discuss the

managerial roles of the partners.

3.1- Management/PrinciplesNatalie Meltzer has three years of management experience at Fresh Millions, a local salad

shop based in the county of San Ramon. She graduated from San Diego State University


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with a degree in Food and Nutrition and a minor in business administration. Like all of

the other chefs in Chef In Fridge, she has her credentials as a Registered Dietitian.Austin Hermosillo has many years experience working with inventory and customer

service at Pacific Market in Santa Rosa, California. Austin is not only a Registered

Dietitian but has worked as a sous chef alongside some high profile chefs in the industry,

such as Chef Bobby Flay, Chef Gordon Ramsey and many others.3.2- Organizational StructureChef In Fridge will be structured as an equal partnership. In order to ensure a strong

infrastructure that is sustainable, the four partners delegated areas of the business where

they have their primary responsibilities.The partner in charge of finances, including purchasing power, utility and rent bills, and

the exchange of money between CIF and client is Gabby. Gabby is also in charge of other

administrative authority. Katie is in charge of client bookings, advertising, and marketing

for the company. She talks to other companies to gain sponsors and form a positive

relationship with other companies in the community. Natalie has management control

over the company. She ensures CIF is running smoothly and is directly involved with

answering questions and handling and negative feedback from clients. Since Austin has

extensive experience working as a chef, he is the lead chef. Austin creates standard

recipes and communicates with clients to be sure to plan the best meal plan for each

individual.

3.3- Professional ConsultantsDue to the size of the business and the industry experience of the partners, the need to

hire outside the consultants would only be the need to hire sous-chefs due to the

increased demand for service. The need for accountants would be minimal to none

because Natalie has an accounting background.4. Products and Services Summary

Chef In Fridge will provide five services for customer. The services provided are meal planning,grocery shopping, meal preparation, recipe directions, and nutrition counseling.

4.1- Product/Service Overview


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1. Meal planning: Chef In Fridge uses information from the customer based on dietary

needs, food preferences, and price range to create the perfect meal plan. Chef In Fridge

specializes in dinner meal planning, but plans all meals in the day, including snacks.2. Grocery shopping: Utilizing Chef In Fridge will allow the customer to seldom or never

have to return to the grocery store ever again. CIF buys items based on the needs of the

meal plan, but upon requests, will purchase additional food items from the grocery store

to be stored in the customers kitchen.3. Meal preparation: The benefit of using Chef In Fridge includes healthier eating and

having a home cooked meal each night. CIF uses the clients own kitchen to prepare the

meals and store them until eaten. This allows customers to spend less time in the kitchen,

have time to have a family meal or save time for other projects and commitments, and

have an easy clean up because all food items are stored in biodegradable containers.

4. Recipe directions: After each meal preparation, directions to replicate the recipe are

left for the customer. Each recipe provides reheating instructions and information on how

long the meal can be stored in the freezer or refrigerator.5. Nutrition counseling: Chef In Fridge employees include several registered dietitians.

Their extensive knowledge gives them the credibility to provide nutrition counseling for

clients. These sessions that are available for clients are one of many things that set CIF

apart from other personal chef companies.

Example of Products Offered4.2- Competitive Analysis

Competitor My Five StarChef:

Dinner Is On The UpscaleBistro Chef In Fridge

Products None None None NoneServices Creates all

meals forprivate home;packaged and

Creates entreesfor privatehome; packagedand stored

Creates a fourcourse meal inthe privatehome; uses a

Create all typesof meals forprivate home;packaged and


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stored standard menu stored withreheatinginstructions;offer nutritioncounseling

Quality High Quality Low Quality Ultra-finedining High Quality

Pricing Depends onrecipe andquantity;average of $60per person permeal

Cost of groceriesand base price $90 per personplus cost of

travel andgroceries

Base price of$200 plus $40per hour; priceof groceries

Locations All of SanDiego Countyin home

North San DiegoCounty in home

Orange County;Ventura County

All of SanDiego; wouldlike to expandto OrangeCounty

Market Share ~30% ~40% ~20% ~20%Years in Business 9 years 11 years 6 years 3 yearsOwnership Larry Michaels Shelley Odelson Andres

Dangond Partnership:NatalieMeltzer, KatieLechner,GabbyMonzon,AustinHermosillo

Financial Strengths Services arecheaper whenthey areoffered ingreaterquantities

Prices do notinclude cost oftravel

Pricing is perperson Set prices allowclient to feel

more in control

Importance of

Product to Business Important Low importance Very important Very Important

Advertising Showcased onSan Diego

Showcased onSan Diego

Showcased onwww.kichit.co

Showcased onSan Diego


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personal chefwebsite;companywebsite; YelpDeal voucher

redeemable for$100 for $50

personal chefwebsite m personal chefwebsite;

advertisementsand brochuresat outpatient

clinics;companywebsite; ForbesMagazine

Image Classy Outdated Fancy; Classy;Formal Upbeat;professional

Customer Profile Corporatebusiness;cocktail

parties; privatehome

Private homeonly Private homefor a dinner

party/guestsPrivate homeonly

Strengths Summary Covers all ofSan DiegoCounty

Experience inpersonalcheffing

Experience infine cuisine Affordableprices

compared tocompetitors

Weaknesses Summary One employeeas assistant inkitchen

Poor advertising;no employees

Servicesprovided are forone dinner meal

(catering), not aweek supply ofmeals

Limited topreparingdishes for

storage, havenot ventured tocateringservices

Market share (%) was calculated with the knowledge of the share of customers served using the

calculation of number of houses served divided by number of potential customers times one

hundred (Dummies, FactFinder). Information for this chart was determined using the websites of

the companies (My Five Star Chef, SD Personal Chefs, and KitChit).

4.3- Suppliers and InventoryChef In Fridges equipment, groceries and produce will be supplied by various vendors,

including the following: foodservicewarehouse.com, Sysco, and the grocery stores Vons


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and Costco when needed for quick grocery trips for clients. CIF has chosen to use these

vendors because they are cost effective, established, and trustworthy companies to do

professional business with.

These suppliers are located in the region which our business is growing. Costco and Vons

are not found in all areas of the United States, but as the CIF company grows, more

vendors will be added as official suppliers. Foodservicewarehouse.com offers all kitchen

supplies necessary for CIF to operate. Sysco and Costco offer wholesale distribution that

is ideal for big ticket items such as flour, rice, sugar, and potatoes. Vons has been

selected as a vendor because it offers smaller items that may be purchased for clients.

There have been no problems in obtaining supplies and inventory. On a day to day basis,

CIF has an inventory of 14 days worth of wet food items and 30 days worth of dry

food items to ensure wholesomeness of products.4.4- Research and DevelopmentThe success of Chef In Fridge will grow from customer satisfaction of the benefits of

having ready prepared and healthy meals that fit into their lifestyle. This type of service is

not available in grocery stores without the high salt and added preservatives in frozen

food.Due to the increased demand for Chef In Fridge, the four partners are now looking to

expand. The expansion will include hiring sous chefs, purchasing additional cooking

equipment, increasing promotion events and expanding to new cities.

5. The Industry, Competition and Market

The personal chef industry is generally recognized as the entrepreneurial side of the culinary

world. This industry brings in millions of dollars of revenue a year and is continually growing at

a rapid rate. The competition for this industry is not comparable to the of Chef in Fridges

business due to the fact that no other personal chef business has the complete services that Chef

in Fridge offers. San Diego's market is the perfect place for Chef in Fridge's business because

with the health craze on the rise, San Diego is ranked number 2 on the list for the top-10 health

conscious cities.5.1- Industry Definition -- Market Analysis

The personal chef industry is the entrepreneurial side of the culinary world. This industry

generates approximately $52 million a year and the estimated clients served is estimated

to be at 72,000. At the rate that this industry is growing, within the next 5 years there will

be nearly 20,000 personal chefs in the United States, serving to 300,00 clients and

contributing about $1 billion in revenue (APPCA).


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Personal chefs have the reputation of being only for the rich and the famous however the

clients that personal chefs have range from working singles to large families and seniors.

Personal chefs are utilized in many areas such as for seniors who dont want to go into

assisted living homes, for fine dining and for homemade comfort foods (Chef Crossing).This industry is not only thriving but itslooking as if personal chefs are here to stay.

More and more chefs are looking to owning their own business and taking charge of the

way they express their culinary creativity. People are getting busier and busier and are

too busy to prepare meals that are healthy, delicious and nutritious or they have all the

tools and supplies to create the meals but don't know how. This is where this industry is

booming and now more people are looking to hire personal chefs to take the ease off of

their busy load. Hiring a personal chef gives the customer a cheaper alternative to

restaurant quality food without having to pay for restaurant quality food while also being

able to eat from the comfort of their own home.5.2- Primary CompetitorsSan Diego currently has other personal chef businesses. Two other popular companies are

Dinner Is On and My Five Star Chef (SD Personal Chefs).After reviewing these personal chefs in San Diego, it is clear that we have an advantage

over them. This is due to most personal chefs in the San Diego area being private

practices which may cause their prices to be exponentially high in comparison to CIF (SD

Personal Chefs). Chef in Fridge's pricing has been set so that all walks of life, from theworking class to the single mom to the elderly or even to those just too busy to cook. This

was done so that our clients could afford our services while still allowing CIF to make a

hefty profit. In turn, offering lower prices also led to massive referrals from clients which

gave CIF a big lead in the personal chef business. However, Chef Shelley Odelson and

Chef Larry Michaels are two personal chefs who CIF believes are their primary

competitors.

Chef Shelley Odelson claims to customize a menu to suit taste and dietary goals, which is

also a claim CIF makes (SD Personal Chefs). Chef in Fridge has an advantage because of

the extensive schooling our employees have gone through to fully be able to meet sensoryand dietary desires. Not only do our employees have extensive backgrounds in the

culinary arts but they are also registered dietitians as well. Currently, Chef Shelley

Odelson only serves the Northern County of San Diego (SD Personal Chefs). Chef Larry

Michaels offers many of the services that are similar to Chef in Fridge but caters to all of

San Diego county (SD Personal Chefs). Chef in Fridge's ultimate goal is to expand to all

of San Diego County as well as to Orange County.


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By examining our primary competitors, we have learned that overall we have succeeded

and surpassed other personal chefs in our area due to our advantage for the locations that

we serve and an advantage for the amount of services that are provided (SD Personal

Chefs).5.3- Market SizeSan Diego is a city that has a diverse population and is located on the very southern tip of

California. It is home to about 1,326,000 people ranging from young, old with a plethora

of different races and ethnicities and is continually growing every single day. (SD County

Quick Facts) San Diego alone takes up 4,206 square miles in California, making it the

eighth largest city in America and the second largest city in California. The adult

population in San Diego is roughly around 821,000 people, this market includes adults

from the age of 20-55 years old (SD: Population Profile). The median household income

for San Diego is $45,733.

5.4- Market GrowthSan Diego is an ideal location for Chef In Fridge to continue to be a thriving business.

San Diego's huge market size and high percentage of upper class working professionals

make it so that there are many opportunities for Chef In Fridge to expand. In America,

more than one-third of the adult population are obese and this epidemic is the most

serious and most costly condition that America faces. The growing trend in America is

the food industry. Due to the high population of adults being obese, the health craze isalso on the rise causing more and more consumers to be health conscious (Adult Obesity

Facts). San Diego is ranked number 2 on the top 10 most health-conscious cities in

America (Idea Fit). Chef in Fridge has realized this need and has chosen San Diego

because the industry is definitely on the rise and doesnt seem to be going anywhere.


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Market Analysis Compared to Competitors5.5- Customer ProfileChef In Fridge has three target customer populations which has been determined based

on the size of the population, the competition CIF has in the market, and the strengths,

weaknesses, opportunities and threats that have been analyzed for our company. Working class households with no children. This customer has a daily hectic life

that is constantly being controlled by their professional careers. It would be

advantageous for this customer to use CIF to meet their desires for a healthy andtasty meal every day while minimizing or completely removing time spent

preparing food in their kitchen. This customer recognizes the benefit of a home

cooked meal through the utilization of CIF.

Working class households with children. This customer has a daily hectic life thatis primarily controlled by the lives of their children, their childrens activities, and

their own career. This customer recognizes the benefit of having prepared meals

each day to save free time to enjoy with their children.

Elderly citizens. This customer is the fastest growing population in the UnitedStates (US Population Growth Rate). This customer would benefit from CIF

services because many elderly citizens no longer have the ability to effectively

cook for themselves in their kitchen.


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Market Analysis of Segmented Target Market

6. Marketing PlanChef In Fridge marketing plan will reach out to consumers through fliers, social media, and

word of mouth. Chef In Fridge will emphasize the quality of our meals as well as their

convenience.

6.1- Competitive Advantage

There are no other businesses in the San Diego and Orange County that offers the sameservices that we offer. We focus exclusively on following guidelines set by the Academy

of Nutrition and Dietetics. Our clients are granted one free consultation with a dietitian

during any time of their service with CIF. Our services go directly to the client. We hire

trusted employees that have undergone multiple interviews and a background check

before being hired. The ingredients we use for our meals are always fresh, as we receive

weekly shipments of foods for bulk orders and go to grocery stores for ingredients on an

as-needed basis. There are no other businesses like us who offer flexible hours, seven

days a week, and allow the client, if desired, to create meal ideas to fit exactly what they

want.

6.2- PricingResearch in other personal chef businesses in Southern California have indicated several

different methods of pricing. Some methods of pricing that are used include: pricing per

person, pricing by the hour, pricing determined by cost of groceries, or a standard flat rate

(Pricing Methods).


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Chef In Fridge will use a combination of two methods to keep cost down for our clients,

they are as follows:Base Price: $200Price of GroceriesNutrition Counseling: first session free; $50 for half an hour

.6.3- Distribution ChannelsOur primary facility is our headquarters at the Foremost Professional Plaza in San Diego,

CA. At this location, we handle our paperwork amongst clientele as well as serve as a

home base for our employees. Here, whichever partner is in the office schedules

appointments with clients and goes over a detailed summary of the planned services.

Clients are able to come in to the office for a more personal arrangement of our services.

6.4- Promotional PlanChef In Fridges marketing strategyis important to reach new customers who have not

yet heard of our business. Our marketing mix campaign will involve print advertisements,

social media, sponsorships, and incentives to use our services. Flyers and Pamphlets: To be distributed at the local fairs, big culinary events,

medical offices, outpatient clinics, and shopping centers in San Diego and Orange

County

Social Media: Facebook, Twitter, Yelp, and our own dynamic website willprovide updated information about our business. Social media will be a vital

aspect of our marketing mix.

Sponsorships: Local radio stations will mention our services Referral discounts: Clients are encouraged to spread the word of our services to

their friends and family. If a new customer joins our services because of a referral

from one of our current clients, referee will receive 10% off the base price of their

next service.

6.5- FeedbackChef In Fridge will receive feedback from clients by using an assortment of methods

Follow up phone call: This direct method will form a relationship with clients andallow CIF chefs to know strengths and areas of improvement for services. It will

allow clients to ask questions directly to the chef


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Yelp page: A yelp page will provide a place for our customers to rate and/orreview our company. We will encourage our customers to use our yelp page for

promotional purposes

Comment section/survey on website: Our website will provide a section forclients to add comments and rate their experience with CIF. The comments and

ratings will be open for the public to see.

Questionnaire: A questionnaire will be stapled to the grocery receipt after eachtrip to the grocery store for the client. CIF will leave the receipt and stapled

questionnaire with client and can be mailed in with the bill for groceries or picked

up with the bill.

7. Operating Plan

Chef In Fridge has a primary location in San Diego, CA. The purpose of this main office is for

necessary paperwork, phone calls, organizing and planning with colleagues and clients to take

place. This is also where we park the company vans. The equipment in this facility is minimal, as

the equipment we use most often will be stored and kept in our travelling vans. The following

sections go further into detail about our operating plan.7.1- LocationThe Chef In Fridge headquarters will be located in the Foremost Professional Plaza at

12396 World Trade Drive in San Diego, CA. (LoopNet). The CIF office is 507 square

feet and costs $27 per square foot; the total rent for one year is $13,689 (LoopNet). To

provide services to our customers, our staff will be traveling to the homes of our clientswithin San Diego and in Orange County.A second facility is planned to be added in the eighth year of operation in Orange County

once we are an established company after our expansion. The location is to be

determined.7.2- FacilityThe facility that CIF utilizes is 507 square feet. The main headquarters will contain an

office that is suitable for client consultations if necessary. The office is available fordeveloping recipes, preparing client meal plans, personal consultations, developing

internet advertisements, the business telephone, and all mail will be sent to this location.

However, the main facilities that majority of the employees will be working at will be in

the clients personal homes.

7.3- Operating Equipment


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The chefs that will be traveling to and from the homes of clients will have operating

equipment that include a van to transport all the fresh produce, meats and other food

items. Personal pots, pans, cooking utensils and disposable storage Tupperwareswill

also be utilized by the chefs (Restaurant Equipment and Supplies).

In the main headquarters, the operating equipment are telephones that will be used for

scheduling consultations, making appointments or any other questions that a client may

have. A computer and printer will also be used to record down appointments, recipes,

nutrition counseling notes and will have all of the clientsinformation regarding

consultation, meal plans and etc.A table of operating equipment, the source of each item, and the cost is provided in the

appendix.

7.4- Suppliers and VendorsChef in Fridge vendors will include Sysco and Costco for the items that can be purchased

in bulk such as large staple items and the containers that will be used for food storage.

Other local grocery stores will be utilized to obtain fruits and vegetables that is of the

freshest and highest quality (Restaurant Equipment and Supplies).7.5- Personnel PlanThe four main partners will be performing the majority of the cooking in the clients

homes. At least one partner will be operating from the business office during operation

hours. Each of the employees at Chef in Fridge operate however throughout the various

counties of San Diego. There is an employee that operates out of east county, south bay

and the various beach cities. We are looking to expand and hire more personnel who will

work in parts of north county and to the greater Orange County area. Currently, all

payroll is divided equally between the four partners.


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7.6- General OperationsThe main headquarters is open seven days a week from 8am-4pm. Chefs will travel to the

customers homes at the appointed time discussed between the client and chef.

8. Goals and StrategiesChef In Fridge will be the first large scale personal chef business with multiple chefs to service

San Diego and Orange County. The companys experienced dietitians/chefs, marketing plan, and

affordable rates compared to other personal chefs are expected to lead the partners to financial

success.8.1- Business GoalsChef In Fridge's business goals are as follows:

Expand to Northern San Diego and Orange County in the next 6 months Expand to Los Angeles County in the next 12-18 months Hire more qualified employees: sous chefs and registered dietitians to facilitate

the expansion

Increase client base from the expansion Increase revenue from the company while limiting expenses as much as possible To become more efficient in dealing with business and clients while increasing

productivity

8.2- Keys to SuccessChef In Fridge success will come from providing quality service and delicious products

unavailable in any grocery store. The success will come from the appeal the business has

on its customers and their satisfaction with the products. San Diegos large population of


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working professional will help to excel Chef In Fridges successful outcomes. No other

business currently provides the type of service Chef In Fridge does which will cause the

customers to develop loyalty to the company. Another key to Chef in Fridge success

would be marketing paired with competitive pricing. The marketing techniques to gain

customers will be through fliers, advertisements in newspapers as well as social media,

and special event promotions where Chef In Fridge will display the benefits of the

business. Through these means the customer will be able to clearly see the comparison of

our services and prices to the other competitors out there and realize that Chef in Fridge

will definitely be the better choice.8.3- Future PlansSince Chef In Fridge has proven to be a successful business, the partners are now

exploring possible franchising opportunities for new locations and possibly new cities.

Chef In Fridge future plans include: To expand to Central California by the end of year ten To explore additional expansion through the creation of products: aprons,

dishware, Tupperware, etc. by the end of year fifteen

To explore additional expansion through retail locations for products by the endof year fifteen

9. Financial AssumptionsThis section of Chef In Fridges business plan will summarize the financial assumptions used in

the creation of the projected financial outcomes.

9.1- Beginning Balance Sheet


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The total organization start up expenses for Chef In Fridge is $41,515. The initial cash

investment from the four partners equals $250,000, and with the addition of short-term

and long-term loans, the total cash infusion for the organization is $282,080.9.2- Profit and LossThe total cost of sales increased from year one at $43,795 to $65,315 in year three. With

the addition of operating expenses the total expenses for the business equated to $88,520

in year one to $96,884 in year three.

9.3- Balance SheetCash: Chef In Fridge made $240,836 in year one, $269,348 by year two, and $293,010 in

year three.

Accounts Receivable: Chef In Fridge works primarily with customer accounts. The

accounts in year one totaled $6,344 in year two, $9,198 and by year three, the accounts

have grown to totaling 10,365.Inventory: On a day to day basis, CIF has an inventory of 14 days worth of wet food

items and 30 days worth of dry food items to ensure wholesomeness of products.9.4- Cash PlanChef In Fridge will bill customers at time of service; customers will pay the base price up

front and will be billed subsequently for groceries. These transactions will be considered

cash transactions.Inventory Purchases: These purchases will be made through the official CIF suppliers,

Costco, Sysco, Vons and Food Service Warehouse. CIF will plan to have cash on hand

for at least 14 days worth of perishables and 30 days worth of dry goods.Distributions: Due to the uncertainty of business, partners can expect at least $1,000 per

month in the first three years. In years two and three, the partners can assume an increase

in monthly payouts.10. AppendixOperating Plan EquipmentBeginning Balance SheetProfit & Loss - Years 1, 2, & 3Balance Sheet - Years 1, 2, & 39


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Cash Plan - Years 1, 2, & 3Ratio Analysis - Years 1, 2, & 3Personal Financial Statement


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