OLIVER

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OLIVERS PASTRY

• Business Plan

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CONTENTS

• EXECUTIVE SUMMARY
• MISSION STAEMENT
• PRODUCT DESCRIPTION
• ADMINISTRATION
• MARKET ANALYSIS
• BUSINESS CONCEPT
• GOALS AND OBJECTIVES
• FINANCIALS
• a) Start up costs
• b) Eight hour production
  cost(1day).
• c) Twelve Sales forecast
• d) Twelve months cash flow
• e) Twelve months Profit Lost
• f) Five year financial plan
• KEY SUCCESS FACTORS
• SALES AND MARKETING
• EQUIPMENT NEEDED
• INGREDIENTS LISTING
• PAYROL LISTING

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Executive Summary

• Olivers Pastry is a producer of high end quality
  rum cakes as specialty tourism product. We also
  produce snacks and drinks for schools with a
  reputation for integrity, transparency, trust and
  quality customer service backed by excellent
  management concept.
• By year two annual sales will increase to well
  over 67 million dollars.
• Olivers Pastry was formed by Oliver Fagan as a
  Sole Proprietorship in December 2004. In 2006 a
  combination of his baking skills, and hired
  partner Nadia Fagan and succeeded with Gross
  Sales of 366,000.This business they operate on a
  part time basis as they were full time employees
  in hospitality.
• The Company experienced steady growth since its
  inception in 2004. In 2005 Olivers Pastry was
  selected to be the supplier of authentic Jamaican
  delicacies to the Ritz-Carlton Golf Spa Resort,
  Rose Hall for their guests recognition program.
  Other souvenir outlets sought to have these
  products as well both locally and overseas.
• The Company has as its address a rented premises
  at 124 Armstrong Terrace Coral Gardens, Montego
  Bay, St. James. Its activities witch falls under
  food Industry Classification under the Public
  Health Act as bake and pastry shop.
• OLIVERS PASTRY is involved in three major
  activities
• 1) RUM CAKE (SPECIALITY
  PRODUCTION).
• 2) BAKED SNACKS FOODS,
• 3) DRINK MANUFACTURING.
• Sixty percent of gross sales are from baked
  products (rum cakes and snacks) with the
  remaining 40 is drink manufacturing. At the
  moment our anticipated employment would be six
  (6) permanent employees on the payroll and other
  sub-contracted workers including subcontracting
  companies for distribution.
• The company's short term objectives (within the
  next year) are to acquire equipment to enhance
  our rum cake plant, increase activity in all
  areas and to achieve annual net profit after
  taxes of over 9,000,000 annually by 2010. Its
  long term objectives are to maintain the level
  of current business growth achieved up to 2010
  and then to move into expansion restorations,
  acquiring up-dated machinery, more overseas
  markets and increased production for the
  hospitality market while seeking to cover the
  Islands schools with snacks.
• To begin implementing these plans and objectives
  the company needs
• 1. A loan of 3,000,000. This loan to be used for
  current near term expenses including buying
  equipment, inventory and to have our products
  assessed by the JBS. It will be repaid within
  four years.

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Executive Summary continue

• A line of credit of 470,000 to take advantage of
  discounts available, avoid associated penalties,
  and expand into high profit areas requiring
  positive cash flow.
• The prospects for OLIVERS PASTRY continued
  growth is excellent, with over 2000 new hotel
  rooms being built with other contracts underway.
  With many prospective clients for customized
  products.
• For equity the company has assets of 2,758,000
  (see Balance Sheet as of year one. Additionally
  we are expecting to see a growth by year 4 to
  38,000,000 total assets.
• The company's overall objective is to satisfy
  that market segment that demands integrity and
  superior quality products, and to maintain a
  steady growth in sales volume that will sustain
  the company for future years. Oliver has enhanced
  his reputation to the point where the company is
  regarded by many as the recommended choice with
  their clients due to the excellence of its
  products and services.
• Market research shows that the tourist arrivals
  will increased by over 2,000,000 between 2007 and
  2010. This increase will bring about an increase
  of over three billion dollars. This increase
  gives the area over 128,000 existing business as
  a potential remodeling market. Demographic
  estimates published by the ministry of tourism,
  2007, indicate that an additional 20,000 persons
  will be employed between 2007 and 2010. OLIVERS
  PASTRY intends to pursue this market
  relentlessly. (See sales and marketing for
  marketing strategy).
• Financial Objectives
• The financial objectives of OLIVERS PASTRY over
  the next five years are as follows
• 9,000,000 to 11,000,000 2008 to 2009
  respectivley. Net Income after Tax and will
  exceed the 11,000,000 by year five while
  maintaining a gross of between 55 and 60
  annually. (see financials for clarification).
• For equity the company will realize assets of
  over 6,000,000 as of year one. Additionally we
  are expecting to see growth by year 4 to over
  39,000,000 total assets and liabilities that
  should reflect an equity exceeding 30,000,000.
  (See Balance Sheet)
• Please review the enclosed business plan and loan
  proposal and of course feel free to ask for any
  additional information or explanations you may
  want. I will make myself available at your
  request to arrange an appointment so that we can
  discuss the loan in person.
• I look forward to a mutually profitable
  relationship with JAMAICA NATIONAL SMALL BUSINESS
  LOANS.
• Sincerely,
• Oliver Fagan.

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Mission Statement

• OLIVERS PASTRY pledge to be a global
  leader in producing authentic Jamaican delicacies
  of the highest quality and value pricing, with
  emphasis on product quality, unmatched customer
  service, employee and owners benefits and to
  enhance the lives of each individual involved
  with this company. Through trust, integrity,
  honesty and loyalty with all transparency And
  to be a good cooperate citizen.

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PRODUCT DESCRIPTION

• 09

SNACKS
JAMAICAN BANANA BREADS WHOLE WHEAT REGULAR
RUM CAKES FRUIT CAKES
LOAVS AND SWEETDOUGHS
Jamaican Easter bun
Drinks Flavored milk drinks. Fruit concentrate
drinks. Fresh fruit drinks. Low sugar drinks.
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The Administration Team

• OLIVER P. FAGAN
• Managing Director Chief Baker
• Responsible for Product Quality
• and Production.
• Diploma Restaurant and
• Hotel Management.
• Associate Degree Hospitality Management
• Over ten years five diamond
• food service experience.
• Very experienced entrepreneur in
• business development and
• operations.
• Oliver is also managing director and chief
  consulting officer for Global Hospitality and
  Restaurant Consulting Services that offer
  services in other Caribbean islands.
• Mrs. Nadia Fagan
• Director of Sales,
• Nadia has been a top producer in sales for AAA
  five diamond resorts and has a very high end
  market experience, with this experience we are
  expected to penetrate the overseas market by
  leaps and bounds as most of these leads are
  connected to large groups and companies that
  travels to Jamaica for incentive trips on a
  regular basis.

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Market Analysis

• Our flagship product (Petros Authentic
  Jamaican Rum Cake) is tourism related and in so
  being we will be targeting the Hotels,
  Restaurants, Cruise Ships, Gift and Souvenir
  Shops, with overseas market prospects.
• Being a tourism related product the
  development of new mega size resorts expands
  retail tourism shopping, this gives an expected
  economic growth that will bring more visitors to
  the island. This will bring an increase of
  millions of dollars in spending on genuine
  authentic products. Through the Jamaica business
  development agency authentic jamaican products
  are In demand for the tourism market.
• None other such product is available on
  the island that will be offering the oportunities
  we do for our clients so we will have a dominance
  of this market and is expected to introduce other
  exiting products within the first year of
  operation.
• We will also be targeting the overseas
  market. Our overall annual expected growth is
  approximately 30 to 40 over the first four
  years. This will be closely monitored with
  continued market and product research programs.
• From site visits to prospected overseas
  clients there is a demand for Jamaican authentic
  products in the caribbean populated areas (New
  York area) (please see customer listings).
• As for our school snack and drink this
  market has been ignored by producers and
  suppliers. In and around Montego-bay and its
  environs there are over 40 primary and secondary
  schools that consumes over 10,000,000 dollars
  worth of product weekly without mentioning basic
  schools, of that market we are expected to take a
  share of 5 in the our initial stage (year one)
  and up to a 20 by year two (2) with an
  eventuality of major market share as we will be
  focusing on maintaining this market share with
  improved products and services over time.

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Business Concept

• Our products will be done in small batches to
  ensure the finest ingredients and detailed care
  is taken during the process and will be carefully
  packaged with the latest technology to ensure
  wholesomeness, the natural preservation stays and
  presentation will depict the high quality product
  and authenticy of the Jamaican culture (Rum
  Cake).
• This product will be marketed as a specialty gift
  item in resorts and gift shops and as a great
  dessert menu item for fine-dining and casual
  restaurants.
• Seasonal specialty products will be available to
  visitors all year round for the experience and
  for Jamaicans who want them to take them overseas
  (Jamaican Christmas cakes)
• School snacks and drinks will be our secondary
  products as these products takes less effort and
  time to produce larger quantities and these are
  more stabled year round and will be done to
  maximize the plants capacity and to make
  available to school community more nutritious and
  healthy drinks and snacks at better prices.
• Special assistance will be given to customers
  (retailers) in their areas of need in carrying
  our products . Suppliers, employees and all who
  we associate with will be treated with all due
  respect and acknowledgment so as to retain high
  customer base, employee retention and development
  and to maintain our commitments as good corporate
  citizen.

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Goals Objectives

• Our goals and objective are combined with the
  crave for economic contribution and a high profit
  driven operation through.
• Creating employment opportunities directly and
  indirectly.
• Sales over 60,000,000 in year one and over
  75,000,000 by year three.
• Gross profit margin higher than 40 of revenue.
• Net income not less than 10 of revenue.
• Giving Schools a new approach in providing for
  their population healthy and reasonably priced
  snack items.
• Expansion and upgrading to a multi product bakery
  for the hospitality industry and the islands
  schools with the most modern equipment and
  technology available in the industry within the
  next five years.

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Financials

• START UP EXPENCES
• FIRST SIX (6) MONTHS CASHFLOW
• TWELVE MONTHS CASHFLOW
• TWELVE MONTHS SALES FORECAST
• TWELVE MONTHS PROFIT AND LOST
• BREAK-EVEN ANALYSIS
• FIVE YEAR FINANCIALS PROFIT PROJECTION.

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Key Success Factors

1. As for a company fulfilling our promise we will
   execute our processes with completeness,
   confidence, reliability, integrity and trust.
2. Develop new products over time to maximize our
   capability and capacity.
3. Develop innovative and practical marketing
   strategies through research and technology.
4. Continue to improve our processes and production
   to increase and maintain the highest quality
   product and profit margin to ensure the highest
   level customer satisfaction and company
   profitability. (Keep listening to our customers).
5. Manage our resources with actual, realistic and
   fair judgment.
6. Ensuring that our schools get better quality
   service to help them better serve their
   population.
7. Instill the wellbeing of our Owners, Employees,
   Customers, Suppliers, Financiers all who we do
   business with.
8. Maintain the high quality product standards.
9. Our relentless effort for new markets on the
   global seen and establish international food
   certifications for access to the international
   market as is required by our enquiries.

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SALES MARKETING.

• Export/Overseas Market
• We will relentlessly pursue prospective
  opportunities by ensuring we are ISO and JBS
  certified and we will be also doing direct
  customer contacts along with website marketing.
• Onsite sampling sessions where applicable.
• Local Market
• Advertisements in print and electronic
• media
• Tasting sessions at major tourist towns
• With sample sizes available for retail
• outlets weekly.
• Special incentive for schools and support for
  education needs.
• Better pricing for schools and retailers who
  sells to students.

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EQUIPMENT NEEDED

• 1 Convection double Oven
  408,000
• 1 Kwickpack Stainless Steel L-Bar shrink tunnel
  with console 15x 9-H opening
  390,000
• 1 Vacuum pack Machine 110 Volts 324,000
• 200 small baking tins 35,000
• 100 medium baking tins
  29,000
• 100 Large baking tins. 30,000
• 1 U B-20 Bar sealer
  60,000
• 2 Stainless steel Table 8x 4
  57,000
• Bag Juice Machine/ Mixing tank
  350,000
• 2-22 cub ft. Freezers
  120,000
• 50- Plastic crates
  50,000
• Total ------------------------------
  2.374,000

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INGREDIENTS LISTING

• RUM CAKE MIX
• FLOUR
• EGGS
• OILS
• RUM
• WINE
• FLAVOURINGS
• SYRUPS
• RISING AGENTS

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Payroll Listing
PERSONEL WEEKLY MONTHLY
ANNUALY
Manager C.E.O. 25,000 108,334 1,300,000
Sales team 5,122 22,195 266,344
Mixer x2 9,000 39,000 468,000
Packer 4,500 19,500 234,000
General helper 4,500 19,500 234,000
Driver 5,122 22,195 266,344

TOTAL 53,244 230,724 2,768,640 230,724 2,768,640




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Production line modelREQUIRED ROOM SIZE 50X30/
1600-SQFT.
Raw materials store Room 10x10
Office area
Delivery area
Mixing 7-10min
Bag juice area

• Finish
• goods

3tub Washing sink
Portioning 5min
Storage for finished goods
Baking 45mins
Shrink wrap 150phr
Cooling 11/2 hrs
Bagging 150phr
Vacuum sealing bags 150phr
Placed in tins
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KEY NOTES

• Required production space 1000sqft.
• Production capacity 112kgs cake 125 - 1kg
  cakes
• 
  250- 1000gms
• 
  500- 500 gms
• per eight hour shift.
• Juice plant will produce over 300 bags per
  hour.
• With an average breakeven point of 20,000,000
  annually we will maintain our cost and operation
  expenses at (COG _at_50-55)AND others at 10-12
  so as to maintain a gross profit of 45-50 and a
  net of not less than 10 annually.
• As a proactive measure we will anticipate an
  inflation effect of a 4 increase in our price on
  average through to year five and an average 4.3
  on our expenses over the same period.
• On financial security we will seek to secure
  ourselves a permanent home office by investing in
  real-estates within a five year period and to
  increase our production and to secure our
  financial standings for the benefit of our
  associates.
• We will overtime purchase equipment as soon as we
  realize it from our profits in this manner we
  will not have to close for any period of extended
  time to disrupt our production flow
• Some of the items considered,
• 1) Freezer trucks
• 2) Baking equipment
• 3) Improved Packaging equipment.
• Our operation and facilities will be fully
  inspected and certified by the health regulations
  of the authorities (ministry of health).
• We will control the production line at 85 to 90
  capacity this will enable for the equipment to
  retain their wear and tear advantage prevent
  over-heating give more time for proper hygiene
  maintenance and also more time to service our
  customers the way they need us.
• All milk products (drinks) will be delivered at
  controlled temperature to ensure freshness.
• All materials needed are readily available
  locally so no importation is required.
• Shrinkage represents damaged or returned goods
  for replacement or refund for this we allotted
  ourselves 2 of revenue in that respect.