Business_Plan

1.0 Mission Statement Just Love Cupcakes makes every occasion special by individualizing each order to suit the customers’ needs in every way, shape and form. We hope that with the blend of all our amenities plus the love and care put into every bite that our customers will always be coming back for more. 2.0 Business Description Our business is a specialty cupcake bakery named “Just Love Cupcakes”. We will supply specialty cupcakes for various occasions that include theme parties, holidays, special occasions, weddings and just because. We will also have the transportation to deliver packaged cupcakes to customers for any occasion. Because we are just starting out as a new business we won’t be able to deliver anywhere just yet. We will provide service to many close surrounding cities such as Boardman, Warren, Cleveland, and others. The first ten miles of the delivery are free! After that, there is a ten dollar charge for each additional five miles. One of the unique and special qualities of our business is that we provide our customers with the opportunity to choose how their cupcake will be made, or the option to choose one of our pre-designed cupcakes. Just Love Cupcakes will be considered a bakery so people can walk into our shop and buy cupcakes out of our display case. According to foodservicewarehouse.com, a retail bakery has an advantage over a wholesale bakery because they can promote their goods from their window displays, attracting more customers in and having a better chance of sales. We will have a flavor booklet available to customers to choose 50 basic flavors for their order, but we do not bake all 50 on a daily basis. We offer 5 basic flavors that will be available everyday in our store. These flavors are vanilla, chocolate, chocolate and vanilla mixed, peanut butter, and red velvet. We will also bake special holiday cupcakes such as pumpkin for the fall and Halloween, strawberry and cherry for valentines and sweetest day and peppermint flavored cupcakes for Christmas. The customer will be able to choose any flavor and design when they create their own specialty cupcake. Our pre-designed cupcakes from our display will be already created and can be slightly altered with things such as no icing, fat free milk, and add filling. Another quality of our shop is that we will also create specialty flavors for customers if they have a large quantity over fifty that they desire. One great option is that we give our customers the choice to add fillings to their cupcakes for an additional charge depending on the amount of fillings they desire in their cupcake. Our different fillings include chocolate, vanilla, strawberry, and mint. One final accommodating option we offer is the option of low fat cupcakes, sugar free cupcakes, and gluten free cupcakes. Gluten free cupcakes will cost extra because the ingredients to create these cupcakes are more expensive. We will try the best we can to accommodate all of our customers. 2.1 Services Our business is creating a unique touch to any special occasion for our customer. Many customers will value our business because they do not have the time or know how to bake their own specialty cupcakes. We have the skills to create special flavors, words, characters, and designs and put them on a cupcake. We provide consultations and a delivery service for those that cannot find the time to pick their cupcakes up and we will ensure that their cupcakes are delivered in perfect condition and on time. 2.2 Overview of Industry The business that we are creating is entering into a growing business. Our cupcake business falls under the NAICS code of 72211 because we provide a baked good for our customers after they pay for it. Private cupcake and brownie suppliers annually (52 weeks ending in May 2010) made $133,223,200 in dollar sales according to Resources Inc. Resources Inc also explained how the bakery industry is steadily growing by five percent every year, and there seems to be a demand for a small indulgence in every state and every community. 2.3 Sources of Product/Services We plan to go through a wholesaler to get the necessary ingredients to make our cupcakes. We plan on buying wholesale to save in the long run and will ensure that we will not run out of ingredients in a short period of time. We will also buy industrial mixers, oven, cooking utensils, and other products necessary for the production of our cupcake. We will buy that through another wholesaler to save money. Our business will be saving money while making cupcakes along with providing business to a wholesaler. 3.0 Market 3.1 Potential Customer Description We are aiming for Just Love Cupcakes to be a family-oriented business. Our target market is customers aged twenty-three through sixty. They are well to do individuals, typically women, who are anywhere from middle to upper class. Our customers do not mind spending money on special occasions. The descriptions of our customers can be parents of small children, parents hosting parties such as Sweet Sixteen parties, parents whose children are getting married or the bride and groom themselves, and those hosting business meetings or events such as those for charity or PTA. Lynette Duncan, owner of “Cupcakery”, said that “Cupcakes are cute, individual and nostalgic, and you don’t have to share them with anyone”(Iacovetti). Our cupcakes are unique additions to any special event that will not only assure the customer that their dessert will be sure the please but it will also make the event memorable. The quality of our product is reflected in the price. For this reason we will be targeting the upper-middle class and upper income levels. The upper income levels are also most likely to be having large parties in which they try to keep up with the trends, i.e. cupcakes. Location Just Love Cupcakes is conveniently located at 223 South Garland Ave. in Youngstown, Ohio. Our target demographic is the greater Youngstown Area. This includes Youngstown, Girard, Boardman, Austintown, Poland, Canfield, Niles, and Hubbard. Our location is ideal because is sits very close to highways, freeways and is fifteen minutes from Boardman and Pennsylvania. Our bakery is a retail store, complete with pre-packaged cupcakes in our display case for customers to purchase. For large event purposes we have a room for consultations. We also offer delivery to events for up to a 50 mile radius. Income Our target market are customers ranging from higher- middle to upper class because they are most likely to spend money on special occasions, than those who are lower income leveled. This market is profitable to our business because they appreciate what we do and are willing to pay for it. They also may be busy people and do not have time to do these amenities themselves, therefore we are giving them a huge helping hand that they gratefully appreciate. Families are more likely to buy specialty cupcakes because they have more special events and occasions. Situations When planning events for important milestones and even just enjoying a few cupcakes after dinner with the kids, our customers are picky and that is okay. They want people to remember their event, to talk about it around the water cooler. They want something that is classy, unique and creative that will “wow” their guests. Just Love Cupcakes will gladly meet all of these needs and wants. Above all, our customers demand quality and excellence and those are two things will cannot compromise. 3.2 Customers Wants/Needs Just Love Cupcakes specialty deserts would be wanted by most families or businesses because they want to make their event stand out. We do themed work that is individualized as possible. Our consultation visits are offered for the customer to get exactly what they want out of their order. We have it this way because the customer wants to remember their event for is to be successful in their mind. A great way to achieve this goal is by specialty cupcakes because not only are they inexpensive, but they make a big statement. They are also more convenient than ordering a cake because they are individualized and easier to estimate quantity when ordering for any occasion. 3.3 Present/Future of Market Julie Mitchell of RedwoodAge.com attributes the huge trend in cupcakes to Carrie Bradshaw eating a cupcake from Magnolia on Sex & the City. While Sage Meehan from Suite101.com writes that it is their durability that makes them popular. Some also think that it is because they are cute that attributes to their popularity. They are small enough for one person and travel well. In the last two years, more cupcake bakeries have popped up, which leads specialists to believe that it is more than a trend (Bonisteel, par. 5). “Cupcakes have proven miraculously recession-proof. Bakers’ say it’s because they offer a little taste of luxury, sugar, for a relatively low price….The dominance of cupcakes over other small sweets is explained by a variety of competing theories: nostalgia, aesthetics, the sheer sweet allure of frosting” (Latson, pars. 8-10). In conclusion, it is hard to dissect exactly what it is that makes cupcakes so popular. Whether it be pop culture influence, their versatility, the “cute” factor, or just the plain and simple consensus that adults miss the simpler days of childhood, it is safe to say that cupcakes are here to stay. 4.0 Competition 4.1 Industry The cupcake market is a very un-telling market at the present moment in time. There are varying opinions on the cupcake market. Many individuals believe that this market is here to stay, and that it is a growing market with tons of potential. Another thought is that the cupcake bubble is bursting, and the market will take a take a turn for the worse in the coming years. In 2010, Carla Iacovetti of the Ventura County Reporter stated, “With interest in the culinary arts taking the country by storm, the long-standing cupcake is experiencing renewed significance — with every little mouthful of delectable sweetness, it’s becoming its own movement within the baking industry.” However, in 2009, Daniel Gross of Slate Magazine believes the cupcake industry is in a bubble market, and will soon burst. And according to the Wall Street Journal, “the latest unemployment numbers for New York City show that, while the labor market shrunk in June, the overall unemployment rate improved, partially fueled by growth in the restaurant and bar industry.” This is largely due to the cupcake industry, and the Wall Street Journal furthers their claims by stating the cupcake industry is recession proof. It can be considered recession proof because the industry is in a need for birthdays, weddings, and other special occasions that are always going on. There is no set income for a gourmet cupcake shop, it all really depends on the location and how the company markets their cupcakes. Many successful cupcake shops make a lot of revenue fast, and can turn a profit over quicker than they would anticipate. Many of these entrepreneurs were already successful to begin with. Famous Sprinkle Cupcakes on the west coast was brought to life by Candace Nelson who once was in investment banking. According to Steve Tobey, owner of Sugar Bears Cupcake Shack, “The Mintel Reports projected that there would be a 20 percent increase from 2009 over the next five years in this industry, and so far they’ve been right.” Refer to Appendix A to see our personal strengths, weaknesses, opportunities, and threats as a business. 4.2 Competitors The primary competitor would be other gourmet cupcake shops in Youngstown, and we would also have competitors in grocery stores and home-made cupcakes. The main competitors in this area would include Clarencedale Cakes and Enjoy. All these competitors are located in the Youngstown region. We would also have competition in grocery stores that would include Giant Eagle branches, IGA branches, and other various local grocery stores that have a bakery department. Primary competitors in the area: 1. Clarencedale Cupcakes: a. Standard Cupcake – $1.50/ Dozen—$16.00 or $30.00 for two dozen b. Jumbo Cupcake—$3.00/ Dozen—$32.00 or $60.00 for two dozen c. Custom orders have a custom order have a two dozen per flavor on standard cupcakes, and one dozen per flavor for jumbo cupcakes. Any alteration to standard will be an additional fee of .50-$1.00 per cupcake. d. Clarencedale, also, has two pages of flavors and create your flavor. 2. Enjoy: e. Enjoy has over 100 flavors of cupcakes. They also try and pride themselves on using fresh and local ingredients from farmers. f. Enjoy has cupcakes that meet dietary restrictions, and offer cupcakes that are gluten free, vegan, organic, or low fat. g. They also pride themselves on their wedding “cupcake” cakes. These two competitors are primary, and seem to be the only two in the area that specialize in gourmet cupcakes. They have same flow when it comes to the flavors, and they have a lot of flavors. Enjoy Cupcakes has a strength by using fresh and local ingredients, and by meeting dietary restrictions. Clarencedale Cupcakes is able to make any flavor a customer would want. The two cupcake shops together have a really good customer service, and seem to care about what their customer would want whether it is a dietary need or a custom flavor. 4.3 Countering Competition Our cupcake shop has a strategic plan that can counter the competition. We will first implement our delivery service. Most bakeries that deliver cakes have this implemented; however, when it comes to the gourmet cupcakes in this area it is non-existent. This will help us gain a competitive edge on our competition, and have the customer remember our cupcake shop more than the other well established gourmet cupcake shops. Following the way of the other competitors our name will set us apart. Just Love Cupcakes is short and sweet, and it will be easily remembered for our customers. We will also have a website that our customers can go to, and will be able to see all the different things we offer. Customers can even place orders online, and it will provide a convenience for our customers. If the customer is too busy to stop in or place a phone call they can easily access our website and place an order. A final way that our gourmet cupcake shop can counter the competition is through having the customer create their own specialty cupcakes. They would be able to choose the cupcake flavor, cupcake filling, and icing that will go on their special cupcakes. The customer can even have a consultation with one of us to make sure they are getting exactly what they want when we either deliver the cupcakes, or they personally pick them up. 4.4 Business Uniqueness Just Love Cupcakes is unique because we will put the customer first the whole time they are in our gourmet cupcake shop. The customer has the options of personalized or pre-made cupcakes, the choice of flavor and filling, and they can also get their cupcakes to fit their dietary needs and have the option of delivery. This is different from the other two cupcakes shops around in the area, a grocery store will not be able to get so personalized, and most individuals cannot create what we can with cupcakes for the special event. We will offer some pre-made cupcakes that any customer can come in and buy as an individual cupcake. We will have unique displays of our cupcakes with certain themes, and also offer certain flavors during different seasons and holidays. This will make our cupcakes more desirable throughout certain months, and make the customer want more and come in. We will also run specials, and other various promotions throughout the year that would make our gourmet cupcake shop stand out from the rest. 4.5 Pricing Strategy Our prices will be competitive with the market. Our gourmet cupcakes will be a little high when first starting out, but we expect to attract the higher middle-class to wealthy individuals to come to our gourmet cupcake shop. With prices a little higher we will have the appeal that our cupcakes are higher quality. Our cupcakes will show that the extra money spent on our cupcakes is worth it. The time and the care that goes into the personalized cupcakes will have the customer not wondering what they spent their money on. One individual cupcake is 3.50, which is higher than our competitors but we offer more amenities in our store than they do. Our dozen cupcakes are priced at 16.50, which is competitive with Clarencedale cupcakes, making ours 5o cents more a dozen. However, we believe that our customer would want to spend the extra 50 cents to come to a new business and try out our flavors and uniqueness. We also have special event cupcake packages that are competitive with Enjoy cupcake packages. See table 1.1 for more info. * 5.0 Advertising and Promotion There are a few aspects that make our cupcake business unique. One is that we hold consultations for our customers to make sure we can provide exactly what they want for their overall order. These consultations run anywhere from 5 minutes to a half hour, and cover everything from the design, to flavor, to ingredients that go into making their order. Consultations are not mandatory; they can be scheduled by request. We also have a standard booklet of designs, flavors, and themes of cupcakes for all types of occasions. The second aspect of our business is delivery. We deliver anywhere within 50 miles of our location. The first 10 miles are free, and every ten miles after that is an extra ten dollars. This extra money covers our gas expense. We know that picking up can be a hassle, so we try to make our deliveries’ as convenient for the customers as possible. We expect our delivery service to be a relief to customers and an asset to our business. We will fit our promotion to our customers by exhilarating all the amenities that make our business unique. Awareness of these things will bring us in more interested customers. Our amenities are our many specialty and original flavors, ingredients, themes, and ideas that go into making our orders. We also try to give our customers the most affordable prices, and have individual prices for specialty orders/consultations. We also give free consultations to make sure your order is exactly what you want. Our delivery service is another amenity that is free within the first ten miles. We hope that all these things combined with the deep interest and care we have with our customers and making sure they get exactly what they will definitely fit the promotion. Our cupcake business will counter the competition by our free consultations and delivery service. These 2 amenities are the keys to our success. We will promote them as strongly as we can to hope to catch the eye of our target market. Since most cupcake businesses in our local area do not give out such services, we try to make ours as unique as possible. Our consultations are important because they are giving the customer a custom experience and partaking of their order. They actually get to pick the size, shape, texture, ingredients, flavor, and theme of their cupcakes. They can walk out of our bakery feeling good and accomplished that their order will come out exactly as they wanted and no one in the world will have the same exact one. * * 5.1 Word of Mouth Advertising After our bakery’s grand opening, we hope that some advertising will reach out by word of mouth to potential customers. We hope to strike them by hearing of our most convenient and unique services: Delivery and Consultations. We will also decorate our windows intensively to hope to attract consumers into our store. * 5.2 Internet Advertising Just Love Cupcakes will be involved in various internet activities, such as the creation of our own website, www.jlcupcakes.com, face book grouping, and promotion emails to potential customers in our area. This will help expand our advertising to people who do not receive newspapers or do not have time to come in and place an order. Our website and group will have our address, phone number, specialties, and pictures of our original work, daily hours, and coupons. We will send out email to people who sign up either on our website or face book group. * 5.3 Paper Advertising Starting off as a new business, we will be creating business cards and flyers to pass around to local businesses. We will target food businesses, such as delis and convenient stores (that do not sell cupcakes), where people are already interested in buying food. Giving our business cards to these types of stores will not be of threat to their competition so they will not have a problem promoting it. We will also hand out these materials to service businesses, such as photographer’s offices and day care centers, where potential customers may be getting ready for special events, or has children and will be having special events for them as well. * 5.4 Media Advertising If our budget allows, we would like to create a commercial to be shown on a local channel. This would hugely improve our advertising for our area and make most aware of the opening of our business. We would like to show it 3 days a week for 3 months starting the month before our grand opening. According to Gaebler.com, resources for entrepreneurs, A 30-second commercial on a local channel can be purchased for as little as $5 per 1,000 viewers, meaning after some profit, this can be an affordable and productive way of advertising. This way we can be able to reach our target market at a specific time weekly. We hope to have our grand opening shown live on local news stations which are free of charge. * 5.5 Newspaper Advertising We would like to advertise in the ad section of the local newspaper before our grand opening. We would also like to place ads in the bargain bulletin, as well as coupons and perks of our grand opening. Sponsoring local events, such as high school football games, etc. and getting our name in their pamphlets is also a long term advertising goal. * * 5.6 Finances/ Funding For Advertising Our basic forms of advertising are not very expensive. We will need paper and ink to print out our business cards and flyer; we are expecting to get a deal at a paper store. We will need access to a computer to make the website and create our groups. We will have to buy the domain for the website. The newspaper ads will approximate to be 115 per week if we only do it once a week on a Saturday. The bargain bulletins will be 80 a week. Sponsoring local events is long term goal we did not yet satisfy and will be occasional. Prices for sponsoring vary. The commercial will be our biggest expenses. To run 3 times a week for 3 months would be 36,000 dollars. 6.0 Financial & Human Resources 6.1 Business Form Just Love Cupcakes will be a partnership, because it will make the business run smoother and be simpler. This form of business allows there to be many perspectives put into everything Just Love Cupcakes does. The partners in the business will be Lauren Summer, Amy Perrotta, Julie Rice, Angel Pixley, and Kelly McKee. Partner Responsibilities All partners will be responsible for the baking and everyday functions of our business. The specific sections of our business are spit into 5 parts: Finances, Advertising, Marketing/Competition, Human Resources, and Delivery. Each partner is assigned a specific section. Specifications are as follows: Lauren Summer will be responsible for our finances. Amy Perrotta will be responsible for all of our advertising. Julie Rice will be responsible for all marketing and competition issues. Angel Pixley will be in charge of the human resource department, and Kelly McKee will be mainly delivery. There will be no more employees needed. All 5 owners will produce, package, promote, and distribute the cupcakes. 6.2 Sales Projections for Single non-specialty cupcakes A single cupcake will be sold for $3.50 each. The customer can choose from Chocolate, Vanilla, Red Velvet, Gluten free, or cupcake with filling. The cost of making a single chocolate cupcake is $0.20. The cost of making a single vanilla cupcake is $0.19. The cost of making a single red velvet cupcake is $0.21. The cost of making a single gluten-free cupcake is $0.25. Finally the cost of making a single cupcake with filling is $0.35. Projecting in the beginning months we sell 300 of the chocolate, 300 of the vanilla, and 300 of the red velvet a week we will show revenue of $3150.00/ month. Also, projecting that we sell 90 Gluten-free cupcakes, we will have monthly revenue of $360.00 off of them. Also, projecting we sell 150 cupcakes with filling; we will have a monthly revenue of $600.00. So therefore, we are projecting monthly revenue of $4110.00 in just our Single non-specialty cupcakes. These are our projections for the beginning months; we expect our revenue to increase as our business becomes more well-known. 6.3 Sales Projections for Dozen Personalized Cupcakes/ Cupcakes with Filling A dozen of personalized cupcakes will be sold for $16.50. It will cost approximately $3.48 to make the dozen. Projecting that we sell 10 dozen in the first month, we will show monthly revenue of $165.00. We will also sell a dozen of personalized cupcakes with filling for $17.50. The cost of making this will be approximately $5.40. Projecting that we sell 10 dozen of these, we will show monthly revenue of $175.00. Therefore, with both the dozen of personalized and the dozen of personalized with filling we will show a revenue of $340.00/month. These are our projections for the beginning months; we expect our revenue to increase as our business becomes more well-known. 6.4 Sales Projections for Special Event Cupcake Packages We will be selling 3 special event packages; they will consist of a package of 120 cupcakes, a package of 240 cupcakes, and a package of 480 cupcakes. We will be selling the package of 120 for $100.00 and it will cost us approximately $34.80 to make it. We will be selling the package of 240 for $160.00 and it will cost us approximately $69.60 to make it. We will be selling the package of 480 cupcakes for $225.00 and it will cost us approximately $139.20 to make it. We do not expect to sell many of these packages right from the start, however we expect to sell more and more as our customer base begins to grow. See Appendices D, E, and F for predicted sales projections. 6.5 Start-up Costs According to www.atouchofbusiness.com, the average cost to start up a bakery is 37 to 33,000 dollars, depending on size. Since our bakery is very small, we have managed to break that price. Just love cupcakes start-up costs will consist of furnishings, an electric convection oven, a bakery cooler display case, a phone and phone installation fee, a computer and internet installation fee, software, a register, baking tools, a business license, health inspection fee, and many other miscellaneous items. We expect our start-up to cost about $10062.99. See Appendix B for more information. 6.6 On-going Expenses Our ongoing expenses will include our rent, ingredients, Utilities, gas money, and other miscellaneous items we will need. We expect our ongoing expenses to cost approximately $1,528.40/Month. See Appendix C for more information. 7.0 Appendices 7.1 Appendix A: SWOT Analysis Strengths: Just Love Cupcakes tailors to any dietary restrictions like fat or gluten free. We have a delivery truck. We would be the only gourmet cupcake shop that offers this amenity in our area. We would be an addition to the only two cupcake shops in our market. We offer custom cupcakes that our customer can design. We offer consultations so that our customer can tell us exactly what they want for their order. Weaknesses: Our Company being new would have a hard time attracting new customers. The cupcake shops in our area have a loyal customer base and will be hard to match their competition. Opportunities: We, as a specialty cupcake shop, have the opportunities of owning a huge booming market. We have the opportunity as an all female partnership, to be highly successful in such a growing market. This area is ideal with it not being too oversaturated with cupcake shops. It also does not take a lot of capital to get the cupcake business going. Threats: Internally, we always have the threat of not having the profits to stay in business. We have the threat of not sustaining a loyal customer base. Just Love Cupcakes also has the threat of losing partnerships with those in business. 7.2 Appendix B: Start up Costs Item | Price of Item | Total Bought | Total Price | Equipment Start up Costs | | | | 30”x14” Stainless Worktable(www.atlantafixture.com) | 121 | 2 | 242 | Turbo Electric Convection Oven(www.alantafixture.com) | 4022 | 1 | 4022 | Full-height stainless cooling rack(www.atlantafixture.com) | 231 | 2 | 462 | 74" Bakery Cooler display Case(www.acitydiscount.com) | 2242.5 | 1 | 2242.5 | 10 quart food mixer(www.atlantafixture.com) | 732 | 1 | 732 | Phone(amazon.com) | 50 | 1 | 50 | Monitor(Best Buy) | 49.99 | 1 | 49.99 | Computer( Best Buy) | 320 | 1 | 320 | Microsoft Office Software (www.microsoft.com) | 200 | 1 | 200 | Register with credit card machine(www.ebay.com) | 180 | 1 | 180 | Decorating tools set(www.amazon.com) | 292.5 | 1 | 292.5 | 12 Cup Cupcake Pan(www.amazon.com) | 10 | 15 | 150 | Total Equipment Start-Up Costs | | | 8942.99 | | | | | Utility Start-Up Costs | | | | Rent | 450 | | 450 | Phone Installation | 60 | | 60 | Internet Installation | 100 | | 100 | Advertising(signs) | $115 per sign | 2 signs | 230 | Business License | 80 | | 80 | Health Inspection | 200 | | 200 | Total Utility Start-up Costs | | | 1120 | | | | | Estimate of Total Start-up Costs | | | 10062.99 | | | | | Baking Ingredients/ month | | | | non-gluten flour(32 oz) (GiantEagle.com) | 3.75 | 7 | 16.25 | flour (32oz)( GiantEagle.com) | 2 | 20 | 40 | 500 pc. cupcake wrappers(Amazon.com) | 7.99 | 10 | 79.9 | Gallon of milk(www.GiantEagle.com) | 3 | 10 | 30 | Dozen of eggs(www.GiantEagle.com) | 2.5 | 20 | 50 | sugar- 40.7 lbs(foodservicedirect.com) | 48.65 | 1 | 48.65 | 2lbs pastry filling(www.milescakesupply.com) | 5 | 15 | 75 | 8"x4"x4" cupcake boxes(www.theboxdepot.com) | 78.80/ 200 | 2 | 157.6 | Butter 1lb (GiantEagle.com) | 1.5 | 25 | 37.5 | Vanilla Extract4oz(GiantEagle.com) | 4 | 1 | 4 | Baking Powder 16oz( GiantEagle.com) | $14.00 | 1 | $14.00 | Salt 1lb(GiantEagle.com) | 1.5 | 1 | 1.5 | cocoa powder 12oz(GiantEagle.com) | 2 | 1 | 2 | 32oz red food coloring (GiantEagle.com) | 7 | 1 | 7 | Total Baking Ingredients/month | | | 563.4 | | | | | | | | | | | | | | | | | | | | | Utility Expenses/month | | | | Water | 70 | | 70 | Electricity | 115 | | 115 | Gas | 150 | | 150 | Internet | 40 | | 40 | Rent | 450 | | 450 | Insurance | 100 | | 100 | Phone | 40 | | 40 | Total Utility Expenses/month | | | 965 | | | | | Estimate of all Ongoing monthly Costs | | | 1528.4 | | | | | 7.3 Appendix C: Prices Dozen Vanilla Cupcakes | cost of making | Price selling for | Revenue per cupcake | 1/2 cup butter | $0.37 | | | 2/3 cup white sugar | $0.20 | | | 3 large eggs | $0.60 | | | 1 teaspoon vanilla extract | $0.16 | | | 1 1/2 cup flour | $0.75 | | | 1 1/2 teaspoon baking powder | $0.18 | | | 1/4 teaspoon salt | $0.02 | | | 1/4 cup milk | $0.05 | | | Cost of 12 cupcakes | $2.33 | | | cost per cupcake | $0.19 | $3.50 | $3.31 | | | | | Dozen Red Velvet Cupcakes | $2.33 | | | 1 teaspoon cocoa powder | $0.03 | | | 2 tablespoon red food coloring | $0.21 | | | Total cost for 12 red velvet | $2.57 | | | cost per cupcake | $0.21 | $3.50 | $3.29 | | | | | Dozen Chocolate Cupcakes | $2.33 | | | 2 teaspoon cocoa powder | $0.06 | | | Total cost of 12 chocolate | $2.39 | | | cost per cupcake | $0.20 | $3.50 | $3.30 | | | | | Dozen Gluten Free Cupcakes | $1.58 | | | 1 1/2 cup non-gluten flour | $1.40 | | | total cost of 12 cupcakes | $2.98 | | | cost per cupcake | $0.25 | $4.00 | $3.75 | | | | | Dozen Cupcakes with Filling | $2.33 | | | Pastry filling 6 tbs. | $1.87 | | | total cost of 12 cupcakes | $4.20 | | | cost per cupcake | $0.35 | $4.00 | $3.65 | 7.4 Appendix D: Year 1 Projections 7.5 Appendix E: Year 2 Projections 7.6 Appendix F: Year 3 Projections