BUSINESS PLAN

Business Plan

Business Plan

Company Ownership

Aztec's ownership is shared equally between Raymond Garcia and Jose Arroyo. Raymond has eight years of importing experience. Jose Arroya has 10 years experience in managing imports from Mexico and shipping to the U.S. market. Raymond Garcia is responsible for the daily management, sales, and store deliveries. Jose Arroya is responsible for the quality control and shipping of the goods from Mexico to the U.S.

Start-up Summary

The start-up cost of Aztec Food Imports will consist primarily of inventory. Raymond Garcia and Jose Arroya will each invest $50,000.  They will also secure a $100,000 SBA loan.

Start-up Funding

Start-up Expenses to Fund

$15,300

Start-up Assets to Fund

$184,700

Total Funding Required

$200,000

Assets

Non-cash Assets from Start-up

$80,000

Cash Requirements from Start-up

$104,700

Additional Cash Raised

$0

Cash Balance on Starting Date

$104,700

Total Assets

$184,700

Liabilities and Capital

Liabilities

Current Borrowing

$0

Long-term Liabilities

$100,000

Accounts Payable (Outstanding Bills)

$0

Other Current Liabilities (interest-free)

$0

Total Liabilities

$100,000

Capital

Planned Investment

Raymond Garcia

$50,000

IJose Arroya

$50,000

Other

$0

Additional Investment Requirement

$0

Total Planned Investment

$100,000

Loss at Start-up (Start-up Expenses)

($15,300)

Total Capital

$84,700

Total Capital and Liabilities

$184,700

Total Funding

$200,000

Start-up

Requirements

Start-up Expenses

Legal

$5,000

Stationery etc.

$800

Brochures

$2,000

Consultants

$0

Insurance

$0

Rent

$3,000

Expensed Equipment

$4,000

Utilities

$500

Other

$0

Total Start-up Expenses

$15,300

Start-up Assets

Cash Required

$104,700

Start-up Inventory

$60,000

Other Current Assets

$0

Long-term Assets

$20,000

Total Assets

$184,700

Total Requirements

$200,000

Market Analysis

The Hispanic/Latino population in the Richmond Metro area has grown by 10% over the past five years. The current population stands at over 100,000.  It is projected that the population will continue its growth pattern for the next five years and will eventually reach over 160,000.  A majority of these inner-city residents live in family groups of six or more members.  The average household income for the area is $32,000.

There are four major supermarkets that operate in the area and over 50 smaller food stores that serve the metro communities. Last year, the four major supermarkets grossed over $150,000,000 in sales. There are plans to build additional supermarkets in the Richmond Metro area in 2003 and 2004. Two of the current supermarkets in the Richmond Metro area are part the local PriceRight chain.  PriceRight is planning a new store in the area in 2004. 

Though it is difficult to know the exact sales figures for the small markets in the area, traditionally, the community residents have been supportive of the smaller store if their prices are competitive. Last year, Wilson Foods Imports grossed $1.5 million in sales with smaller markets in the Richmond Metro area.

Market Segmentation

Aztec Food Imports will serve all retail food outlets in the Richmond Metro area. These include neighborhood markets and supermarkets.

Market Analysis

Year 1

Year 2

Year 3

Year 4

Year 5

Potential Customers

Growth

CAGR

Supermarkets

20%

4

5

6

7

8

18.92%

Neighborhood Markets

20%

50

60

72

86

103

19.80%

Other

0%

0

0

0

0

0

0.00%

Total

19.74%

54

65

78

93

111

19.74%

Target Market Segment Strategy

Aztec Food Imports will have two distinct marketing approaches:

For Neighborhood Markets: Raymond will promote a small group of popular mexican food products that are likely to move fast in smaller stores.  These products will be priced to be attractive to the small store owner.  Once successful, Raymond will expand the product group. 

For Supermarkets: Raymond will promote the complete line of products that Aztec can ...