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1) Sample Business Plan

Sample Business Plan

Executive Summary

I plan to start up a hot dog cart vending business in the downtown Hungryville business complex serving the lunch hour business crowd 10:00am to 2:00pm weekdays Monday to Friday.

This area is currently under serviced with long line ups observed at the 3 existing vendor carts and 4 sit down or take out restaurants. Many of the area workers have to walk a long distance or even drive to get to these existing venues. I have determined that a fourth vendor cart strategically located at the ABC Business Complex would be highly successful. This business complex alone has a weekday population of 5000 personnel not including visitors.

The American hotdog council estimates that Americans consume 20 Billion hot dogs per year. They are enjoyed by 95% of U.S. households. That works out to be 70 hotdogs per person per year. Approximately 15% of these are purchased at American style hotdog vendor carts. Based on these figures and a retail price of $5.00 per serving including side order and beverage, the annual sales potential in the Hungyville business complex area is $ 262,500.

The business will be registered under the name “Bob’s Dogs Vending Co.”. It is a sole proprietorship.

To start up the business I require a 2 year loan of $10,000.00 in addition to my own investment of $5000.00 to cover the purchase cost of the vendor cart and start up supplies. Please refer to my attached Start Up Cost Estimate sheet.

I plan to start the business June 1st.

Marketing Plan

Estimated gross annual sales are $ 175,000.00 based on estimated sales of 200 average vendor servings per day. This sales level is realistically achieved by daily serving only 4% of the personnel in the business complex alone.

Additional sales would be achieved by servicing special events during evenings and weekends such as sporting events, conventions, cultural events, parades, fairs, large sales and business grand openings.

The product line will consist of standard size quality sausage dogs, jumbo size dogs, related condiments, side order items including cole slaw and potato chips, as well as canned soft drinks and bottled water. Please see the attached Menu sheet.

Prices have been set by researching prices charged by other area vendor carts. The profit margin achieved is 66%. Please see the attached item cost versus retail price comparison sheet.

To achieve success and market capture, a professional quality focused business approach is to be maintained. This will ensure customer satisfaction and repeat business. Please see the attached policy sheets titled “Vendor Cart Dress Code” and “Employee Rules of Conduct”. These will be company policy and strictly adhered to.

Competitors are 3 existing vendor carts and 4 sit down or take out restaurants, all at a considerable walking distance from the ABC Business Complex.

Operational Plan

The cart will be stored and serviced at the owner’s residence at 21 Green Park Drive, Pleasantview, OH. It will be moved into location daily ready for business at 10:00am . Perishable food supplies will be stored or purchased from John’s Deli at 123 River’s Edge in Hungryville and loaded into the cart each morning. This arrangement will also facilitate meeting all health dept. regulations. See the attached copy of the storage and supply agreement between John’s Deli and Bob’s Dogs Vending Co.

The vendor cart meets all health dept. codes and regulations and will be properly licensed and inspected. It will be maintained according to the manufacturers Vendor Cart Operations and Maintenance Guide as well as all county health department guidelines.

A business license and location licence have been acquired from the city. A rental agreement has been reached with the ABC Office Complex management.

Food supplies and other necessary supplies have been sourced from local reputable and reliable suppliers. Please see the attached “Supplies List” and “Vendor Cart Reorder Form” for details.

Financial Plan

Monthly estimated sales are


Monthly sales profit margin after food purchase costs

$ 9786.00

Less the following costs (estimated monthly)

Estimated product spoilage

$ 586.00

Commissary rental

$ 400.00

Vendor Cart Rental

$ 400.00

Business/ Health licenses

$ 100.00

Business insurance

$ 100.00

Business training

$ 100.00

Other Business costs (tel, bank)

$ 50.00

Cleaning supplies

$ 100.00

Clothing allowance

$ 100.00

Equipment repairs allowance

$ 200.00

Business loan repayment

$ 600.00

TOTAL monthly expenses

$ 2736.00

Monthly Net Profit

$ 7050.00




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