Margarita Momma

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Beverage Machine Rental Business Plan

Strategy and Implementation Summary

The beginning operation of Margarita Momma will be basic, with three machines, and three flavors of mix. It is imperative to the success of the company that smart financial decisions are made, and that the business does not expand too quickly; this could result in not having the funds necessary to operate. Flavors, machines, and an expanded service area will be added as they become necessary. This is a process we see as taking place over the first two years of operation. We plan to expand the flavor choice from the basic three to the full eleven that are available. Additional machines will be purchased in order to better serve an ever-expanding customer base. Within two years, we hope to be serving the Kempner, Lampasas, and Belton areas; this will expand our range to almost a fifty-mile service area.

5.1 Strategy Pyramid

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.

5.2 Competitive Edge

We start with a critical edge--there is no direct competition at this point, closer than Austin, which is almost one hundred miles away. Available options for this area include: the snow cone trolley, purchasing the separate ingredients and using a blender to make frozen drinks, or canned drinks purchased at retail stores. Fundraising options would be provided by Pepsi and Coca-Cola distributors from the nearby Temple area. These options all pale when compared with the lively taste and nutritious quality of Margarita Momma's frozen beverages.

Customers will be reached through advertisements such as business cards, flyers, newspaper ads, a website, and through word-of-mouth from satisfied customers. It is our goal to make each occasion the best it can be. By doing our utmost to ensure this, we expect positive feedback from our customers. It is our hope, then, that these satisfied customers will not be stingy with their praise for the company, and spread the word about us.

5.3 Sales Strategy

We will provide first-rate service during each aspect of rental: from time of booking, to setup, and all the way through to pickup. Each member of the Margarita Momma team will be adept at both sales and social skills. It is our goal to be the most friendly, knowledgeable business in the area. This will help Margarita Momma become number one in sales, and it will contribute to remaining number one.

5.3.1 Sales Forecast

The following table and chart give a run-down on forecasted sales.  We expect sales to increase dramatically as name recognition and word-of-mouth advertising grows.

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Machine Rental 572 650 750
Extra Mix 245 300 350
Other 0 0 0
Total Unit Sales 817 950 1,100
Unit Prices Year 1 Year 2 Year 3
Machine Rental $100.00 $100.00 $100.00
Extra Mix $15.00 $15.00 $15.00
Other $0.00 $0.00 $0.00
Sales
Machine Rental $57,200 $65,000 $75,000
Extra Mix $3,675 $4,500 $5,250
Other $0 $0 $0
Total Sales $60,875 $69,500 $80,250
Direct Unit Costs Year 1 Year 2 Year 3
Machine Rental $7.60 $7.60 $7.60
Extra Mix $4.80 $4.80 $4.80
Other $0.00 $0.00 $0.00
Direct Cost of Sales
Machine Rental $4,347 $4,940 $5,700
Extra Mix $1,176 $1,440 $1,680
Other $0 $0 $0
Subtotal Direct Cost of Sales $5,523 $6,380 $7,380

5.3.2 Sales Programs

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.

5.4 Value Proposition

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.

5.5 Milestones

The accompanying table lists important program milestones, with dates and persons in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

Milestones
Milestone Start Date End Date Budget Manager Department
Business plan 10/1/2000 10/31/2000 $90 Greta Guidry Owner
Logo design 10/1/2000 1/1/2001 $0 Kelley Guidry Department
Business cards 10/15/2000 11/1/2000 $40 Rachel Guidry Department
Flyers 10/12/2000 11/1/2000 $20 Kelley Guidry Department
Magnetic sign for vehicle 10/15/2000 11/1/2000 $30 Greta Guidry Owner
Website 11/15/2000 3/30/2001 $100 Greta Guidry Owner
New phone number 10/25/2000 11/1/2000 $100 Greta Guidry Owner
Totals $380

5.6 Marketing Strategy

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.

5.6.1 Marketing Programs

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.

5.6.2 Positioning Statement

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.

5.6.3 Pricing Strategy

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.

5.6.4 Promotion Strategy

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.

5.6.5 Distribution Strategy

This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide.  Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics.  The outline is a suggestion, not a checklist.  You can add and delete topics easily.  Make it your plan, not the software's plan.