Shaved Ice Beverage Business Plan

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Company Summary

Ice Dreams will be known for selling shave ice with 20 different tropical and Mexican flavored syrups to children and adults in El Centro, California. Other products will include soft drinks and licuados.

2.1 Company Ownership

Ice Dreams will be owned by Ofelia R. Arellano as a sole proprietorship.

2.2 Start-up Summary

Start-up costs will be approximately $52,010 which will include facility construction including sidewalks, parking, inventory, mandatory city permits, and other expenses associated with opening this business. The start-up costs will be financed through a loan. Appendix A provides more detailed information regarding permit requirements, equipment, construction costs, and land improvements required to open this new business.

Start-up Funding
Start-up Expenses to Fund $36,010
Start-up Assets to Fund $16,000
Total Funding Required $52,010
Assets
Non-cash Assets from Start-up $6,000
Cash Requirements from Start-up $10,000
Additional Cash Raised $0
Cash Balance on Starting Date $10,000
Total Assets $16,000
Liabilities and Capital
Liabilities
Current Borrowing $42,010
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $42,010
Capital
Planned Investment
Owner $10,000
Investor $0
Additional Investment Requirement $0
Total Planned Investment $10,000
Loss at Start-up (Start-up Expenses) ($36,010)
Total Capital ($26,010)
Total Capital and Liabilities $16,000
Total Funding $52,010
Start-up
Requirements
Start-up Expenses
Consultants $100
Insurance $1,200
Other $34,710
Total Start-up Expenses $36,010
Start-up Assets
Cash Required $10,000
Start-up Inventory $1,325
Other Current Assets $675
Long-term Assets $4,000
Total Assets $16,000
Total Requirements $52,010

2.3 Company Locations and Facilities

Ice Dreams will be located on Highway 86 in El Centro, California which experiences a high volume of traffic on a daily basis. According to a study by Cal Trans (Traffic Volumes, 1995), approximately 48,300 vehicles pass through this location on a daily basis making it an ideal location for business. The majority of traffic enters and exits via Imperial Avenue and Fourth Avenue traveling through Highway 86.

A 240 square foot drive-through facility will be built on a privately-owned commercial property which will also include parking facilities, landscaping, and a small sitting area. Other major businesses located on Highway 86 include Carl's Jr., Roberto's Restaurant, La Fonda Restaurant, Raging Bull Restaurant, China Restaurant, Donut Shop, Steak House, Big John gas station, Recreation Center, and several motels.

The appendix provide additional information on the company facilities, a tentative plot plan, and highlights of the traffic study conducted by Cal Trans.