Salvador's Sauces
Company Summary
Salvador’s is in its third year of operation, increasing sales five-fold in its second year, and is on track to repeat this in its third year. It has a good reputation, excellent people, an increasing position in the local market, and opportunities to reach out into other states. Starting with a few outlets for our products, we now have over 40, with two large grocery chains in the approval process of carrying our full line of products, and a large distributor intending to sell over $100,000 worth of our products annually.
- See enclosed copies of letters from Moctezuma Foods, Inc., Meijer, Inc., and others.
2.1 Company History
Salvador’s has been hindered only by the lack of working capital it had in its initial stages of setup and operation. Sales are growing steadily, with the cost of goods sold consistently decreasing. But to make significant headway in this area, additional capital is needed to purchase ingredients and processing in larger volumes, thereby reducing the costs of goods sold by 32% overall.

Past Performance | |||
1993 | 1994 | 1995 | |
Sales | $0 | $4,224 | $21,050 |
Gross Margin | $0 | $2,451 | $14,160 |
Gross Margin % | 0.00% | 58.03% | 67.27% |
Operating Expenses | $0 | $12,028 | $20,719 |
Collection Period (days) | 0 | 0 | 0 |
Inventory Turnover | 0.00 | 6.00 | 5.00 |
Balance Sheet | |||
1993 | 1994 | 1995 | |
Current Assets | |||
Cash | $0 | $0 | $126 |
Accounts Receivable | $0 | $0 | $0 |
Inventory | $0 | $0 | $3,492 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $0 | $0 | $3,618 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $23,368 |
Accumulated Depreciation | $0 | $0 | $9,792 |
Total Long-term Assets | $0 | $0 | $13,576 |
Total Assets | $0 | $0 | $17,194 |
Current Liabilities | |||
Accounts Payable | $0 | $0 | $0 |
Current Borrowing | $0 | $0 | $16,207 |
Other Current Liabilities (interest free) | $0 | $0 | $0 |
Total Current Liabilities | $0 | $0 | $16,207 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $0 | $0 | $16,207 |
Paid-in Capital | $0 | $0 | $25,000 |
Retained Earnings | $0 | $0 | ($9,755) |
Earnings | $0 | $0 | ($14,258) |
Total Capital | $0 | $0 | $987 |
Total Capital and Liabilities | $0 | $0 | $17,194 |
Other Inputs | |||
Payment Days | 0 | 0 | 0 |
Sales on Credit | $0 | $0 | $0 |
Receivables Turnover | 0.00 | 0.00 | 0.00 |
2.2 Company Ownership
Salvador’s is a privately-held C Corporation owned in total by its co-founders, Ricardo and Pat Torres.
2.3 Company Locations and Facilities
Currently we have one location in suburban Perrysburg. It includes the production area, offices, and warehouse area. We are currently looking into plans to increase the size of the warehouse by adding a location, and providing a store front to enhance the current business sales practices, while providing a high quality, ethnic outlet for Hispanic foods.