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 Expenses to Fund||$36,010|
|Start-up Assets to Fund||$16,000|
|Total Funding Required||$52,010|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$10,000|
|Loss at Start-up (Start-up Expenses)||($36,010)|
|Total Capital and Liabilities||$16,000|
|Total Start-up Expenses||$36,010|
|Other Current Assets||$675|
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.