Executive Top Level Summary
My plan is to operate a hotdog cart vending business downtown Hungryville, serving lunch hour office crowds from 10:00 a.m. to 2:00 p.m. each weekday.
Currently, this area is underserviced, with long lines observed at the three existing vendor carts and four sit-down or take-out restaurants. Workers in the area must walk long distances or drive to reach these existing venues. A fourth vendor cart strategically located at the ABC Business Complex will be a great success. Approximately 4500 people work at this complex on weekdays.
“BIG DOGS Vending Co.” will be the name of the business. The company will be owned by one owner.
To cover the cost of the vendor cart and the start-up supplies, I will need a two-year loan of $10,000.00 in addition to a $5000.00 investment. A detailed estimate of startup costs is attached.
I plan to start the business on June, 1st.
Marketing Plan With Projections
On average, 200 vendor servings per day are estimated to generate gross sales of $ 175,000.00. However, only 4% of personnel in the complex receive vendor services on a daily basis.
We would also be able to increase sales by servicing special events during evenings and weekends, including sporting events, conventions, cultural events, parades, fairs, large sales, and business grand openings.
As part of the product line, customers can select from standard and jumbo size quality sausage dogs, as well as related condiments, as well as side items such as coleslaw and potato chips. Download the menu below.
Based on research into prices charged by other area vendor carts, prices have been set. 66% of profits are realized. For a comparison of items’ costs with retail prices, please refer to the attached document.
The key to success is to maintain a quality-oriented business philosophy. Customers will be satisfied and will return to do business with you again. The following policy documents are attached: “Vendor Cart Dress Code” and “Employee Rules of Conduct”. Both of these are company policies.
ABC Business Complex is located at a considerable walking distance from 3 existing vendor carts and 4 sit-down or takeout restaurants.
Plan of Operations
Cart will be stored and serviced at 43 Smith Street, New Castle, OH. Cart will be moved into location every morning at 10:00am. Food supplies from John’s Deli in Hungryville will be stored at 123 River’s Edge and loaded into a cart each morning. Meeting all health department regulations will be easier with this arrangement. The attached copy of John’s Deli and BIG DOGS Vending Co’s storage and supply agreement can be found here
Licensed and inspected by the health department, the vendor cart meets all codes and regulations. All county health department guidelines, as well as the manufacturer’s vendor cart operations and maintenance guide, will be followed.
A business license and a location license have been obtained from the city. The George Washington Office Complex has agreed to rent space to the company.
—Local reputable and reliable suppliers have provided food supplies and other necessary supplies. For details, please see the attached “Supplies List” and “Vendor Cart Reorder Form”.
Sample Financial Plan
Sales for the month are estimated at… $15,700After food purchase costs, the monthly sales profit margin is 9786.00 dollarsReduce the following costs (estimated monthly)Spoiled product estimated at $..Rent for the commissary ………………….$The cost of renting a vendor cart is ………………………$Licenses for businesses and health care……….$
Insurance: ………………………$Training ………………………$Business expenses (telephone)………………………$Bank fees………………………$Supplies for cleaning………………………$
Allowance for clothing………………………$Allowance for repairs of equipment………..$Repayment of business loan…………….$TOTAL monthly expenses…$ 2736.00Monthly Net Profit …………………………….$ 7050.00With the above information in mind, I require a business loan (or line of credit) in the amount of $ 10,000.00 with a 2 year term .
Yours truly,Bary S Dogseller.
Expenses associated with starting a new business
In order to start a new hotdog cart business, you will need to consider the following items. A business plan can be based on this information. However, not all of the items mentioned here will apply to your situation. Other items may apply to your local situation that are not listed here.
- License for business
- Licence for location
- Rent at a location
- Event Permits for Special Events
- Health Department. License
- The Department of Health. Fee for inspection of carts. Trainee Commissary Fees
- Initial inventory cost of a hot dog cart
- Meat (Food)
- Buns (Food)
- Dressings
- Beverages on the side
- Propane/Cleaning Supplies/Paper Goods
- Clothing – hats, gloves, aprons
- Purchase & installation of trailer hitch for towing vehicle Office Supplies – paper, balance sheets, cash box
- Cellular phone
- Menu and logo (cart)
- Advertisement (flyers, menus, classifieds)
- Insurance (vehicles, carts, businesses)
- Small bills and coins (cash float)