Best Ice Cream

Theres Best and then theres the rest.

Business Plan
April 2013

Sherif Alghali
Owner & Founder

TABLE OF CONTENTS
EXECUTIVE SUMMARY ....................................................................................................................1
LEADERSHIP ....................................................................................................................................2
PRODUCT OFFERING .......................................................................................................................2
MARKET ..........................................................................................................................................2
COMPETITION ..................................................................................................................................3
DIFFERENTIATION ...........................................................................................................................3
MARKETING STRATEGY ..................................................................................................................3
VISION AND OBJECTIVES.................................................................................................................4
FINANCIAL SUMMARY .....................................................................................................................6
FINANCING STRATEGY ....................................................................................................................6
FINANCIAL PROJECTIONS .............................................................................................. ATTACHED

EXECUTIVE SUMMARY
Overview: Best Ice Cream is an ice cream truck that
focuses on festivals, high-traffic parks, and special events in
Dallas, Texas. We provide an alternative to the high-end
Best Ice Cream specialty ice cream trucks in Dallas, in which patrons are
Company Name:
charged upwards of $5 for ice cream. We will provide
Mobile Food Service traditional ice cream novelties at a price point of $3. We
Industry:
believe that there is a large market of families that want
Owner investment - cash
$ 1,000 simple and affordable ice cream at fairs, festivals, and
Owner investment - equipment
2,000 special events. This will be a part- time business that
operates on weekends and holidays.
Vehicle and/or equipment loan
Start up financing
5,000 Product Offering: Best Ice Cream provides packaged ice
Total start up costs:
$ 8,000 cream, chips, sodas, bottled water, pickles, and candy at
high traffic parks and special events in Dallas, Texas. Our
Business advisors and main focus will be traditional ice cream treats like ice cream
Plan Purpose:
debt funding sandwiches, popsicles, fruit bars, and packaged cones.
Market: The packaged ice cream market has been growing
steadily year over year. This is an industry with a history of consistent growth that is projected to continue
in the future. Best Ice Creams target markets are middle to upper-middle class families that attend fairs,
special events and high-traffic parks in Dallas, Texas.
Competition: Local direct competitors include Gypsy Scoops, Short-n-Sweet Ice Cream, and Coolhaus to
name a few. These companies all have a social media presence and are found at the special events and
festivals that we target. The barriers to entry are medium; to begin operations a modest capital outlay is
required. To be successful, networking and social media skills are essential.
Differentiation: At Best Ice Cream we differentiate ourselves from the competition through our use of
technology, our simple approach to ice cream, and our service. We will make use of Square Register to
drive our analytics and customer loyalty strategy. We will offer simple, traditional ice cream that our
competitors do not offer. We will make a point to provide quick and friendly service.
Marketing Strategy: Our ice cream novelties will be sold at an average price of $3. Best Ice Cream will be
located in and serve Dallas, Texas. To reach our target market, we will heavily use Social Media and the
web. We will develop pages on Twitter, LinkedIn, Facebook, Google+, and Yelp, as well as our own
Webpage.
Sherif Alghali

Management:

Revenue Model and Financial Projections:

Ice Cream Novelties
Per Unit Dollars
Sales price
Non-owner labor cost
Other variable costs
Fin. stmt. gross profit
Owner labor value
Pro forma gross profit
Year 1 total units sold

3.00 100%
(0.60)
2.40
80%
2.40
80%
8,407

Year one summary income statement:

Sales:
$ 41,000
100%
COGS
9,000
22%
Gross profit
32,000
78%
Overhead
17,500
43%
Pretax income
14,500
35%
Tax expense
3,600
9%
Owner withdrawals
7,000
17%
Net income
$
3,800
9%

Sherif O Alghali
Best Ice Cream

Drinks
$

2.00 100%
(0.55)
1.45
73%
1.45
73%
6,556

Pickles
$

2.00 100%
(0.30)
1.70
85%
1.70
85%
1,378

LEADERSHIP
As the owner of Best Ice Cream, Sherif will be in charge of servicing customers, sales, lead
generation and forging partnerships with event organizers and park managers.
Sherif has over five years of customer service experience. He also spent four years running
his own computer services business. In addition, Sherif has spent time working with Steve
Akinbinu of Good Time Ice Cream, learning the business of selling ice cream. Sherif has also
had extensive business training. He is a graduate of the PEP entrepreneurship program,
which consisted of over five months of business training in which he developed and
eventually pitched a business concept to over two hundred executives. This combined with
his skills in public speaking, sales, and management make him imminently capable of making
Best Ice Cream a successful venture.
In addition, Sherif brings more than 12 years of experience in the information technology
industry, with nearly four years supporting restaurant and retail point of sale systems. He
worked for Lubys Inc. at their corporate office as a help desk specialist, where he worked
remotely and on-site supporting hardware, operating systems and networks. He currently
works for Rogers-OBrien Construction as a help desk specialist, supporting over 200 users
in multiple sites throughout Texas. This background in IT will help him in executing Best Ice
Creams technology and Social Media strategy
Sherif is currently a student at Western Governors University working towards a Bachelors
degree in Information Technology. Sherif also has earned several industry certifications from
Microsoft, Cisco, and Comptia.
Sherif is a member of the DFW World Affairs Council.
PRODUCT OFFERING
Best Ice Cream provides packaged ice cream, chips, sodas, bottled water, pickles, and candy
at high traffic parks and special events in Dallas, Texas. Our main focus will be traditional ice
cream treats like ice cream sandwiches, popsicles, fruit bars, and packaged cones.
Our main products will be ice cream novelties, drinks and pickles. These three product
groups will make up 61%, 32% and 7%, respectively of our annual revenues. Our first priority
when we begin operations in July 2013 will be to build relationships with park managers and
special event planners.
MARKET
The packaged ice cream market has been growing steadily year over year. This is an
industry with a history of consistent growth that is projected to continue in the future. Best Ice
Creams target markets are middle to upper-middle class families that attend fairs, special
events and high-traffic parks in Dallas, Texas. We believe that these families are not properly
served and present on opportunity for us. This will be a part-time venture. We will operate on
Sherif O Alghali
2
Best Ice Cream

weekends and holidays. This is a seasonal business. While there are some opportunities for
us during the winter, late-fall and early-spring, sales during these time are limited. Our
greatest opportunities will be in the late-spring, summer and early-fall.
COMPETITION
There is a great deal of competition in the packaged ice cream industry. There is a lot of
indirect competition in the form of ice cream parlors and shops, convenience and drug stores,
and traditional ice cream trucks. Nationally our largest competitors are ice cream parlors,
Baskin-Robbins and Ben and Jerrys; convenience and drug stores like, Walgreens, CVS,
and 7 Eleven. Locally we will compete indirectly with Braums and Dairy Queen. The
traditional ice cream trucks and carts are too numerous to count. We consider them indirect
competitors because they mostly roam neighborhoods and are not found at the festivals and
special events that we will target. Local direct competitors include Gypsy Scoops, Short-nSweet Ice Cream, and Coolhaus to name a few. These companies all have a social media
presence and are found at the special events and festivals that we target. The barriers to
entry are medium; to begin operations a modest capital outlay is required. To be successful,
networking and social media skills are essential.
DIFFERENTIATION
At Best Ice Cream we differentiate ourselves from the competition through our use of
technology, our simple approach to ice cream, and our service. Many in our industry accept
only cash and do not track inventory in a meaningful way. We intend to use Square Register
to handle credit card transactions and inventory, which will give us access to analytics. This
will allow us to determine which products sell best at which locations, and what our turnover
time is for our inventory. Thereby, we will be able to operate much more efficiently and
profitably than the competition. We will also make use of Social Media to spread the word
about our business and post a schedule for our loyal customers. We also differentiate
ourselves by our simple approach to ice cream. Many of our direct competitors sell
specialized products, like custom-built ice cream sandwiches. We offer traditional packaged
ice cream at an affordable price for those who prefer something familiar. This is something
that is not found at most events in Dallas. Finally, we differ from our competition in our
commitment to service. We will offer friendly, hassle-free service. While this seems like a
given in any business, it is not standard in our industry. We will commit to a set of best
practices when serving customers. This will allow us to standout from our competitors.
MARKETING STRATEGY

Price
Best Ice Cream offers its products at three different price points our ice cream novelties will
be sold at an average price of $3. Our sodas will be sold at an average price of $2. Pickles
will be sold at an average price of $1.

Sherif O Alghali
Best Ice Cream

Place
Best Ice Cream is located in North Dallas, but will serve all of Dallas. There are numerous
high-traffic parks, festivals, and special events in Dallas that present a great opportunity for
us.
Promotion
To reach our target market, we will heavily use Social Media and the web. We will develop
pages on Twitter, LinkedIn, Facebook, Google+, and Yelp, as well as our own Webpage. The
owner will also use his extensive personal network and web presence to get out the word
about the business. Additionally, we will use Square Register to implement a rewards
program to develop a loyal customer base. We will wear a uniform of Khaki pants or shorts
with a polo shirt bearing our name and logo. Our truck will also have our name and logo as
well as our Web address. The most important promotional work we will do will be to network
and develop relationships with event organizers, planners and park managers. We will pass
out business cards and fliers at small business events in Dallas, such as those sponsored by
the Dallas Small Business Development Center, Minority Business Council and Dallas
Chamber of Commerce. We will also join the previously mentioned organizations and others
like the DFW World Affairs Council and Dallas Public Radio to increase our networking
opportunities.
VISION AND OBJECTIVES
Two Months Before Starting
Research/Advisory
Finalize business plan
Further research startup costs
Recruit advisory team including an accountant, bookkeeper and lawyer
Marketing
Create marketing strategy
Develop plan to assess marketing effectiveness
Write 100 objectives and responses
Register with Chamber of Commerce and Minority Business Council
Compliance
Get Texas Sales Tax ID
Organize business as RFL Investment Corporation
Obtain DBA for Best Ice Cream
Open a business checking account
Other
Obtain a phone
Acquire appropriate insurance
Buy needed tools
Sherif O Alghali
Best Ice Cream

Secure legal counsel

First Two Months After Starting

Assess marketing strategy effectiveness
Generate publicity by talking to civic groups about entrepreneurship
Participate in community events to increase networking opportunities
First Year
Make a sales goal of $41,000
Develop job description for the salesperson position
Create standard operating procedures for each position
Hire first employee
Work with a mentor from SCORE
Update my business skills through the Dallas Small Business Assistance Center
Expand marketing
Expand Equipment
Be profitable in the first year
Second Year
Expand to cover events in Richardson
Update business plan
Update sales goal
Expand service offered
Third Year
Further standardize practices
Expand geographic area
Research franchising
Update sales goal
Fourth Year
Sell the business
Philanthropy
At Best Ice Cream we believe that making a positive impact on the world as a whole is a
central part of our mission. As such we will focus our philanthropic efforts on donating 5% of
profits to organizations that provide vocational training to young people. We believe this helps
them to find better jobs, thereby empowering them to become productive citizens.
Community Impact
In the communities in which we operate we intend to pursue our philanthropic efforts as well
as sponsoring events for community non-profits and organizations. Through these services
we believe that we can assist these groups in better serving our community, which in turn will
enable the community in which we serve to flourish.

Sherif O Alghali
Best Ice Cream

FINANCIAL SUMMARY
Best Ice Creams revenue model1 is based on selling the following three products:

Ice cream novelties at an average price of $3. This service has a material cost of $.60,
producing a gross profit of $2.40 for each product sold. Materials include wholesale ice
cream. We project selling 8,407 of these in the first year for revenues of $25,200.

Drinks at an average price of $2. This product has a material cost of $.55, producing a
gross profit of $1.45 for each product sold. Materials include wholesale drinks. We project
selling 6,556 of these in the first year for revenues of $13,100.

Pickles at an average price of $2. This product has a material cost of $.30, producing a
gross profit of $1.70 for each service sold. Materials include wholesale pickles. We project
selling 1,378 of these in the first year for revenues of $2,800.

This will generate more than $41,100 in first-year revenues with a net profit of more than
$3,900. This is a 9% net margin after deducting $10,600 in total owner compensation ($7,000
cash withdrawals and $3,600 income taxes).
Best Ice Cream will have a positive cash flow in the second month of operations.
FINANCING STRATEGY
Best Ice Cream will start in July 2013. Total start-up funding is $8,000. This amount will cover
all equipment, beginning cash balance and other start-up costs.
Sherif will save $1,000. He also currently owns a truck valued at $2,000, which he will use to
start the business. The combined $3,000 will be Sherifs initial capital contribution.
The company will have an additional $5,000 in debt financing that will be repaid in 24 months
at 18%

The revenue model in the Executive Summary includes money paid for non-owner labor plus the economic
value of the owners labor (not necessarily cash paid). Initially, the business will be unincorporated and, as such,
receives no tax deduction for money paid to the owner. A deduction for owners labor is included in the
Executive Summary so the reader can assess the pro forma gross profit of the products and/or services.
Estimating this pro forma gross profit requires the PEP participant to value his time in calculating a realistic
sales price for his companys services. The attached financial projections differ in that non-owner labor is
included in cost of goods sold, and money withdrawn by the owner is shown as owner withdrawals after
calculating the businesss tax expense but before net income.

Sherif O Alghali
Best Ice Cream

Sherif Alghali DBA Best Ice Cream

Assumptions Used in Projected Income and Cash Flow Statements
Year 1
Note 1 Business Organization and Taxation
The business is a sole proprietorship and, accordingly, all taxes are the personal liability of the owner. The revenue
model (note 4) includes a deduction for the owner's labor to mirror the cost structure of an incorporated business.
This owner labor charge is deducted in calculating pro forma gross profit but is not included in the income statement
presentation in arriving at taxable income. The income statement reports owner withdrawals after calculating tax
expense and before net income.
The income statement assumes a flat 25% federal tax rate (10% personal income tax and 15% self employment tax).
Federal taxes are paid quarterly.
Note 2 Accounting Method
The financials assume that all revenues are collected in the month of sale and all expenses are paid in the month the
obligation is incurred. The financial statements assume there will be no accounts receivable and no accounts
payable.
Note 3 Start-up costs
The projected financials assume the business will secure initial financing and pay start-up expenses in month 1.
Sales and normal operating activities will begin in month 2.

marketing, business cards, fliers

cell phone purchase
car/truck lease down payment
permits
supplies, office & misc.
Truck repairs and improvements
S Corp Filing
Register Equipment

Cash needed for start-up expenses

company car, truck or van

company trailer
computer, printer, fax

Paid or
contributed in
Month 1
500

100
2,000
300
550

3,450
Paid or
contributed in
Month 1
2,000

building/office deposit
beginning cash balance
Cash needed for start-up assets

2,550
4,550

Total start up cost

8,000

Funding sources
Cash owner will contribute

1,000

Value of assets owner currently owns

and will contribute to the company
Total owner contribution

2,000
3,000

Vehicle loan and other equipment

debt (see note 5 for financing)
Start-up financing owner needs (see
note 5 for financing)
Total start up cost

5,000
8,000

Equipment
Financing

N/A
N/A
-

Depreciable
Assets
2,000
N/A
N/A
2,000
60 assumed life (months)
33 monthly depreciation

Sherif Alghali DBA Best Ice Cream

Assumptions Used in Projected Income and Cash Flow Statements
Year 1
Note 4 Revenue Model
Product name
Product description

Product 1
Ice Cream Novelties
Any pre-packaged ice cream novelty

Price per unit

Cost of one unit
Non-owner payroll exp.
Non-owner payroll tax
cost 1 description
cost 2 description
cost 3 description
cost 4 description
Total variable costs
Income statement gross profit per unit

hours

Start-up Month 1

total revenue
total cost of sales
total income statement gross profit (excludes owner labor)
Owner's labor hours (time spent directly related to sales)
Note 5 Financing
Start-up financing, see Note 3
Amount borrowed
5,000
principal, begin
Interest rate
18%
interest expense
Payback period (months)
24
principal payment
Grace period (months)
principal, end
Monthly payment
250

0.60

0.60
2.40

0%
0%
20%
0%
0%
0%
20%
80%

2.40

0%
80%

Product 3

Drinks
16.9 ounce sodas, teas and water

Pickles

hours

rate

Owner's labor charge

Pro forma gross profit

Ice Cream Novelties sold

Drinks sold
Pickles sold

100%

rate

Wholesale ice cream

hours

3.00

Product 2

100%

0.55

0.55
1.45

0%
0%
28%
0%
0%
0%
28%
73%

1.45

0%
73%

hours

rate

Month 2
1,200
660
180

Month 3
1,300
820
215

Month 4
1,000
560
170

Month 5
500
1,171
59

Month 6
387
1,288
64

5,280
1,137
4,143

5,970
1,296
4,675

4,460
959
3,501

3,960
962
2,998

3,865
960
2,905

5,000
4,825
4,648
75 72.38069235 69.7221
-174.62051 -177.2398175 -179.898
4,825
4,648
4,468

2.00
rate

Wholesale drinks

hours

Pickles

Month 7
220
100
64

Month 8
210
95
61

Month 9
200
102
60

988
206
782

942
197
745

924
194
730

4,468
67.02362
-182.597
4,286

4,286
64.2846655
-185.3358443
4,100

4,100
3,912
61.50462784 58.68289
-188.115882 -190.938
3,912
3,721

3,721
55.81883
-193.8017
3,527

Month 5

Month 6

Month 7

Month 8

Month 9

100%

0.30

0.30
1.70

0%
0%
15%
0%
0%
0%
15%
85%

1.70

0%
85%

rate

Wholesale pickles

hours

2.00

rate

Month 10
830
465
120

Month 11 Month 12 Total Year

1,160
1,400
8,407
550
745
6,556
165
220
1,378

3,660
790
2,870

4,910
1,048
3,862

6,130
1,316
4,814

41,089
9,063
32,026

3,527
3,527
3,331
52.91180004 52.91180004 49.96117 524.41741
-196.7087098 -196.7087098 -199.659 -1472.547
3,331
3,331
3,131

Note 6 Payroll - nondirect

# of employees
average hours each employee worked per month
average per hour wage
salary expense

Month 2
1
60
10.00
600

Month 3
1
60
10.00
600

Month 4
1
60
10.00
600

Month 10

Month 11 Month 12 Total Year

1
1
60
60
10.00
10.00
600
600
3,000

Sherif Alghali DBA Best Ice Cream

Projected Income and Cash Flow Statements
Year 1

Revenue
Ice Cream Novelties
Drinks
Pickles
Total revenue

Assumptions
2
4
4
4

Cost of Goods Sold

Ice Cream Novelties
Drinks
Pickles
Total COGS
Gross profit

2
4
4
4

Expenses
Auto or truck lease
Depreciation
Gasoline & fuels
Insurance - bonding
Insurance - vehicle
Interest - equip & start up
Marketing
Office - rent
Office - insurance
Office - telephone
Office - utilities
Payroll - not owner and not
in COGS
Payroll taxes (9%)
Permits
Supplies
Tax service
Telephone - cellular
Start-up expenses
Commissary Rent
Event Costs

Total expenses
Taxable profit (loss)
Tax (expense) benefit
Owner's withdrawals
Net profit (loss)
Depreciation
Equipment purchases
Principal, equipment loan
Repay debt financing
Owner contribution
Net cash flow
Cash, period start
Cash, period end

6
6

1
1
1
3
3
5
5
3

% of
Total
Revenue

Start-up
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

3,600
1,320
360
5,280

3,900
1,640
430
5,970

3,000
1,120
340
4,460

1,500
2,342
118
3,960

1,161
2,576
128
3,865

660
200
128
988

630
190
122
942

600
204
120
924

2,490
930
240
3,660

3,480
1,100
330
4,910

4,200
1,490
440
6,130

25,221
13,112
2,756
41,089

61%
32%
7%
100%

720
363
54
1,137
4,143

780
451
65
1,296
4,675

600
308
51
959
3,501

300
644
18
962
2,998

232
708
19
960
2,905

132
55
19
206
782

126
52
18
197
745

120
56
18
194
730

498
256
36
790
2,870

696
303
50
1,048
3,862

840
410
66
1,316
4,814

5,044
3,606
413
9,063
32,026

12%
9%
1%
22%
78%

33
300

33
300

33
300

33
300

33
300

33
300

33
300

33
300

33
300

33
300

33
300

200
75
100

200
72

200
70
100

200
67

200
64

200
62
100

200
59

200
56

200
53
100

200
53

200
50
100

600

600

600

600

600

367
3,300
2,200
680
1,000
3,000

0%
1%
8%
0%
5%
2%
2%
0%
0%
0%
0%
7%

54

54

54

54

54

50

50

50

50

50

50

50

50

50

50

50

100
100
200

100
100
200

100
100

100
100

100
100

100
100

100
100

100
100

100
100
200

100
100
200

100
100
200

1,607
1,894

850
2,148

848
2,058
(1,525)

945
(163)

842
(97)

839
(109)
92

1,136
1,734

1,690
2,172

(1,000)
894
33
(180)
747
5,099
5,846

(1,000)
1,148
33
(183)
999
5,846
6,845

533
33
(185)
381
6,845
7,226

(163)
33
(188)
(318)
7,226
6,908

(97)
33
(191)
(254)
6,908
6,654

(17)
33
(194)
(178)
6,654
6,476

(1,000)
734
33
(197)
571
6,476
7,047

(1,000)
1,172
33
(197)
1,008
7,047
8,055

500
100
2,850
3,450
(3,450)

1,812
2,331

(3,450)
(2,000)
5,000
3,000
2,550
2,550

(1,000)
1,331
33
(175)
1,189
2,550
3,739

1,710
2,965
(461)
(1,000)
1,503
33
(177)
1,360
3,739
5,099

Month 7

Month 8

The accompanying assumptions are an integral part of this financial statement.

Month 9

Month 10

Month 11

Month 12

1,787
3,027
(1,733)
(1,000)
294
33
(200)
127
8,055
8,183

Total Year

270
100
550
1,100
2,850
1,100
1,000
17,517
14,509
(3,627)
(7,000)
3,882
367
(2,000)
2,934
3,000
8,183
8,183

1%
0%
1%
0%
3%
7%
3%
2%
0%
43%
35%
-9%
-17%
9%