Cook 315 - Food Entrepreneurship Business Plan Assignment 2022 - April 17th

Cook 315 - Food Entrepreneurship
Business Plan Assignment

2022 - April 17th
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Table of Contents
Executive Summary.........................................................................................................................3
Section 1 - Business Overview........................................................................................................4
Section 2 - The Market....................................................................................................................4
3.0 - Pricing and Distribution..........................................................................................................5
4.0 - The Competition......................................................................................................................6
5.0 - Branding..................................................................................................................................8
6.0 - Sales & Marketing Plan...........................................................................................................9
7.0 - Financial Plan........................................................................................................................11
8.0 - Human Resources..................................................................................................................16
9.0 - Operating Plan.......................................................................................................................17
10.0 - Action Plan..........................................................................................................................20
References......................................................................................................................................24
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Executive Summary
Hot Hops offers Trinidad-styled hot hops bread with organic and ethically sourced ingredients
served hot off the oven. Hops bread is eaten fresh out of the oven as a hot meal with a topping.
Hot Hops will serve to replicate the traditional Trinidad experience and serve the hops hot off the
oven directly to the customer. Hot Hops’ target customer is the Trinidad and by extension, the
Caribbean diaspora in Toronto who exhibit social nostalgia for social artefacts and foods. I will
also target customers with a preference for organic and ethically sourced food. My research has
shown that those who have migrated seek out familiar foods that provide comfort and nostalgia.
Hot Hots aims to become a vehicle to fuel the sense of nostalgia and community to the
Trinidadian Diaspora. According to Statistics Canada, there are 43, 135 Trinidadians in Toronto
and near 300,000 people from the Caribbean. Hot Hops uses organic and ethically sourced
ingredients. There is a growing trend towards a preference for organic food given the success of
awareness campaigns on processed foods and their linkages to poor health and climate change.
According to the Canadian Organic Trade Association, two-thirds of Canadians buy organic
foods weekly.
Additionally, there is a growing trend towards ethically sourced foods given some of the
negative issues of globalization, income disparities and working conditions. All of Hot Hops
ingredients would be ethically sourced. A survey by International Food Information Council
Foundation showed that 54% of customers will buy ethically sourced foods.
Unique Selling Point, Pricing and Competition
Currently, there is no similar business operating in the Toronto area that fulfils the needs of
our primary target customers, the Trinidad and Caribbean diaspora.
Hot Hops will provide hot hops bread fresh off the oven to customers in less than 15 minutes
given our soon to be patented purpose designed production and management system.
Hot Hops is a home based operation in Toronto that operates on evenings from 4:00 p.m. – 9:00
p.m. except on Sundays / holidays. Our next steps will be a roving delivery van service which
will offer our hops bread to customers in residential areas. This service would be offered in areas
with the target customer on a rotating basis each week and advertised via a webpage and SMS
phone messages. Pre-orders and contactless online / onsite payments would be facilitated.
Customers could download the Hot Hops app on their phones for tracking.
It costs us 20 cents to produce a hops bread and we will sell it for 50 cents. This is actually about
35% less than an artisanal dinner roll. This pricing strategy will ensure our competitiveness,
growth and sustainability given that our target customers are price sensitive.
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Hot Hops estimates a start-up cost $ 28,200 with the home based operation in phase 1. Phase 2
would employ the use of the roving truck. Hot Hops estimates a realistic monthly gross sales of
26,400 hops to generate $13,200 per month in sales with a monthly cost of operations of $3,600.
It is expected that Hot Hops would realize positive revenues after three months in operation and
realize gross sales of $13,500 by month 12 with $ 4,800 net profit.
Section 1 - Business Overview

1.1 Hot Hops
o Address: 3500 Brimley Road, Toronto, M1V 5K6
o Email address: hothops2022@gmail.com
o Phone: 416-000-0001
o Website: https://www.hothops.com
1.2 Business Description

Hot Hops offers Trinidad-styled hot hops bread with organic and ethically sourced ingredients
served hot off the oven. Hops bread is eaten fresh out of the oven as a hot meal with a topping.
oven directly to the customer.
1.2 - Major Demographic, Economic, Social, and Cultural Factors
Demographic Factors
Hot Hops’ target customer is the Trinidad and by extension, the Caribbean diaspora in Toronto
who exhibit social nostalgia for social artefacts and foods. I will also target customers with a
preference for organic and ethically sourced food. My research has shown that those who have
migrated seek out familiar foods that provide comfort and nostalgia. Hot Hots aims to become a
vehicle to fuel the sense of nostalgia and community to the Trinidadian Diaspora.
According to Statistics Canada, there are 43, 135 Trinidadians in Toronto and near 300,000
people from the Caribbean.
Economic Factors
Hot Hops would register with the Canada Revenue Agency voluntarily for a business number for
collection and remittance of Harmonized Sales Tax (HST), Income tax and Employment
Insurance (EI) and the Canada Pension Plan (CPP) for employees.
Furthermore, the Ontario government has signaled a policy to lower the costs of doing business,
support diverse entrepreneurs and increase the access to skills (Ministry of Economic
Development, Job Creation and Trade, 2022).
Social Factors
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Bread is well embedded into the social traditions of Canada and serves as a versatile conduit to
socialization via food. In particular, Hot Hops is aimed at the Caribbean diaspora.
Section 2 - The Market

2.1 - Market Segment
oven directly to the customer.
2.2 - Products and Services
Hot hops bread fresh off the oven to customers in less than 15 minutes
2.3 - Market Trends
Hot Hops uses organic and ethically sourced ingredients. There is a growing trend towards a
preference for organic food given the success of awareness campaigns on processed foods and
their linkages to poor health and climate change. According to the Canadian Organic Trade
Association, two-thirds of Canadians buy organic foods weekly. Additionally, there is a growing
trend towards ethically sourced foods given some of the negative issues of globalization, income
disparities and working conditions. All of Hot Hops ingredients would be ethically sourced. A
survey by International Food Information Council Foundation showed that 54% of customers
will buy ethically sourced foods.
3.0 - Pricing and Distribution

3.1 - Pricing
It costs us 20 cents to produce a hops bread and we will sell it for 50 cents. This is actually about
35% less than an artisanal dinner roll. This pricing strategy will ensure our competitiveness,
growth and sustainability given that our target customers are price sensitive.
Distribution
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3.2 - Implications or Risk Factors
The pricing of $0.50 per hops bread places the product into an affordable price bracket. This will
position it to the target market of primarily a working class Caribbean diaspora. It is aimed to
capture a significant portion of the market share given that a comparative product, an artisanal
bread is about 35% higher in price.
3.3 - Planned Response to Risk Factors

Hot Hops will manage its top risks forecasted based on the following risk register:
Risk Risk Description Probability Potential Risk Response
# of Impact
Occurrence on the
Business
1 Competition from other Medium High Stay tuned into the market needs
entities and adjust pricing, product
offerings as needed. Use
promotions such as free offers,
tokens, loyalty programs and other
mechanisms. Ensure excellent and
unparaled customer service.
2 Inadequate Cash Flow Medium High Develop realistic estimates to
input into the budget and
projections. Have a pre-qualified
source of short-term financing.
Possible back-up product to buffer
any fluctuations in the hops sales.
3 Delays in supply chain for Medium High Create a pool of suppliers as
ingredients alternative sources. Hedge
supplies as far as practicable.
4 Further pandemic Medium Medium Ensure systems are in place to
restrictions seamlessly switch to full online
operations.
5 Product quality is Medium High Develop clear standard operating
compromised procedures (SOPs) and ensure all
staff are fully trained. Review
process maps periodically against
quality standards.
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Table 1: Risk Register for Hot Hops
4.0 - The Competition
Currently, there is no similar business operating in the Toronto area that fulfils the needs of our
primary target customers, the Trinidad and Caribbean diaspora.
4.1 - Competitors and type of competition

Currently, there are no direct competitors. However, in terms of replacement competition, there
are artisanal bread retailers inclusive of delis in supermarkets and bakeries.
4.2 - SWOT - Competitors’ Strengths and Weaknesses
Strengths Weaknesses
Does not offer a product for the Trinidad
 Has a market share and Caribbean diaspora market segment
 Currently in operation
 Established supply chains
 Experience in navigating the
administrative and legal domains
Threats Opportunities
 Further pandemic restrictions  New markets such as the Trinidad
 Loss of market share and Caribbean diaspora
 Staff turnover  Online sales
 Changes in fiscal and other policies  New products
4.3 - SWOT Analysis for Hot Hops

Strengths Weaknesses
 No established supply chain
 Knowledge of the needs of the target  The target market has not been
market tested by another entity
 Product know-how  No existing capital funds to buffer
 Product is proven in home country business in times of fluctuations
 43,135 Trinidadians in Toronto &  New business entity
near 300,000 people from the  Not pre-qualified for financing
Caribbean.
Threats Opportunities
 Further pandemic restrictions  Target market may require
 Competition additional products
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 Changes in fiscal and other  Potential angel investor
policies  Government small business
 Poor sales /revenue assistance or grants for start-up
4.4 - Competitive Advantage

Hot Hops will provide hot hops bread fresh off the oven to customers in less than 15 minutes
given our soon to be patented purpose designed production and management system.
4.5 - Gap analysis

Current State Future State Proposed Actions
Zero market share 20% of the Trinidad & A marketing plan that
Caribbean diaspora market includes multiple strategies
segment on promotions inclusive of
social media with competitive
pricing and convenient,
contactless and effortless
distribution.
Price sensitive competition
Development of a sound
brand that echoes quality in
the minds of customers.
5.0 - Branding
The brand of Hot Hops will speak to social nostalgia for social artefacts and foods by the
Caribbean diaspora in Toronto. It will also speak to organic and ethically sourced food.
Therefore, the brand would voice would carry a contiguous theme of compassion, optimism and
connection to a simple and comforting food. This branding would transcend all promotions,
packaging, service and communications. Hot Hops would use yellow and green colours for its
branding. Yellow is associated with happiness and mental activity and is associated with
sunshine. Green is associated with a natural and safe product (Rodin, 2015).
5.1 - Vision Statement
To provide a window of comfort and joy
Mission Statement
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Hot Hops would become the preferred bakery of choice for the Trinidad and Caribbean
diaspora in Toronto that provides the best hops bread.
5.2 - Logo & WordMark
6.0 - Sales & Marketing Plan

Hot Hops uses organic and ethically sourced ingredients. There is a growing trend towards a
preference for organic food given the success of awareness campaigns on processed foods and
their linkages to poor health and climate change. According to the Canadian Organic Trade
Association, two-thirds of Canadians buy organic foods weekly. Additionally, there is a growing
trend towards ethically sourced foods given some of the negative issues of globalization, income
disparities and working conditions. All of Hot Hops ingredients would be ethically sourced. A
survey by International Food Information Council Foundation showed that 54% of customers
will buy ethically sourced foods. Hot Hops will serve to replicate the traditional Trinidad
experience and serve the hops hot off the oven directly to the customer.
As such, Hot Hops will develop a sound marketing campaign.
6.1 - Customers - Getting new Customers is 5 times harder than retaining your existing
customers - How will you get New customers, and How will you retain them once you get them
in your door?
Hot Hops will attract new customers by:
 Push marketing via social media where the Hot Hops advertisement is linked to search
engines.
 Link the website of Hot Hops to popular websites of the Trinidad and Caribbean target
market
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 Use direct word of mouth referrals within the target market
 Promote videos of the hot hops bread just as they are removed from the oven and paired
with New Zealand cheese and hot pepper sauce or other toppings.
 Operate a blog on the website of Hot Hops that supports customer reviews.
Hot Hops will retain customers by:
 Excellent customer service
 Free offers and giveaways
 Tokens such as pens, key holders and other items at key times of the year such as
Christmas.
 Creation of a Hot Hops Online Community where the target market could join and
connect with other similar customers from the target market of Trinidad and Caribbean
diaspora who are nostalgic about their home country and culture. Hot Hops will feature a
video or story about a customer each week and share videos of the hops bread being
made.
6.2 - Suppliers
Hot Hops will form strategic alliances with key suppliers for raw ingredients and services. Hot
Hops will ensure a sound service level contract based on clear performance specifications,
schedules, quality standards, payment terms and schedules, mechanisms for dispute resolution
and termination clauses.
The contract would have a mechanism for risk sharing. In the event of cost overruns, a sharing
ratio of 90:10 would be used where Hot Hops would absorb up to 10% of the cost overruns. In
the event of cost saving from price decreases, a 70:30 ratio would be used where Hot Hops
would benefit from up to 30% in cost savings from the supplier.
Hot Hops will ensure a mutually beneficial long term relationship with all suppliers and will
work to create an environment of trust. Suppliers could be featured in marketing promotions of
Hot Hops to create win-win scenarios where Hot Hops may realize discounts.
Hot Hops would feature videos of how the gluten free flour is produced and packaged by
suppliers and demonstrate good ethical sourcing practices to customers.
6.3 - Pricing & Distribution
Planned Promotions & Marketing
Hot Hops will provide 5 extra Hops Bread free to each customer that purchases 15 hops on any
day when the ambient temperature is negative 10 0 C or less.
 Hot Hops will provide a free taste sample to any customer who is interested on site.
 Hot Hops will provide free giveaways each month to a community based organization
that is connected to the target market in Toronto.
Distribution
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6.4 - Customer Service Policy

Salient items of Hot Hops Customer Service Policy:
 Hot Hops will ensure excellent customer service where customers are our top priority
 Hot Hops will always ensure that the customer is satisfied
 Hot Hops will provide full refunds to any customer who is not satisfied with the product
without the need for a sales receipt
 Hot Hops will train and empower all employees as business ambassadors and offer up to
5% sharing on annual profits that exceed a certain threshold.
7.0 - Financial Plan

The Startup Costs of Hot Hops is estimated at $15,590 as shown by Table 2 below
START-UP COSTS
Hot Hops
COST ITEMS ONE-TIME TOTAL COST
COST
Marketing Consultancy $1,500 $1,500
Legal and Administrative $1,000 $1,000
Opening Inventory $1,000 $1,000
Pre-payment for utilities $200 $200
Logistics and Shipping $500 $500
Umbrella Insurance $600 $600
Equipment $12,000 $12,000
Minor Renovations to outfit for equipment $800 $8,000
Reserve Capital $2,000 $2,000
Point of Sales System $1,400 $1,400
ESTIMATED START-UP BUDGET $28,200
Table 2: Start Costs of Hot Hops

Assumptions:
 There are no additional employees benefits from what exists
 Advertising / Marketing fees are based on a per use basis
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 Utilities cost are based on operations on evenings from 4:00 p.m. – 9:00 p.m. except on
Sundays / holidays.
Table 2 below shows the best and worst sales scenario per month.
Quantity Worst (-10%) Realistic /month Best (+10%) /month

/month
Number of Hops 23,760 26,400 29,040
Bread
Revenue / $ @) $0.50 11,880 $13,200 14,520
each
Table 3: Monthly forecast scenarios
Assumptions
 There are 5 customers for each production cycle of 15 minutes for 5 hours and each
customer orders a minimum of 10 hops bread
A weighted average on customer order is used as follows:
(Optimum + 4 most likely + pessimistic) / 6
Substituting based on conservative estimates:
(20 + 4 (10) + 5) / 6 = 10.83 round = 11 hops bread
Each production batch is expected to have 5 customers and each is expected to order 11
hops each. Therefore, in 1 hour there would be 5 x 4 x 11 = 220 hops bread ordered and
in 5 hours there would be 5 x 220 = 1100 hops bread per operation.
In one month, there would be 1100 x 6 days per week x 4 =
 Routine customer consumption patterns with any special festivity
 No further pandemic restrictions
Monthly Operating Budget (Without Food Costs)

Budget Item Cost /$
Labour 2,700
 Owner / Manager – full time
 Baker / Operations Lead - 5 hrs per
week
 Bakery Attendant - 5 hrs per week
 Bakery Clerk 5 hrs per week
Janitorial Services 100

Utilities 400
Rent 500
Total $3,600
Table 4: Monthly Operating Budget

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Product Cost Analysis of Hot Hops Bread – See Table 5
Labour /$ Food Cost/$ Packaging?$ Retail Price /$ Food Cost %
0.07 0.12 0.01 0.50 24
Table 5- Product Cost Analysis
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Projected Profit and Loss Sheet – See Table 6
Th
Profit and Loss
is
Bu
Hot Hops
si
Re
REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
ve
Estimated Product Sales $3,000 $4,000 $5,000 $8,000 $9,000 $10,000 $11,000 $11,500 $12,000 $12,800 $13,000 $13,500 $112,800
Less Sales Returns & Discounts ($500) ($500) ($500) ($500) ($500) ($550) ($550) ($550) ($550) ($550) ($600) ($600)
Net Sales $2,500 $3,500 $4,500 $7,500 $8,500 $9,450 $10,450 $10,950 $11,450 $12,250 $12,400 $12,900 $106,350
Cost of Goods Sold $600 $800 $1,000 $1,600 $1,800 $2,000 $2,200 $2,300 $2,400 $2,560 $5,200 $5,400 $27,860
Gross Profit $1,900 $2,700 $3,500 $5,900 $6,700 $7,450 $8,250 $8,650 $9,050 $9,690 $7,200 $7,500 $78,490
Co
st
Gr
EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
os Salaries & Wages $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $32,400
Ex
Marketing/Advertising $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $4,800
p
Rent $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000
Total Expenses $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $43,200
Income Before Taxes ($1,700) ($900) ($100) $2,300 $3,100 $3,850 $4,650 $5,050 $5,450 $6,090 $3,600 $3,900 $35,290
Income Tax Expense ($500) ($520) ($575) ($600) ($610) ($640) ($655) ($670) ($680) ($700) ($740) ($900) ($7,790)
In
NET INCOME ($1,200) ($380) $475 $2,900 $3,710 $4,490 $5,305 $5,720 $6,130 $6,790 $4,340 $4,800 $43,080
co
In
co
Table 6: Profit and Loss Projection

Assumptions:
 Product sales are conservatively forecasted based on the uptake of the marketing campaign juxtaposed over the year
 It is assumed that there are no increases in tax rates or the minimum wage
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7.1 - Financial Performance – Historical
Hot Hops is a new start-up. However, based on a benchmark with similar entities, it is expected
that Hot Hops would achieve sustainable growth by the end of the first year of operations.
7.2 - Financial Plans - Projected
The project sales are conservatively estimated given the novelty to the business where 5
customers place order per production cycle batch. It is expected that this value would increase to
between 8 and 15 after one year of operation.
7.3 - Financial Plan Spreadsheets - Excel Spreadsheet - with details
See Tables 2, 3, 4, and 6
7.4 - Budget Financial Requirements -See Table 2
7.5 - Performance Indicators

1. Sales per week
2. Costs of Goods Sold
3. Food Costs
4. Prime Costs
5. Cycle time for batch production
7.6 - Personal Status

As the owner / manager, I would raise the capital for a small business development loan for a
financial institution
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8.0 - Human Resources
8.1 - Key Employees – See Table below
*Employee Category Number F/T, P/T, Seasonal
Required
Baker / Operations Lead 1 F/T
Bakery Attendant 1 F/T
Bakery Clerk 1 F/T
Janitor 1 P/T - Outsourced
Bookkeeper 1 Seasonal -Outsourced
Roving Truck Driver (Phase 2 1 P/T
of operations only)
Table 7: Key Employees and Structure
* - Job Descriptions would be development for each position that outlines responsibilities, duties,
required education, training, skills and reporting relationships.
8.2 - Management Team
Owner / Manager
Amanda Birsingh
Baker (1) Bookeeper (1) Bakery Clerk (1)

/Operations Lead Contracted, Seasonal
John Doe
Figure 1: Management Structure
8.3 - Employee Structure - F/T, P/T, Seasonal

See Table 2 above
8.4 - Polices & Procedures
1. Health, Safety and Environment Policy
2. Employee Reward and Recognition Policy
3. Employee Profit Sharing Policy
4. Employee Compensation and Benefits Policy
5. Employee Training and Development Policy
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6. Industrial Relations Policy
7. Sick Leave, Vacation and Compassionate Leave Policy
9.0 - Operating Plan

Hot Hops would be managed by the Owner / Manager – Amanda Birsingh on a daily business.
The Owner Manager would be responsible for the overall success of the business and is
responsible for the production, marketing, customer and stakeholder relations, financial
management, quality assurance and control, heath, safety and environment and management of
the supply chain
The Baker / Operations Lead would coordinate the daily operations to ensure set production
targets are met within explicit quality standards.
A quality control chart would be utilized to measure the production specifics such as the
temperature of the bread, the cycle time for the production of a batch of hot hops breads and the
cycle time from the point of order to delivery. Figure 1 shows a typical control chart that would
be used to monitor the operations to ensure quality control and assurance given that Hot Hops is
customer focused and must ensure that its product has a consistent quality at times.
Figure 2: An example of a Control Chart (Foley, 2022).
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The Baker Clerk will assist in the recording of quality control data on a daily basis.
The Baker Clerk would be responsible for the collection and tracking of all sales, payments and
deliveries
9.1 - Business location

Hot Hops is a home based operation on Brimley road, Toronto and operates on evenings from
4:00 p.m. – 9:00 p.m. except on Sundays / holidays. Our next steps will be a roving delivery van
service which will offer our hops bread to customers in residential areas. This service would be
offered in areas with the target customer on a rotating basis each week and advertised via a
webpage and SMS phone messages. Pre-orders and contactless online / onsite payments would
be facilitated. Customers could download the Hot Hops app on their phones for tracking
9.2 - Location Requirements - What are the details of the location you have chosen
The building must and outfitting must conform to the Ontario requirements of Safety and
Occupational Health Act requirements.
9.3 - Location Advantages & Disadvantages
Advantages:
 No new lease or significant increase in rent
 No commute cost to owner /manager
 Ease to access to home when needed for owner / manager
 Provides a homely atmosphere and personalized service to customers
Disadvantages
 Business operations may cause excessive traffic in the neighborhood
 Potential issues from neighbors on parked customer vehicles and noise.
 The operations would outgrow the home location
 Potential new regulations may arise that prevents the home based operation
9.4 - Lease or Ownership Details

The home based lease is expected to be about $3,000 per moth given a premium for home the
business operations on top of the home lease monthly rent. The Roving Truck service is the next
step. This is expected to cost around $ 55,000 for the vehicle plus $15,000 to outfit it with an
oven and other equipment. A soft loan arrangement would be sought. The cost of annual
maintenance is expected to be 5% of the purchase price.
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9.5 - Equipment - See Table 3 below
Equipment Quantity Arrangement
Commercial Oven 1 Buy
Commercial Dough Mixer 1 Buy
Refrigerator 1 Buy
Bakery pan 20 Buy
Sifter 2 Buy
Bread Rack 8 Buy
Dough Cutter 4 Buy
Spatula 4 Buy
Rolling Pin 4 Buy
Table 4 Buy
Cart 4 Buy
Display Case 1 Buy
Waste bins 3 Buy
Point of Sales system 1 Lease
Roving Truck 1 Buy
Table 3: Key Equipment List
;
9.6 - Future Expenditures/Technology – See Table 4 below
Category Items
End of Lifecyle ReplacementCommercial Over – after 8 years; Commercial Mixer – after 5
years; Food Truck – after 15 years
Preventative Maintenance 5% of the purchase price per annum over the useful life of the
and Repairs equipment such as the Commercial Mixer or Roving Truck.
Technology Upgrade Point of Sales to cloud based; Robot Customer Service app;
professional website with analytics, market reports;
Staff Personal Protective Replace every 2 years and upgrade as per any changes in
Equipment legislation
Waste Management Upgrade to a system with bioreactors
Table 4: Forecasted future expenditure

9.7 - Research & Development
Hot Hops will continually seek customer viewpoint via simple and quick surveys (for example
Google Forms and Survey Monkey) observations and face to face interviews (with rewards
provided) to tap into any changing trends and preferences such as sustainable foods and heath
trends. Furthermore, Hot Hops will subscribe to popular industry associations and research
reports from independent their party technology, industry and marketing entities to remain ahead
of the competition with sound, scientific and proven research data. Hot Hots will use such data as
inputs into its strategic and operating plans.
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9.8 - Environmental Aspects
Hot Hops will focus its operations on:
a) A low Carbon Footprint
Hot Hops will ensure that all equipment, lighting and operations are energy efficient and
use minimum power as far as practicable. Hot Hops will ensure that all equipment are
maintained based on a maintenance schedule to ensure optimum operations. Hot Hops
will also ensure that the building is inspected based on regulations and maintained
adequately inclusive of any repairs and sealing of energy loss points. Where applicable,
Hot Hops will utilize equipment and lighting that uses renewable energy sources such as
solar power. Hot Hops will ensure compliance with all federal, provincial and city laws
and regulations.
b) Quality Assurance
Hot Hops will develop Standard Operating Procedures (SOPs) for the entire value chain
operations to ensure an environmentally sound, safe and hygienic operations. All staff
would be trained in the SOPs and held accountable for as per their job descriptions.
c) Sustainability
Hot Hops will ensure that all ingredients are fully utilized in its operations across its
value chain. It will set quality goals and provide rewards to staff for zero waste across the
operations. Standard Operating Procedures (SOPs) would also be developed for waste
management, recycling and composting and all staff would be trained in these SOPs.
10.0 - Action Plan

10.1 - Action Plan - See Figure 3 – Work Breakdown Structure
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Hot Hops Start-Up
1
Financing Marketing Procurement Administrative Launch

1.1 1.2 1.3 1.4 1.5
Submit Propposal Marketing Campaing Equipment Provincial Outfilt Facility

1.1.1 1.2.1 1.3.1 1.4.1 1.5.1
SIgn Contract Adertising Ingrieidients Approvals Train Staff

1.1.2 1.2.2 1.3.2 1.4.2 1.5.2
Promotation Staff Legal Marketing Blitz

1.2.3 1.3.3 1.4.3 1.5.3
DIstrubution Utilities Production

1.2.4 1.3.4 1.5.4
Point of Sales
Social Media Custmer Care
System
1.2.5 1.5.5
1.3.5
Website
1.2.6
Figure 3: Work Breakdown Structure for Hot Hops Start-Up
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10.2 - Timetable
Work Package June July Aug Sept Oct Nov Dec

Financing
Equipment
Administrative
Marketing
Staffing
Procurement
Launch
Figure 4: Project Schedule for Launch of Hot Hops
10.3 - SMART Objectives

 Number of New Customers per month
 Number of Customers that return per month
 % Variation from batch production cycle time of 15%
 Operating costs per month
 Net Profits per month
10.4 - Return on Investment
ROI is 125% by the end of Year 1.
10.5 - Financial Performance & Projected Market Share – See Chart 1 and 2
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Gross Profit
$90,000
$80,000
$70,000
$60,000
Chart 1: Projected Gross Sales

$50,000
$40,000
$30,000
$20,000
$10,000
$0
1 2 3 4 5 6 7 8 9 10 11
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References
Foley, A. (2022). Control charts: Everything you need to know .
https://www.clearpointstrategy.com/control-charts-everything-you-need-to-know/
Government of Canada. (2022 February 11). Taxation guide.

https://sbs-spe.feddevontario.canada.ca/taxation-guide#Basics
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Cook 315 - Food Entrepreneurship Business Plan Assignment 2022 - April 17th

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Cook 315 - Food Entrepreneurship

Business Plan Assignment

Section 1 - Business Overview

1.2 Business Description

Section 2 - The Market

3.0 - Pricing and Distribution

3.3 - Planned Response to Risk Factors

4.0 - The Competition

4.1 - Competitors and type of competition

4.2 - SWOT - Competitors’ Strengths and Weaknesses

4.3 - SWOT Analysis for Hot Hops

4.4 - Competitive Advantage

4.5 - Gap analysis

6.0 - Sales & Marketing Plan

6.4 - Customer Service Policy

7.0 - Financial Plan

Table 2: Start Costs of Hot Hops

Quantity Worst (-10%) Realistic /month Best (+10%) /month

Monthly Operating Budget (Without Food Costs)

Janitorial Services 100

Table 4: Monthly Operating Budget

Table 5- Product Cost Analysis

Table 6: Profit and Loss Projection

7.4 - Budget Financial Requirements -See Table 2

7.5 - Performance Indicators

7.6 - Personal Status

Baker (1) Bookeeper (1) Bakery Clerk (1)

Figure 1: Management Structure

8.3 - Employee Structure - F/T, P/T, Seasonal

9.0 - Operating Plan

Figure 2: An example of a Control Chart (Foley, 2022).

9.1 - Business location

9.4 - Lease or Ownership Details

Table 4: Forecasted future expenditure

10.0 - Action Plan

Financing Marketing Procurement Administrative Launch

Submit Propposal Marketing Campaing Equipment Provincial Outfilt Facility

SIgn Contract Adertising Ingrieidients Approvals Train Staff

Promotation Staff Legal Marketing Blitz

DIstrubution Utilities Production

Figure 3: Work Breakdown Structure for Hot Hops Start-Up

Work Package June July Aug Sept Oct Nov Dec

10.3 - SMART Objectives

10.4 - Return on Investment

ROI is 125% by the end of Year 1.

Chart 1: Projected Gross Sales

Government of Canada. (2022 February 11). Taxation guide.

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