boulder candy co. (2)
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- 1. 2 TABLE OF CONTENTS EXECUTIVESUMMARY 4 PRODUCTSANDSERVICES 4 MARKETANDINDUSTRY 4 MARKETING 4 MANAGEMENT 4 FINANCES 4 FUNDING 5 COMPANYOVERVIEW 5 INTRODUCTION 5 VISION 5 MISSIONSTATEMENT 5 BUSINESSMODEL 5 PRODUCT/SERVICEPLAN 6 GROWTHSTRATEGY 7 VALUEPROPOSITION 7 PROPRIETARYRIGHTS 7 MARKETANDINDUSTRYANALYSIS 8 MARKETANALYSIS 8 INDUSTRYANALYSIS 10 MARKETINGPLAN 11 TARGETCUSTOMERRESEARCH 12 CHANNELSTRATEGY 13 POSITIONING 14 BRANDINGSTRATEGY 14 DIGITALSTRATEGY 15 COMMUNICATIONSTRATEGY 16 SALESSTRATEGY 16 PRICINGSTRATEGY 17 REVENUEMODEL 17 OPERATIONSPLAN 18 RESEARCH,DEVELOPMENTANDENGINEERING 18 SCOPEOFOPERATIONS 19 COSTSANDEXPENDITURES 20 KEYMILESTONES 22
- 2. 3 FINANCIALPLAN 23 KEYDRIVERS 23 FINANCIALSUMMARY 24 FINANCIALPROJECTIONS-ASSUMPTIONS 25 MANAGEMENTPLAN 25 RISKS 27 FUNDING 28 FUNDINGSTRATEGIES 28 SOURCESANDUSESOFFUNDS 29 OFFERING 30 REFERENCES 31 APPENDICES 32
- 3. 4 EXECUTIVE SUMMARY PRODUCTS AND SERVICES Products at Boulder Candy Co. include gourmet chocolate bars, hard candies, lollipops, seasonally themed candy, and assortments of soft and chewy candies that are hand- made and produced without harmful GMOs and additives. In addition to selling candy in- store, Boulder Candy Co. also will repackage candy in gift baskets and boxes available to order online for any occasion. Specially crafted gift boxes will be a part of a monthly subscription service with candies and chocolate carefully selected to satisfy each persons personal tastes and preferences. MARKET AND INDUSTRY The candy industry is expected to grow at a rate of nearly 1% each year in the United States, which gives an ideal opportunity for starting a confectionary business with a healthy twist in order to satisfy health-conscious individuals. The demand for healthy candy has close to doubled over three years, and this trend is persisting. MARKETING Boulder Candy Co.s goal is to perceived as a local, healthy, yet delicious candy shop founded on honesty, true values, and produced with pure and healthy ingredients. To obtain this goal, our marketing strategy will be aimed towards presenting our healthy yet delicious products at local health expos and farmers markets, while also advertising through many channels of social media including Facebook, Twitter, Instagram, and Google+. In addition to social media, we plan on making a visible presence in local newspapers and magazines and establishing a loyal and stable relationship with potential customers. After initially advertising through word of mouth and content marketing, we plan on expanding Boulder Candy Co. to more retail stores and businesses such as Whole Foods and Alfalfas in order to expand our brand name. MANAGEMENT Boulder Candy Co. was founded by CEO Nicolette Holmes and later added a management team comprised of CFO Elise Creighton, VP of Sales and Marketing, Masha Gershovich, COO Remington Pollina, and Creative Director, Kelly Fu. Together, the management team has financial, marketing, sales, creative, and analytical skills combined with honest and true values to make a successful and well-grounded business. FINANCES In Year Three of sales, Boulder Candy Co. will be making a total revenue of $7,224,900, with a Net Income of $3,336,950. The breakeven point will occur in Year Two of business, and cash balances after Year Three are estimated at $528,061.
- 4. 5 FUNDING Boulder Candy Co. will require $1,050,000 of funding in Year One for all startup costs and expenses. The five owners will provide $150,000 of funding, we plan to get a loan from the Small Business Administration in the amount of $300,000, and the rest will be raised by family and friends, as well as angel investors and venture capitalists. COMPANY OVERVIEW INTRODUCTION Boulder Candy Co. is a boutique candy crafting company dedicated to quality ingredients, sustainability, and fostering a healthier community. Despite being located in the birthplace of many of the natural food industrys leading names, our company is uniquely the only all-natural candy company based in Boulder, Colorado. Our natural and organic candy products will be manufactured in East Boulder and sold in the Boulder Candy Co. retail store in downtown Boulder, as well as natural and holistic grocery stores such as Alfalfas and Whole Foods. VISION Boulder Candy Co. takes on the responsibility of being a health-conscious all-natural and organic candy store that satisfies sweet cravings and a healthy-minded conscious. MISSION STATEMENT Boulder Candy Co. believes in a simpler time when candies were made without the use of artificial and toxic ingredients. We strive to bring quality in simplicity back to candy through our commitment to natural and sustainable ingredients and small batch crafting. BUSINESS MODEL Boulder Candy Co. will be operating under two different business models: business to the consumer and business-to-business. Boulder Candy Co. assumes to be profitable under the value proposition of our variety of confectionary treats sold in our retail stores alongside the sale for our trademarked confectionery treats in a variety of specialty confectionery retailers.
- 5. 6 PRODUCT/SERVICE PLAN Boulder Candy Co. products are designed to offer an alternative to the processed, conventional candy brands and eliminate the unhealthy ingredients without sacrificing taste or texture. Our candies are made only from USDA Certified Organic, non-GMO, and Fair Trade ingredients and do not include any artificial flavors, colors, chemicals, or preservatives. Boulder Candy Co. is only chooses ingredients that are sourced sustainably and at fair labor wages. Because we are dedicated to minimizing our environmental impact, all of our packaging is either compostable, recyclable, or reusable. The Boulder Candy Co. store features a vintage aesthetic and a boutique approach to an old-fashioned candy store. The Boulder Candy Co. store anticipates location on Broadway Ave. in downtown Boulder, adjacent to the Boulder Creek. The stores perimeter will be lined with shelves of containers full of candies, repurposed barrels filled with an assortment of taffies. Customers will use recyclable bags to scoop any amount of their desired candies, which will be weighed and sold by the ounce as per a traditional candy store. Our goal is to evoke nostalgia and provide a novel experience that can be enjoyed by old and young alike, while highlighting the organic and rustic essence of our company. The following table outlines our key product features and benefits. Key Features Benefits Certified Organic, Non-GMO, and Fair Trade Ingredients Better for customers health Safe for kids and reassuring by parents Provides new alternative to processed candies Supports sustainable farming and labor practices Compostable, Recyclable, or Reusable Packaging More sustainable Reduces waste and environmental impact Multiple Candy Varieties Assortment of chocolates, hard candies, taffy and more provides choices to a diverse audience Great for occasions Small Batch Made Quality controlled Boulder local product Promotes small business Brick-And-Mortar Retail Store Fills need for natural candy store in Boulder Beautiful location next to Boulder Creek Provides fun activity for young and old alike Convenience Vintage Aesthetic Creates nostalgia Sentimental value for older generations Makes visiting a novelty experience
- 6. 7 GROWTH STRATEGY Boulder Candy Co. will begin with several product lines in categories including basic chocolates, premium chocolates, lollipops, hard candies, taffies, and gummies. Each product line contains a variety of flavors including seasonal products for holidays such as Valentines Day, Halloween, and Christmas. As our company grows in size, we want to be continuously adding new flavors, product lines, and other limited edition treats. In the future, Boulder Candy Co. will also start selling custom gift baskets that include a variety of candies for any special occasion. In January 2017, Boulder Candy Co. also hopes to enter local grocery stores including Alfalfas and local Whole Foods markets. As the largest natural food retailer in the nation, we hope that our success in local Whole Foods markets will encourage an expansion of our products into Whole Foods markets in other Colorado cities, as well as neighboring states over the next few years. Our projected sales forecasts assume that this is feasible at May of Year 2. In years to come, we hope to open branches in other Colorado cities with similar markets such as Denver, Vail, and Fort Collins. VALUE PROPOSITION Conventional candies and chocolates are made from a number of unhealthy ingredients that are known to spike blood sugar levels, cause negative effects on health and weight, and result in dental issues. Specifically, high fructose corn syrup has been linked to Type II Diabetes, and is present in almost all conventional candy products.1 Boulder Candy Co. products have eliminated all genetically modified or processed ingredients and replaced them with wholesome sweeteners such as unrefined cane sugar or honey, real fruit flavorings, and organic dyes derived from fruits and vegetables. We create treats that our customers can enjoy without the worry of adding harmful chemicals and toxins to their or their loved ones bodies. Our natural, healthier option is also the more environmentally friendly option as we operate under a model of sustainability, including all compostable, recyclable, or reusable packaging. The organic and rustic essence of our candy is echoed in our stores old-fashioned and inviting environment that incites nostalgic thoughts of simplicity. Boulder Candy Co. introduces a new, fun establishment to the Boulder community that embodies the values of its community. PROPRIETARY RIGHTS We will need a trademark on both word marks and logos. The types of trademarks Boulder Candy Co. will be pursuing are outlined as the following: Standard Character Mark: