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I. Executive Summary

One page description of the project

Mission of Proposed Business: Handel’s Ice Cream & Yogurt is resolute on providing quality,

homemade ice cream to happy customers with low-cost efficiency.

The Industry: The ice cream industry is a vast market. With a 90% approval rate from the

U.S. population, the product is one of the most popular in the nation.

The Franchise: Founded nearly 70 years ago in Youngstown, Ohio, Handel’s Ice Cream and

Yogurt has developed one of the freshest frozen dairy products on the market. Open year

round, each location makes new batches of ice cream daily.

Location: Our business will be located in Columbus, Ohio. Columbus

has the 4th highest ice-consumption in the nation. It is also home to

The Ohio State University, which provides the city with revenue and

commerce.

Target Market: Because we will be located in Columbus, our target

market consists of those affiliated with The Ohio State University. 101,096 students and faculty

members fit into this category, giving our business a large variety of prospects.

Promotion: Due to the aforementioned target market, our promotional plan is largely

technology based. Many of our marketing efforts will be spent through social media, which a

large proportion of our potential customers are active with. We will also appeal to our target

market through “Ohio State Discounts,” including 20% off purchase with proof of admission to

all basketball and football events.

Proposed Financing: With the help of accounting statements of an actual Handel’s

franchise, we were able to calculate the financial outlook of our business:

Financial Request: In order to open our franchise we must attain sufficient funding. We are requesting a loan of $220,000 with an interest rate of 3.25%. Due to personal financing, we are able to put 20% down. Monthly payments of $1580 will be made over the next 15 years to make up the debt.

First Year Projection:

Gross Profit: $240,066

Expenses: $160,785

Net Income: $41,564

3-Year Growth:

2015-16: 11% Growth

Marginal IncomeN: $4572

2016-17: 15% Growth

Marginal IncomeN: $6920

Start-up Costs:

Franchise Fee: $50,000

Inventory: $15,000

Equipment: $115,000

Working Capital: $40,000

Total: $220,000

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II. Introduction

Type of business proposed, a brief description of the major product/service involved, sources of information (interviews and research sources), a brief description of advisors and their involvement

The ice cream industry is one of tremendous popularity. This frozen good, made from

sweetened and fattened milk, is one that is widely enjoyed by people of all ages; from toddlers to the

elderly. Ice cream is enjoyed by 90% of the nation’s population. A majority of products cannot begin

to claim this success. There are thousands of opportunities to take advantage of this rewarding

industry, and Handel’s Homemade Ice Cream & Yogurt has done just that.

Handel’s Homemade Ice Cream and Yogurt has been serving happy customers since its 1945

origin in Youngstown, Ohio. The franchise has had major success, and has expanded from a small gas

station to hundreds of shops from coast to coast. It was listed first of the world’s best ice creams in

National Geographic’s book The 10 Best of Everything. Handel’s has developed a reputation for

offering over 100 flavors at every location, made fresh with handpicked toppings and ingredients. The

franchise gives us have competitive edge over smaller retail ice cream shops, due to the predictability

and reputation our franchise provides.

A primary reason we chose to work with the Handel’s franchise is because of Bethany Cady’s

experience with the Powell, Ohio location, where she has been working for two years. This experience

has given us access to specific information with the equipment and procedures through the location’s

owner, Kyle Snyder. He has been a key figure in our business venture, and has guided us in many

aspects during the process by sharing his own experience with the franchise and offering us his own

exclusive financial statements to help us make our projections. We also sought the help of a

professional financial advisor, Aza Bittinger, a small-business expert at the Delaware County Bank. He

reviewed our projections, and explained how to estimate our loan requirements. Another significant

figure that played a pivotal role was our DECA instructor, Mike Rees. He has consistently given us

advice on how to complete portions of our written project and presentation. These advisors and their

involvement in the business have contributed vastly to major parts of our project.

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III. ANALYSIS OF THE BUSINESS SITUATION

A. Self-analysis

Personal business experience and training/education in the proposed field, personal business strengths and weaknesses, demonstrated willingness to take risks, a brief plan for personal development in the proposed field

Bethany Cady: Co-Owner

It is important for every business to have strong management in order to maximize profit.

Personally, I feel I am sufficiently qualified to perform the duties of an entrepreneur in the Handel’s

corporation. Within my 2 years of employment at the Handel’s of Powell, I have been awarded

employee of the month five times and my supervisors have promoted me to a shift manager. They have

entrusted me with documenting sales, designing new products and decorating our Handel’s Homemade

Ice Cream Cakes and Pies to help customers “Make Every Occasion Special.” Not only do I have

experience at Handel’s specifically, but I have taken classes at my high school valuable to the field.

These include speech, marketing, AP Economics, AP Statistics, and AP Calculus AB.

My personal business strengths include leadership qualities developed through participation in

marching band and National Honors Society. I work well in the small group setting Handel’s provides.

Finally with my various extra-curricular activities and part-time job, I have maintained a 4.1 GPA in my

schoolwork. One weakness I do have is a tendency to micromanage. However, due to Handel’s small

setting this will prove to be an asset as I will be in a managerial position.

Without risks, businesses would never be successful. I understand this because of the risks I

have taken in the past. With my musical experience, I have auditioned for various roles in my

ensembles, including a section leader position in marching band and admittance into Varsity

Chorale. I know that risks can pay off. However I also know that they can have a negative outcome, as

I have been refused numerous positions or solos. Nevertheless these risks have prepared me for the

unpredictable environment entrepreneurs must face.

As I am beginner in this field, I must prepare myself for the challenges that may arise. In order

to do so, I plan on continuing my employment at Handel’s of Powell. Also I will shadow the owner in

his duties. This will teach me the proper methods of stocking, training employees and paying the costs

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of a business. Finally, I am going to major in economics and business management at The Ohio State

University in Columbus, Ohio to complete my education.

Brinda Bhatt: Co-Owner

Succeeding in the field of marketing takes not only a thorough understanding, but also the

ability to communicate and valuable experience. Throughout my high school career, I have partaken in

several business and economics classes, and am taking a few this year as well. These include AP

Economics, Marketing, Introduction to Business, Business Technology, Professional

Communications, and Speech.

I also have many assets that strengthen my background in this field. Since the age of six, I have

been involved in public speaking competitions through religious affiliations, and this experience has

heightened my ability to speak with confidence. I have also started volunteering in various places since

an early age, and have obtained leadership positions at these organizations. I am the Vice President of

the Red Cross Club at Olentangy Liberty High School, a Lead Volunteer at the Main Library in

Downtown, Columbus, and a senior Volunteer at the Sunrise Senior Living. I am also willing to take

responsible risks, which I have demonstrated by applying for and working in these leadership positions,

such as the Delaware County Bank Student Board of Directors. This has also further developed my

speaking skills, as I have to deal with diverse groups of people. This skill is valuable to Handel’s

because our target market is so broad.

The process of starting a business is not foreign to me, because many members of my family

have engaged in entrepreneurship. The opportunity to greet guests, help with accounting, and help

inspect rooms at my parent’s motels furthers my ability to communicate with different people, and

gives me the experience of working in a professional environment. Areas of professional development

needing improvement would be organizational skills; however this can be adjusted quickly.

As we get further into the process of starting our business, we will encounter many important

decisions, and I will use my experience to achieve to the best of my ability, and always be ready to

learn more to further my knowledge.

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B. Trading area analysis

1. General data: geographic, demographic, economic

Geographic:

Columbus, Ohio is the fifteenth largest

city in the United States. Serving as the Ohio’s capital, there is never a

shortage of activities for its citizens to partake in within the 223.1

square miles it covers. There are several major attractions, including

the Columbus Zoo and Aquarium, the Columbus Crew Stadium, Nationwide

Arena, Schottenstein Center, and the Ohio Theater. The esteemed Ohio State University also

provides the city with enormous capital.

The area around campus in central Columbus is known as the

historical University District. Though quite small at 2.83 square miles, an

estimated 100,000 people enter the district each day. Being only 2 miles

north of Downtown, Columbus, it is a prime location for small businesses. In

fact, more than 650 businesses, human service agencies, churches, and

schools are located here. Many prestigious neighborhoods, such as Short

North, Italian Village, Victorian Village, Harrison West, Glen Echo, Indianola

Terrace, Iuka Ravine, and our proposed location, Old North, make up this

celebrated district. These neighborhoods provide Columbus, a city of

809,789, the small town feel that allow entrepreneurs to succeed.

Old North, Columbus refers to the area north of

Lane Avenue to Slate Run in Glen Echo Ravine, extending

east to Silver Drive and west to Olentangy River Road,

including the Union Cemetery in the University District. Old

North has proven to be a successful location for small

businesses, and is very diverse, given that it is home to a

wide variety of students, to families, artists, musicians, and professionals. There are also several parks

Map of University District Subsections

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in the University District which attract much attention, including Indianola Park and Weinland

Park. The preservation of these long-standing communities is guaranteed through NECKO, the Neil-

Eighth-Cannon-King Organization, which aims to preserve the historical area. This organization

guarantees that the area around our business will always be sustained.

Upper Arlington, a city located just north of

Columbus, is also a major residential area occupying a

9.84 square miles with suburban activity. An estimated

34,203 people live here, with a median household income

of $96,810. There are a total of 4,638 firms in Upper

Arlington. However there are not any Handel’s.

Clintonville, a mere 9 minutes from Old North, will

provide many potential customers to the Handel’s of Columbus. It

has a total population of 46,610 residents and 22,360 households

with an average of 2.03 people per home. The average household

income in Clintonville is $60,230 and 82.66% of the population has

a white-collar job, whereas 17.34% of the population is blue-

collar. Though still developing, the area has proved very promising for permanent businesses.

Demographic:

Due to The Ohio State University’s impact on Columbus’ social and economic structure, we have been

able to identify the following demographics through the Esri tapestry segmentation:

Dorms to Diplomas

Those under this category are college students. Their

carefree lifestyle and value of their studies is evident through their

spending patterns. The funds they do not allocate towards school

are spent on food, movies, dancing and concerts. A majority of

their activities are technology-centered, including school work and

social media.

Upper Arlington:

9.84 square miles

Population: 34,203

Median Income: $96,810

Clintonville:

5.423 square miles

Population: 31,018

Median Income: $50,967

Dorms to Diplomas Statistics:

Median Age: 21.9 Years

75% are employed part-time

43% live in dormitories

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City Lights

Individuals who are in this demographic are spenders. They

live in diverse urban neighborhoods with fewer children than the

U.S. population and a greater ethnic diversity. They take

advantage of city opportunities and spend their free time shopping

and delving into urban culture.

Economic:

Columbus is an example of economic prosperity. Nearly

57,000 firms currently call it home. While the national

unemployment rate remains at 6.6%, the city has lowered its own at

5.5%. This shows the area’s economic resilience. Also, as seen to the

right, Columbus’ Producer Price Index has also decreased since the previous recession. This provides a

great opportunity to enter the market at a period of low costs. While there tends to be a correlation

between urban area and poverty, Columbus has an annual per capita income of $24,075 that is

slightly behind the state’s statistic of $25,875. This shows that, on average, our potential customers

are in need of the inexpensive quality alternative to what our competitors provide.

2. Competitive data: present competitors (listed and briefly described), competitive advantages and disadvantages of the proposed business

Dairy Queen:

Opened in 1940, Dairy Queen has become an

international franchise known for its fast food and soft

serve ice cream. The Dairy Queen “Blizzard” and ice

cream cakes are big sellers. The company is also eager

to note its grant program and contribution to the

Children’s Miracle Network Hospitals.

City Lights Statistics;

Median Age: 38.5 Years

Median Household Income:

$60,707

12% Homeownership Rate

Dairy Queen

“Fan Food Not Fast Food®”

Advantage:

o International brand

o Serves hot grill food

and ice cream

Disadvantage:

o Low Quality

Distance from Potential

Location: .5, .6, 1.6 mi

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TCBY:

TCBY or “The Country’s Best Yogurt” has been a

growing franchise since 1981. Promoting health with its

self-serve frozen yogurt buffet, it promotes health and

wellness. With a partnership with Mrs. Fields® brands,

it is grown to open 360 stores nationwide.

Cold Stone Creamery:

Cold Stone Creamery has been providing “the ultimate

ice cream experience” for over 25 years. With servers

that sing and ice cream and ice cream made at each

location, it is not surprising that it has grown to an

international franchise.

Groovy Spoon:

Since its opening in 2009 in California, Groovy Spoon

has been providing “frozen yogurt and more” to its

customers. There are three Groovy Spoons, the

California original and three new franchises in Ohio.

Groovy Spoon

“Frozen Yogurt and More”

Advantage:

o Personalized

Product

Disadvantage:

o Not ice cream

Distance from Potential

Location: 1.5

Cold Stone Creamery

“Ultimate Ice Cream

Experience”

Advantage:

o Quality Product

Disadvantage:

o High prices

Distance from Potential

Location: 1.5

TCBY

“The Country’s Best Yogurt”

Advantage:

o Personalized

Product

Disadvantage:

o Not ice cream

Distance from Potential

Location: .6 mi

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Jeni’s:

Jeni’s first debuted in 2002 in Columbus’ own North

Market. Since then, there have been a total of sixteen

locations in Ohio, Tennessee, Illinois and Georgia. Its

“splendid ice creams” are known for their unique

flavors and are made from natural ingredients in each

Jeni’s location.

Graeter’s:

Opened in 1870, Graeter’s has been providing

“irresistible ice cream.” With chocolate chunks and

other quality ingredients, it provides a tasty experience

at over 30 locations in the Midwest.

Cuzzin’s Yogurt:

Cuzzin’s yogurt provides a healthy alternative to ice cream.

The family run company is new to the market with four

locations centered in central Ohio.

Jeni’s

“Splendid Ice Creams”

Advantage:

o Innovative flavors

o Quality product

Disadvantage:

o High prices

Distance from Potential

Location: 2 mi

Cuzzins Yogurt

“’Cuz it’s good”

Advantage:

o Personalized

Product

Disadvantage:

o Not ice cream

Distance from Potential

Location: 2 mi

Graeter’s Ice Cream

“Irresistible Ice Cream since

1870”

Advantage:

o Lower prices

Disadvantage:

o Not made in-store

Distance from Potential

Location: 2 mi

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C. Market segment analysis

Target market (age, income level, population estimate, other specific demographic and economic information), customer buying behavior related to proposed business

Because our potential locations are in a

major college area, our chosen target

market includes primarily those affiliated with Ohio State University. Boasting a total of 43,630 faculty

members and 56,867 students on campus alone, they are the

prime target for our business. The median age of college town

residents is 24.4 years. A mere 8.4%of the households have

children. With such a high number of students, Ohio State is

quite a large university.

The average nine month salary of a full time faculty

member at Ohio State is $105,462, and the average income of Old North is $42,664. Many college

students face spending limits, therefore Handel’s aggressive pricing makes it a tough competitor

compared to the prices of other competitors located in our proposed area.

The U.S. ice cream industry generated a

total of $10 billion dollars in 2012, 67.7% of

which were take-home ice cream sales. The

rest of the sales were earned by local and

national ice cream shops. Columbus, Ohio is

ranked 4th in the top ice cream consuming

cities. Production kicks up during March and

April to satisfy demand. June is the highest production month of the year, and production remains

strong throughout August. About 1.52 billion gallons of ice cream and frozen desserts were produced in

2011. A study by California State University in 2007 has proven that since March 18, 1951, ice cream

consumption has increased year after year. However, they also concluded that when weather is searing

hot, ice cream consumption increases, and on chilly days ice cream consumption decreases.

OSU Columbus Campus Population

Undergraduates: 44,201

Graduates: 10,013

Professional Students: 3,252

Faculty: 43,630

Total: 101,096

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Proposed Location

A recent survey of International Ice Cream Association member companies has proven that

vanilla remains the most popular flavor among consumers, followed by Mint Chocolate Chip and Cookies

and Cream, all of which are included on the Handel’s menu. According to the “Ice Cream and Frozen

Novelties” report, 94% of people say they base their decision on flavor, 83% look at the price, while

73% look for a sale or promotion. Here we can conclude that with the Handel’s flavor variety and low-

costs in cooperation with our location’s specific marketing plan, our business has great potential in the

given industry.

D. Analysis of potential location(s)

Availability, cost (rent or buy), traffic patterns, proximity to competition, etc.

The Handel’s of Columbus will be located at 2593 N High Street near the northern edge of

Ohio’s State University’s official campus. This location is less than twenty minutes walking distance

from central campus, allowing easy access to the established target market. North High Street is one of

the most frequented areas in Columbus, as it runs straight through the heart of campus and downtown.

Lined with a bounty businesses and restaurants, it hosts 30,000 vehicles and 8,000 pedestrians daily.

This space we are looking at sits in right across the street from Ledo’s Tavern and Mikey’s Late Night

Slice, both very popular with the OSU population.

The location is leased through Pella Company, a Columbus

real estate office who’s primary market is Ohio State students

seeking on-campus housing. The company is leasing the 1500 sq.

ft. space for $1.17/sq. ft. This results in a monthly payment of

$1,755.00, which sits in our price range. While remodeling will be

necessary to fit the building regulation set by the Handel’s

Corporation, the location is prime for our business.

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Layout: The layout of the store will be as followed:

1. Customer Entrance: Customers enter and place their order. 2. Cash Register: Customers receive their order and pay. 3. Customer Seating 4. Restroom 5. Office: Space used for managerial duties such as paperwork and conference calls; where the safe is located. 6. Sinks 7. Employee Entrance: Employees clock-in and store personal items. The schedule and any important notices from management are located here. 8. Shelving: Used to store inventory and equipment. 9. Ice Cream Machines 10. Walk-in cooler: Used to store refrigerated inventory (Toppings, ice cream bases, etc.)

11. Preparation Area: Counter holds blender, sundae topping bar and cake supplies.

12. Coolers: Used to store ice cream. 13. Preparation Area: Counter holds Hurricane machines, candy toppings and microwave. 14. Deep Freezer: Used to store ice cream cakes and popsicles; also used to make Handel Pops.

This layout maximizes efficiency and utilizes all available space of the store. While we are somewhat

limited on space, which is expected of an urban location, we still provide customers with an

atmosphere that is both appealing and efficient.

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IV. PLANNED OPERATION OF THE PROPOSED BUSINESS/PRODUCT/SERVICE

A. Proposed organization

Type of ownership and rationale; start-up steps to form the business; planned personnel (or functional) needs; proposed staffing to handle managerial, financial, marketing, legal production (if applicable) functions; proposed organization chart, brief job descriptions, if necessary

The type of business ownership we plan to use for our business, Handel’s, is a LImited Liability

Company (LLC). This is a hybrid between a corporation and a partnership. An LLC is advantageous in

our business because it provides individual partners with protection against negligence of other

partners within the organization, including debts, liabilities and wrongful doings. The partnership itself

is not responsible for paying taxes in a LLC, which shields us from double taxation. However,

disadvantage of the LLC is that individual partners in the business are not obligated to consult with

other business partners in certain business agreements.

These steps are fairly simple, as the franchisee application can be found online with all

relevant information. The application itself is similar to a personal financial statement, showing the

corporate’s strain to maintain financial stability within the company. All legal paperwork and franchise

agreements will be assisted by Robert Cecil. The attorney is a partner in Cecil and Geiser LLP of

Columbus.

To become a Handel’s franchisee, one must:

Submit a franchise application Meet with representative of the Franchise Department Visit headquarters/ discuss franchise agreements Obtain an Uniform Franchise Offering Circular (UFOC) from Handel’s Corporate Apply for loans and grants Pay franchise fees

Undergo training by the Handel’s corporation for operations and marketing

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Because of our LLC organization, the tasks at hand will accord to the following organization:

• Corporate: Marketing, Training, Inspections, and Major Non-personal Promotion

• Owners: Scheduling, Book-keeping, Inventory, Production Planning, Advertising, and Payroll

• Shift Manager: Making ice cream , Profit Reports, and Crew Member Duties

• Crew Members: Serving customers, Janitorial duties, and Handling cash register

B. Proposed product/service

Details of product(s)/service(s) to be offered; include potential suppliers, manufacturing plans, inventory policies, if applicable. If the business is a service business, appropriate information about plans to provide the service, including necessary supplies, etc.

Handel’s Homemade Ice Cream and Yogurt has been serving happy customers since its 1945

origin in Youngstown, Ohio. It was listed as the best ice cream in the world in National Geographic’s

book The 10 Best of Everything. Open year round, each location utilizes high quality ingredients and

machinery daily to produce the smooth and creamy texture that makes the Handel’s brand unique.

Handel’s has over 100 individual ice cream flavor recipes. While a portion of these flavors are

provided seasonally, those available all year range from classic Vanilla to delicious Buckeye and

Handel’s own Chocolate Pecan. They are then ready to be served in cones or dishes, as the customer

prefers.

Corporate

Owners

(Bethany & Brinda)

Shift Managers

Crew Members

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In addition to the large variety of flavors, Handel’s offers other many other products including,

but not limited to:

Specialty Sundaes

Hand Packed Quarts and Pints

Handel Pops

Handel’s Hurricanes Homemade Ice Cream Cakes and Pies

Milkshakes and fresh smoothies

Manufacturing the product is a simple process. The ice cream is made in the kitchen of each

location. Machines are used to make the ice cream itself and employees generously add toppings such

as pecans, chocolate chunks and real fruit. It is stored in 5 gallon portions and is ready to serve after

10 minutes in the freezer.

Here’s the Scoop!

Every scoop is measured by the ounce. To make a single scoop

of Handel’s ice cream, crew members take two two-ounce

scoops and one one-ounce scoop on the top. For each

additional scoop ordered, the crew member adds another

two-ounce scoop to the bottom. This form of scooping is

called “Snowman Style.”

Handel’s Banana Split

Handel’s Fresh Fruit Smoothie

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Handel’s Inventory Record

While each Handel’s location is unique, all are contracted with

the same suppliers, as it is a franchise. Corporate office regulates all

purchases of productive equipment such as freezers, sinks and ice cream

machines. Every location is required to have identical machinery in order

for the Handel’s brand to remain consistent. Each is equipped with

Carpigiani ice cream machines, a

Master-Bilt deep-freezer, Nelson

coolers and an Electro-Freeze Hurricane Machine, all distributed

through Zabel Restaurant Equipment and Supplies.

However, a majority of the inventory will be purchased through Instant Whip Foods in Akron,

Ohio. This one distributor provides products from large brands like Hershey, Nestle and Forbes. All

items with a shelf life of over two weeks are purchased on one order form to Instant Whip every weekly

period. Anything extremely perishable, peaches and bananas for example, can be bought by store

management at local grocery stores and farmers in order to keep the product as fresh as possible.

To be able to place an accurate order, organized inventory must be taken. Our method of

inventory is very simple. Management must record the quantity of each product and compare it to the

quantity necessary to maintain efficiency. All records will be kept as dictated by the following chart:

By logging the inventory on the same sheet, it will be easier to track use of each product. After

time, predicting the necessities for each order will be simple. This will limit costs of unneeded

inventory through overstocking or product waste.

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C. Proposed marketing strategies

Proposed pricing policy; costs, markups, markdowns, relation to competition, etc.; proposed promotional program; personal promotional activities; nonpersonal promotional activities; media availability, costs, one-year promotional plan outline

Pricing:

The Handel’s pricing policy is simple: The customer’s total retail price is based on the size and

product he or she selects. The most popular products are listed above. They can be chosen with any of

Handel’s abundant flavors. The cost of goods sold is approximately $0.15 per ounce of ice cream, while

the retail price is $0.50 per ounce. This gives us a gross profit margin of $0.35 or 70%. Despite this,

Handel’s still maintains relatively lower prices compared to competing businesses in the area such as

Cold Stone Creamery and Jeni’s. This is a significant aspect of our value proposition especially since

our primary target market is OSU college students, who are generally on limited budgets. We offer high

quality products at competitive prices, giving us a competitive advantage.

CONES/DISHES

Single: $2.50 Double: $3.60

WAFFLE CONES

Single: $3.75

HANDEL POPS

$2.50

HANDEL’S

HURRICANE

Small: 4.25

Medium: 4.80

Large: 5.50

Milkshakes & Fresh Smoothies

$4.25

SPECIALITY SUNDAES

$4.95

SUNDAES

$4.25

CAKES & PIES

Cake & Ice Cream

with Fudge 28.00

Ice Cream only 20.00

Ice Cream Pie 17.00

Bulk Ice Cream

PINTS: $4.25 QUARTS: $6.25

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Personal Promotion:

In order to create a regular flow of customers, we must market through operation. The Handel’s

brand alone is a model of great quality, which will attract customers alone. However, to secure

customer satisfaction, we will address the following promotional activities:

The most vital factor in satisfying our consumers is choosing a reliable staff, especially since

they are directly selling to the customers. Handel’s will always have one manager accompanied

by two staff members to ensure that customer needs are met. We will personally interview and

train our staff to confirm they are efficient in their duties. Handel’s employees will be trained

to describe all flavors, products and pricing. This product knowledge will allow them to sell

products with confidence and enthusiasm.

Another aspect to increasing customer satisfaction is an uplifting atmosphere. Customers will

have the freedom to enjoy their ice cream both inside the shop (which will be beneficial in

winter months) and in our outside seating arrangement. We will also provide them with free

Wi-Fi, which is also a personal promotion activity we will partake in to attract customers.

Furthermore, our ambiance will be inviting to customers. Our red and blue complaisant

furniture will offer an orderly look that reflects our image.

Promoting a business largely depends on the initiative of the owners, which we take very

seriously. We will be walking around the local area delivering flyers and coupons to local

restaurants, apartments, students, apartments, etc. By personally delivering advertisements,

we will gain both a sense of the customer attitude and geographical familiarity. We will also

provide surveys at the register for our customers to fill our, requesting feedback on the flavors

and toppings, and they can also offer input on new flavors.

Handel’s success will mainly be determined by the community’s knowledge of our franchise.

To promote our business we will be taking advantage of social media, newspaper

advertisements, and general promotional activities.

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Non-Personal Promotion:

While creating an appropriate store atmosphere is necessary to maintain business, we must

also attract customers to our store. Otherwise, all personal promotion efforts are in vain. This requires

us to reach out to our target market in the following ways:

Social Media

o Facebook/Twitter: The “Handel’s OSU” page will be updated with information about

our menu and store hours, pictures, and sales.

o Handel’s app: Customers will be able to access our menu, find locations, and enter

contests to win free ice cream

o Handel’s website: Customers will be able to access our full menu, locations, general

information about the Handel’s franchise, and press releases.

Newspaper advertisements

o We will advertise in OSU’s campus newspaper, The Lantern, and local newspapers like

The Columbus Dispatch.

General Promotional Activities

o Buckeye Involvement: This is a promotional activity we have chosen to partake in to

increase our involvement in the community. During OSU’s football and basketball

season, all our products will be 20% off with proof of admission to the game. This will

help attract the thousands of fans that will be in town to support OSU.

o BuckID: Not only will those who attend the games receive benefits, but any student

with a meal plan at Ohio State will be able to purchase our product using their Buck ID.

Allowing this will increase accessibility to our target market.

o Charity Events: This is a key aspect in upholding our reputation within the community.

Through positive involvement and giving back to the community, our business will gain

a sense of prominence within the society. We have such confidence in our business,

that we know consumers who have never tried Handel’s won’t be able to resist our

product.

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One Year Promotional Plan:

•Goal is to raise awareness of our business in thecommunity. We will advertise on large signs outside of thestore, which will be effective because of the largepedestrian traffic. We will have a Buy One, Get One 50% offsale throughout the month to attract customers. We willalso be engaging in our personal-promotion activities, suchas handing out flyers containing our social media andpromotional information.

May

(Grand Opening)

•This is a primary season for the ice cream business, and tofoster growth, we will be continuing the Buy One, Get One50% off sale during the weekends. We will also start TwoDollar Tuesdays for regular cones, which we will carryforward throughout the year.

June-August

•For our location in particular, this is a major opportunityfor us to increase our involvement in the community. Ongame-days, all our products will be half off. We willpersonally be selling Handel's Pops during intenselyanticipated games, which will attract customers to ourstore itself.

September-December

(Football Season)

• Since the winter months are a generally slower for the icecream industry, we will rely heavily on charity events andsales to foster growth during this period. This will upholdour reputation within the community. We will also beoffering discounts during particularly exciting OSU MensBasketball games.

December-February

(Winter Season)

•We will experience a growth in our business due to thewarmer weather, largely due to increasing pedestriantraffic. To attract customers, we will be personally handingout flyers with discounts and sale information.

March-April

•During the week of our One-Year Anniversary, we will beoffering 50% off all our products. To promote this, we willbe placing large signs outside our shop, handing out flyers,advertising through social media and newspapers, andduring charity events. We will also be continuing this saleduring the weekends during the rest of the month.

May

One Year Anniversary

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V. PLANNED FINANCING

A. Projected income and expenses

Starting a business is an investment. Entrepreneurs risk financial security for the opportunity to

make a profit. To ensure that our investment is wise, we have projected both expense and revenue of

our first year of business. This projection is provided on the following page.

This data was calculated using early financial statements of the Handel’s of Powell, which

ranks in the 65th percentile of all Handel’s franchises. To adjust sales for our first year and to

compensate for the different markets, we diminished the given sales and variable costs by 25%. We

also allowed for a $2,000 monthly allowance for all unanticipated expenses. The remainder of this

allowance will be placed into the business’ savings or allocated towards the repayment of loans. Taking

these variables into account allowed for a reasonable estimation of activity, while maintaining an

accurate display of monthly sales trends.

A closer look at the projected net incomes shows that they are not consistent throughout the

year and that some even go in the red. This is predictable because of the product itself. Ice cream is a

seasonal industry yet our franchise contract requires us to stay open all year round. While revenue

dwindles, there are many unavoidable fixed costs that we must endure.

However, we have labeled another large cost that can be limited: wages. In our projection,

we took into account the seasonal demand for labor. However despite already being reduced

accordingly, payroll accounts for 32% of our total expenses. Because the demand of ice cream is low

in the colder months, it is unnecessary to employ the same number of crew members through this

time. Therefore by limiting individuals per shift, decreasing hours and calling off workers, we will be

able to minimize labor costs and guarantee maximum profits.

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23

15-16 16-17

% Growth 11% 15%

Net Income 46,139.00 53,059.00

Marginal Income 4,572.00 6,920.00

Projected Growth

We have also predicted the next three years of income, excluding external expenses:

From this chart we see definite improvement over the following years of business. From May of

2015 to May of 2016, we project 11% growth. Over the next period, we project 15% growth. These

sales show great potential in following years of business. This projection allows us to estimate the

growth of net income over the next three years as well.

Here, we not only see that we experience growth, as determined by the other chart, but we

also see that the percentage of growth is increasing. While this is only a change of three years, it

projects that our sales will increase at an increasing rate in the future. This is incredibly beneficial

information, as it foreshadows prosperity.

2015 2016 2017 2018

Jan 1,984.33$ 2,202.61$ 2,533.00$

Feb 5,123.28$ 5,686.84$ 6,539.87$

March 13,802.96$ 15,321.29$ 17,619.48$

April 14,072.63$ 15,620.62$ 17,963.71$

May 20,775.31$ 23,060.59$ 26,519.68$

June 25,119.81$ 27,882.99$ 32,065.44$

July 25,125.89$ 27,889.74$ 32,073.20$

Agu 19,557.12$ 21,708.40$ 24,964.66$

Sept 14,433.84$ 16,021.56$ 18,424.80$

Oct 10,296.11$ 11,428.68$ 13,142.98$

Nov 6,162.24$ 6,840.09$ 7,866.10$

Dec 4,331.53$ 4,808.00$ 5,529.20$

3-Year Gross Profit Projection

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The outcome of the Handel’s of Columbus will dictate further

business action. Our projection predicts great financial success for the

business. If that is the case, we plan on expanding our operation and

opening new franchises with similar target markets. Because we are

appealing mainly to college students, we will look to expand near Ohio

Wesleyan University in Delaware, Ohio and Otterbein University in Westerville, Ohio.

After our business endeavors are fulfilled, we will continue to run the locations until we

have reach our full potential. At that point, we plan to sell our locations individually or

as a franchise bundle.

B. Proposed plan to meet capital needs

A major step in starting our business is financing. Every entrepreneurship venture requires major

investment. This includes both liquid and collateral. Our personal investments are labeled as followed:

The start-up costs of our franchise value up to $220,000.

This is due primarily to equipment and royalties to corporate, as we

will be using their brand. The hefty sum is why the company is so

careful in their franchise policy. It is not exactly considered petty

cash.

Bethany Cady

Liquid Savings: $8,000

Car Collateral: $4,000

Family Aid: $7,500

Total: $19,500

Brinda Bhatt

Liquid Savings: $12,000

Investments: $6,000

Recent Inheritance: $6,500

Total: $24,500

Start-up Costs:

Franchise Fee: $50,000

Inventory: $15,000

Equipment: $115,000

Working Capital: $40,000

Total: $220,000

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To help start-up our business, we considered applying to the Small Business Administration

(SBA) for minority and women-specific loans. However, after consulting with our financial advisor, Aza

Bittinger, we have decided against this due to the financial risks involved in doing so. These risks

include the cost personal property and assets through collateral loss. Consequently, we have decided

to apply for a traditional business loan.

Because our costs value $220,000 dollars, we need a loan for just as much. We are seeking a loan

compounded annually at an interest rate of 3.25% for 15 years. We request this as we are able to put

20% down now. Between our assets, we have a total of $44,000. Amortized over 15 years, the

payments should equate to $1580 each month. Our goal is to eliminate all debt within 7-10 years if

possible, so greater payments may be made throughout the period.

Looking back at our growth chart, we see that our projected profits are increasing at an increasing

rate. However, we cannot expect this rate to remain increasing, as fluctuations in the economy do

occur. To compensate for this, we have calculated a 5-year projection of net income that shows our

year to year sales growth leveling, while our net income continues to rise:

If we assume that the business cycle remains at its average of 5 years, this circumstance may

not occur. However, we are attempting to take any unforeseen economy-wide financial downturns into

account in advance. This will prepare us for when we are running the business itself.

Clearly shown by the previous chart, the Handel’s of Columbus will be making much

more than enough to pay back a monthly loan of $1580.

15-16 16-17 17-18 18-19 19-20

% Growth 11% 15% 19% 19% 17%

Net Income 46,139.00 53,059.00 63,140.00 75,136.00 87,909.00

Marginal Income 4,572.00 6,920.00 10,081.00 11,996.00 12,773.00

Projected Growth

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VI. CONCLUSION

Specific request for financing, summary of key points supporting the financial request

Handel’s Ice Cream & Yogurt has widely varied competitors. Our toughest competitors include

Jeni’s, Cold Stone Creamery, and Graeter’s. However, in the area in which we are situated, the best

profit opportunities will be rewarded to those with the lowest prices while still maintaining high quality

products.

We, along with the Handel’s franchise, are confident that we can achieve high profits,

generating an approximate gross profit of $160,785 in the first year alone. We are convinced this

number will grow as our reputation strengthens within the community. This is certain due to our

intense marketing strategies, in which we are both personally and non-personally promoting the

business whenever an opportunity proves to be rewarding. Our involvement during Ohio State football

seasons will especially build a powerful presence within this particular community. By promoting our

business during multiple well-known charity projects, we will further be able to secure ongoing

partnerships.

For Handel’s to achieve this status as a leading competitor within this unique society, we will

require secure funding. The loan will be used for start-up costs, such as inventory, equipment, and

infrastructure, and will total $220,000. We are requesting this from you at 3.25% interest

compounded annually. However, with our own personal investments, we are able to put 20% down at

the present. Monthly payments will be made at a value of $1580 for a 15-year term.

Providing that Handel’s is able to obtain this capital, we will be able to achieve success for

many years to come and continue to provide a quality, low-cost alternative to our target market.

27

VII. BIBLIOGRAPHY

WEBSITES:

http://www.esri.com/data/esri_data/tapestry

http://www.census.gov/

www.sci.csueastbay.edu/~esuess/.../Ice%20Cream%20Consumption.doc

http://www.city-data.com/

http://oldnorthcolumbus.com/?q=content/local-area-entertainment

https://www.zeemaps.com/map?group=735393&location=Columbus%2C%20OH&add=1#

http://www.dairyqueen.com/us-en/?localechange=1&gclid=CK6t0N34_bwCFcU-MgodIWAA8g&

http://www.jenis.com/

http://www.handelsicecream.com/

http://www.idfa.org/news--views/media-kits/ice-cream/ice-cream-sales-and-trends/

www.yellowpages.com

http://www.ibisworld.com/industry/default.aspx?indid=249

http://www.bls.gov/

DOCUMENTS:

Handel’s Ice Cream & Yogurt Franchise Application

Handel’s Ice Cream & Yogurt (Powell, Ohio) Financial Statements

INTERVIEWS:

Kyle Snyder: Owner of Handel’s Ice Cream & Yogurt in Powell, Ohio

Aza Bittinger: Small Business Associate at Delaware County Bank

Trish Davis: Finance Associate at Delaware County Bank