ENTREPRENUERSHIP WRITTEN EVENT

Peace. LoveCupcakes.

South Fo’rsyth High School DECASouth Forsyth High School

585 Peachtree Parkway• Gumming, GA 30041

Amanda SchreinerAnna PaschallAshley Hunt

Peace.Love.Cupcakes.1 0gmail.com

Pece.Love.CupcQr%%es.

April 29-May 3, 2011

TABLE OF CONTENTS

L EXECUTIVE SUMMARY

II. INTRODUCTiON

IH. ANALYSIS OF THE BUSINESS SITUATION

A. Self-Analysis 4-6

B. Trading Area Analysis 7-9

1. General Data 7-82. Competitive Data 8-10

C. Market Segment Analysis 10

D. Analysis of Potential Location(s) 11-12

IV. PLANNED OPERATION OF THE PROPOSED BUSINESS

A. Proposed Organization 13-14

B. Proposed ProductiServices 14-16

C. Proposed Marketing Strategies 16-18

V. PLANNED FINANCING

A. Projected Income and Expenses 19-23

1. Projected Income Statements by Month for the First Year 192. Projected Cash Flow for the First Year 203. Projected Cash Flow by Month for the First Year 214. Projected Balance Sheet, End of First Year 225. Projected Three-Year Plan 23

B. Proposed Plan to Meet Capital Needs 24

1. Repayment Plans 242. Plan to Repay Borrowed Funds or Provide Return onInvestment to Equity Funds 24

V. CONCLUSiON

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Vit. APPENDt.<.

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Introduction:Cupcake shops are the next big food trend. Specialty shops around the world are continuing

to grow and become more successful. Many new shops have been opening around the country,however, they all seem to blend together. These shops and their ware just don’t stand out. Theowners of Peace.Love.Cupcakes. an innovative and creative new cupcake venture, Anna Paschall,Amanda Schreiner, and Ashley Hunt, have come up with a new way to bring in customers andprofits. Peace.Love.Cupcakes. will be a different kind of cupcake shop: that not only providesoversized decadent cupcakes, but also one that serves its community.

We strive to give our customers a “P1. of mind.. for others. and LupEKeS. for you.”Products and Services:

Peace. Love.Cupcakes. will be a cupcake shop that donates a generous percentage of salesto charity. Our signature is a colored sugar sprinkle melted on top of all our cupcakes, to give thema caramelized texture over the moist cake. The melted sugar sensation on top of the cupcakekeeps it fresher and helps it stay moist longer. Each month we will designate a charity that we will ‘give donations to at the end of that month. We will collect this money by selling a line of charitycupcakes. One dollar of the net profits from those cupcakes will go toward the charity of the month.In addition, we will also sell another cupcake line in honor of our classmate and friend Brian Parkswho passed away from brain cancer in February 2011. Money from that line will be donated toChildren’s Health Care of Atlanta.Organization:

Peace.Love.Cupcakes. will operate as a Limited Liability Partnership between Ashley Hunt,Anna Paschall, and Amanda Schreiner. Although we will work as a team, we will each have rolesbased on our individual strengths. This will help our business run as smoothly as possible and allowfor a democratic process when resolving disputes. Ashley will be in charge administration, whichincludes finances, human resources, and pricing, Anna will be in charge of marketing, and Amandawill be in charge of buying and creativity. To support the business, along with the three of us, we willhave two full-time team members and two part-time team members responsible for daily operations.Market Segment Analysis:

The location of our store will be North Point Mall in Alpharetta, Georgia. This strategiclocation offers a high customer traffic count every day and a prominent upper-middle classdemographic, which is precisely our target market. The primary trade area population is 617,965with an average household income of $119, 872, which is 76% higher than the average UnitedStates household income. Over 42% of the households surrounding our location are within theupper-middle class bracket. Our upscale cupcake shop is located in an area where our targetmarket thrives.Location:

Peace Love Cupcakes will be located at North Point Mall in Alpharetta Georgia with about120,000 people surrounding the area during the work day. The North Point Mall area boasts someof the highest levels of income in the state of Georgia. Currently, there are no other directcompetitors within a 15-mile radius of the mall. Our unique, delicious, gourmet cupcakes will makeus stand out from our indirect competitors including local grocery stores. We plan to begin as acountertop service and eventually expand into a sit-down shop where our customers can relax.Request:

In order to start our business, we are requesting a oan of $75,000 from Wells Fargo Bank tobe paid back within the first five years of business. Alongwith the loan, the three partners will eachcontribute $10,000, and our parents have given us $5,000 each. We plan to have enough money insaving to operate the store for 2 years. By the end of the third year, our net income will be $1 11,170and steadily increasing from there.

-1

H. INTRODUCTION

“If cupcakes didn’t exist all the money in the world would have no meaning.” -Anonymous

According to our research, 99% of pebple enjoy a fresh baked cupcake,

while 86% of people are more inclined to shop at a store that donates to

charities. .Cupck.es. combines the two concepts. It is a for-profit

company that dedicates a portion of its profits.to charity based organizations.

Each month, we will feature a special cupcake that will honor a charity, such as

the American Heart Association. From that line of cupcake’s profit, one dollar will

be donated to that designated charity. This will set us apart from other bakeries

due to the emotional appeal of giving back to the community

We will also have one charity cupcake that will be in the store every day.

This cupcake will be in honor of our friend, Brian Parks. Brian was diagnosed

with a malignant brain tumor when he was 17 years old and over time, became

our close friend as well as a prominent member of our DECA chapter. Our

community has deemed Brian “Superman”, because of his courageous battle

with cancer. Brian lost his fight to cancer in February. His emblem will forever be

Superman. He wore the Superman logo on a daily basis and when people from

our school see the logo, they think of Brian. This is why the

cupcake in honor of him will be decorated with the colors of

Superman. A portion of these proceeds from the sale of these

cupcakes will be donated to Children’s Healthcare of Atlanta.

The location of our store will be North Point Mall in Alpharetta, Georgia.

This is the most strategic location because of the high customer traffic every day

and the prominent, upper-middle classrdemographic, which is precisely our target

2

—.. . - -. -

market. We want to make certain that our customers are always satisfied with

their cupcakes and we will build a close, personal relationship with them. Our

cupcakes will be made fresh each morhing. We will always serve delicious and

unique flavors and decorate our cupcakes extravagantly. The cupcakes will be

priced at $4.25 each. Based on our research and surveys, we derived this

number when we found that 65% of peop’e surveyed said they would pay $4.25

or more for a gourmet, oversized. cupcake. I!Our goals for opening ..Cucckes. are: t

• To open a successful business.• To obtain a market share greater than our competitors.• To make large donations to charities through the process of selling cupcakes.• To make a large enough profit to pay off pur loans within five years.• To build a close, personal relationship with our customers.• To expand into a larger store.

To help with the success of CuDc\es we will set up an

advisory board of the following experienced people:

• Kim Adkins, Owner of Lulu’s Blues, a • Angie Young, Leasing representative forcupcake shop in VA Highlands, Georgia North Point Mall

• Scott Hunt, Accountant • Wei Hu, Lawyer• Debra Moore, Head of SFHS Marketing • Dawn Martin, Head of SFHS Culinary

Department . Arts Department

These advisors will be assisting Us in many ways. Kim Adkins and Dawn

Martin are aware of the pricin’bf the equipment needed as well as what it takesF

to keep a shop running. Angie Young is the leasing agent for North Point Mall,

and we will keep in .touch with her to make sure we are doing everything as

stated in our contract with North Point Mall.’. Mrs. Debra Moore, our DECA

advisor, will be helping to guide our marketing path. Finally, our accountant, Scott

Hunt, and our lawyer, Wei Hu, will help us with any financial or legal

questions/problems we may encounter including HR policies, equipment

purchases, and lease negotiations

t

UI. ANALYSIS OF THE. BUSINESS SITUATION

A. Self-Analysis

“A lasting business is built on friendship. “ —Alfred A. Montapert

The three partners of Pea. Cupc3kes. enjoy a perfect blend of

entrepreneurial skills, drive, and personalities that will allow them to successfully

bring a new culinary concept to consumers.

Amanda Schreiner

Experience, customer service skills, and a strong work ethic are the

entrepreneurial characteristics leading Amanda to opening her own business.

She has experience in an office, retail, and culinary setting. Amanda is trained in

customer service and has experience through her position as a manger at her

school store, The Bird Cage, and her sales role at Giggles for Kids toy store.

Amanda’s experience in an office setting comes from years of working in the

office of the schools she has attended as well as working as an Office Assistant

at Kaiser Permanente Center for Research.;Arn’anda has enjoyed cooking for as

long as she can remember and has also taken a culinary arts course that is

offered at our school. Amanda has also taken cake decorating classes.

After high school, Amanda plans tà attend college and major in hospitality

marketing and management. This validates and furthers her interest in owning a

restaurant-type business. Her experience, drive, and determination will help

.Cupcke5. succeed.

4

Anna Paschall

Anna is qualified to own and run a successful business. She is currently

employed at Yogli Mogli, an upscale frozen yogurt shop in Cumming, Georgia.

Since math and accounting skill are important to have in business and operating

a successful store, Anna has proven to excel in the subjects with four

mathematics classes on the high school level and has managed to keep a GPA

of 3.8 overall. Her father, a business owner himself, has taught her a great deal

about accounting because of his college level experience. These experiences will

help Anna achieve ownership of a thriving business.

Anna’s solid knowledge of marketing and business finance is

augmented by her experience in food service. During her freshmen and

sophomore years in high school, Anna took Introduction to Culinary Arts and

Advanced Culinary Arts receiving high grades. In those classes, she was able to

participate in the caterings of luncheons, dinners, concerts, and large events at

outdoor shopping malls for many different companies. Additionally, Anna cooks

for all the major holidays in her househbld.

Anna is a very detail-Oriented person, which is required in the opening and

running of a business. Her creativity and eye for design and promotion, will assist

in attracting customers to our business and will be a crucial part of success for

our company. She also has a forte for planring events. Anna has planned

birthday parties, church gatherings, holiday parfes, and dinners. This qualifies

her for creation of events for P’.CuçKes. which will be a key part of

our business plan that will allow us to meet our loan repayments and future profit

goals. Anna is very qualified to open and run .Cupcaces, with her

5

partners. Anna has the skills required of a business owner because she is a

hard worker, a great organizer, an exceptional planner, and always strives for

successful achievement in all her activities.

Ashley Hunt

Ashley’s qualifying experiences include working with people, working in

the kitchen, and engaging in creative thinking. In the past, she has worked at a

concession stand, and she is now currently working at Yogli Mogli, a local yogurt

shop. In both jobs, Ashley has had face-to-face interaction with customers.

Ashley has had a passion to bake since she was young, making cookies

for her neighbors at Christmas and cakes for family members’ birthdays. She

also cooks dinner a few times a week. These experiences in the kitchen have

given Ashley knowledge that will greatly help our business. Also, she has always

been a very creative person with a passion for advertising and promotion—the

creative part of marketing.

Along with these experiences, Ashley has knowledge in business math

and finance. At the conclusion of this school year, she will have five math credits,

including a high-level AP math class. Additionally, her dad is an Accountant and

has taught her numerous practical aspects about business and finance.

In college, Ashley plans to major in Business Administration Management.

Her experience and future plans will greatly contribute to making our business

successful.

6

Average Household Income110751

95604

74455 -.

10937

Average Ilorsybold

Fulton Gwrrnctt DuRaib Cobb ForsythCourty County CouOty Coisty County

“The

B. Trading Area Analysis

I General Data

two most important requirements for major success are: first being in the right

place at the right time, and second doing something about it. “ Ray Kroc

The location of our business is crucial to the success of Cuck:es.

A North Point Mall location was chosen because of its high profit potential for our

business. This two-story, suburban mall is located in the city of Alpharetta,

Georgia, in Fulton County. The mall is located off Georgia 400, a prominent

highway in Metro-Atlanta. The primary trade area population is 617,965 with an

average household income of $119,872, which is 76% higher than the average

United States household income.

120000

100000

30000

60000

40000

20000

0

According to a 2008 estimate, the city of Alpharetta has a population of

49,903. However, during the workday, the bit swells to more than 120,000

residents, workers, and visitors, due to the more than 3,600 businesses that are

located within the city. Because of the large amount of people in this area,

customer traffic at this mall is high, wiiOh makes it an excellent location for

Cupcak5. When people shop, they get hungry, therefore our

business will prosper around shoppers. We expect the high number of

7

.

surrounding businesses will add to our market potential as we will offer unique

office party fare.

The counties within a 30-minute drive of this location include:

Forsyth County- One of the top 10 fastest growing counties in the United

States and 13th on Forbes’ list of the wealthiest counties in America.

Dekaib County- Georgia’s 3rd largest

county

.

.

q , -

Fulton County 1,033,754

I Gwinnett County 808 167Gwinnett County- Georgia s 2” largest DeKaib County 747 274

Cobb County 714,692

county; one of the top 10 fastest growing Forsyth County 174,520

counties in the United States.

Cobb County- Ranked in the top 150 wealthiest counties in the United

States.

2. Competitive Data

CurcKes. is a for-profit cupcake shop which donates a portion

of its profits to charities. Although there are other competing businesses in the

area that sell cupcakes, our business is unique because it is the only gourmet

cupcake shop in the area that allows customers to donate to charities while

enjoying a cupcake.

cupcaes

The closest cupcake shop to North Point Mall is Gigi’s Cupcakes. They

are considered a direct competitor of Cupcke. Gigi’s is a Cupcake

chain that is located in many states. The location in Atlanta is 20 miles away from

North Point Mall in upper-class urban Atlanta. Even though Gigi’s is an upscale

8

cupcake shop, it will not impact our cupcake, shop due to the emotional appeal

that we present. Also, the location of Gigi’s presents an additional issue. The

Lenox Mall area of Atlanta, home of Gigi’s, is extremely challenging to reach due

to very high traffic volumes on limited access roadways.

Starbucks is located at the opposite end of North Point Mall and is an

indirect competitor of Starbucks sells coffee as well as

pastries and other desert items; however, it is better known for its coffee.

Starbucks is well-known to most Americans, and their stores are viewed as

expensive, corporate, and impersonal. they are a corporate chain and are not

locally owned, which makes them less personable. Our advantage over

Starbucks will be that our cupcakes are made fresh daily versus the pre-frozen

baked goods sold at Starbucks.

- - 1QA& 1Q1,‘

BAKERY

Lulu’s Bakery is a specialty bakery located three miles away from North

Point Mall. They specialize in extravagant cakes and wedding cakes. Although

this bakery does sell cupcakes, this are not their main source of income, and

Lulu’s does not advertise that they sell cLipcakes. We consider Lulu’s an indirect

competitor because although they sell cakes, they are not focused on the

cupcake market.

9

Pubflx...

Grocery stores are indirect competitors ofPrc kCtic((ES. because

they sell baked goods. The two closest grocery stores to North Point Mall are

Kroger and Publix. Kroger is 2.2 miles away from the mall and Publix is 1.8 miles

away. The cupcakes sold at Kroger and Publix Bakeries are usually made fresh

daily but only come in 2 ordinary flavors, chocolate and vanilla. Their cupcakes

are not gourmet, which means they are decorated with flavored frosting and

made to look like different items. Pec’/.CupcFces. will serve gourmet

cupcakes.

C. Market Segment Analysis

Because the location of P.c.. Cupcakes. is inside North Point

Mall, our target market is young families inthe upper-middle class. North Point

Mall attracts a large amount of the high household income population each day.

The target market for our business is upper—middle class because they typically

will spend more for high quality, exceptional Froducts. According to statistics from

North Point Mall’s Demographic Quick Fact Report, 42.67% of the households

surrounding the mall are in the upper-middle class or higher. Due to the

demographics surrounding the mall, we will have a strong market appeal. These

statistics support our choice that North Point Mall is the right location for

‘.Cupc3ke5.

10

D. Analysis of Potential Location(s)

When choosing a location for our business, we considered the

demographics of the area and the geographic location in relation to the owners

for constant oversight of the business. We also were aware of how successful

that specific shopping center or area has been for other businesses like ours and

the cost of the location in comparison to how much we can afford. We realize that

we must choose wisely for where our first store will be located as it will directly

impact our success. The two locations we reviewed were The Avenue Forsyth

and North Point Mall

With the above considerations, our next decision was whether to purchase

or lease. As our business is just starting out, we chose to begin as a walk-up,

counter service business with the goal to expand into larger locations that include

a sit-down area. For this reason we chose to lease instead of buy, which allows

us the option to move forward with our plan ned expansion. When leasing, we can

avoid a large initial output of cash and some expenses are tax advantaged.

The first location we considered was a unit at The

Avenue Forsyth. The Avenue is an outdoor mall in

Southern Forsyth County. The location is in close proximity

to South Forsyth High School, multiple high-densityTHE AvENuEshousing complexes, directly off a major highway, and in an FORSYTH

area that includes our target demographic. Students from the high school visit

The Avenue Forsyth regularly, with the average student visiting once a week.

The Avenue is located directly off Georgia 400, a highway running through north-

11

metro Atlanta, at a - busy intersection. It would be a great location for

• .Cupcc€s. because so many target market upper-middle class people

visit The Avenue. Forsyth County is the wealthiest county in the United

States and one of the fastest growing counties in the nation. Although this is the

perfect location for our Cupcake shop, the cost to lease a space at The Avenue

Forsyth is more cost-prohibitive than our financial plan will allow.

The second location we considered, and the location we ultimately

selected was North Point Mall. The primary trade area population (radius) in this

area has a higher average household income than The Avenue Forsyth. The mall

is the best location because it will bring us high customer traffic. The Great

American Cookie Co. has been at the North Point Mall location for many years

and has been successful. Their lease is expiringin late 2011, and we understand

that they do not plan to renew it in that location. We plan to

take over this location once they vacate. The unit is located

near JCPenney (a popular department store at North Point

Mall), a hair salon, and many other stores and restaurants.

Our research has shown that businesses are more likely to succeed if the

shopping center that it is located in has been in business for over seven years.

The Avenue Forsyth has only been open for three years while North Point Mall

has been open since 1993; this, alon with the leasing cost, were the ultimate

determining factors for choosing North Point Mall.

12

IV. PLANNED OPERATION OF THE PROPOSED BUS!NESS

A. Proposed Organization

.:. Cupc(es. will be a Limited Liability Partnership between

Ashley Hunt, Anna Paschall, and Amanda Schreiner. Legally, a partnership is a

relationship between two or more persons carrying on a joint business venture

with a view to profit, each incurring liability for losses and the right to share in the

profits. There are three types of partnerships: a General Partnership, a Limited

Partnership, and a Limited Liability Partnership. Ashley, Anna, and Amanda will

have a Limited Liability Partnership (LLP). This is the best option for all partners

because it has aspects of both the General Partnership and the Limited

Partnership. In this type of partnership, each person is not personally responsible

for the wrongful acts of the other partners or for the debts or obligations of the

business. Partnerships allow partners to manage directly and maintain a closer

control of their business.

There are many advantages and disad’iantaqes to the limited liability partnership:

The initial capital investment will likely All partners will be liable for thebe higher because more people are success or failure of the business.

There are no state arid federal taxes Individual partners can commit toon the LLP as an entity. Income is business decisions without the othertracked directly to each partner. partner’s consent.

Removes a portion of each partner’s Termination of partnership due topersonal liability, making it much withdrawal of one or more partners.

different and more appealing thanother partnerships.

Among the three partners, Ashley Hunt; Anna Paschall; and Amanda

Schreiner, ownership and responsibilities will be split equally at 33.33% each.

Although we will each be incharge of certain aspects of the business, we will

13

work together to perfect everything and use.a democratic process to resolve

dispute. Each of us will have a specific responsibility, shown in the chart below:

Creativity and Buying: Marketing: Administration:-Amanda will be in charge -Anna will be in charge of -Ashley will be responsible

of new cupcake flavors the promotion of for the administrative

and will have a major say .CuçcKes. functions of the company

in the display and including finances, human

presentation of our She will also be in direct resources, and pricing.

cupcakes. She will also contact with the charitiespurchase the equipment we work with and eventsand supplies needed to that correspond with ourmake the cupcakes. charity of the month.

Along with the three owrirs, eQcL :.Cuocikes. will employ two full-

time team members and two part-time team members at the opening of our

store. We will employ additional personnel after qpening on an as-needed basis.

The responsibilities of the team members will include baking and icing, working

the front-of-store, communicating with the public, and directly selling to

customers. At least one of the owners Will be in the store at all times along with

one other team member. In the mornings, we will have one extra team member

to help with baking the freshly made cupcakes.

I

IBecause we are located in a mall, our hours of operation will not be

flexible. We will have to comply to North Point Mall’s hours, which are:

• Monday-Saturday lOam-9pm

• Sunday l2pm-7pm

B. Proposed Product/Services

:LuciJes. will produce and sell a large variety of gourmet

cupcakes. We will have both everyday and charity cupcakes. Everyday cupcakes

will be our daily general merchandise. Our line of charity cupcakes will be

14

decorated for a specific charity each month and $1 from the net profit of each of

these cupcakes will go towards that specific charity. We expect that the cost of

producing our cupcakes will be $1.50 each; therefore, 50% of the net profit will

be donated to the charity. Along with the profits from these cupcakes, we will also

put a donation jar by the cash register for the charity of the month. 100% of these

proceeds will go towards the charity. This donation jar will be in lieu of a tip jar.

Pec. Cucke5. will offer excellent flavors and our large-sized

gourmet cupcakes will be sold for $4.25 each. We will have four flavors that will

be sold every day as well as four gourmet flavors that will change daily. Below is

our list of flavors:

. Vanilla

. Chocolate

. Superman Cupcake

• Monthly Charity Cupcake

• Pink Delicious • Red Velvet • Chocolate Strawberry• Blue Chiffon • Carrot Cake • Peanut Butter Fudge• Lip-Lickin’ Lemon • Mint Chocolate Chip • Piña Colada• Chocolate Lover’s Delight • Coconut Cream Pie • Key Lime• Chocolate Raspberry Truffle • Birthday Surprise • Cocoa Caramel Craze• Campfire S’mores • Mocha Chip • Caramel Apple• Cookies and Cream • Pop Star • Butter Pecan• Strawberry Cheesecake • Chocolate Cookie Dough • Seasonal Flavors

Each day we will have four cupcakes flavors that remain the same: The

Superman cupcake, dedicated to Brian Parks, our monthly charity cupcake, a

vanilla cupcake, and a chocolate cupcake. There will be four other cupcake

15

flavors that will rotate daily to add variety to our menu. These will be chosen from

the table above. This will total to eight flavors available each day. When we first

open, we will bake 24 cupcakes of each flavor fresh every morning on weekdays

and Sundays and 30 on Saturdays. We expect that after three months, customer

traffic will increase, and we will raise that number to 36 cupcakes on weekdays

and Sundays and 42 on Saturdays. Along with these numbers, we have to

account for spoilage of our cost of goods sold each month. In the

first month, we plan to have about 5% spoilage and by the end

of the second year, we would like to ha’je only 1 % spoilage

Most cupcake shops have something that makes

Georgetown Cupcakes in Washington D.C. has a signature swirl that looks

perfect every time. Our unique element is a colored sugar sprinkle melted on top

of all of our cupcakes, which gives them a caramel texture over the top of the

moist cake. This keeps the cupcake fresher and helps it stay moist longer. This,

as well as donating to charities, sets us apart from our competitors.

C. Proposed Marketing Strategies

Our proposed promotional plan is designed to be the best and most cost-

effective for our business, consisting of five different aspects. The first part of our

plan is the fragrant aroma of thefreshly baked cupcakes pervading the mall. This

will be one of our most effective ways of getting new and current customers to

our store and will be free and available to us throughout the day, every day.

As one walks into a mall the first thing he ‘sees is usually a mall directory.

As he walks around the directory, he sees advertisements for stores that are

them unique.

16

=

:sazzIx4.w.- ... -. -

located near the mall. Stores located in the mall receive the space for a

discounted price. We want to use this spaceto feature our product, which will

entice shoppers to stop by and purchase a cupcake

Social Media is the best type of advertising for all businesses It is free

and 80% of people belong to at least one social media site We will belong to two

social media network sites Facebook and Twitter which we will update daily

Elementary school children grades Kindergarten through 5th grade

participate in an Accelerated Reading program These students get points for

every book they read and are rewarded for meeting their point goal. In local

schools, we will distribute cards to the teachers to give to the students that reach

their Accelerated Reading point goal Each student that meets their goal will

receive a free mini cupcake from CucLes

When customers come to the register we will ask for their

email address for our mailing list We will email these customers

special promotions as well as a coupon for a free Birthday

cupcake (right) during the month of their birthday

According to a survey, which we conducted, 86% of people are more likely

to go to a store that donates to charities rather than stores that do not This will

set us apart from the rest of our competitors. Charities are also more inclined to

promote a business’s name when it gives generous charitable donations Each

month we will have a charity that our donations will be based around. We will

also have events corresponding with each charity, shown on the next page

17

Charity Cupcake: MuscularDystrophy

Charity Cupcake: InvisibleChildren (Africa)

March:

• Muscular Dystrophy Shamrocksdisplayed in the store

May:• Charity Cupcake: Relay for Life

• Relay for Life Team Event

July:•

• September:• Charity Cupcake: Military

• All money from charity cupcakegoes towards buying “goodies”to send to the troops

November:Charity Cupcake: The Place ofForsyth County

• Canned Food Drive for ThePlace of Forsyth County

• Seasonal ThanksgivingCupcakes

\/.

Charity Cupcake: AmericanHeart Association (With HealthyIngredients)

• Cupcake “Valentines”

April:• Charity Cupcake: The Sunshine

Foundation• Earth Day! Recycling Event

• Seasonal Earth Day Cupcake

June:• Charity Cupcake: Humane

Society of the United States

August:• Charity Cupcake: Give a Kid a

Chance• School Supply collection box for

Give a Kid a Chance

October:• Charity Cupcake: Breast Cancer

• Seasonal Halloween Cupcakes

Charity Cupcake: Children’sHealthcare of Atlanta

• TOY Drive for Children’sHealthcare of Atlanta

• Seasonal Holiday Cupcakes

r’%

IIIPece.Lo\e.Cupcs.

January: ; February:

• Charity Cupcake: Make A Wish

December•

A. Projected Income and Expenses

18

1.P

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and

Ex

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Jan

2012

Feb

2012

Mar

2012

Apr

2012

May

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Jul

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Aug

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Sep

2012

Oct

2012

Nov

2012

Dec

2012

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25,2

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00

4. Projected Balance Sheet, End of First Year

December 2012

ASSETS

Current Assets

Wells Fargo Checking 670.50

Total Current Assets - 670.50

LIABILITIES

Liabilities

Wells Fargo Line of Credit 75000.00

Shareholder Investments 45,000.00

Total Liabilities 120,000.00

EQUITY

Equity

Assets 670.50

Liabilities 120,000.00

Total Equity -119,329.50

5. Projected Three-Year Plan

.

2012 2013 2014

Sales

Revenue 438, 192.00 513468.80 858,856.32

Total Revenue 438, 192.00 613,468.80 858,858.32

Cost of Goods Sold 154,656.00 216,518.40 303,125.76

Total COGS 154,656.00 216,518.40 303,125.76

Gross Profit 283,536.00 396,950.40 555,730.56

Expenses

Donations 25,776.00 36,086.40 50,520.96

Rent and Utilities 96,000.00 100,800.00 105,840.00

Insurance 3,600.00 3,780.00 3,969.00

Loans and Interest 12,120.00 12,120.00 12,120.00

Marketing 7,100.00 6,200.00 6,200.00

Technology 4,200.00 2,000.00 2,000.00

Kitchen Supplies 15,860,00 2,000.00 2,000.00

Office Supplies 1,500.00 ‘ 750.00 750.00

Store Decorations 3,150.00 1,000.00 1,000.00

Miscilaneous 4,500.00 3,500.00 3,500.00

Emergency Funds 2,400.00 2,400.00 2,400.00

Payroll Expenses

Owners 48,000.00 105,000.00 147,000.00

Full-Time 38,400.00 38,400.00 38,400.00

Part-Time 9,000.00 9,000.00 9,000.00

Total Payroll 95,400.00 152,400.00 194,400.00

Total Expenses 271,606.00 323,036.40 384,699.96

Operating Income 11,930.00 73,914.00 171,030.60

Taxes

Income Taxes (at 35%) 11,259.50 25,869.90 59,860.71

Netlncome 48,044.10 111,169.89670.50

B. Proposed Plan to Meet Capital Needs

1. Repayment Plans

When asking for a $75,000 loan from Wells Fargo, we are prepared to pay

an 8% interest rate, which is the current standard rate for most loans. Our plan of

action for paying back the loan is to pay $1 ,01 0 (including interest) per month.

The loan will be completely paid off in just over five years.

2. Plan to Repay Borrowed Funds or Provide Return on

Investment to Equity Funds

Our parents have loaned us $5,000 each from personal savings, but do

not expect to have any say in everyday operations. They also have not given us

a time limit in which we must return the money. Because we are paying Wells

Fargo back as fast as possible, we won’t have much left over to pay our parents

back initially; therefore we will pay them back after we finish paying Wells Fargo

back. After the fifth year of being open, we will put aside $1,500 a month so

each of our parents will receive $500 each month until their gifted $5,000 is

returned.

VI. CONCLUS(ON

“Sooner or later, those who win are those who think they can. “—Paul Tournier

We are confident that .r... Cupcac€s.

will be a successful business from the start. We will be

prominently located in North Point Mall, which will

produce heavy customer traffic and result in high profit

margins. We are devoted to hard work and producing a

company that is recognizable by name ahd branding to our customers and

24

business competition. Our large target market, unique charity works and pure

determination will help us stand out from our competitors and rise quickly to the

top. Additionally, there are no direct competitors within a 15-mile radius. We

anticipate Wells Fargo will be as excited to invest in our unique business as we

are to open it.

ece...CuDcKes. is requesting a loan from Wells Fargo Bank in the

amount of $75,000. This amount, along with our individual and parental

contributions will total $120,000. This figure will sustain start-up costs as well as

allow for an emergency fund of $200 per mbnth to cover unexpected costs over

the first two years.

After we have established Cces we wish to expand into

more locations in Metro Atlanta. The expansion of our business will not only

supply more donations towards charities but also more profit for our business.

CuDcake. will give our customers, as well as our investors

‘Vof mind. .. for others. and (upcKs. for you.”

P&e.Love.Cuprs.

25

Vfl. BiBLIOGRAPHY

U.S. Census Bureau

Interview with Dawn Martin, Head of SFHS Culinary Department

26

r,r. : ,;r-,t::.a-:::;

eA1&eIY2I

- — 1llhII1Peuce.LoveCupcrces.Birthday Surprise: Cocoa Caramel Craze:Vanilla Cake with Pink Buttercream Icing Chocolate Cake Filled with Caramel and

Topped with Caramel IcingBlue Chiffon:

[ Blue Vanilla Cake with Blue Buttercream Cookies and Cream:Icing Cookies and Cream Cake Topped with

Whipped Cream Icing and Adorned withButter Pecan:Oreo Cookie Crumbs

Butter Pecan Cake with a Cream CheeseIcing and a Pecan Garnish Key Lime:

Vanilla (Lime Infused) Cake Topped withCampfire S’mores: MeringueDark Chocolate Cake Dipped in Ganaché,Covered in a Marshmallow Frosting and Up-Lickin’ Lemon:1: Topped with Graham Cracker Crumbs Lemon Cake Drizzled with a Lemon Glaze

and Topped with Lemon IcingCaramel Apple:Applesauce Cake Filled w/ Caramel and Mint Chocolate Chip:Topped with a Red Caramel Apple Icing Chocolate-Mint Cake Topped with Mint

Icing Dipped in GanachéCarrot Cake:Carrot Cake Topped with Cream Cheese Mocha Chip:Frosting Chocolate Cake with Coffee Icing and

Chocolate Chip ShavingsChocolate Cookie Dough:White Chocolate Cake with a Cookie Baked Piña Colada:into it and Topped with Chocolate Chip Coconut Cake Covered in LemonIcing Buttercream Icing

Chocolate Lover’s Delight: Peanut Butter Fudge:Chocolate Cake w/ Chocolate Chips and Chocolate Cake Topped with Peanut ButterCovered with a Mound of Milk Chocolate Icing Dipped in GanachéV Icing

Pink Delicious:Chocolate Raspberry Truffle: Chocolate Cake with Pink Buttercream IcingChocolate Cake Filled w/ Raspberry JellyTopped with Raspberry Icing and Chocolate Pop Star:Chip Shavings Vanilla Cake Topped with Pink Buttercream

Icing w/ a Mini Ice Cream ConeChocolate Strawberry:Chocolate Strawberry Cake Filled with Red VelvetStrawberry Jelly Topped with Strawberry Red Velvet Cake Covered in Cream CheeseIcing Dipped in Ganache Frosting

Coconut Dream Strawberry CheesecakeCoconut Cake Topped with Vanilla Icing Strawberry Cake Filled with Strawberryand Dipped in Coconut Flakes Jelly and Topped with Cream Cheese

Frosting and Strawberry Drizzle

-=: :---

i.) Do you enjoy fresh baked cupcakes?

YesNo

2.) When do you visit the mall? (Check all that apply

3.))

Monday through Thursdays

FridaySaturdaySunday

4.) What time of day do you usually visit the mall?

(Check all that apply)MorningAfternoonEvening

5.) Which mall do you go to more often?

A.) North Point Mall

B.) Mall of Georgia

6.) What would make you more inclined to go to a

cupcake shop? (Circle all that apply)

A.) Donating to Charities

B.) CateringC.) Delicious Food

D.) Other(Please specify)

7.) Would you be more inclined to shop at a store if

they donate to charities?YesNo

8.) What is your favorite cupcake flavor?

29

Forsyth County Humane Society

ii.) What is your gender?A.) MaleB.) Female

Pecce.Love.Cupcckes.This survey is to assist high school students with marketing, DECA, competition. We would greatly appreciate

your help in filling out this survey. Thank you for your time and effort!

9.) What is the most you are willing to pay for a

large-sized cupcake?

A.) $3.25

B.) $3.75C.) $4.25

D.) $4.’5E.) More than $4.75

10.) What charities are you most interested in

donating to? (Check all that apply)

Make a Wish

American Heart Association

Invisible Children

To Write Love on Her Arms

Cancer (Specify Organization):

Other (Please Specify):

12.) What group do you best fit into?

A.) Elementary School Student

B.) Middle School Student

C.) High School Student

D.) College StudentE.) AdultF.) Adult with Children

C.) Senior Citizen

1