Through the use of a hook backed by professionalized, referenced information Cantrell grasps the reader’s attention and makes them take notice of a niche market available to potentially profit from, and the follow-up of specified customer identification and service connection and benefit instills a basis of relevance and possibility for the rest of the business plan to connect the market, industry and business together in a cohesive representation of a successful business concept with the potential to generate substantial profits while preserving environmental conscience.

With her extensive descriptions of Roots’ products, services and unique qualities, Jessica Cantrell is able to paint a vital picture for readers regarding the standards and expectations customers will hold the business to when considering it as a salon option. The consistency of the environmentally friendly, organic nature of Roots’ business concept also plays upon the firm’s main competitive advantage over already existing competitors, and uses this opportunity to great effect when convincing potential investors reading the business play to see potential profitability and return. Readers can also recognize market share values through the inclusion of premium product costs that customers will [be willing to] pay for organic, vegan, and otherwise environmentally friendly salon products and services as opposed to the conventional alternatives.

Additionally, the key success factors listed illuminate the presence of critical thinking on the part of the author, and play upon the previously mentioned products and services to give a complete description of exactly what Roots’ customers should expect by way of uniquely gratifying services and organic products that appeal to the humanity in the firm’s already humanitarian target market, and blueprint exactly what kind of a company, both an advantageous and sustainable, a potential investor(s) could be injecting capital into. The growth potential and schedule included in the business description section also lays out for the investor multiple possibilities for expansion and perfection of the concept to realize leaps in profitability.

Inclusion of these laws and regulations in the business plan shows preparedness and research on the part of the author; such laws are needed to create the business, and to maintain a safe environment for both customers and employees.Trends present in Roots’ industry section are discussed in detail in the next section, and Cantrell does an excellent job of covering all her bases while showing off her first-hand experience in the field as well. Being an organic, vegan, harmful chemical and cruelty-free focused salon, Cantrell once again highlights her business’s main environmental appeals, along with a few not yet touched upon marketing and philosophical strategies, including

Executive Summary

Plan Analysis: “Roots Organic Salon & Spa”

Business Description

Industry Analysis

Alec HanleyManagement 34709/18/2014

philanthropy and donation. The importance of an educated and environmentally conscious salon staff is also referenced, and an assurance of doing so is backed with examples of how such a goal can be accomplished in Roots’ operational construct.

The care taken by Jessica Cantrell to identify potential discrepancies among certain customer groups shows both extensive research and previous knowledge stemming from professional experience in similar workplace situations. Cantrell shows her skillset off, to her benefit, in the industry analysis section of the business plan, while still displaying a genuine care and consideration for the entirety of her target, secondary, and tertiary markets. Roots’ ambition in its intentions to cover all of the aforementioned customer needs and concerns whilst maintaining and purely organic business philosophy is enterprising, and Cantrell’s knowledge base, willingness, and passion to pass on that knowledge to her employees and co-workers is evident in her analysis.

The voicing of information through the use of bulleted findings gives the reader a small, yet intelligent and relevant insight into the main points Cantrell wishes him/her to comprehend, even if they choose not to advance any further into the plan section. These numbers epitomize the bulk of the following reading, and Cantrell does a fine job of defining her target [primary] market in such a confined page space.

The primary, secondary, and tertiary market findings and assumptions give the reader a clear definition of exactly who Roots intends to serve and satisfy, for what reason, and for which purposes. Connection of Roots’ competitive advantage also interplays with customer opinion to convince readers and potential investors that Jessica Cantrell genuinely cares about the humanity and freedom of ideas that customers will bring into her establishment, and that this concern will translate into an honest and emotionally vibrant service format that will bring people back again and again.

The increment basis by which Jessica Cantrell informs readers of the correlation between customers’ willingness to do business with Roots and their distance from the physical store allows said readers to understand the reasoning behind the entrepreneur’s decisions regarding the placement of the business within the chosen community. With a single firm holding as much market size in relation to the overall industry presence in the area as Cantrell has calculated, then it becomes apparent that the population of that area values organic, vegan, and cruelty-free cosmetics and beauty services significantly, and the concept of Roots taking hold is well-informed and displays potential. The continued inclusion of consumer preferences and spending trends brings the market analysis full circle and justifies the presence of Roots from profitability and desirability standpoints as well.

Though Jessica Cantrell opts to briefly explain capacity percentages to the reader, as well as how the specific percentages applied to her business are relevant, the explanation is lacking in actual comprehensive information, and readers may not fully understand the

Market Analysis

reasoning behind the values, and exactly what aspects of the business model and market share they pertain to.

Having an easy to access promotions schedule may be a convenient and appealing to customers who are Roots aware, but without adequate advertising strategies centered individuals ignorant of the company, then Roots cannot grow itself in a community and profit from loyal business. Jessica Cantrell’s choice to opt for primarily word-of-mouth methodology concerning new customer-focused advertising is bold and proven effective, but may not result in as much customer traffic as she may be expecting. Further development of advertising and marketing avenues may be beneficial to Roots in its fledgling years, and decisions to pursue publications and other tangible resources of customer networking should be considered.

This establishment of brand identity for the reader, or [maybe] more importantly, the potential investor, allows for solidified evidence of a business that stands out from its competitors and breaths physicality into a unique conceptual idea. The connection between Roots’ mission and competitive advantage and the ink, color, and pixel specification of what customers will see, feel and experience in their interactions with the company makes cohesive sense.

Denoting a portion of advertising efforts to informal, spontaneous methodology displays a level of natural interaction with Root’s customer base. This naturalism both from business to customer and customers themselves allows people to connect as a business-oriented community and make Roots and its target market flow in a way that is as organic as the products and services it provides. The philanthropic aspects of the business take this ideal a step further. The giving of Roots to its customer network as a humanitarian entity brings the relationship to that network full circle, and flourishes a personal component to conventional métier.

Competitive analysis displayed rational selection of established salon names in the immediate area surrounding Roots’ intended brick and mortar place of business. All areas of comparison being explained in depth give readers justification for why competitors are considered as such. Jessica Cantrell formed each description in such a way as to establish relevancy, and the accompanying table at the end of the subsection effectively summarizes the descriptions on an “out of 5” points system. This grading scale visualizes for the reader or investor, in a single specific area, how each competitor, from the perspective of both the entrepreneur and from primary research, stands against Roots in each pertaining aspect.

The table layout used to display the bulk of pricing strategy for the business was well formatted and easy to comprehend. Through the expanse of Roots’ product and service selections and the evident lack there of by competitors gives Roots an on paper variety advantage. The inclusion of some specific services, such as couples message pricing, sheds new light on potential avenues, which Roots could use to gain a leg up on said competitors as well. Cantrell utilized the information found in primary interviews with beauty professionals and industry standards to her distinct advantage.

Taking the opportunity to restate key geographical and demographic points from previous sections of the business plan allows readers to connect the [now fully revealed] intended location for Roots to a recognizable area. With Fishers, Indiana being analyzed throughout the section in terms of quality of life for residents and traffic flow in the area immediately surrounding the business, major locational clues from previous areas of Cantrell’s business model come together in one section, in a comprehensive and natural way. The inclusion of photographic display of the exact brick and mortar location for the prospective business also allows readers, and better yet investors, to accurately visualize the storefront; effectively what customers will see upon passing, entering, and exiting the establishment.

With Jessica Cantrell taking liberty to highlight her personal skill sets, milestones, and areas of expertise, readers can, figuratively speaking, get to know a competent entrepreneur-to-be with professional knowledge and intimate passion for a business that requires it to be successful. The bulleted listings of duties delegated to each specific employee or staff member also helps visualize task management and foreshadows to operations structures within Roots’ day-to-day bases. Systems for monetary transfer between employee, owner, and business are also touched upon, and the system of capital generation and employee payroll Cantrell has devised based on extensive industry knowledge and research devise efficient methods for both satisfying stylists and general employees while all the while helping Roots as a company to prosper and grow.

Graphic representation of Roots’ business layout reinforces the visualization factors that readers can use to fully grasp and imagine the end result of Jessica Cantrell’s business concept. Said layout can then be pinpointed, examined, and justified based on the paragraph explanations for each component of the store layout.

Cantrell’s milestone schedule not only lays out essential events in the life of the owner up to and during the course of Roots’ initial start-up, but also gives basic preliminary insight into certifications and educational objectives needed to legally own and operate such a business model.

Location

Management

Operations

Milestone Schedule

The bulk of critical risks stemming from inside Roots’ confines rather than outside are admittedly worrisome. Cantrell’s capacity strategy of allowing stylists to rent both space from the salon itself is, although parallel with the industry norms, problematic as it forces the business to either operate with a minimized workforce or turn to stylist options with less than optimal experience in contrast to the highest possible quality that Roots claims to provide its customers. The possibility of stylists lacking loyalty to the business also poses issue for Roots’ sustained profitability. With the significant competition among firms in the immediate vicinity of Roots, maintaining a loyal stylist staff will be imperative if Roots wishes to stay true to the quality of customer service and organic methods they promise. Cantrell may wish to develop a more anonymous system of inter-stylist problem solving as an alternative for individuals who may not feel comfortable voicing opinions and complaints in front of every other employee.

In regards to niche clientele and keep up with industry trends, Roots presents viable avenues by which to reach and react to these concerns. Social media and community events lay heavy with the type of customer base that Roots wishes to attract, and participation and interaction by the business in these regards will certainly establish beneficial networks.

Cantrell’s exit strategy possibilities are largely conventional. The selling or handing down of the business to a family member or outside investment entity is mainstream among entrepreneurs. Cantrell’s listing of such alternatives is a smart and sensibly calculated choice.

Many would consider the financials section of a business plan to be the true “meat and potatoes” of the document. Jessica Cantrell does a fine job of laying out key financial points and categories in both paragraph and table format. All necessary startup costs have been noted and can be tracked back to the request Cantrell makes for investment figures. All loan and otherwise outside leverage made by financial institutions or individuals are calculated and documented professionally, also analyzing interest terms and expected increases of calculated debt.

Break-even analysis is also documented in the traditional format and makes clear sense. Cantrell has given readers both the contribution margin and the revenue requirements the margin percentages translate into in terms of what the business must generate monthly to break even consistently.

Critical Risks

Exit Strategy

Financials

The revenue model for Roots reminds readers of the unique [to the salon industry] method in which the business will both interact and compensate its stylists and other employees. Cantrell makes good use of the page to describe exactly how payment of the stylists to Roots in product costs and booth rentals and of Roots to its message staff in terms of commission. Cantrell also makes very clear which fees are paid by which employees at which time through the use of a sectioned table and accompanying formulas annotating how she came up with each figure. The use of these methods in the explanations of commission percentages for product sales, and esthetician payment displays intellectual linearity at comprehensive attention to detail.

The exerpts Cantrell uses to explain revenue figures for the first three years of Roots’ operation allows the reader or investor to see both what the business could potentially bring in once at full capacity, and then [more relevantly] what Roots will bring in, based on calculations by the entrepreneur, in the first three years at each year’s projected capacity level. Cantrell does an excellent job of noting the variability of her industry, and makes sure the reader understands that capacity levels and revenue figures will depend on the amount of stylists renting booth space from the firm, as well as previous clientele each stylist may bring with them, thereby potentially boosting revenue for the business on to an ambiguous extent.

Explaining each of the plethora of startup costs Roots will need to finance and noting each individual figure in paragraph format allows Cantrell to give the reader both a grasp on what each cost means in the overall success of the business in its early quarters, and also offers insight into general asset calculation at the beginning of Roots’ “life.” Investors can see exactly which kinds of assets Roots will have on hand to begin operations, as well as be presented with a layout of which items their initial investment will help to acquire. Cantrell does well to divide up assets, liabilities, equity, and expenses in this detailing, so that readers and investors can see exactly what the business will keep, along with how debt will be managed. The startup costs Cantrell lists show how the entrepreneur intends to manage Roots’ initial finances, and is well thought out.

Lastly, the section devoted to a key financial indicators table does an excellent job of showing readers and investors a multitude of different financial queues. Potential investment entities can see how much revenue can be generated by the firm for a given asset amount, the number of sales that comes with a given stock of inventory, profit margins, and how much profitability the company’s assets and investment capital will generate. These figures help readers and individuals who may be interested in investment tremendously, by allowing them an inside look at how well Roots is utilizing the financial resources granted to it.

Cantrell gives income statements, balance sheets, and cash flow statements for the first three years of Roots’ operations. Each statement is well formatted and contains relevant

Financial Statements Years 1 - 3

and calculated data as it pertains to the firm’s assets, liabilities, equity, income, expenses, and cash management.

Jessica Cantrell’s appendix sections in themselves offer a wealth of information in formats easily recognizable to even those individuals with little to no business knowledge. Website screenshots help the reader understand organic product functions and purposes, while industry graphs and explanations lay out growth patterns, sales forecasts, resilience to economic recession, employment standing and growth, and career opportunities in the industry. There is general data to help readers get a feel for the income levels of the population and demographic Roots intends to cater to, along with categorization of individuals, minorities or groups depending on which products and services they will demand.

Cantrell also provides multiple viewpoints for her firm’s geographical location, allowing readers to see the surrounding community and how Roots will fit in its social environment.

There are also multiple survey drafts to trace findings back to the individual prompts used to obtain those findings. These drafts are accompanied by ESRI spreadsheets to allow readers to grasp characteristics of the population around Roots’ brick and mortar location.

Competitors pricing data is listed to show comparison and justify premium pricing of Roots’ products and services on a basis of premium quality. Cantrell also gives her personal resume to invoke a more personal connection between reader and author, and to accurately justify her desire to become a part of an industry that complements her strengths and professional experience.

Lastly, depreciation and loan amortization schedules are given to show how the firm intends to manage its debt and utilize its resources to great effect in longevity.

Appendices

Already established entrepreneur and beef cattle farmer Jason Fry chose to lay out his executive summary in a (somewhat) chronological format, beginning with the opportunity, the business, and then the need. Fry informs the reader of exactly what state the beef industry, both organic and chemical-based, is in in the area intended for his business to exist, along with basic geographical information and demographic figures.

These statistics, being lush with research, give the reader an idea of how plausible Fry’s organic beef operation could potentially be in the area he intends. He uses the numbers presented to establish a reasonable argument that organic beef encompasses a niche market among general cattle protein industries, and that consumers in the location Fry intends to place his business, Sturgis, Michigan, are in high demand for offerings of organic beef.

The mentioning of Jason Fry’s family farm is key. With over 50 years of beef production under its belt, readers or investors can feel confident that something is being done right at an already established beef enterprise. Fry intends to expand his family’s market potential on an already successful business foundation. The introduction of largely modern technology, such as Fry’s Metrics, simply means more of an already good thing, should the process be implemented in the correct way at the right time, and influence consumers to see this as well.

The fact that Fry takes liberty to introduce the reader, and [maybe] more importantly the investor, to the capital needs of the business early means that they are using monetary values as a standard which they can then “grade” the remaining business plan, and decide for themselves if the preparedness and calculations that the entrepreneur displays are worthy of such an investment request. Decision-making can begin immediately with the aid of the statement expert Fry includes in the summary.

As the first time Fry goes into any depth regarding his Three Metric System, readers may be skeptical as to what exactly such components consist of. Fry does an excellent job of briefly baiting his readers with the title of each metric (Feed, Medical, and Location), and keeping them hooked on learning more about the system, and by extension, keeps them reading the business plan.

Fry also makes note of specific avenues through which consumers can purchase the farm’s beef products. The multiple front nature of these avenues means that Fry Farms can generate customer networking in a variety of ways, and integrating itself into a community that has already legitimized it will be less tasking.

Executive Summary

Plan Analysis: “Fry Farms”

Business Description

The wealth of professional knowledge and community involvement that both Jason Fry and his father, Jim Fry, have accumulated speaks volumes about the preparedness of the two men to successfully own, operate, and maintain Fry Farms well into longevity. Such credibility and depth of experience show readers and investors that, should they choose to inject capital into the firm, would be put to educated use.

Jason Fry’s mentioning of his patenting of the Three Metric System is a significant green light for investment entities that may be analyzing the business plan. With the main competitive advantage Fry Farms presents being legally protected, the uniqueness and leverage that is its claim to fame are cemented as exclusive traits in an industry with fiercely competing, yet fiercely similar firms.

With such a rich history in raising beef animals, investors can bet upon Fry Farms being long run successful. Jason Fry’s expansion endeavors for the farm intend to modernize an already proven, profitable business founded on passion, sweat, and family bonds. These factors give Fry Farms a powerful mission, and a gross determination that is so essential in entrepreneurialism.

Expansion upon the aforementioned opportunity that Fry Farms will take advantage of simply allows for greater reader comprehension on exactly how the business will generate revenue and satisfy its customers. With Fry Farms beef being offered to consumers in the surrounding areas via restaurants, direct sale, and start to finish product tracking through the use of the Three Metrics System, the intimacy such a business model generates between itself and business-doing individuals becomes almost as unique and innovative as the technology used to induce it. Fry Farms, throughout the bulk, if not all of the business plan, retains its main competitive advantages as being the farm’s upmost standard of raising only organically cared-for beef, and the monitoring of each animal through the use of its patented Three Metric System. Since the business is currently in operations in a geographic location saturated with farmland and related establishments, Jason Fry must develop an understanding of who he can sell product to and against whom he will have to compete to accomplish that selling.

Fry does a fine job of annotating exactly what product diversity his farm’s animals will take to assure that every customer, individual or organization, will be satisfied with some form of Fry Farms beef. He separates [on paper] animals raised for harvest, and thus producing the bulk of the business’s product, and breeding animals through which the stock of harvestable animals can be sustained. Fry also explains that additional sources of revenue can be formed through auction of older aged breeding animals, or processing of said cattle into hamburger for consumer purchase. This diversity of product offering allows Fry Farms to reach as wide a demand base as possible, and will help to alleviate stress on the business from the plethora of competitive farms in the same area.

With the Three Metrics System Jason Fry has developed and patented being fully explained, readers can get a complete grasp on how Fry Farms will keep its customers informed about the status of their potential or privately order product at any given time.

The explanation is robust and full of easy to comprehend information, allowing potential investors to see exactly how Fry intends to keep a leg up on competition, providing online animal diets, health information and administering of any medical treatments, and time management on behalf of the animal to wholly satisfy his customers. Through the services section of the business plan it becomes quickly apparent that Fry has primarily customer needs in mind. Processing options are made easily available in variety for those who need them. Shipping to buyers who simply live too far from the farm favors prices that benefit individuals or organizations with higher quantity needs, while still maintaining a premium value for the premium product Fry Farms intends to deliver. These factors, when working in conjunction with the Three Metrics System, create a transparency between business and customer that is unprecedented in the beef industry as of yet. Customers doing business with Fry farms should experience no ambiguity, from the time they place an order for product, to the time that product lands on their plate.

To that end, Fry lists key success factors for Fry Farms as being dependent on firm transparency and dynamic customer knowledge of the products they purchase. As long as each individual customer or business remains informed about their product, and has little to no problem accessing information to remain as such, then Fry Farms should have little trouble finding legitimate success and customer loyalty.

Because of the simplistic nature of a farm-based business, the growth potential for Fry Farms is [to a point] black and white in nature. Jason Fry mentions possible expansion terrestrially through acquisition of larger areas of farmland, which in turn will increase the business’s capacity to raise more animals. Additionally, Fry Farms has the option of licensing its patent regarding the Three Metrics System to increase its revenue stream. This decision on the part of the patent holder could diversify and better the beef market in Sturgis, Michigan, and as a whole, and allow for technological innovation among the industry as well.

Future growth for Fry Farms is, as previously mentioned, linear in assumption. In addition to pursuing land-based expansion, Fry also notes his desire to expand into a diversified breadth of livestock. With branches of the business into a greater variety of proteins, the market and profit possibilities become greater. This, when combined with adherence to Fry Farm’s organic philosophy, competitive advantage can be increased for the firm and balance out the saturation of primarily beef-producing competitive businesses within the geographic area. Additionally, Fry Farms intends to expand beyond said area, to better serve a wider population and develop its brand on a more expansive scale, though considerable resources will need to be acquired or funded to do so.

The notion that Fry Farms involves itself in both segments of the beef industry means that the firm values familiarity and intimacy with its product. Such devotions to raising a proper, organically sustained animal mean that customers purchase product from a farm that considers each animal special in its own way, and not simply a number to be processed. It is this care-based business strategy that, when implemented, will allow Fry Farms to present consumers with the highest quality, lowest stressed beef in its [localized] market.

The amount of research conducted by Jason Fry to shed light on the beef industry for readers who may be ignorant of such is well done. Fry goes so far as to include the current diversity of cattle herds in the industry in present day. Fry also takes liberty to touch on the amount of beef product consumed by Americans on an annual per capita basis. These figures speak volumes about the roles beef cattle play in the U.S. diet. When considering said statistics, readers and investors can see quite clearly that Fry Farms will cater to a market with a consistent demand, which makes for sustainable profitability, should the firm make the right decisions and finance itself efficiently.

Outlining specific state and federal law and licensing that Fry Farms must abide by allows readers to grasp the regulations of beef processing practices in the United States, and to see that the industry in question is professional and systematic in its offerings to consumers. The role that routine and safety will play in the development of Fry Farms as an updated business means that customers can have faith they are purchasing a secure product to be ingested by themselves and their loved ones.

It is clear through the analysis of current trends in the beef industry that Jason Fry has modeled his business concept largely to accommodate the preferences of customers. With more and more consumers opting for more organic, less chemically processed products to include in their diets, Fry Farms must strive to maintain its organic philosophy if it wishes to hold customer attention and generate sales. The treatment of the animals used for product and breeding must also be kept at high quality to keep customers happy with the origins of their beef. From a business-oriented standpoint, the transparency of Fry Farms to customers who wish to track the living conditions of their animal product will prove starkly beneficial, and, as previously stated, build the business: customer intimacy that can set Fry Farms apart from the countless other beef operations in Sturgis. Additionally, retail outlets and restaurants are beginning to take more pride in the organic nature of their beef products, and Fry Farms’ pledge to raise its animals in this manner can only benefit trade relations with these businesses.

The future of the beef industry as explained by Jason Fry depicts the presently loose definitions and favoring of organically-raised cattle becoming much more standardized and preferred in years to come. These factors mean that Fry Farms is setting itself up

Industry Analysis

currently to anticipate consumer and industry trends shifting toward a generalized business practice that the business already uses.

Definition of Fry Farms’ primary, secondary, and tertiary target markets must be kept, for the most part, all-encompassing and generally broad, and for good reason. The vast majority of individuals will purchase beef, in some shape or form, at some point in their lives. To account for this, Jason Fry lists his business’ target markets as (when combined) any individual between the age of 25-70 years who hold an annual income of $40,000 or greater. Though this broad market segment is divided into primary, secondary, and tertiary subsections by Fry for the sake of professionalism and relevance to the frequency they will do business with the firm, he still intends to market his farm’s beef inventory to the vast majority of the Sturgis population, any anyone else in a greater range who wishes to purchase from the business. In a business to business context, Fry intends to market towards grocers and restaurants that desire organic, quality beef to present to their own customers. These businesses’ organic preferences run parallel to Fry Farms’ own philosophy, and Fry therefore assumes that business will flow naturally between them.

The specific size of Fry Farms’ target market has been generalized to encompass all people within 55 miles of the firm’s Sturgis, Michigan location. This broad-natured pool of customer potential, as previously mentioned, is standard for a business producing an essential or widely accepted consumable product, such as beef.

When determining market share for Fry Farms, Jason Fry accounts for not only the amount of market his business will acquire in the organic beef segment, but also in the general beef market in the Sturgis area. The use of pie charts by Fry to illustrate market share percentages at ideal capacities gives readers an easy to follow connection of the numbers to the overall market size, and Fry’s extra addition of a simple table explaining capacity levels based on animal accommodation makes the entire concept of market share easy to understand, even if the reader has no prior business knowledge.

Fry turned largely to co-owner Jim Fry, whose beef cattle industry knowledge and professional expertise spans 20 years, when determining sales forecasting for Fry Farms. Jim’s recommendations have allowed the firm to set reasonable markups for the product and costs associated with each animal or cut, along with the percentages of beef to be sold through which avenue (retail or business to business). This information is then formatted by Jason Fry into easy to discern tables with a monthly basis.

Advertising decisions for Fry Farms features largely conventional methods, stemming from word-of-mouth, social media, and local publications and radio. The conventionality of said choices is something that Jason Fry took into account when writing his business plan. Because each method is mainstream and used in the everyday lives of the majority of the Sturgis, Michigan population, as well as the rest of the country, it will not prove

Market Analysis

difficult for Fry Farms to reach a vast number of people in a short and cost-effective amount of time.

The family component of Jason Fry’s business concept is played upon heavily in the brand identity of Fry Farms. The title of the firm in itself is simply the shared last name of its father and son owners, and a reflection of the many years of history the Fry family has on the land the farm is build upon. The company’s logo follows the same straightforward design, with the twin “F’s” standing for Fry family ownership, and the horns allowing ignorant customers to connect Fry Farms with the beef product it offers. This concept even applies to Fry Farms’ slogan, which lets potential customers know that the product it produces is done so through useful and accessible technology in combination with organic attention to detail and genuine care for the animals raised.

Fry Farm’s website follows the consistency of a simplistic layout, featuring basic tabular navigational features to allow visitors to learn more about the business. The main function of the website though, lies in its order placement function through which customers can buy product online and request its shipping directly to them at their homes or places of business.

Fry also introduces the concept of philanthropic actions on the part of the business in an effort to give back to the Sturgis community. These actions will nurture and develop networks and relationships with customers in the area, and help to cement Fry Farms as an integral part of the daily lives of Sturgis’ citizens.

The business’s competitors were grouped into categories based on their distance, in miles, from Fry Farms’ geographic location. Each competitor share common traits in that they are feature either mostly or wholly organically raised animals, breed animals for auction or consumption, support a website with easily-accessed information, offer order placement from customers who cannot visit the farm directly, and/or has utilized social media to connect with potential customers. Fry then takes liberty to discern between his competitors and Fry Farms on the bases of price, customer relationship, transparency, and the characteristics of the firms’ product. Fry utilizes these categories to differentiate himself and his business concept from competitors in a manner that is easily understandable for readers, while also displaying competitive advantages that Fry Farm’s intends to implement in its overall strategy. A table is included that ranks each competitor against Fry Farms in each of the aforementioned categories on an “out of 5” scale.

Fry Farm’s pricing strategy is explained in conjunction with explanations of which product cuts will be made available to customers. These explanations help readers associate quantity with price points, and to fully grasp the numbers presented in Fry’s accompanying table. This table lays out price points for any and all cuts offered by each farm, and how they compare to Fry Farms’ prices. Offerings of all cut options by Fry Farms, when many other competitors offer only a percentage of such options, means that the Fry’s hold advantage in product variety, and pricing is placed comfortably between competitors to assure fair and justifiable costs for customers.

Since Fry Farms (prior to implementation of the Three Metric System and update business model) already exists, as a farmstead in Sturgis, Michigan, Jason Fry is able to give accurate mapping photographs of the physical business, and include them in his business plan. These pictures are invaluable helping readers and potential investors to visualize exactly what Fry Farms intends to be, and at what capacity it can raise the kinds of animal figures given in prior sections of the document.

Listing Fry Farms as an LLC (Limited Liability Company) is an educated move on the part of the entrepreneur to avoid the double taxation incurred on corporations, while still restricting the extent that liabilities can develop into more serious issues both inside and outside the business

Father and son business partners Jim and Jason Fry both hold extensive industry knowledge, professional experience, and involvement in the beef raising community. With almost 70 years of combined experience in their field, the two men hold more than adequate cridentials needed to operate Fry Farms and bring out its full potential. Additionally, the acceptance of the possibility of the need for new employees, should the business grow to such an extent that the owners cannot maintain its quality standards on their own, shows dedication and passion for the industry and for the business specifically. Opening Fry Farms to new staff members could produce rapid growth in the company, and even incite enhancements to the quality standards set by the Fry’s as owners.

The farm’s intensions to operate on an hourly daily schedule and to observe holidays show legitimacy as a business entity, especially if outside staffing is pursued.

Jason Fry’s specifying of technological modernization of his father’s already existing farm concretely explains how use of such implementations fosters efficiency during customer interactions and transaction processing. Cutting-edge devices such as the Square credit card-processing unit, Three Metric System of livestock monitoring, and the push for shipping flexibility are all components of current business practice that Fry Farms will need to utilize to create an environment customers are familiar with and can easily interact with to purchase what they demand and therefore generate revenue for the farm.

Jason Fry’s schedule of important criteria for successful launch and initial growth of Fry Farms includes essential licensing acquisitions, and also reviews capacity levels for the

Location

Management

Milestone Schedule

first three years of operations to remind readers of the exact pace at which the business will experience systematic growth of product density.

With a large piece of Fry Farm’s risk factors stemming from an industry that is experiencing atrophy in terms of consumption figures, the business will have to rely on marginal luck to remain sustainably profitable from year to year. Declining popularity of beef in homes across the country poses a problem that high-quality, organic beef may not be able to balance. Additionally, the general saturation of the Sturgis area with beef operations means competition is naturally high for Fry Farms, and said quality and organic factors will need to be constantly utilized and kept to standard if the firm wants to remain at the forefront of beef demand in the region.

From a more controllable standpoint, reaching niche customers can be easily accomplished through the use of effective advertising methods. Organic favoring consumers can be reached easily through community involvement by the business and the use of easily accessible social media pages that can be accessed from any form of media.

Fry’s exit strategy possibilities are largely conventional. The selling or handing down of the business to a family member or outside investment entity is mainstream among entrepreneurs. Cantrell’s listing of such alternatives is a smart and sensibly calculated choice.

Fry Farm’s is unique in its capital investment in that the business requires no outside funds from investment entities. The $65,000 capital requirement is completely cover by owners Jim and Jason Fry.

Specific organizational expenses at startup are conveniently listed in table format to show exact values. This simple illustration allows readers to see exactly how much funding is intended for running capital at the start of operations. Bearing this in mind, readers can, from a general perspective, get a feel for what types of concerns and objective the entrepreneur has at the time of startup, and which objectives he will choose to complete first.

Fry also makes another mention of the already present assets the Fry farmstead has acquired over the years, and its monetary value. This allows investors to assess the overall net worth of Fry Farms, both now and in the future, bar adjustments.

Critical Risks

Exit Strategy

Financials

Assumptions regarding key financial components are then listed in paragraph format for the reader to get a grasp on. Jason Fry goes into detail in each subsection to illuminate factors involved in each components final calculation before being places on final financial statements. Revenue based on animal and cut specification retouches on variety of Fry Farms product, and highlights versatility in utilizing the firm’s resources to the greatest possible extent. Cost of goods sold annotates the costing involved with raising each individual animal from birth to harvest. A table and pie chart noting each specific cost involved with this is listed further into the section. Depreciation differentiates itself between organic and manmade assets that Fry Farms controls. Animals, while subject to depreciation, offer salvage value for processing or auction, but buildings and equipment suffer depreciation based on construction or purchasing dates. Crop seasonality, pertaining mainly to the corn grown on the farm, becomes a factor in costing due to the need for a grain elevator, which is needed only at certain points throughout the year. Fry illustrates the specifics of costing for usage of the grain elevator via table/pie chart further into the section.

Fry opts for a very simple breakeven analysis, showing that Fry Farms will in fact break even in year one of operations.

In his revenue model, Fry specifies to the fullest extent which product will be available for consumer sale and with which cut options. As previously stated, offering the prospects of whole animal purchase, as well as half, half-half, and cut selections increase the number of options customers can choose, and therefore caters to a wider range of demands. Additionally, the inclusion of corn yield and mature animal auction profits give Fry Farms a diverse range of revenue streams, and deep breadth of customer potential.

Backtracking is then conducted to further explain each organizational cost as it pertains to the modernization of the business and the implementing of the Three Metric System. LLC filing fees come as standard costs for any aspiring company, but the costs associated with technological assets such as tablets, smartphones, website construction, and RFID implementation are based largely on the need to offer both increased customer convenience and ease of operating procedures for the business owners.

Fry then goes in to expenses associated with operating the business. These costs hold value to readers in that they paint a picture into exactly who, what, when, and why components and procedures occur for Fry Farms to meet their self-set standards and maintain upmost customer satisfaction.

The firm’s key financial indicators are shown in table form and are based on capacity for the first three years of Fry Farms’ operations. Jason Fry has include relevant ratios that give readers and [maybe] more importantly individuals or entities considering investment a look into how much capital the business is generating, what kind of monetary values a full liquidation of the company would create, how much revenue is received for each animal processes and/or sold, how many sales occur regarding each animal, and what amount of income is returned to the business or owners from the firm’s assets and injected owners’ equity. Finally, the annual net income for Fry Farms is listed.

Fry gives income statements, balance sheets, and cash flow statements for the first three years of Roots’ operations. Each statement is well formatted and contains relevant and calculated data as it pertains to the firm’s assets, liabilities, equity, income, expenses, and cash management.

It is within Jason Fry’s appendices that readers with little to no business knowledge can fully grasp the concepts discussed in the plan itself. The sections offer a plethora of relevant information regarding Fry Farm’s its market, and the beef industry in general. Fry gets sufficiently specific in his attention to detail in the appendices, refusing to leave a term un-defined or a number un-explained.

There are summaries for the reader some of the different animal raising strategies used by farm across the beef industry. These descriptions include feed makeup and cow head (herd number). Fry also includes a table referencing the amount of animals being harvested per month and the amount of feed needed to sustain those animals. Additionally, Fry includes graphics illustrating cut location on a typical head of cattle, and the names and consumption methods of each cut.

Included in the appendices is a second table noting corn crop costs and profitability based on those costs. These figures help readers understand why Fry Farms would choose to stretch for corn production in a primarily beef-oriented establishment.

Fry next places charts and graph outlining the state and forecasting of the red meat industry in the best and worst case scenarios. These graphics are shown with confidence intervals, to accurately reflect how likely a given scenario could be.

Graphs illustrating overall industry sales of red meat are also included. These graphs specify how each meat product is packaged and kept before and after sale. Additional graphs outline customer preferences regarding re-sealable packaging options.

Infographics detail market size and fluctuations, consumer preferences, and market penetration percentages.

License and patent applications are made available to readers to allow them intimate knowledge as to how each application is filled out, processed, and accepted or declined.

Survey drafts are included to allow readers to see exactly what questions generated demographic information and preference trends among interviewed customers and industry experts.

Financial Statements Years 1 - 3

Appendices

A screenshot of Fry Farms’ potential website is shown to illustrate functionality and easy access to the firms online resources and order placement possibilities.

Various ESRI spreadsheets are included in the appendices documenting demographic potential and diversity for readers and investors to see for themselves exactly what makeup of people inhabit the Sturgis, Michigan area.

Jason Fry includes his personal resume, invoking a more intimate connection between reader and author. Investors can also see a bulleted list of Fry’s accomplishments, experience, and cridentials when deciding for themselves whether or not to invest in such an individual and his business.

Fry includes depreciation schedules for buildings and equipment used in Fry Farms’ operations and animal housing. These schedules allow investors to analyze longevity of assets owned by the business and assess when capital will be needed to update components and at what costs. Inventory reporting is also done to associate animal asset totals with sales and revenue brought in for each individual unit. These reports are also done for shipping, advertising, and insurance costs.

Finally, Jason Fry’s patented technological advancement, the Three Metric System. Is explained in the greatest detail of the business plan thus far. Fry includes pictures each device necessary in implementing his system into the Fry Farms infrastructure, and even uses pictures to simplify the process. The data collected from said devices is also shown as it would appear before being entered onto Fry Farms’ website for customer viewing, as well as how it appears on the website itself. Finally, a background on how Jason Fry came to create his Three Metric System, and an explanation of each step in the process that data follows from the readings taken from the animal to the values that appear on the firm’s website is listed accordingly. These components work together to makes sure that readers and investors fully grasp the concept of the Three Metric System, and appreciate its value to the Fry Farms’ competitive advantage, and potentially the beef industry as a whole.

Both Jessica Cantrell and Jason Fry have composed riveting business plans detailing innovative, expertly calculated ideas. The two plans do in fact share many qualities.

They both display astute attention to detail, from calculations of financial key points, to explanations of business concepts, to the illustration of aspects within the plan that otherwise ignorant readers may fail to comprehend. Reading each document requires surprisingly little prior knowledge (to a point), and readers can finish the task knowing more than when they began, and this could only be accomplished through the entrepreneurs’ hard work, unwavering commitment to finding just the right credibility to prove a point, and successful conveyance of their own dreams and ideas to those who do

Plan Comparison

not understand them. The plausibility of each plan is not ever called into question, and the real successes when presenting to investors or venture capitalists will hinge almost entirely on the interpersonal and communication skills of the entrepreneur to bring what they have written on paper together in a coherent, professional, and dynamic presentation.

From a specific viewpoint focusing on the business ideas themselves, both entrepreneurs have opted to pursue organic product and/or service identities for their businesses. These factors bring innovation and good will into markets that without them can be damaging to people and animals involved, and to the environment we all live in. Both Jessica Cantrell and Jason Fry convey intimate care for their firms’ organic natures, and clearly define what it means to be both environmentally conscious and potentially successful at the same time. Readers are brought into the mindset, through reading each plan, that organic products and services serve a more premium, higher-quality market filled with people who resonate humanity.

While both business plans hold true to conventional and professional formatting, writing styles, and inclusion of industry, market, financial, and survey figures, it is the content which is established through these components that truly differs. Not to say that each entrepreneur’s basic philosophy and understanding of what it means to own and operate a business is differing, but in that many of the concepts both plans share on the surface can in fact be differentiated between on a personal level.

For example, though both firms value high quality, premium, and organic products/services, the fact remains that one business will bring a product to market that its customers will ingest into their bodies as its primary purpose. This fact means that only the highest standardization and quality control must be used to insure that people are safe when they consume the product. Whilst the same is true for the opposing business plan, cosmetic product, in most cases, are used only outside the body to improve physical appearance. The quality must remain largely the same to insure customer satisfaction and protection, but the margin for error among such an industry is larger in comparison to ones featuring consumable goods.

Possibly the most prevalent differentiation between the two concerns Fry Farms’ lack of need for venture financing. Jason Fry explains to readers in his business plan that all financing and startup costs for his concept will come from owner injections and currently held assets. Cantrell, in contrast, is seeking a loan agreement with a bank. The lack of debt that Fry Farms will attain through this financing method means the business has multiple legs up on Roots and other startup business plans. The business can then profit from their lack of debt, and begin to break even and generate revenue that much faster.

Plan Contrasting

The presence of a patent in Fry Farms’ asset collection also differentiates it from firms such as Roots who do not claim any specified intellectual property. This exclusivity for competitive advantage by the business separates it from competitors and other relevant models. The flexibility of licensing options for the patent to other firms can also generate revenue for the business, and may even benefit the pertaining industry as a whole. Overall, Fry Farms’ patent presence gives it additional options for revenue generation, and presents greater opportunity to succeed then firms that must adhere to conventional, industry standard products that competitors will also have access to.

Both products (and services) talked about in the Roots and Fry Farms business plans differ greatly from the product currently being conceptualized by the Sonic Shirts development team. There are however some model characteristics for and decisions implemented in the plans that Sonic Shirts could profusely benefit from including in its own.

Generally, many of the supporting costs both businesses chose to incur, such as accounting retainers, basic and advanced utilities, insurance, licensing, and depreciation have gone largely unconsidered by the development team up to current point. These lesser-known costs must be calculated, evaluated, and presented to readers of Sonic Shirts’ business plan to show thoroughness and preparedness for costing beyond conventionality.

The wealth of source material and the specific sources used by the entrepreneurs to establish credibility for their businesses can be utilized in similar fashion by Sonic Shirts to prove professional plausibility of its product model, marketing strategies, and target customers. Correct implementation of citations, footnotes, and source information will affect acceptance or denial of Sonic Shirts’ business plan. Jessica Cantrell and Jason Fry both do excellent jobs of bringing professional knowledge, defining research, and real customer preference into their business models, and using them to their advantage in outlining a competitive, proven business plan. Sonic Shirts should strive to do the same.

Financial correctness is imperative for business plan consideration by investors and business professionals, and both Cantrell and Fry show their savvy with their pertaining financial figures and use them to accurately display how revenue, capital, and equity all play key roles in maintaining their business concepts, sustaining profitability, and reaching industry presence for longevity. The minds behind Sonic Shirts’ product development must strive to have complete understanding of all financial variables and components that go into prosperous startup of its strategies.

Overall, the knowledge and commitment to one’s business idea, and the passion displayed by Jessica Cantrell and Jason Fry to see their plans to launch is need to insure success for Sonic Shirts. The ultimate factor to take away from both entrepreneurs and their plans is to maintain a positive attitude, grind through difficulty, and display a commitment to one’s idea that exudes confidence and potential for success to those who question it.

Regards to “Sonic Shirts”