Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $1,500 |
Stationery etc. | $400 |
Office Supplies | $500 |
Kitchen Supplies | $1,000 |
Janitorial Supplies | $400 |
Insurance | $719 |
Rent | $5,182 |
Utilities | $1,085 |
Sales and Marketing | $2,800 |
Website Development | $4,000 |
Leasehold Improvements | $140,000 |
Licenses/Permits | $422 |
Construction Fees / Permits | $35,000 |
Outdoor Sign | $3,500 |
Miscellaneous | $200 |
Total Start-up Expenses | $196,708 |
Start-up Assets | |
Cash Required | $34,000 |
Start-up Inventory | $9,000 |
Other Current Assets | $8,000 |
Long-term Assets | $42,000 |
Total Assets | $93,000 |
Total Requirements | $289,708 |
What’s For Dinner? is a privately held Sub Chapter S-corporation. This allows for the protection allowed by the corporate legal structure combined with the “fall through” Generally Accepted Accounting Principals that will make personal financial sense to the corporations principle owners. The principle owners of What’s For Dinner? are Alan and Kim Kirby; each owns a 50% stake in the company. This company operates under the jurisdiction of the State of Texas and the United States of America.
What’s For Dinner? will provide its customers with twelve home cooked meals that they will freeze until customers are ready to serve them. These meals will be chosen from a set menu designed weekly by us and the meals will be prepared in our location. All of the planning, shopping, food preparation, recipe directions and containers will be provided to help make it as easy as possible for our customers to enjoy their time at our establishment.
Our customers will prepare their meals in a fun, party-like atmosphere where they can relax, meet new friends or spend time with old friends while preparing dinners for their families for the next month.
The Key benefits our customers will receive from using What’s For Dinner? are:
Our menus and portion sizes are tailored for the group and individual customers. Seniors get added benefits, with diabetic, low-cholesterol, and low-sodium choices. Families can increase portion sizes for a small fee to accommodate more children or guests.
The Dallas area’s meal preparation market is untapped. As a matter of fact, there is no other business of this kind in the Dallas/Ft. Worth area. Though there are no exact replicas of our company there are some types of companies that we would have to consider to be indirect competitors. These include such companies and service professionals as caterers and those that will come to your home and prepare meals for you to freeze. What’s For Dinner?, at this time, has few direct competitors, with exception to area restaurants and your basic home cooking. At the inception of What’s For Dinner?, there will be no type of company like ours in the area, thus giving us the overwhelming competitive advantage of first entry.
The What’s For Dinner? market is primarily in the Collin County area: Plano, Frisco, Allen and McKinney. We will be focusing on households in these areas that have more than one person. Primarily, those households whose income is over $50,000, with someone under the age of 18 living there. As a secondary target market, we will market to the elderly population in the aforementioned areas. Initially, the greater portion of our customers will be busy, working class people and the growing group of single-parent families, but it will be of great benefit now and in the future to market our services to the highest growing population demographic – senior citizens.
The following statistics were taken from Table DP-1 Profile of General Demographic Characteristics: 2000 for Collin County.
What’s For Dinner? has three distinct target populations:
We will market several menus designed for the diet needs of the senior populace (diabetic, low cholesterol, low sodium), with pick-up and drop-off coordinated with a local senior-transportation center. All prep and measuring will be done beforehand, so they will need only to stir and combine ingredients. In addition to meeting their practical needs, we will create the social experience that this group consistently hunts for, and help them to enhance their lifestyle through a higher quality of health.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Households with children | 10% | 73,864 | 81,250 | 89,375 | 98,312 | 108,144 | 10.00% |
Households with no children | 10% | 58,404 | 64,244 | 70,668 | 77,735 | 85,509 | 10.00% |
Seniors | 12% | 25,852 | 28,954 | 32,428 | 36,319 | 40,677 | 12.00% |
Total | 10.33% | 158,120 | 174,448 | 192,471 | 212,366 | 234,330 | 10.33% |
These target market segments were chosen based on their greater need for our services. Families with children are very busy, and they can end up spending a great deal on fast food and junk food because they don’t have time to cook healthy meals at home. Busy working couples and individuals without children are also busy, and may not have the skills or desire to plan and cook entire meals at home just for themselves; they can spend a lot on going out to eat. Seniors have special challenges in obtaining and preparing quality ingredients to feed themselves, including the loneliness of cooking for oneself. Options like “Meals on Wheels” are generally last-resorts, and many would prefer alternate food preparation arrangements, if any were available at a reasonable price – fixed incomes can be hard on the palate.
Our marketing strategies for all groups will emphasize our relatively inexpensive, fun, and easy approach to preparing healthy meals. We will vary our serving sizes, menu options, and level of preparation for each group; the family-size entree just right for a family of four makes no sense for a single individual. Different sized families have different needs, and it will be our goal to look to accommodate most family sizes through our variations in serving size.
Our service is unique among Dallas meal preparation options. There are no direct competitors for What’s For Dinner? The closest competitors are personal chefs, who will come to your home and prepare your chosen meals for you and freeze them, at a very high price. Our target market segments cannot afford personal chefs.
Our indirect competitors are area restaurants. These include family-oriented, inexpensive diners and casual restaurants, as well as fast food and takeout. We will generally not be competing with upscale, adult-oriented restaurants, since those are “special occasion” locations, and do not fulfill local residents’ daily meal needs.
Our competitor restaurants compete on price, perceived convenience, and atmosphere. They succeed when they convince customers that going out to eat is an affordable “treat” that is easier and more pleasant than preparing meals at home. In truth, the restaurants with the lowest prices also offer poor quality food and atmosphere, and the struggle to get children ready, out the door, and have them behave in a restaurant setting can make these choices less appealing in families’ realities than in their imagination. For all customers, the time it takes to get ready, travel to a restaurant, order dinner, eat, pay, and get home make going out to a eat a full-evening’s commitment – hardly the convenience it claims.
With the introduction of What’s For Dinner? to the Dallas market, we will revolutionize the way that the community looks at cooking convenience. Our prices really are much lower than restaurant meals, with much higher quality meals. In addition, our “convenience” comes in two ways – preparing meals at a set time, outside the daily routine, so they are ready in advance, and eating and minimal clean-up right in the customer’s own home, which saves time and energy at the end of a long day.
Even though What’s For Dinner? has no direct competitors, we will set up our business as if we are entering an already aggressive and hostile market. This is aimed at helping us to become successful through a constant drive for increased service model efficiencies and marketing effectiveness. We will strive to excel in customer service excellence, continuing our menu varieties and achieving the highest standards for our food products. As owners, we feel that word of mouth and customer retention are significant factors in our success. Our convenient locations, sanitary facilities, competitive pricing structure and honorable reputation will all play a part in satisfying our customers and increasing our clientele at an accelerating rate. What’s For Dinner? will focus on these factors and always strive to improve our business model and service offerings. We will strive to be the very best in our industry and will not rest until we not only have the largest market share in our industry, but also have the most satisfied customers.
The buying patterns of our customer base will be affected by our initial meal prep party prices. We have concluded through our exhaustive focus market groups that we could set our prices high, since there is no direct competitor, but we feel that to attract and retain customers and be able to steadily grow our customer base, so we should price ourselves at a lower level first. By setting ourselves at the lower end of our pricing range, we will not only gain the attention of the vast majority of our target markets, but we will also be able to start our revenue streams off with an upward growth pattern. The price that we will choose will be reasonable for our customers and be adequate for the business to maintain a gross margin around 25%.
What’s For Dinner? will gradually gain market share in the four focal geographic markets (Plano, Frisco, Allen and McKinney) by leveraging its competitive edges. These edges are superior attention to detail in the local food service market, a revolutionary food-servicing outlook and excellent nutritional meals at competitive price. These advantages have been unavailable in this market for some time. We will market our services with a targeted advertising campaign and networking.
What’s For Dinner? will begin with a critical competitive edge: we have no direct competitors in the Dallas/Ft. Worth area. By being the first-mover and (for at least a while) the only service of our kind, we will have the initial market buzz that is normally reserved for the first company of its kind into a given market. Our positioning is very hard to match, but only if we maintain focus on our strategy, marketing, business development, and fulfillment of quality and customer service will we be able to continually grow and outpace the “copy-cat” businesses that are sure to follow our market lead. We are aware that the tendency to relax due to lack of competition could weaken our competitive edge. What’s For Dinner? will be operated as if our direct competitors were conducting the same service business that we are in and we will be looking for additional enhancements to our operating procedures from day one.
In addition to our unique positioning, we offer the following advantages to our customers:
As a food service business, our main goal is to provide high quality food with excellent customer service. Our challenge as a new company is to quickly establish a reputation for such quality among our potential markets. With this in mind, the initial focus of our marketing strategy will be to get our name and reputation out to the public to create “buzz.” Creating brand recognition for our new concept will be the first measurable milestone in our marketing strategy.
This will be one of the most important factors when measuring success within the first couple of months after inception. The basis for our ideology is simple; the more people that hear our name and become familiar with our services, the more people will use it. The marketing campaign will involve a targeted advertising campaign, different specials to entice the customers to try our business and a very intense networking campaign. All of these tactics will be used to help gain a loyal clientele aimed at fostering our happy customer base.
At start-up, we will begin a focused advertising campaign toward target segments in our geographical area. We will update our advertising campaign regularly to fill in gaps based on follow-up research: do people recognize our name? Do they know what we do? What is their impression of our services’ costs and quality?Marketing campaigns will work via:
What’s For Dinner? will also have a networking campaign that will start with the owner’s contacts and friends attending our first months’ meal prep parties. This will be the “word of mouth” campaign that will feature:
In the food service business, as in any customer service intensive business, sales revenue is our lifeblood. The way in which we present ourselves to our customers and deal with the public will determine the success of our business. The food service industry is facilitated by repeat business and referrals. In order to continuously compete against other food providers, we need to enhance our repeat customer service business by making this our main sales focus. We cannot expect to have a satisfied customer by selling them one month’s of meals and then never seeing them again. We must make our sales strategy revolve around making the customer’s experience with us the best it possibly can, and further, making every effort to get our current customer base to visit us again. It is much more expensive to get new customers than to keep the customers you already have. Our customers cannot stop eating, but they could stop using our services. We will be selling our service to our current customers each time they come, in order to have repeat business and new business through their word of mouth.
These are just a few of the ways we will sell to our customers to gain repeat business and word of mouth advertising:
The What’s For Dinner? website will serve as a productive and consistent selling tool. Our website will be set up to explain what we offer and the many benefits customers will receive for using our meal prep services. The website will help “close the sale;” customers will be able to register for the meal prep party they would like to attend and accepting payments online. This will be our main source of registrations for parties. The ease of use allowed by the Internet will be key to driving our customer pipeline. Our sales and marketing campaigns will help focus our customer traffic through our website, so that people can see how easy it will be to interact with our company. This element of efficiency will also help enhance our bottom line by allowing for a 24 hour customer service mechanism without having to keep a customer rep staffed all the time.
Through our research of other businesses like ours in Seattle, WA and Omaha, NE, we found that all of them quickly increased their sales over their first year. All of these researched companies went from their first month of 100 customers on average to over 1,000 customers within their first year of business. One company opened in Seattle against two other competitors and now has over 2,000 customers with three different locations.
We are optimistic that What’s For Dinner? will grow and prosper just as these other companies have, but we want to set reasonable forecasts for growth. We have therefore taken a conservative approach in preparing our Sales Forecast Table.
The following table and chart give a run-down on forecasted sales. We have forecasted that sales will increase each month with the exception of the summer months, when vacations and other seasonal activities may reduce purchases. Once we get our first few customers, our sales will increase through customer retention, and gaining new customers through networking. We expect sales to grow incrementally over the first year, reaching profitability by the fifth month of operation.
After the first year of operation, we expect sales to continue increasing, from 10% the first year up to 25% by the third year. As sales increase, we will make modifications to our facility and hire new employees to share in the work. Our proposed location allows room for expansion. Based on our research, and the size of our potential market, we expect to reach close to one million dollars in sales by the end of 2005.
Our direct costs of sales listed here are inventory used up in sales, including the meal ingredients and additional supplies, such as themed-party decorations, containers, napkins, and so on. Fixed operating expenses are listed in the Profit and Loss.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Party Fees | $857,674 | $1,072,093 | $1,340,116 |
Other Fees | $24,505 | $30,631 | $38,289 |
Total Sales | $882,179 | $1,102,724 | $1,378,405 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Ingredients | $612,624 | $765,780 | $957,225 |
Other Supplies | $44,109 | $55,136 | $68,920 |
Subtotal Direct Cost of Sales | $656,733 | $820,917 | $1,026,146 |
The accompanying table lists important program milestones, with dates and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan -vs. – actual analysis, and we will follow-up often to discover variances and course corrections.
What’s For Dinner? will have several milestones, including:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Plan Completion | 7/1/2003 | 9/1/2003 | $250 | Alan Kirby | Administration |
Site Selection | 8/22/2003 | 9/1/2003 | $0 | Alan Kirby | Administration |
Architect Designs | 7/20/2003 | 9/1/2003 | $5,000 | Alan Kirby | Administration |
Licensing | 9/1/2003 | 10/1/2003 | $500 | Alan Kirby | Administration |
Site Construction | 9/15/2003 | 12/15/2003 | $0 | Alan Kirby | Administration |
Website Design | 10/1/2003 | 12/15/2003 | $1,280 | Alan Kirby | Web |
Business Funding Secured | 9/1/2003 | 12/30/2003 | $0 | Alan Kirby | Administration |
Site Set-Up | 11/1/2003 | 1/15/2004 | $0 | Alan Kirby | Administration |
First Party | 1/15/2004 | 1/30/2004 | $0 | Alan Kirby | Administration |
Profitability | 1/1/2004 | 12/1/2004 | $0 | Alan Kirby | Administration |
Totals | $7,030 |
The What’s For Dinner? website will be the virtual business card, party scheduler and payment acceptance source all rolled into one. It will showcase our services and highlight the benefits of using our company. The website will be a crucial portal for party scheduling, as well as having availability cross-referenced with party menus. Customers will also use this website to register for their parties and pay for them using PayPal, which accepts MasterCard, Discover Card, Visa, or e-checks.
The What’s For Dinner? website will be a strategic and very important part of our marketing mix. It will be used as a marketing tool to attract new customers, and as a sales tool to schedule parties, select menus, and pay. We will be promoting our website in all marketing programs, including newspaper ads, yellow page ads, business cards and flyers. We will also purchase targeted key word searches to help potential customers find our website. In addition, our website will feature prominently on all napkins, packaging, and receipts which current customers bring home, making repeat business easy and convenient.
Our main internet strategy is to direct the majority of our potential clients to our website first, as the introduction to our services, prices, and availability. This will reduce the time necessary for staff to provide basic information over the phone, allowing them to answer customer questions and provide more details, once customers know who we are, what we do, and how we might help them.
To encourage customers to use the website, we will offering special discounts to those who register their parties with our website and pay online. Our website must be easy to access and navigate, and must answer every customer question we can anticipate. It must use a legitimate, well-respected security feature and a reliable payment method. If it is all these things, many of our repeat customers will be happy to save time by researching party options and scheduling them online.
Clearly, we expect website use to be highest among younger, internet-savvy customers. We anticipate that our senior customers will use phone and direct contacts for most scheduling and payment interactions.
The What’s For Dinner? website will be developed with the technical resources of a local web design artist. He has designed websites for over 325 businesses, most with e-commerce capabilities. He is designing a database interface which will let us adjust the schedule and track click/sales ratios, and easily update menu offerings.
As the website development progresses, he will work with a local graphic artist we have hired to come up with the website logo and graphics. We are still researching hosting possibilities, but feel our needs will be best served by subcontracting out the hosting of the site and the technical back-end supporting.
The What’s For Dinner? management team will initially consist of the founders/owners themselves, Alan and Kim Kirby. We do not anticipate the need to hire anyone else on a full time basis during the first year, because all of the services that a normal small business needs will be outsourced. These services include the e-commerce infrastructure, accounting, marketing, and legal services. We do plan to employ one part-time employee from the beginning to help with cleaning and dishwashing.
Alan and Kim have 15 years of experience in the food service and entertainment industries, as a party planner and personal chef, respectively. Until the second year, Kim will continue to work part-time as a personal chef for several couples in Plano, doing the prep work and menu planning for What’s for Dinner? in the mornings. Alan will host the majority of the parties, after having prepared test batches of every menu item with Kim. The owners anticipate possibly hiring local high-school students as sous-chefs in years 2 and 3; Kim’s experience with local restaurants has shown that these students can often do quite well, paid only minimally in exchange for professional restaurant and food preparation training. Alan’s existing contacts with local social and community groups, and Kim’s ongoing relationships with food distributors, specialty grocers, and high-end clients will all help to generate high sales from early in the first year.
Throughout the first two years we will conduct an aggressive cost analysis as to what our capabilities are as owners and with what activities we need assistance.
The following table summarizes our personnel expenditures for the first three years, with compensation increasing from $34K the first year to about $60K in the third. We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. The detailed monthly personnel plan for the first year is included in the appendices.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Alan Kirby | $24,000 | $30,000 | $40,000 |
Kim Kirby | $5,000 | $7,500 | $10,000 |
Part-time cleaner | $5,000 | $7,500 | $10,000 |
Total People | 3 | 3 | 3 |
Total Payroll | $34,000 | $45,000 | $60,000 |
What’s For Dinner expects strong sales, based on research into our target market, similar businesses in other parts of the country, lack of direct competition, and the experience, reputations, and know-how of its owners/managers. By steadily repaying our long-term loan and holding down costs, we will generate a net profit midway through the first year and increase net worth dramatically by year 3. Our major fixed expenses are payroll and rent.
The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendices.
Three of the more important underlying assumptions are:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 7.00% | 7.00% | 7.00% |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% |
Tax Rate | 24.00% | 24.00% | 24.00% |
Other | 0 | 0 | 0 |
The following chart and table summarize our break-even analysis. With fixed costs of $10,520 per month at the outset (to cover payroll and other operating costs), and variable costs (inventory) at 74% of sales, we need to bill $41,167 to cover our costs. We do not expect to reach break-even until the sixth month into the business operation.
Break-even Analysis | |
Monthly Revenue Break-even | $39,503 |
Assumptions: | |
Average Percent Variable Cost | 74% |
Estimated Monthly Fixed Cost | $10,095 |
What’s For Dinner?’s projected profit and loss is shown in the following table, with sales increasing from $10K the first month to close to $1.4M by the third year. We will reach profitability in the middle of our first year.
We are projecting very conservatively regarding cost of sales and gross margin. Our costs of sales are based on grocery store prices, which will decrease once we are to consistently able to buy our food in larger quantities from a food distributor. This will significantly lower our cost of sales, and increase our gross margin more than in this projection. We prefer to project conservatively so that we make sure we have enough cash.
The Sales and Marketing Expenses vary from the food preparation industry norms. Our Sales and Marketing Expenses will be to consistently maintain our advertising and promotions, while our biggest marketing will be word of mouth from our customers. We are budgeting for a high level of service from our website hosting company and payment processor, since the website is a key component of our Sales and Marketing Strategies.
The detailed monthly projections are included in the appendices.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $882,179 | $1,102,724 | $1,378,405 |
Direct Cost of Sales | $656,733 | $820,917 | $1,026,146 |
Other Costs of Sales | $0 | $0 | $0 |
Total Cost of Sales | $656,733 | $820,917 | $1,026,146 |
Gross Margin | $225,446 | $281,807 | $352,259 |
Gross Margin % | 25.56% | 25.56% | 25.56% |
Expenses | |||
Payroll | $34,000 | $45,000 | $60,000 |
Sales and Marketing and Other Expenses | $3,000 | $3,000 | $3,000 |
Depreciation | $4,200 | $4,200 | $4,200 |
Rent | $53,304 | $54,000 | $54,500 |
Utilities | $13,160 | $14,476 | $15,924 |
Office Supplies | $1,200 | $1,200 | $1,200 |
Insurance | $3,000 | $3,000 | $3,000 |
Payroll Taxes | $0 | $0 | $0 |
Accountant | $3,000 | $3,200 | $3,500 |
Lawyer | $1,000 | $1,100 | $1,100 |
Bank Charges | $180 | $180 | $180 |
Website Payment Fees | $600 | $700 | $800 |
Website Hosting & Support | $1,500 | $1,600 | $1,650 |
Repairs and Maintenance | $3,000 | $3,000 | $3,000 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $121,144 | $134,656 | $152,054 |
Profit Before Interest and Taxes | $104,302 | $147,151 | $200,205 |
EBITDA | $108,502 | $151,351 | $204,405 |
Interest Expense | $17,342 | $15,861 | $14,316 |
Taxes Incurred | $20,870 | $31,510 | $44,614 |
Net Profit | $66,089 | $99,780 | $141,276 |
Net Profit/Sales | 7.49% | 9.05% | 10.25% |
The following cash flow projections show the annual amounts only. Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $882,179 | $1,102,724 | $1,378,405 |
Subtotal Cash from Operations | $882,179 | $1,102,724 | $1,378,405 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $882,179 | $1,102,724 | $1,378,405 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $34,000 | $45,000 | $60,000 |
Bill Payments | $758,414 | $1,055,142 | $1,197,241 |
Subtotal Spent on Operations | $792,414 | $1,100,142 | $1,257,241 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $22,080 | $22,080 | $22,080 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $814,494 | $1,122,222 | $1,279,321 |
Net Cash Flow | $67,685 | ($19,498) | $99,083 |
Cash Balance | $101,685 | $82,187 | $181,270 |
The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. Our negative net worth, due to borrowed capital for start-up, makes a significant increase by the second year, and becomes positive in year three. It is common for start-up businesses to have a negative net worth their first few years.
The monthly estimates are included in the appendices.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $101,685 | $82,187 | $181,270 |
Inventory | $137,714 | $172,142 | $215,178 |
Other Current Assets | $8,000 | $8,000 | $8,000 |
Total Current Assets | $247,399 | $262,329 | $404,448 |
Long-term Assets | |||
Long-term Assets | $42,000 | $42,000 | $42,000 |
Accumulated Depreciation | $4,200 | $8,400 | $12,600 |
Total Long-term Assets | $37,800 | $33,600 | $29,400 |
Total Assets | $285,199 | $295,929 | $433,848 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $148,189 | $81,220 | $99,942 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $148,189 | $81,220 | $99,942 |
Long-term Liabilities | $237,628 | $215,548 | $193,468 |
Total Liabilities | $385,817 | $296,768 | $293,410 |
Paid-in Capital | $30,000 | $30,000 | $30,000 |
Retained Earnings | ($196,708) | ($130,619) | ($30,838) |
Earnings | $66,089 | $99,780 | $141,276 |
Total Capital | ($100,619) | ($838) | $140,438 |
Total Liabilities and Capital | $285,199 | $295,929 | $433,848 |
Net Worth | ($100,619) | ($838) | $140,438 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 2099, Food Preparation, are shown for comparison.
The following table outlines some of the more important ratios from the Food Preparation industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 2099.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 25.00% | 25.00% | 5.54% |
Percent of Total Assets | ||||
Inventory | 48.29% | 58.17% | 49.60% | 11.58% |
Other Current Assets | 2.81% | 2.70% | 1.84% | 22.16% |
Total Current Assets | 86.75% | 88.65% | 93.22% | 53.03% |
Long-term Assets | 13.25% | 11.35% | 6.78% | 46.97% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 51.96% | 27.45% | 23.04% | 27.29% |
Long-term Liabilities | 83.32% | 72.84% | 44.59% | 20.18% |
Total Liabilities | 135.28% | 100.28% | 67.63% | 47.47% |
Net Worth | -35.28% | -0.28% | 32.37% | 52.53% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 25.56% | 25.56% | 25.56% | 30.90% |
Selling, General & Administrative Expenses | 17.88% | 16.00% | 15.03% | 16.61% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.28% |
Profit Before Interest and Taxes | 11.82% | 13.34% | 14.52% | 1.33% |
Main Ratios | ||||
Current | 1.67 | 3.23 | 4.05 | 1.54 |
Quick | 0.74 | 1.11 | 1.89 | 0.98 |
Total Debt to Total Assets | 135.28% | 100.28% | 67.63% | 55.42% |
Pre-tax Return on Net Worth | -86.42% | -15658.38% | 132.36% | 2.12% |
Pre-tax Return on Assets | 30.49% | 44.37% | 42.85% | 4.76% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 7.49% | 9.05% | 10.25% | n.a |
Return on Equity | 0.00% | 0.00% | 100.60% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.91 | 5.30 | 5.30 | n.a |
Accounts Payable Turnover | 6.12 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 42 | 27 | n.a |
Total Asset Turnover | 3.09 | 3.73 | 3.18 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 0.00 | 2.09 | n.a |
Current Liab. to Liab. | 0.38 | 0.27 | 0.34 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $99,209 | $181,110 | $304,506 | n.a |
Interest Coverage | 6.01 | 9.28 | 13.99 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.32 | 0.27 | 0.31 | n.a |
Current Debt/Total Assets | 52% | 27% | 23% | n.a |
Acid Test | 0.74 | 1.11 | 1.89 | n.a |
Sales/Net Worth | 0.00 | 0.00 | 9.82 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Party Fees | 0% | $10,500 | $17,500 | $26,250 | $35,000 | $44,297 | $66,445 | $66,445 | $66,445 | $99,667 | $112,125 | $149,500 | $163,500 |
Other Fees | 0% | $300 | $500 | $750 | $1,000 | $1,266 | $1,898 | $1,898 | $1,898 | $2,848 | $3,204 | $4,271 | $4,671 |
Total Sales | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Ingredients | $7,500 | $12,500 | $18,750 | $25,000 | $31,641 | $47,461 | $47,461 | $47,461 | $71,191 | $80,089 | $106,786 | $116,786 | |
Other Supplies | $540 | $900 | $1,350 | $1,800 | $2,278 | $3,417 | $3,417 | $3,417 | $5,126 | $5,766 | $7,689 | $8,409 | |
Subtotal Direct Cost of Sales | $8,040 | $13,400 | $20,100 | $26,800 | $33,919 | $50,878 | $50,878 | $50,878 | $76,316 | $85,856 | $114,474 | $125,194 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Alan Kirby | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Kim Kirby | 0% | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 |
Part-time cleaner | 0% | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 |
Total People | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
Total Payroll | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
Long-term Interest Rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
Tax Rate | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Direct Cost of Sales | $8,040 | $13,400 | $20,100 | $26,800 | $33,919 | $50,878 | $50,878 | $50,878 | $76,316 | $85,856 | $114,474 | $125,194 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $8,040 | $13,400 | $20,100 | $26,800 | $33,919 | $50,878 | $50,878 | $50,878 | $76,316 | $85,856 | $114,474 | $125,194 | |
Gross Margin | $2,760 | $4,600 | $6,900 | $9,200 | $11,644 | $17,466 | $17,466 | $17,466 | $26,198 | $29,473 | $39,297 | $42,977 | |
Gross Margin % | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | 25.56% | |
Expenses | |||||||||||||
Payroll | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | |
Sales and Marketing and Other Expenses | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Depreciation | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
Rent | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | $4,442 | |
Utilities | $980 | $1,030 | $1,030 | $1,030 | $1,030 | $980 | $980 | $980 | $1,280 | $1,280 | $1,280 | $1,280 | |
Office Supplies | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Insurance | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accountant | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Lawyer | $500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $500 | |
Bank Charges | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | $15 | |
Website Payment Fees | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
Website Hosting & Support | 0% | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 |
Repairs and Maintenance | 15% | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $10,395 | $9,945 | $9,945 | $9,945 | $9,945 | $9,895 | $9,895 | $9,895 | $10,195 | $10,195 | $10,195 | $10,695 | |
Profit Before Interest and Taxes | ($7,635) | ($5,345) | ($3,045) | ($745) | $1,698 | $7,570 | $7,570 | $7,570 | $16,003 | $19,278 | $29,102 | $32,282 | |
EBITDA | ($7,285) | ($4,995) | ($2,695) | ($395) | $2,048 | $7,920 | $7,920 | $7,920 | $16,353 | $19,628 | $29,452 | $32,632 | |
Interest Expense | $1,504 | $1,493 | $1,483 | $1,472 | $1,461 | $1,451 | $1,440 | $1,429 | $1,418 | $1,408 | $1,397 | $1,386 | |
Taxes Incurred | ($2,193) | ($1,641) | ($1,087) | ($532) | $57 | $1,469 | $1,471 | $1,474 | $3,500 | $4,289 | $6,649 | $7,415 | |
Net Profit | ($6,946) | ($5,198) | ($3,441) | ($1,685) | $180 | $4,651 | $4,659 | $4,667 | $11,084 | $13,581 | $21,056 | $23,481 | |
Net Profit/Sales | -64.32% | -28.88% | -12.75% | -4.68% | 0.40% | 6.81% | 6.82% | 6.83% | 10.81% | 11.78% | 13.69% | 13.96% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Subtotal Cash from Operations | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $10,800 | $18,000 | $27,000 | $36,000 | $45,563 | $68,343 | $68,343 | $68,343 | $102,515 | $115,329 | $153,771 | $168,171 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | $2,833 | |
Bill Payments | $480 | $14,790 | $26,201 | $34,869 | $42,144 | $51,001 | $78,542 | $60,501 | $62,351 | $115,990 | $110,789 | $160,756 | |
Subtotal Spent on Operations | $3,314 | $17,624 | $29,034 | $37,703 | $44,977 | $53,834 | $81,375 | $63,334 | $65,184 | $118,824 | $113,622 | $163,589 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | $1,840 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $5,154 | $19,464 | $30,874 | $39,543 | $46,817 | $55,674 | $83,215 | $65,174 | $67,024 | $120,664 | $115,462 | $165,429 | |
Net Cash Flow | $5,646 | ($1,464) | ($3,874) | ($3,543) | ($1,254) | $12,669 | ($14,872) | $3,169 | $35,491 | ($5,335) | $38,309 | $2,742 | |
Cash Balance | $39,646 | $38,183 | $34,309 | $30,766 | $29,512 | $42,181 | $27,309 | $30,478 | $65,969 | $60,633 | $98,942 | $101,685 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $34,000 | $39,646 | $38,183 | $34,309 | $30,766 | $29,512 | $42,181 | $27,309 | $30,478 | $65,969 | $60,633 | $98,942 | $101,685 |
Inventory | $9,000 | $8,844 | $14,740 | $22,110 | $29,480 | $37,311 | $55,966 | $55,966 | $55,966 | $83,948 | $94,441 | $125,922 | $137,714 |
Other Current Assets | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
Total Current Assets | $51,000 | $56,490 | $60,923 | $64,419 | $68,246 | $74,822 | $106,146 | $91,274 | $94,444 | $157,917 | $163,075 | $232,864 | $247,399 |
Long-term Assets | |||||||||||||
Long-term Assets | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 | $42,000 |
Accumulated Depreciation | $0 | $350 | $700 | $1,050 | $1,400 | $1,750 | $2,100 | $2,450 | $2,800 | $3,150 | $3,500 | $3,850 | $4,200 |
Total Long-term Assets | $42,000 | $41,650 | $41,300 | $40,950 | $40,600 | $40,250 | $39,900 | $39,550 | $39,200 | $38,850 | $38,500 | $38,150 | $37,800 |
Total Assets | $93,000 | $98,140 | $102,223 | $105,369 | $108,846 | $115,072 | $146,046 | $130,824 | $133,644 | $196,767 | $201,575 | $271,014 | $285,199 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $13,927 | $25,047 | $33,474 | $40,476 | $48,362 | $76,525 | $58,484 | $58,476 | $112,355 | $105,422 | $155,646 | $148,189 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $13,927 | $25,047 | $33,474 | $40,476 | $48,362 | $76,525 | $58,484 | $58,476 | $112,355 | $105,422 | $155,646 | $148,189 |
Long-term Liabilities | $259,708 | $257,868 | $256,028 | $254,188 | $252,348 | $250,508 | $248,668 | $246,828 | $244,988 | $243,148 | $241,308 | $239,468 | $237,628 |
Total Liabilities | $259,708 | $271,795 | $281,075 | $287,662 | $292,824 | $298,870 | $325,193 | $305,312 | $303,464 | $355,503 | $346,730 | $395,114 | $385,817 |
Paid-in Capital | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 |
Retained Earnings | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) | ($196,708) |
Earnings | $0 | ($6,946) | ($12,144) | ($15,585) | ($17,270) | ($17,090) | ($12,439) | ($7,780) | ($3,113) | $7,972 | $21,553 | $42,608 | $66,089 |
Total Capital | ($166,708) | ($173,654) | ($178,852) | ($182,293) | ($183,978) | ($183,798) | ($179,147) | ($174,488) | ($169,821) | ($158,736) | ($145,155) | ($124,100) | ($100,619) |
Total Liabilities and Capital | $93,000 | $98,140 | $102,223 | $105,369 | $108,846 | $115,072 | $146,046 | $130,824 | $133,644 | $196,767 | $201,575 | $271,014 | $285,199 |
Net Worth | ($166,708) | ($173,654) | ($178,852) | ($182,293) | ($183,978) | ($183,798) | ($179,147) | ($174,488) | ($169,821) | ($158,736) | ($145,155) | ($124,100) | ($100,619) |
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By Melissa Quinn , Jacob Rosen
Updated on: July 11, 2024 / 9:40 AM EDT / CBS News
Washington — Voters in recent weeks have begun to hear the name "Project 2025" invoked more and more by President Biden and Democrats, as they seek to sound the alarm about what could be in store if former President Donald Trump wins a second term in the White House.
Overseen by the conservative Heritage Foundation, the multi-pronged initiative includes a detailed blueprint for the next Republican president to usher in a sweeping overhaul of the executive branch.
Trump and his campaign have worked to distance themselves from Project 2025, with the former president going so far as to call some of the proposals "abysmal." But Democrats have continued to tie the transition project to Trump, especially as they find themselves mired in their own controversy over whether Mr. Biden should withdraw from the 2024 presidential contest following his startling debate performance last month.
Here is what to know about Project 2025:
Project 2025 is a proposed presidential transition project that is composed of four pillars: a policy guide for the next presidential administration; a LinkedIn-style database of personnel who could serve in the next administration; training for that pool of candidates dubbed the "Presidential Administration Academy;" and a playbook of actions to be taken within the first 180 days in office.
It is led by two former Trump administration officials: Paul Dans, who was chief of staff at the Office of Personnel Management and serves as director of the project, and Spencer Chretien, former special assistant to Trump and now the project's associate director.
Project 2025 is spearheaded by the Heritage Foundation, but includes an advisory board consisting of more than 100 conservative groups.
Much of the focus on — and criticism of — Project 2025 involves its first pillar, the nearly 900-page policy book that lays out an overhaul of the federal government. Called "Mandate for Leadership 2025: The Conservative Promise," the book builds on a "Mandate for Leadership" first published in January 1981, which sought to serve as a roadmap for Ronald Reagan's incoming administration.
The recommendations outlined in the sprawling plan reach every corner of the executive branch, from the Executive Office of the President to the Department of Homeland Security to the little-known Export-Import Bank.
The Heritage Foundation also created a "Mandate for Leadership" in 2015 ahead of Trump's first term. Two years into his presidency, it touted that Trump had instituted 64% of its policy recommendations, ranging from leaving the Paris Climate Accords, increasing military spending, and increasing off-shore drilling and developing federal lands. In July 2020, the Heritage Foundation gave its updated version of the book to then-White House Chief of Staff Mark Meadows.
The authors of many chapters are familiar names from the Trump administration, such as Russ Vought, who led the Office of Management and Budget; former acting Defense Secretary Chris Miller; and Roger Severino, who was director of the Office of Civil Rights at the Department of Health and Human Services.
Vought is the policy director for the 2024 Republican National Committee's platform committee, which released its proposed platform on Monday.
John McEntee, former director of the White House Presidential Personnel Office under Trump, is a senior advisor to the Heritage Foundation, and said that the group will "integrate a lot of our work" with the Trump campaign when the official transition efforts are announced in the next few months.
Candidates interested in applying for the Heritage Foundation's "Presidential Personnel Database" are vetted on a number of political stances, such as whether they agree or disagree with statements like "life has a right to legal protection from conception to natural death," and "the President should be able to advance his/her agenda through the bureaucracy without hindrance from unelected federal officials."
The contributions from ex-Trump administration officials have led its critics to tie Project 2025 to his reelection campaign, though the former president has attempted to distance himself from the initiative.
Some of the policies in the Project 2025 agenda have been discussed by Republicans for years or pushed by Trump himself: less federal intervention in education and more support for school choice; work requirements for able-bodied, childless adults on food stamps; and a secure border with increased enforcement of immigration laws, mass deportations and construction of a border wall.
But others have come under scrutiny in part because of the current political landscape.
Abortion and social issues
In recommendations for the Department of Health and Human Services, the agenda calls for the Food and Drug Administration to reverse its 24-year-old approval of the widely used abortion pill mifepristone. Other proposed actions targeting medication abortion include reinstating more stringent rules for mifepristone's use, which would permit it to be taken up to seven weeks into a pregnancy, instead of the current 10 weeks, and requiring it to be dispensed in-person instead of through the mail.
The Alliance Defending Freedom, a conservative legal group that is on the Project 2025 advisory board, was involved in a legal challenge to mifepristone's 2000 approval and more recent actions from the FDA that made it easier to obtain. But the Supreme Court rejected the case brought by a group of anti-abortion rights doctors and medical associations on procedural grounds.
The policy book also recommends the Justice Department enforce the Comstock Act against providers and distributors of abortion pills. That 1873 law prohibits drugs, medicines or instruments used in abortions from being sent through the mail.
Now that the Supreme Court has overturned Roe v. Wade , the volume states that the Justice Department "in the next conservative administration should therefore announce its intent to enforce federal law against providers and distributors of such pills."
The guide recommends the next secretary of Health and Human Services get rid of the Reproductive Healthcare Access Task Force established by the Biden administration before Roe's reversal and create a "pro-life task force to ensure that all of the department's divisions seek to use their authority to promote the life and health of women and their unborn children."
In a section titled "The Family Agenda," the proposal recommends the Health and Human Services chief "proudly state that men and women are biological realities," and that "married men and women are the ideal, natural family structure because all children have a right to be raised by the men and women who conceived them."
Further, a program within the Health and Human Services Department should "maintain a biblically based, social science-reinforced definition of marriage and family."
During his first four years in office, Trump banned transgender people from serving in the military. Mr. Biden reversed that policy , but the Project 2025 policy book calls for the ban to be reinstated.
Targeting federal agencies, employees and policies
The agenda takes aim at longstanding federal agencies, like the National Oceanic and Atmospheric Administration, or NOAA. The agency is a component of the Commerce Department and the policy guide calls for it to be downsized.
NOAA's six offices, including the National Weather Service and National Marine Fisheries Service, "form a colossal operation that has become one of the main drivers of the climate change alarm industry and, as such, is harmful to future U.S. prosperity," the guide states.
The Department of Homeland Security, established in 2002, should be dismantled and its agencies either combined with others, or moved under the purview of other departments altogether, the policy book states. For example, immigration-related entities from the Departments of Homeland Security, Justice and Health and Human Services should form a standalone, Cabinet-level border and immigration agency staffed by more than 100,000 employees, according to the agenda.
If the policy recommendations are implemented, another federal agency that could come under the knife by the next administration, with action from Congress, is the Consumer Financial Protection Bureau.
The agenda seeks to bring a push by conservatives to target diversity, equity and inclusion, or DEI, initiatives in higher education to the executive branch by wiping away a slew of DEI-related positions, policies and programs and calling for the elimination of funding for partners that promote DEI practices.
It states that U.S. Agency for International Development staff and grantees that "engage in ideological agitation on behalf of the DEI agenda" should be terminated. At the Treasury Department, the guide says the next administration should "treat the participation in any critical race theory or DEI initiative without objecting on constitutional or moral grounds, as per se grounds for termination of employment."
The Project 2025 policy book also takes aim at more innocuous functions of government. It calls for the next presidential administration to eliminate or reform the dietary guidelines that have been published by the Department of Agriculture for more than 40 years, which the authors claim have been "infiltrated" by issues like climate change and sustainability.
Immigration
Trump made immigration a cornerstone of his last two presidential runs and has continued to hammer the issue during his 2024 campaign. Project 2025's agenda not only recommends finishing the wall along the U.S.-Mexico border, but urges the next administration to "take a creative and aggressive approach" to responding to drug cartels at the border. This approach includes using active-duty military personnel and the National Guard to help with arrest operations along the southern border.
A memo from Immigration and Customs Enforcement that prohibits enforcement actions from taking place at "sensitive" places like schools, playgrounds and churches should be rolled back, the policy guide states.
When the Homeland Security secretary determines there is an "actual or anticipated mass migration of aliens" that presents "urgent circumstances" warranting a federal response, the agenda says the secretary can make rules and regulations, including through their expulsion, for as long as necessary. These rules, the guide states, aren't subject to the Administration Procedure Act, which governs the agency rule-making process.
In a post to his social media platform on July 5, Trump wrote , "I know nothing about Project 2025. I have no idea who is behind it. I disagree with some of the things they're saying and some of the things they're saying are absolutely ridiculous and abysmal. Anything they do, I wish them luck, but I have nothing to do with them."
Trump's pushback to the initiative came after Heritage Foundation President Kevin Roberts said in a podcast interview that the nation is "in the process of the second American Revolution, which will remain bloodless if the left allows it to be."
The former president continued to disavow the initiative this week, writing in another social media post that he knows nothing about Project 2025.
"I have not seen it, have no idea who is in charge of it, and, unlike our very well received Republican Platform, had nothing to do with it," Trump wrote. "The Radical Left Democrats are having a field day, however, trying to hook me into whatever policies are stated or said. It is pure disinformation on their part. By now, after all of these years, everyone knows where I stand on EVERYTHING!"
While the former president said he doesn't know who is in charge of the initiative, the project's director, Dans, and associate director, Chretien, were high-ranking officials in his administration. Additionally, Ben Carson, former secretary of Housing and Urban Development under Trump; John Ratcliffe, former director of National Intelligence in the Trump administration; and Peter Navarro, who served as a top trade adviser to Trump in the White House, are listed as either authors or contributors to the policy agenda.
Still, even before Roberts' comments during "The War Room" podcast — typically hosted by conservative commentator Steve Bannon, who reported to federal prison to begin serving a four-month sentence last week — Trump's top campaign advisers have stressed that Project 2025 has no official ties to his reelection bid.
Susie Wiles and Chris LaCivita, senior advisers to the Trump campaign, said in a November statement that 2024 policy announcements will be made by Trump or his campaign team.
"Any personnel lists, policy agendas, or government plans published anywhere are merely suggestions," they said.
While the efforts by outside organizations are "appreciated," Wiles and LaCivita said, "none of these groups or individuals speak for President Trump or his campaign."
In response to Trump's post last week, Project 2025 reiterated that it was separate from the Trump campaign.
"As we've been saying for more than two years now, Project 2025 does not speak for any candidate or campaign. We are a coalition of more than 110 conservative groups advocating policy & personnel recommendations for the next conservative president. But it is ultimately up to that president, who we believe will be President Trump, to decide which recommendations to implement," a statement on the project's X account said.
The initiative has also pushed back on Democrats' claims about its policy proposals and accused them of lying about what the agenda contains.
Despite their attempts to keep some distance from Project 2025, Democrats continue to connect Trump with the transition effort. The Biden-Harris campaign frequently posts about the project on X, tying it to a second Trump term.
Mr. Biden himself accused his Republican opponent of lying about his connections to the Project 2025 agenda, saying in a statement that the agenda was written for Trump and "should scare every single American." He claimed on his campaign social media account Wednesday that Project 2025 "will destroy America."
Congressional Democrats have also begun pivoting to Project 2025 when asked in interviews about Mr. Biden's fitness for a second term following his lackluster showing at the June 27 debate, the first in which he went head-to-head with Trump.
"Trump is all about Project 2025," Pennsylvania Sen. John Fetterman told CNN on Monday. "I mean, that's what we really should be voting on right now. It's like, do we want the kind of president that is all about Project '25?"
Rep. Jim Clyburn of South Carolina, one of Mr. Biden's closest allies on Capitol Hill, told reporters Monday that the agenda for the next Republican president was the sole topic he would talk about.
"Project 2025, that's my only concern," he said. "I don't want you or my granddaughter to live under that government."
In a statement reiterating her support for Mr. Biden, Rep. Frederica Wilson of Florida called Project 2025 "MAGA Republicans' draconian 920-page plan to end U.S. democracy, give handouts to the wealthy and strip Americans of their freedoms."
Two GOP senators under consideration to serve as Trump's running mate sought to put space between the White House hopeful and Project 2025, casting it as merely the product of a think tank that puts forth ideas.
"It's the work of a think tank, of a center-right think tank, and that's what think tanks do," Florida Sen. Marco Rubio told CNN's "State of the Union" on Sunday.
He said Trump's message to voters focuses on "restoring common sense, working-class values, and making our decisions on the basis of that."
Ohio Sen. J.D. Vance raised a similar sentiment in an interview with NBC's "Meet the Press," saying organizations will have good ideas and bad ideas.
"It's a 900-page document," he said Sunday. "I guarantee there are things that Trump likes and dislikes about that 900-page document. But he is the person who will determine the agenda of the next administration."
Jaala Brown contributed to this report.
Melissa Quinn is a politics reporter for CBSNews.com. She has written for outlets including the Washington Examiner, Daily Signal and Alexandria Times. Melissa covers U.S. politics, with a focus on the Supreme Court and federal courts.
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Free Download: Sample Food and Beverage Business Plan Templates. The food and beverage sector is booming. Restaurant openings rose 10% in 2023 compared to 2022 — even higher than in pre-pandemic years. From fine dining to food trucks, farmers to brewers, and wholesalers to coffee makers, there are opportunities across the food and beverage ...
2. Write a business plan. Create a business plan that thoroughly explains your business model, operations, pricing strategy, and financial projections. 3. Handle health, safety, hygiene and legal compliance. Food and beverage is a highly regulated industry with additional legal, health, and safety requirements.
Step 1: Ideation and Market Positioning. A great food business starts with a compelling concept that stands out in the food service industry. It's about identifying a unique angle or niche - whether it's a focus on health-conscious meals, ethnic cuisines, or innovative food products.
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5) Menu. Every restaurant needs a good menu, and this is the section within your restaurant business plan that you describe the food you'll serve in as much detail as possible. You may not have your menu design complete, but you'll likely have at least a handful of dishes that serve as the foundation of your offerings.
2. The projected profit and loss (P&L) statement. Since the business plan is done way before you open your restaurant you'll need to make some educated guesses for your P&L statement. Estimate costs and sales based on your restaurant's size, target market and the local competition.
Step 3: Set up your business. Once you've studied your market, you know where there's a hole that needs to be filled, and you've taken some time to create a business plan, you're ready to ...
Your restaurant business plan company overview should include: Purpose: The type of restaurant you're opening (fine dining, fast-casual, pop-up, etc.), type of food you're serving, goals you ...
If you're ready to start a restaurant, you can download our free small restaurant business plan template from our library of over 550 sample business plans. Get started today, and discover why businesses that plan grow 30% faster than those that don't. More restaurant business plan examples: Food truck business plan; Coffee shop business plan
Sample Business Plans for Food Industry 1. Charcuterie Business Plan. Charcuterie is a display of prepared meats paired with cheeses and plain vegetables on a traditional board. Charcuterie is the culinary art of preparing meat products such as bacon, salami, ham, sausage, terrines, galantines, ballotines, pâtés, and confit professionally.
Take the leap and give your business every chance at success. So to help you get started, we've pulled together an 8-step beginner's guide, with insider tips to give you a head start. 1. Make a solid Business Plan. The first thing you'll want to do before making any investment is do your research, diligently.
Here you go, download our free restaurant business plan pdf, and start writing. This intuitive, modern, and investment-ready template is designed specifically for restaurants. It includes step-by-step instructions & examples to help in creating your own restaurant business plan.
Starting a food business, like anything else, comes with its rewards and challenges. The global pandemic has led to a pent-up demand for visiting restaurants, bars and other food establishments. While most food businesses have shifted focus to curbside pickup and delivery, the restaurant industry's profits are expected to rise 15% in 2021.. The imminent boon is fantastic news, but one of the ...
Choosing a Food & Beverage Business Plan. This category itself has 40+ business plan templates for various food and restaurant businesses. With many similar business types and templates, you may not find the most suitable one through manual scrolling. Here are the steps to consider while choosing the most suitable business plan template.
The executive summary of a food business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which you will present in full in the rest of your business plan. Start with a one-line description of your food company. Provide a short summary of the key points in each section of your business plan ...
A food business involves preparing, cooking and selling food to customers. It can take a whole host of forms, like restaurants, cafes, food trucks, bakeries (learn how to start a baking business), catering services (see how to write a catering business plan) or even online food delivery.Food businesses cater to customers' desire for delicious, convenient and satisfying meals, providing them ...
A business plan is an essential tool for any entrepreneur looking to start a food and beverage business. It outlines the goals and strategies for your company, and serves as a roadmap for success. In this guide, we will walk you through the process of creating a business plan for your food and beverage business, covering everything from market ...
Business Development: The U.S. Small Business Administration (SBA) can assist you with developing a business plan for your food or beverage company.
Project 2025 is a conservative coalition's plan for a future Republican U.S. presidential administration. If voters elect the party's presumed nominee, Donald Trump, over Democrat Joe Biden in ...
On top of everything else, Project 2025 also aims to roll back protections for LGBTQ Americans, further reduce women's access to abortion, cut overtime protections for 4.3 million workers, slash ...
WASHINGTON (AP) — The Environmental Protection Agency will not be able to enforce a key rule limiting air pollution in nearly a dozen states while separate legal challenges proceed around the country, under a Supreme Court decision Thursday.. The EPA's "good neighbor" rule is intended to restrict smokestack emissions from power plants and other industrial sources that burden downwind ...
The US job market is still a pillar of strength for the broader economy but it's not running at the same red-hot pace of a few years ago. The unemployment rate edged higher, to 4.1%, in June ...
Numerous people compared it to a star-centric system like the N.B.A., but others worried that higher and higher pay had gotten out of hand and could strain the law firms forced to stretch their ...
NEW YORK (AP) — If you've noticed that you're paying more than before for the same amount of groceries, you're not the only one. Inflation is easing slightly, but grocery prices are still high — up 21% on average since inflation started to surge more than three years ago. "When inflation rises, it reduces people's ability to afford groceries by increasing the overall cost of ...
Professor Joan Sabaté has spent decades studying how eating plants impacts our health. He's discovered some serious health benefits linked to nut, berry, and avocado consumption. His daily diet ...
Businesses without good backups and tested DR plans are more likely to go out of business due to data loss, reputational damage and the other risks they take by not having a DR plan in place. Organizations with a DR plan can reap strong benefits, such as meeting legal requirements and having a better understanding of the resources they need.
The Planning and Development Department approved the preliminary site development plan for the project. Plans for a new Publix warehouse for frozen food storage are moving forward in Jacksonville ...
Making a plan can be as simple as writing down a list on paper or in your phone's notes app. Or, you can use apps that specifically help you with meal planning such as AnyList or Mealime . Shop ...
The start-up expenses include: Rent expenses include a deposit and rent for one month at $28.75 per square foot for 1,854 square feet, in the total amount of $5,182. Utilities expenses for one month. Insurance deposit and first month. Sales & Marketing expenses including stationery, brochures, outdoor signage.
In a statement reiterating her support for Mr. Biden, Rep. Frederica Wilson of Florida called Project 2025 "MAGA Republicans' draconian 920-page plan to end U.S. democracy, give handouts to the ...