Business Plan Presentation Stephen Leask § Arvind Kumar § Stephanie Hughes ENGAGING SASKATOON’S ONLINE- SAVVY RESIDENTS & THEIR TASTEBUDS

WHAT IS ? Source:

MOBILE FOOD SERVICES INDUSTRY 253 Businesses 79.2% Profitable Net Profit: 19.2% of Revenue Sources: Answers Yahoo; 2006 Industry Canada Profile

SOCIAL MEDIA Facebook, You Tube, Twitter, Flickr – 48% increase in use – 49% Canadians use daily – 61% turn to social media when researching potential purchases Sources: Canada/UPI / ; cnet News Articlehttp:// Canada/UPI / “... it’s not just a registration system, it’s a marketing channel.” Businesses exploiting 2-way channel

SOCIAL MEDIA MARKETING “Utilizes social networking and user- generated content platforms to promote a product” Sources: “Involves creating and participating in a dialogue with the target audience, rather than forcing an advertisement upon them” “Social networks can be extremely effective channels for building product evangelism”

TARGET MARKET Ages 16 – 50 Actively engaged in social media Source:

Source:

MARKETING MIX $3.75 / serving Mobile by name, mobile by nature – High traffic areas – Major events – Social media channels Delectable treat uniquely distributed through customer engagement Facebook, Twitter, Signage

NAME: GELATO MOBILE Message Nudge GELATO MOBILE WILL BE AT THE CENTRE MALL TODAY! FIRST 2 PEEPS TO FIND US AND SAY “GELATO” GET A FREE SCOOP!

OPERATIONS Location: Mobile by name, mobile by nature Average Business Cycle Supply Analysis – Jerry’s Gelato – Mr Cool Ice Cream Truck Rental Capital Budget Operational Expenses

OPERATIONS (Expenses) Variable Overhead Costs – Maintenance for Truck $ 1,000 – Fuel for Truck$ 3,511 – Power for Cold Plates$ 250 – TOTAL$4,761 Fixed Overhead Costs – Rental of Truck$ 3,250 – Insurance$ 1,000 – Business License$ 100 – Business Incorporation$ 265 – Telephone/Internet$ 450 – TOTAL$5,065

HUMAN RESOURCES Job Description – Owners – Coop Student (Supervisor) – High School Student Scheduling Training Labour Costs: $12.50/hr Average

FINANCIALS Startup Capital: $6,000 ($2,000/owner) No Borrowing Required Positive Net Income Year 1 of Operations Income and NPV highly sensitive to sales Estimated Customers (2009): 844 hrs of Ops x 20 customers/hr = 16,880 Revenue = 16,880 x $3.75 = $63,300

FINANCIALS Year Sales Revenue 63,300 68,127 71,371 74,615 77,859 Cost of Goods Sold 25,257 25,888 26,535 27,199 27,879 Gross Margin 38,043 42,239 44,835 47,416 49,980 Total Expenses 29,279 29,739 35,382 36,266 37,977 Net Income Before Taxes 8,765 12,499 9,454 11,150 12,003 Income Taxes 1,632 2,265 1,713 2,020 2,175 Net Income(Loss) 7,133 10,234 7,741 9,129 9,828 Net Present Value (NPV) 30,612 IRRN/A

FINANCIALS Scenario Analysis ScenarioNPVIRRAvg Annual Net Income Base Case$30,612N/A$8,813 Worst Case($35,889)N/A($6,990) Best Case$91,668N/A$23,342 WorstBest Change in Sales-25%25% Change in NPV$66,501.00$61,056

CONCLUSION Gelato Mobile is a unique and innovative concept Based on financial projections, a small profit is possible Sales is the key critical success variable Delivery and marketing of the concept is crucial for success

Q & A