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A SAMPLE BUSINESS PLAN FOR
SMALL FOOD BUSINESSES
Rodney B. Holcomb
Associate Professor, Dept. of Agricultural Economics
Browning Endowed Professor of Food Science, Food & Agricultural Products Center
Philip Kenkel
Professor, Dept. of Agricultural Economics
Bill Fitzwater Endowed Chair for Cooperative Studies
Linda Blan-Byford
(Former) Business Planning and Marketing Associate
Food & Agricultural Products Center
Oklahoma State University
January 2006
Why Develop a Business Plan?
In the book The Entrepreneur’s Manual, Richard M. White, Jr. states that
business plans are “road maps” for business creation: “You identify your origin, select a
destination, and plot the shortest distance between the two points.”
True, a business plan is essentially a blueprint for a business. However, it also
serves many other purposes:
A business plan is a detailed blueprint for the activities needed to establish a business
(i.e. the details of a product or service, the market for that product or service, and the
management of the business providing that product or service).
A business plan is also the ‘yardstick’ by which a business owner measures success in
meeting stated goals and objectives.
Also, a business plan is a tool for obtaining a loan from a lending agency, or for
attracting venture capital.
What Does a Business Plan Look Like?
There is no standard format for a business plan, but there are many common
components of a business plan:
Executive Summary (providing a general overview of the plan’s main points)
Table of Contents
(Brief) Background and History
Business Goals and Objectives
Description of Products/Services
Market Description/Assessment
Competition Assessment
Marketing Strategies
Manufacturing Plans
Pro Forma Financial Analysis
Contingency Plans
Many business plans will also include appendixes with additional information
related to the business, its operations, its owners/managers, marketing/promotional plans,
etc.
Of course, the best way to illustrate a business plan is to provide one. The
following plan for a completely fictional business is used for a monthly entrepreneur
workshop at Oklahoma State University’s Food & Agricultural Products Center, entitled
“Food Business Basics: A Guide to Starting Your Own Food Business.” This mock
business plan focuses on a whipped topping business, but the format is appropriate for
any small food business.
Business Plan
Fancy’s Foods, LLC.
2409 Oak Hollow Drive
Antlers, OK 74523
(580) 298-2234
Keith Bean
Marianne Bean
December 1, 1998
Executive Summary
Marianne and Keith Bean have been involved with the food industry for several
years. They opened their first restaurant in Antlers, Oklahoma in 1981, and their second
in Hugo in 1988. Although praised for the quality of many of the items on their menu,
they have attained a special notoriety for their desserts. After years of requests for their
flavored whipped cream toppings, they have decided to pursue marketing these products
separately from the restaurants.
Marianne and Keith Bean have developed several recipes for flavored whipped
cream topping. They include chocolate, raspberry, cinnamon almond, and strawberry.
These flavored dessert toppings have been used in the setting of their two restaurants over
the past 18 years, and have been produced in large quantities. The estimated shelf life of
the product is 21 days at refrigeration temperatures and up to six months when frozen.
The Beans intend to market this product in its frozen state in 8 and 12-ounce plastic tubs.
They also intend to have the products available in six ounce pressurized cans. Special
attention has been given to developing an attractive label that will stress the
gourmet/specialty nature of the products.
Distribution of Fancy’s Foods Whipped Dream product will begin in the local
southeastern Oklahoma area. The Beans have an established name and reputation in this
area, and product introduction should encounter little resistance.
Financial analyses show that the company will have both a positive cash flow and
profit in the first year. The expected return on equity in the first year is 10.88%
Table of Contents
Executive Summary ........................................................................... 2
Background and History .................................................................... 4
Description of Products ..................................................................... 4
Market Description ............................................................................ 4
Competition ........................................................................................ 5
Marketing Strategies .......................................................................... 5
Manufacturing Plans .......................................................................... 6
Financial Projections .......................................................................... 6
