A crucial step in finding out how to open a frozen yogurt business is writing a detailed business plan. Your frozen yogurt business plan plays several vital roles: it shows lenders the viability of your business, helps you gain an in-depth understanding of all aspects of your frozen yogurt shop, and maps your business strategy for the first few years. While writing a business plan may seem like a daunting task, it is easier than you might think. To write your own frozen yogurt business plan, just follow this helpful guide detailing each section and the information it should contain:
1. Executive Summary
Although this section comes first, it generally is written last. It is a one to two page synopsis of your frozen yogurt business plan that includes:
- Size of market
- Business / profitability model
- Path to success
2. Company Summary
- Company history if a franchise; if independent, your start-up plan (a breakdown of funding requirements: assets, liabilities, and expenses)
- Location and facilities
3. Business Description
Provide detailed information about your frozen yogurt shop:
- Type of mix
- Other products – frozen yogurt cakes, baked goods, cake pops, etc.
- Location features – outdoor seating, drive-through, etc.
4. Industry Analysis
Present frozen yogurt industry statistics, trends, and forecasts. Include specific statistics and future prospect forecasts from reputable research companies such as Technomic and IBISWorld.
5. Customer/Market Analysis
- Identify your specific target customers
- Examine the demographics of your target group: numbers of target customers in your area, geographical location, target customer growth, average income, etc.
- Detail customer needs, including past actions (how much frozen yogurt has been purchased in the last month) and future predictions (when asked, local customers said they would purchase frozen yogurt x times in the future)
6. Competition Analysis
Offer an in-depth look at your competition:
- Direct – other frozen yogurt shops
- Indirect – other dessert shops, bakeries, etc.
- Your competitive advantage –list the reasons customers will choose your shop rather than your competition’s, such as more flavors, organic options, gluten free, etc.
7. Marketing Plan
Provide the specific details of your strategy for penetrating the frozen yogurt market:
- Milestones – list the time frame and cost of important project milestones
- Marketing Strategy – methods you will use to approach your target markets
- Pricing Strategy – set prices for your frozen yogurt products by calculating your costs, conducting a breakeven analysis (see section 9), and comparing your products with other local frozen yogurt shops. Explain how your pricing is competitive.
- Sales Strategy – describe how you will sell your frozen yogurt to customers and the level of service you will provide
- Sales Forecast – make a three-year projection of sales based on information from competitors, local traffic, and industry market data
8. Management Summary
- Organizational Structure
- Management Team – introduce your management team, their skills and the parts they will play in your business
- Personnel Plan – number of employees needed, hours they will work, and wages (include yourself)
9. Financial Plan
Provide monthly or quarterly information for the first year; annual information for the next two years.
- Projected income statement (profit and loss) – show revenue, expenses and cost
- Projected balance sheet – summation of your company’s worth
- Break-even analysis – determine at which point sales will exceed cost and you will start to make a profit
- Projected cash flow – consists of estimated sales figures, expected cash disbursements, and the reconciliation of the two
- Assumptions – explain the methods you used to produce your figures
A full set of the financial projections and charts used in your frozen yogurt business plan should be placed in the Appendix, along with any other supporting documentation, such as partnership letters or expanded competitor reviews.
New frozen yogurt franchise owners need to keep a close eye on finances. Calypso’s yogurt shop POS is the most affordable in the industry, featuring integrated credit/debit and gift card processing to eliminate the need to purchase additional equipment. The integrated Tare weighted scales of Calypso’s frozen yogurt POS helps your bottom line by reducing the weight of the frozen yogurt by the weight of the cup automatically with no need for recalibration, so you can process more sales per hour. Contact Calypso today at 800-771-7100 for more information on Calypso’s best POS systems for yogurt shops.