Launch PlanFortune 500 Cookies

231 Forest St.Babson Park, MA 02457

Alexander Wagner231 Forest St, Box #407

FME Section 12Babson Park, MA 02457

(978) 204-6629awagner3@babson.edu

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Table of Contents Executive Summary……………………………………………………………………………....3 Company Overview………………………………………………………………………………5 Operations………………………………………………………………………………………...6 Sales……………………………………………………………………………………………....9 Accounting……………………………………………………………………………………….11 Information Technology………………………………………………………………………....13 Human Resources, Communications, and Organizational Structure…………………………….15 Risk Assessment………………………………………………………………………………....19 Appendices……………………………………………………………………………………….20

A. Schedule of Start-up Costs B. Schedule of Cash Budget (overview) C. Pro-Forma Income Statement (overview) D. Schedule of Cash Budget (weekly by month) E. Pro-forma income statement (weekly by month) F. Breakeven Analysis G. Sales Projections H. Financial Assumptions

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Executive Summary Fortune 500 Cookies is a company founded and operated by first year undergraduate students at Babson College. The idea of the business is to allow customers to customize handmade fortune cookies by choosing from a database of over 50 unique messages. Fortune 500 Cookies will also offer pre-made packs of cookies based on popular themes such as “good luck”, “I miss/love you” and, our most popular theme “misfortune cookies”. The main supplier is a family-owned business in Maryland and they have provided us with many options to make the cookies more customizable by offering a number of different colored and flavored fortune cookies as well as being able to dip them in different types of chocolates. These cookies are packaged in cellophane, which is 100% biodegradable, at the facility in Maryland and they never leave the packaging until the customer opens them.

What drives the profitability of this business is the low cost per cookie, which is rounded to about $0.10 a piece. Fortune 500 Cookies will be offering consumers standard packs of 5, 10, and 20 cookies. From the market survey, the most popular pack size and price was 10 cookies at $3. The demand for the cookies increased as the size of the packs increased. The price of the product is so low that rather than struggling to acquire individual customers at a higher price, the success of the company relies more on reaching a broad number of consumers at a “no brainer” price point. Everyone within the business will be required to sell because the success of the company is reliant upon being able to pump out a lot of units. The amount of sales required to breakeven is 381 packages of 10 cookies at $3 a package, which is the middle pack size of the Fortune 500 Cookies line, as well as the most popular as reflected by market research. The team currently consists of 12 members who have great experience with a wide variety of business skills, and are also culturally and geographically diverse, which will allow for the cookies to be sold in other countries and in other parts of the United States. The team mutually agreed upon a hierarchical organizational structure, with all executive level positions being at the center of the business. Each executive will have people working under them in order to accomplish the tasks within their respective departments.

Most marketing will be targeted within the Boston area, especially around Babson, Olin and Wellesley (BOW) community, and the town of Wellesley. This area will allow us to market primarily high school and college students, parents, and local businesses. The target market size is estimated to be about 12,500, a rather conservative summation of the students in the BOW area, as well as related adults, and businesses. We predict to be able to sell around a fourth of this number in sales, at 3,750 packages of ten cookies. The finance team will be keeping a close eye on the sales in the early stages after launch and will adjust numbers accordingly to make sure that the profit of the company is optimized within the means of the resources available. The financials within the company are considered to be one of the most crucial aspects of the operation, and the entire company will have bi-weekly meetings accessing the conditions of the business from each team’s perspective. The agenda will include looking at all numbers across all of the departments in order to make decisions on aspects including, but not limited to, inventory

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reorders, marketing expenses and sales quotas. The Human Resources department will set up meeting times through applications such as Doodle to ensure attendance as well as creating an agenda so that the business meeting is as productive as possible. There will be team bonding activities also planned by the HR department. A closer-knit team will lead to a more productive team. There are a few risks associated with the business that should be addressed such as competition, cookies breaking, offensive messages, and even the quality of the cookie potentially not meeting the standard that the business envisions. What makes Fortune 500 Cookies resilient to these risks is the proactive nature of the team to get things done correctly and efficiently, all without cutting corners. Fortune 500 Cookies is committed to redefining gift giving by providing everyone a genuine smile at an affordable price.

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Company Overview

I. Name of BusinessA. Fortune 500 Cookies

II. Mission StatementA. Fortune 500 Cookies is committed to redefining gift giving by putting a creative

spin on a classic product and providing genuine smiles at an affordable price.III. The Product

A. Fortune 500 Cookies is a service that allows customers to send fresh, hand-madefortune cookies to people they care about: friends, children, parents etc. Thecustomers get to choose the message inside, either choosing one of the theme packsor mix and match from over 50 thoughtful messages.

IV. Competitive AdvantageA. Fortune 500 Cookies is an affordable way to make people smile. The products are

made with utmost care by a family business in Maryland, USA, making the producteasily available in a span of a few days, unlike relying on outsourcing to othercountries like China, where there are lags due to different holidays (e.g. ChineseNew Years) and where many workshops use child as labour. The business offerscustomers different themed packs of fortune cookies which have customisedmessages apt for different purposes.

V. ValuesA. As listed in a statement of norms compiled by the team, the members found values

to follow in order to create a successful work environment. The business valuesresponsibility and hold each other accountable to complete quality work. Themembers keep open minds to respect each other's ideas and opinions, yet offerconstructive criticism.

VI. SEERSA. All the fortune cookies are wrapped with cellophane which is made from

regenerated cellulose and is 100% biodegradable, hence minimizing the damage tothe environment. Also, social value will be enhanced as the product will redefinethe art of gift giving, and would lead to make people more happy.

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Operations

The operations team is going to be working very closely with the CFO and the financial division of the company because of how sales focused the company is. In relation to the company, the finance division goes to sales to get daily quotas, and operations will ask finance for the resulting numbers. Operations makes sure the numbers matches the inventory that the company has left. The inventory will be physically checked every week to ensure that not only the numbers match with actual inventory, but also that it is in perfect condition - checking humidity in the storage room, making sure temperature is in check, checking the condition of boxes, and expiration dates. Because so much variety is offered in the particular messages, color and flavor, and individual customization, operations will spend a lot of time sorting through inventory and organizing shipments to ensure that everything smoothly runs in and out of the storage unit.

I. Safety and HealthA. The product is purchased from a certified USA supplier that is health certified. The

food product never leaves the packaging once it is shipped from the supplier, untilit is opened by customers that buy Fortune 500 Cookies.

II. Quotes from Suppliers

Fortune Cookie Price Comparison

Company Quantity Price Per Unit Minimum Price Per Unit My Lucky Fortune 10,000 $940 $ 0.09 50 $ 20 $ 0.40 KC Fortune Cookie Factory 10,000 $1,200 $ 0.12 50 $ 23 $ 0.45 4imprint 10,000 $2,225 $ 0.22 500 $ 200 $ 0.40 Fancy Fortune Cookies 5,000 $1,950 $ 0.39 50 $ 30 $ 0.59 Fortune Cookie Planet 5,000 $450 $ 0.09 12 $ 10 $ 0.83 Personalized Fortune Cookies 65 $27 $ 0.41 1 $ 1 $ 0.60 Good Fortune Cookies 600 $99 $ 0.17 50 $ 18 $ 0.36

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III. Main Supplier A. My Lucky Fortune, Inc.

i. This reliable, family-owned company not only offers the best prices, but have also been hand-making the fortune cookies for over 20 years.

ii. Washington Blvd, Jessup, MD 20794 iii. (410) 690-4463

IV. Backup Supplier

A. KC Fortune Cookie Factory i. $0.12 per unit.

ii. 2737 Minnehaha Ave, Minneapolis, MN 55417 iii. (800) 808-3678

V. Days to Receive the Product

A. It will take as little as two weeks to arrive. It takes the supplier several days to make the cookies, and because they come straight from Maryland, they won’t take that long to ship. It is estimated that it will take around 5 business days for production and 2 business days for shipping.

VI. Landed Cost

A. At 10 units the selling price will be $3 for those that will be delivered within BOW, but outside of BOW, shipping cost will be about $2

B. Shipping cost would be minimum order quantity (10) VII. Minimum Order Quantity

A. Minimum order quantity will be 10 for shipping outside of the Boston/Wellesley region. Otherwise, sales within the school and BOW area can be as little as 3 because the fortune cookies can be delivered in person.

VIII. Keeping Track of Inventory

A. The company’s inventory will be kept safe in a storage room in Wellesley. Deliveries will be made at the end of every week, and in the process the inventory will be checked to make sure the proper amount of inventory is present, and conduct checks on expiration dates and open packages. Refrigeration will not be a problem because of how cold it will be in the months the company sells, but humidity levels will be checked. Inventory will be divided into boxes,which will all be counted to make sure it agrees with the financial statements, to ensure the company is on the route to profitability.

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IX. DeliveryA. Since the company will be starting in the BOW area, orders will be delivered by

hand from person to person. As the company expands, and possibly branches intoBoston schools, the company will deliver in bulk. (Rather than delivering everyorder, the fortune cookies will be shipped once a certain number of orders havebeen placed.) Within the community, there will not be any shipping cost, but as thecompany branches out, a shipping cost will be required.

X. ServicesA. Fortune 500 Cookies is not a service-oriented business, but a sales oriented

business, and will still have to train some of the more shy members to speak up andlearn how to sell B2B and B2C. By the end of working with this company, everysingle member will have had experience in public speaking and marketing.

XI. Information SystemsA. The company will be running a website, which two people will interchangeably

keep running. (It is yet to be known if the website will allow someone to pay online,because that is another thing to worry about).

XII. Environmental, Health, Safety, and Other Social RisksA. Health hazards will be managed in person. The company will keep thorough check

of inventory to prevent molding through humidity, open packages, and other issuesthat comes with dealing with food items. The product should not encounter thatmany issues because the packages are shipped prepackaged and available todistribute when they arrive. The company is going to run into as many problems asany other business that is buying available products and reselling.

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Sales I. B2C Selling

A. Engaging the customer: Fortune 500 Cookies will contact the customers throughthe email list generated during the market research survey, and will continue tobuild the mailing list by collecting emails while selling. The marketing team willuse MailChimp (or similar softwares) to facilitate mass emails. The company willalso use target market segments through Facebook advertising, as well as throughpurchasing space in Babson magazine. Promotional events (on-campus or inBoston) will also be hosted. The company will run contests on social media, andvisually promote products by using Instagram. Twitter will also be used to engagecustomers.

B. Collecting sales receipts and payments: The company will collect online salesthrough e-commerce platform and will collect payments through cash, and possiblyVenmo.

C. Type of data on sales receipt:1. Date/time2. quantity3. unit price4. subtotal5. discounts applied6. taxes7. final price.

II. B2B SellingA. Reaching customers: The team will contact customers by calling them and

marketing the product through the phone. For businesses in the area, arepresentative will also go to the businesses and show them samples. Members ofthe sales team will practice cold-calling and emailing in order to get a foot in thedoor, and then follow up judiciously in order to build a strong relationship with thebusinesses.

B. Potential customers: Boarding schools with Chinese population, Chineserestaurants.

III. Sales MotivationA. Quotas: Weekly quotas will be implemented for sales representatives.

1. Quotas will vary based on level of sales responsibility (role in business)2. Quotas will vary based on B2C and B2B reps.

B. Sales will be tracked based on representative.C. Sales representatives will be expected to follow up with their customers on a

personal level in order to strengthen their relationship and encourage repeat sales.

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IV. Employee TrainingA. Practice by selling to each other and family.B. Undergo sales training workshops.C. Perfect the “Fortune 500 Pitch.”

V. Sales ForecastA. See pro-forma financials spreadsheet in Appendix G.

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Accounting I. Expense Procedures

A. Determining if an Expense is Necessary: Each expense will be voted on withinthe company to make sure that it is something needed in order for the company tofunction properly. The larger expenses will be voted on as an entire team, and thelesser ones will be voted on within the executive level, or within the finance andaccounting team depending on the expense.

B. Deeming an Expense as Reasonable: Costs will be assessed from multiplecompetitors. If the supplier is offering the product at a certain value, a search for analternative will be conducted so that Fortune 500 Cookies can obtain the bestpossible pricing on the fortune cookies. This process, carried out by the operationsdepartment, will be essential to optimizing business performance.

C. Proper Authorization of Expenses: Before every transaction the company makesthat is larger than $100 dollars (on a weekly accounting basis), the team will checkwith faculty at Babson College to make sure that the expense is legal, responsible,and reasonable.

II. Tracking Accounting TransactionsA. Purchases: All invoices will be recorded and filed in a proper manner. The

company will have heavily updated online records of every purchase made by thecompany, and they will be audited weekly with the sales, inventory, and any otheraccounts.

B. Sales: All sales will be tracked and recorded in a group-shared database set up bythe finance team. It will be required for every employee to fill in every saletransaction after they conduct a sale with a customer. The team is planning oncreating a short “survey” that will include all the criteria needed to document eachsale so that the company’s employees can do this with ease without data entrydirectly into a spreadsheet. This will also eliminate any post-entry tampering of thedata. The entire team will be able to record all of the sales through this system andthe company’s teams can review the sales results in order to optimize theperformance of the company.

C. Payables/Receivables: All payables and receivables will be recorded properly onthe balance sheet. The team does not expect to have many liabilities, if even any atall, aside from the initial startup funding provided to us by Babson College. Theonly receivables the team expects to encounter are in business to business sales.

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III. Money Collection and Deposit ProceduresA. Each sale will be accounted for daily as well as the inventory on a weekly basis, to

assure that the number of sales and revenue match accordingly. This will be aweekly responsibility for the Finance and Operations teams.

B. The business plans to accept cash, credit, and debit. The team has budgeted topurchase one credit card reader through PayPal, a company that is seen as a best fitfor fluid operations here on the Babson campus. Currently, the team is also lookinginto using other payment formats such as Venmo, but the finance and operationsteams will look into any potential liability of all of the payment options.

C. Money will be collected from the company’s employees by the CFO every day (ifapplicable), and will be deposited in the FME bank 1-2 times a week. This willensure that the company has a proper amount of cash in the financial accounts tomatch the record of sales and the corresponding inventory.

IV. Cash Safety and ControlA. The company’s employees will be trained properly and also sign contracts that will

include guidelines on how to handle the money/transaction that they will receivefrom any type of customer.

B. Each employee will record each of their sales and will be expected and heldaccountable to provide the exact dollar and cent amount to the CFO when he/shecollects revenue on a weekly basis.

V. Financial Statements (Appendices)A. Schedule of Start-up CostsB. Schedule of Cash Budget (overview)C. Pro-Forma Income Statement (overview)D. Schedule of Cash Budget (weekly by month)E. Pro-forma income statement (weekly by month)F. Breakeven AnalysisG. Sales ProjectionsH. Financial Assumptions

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Information Technology

I. Web Presence Implementation and MonitoringA. The company needs to have a strong mix of a social media and website

presence. For social media the focus will be on Facebook, Twitter, andInstagram. Social media will let members market to Babson students,friends, and families. By advertising Fortune 500 Cookies on social mediaaccounts the company will be able to reach a huge audience. Facebook willhave the best mix of images, text, or even videos about the cookies. Twitterwill be focused on short text pieces to market the cookies. Instagram willfocus on pictures of the product most heavily. A regular website with anordering function, which will be promoted through Google, social media,and other sites will be the main “hub” for the business. It will most likelynot reach as many people as social media, but will have more dedicatedcustomers.

II. Online SecurityA. The company was made aware that there are issues with integrating people’s

credit cards into a website. To combat this the company will be able tointegrate Paypal as a feature to ensure security and safeness of mind for thecustomers.

III. Website Domain and CostA. There is a special website called pagecloud.com which lets allows the

company to create a website with ease (drag and drop features). This websitealso makes it easy for the company to integrate a commerce function, as wellas allow a chosen domain name. This cost does appear in the company’sstartup costs.

IV. Website HostingA. As mentioned prior, pagecloud.com will help the company create and host

the website. Even though it is off campus, the company will just pay them aflat monthly fee. This is properly reflected in the company’s financialstatements.

V. Website Template or Cloud VendorA. Pagecloud.com is a cloud vendor. The way the website works it that you

create your own pictures, charts, etc. and you drop these over a template.You can easily move sections around so that you that making a website isextremely simple and easy. The costs are reflected in the startup cost

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VI. Website TrafficA. Facebook shows who visits the page and creates charts to show traffic

throughout weeks or months. Instagram and Twitter both show who isinterested by seeing who “follows” you. As far as the company’s mainwebsite works, statistics of visits can be added through a special widgets andanalytics tools.

VII. Technology RequirementsA. The business is extremely simple since the company is only selling fortune

cookies. The only “technology” the company is using would be the websitesand social media accounts.

VIII. Technical SupportA. The company will assign a few members from marketing and sales to be

responsible for technical support of the websites and social media accounts.

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Human Resources, Communications and Organizational Structure

I. The Skills and Interests of the Fortune 500 Cookie TeamA. Below are the counts of group members that have the specified skills and interests.

In addition to each skillset is a brief summary of the composition of members. Thiswas the first way that the team’s organizational structure was assessed.

Skill Members Interested

Description

Marketing 7 There is strong marketing talent in this business team, and this skill will play a key factor in driving the sales and ultimately the profit of the company.

Finance 4

Fortune 500 Cookies has a strong financial team with previous experience that will be handling the numbers moving forward.

Management 6

There are a lot of members in the group interested in some sort of management. There are a few gifted natural leaders and it is expected that the business will move forward smoothly with the right structure of management. The specific organization will be discussed later on in this section.

Organization 2 These individuals will be crucial to the team’s success by communicating and setting up meetings for the group, as well as other smaller but important tasks.

Sales 12 Everyone in this business is expected to sell as many products as possible. There will be B2B sales as well as B2C sales, and members within the group have expressed interest in both areas of sales. The product is not a costly one and people will buy it if

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Sales 12 marketed correctly.

Operations 2

Only two members of the team expressed interest in the area of operations. This department has a lot of responsibility to get the product from the supplier in a timely fashion, as well as creating relationships with these manufacturers in order to reduce costs, and increase the efficiency of the company as a whole.

B. In addition to these general skills listed above, some members on the team also havedifferent interests such as sustainability, graphic design, and public speaking.

II. Outsourcing Unknown SkillsA. Collectively, the members on the team cover a very broad set of skills and the

current composition currently does not have any missing skillsets in order to launchand run the business. There are a lot of members in the group that have prior startupbusiness experience so the business will not be encountering any completelyuncharted territory.

B. If the Fortune 500 Cookie team runs into a problem that requires a set of skills thatno one within the current team has experience with, the first resort would be toutilize the resources that Babson offers. If the team has exhausted all resourceswithin the Babson community, the skills will be outsourced at the discretion of theexecutive team if the price is right.

III. Organizational StructureA. All the positions are temporary and will be assessed moving forward. The team will

vote on the lead positions again in January. Additionally, the business chose thestructure for maximum flexibility, and positions were chosen by greatest numberof votes by the entire team.

B. There is the possibility that departments will be rotating within the company inorder for all members to experience all the different sides of business management.

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C. Current Structure:1. CEO: Alexander Wagner: The Chief Executive Officer is responsible for

the general operation of the business. This includes meeting withdepartment heads weekly to check-in regarding their progress, coordinationwith other departments, and general outlook for the week. The CEO willwear many hats and will play a role, to some extent, in each department.The CEO will also be expected to meet sales quotas each week and will beunder constant review by the entirety of the company. Although the CEOwill have executive power and authority to make decisions, the company asa whole has the power to impeach the CEO if they feel as though he/she isnot doing his/her job properly or to a full extent. Impeachment will be basedon a vote/trial process that will be agreed upon by the whole company.While it is not expected that the CEO will be impeached, this measure is putinto place in order to hold them accountable for their actions, or lack thereof.

2. CFO: Wesley Stenger: in charge of all finance and accountingresponsibilities.

a) Raunak Siroyab) Misha Stouklov

3. COO: Laurie Yuan: in charge of all supplier and inventory responsibilities.a) Mikayla Spears

4. CMO/CSO: Jonathan Zinger and Ryan Campbell: in charge of marketingand sales strategies, as well as customer accounts.

a) Shirley Zongb) Tim Zhic) Zein Said

5. VP of HR: Sarah Zazyczny: in charge of group functions, meetings, andteam relations.

IV. Team CommunicationA. Google Hangout - online video chatB. GroupMe - texting chat application

1. Department Chat Groups - these groups will be used for the more micro-communications within the company dealing with specific tasks within thedepartments

a) Marketingb) Finance and Accountingc) Human Resourcesd) Operations

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2. Executive Chat Groupa) This chat includes all the leaders of the individual departments and

the CEO of the company.3. Entire Company Chat

a) This will be used for more organizational and communicationpurposes regarding meetings and important updates.

V. Coordination and Monitoring of WorkA. In an appendix, list the tasks that need to be done at the end of first semester, during

the break, and at the very beginning of second semester. Include the person(s)responsible for each task.

B. The business has a google folder and members of the team sign up for tasks thatthey are held responsible for. Prior to organizational structure the tasks could bechosen at random by group members, but now that there is more organization, thetasks will be divided between members by the executive leaders.

C. End of First Semester1. Launch Plan

a) find structure - this was completed at a previous meeting(12/7/2015), and is outlined in the above section.

b) finish financials - the financials are being reviewed by the financialteam, as well as all the executives, in order to create a solid requestfor funding.

D. Over Break1. Sell and establish a network of customers/businesses

a) mostly B2Bb) creation of the fortunes within the cookies - everyone will be

expected to contribute to this, but there will be a focus on this taskwithin the marketing department. There will be a survey sent out tothe target market in order to gain more insight on popular messages,etc.

E. Beginning of Second Semester1. Setting up website, marketing strategy, and a social media presence2. Establishing inventory3. Sell as many units as possible

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Risk Assessment Fortune 500 Cookies, like any business, has potential risks and challenges. The first regards

the delivery of the cookies from the business to the customers not on campus. To tackle this issue, certain team members who have cars have offered to spend one day a week delivering the cookies to the surrounding area. Mailing is also an option for our customers not in the surrounding area. Delivery of the cookies from the manufacturer to Fortune 500 Cookies could cause damage in the shipping process. The solution for this problem is to order extra cookies to ensure the correct number of cookies in each of Fortune 500 Cookies orders. As with every business, a common concern is not selling enough units. Ways to promote the business include setting up booths in public places, possibly getting an advertisement in the Babson magazine, and forming personal connections with business to sell to. People also may not like the taste of the company’s fortune cookies. In that case, the business could potentially sell chocolate dipped cookies for a slightly higher price. The company may also need differentiation from other fortune cookie companies, and in that case Fortune 500 can offer theme packs not geared toward holidays. The last risk to the team is the messages within the cookies themselves being offensive. All the messages within the cookies will be reviewed with the Babson administration before purchasing through a supplier so there are no issues.

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Appendices: A. Schedule of Start-up CostsB. Schedule of Cash Budget (overview)C. Income Statement (overview)D. Schedule of Cash Budget (weekly by month)E. Income Statement (weekly by month)F. Breakeven AnalysisG. Sales ProjectionsH. Financial Assumptions

Initial InventoryCookies 1,000 packages 988$ Total Initial Inventory 988$

One-Time Organizational CostsCustomized Messages 180$ Message Sorting 350$ Advertising 70$ Branding 30$ Website 63$

Domain Name (GoDaddy) 10$ Domain Email 5$ Search Engine Visibility 24$ Website (PageCloud) 24$

E-Commerce 23$ Shopify 29$ Wix 13$ Weebly 25$ Squarespace 26$

Team Bonding 180$ Total Organizational Costs 896$

Total Identifiable (Hard) Costs 1,884$ Working Capital (WC) -$ Contingency (10%) 188$ Total Start-up Costs 2,072$

10 cookies for $3, cost = $0.988

Schedule of Start-up CostsFortune 500 Cookies

For the Period of: End of January End of February End of March End of April TotalBeginning Cash -$ 1,005$ 2,739$ 5,099$ -$

Packages (10) Sold 425 1,570 1,490 265 3,750 Cookies Sold 4,250 15,700 14,900 2,650 37,500

Packages (10) Left 575 255 265 1,000 1,000 Cookies Left 5,750 2,550 2,650 10,000 10,000

Cash Receipts 1,275$ 4,710$ 4,470$ 795$ 11,250$

Cash DistributionInventory Reorder -$ 1,729$ 988$ -$ 2,717$

Packages - 1,750 1,000 - 2,750 Cookies - 17,500 10,000 - 27,500

Advertising 230$ 1,025$ 930$ 150$ 2,335$ Social Media 150$ 825$ 800$ 150$ 1,925$ Events 80$ 200$ 130$ -$ 410$

Branding -$ 70$ 60$ 10$ 140$ Website -$ 29$ 29$ 29$ 87$ E-Commerce -$ 23$ 23$ 23$ 70$ Miscellaneous 40$ 100$ 80$ 20$ 240$ Total Distribution 270$ 2,976$ 2,110$ 232$ 5,589$

Net Cash Flow 1,005$ 1,734$ 2,360$ 563$ 5,661$ End Cash 1,005$ 2,739$ 5,099$ 5,661$ 5,661$

Loan Repayment (*excluding WC & Contingency) 1,884$ End Cash after Repayment 3,778$

Weekly Cash BudgetFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: End of January End of February End of March End of April TotalSales 1,275$ 4,710$ 4,470$ 795$ 11,250$ COGS 420$ 1,551$ 1,472$ 262$ 3,705$ Gross Margin 855$ 3,159$ 2,998$ 533$ 7,545$

ExpensesCustom Messages 180$ -$ -$ -$ 180$ Message Sorting 350$ -$ -$ -$ 350$ Advertising 300$ 1,025$ 930$ 150$ 2,405$

Social Media 220$ 825$ 800$ 150$ 1,995$ Events 80$ 200$ 130$ -$ 410$

Branding 30$ 70$ 60$ 10$ 170$ Website 63$ 29$ 29$ 29$ 150$ E-Commerce 23$ 23$ 23$ 23$ 93$ Miscellaneous 40$ 100$ 80$ 20$ 240$ Total Expenses 986$ 1,247$ 1,122$ 232$ 3,588$

NIBT (131)$ 1,912$ 1,876$ 301$ 3,957$

Weekly Income StatementFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: 1/18/2016 1/25/2016 End of JanuaryBeginning Cash -$ 545$ -$

Packages (10) Sold 205 220 425 Cookies Sold 2,050 2,200 4,250

Packages (10) Left 795 575 575 Cookies Left 7,950 5,750 5,750

Cash Receipts 615$ 660$ 1,275$

Cash DistributionInventory Reorder -$ -$ -$

Packages - - - Cookies - - -

Advertising 50$ 180$ 230$ Social Media 50$ 100$ 150$ Events -$ 80$ 80$

Branding -$ -$ -$ Website -$ -$ -$ E-Commerce -$ -$ -$ Miscellaneous 20$ 20$ 40$ Total Distribution 70$ 200$ 270$

Net Cash Flow 545$ 460$ 1,005$ End Cash 545$ 1,005$ 1,005$

Weekly Cash BudgetFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: 2/1/2016 2/8/2016 2/15/2016 2/22/2016 2/29/2016 End of FebruaryBeginning Cash 1,005$ 849$ 849$ 633$ 1,658$ 1,005$

Packages (10) Sold 220 400 280 390 280 1,570 Cookies Sold 2,200 4,000 2,800 3,900 2,800 15,700

Packages (10) Left 355 455 175 535 255 255 Cookies Left 3,550 4,550 1,750 5,350 2,550 2,550

Cash Receipts 660$ 1,200$ 840$ 1,170$ 840$ 4,710$

Cash DistributionInventory Reorder 494$ -$ 741$ -$ 494$ 1,729$

Packages 500 - 750 - 500 1,750 Cookies 5,000 - 7,500 - 5,000 17,500

Advertising 200$ 300$ 275$ 125$ 125$ 1,025$ Social Media 200$ 250$ 125$ 125$ 125$ 825$ Events -$ 50$ 150$ -$ -$ 200$

Branding 50$ -$ 20$ -$ -$ 70$ Website 29$ -$ -$ -$ -$ 29$ E-Commerce 23$ -$ -$ -$ -$ 23$ Miscellaneous 20$ 20$ 20$ 20$ 20$ 100$ Total Distribution 816$ 320$ 1,056$ 145$ 639$ 2,976$

Net Cash Flow (156)$ -$ (216)$ 1,025$ 201$ 1,734$ End Cash 849$ 849$ 633$ 1,658$ 1,859$ 2,739$

Weekly Cash BudgetFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: 3/7/2016 3/14/2016 3/21/2016 3/28/2016 End of MarchBeginning Cash 2,739$ 2,559$ 3,379$ 4,104$ 2,739$

Packages (10) Sold 390 360 300 440 1,490 Cookies Sold 3,900 3,600 3,000 4,400 14,900

Packages (10) Left 365 1,005 705 265 265 Cookies Left 3,650 10,050 7,050 2,650 2,650

Cash Receipts 1,170$ 1,080$ 900$ 1,320$ 4,470$

Cash DistributionInventory Reorder 988$ -$ -$ -$ 988$

Packages 1,000$ -$ -$ -$ 1,000$ Cookies 10,000$ -$ -$ -$ 10,000$

Advertising 260$ 240$ 125$ 305$ 930$ Social Media 200$ 200$ 125$ 275$ 800$ Events 60$ 40$ -$ 30$ 130$

Branding 30$ -$ 30$ -$ 60$ Website 29$ -$ -$ -$ 29$ E-Commerce 23$ -$ -$ -$ 23$ Miscellaneous 20$ 20$ 20$ 20$ 80$ Total Distribution 1,350$ 260$ 175$ 325$ 2,110$

Net Cash Flow (180)$ 820$ 725$ 995$ 2,360$ End Cash 2,559$ 3,379$ 4,104$ 5,099$ 5,099$

Weekly Cash BudgetFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: 4/4/2016 End of AprilBeginning Cash 5,099$ 5,099$

Packages (10) Sold 265 265 Cookies Sold 2,650 2,650

Packages (10) Left 1,000 1,000 Cookies Left 10,000 10,000

Cash Receipts 795$ 795$

Cash DistributionInventory Reorder -$ -$

Packages - - Cookies - -

Advertising 150$ 150$ Social Media 150$ 150$ Events -$ -$

Branding 10$ 10$ Website 29$ 29$ E-Commerce 23$ 23$ Miscellaneous 20$ 20$ Total Distribution 232$ 232$

Net Cash Flow 563$ 563$ End Cash 5,661$ 5,661$

Weekly Cash BudgetFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: 1/18/2016 1/25/2016 End of JanuarySales 615$ 660$ 1,275$ COGS 203$ 217$ 420$ Gross Margin 412$ 443$ 855$

ExpensesCustom Messages 180$ -$ 180$ Message Sorting 350$ -$ 350$ Advertising 120$ 180$ 300$

Social Media 120$ 100$ 220$ Events -$ 80$ 80$

Branding -$ -$ 30$ Website -$ -$ 63$ E-Commerce -$ -$ 23$ Miscellaneous 20$ 20$ 40$ Total Expenses 670$ 200$ 986$

NIBT (258)$ 243$ (131)$

Weekly Income StatementFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: 2/1/2016 2/8/2016 2/15/2016 2/22/2016 2/29/2016 End of FebruarySales 660$ 1,200$ 840$ 1,170$ 840$ 4,710$ COGS 217$ 395$ 277$ 385$ 277$ 1,551$ Gross Margin 443$ 805$ 563$ 785$ 563$ 3,159$

ExpensesCustom Messages -$ -$ -$ -$ -$ -$ Message Sorting -$ -$ -$ -$ -$ -$ Advertising 200$ 300$ 275$ 125$ 125$ 1,025$

Social Media 200$ 250$ 125$ 125$ 125$ 825$ Events -$ 50$ 150$ -$ -$ 200$

Branding 50$ -$ 20$ -$ -$ 70$ Website 29$ -$ -$ -$ -$ 29$ E-Commerce 23$ -$ -$ -$ -$ 23$ Miscellaneous 20$ 20$ 20$ 20$ 20$ 100$ Total Expenses 322$ 320$ 315$ 145$ 145$ 1,247$

NIBT 120$ 485$ 248$ 640$ 418$ 1,912$

Weekly Income StatementFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: 3/7/2016 3/14/2016 3/21/2016 3/28/2016 End of MarchSales 1,170$ 1,080$ 900$ 1,320$ 4,470$ COGS 385$ 356$ 296$ 435$ 1,472$ Gross Margin 785$ 724$ 604$ 885$ 2,998$

ExpensesCustom Messages -$ -$ -$ -$ -$ Message Sorting -$ -$ -$ -$ -$ Advertising 260$ 240$ 125$ 305$ 930$ Social Media 200$ 200$ 125$ 275$ 800$ Events 60$ 40$ -$ 30$ 130$ Branding 30$ -$ 30$ -$ 60$ Website 29$ -$ -$ -$ 29$ E-Commerce 23$ -$ -$ -$ 23$ Miscellaneous 20$ 20$ 20$ 20$ 80$ Total Expenses 362$ 260$ 175$ 325$ 1,122$

NIBT 422$ 464$ 429$ 560$ 1,876$

Weekly Income StatementFortune 500 Cookies

10 cookies for $3, cost = $0.988

For the Period of: 4/4/2016 End of AprilSales 795$ 795$ COGS 262$ 262$ Gross Margin 533$ 533$

ExpensesCustom Messages -$ -$ Message Sorting -$ -$ Advertising 150$ 150$ Social Media 150$ 150$ Events -$ -$ Branding 10$ 10$ Website 29$ 29$ E-Commerce 23$ 23$ Miscellaneous 20$ 20$ Total Expenses 232$ 232$

NIBT 301$ 301$

Weekly Income StatementFortune 500 Cookies

10 cookies for $3, cost = $0.988

Price 3.00$ Cost 1.12$ CM/GP 62.67% 1.88$

BE Sales 1,430$ BE Customers 477

10 cookies for $3, cost = $1.12

Breakeven AnalysisFortune 500 Cookies

ITP 56.8 ITP 91 ITP 109QTY 1.29 QTY 1.29 QTY 1.29Price $1 Price $2 Price $3Multiplier 50 Multiplier 50 Multiplier 50Sales $3,664 Sales $11,739 Sales $21,092Profit $2,843 Profit $8,452 Profit $13,217

ITP 111.6 ITP 72.4 ITP 69.1QTY 1.29 QTY 1.29 QTY 1.29Price $5 Price $8 Price $13Multiplier 50 Multiplier 50 Multiplier 50Sales $35,991 Sales $37,358 Sales $57,940Profit $19,867 Profit $21,668 Profit $31,983

Yearly Sales ProjectionsFortune 500 Cookies

10 cookies for $3, cost = $0.9882 cookies for $1 5 cookies for $2 10 cookies for $3

20 cookies for $5 30 cookies for $8 52 cookies for $13

Financial Assumptions Fortune 500 Cookies 

 Pricing of our Units 

● 10 Cookies for $3 ○ This was the middle tier of the 3 most popular packages ○ 20 cookies for $5 was even more popular so this could even be considered conservative 

● A package of 10 cookies= 1 unit  Market Size 

● 5000 students that we can confidently reach in BOW and surrounding high schools ● x2.5 multiplier that includes students and their parents/related adults ● = Market size of 12,500 

○ This is a fair market size and is conservative, since we didn't even factor in potential outreach to Boston area schools as well as businesses for B2B opportunities 

 Sales Projection 

● January: 500 ­ Initial marketing push, slower than other months at the start ● February: 2,000 ­ big launch after setting up website and organization of sales, Valentine’s day  ● March: 1,800 ­ Midterms (parents will buy for students, “good luck” style fortunes) ● April: 1,200 ­ April fools, FME fair, promposals, finishing strong ● TOTAL: 5500 

○ Market size of 12,500, operating for 4 months so divide by 3 for the tertile to achieve approximately 4200 people. 

○ Customers said they would purchase 3 times a year according to the survey, but divide that by 2 due to ROT#2. (1.5 multiplier) 

○ 4200*1.5 = 6300 ○ We are making our projections with a conservative estimate which will be roughly 90% 

of our projected number of sales ○ 6300*(0.9)= roughly 5500 sales across the 4 month period. 

 Start­Up Costs 

● Total Initial Inventory: $1,378 ○ Cookie Inventory (1,000 units): $988 

■ Enough units to comfortably get us through the first month of sales and into the second month according to our projections. 

● Total Organizational Costs: $670 ○ Custom Messages: $88 

■ The supplier allows us to print 6 different messages for no additional fee, but we want to purchase 44 additional messages at $2 each. 

 

○ Message Sorting: $350 ■ The fortune cookies are not separated within the factory by name, and the 

supplier has created a fee for the separation. This does not make too much sense to us, why there is such a high fee associated with such a simple operational task. We will try to negotiate this down, but included it in our financial statements because we are not sure we can work this out with the supplier. 

○ Advertising: $70 ■ Social media 

● Boosting posts ● Advertisements 

■ Hard copy ads ■ Email lists 

○ Branding: $30 ■ Logo creation ■ Design work for brand ■ Any leftover will be pushed to advertising 

○ Website: $63 ■ Hosting ■ Domain ■ Design 

○ E­Commerce: $23 ○ Team Bonding: $180 

■ 12 members, $15 for each member for food/event ● Total Identifiable Costs: $2,048 

○ This number might be smaller than some other businesses in FME are requesting. This is low due to the cost of our product, which is around $0.13 per cookie. A large portion of the startup costs are organizational costs.