Lumpia Gerald Jakabosky - Crater High...

The Lumpia Lair Gerald Jakabosky

Gerald Jakabosky

Limited Liability Company

May 31, 2011


Section 1 - Introduction

Executive Summary........................................................................................... 2

Self‐Analysis ..................................................................................................... 3

Section 2 - Analysis of the Business Situation

Trade Area Analysis

Geographical Analysis ...................................................................................... 6

Competitive Data ............................................................................................. 8

Market Segment Analysis

Market Segment Analysis ................................................................................ 9

Analysis of Location

Location .......................................................................................................... 12

Floor Plan ....................................................................................................... 14

Section 3 - Planned Operation of Proposed Business

Proposed Organization

Management .................................................................................................. 16

Type of Ownership ......................................................................................... 17

Proposed Product or Service

Proposed Product and/or Service .................................................................. 18

Suppliers ......................................................................................................... 19

Equipment ...................................................................................................... 20


Proposed Marketing Strategies

Pricing Policies ................................................................................................ 20

Promotional Strategies .................................................................................. 21

Section 4 - Financing

Projected Income and Expenses

Start Up Costs ................................................................................................. 24

Sales Forecast ................................................................................................. 24

Income Statement .......................................................................................... 25

Building Costs ................................................................................................. 26

Proposed Plan to Meet Capital Needs

Financing ........................................................................................................ 27

Conclusion………………………………………………………………….……28

Bibliography………………………………………………………………….....29

Appendix

Selection Letter .............................................................................................. 34

Print Ad .......................................................................................................... 34

Business Card ................................................................................................. 36

Menu .............................................................................................................. 37


Section 1: Introduction

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Executive Summary The Lumpia Lair serves up the hottest, freshest island food in the valley. Each dish will send

your taste buds to a tropical island. The Lumpia Lair has all the sweet, sour, bitter, salty, and

unami flavors of the island.

The Lumpia Lair's target market from a demographic point of view is both males and females

from the ages 13‐25 years of age. Typically we focus on income levels of 30,000 – 100,000

dollars. From a psychographic perspective, we tend to appeal to Experiencers. The Lumpia Lair

is relatively inexpensive, yet produces the best quality island dishes. Also, open six days a week

from 9:00am to 10:00pm allows Experiencers to stop by anytime.

I the Rogue Valley, there are very few restaurants that offer authentic island food. The most

common island restaurant is No‐Ho's. The Lumpia Lair provides an authentic, traditional island

style meal at a low price. No‐Ho's already has 25% of our target market. The Lumpia Lair is

hoping to capture 15% of the target market. Our company offers a wide depth of products from

each island in the Pacific Ocean. If you can find a product on a Polynesian island, you can find it

at The Lumpia Lair.

The Lumpia Lair has one manager that is in charge of the other workers. The manager’ job is to

make sure The Lumpia Lair runs smoothly. He is specially trained to handle businesses in the

food industry. You might compare him to a “First Mate”. When the “Captain” isn’t around, the

manager has everything under control. Next, we have two chefs and their assistants. We hire

chefs from overseas, so our dishes are just like they are made on the islands. One of our chefs is

a local from Hawaii, while the other is a highly trained chef in the Philippines. The next part of

the staff includes busboys, waitresses, and the cashier. They are the foot soldiers of my

restaurant. However, if they aren’t giving their best my company cannot function.

Our sales projection for our first year in the Rogue Valley Food Industry is 451,224 dollars, not

applying costs for the business. The average salary for each worker is $9.27 an hour.

To start The Lumpia Lair we are withdrawing 34,252.16 dollars in loans. If you are projection of

income is correct, we would potentially have enough money to pay off our loans in 3.9 months.

That is not the case though since, other monthly expenses must be handled, salaries must be

paid, and other costs. Having the potential though is comforting to a new business owner.

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Already our company is proclaiming its ads. On the T.V. and radio The Lumpia Lair is stating its

presence. Many customers have already called our hotline to check on our “Grand Opening”.

After one week, The Lumpia Lair website already has roughly 12,000 hits and still climbing. I see

a bright future ahead for The Lumpia Lair. The Rogue Valley’s palate will never be the same.


Self‐Analysis Imagine being 5,000 feet above the ground. You may be asking, “What am I doing 5,000 feet

above the ground.” You are about to jump out of a plane and experience the thrill of sky diving.

You are preparing yourself for your dive, when all of a sudden the plane’s side door accidently

flips open. You are being swept out of the plane and realize that you only have time to grab one

of two backpacks. To your demise, you forget which pack is full of supplements and which

actually has the parachute inside. As an investor you do not want to place your money in a

random business hoping that your money is going to grow. You want to be assured that your

life’s fortune is in the right hands. Let me assure you that I am an experienced, flexible,

adventurous, and growing parachute.

Experience is as important in skydiving as it is in a business. Would you rather trust a parachute

that has been proven to work or one that is a prototype? The prototype may sound amazing,

but without proof to back itself up seems too risky. New businesses owners often times look

well qualified and ready to manage your investment. However, most of these new owners have

not had the slightest bit of training in a business management. I however, have been prepared

by my experiences through CSB. CSB has taught me the fundamentals of how businesses small

and large operate under. Elements of business I have learned include determining your target

market, finding your best location, what a business staff should consist of, correct pricing,

advertisement, and how to be successful during an interview. I have also held jobs outside of

CSB ; ranging from management jobs down to foot soldier type of labor. I have worked my way

up from simply stacking hay at L.A. Farms to being their foreman. I have recently been

promoted from flagging cars into their correct parking spaces during the Jackson County Fair to

managing the entire parking lot crew. No matter which job it is, I have started out small and

worked my way to the top time and time again. The proof is in the pudding.

Everybody has their strengths and weaknesses. I consider my Achilles’ heel to be paying so

much attention to detail and that everything is correctly done on time. Everything has to be

down correctly and by the books. This at times averts my attention from other things. Though

that may be, I am flexible enough complete the tasks ahead on time. I believe that my greatest

strength lies in my ability to finish things on time and in an efficient manner. This allows me to

maximize on every opportunity that comes my way. As Victor Kiam said, “Procrastination is

opportunity's assassin.” By not being a procrastinator, I can capitalize on the moment when

others cannot.

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When talking about parachutes, risk isn’t exactly a comforting subject to discuss. I want you to

be enticed by risk though. I want it to draw you in. I want it to turn you on. The reason most


people sky dive is for the adrenaline. “Your body responds to the rush of adrenaline into it,

bringing with it a sense of excitement and a surge of energy.” (Savage, Ken) When you invest

your money into The Lumpia Lair, I want you to feel like you just jumped out of a plane.

Adrenaline should be rushing through your body, but you should feel that your money and life

are safe. While you are feeling that you reasonable risk, I want to ensure you that I will take the

appropriate risks. For example I will be taking the risk of importing the finest spices from the

Polynesians islands. This I believe will attract more customers. Knowing that I use only the best

ingredients will catch their eyes and palate. If I didn’t want to take the risk, I could order a

cheaply synthesized factory spice. I am putting it all on the table to bring the Valley what it

deserves.

I want you to trust that I will respectively and appropriately use your funding. For you to feel

that way you need to know my goals for the Lumpia Lair. I am seeking to personally grow. By

opening up this business, I will be able to test my knowledge of the business world and my

skills. I plan to open a second Lumpia Lair on the other side of the valley and possible little

stands throughout the city. My wallet and yours isn’t the only thing I am expecting to grow,

neither is my personal development. I am hoping that a relationship between the two of us can

expand along too.

In conclusion, I want you to view me as the most viable parachute to use. I assure you all my

qualification and characteristics support me claim. However, I view that my experiences speak

from the self. I am a hardened soldier in the business world. My skills and experienced have

been tested before. I hope you find it worthwhile to test them again.

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Section 2: Analysis of

the Business Situation

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Geographical Analysis

*Taken from clarkcountyfoodandwine.org*

Have you ever felt the desire to travel half way across the world in a matter of minutes? In

Medford your wildest dreams can be obtained, with the help of the Lumpia Lair. Located right

in the lap of the most diverse city in the Rogue Valley, just adds to the wide variety of goods

that visitors and locals alike can choose form. In addition to the astounding location, Medford’s

climate is just as diverse as its culture. In the winter, this fair city becomes a winter wonderland.

Coated in snow, Medford provides an excellent skiing, snowboarding, and tobogganing spot.

With many great skiing areas nearby, for example Mt. Ashland, Southern Oregon can be a

winter wonderland. In the summer, the Immigrant Lake Waterslides cool off many tourists.

Transitioning from season to season, Medford experiences light rains and a breeze occasionally.

“Sunshine on your shoulders—more than 210 days of sunshine annually and only 18 to 32

inches of rainfall.” The sun is still shining, along with all the local smiles.

At first you may think that Medford, Oregon has a terrible location. However, we are located

almost smack tab in between two major ports on the west coast, Seattle and Sacramento. This

allows us to be a major trading post for truckers since Medford runs along I‐5. “Medford

Oregon is well known as being the professional, retail and touring center of southern Oregon

and northern California” (BREEZA). We are not a landlocked state which allows us to transport

goods by land, air, and sea. If you are exporting or importing to countries that can’t be reached

by land, you will be glad you set camp in Southern Oregon. For example, Japan is directly across

the Pacific Ocean from Oregon’s coast. This allows us business owners to import items from


Japan by sea. Thus, being cheaper and more efficient then flying goods over. Having all three

transportation ways to ship items creates and optimizes success in our market.

When tourists hear “Oregon” the first thing that pops up into their mind is rain. However, it

only rains 5 months out of the year, according to Weatherforyou.com. The rest of the season

are either dry or experience light showers. Unlike Seattle, where you are destined to get wet,

Oregon rain is predictable. However, sometimes in the winter the pass in Klamath Falls freezes.

This either causes a delay or prevents trucks from delivering goods south of here. Trucks can

still come from the north and we have an international airport located in Central Point.

I previously listed the dilemma about the overpass closing due to snow. Though that may be the

incident, are mountains are not a hindrance. Mountains plus snow can also equal ski resort.

Many tourists and locals alike are attracted to this sport. Mt. Medford provides a bunny hill for

the newbies all the way up to a daring and adventurous professional slope. In the summer the

many mountains can be climbed and hiked. At the very least our mountains are a surplus and

aid our market. They are a part of what Southern Oregon really is. Crater Lake is another major

attraction. Made of pure rain water, many people stand in awe at the majesty of Wizard Island.

This tourism is proven to convince other to move to Southern Oregon. According to

CNNMoney.com, Medford is increasing by 6% of its population a year.

In conclusion, I believe that Medford will be a viable spot to start a business. The benefit of

being able to have goods delivered by air, sea, and land also increases Medford’s great

reputation. With the many tourist attractions around the valley we have a large target market.

Benefits of Medford Oregon:

Medford is based along I‐5.

Medford is able to be reached via land, air, and sea.

Many tourist attractions are nearby. ‐Mt. Ashland

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‐Immigrant Lake

‐Shakespeare Festival

‐ Jackson County Fair

‐Wine Tasting

‐Cheese Tasting

‐Half an Hour away from camp grounds


‐Rafting

Local Salmon Supply

Competitive Data Taco Carts 7‐11 Rays

Tacos

Burritos

Nachos

Tostadas

Drinks

Hotdogs

Taquitos

Slurpee

Aspirin

Personal Items

Magazines

Deli Drinks (Gatorade, Sodas,

Coffees)

Aspirin

Personal Items

Magazines

1.75

3.25

5.00

1.50

1.00

2.25

1.25

2.50

3.75

5.00

1.75

6.00

1.00‐4.00

4.25

7.00

2.25

911 N Riverside Ave,

Medford, OR 97501

7 W 11th St

Medford, OR 97501

26 E. Pine Street, Central Point, OR

97502

Sign and Billboard Ads Radio ads Newspaper and TV ads

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Market Segment Analysis The Lumpia Lair sets its focus on Strivers. We want to give them a chance to experience the

scrumptious food of the Polynesian islands. Specifically in the Strivers we want to target are

customers from the age of 13‐23 years with income levels 30,000 to 100,000 dollars.

Strivers want to experience the best, without actually having the best. These people tend to be

about average. They have income levels around 60,000 and typically have at least a high school

education. The Lumpia Lair wants to allow this market to fulfill their desires and obtain that top

quality island taste. As you can see other businesses also in the food industry target roughly the

same type of people we do. However, places like Burger King and Ray’s focus on other

psychographics then the Lumpia Lair. Burger King tends to focus on Survivors out there looking

for a cheap a quick meal. Ray’s Food Place is aiming at providing basic products to Makers.

Makers tend to buy the basic ingredients and then make their own meal.

The Lumpia Lair

Demographics Psychographics (VALS)

Age: 13-23

Sex: Males and Female

Strivers

Race: Caucasian

Asian

Income Level: $30,000 to $100,000

Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead.

Strivers are active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.

Education: High School and College

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http://www.strategicbusinessinsights.com/vals/ustypes.shtml


Burger King


Age: 13-18

Sex: Males

Race: Caucasian

Survivors

Income Level: $60,000 to $100,000

Survivors live narrowly focused lives. Because they have few resources with which to cope, they often believe that the world is changing too quickly. They are comfortable with the familiar and are primarily concerned with safety and security. Because they must focus on meeting needs rather than fulfilling desires, Survivors do not show a strong primary motivation.

Survivors are cautious consumers. They represent a very modest market for most products and services. They are loyal to favorite brands, especially if they can purchase them at a discount.


Ray’s Food Place


Age: 13-25

Sex: Males

Race: Caucasian

Makers

Income Level: $60,000 to $100,000


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Like Experiencers, Makers are motivated by self-expression. They express themselves and experience the world by working on it—building a house, raising children, fixing a car, or canning vegetables—and have enough skill and energy to carry out their projects successfully. Makers are practical people who have constructive skills and value self-sufficiency. They live within a traditional context of family, practical work, and physical recreation and have little interest in what lies outside that context.

Makers are suspicious of new ideas and large institutions such as big business. They are respectful of government authority and organized labor but resentful of government intrusion on individual rights. They are unimpressed by material possessions other than those with a practical or functional purpose. Because they prefer value to luxury, they buy basic products.




There are 181,269 people in the Jackson County. ("Profile of General Demographics: 2000.")

That creates a wide selection of people for my target market. Remember, I am only targeting

Strivers. Specifically Strivers, 13‐23 years of age and that rake in roughly 60,000 dollars a year.

After filtering my calculations down to that specification, I have come to the conclusion of the

amount of my target market. My target market is 83,560 people, also known as 41% of the

population of Jackson County. The likelihood of a new company capturing that large of an

audience is very minute. I plan on receiving 8,356 of that total population as customers.

Demographic Measurement Number Percent Total Population of Jackson County 181,269 100% Number of People in Medford, Oregon 74,980 41.36394 Target Market Age Group 36,888 20.34987 Target Market Income 25,217 13.91137 Total Number of Student in School 44,630 24.62087 Number of Highschool and College Students 19,502 43.69706 Number Of Asian Decendents 1,953 1.077404 Target Market 83,560 46.09724 Expected Number to Capture 8356 4.609724 *According to Profile of General Demographics : 2000*

Strivers are very similar to Experiencers. However, I have noticed that Strivers do not burn out

as fast. What that means is Strivers will continue being my loyal customers. Unlike Experiencers

that will quit eating at the Lumpia Lair after they have gotten a feel for the food, Strivers will

come back time and time again. Another important fact that I have noticed is that even though

Strivers may have less money, they will pay more over the long run. Experiencers pay a sum of

cash up front, only one time. Strivers give a little each time which eventually ends up out

weighing the Experiencers.

Now that you have a general understanding of the Lumpia Lair, you can see where we are

coming from by targeting a younger audience. Though they may have less money, you have

seen the impact they potentially possess. I guess it is appropriate for me to say, “Put your

money where your mouth is.”

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Location Analysis

Business Location:

‐ Located at 226 E. Main St. Medford, OR 97501

‐West Medford is a widely traveled area.

‐ RCC is located a block away. A shopping plaza is also located across us. This provides a source

of people we can leech off of. These businesses allow help traffic potential customers to our

area.

‐ Oxygen is located a block away from The Lumpia Lair. This may attract “party animals” looking

for a cheap, quick late night snack.

‐ C‐H zoning. Zoning set limits and restrictions to architectural landmarks. Restriction may

include building size or amount of smog you may produce.

*Google Maps*

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*Taken from www.ci.medford.or.us*

Competition:

‐ Jackson County Creek Pizza and Oni’s Osaka are the closest restaurant to us. Each is two

blocks away. However, neither one can provide the friendliness nor atmosphere as The Lumpia

Lair does.

‐ The closest grocery shop near us is Food4less. Regardless, Food4less targets makers while we

target strivers.

Traffic:

‐ The Lumpia Lair is based on East Main Street. This is an intersection between Jacksonville,

Medford, and Central Point.

‐ Many people walking around from small business from small business will sense the smell of

our food wafting through the air.

‐ The Lumpia Lair is an arterial street based of Jackson Street. Jackson is a major collector’s

street and provides the main route from Central Point to Medford, other than the highway.

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http://www.ci.medford.or.us/


Floor Plan

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Section 3: Planned

Operation of Proposed

Business

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Management Motivation I am in charge of each employee. I will focus on directing my management to three “sub

managers” this way I can have a business with checks and balance. I will run the main business

with a directive management style, but my business itself will be supported with each other

style. I will hold the duty of making sure that my other managers are making sure things get

done. It is “The Chain”. By me not having to spend all day managing The Lumpia Lair, I can

invest my profits elsewhere.

Wages will be organized into three categories. The first category consists of solely the owner.

Second, involves the managers. Lastly comes each of the workers.

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I will make whatever my business brings in minus expenses. The manager is paid 16.05 an hour.

The reason being is that he essentially run The Lumpia Lair. He keeps the workers on track,


manages payroll, and handles customer service. Lastly the workers’ wages are sorted out by

importance. The cooks will need different set of skills then a McDonald’s fry cook, so their

wages are a bit higher.

Wages

Owner Business Profits

Manager

‐Director

16.05

Workers

‐ Cooks

‐ Cook Assistants

‐ Waiter/Waitresses

‐ Cashiers

‐Bus Boys/ Janitors

12.00

10.00

8.50

7.60

7.25

By using all three manager systems, I believe I can achieve maximum work output from my

son one of my managers can’t make it to work or has to leave, I have

r is position. I believe that this will allow me to execute a will

ate a cash flow

employees. If for some rea

two other directors to cove

profitable business and cre

Ownership

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The Lumpia Lair will be a Limited Liability Corporation. My rationale for this decision of mine

comes from the statement, “You get the best of both worlds.” A LLC will protect my personal

assets. Unlike in a Corporation, Sole Proprietorship, or Partner Proprietorship my financial

assets will be untouched. A LLC will not have to worry about being disbanded because of death

or withdrawal because I am the sole owner. I make the decision just like in a Sole

Proprietorship, but I have more protection.


Proposed Product

The owner of The Lumpia Lair believes Southern Oregon does not have an accurate portrayal of

island food. Citizens spend thousands of dollars to fly overseas in search of great tasting island

dishes. This next section will in detail illustrate the island dishes we intend to offer at The

Lumpia Lair, our potential suppliers, and inventory policies.

The Lumpia Lair’s main product is island food. Whether it is lumpia, kalbi short ribs, chicken

kelaguen, halo halo, bobo‐tea, rice, tetiza, poke, or spam masubi, it is a non‐goods product. We

also have impulse good, items that you do not go to the store with the intent to buy. For

example as you check out, you will see an assortment of Asian sweets and toys to buy.

Though are theme is “island food”, our tastes range from a wide variety of Polynesian islands.

Islands like Hawaii, Guam, the Philippines, and Samoa are represented strongly. The depth of

each product is much deeper than it is wide. From Hawaii alone we offer spam masubi, lau lau,

poi, char siu, mahi mahi, kalua pig, pineapple, and macaroni salad.

To make all this possible though, we need suppliers. Both food supplies and janitorial supplies

will need to be bought on a weekly basis. I plan to but most of my products form Sysco. This

company sells items in bulk for a cheaper price. A positive to the Sysco is that the import a large

selection of their foreign foods from Hawaii, which is linked to the Philippines. If we cannot find

what we need at the Sysco, AsianFoodsOnline.com offers a large selection of Asians foods for a

decent price. If we are in an immediate need for an item, we can make a quick stop at Asia

Grocery Market on E. Barnett Road. The price will be quite a bit higher, but if we are in an

emergency Asia Grocery Market will suffice. Whole Sale Janitorial Supply will provide us with

whatever cleaning supply we cannot purchase at the Sysco.

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Suppliers The Lumpia Lair Rating

Sysco 26250 SW Parkway Center Drive Wilsonville, OR, 97070 - 0527

503-682-8700 http://www.sysco.com/contact-us.html

5

AsianFoodsOnline.com Ships from San Jose (Online)

(877) 675-8899 http://www.asianfoodsonline.com/nonmember/default.asp

5

Whole Sale Janitorial Supplies

Ship from Portland (Online)

1.800.908.1986 http://www.wholesalejanitorialsupply.com/

4

The Lumpia Lair operates under FIFO (First In First Out). Under this inventory system we will

minimize the amount of food wasted. If The Lumpia Lair operated under LIFO (Last In First Out),

there would be an excess of food going to waste.

With this build of potential suppliers, products, and inventory system, I have a superiorly high

rate of success. Many company’s may be sucked into using LIFO because the fear of holding on

to a product. However, I know that with loyal customers and a high craving of authentic island

food will keeps my business flowing.

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Equipment List Decoration Price Quantity Total Aluminum and Wicker Patio Arm Chair $39 60 2340Dining Table $399 20 7980Double Waitress Station $489 1 489Bar Stool $36.99 10 369.9Total Cost of Decoration 11178.9 Kitchen Utilities 60" Natural Gas Range w/ 10 Burners and 2 Oven $3,140.98 1 $3,140.98Freezer $3,553.04 2 $7,106.08Upright Door Dishwashing Machine with High Temp Sanitizing, $7594 1 $7,5942 Burners Natural Gas Countertop Hot Plate, Each $860.98 2 $1,721.96500 lbs. Prodigy Modular Cube Ice Machine with 536 lbs. Bin $2,949.99 1 $2,949.99Shaved Ice Machine $475 1 $475Rice Pot $9 2 $18Sushi Rollers $8 2 $16Total Cost of Kitchen Utilities $23,022.01 Tools Royal 583cx Cash Register $229.99 1 $229.99Total Cost of Tools $229.99 Over-all cost

Pricing Policies

$34430.9

I believe the reason many small businesses fail is correlated with your pricings. On one side if a

business’s price is too high, many people cannot afford their good or services. On the opposite

side, when you prices are too low, many people feel that you aren’t offering a decent quality

product.

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The Lumpia Lair will be managed under the Mark‐up pricing policy. I feel as if I used cost plus

pricing, I would easily under or over price an item. By using Mark‐up pricing I am assured to give

a general price of each item. Mark‐up pricing is also used more by companies selling goods.

Cost plus pricing is for service companies.


I will be using Psychological Pricing as my technique. I want my customers to feel as if they are

getting the best deal in the world. This will encourage them to come back for more. For

example rice is fairly cheap compared to other products. By using more rice on a plate to cover

space, customers will feel as they just found the best deal in the Valley. Realistically they are

getting less of the “good stuff” and more of the “filler”.

The Lumpia Lair’s initial prices are high for two reasons. I can price my products high enough, so

I will be making a large profit without consumers realizing. This accreditation goes to No‐Ho’s

for pricing their island food ridiculously high. Over the years I can slowly lower my prices or

have “amazing” price reductions while still gaining a large profit. Secondly there is a demand for

authentic island food in the valley. By being the first to offer this, I can initially set high price

bar.

Pricing truly does make or break a busin

having the ability to initially start my bus

will generate the push I need to get

Promotional Mix

ess. By using Psychological pricing, Mark‐up pricing, and

iness with high prices, I can capitalize on profit. This

You could be the smartest kid in class, but if you don’t ever raise your hand to answer a

question no one will know. Just as if you had the greatest product in the world. If no one knows

about it, how are they supposed to buy it? The importance of personal and non‐personal

advertising is factor that should not be forgotten in businesses that want to exceed. Examples

of non‐personal advertising are television and internet. Personal advertisements can be a press

release.

One of the most popular advertisements is television. For the most part, everyone has access to

a T.V. of some sort. Television provides a visual for your product along with an auditory sound.

The brain records visual stimuli anywhere in between .5 to 2 seconds. Where as auditory can be

registered without being processed for 12 seconds. Pairing these two together can almost

ensure the viewer will remember your product. Especially if you can come up with a catchy

tune or catch phrase, “Don’t get mad, get glad.” The cost to advertise on television can range

quite a bit depending on the popularity of the shows it is aired between. For example

advertising during American Idol or the Super Bowl can be quite a bit more expensive than

advertising during Sonny With A Chance. These shows also bring in different viewers. The Super

Bowl may bring in more middle aged, beer belly men than Sonny With A Chance.

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Every day the internet is used by millions of people. This creates an opportunity to reach a wide

range of people. However, I find that when browsing the internet, I tend to ignore internet ads.


Though this may be true, it is cheaper to market on the internet. If you were planning to

advertise to the elderly, the internet may not be the best place to advertise your “amazing”

self‐cleaning dentures since most seniors still use dial‐up.

Press Release is a personal letter of yours, that is sent in to a newspaper or magazine. It is a free

way to advertise. Many people read the newspaper and magazine. Depending on what

magazine you choose to advertise in, you can target almost (if not) any age group. However,

the piece you choose to send in must be written in a certain format. The newspaper can be

cluttered at times, so your ad may get lost in the mix. Lastly, it is not certain that your writing

will be published. The smaller the town, the more likely your piece will be published.

When choosing a way to advertise, your target audience is extremely important. You don’t

want to advertise to the wrong group. Why would a teenager want to buy a couple of

dentures? Also it is important to invest heavily into one or two advertising categories. Being

spread out will increase coverage, but may lack the depth needed to reinforce your product.

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Section 4: Financing

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Start Up Costs One Time Start-Up Costs Costs Furniture 12,000Machinery 8,000Working Capitol 12,000Building Improvements 7,000 One Time Total 39,000 Monthly Expenses Manger Salaries 9,858All Other Salaries 21.576Advertising 15,000Supplies 40,000Professional Fees 2,500Upkeep 1,000Miscellaneous 10,000 Monthly Total 78,380Monthly Expense for 12 Months 940554.912One Time Startup Costs 39,000 Total Start Up Costs For First Year

Sales Forecast

979,555

Generating me sales forecast wasn’t that difficult. Creating an accurate forecast was a little

more of a challenge. First I searched the percentage of market share each of the nearby

businesses were estimated to own. Next, I multiplied that percentage by the target market. To

make the numbers more accurate I took 10% of off that. Thirdly, I predicted an amount each

customer would spend a month, which came out to roughly $60. Using the estimated spending

per month, I multiplied it by the % of target market to calculate an estimate in sales. We all

know a new business makes about half the amount its’ owner predicts, so I took 50% of the

estimated sales.

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Income Statement Monthly Income Statement Revenues Sales Receipts $37602 Cost of Goods Sold $18801 Total Revenues $18801Expenses Employee Salaries $2444.13 Commissions 0 Rent $1421.356 Utilities $909.9684 Materials 0 Office Expenses $20.6811 Advertising $272.6145 Insurance $246.2931 Office Expenses $60.1632 Depreciation $1032.93 Taxes $676.836 Maintenance $2270.76 Interest $161.6886 Miscellaneous $535 Total Expenses $10052.42 Net Profit $8748.58

% of Market Share Company

% of Target Market 10%

Estimated Sales

Estimated Earnings

The Lumpia Lair 15% 12534 1253.4 $752040 $376020 Ray's Food Place 15% 12534 1253.4 $75204 $37602 Burger King 25% 20890 2089 $125340 $62670 Oh's Osaka 20% 16712 1671.2 $100272 $50136 Johnny B's 5% 4178 417.8 $25068 $12534 New Far East 10% 8356 835.6 $50136 $25068 Casa Flores 20% 16712 1671.2 $100272 $50136 Estimated Customer Spending Per Month

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60


Building Costs Building Costs

Sq. Feet Cost

Facilities

388 ft. $120.00

Kitchen and Bath

212 ft. $235.00

Total 600

ft. $227,076.0

0

Cash for Down Payment $45,415.20

Term of Loan (Years) 30

Annual Interest Rate % - 5.75 5.75%

Loan Amount $181,660.8

0

Monthly Payment $1,060.12

Financing Working Capital Equipment

Total Cash Needed 10052.42 34430.9 20% Down Payment 2010.484 6886.18 3% Loan Fees 301.5726 1032.927 Total Cash Out of Pocket 2312.0566 7919.107 Loan Amount 7740.3634

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26511.793


Prime Rate 3.50% 3.5 Additional Interest 1% 1 Total Interest Rate 4.50% 4.5 Length of Loan in Years 6 8 Monthly Payment 12,100 ($42.77) Intrest on 12th Payment 42,576

-1135.40237

I will not be investing personally into my business. I will be seeking financing from outside investors.

I have taken out a Work Capital and an Equipment loan. The Working Capital will cover wages and start‐

up costs related to my business. This will include the building and employees. My equipment loan will

cover the fridge, ice machines, freezer, and rice pots. Each loan will be paid off in a matter of two years.

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Conclusion The Lumpia Lair has everything a new business owner and a potential investor could want. With

a minutely detailed Business Plan that has been scrutinized and perfected to ensure your

money will not be wasted. We have the price, promotion, product, and location that say it all.

Our business is the business to be.

Price wise The Lumpia Lair Mark‐Up Pricing technique is well suited in the food industry. Our

Restaurant is confirmed to create a cash flow with our first in first out system. Products will not

expire and will ship out just as fast as they came in. Psychological pricings will also keep our

customers coming back for more. They will continuously believe to receive an amazing deal,

while we focus their money on expanding our company.

The Lumpia Lair is skilled in both business management and promotion. Our ads are scattered

throughout the Rogue Valley. Mainly our interest is on young Experiencers. TV and radio ads

are the perfect median to reach our target market. Kiss FM and Hott are just a few radio

stations that we are being broadcasted on. The Lumpia Lair’s colorful and intriguing TV ad

entices the fellow Experiencer causing their tongue to lead them through our doors.

Product is a very important aspect to the promotional marketing mix. Our convenience goods

have a wide depth and large variety. Our product line ensures that each Polynesian island is

heavily represented. Many local dishes can be found at The Lumpia Lair. We like to keep the

taste of the island in and keep the hefty pricing out.

Location, location, location. My business will not falter because of a poor choice in placement.

Many young Experiencers attend the local college. Our low pricing and high quality of food will

attract many young adults as they leave campus for lunch, dinner, or a quick snack. 226 East

Main Street is smack dab in the center for customers traveling between Jacksonville, Central

Point, and Medford. This will maximize the “face time” our business gets as thousands of

people pass by an hour.

In conclusion, I would like to thank you for your time. It takes a lot to invest into a company, but

ick the correct one. The Lumpia Liar offers the best price,

around. With your time and investment, we can bring the

a is dire need of.

even more to analyze and p

promotion, product, and location

Rogue Valley treat that it

Work Cited

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17 May 2011.


http://cratercomets.com/bis/csb/business_plan/works_cited_reference _guide.html

A site that lists many reasons to open a business in Southern Oregon. It consists of the

weather, events, and location that the Rouge Valley is lucky to have. It helps justify our market.

Acemart.com. 2011. Web. 29 May 2011. http://www.acemart.com/ .

"Best Places to Launch a Small Business 2009 ‐ Medford, OR ‐ FORTUNE Small Business."

Business, Financial, Personal Finance News ‐ CNNMoney. CNN, 2011. Web. 28 May 2011.

http://money.cnn.com/smallbusiness/best_places_launch/2009/snapshot/209.html .

A cite that proves Medford is a growing community. Also, sponsored by a relatively large

company, CNN. This site contains graphs comparing Medford's growth to the average city.

"Central Point, OR ZIP Codes, Demographics, Job Listings, Schools, Income Stats & More."

MuniNetGuide ‐ Your Hub for Municipal Related Research. RICIC, 2011. Web. 24 May

2011. <http://www.muninetguide.com/states/oregon/Central_Point/>. Muni Net Guide,

provides the average income per house hold in the Rogue Valley. This cite was

exceptionally useful when re‐working my demographic and psychographic graphs. I wish

I had come across this the first time.

"Choosing the Legal Structure of Your Business ‐ Sole Proprietorship, Partnership, LLC,

Corporation, S‐Corporation." Home Business, Start Your Home‐Based Business with

PowerHomeBiz.com. 2011. Web. 29 May 2011.

http://www.powerhomebiz.com/vol3/legalstructure.htm .

"City of Medford Oregon ‐ Demographics." City of Medford Oregon ‐ HOME. CI, 2010. Web. 29

May 2011. http://www.ci.medford.or.us/page.asp?navid=79 .

Fischer, John. "Luau Foods and Recipes ‐ Hawaii Food Glossary." Hawaii Travel and South Pacific

Travel ‐ About.com Hawaii Travel Guide and South Pacific Travel Guide. About.com,

2011. Web. 29 May 2011.

http://gohawaii.about.com/od/recipes/a/luau_foods_and_recipes.htm

"Free Food Services‐Drinking Places Sector Sole Proprietor Financial Reports by BizStats." Free

Business Statistics, Financial Ratios and Industry Statistics by BizStats. 2010. Web. 30

May 2011. http://www.bizstats.com/sole‐proprietorship‐business‐

financials/accommodation‐food‐services‐drinking‐places‐17.0000/food‐services‐

drinking‐places‐17.0400/show .

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"Google Maps." Google. Google, 2011. Web. 29 May 2011.

http://www.google.com/lochp?hl=en

http://cratercomets.com/bis/csb/business_plan/works_cited_reference%20_guide.html

http://www.acemart.com/

http://money.cnn.com/smallbusiness/best_places_launch/2009/snapshot/209.html

http://www.muninetguide.com/states/oregon/Central_Point/

http://www.powerhomebiz.com/vol3/legalstructure.htm

http://www.ci.medford.or.us/page.asp?navid=79

http://gohawaii.about.com/od/recipes/a/luau_foods_and_recipes.htm

http://www.bizstats.com/sole-proprietorship-business-financials/accommodation-food-services-drinking-places-17.0000/food-services-drinking-places-17.0400/show



http://www.google.com/lochp?hl=en


Medford Oregon – A Great Place for Entertainment in the Rogue River Valley | Business

Networking." Businessnetworking. BREZA, 23 Jan. 2011. Web. 28 May 2011.

http://businessnetworking.dailydevotionalword.com/2011/01/23/medford‐oregon‐a‐

great‐place‐for‐entertainment‐in‐the‐rogue‐river‐valley/ .

This site supports Medford, Oregon as being a viable and excellent spot to start a business.

BREZA explains how Medford consist of a great location and atmosphere.

"Prime Rate | Federal Funds Rates Discount Rate Fed Fund Reserve Lending COFI." Mortgage

Rates Credit Cards Refinance Home CD Rates by Bankrate.com. 2011. Web. 30 May

2011. http://www.bankrate.com/rates/interest‐rates/prime‐rate.aspx .

"Profile of General Demographics : 2000." Http://censtats.census.gov/data/OR/390414890.pdf.

Censtats, 2000. Web. 29 May 2011. http://censtats.census.gov/data/OR/390414890.pdf

Reis, Jeremy. "Choosing the Right Business Entity | Learnthat.com | Free Tutorial."

Learnthat.com: Free Tutorials, Training and Courses in Software, Computers, Finance,

Business, Certifications. Learn That, 2010. Web. 29 May 2011.

http://learnthat.com/2004/11/choosing‐the‐right‐business‐entity/

Savage, Ken. "Why Do People Skydive?" Ken Savage ‐ Making IT in Massachusetts. Web. 28 May

2011. http://www.kensavage.com/archives/why‐do‐people‐skydive/

This site may seem irrelevant to the Business Plan. However, I tied it in with my Self‐ Analysis. It

provides a quote about adrenaline and risk.

Sysco. 2010. Web. 29 May 2011. http://www.sysco.com/

"U.S. Department of Labor ‐ Wage and Hour Division (WHD) ‐ Compliance Assistance‐Fair Labor

Standards Act (FLSA)." The U.S. Department of Labor Home Page. U.S. Government,

2011. Web. 29 May 2011. http://www.dol.gov/whd/flsa/index.htm .

"The Sense of Taste." Users.rcn.com. 9 May 2011. Web. 17 May 2011.

<http://users.rcn.com/jkimball.ma.ultranet/BiologyPages/T/Taste.html>. This site

provided me with the six different types of taste receptors. It was a simple, yet crucial

part in my executive summary.

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"VALS™ | VALS™ Types | SBI." Strategicbusinessinsights.com. Strategic Business Insights, 2011.

Web. 29 May 2011. http://www.strategicbusinessinsights.com/vals/ustypes.shtml

http://businessnetworking.dailydevotionalword.com/2011/01/23/medford-oregon-a-great-place-for-entertainment-in-the-rogue-river-valley/

http://businessnetworking.dailydevotionalword.com/2011/01/23/medford-oregon-a-great-place-for-entertainment-in-the-rogue-river-valley/

http://www.bankrate.com/rates/interest-rates/prime-rate.aspx

http://censtats.census.gov/data/OR/390414890.pdf

http://learnthat.com/2004/11/choosing-the-right-business-entity/

http://www.kensavage.com/archives/why-do-people-skydive/

http://www.sysco.com/

http://www.dol.gov/whd/flsa/index.htm

http://users.rcn.com/jkimball.ma.ultranet/BiologyPages/T/Taste.html



WeatherForYou.com. 2011 8 Apr. 2011

http://www.weatherforyou.com/weather/oregon/ashland.html

A simple site that shows the history of cities and their weather. All it provides is weather

highs, lows, and averages. Includes rainfall and humidity.

Wholesale Restaurant Furniture, Booths, Restaurant Tables, Chairs, Bar Stools. Web. 29 May

2011. http://restaurantseatingdirect.com/home.asp .

"Why Would a Company Use LIFO Instead of FIFO?" Accountingcoach.com/. 2011. Web. 29 May

2011. http://blog.accountingcoach.com/lifo‐fifo/

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http://www.weatherforyou.com/weather/oregon/ashland.html

http://restaurantseatingdirect.com/home.asp

http://blog.accountingcoach.com/lifo-fifo/


Section 5: Appendix

Selection Letter

The Lumpia Lair Gerald Jakabosky 230 North 2nd Street Central Point, Oregon, 97502 541-941-0531

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March 28, 2011


Mr. Frances Hedge SBA Loan Officer Bank of America 845 N. Highland Street Medford, OR 97501

Dear Mr. Hedge:

Lumpia Lair would be a small walk‐in restaurant. Though small, it will make you feel as if you were eating in a shack right on the beach of Honolulu, Hawaii. Frivolous and island‐themed walls would bring happiness as our customers chow down. Our main product would be lumpia, a Filipino eggroll. However, other island food like spam masubi and island‐cut short ribs would be served. To make all this possibly I would need your help to start my business. Once the community has tasted our lumpia and we start generating revenue, we can be a self‐sufficient company.

Lumpia Lair would create a market that does not yet exist in the Rogue Valley. There are many

island foods located in the valley, but none are authentic. Competition is existentially no one.

The closest thing to our shack would be Noho’s. We would represent this market with a fast

and friendly customer service. Are food would only be made with the finest types of spices

from the Philippines. Many Americans crave a fast, yet fulfilling meal. Lumpia Lair would be able

to provide customers with a quick snack or a luscious meal.

I believe that Lumpia Lair will be an incredibly successful business and bring a little bit more flavor to the traditional dining pleasure. With the correct advertisement our business will be a powerhouse in the food industry. I look forward to further discussing my ideas with you, and would like to schedule a time to meet with you. You can contact me at (541) 941‐0531 or e‐mail via [email protected]

Sincerely,

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Gerald Jakabosky


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