Posts Tagged ‘business plan’
General Donut Shop Questions
February 27, 2011 | 
Author Here are some more questions I have been recieving over the past several months.... I am going to do a posting once or twice a week of all the questions I have recieved.. Don't worry I will not post your name or give any identifying information.. If you don't want your questions published, let me know. You can click on the Ask A Question tab to ask your question.
Richard asks…
I gotta have some ideas to increase sales for my donut shop.. do you have any ideas? Especially around the holidays?
I was trying to ask this on the forums but was locked out for some reason and I have had no response from admin... I purchased an established donut business and would like to find out how to drum up business... and bring more attention to my shop... I would like to keep it clean since it is a family business and town..
John answers:
First I'd like to congratulate you on your donut business.. I should be asking you questions not hte other way around.. 
But how about having some holiday donut decorating classes, how to make donuts and the fillings that go in there... Have some special holiday only specials.. really decorate your store for the holidays.. Maybe you could do somethng for the kids as well.. like have a coloring contest with a prize from the store.. perhaps maybe even sponsor some senior or children's events at your store.. I know that a store (not donut) does that around my area and seem to be quite successful with it...
Linda asks…
I work for ( manager) for a donut shop and need some ideas?
I am trying ot think of things i can bake and sale for halloween i am going to try candy apples but is there anything else u think would be good or u would like to see in a donut shop???
John answers:
I would try anything with nuts and candy corn, add some orange color in there... always a hit..
Robert asks…
I am looking for a donut cutter in madrid?
John answers:
I don't think donuts are cut.
Maria asks…
I am a student and am looking to find out the percentage percent charged on gross sales by a franchise (for a donut shop)
I am doing research for school and am purchasing mock businesses... I chose to start a donut shop.. I am going to use your blog (with your permission) to get some ideas and mention in my assignment... thanks so much!!!
John answers:
That is very interesting... good luck on your project.. We still have a ways to go, but we are well educated (we feel) in the area of donuts.. To answer your question, not all franchises charge a percentage of sales..
I emailed you some links about franchising, specifically donuts, and yes you can use our blog in your research. Good luck!
Posted in Donut Business Questions | 
Tags: bake, basis, bread, business, business plan, candy, climate, customer, cutter, Decorate, donut business, donut franchise, doughnut business, doughnut franchise, doughnut recipe, event, family, flower, foot, General, good, goodwill, halloween, help, holiday, how to start a donut business, how to start a doughnut shop, hte, industry, Information, luck, machinsJohn, madrid, manager, margin, Nuts, orange, percent, permission, Pretzels, prize, project, reason, sale, shop, something, store, student, tab, Thanksgiving, time, town, work | 
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The Importance of a Business Plan for Your Donut Business
We have discussed this before several weeks ago but I wanted to bring out a couple more things about the importance of a business plan when you start out your donut business. The business plan of your doughnut business is how investors will see your company if you need them. It also includes your marketing operations and sales process. It is the blueprint of your business.
When you meet what the committees that runs at fairs and festivals in your area or other areas, or you are trying to negotiate a lease for your donut shop, is your business plan that would do most of the talking. Your business plan will let everyone know your projected sales and expenses and what you plan to achieve with your business. You can also look at this later to see if you are actually realizing the goals you have set out in your donut business plan. In your business plan you will also want to take note of who your competition is, this is something that we did not mention before. We will do a blog post about competition and how it relates to your donut business in the next several weeks. Competition is an important factor in how much money you make. But I think everyone knows that, they just don't think about it when they open up their business.
Your business plan will give you focus on your development. It will also provide a logical framework for which you to work and establish goals for your company. Your donut business plan will provide information to investors, banks and shareholders if you decide to go that route. As we have mentioned before, it also will let you know how well you are doing as you move forward in your business.
Not having a business plan, is like driving somewhere you have never been, without a roadmap. Is never a good idea to start or operate a business without a business plan. It is no exception for your doughnut shop, be smart and develop a business plan. The time it takes now to write one will save you a lot of headaches later.
The Downfalls of a Donut Business Franchise
We talked yesterday about the benefits of having a doughnut businessness franchise. Today we will discuss the downfalls of having a doughnut franchise. There are many reasons why going with a franchise may not benefit you or be best for your particular situation. The first reason why having a donut franchise May not be the best idea are the very high startup costs. Not only will you have a high startup costs, but the donut franchise will expect you to have a reasonable cash flow and high net worth. These two things alone will keep many people from being able to afford a donut business franchise. Opening a good business franchise usually requires that you have been successful in either another business or your job. Often times you can pool the resources of a few people in order to meet the requirements. It is never a good idea to get into a business, especially a franchise situation, when you are strapped for cash or do not have your financial affairs in order. Another downfall of the franchise system is you lose some level of control over your business. You will be told when to do it and how to do it, after all is not your brand, and you do not own the brand. If the franchise wants you to change the look of your restaurant, you will have to comply with their request. Anything that the donut franchise would want you to do, you will need to pretty much do what they say. You have little if any control over what they may request. You are at their mercy most of the time. Not only will the donut franchise control how you run your business, but they take a chunk of your revenue as a royalty. This royalty is rarely negotiated and is Told to you up front before you buy into the franchise. The cost of doing business under a donut franchise system is very high. You have the cost of the building, utilities and several employees to be concerned about. We want to keep things small and simple, this is why we are going with the single menu item donut business model. The cost or low end of profits can potentially be very high. When you start having to build buildings and being involved in a franchise it gets very expensive very quickly. You will need much more money in order to survive opening a franchise.
Getting a Business License and Other Chores before Starting Your doughnut business
Setting up your business can be an overwhelming task at first. You are excited about your idea and you know that you can make a lot of money. There are only a couple of things that stand in your way. Hopefully, you have your business and operations plan ready to implement. You are aware of your market and projected revenues. Now all you have to deal with are the state and local governments, and comply with their standards.
The first thing you will need to do is register your business with your state government. Most of the time you will find this information online. It is a good idea to classify your business as an LLC ( limited liability company) and not as a sole proprietorship. After you register your business with the state, You'll need to get a food handlers permit and a business permit from your local government. Again, your state's government webpage will point you in the direction of where to go and what forms to fill out.
After you have your food handlers permit and business permit, you will need to apply for a federal ID number. You can go to IRS.gov to apply for the ID number. You'll use this number to report the income that your company makes. You will want to record all revenue and expenses that you incur as related to your business. This will also help you on your personal taxes.
After you have your federal ID number for your doughnut business, you will need to register with the state's employment office if you intend on having employees. You will need to record each employee that you intend on hiring with the state. It is always a good idea to be certain you are within the law when you hire employees. It is a hassle, but worth it in the end, so that you may sleep at night knowing that all your employees are legal. Having your company an LLC, will give you some level of protection as well, in case you are sued.
Once you have registered with state, local, and the federal government, you are pretty much ready to start selling doughnuts. All you need to do is market the product. But you have already taken care of this in your business plan, so you know exactly how you are going to market your donut business. Being organized when starting a business is never a bad idea. Also being compliant with federal state and local laws will help you sleep at night. The doughnut business can be very profitable, but if you do not play the game correctly, you can end up owing a lot in fines and penaltiesTo the government, because you did not pay the appropriate taxes on your business. Be smart and get off to a good start.
Posted in Business Plans, New Business | Tags: business plan, employees, federal id number, projected revenues | No Comments »
Developing a Business Plan For Your Donut Business
Developing a Business Plan For Your Donut Business
By [http://ezinearticles.com/?expert=David_Pierce]David Pierce
This first series of articles will focus on the basic components of a business plan. While there are numerous books, on-line articles and other sources available they do not specifically deal with the concept of starting a donut business. I will outline the components of a standard business plan with this in mind so that what you learn will be specific to what you need.
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So what is a business plan? A business plan is a written statement divided into topical sections that takes both the writer and potential readers from the business concept through planning and finally to implementation of the concept into a workable business. It provides a step-by-step guide that includes a description of the business concept, research, marketing, financial projections, and more.
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Probably the most crucial part of the plan is the very beginning, the Executive Summary. This is the part that summarizes all the information in the later portions of the plan making it a clear and concise synopsis. Ironically, one should write the Executive Summary last once all the other parts are in place as it is much easier to summarize that way. If you are seeking funding for your donut business from a bank or an investor, this is the part they will want to see first. The Executive Summary is what hooks them and makes them want to know more about the business. The rest of the plan will then be read, but if the Executive Summary is less than convincing then you may not be able to even get your foot in the door.
The Executive Summary should be composed of little bits of the other parts of the plan--that is why you write it last. Think about targeting the wording. Who will be reading it? Is it a bank? A family member willing to lend you money? A government agency? Do a little homework on your reader to figure this out.
You need to get the reader excited about the concepts within by talking about one or two of the most impressive features in great detail. But, don't make it lengthy. Two pages is the maximum length, and it should take no longer than 5 minutes to read. Save the details for later in the plan. It may be tough to fit everything into such a short space, but brevity is paramount to hold a potential investor's attention.
You may not be seeking funding for your donut business because you have other sources of start-up money. Do you still need a business plan? Yes. It will make you think things out in detail, saving you time, money, and possibly heartache later on. Even if you are the only one who reads it a business plan is still an invaluable item. The better prepared you are to start your business the sooner you will be able to make your dreams a reality.
David Pierce is owner of [http://www.mydonutbusiness.com]Donut Business where he blogs step by step on how to operate a donut concession business.
Article Source: http://EzineArticles.com/?expert=David_Pierce http://EzineArticles.com/?Developing-a-Business-Plan-For-Your-Donut-Business&id=3296135
