Cookie Shop
BUSINESS PLAN



Cookie Shop Business Plan 720
Photo by: pucci raf

GRANDMA MILLER'S COOKIES & MUFFINS


216 Hawke Rd.
Muskegon, MI 49440


This plan for the purchase of an existing small business does a nice job of illustrating, in specifics, how the business will be improved. Dynamic ideas for increasing community involvement and exposure are clearly stated. The low overhead cost of operation and the creative ability of the entrepreneur are stressed as the keys to a successful venture, and both are displayed in the plan's content.





BUSINESS PLAN

Background

Grandma Miller's Cookies & Muffins was established about eight and a half years ago, and the current owner, Hannah Welles, has owned it for about two and a half years, selling it for health reasons. Hannah has an excellent rapport with her customers and is very knowledgeable about the area. Currently, the business shows a modest profit. Although the markup on the cookies is very good (i.e., sugar cookie dough sells for $1.85/lb., and the retail price of the finished cookies is $6.59/lb), the overall cost of goods sold is about 50 percent due to the serving of light lunches, muffins, soda, and juices (see menu).

As pointed out by an accountant, any sales over the current volume, 50 percent, is profit. As a result, sales could be doubled within the first twelve to eighteen months.



STRATEGY

The first of two steps to increase sales would be to become an active member of the Muskegon Chamber of Commerce (membership is over 400). Through past Grand Rapids Chamber membership and previous employment in Muskegon, I have made many business contacts in the area: Electronics Midwest, Rogers H. Theatre, H&G Sales, and Paper Towne Goods.

The business climate in Muskegon is very good. There are very few empty stores and there is strong merchant cooperation (on the Saturday before Halloween the stores offered treats and I help hand out over 1,000 cookies). The cookie shop is open three Sundays a year during the January Ice Fair, Summer Art in the Streets, and the September Fall Festival.

The second step would be implementing a strong advertising campaign. I plan to begin six months of advertising in the local paper, the Town Tattler (circulation about 21,000), announcing the new ownership and inviting people in to meet the new Grandma Miller, and some monthly specials. Both the Tattler and Sentryman newspapers do public relations articles on new businesses and ownership changes. I will change the name to Grandma Miller's Cookie Pantry and use a pantry as a focus for advertising, flyers, and business cards in the shop.

After becoming familiar with the day-to-day operations, I plan to employ one person (a relative) one day a week to learn the business in case of an extended absence. This will also allow me to visit the various industrial and office complexes to market cookie and muffin trays for business meeting and promotions. My contacts will be mostly with companies' seminar/group meeting planners.

My marketing strategies include but are not limited to:



SUPPLIER

On November 10, 1994, I visited Grandma Miller's dough supplier, in Holland, Michigan. She had originally started Grandma Miller's Cookies in three locations: Lansing, Grand Rapids, and Muskegon. After a death in the family of the initial cookie dough supplier, Ceceila offered the opportunity to buy the dough business. She subsequently sold the Grandma Miller's stores and moved to Holland and is currently involved with retail and wholesale business under the name of Jolene's Cookies. Cecelia has indicated her willingness to help with new ideas and products.



SALES

My future plans for the business are to maximize sales potential, which may take several years. I anticipate the expansion of the gift basket market, a build-up of wholesale accounts, including the introduction of party planning. I believe both previous owners looked into franchising, but I do not see that as an option in the short run.



COMPETITION

Area competition is very small for the cookie and muffin business. The lunch business in downtown Muskegon consists mainly of Karen's Cafi across the street, which serves the quiche/croissant, sandwich, and dessert trade. One block away is Penny's Deli, which serves deli sandwiches, salads, and beverages. The Boothe Bar takes care of the hamburger crowd. There are few other eateries in town. Limited seating at Grandma Miller's (eight inside and two outside during the summer) has encouraged customers to phone in their orders and pick them up along with a drink and dessert. Two blocks away a coffeehouse has opened and stays open until 11:00 p.m. Although it serves some of the same muffins and cookies as Grandma Miller's, and the coffee bean prices are comparable, the coffeehouse attracts a different crowd than Grandma Miller's.



DAY-TO-DAY CHALLENGES AND OPPORTUNITIES

The most difficult function is following the fine line of quantity overbaking and not having enough cookies later in the day. Despite a sophisticated cash register that totals an hourly sales figure, and detailed recording by Hannah, there is no set pattern of daily activity. One Tuesday could be a sellout and the next Tuesday there could be several bags of day-old cookies, which sell quickly the next day. Hannah has developed some recipes for bar cookies—using crumbled cookies as a base and adding a fruit topping and a "drizzle." These could be sold in the store or packaged for a catering truck.

I have dropped in the shop at various times during the day and observed a very busy opening (at 8:00 a.m.) with people getting their coffee and muffins before going to work. The business slows down until lunchtime and varies throughout the afternoon. This allows for a build-up of the business, so that the ovens are used more than 10 percent of the day. (Using convection ovens, a batch of cookies can be baked in 15 minutes.)



LAYOUT

The store still looks good after almost nine years. The custom-made counters and cabinets are made of oak, with glass fronts, and good quality wallpaper makes for a neat appearance. Besides bringing in a pantry, I want to use an oak trim along the ceiling to give an overall cozy appearance. New wallpaper with matching material for curtains and for the liners of the cookie baskets will freshen up the sales area for a long time. I would like to put in a new floor covering and paint the back work area.



MISCELLANEOUS

Since this is going to be a one-person operation, I plan to add business interruption insurance to the overall business insurance package. I also plan to add a disability package to my personal health insurance.

Attached is a current resume of my educational background and a work history. However, it does not reflect my creative talents, which I have used in an antique and collectible business and in extensive family party planning. I have taken a floral design class and mold my own chocolates. I hope to expand my business, Your Organizing Friend, through Grandma Miller's Cookie Pantry.

Although my professional team is not complete, I have an attorney who is handling the closing and other aspects of the purchase and lease negotiations. I also have a CPA consultant, but he is a relative and won't be handling the actual accounting functions.

Hannah's interest in Grandma Miller's is waning, and I feel that it is the right time and niche for me to devote my full-time and creative energies to the business.



MENU

Cookie Shop Business Plan

Grandma Miller's Cookie Pantry
An Adventure in Richness Filled with Memories of Home
Grandma Miller's Cookie Pantry Offers...
Gourmet Cookies Muffins
Sugar Banana Chocolate Chip
Oat Bran Chocolate Chip (no cholesterol) Cranberry Nut
Oatmeal & Golden Raisin Cherry Yogurt
Peanut Butter Crunchie Blueberry
Chocolate Chocolate Chip/ Apple Cinnamon
White Chocolate Chunks  
Chocolate Chunk Orange Blossom
Chocolate Chip Carrot Cake
Chocolate Chip Pecan Almond Poppyseed
Crispie Chewie Lemon Poppyseed
Macadamia Nut/White Chocolate Chunks Zucchini Raisin
Cookie of the Month Pumpkin
  Peach Granola
  Corn
Cookie Shipping Low-Fat Fruit Bran
(includes gift wrapping and postage) Five-Grain
  Mini Muffins (dozen only)
2-pound cookie heart  
Fresh-brewed flavored coffee by the cup/or buy by the pound
Light Lunches Other Menu Items
Sandwiches or Croissants Variety of Beverages

Cookie Shop Business Plan

Soup of the Day Sticky Buns
Chili (in season) Bagels
Chicken & Tuna Salads  
SPECIALITIES  
Molded Chocolates, Cookie & Muffin Trays, Gift Baskets


RESUME

Summary

Donna Crawford


Business professional with proven effectiveness in sales, personnel, and consumer relations. Skilled in coordinating resources, people, and ideas to produce maximum results. Analytical, creative, and capable of working with minimal supervision. Interest and demonstrated ability in public relations, events planning, and fundraising.

PROFESSIONAL EXPERIENCE

Sales: 10 years in real estate sales


Personnel: Six years in civil service and at a private personnel agency

Project Management: One year as a field representative with Floral Worldwide Delivery Group (FWDG) and long-term association with the Muskegon Historical Society.

Self-Employment: 15 years in family antique business

EDUCATION

MichiganTechnological University B.S., business administration; Major: marketing

Continuing Education Courses in management, special events marketing, travel tourism and convention planning, and introductory computer course

PROFESSIONAL AFFILIATIONS/SOCIETIES

Muskegon Chamber of Commerce; Zeeland Historical Society; Community Assistance Services, Inc. (group homes), board of directors.



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