Haute Chocolate

HAUTE CHOCOLATE

WE DESIGN CHOCOLATES

Haute Chocolate

COVER LETTER
13 January 2010 To ____________ Sir: I am currently seeking an investor for my company, Haute Chocolate which provides freshly made gourmet chocolate delicacies. We heard that your bank is always looking forward to flourish new ideas. Based on your banks interest, we believe that our business plan may be of interest to you, and have enclosed a copy. Before reviewing the plan, please sign and date the Confidentiality Agreement which is located just below the cover page. Haute chocolate is a hospitality company dedicated to providing high-quality freshly made chocolates in a comfortable ambiance for clients who seek a fun "gourmet" experience outside restaurants. We intend to make enough profit to generate a fair return for our investors and to finance continued growth and development in quality products. We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work. We are seeking Rs._5 million. This financial assistance would be used in purchasing and the establishment of the following purposes: 1. Equipments 2. Shop leasing ( with 6 months advance rent) 3. Supplies 4. Layout and dcor of the shop 5. packaging Thank you for your consideration. Please contact me if you have any questions, it would be our pleasure to provide with additional information. If, upon completing your review, you would like to discuss this matter further, please do not hesitate to contact me, by telephone at 0332-527828292, by email at Haute_chocolate@gmail.com. Yours sincerely
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Zahid Rasheed Financial Manager Haute Chocolate

COVER SHEET

Name of the company: Haute Chocolate We design chocolates Date: 13th Jan, 2010

Owners of the company:

1. Hozaima Shafqat Chief Chocolate Artist

2. Maham Shahid Host 3. Zahid Rasheed Financial Manager

Address: F10 Markaz, Islamabad

Email:
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Haute.Chocolate@gmail.com

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STATEMENT OF PURPOSE
We want to start off a new exciting idea of a chocolate shop within the reach of common people in Islamabad providing freshly made chocolates delicacies. For this purpose, we want to establish an outlet in F10 Islamabad for which we require financial assistance of about 3.5 million rupees. This financial assistance would be used in purchasing and the establishment of the following purposes: 6. Equipments 7. Shop leasing ( with 6 months advance rent) 8. Supplies 9. Layout and dcor of the shop

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EXECUTIVE SUMMARY

Haute chocolate is a new innovative idea of establishing a chocolate shop in Islamabad which is managed by three partners. The charming idea of having an outlet only for chocolate products of all kind will surely attract the residents of Islamabad. Haute chocolate will offer a full range of freshly made chocolates products containing every kind of chocolates, cakes, cookies and coffee. Hozaima Shafqat is our Chief Chocolate Artist and will train our hired chocolate artist in preparation and decoration of chocolate products. This business plan is prepared to obtain financing in the amount of RS. 350000. The supplemental financing is required to begin work on site preparation and modifications, equipment purchases, and to cover expenses in the first year of operations. Self financing has already been secured in the form of equal investment from each partner which is Rs. 15 million. In Islamabad, our potential client is divided between local residents and tourists. We expect to easily generate sales to existing chocolate lovers, who will immediately recognize the quality of our products and services. Marketing to the much larger local groups who are in love with chocolates will emphasize our atmosphere (cozy, intimate, luxurious), our prestige-value (high prices, the sophistication of having a favorite "exotic" and fresh chocolates), and our wide array of potential gifts (gift baskets, chocolates, coffee). Sales to tourists depend on a highly-visible location, association with the quaint charm of our town, and promotional efforts in cooperation with other local businesses. We have direct competition with already available packed chocolates in our area. Haute chocolate uniqueness will work in our favor, as our upper-middle class customer base seeks out new status markers and mini-luxury experiences in a convenient, nearby location. Our well-researched and conservative sales forecasts project sales over Rs 300,500 in the first month. We project a net profit in the first year of over Rs.111, 083, with steadily increasing net worth for the foreseeable future. The owners are investing Rs. 5 million of their own money into the business.

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Haute chocolate is seeking an additional investment of Rs. 35 million to fund our startup costs.

TABLE OF CONTENTS
1. History and background .. 7 2. Goals and Objectives .9 3. Product and services ..10 4. Ownership .13 5. Management ..13

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6. Marketing ...14 7. Finance ..16 8. Appendix ..19

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1. HISTORY AND BACKGROUND

Chocolate stirs up the emotions like no other food. Since its discovery, we have used it to express our feelings, soothe our bodies and minds and celebrate a wide array of social occasions. The origins of this wonderful substance can be traced back over four thousand years, to the ancient civilizations of South America. Inspired by the childhood fantasy of Charlie and the chocolate factory, we chocolate lovers indented to fulfill our chocolate dream. In a place like Islamabad where there is a trend to adapt modern lifestyle provides a perfect scenario to open such an outlet of joy. Islamabad is a city with many hangout places for youngsters like coffee shops, ice cream parlors etc. most of them serving some chocolate specialty. So there is a need to have a place that serves all about chocolates under one roof. Haute chocolate caters all group of people as Chocolate is love by everyone; Nine out of ten people like chocolate. The tenth person always lies... (Anonymous) The lot that usually hangs out at these places i.e. the youth, and being the capital city the large number of foreigners residing here are the potential customers for our chocolate shop. It is a unique idea for Islamabad as there is no other chocolate shop available in the vicinity. Giving away chocolates on occasion is very old tradition of the western world so this idea would specially attract tourists and the foreigners. These customers will be glad to pay the premium price for our products in exchange for the high quality, great taste, and sense of prestige they receive.

TARGET MARKET:
Our target market will consist of people that are young, outgoing and trendy and belong to the elite class of Islamabad. They are the same people that spend a lot on occasions like birthdays, Valentines Day and eid.

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Our target market includes those people who can afford to buy luxurious products. The age group that well be targeting is 14-35 mainly including teenagers and youngsters. This is however not a strict and definite limit. The important attributes of our product would mainly include good quality chocolate, a variety of tastes and flavors that appeal to our target market at the whole. It will also include unique packaging of the chocolates, and customization of chocolates will be an option for the customers who want to get something made for a special occasion, be it a wedding anniversary, Valentines Day or a birthday.

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2. GOALS AND OBJECTIVES

MISSION STATEMENT:

Haute chocolate is a hospitality company dedicated to providing high-quality freshly made chocolates in a comfortable ambiance for clients who seek a fun "gourmet" experience outside restaurants. We intend to make enough profit to generate a fair return for our investors and to finance continued growth and development in quality products. We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work.

VISION STATEMENT: We want to win over the hearts of our customers and make Haute chocolate a destination store for visitors and a resource for locals seeking baking chocolates and gifts, knowledge of chocolate.

GOALS: Short term Goal: to establish our chocolate shop and bring it in a running condition Midterm: to achieve the level by winning the trust of our customers that brings in a favorable profit to us. Long term: to launch our company as a country wide brand. OBJECTIVES:

To achieve our above mentioned goals, firstly we need to secure financing for our company. Once we get the finance, we need to establish our shop, create such an ambiance for our customers that will attract them back every time they think of chocolates. With this we need to maintain our quality standards and the freshness of our chocolates with efficient service to fulfill our customers need.

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3. PRODUCT AND SERVICES

Haute Chocolate will specialize in premium chocolate, fine handmade chocolates, and gift baskets. Our full Haute Chocolate experience is complemented by an assortment of unique, exclusive designs, all suitable for gift giving or indulgence for local customers or tourists. Smell Our Chocolate. We're passionate about our assortments containing the finest pure milk, pure dark and white chocolate. Our dales cream fudge and traditional cinder toffee add to the feast of hand-made confectionery delights. Taste our chocolate. We know you will appreciate the skill that goes into making our handmade chocolates and no more so than when it reaches your taste buds! Chocolate Gifts. With over two hundred different varieties to choose from, our range of decadent chocolate boxes and delightful seasonal offers make ideal presents for all your friends and family.

WHY CHOCOLATE IS HEALTHY FOR YOU

Recent research confirms - chocolate is one of the more perfect foods consumed by man. It is: High in Food Value Contains Essential Vitamins and Minerals High in Antioxidants Good for Cholesterol Good for Cardiac Health Chocolate as a Mild Stimulant Chocolate as a Mood Enhancer

KINDS OF CHOCOLATES:
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Dark, milk. Confections. exotic flavored chocolates chocolates with health benefits

truffles
single origin chocolates hand-made bonbons chocolate barks gourmet nuts flavored cocoa mixes

Chocolate chip cookies Chocolate cakes Coffee Souffl Moses

And everything chocolate!

GIFT BASKETS AND BOUQUETS

Chocolates are the best gift to give to your loved ones; we offer a selection of pre-made gift baskets and will work with customers to create custom baskets for any occasion. Customer can also place the order of baskets or chocolates for a particular occasion. Occasions specials:

Seasonal specials Wedding specials Anniversary Birthday

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Haute Chocolate Miscellaneous occasion

Chocolates made and packed on order for different occasions.

ON SPOT SERVICES
The customer can enjoy our delicacies at our outlet. Choose different flowers. Select a post card.

WHERE DOES THE CHOCOLATE YOU USE IN YOUR CONFECTIONS COME FROM?
All our chocolate confections are created with unique blends of pure milk, dark and white chocolate. We source these blends from various Belgian chocolate manufacturers; this bulk chocolate is then melted and molded along with delicious filings and crunchy nuts to create the wonderful chocolates available to you in our store.

LOCATION
The purposed location of the outlet will be In F10 markaz Islamabad due to following reasons: Majority of our target customers are present in the vicinity of the sector such as it is close to the diplomatic enclave, margalla hills and sectors F11, F8, E11, etc. Our indirect competitors majorly reside in the neighboring sectors; F10 is a place with on such shop in it.

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4. OWNERSHIP
The shop will be run under the agreement of partnership between the following: Partner 1: Name: Hozaima Shafqat Investement: Rs. 5 lacs

Partner 2: Name: Maham Shahid Investement: Rs. 5 lac

Partner 3: Name: Zahid Rasheed Investemnet: Rs. 5 lac

5. MANAGEMENT AND STAFFING

Haute Chocolates will be slow to hire people in the first few years of operation, but very loyal to those who are hired. Initially all employees will be part-time as the majority of the work will be done by the chef-proprietor. As the company grows, new employees will be trained and supervised by original employees who have been promoted to a leadership position. It is our belief that employees who are dedicated to the success of Haute Chocolate should be rewarded. They will be leaders in our future store developments. Head Chocolate artist Chocolate artist Baker

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Financial Manager Host Sales person

6. Cleaning person

7. MARKETING
Our target market will consist of people that are young, outgoing and trendy and belong to the elite class of Islamabad. They are the same people that spend a lot on occasions like birthdays, Valentines Day and eid. Our target market includes those people who can afford to buy luxurious products. The age group that well be targeting is 14-35 mainly including teenagers and youngsters. This is however not a strict and definite limit. The important attributes of our product would mainly include good quality chocolate, a variety of tastes and flavors that appeal to our target market at the whole. It will also include unique packaging of the chocolates, and customization of chocolates will be an option for the customers who want to get something made for a special occasion, be it a wedding anniversary, Valentines Day or a birthday. COMPETITIVE ADVANTAGE Our competitive advantage is that our product is unique and innovative. There is a need for a fresh concept and we believe that it would be a hit among all chocolate lovers. There are many businesses designing clothes, shoes, accessories and handbags but there are none that design chocolates. Were doing just that. We are offering our customers freshness, ambiance and quality under one roof.

COMPETITOR ANALYSIS Although haute chocolate is opening up a new niche in the food industry, there is no doubt that we are competing with a variety of similar businesses. We need to compete against the ideas that dessert is something that only follows a special dinner and needn't be any better than a frozen cake. We

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want every day to be a reason to celebrate. And being able to watch your chocolates be prepared by a chef is a treat that appeals to everyone. As far as direct competitors are concerned we dont think that currently theres any other enterprise designing chocolates in Islamabad except for the packed chocolates like Cadbury, Mars etc. However there is the matter of indirect competitors and potential competitors. Our indirect competitors will range from any gift giving item from flowers to handmade cards and customized cakes. Our potential customers can be those enterprises that adapt our idea; these can include famous gourmet bakeries in town. GO TO MARKET SALES STRATEGY In the first phase, we will open up one outlet of haute chocolate in F10. We will also be placing our product in various gift shops like Haroons, Illusions etc. and also places like Hot Spot. Our promotion will mainly take place through word of mouth and viral marketing. We will also be using promotional tools such as Face book, promotional posters and internet blogs. We can also apply guerrilla marketing in this case, to spark the curiosity of our customers. We also need to come up with packaging that is at the same time unique and economical. We will also need to be flexible enough to meet our customers unique tastes and requirements for special occasions. TARGET MARKET SEGMENT STRATEGY We have specifically targeted segments of people with an appreciation for delicious desserts and a need for comfort and relaxation. Haute chocolate is a haven for the busy & successful who want to treat themselves to something soothing and a little sinful! It doesn't take a lot of time, yet is so rewarding. These people will value the high quality product presented without pretension. Our customers will also appreciate the fun and fast.

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8. FINANCE
It is key to our financial success to grow Haute chocolate not just as a dessert bar, but as a company. We are looking for an investment of Rs. 5 million seed money with the hopes of eventually selling an established chain of dessert bars or establishing our company as a gourmet franchise. This means we must always be reinvesting in the future of Haute Chocolates.

RISK:
1. Strategic: If our market strategy defined fails to bring us enough customers and profit. 2. Operational: Customers are not attracted by this idea. 3. Financial: The bank refuses to give loan or we are unable to pay back our investors 4. Natural: Due to any natural disasters, we can face lot of hardships such as load shedding, earth quakes etc. 5. Competition: Our Direct competition is with packed chocolates. Our indirect competitors like bakeries, ice cream parlors and cafes enhance their chocolate products. Haute chocolate would have a monopoly in Islamabad until any new chocolate shop opens up.

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BALANCE SHEET

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PROFIT AND LOSS STATEMENT Profit and Loss

Month 1 Month 2 Sales Rs. 300,500 Rs. 350,000

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Rs. 100,000 Rs. 10,000 Rs. 0 Rs. 120,000 Rs. 12,500 Rs. 0 Rs. 16,000 Rs. 50,000 Rs. 12,100
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Utilities Insurance Rent Payroll Taxes

Rs. 15,000

Rs. 3,000 Rs. 3,000 Rs. 50,000 Rs. 8,000

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Other Total Operating Expenses

Rs. 0 Rs. 186,000

Rs. 0 Rs. 213,600

Profit Before Interest and Taxes Interest

Rs. 1,14000

Rs. 136,400

Rs. 2917 Rs. 2917 Rs. 111,083 36.96% Rs. 133,429 38.12%

Net Profit Net Profit/Sales

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APPENDIX

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