Do you want to start a kettle corn business and need to write a plan? If YES, here is a sample kettle corn business plan template & feasibility report.
As an aspiring entrepreneur, one business that you can successfully launch with less stress, minimal startup capital and little or no technical knowledge is kettle corn production. With this type of business, all you need are cast iron kettles, stirrers, spoons and sealing machines.
Kettle corn production is one business that can’t go out of fashion because people eat snacks on a daily basis. Depending on the scale you want to start, the startup capital for this type of business can range from low to moderate.
As a matter of fact, you can start your own kettle corn production business and then grow it big within a short period of time by re-investing your profits back to the business.
If you are sure that this type of business is what you want to do after you must have conducted your market research and feasibility studies, the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your products.
Below is a sample kettle corn production business plan template that will help you successfully write yours with little or no stress.
A Sample Kettle Corn Production Business Plan Template
1. Industry Overview
Kettle corn is made from regular popping corn. The difference between the regular popcorn and kettle corn is how the corns are popped. Traditionally, kettle corns are made in a large, cast iron kettle that has been oiled. The popcorn is popped before it is tossed with a little salt, and of course some sugar, to give it that addictive flavor.
Kettle corn production business belongs to the Popcorn Production industry and operators in this industry primarily produce popcorn, including ready-to-eat popcorn, kettle corn, microwaveable popcorn and other consumer packages of un – popped popcorn et al.
A close watch of events in the Popcorn Production industry, reveals that the industry has profited from increased demand over the last half a decade. As the economy experienced growth, discretionary income levels also experience upward movement.
Hence, renewed consumer spending has increased sales of kettle corn and other popcorns, along with nuts and seeds. With improvement in the economic conditions, the industry is expected to rake in more revenue.
Expected increases in per capita disposable income will aid some consumers to trade up to premium brands and product segments, helping drive revenue growth. In addition, as consumers demand more healthy versions of existing snacks, players in the industry are expected to introduce a wider variety of products especially in terms of packaging and branding.
Statistics has it that in the united states of America, the Popcorn Production industry generates over $2 billion annually from more than 314 standard and registered popcorn production companies, and the industry is responsible for the employment of over 3,821 people.
In the last five years, the industry grew at a 2.3 percent annual rate from 2013 to 2018. The companies holding the largest market share in the Popcorn Production industry are Conagra Brands Inc. and Snyder’s-Lance Inc. A recent report published by IBISWorld shows that the United States is the top producer and consumer of popcorn worldwide, in part due to the growth of ready-to-eat popcorn, over the past five years.
Industry operators have benefited from increasing per capita disposable income and falling corn prices. However, increasingly health-conscious consumers have become wary of high-calorie and high-sodium popcorn varieties and of the effects that microwave have on food products.
Nevertheless, the industry has remained resilient due to the ability of major companies to quickly adapt to changing consumer preferences by introducing healthier product lines. Furthermore, as the economy grew, increased disposable incomes drove the demand for premium-priced gourmet and organic popcorn products.
The kettle corn production business is indeed profitable, and it is open for any aspiring entrepreneur to come in and establish his or her business. You can choose to start on a small scale in a street corner like the average mom and pop business or you can choose to start on a large – scale distributing you products across key cities all across the United States of America.
2. Executive Summary
Unique Taste® Kettle Corn Production Company, LLC is a registered kettle corn production company that will be located in North Charleston – South Carolina but hopes to establish a robust distribution network all across the United States of America.
We are at the final stage of leasing a facility that is big enough to fit into the kind of kettle corn production company that we intend launching. The facility is located in between a farm settlement area and one of the largest residential estates in North Charleston – South Carolina.
Unique Taste® Kettle Corn Production Company, LLC will be involved in the production, packaging and distribution of different flavors of kettle corn. Our plan is to build our brand to become a household name in America. We want our kettle corn to be found in supermarkets and stores all across the United States of America.
We are aware that there are several kettle corn production businesses in North Charleston – South Carolina, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have delivery service options for our customers, and our outlet has various payment options.
Unique Taste® Kettle Corn Production Company, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Unique Taste® Kettle Corn Production Company, LLC is owned by Lewis Anderson and his immediate family members. Lewis Anderson has a B.Sc. in Food Science and a Diploma in Business Administration, with over 10 years’ experience in the popcorn production industry.
3. Our Products and Services
Unique Taste® Kettle Corn Production Company, LLC is in the popcorn production industry to sell different flavors of our well – packaged kettle corn and of course to make profits, which is why we will employ all the available and workable business strategies.
We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business.
4. Our Mission and Vision Statement
- Our vision is to become the leading kettle corn production brands in the whole of South Carolina and to favorably compete with other leading brand in the United States of America.
- Our mission is to build a kettle corn production company whose products can be found in supermarkets and grocery stores all across the United States of America.
- We also want to want to build an international brand and export our products to other countries of the world.
Our Business Structure
Our intention of starting a kettle corn production business is to build a standard business in North Charleston – South Carolina. Although we will supply our well – packaged kettle corn to supermarkets and grocery stores all across North Charleston – South Carolina, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Production Manager/Quality Assurance Supervisor
- Human Resources and Admin Manager
- Kettle Corn Makers/Workers
- Sales and Marketing Manager
- Accountants/Cashiers
- Customer Services Executive
- Van Drivers/Deliverers
- Cleaners
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Production Manager/Quality Assurance Supervisor:
- Responsible for managing the daily activities in the production facility
- Ensure that the production facility is in tip top shape and conducive enough to meet the required health and safety standards
- Reports to the Chief Executive Officer
- Attends to Customers complains and enquiries
- Handle any other duty as assigned by the CEO
Kettle Corn Makers/Workers
- Responsible for producing kettle corn
- Responsible for operating the sealing machine used in sealing kettle corn
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Van Drivers/Kettle Corn Deliverers:
- Delivers customer’s orders promptly
- Deliver correspondence for the organization
Cleaners:
- Responsible for cleaning the production facility at all times
- Ensure that toiletries and supplies don’t run out of stock
6. SWOT Analysis
Our intention of starting our kettle corn production company in North Charleston is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then supply our kettle corn to supermarkets and grocery stores all over South Carolina and Key Cities in the United States of America.
Unique Taste® Kettle Corn Production Company, LLC employed the services of an expert HR and Business Analyst with bias in popcorn production industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Unique Taste® Kettle Corn Production Company, LLC;
- Strength:
Our location, the business model we will be operating on, varieties of payment options, different sizes and flavors of well – packaged kettle corn and our excellent customer service culture will definitely count as a strong strength for Unique Taste® Kettle Corn Production Company, LLC. So also, we have a management team that has what it takes to grow startup business from survival to profitability within the shortest time – frame.
- Weakness:
A major weakness that may count against us is the fact that we are a new kettle corn production company and we don’t have the financial capacity to compete with huge companies who are already determining the direction of the market.
- Opportunities:
Studies shows that loads of people who engage in leisure activities purchase popcorn products because they are filling and convenient to eat on the go. In addition, many leisure activities such as watching TV or entertaining guests are often coupled with snacks including kettle corn/popcorn. Time spent on leisure and sports is anticipated to increase in 2019, hence opening up a potential opportunity for the industry.
- Threat:
The prices of agricultural commodities such as corn are subject to wide fluctuations due to unpredictable factors including weather, domestic and foreign government farm programs and changes in global demand. Producers pass on cost increases to customers through higher popcorn prices, resulting in greater returns.
However, weak demand from high prices can hurt industry performance. The price of corn is expected to remain stagnant in 2019, posing a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
Most companies that are into kettle corn production or similar snacks production are becoming more creative when it comes to packaging and branding their corn. The truth is that, if you can successfully package and brand your kettle corn to meet international standards, you can indeed successfully export your products to other countries of the world.
So also, keeping consumers’ appetites satisfied, the popcorn production industry has created new menu options that capitalize on the trend of increasing awareness of the health risks associated with a high – fat diet. The industry has also thrived by developing products at price points attractive enough to weather the slow recovery, resulting in strong revenue growth.
These trends are expected to contribute to revenue growth going forward. In the bid to maximizing profits, large scale kettle corn production companies now own maize farms. All they need to do is to position their food processing plant (where they make kettle corn) close to their farm.
8. Our Target Market
We have positioned our kettle corn production company to service supermarkets, grocery stores and other outlets all across North Charleston – South Carolina and other key cities all over the United States of America. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to retail our well-packaged kettle corn to the following groups of people and businesses;
- Supermarkets
- Grocery Stores
- Vegetarians
- Households
- Students
Our Competitive Advantage
A close study of the popcorn production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the competition and we are prepared to compete favorably with other kettle corn production companies in North Charleston.
Our location, the business model we will be operating on, varieties of payment options, different flavors and sizes of well – packaged kettle corn and our excellent customer service culture will definitely count as a strong strength for Unique Taste® Kettle Corn Production Company, LLC. So also, we have a management team that has what it takes to grow startup business from survival to profitability within the shortest time-frame.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the snacks food production/fast food industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Unique Taste® Kettle Corn Production Company, LLC will operate a standard kettle corn production company in North Charleston – South Carolina. In essence, our source of income will be the retailing and supply of different flavors of kettle corn.
10. Sales Forecast
One thing is certain when it comes to kettle corn production business, if you are able to cut cost of production, pay attention to branding and packaging and you able to build a robust distribution network, you are sure of generating good sales and of course make good profits from the business.
We are well positioned to take on the available market in North Charleston – South Carolina and in other cities in the United States of America, and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the popcorn production industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projection for Unique Taste® Kettle Corn Production Company, LLC, it is based on the location of our business and other factors as it relates to kettle corn production business startups in the United States of America;
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for launching Unique Taste® Kettle Corn Production Company, LLC, we conducted a thorough market survey and feasibility studies. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the popcorn production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in North Charleston – South Carolina.
In summary, Unique Taste® Kettle Corn Production Company, LLC will adopt the following sales and marketing approach to win customers over;
- Open our kettle corn production company in a grand style with a party for all.
- Introduce our kettle corn production company by sending introductory letters alongside our brochure to supermarkets, grocery stores, schools, event planners, households and key stake holders in North Charleston – South Carolina
- Make use of attractive hand bills to create awareness and also to give direction to where customers can get our kettle corn
- Position our signage / flexi banners at strategic places around North Charleston – South Carolina
- Have in-store ads to promote the fact that people can get a discount if they share a photo of our kettle corn on Instagram and mention our brand. We will also use a sign outside our store, and have our staff mention this to customers.
- Let existing customers redeem 2 packs of kettle corn if they bring along a friend and also if they make a social media post about this with one of our hashtags.
- Position our greeters to welcome and direct potential customers
11. Publicity and Advertising Strategy
Despite the fact that we are going to be starting on a small – scale supplying our kettle corn to supermarkets and grocery stores in North Charleston, we will still intensify publicity for the business. We are going to explore all available means to promote Unique Taste® Kettle Corn Production Company, LLC.
Here are the platforms we intend leveraging on to promote and advertise Unique Taste® Kettle Corn Production Company, LLC;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Run Instagram contests where customers can share their photos of our kettle corn. The photo that receives the most “Likes” can be rewarded with a discount or a free large packs of kettle corns.
- Ensure that our we position our banners and billboards in strategic positions all around North Charleston – South Carolina
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise Unique Taste® Kettle Corn Production Company, LLC business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and delivery vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
We know we don’t have the capacity to compete with bigger popcorn production companies, but we will ensure that the prices of our kettle corns are competitive with what is obtainable in the US market.
We are aware that there are contracts for the supply of kettle corn by government establishments, NGOs, corporate organizations or big religious organization during events; we will ensure that we abide by the bidding pricing template when we bid for such contracts.
- Payment Options
The payment policy adopted by Unique Taste® Kettle Corn Production Company, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Unique Taste® Kettle Corn Production Company, LLC will make available to her clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our kettle corn without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
When it comes to starting a kettle corn production business, the major areas that you should look towards spending the bulk of your cash is in the purchase of kettle corn making machines and of course renting or leasing well located facilities.
Aside from that, you are not expected to spend much except for paying of your employees and the purchase of supplies. These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Unique Taste® Kettle Corn Production Company, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
- The cost for construction of a standard facility for mass production and packaging of kettle corn – $100,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (corns, salt, sugar, oil, other ingredients and packaging materials et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of distribution vans – $20,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a Website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of two hundred and fifty thousand dollars ($250,000) to successfully set up our kettle corn production company in North Charleston – South Carolina.
Generating Funds/Startup Capital for Unique Taste® Kettle Corn Production Company, LLC
Unique Taste® Kettle Corn Production Company, LLC is a private business that is solely owned and financed by Lewis Anderson and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Unique Taste® Kettle Corn Production Company, LLC is to ensure that we continue to make available a wide range of flavors of kettle corn, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. Unique Taste® Kettle Corn Production Company, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility to accommodate a standard production factory: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of kettle corn making equipment, distribution vans, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with supermarkets, grocery stores, and vendors – suppliers of corn, ingredients and packaging materials: In Progress