The Pasta Tree is Springfield’s only fresh pasta retailer. The Pasta Tree has sold fresh pasta products at its own shopfront as well as in five local natural food stores over the last three years. For the past three year, The Pasta Tree has enjoyed a loyal customer base which has led to an increase in sales of 15% every year. The Pasta Tree expects to gross over $300,000. This was achieved with an initial investment in excess of $80,000

Pasta Tree will expand its operations to distribute to all major supermarket chains in the city. There are fifteen major supermarkets operating in Springfield. Additionally, there are more than thirty-five smaller grocery shops that serve the growing metro area. The Pasta Tree must double its production to meet increasing product demand. Only a small portion of the expansion will be possible with owner funding and internal cash flow. Pasta Tree will be able to secure a $50,000 loan in order to expand its production facility. Sales projections for the next three years are based on current sales success with the target customer base in Springfield.

This plan will allow sales revenues to grow to almost $420,000 annually by Year 3.

Pasta Tree can be found in a 3,000 square foot building that serves both as a retail storefront and as a production site. The expansion will see production take up 3/4 of the space. The preparation of the new production space will cost $10,000. New equipment will add $30,000. To meet the increased demand, the company must also upgrade its packaging equipment. This will cost $10,000.

Pasta Tree will launch a new marketing campaign in grocery stores and supermarkets that will carry its products. To attract new customers, we created eye-catching in-store displays. To promote new sales, the displays will also contain discount coupons.

The Pasta Tree is a sponsor of The Canal Run. This event raises funds and awareness for childhood cancer research.

1.1 Objectives

The Pasta Tree’s goals are:

• Product quality can be improved by expanding production facilities.
• Establish strong sales in major supermarket chains around the city.
• Maintain tight control of cost and operation during expansion.

1.2 Mission

The Pasta Tree’s mission statement is as follows:

• Quality – Our products are of the highest quality and freshest pasta.
• Value – We provide greater value to our customers with delicious, nutritious products.
• Integrity Customers rely on our quality pasta products. The Pasta Tree’s commitment to the highest quality is what gives our customers their trust. We guarantee our customers that our products will not let them down.