Salsa Manufacturer Business Plan

Salvador's, Inc.

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Company Summary

2.0 Company Summary

Salvador's is in its third year of operation, increasing sales five-fold in its second year, and is on track to repeat this in its third year. It has a good reputation, excellent people, an increasing position in the local market, and opportunities to reach out into other states. Starting with a few outlets for our products, we now have over 40, with two large grocery chains in the approval process of carrying our full line of products, and a large distributor intending to sell over £100,000 worth of our products annually.

• See enclosed copies of letters from Moctezuma Foods, Inc., Meijer, Inc., and others.

2.1 Company Ownership

Salvador's is a privately-held C Corporation owned in total by its co-founders, Ricardo and Pat Torres.

2.2 Company History

Salvador's has been hindered only by the lack of working capital it had in its initial stages of setup and operation. Sales are growing steadily, with the cost of goods sold consistently decreasing. But to make significant headway in this area, additional capital is needed to purchase ingredients and processing in larger volumes, thereby reducing the costs of goods sold by 32% overall.

Past Performance

Past Performance
	1993	1994	1995
Sales	£0	£4,224	£21,050
Gross Margin	£0	£2,451	£14,160
Gross Margin %	0.00%	58.03%	67.27%
Operating Expenses	£0	£12,028	£20,719
Collection Period (days)	0	0	0
Stock Turnover	0.00	6.00	5.00
Balance Sheet
	1993	1994	1995
Current Assets
Cash	£0	£0	£126
Accounts Receivable	£0	£0	£0
Stock	£0	£0	£3,492
Other Current Assets	£0	£0	£0
Total Current Assets	£0	£0	£3,618
Fixed assets
Fixed assets	£0	£0	£23,368
Accumulated Depreciation	£0	£0	£9,792
Total Fixed assets	£0	£0	£13,576
Total Assets	£0	£0	£17,194
Current Liabilities
Accounts Payable	£0	£0	£0
Current Borrowing	£0	£0	£16,207
Other Current Liabilities (interest free)	£0	£0	£0
Total Current Liabilities	£0	£0	£16,207
Fixed liabilities	£0	£0	£0
Total Liabilities	£0	£0	£16,207
Paid-in Capital	£0	£0	£25,000
Retained Earnings	£0	£0	(£9,755)
Earnings	£0	£0	(£14,258)
Total Capital	£0	£0	£987
Total Capital and Liabilities	£0	£0	£17,194
Other Inputs
Payment Days	0	0	0
Sales on Credit	£0	£0	£0
Receivables Turnover	0.00	0.00	0.00

Past Performance



2.3 Company Locations and Facilities

Currently we have one location in suburban Perrysburg. It includes the production area, offices, and warehouse area. We are currently looking into plans to increase the size of the warehouse by adding a location, and providing a store front to enhance the current business sales practices, while providing a high quality, ethnic outlet for Hispanic foods.