Joe’s Red Hots Company’s Business Plan

Looking at Joe’s Redhots’ turnover, we can deduce that the firm is strong and has potential for further growth. The risk in extending loan to the firm is minimal considering the tools the firm has been using. The repayment method will need to be decided and the rate of return will have to be reevaluated.

We will write a
custom essay
specifically for you

for only $16.05 $11/page
308 certified writers online
Learn More

However, Joe’s overall assets in dollar are mentioned to actually be receptive to ask any management about the loan. But we have to sit with the financial bank and work on the actual formula with regard to the payment of the loan from any company. We have to find out what ways or forms they want it in. If they want it in cash, cheque, and bank draft or how they want it. We have to also know if the refund will be made on and yearly basis or weekly basis.

Joe’s Redhots is known for its promotional personality, providing the consumer something special every week for saving money and for fun. The company is in an overall strong competitive position to help Joe. The company can pursue its business very profitably. The company can change the weaknesses into strengths by providing the loan and threats into opportunities by making Joe’s Redhots stronger than before. The company is running a portfolio of investments. The company can diversify from its core business into its new business. The company has much potential to cooperate with Joe’s Redhots.

We have to find out about Joe’s Redhots history on the repayment of the loans with other companies. What other mortgage assets or documentation are they going to use to support the loan, so we are fully secured?

It would be interesting to know if Joe has other business similar or different. So, we can track back to those companies in order to provide loan to Joe’s Redhot. Our company is not so new to give such a heavy amount to such small or big enterprises. We have been running the company for 30 years now. So, we will not have any problem and we will surely help them. We will help them in all way possible.

We also have provision in our arsenal of fund so Joe could be able to expand his business, by franchising. Joe will have to do a lot of marketing to reach his goal in his business. If Joe’s business accelerates much of the extra money will be used to purchase carts. Joe can give an ample amount of flyers and samples all year long and stay in the 10 percent budget limit.

On TV advertisement Joe has used $500/30 second ad-station. For the radio, Joe has used $50 to $100 /60 second ad station. In the newspaper, Joe, spent about $500/ ad and in Card signage about $100. And flyers $100 @ $0.10 each. Promotional activity includes free sample, help make Joe’s customer to get that they are getting higher quality products and give polite service for the limitation in price.

Get your
100% original paper
on any topic

done in as little as
3 hours
Learn More

Each of Joe’s carts which cost about $20,000 is able to house an ample amount of food to serve about 200 to 250 meals a day. All of Joe’s products are natural and of no artificial flavorings. The slogan which Joe’s uses to get his customers attracted is, “Joe’s Redhots- Satisfy yourself for $2.00. You deserve it!” Using something attractive like this shows that he is willing people to come to his enterprise and at least try what he has.

Joe’s Redhots 2005 sales to reach $3 million, with net earning of $212,500. Sales are expected to reach $12 million, with a net earning of $ 1,280,000 by the end of 2008. Joe’s has grown to annual sales of $1.8million in three years with net earning of $128,900 from a single cart in 1997. The sales estimate in $1000 is as follows. In the year 2004 and in comparison to year 2008, the sales he got in 2004 were $1,800 and in 2008, the sales were $12,000. He did have an improvement as time went by. The net profit in year 2004 was $129 and on the other hand, the net profit in year 2008 was $1,280. The estimation Joe had in mind was $1,000 sales per week @ $6.00 average per sales. So, in accordance to this, he did do as he had expected.

Joe Hirasawa, company founder and president, graduated from the University of Wisconsin has many years of food service experience as a chef and restaurant manager. His family owns food Products Company to distributors and utilize sales. Joe grew up with work experience in almost every phase of the family business. He has traveled to many parts of the world very much, studying how to service the food and food nutrition as it is practiced my restaurants all over the world. He is able to speak in different languages, so his cuisine is respected for all. He is fluent in Spanish and Italian. In 2001, he played an active role in the Entrepreneur-of- the-Year award from the Chicago Restaurant Owners Association. I will be informing my company about all these positive characteristics of Joe then they positively give the loan of $1 million to him.

Joe has an estimated earning of $7.7million to about $12.8 million in five years. If we look at year 2004, we will come to a conclusion that the Total Long-term liabilities are $203,450 and the Total Long-term assets are $355,375. The total assets are $374,375 and total liabilities and owner’s equity is $374,375. Joe is quite capable of paying a back a loan of $1million. He is quite organized and does keep a complete record of his expenditures. Joe has an organized way of running his food enterprise. The more the carts Joe adds his business gets a rapid growth. Joe’s Redhots plans to spend at least 10 percent of net sales during the first year.

Joe’s can handover flyers and samples of his product all year round and still stay in the boundary of 10 percent budget limit. If Joe’s business is profitable, more than expected, the extra profit will be used to purchase the additional carts he needs.

After seeing how Joe has handled the whole situation my company can offer a loan to Joe for an amount of $1,000,000 without any restrictions. Joe can earn a profitable amount from the hotdogs he sells, that he will be able to pay back the loan to my company without any restrictions.

My company has decided to do this according to the thought that Joe’s Redhots are sold at a great amount. He earns more than he spends and that is what a business of any sort consists of. Profit is the thing which all businessmen need and desire. Without any profit, businesses are terrible.

We will write a custom
essays
specifically
for you!
Get your first paper with
15% OFF
Learn More

Joe’s Redhots has given us an overview of the various loss and profits he was getting overall from the time he started his business to current. Joe’s Redhots used so much advertisement just to make his hotdogs popular all over Chicago, Illinois. His hotdogs, which were just sold for $2.00, made him in to such a good position until now.

Another positive point, which Joe had, was that he was known as the “best place to have a quick lunch”. The reason behind this is that he had the cleanest carts, the most cleaned servers, the purest and most freshened products, and of the best values. The products were 100 percent all natural, with 30 percent of meal items, and snacks consisting of low-fats, as less than four grams fat per serving. Joe also has the nutritional products available for all customers on request of consumers. Joe’s menu consists of three specials per day at a low price. During winter season there are different and hot items and during the summer season there are cold and frozen items for the consumers.

All the ingredients are made with no artificial coloring, preservatives or any source of differenciation when it comes to competing. The cart owners must have one year experience and training with the company in order to be professional. Joe never wants his customers to realize that he is making them to have inexpensive and healthy food. Even though the signification is hotdogs, each and every one of Joe’s carts offers nutritious and reasonable priced food. The busy people who work at offices always want hotdogs at a very reasonable price and it should be healthy enough for them to meet their dietary requirement. Joe’s Redhots are very hygienic and no harmful chemicals are used in them. Joe’s message is “inexpensive satisfaction plus indulgence.”

Joe is also known for his promoting personality and offered customers something new every week for them to save money and get some enjoyment. Each week Joe’s Redhots has some type of special bonus for his customers. This makes the customer to come to his carts each week and pay $2.00, and get what they desire, in the least amount possible. These are the positive things that help Joe to have a profitable business.

Joe does give promotions to his customers, such as free samples and daily specials, to help realize that his customers are receiving high quality products. For Joe’s Redhots, he has to be extra kind and caring to his customers for them to come back to his cart, in order for them to purchase the hotdogs, for just $2.00.

In the five years, Joe had a net income (loss) of $1, 673, 11.1. The total expenses Joe has spend is $7, 357 49.1. The Gross Margin is $10,500 70.0.

The lesson we get out of this is that you don’t have to be a millionaire in order to start any business. For example, Companies like mine which offer loans, to enterprises or other companies, which can be relied on are there to help businesses like Joe’s to make them more established.

Joe did not just have carts and hotdogs; he had many other miscellaneous things with him to run this small business of his. All these miscellaneous things consist of important things which without these it would be impossible to run such a successful business like Joe’s Redhots. Joe’s Redhots have taken an excellent step in becoming professional. Now there are other cart managers who are following under his foot steps. Joe’s Redhots are one of the best in the Chicago, Illinois. He is an example for all.

Need a
100% original paper
written from scratch

by professional
specifically for you?
308 certified writers online
Learn More
Print Сite this

Cite this paper

Select style

Reference

StudyCorgi. (2021, August 26). Joe’s Red Hots Company’s Business Plan. Retrieved from https://studycorgi.com/joes-red-hots-companys-business-plan/

Work Cited

"Joe’s Red Hots Company’s Business Plan." StudyCorgi, 26 Aug. 2021, studycorgi.com/joes-red-hots-companys-business-plan/.

1. StudyCorgi. "Joe’s Red Hots Company’s Business Plan." August 26, 2021. https://studycorgi.com/joes-red-hots-companys-business-plan/.


Bibliography


StudyCorgi. "Joe’s Red Hots Company’s Business Plan." August 26, 2021. https://studycorgi.com/joes-red-hots-companys-business-plan/.

References

StudyCorgi. 2021. "Joe’s Red Hots Company’s Business Plan." August 26, 2021. https://studycorgi.com/joes-red-hots-companys-business-plan/.

References

StudyCorgi. (2021) 'Joe’s Red Hots Company’s Business Plan'. 26 August.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal.