Oklahoma Food Cooperative, Logo by Member Sarah Naylor

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Oklahoma Food Cooperative Draft Setup Budget

FIXED ASSETS
4-way Display Self Lozier 140
1200 Sq. ft. metal shelves 1299
misc other display fixtures 1000
euro style produce displays 6000
Medium Duty Manager's Special Display 165
Watermelon Display 205.91
Total Display Fixtures & Equipment

8810
Refrigerator Federal Reach-In 4 shelf 250
True Stainless ReachIn Commercial Freezer (4) 1700
refrigerated deli display 2000
New Sliding Door Display Freezer Merchandiser (2) 3950
Traulsen 2-Door Refrigerator with Casters (2) 3000
TOTAL refrigeration display fixtures

10900
2-Door New Everest Sandwich Prep Table 1450
boiling water canner (2, 15 qt jar capacity) 248
2, 19 qt jar capacity pressure canners 878
electric grain mill 400
quality tabletop food mixer 250
small can sealer 179
large can sealer 625
4 tier dough rising shelf 150
kitchen exhaust fan 650
backup generator system 5000
miscellaneous pots, pans, cutlery 1000
Stainless Steel Microwave Oven 699
140 Qt Hobart Mixer w/ Attachments 3551
4 Deck Bakery Oven Steam Capable Stainless Steel 1499
Hobart 1612 Food, Meat, Cheese, Deli Slicer 340
Restaurant Gas Range 36" 6 Burner w/ 29" oven 1199
Hamilton Beach Blender 440 oz Polycarbonate Container 79.66
3-compartment Bar Sink 629.99
TOTAL KITCHEN EQUIPMENT

18827.65
Systems Design Turnkey $23,000 23000
2 Computers @$1000 2000
10 x 12 x 8 walkin cooler, complete 6400
ice maker 1700
8 shoping carts 2800
2 cash registers 850
2 point of sale barcode packages 2150
2 POS scales 910
20# Hanging Produce Scale (3) 472
Hobart SP1500 Scale Printer 305
TOTAL MISC. EQUIPMENT

40,587
OTHER EQUIPMENT (things we will need but haven't specifically identified yet, this category may increase or decrease as plans are finalized)

20,000
TOTAL FIXED ASSETS

99,124
budget plus 20% hedge 118,949


STARTUP OPERATING BUDGET One year 6 months
Rent, 6Kft2 at $3/sq ft 18000 9000
utilities 12000 6000
store insurance 2500 1250
general manager, salary 45000 22500
general manager, benefits/taxes, etc 9000 4500
employees, 84 hrs/wk @ $15/hr total exp inc benefits 65520 32760
volunteer cost, 84 hours week @ $9/hr (discounts on purchases for volunteer hours, this amount represents what the coop would pay the producers to make up for the volunteer discount) 39312 19656
annual meeting 2500 1250
other 12000 6000
TOTAL OPERATING BUDGET

205832 102916
NON RECURRING SETUP EXPENSES
property deposit 2500
utility deposits 1000
Renovation at $3.sq ft 18000
architectural design services 8000
Other 2000
Total

31500
SHARE SELLING CAMPAIGN
state fair booth 1000
advertising 4000
printing/postage 1000
miscellaneous 500
Total

6500
TOTAL with one year operating expenses

243832
TOTAL with 6 months operating expenses

140916
with 10% hedge

268215.2 155007.6
BOTTOM LINE STARTUP COSTS, 1 YEAR OPERATING EXP SCENARIO 3000 members 2000 members
fixed assets with 20% hedge 118949 40 59 share price
1 year operating exp with 10% hedge 268215 89 134 voluntary loan from members
TOTAL SHARE PRICE & VOLUNTARY LOAN with 1 year operating costs in bank at beginning 129 194
BOTTOM LINE STARTUP COSTS, 6 MONTHS OP EXP SCENARIO 3000 members 2000 members
fixed assets with 20% hedge 118949 40 59 share price
6 month op exp with 10% hedge 155008 52 78 voluntary loan amount
TOTAL share price and voluntary loan with 6 months operating expense to start 91 137
Note: the voluntary loans from members would bear interest at 5% per annum, and members could loan more than an equal share of the setup operating expense, or they could only buy a share and not participate in the loan program. We also may get grants to cover some of this setup operating expense in which case the amount of money we would need to borrow would be less.
ANNUAL OPERATING EXPENSE INCLUDING MEMBER LOAN REPAYMENTS
A. borrowing one years operating expenses from members
Rent, 6Kft2 at $3/sq ft 18000
utilities 12000
store insurance 2500
general manager, salary 45000
general manager, benefits/taxes, etc 9000
employees, 84 hrs/wk @ $15/hr total exp including benefits 65520 based on one employee on duty per hour the store is open
volunteer cost, 84 hours week@ 9/hr 39312 based on one volunteer on duty per hour the store is open
annual meeting 2500 volunteer cost is in the form of discounts on purchases
other 12000
interest/principle payments to members 61000
Total 266832
NECESSARY REVENUE TO COVER BUDGET
3000 members, 20/week 3,120,000 gross revenue
at an average commission of 7.5% 234,000
at an average commission of 9% 280,800
B. borrowing 6 months expenses from members
Rent, 6Kft2 at $3/sq ft 18000
utilities 12000
store insurance 2500
general manager, salary 45000
general manager, benefits/taxes, etc 9000
employees, 84 hrs/wk @ $15/hr total exp including benefits 65520
volunteer cost, 84 hours week@ 9/hr 39312
annual meeting 2500
other 12000
interest/principle payments to members 35100
ESTIMATED TOTAL AN OP EXP 240,932
NECESSARY REVENUE TO COVER BUDGET
3000 members, 20/week 3,120,000 gross revenue
at avg commission of 7.5% 234,000
at avg commission of 8% 249,600


ITEMS NOT IN THIS BUDGET THUS FAR (but need to be added):

  • Allowance for returned checks not paid.
  • credit card charges (if we decide to take them)
  • cost of getting a Bar Code license
  • Cooperative education permits,
  • government fees
  • product write offs due to store error,
  • shoplifting
  • memberships (i.e. National Cooperative Business Council, etc.)
REVENUE SOURCES
One idea of a commission structure:
Basic commission 0.07
processed foods, more than 50% OK content 0.09
processed foods, less than 50% OK 0.1
processed foods, our kitchen 0.12
  • instore displays/kiosks
  • fees for use of store kitchen