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Executive Summary
Jenny’s Homemade Ice Cream is an artisanal ice cream shop in San Diego, California. We serve San Diego with various unique, high-quality ice creams made from ingredients sourced in California.
Jennifer Warmidge is our founder and owner. Her mission is to provide ice creams free from artificial flavors and unnecessary preservatives. Jenny's Homemade Ice Cream is a space for genuine connections and forming memories with ice cream.
Our target market includes a wide range of San Diego’s population. Our ice creams are suitable to be enjoyed by families, adults, and individuals who prefer ice cream with whole ingredients. Those with an appreciation for novelty are drawn to Jenny's Homemade Ice Cream.
We have had success in our first year of operation and aim for steady growth. We aim to increase our net profit by 225% over the next three years.
Jenny's Homemade Ice Cream is seeking an $80,000 bank loan to fund equipment, an event-space fit-out, working capital and marketing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $318,740 | $391,470 | $458,830 |
| Gross margin | 56.5% | 52.8% | 52.1% |
| Net profit / (loss) | $10,698 | $18,888 | $34,765 |
Company Overview
Jenny’s Homemade Ice Cream, registered as an LLC in San Diego, is an artisanal ice cream shop for the San Diego community.
We use family recipes for natural ice cream with unique flavors. Our ice cream is made from ingredients sourced in California, as we believe in pouring into the local economy. Our customers enjoy a jovial atmosphere where they can make memories. Jenny’s is the type of establishment you grow up in.
Jenny’s Homemade Ice Cream is 100% owned by Jennifer Warmidge. Jennifer has practical and theoretical education in the culinary arts and chose ice cream as her specialty. She has food allergies and wants to create a product that anyone can enjoy.
In the year we have been operating, Jenny’s Homemade Ice Cream has become a fan favorite in San Diego. We have gained a substantial social media following and have tourists visiting us now. Our goal is to increase our net profit by 225% over the next three years.
Legal structure: LLC
Mission: To make natural, allergy-friendly ice cream from California ingredients that anyone in San Diego can enjoy, building long-term loyalty through quality and a welcoming shop.
Objectives:
- Year 1: Reach a revenue target of $318,740 and build a loyal customer base
- Year 2: Expand service capacity, grow revenue to $391,470, and hire additional staff
- Year 3: Grow net profit to $34,765, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The global ice cream market is large and growing steadily.
Ice cream stores make up a small percentage of the ice cream distribution channels worldwide. Our largest competitors are supermarkets, hypermarkets, and convenience stores.
San Diego has many ice cream stores. The ice cream market is fragmented and highly competitive with no clear dominant players.
Competitive analysis:
Strengths
- Range of ice cream flavors
- More time in operation (stronger brand)
- Better location
- Loyal customer base
Weaknesses
- Complaints about customer service
- Open at 12 pm or later
- High prices
- Ignores wellness and allergy customer segment
Opportunities
- Consumers are becoming more health conscious and prioritizing whole, organic ingredients.
Threats
- Large stores launching new products at a fast rate
- A large number of ice cream stores and retailers
Customer analysis:
We have identified the following segments of ice cream consumers:
- Children
- Teenagers
- Couples
- Health Enthusiasts
- Tourists
The ice cream market is fragmented. We need to target all of these segments to turn a profit. It makes no sense to be niche when there is an opportunity to reach more people.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Handel's Homemade Ice Cream | Established brand, wide reach | Higher price point, less personalised |
| Salt & Straw | Strong marketing, national presence | Generic offering, less specialist focus |
| Jeni's Splendid Ice Creams | Competitive pricing | Standardised, less tailored service |
Jenny's Homemade Ice Cream’s competitive edge: Natural ice cream made from family recipes and California ingredients, dairy-free versions of every flavor, and a focus on customers with allergies set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Jenny’s Homemade Ice Cream sells artisanal ice creams. We have seven flavors, all available in dairy-free variations. Our flavors are chocolate, apple pie, salted caramel, vanilla, strawberry cheesecake, and two seasonal flavors that we rotate every month. We also do custom ice cream cakes.
Jenny’s Homemade Ice Cream is in Little Italy, San Diego. We chose this spot away from the busiest tourist areas because our main focus is San Diego residents. We want to make connections with locals who will visit the shop regularly.
We are open 5 days a week, from 10 AM to 8 PM. Our sales revenue goal is $26,560 per month. We aim to support this by renting the space for events on the two days that it is closed.
Jenny’s Homemade Ice Cream is run by Jennifer Warmidge and her daughter Penelope Warmidge. The team is set to expand in the next few years but we are keeping it small at the moment to maintain low costs. Our target market spans a wide range of ages, as most people enjoy ice cream.
Our single scoops are priced at $5. This is a bit higher than some ice cream shops, but our customers are willing to pay for our quality. We have Two for One Tuesdays to bring more people into the shop. You get two single scoops for the price of one. People generally add more toppings and bring friends, so we don’t have a loss.
Pricing strategy: Pricing is set to be competitive within the San Diego, California, USA market while reflecting the quality of our ingredients and recipes. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from people searching for artisanal ice cream in San Diego
- Social media — active presence on relevant platforms to build brand awareness and engage prospective customers
- Referral program — incentivized referral program for existing customers; target 30% of new customers via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in San Diego, California, USA
- Google Ads — targeted paid search campaigns for high-intent keywords around seasonal flavor launches
Marketing budget Year 1: $14,700 (about 5% of projected revenue)
Additional marketing notes:
Jenny’s Homemade Ice Cream will use pastel colors and vintage fonts to emphasize the homemade feel of our business.
Our social media pages have generated 30% of our sales this year, so we will continue aggressively marketing the business on social media. We have Instagram and TikTok pages that we post every day. Our content includes videos of how we make ice cream, informational pieces about the ice cream industry, and trendy videos with our staff and customers who consent.
Our customer base is segmented into children, teenagers, health-conscious people, couples, and tourists. All of these segments are on social media to some extent. For those of our customers who don’t have social media, we market in the spaces they commonly frequent.
Children: playgrounds, schools, children’s fun centers. Teenagers: schools, malls. Health Conscious: gyms, wellness centers, hiking trails. Couples: public bulletin boards. Tourists: hotels, B&Bs, tourist hotspots.
Operating Plan
| Personnel | Department | Task | Deadline |
|---|---|---|---|
| Jennifer Warmidge | Finance | Bookkeeping | Continuous |
| Jennifer Warmidge | Purchases | Negotiate contracts with suppliers | 2 April |
| Penelope Warmidge | Marketing | Plan social media posts for the week and create content | Weekly on a Sunday |
| Jennifer Warmidge | Production | Make ice cream | Weekly |
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Jennifer Warmidge (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Full-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licenses and permits for artisanal ice cream shop operations in San Diego, California, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments kept up to date
Management Team
Jenny’s Homemade Ice Cream is completely operated by the owner, Jennifer Warmidge. She performs all management functions and is one of two employees on the floor.
Jennifer has a degree in food science from the University of Guelph and trained at an authentic gelato shop in Italy for one year after her studies. She then got a degree in business administration and worked in banking for over a decade. Her specialty was financing small restaurants.
Her experience with small food enterprises and education in food sciences equip her to finally follow her passion. She fell in love with ice cream during her studies and training and now runs Jenny’s Homemade Ice Cream full time.
We aim to appoint a management team as the business picks up. Our long-term goal is to become a franchise and open more locations in California and, eventually, the country.
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance over the forecast period.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $318,740 | $391,470 | $458,830 |
| Direct Cost of Sales | $92,430 | $112,640 | $131,560 |
| Production Payroll | $46,300 | $72,100 | $88,400 |
| Total Cost of Sales | $138,730 | $184,740 | $219,960 |
| Gross Margin | $180,010 | $206,730 | $238,870 |
| Gross Margin % | 56.5% | 52.8% | 52.1% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Advertising/Promotion | $12,400 | $13,900 | $15,300 |
| Other Sales and Marketing Expenses | $2,300 | $2,650 | $2,900 |
| Total Sales and Marketing Expenses | $14,700 | $16,550 | $18,200 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $48,600 | $52,800 | $57,200 |
| Depreciation | $16,900 | $18,100 | $19,900 |
| Dues and Subscriptions | $1,350 | $1,420 | $1,490 |
| Professional Fees | $4,800 | $5,100 | $5,350 |
| Rent | $41,400 | $42,640 | $43,920 |
| Software Purchases | $3,240 | $3,480 | $3,660 |
| Insurance | $4,650 | $4,890 | $5,120 |
| Telephone and Internet Access | $1,680 | $1,740 | $1,810 |
| Utilities | $9,840 | $10,320 | $10,860 |
| Miscellaneous | $6,900 | $7,650 | $8,340 |
| Payroll Taxes | $9,016 | $11,866 | $13,832 |
| Total General and Administrative Expenses | $148,376 | $160,006 | $171,482 |
| Total Operating Expenses | $163,076 | $176,556 | $189,682 |
| Profit Before Interest and Taxes | $16,934 | $30,174 | $49,188 |
| EBITDA | $33,834 | $48,274 | $69,088 |
| Interest Expense | $3,392 | $6,265 | $5,182 |
| Taxes Incurred | $2,844 | $5,021 | $9,241 |
| Net Profit | $10,698 | $18,888 | $34,765 |
| Net Profit/Sales | 3.4% | 4.8% | 7.6% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $305,990 | $375,811 | $440,477 |
| Cash from Receivables | $10,200 | $15,077 | $17,814 |
| Subtotal Cash from Operations | $316,190 | $390,888 | $458,291 |
| Additional Cash Received | |||
| New Long-term Liabilities | $80,000 | $0 | $0 |
| Subtotal Cash Received | $396,190 | $390,888 | $458,291 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $103,916 | $136,766 | $159,432 |
| Bill Payments | $183,667 | $216,189 | $243,300 |
| Subtotal Spent on Operations | $287,583 | $352,955 | $402,732 |
| Additional Cash Spent | |||
| Long-term Liabilities Principal Repayment | $8,600 | $10,900 | $11,900 |
| Purchase Other Current Assets | $600 | $1,100 | $800 |
| Purchase Long-term Assets | $46,800 | $8,400 | $12,600 |
| Subtotal Cash Spent | $343,583 | $373,355 | $428,032 |
| Net Cash Flow | $52,607 | $17,533 | $30,259 |
| Cash Balance | $71,007 | $88,540 | $118,799 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $71,007 | $88,540 | $118,799 |
| Accounts Receivable | $2,550 | $3,132 | $3,671 |
| Inventory and Other Current Assets | $6,800 | $7,900 | $8,700 |
| Total Current Assets | $80,357 | $99,572 | $131,170 |
| Long-term Assets | |||
| Long-term Assets | $118,300 | $126,700 | $139,300 |
| Accumulated Depreciation | ($27,100) | ($45,200) | ($65,100) |
| Total Long-term Assets | $91,200 | $81,500 | $74,200 |
| Total Assets | $171,557 | $181,072 | $205,370 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $10,859 | $12,386 | $13,819 |
| Subtotal Current Liabilities | $10,859 | $12,386 | $13,819 |
| Long-term Liabilities | $71,400 | $60,500 | $48,600 |
| Total Liabilities | $82,259 | $72,886 | $62,419 |
| Paid-in Capital | $85,000 | $85,000 | $85,000 |
| Retained Earnings | ($6,400) | $4,298 | $23,186 |
| Earnings | $10,698 | $18,888 | $34,765 |
| Total Capital | $89,298 | $108,186 | $142,951 |
| Total Liabilities and Capital | $171,557 | $181,072 | $205,370 |
| Net Worth | $89,298 | $108,186 | $142,951 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $318,740 | $391,470 | $458,830 |
| Product, food and production staff costs | $138,730 | $184,740 | $219,960 |
| Gross profit | $180,010 | $206,730 | $238,870 |
| Gross margin | 56.5% | 52.8% | 52.1% |
| Salaries, wages and payroll taxes | $57,616 | $64,666 | $71,032 |
| Marketing and advertising | $14,700 | $16,550 | $18,200 |
| Rent and utilities | $51,240 | $52,960 | $54,780 |
| Other operating costs | $39,520 | $42,380 | $45,670 |
| Total operating expenses | $163,076 | $176,556 | $189,682 |
| Interest and income tax | $6,236 | $11,286 | $14,423 |
| Net profit / (loss) | $10,698 | $18,888 | $34,765 |
Break-even analysis:
- Estimated fixed monthly costs: $13,600
- To cover fixed costs, Jenny's Homemade Ice Cream needs to generate approximately $24,100 in monthly revenue
- Projected Year 1 revenue of $26,560 per month sits above break-even from the start of the forecast
Key financial assumptions:
- Revenue growth of 23% in Year 2 and 17% in Year 3 based on planned capacity expansion and marketing investment
- Product and food costs estimated at 29% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs (before payroll taxes) set at 30-32% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget set at 4-5% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; customers pay at the counter
Funding requirements:
Jenny's Homemade Ice Cream is seeking an $80,000 bank loan to fund the following:
| Use of funds | Amount |
|---|---|
| Equipment and fit-out | $46,800 |
| Working capital (6 months) | $21,700 |
| Marketing launch | $6,500 |
| Legal, licences, and professional fees | $5,000 |
| Total | $80,000 |
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