Florida FBLA · Deliverio shares a common ground with businesses in other industries such as Uber, Facebook, Alibaba and Airbnb. Uber is the world's largest taxi corporation, but

Alex Patton Business Plan

Kyle Tom 2017-2018

Nicholas Mendoza

Florida FBLA Middleton High School

Middleton High School 1

Table of Contents

Executive Summary .............................................................................................................................................. 2

Company Description .......................................................................................................................................... 3 Legal Form of Business ................................................................................................................................................. 3

Effective Date of Business............................................................................................................................................. 3

Company Mission Statement/Vision ............................................................................................................................. 3

Company Governance ................................................................................................................................................... 3

Company Location ........................................................................................................................................................ 4

Immediate Development Goals ..................................................................................................................................... 4

Overview of Company’s Financial Status ..................................................................................................................... 4

Industry Analysis ................................................................................................................................................... 5

Description of Industry .................................................................................................................................................. 5

Trends and Strategic Opportunities within Industry ...................................................................................................... 6

Target Market ......................................................................................................................................................... 7

Target Market Defined .................................................................................................................................................. 7

Analysis of Markets Potential, Current Patterns, and Sensitivities ................................................................................ 7

Competition .............................................................................................................................................................. 8

Key Competitors ............................................................................................................................................................ 8

Competitor’s Strengths and Weaknesses ....................................................................................................................... 8

Potential Future Competitors ......................................................................................................................................... 9

Barriers to Entry for New Competitors .......................................................................................................................... 9

Marketing Plan and Sales Strategy .............................................................................................................. 10

Key Messages to be Communicated ............................................................................................................................ 10

Options for Message Delivery ..................................................................................................................................... 11

Sales Procedures and Methods .................................................................................................................................... 12

Operations .............................................................................................................................................................. 13

Business Facilities ....................................................................................................................................................... 13

Production Plan ........................................................................................................................................................... 13

Workforce Plan ............................................................................................................................................................ 14

Impact of Technology .................................................................................................................................................. 14

Management and Organization ..................................................................................................................... 15

Key Employees/Principals ........................................................................................................................................... 15

Board of Advisors ........................................................................................................................................................ 16

Plan for Identifying, Recruiting and Securing Key Participants .................................................................................. 16

Compensations and Incentives Plan ............................................................................................................................ 16

Long-Term Development ................................................................................................................................. 17

Long-term Goals .......................................................................................................................................................... 17

Risks Identified and Analyzed ..................................................................................................................................... 17

Strategy to Reach Long-term Goals............................................................................................................................. 18

Financials ................................................................................................................................................................ 19

Accounting System ...................................................................................................................................................... 19

Financial Projections ................................................................................................................................................... 19

1st Year Monthly Cash Flow ........................................................................................................................................ 20

1st Year Monthly Income Statement ............................................................................................................................ 21

Yearly Income Statements ........................................................................................................................................... 22

Financial Assumptions ................................................................................................................................................ 23

Loan Repayment .......................................................................................................................................................... 24

Supporting Documents ...................................................................................................................................... 25


Executive Summary

If all of the restaurants in the United States offered the service of delivering their food,

sales and profits would increase almost exponentially. Unfortunately, not all do and not

all can. In the United States alone, only 10%-12% of restaurants deliver food. Most of

which is Pizza. With Deliverio, not only will restaurants have increased profits, but

grocery stores will too. Furthermore, consumers of these food providers will be able to

have their desired food and/or groceries in a short time.

Deliverio is a delivery service launching in Tampa, Florida that acts as the middle-man

between restaurants and grocery stores. Deliverio connects consumers to providers via an

online website or through a mobile application for a small fare. All delivery drivers are

self-employed and work on their own schedule; therefore, they are able to gain

commission based on the size of the order and the number of orders they deliver.

Deliverio will operate within the structure of a Limited Liability Company with two

owners, Alex Patton and Kyle Tom each owning 35 percent of the company. There will

also be a board of advisors; this will be led by Nicholas Mendoza who will have 10

percent company and four other members each with a 5 percent share. Alex Patton will

focus on the company's financials as he has a background in accounting, and business

administration. Kyle Tom will devote his attention to the marketing aspect of the

company considering his past with other major companies and business administration.

This will include connecting and creating partnerships with restaurants chains and

grocery stores. Major decisions concerning Deliverio will be decided with 3 votes, 1 for

each owner, and 1 for the board of advisors. With Alex Patton and Kyle Tom focusing on

their section of the company, paired with the input and guidance of the board of

advisors, Deliverio is bound to grow into a profitable and prosperous business.

Deliverio will start-up with a bank loan of $30,000, an investment of $10,000 from both

owners, and $2,000 from the five board of advisors’ members. The bank loan has a 4.5%

interest rate stretching from January of 2018 to December of 2019. At the end of the first

year, profits are projected to reach a net income of about $249,330 and consistently

increasing every year.

With the food delivery industry being very meager, Deliverio plans to expand its services

to other regions of Florida once the company is the financial standpoint to do so.

By expanding its core delivery services, the plan is to lead the food delivery industry in

Florida, and eventually expand into surrounding states.


Company Description

Legal Form of Business Deliverio will be a limited liability company. The reasoning behind this decision is that

as a small business, the company will choose to be taxed as a partnership. This takes

advantage of a pass-through taxation method, meaning Deliverio and its owners will be

able to avoid double taxation. Furthermore, being an LLC will keep business debt

liability away from the owners. Compared to the companies’ full potential, Deliverio’s

profits in its beginning stages will be relatively low. Therefore, reflecting company

profits on individual tax returns will not be an issue. For these reasons, a limited liability

company best suits Deliverio.

Effective Date of Business Beginning on November 1, 2018, Deliverio will start reaching out to various restaurant

chains and grocery store businesses to create partnerships. On December 1, 2018,

Deliverio will begin out advertising via flyers, signs, and various web sources. The

launch of Deliverio is marked by the date in which its services become active in Tampa,

Florida on January 1, 2019.

Company Mission Statement/Vision Deliverio is a company that delivers food from restaurants and grocery stores.

At Deliverio, the purpose is to provide people with the luxury of having food delivered

whenever and wherever they desire with ease. Throughout this process, Deliverio aims to

keep the clients' priorities first.

Deliverio’s vision is nothing less than to connect customers of major grocery stores and

restaurants to a fast delivery system that is affordable and convenient.

Company Governance Between the two owners, Kyle Tom and Alex Patton will each own 35 percent of the

company. Both owners will equally contribute ideas and opinions for the progression of

the company. By collaborating with the board of advisors and analyzing each

decision, Deliverio's future is destined to go up-hill. All business decisions will be in the

best interests of the company.


Company Description (cont.)

Company Location

Deliverio will have no concrete location, but more of a

region that will offer its services. The cutoff will be the

urban area of Tampa, and its suburban counterparts.

These suburban areas will consist of downtown Tampa,

Westchase, Carrollwood, Brandon, Ybor City, Temple

Terrace, Town 'n' Country, and Seminole Heights.

In regard to a corporate office, headquarters will be

located at 5700 Memorial Highway, Tampa, FL 33615.

Immediate Development Goals

Create and develop a culture that displays the values and shared beliefs of the

company.

Advertise through television, newspaper, and major social media networks to

establish a presence in the Tampa Bay area.

Employ a dedicated workforce that will fulfill the demands of consumers.

Create business partnerships with as many restaurants and grocery stores as

possible to widen the variety for the end user.

Enforce various workplace techniques such as Kaizen for continuous

improvement.

Overview of Company’s Financial Status

With Alex Patton and Kyle Tom being primary shareholders, both owners will invest

$10,000 each into the company. A further 10,000 dollars will be accumulated through the

2,000 dollars from the each of the five board of advisors. Along with an approved bank

loan of $30,000, Deliverio will have an accumulated $60,000 of capital. The bank loan,

along with investments, will cover startup expenses such as the LLC startup fee, rent,

mobile application and website production, insurance cost, and advertising.


Industry Analysis

Description of Industry

Deliverio will be entering is the food delivery industry. Non-dominant, local competitors

such as GrubHub, Eat24Hours.com (A subsidiary of Yelp Inc.), DoorstepDelivery and

UberEats take up most of this industry.

Size: The food delivery industry is relatively small but has the potential to grow

exponentially. Therefore, the size of the industry can be projected to be much

larger than it is now, as it is not limited to a small number of products, unlike

pizza delivery. In the U.S, the pizza delivery industry's consumers spend over 33

billion dollars on pizza every year, and 20% of U.S. consumers eat delivered pizza

meals about once a week. If an industry that only can deliver pizza is this large,

then one that can deliver nearly any sort of food product has the potential to be

much bigger. As of now, the industry has not sprouted much due to very little, and

ineffective advertising.

Growth Rates: The growth rates of the food delivery industry are steadily

increasing. From 2012 to 2015, the industry has grown 33%, averaging about an

11% increase every year (excluding pizza). Considering that this industry is still in

an emerging stage, the projections are hard to predict, but if the industry persists, it

has the potential of growing into a $210B market in the upcoming years.

Nature of Competition: The food delivery industry has a mixed competition.

The majority of current food delivering businesses are either limited to a few

selected restaurants or specifically for their own restaurant. Nonetheless, the

restaurants that do deliver are mostly small and usually deliver pizza. Services that

deliver groceries are rare and are very limited to what they are able to deliver.

Combining both a wide variety of restaurants and grocery stores will merge the

two aspects of the delivery industry into one in which Deliverio will lead.

History: Dating back to 1889 in Italy, King Umberto and Queen Margherita were

recorded to be the first people to have pizza delivered to them by Raffaele

Esposito, known to be the most famous pizza chef in the world. Since then, many

innovations have been made to the delivery of food including the automobile. First

used by Domino's in 1961, cars started being used to deliver food to their

customer’s door-step. Eventually, restaurants with a variety of foods, besides

pizza, slowly started to enter their way into the food delivering service.


Industry Analysis (cont.)

Trends and Strategic Opportunities within Industry Due to the target market trends, the demand of the service will primarily be high

during lunch and dinner times; nevertheless, this doesn't stop people from ordering during

breakfast. Sales are also affected by outside variables such as, sporting games, gatherings,

and clubs.

Deliverio shares a common ground with businesses in other industries such as Uber,

Facebook, Alibaba and Airbnb. Uber is the world's largest taxi corporation, but owns no

vehicles. Facebook is the world's most popular social media owner, but creates no

content. Alibaba is the world's most valuable retailer, but has no inventory, and Airbnb is

the world's largest accommodation provider, but owns no real estate. There is a trend

growing in today's businesses. Deliverio will own no vehicles and will not sell any food.

Deliverio, along with all the other businesses listed, are services that connect, and act as

the conduit between consumers and providers.

Increased Sales

65% of Revenue

goes to Drivers

35% of Revenue

goes to Deliverio

Restaurant

or Store

Customer


Target Market

Target Market Defined

Deliverio's services target a wide range of people. Anybody with access to a credit card

and an internet-connected device will have access to its services; however, projections

show that specific groups of people will be the main consumers. These groups include

children home alone for the night, parents too busy to go out or cook dinner, or even

parties and small events that need food delivered.

Given the current economy, Deliverio will mainly be used by the upper and middle level

income customers, as people in those income ranges are more likely to be able to afford

its services. Lower income individuals will have the opportunity to use Deliverio,

however, statistics show that people from this category have less technology and do not

have money to easily spend on a convenience like Deliverio. Deliverio also anticipates

receiving consumers that are accustomed to shopping online as they are more likely to

use Deliverio.

Due to restaurant locations and availability, services are intended to be most used by

people in the urban and suburban areas of Tampa Bay. These areas are high concentration

zones for restaurants and grocery stores. Rural areas on the other hand, containing 19.3%

of the population, are less likely to have close stores and drivers interested in delivering

for Deliverio.

Analysis of Market’s Potential, Current Patterns, and Sensitivities Food delivery businesses in any highly populated city are very likely to succeed.

Especially in Tampa. In Tampa, nights tend to come early, and the 740,000 working class

employees have a tendency to go home late. With these patterns, Deliverio could

take advantage of the mass amount of people needing a bite to eat as their day comes to

an end. With the city of Tampa rapidly expanding many people will be looking to avoid

rush hour and have a nice warm meal (or groceries) come to them. Along with Tampa's

massive workforce, many people have kids that they need to tend to. With

Deliverio, their sons or daughters may easily order food as long as they are of age and

have parent’s consent.


Competition

Key Competitors

The most prominent competitors in Tampa Bay are Grub Hub and Uber Eats. None of the

competitors listed deliver groceries or offer the option of ordering food from restaurants

with whom they are not partnered with. Both of which, Deliverio will be offering to

customers. A newer and quickly upcoming competitor is Prime Now. This competitor

offers both groceries and selections from restaurants but is relatively expensive.

Competitor’s Strengths and Weaknesses

The columns listed are the key components of a food delivery company. Competitors

have distinct strengths and weaknesses, but none offer the service of delivering groceries

or delivering from restaurants that they aren't partnered with. The research given was

found through a survey of people who have had experience with their service.

Competitor Strengths Weaknesses Differentiation

UberEATS Well known in the

market, used in

multiple locations,

subsidiary of Uber.

High prices, limited

availability

Deliverio will reach out

to wider variety of areas.

GrubHub Expands operation

beyond metropolitan

areas, well established

Limited number of

restaurant

acquisitions, fails in

popularity

Deliverio delivers food

as well as groceries.

Prime Now Offers selections from

both groceries stores

and restaurants, part of

Amazon, quick

expansion

High prices, limited

availability, slow wait

times

Deliverio will have faster

wait times for our

consumers.


Competition (cont.)

GrubHub is a popular choice for people in the Tampa Bay area because of their long

presence in the industry. Over time, Grub Hub has lost popularity in the past year due to

the benefits that new competition has brought to the table. They lack employee

flexibility, which is the key to having enough supply of drivers. Their employees are

scheduled certain hours to deliver which does keep a steady number of drivers on the

road but can lead to problems such as not having a driver next to a restaurant when a

delivery is needed.

UberEATS has gained publicity as they branched off Uber Technologies Inc.'s Taxi

application, which has extended worldwide. UberEATS, compared to other competitors,

charges at a higher rate. The problem with this is that having an affordable price at a fast

delivery time are the factors considered most by customers when choosing a food

delivery service. Uber has created somewhat of an initial monopoly. There are other

businesses that deliver food, but as a result of Uber's marketing strategies they have

managed to hold their position as one of the major food delivering services in this

industry.

Prime Now is an Amazon service that is quickly expanding throughout both Tampa Bay

and the country. Unlike the UberEATS and GrubHub, Prime Now offers groceries. Prime

Now also has a delivery time within two hours. This is a great time for groceries but not

so much for restaurant orders. More so, Prime Now is a benefit of Amazon Prime.

Without this, consumers will be subjected to expensive prices. Despite their faults, they

have managed to succeed through loyal customers that regularly use their service.

Potential Future Competitors

The industry as of now has a high potential but is still somewhat unproven. Therefore,

there is always the chance of a new up-and-coming food delivery business. With

continuous advertising and special offers, Deliverio will secure its position in this

industry. Applications and services will be updated monthly to avoid falling behind and

taking the chance of a future competitor surpassing us in this industry.

Barriers to Entry for New Competitors To avoid being surpassed by these future competitors, Deliverio will establish a

dominance in the food delivery business in Tampa Bay by providing customers with the

lowest delivery fees compared to competitors, while maintaining a fast delivery time. If

these tasks are completed, customers will continue to use Deliverio’s services leaving no

room for outside competitors.


Marketing Plan and Sales Strategy

Key Messages to be Communicated Deliverio will advertise its main advantages through a variety of techniques. The main

strengths of Deliverio that will be advertised will be the low-cost rates, and speedy

delivery times. Advertising the low-cost rates will include first use discount,

opportunities for various promotions, and reminders that Deliverio offers the lowest base

price rates compared to competitors. Speedy delivery times will be promoted through

phrases and pictures that promises customers that their food will stay hot and fresh

throughout the course of their order.

Marketing for drivers is equally as important as marketing for people to use its service.

Without any drivers on the road there won't be anyone to deliver the goods. When

marketing to hire drivers, the business will want to attract people who already have a job

and want to earn money on the side and people who don't have a job that are looking for

one. Deliverio will show them how much they could earn a week working as a driver and

how promising this opportunity can be.

Key Messages to Include in Advertising

Low Cost Rates

Fast Delivery Times

Employee Benefits


Marketing Plan and Sales Strategy (cont.)

Options for Message Delivery

Deliverio wants to focus on presenting the idea of food delivering to people who have

never heard of the concept, and people that have heard of it but have never taken the

initiative to try it out. Its message will be delivered through various sources that are

guaranteed to bring in customers. These outlets consist of:

Creating billboard advertisements next to condensed, widely used roads.

Specifically: I-275, I-75, I-4, US-301.

Advertising on major TV channels in the area with a quick to-the-point video that

will catch prospective customers' eyes.

Give influential bloggers, with a respectable following, a complimentary delivery

to a destination of their choice in exchange for a written review.

Advertise on social media. Facebook and Instagram give Deliverio the opportunity

to reach certain demographics in certain areas and promote its’ services.

Like social media, advertising on certain radio stations can attract different

demographics. Talk and country radio formats have a predominantly older

audience, and pop tends to pull a younger audience. Through the radio, Deliverio

can selectively target certain consumers

Order Food Right to Your Doorstep from Your Favorite Restaurant with Deliverio!

We Offer the Lowest Rates! and and We Deliver Groceries


Marketing Plan and Sales Strategy (cont.)

Sales Procedures and Methods

Deliverio will be completely online via webpage or mobile application. Through this

webpage or mobile app, consumers will have to follow a simple process to fill out

information necessary to complete their order. Users will have to fill out their address or

to wherever they want the food delivered. Payment will be done by linking a credit card

to their account and will go through a secured transaction. The application will display a

list of Deliverio’s partnered restaurants and/or grocery stores that are near the user. Once

a restaurant is selected, the restaurant's up-to-date menu will appear, and consumers will

be allowed create an order that they would like delivered. Once they have finalized their

order, the total cost and estimated fare for delivering will be given. The order will then be

sent to a driver closest to the restaurant. On the application, a real-time map will be show

where the Deliverio employee is, and the status of their food. Consumers will know

where their food is, and the expected wait time at all times. Once the driver picks up the

order, they will drive it directly to the specified location, making use of the company’s

cooler-like bags to keep the food at its’ intended temperature. At the end of the delivery

an exact sum of the expenses will be delineated, and customers will have the option of

including gratuity.

The ordering process is a bit different when consumers want food delivered from a

restaurant that isn't partnered with Deliverio. Usually these are smaller restaurants

that consumers will go to the restaurant's website or call them to place an order. Once the

order is placed they will access the Deliverio software and input information about the

order. Consumers can expect to input their name under the order, restaurant name and

location, and an overview of their order. This allows for the deliverer to pick up the order

with ease which benefits both driver and consumer. The deliverer will also pay using the

consumers electronic credit card through the application. The application restricts the

deliverer from using the electronic credit card on anything other than the order at the

restaurant. Throughout this entire process the consumer will know the status of their food

and where the driver is just like the regular process.

The process for picking up groceries is very similar. Users will order their grocery list

online through individual retailers such as Publix and Walmart Groceries. The only

limitation of delivering groceries is if the retailer offers the service of putting together a

grocery list. If they do, Deliverio will have no problem picking up the package and

delivering it to consumers.


Operations

Business Facilities

Deliverio will have a corporate office located

on 5700 Memorial Highway, Tampa, FL

33615. This location will benefit the company

as it is easily accessible from the airport and

all three main urbanized areas of the Tampa

Bay. Another benefit to this location is that it

is in the city in which Deliverio is first

launching. This will maximize control and

communication over the company for

management purposes.

Production Plan

The main product that Deliverio will create is a mobile application and website. These

softwares allow for customers to be connected to a delivery system or to deliver food and

earn commission depending on how much they work. A small developer team will be

hired to create the application and improve it as needed.

Deliverio will be open 24/7 as long as there are employees on the road. Alex Patton will

organize and monitor the financials, while also working with the board of advisors to

make decisions concerning the company. Kyle Tom will focus on company marketing

and advertising, while also collaborating with the board of advisors.

Conference Room Alex Patton’s

Office

Kyle Tom’s

Office


Operations (cont.)

Workforce Plan

Drivers are also "self-employed", so their schedule is completely up to them. They can

turn on the Deliverio App whenever they want to gain some extra income on the side, or

they can deliver full time. Drivers will gain commission off of every order’s delivery

fare. As demand for Deliverio rises, rates will be raised, and drivers will be able to earn

larger commissions. They will be filing their income taxes under a Form 1099 instead of

a W-2 Basis

Corporate office will be open Monday through Friday from 8 A.M to 3 P.M. Alex Patton

and Kyle Tom will be located here throughout the day to work on company progression

and to monitor our services throughout Tampa Bay. All meeting with the Board of

Advisors will also be held at corporate in the meeting room.

Impact of Technology

Deliverio will be able to operate effectively and efficiently by using key up-to-date

technology for both the customers and management to utilize. Accounting, finances,

taxes, Internet marketing, etc. will all be done with modern computers that will be kept on

the most updated version to ensure Deliverio stays ahead of security flaws and potential

bugs. Both the app and website will be actively managed to continue improving its

interface.

The Deliverio app and website interface will be clear and concise allowing people to

easily understand and operate the ordering process. Deliverio’s service will have an easy

and simple payment system that allows you to input your payment method and

information into a secure system. Users will also have the option of creating an account

with a login to avoid entering their credentials in multiple times. With this technology,

Deliverio ensures that customers will be able to order and receive their food hassle free.


Management and Organization

Key Employees/Principals

Kyle Tom and Alex Patton will each manage specific parts of Deliverio to collaborate

and create a successful business. Both Alex Patton, and Kyle Tom will share the role of

CEO making them both co-presidents. The task each person is assigned is be based on

their studies and previous occupations.

Kyle Tom attended the University of Central Florida. He attained a masters’

degree in both Business Administration and Marketing. Since then he has worked

on marketing projects in the Tampa Bay area for many companies such as

Dominos, Dicks Sporting Goods, and more. After 5 years in the marketing

Industry Mr.Tom decided that he would dedicate his work full time for

the Deliverio Business.

Alex Patton attended the University of Florida in Gainesville, Florida. He attained

a Master’s in Business Administration and Accounting. He

also received a bachelor’s degree in Web Business. For 4 years, Mr. Patton served

has a financial assistant for Vibe Engineering. After 4 years of working there,

he has also decided to devote all his time and effort into the development and

success of the Deliverio business.

Nick Mendoza also attended the University of Central Florida, graduating 1 year

after Mr. Tom. He received a bachelor’s degree in Organizational leadership and

has agreed to take leadership in the Board of Advisors. In the past, he has worked

at various firms and actively participates in leading groups at community service

organizations such as the Red Cross.

As time progresses and certain operations become more demanding of the key

employees, additional members may become active in maintaining Deliverio's

businesses.


Board of Advisors

As a limited liability company, a board of directors is not

required; however, a board of advisors will help manage

Deliverio by influencing important decisions within the

company. The board of advisors will be appointed by the

two owners and will consist of 5 people. This board will

be led by Nicholas Mendoza who will be in charge

of organizing and leading meetings. Here major

decisions will be made regarding financials,

legality, and rising issues.

Meetings will be held as needed, but there are three

required meetings held in the months of January, May, and October. Meetings will follow

Robert's Rule of Order to institute effective meetings.

Plan for Identifying, Recruiting, and Securing Key Participants

Deliverio's prerequisites for becoming a driver are simple and straightforward. The

requirements to be a driver for Deliverio are:

18+ years of age

A registered Florida driver’s license

No background of a DUI or any offense of the sort

A personal car in which you will use to deliver food

Time

To find these participants, advertisements will be put out on social media and through

other outlets. To recruit these members, they will have to sign up online and Deliverio

will go through all precautions to make sure the prospective member fits all the criteria.

To secure the new and existing participants, an incentive plan will be set.

Compensations and Incentives Plan

Deliverio is a business with a deep culture. Deliverio wants its employees to enjoy

working as much as its customers enjoy its service. For this reason, a variety of benefits

will be provided that come with being an active and dedicated employee. Drivers that

participate in delivery services at least once per week will gain

incentives ranging from discounts on special services to bonuses depending on the

driver’s sales and ratings. With these incentives in place it will encourage employees to

actively participate in Deliverio's services.

Kyle Tom

(CMO & Co-president)

Alex Patton

(CFO & Co-president)

Board of Advsiors)


Long-term Development

Long-term Goals

Expand services to other major regions in Florida such as Miami, Orlando, and

Jacksonville and create more corporate offices in these areas. The goal is to reach this

by the third year.

Receive a 100% positive customer feedback rating by the end of the first year.

Build a favorable name in Tampa by community outreach projects, or sponsoring

charity events throughout each year.

Have exponential growth in application downloads.

File an 8832 Form to be taxed as a corporation.

Risks Identified and Analyzed

Risk Analyzed New and existing competitors

within the industry offering

rates more appealing to

customers

The food delivery industry is fairly new; therefore, it

wouldn't be a surprise for a new competitor to

enter. Delivery rates are always subject to change based

on competition and demand.

Driver liability risks While drivers are on the road delivering food, there is

always the chance of an accident occurring. The

accident will only concern Deliverio if the driver was

picking up or delivering an order.

Varying amount of supply and

demand The only issue is having a surplus of supply (Drivers)

rather than demand (Orders). Drivers will not earn as

much income and in result will not deliver for Deliverio

anymore.

Counterparty risks Deliverio works with different restaurants and acts as a

business mutualism concept (both parties benefit). There

is a risk of the opposite party withdrawing from the

partnership. This can be a problem, but users have the

option of ordering from restaurants that Deliverio is not

partnered with.


Long-term Development (cont.)

Strategy to Reach Long-term Goals

To achieve the goals set in place and avoid as many risks as possible decisions will be

made based upon these schemes:

Increased advertising

Participate in or sponsor as many community projects available

Hold onto customers that have been using Deliverio’s services actively by offering

incentives

Hold drivers accountable for the ratings received. Take action if the ratings are

consistently low, and reward drivers if the ratings are high

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Year One Year Three Year Five

APPLICATION DOWNLOADS


Financials

Accounting System

Deliverio will practice accrual-basis accounting with AccountingEdge Pro

software. Accrual-basis accounting will allow us to retain a more accurate picture of the

company's financial situation. The AccountingEdge Pro software will be used because it

not only allows us to keep track of the EBITDA (Earnings before interest, taxes,

depreciation and amortization), but can also keep track of employee work times and pay

them through this software. These features will allow us to stay up-to-date

on financials as everything will be organized and recorded in the same software.

Financial Projections

There are $60,000 in startup costs consisting of a $10,000 investment from each owner,

$10,000 accumulated from the board of advisors, and an approved $30,000 bank loan.

The funds received from the bank will be used in paying for the first few months

of operation. From then, the net income from the sales will be used to pay for all of the

business expenses such as rent, loan payment, salaries, advertising, and office supplies.

The first year projected net income is $249,330. As shown in previous trends in the

industry, Deliverio is expected to grow a considerable amount in its following years. The

projected net income of the third year of operation is projected to be $924,395 due to

greater advertising and sales. For the 5th year the expected net income is $1,621,454,

considering the expansion of services to other regions of Florida. These forecasts are

based upon how much is invested in advertisements and trends throughout the year.

Planned Loan Expenditures

Office Rent

Advertising

Salaries

Office Supplies & Technology

Insurance & Permits

Application & Website

$27,000

$5,166

$8,518

$5,000

$2,316

$12,000

Total $60,000.00


Financials (cont.)

1st Year Monthly Cash Flow

Cash Flow Statement

For the Year Ended December 31, 2019

Cash Flow from Operations

Net Income $859,252

Ad Revenue $18,904

Apparel Sales $18,000

Cash Paid to Employees ($541,923)

Net Cash Flow from Operating Activities

$354,233

Cash Flow from Investing

Additions to Equipment

($104,903)

Net Cash Flow from Investing Activities

($104,903)

Cash Flow from Financing

Proceeds from Loan

Payment of Loan (Year 1)

$30,000

($15,713)

Net Cash Flow from Financing (Year 1)

$14,287

Net Cash Flow $249,330


Financials (cont.)

1st Year Monthly Income Statement

Deliverio

January February March April May June

Revenue $25,250 $32,739 $38,550 $43,311 $48,855 $56,706

Growth % --- 29.66% 17.75% 12.35% 12.80% 16.07%

Ad Revenue $700 $907 $1,068 $1,146 $1,293 $1,500

Apparel Sales $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Gross Profits $27,450 $35,146 $41,118 $45,957 $51,648 $59,706

Expenses

COGS $4,000 $4,500 $5,000 $5,500 $6,000 $6,500

Salaries $15,925 $20,648 $24,313 $27,316 $30,813 $35,764

G&A $165 $165 $165 $165 $165 $165

Technology $1,400 $110 $110 $110 $110 $110

Marketing $300 $300 $300 $300 $300 $300

Loan Payment $1,309 $1,309 $1,309 $1,309 $1,309 $1,309

Total OpEX $23,099 $27,032 $31,197 $34,700 $38,697 $44,148

EBIT $4,351 $8,114 $9,921 $11,257 $12,951 $15,558

July August September October November December

Revenue $69,686 $82,752 $95,687 $106,518 $120,877 $138,320

Growth % 22.89% 18.75% 15.63% 11.32% 13.48% 14.43%

Ad Revenue $1,708 $1,817 $1,931 $2,018 $2,246 $2,570

Apparel Sales $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Gross Profits $72,894 $86,069 $99,118 $110,036 $124,623 $142,390

Expenses

COGS $7,000 $7,500 $8,000 $8,500 $9,000 $9,500

Salaries $43,951 $52,191 $60,349 $67,180 $76,236 $87,237

G&A $165 $165 $165 $165 $165 $165

Technology $110 $110 $110 $110 $110 $110

Marketing $300 $300 $300 $300 $300 $300

Loan Payment $1,309 $1,309 $1,309 $1,309 $1,309 $1,309

Total OpEX $52,835 $61,575 $70,233 $77,564 $87,120 $98,621

EBIT $20,059 $24,494 $28,884 $32,472 $37,503 $43,768


Financials (cont.)

Yearly Income Statements

Income Statements for Years 1, 3, 5

Revenue Year 1 Year 3 Year 5

Sales $859,252 $2,706,457 $4,742,892

Ad Revenue

Apparel Revenue

$18,904

$18,000

$23,462

$22,360

$26,048

$24,687

Gross Profit $896,156 $2,752,279 $4,793,627

Expenses

Salaries

$558,513

$1,759,197

$3,082,879

Advertising $21,118 $35,871 $56,478

Insurance & Permits $26,284

$2,316 $2,316

Loan Payment $15,713 $0 $0

Application and Website $12,000 $2,000 $2,000

Office Supplies and Technology $5,000 $1,500 $1,500

Rent $27,000 $27,000 $27,000

Total Expenses $646,826 $1,827,884 $3,172,173

Net Income $249,330 $924,395 $1,621,454


Financials (cont.)

Financial Assumptions Deliverio's services will target a wide variety of people to ensure that our services will

always be active in the community. It can be assumed that our busiest times will be

during sporting events such as football, hockey, or baseball games as many friends and

families have parties and will need an easy way to get food for their event. Deliverio will

also maintain its’ awareness in the food delivery industry for future techniques and

potential competitors. Deliverio will adapt to the economic environment created by the

demand of the people using various business techniques. As future businesses enter the

market the aim is to have at least 65% of the potential consumers using Deliverio’s

services over other competitors at the end of 5 years.

31%

26%

20%

15%

7%

2023 Projected Percentage of Market

Deliverio

Grub-Hub

Uber Eats

Postmates

Other


Financials (cont.)

Loan Repayment

`


Supporting Documents

1099 Form


Supporting Documents (cont.)

Technical Descriptions

The application created will connect the drivers to customers. In

the Deliverio application there will be a variety of setting and

options that is easy to understand.

When you first open the app, you will be greeted with a list of

partnered restaurants and the option to choose a restaurant that

Deliverio is not partnered with. If you choose one of the

restaurants, their updated menu will show up and the user will

choose their order and finalize it. At the end, the estimated

delivery fare will be presented along with the cost of their order.

The information in the application will then be sent to an active driver closest to the

restaurant that is receiving orders. On the driver’s end, they would have to accept the

order and drive to the restaurant described. When they arrive, they would have to either

pick up the order or wait for the order to be finished. Once they receive the order they

will then drive it to the specified location and drop it off.

If the user decides to have food delivered from a restaurant that Deliverio is not partnered

with, they will take a different ordering path. Prior to opening the Deliverio application

they would already have their order placed through the phone or online with the

restaurant themselves. Once they open the application there is an option to not order food

from the restaurants listed. Once clicked, the customer would have to input information

such as their name, location of the restaurant, and the estimated time the order will be

completed. From there, the delivery process is exactly the same as when ordering from

partnered restaurants.

Users have the option to create an account with us. Creating an account entails: imputing

credit card information one time, access to order history, and chances to receive special

offers. If an account is not created, credit card information would have to be inputted

after every order.

Throughout the entire delivery, once a customer is connected to a driver, the customer

will be able to check their delivery’s status at all times.



Limited Liability Company Filing Request



Limited Liability Company Filing Request (cont.)


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