about business and Alfa Bank in Belarus continue to analyze real cases of small and medium-sized businesses within the framework of the joint project “Working Group”. Hosts Dmitry Alfer (Pro Business) and Yevgeny Zadorenko (Alfa Bank in Belarus), together with experts, help companies find ways to scale and give advice on business development by answering questions from entrepreneurs.
In this issue, we analyze the case of the PON-PUSHKA donut network. The founder and general director of the chain Alexey Shpadaruk and
Operations Director Vitaly Samonov. They are interested in how to scale the network and attract funding for this purpose. Together we figured out what options are available and what compromises the company will have to make for the sake of rapid growth.
Partner of the season “Working Group 2.0” – Alfa Bank in Belarus.
Oleg ChanovPartner, Project Manager at Business Tools;
Sergey Kazak, director of marketing and business development Artox Media Digital Group.
About the PON-PUSHKA network
The PON-PUSHKA network has 13 objects – these are various formats of donut shops and pizzerias. The main product is donuts: classic, “powdered” and “flavored”. The company employs more than 100 employees.
Key clients of the network – Families with children. Average check transactions – 10 bel. rub. (about $4) with an average price of one donut about 1 bel. rub. Total the network has 36,000 clients per month.
Word of mouth plays a key role in the company’s marketing. Clients most often come by recommendation. The network also uses promotion on Instagram, and also places outdoor advertising. total the company spends about 7,000 bel on marketing. rub. ($2770) per month. It brings 1,500 new clients each per month.
Business Profitability in the main direction – 25−40%.
The company plans:
open 100 facilities in Belarus within three years;
reach the proceeds of 40 million rubles. per year by 2024;
enter the market of the CIS countries and the European Union within a year.
Why did the company apply to the Working Group?
Now the company faces a choice: it is necessary to choose a way of scaling. It is important for a business to determine which business model and which sources of funding to prioritize in order to grow faster. Either option comes with trade-offs and limitations that need to be considered now.
The founder of the network sees 4 options for scaling: raising credit funds, finding and attracting an investor, selling a franchise, independently opening objects in suitable premises. The option of crowdfunding is also being considered – residents of small towns or microdistricts can voluntarily invest in opening a donut shop within walking distance.
Therefore, network representatives PON-PUSHKA turned to the experts with the following questions:
- Which funding format should be preferred for rapid scaling?
- Which second line of products to choose for business development: coffee or burgers (large restaurants or closed kitchens)?
- Which business model is more effective: to develop a franchise or own investment objects?
- Is it worth investing in a comprehensive IT solution for the network at this stage?
What recommendations were given by experts – look at YouTube:
How to become a member of the Working Group?
If you want to become the hero of the project, describe the issue of your business that you would like to analyze together with our experts. Send it to [email protected] marked “Working Group”. We will invite the authors of the most interesting questions to the studio and analyze your case together with our mentors and presenters.
Even more videos and relevant information in Telegram and ALFA-HUB – YouTube. Subscribe!