Sol y Sabor Tortilleria

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Executive Summary

Sol y Sabor Tortilleria is a family-owned tortilleria that makes fresh corn and flour tortillas every morning for restaurants, small grocery stores and families. Our orders are growing faster than our one production line can handle, and we have had to turn down new restaurant and store accounts. This grant will help us add a second line and packaging equipment so we can say yes.

With this grant we will buy and install a second tortilla production line and a packaging and labeling machine, upgrade our walk-in cooler and hire and train new production workers.

We expect sales of $426,000 in Year 1, growing to $1,023,200 by Year 5. We expect a profit every year: about $21,300 in Year 1, growing to about $105,000 by Year 5. Today we employ 2 people. We will employ 3 in Year 1 and 7 by Year 3, a gain of 5 jobs, and 8 by Year 5.

We are asking the Evergreen Opportunity Fund for $40,000 for a second production line and packaging equipment. We are also putting in our own savings and an equipment loan, so the grant is only part of the money in the project.

I am Marisol Delgado, the owner and head baker. The numbers in this proposal are estimates based on the assumptions listed at the end, not promises.

Company Description

Sol y Sabor Tortilleria is a family-owned limited liability company (LLC) in Texas, open since 2021. Sol y Sabor Tortilleria qualifies as a minority-owned business under the Evergreen Opportunity Fund's rule that at least 51% of the business must be owned and controlled by one or more minority individuals. Marisol Delgado and her family own 100% of the company. We will provide our ownership papers and any certification the funder requires. We have fewer than 20 employees and our tortilleria is inside the funder's service area.

Our mission. To make fresh, honest tortillas the way our family always has, and to grow a business that gives our neighbors good jobs.

Where we are today. We make tortillas six days a week and sell them to restaurants, a few grocery stores and families who order for parties. Our sales last year were about $340,000, and with the new line we expect about $426,000 in Year 1. Right now we have one production line, so a single breakdown or a big order can stop the whole day, and we have had to turn away restaurants and stores that asked to become customers.

What we do:
- Wholesale tortillas by the case for restaurants, taquerias, caterers and grocery stores.
- Fresh tortillas and masa for families, parties and community events, by order.
- Weekly delivery routes, so customers get tortillas the morning they are made.
- Custom sizes and counts for restaurants that need them.

How we are run. Marisol runs production and sales and handles the money with an outside bookkeeper. She trains every worker on food safety before their first shift and keeps written records of cleaning and temperatures. We follow the food safety rules that apply to our state and county and welcome inspections.

Problem & Opportunity

Why this project is needed.

Small food makers like ours often stall at the same point: the orders are there, but the equipment is not. Buying a second line, a packaging machine and cooler space costs far more than a small business can pay out of one year's profit, and lenders often want to see the new equipment already earning money before they will finance it. Grocery stores also expect packaging that is sealed, labeled and has a clear date, which hand packing cannot do at volume.

The gaps we see:
1. Capacity. One line means one breakdown stops all production, and we cannot take on large accounts.
2. Packaging. Hand-packed tortillas have a shorter shelf life and cannot meet the labeling rules some stores require.
3. Cold storage. Our cooler is too small to hold a full day's production ahead of deliveries.
4. Access to capital. A family business with no big collateral finds it hard to borrow for equipment.

What we have seen ourselves. Over the last year we have had to say no to new restaurant and store accounts because we could not make or package enough, and several customers have asked for sealed, labeled packs.

Who benefits first. Restaurants, taquerias and caterers that want fresh tortillas daily, small grocery stores that want sealed and labeled packs, and families in our neighborhood.

Products & Services

What the grant will pay for and what we will do.

1. Install a second production line. A dough mixer, press and oven that run beside our current line, so one breakdown no longer stops the day.
2. Add packaging and labeling. A packaging machine and label printer so every pack is sealed, dated and labeled for stores.
3. Upgrade cold storage. A larger walk-in cooler to hold a full day of production before delivery.
4. Train our team. Food safety and equipment training for every production worker, plus updated permits.
5. Win new accounts and hire. Add new restaurant and store accounts, and hire production workers and a delivery driver.

How we will measure results. We will count cases sold, number of wholesale customers, days with a breakdown, and the share of packs that leave sealed and labeled. We will compare them with our goals every month and review them with our accountant each quarter.

Market Analysis

Who benefits and how.

- Jobs. We employ 2 people today, will employ 3 in Year 1 and 7 by Year 3, with about $102,000 in wages in Year 1.
- Local spending. We buy flour, corn and packaging from regional suppliers where possible, and pay rent to a local landlord (about $21,600 a year).
- Good food, close to home. More fresh tortillas for local restaurants and stores, and a small business that is growing in our neighborhood.

How many we will reach. In Year 1 we expect to sell about 6,500 wholesale cases and fill about 1,100 retail and catering orders, growing to about 14,000 cases and 2,400 orders by Year 5.

Competitive Landscape

Other choices people have, and how we fit.

- Large national tortilla brands in grocery stores. They have wide reach, but ours are fresh daily and made in our neighborhood.
- Other local tortillerias. They compete for the same restaurant accounts, so reliability and service matter most.
- Restaurants that make their own. Some prefer to, but many would rather buy fresh tortillas and save kitchen time.

What makes us different: Tortillas made fresh every morning from a family recipe, delivered the same day, in the sizes and counts each restaurant asks for.

Marketing & Sales Strategy

How we will reach new restaurant and store customers.

- Visit restaurants, taquerias and caterers with samples and a simple price sheet.
- Offer small grocery stores a trial order of sealed, labeled packs.
- Sell at weekend markets and community events, and take family orders by phone and message.
- A free Google business listing with photos and reviews, and a simple website with an order form.

Marketing budget. About $4,800 a year in Year 1, growing about 8% a year.

Operations Plan

How the project will be carried out.

Timeline:
- Months 1 to 2: Order equipment, update permits and plan the layout and electrical work
- Months 3 to 4: Install the second line, packaging machine and cooler; train the team and test runs
- Month 5: Start full production on both lines and begin sealed, labeled packs
- Months 6 to 9: Add new restaurant and store accounts; hire production workers
- Months 10 to 12: Add a delivery driver and review results with our accountant

Space and suppliers. We rent our production building, which has room for the second line. Equipment comes from a restaurant equipment dealer that installs and services it. Flour, corn and packaging come from regional suppliers.

Equipment. About $52,000 in all: Second tortilla line: dough mixer, press and oven ($38,000); Packaging machine and labeling equipment ($9,000); Walk-in cooler upgrade ($5,000). After that we set aside about $3,000 to $4,000 a year to repair and replace equipment as we grow.

Permits and safety. Our food permit and inspections stay current, and we will update them for the new equipment and packaging. We will confirm any new labeling or inspection rules with our local health department before we start.

Records and reporting. We will keep daily logs of production, temperatures and cleaning. Grant money is tracked separately, and we will send the funder a short report at the end of the grant year showing what was bought and what changed.

Management & Organization

Who leads the business.

Marisol Delgado, Owner and Head Baker. Marisol leads production, trains workers, sells to new accounts and manages the money. Planned salary: $42,000 a year.

Our team. Production workers: 2 in Year 1, growing to 5 by Year 5, at about $30,000 a year each. A delivery driver ($32,000) in Year 2 and a part-time sales and office person ($22,000) in Year 3.

Advisors and help. A free mentor from SCORE or the Small Business Development Center (SBDC), an outside bookkeeper and an equipment dealer who trains our team.

Money management. Our bookkeeper keeps grant money separate and reviews our records every month. We will send reports on time.

Milestones Narrative

Our goals and how we will measure them.
- Year 1: Install the second line and start sealed, labeled packs, about 6,500 wholesale cases and 1,100 retail and catering orders, $426,000 in sales and a profit of about $21,300; 3 people employed.
- Year 2: Add new accounts and a delivery driver, about 8,800 wholesale cases and 1,500 retail and catering orders, $593,800 in sales and a profit of about $28,500; 5 people employed.
- Year 3: Add a sales and office person and reach a larger share of local stores, about 11,000 wholesale cases and 1,900 retail and catering orders, $764,600 in sales and a profit of about $44,400; 7 people employed.
- Year 4: Hold steady quality while serving more accounts, about 12,800 wholesale cases and 2,200 retail and catering orders, $912,400 in sales and a profit of about $93,000; 7 people employed.
- Year 5: Serve more restaurants and stores with two reliable lines, about 14,000 wholesale cases and 2,400 retail and catering orders, $1,023,200 in sales and a profit of about $105,000; 8 people employed.

How we will check our results. Cases sold, customers, breakdown days and packaging quality are recorded every week. Each quarter we compare them with our goals and review them with our accountant.

Funding Request

What we are asking for, and how the money will be used. Our request: $40,000 from the Evergreen Opportunity Fund for a second production line and packaging equipment, for January through December 2027.

The request is spread across these budget lines:
- Equipment: Second production line: dough mixer, press and oven, $28,000 (we add $10,000 of our own).
- Equipment: Packaging machine and labeling equipment, $9,000.
- Supplies: First order of packaging materials and labels, $3,000 (we add $500 of our own).

Other money in the project. We put in $10,500 toward the equipment and packaging, and our own savings and an equipment loan pay for the walk-in cooler upgrade ($5,000), food safety training and permits ($1,500) and a new website and packaging design ($3,000). A $40,000 equipment loan and $20,000 of our own savings also cover payroll while the new accounts start paying.

What the numbers show. Sales of $426,000 in Year 1 growing to $1,023,200 by Year 5, with a profit every year: about $21,300 in Year 1, growing to about $105,000 by Year 5. With this funding and our own money, the business has money in the bank at the end of every year, and the lowest year-end balance is about $44,000.

The loan. We plan a $40,000 equipment loan at 11% over 7 years, with payments of about $685 a month (about $8,219 a year). These payments are already included in our cash flow. We chose 11% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

After the grant. The equipment is bought once. From Year 1 on, tortilla sales pay for flour, packaging, wages and rent. We expect a profit every year, and the second line lets us grow without paying for more equipment.

Risks and how we will handle them:
- Equipment trouble. We will buy from a dealer that installs and services what it sells, and keep a repair budget each year.
- Ingredient price changes. Corn and flour prices can rise, so we plan for costs to grow every year and will adjust our prices when needed.
- Food safety. Every worker is trained before their first shift, and we keep written logs and welcome inspections.

If we are just starting. A small food business can begin with a lease on a licensed kitchen, one oven line and a few restaurant customers, then grow into a second line as orders prove the need. Written orders and delivery records make a grant request stronger.

Appendix Notes

Documents to attach with this proposal:

- Your LLC papers and ownership documents showing who owns the business, and any minority-owned business certification the funder asks for.
- Your food permit and most recent inspection.
- Quotes for the second line, packaging machine and cooler.
- Last year's sales records and financial statements.
- Letters from restaurants and stores that want to buy more.
- Your lease and insurance.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Wholesale Tortilla Cases: about $52.00 per unit in Year 1, rising to $58.00; direct cost about $30.00 per unit, rising to $33.60; about 6,500 wholesale cases in Year 1, growing to 14,000.
- Retail and Catering Orders: about $80.00 per unit in Year 1, rising to $88.00; direct cost about $40.00 per unit, rising to $44.00; about 1,100 retail and catering orders in Year 1, growing to 2,400.
- Pay (a full year, per person): Owner / Head Baker $42,000, Production Worker $30,000, Delivery Driver $32,000, Sales and Office (part-time) $22,000.
- Other yearly costs in Year 1: Building Rent $21,600, Utilities and Fuel $12,000, Insurance $4,800, Marketing and Samples $4,800. These grow between 4% and 8% a year.
- Customers pay about 29 days after we bill them. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and real budget.

Startup Costs