Business Plan Assignment Help

Business Plan Assignment Help

Business Plan Assignment Help

1.Executive Summary

“Summertime Madness” is a new business proposal in Australia which is focussed to provide healthy fresh fruit juices, shakes, smoothie and bottled juices to the customers. They are adopting the concept of opening a bar which serves nutritious food products and drinks and targets young people of the country. The business plan is discussed below which contains the profile of the business, the information about its competitors, its marketing plan and goals, details about its products. The business plan also discusses the operations of the company and the requirement of the resources to carry out these operations. Training and development needs are identified and at last, the financial plans are made. Breakeven analysis has been done to estimate the sales of the units which will cover the costs of the company.

The business is planning to expand its business across the country and to mark its presence among the youth. The company’s estimated earnings are around 1,00,000 in the first year of operations.

2. Vision Statement and Mission

“Summertime Madness” is a juice shop which is focussed to fulfil the daily needs of fruit juices, smoothies and shakes of people. This is the place where people can consume healthy blends and combination of juices to be healthy and where people can meet their friends or complete their other works. “Summertime Madness” has a mission of providing the products which fuel the health of people and develops healthy habits and lifestyle of people. It aims at providing excellent customer service and delicious products to the customers (Zacharakis, et al., 2011).

The organisation has the vision to become the most famous juice bar in the city which aims at building healthy lifestyles.

Juices and Shakes at Summertime Madness

3. Profile of the Business

The business is of fresh juices, cold pressed juices, smoothies and shakes which can provide nutrition to the customers in the form of fresh fruit and milk products. The business aims at developing healthy lifestyle among the teenage and adults who are consuming more fast food and liquor nowadays. The juice bar has been given a concept of a café where one can read, listen to songs, spend time with friends and can do whatever he wants. “Summertime Madness” will be a juice café in the local business or market area which will also provide an option of home delivery of its products.

Product Description

The products of the company are categorized into 4 categories:

Fresh Juices:Fresh juices of seasonal fruits are made in order of the customers
Cold Pressed Juices: these are the juices taken out by using the hydraulic press. These juices, unlike the fresh juices, can be stored up to 30 days.
Shakes:Shakes are made with a blend of different fruits and milk to create a thicker liquid.
Smoothies:It is a thick drink blended with milk, yoghurt or ice-cream or any other product (Zacharakis, et al., 2011)

fruits and milk

Market summary

For establishing the business of a juice bar, the characteristics of the market has to be studied. This information will help the business to make further decisions. The Juice bar has been started in the local market of Australia and it is summarized that the market has huge no of a population, no. of tourists are high around the year, high no. of student population due to the existence of universities and colleges, low cost of advertising and promotions, high no. of events where the business can promote its products. It is the prime location where people visit for shopping and sightseeing (Zacharakis, et al., 2011).

Potential risks

Potential risks for the business may be:

The successful existing businesses of Juices
Increasing consumption of alcoholic drinks
The claims made by experts that juices increase the chances of diabetes, dental problems, etc. (SMELLIE, 2015).

Business ownership

The company “Summertime Madness” will be a registered company in Australia with a partnership between two partners with holding 50%- 50% stake each.

Competitor Breakdown

The competitors of “Summertime Madness” are those Juice shops and brands which already exist in the country and are famous among the customers. The existing competitors of “Summertime Madness” are:

Boost Juice: It is the juice bar in almost every shopping mall in Australia with a very strong presence and with a range of products to offer.
Raw Energy Juice bar:It is the juice bar with the facilities like WI-FI and other facilities to attract youngsters for healthy drinks (Zacharakis, et al., 2011).

4. Marketing plan

Current market position

The current market position of the company can be determined by doing situational analysis in which the macro and microenvironment of the company are analysed.

For “Summertime Madness” following factors will be influencing:

Political or legal factors: These include rates of taxes, regulations for starting the new business or any other law which affects the proper set up of the business of a local juice bar in Australia.

Economic factors:It affects the business if the spending level of the customer is low or inflation is hitting the country. The prices of the products can be set at a good level as the spending power of people in Australia is good (Zacharakis, et al., 2011).

Social factors:These factors are the beliefs, values and thinking of the local population. People in Australia are health conscious and the business is likely to grow as the demand for fruits and healthy drinks are more (Chang, 2016).  

Technological environment:Australia is rich in technologies and to prepare fresh juices, the fruits are stored in the containers which are technologically built for this purpose. The business can make use of internet and social media to attract local people.

Competitors:there are a lot of competitors for “Summertime Madness” in Australia and other drinks available in the market can also affect its business. To compete for this, it has to adopt unique selling proposition which can attract most of the competitors (Lavinsky, 2013)

Current market position

Target Market analysis

The target market for “Summertime Madness” Juice bar is the youth and young adults who want to hang out with friends r want to pass time in a café or a restaurant. The business has to consider the demographics, psychographics and has to position its products on the basis of these (Chang, 2016).  The marketing efforts have to be made so that this target market can be attracted towards the business. The lively atmosphere will be created to attract young people. The bar can provide healthy recommendations to the regular customers on their personal numbers, to encourage healthy lifestyles.

Basis

Description

Demographics

  • Young people aged between 15-45.
  • Health conscious people with educational background

Psychographics

  • People having good lifestyle
  • Open, extrovert and creative people

Behaviour of buyer

  • People looking for health benefits
  • Regular users of juices or fruits

Marketing goals

The marketing goals of the business are:

To increase the no. of visitors in the juice bar
To enhance web presence of the business
To place advertisements in the local newspapers or social media websites (Lavinsky, 2013).

Product, Price, promotion, placement methods and strategies

Product: the products of “Summertime Madness” are made of 100% pure fruits and are variable in the wide variety of flavours.  The containers of juices, shakes or other products are easy to use and are environment-friendly.

Price: The prices of the products are set at a moderate level according to the demand in the market and based on the prices of competitors.

Promotion: Different offers are given on the products like two juices are sold at reduced prices. Discounts are given on the juices with snacks. Social media is also used for promotion (Chang, 2016).  

Place: Smart Phone applications are designed to order the items at a doorstep. The products are available at the outlets and on the application orders (Chang, 2016).

Product, Price, promotion, placement methods and strategies

5. Operations strategy

Internal control procedures are required to prevent the business from frauds and to promote smooth operations. Below discussed are some internal control procedures to control:

Cash- Timely documentation should be done to record all the cash transactions. Duties of handling cash should be divided among people so that one single person cannot commit fraud. Cash should be physically verified in order to ensure the safety of cash.

Inventory-The inventory of the business may be at risk and to make it safe some internal controls can be adopted by the company like physical verification of inventory, tagging all the inventory, the audit of all the invoices, investigating the records, etc. (Taylor & Video Education Australasia, 2009).

Accounts receivable-the internal controls for accounts receivable adopted by the company are proofreading the invoices, the access to the billing software is restricted to only authorised people, duties are segregated and the cash receipts are audited (Taylor & Video Education Australasia, 2009).

Non- Current assets-The internal controls for non- current assets adopted by the company are establishing the responsibility for taking care of the non- current assets to different people in the company, the computers or laptops are made safe by tagging them and by making them password protected. The physical assets should be reviewed regularly (Peter, 2015).

6. Resources Strategy

The company requires human, financial and time resources for the smooth operations of the company. Below discussed are the human resources who are recruited and trained to perform different functions for the smooth operations of the company (Taylor & Video Education Australasia, 2009).

A. Staffing requirements:

Production or Operation manager- 1- Required for managing the operations of the juice bar right from the production to taking feedbacks (Chang, 2016).  

Marketing manager- 1-Manages the marketing and promotion of the juice bar for attracting maximum customers and to face competition.

Finance manager- 1- Manages the costs and expenses of the juice bar.

Kitchen staff (preparation, cleaning, serving, etc.)- 7- they are required for the purposes of preparing the servings on the orders of the customers. The roles are interchanged at regular intervals. These staffs perform the activities right from production to cleaning and take feedbacks from the customers (Chang, 2016).

B. Training and development needs-

The staff recruited for the juice bar need to be trained properly so that they can perform their duties well and support the fulfilment of organisation’s goals. People are given handbook for complying with the rules and regulations of the organisation.

C. Induction Plan- induction training is significant for the beginners and it helps in retaining the employees for the longer period of time (Chang, 2016).  Induction plan for the company includes the following:

The induction plan of “Summertime Madness” is 7 days, it is given below:

Days

Particulars

Day 1

Showing premises and making the introduction to each other.

Day 2

Provide handbook of do’s and don’ts, rules, facilities and other terms and conditions

Day 3

Coaching and training session

Day 4

Coaching and training session

Day 5

Conducting tests to check how much the staff have learned

Day 6

Conduct practical tests and role plays

 

Day 7

Review performance and select the best candidates.

7. Financial Plan

For setting up a new Juice bar in Australia, the company need to have financial resources and a financial plan, given below:

Budgeted Balance sheet (Estimated)

The budgeted balance sheet of “Summertime Madness” shows growth in sales and in the worth of the business.

Particulars

Estimated (2017)

Amount (in AUS $)

Assets

 

 

Current assets

 

 

Cash

2,00,000

 

Accounts Receivable

0

 

Other Current assets

0

 

Total Current assets

 

2,00,000

Long term assets

8,60,000

 

Accumulated Depreciation

45,000

 

Total Long term assets

 

9,05,000

Total assets

 

11,05,000

 

 

 

Liabilities & capital

 

 

Current Liabilities

 

 

Accounts payable

1,00,000

 

Borrowing

0

 

Other current Liabilities

0

 

Total current liabilities

1,00,000

100000

Long term liabilities

0

 

Total Liabilities

 

100000

Paid capital

9,07,500

 

Retained earning

(2500)

 

Earnings

100000

 

Total capital

 

10,05,000

Total Liabilities and capital

 

11,05,000

Budgeted Income Statement for the first year of operations

“Summertime Madness”
Budgeted Income Statement
For the year ended December 31, 2017

Particulars

Amount (Budgeted) AUS$

Net sales

400000

(Cost of goods sold)

(250000)

Gross margin

150000

(selling & administration expenses)

(35000)

Net operating income

115000

(interest expense)

(15000)

Net income

1,00,000

(Nugus, 2009).

Cash Budget for first 3 months of operation

 “Summertime Madness”

Cash Budget for first 3 months of operation

Breakeven Analysis

Breakeven Analysis

The above graph shows that “Summertime Madness” has to sell around 10000 units of products to cover the costs of the operations. To earn the profits, it has to sell over 10000 units (Nugus, 2009).

References

Chang, M. 2016, "Entrepreneurship your business plan", IEEE Engineering Management Review, vol. 44, no. 1, pp. 21-23.

Gümü?, S., Apak, S., Gümü?, H.G. & Kurban, Z. 2013, "An Application in Human Resources Management for Meeting Differentiation and Innovativeness Requirements of Business: Talent Management", Procedia - Social and Behavioral Sciences, vol. 99, pp. 794-808.

Lavinsky, D. (2013). Marketing Plan Template: Exactly What To Include. Forbes.

Nugus, S. 2009, Financial planning using Excel: forecasting planning and budgeting techniques, 2nd edn, CIMA, Amsterdam;London;Boston;.

Peter, F. (2015). ASSESSMENT OF EFFECTIVENESS OF INTERNAL CONTROL ACTIVITIES ON MANAGING CURRENT ASSETS IN NON-GOVERNMENT ORGANIZATIONS IN TANZANIA. UNIVERSITY OF IRINGA: FACULTY OF BUSINESS AND ECONOMICS.

SMELLIE, A. (2015). Is juicing making you fat? Not to mention rotting your teeth and starving your body of nutrients! Why the new fad might not be so healthy after all. DailyMail.

Taylor, S. & Video Education Australasia 2009, The business plan, Video Education Australasia, Bendigo, Vic.

Zacharakis, A., Spinelli, S., Jr & Timmons, J.A. 2011, Business plans that work: a guide for small business, 2nd edn, McGraw-Hill, New York.