Table of Contents
The beverage industry is fast expanding with a variety of products and services on offer. More and more people want to have a taste of new beverages packed in an enticing way or served in a unique way. Tea and coffee have a rich history from when they are planted in the farms to when they reach our hands. Many people are opting for these beverages, and this business plan follows the unique packaging and serving methods; that was highlighted by recent market research. There is a hungry market for the products and services Quench Beverages will offer.
Business plan outline
The proposed name of the business is Quench Beverages. The name is derived from the needs of the expected customers who will get what they want from today’s beverages. The business started as a sole proprietorship, and the owner is Mr. Washington Churchill from Nevada. He has an MBA from Harvard University and a diploma in Beverage Science from Minnesota Institute of Food Sciences. He has an initial capital of $900,000 to invest in the business. He started out as a small outfit in the outcasts of New York in 2008. The small venture will grow to over ten outlets within two years of inception while serving the wider New York City. Mr. Washington then joined hands with Mapleton Industries in 2010 with the partnership name Quench Beverages. They increased the range of products and services. Since then there have been increased turnover and annual profits to the tune of 13%. Today Quench Beverages employs 200 permanent employees and is continuing to become innovative and grow (Gordon,1989; Metayer, 1999).
Quench Beverages specializes in beverages and drinks derived from coffee and tea. They offer a wide variety of products that are either served at their outlets or distributed through automated vendor machines (Pinson, 2004; Eric.& Bornstein, 1993; Bent, et al, 2002),”
.They have cappuccinos, different flavors and shades of co coffee and tea, iced tea, and the list is endless. Their products have been approved by America Health and Safety Society, and n value-added for health concerns of the customers. Their products have anti-aging additives and disease repellant capabilities. They are served in panoramic environments where clients take full advantage of relaxing during the day or night. The vending machines are installed in safe places, and the packaging is the best in the world. When customers buy the products or services, they get value for their money. The prices are just made for the target market that will be glad to spend their money on the business (Porter, 1998).
The business hopes to offer services in a way that have never been tried before. The varied health solutions the products offers are found nowhere in the beverages industry. The outlets are constructed in a unique way and will offer customers a satisfying experience.
The beverages industry is growing in leaps and mountains with customers getting a new product or service every quarter. The number of players is multiplying every day. It offers a rich area to invest in, as it has not been fully exploited
Quench Beverages is targeting the high-end segment of the beverages market. It needs to satisfy the needs of society, who are able to be comfortable with the prices of products and services. These populations live in suburbs and affluent regions of the city. They need quality products and services, and this is the gap that Quench Beverages saw and will exploit. Quench Beverages wish to open more branches in other states of the nation.
There are numerous players in the market, but they tend to offer their products and services in a traditional manner. Customers will most likely predict what to expect from one player to another, as they offer monotony across the board. Quench Beverages will concentrate on their outlets and make them the best in the world so that their customers will have an unforgettable experience. It is made in such a way that it provides the office environment away from the office, and a home environment away from home. The promotion will be in terms of TV, internet, bonuses, free treats, and leisure magazines. The vendor machines have voice capacities, installed in safe areas, and remarkably straightforward and easy to use.
Quench Beverages is in the hospitality industry. This is one area of business that will keep on growing for a long time to come. The industry is not yet fully exploited, and there are many faces that have not yet been shown to the spending public. Businesses enter the industry through either franchises or just small start-up and growing.
This section highlights the potential customer to the business. For example, the beverage company can have a section on the target market as bellow.
The beverage is suitable for people of all ages, gender, and socioeconomic backgrounds; however, the company expects a large acceptance amongst the youth. The beverage market has never had a drink that can be taken in all occasion. The main ones are alcoholic drinks and energy drinks. The customers for the drinks are any thirsty person irrespective of class or genders innovative feature include fashionable design, reusable packaging, and competitive prices.
The potential customer can get their drinks from mall, restaurants, and hotels; however, the company plans to pace its one-stop-shop strategically at each corner, social pace, and significant market places, including mall and supermarkets through franchise deals. The competitors have a large capital base and an extensive distribution network; however, they do not have the market intelligence and proper strategies to market their products. The company plans to leverage its unique position and market intelligence to realize its full potentials.
The company will make use of the following strategies to market its products: Trade shows, internet, periodicals, coop advertising, marketing representatives, social media and finally viral marketing. The company will gauge the success of the promotion efforts by analyzing the growth in market share and sales volume.
The management of the business has the most outstanding qualities in the market, from effective core competencies and skills to technical skill. Their strong business acumen is an understatement. The management is made up of an accountant, a banker, and three marketers. This team will steer the company to success
According to Bent, &Søren, (2005), the financial part of a business plan must contain some supremely powerful information. This section must clearly indicate a company’s past financial report, present financial position, as well as the company, has projected financial position. The basis of the future financial projection about the desired financial position is sound assumptions. This par must also define the sources of the finances, capital, the amount required for start-up. Additional investment for support and expansion. How the management will use the finds and the past financial statement (Grier & Nagalingam, 2000; Khan, 1993; Fleisher &Bensoussan 2003).
Sales forecast, balance sheet, Income statement, cash flow, Break-even analysis, and financing requirements
All business managers require proper information to make intelligent and well informed financial decisions. On the other hand, all investors will desire to look at the financial statement to make wide investment decisions, by analyzing the potentials of their investment and the ability of the investment to pay off. Additionally, corporate partners would need to have a proper financial information to ascertain the amount of risk involve negotiating a contract with customers and suppliers. Therefore, Companies must estimate the amount of capital they require and determine the level of competition the company is operating at. The financial states are used within the company to govern procurement, administration of money as well as investments (Burkhart & Reuss 1993; Bradford & Duncan, 2000).
The business must conduct financial planning to:
Determine the capital requirement: this requires the analysis of the company’s costs of current and fixed assets and long term planning. Any capital requirement must have both long-term and short terms rage analysis (Michael &Kaye, 2005).
Determining capital structure- the company must plan its finances to according to the capital structure such as the company’s equity- debt ratio in both long-term and short term, and hybrid securities. It determined the kind and proportions of the capital that the business requires.
Framing financial policies the commonly will requires to have financial policies are regulation that governs activities such as cash control, lending, and borrowings. These regulations have an impact on the company’s financial planning and execution. In this way, the company can ensure that it optimizes its resources and minimizes its cost of operations, thereby remaining profitable at all times (Levine, &Boldrin, 2008; Dayananda, Harrison & Herbohn, 2002)
A financial projection is the only tool of measurement of the true worth of the business because it shows the viability and the profitability of the business. Financial projections include records and statement such as income statements, balance sheets, and cash flow statements. If properly prepared, they can convince financiers that the business will generate a stream of cash flows to repay back their investment and fuel the desire to succeed. For example, consider the case of Nextel communication, which is a startup Company in Canada. Their income statement will looks like the one posted below (Haines 2004; Lusch & Lusch, 1987; and Brian , 2000).
According to Kono, (1994), the income statement or the profit and loss statement of business is a statement that shows the company’s revenue, expenses and net loss or net income over as fiscal year. The company will only realize net revenue if the total revenue is more than the total expenses and net loss, if the net total expenses is more than the total revenue. The company may decide to accumulate its net revenue and convert it to capital, thus it becomes owners equity, or ploughed back capital. Net loss has a negative impact on the owner’s equity
Lorenzen, (2006), states that the company must always have a statement that shows its financial position after a certain period. The underlying formula in a balance sheet is total assets = total liabilities + owners’ equity. The financial position of a business includes, the amount of assets, that the company has, the liabilities or financial obligation that the company has and the capital as at any given time in the course of business operations. The business capital is the total amount of resources owned by the company such as assets and then liabilities that the company owes to other parties as at a specific date. On the other hand, Fahey & Narayman (1986), argue that residual interest that the company has is reinvested in the business. Therefore, the company must prepare a balance sheet to show its financial health, as at specific date The accumulated profit from the operation of is the owner’s equity. It is also the amount that the owner can lay claim on after the discharging the company’s debt obligations (liabilities). The company must show the owners equity whether they are from the owner’s investment in the business in terms of assets, cash (paid in capital), or they are from the ploughed back capital or retained earnings. The company might decide to retain its earning and use it as part of businesses use balance sheets for the following reasons.
1) Form reporting reasons as a requirement of the limited company’s annuals reports
2) To health the business owners and other interested partied asses the value of the whole business as at a given time
3) As a tool for analyzing and improving the financial position and management of the business
This statement analyses the changes for cash and any other cash equivalent over a trading period. This includes cash on hand and the demand deposits that accrue to a company. It also includes short term and liquid investment that the company can readily convert to cash. These cash equivalents are always subject to an insignificant risk of changes in their value. Companies must develop a cash flow statement to help them in predicting their future cash flows. Kit is also useful for analysis and financial decision making.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Working Capital Investment:||(68,908)||(70,943)||14,286||14,968||15,779|
|Cash From Operations:||168,390||203,101||146,900||176,968||208,935|
|Net Cash Before Debt Pmt||137,018||132,396||68,178||89,760||112,567|
|Change in Cash||$77,557||$100,000||$32,462||$60,575||$69,836|
|Change in Cash||77,547||100,000||32,562||500575||69,586|
Pinson, L., (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Page 20. Dearborn Trade: Chicago, USA
Brian R. & M. Bornstein (1993), ‘The Ernst & Young Business Plan Guide’ (New York: John Wiley and Sons)
Bent F, Matte K. Skamris H. &Søren, (2002),”Underestimating Costs in Public Works Projects: Error or Lie?” Journal of the American Planning Association, vol. 68, no. 3, 279-295
Bent F. &Søren B., (2005), “How (In) accurate are Demand Forecasts in Public Works Projects?” Journal of the American Planning Associations vol.71, no. 2, 131-146
Burkhart L., & S. Reuss., (1993): Successful Strategic Planning: A Guide for Nonprofit Agencies and Organizations. Newbury Park: Sage Publications.
Bradford & Duncan (2000). Simplified Strategic Planning Chandler House.
Haines G. (2004). ABCs of strategic management: an executive briefing and plan-to-plan day on strategic management in the 21st century. NY Sage
Kono, T. (1994) “Changing a Company’s Strategy and Culture“, Long Range Planning, 27, 5 , pp: 85-97
Fahey and V. Narayman., (1986). Macro environmental Analysis for Strategic Management. West Publishing
Brian T., (2000). The 100 Unbreakable Laws of Business Success. Barrett, Koehler Publishers.
Michael A. & Jude K., (2005). Strategic Planning for Nonprofit Organizations. Second Edition. John Wiley and Sons
Levine, D., & M. Boldrin., (2008). Against intellectual monopoly. Cambridge University Press. pp. 312
Dayananda D, Irons R, S Harrison – J. Herbohn, (2002), Capital Budgeting: Financial appraisal of investment projects – Cambridge University Press. pp. 150
Grier C. &Nagalingam, V. (2000). CIM justification and optimization. London: Taylor & Francis pp. 36.
Khan, M. (1993). Theory & Problems in Financial Management. Boston: McGraw Hill Higher Education.
Fleisher C., & B. Bensoussan, (2003): “Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition.” Prentice Hall,
Gordon I., (1989). Beat the Competition. How to Use Competitive Intelligence to Develop Winning Business Strategies. Basil Blackwell Publishers, Oxford/UK
Gordon I., (1989). Estelle Metayer., (1999).”Demystifying Competitive Intelligence” Ivey Business Journal, Nov
Porter E., (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors. NY Sage
PLACE THIS ORDER OR A SIMILAR ORDER WITH GRADE VALLEY TODAY AND GET AN AMAZING DISCOUNT