Executive Summary
Better Fresh Juice Parlor is determined to create a distinctive place where customers can exchange meaning and entertain each other in a relaxed environment as they enjoy quality fresh juice and snacks. Apart from serving the customers, we will be conscious in providing satisfaction to our employees and steady returns to the shareholders by constantly reinvesting our profits in a portfolio of businesses. The business will capitalize on the high population of Minnesota Institution of Management as it focuses on developing a big customer base for its products.
1.1 Objectives
• To be the best Fresh Juice parlor in the region as rated by local authorities.
• To maintain a profit margin of 40% and above,
• To yield profit within the first quarter of the first year of operation.
1.2 Keys to Success
Customer service- we focus on enhancing the success of the business by putting our efforts on quality customer service. We will ensure this by training all the employees on the best ways handling customers. We also focus on conducting research on regular bases to identify our customers’ levels of satisfaction and respond promptly.
Quality products- We are determined to ensuring that all our products are 100% natural. This is the best way of promoting the delivery of health products to our customers. We intend to purchase our raw materials from the vicinity of the business.
Promotion and advertisement- We believe that a business cannot grow to higher heights if it is not well marketed. As a result, we intend to use various promotion and advertisement strategies to attract many customers to our products. Some of the strategies that we intend to use include digital marketing, campaigns, use of posters and sales representatives.
1.3 Vision
1.4 Mission
Better Fruit Juice Parlor intends to offer a healthy, quality and refreshing experience within the region by use of locally available fruits. To deliver quality service and fulfil the health needs of our health conscious customers via our high-quality juice products. We focus on making Minnesota Institute of Management a refreshing and healthier college.
Company Summary
Better Fresh Fruit Juice is a private Company that sells fruit and vegetable juices, snacks and smoothies in its 2,600 square feet premises located in Minnesota City next to Minnesota Institute of Management. The two owners of the business Jessica and Derrick own 100% of the company. It is assumed that the company will start at a profit not less than $20,000 in the first month of operation.
2.1 Company History
Better Fruit Juice Company started as a small kiosk that used to sell fruits and vegetables of Jessica when she was studying at the University. She used the kiosk to develop fruit and vegetable drinks for a small population in a small town call Minkop in Minnesota. Initially, the fruit and vegetable products became popular with time and within a year after Jessica completed her studies went into partnership with a Derrick who now intend to expand the business to Minnesota City alongside Minnesota Institute of Management College. Today the company has a staff of 15 employees in production, delivery, and sales of the products.
2.2 Company Locations and Products
Our Company is located at 2346 Main Street in Minnesota City next to Minnesota Institute of Management. The business is located in a strategic place in a commercial area a walking distance from the college. This presents the business with an advantage to woe students and the elites within the college to purchase its products. Besides, it is located on a street which is free from traffic jam of the city making it easy for customers to flock into the premises very fast.
Furthermore, the premises location is free from industrial pollutions thus giving it a plus in offering healthy products free from contamination. Moreover, its location has plenty of clean water and stable electricity lines that allow the business to run throughout without any interruptions. The passers-by are able to see customers enjoying beverages at a far distance following the separation of the premises from of the other businesses. The neon electric lights moving around the entire premise aim at winning the attention of customers at a far distance.
Company Start-up Summary
The expenses assumed to be present during the start of the business are as follows;
Promotion expenses that will be incurred during the opening day of the business in estimated amount of $4.000 and $1,000 for flyers and posters.
Legal expenses which involve 1,000 for obtaining licenses and health permits for starting the business.
Prepaid rent, water and electricity expenses for the premises which amount to $5,000, $3,000 and $2,000 respectively.
The required assets for the business amounts to $265,000 which include inventory amounting $15,000, operating cash of $60,000, Equipment of $50,000 and machinery and furniture amounting to $140,000.
Funding
We seek to obtain financing of the business in the amounts of $300,000 as the start-up capital. Besides, we focus on reinvesting 50% of our profits in the subsequent years to foster continuous growth and development of the business. The main sources of business funding will include a contribution by the two stakeholders Jessica and Derrick and a loan from the bank. Jessica will contribute $100,000 while Derrick will contribute $70,000 and the remaining $130,000 will be in the form of a loan.
2.4 Company Products
Our business offers products such as;
Fruits and vegetable juices
Fruits shakes
Smoothies
Superfood juices
Snacks
3.0 SWOT Analysis
3.1 Strengths
The company has several strengths that will play a great role in enhancing its success in the market. The first strength is the availability of health fruits and vegetables within the locality of the business. The business will be located in a region with plenty of local fruits and vegetables which are the raw materials for the company products. The availability of the fruits and vegetables helps the company in reducing the operational costs related to transportation. Besides, the company has a pool of competent employees who are key in promoting quality customer service.
3.2 Weaknesses
Despite the fact that good measures are put in place to ensure efficiency of the company, there are some weaknesses that may arise in the course of expanding the business. First, the high cost of operations may be expected during the first months of the business operation. In any business start-up, there are many forms of inefficiencies that lead to increased costs of production. However, this weakness will be contained by maximizing resources utilization. Besides, marketing the business may be another challenge for the company since the target customers have already established other bases offering the same products. However, with the integration of various marketing strategies, we feel that this weakness will be contained.
3.3 Opportunity
Minnesota is a strategic location which gives an advantage to our business expansion. The institute has a population of approximately half a million students which can present a good market for the business. Besides, students are known for having a great passion for fast foods such as juices and snacks which will be on our menu. Furthermore, students like a conducive environment for relaxing and sharing meaning after a busy day’s schedule. On the other hand, Minnesota is known for its richness in local fruits that come from the surrounding region. This is one opportunity that the business will utilize to strengthen its menu.
3.4 Threats
Better Fresh Juice Company may be exposed to various threats that other similar businesses experience but measures will be put to minimize them. Food poisoning is the most probable threat that may arise in the course of business operation of our company. Some of the fruits and vegetables provided may have contained some harmful chemicals that may be contained since when the plants were sprayed to prevent pests and diseases. However, our food nutritionist will take measures to ensure that all the raw materials are inspected for the same. Other common threats that may arise include fire damage, theft, fraud and burglary, breakdown of equipment, food poisoning and customer injury
Market Analysis Summary
4.1 Market Trends
There is a steady increase in demand for freshly prepared juices in Minnesota following the focus on healthy products among the US citizens. This presents an added advantage to the well-brewers who are conscious of health in the production of their products. With its large and long summer of sunny days, the location of the business near the Minnesota Institute of Management will be a great place for fresh juices establishing.
Beta Fresh Juices focuses intends on focusing its marketing actions on bringing to bracket the College students. Other targeted customers for the business are the people working in offices located nearer to the Juice parlor and civilized teenagers who are conscious of healthy products.
4.2 Customer needs
We have a strong marketing team with enough competence on customer service. We focus on conducting continuous research of the market to identify the changing needs of our customers. This will help us in developing products and offering services that are consistent with our customer needs. Besides, we have a quality delivery systems that can assist us to distribute our products to various destinations within the city once requested for by our customers. This differentiates us from our competitors who have to permanently develop stores in different places in the town to reach customers. It is the best move that plays a great role in help us reduce the costs of operation for the business (Mutel, 2010).
4.3 Competition and buying pattern
4.3.1Competition
Competition for the business will be extremely high considering a number of restaurants within the region offering the same products. However, we are glad that our business will stand proudly relative to other businesses offering the same products within the region because our survey shows that these businesses do not offer natural fruit and vegetable juices. The American citizens have changed their preferences from artificial to natural products which are conscious of their health status. Proper promotion of the business will also strengthen our competitiveness in the region (Nykiel, 2005).
4.3.2 Buying pattern
One major reason why we perceive our business to have a large customer base within the region is due to the customers’ conscious about natural products we are offering. Many customers want quality products which have a natural taste and quick service which we believe our business is up to the task. Such integration will help us grow a large customer base for the business as well as building a long lasting relationship with them.
Strategy and Implementation Summary
Better Fresh Juice Company puts all its efforts towards producing and serving natural healthy products that adhere to health needs of our customers.
5.0 Market Strategies
5.1 Promotion Strategy
We intend to use various strategies to promote our products in the market. Firstly, we intend to use social media which happens to be the most effective. The target customers for our products are students and the elite group in the society who use the social media often. We feel that social media such as Facebook, Twitter, snap chat and telegram will be key for meeting a large market for the business. Besides, we focus on sending our sales representative in the market to teach and inform the customers of our products. Finally, we focus on using posters and run campaigns within the city to promote our products.
5.2 Pricing Strategy
Better Fresh Juice Company focuses on introducing its products to the market at a 15% off normal prices during the first two months of its existence. Besides, the company will offer its products at affordable prices to all its customers. It will ensure this by using different quantities in its product provision such that there is a quantity that goes for $10.
5.3 Sales strategy
Our sales strategy will be the focus on promoting customer loyalty in our target market. Beta Juice will increase and train its sales force to ensure that they have the competence to focus on the target market.
6.0 Management Summary
The company is to be jointly owned by a Derick and Jessica who are currently the directors of XYZ consultant agency and ABC Consumer Insights respectively. They both hold a degree in commerce from Daystar University and Harvard University respectively. This person's responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. Jessica has developed both leadership and coaching skills that we believe she has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational performance.
The company will also employee Clare who will be the food production manager. Clare has a bachelor’s degree in food science and nutrition from Harvard University and is believed to have a rich knowledge to train the other staff in the production department to enhance production of quality products that are health conscious.
7.0 Financial Plan
7.1 Start-up Budget
7.2 Sales Forecast
The following table and charts show a preview of sales projections during the first twelve months of operation for the business.
7.3 Projected Profit and Loss Account
8.0 References
Mutel, D. (2010). Business plan. Orchamps: Atelier Didier Mutel.
Nykiel, R. A. (2005). Hospitality management strategies. Upper Saddle River, NJ: Prentice Hall.
Appendixes
7.3 Projected Profit and Loss Account
