Executive Summary
Business Concept
Organic Food Solutions is a business aimed at connecting farmers of wholesome organic foods with large retail stores. The company also supplies small family shops and offers door to door delivery for customers. The company focuses on supplying its clients with fresh organic foods such as eggs, milk, meat and fresh vegetables. Organic Food Solutions aims at being the leader in natural foods supply across the country. The enterprise starts with small operations in four major cities and builds on the franchise. The business is primarily that of being a supplier, connecting organic farms with potential clients. The farms sign up with the company and receive quality service for a fee. The company receives a share of the profit and ensures maximum profit to the farmers.
Thoroughly Planned Business Concept
Organic Food Solutions, OFS, will operate primarily as a supplier of organic foodstuff to its clientele. It will supply major food stores and also have a home delivery system. The company takes advantage of the growing organic foods market that is growing at a tremendous rate. In 2014, the industry grew by 11.3% and recorded an industry record of $39.1 billion (SustainableBusiness.com News, 2015). The business aims at taking a big share of the market share by offering a more personal approach to supplying. OFS has a team of staff consisting of delivery men and drivers, a group of expert food analysts, a competent finance department and managers of various branches of the company. OFS strives to create as many professional relations with the best organic farmers in the agricultural zones. The farmers will use its services for a fee under contract, they will supply the company with fresh high quality produce and in turn the service provider guarantees supply to the market. The operation entails the direct provision of major food supply chains to the clients.
Capable Management Structure
The administration of the company is done by teams in various locations. The managers of these teams report to HQ. The teams consist of drivers, delivery personnel, account department, food experts and a team leader. The leaders are accountable for each of their areas of operations and are responsible for hiring from the locals. The team leaders report to the central office with monthly joint meetings. Information from all branches reaches HQ on a daily basis in order to monitor operations. At Organic Food Solution, only the best are hired because of the thorough recruitment process and the competitive packages offered.
Market Need
In 2014, the organic food market made record sales of $39.1 billion and grew to almost 5% of the food industry. A market analysis carried out by Organic Trade Association found that there has been a growing need for organic foodstuff with Hispanic and African American families increasing as consumers (OTA, 2015). 78 percent of consumers reported buying organic foods from supermarkets and conventional stores. A steady and reliable supplier is crucial in this market. The Organic Food Solutions ensures that its services have a good market share.
Significant Competitive Advantages
Organic Food Solutions is a cut above its competitors because of the extra services offered. The company offers a delivery option to its customers who subscribe to the service. The service eliminates the need for customers to make the journey to grocery stores, especially those who live far off. The service also allows subscribes to get exclusive discounts and deals.
Another competitive advantage is the closeness fostered with local communities and a competent skilled labor. Hiring from locals is a strong policy of the company. The company is able to foster close relations with the community by providing employment to the locals. This policy increases the chances of people subscribing to the delivery system. The company aims at having a fully functional delivery unit that rivals that of fast food chain stores. The company also has an advantage because of its competent personnel who aim at delivering the best and freshest organic foods to its clients.
Financial Projections
The company intends to make an annual turnover of over $1.2 million in its first few years of operations. High figures are projected mainly due to the contracts with supermarkets and grocery shops. $1.2 million is not a fixed figure and is expected to rise with the popularity of the company. Organic food industry within the US is grossing close to $40 billion in sales as of 2014 and the figure is rising (Statista, 2015). This increase is mainly driven by the rising popularity of organic foods particularly among those who live in cities. The future looks bright for the financial prosperity of the organic food industry.
Investors
Investors are guaranteed a good return on their investment because market projections show well projected sales for organic foods in the US and also as a commodity of export. Health and environmental reasons mainly drive sales of organic food. People are becoming more health conscious, setting the market on a steady rise. The USA has had increasing sales since 2000 with a sale of $42 billion in 2014. Organic food sales are a growing industry that is fast becoming the investment of choice for high returns.
Exit Plan
If an exit from the business is required, a carefully drafted three-part exit plan is in place. The first section of the plan involves the compensation packages to the workers and contractors. The clients will be given due notice and any business wrapped up in a five-month schedule. The second part involves the sale of the various branches to fully compensate the investors. The third part involves the liquidation of the remaining parts of the business.
References
OTA. (2015). Market Analysis | OTA. Retrieved from http://www.ota.com/resources/market-analysis
Statista. (2015, July 20). U.S. Organic Food Industry - Statistics & Facts | Statista. Retrieved from http://www.statista.com/topics/1047/organic-food-industry/
SustainableBusiness.com News. (2015, September 29). US Organic Food Sales Reach Record $39 Billion in 2014. Retrieved from http://www.sustainablebusiness.com/index.cfm/go/news.display/id/26418
