Entrepreneurship and Business Plan for Health Beverages

This report proposes a business plan for a new venture in the health beverages industry, focusing on providing fresh fruit juices with no added preservatives. It covers customer and competitor analysis, required skills, cash flow forecast, sources of funding, obtaining resources, management information systems, and the vision for the business idea.

ENTERPRISE AND
ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Proposed future business..............................................................................................................3
Customers....................................................................................................................................3
Competitors .................................................................................................................................4
Skills required .............................................................................................................................4
Cash flow forecast including break even ....................................................................................5
Sources of funding ......................................................................................................................5
Obtaining resources ....................................................................................................................6
Management informations systems .............................................................................................6
Vision for the business idea .......................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship refers to the activity of setting new business and taking up financial risk
in order to account to get high profits. The purpose of the report is to propose a business plan for
new business which is being related with providing health beverages which serves as the part of
the product. Present report will cover will account to what are various customer and competitors,
skill analysis, accounts to various sources of funds, vision of the business, account to various
tangible and intangible resources.
MAIN BODY
Proposed future business
The proposed business plan is for the production of fresh fruit juice where the company
wishes to get the competitive advantage over the beverages providers which helps in adopting for
healthy lifestyle for the audience who uses the products and accounts to boost up the immunity
of the individuals and to fight against the outbreak of COVID-19. Innovation accounts to
providing fruit juices with no added preservatives and accounting to the process which is being
taking with blending fruit juice in a way that account to value addition. Due to hardship of the
COVID-19 company also account to providing home deliveries which makes at the ease of
customer to avail there products (Pham, 2020). The business needs to also account to various
external factors that can affect the business functioning such as political, economical, social,
technological and various other. The new company can opt out for patent which is being granted
to the inventor that will helps the company to exclude other from making, using or selling the
invention that is variety of fruit juice for the time being as it account to uniqueness.
Customers
The target customers for the company will be classified under business to customers and
will not focus on business to business and the end users of the products will be of all
demographic, psycho graphics and under all age groups and for all geographical regions as it
accounts to catering needs of all but will specially focus on targeting old age people. The
products can be purchased by al income group as its prices are being fixed in a manner which is
being affordable for all (McKenzie,Sansone,2017). The USP of the product is its prices and
quality with wide variety such as mango juices, lemon and various other with no added
preservative which the company offers that helps customer to attract to the products. The needs

of healthy lifestyle which is being highly considered in harsh time of Corona virus and will
satisfy the need of boosting up the immunity. The company will position itself by various
marketing efforts on social media platforms which helps in wide global range and will also
account to viral marketing which helps in spreading positive word of mouth.
Competitors
The company needs to account to through understanding of the industry where it can
account to various competitors in relation to what they are offering, what strategies they adapt
which might be exercised by them as a result leads to loss of market share for the company
where the company needs to closely understand with porter five force model that accounts with
bargaining power of customer, supplier, threat of new entrants, substitution and accounts to
competitors rivalry. The competitors for the business are real fruit juices, tropicanno, paper boat
and various other where they hold majority of the market share and are big players in the
industry (Hopp, Greene, 2018). The customer can account to buy products of the company rather
than that of its competitors as this are being highly focused on quality with less prices which no
other competitors are offering and can be the means of marketing effort such as offering free
sample and other which its competitors fails and can also account to communicating with
customers about there needs and how better it can be satisfied (Marques,2020).
Skills required
The skills which are being possessed with getting business forward is related with the
skill of risk taking which accounts to calculative risk that helps in assessment of investments
being made up in right direction. It accounts to the skill of problem solving and decision making
which ensures smooth flow of business operation. It is accounts to effective team building skills
which helps in getting work done with collaboration and coordination between various members.
It is being required to recruit and have the professional who are skilled, talented, experienced,
innovative and creative in achieving the business targets and are practical and with the mindset
of critical thinking (Harja,2016). The skills which are being concerned in the industry is related
with marketing skills that states how to make it wide reach which can be the means of building
relationship with clients and various other. The skills which are being required on the part to
implement thing in right manner accounts to strong leadership,store operation, supply chain
management , community relations, IT skills and various others. The skill gaps can be addressed

by accounting to continuous training and learning development programs which helps in
improvement of the same (Fichter, Tiemann, 2020).
Cash flow forecast including break even
Initial budget or The cash budget for the pre launch of the venture can be developed as
Particular Amount (in £)
Technological requirements 300
Human resources 250
Marketing 250
Research expenses 200
Other expenses 200
Total £1,200.00
Further, the prelaunch asset cash budget can be prepared in following manner:
Particular Amount (in £)
Raw Material 750
Cash 1000
Machinery and equipments 2000
Physical Outlet (On rent) 1500

Other Assets 300
Total £5,550.00
Cash flow forecasting for 18 months
Particular Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6
Opening balance 36000 57000 84650 126850 154850 175000
Cash sales 18000 21000 26000 29000 14000 70000
Receivables 17000 19500 18000 19000 21500 22000
Sales of assets 21000 0 0 0 8000 0
Total cash received 92000 97500 128650 174850 198350 267000
Cash Expenses
Direct labor 1800 2100 2800 1700 1900 1700
Direct material 2100 2000 3200 2400 2100 3100

Selling & distribution
o/h
4600 4100 3000 4200 2600 3600
Manufacturing o/h 4000 3250 3800 3500 2850 2300
Assets purchased 18000 0 1000 1000 11000 80000
Total Cash expenses 30500 11450 13800 12800 20450 90700
Net cash flow 61500 860560 114850 162050 177900 173600
Sources of funding
It accounts to whether the company has sufficient resources to implement the idea of
running new business or not which can be in terms of various capital requirement and sources of
funds to operate the businesses where it can account to raising funds from personal sources such
as raising up of capitals from family and families and others.
It also accounts to bootstrapping which is being finding effective ways to avoid with
the needs of external financing or funding with the creativity, cost cutting and other.
The company can also raise funds from debt financing which is being getting loans from
various banks, financial institution and others. It also accounts to raising funds through equity
means such as exchanging partial ownership in the company by the means of selling shares to get
funding (Erstad, Mann,Weber,016).
Can be by the means of venture capital firm to invest and are termed as money manager
for small firm or start-ups. It can be the means where company opt to raise funds from initial
public offers which is being selling of shares to general public which is being traded on
renowned stock exchanges.

Obtaining resources
It refers to the resources needs to be obtained which can be various tangible and
intangible that helps in smooth flow of business operation where the company needs to ensure
that it account to allocation and proper planning of budgets to meet the needs of various activities
which supports and guide in achievement of common goals of the business. It accounts to
breakdown of various cost associated with the same where the company needs to ensure
sufficient cash requirement to account to meeting its first sales, next the company needs to
ensure actual budget which is required on the end of purchasing of various capital requirements
such as manufacturing space, office space, labs, key employees who will run the businesses. It
also needs to account to estimation of financial performances by comparing with existing
business which can be by means of studying various reports and understanding the feasibility of
the business (Barrow, Barrow, Brown,2018). The plans could be by building strong relationship
with suppliers of various raw material where the cost can be reduced as a result leads to earning
high margins.
Management informations systems
Business information system is a set of interrelated components which accounts to work
together to collect, retrieve, store, process and distribute relevant information which could for
the purpose of facilitating planning and controlling the organisation. Management information
system enables managers to take strategic decision by the provision of getting feedbacks on
various activities of the business. Decision support system provides with the information that
helps in making decision that are strategic and tactic. It helps integrating different aspects of
company performances with graphical interface in order to help managers to make decisions and
helps to exercise effective control over the business(McKenzie, Sansone, 2019) . It accounts to
customer relationship management which integrates data collection, storage, transformation and
analysis of customer transaction data which includes service request,purchases and various
forms of contact with the customers. This analysis helps in understanding customer requirements
for purchasing and their needs which helps in proactive and timely management with the
company which are being needed by the company to account for smooth running of business and
effective control in the same (O’Donnell, Dahl-Popolizio, 2018).

Vision for the business idea
The vision for the proposed business idea is to provide with the world class standards by
providing with the means of high quality in various healthy fruit juices where it accounts with
catering needs of different age groups. The company vision is to be the market leader and
dominate the market share and be at a position where by the company is the first in terms of the
choice of customers in beverages product which is being supported by the company mission
statements to deliver quality product with low cost which accounts with the belief systems and
core values of the organisation which helps the company in getting competitive advantage and
winning in the marketplace.
CONCLUSION
From the above report it is being understood that there are various things which needs to
be considered to start new business which accounts to what product and services needs to be
launched, who are the target customer and competitors of the company and there analysis in
terms of financial means. Understanding of the skills required to run the business, various
sources of funds to obtain various resources that are tangible and intangible and also led to the
understanding of management information system and vision of the company.

REFERENCES
Books and journals
McKenzie, D. and Sansone, D., 2019. Predicting entrepreneurial success is hard: Evidence from
a business plan competition in Nigeria. Journal of Development Economics 141.
p.102369.
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
Erstad, B.L., Mann, H.J. and Weber, R.J., 2016. Developing a business plan for critical care
pharmacy services. Hospital pharmacy. 51(10). pp.856-862
Fichter, K. and Tiemann, I., 2020. Impacts of promoting sustainable entrepreneurship in generic
business plan competitions. Journal of Cleaner Production, p.122076.
Harja, D.D., 2016. Development and business plan of ginger-based beverage (Doctoral
dissertation, Universitas Pelita Harapan).
Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management
Studies. 55(2). pp.320-351.
Marques, J.P.C., 2020. Entrepreneurship Education, Business Plan, and the Pyramid
Principle. International Journal of E-Entrepreneurship and Innovation (IJEEI). 10(2).
pp.45-61.
McKenzie, D. and Sansone, D., 2017. Man vs. machine in predicting successful entrepreneurs:
evidence from a business plan competition in Nigeria. The World Bank.
O’Donnell, R. and Dahl-Popolizio, S., 2018. Business Entrepreneurship: The Integrated
Behavioral Health Business Plan. In Training to Deliver Integrated Care (pp. 143-159).
Springer, Cham.
Pham, M.T.L., 2020. Business Plan-Viet Balo: The role of a business plan to a start up in the
food & beverage inudstry.
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