Business Plan for Cocoa Beans Factory

This business plan outlines the opportunity, sales and marketing strategies, operational structure, and financial plans for a cocoa beans factory. It includes a written and visual pitch, target market analysis, and opportunity testing plan.

Running Head: Business Plan
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Project Report: Business plan

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Contents
1.0 Business plan pitch:....................................................................................................3
1.1 Written pitch:..........................................................................................................3
1.2 Visual pitch:............................................................................................................3
1.3 Backer reward.........................................................................................................4
2.0 Business opportunity..................................................................................................5
2.1 Customer need........................................................................................................5
2.2 Target market:.........................................................................................................6
2.3 Relevant megatrends...............................................................................................6
2.4 Similar successful campaign...................................................................................8
2.5 Opportunity testing plan.........................................................................................8
3.0 Sales and marketing opportunity................................................................................8
3.1 Fundamentals..........................................................................................................8
3.2 Social media and free publicity..............................................................................9
3.3 Measurement and information..............................................................................10
4.0 Operational strategy..................................................................................................10
4.1 Operational structure............................................................................................10
4.2 Outsourcing...........................................................................................................11
4.3 Operational risk....................................................................................................11
5.0 financial plans...........................................................................................................11
5.1 P&L and balance sheet:........................................................................................11
5.2 Capital requirement and funding plan:.................................................................12
5.3 Valuation and justification:...................................................................................13
References.......................................................................................................................14
Appendix.........................................................................................................................15

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1.0 Business plan pitch:
1.1 Written pitch:
“Cocoa beans factory” is a new business idea which would offer varieties of chocolates
and fresh coffee beans in the market. The market study and market trend explains that the
demand of cocoa beans and chocolates would never be lower in the market as there are
various health benefits of these products. A study explains that the people would never lose
their interest in the chocolate because if its various health benefits, trends and the taste of the
chocolate. In Australian market, there is lesser option for the pure chocolate. Hence, in this
business the cocoa beans and pure chocolate would be imported from Belgium market and it
would be packed by “Cocoa beans factory” in different flavours and in different quantity.
Company would also offer the customized packaging to its customers according to their
demand and the flavours they required. This business feasibility explains that the business
would offer high profits and stability in future as the demand would be increased day by day
and the customer base of the company is also quite larger.
The main vision of the business is to become the leader in the chocolatier industry in
the company and then expand the business to overseas through emphasizing over the
perfection, quality and excellence of the chocolate (Quattrone, 2016). Company always
works on creating the indulgent and finest chocolate with adding the new innovation and
flavours into it. the mission strategy of the company explains that the owners of the company
are quite passionate about art of chocolate making and hence, they always starves to create
perfect premium chocolates for their customers which will put a smile on their customer’s
face and will give them a thought of satisfaction. Finest quality beans would be used by the
company to prepare the premium chocolate. Passionate, meticulous and innovation are the
key factors of the business.
1.2 Visual pitch:
The company would offer its products in different ways such as the packaging of the
product would be done in small packets or family packets, along with that, various flavours
would also be offered by the company to its customers. Few samples of chocolates are as
follows:

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(Source: Author)
Company also offers an option to its customers in which they could customize the
chocolate box according to their demand. In a single box, various flavours could be offered to
the customers. Company also has various gifts packaging option and it is quite common
nowadays to gift chocolate to someone. Hence, it explains that the demand of the product
would surely be higher in the market.
1.3 Backer reward
Funding the funds for the business is the main part to start a business. Without the
availability of required funds, a business can never start and run smoothly. Through the
study, it has been recognized that there are few rewards which could be given to backers to
reduce the cost of the business and cover all the different group of backers at one go:
Digital gratitude:

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Many of backers are always ready to throw few bucks. All the business need is to
send some appreciation letter, thank you note and a digital copy of the business which can be
printed out (Mihm, 2010).
Access:
Kick-start backers are the people who join the business at early start and they always
are very supportive and they offer exclusive access to the entrepreneurs to become more
efficient. A private event or different incentive scheme could motivate them towards the
interment in the business.
Original art:
Original art is most powerful in order to incorporate the backers into process and set a
unique memento for the business. It is required for the business to show the kick-starts about
their innovative idea and long term goal to attract them towards the business (Hussey, 2010).
Carefully considered merchandise:
It is important for the business to set a better merchandise process to sell the products
and services in the market. The merchandise process of the business must be well designed
and it should not affect much on the bank of the business.
2.0 Business opportunity
2.1 Customer need:
Through the years, it has been estimated and analyzed that the demand of chocolate
products has been higher in the market due to its health benefits, flavour intensity, sourcing,
value, increment in the number of chocolate lovers. The study explains that through the years,
the customer shopping habits have been changed and nowadays they prefer to offer the
premium products to their friends. Earlier, they used to buy all the products from the
supermarket but now they have recognized the importance of premium and hence, they prefer
to buy the products from better places, such as, they prefer to eat at the place which offers
finest food. The cravings, culture etc have also affected the customer’s need.
On the basis of study on consumer and their needs, it has been recognized that the
business of chocolate and cocoa bean would be improved in near future as all the products are

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offered by the business according to their customers demand and nature. Along with that the
innovation and creativity with flavour would never push the business towards decline stage.
The product life cycle of the business would always be at growth stage because of these
factors.
2.2 Target market:
Target market of the company would be the people who love chocolate and the
company should focus on the different taste and different flavour for different target market.
Company could also target the customers who wished to use the chocolate as a part of gift.
Along with the increment in the knowledge about health, the people prefer the chocolate and
hence, the company should advertise and present its products as the healthier product for their
customers and ask their target people to have it as a healthier snack (Lysons & Farrington,
2012). The target market of the company is entire Australian market, company would offer
different packaging, flavours and other options according to their customer’s needs so that the
entire market could be grabbed by the market.
Majorly, chocolate companies only focus towards the children because of their taste
buds and love for chocolate but this reduces the target market and profitability share of the
market. Hence, company has decided to come with various products in the market so that the
different group could be targeted. Such as company has planned to introduce diabetic
chocolate, weight lose chocolate etc.
2.3 Relevant megatrends
The study explains that various megatrends have come in the existence in the recent
chocolate market. Few of them have been discussed as follows:

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(Confectionery news, 2019)
Shifts in behaviours:
It has been found that the environment is changing rapidly and along with that the
customer’s behaviour is also changing, customer have become aware about their health,
activities and worth of the product and hence it has become quite important for the “Cocoa
beans factory” to study over the customers behaviours and trends in the market so that the
better product could be offered to the public accordingly.
Potential future application:

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Study explains that the number of chocolate customers is increasing day by day
because of various health benefits and innovation in the industry. Hence, it is important for
the business to keep a track over the people and attract them towards the business in order to
improve the market base and overall performance of the business (Messner, 2016).
Creating more intimate experiences:
“Experience more” megatrends have become quite successful. Prioritize the
experience over the passion has become new trend in the market. Company is required to
focus on this trend to become more successful in the market.
2.4 Similar successful campaign
“Cocoa brand factory” could plan a private event in which various crowd sourcing
would be done by the company to improve the funds and improve the overall performance of
the business. The company would tell about the pitch, vision, mission, objectives and aim to
the crow funders to attract them towards the business so that the base of funds could be
improved and the overall performance of the business could be managed (Mihm, 2010).
Company could also explain them about their marketing and financial plans for next 2 years
to make them understand about the customer base, market share and profitability level.
2.5 Opportunity testing plan
A market feasibility study has been conducted in the market to measure that how much
time it would take by the company to come in the market and run their business. The raw
material would be imported by the company from Belgium market. Entrepreneurs have
already talked to the supplier and according to the planning; the business would be able to run
its operations by the starting of first week in the July month. It further explains that the proper
planning of place, packaging, innovation creativity etc have been done by the company.
Company is directly planning to take raw material from the farmers so that the cost f middle
man could be saved. Also, the inventory would be ordered by the company in such a way that
economical order could be done and the additional cost of the business could be saved.
3.0 Sales and marketing opportunity
3.1 Fundamentals:

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Sales and marketing process is one of the essential processes in a business to improve
the market base, number of selling units and profitability level of the business. In order to
improve the marketing base, company has planned to follow the below process:
Place:
“Cocoa business factory” would be opened by the company in the market of
Melbourne because from here, it would be easier for the company to capture the entire market
and from here, company would plan to open new branch in the market of Sydney. Place is
essential part of marketing strategy and hence, company has conducted proper research and
study to choose this place for their store (Jeffrey, 2018).
Price:
“Cocoa business factory” would follow the penetration marketing strategy. In which,
initially, the products would be offered in the lower prices, but along with the time, the prices
of the product would be improved. This strategy would help the company to attract the
customers at first instance and then make them loyal towards the brand.
Promotion:
Promotions are the main tactics of the business. “Cocoa business factory” would use
the social media, local newspaper and local hoardings to promote the product in the market.
Also, the company is planning to open a website through which the customers could place the
order and the product would be delivered to them. Website is also open for the feedback so
that the changes in the product could be done accordingly (Koropp, Kellermanns, Grichnik &
Stanley, 2014).
Product:
The “Cocoa beans factory” would offer varieties of chocolates and fresh coffee beans
in the market. Company would also offer the customized packaging to its customers
according to their demand and the flavours they required.
3.2 Social media and free publicity
Social media marketing:
Social media marketing is one of them most used marketing platform nowadays.
Company would promote its chocolates and other products through its Instagram handle,

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twitter account, Facebook and the company’s own website. It is easier for the business to
influence the customers through social media and the amazing discount through riding the
social media account would attract the customer more towards the business. Special discount
announcement on different occasion such as Christmas would also enhance the overall sales
and profitability level of the business.
Free publicity:
Social media marketing is quite expensive for the business. Hence, the company could
also use the free publicity stunt to let the target people know about the company and its huge
variety of chocolates. Company could introduce itself as the best premium chocolate store in
the Australia market. Different is always great and attracts the customers more towards the
business (Hussey, 2014). It has been studied that this publicity has helped various brands to
get instant improvement in the sales.
3.3 Measurement and information:
Planning a business always require proper idea about the market and the way through
which sales would be done by the business. On the basis of the study, it has been recognized
that the discounts are always appealing for the customers so that prices of the product would
be bit higher and the discount would be offered on that product to attract the customers
towards the business and identify the total sales on the basis of that.
4.0 Operational strategy:
4.1 Operational structure
The operational structure of the business would be as follows:

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(Higgins, 2012)
Proper work would be divided to all the above stated people according to their
experience and their expertise in order to run the business smoothly and improve the
performance of the business.
4.2 Outsourcing
“Cocoa factory business” is focusing on offering the premium quality chocolate and
cocoa beans to its customers. In order to provide the same, finest quality of beans are required
by the company. Hence, the company would outsource the pure chocolate and beans from the
Belgium market. Also, the other process would be handled by the business itself. Company
has enough efficient and employees who are experiences enough to make some innovation
and creativity in the chocolates and offer them in the attractive packaging (Higgins, 2012).
4.3 Operational risk
“Cocoa factory business” idea explains that it would be a wonderful business and
offers higher profitability to the stakeholders for a longer period. But along with that, there
are various risks which could be faced by the business. Few of them are as follows:
1. Employee retention
2. Supplier issues
3. Changes in the rules and regulations of important and export
John (CEO of
the business)
Harry (Head
innovator and
creator)
Shawn
(Marketing manager)
Elian
(Operational and
financial head)

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4. Licence and permits
5. Funds issues
6. Competition
7. Limited funds (Chandra, 2011)
Company has prepared the mitigation plan for all the above stated issues in order to
save itself from instant losses and manage the business.
5.0 financial plans:
5.1 P&L and balance sheet:
On the basis of the overall study over the business and its profit and loss statement
account, it has been measured that initially the sales of the business would be around $
50,000 but along with the time, sales would be increased by 25% each year. Further, it has
been observed that the company could also earn little revenue through offering the franchise
in the market. Different discount would be given to the customers of the company to improve
the sales of the business (appendix). The profit and loss statement for next 3 years explains
that the net sales would be improved and long with that, the cost of sales of the company
would also be improved. However, in terms of gross margin rate, the % would be 61.9%,
65.56% and 60.21%. At the end of the 3rd year, gross profit % would be reduced because of
the few changes in the business and introduction of new products in the market (Higgins,
2012).
On the basis of overall study over the profit and loss statement brief that the net profit
of the company would be improved at great extent and it would help the business to grow
further and meet the mission and objectives of the business.
Further, the balance sheet statement explains that initially the current assets of the
business would be around $ 129,300 but along with the time, it would be reduce to manage
the liquidity position of the business. Further, it has been observed that the total assets of the
business would be lower in the 2nd year because of the lower cash in hand (appendix). The
balance sheet statement for next 3 years explains that the overall solvency and liquidity
position would be improved and along with that, the financial position company would also
be improved. However, in terms of ratios, the position of the company is improved year by
year (DemaMoreno, 2009).

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On the basis of overall study over the balance sheet statement, it has been found that
the overall financial position and solvency position of the company would be improved at
great extent and it would help the business to grow further and meet the mission and
objectives of the business.
5.2 Capital requirement and funding plan:
The company would require around $ 9450 to run the business smoothly. the capital
requirement table is as follows:
Income sources Sell of food items
Sell of beverages
Number of employees 5 employees
(salary of each emeployee is $ 300.)
Projected invetsment in equipment and material$ 1000
Projected R&D cost $ 800
Deprecitaion allowed for Machinery and equipment @ 10% (SLM)
Expected rent and rates charges $ 550
Creditor days expected and debtor day allowedCreditors tunrover days = 58 days
Debtors tunrover days = 10 days
start up Expenses calculations Rent Deposit 550$
Furniture & Fixtures 1,500$
Equipment 1,000$
Buildout/ Renovations 800$
Decorating, Painting and Remodeling 800$
Installation of Fixtures & Equipment 200$
Starting Inventory 2,200$
Legal and Other Professional Fees 1,000$
License and Permits 300$
Advertising and Promotion 800$
Consulting 300$
9,450$
the funding would be done by the company as follows:

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Shareholders name John Harry Shawn Elian
Number of share 800 500 500 700
% shareholding 32% 20% 20% 28%
Cash investment 4,800$ 3,000$ 3,000$ 4,200$
5.3 Valuation and justification:
The valuation and justification of financial statement and projections of the company
has given in the appendix.

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References:
Chandra, P. (2011). Financial management. Tata McGraw-Hill Education.
Confectioney news. (2019). 20 most influntial megratrends to shape the world. (online).
Retrieved from:
<<https://www.confectionerynews.com/Article/2017/09/07/Euromonitor-20-
megatrends-to-shape-the-world-by-2030>>
DemaMoreno, S. (2009). Behind the negotiations: Financial decision-making processes in
Spanish dual-income couples. Feminist Economics, 15(1), 27-56.
Higgins, R. C. (2012). Analysis for marketing management. McGraw-Hill/Irwin.
Hussey, D.E., (2007). Strategic Management: From Theory to Implementation, UK: Taylor
and Francis
Hussey, R. (2014). MBA Accounting 1st ed. U.K: Macmillan International Higher Education.
Jeffrey, J. (2018). Research on Professional Responsibility and Ethics in Accounting 1st ed.
U.K: Emerald Group Publishing.
Koropp, C., Kellermanns, F. W., Grichnik, D., & Stanley, L. (2014). Financial decision
making in family firms: An adaptation of the theory of planned behavior. Family
Business Review, 27(4), 307-327.
Lysons, K. & Farrington, B. (2012). Purchasing and supply chain management, Harlow,
Essex: Pearson Financial Times
Messner, M. (2016). Does industry matter? How industry context shapes management
accounting practice. Management Accounting Research, 31, 103-111.
Mihm, (2010). Fast Fashion in a Flat World: Global Sourcing Strategies. International
Business and Economics Research Journal, 9 (6) pp 55-63
Quattrone, P. (2016). Management accounting goes digital: Will the move make it
wiser?. Management Accounting Research, 31, 118-122.

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Appendix:

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Profit and Loss Statement
Year Jul 19 Jul 20 Ju;y 21
Income
Sales
Sale of goods/services 50,000.00$ 62,500.00$ 78,125.00$
Sundry Income (e.g. Commission earned,
frachise fees etc.) 500.00$ 15,000.00$ 5,000.00$
Etc. 500.00$ 500.00$ 700.00$
Total Sales 51,000.00$ 78,000.00$ 83,825.00$
Less Discounts/Commissions
Sales Discounts given 2,500.00$ 3,125.00$ 3,906.25$
Sales Commissions paid 1,250.00$ 1,562.50$ 1,953.13$
Total Discounts/ Commissions 3,750.00$ 4,687.50$ 5,859.38$
Total Net Income 47,250.00$ 73,312.50$ 77,965.63$
Cost of Sales
Opening Stock -$ 2,000.00$ 1,750.00$
Stock Purchased 20,000.00$ 25,000.00$ 31,250.00$
20,000.00$ 27,000.00$ 33,000.00$
Less Closing Stock 2,000.00$ 1,750.00$ 1,980.00$
Total Cost of Sales 18,000.00$ 25,250.00$ 31,020.00$
Gross Profit 29,250.00$ 48,062.50$ 46,945.63$
Expenses
General & Administrative
Bank charges 500.00$ 500.00$ 500.00$
Credit card commission 1,000.00$ 1,000.00$ 1,000.00$
Consultant fees 1,500.00$ 1,500.00$ 1,500.00$
Office Supplies 800.00$ 800.00$ 800.00$
Business insurance 900.00$ 900.00$ 900.00$
Etc. 800.00$ 800.00$ 800.00$
Total General & Administrative 5,500.00$ 5,500.00$ 5,500.00$
Marketing & Promotional
Advertising 1,000.00$ 1,100.00$ 1,210.00$
Promotion - General 1,500.00$ 1,650.00$ 1,815.00$
Promotion - Other 800.00$ 880.00$ 968.00$
Etc. 700.00$ 770.00$ 847.00$
Total Marketing & Promotional 4,000.00$ 4,400.00$ 4,840.00$
Operating Expenses
Newspapers & magazines 2,500.00$ 2,500.00$ 2,500.00$
Parking/Taxis/Tolls 1,000.00$ 1,000.00$ 1,000.00$
Laundry/dry cleaning 800.00$ 800.00$ 800.00$
Cleaning & cleaning products 785.00$ 785.00$ 785.00$
Sundry supplies 415.00$ 415.00$ 415.00$
Equipment hire 250.00$ 250.00$ 250.00$
Etc. -$ -$ -$
Total Operating Expenses 5,750.00$ 5,750.00$ 5,750.00$
Motor Vehicle Expenses
Fuel 500.00$ 501.00$ 502.00$
Vehicle service costs 760.00$ 761.52$ 763.04$
Tyres & other replacement costs 200.00$ 200.00$ 200.00$
Insurance 100.00$ 100.00$ 100.00$
Registrations -$ -$ -$
Total Motor Vehicle Expenses 1,560.00$ 1,562.52$ 1,565.04$
Website Expenses
Domain name registration 2,000.00$ 2,000.00$ 2,000.00$
Hosting expenses 250.00$ 250.00$ 250.00$
etc -$ -$ -$

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Jul 19 Jul 20 Jul 21
Current Assets
$100,000.00 $5,000.00 $25,000.00
$3,000.00 $4,000.00 $8,000.00
General $2,000.00 $2,000.00 $2,000.00
Rates $1,000.00 $1,000.00 $1,000.00
Workcover $250.00 $250.00 $250.00
Insurance $5,000.00 $5,000.00 $5,000.00
Etc.
Total Prepaid expenses 8,250.00$ 8,250.00$ 8,250.00$
Inventory
Raw material $2,000.00 $1,750.00
Total Inventory 18,000.00$ 25,250.00$ 31,020.00$
Short term Investments 50.00$ 500.00$ 1,000.00$
Other current assets -$ 1,500.00$ 2,500.00$
129,300.00$ 44,500.00$ 75,770.00$
Fixed Assets
Computer $5,000.00 $5,000.00 $5,000.00
Store Fit Out $1,000.00 $1,000.00 $1,000.00
Office Equipment $1,500.00 $1,500.00 $1,500.00
Leasehold $1,500.00 $1,500.00 $1,500.00
Buildings & improvements $3,000.00 $3,000.00 $3,000.00
Furniture & Fixtures $1,100.00 $1,100.00 $1,100.00
Etc.
5,600.00$ 5,600.00$ 5,600.00$
Total Assets 134,900.00$ 50,100.00$ 81,370.00$
Current Liabilities
Bank Overdraft -$ 9,000.00$ 9,000.00$
Credit Card Debt 5,000.00$ 8,000.00$ 12,000.00$
3,000.00$ 12,000.00$ 9,000.00$
-$ 500.00$ 5,000.00$
-$ 150.00$ 800.00$
-$ 200.00$ 600.00$
-$ 400.00$ 400.00$
10,000.00$ 10,000.00$ 10,000.00$
Etc.
18,000.00$ 40,250.00$ 46,800.00$
Long Term Liabilities
Motor Vehicle Loan 1,000.00$ 500.00$ 300.00$
Equipment Finance 800.00$ 1,500.00$ 1,000.00$
Long term Loans 200.00$ 500.00$ 800.00$
2,000.00$ 2,500.00$ 2,100.00$
Total Liabilities 20,000.00$ 42,750.00$ 48,900.00$
Net Assets 114,900.00$ 7,350.00$ 32,470.00$
Owners Funds 100,000.00$ 12,765.00-$ 5,510.00-$
Retained Earnings 14,035.00$ 500.00$ 2,000.00$
Current Year Profit 865.00$ 19,615.00$ 35,980.00$
Total Shareholders Funds (Equity) 114,900.00$ 7,350.00$ 32,470.00$
Assets
Total Current Liabilities
Total Long Term Liabilities
Balance Sheet
Prepaid Expenses
Cash on hand
Year
Total Current Assets
Liabilities
Debtors
Total Fixed Assets
Creditors
GST collected
Superannuation
PAYG Witholding Payable
Workcover Insurance Payable
Current portion of long term debt
Shareholders Funds ( Equity)

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Cash Flow Statement
Cashflows from Operations 1/07/2020 1/07/2021 1/07/2022
Cash receipts from customers
(enter positive amounts)Cash Sales 210,000$ 220,500$ 231,525$
Cash collected from customers (debtors)150,000$ 157,500$ 165,375$
Funding from Creditors -$ -$ -$
Stock purchased, not yet paid150,000$ 157,500$ 165,375$
Cash paid for 100,000$ 105,000$ 110,250$
(enter negative amounts)Total Expenses -$ -$ -$
Inventory (stock)purchases -$ -$ -$
Funding to Debtors
Sales made not yet collected-$ -$ -$
Net Cash Flow from Operations 610,000$ 640,500$ 672,525$
Investing Activities -$ -$ -$
Cash receipts from -$ -$ -$
(enter positive amounts)Sale of property and equipment-$ -$ -$
Matured Investments 50,000$ 50,000$ 50,000$
Cash paid for -$
(enter negative amounts)Purchase of property and equipment-$ -$ 40,000$
Purchase of investments 10,000$ 25,000$ 26,000$
Net Cash Flow from Investing Activities 40,000$ 25,000$ 16,000-$
Financing Activities -$ -$ -$
Cash receipts from -$ -$ -$
(enter positive amounts)Increase in short term debt5,000$ 5,000$ 5,000$
Increase in long term debt -$ -$ -$
Increase in equity (proceeds from owners)5,000$ 5,000$ 10,000$
Cash paid for -$
(enter negative amounts)Repayment of loans 5,000$ 5,000$ 5,000$
Dividends 15,000$ 15,000$ 15,000$
Net Cash Flow from Financing Activities 10,000-$ 10,000-$ 5,000-$
Net Increase in Cash 64,000$ 65,550$ 65,153$
Cash at End of Year 64,000$ 65,550$ 65,153$