How to Write a Perfect Business Plan in 9 Steps -

Running head: BUSINESS PLAN
BUSINESS PLAN
Name of the student
Name of the university
Author Note:

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Table of Contents
II. Executive Summary:...................................................................................................................1
III. Industry Analysis.......................................................................................................................1
A. Future outlooks and trends:.....................................................................................................1
Organic food market trends:........................................................................................................1
Organic skincare products market trend:.....................................................................................2
B. Analysis of competitors:.........................................................................................................3
C. Market segmentation:..............................................................................................................3
Demographic segmentation:....................................................................................................3
Psychographic segmentation:..................................................................................................4
D. Industry and market forecasts:................................................................................................4
IV. Description of Venture:.............................................................................................................5
A. Product(s) or Service (s) OR both:.........................................................................................5
Products (goods):.........................................................................................................................5
Skincare products:...................................................................................................................6
Food products:.........................................................................................................................6
Services:.......................................................................................................................................7
B. Size of business:......................................................................................................................7
C. Office equipment and personnel:............................................................................................8
Office equipment:....................................................................................................................8

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Personnel:................................................................................................................................8
D. Background of entrepreneur(s):..............................................................................................9
V. Production Plan:..........................................................................................................................9
A. Manufacturing process (amount subcontracted):....................................................................9
B. Physical plant:.........................................................................................................................9
C. Machinery and equipment:....................................................................................................10
D. Names of suppliers of raw material:.....................................................................................10
VI. Operations Plan:......................................................................................................................10
A. Description of company’s operations:..................................................................................10
B. Flow of orders for goods and/services:.................................................................................11
C. Technology utilization:.........................................................................................................11
VII. Marketing Plan.......................................................................................................................11
A. Pricing:..................................................................................................................................11
B. Distribution:..........................................................................................................................12
C. Promotion:.............................................................................................................................12
D. Product forecasts:..................................................................................................................12
E. Control:..................................................................................................................................12
VIII. Organizational Plan:.............................................................................................................13
A. Form of ownership:...............................................................................................................13
B. Identification of partners or principal shareholders:.............................................................13

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C. Authority of principals:.........................................................................................................13
D. Management team background:............................................................................................13
E. Roles and responsibilities of members of organization:.......................................................13
IX. Assessment of Risk:................................................................................................................14
A. Evaluate weakness (es) of business:.....................................................................................14
B. New technologies:.................................................................................................................14
C. Contingency plans:................................................................................................................14
X. Financial Plan:..........................................................................................................................14
A. Assumptions:........................................................................................................................14
B. Pro forma income statement:................................................................................................14
C. Cash flow projections:..........................................................................................................15
D. Pro forma balance sheet:.......................................................................................................15
Break-even analysis:..................................................................................................................15
Sources and applications of funds:............................................................................................15
XI. Appendices:.............................................................................................................................16
Market research data:.................................................................................................................16
References:....................................................................................................................................17

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I. Introductory page:
Name and Address of business: The Organics Limited
Headquarters: Trang Tien Plaza, Số, 23K Hai Bà Trưng, Hoàn Kiếm, 110116, Vietnam
Names and address (es) of principals:
Mr Li Cheng, Mr John Wilson and Ms Leena Shaw, Hanoi, Vietnam
Nature of Business:
Retail of organic skincare and food products, both indigenous as well as imported.
Statement of Financing needed: Attached
Statement of confidentiality of report:
The document and the information provided in it are sole properties of The Organics Limited.
The same would be used only for the purpose of The Organics Limited. Breach of confidentiality
of the information or its use by any identity without proper authorization of the management of
The Organics Limited or its appointed representatives, or successor(s) would attract severe legal
action.

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II. Executive Summary:
The organics products market is one of the growing segments in the fast moving consumer goods
markets. Consumers today prefer to consume products which are eco-friendly and contain less
amount of preservatives. The trend is stronger in developed and emerging markets. However, the
less developed markets are adopting the trend very fast. Vietnam is one such markets which is
experiencing growth in the organic food and skincare segments. The consumers in the country in
the country, especially the upper class consumers purchase organic products. However, the
country is dependent on foreign nations like China and Australia to meet its premium organic
products’ demands. The organic food and skincare industry is dominated to a great extent by
multinational companies like Bellami and L’Oreal. Thus, the organic products in the country are
generally priced extremely high since they have to be imported. Vietnam is a less developed
nation in Asian compared to the giants like China and India, which already have strong organic
products markets with fair mixes of indigenous and foreign companies. Thus, the larger portion
of its consumers cannot afford organic products owing to the high price. Moreover, the local
organic products shops, in general prefer to market foreign organic products brands at the
expense of Vietnamese brands. The new business described below namely, The Organics
Limited would offer organic skincare products and food products. It would sell organic products
of both foreign origin and Vietnamese origin. The firm would market both average priced and
premium priced. This would enable it to cater to the middle class consumers and upper class
consumers respectively. The organic products of Vietnamese origin would generally be priced
low and the imported products would in general attract high price since the latter have to be
obtained from overseas markets by paying heavy customs duty. New business ventures should
enter the emerging markets like Vietnam. The business plan shows that they should enter

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markets like organic products which are experiencing growth in demand for goods. The Organics
Limited as shown in the plan should enter the Vietnamese market with its ranges of food
products and skincare products. The company should market products aligned with the
expectations of customers. As the organic products market of Vietnam is already denominated by
global companies, the company should concentrate on retailing products in order to gain
sufficient funds required to launch its own brands in order to dominate the market in the future.
The Organics Limited should not only introduce new products but also create new employment
opportunities. The firm should employ manpower to operate in the country. It should acquire,
manage and retain skilled manpower. The company should offer legitimate salary, incentives and
other entitlements like paid leaves to the employees. The company should train its employees to
improve their skills and competencies. The report below already shows that the market
conditions in the Vietnamese organic products market is extremely competitive with presence of
overseas multinational companies. These companies mostly are listed and have immense capital
strength. This means that The Organics Limited should enter the Vietnamese market as a listed
company. This would give the company the financial strength required to compete with these
giants like L’Oreal. The report also points out two very important considerations which The
Organics Limited should take into consideration right from its inception stage, contingent plan
and risk management. The company should maintain a strong contingent plan which would
include contingent stock. The company should maintain contingent stocks of finished goods,
manpower and financial resources which would help the company tide over situations like
shortage of finished goods supply on temporary basis. Similarly, the management of the The
Organics Limited would recognize the risks which the company would likely face while
operating in the market of Vietnam. The management should form risk management strategies to

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mitigate or at least minimize these risks to the feasible extent. The company should train its
employees to identify and report risks. The company should also aim to expand into the foreign
markets like China in the long run.

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III. Industry Analysis
A. Future outlooks and trends:
Organic food market trends:
As per Voice of Vietnam, the national broadcaster of the country, the demand of organic
food products in the country is increasing. The country of Vietnam has a high population which
means that the country is capable of providing an immense consumer base to the firms marketing
organic food products (M-english.vov.vn, 2018). The consumers in the country are increasing
growing aware about the harmful effects on the health posed by fast food. They are consequently
showing interests in substituting fast food with healthier food options like fruit juice. However,
fruit juices contain added sugar which add to their sugar intake (Nguyen, 2019). Thus, there is a
growing demand for food products in Vietnam which are organic in nature sans excess sugar.
One can point out in the light of these trends in the food market in Vietnam, there are immense
business opportunities in the country for companies which would market organic and healthy
food products. It finally transpires from the analysis of these trends that The Organics Limited
should capitalize on this growing demand for organic and healthy food products to enter the
market of Vietnam and establish itself as a leading organic food marketing company in the
country.
Organic skincare products market trend:
The organic skincare products market in Vietnam is showing several positive trends.
First of all, the country is experiencing high GDP. The GDP of the country stood at USDbn
244.95 in 2018 compared to VNDbn 4770399.28 in 2016. The GDP per capita experienced by
the country in 2018 was VND 54450594.12 in 2017 (Tradingeconomics.com, 2020). This shows
that the country is experiencing increase in the production of goods and services. This means that

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firms in the country would require more manpower to meet their increasing productivity needs
which would generate more employee opportunities for the people in the country. This means
that the consumers in Vietnam would have more disposable income to afford organic skincare
products which generally more expensive compared to their inorganic counterparts. This increase
in disposable income available to consumers is reflected in the increase in the amount consumers
spend on skincare products. The consumers in the country on average spend around $100 a year
in purchasing skincare products (Chi, 2018). The second trend in the skincare market in Vietnam
is growing demands for organic skincare cosmetic products. Consumers in the country prefer
skincare products made ingredients like coconut, honey and rose. The third trend in the skincare
industry is that it is largely dominated by foreign brands like L’Oreal. The local skincare
products manufacturing firms are usually small scale firms which cannot allocate sufficient funds
to market their products aggressively in the market. The skincare products retail chains in
Vietnam usually advertise the foreign organic skincare brands owing to their greater profitability
at the expense of the local brands (Vietnamnews.vn, 2019).
B. Analysis of competitors:
An analysis of the competitors which The Organics Limited would face in the market of
Vietnam can be divided into two categories namely, international brands and local brands. The
main international competitors of the company in the food products segment are companies like
Nestle and Bellami. The main international competitors of The Organics Limited in the skincare
segment are global companies like Unilever and L’Oreal. The company would also face
competition from the local firms based in Vietnam both the food and skincare segments.

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C. Market segmentation:
The Organics Limited in order to establish itself very strongly in the Vietnamese organic
food and skincare products market right in the initial stage would have to adopt very strong
segmentation strategies. The following are the main segmentation strategies which TOL would
adopt to position itself strong in the Vietnamese market:
Demographic segmentation:
The Organics Limited would segment its consumer segments based on demographic
segmentation. The company would segment its products based on age and gender of the
consumers. For example, there would be a ranges of both food products and skincare products
which would target children specifically while others would target adult consumers. Again, as far
as skincare products are concerned, certain products like creams would target the female
consumers while the products like shower gels would target both the gender groups. The
company would segment its consumer base based on income which would refer to economic
segmentation. For example, certain skincare products and food products which TOL would
market would be of premium range and target upper class as well as upper-middle class
consumers. They would be high priced. Other products which the company would market would
be low priced and would be affordable to lower as well as lower-middle class customers. The
economic segmentation strategy of TOL would also cover the imported products as well. The
premium quality food products and skincare products imported from other markets would be
available at high prices. This appropriate segmentation of consumers on the basis of income and
consequent pricing of products would enable the company market its products to all the three
economic classes namely, lower class, middle class and upper consumers which would generate
high revenue.

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Psychographic segmentation:
The psychographic segmentation strategy of The Organics Limited would be based on the
lifestyle of the consumers and their frequency of consumption of organic products. As far as the
lifestyle of the consumers are concerned, the company would market certain products which
would target working professionals. For example, the company would market a range of protein
bars, cereal bars and shakes which would enable working people to consume these products
while at work. Similarly, the protein bars would target people who work out or are involved in
sports profession. Similarly, the skincare products like foundation would target female
consumers who are involved in outdoor work like site visits or have to spend a lot of time
travelling. Thus, the products which The Organics Limited would market would largely be
aligned to the lifestyle of the consumers.
D. Industry and market forecasts:
The organic products industry in Vietnam is experiencing growth owing to rising
demands for organic goods among the consumers. The current market size of the organic food
market in the country is estimated to be around VNĐ3.5 trillion. Around 80% food products
produced in the country is regarded as organic by the EU (Euromonitor.com, 2020). Operating in
the organic products industry requires immense capital investments, manpower, innovation and
technological strength which are generally possessed by the international companies. The local
firms in the country generally have limited resources which prevent them from carrying out large
scale innovations required to develop organic products. Moreover, the supplies of raw materials
like milk and coconut produced within Vietnam which go into manufacturing of organic
products are far below the demand for these products. That is why the organic products industry
in the country is largely dominated by Nestle capable of importing products from foreign

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markets like India and China to cater to the Vietnamese market. This dependence of the
Vietnamese organic products industry on the foreign countries for supply of finished goods and
raw materials usually result in the prices of products remaining high. Thus, the consumer
segment which the organic products manufacturing firms target consists mostly of the upper
class customers.
IV. Description of Venture:
A. Product(s) or Service (s) OR both:
The Organics Limited would market both goods and services. The goods which the
company would market would consist of skincare products and food products. These products
would be made from raw materials if natural origin like fruits, cereals and milk. They would aim
to create value for the customers by enabling them to meet the nutritional needs of both their
bodies as well as their skin. The following section would shed light on the products and services
which the company would market in Vietnam:
Products (goods):
The product umbrella of The Organics Limited (to be abbreviated as TOL for marketing
reasons) would be divided into two broad categories namely, organic skincare products and
organic food products.
Skincare products:
The skincare products which The Organics Limited would market in Vietnam would
consist of creams, shampoos, shower gels and soaps made from organic raw materials. The
product line would consist of products both of Vietnamese origin as well as imported from other
countries like India. The trees growing in Vietnam include hibiscus, coconut palm and tropical

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almond, all of which have uses in the skincare. These skincare products which the company
would market in Vietnam would largely be made from fruits, flowers, leaves and bark obtained
from these trees. The skincare products would have minimum preservatives and chemicals. This
would ensure that these skincare products would restore the pH balance of the skin upon
application. The products would as a result contain medical properties as well as aroma
therapeutic attributes. The consumers using these products would be able to fight issues like skin
damage and dehydration which are outcomes of the lifestyle issues like stress they encounter in
everyday life. The company would also import organic skincare products from other markets like
India, China and Australia.
Food products:
The food products which The Organics Limited would market in Vietnam would consist
of breakfast cereals, cereal bars and beverages. These food products would be made from natural
raw materials like cereals, natural oil, fruits and milk. They would be rich in nutrients like
proteins and carbohydrate. They as a result would enable the consumers to meet their daily
nutritional requirements which enable them to lead healthy lives. The consumers who are
involved in outdoor activities like sports and working professionals would be able to carry the
cereal bars which the firm would market. They would be able to consume these cereal bars as per
their convenience while at work. Thus, the consumers would eventually become less dependent
on fast food products which are harmful to their health. As far as the beverages are concerned,
the company would market beverages like organic tea, organic coffee, milk shakes and fruit
drinks made from fruits like mangoes. The food products which the company would market
would be of both Vietnamese origin as well as of foreign origin.

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Services:
The services which The Organic Limited would consist of retail services as well as online
services. The company would open retail brick and mortar retail outlets in the leading cities of
the country like Hanoi and Ho Chi Minh. The company in the long run would target to enter
markets like India which are experiencing growth in the retail sector. The company would make
its products available in the retail outlets. This would enable the consumers visit the stores
owned by the company as per their convenience and purchase goods.
The Organics Limited would provide online retail services which would enable the
customers using its official website namely, ‘www.tol.com’. The company would make its full
ranges of products available on the official website. The viewers would be able to view full the
products and obtain information their attributes like usages, ingredients and prices. The viewers
would be able to order the products using the ecommerce portal which would attached to the
official website of the company. The consumers would able to pay online or upon receiving
delivery of the products.
B. Size of business:
The Organics Limited would be a limited company and would operate in the national
level in the initial stage. The company in the subsequent years would expand into foreign
markets like India and China, thus transforming its size into an international company from a
national level company.
C. Office equipment and personnel:
The Organics Limited would have to acquire office equipment and personnel in order to
operate in the Vietnamese organic products retailing industry.

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Office equipment:
The Organics Limited would have to acquire office equipment in order to execute its day
to day operations. The company would be an organic products retailing company and
consequently would not require acquiring machines for manufacturing the products it would
market. However, it would have to acquire machinery to run its retail operations. The company
would have to acquire hardware like computer sets, printers, routers and CCTV cameras. The
company would also purchase different types of software like accounting software, HR
management software, invoice software and online banking portals.
Personnel:
The Organics Limited in order to ensure smooth market operations would have to acquire
talented and skilled manpower. The company would operate under the leadership of an
experienced board of directors which would work in collaboration with the CEO. The main
departments of the company would be finance department, marketing department, human
resource department, legal department, procurement department, administrative department and
the IT department, each under the command of its respective departmental head. The
procurement department would in the initial stage oversee procurement of both local products
and foreign products. However, as the business of the company would expand, the company
would create dedicated departments to oversee its foreign operations. The departments would be
headed by a manager each. The managers would be supported by around 5 employees. This
means that total number of employees the company would employ would be around 50 in the
initial phase.

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D. Background of entrepreneur(s):
The main entrepreneurs of The Organics are Mr Li Cheng, Mr John Wilson and Ms
Leena Shaw. Mr Cheng, a Chinese by origin would be the first CEO of the company while Mr
Wilson, a British by birth, would join the board of directors. Both the gentlemen have rich
experience of working in organic products industry in different markets like Australia, the United
States of America and India.
Ms Leena Shaw, an Indian by birth would be the first CFO of the company. She has an
experience of more than a decade of working in reputed banks like the HSBC and Citi Group.
Her extensive knowledge about the financial market would enable her to take appropriate
financial decisions. This would ensure that the company generates higher returns from the
market right from its initial years.
V. Production Plan:
A. Manufacturing process (amount subcontracted):
The Organics Limited would be involved in retailing of organic products at its retail
outlets and on ecommerce portals. Hence, it would not require acquisition of manufacturing
facilities at the initial stage. However, if the company ventures into production of goods under its
own brands in the long run, it acquire manufacturing facilities.
B. Physical plant:
The Organics Limited would not require physical plants to manufacture goods since it
would be involved in retailing of organic food products and skincare products. However, it
would acquire the same when it would venture into manufacturing of goods under its own brand
in the future.

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C. Machinery and equipment:
The machinery and equipment which The Organics Limited would acquire would consist
of office equipment and warehouse equipment. The office equipment which the company would
acquire would consist of installations like hardware and software which would be used in the
daily operations. The company would have to acquire safety equipment like fire extinguishers
and CCTV cameras which would be placed in strategic areas within the office premises. The
warehouse equipment of the company would machines which would be used in lifting the bulky
inventory of finished goods which would be acquired from the suppliers both from within
Vietnam and abroad.
D. Names of suppliers of raw material:
The Organics would not require to acquire raw materials as it would not be involved in
manufacturing of goods. However, it would require to maintain names of suppliers of raw
materials when it would venture into manufacturing of goods.
VI. Operations Plan:
A. Description of company’s operations:
The operations of The Organics would consist of acquisition of organic food products
and organic skincare products from local and foreign suppliers. The company would retail
organic food products and skincare products at its retail outlets and ecommerce portal which is
attached to its official website. The company would serve both individual customers and
business customers using its retail outlets as well as ecommerce portal.

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B. Flow of orders for goods and/services:
The marketing department would estimate the demands for goods for a coming period
like a month. The marketing department communicates its information to the procurement
department. The procurement department checks with the inventory present and if there is a
shortage, the inventory department places orders for the goods with the suppliers. The
procurement department after procuring the goods would inform the marketing department and
the transfer the invoice generated by the supplier to the finance department. The finance
department releases the payment. The products would be delivered to customers using retail
outlets and the ecommerce platforms.
C. Technology utilization:
The Organics Limited would utilize technology heavily in its operations. The company
right from its initial days would acquire different types of software like accounting software,
CRM and HRM software. The company would also use social media platforms like Youtube to
promote its goods in the market.
VII. Marketing Plan
A. Pricing:
The company should use appropriate pricing strategies to market its products. As far as
the food products and skincare products of Vietnamese origin are concerned, the company would
employ penetration pricing. This would enable the company market its products before the lower
and middle class customers which cannot afford organic products marketed by multinational
companies. As far as pricing of the imported premium food products and skincare products are
concerned, the company would adopt premium pricing. This would enable the company generate

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high revenue which would be able to cover the importing expenses borne to import these
products.
B. Distribution:
The Organics Limited would distribute its products at its retail outlets and ecommerce
portal which would be attached to its official website. The retail outlets would be located
strategically in important areas like junction of important roads which would enable consumers
to accede to the outlets easily. The ecommerce portal would enable distribution of goods to
consumers who do not have direct access to the outlets owing to distance issues.
C. Promotion:
The Organics Limited would promote its products using integrated marketing
communication channel. The company would promote its goods on both traditional marketing
channels as well as digital marketing channels. The traditional marketing channel would consist
of newspapers, television and magazines. The digital marketing channel would consist of the
official website of the company and social media platforms like Facebook.
D. Product forecasts:
The marketing department should forecast the numbers of products of each category
which would be purchased. The marketing department should conduct market surveys to
estimate the amount of products like soaps and packets of cereals which consumers require.
These market surveys would enable the company to forecast the future demands of products
more accurately and procure accordingly from suppliers.

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E. Control:
The management of The Organics Limited would exercise strict control on the operations
of the company. The management should ensure that the operations of the company advance in
compliance with the laws in power in Vietnam.
VIII. Organizational Plan:
A. Form of ownership:
The Organics Limited would be limited company. The shareholders would be the actual
owners of the firm.
B. Identification of partners or principal shareholders:
The principle business partners of The Organics Limited would be suppliers from which
it would acquire finished goods. It must ensure that it makes timely payment to these suppliers in
order to enjoy their continued support.
C. Authority of principals:
The authority to take decisions pertaining to the operations should ultimately rest with the
board of directors. The departmental heads would have the authority to take decisions pertaining
to their respective departments.
D. Management team background:
The management team of the company would have sufficient knowledge, skills and
experience to take accurate decisions. They should also have skills to manage employees of
diverse cultural, racial, age, gender and educational groups. The management team should
uphold diversity management among employees right from the inception stage.

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E. Roles and responsibilities of members of organization:
The members of the organization would be responsible for operating responsibly so as to
ensure protection of the interests of the stakeholders. They should uphold corporate governance
and ethics in all aspects of operations.
IX. Assessment of Risk:
A. Evaluate weakness (es) of business:
The weakness of The Organics Limited would lie in the fact that it is new in the market
of Vietnam. It would encounter competitions from stronger players like Nestle and L’Oreal in
food and skincare segments respectively.
B. New technologies:
The Organics Limited should use new technology throughout the length and breadth of
its operations. This would ensure that the company operates smoothly. For example, the
company should use CRM right from its inception stage to acquire, hold, share and use customer
data to form product strategies. Similarly, it should use social media platforms like Facebook and
Instagram to market its products in the Vietnamese market.
C. Contingency plans:
The Organics Limited should form contingency plans to ensure that it is able to ensure
smooth operations in the face of market risks. For example, if the company faces sudden
shortage of supplies of finished goods from suppliers on temporary basis, the company should
hold sufficient contingency stock of finished goods in its warehouses. It would be able to release
these finished goods to serve customers till the supply of finished goods is restored back to
normalcy.

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X. Financial Plan:
A. Assumptions:
1. The amounts have been increased @10% yearly.
B. Pro forma income statement:
Attached
C. Cash flow projections:
Attached
D. Pro forma balance sheet:
Attached
Break-even analysis:
Attached
Sources and applications of funds:
Attached

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XI. Appendices:
Market research data:
GDP of Vietnam, (USDbn)

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References:
Chi, K. (2018). Vneconomictimes.com. [online] Vneconomictimes.com. Available at:
https://vneconomictimes.com/article/business/natural-organic-cosmetics-possess-major-
potential [Accessed 31 Jan. 2020].
Nguyen, H. (2019). Voanews.com. [online] Voanews.com. Available at:
https://www.voanews.com/east-asia-pacific/obesity-among-vietnamese-rises-even-they-
search-healthful-food [Accessed 31 Jan. 2020].
Tradingeconomics.com. (2020). Tradingeconomics.com. [online] Available at:
https://tradingeconomics.com/vietnam/gdp [Accessed 31 Jan. 2020].
Vietnamnews.vn. (2019). Vietnamnews.vn. [online] Available at:
https://vietnamnews.vn/sunday/features/535999/green-cosmetic-products-storm-local-
market.html [Accessed 31 Jan. 2020].
M-english.vov.vn. (2018). Retrieved 31 January 2020, from
https://m-english.vov.vn/economy/vietnams-organic-food-market-getting-more-vibrant-
389423.vov
Euromonitor.com. (2020). Retrieved 11 February 2020, from
https://www.euromonitor.com/vietnam