This business plan outlines the operations, goals, objectives, and financial plan for Stay Healthy, an online and offline food and beverage company in Mauritius that provides healthy food and health services. The plan includes information on the target market, competitors, SWOT analysis, marketing plan, and profit and loss statement.
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Running head: BUSINESS METHODS AND PROCEDURES Business Plan Name of the Student: Name of the University: Author’s Note:
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1BUSINESS PLAN Name of the Business: Stay Healthy Trading Name:Stay Healthy Private Limited Date of Incorporation:28thApril 2019 Headquarters:Mauritius Owner’s Name:Harry Williams Place of Operation:Mauritius
2BUSINESS PLAN Introduction The start-up venture plan will be created in the food and beverage industry in the Mauritius whereby the company will be controlling the various operations of the company. The aim of the company will be operating in the food and beverage industry whereby the company will be providing healthy food and health services. Providing health tips to the customers in the form of preparation of balanced diet chart and healthy lifestyle will be the services, which the company will be providing. The location of the company will be in Mauritius and the operations of the company will be widespread (Swinburn et al., 2015). The vision and goal of the company will be in providing various health care services for the customers so that they are able to get healthy food at right price and better health tips that will improve their lifestyle. In order to promote the activities of the company the company will be in engaging various online marketing and social activities in order to increase the know how about the products and services of the company (Minkler et al., 2018). It is essential that various activities of the company undertaken would be based upon the action plan of the company and the same would be helping the company in maintaining the operations of the company effectively. The goal of the company will be increasing the market penetration of the various products and services of the company in the form of increasing demand for the various products and services provided by the company. The financial plan for the company was drawn thereby drawing up the financial statement for the company for the initial year in which the various sources of revenue and the expenses for the company were taken into account for the purpose of the analysis of the financial resources of the company (Demartini et al., 2019).
3BUSINESS PLAN Goals and Objectives The goal of the company is to provide healthy foods and beverages in the modernizing and growing food industry where the demand for the health food is set to outgrow than others. If the health of consumers are, being considered based on rising health issues and conditions faced by consumer it is important that necessary steps and actions be taken to control the health issues faced by the consumers (Perugini, 2019). Degrading balance between the work life balance and fast moving health and food sector has been the key reason for the selection of the food and beverage industry. The company will be catering various consumer thereby fulfilling their needs and wants in the field of healthy food and beverages for the consumers. It is expected that the company increase the customer base for the company at an increasing rate so that the revenues and expenses of the company are well planned (Toma, Zeelenberg & Corneille, 2016). Short- term goal of the company will be in the form of attracting new customer base for the company. The medium to long-term goal of the company will be in the form of developing the brand name of the company. Profitability and growing return on capital employed for the company will be the key goal of the company. The objective of the company is to capture a significant market share in the food and beverage industry with the increasing market penetration of the various products and services of the company. It is expected that the business will be meeting the various financial and operational goals for the company in the form of increased marketing and business activity of the company. Providing high quality food and beverages in the field of food and beverage industry will be the key factor concerning growth for the company. The objective of the external stakeholders of the company is in the field of better products, management of resources and performing several social actions for the society on an overall basis.
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4BUSINESS PLAN Vision The vision of the company will be in the form of higher management level of activity that were taken by the company. A wide range of products and services will be offered by the company in the field of the healthy fast foods and beverages like Cold Chicken Sandwich, Russian Style Green Salad, Rice Bowl with Shredded Chicken, Grilled Pork with vegetables, Almond Protein Shake and Banana Protein Shake (Ward, 2016).
5BUSINESS PLAN
6BUSINESS PLAN ProductIngredientsHealth AdviceNutritional Card ColdRussian Saladwith Asparagus Asparagus,Olives, Mushrooms,Olive Oil, lemon juice and Cheese Asparaguswould containsfolic acid,whichisa commonsource for Vitamin B9. TheasparagusandOlives acts as a good source of rich vitaminsandfolicacid helpingforgrowthofthe body. It also promotes metal binding and detoxification. ProductIngredientsHealth AdviceNutritional Card Turkey Sandwich Whole Wheat BreadIronwillbethe keysourcefrom Pork Vitamin B6, Iron, Zinc are the key nutrients that will be providedandwillprotect fromCardiovascular functions. Ham SandwichFrench Wheat BreadHigh vitamin and mineralsfrom Ham Vitamin B, Selenium, High Iron,Zinc,andpreventing CancerandCardiovascular functions. The above table shows the nutritional information about the various products catered by the company in the field of the healthy products, which will be priced at a range of MUR 300 and the beverages will be offered at a range of MUR 140-160. The pricing of the product will be priced in accordance with the best in the industry whereby the company will be offering various categorised products and services.
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7BUSINESS PLAN Market Research The market research for the company would be done with the help of the secondary data collected for the company whereby the growth and opportunity in the food and beverage industry was taken into consideration for the purpose of analysis. The growth in the food industry has been considerable well for the company whereby the company has consistently increased the growth rate of food and health industry growth (Burns & Dewhurst, 2016). Target Market The target market for the company would be the office goers and students who will be easily attracted with the variety of food options available providing benefits to the consumers in the field of various activities taken by the company. It is necessary that the company identify the
8BUSINESS PLAN target market where the operations of the company should be identified and necessary actions and steps are taken for the identification of the same (McKeever, 2016). The growth rate in the GDP of the economy will be significantly affecting the overall profitability of the company and the same will be creating a significant opportunity for the Stay Healthy Company. The increased business activities and the positive macro-economic factors like the stable food inflation rate in the economy, lower level of unemployment will be the key factors supporting the market penetration of the various products and services of the company. SWOT Analysis The SWOT Analysis for the company was performed with the help of the identifying the opportunities in the market. SWOT Analysis shows the strength, weakness, opportunities and threats for the company. It is necessary that these factors are well identified and reported by the company so that the operating activities of the company can be well controlled and effectively managed by the management of the company (Cornwall, Vang & Hartman, 2016).
9BUSINESS PLAN Strengths:The strength of the company is the various health product and services that is offered by the company in the field of healthy food and services. The presence of the healthy food at the best quality and price will be the key additive advantage of the company. Weakness:The key weakness of the product will be the high fixed and variable cost involved in the early stage of operations and the low pricing of the products and services will be the key advantage of the company. The low profitability and higher costs involved in the company will be the key reason that will mark the weakness for the company in terms of the operational work for the company (Bentil & Yeomans, 2016). Opportunity:Rising health, food and beverage industry for the companyhas been the key reason that will help the company in increasing the market opportunity for the company. The health and food industry has been growing at a rapid stage and the same can optimally boost the overall market penetration for the company (Dale, 2019). Threat:Increasing competition in the market along with therisingonline food application and website can make the operations of the competition high. Company will be facing direct competition from the increasing demand for junk andother fast foods (Lee et al., 2015). Marketing Plan The marketing plan for the company will be designed in such a manner so that the operations and the growth of the business will be at a comparative rate. The marketing of the products and services of the company will be such, which help the company in increasing the demand for the various types of products and services for the company. Marketing of the products and services will be done bon both online and offline basis (Morgan et al., 2016). Offline marketing includes making of broachers and pamphlets for increasing the know- how about the products and services offered by the company. Advertisement in food retail outlet
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10BUSINESS PLAN and various grocery shops will help the customers know about the various healthy food products offered by the company and the additive advantage offered by the company in the same field. Online marketing will be done by the company in social website as in the process of increasing the knowledge about the products and services. The aim of the marketing will be to promote the logo of the company among the customers that eating healthy food may positively affect their health lifestyle. The company on an annual basis will be spending its financial resources in the field of marketing about the various activities of the company. Marketing activities will not only help increase the demand for the various products and services but will also create a brand image or goodwill in the market. On the other hand, side the company should also review the changes in the demand or the changes in the revenue seen by the company with the increased marketing activity taken by the company (Stone et al., 2016). Competitors Mr Delivery Hunger App, The Lunch Box, Mauritius and Mauritian food online will be the key competitors that the company will be facing in the field of online food delivery app which provide fast food at competitive prices. Stay Healthy will not only be providing the foods and beverages on an online basis but will also have an offline store where the company will be taking care of all the activities of the company. It is essential that the company identify their key competitors in the market so that they are well able to identify there competitor and make their suitable plan in accordance with the current environment under which the operations of the company take place (Alali, 2018). Financial Plan The financial plan for the company was drawn thereby projecting the revenue and expenses for the company for the financial year thereby projecting the sources of revenue and
11BUSINESS PLAN expenses for the company. The classification of the financial statement of the company can be well done with the help of the revenue for the company, which will be around MUR200, 000 in the initial year, and the same is expected to grow at a 5% growth rate for the company. The expenses for the company will be in the field of fixed and variable expenses for the company whereby the company will be incurring the same based on the operations undertaken by the company (Cramer, 2017). Financing Sources:The Company will be raising the initial required finances for the company in the form of equity and debt for the company whereby the company will be raising around 60% from the equity sources and the rest of the finance will be raised from the debt sources. In total of MUR 250,000 will be required as the total initial capital for the company whereby the company is expected to invest the same in the operating and investing activities of the company. Revenue Forecast:The revenue forecast for the company in the initial year will be around MUR 200,000 and the same will be dependent on the monthly sales that will be made by the company in the form of increased marketing and operating activities taken by the company.The growth in the revenue of the company will be around 5% for the company. The growth rate of 5% of the company is dependent on the growth rate of the industry and the demand for other various kinds of health products offered by the company. Operational and Direct Expenses:The operational and direct expenses that will be incurred by the company will be in the form of wages and salaries paid by the company, rent charges, accountancy fees, suppliers contract and expenses done by the company on marketing and advertisement of the various products and services of the company. The company will also be spending a considerable amount in researching about the variouschangesandoperationalactivitiesongoinginthefoodandbeverageindustry.
12BUSINESS PLAN Researching and spending a considerable amount in the market research will help the company in getting to know about the changes the company expects and about the taste and preferences of the consumers. Surveys and research in the field of knowledge about the benefits of the healthy food and beverages and their impact on the lifestyle will be some of the research that will be underrate by the company for getting an idea about the scope and growth of the products and services offered by the company. Profit and Loss Statement Year1 Revenue150,000 Cost of sales75,000 Gross profit75,000 Expenses/overheads Premises (rent, rates)2,500 Wages and salaries7,500 General expenses200 Accountant Fees400 Payroll Tax300 Utilities2,500 Sales and Marketing6,000 Postage & Telephone250 Repairs and Maintenance200 Preliminary expenses2,000 Depreciation31,000 Lease Payments2,000 Total expenses/overheads54,850 Profit before tax20,150 Tax @ 20%4,030 Before tax net margin13% Profit after tax16,120 Transfer to reserves16,120 ParticularsYear 1 Return on Investment10.75%
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13BUSINESS PLAN Return on Investment/Profitability:Profitability and return on investment are some of the key sources driving the financial viability of the business in the form of higher returns for the shareholders of the company. Return on investment can be considered as the best source for assessing the financial viability and visibility of the business. It is essential that the business consider various factors and options for the purpose of the evaluation of the profitability of the company. The return on investment for the company will be around 10.75% and the overall profitability of the company in the first year would be around MUR 16.120. Investors The investors for the company would be financing the operations of the company and would be taking control of the various activities of the company. The initial investors for the company would be the equity shareholders of the company and the debt holders of the company who will be giving the initial capital for the firm. It is important to strike a balance between the debt and equity sources and on the other hand, side financial risk for the company should be maintained in a consistent manner. Equity sources would be financing around 60% of the total capital and debt sources would be financing the 40% of the total capital. The interest payment paid by the company would be acting as a tax shield for the company making the effective tax shield for the company lower. Action Plan The action plan for the company would be dependent on the operational plan required for the company. In the initial stage of operation that is the date of implementation from the month of April, the company will be focusing on the increased revenue and quality of foods for the
14BUSINESS PLAN company. Implementation of the various plans of the company will be in the form of plans and procedures developed by the company. Conclusion The financial plan for the company was drawn for the company by drawing up the financial statement for the company for the current financial year. The vision and goal of the company was well defined with the help of the various activities undertaken by the company. On an overall basis the financial viability of the company was assessed thereby showing that the business can earn a substantial return to the stakeholders of the company.
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