Business Plan for Dusk Distillery

This business plan template is for Dusk Distillery, a distillery producing high-quality rum and gin. The owner, Paul, wants to introduce gin to the market, use large scale distillers, and open cellars to the public. The plan includes financial projections, start-up costs, and development phases. The business is registered as a Pty Ltd Company and has appropriate licenses for producing and selling alcohol. The plan also includes a SWOT analysis and competitor analysis.

- Task 1
Case Study
Ink Gin - a flavoured/infused gin - has curious colour-changing properties. The
distiller - Paul - has firmly believed that it will be a hit from the get-go. He first
came across the pH-sensitive butterfly pea flower in 2011, and began what has now
been years of research and trials to perfect the product. All the while, he had
another product - an agricole-style rum - maturing in barrels and already on the
market. The rum is made from sugar cane from Paul's family farm as well as
surrounding farms near his distillery. The distillery is currently in an old run-down
shed on the farm. The rum has been on the market for a few years and growing in
popularity. Once the gin is ready, soon, Paul will have two excellent products.
Paul's vision for his distillery is to produce of top quality spirits produced organically
from as many locally sourced ingredients as possible. His mission is to provide
consumers with home style recipes that recreate an authentic experience. The
trading hours are Mon-Fri 9-5 for the wholesale liquor production, bottling and
shipping.
Paul really believes in these products and wants help growing the business. He
needs financial backing to do so. The rum is wholesaled to resellers in South East
Queensland and Nthn NSW. Paul is excited by the reception to his quality rum and
he feels positive about the new gin. Now to take the business to the next level!
Not only does he want to introduce this new product, but he wants larger scale
distillery equipment so as to increase production and to stimulate higher demand.
Furthermore, he believes that with a cellar upgrade he could welcome visitors to
the farm and distillery from Tuesdays to Sundays - midday to 5pm.
To help realise these goals, Paul has hired you as a full-time business manager. He
has big plans and needs expert help. As a start, you help him prepare a business
plan which will act not only as an internal guide but will also carefully document
the financial side of the business. To secure the backing of a third party like a
bank, investors, or partners, a well-constructed business plan is essential.
Investors need not only financial information but a "whole package" look at the idea
as well.
You set up your first business meeting with Paul and start by clarifying his mission
and vision for the business as well as short and long term goals. You want
to identify and assess business requirements, objectives, competitors and
Paul's established plans. He tells you that his first short term goal is to
introduce the gin to the market and then to increase production of both the rum
and of the gin. Higher productivity will lead to more products on more shelves and
increased revenue.
After that, and since the products are so unique and the cane farm is in a very
picturesque area, he wants the old shed where the distillery is currently located to
be replaced and to build a restaurant, bar and gift shop so as to welcome visitors.
This dream can be realized if Paul can attract $6M investment dollars in the
meantime.
The timeline for his plan is as follows.
CURENT SITUATION

It's now April so the January February and March figures are in for the rum sales.
They're on track. So far Paul has been able to grow sales by 15% per quarter.
PHASE 1
(April-June)
It's now April and the gin is bottled and ready. There are 30,000 litres of each spirit
in stock - enough for the next 15 months of trading. Now to introduce the gin to
the market. The current rum wholesalers will stock the gin so gin sales are
projected to start at $50,000 for the months of April, May and June and to steadily
increase by 15% per quarter - in line with the rum sales' growth. From this month
on, a business manager is hired at $10,000 per month.
Part of the Phase 1 goal is to gain financial backing so as to purchase and use
bigger distilling systems from July onwards.
PHASE 2 (July) With funding, install a larger scale distillery systems ($350K) and
hire a production assistant who will cost $4000 per month. With the larger scale
distilling systems, the business will be able to increase its production into the
following years, meeting demand as the business grows. In this phase too, the plan
is to build facilities for visitors.
PHASE 3 (October) Open a restaurant, a bar and gift shop. Paul wants to open
the Cellar Doors to the public on October 1st. This will increase retail sales as well
as grow the brand and increase the profit margin. A 1 litre bottle of either spirit
costs $25 to produce and bottle. The wholesale price is $50. This translates to
marking up the wholesale price by 100%. The retail price is almost double the
wholesale - $99. Staff wages for running this side of the business are estimated
thus:- The chef will cost $6000 per month. The total for 4 hospitality staff per
month is estimated at $10,000.
To summarise Paul's goals in productivity and performance terms, the business
is on track to turn over . He believes that wholesale sales revenue $750,000 in rum
sales during the current financial yearcan comfortably be doubled with the
introduction of the gin.
Furthermore, opening the cellar doors to the public, growing the brand, conducting
retail sales from both the distillery and online offer a whole new realm of
possibilities for growing this business. Paul is aiming for a turnover of at least
$2.5M in the next financial year and, once larger distilling systems are in place, he
expects continued growth thereafter.
He has set aside $20,000 to launch the new gin and the same amount for launching
the opening of the cellar doors to the public. He consulted a marketing expert at
one time who suggested that he budget for $2000 per month for ongoing
promotions and advertising for the business from April to the end of the coming
financial year - 15 months.
You make further enquiries about the business.
Its ABN is 012345678.
You recommend that the business register as a Pty Ltd Company. In this way
investor(s) can be a shareholder or even a director. Company registration will also
have some tax and legal benefits as well.
Paul takes your advice and the business's ACN is 987654321.

It is registered for GST (Goods and Services Tax)
It has a registered domain name. www.ginrummy.com
The business is located on a cane farm near the banks of the Tweed River in
Northern NSW.
It has the appropriate licences for producing and selling alcohol.
You enquire about the staff running the business at the moment. You find out the
Paul and his father have covered all areas until now and that in the near future,
Paul's father wishes to retire. You both agree that once you have secured the
financial backing, the business will need more skilled staff. For example, a full-time
marketing manager/brand expert, a supply chain/warehouse manager, an
accounts/admin manager, a production assistant. For Phase 3, when the business
opens up to visitors, a chef, a tour guide as well as restaurant and bar staff will be
needed.
For the purposes of conducting a SWOT analysis, you ask Paul about the
business's
 strengths – what do they do well?
 weaknesses – what could be improved?
 opportunities – what trends could be taken advantage of?
 threats – what the competition does, is the business exposed to any
threats?
He responds by saying that the business has two unique, high quality products.
Also that he has established a few boutique resellers in SE Qld and Nthn NSW who
love the product.
Improvements are needed in the administration and manufacturing areas. The
business is constrained by production quantities at the moment. If it could step up
its production with larger scale distilling systems, it could reach out to big national
wholesalers such as Dan Murphy's, BWS and the like.
As far as opportunities go, he thinks that, with financial backing and a revamped
distillery, that the distillery could become a tourist destination as well. He believes
too that there's a resurgence of interest in both rum and gin. You will research this
to gather some statistics about people's resurgent interest in these two spirits
- Google Trends (Links to an external site.)
There are other gin and rum makers in Australia who make quality products which
are more freely available and which are cheaper. There are other local distillers too
who welcome people on cellar tours.
Having conducted the SWOT analysis, you then hone in
on operational and technical requirements. Paul responds by again saying that
the business needs higher capacity distillery equipment.
You ask Paul about
 Strategic plan - he says that up till now, that's been in his head.
 Operational plan - this will need some work.
 Organisational structure - he has enough money to put the manpower
in place to step things up.

You tell Paul that in preparing a business plan for the Distillery, you need to do
some competitor analysis. You ask him to nominate two competitors and he
says Lord Byron Distillery (Links to an external site.)which has cellar door tours and
also produces gin and rum. The other is and Cape Byron Distillery (Links to an
external site.)which also does tours and produces gin. He's glad you will do a
competitor analysis. He wants to ensure that Husk's Distillery tours are at least
equal to his competitors.
You ask about quality control. Paul responds that as the distiller, he is the quality
controller. He explains that he ensures the quality of his rum by its taste. He says,
you "take a small sip and swoosh it around in your mouth. Is alcohol the first thing
you taste? If so that sharp burn is often indicative of lesser quality. His rum
delivers a complexity immediately: it's sweet, smoky, and super smooth." We
have rules and regulations for aging, final proof. As for the gin, he tells you
that great gins are all about the juniper (main ingredient) being up front – they
need to reflect the place they’re from. He uses unique native ingredients to
produce a distinctive tasting and coloured gin. He's very sure of his products'
quality and that both rum and gin drinkers are going to love it.
INSTRUCTIONS Part (A) Business plan templete
Drawing on what you know of the business from the Case Study (ABOVE)
Dusk Distillery, you now establish a Business Plan for this business.
Please note that a business plan includes financial requirements for the
business. Financial projections are an important part of preparing a business
plan. In the next assignment you are complete The Finances (THE FINANCES
SPREADSHEET IS ATTACHED) spreadsheet to accompany your business
plan.
Recall the development phases that the business owner has envisioned:
Usual operations -rum Introduce gin to market Use large scale distillers open cellars to the public
Your tasks are to complete the Business Plan Template (BELOW)
You may find this Start-up & Capital Costs table below helpful in determining
some of the expenses you are to describe.
START-UP COSTS COST ($) EQUIPMENT/CAPITAL
COSTS
COST ($)
Registrations Resturant, bar and $1,200,000

facilities
Business name $200 Outdoor dining area $780,000
Licences & Permits $3,947 Driveway and
parking area
$68,000
Domain names $100 Start-up capital $500,000
Trademarks/designs/patent $2,000 Plant &equipment $1,450,000
Vehicle registration $3,000 Distillery systems $1,450,000
More… Distillery sheds $1,950,000
Membership fees $500 Bottling equipment $35,000
Accountant fees $4,000 Warehouse fit out $385,000
Solicitor fees $5,500 Vehicles – forklift $11,500
Utilities (Electricity, gas,
water)
$3,700 Safety equipment $1,900
Internet/phone connection $250 Security system $1,890
Computer software $200
Training $2,000
Wages for the next 3
months (Apr, May, June)
$45,000 Office equipment
Stock/raw materials $15,000 Furniture $3,500
Insurance (for next 18
mths)
Reception fit out $3,200
Building & contents $4,500 Computer equipment $2,000
Vehicle $1,500 Computer software $1,500
Public Liability $5,000
Product liability $70,000
Workers’ compensation $7,000
Business assets $40,000
Label printing $1,980
Stationery & office supplies $280
Marketing & advertising $76,000
Total start-up costs $291,657 Total equipment
/capital costs
$6,393,490
Using this template
Before you complete this business plan template and start using it,
consider the following:
Do your research. You will need to make quite a few decisions about your
business including structure, marketing strategies and finances before you
can complete the template. By having the right information to hand you also
can be more accurate in your forecasts and analysis.
Determine who the plan is for. Does it have more than one purpose?
Will it be used internally or will third parties be involved? Deciding the
purpose of the plan can help you target your answers. If third parties are
involved, what are they interested in? Although don’t assume they are just
interested in the finance part of your business. They will be looking for the whole
package.
1. Do not attempt to fill in the template from start to finish. First
decide which sections are relevant for your business and set aside the
sections that don’t apply. You can always go back to the other sections

later.
Use the [italicised text]. The italicised text is there to help guide you by
providing some more detailed questions you may like to answer when preparing
your response. Please note: If a question does not apply to your circumstances it
can be ignored.
Get some help. If you aren’t confident in completing the plan yourself, you can
enlist the help of a professional (i.e. Single Business Service, Business Enterprise
Centre, business adviser, or accountant) to look through your plan and provide
you with advice.
Actual vs. expected figures. Existing businesses can include actual figures in
the plan, but if your business is just starting out and you are using expected
figures for turnover and finances you will need to clearly show that these are
expected figures or estimates.
Write your summary last. Use as few words as possible. You want to get
to the point but not overlook important facts. This is also your opportunity
to sell yourself. But don’t overdo it. You want prospective banks, investors,
partners or wholesalers to be able to quickly read your plan, find it realistic
and be motivated by what they read.
Review. Review. Review. Your business plan is there to make a good
impression. Errors will only detract from your professional image. So ask a
number of impartial people to proofread your final plan.
How to complete this template, please download the business.gov.au Business
Plan guide from www.business.gov.au/business plan.
[Your Name]
[Your Title]
[Business Name]
Contents
Table of Contents
- Task 1...................................................................................................................... 1
INSTRUCTIONS Part (A) Business plan templete........................................................4
Using this template.................................................................................................... 6
Business Plan Summary............................................................................................. 7
The Future............................................................................................................ 7
Vision statement:............................................................................................. 7
Mission statement:.......................................................................................... 7
Goals/objectives:.............................................................................................. 7
Business.................................................................................................................... 7

Business details...................................................................................................... 8
Registration details................................................................................................. 8
Business premises.................................................................................................. 8
Organization chart.................................................................................................. 9
Management & ownership...................................................................................... 9
Key personnel....................................................................................................... 10
Required staff.................................................................................................... 10
Recruitment options......................................................................................... 11
Training programs............................................................................................ 11
Products/services.................................................................................................. 11
Insurance............................................................................................................ 13
Risk management................................................................................................. 13
Legal considerations............................................................................................. 14
Operations............................................................................................................ 14
Production process............................................................................................ 14
Suppliers............................................................................................................... 15
Plant & equipment............................................................................................. 15
Inventory............................................................................................................ 15
The Market............................................................................................................... 17
Market research.................................................................................................... 17
Market targets...................................................................................................... 18
Your customers..................................................................................................... 18
Customer demographics................................................................................... 18
Key customers................................................................................................... 18
Customer management.....................................................................................18
Your competitors.................................................................................................. 19
Competitor details............................................................................................. 19
Advertising & sales............................................................................................... 20
Advertising & promotional strategy...................................................................20
Sales & distribution channels............................................................................20
Action plan........................................................................................................... 21
The Finances............................................................................................................ 21
Key objectives & financial review.........................................................................22
Financial objectives........................................................................................... 22
Expected cash flow............................................................................................... 23
INSTRUCTIONS PART (B) Complete spreadsheet (attached in the email)................23
INSTRUCTION Part –C (Performance review template)............................................24
REFERENCES............................................................................................................ 26
Business Plan Summary
[Please complete this page last]
[Your business summary should be no longer than a page and should focus
on why your business is going to be successful. Your answers below should
briefly summarise your more detailed answers provided throughout the body of this
plan.]
Business plan is concerned with having the significant information about the practices
that will be conducted by organization for launching new product market. It has given
emphasis on launching Gin as new product in market that is helpful in meeting the

requirements of business such as higher profitability & market share. The current
study has involved registration and other business details. There is involvement of
SWOT, competitors analysis which is helpful in offering details. Communication,
advertising, etc strategy ah been involved in report.
The Future
Vision statement:
To produce to quality spirits by involving h local sourced ingredients so that higher
market care can be covered.
Mission statement:
The mission is to offer quality products with home style recipes that formulates an
authentic experience in order to incline its competitive edge by increasing demands for the
products in market.
Goals/objectives:
Short term goal
To introduce the gin in market
To increase the manufacturing of rum and gin so that higher revenue can be derived.
To generate $750,000 sales in rum during the current financial period and by 15% per
quarter.
Long term goal
To build restaurant, bar and gift shop
To get the turnover of $2.5M in the next financial year from both the distillery and online
Raising $6M investment dollars in the particular duration
Business
Business details
Products/services: Manufacturing & selling of Rum and gin (Alcohol with license).
These products have good level of demand in market
Registration details
Business name: Pty Ltd Company
Trading name(s): Pty Ltd Company
Location(s) registered: a cane farm near the banks of the Tweed River in Northern
NSW
Business structure: Ltd Company

ABN: 012345678.
ACN: 987654321.
GST: Yes registeerd
Domain names: www.ginrummy.com
Licences & permits: Licenses for manufacturing and selling alcohol
Business premises
Business location:
businesses is located a cane farm near the banks of Tweed River in Northern NSW and
few boutique resellers in SE Qld and Northern NSW. The main area is Northern NSW and
the business is manufacturing and retailing products and have connects with wholesalers
Buy/lease: it has bought the business premises and the company is looking to build the
restaurant bar and gift shop
Organization chart
The type of organization structure helpful in meeting the customer demand and
complying with industrial regulations so that higher flexible and efficient products with
maintaining quality.

Management & ownership
Names of owners: Paul & his father and other share holders who are owners in the
organization. The main rights are possessed by Paul now as the father is willing to retire.
The management will comprise marketing manager, supply chain & warehouse manager,
production assistant, etc all are the responsibility for the particular department activity by
ensuring that effective functioning through maintaining accountability can become
possible
Details of management & ownership: Paul will give emphasis on running the
business by taking the crucial actions through delegating responsibilities in the
specified formulated organizational structure so that higher quality products can be
offered to customers. her you have a partnership agreement/contract in place?]
Experience: Paul has the good level of experience in offering the quality products through
giving emphasis on efficient liquor producing. , bottling and shipping which is
permitting to earn greater market share .
Key personnel
Required staff
[List your required staff in the table below.]
Job Title Quantity Skills necessary
Administration
management
manager
2 These should have 2 years of experience with
possessing the qualities like higher communication
fluency, ability to handle technical requirements of
firm and setting coordination among all
departments.
Operational
manager
5 All the operational manager should involve crucial
attributes like technical proficiency, product
development, risk analysis, strategic planning,
budget & staff management and effective decision-
making (Ferreras-Garcia, Hernández-Lara and
Serradell-López, 2019).. These can permit giving
emphasis by gaining 3+ years candidates yo meet
organizational requirements.
Deign manager 3 With availability of 1 and more year experience in
formulating product design so convenient so that
customers can get attracted with gaining ability to
use efficiently. skills includes team work,
relationship building and influencing and meeting
standard performance.
Procurement and
logistic manager
(Supply chain )
5 The main purpose is to build good network
channel in market so that offering higher revenue
can be generated. 5 and more years of experience
is required with leadership, analytical, time

management and organizational
Legal account 2 Handling all industrial complications so irrelevant
rise of legal obligation can be avoided. These staff
require to have at least experience of 5 years by
having knowledge of all standards of alcohol sector.
The set of requirements are logical & analytical
rationale, extensive legal research & coherent
client service offering ability.
Marketing
manager and
executives
10 Main staff who is responsible for communicating
with customers so needs to have leadership,
technical, organizational, communication k,
creative, analytical, influencing, decision-making,
etc. these can aid in meeting periodic targets such
as sales conversion rate, etc.
Financial
manager
2 Company have limited amount of funds so financial
managers play crucial role in affecting the growth &
development of all departments. These managers
should comprise problem solving approach,
mathematical & interpersonal skill, meeting
standard area, etc with possessing experience of at
least 3 years.
Selling and
distribution
manager
5 Manger need to comply with requirements like
effective leadership, conductive sales conversion
rate, relationship building, problem solving, after
sales service, with at least knowledge of 1 year
working in specified sector.
Quality control
manager
4 Planning & forecasting, finding lacking areas,
familiar with statistical & numerical analysis,
taking suitable improvement actions, etc. with
possession 2 years of knowledge in same field.
Recruitment options
For gaining the accurate type of the staff as per the organization requirement the
much emphasis will be provided on using both traditional and digital form of adverting. In
the tradition method the advertisement will be published in news paper so that local
talented people can be attracted. For maintaining the diverse working culture the
organization pay attention on publishing information on social media and with job
providing agency. The particular requirement options will help the specified firm to get the
accurate insights to have corrective performance so good pool of candidate can be
attracted. This can provide assistance in receiving perfect kind of employees in firm to
achieve higher quality outcomes. For this purpose of accomplishing organization
requirement the processes of recruitment will be followed such as information regarding
needs of hiring, preparing job description, talent search, screening & short listing,
interviewing, evaluating & offering of employment and conducting induction of new
employee.
Training programs
For meeting the requirements such as mentioned skills, the company is highly
emphasizing on having appropriate recruitment activities so that experienced employees
can obtained. The main purpose behind this is to achieve higher expertise possessing staff
so that no other cost incurring is required. In order to meet the lacking areas, internal
training & development procedure to attain required skills that are needed to perform
effectively in specified department to gain desire level of productivity. The manger will take
the training procedure into the consideration so that less cost with maximum level of output
can be derived. This is helpful in coordinating with the changing requirement of industry
through m optimizing resource sin turn higher performance can be derived.

Products/services
Product/Service Description Price
Rum It is the liquor made via fermenting then
distilling sugarcane m juice. The product is
possessing organic feature which is helpful
in meeting the ability to create greater
demand accomplishing ability.
$53.93
Gin The gin is juniper flavored spirit made by
simply adding natural flavoring to neutral
spirit. This is helpful in meeting the objective
of offering organic products in market to gain
attention of greater customers.
$59.99

Market position:
STP is one of the significant technique which is helpful in gaining the appropriate type of
knowledge for positioning in market. Segmentation aids in evaluating the appropriate basis
for categorizing targeted customer from the total population of market. For selling Gin the
company is focusing on behavioral & playschool graphic basis for attracting those
customers who have objective of getting authentic experience with higher quality. For
targeting these of customer, the business pay attention on having positioning of offering
higher quality with utilization of all organic ingredient that is served as competitive edge
for the enterprise. The positioning conducting is based on creating the opinion in the market
within customers that products offered by the firm will offer the authentic experience which
can allow to meet the objective of consuming such specified alcohol products.
Unique selling position:
there are different kinds of the competitive advantages but one of the significant aspect
that is considered as the crucial unique selling position is offering the significant quality
via utilizing organic products. With respect to this, having the appropriate approach of
giving unique experience to customer which is considered to be crucial point of selling by
the organization. On the basis of this it can be interpreted that product of company will
be succeeded in industry as it has the competitive edge of offering higher quality with
assurance of good experience by complying with all he industrial standard.
Anticipated demand:
From the evaluation it can be interpreted that the prevailing demand in the market
in the current market as increased approx 33% a compared to the previous performance. It
can be specified that in the current time recasting demand for the total population can be
specified as 25000 liters for the 12 months. The inclining trend of the consumption is
indicating that how effectively the objective of gaining higher revenue can become
possible. It can be identified that individual customer can buy more than 50 liters in 6
months which can permit meeting goal of gaining higher profitability & sustainability in
industry.
Pricing strategy
There are different kinds of the pricing strategy which can be taken into consideration for
accomplishing the requirement of having higher profitability. As per the objective of
business to gain the competitiveness on sector the firm is following the approach of cost
plus pricing. It is one of the highly effective pricing approach which provides assistance in
covering the incurred cost by maintaining significant portion of profitability that can be
helpful in operating successful in industry for longer duration.
Value to customer:
Gin is highly demanded in the market specially by women in Australia. It is consumed by
both the men and female which can be taken as luxury kind of product the value of gin
for the targeted audience is high due to its presence of flavored spirit. This can permit
the customers to gain appropriate ability to meet their desire of drinking that makes it
valuable as luxury good.
Growth potential:
From the evaluation it can be interpreted that there is higher level of growth has been
experienced for gin in industry as rising from 7.4 to 9%. On the basis of this, potential
growth can be estimated that it will be profitable for the company. The growth driving
factor is unique flavor which can lead it towards success.
Insurance
Workers compensation:
there is involvement of the woke compensation that comprises wages and most medical

bills j of worker in case of any injury happened to them while functioning in organization.
The compensation has been involved in respect to comply with health & safety measures
of functioning in sector which is helpful in gaining trustworthiness among staff.
Public liability insurance:
It can be assessed that there is involvement public liability insurance in respect to
protect the third party involvement so assurance to their safety can be provided.
Professional indemnity: it is maintained at all levels of working in firm.
Product liability:
The product liability is insurance that covers any legal liabilities to third party
arising out of the consumption of the products sold. The particular business ha given
emphasis on having the product liability so that emeting the industrial standards
along with ensuring that greater safety to consumer can be offered.
Business assets:
Thee company possessing the different kind of the assets that are possessed by the
organization and has insured few such as vehicle and building & contents. It is helpful in
securing the assets of the company to gain greater amount of profitability via reducing
unnecessary cost occurring due to fire or other unforeseen circumstances.
Business revenue:
For ensuring the appropriate level of revenue company has taken action of insurance
for label pricing, stationary & office suppliers and marketing & advertising. This is
helpful in achieving appropriate level of performance to meet greater revenue .
Risk management
[List the potential risks (in order of likelihood) that could impact your business.]
Risk Likelihood Impact Strategy
Economic risk is related with
continuously exchanging the
market that can affect
purchasing power of people
Highly High Keeping significant ability to
evaluate forecasting changes
so that pricing strategy to
coordinate with prevailing
circumstances to have higher
sustainability performance in
industry.
Compliance risk can be
experienced due to
abundance of any law and
regulation which is need to
comply
High High Operating in the specified
sector to offer gin is not
easy it requires form to allow
several rules which can be
effective exerted by having
legal account that can
significantly take cation to
adhere prevailing laws to
mitigate potential impact.
Security and fraud risk Low Medium Having appropriate technical
devices for avoiding fraud &
errors to get significant
results via altering related
people about negative
consequence in case of mal
practice
Financial risk concerned with Medium Medium Diverse finance sourcing

inability to met monetary
requirement and facing bad
debts, etc.
method is helpful in
achieving the significant
ability to meet financial
requirements with low cost
of capital.
Operational risk due to
inability of required supplies
and any other technical
issues which can affect
adversely in meeting market
forces.
Medium High Implementing operational
management by conducting
timely check of devices so
that such occurrence can be
avoided
Reputation risk Low High Proper marketing and
adverting technique allows
building good brand image in
market and ability to create
trustworthiness o that
continuous functioning can
become possible,
Legal considerations
For running business successful it is important for the firm to follow the set of rules
in turn appropriate functioning can be derived. The one of the major law that is
required to be followed by the mentioned organization includes consumer legislation
in which it needs to ensure about the health & safety of consumers. Sharing
information about benefits side effects, etc is important in respect to comply with
same. Employment aw is related with offering appropriate level of wages, significant
working condition, insurance for their safety, appropriate working hours, etc. The
particular business need to sell the spirit in accurate capabilities such as 15, 30 and
60 ML, marked with batch setting, standard packing requirements, etc. Having
compliance with National measurement act 1960 and national Trade Measurement
regulations 2009. These all is helping firm to operate successfully in sector to offer
goods to targeted audience.
Operations
Production process
The manufacturing procedure for producing the gin is involves sourcing the raw
material from suppliers so that process can begin. Operational manager and labors
are involved in manufacturing process of Gin that is assuring that standard quality
with minimum wastage can be done. The other third parties that is involved is quality
checks and procurement & supply chain and administration managers to ensure
that proper integration to meet market forces.
Suppliers
There are different kinds of the suppliers who are involved in organizations

process. The company takes raw material for manufacturing and bottles for
packing of rum & gin so that smooth manufacturing, bottling and selling can
become possible. There is significant credit policy has been formulated by having
diverse range of suppliers so that adequate functioning with avoiding any rise of
conflicts and disputes. It aids in managing the overall performance of the
enterprise that can allow to get competitive edge of coordinating with market
forces.
Plant & equipment
[List your current plant and equipment purchases. These can include vehicles,
computer equipment, phones and fax machines.]
Equipment Purchase date Purchase
price
Running
cost
Distillery systems 20/03/2010 $1,450,000 145000
Distillery sheds 20/03/2010 $1,950,000 195000
Bottling equipment 20/03/2010 $35,000 3500
Warehouse fit out 20/03/2010 $385,000 38500
Vehicles – forklift 20/03/2010 $11,500 1150
Safety equipment 20/03/2010 $1,900 190
Security system 20/03/2010 $1,890 189
Furniture 20/03/2010 $3,500 350
Reception fit out 20/03/2010 $3,200 320
Computer equipment 20/03/2010 $2,000 200
Computer software 20/03/2010 $1,500 150
Inventory
[List your current inventory items in the table below. If you have a substantial inventory,
you may prefer to attach a full inventory list to the back of this business plan.]
Inventory item Unit price Quantity in
stock
Total cost
Wheat, rye and malt
$400
10Kg 4000
Juniper berries $450 5kg 2250
Lemon $4.99 1 kg 4.99
Orange peel $5 2 kg 10
Licorice and angelica root $20 2 kg
Technology (Software):
The set of software that will be required include computer software, Security system, etc
will be needed. For having significant level of selling the particular firm needs website and
Distillery systems for having relevant production and selling processes.
Trading hours: Mon-Fri 9-5 for the wholesale liquor production, bottling and

shipping. The trading peak time are considered o be evening as most of the working
people tend to buy gin at this duration.

Communication channels:
there are different kinds of the communication channel that includes social media
marketing, email, direct, print media and adverting in newspaper, etc these actions
can generate higher revenue.
Payment types accepted:
there is no exchange policy adopted but warranties for 3 months given
Credit policy:
significant clarity and transparency of credit deed among suppliers and customers.
Credit period for suppliers is 10 days. And for customers 12 days. For collecting
payments reminders , discount offering act, etc action adopted.
Warranties & refunds: there is no exchange policy adopted but warranties for 3
months given
Quality control: Six sigma and lean process for maintaining quality to match with standards is
adopted.
Memberships & affiliations: [Is your business a member of any particular industry
association or club? Do you have any affiliations with any other organization?]
Business is member of alcohol industry there is no affiliation with any other
organization
The Market
Market research
From the evaluation it can be conducted that there is higher growth for Gin products
in global market as it is growing at a CAGR of 4.9% for the period of 2021-2028. It
can be specified that company will face continuous growth due to prevailing trend in
Gin market.

Market targets
The sales target for 15 months is 60000 liters which is more than yearly target.
Your customers
Customer demographics
Age group of 40 and over are targeted , both male & female who are having high
income class profile
Key customers
The key customer are people of specified age group with having psychology of
having authentic experience
Customer management
Having feedback mechanism can aid in reviewing lacking areas to take corrective
action for providing higher customer satisfaction.

S.W.O.T. analysis
[List each of your businesses strengths, weaknesses, opportunities or threats in the table below and then outline how you
plan to address each of the weaknesses/threats.]
Strengths Weakness
High traffic location
Good brand Image
Expertise knowledge
good management approach
Good compliance with legal requirement
High cost of supplies
Ineffective technological requirement
Opportunities Threats
build on customer and brand loyalty
Partnership with strong firm
online selling
Cash flow problems
Higher Competition
Your competitors
[How do you rate against your competitors? How can your business improve on what they offer?]
Competitor details
[List at least 3 competitors in the table below.]
Competitor Value to customers (e.g.
benefits)
Strengths Weaknesses

[Competitor name] [Unique value to customers. E.g.
convenience, quality, price or
service?]
[What are your
competitor's main
strengths?]
[What are your competitor's
main weaknesses?]
Lord Byron Distillery Having significant distilling method to
make drink attract customer
Higher market share in industry Expensive pricing
Cape Byron Distillery Good marketing strategy by
specifying spirit to be connected with
region that increases sales
Good quality of product Lack of customer management
Advertising & sales
Advertising & promotional strategy
[What strategies do you have for promoting and advertising your products/services in the next 12 months?]
Planned promotion /advertising type Cost ($) Who is responsible
Social media $6000 Marketing manager
Business based platform advertising $4000 Marketing manager
Email marketing $2000 Marketing manager
News paper adverting $1500 Marketing manager
Sales & distribution channels
Channel type Products/services Advantages Disadvantages
[e.g. Shopfront,
internet, direct mail,
export or wholesale]
[List all the
products/services sold via
this channel]
[What advantages are there
of using this channel for these
products?]
[What challenges do you expect to
face using this channel? How will
you overcome them?]
Shop front Rum and gin Higher customer connection
(Jukova and et.al., 2019)..
Higher cost incurring

Direct mail Rum and gin Greater speed and efficiency Lack of persona touch with clients
Via whole sale Rum and gin Greater reach to customers Commission expenses and no
detailed information about market
Digital platform Rum and gin Less expensiveness and more
market share
Ineffective prediction of results
Action plan
Milestone Date of expected completion Person responsible
Higher quality perform 26/10/2011 Quality manager
Taking feedback from customers 27/1/2011 Marketing manger
Supplier relationship building 28/10/2011 Procurement and supplying manager
Waste management 29/10/2011 Operation manger
The Finances
Key objectives & financial review
Financial objectives
[List your key financial objectives. These can be in the form of sales or profit targets. You could also list your main financial management
goals such as cost reduction targets.]

Start-up cost
[you cover this in the next assignment] (BELOW Task 4.2)
Expected cash flow
[You cover this in the next assignment] (BELOW Task 4.2)
Having completed this business plan go to the beginning of this document and
complete the Business plan summary
INSTRUCTIONS PART (B) Complete spreadsheet
(attached in the email)
Drawing on what you know of the business from the case study (ABOVE)
and the work you have done on the Business Plan, you now establish some
financial calculations for the business.
It's now April. The Jan- Mar quarter of the finances has been completed for you
based on actual figures in The Finances spreadsheet. You are to refer to these to
make projections for the rest of the current financial year (Apr-Jun) as well as
projections for the following financial year. Your task is to aim for a turnover of
$2.5M in the next financial year (July-June). This is achievable with 15% growth
for each quarter.
For Phase 1, when the gin is introduced to the market, Paul expects $50,000 in
sales for each of the months of April, May and June. You are to project an
increase of 15% for each quarter of each liquor thereafter. Paul assures you that
the current distillery equipment can produce and dispatch 60,000 litres over the
next 15 months - aged, bottled and ready to go. Ensure that you do not factor
more than 60,000 litres of alcohol.
For Phase 2, with financial backing and larger scale distilling systems,
productivity is set to increase in future years. As distilling takes time and rum
must be aged, the benefits of larger scale distilling system are out of scope at
this time. You don't have to consider the higher productivity from a larger
distillery plant. Your goal is to achieve funding in the very near future on
projections for the coming financial year. With the introduction of 30,000 litres
of the gin to market as well as 30,000 litres of rum, you should be able to reach
it.
For Phase 3, and again with the funding sought, the cellar doors, gift shop and
restaurant will open on the 1st October. Cash incoming will increase and, with
the extra staff and running costs, so will the cash outgoing. You should make
projections that reflect both.
Complete the second worksheet (Exp Cash Flow) in The Finances spreadsheet
(ATTACHED IN THE EMAIL)
24

 Populate the income from April onwards. Ensure that the Total
Incoming in the Expected Cash Flow worksheet for the 12 months
from July to June (the sum of H12:S12) is close to and at least $2.5M.
This is the target turnover for the financial year (July to June). You
have 60,000 litres of spirits to sell over the next 15 months.
 populate the expenses in the Expected Cash Flowworksheet from
April onwards from what you can gather from the Case Study - Dusk
Distillery, or from your independent research. You can estimate the
outgoings based on provided costs. Ensure that the cash incoming for
the financial year (July to June) is greater than the total outgoing (the
sum of H35:S35).
As you can see from the completed Start-up and Equipment Capital in The
Finances workbook, the business put $500,000 start up capital into the bank and
needs to borrow approximately $6M to implement Phases 2 and 3. If you can
demonstrate that the business will turn over $2.5M in the next financial year,
you have an argument for a $6M investment.
INSTRUCTION Part –C (Performance review
template)
Having completed the Business Plan and the Expected Cash Flows in your
Finances spreadsheet, you should have projected a quarterly increase in
sales of 15% up to the end of the subsequent financial year (June) in order
to meet the desired $2.5M turnover. Having done so, you have completed
the planning stage of the Plan-Do-Check-Act (PDCA) cycle.
Some time has passed. It's now mid-December. You have succeeded in
attracting an investor who has injected $6M into the business. The
distillery systems have been upgraded, there's a restaurant and cellar
tours are run daily. Although you achieved the growth projections for
the April-June and July-September quarters, wholesale sales have not risen
for the last quarter (October to December). They have levelled and only
equalled the July-September quarter. This is worrying.
One issue around the drop in sales is the dispatch and shipping times.
You investigate and find out that goods are not getting dispatched in the
usual timely manner and also that shipping times have not been met by
couriers. These issues have affected sales volumes as the suppliers have
turned to competitors in order to meet the increased demand over the
Christmas period. You also find out that warehouse staff have been
pulled away from their normal duties due to the restaurant opening and
cellar tours.
Download and complete the Performance Review wherein you analyse
performance against planned objectives and you identify, solve and report
on any system failures, product or service failures and variances to the
business plan. With regard to a variance from the business plan, you
should report on the drop in revenue in monetary terms.
25

Performance Review Template
1. Executive Summary
Performance review is crucial in respect to eliminate lacking areas in turn higher effective results can be
derived. The current report has given emphasis on gaining significant information about the lacking areas such
as system, service and variance business plan. The remedy actions has been applied to get higher effective
performance.
2. Identify and describe any failures.
FAILURES DESCRIPTION
System
failures
There is up gradation of the distillery systems but there is lacking of
meeting customer requirement. On the basis of this it can be identified that
there is ineffective performance in manufacturing such as failure of
computer software that is adversely affecting firm.
Product
failures
On the basis of conducted evaluation it can be articulated that there is
successful production of product has been done. There is ineffectiveness
is found in dispatching the products which is hampering the growth &
development of firm. It can b specified that there is no failure in product is
identified
Service
failures
It is unable to reach customer due to lack of efficient supply chain and
appropriate relation with suppliers. This has affected its ability to meet
market forces such as demand and supply which has adversely affected its
service quality.
Variance to
business plan
The variance to business plan identified is ineffective formulation of supply
chain that has affected its revenue generating capacity. The deviation in
relationship building, market reaching, etc factors has been found.
3. Describe how to address the failures. How will you report on the
issues?
FAILURES REMEDY FORMAL OR
INFORMAL
REPORTING
METHOD
Syste
m
failure
s
The remedy action can be taken for having higher
effectiveness in managing the overall computer system
with having technical knowledge possessing people so
that significant results can be offered (Barrow, Barrow,
and Brown, 2018).
Quality checks
( formal)
26

Produc
t
failures
There is no product failure is found for continuous
improvement there should be involvement of regular
variance analysis to meet standards.
Variance analysis
(formal)
Servic
e
failure
s
Effective contract with having clarity of terms
formal)and conditions so that avoiding any conflict.
Having diverse supplier management that can help in
meeting objective of reaching market in effective time.
Relationship building
approach (Formal)
Variance
to
business
plan
To eliminate errors and brings effectiveness in
marketing channel and increasing reach with whole
seller to get better ability to deal with customer
requirements (McKeever, 2018). Conducting market
research to have higher ability to get insights to reach
demand level.
Better market
research (Formal)
REFERENCES
Books and journals
Ferreras-Garcia, R., Hernández-Lara, A. B., & Serradell-López, E. (2019).
Entrepreneurial competences in a higher education business plan
course. Education+ Training.
McKeever, M. P. (2018). How to write a business plan. Nolo.
Barrow, C., Barrow, P., & Brown, R. (2018). The Business Plan Workbook: A Step-
By-Step Guide to Creating and Developing a Successful Business. Kogan Page
Publishers.
Jukova, E. E & et.al., (2019). Planning a new business: typical mistakes of a
business plan in the
service sector. Journal of Environmental Management & Tourism, 10(3 (34)), 441-
447.
27