Entrepreneurship- Practice and Processes

Read about the entrepreneurship practice and process of Fresh and Fit. The business aimed at making a contribution to the society by assisting the youth to improve their health with the provision of healthy fruit drinks. The product will be made from the local fruits that will be free of additives and artificial preservatives. The business strategy of Fresh and Fit is to sell the premium products at the valued prices. The vision of the Fresh and Fruit is to address the primary concern of individual health. The fruit juice industry has witnessed growth during the year 2016 as it registered a growth of 6% rise in the off-trade worth sales with 5% rise in the off-trade amount of sales.

Running head: ENTREPRENEURSHIP PRACTICE AND PROCESS
Entrepreneurship- Practice and Processes
Name of the Student
Name of the University
Authors Note
Course ID

1ENTREPRENEURSHIP PRACTICE AND PROCESS
Table of Contents
Section A:...................................................................................................................................2
Executive Summary:..................................................................................................................2
Product Description:...................................................................................................................3
Business objectives:...................................................................................................................4
Mission Statement:.....................................................................................................................5
Vision statement:........................................................................................................................5
Company Description: 500........................................................................................................6
Business Overview:....................................................................................................................6
Industry Analysis:......................................................................................................................7
Market Analysis:......................................................................................................................11
Section B:.................................................................................................................................15
Marketing Plan and Sales Strategy:.........................................................................................15
Management Team and Organizational Structure:..................................................................17
Long-Term Development Plan:................................................................................................20
Financial Projections:...............................................................................................................23
Projected Financial Statements:...............................................................................................24
Start-up Cost:...........................................................................................................................24
Sales Projection:.......................................................................................................................25
Cash Flow Projections:............................................................................................................27
Projected Profit and Loss Account:..........................................................................................28

2ENTREPRENEURSHIP PRACTICE AND PROCESS
Projected Statement of Financial Position:..............................................................................29
Reference List:.........................................................................................................................31
Appendix:.................................................................................................................................36
Depreciation Schedule:............................................................................................................36
Ratios:......................................................................................................................................36

3ENTREPRENEURSHIP PRACTICE AND PROCESS
Section A:
Executive Summary:
Fresh and Fit is the vision of the new entrepreneur. The business aimed at making a
contribution to the society by assisting the youth to improve their health with the provision of
healthy fruit drinks. Instantaneously, the business beside making fruit juice will also create
the employment opportunities for the graduates passing out in July. The business will be
using the local fruits from the producers and will be importing fresh cultivated fruits to use
constructively in the business process. Providing smooth juice to the consumers will help
gaining wider market share. The company will be naturally using fresh fruits to manufacture
juices and will be looking forward to expand its operations in order to include the distribution
among stores within the entire stores. Owner funding and internally derived cash flow will
enable the business in future expansion. Additionally, the company will be securing a short
term loan with the help of bank in order to fund the business operations. The sales projection
for the three years will be based on the current market demand with target customer base in
Malaysian market. All the business strategies that are developed will be ranked in respect of
the net present value.

4ENTREPRENEURSHIP PRACTICE AND PROCESS
Product Description:
While there is lunch program available in all the government school several students
do not makes the use of food provided to them. The school food menu is restricted to
sandwiches which includes meat products. Additionally, it is noticed that most the students
turn to vendor that come to school premises to provide fried food. These vendors provide
school students with the fried food, soda and candy though children enjoy having processed
foods but these foods contribute to the obesity.
Findings from the Health Promotion unit of Ministry of Health have expressed their
concern regarding the growing number of obesity (Finch 2016). Similarly, the Fresh and Fit
products will be made from the local fruits that will be free of additives and artificial
preservatives. There would be no need of adding preservatives and additional sugar since the
fruits will be containing the natural sugars. Fruits that are available during the particular
season will be harvested and will be processed into the fresh fruits (McKeever 2016). A
portion of the fruits will be used while the remaining portion will be either dried or frozen in
to the deep freezer for use in off season.
Figure 1: Figure reflecting fruit and fruit juices
(Source: As Created by Author)

5ENTREPRENEURSHIP PRACTICE AND PROCESS
Fresh and fruit will be opening its stores for selling the fruit smoothies that will be
made from the combination of numerous fruits and coconut water with ice lollies that will be
made from the two types of fruit bowls. These includes the variety of sliced and diced fruits
and single fruit sliced and diced made from the local fruit.
With growth of business other products will be introduced and wherever necessary the
business will be using the natural sugars;
a. Jams and jellies by making use of the seasonal fruits
b. Chutneys from the mammy apple
c. Gooseberry and golden apple juice
d. Yogurt and ice-cream using local fruits
e. Trail mix that will be made from the locally grown nuts and dry fruit juice
The product will be categorized under the two heads namely under the Relax Fit such as
for those that do yoga and for children that prefer doing stretches. The stress involved in
studying will be released through such drinks (Brinckmann and Kim 2015). On the other
hand, Sporty Fit will be for individuals that join sports team and club that actively
participates in daily life, lawn tennis, table tennis, football and other sports will be the options
of attracting the consumers from each quarter.
Business objectives:
The business strategy of Fresh and Fruit is to sell the premium products at the valued
prices. compared to other local competitors the prices of the product will be set at a relatively
lower level to attract the positive attention from the local consumers (Schaper et al. 2014).
There are excess supply of food and beverage retailers in Malaysia with Fresh and Fit value
pricing strategy would make sure that strong smoothie demand is maintained among the
targeted customers.

6ENTREPRENEURSHIP PRACTICE AND PROCESS
Customers are usually reliant on the quality of fruit juice products. The objective of
Fresh and Fit is to remain committed to the highest standard in order to maintain the
foundation of trust in Fresh and Fit fruit juice. Delivering freshly made juices to the
consumers is depended on the extensive cooperation with mutual reliance among the
suppliers and retailer (Gabler et al. 2017). The objective of the business is to create
innovative product with state of the art manufacturing, quality assurance and industry
expertise for the future success of the business.
Mission Statement:
Fresh and Fit will be having the primary business responsibilities with the local
customers to whom the busyness will be offering delicious and healthy smoothies that would
help in epitomizing the true refreshment. Additionally, the business will be placing emphasis
on the employee satisfaction by proudly creating an environmental friendly environment for
its customers (Ward 2016). Fresh and Fit carries the mission of providing people with the
healthy alternatives to fast foods. The values of Fresh and Fit is dedicated in providing people
of Malaysia with refreshing, one of kind taste is full of taste and juicy boost. With superb
smoothies and determined commitment to customers Fresh and Fit aims in maintaining
higher profitability in order to serve the customers for several years to come.
Vision statement:
The vision of the Fresh and Fruit is to address the primary concern of individual
health. The vision of the company is to serve the customers ranging from all the ages by
making their lives as simple as possible. The company aims to be leading healthy juice
producer in Malaysia with the motto of being synonymous by serving delicious and nutritious
product. Other vision of the Fresh and Fit is to maintain tight control of the cost and

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operations during the expansion. Its vision is to create a strong sale in the metro cities and
establish a wide selling staff.
Company Description:
Business Overview:
Fresh and Fit is a fruit juice producing company that is designed to provide organic
fruit juice at a reasonable price and create a healthy social environment for fit enthusiasts.
The target market for Fresh and Fit will be individual from all age groups. However, will be
specially placing our focus on people that are involved in regular sporting or exercise
activity. Additionally, the business will be placing its emphasis on age group of 10-15 years
that are mostly students studying in schools and university to offer them with essential
nutrients through the help of organic fresh fruit juice (Ross and Byrd 2015). The central
product of the company will be organic fruit juice made from apple, orange, gooseberry,
grapes etc. that will provide the customers with the blend of natural fruits and vegetables. The
juice smoothie recipes will be fine-tuned by the chief juice extractor that would contain the
secret ingredients with no added flavours offering customers with uniquely irresistible fruit
taste. The Fresh and Fit will be requiring constant shipment of natural fruits and vegetables
along with the several better quality fruit juice blenders.
The business is believed to be viable since the data collected from the market survey
within the target market reflects that a large number of individuals ranging from school and
university students to daily joggers and sports indulged individuals enjoy having fruit and
products made from fruit. These potential customers have reflected their eagerness and
willingness to pay such services (Johnson 2014). The business aims to reach out those
customers that are willing to purchase the products of Fresh and Fit. Rather than preaching
the vitality of staying fit the important of staying fit would be pointed out to the customers

8ENTREPRENEURSHIP PRACTICE AND PROCESS
and an encouragement to voluntarily maintain one will be provided. On carefully considering
the market data and the extent of support received it is assumed that the business will be
generating gross of around $80,000 and net profit of around $50,000 on a yearly basis.
Location:
Fresh and Fit has numerous factors to make the business viably successful. Some of
which comprises of the location of the stores and outlets. The Fresh and Fit will be tactically
placed in the close nearness to Kuala Lumpur where there is numerous downtown shopping
district. Other factors that contribute to the location of the store is the further competition,
extent of advertising, strategies of pricing and continuous growth of the city lifestyle (Pakroo
2016). The store of Fresh and Fit will be unique to the Kuala Lumpur market since there are
not many competitors that provide casual communal atmosphere that the proposed business
will be providing to its clients in combination with higher quality fresh fruit juices.
Legal Structure and Organization:
Fresh and Fit will be opened in the form of individual enterprise which in other word
means sole proprietorship. The company will be opened in the name of “Fresh and Fit”. As
the new venture the business will be able circumvent any additional business taxes imposed
on the company given an American citizen were to open the business (Joy 2018). The
organization structure of Fresh and Fit will be having two executives namely the director of
the company and the marketing director.
Industry Analysis:
The fruit juice industry has witnessed growth during the year 2016 as it registered a
growth of 6% rise in the off-trade worth sales with 5% rise in the off-trade amount of sales.
The growth in this industry is primarily attributed to the premium trend, particularly within
the packed bottled of fruit and vegetable juice, carbonated and preservatives drinks. The

9ENTREPRENEURSHIP PRACTICE AND PROCESS
Malaysian industry is characterised by imported and quality brands of bottled water, fruit and
vegetable juiced and carbonated coffee (Schmidt 2015). However, the segments of fruit and
vegetable juice have logged a strong growth rates. For fruit and vegetable juice the group
witnessed a declining volume of sales but increase in the premium imported juice was
witnessed. The new blends of carbonated and transformed brands without the sugar and
preservatives were among the popular promotions, but, the RTD tea and drinks with Asian
speciality represented a declining volume of sales since they are falling out of style.
Figure 2: Figure representing trends of Beverage Consumption
(Source: Saebi and Foss 2015)
Consumer Trends:
During the year 2016, the consumers of Malaysia have regularly purchased the juice
for their family consumption. This represented that they generally preferred larger package of
fruit juices such as 1-litre liquid cartoons and 2 litre gable top cartons. For example the unit
price of the reconstituted 100% juice brands of pulpy mango is MYR 4.50 per litre whereas
the price per unit of peel fresh nectars brand stood 4.30 per litre. Therefore, leading players

10ENTREPRENEURSHIP PRACTICE AND PROCESS
have recognized that the opportunities for creating demand for the fruit juice at the affordable
price (Saebi and Foss 2015). This has resulted majority of fruit juice producers to introduce
various flavours variants in order to seek the attention and appeal of the customers.
The recent industry trends have represented a slowing trend in the Malaysian fruit
juice industry. The latest trends have raised the query of being healthy and trendy. The
increasing amount of customers that their time of being aware and well-versed on the stuff
that goes into their system has increased the demand for the goods and ready to drink juices.
Over the span of last decade, the juice market of Malaysia has improved by 13% in sales
volume by litres (Carayannis, Sindakis and Walter 2015). The recent market survey has
showcased that 47% of the consumers that are interviewed have stated that drinking juice
made them trendy while 49% of the consumers said they loved drinking juice since it enabled
them to share the goodness with their friends. Another pool represented that they Malaysians
were choosing their fruit juice based on the taste and quality of the drinks offered.
Over the forecasted time period, the consumers of Malaysia are anticipated to
continue to look for the healthy range of fruit drinks particularly the 100% juice. The primary
reason for this is that 100% juice is that group of products that are regarded as the organic
and does not contains any added artificial flavours. Nevertheless, slower growth is forecasted
over the period since consumers are aware regarding most of the products in the category and
they are prepared to try out most of the fruit juice brands that are available (Christensen,
Bartman and Van Bever 2016). Additionally, consumers have several substitutions to select
from in terms of the freshly made juice from the on-trade channels due to the competitive
prices and flexibility offered in making a combination of various fruit and vegetables. The
freshly made juice are regarded to be healthier than the artificial flavour fruit juice since they
do not contain sugar to make is sweeter and preservatives to preserve the drinks longer.

11ENTREPRENEURSHIP PRACTICE AND PROCESS
Major Players:
Twister fruit and Lottie Beverage are regarded as the major player in the fruit juice
market as they continue with the 23% off trade value share and off trade worth sales of MYR
300,000. Both the producers have the long-standing reputation of quality. Twister fruit is
directly located in the Kuala Lumpur market that serves fresh products to the consumers.
Although Lottie Beverage is located in the interior regions of Kuala Lumpur busy market it is
characterised as the purchase and go kind of store (Taran, Boer and Lindgren 2015).
Understanding and awareness of external business conditions:
Marketing & Promotion:
One of the major outside influences that coincides with the wide market of beverages
is the advertising and promotion. This factor can be both opportunity and threat given that
“Fresh and Fit” markets properly its products to boost high profits. Inside the confines of
Kuala Lumpur, Fresh and Fit should make use of the available means of marketing to attract
the stronger base of consumers comprising the mix of local customers and tourists (Herrera
2015). The profitability of the business rotates around the marketing and promotion as the
external factor of upmost importance.
Social trends:
Another important factor that coincides with the business of “Fresh and Fit” is the
present social and health trends. Consumers have expressed their willingness of purchasing
freshly made fruit juices. The Malaysian government have expressed the vitality of nutrition
through the marketing programs and this essentially turns out to be free promotion for Fresh
and Fit. Local citizens of Malaysia have begun adopting healthy eating pattern (Isard et al.
2017). With growing demand for fresh nutrients Fresh and Fit will offer its potential

12ENTREPRENEURSHIP PRACTICE AND PROCESS
consumers with healthy alternatives to sugar content and preservative drinks and the
opportunity to succeed is considerable.
Labour:
Another major external forces are the high cost of labour in Malaysia. Malaysian
minimum wages stand astonishing MYR 7 for starting a business in Malaysia. Additionally, a
levy of 30% tax on all the wages paid considerably increases the business costs.
Weather and seasonal sales:
The most relevant external business forces to “Fresh and Fit” is the Malaysian
weather cycle and additionally the seasonal sales (Kruis, Speklé and Widener 2016). Weather
peaks in summer months whereas the temperature drops marginally during the monsoon
months. In the industry of beverage, dry weather can be regarded as the understandable
constrains to overall sales and demands higher attention from the strategic plans. For
instance, “Durian” is largely found during the peak dry weather seasons of December to
January and June to September.
Market Analysis:
Market demographics:
The market demographic includes
a. Young professionals ranging from the age of 25-45
b. Average income group of MYR 25,000 per month
c. Engaged in athletic activity
d. School and university students
e. Stores in upscale health and natural food outlets

13ENTREPRENEURSHIP PRACTICE AND PROCESS
Market segmentations:
Fresh and Fit has recognized some of the metro locations within the state where it will be
reaching out its target customers
a. Old market squares
b. Tengkat Tong Shin areas
c. Bukit Bintang
d. Lake Gardens
Target market:
With over 1.5 million people living in Kuala Lumpur in Malaysia the target market
for Fresh and Fit will be visibly large. Nevertheless, Fresh and Fit will be requiring a small
market to attain the profitability of business. Fresh fruit juice largely appeals to the younger
and health enthusiastic people. Therefore, Fresh and Fit will target potential customers from
the younger populations (Hussain, Khan and Al-Aomar 2016). Around 125,000 higher
education students are living in Kuala Lumpur therefore, Fresh and Fit juices will be
appealing the young adult generation that are aware of their health as well as the families that
value the health of children.
The figure derived from the market survey indicates the potential customers to target
in the market. This figure also showcases the potential for repeat customers however the rest
of the population could also possess a major contributor of the Fresh and Fit yearly revenues
and must be considered as the portion of target market (Grant 2016). The target market
opportunity would be prioritizing and personalizing the packaging in the direction of
attaining the goal of better standard of living for every customer.
Business competition:

14ENTREPRENEURSHIP PRACTICE AND PROCESS
The business faces direct competition from some of the local competitors that provide
minute maid pulpy drinks with major competition from Twister Fruit since it is located near
to Fresh and Fit business location. The direct competition could be though viewed relatively
medium since there are no other fruit juice producers that provide juice to customers made
from the nature fresh fruits with no added preservatives and sugar content (Dobbs 2014). The
two most known juice bars in Kuala Lumpur are the Twister and Lottie juice makers. Twister
juice bars is one of the local retail juice providers and are recognized more for their custom
juices while Lottie Juice is present from several years and doesn’t seem be expanding its
business anywhere near. Therefore, the business faces minimal threat except for the Twister
Juice for its custom made juices. Fortunately, other retail juice producers located far from the
city of Kuala Lumpur are facing financial issues largely because of the debt management.
This would essentially help in boosting the demand for the Fresh and Fit fruit juice.
The product of Fresh and Fit will be considered unique among the customers as they
would be offered an entirely different fruit juice with 100% made from nature fresh fruits
having no flavours and preservatives. The consumers will be provided with the options of
using the fruit juice in gym and storage facilities for athletic individuals (Kotler 2015).
Additionally, the products would cost the consumer cheaper since there would be relatively
lower amount import duty imposed on fruits as large number of raw materials would be
obtained from the local produce.
Strength and weakness:
The strength and weakness of the business is stated below;
Seasonal Sales: In addition to being, one of the threat and opportunity of business seasonal
sales would turn out be a major strength of the business. With the increase in tourism during
the months of summer Fresh and Fit total revenue could potential increase as well (Barney

15ENTREPRENEURSHIP PRACTICE AND PROCESS
2014). Successful summer sales may easily recover the peak dry weather season grossing due
to lower demands for fruit juices. Maintaining profits entirely during peak dry weather season
sales cannot be considered sufficient strategic plans it is apparent that strategic plans would
be placed to boost the summer sales as well.
Nutritional value: One of the major strength of Fresh and Fit is the rich content of healthy
vitamins in each beverage. Each of the fruit juice package will be containing low fat, calories
with no content of added flavours and preservatives. This would enable the consumes with
healthy on the go alternatives contrasting products which other retailers have failed to
provide so far in this industry. “Fresh and Fit” would be keeping an eye that goes into each of
the smoothie and would strive to preserve the value of nutrition in each of its beverage,
keeping the consumer critiques positive.
Unlimited Variety: Another important strength that would be used by the “Fresh and Fit”
during the business operations is the unlimited variety. “Fresh and Fit” can modify the
composition of fruit juice and flavours to meet the demands of wider range of customers in
order to increase the profits. As evident that the “Fresh and Fit” is yet to be in action, the
strengths that are stated in this segment are planned to be executed when the business is in
action.
Weakness:
Storage Challenges:
One of the weakness of “Fresh and Fit” is the challenge of storage for certain fruits
are out of the season during the better portion of the year. Collecting and storing those
seasonal fruits could be a challenge and at times in terms of transportation as well. In light of
the above weakness, the business is requiring to store enough amount of raw materials to
meet the demands of consumer. The solution to the problems currently lies in maintaining

16ENTREPRENEURSHIP PRACTICE AND PROCESS
two deep freezers to remedy the dilemma of storage (Lasserre 2017). By executing these
activities, the business becomes its own supply source.
Seasonal Sales:
The most pertinent weakness of fruit juice business is the cycle of weather and more
directly the seasonal sales. Weather usually hits the peak time during the summer months
however it substantially falls during the peak dry weather season (Cassidy 2016). In the
industry of beverage, cold weather could be regarded as the obvious deterrent to “Fresh and
Fit” overall sales and would require additional amount of focus from the strategic plans.
Section B:
Marketing Plan and Sales Strategy:
Marketing Plan:
Promotional strategy: Positioning Statement:
The “Fresh and Fit” is deigned to create the relaxed communal atmosphere. The
purpose of the company is to blend the quality of fruit products with the relaxed communal
environment. The administration of “Fresh and Fit” would offer organic smoothies through
experienced juicers acting as the collection of juice recipes. The setting of the “Fresh and Fit”
will be near to university campus and city centre shopping district.
Advertising Campaign:
The “Fresh and Fit” transition in the market is apparently tough. As the unknown
seller the management would be requiring a strong campaign of promotion and marketing to
create a strong customer base. As expected the promotion campaign would target the
university students and people engaged in athletic activity through campus, local newspaper
ads and movie theatres that would assist in attracting customers of the target market (Hill,

17ENTREPRENEURSHIP PRACTICE AND PROCESS
Jones and Schilling 2014). The management would publish the advertisement in local
newspaper, posting fliers door to door and highway billboard to make the customer aware of
the brand name.
Sales Strategy:
Competitive Pricing strategy
A vigorous marketing strategy would be applied in order to attract the customers of all
ages ranging from students of school and universities along with customers that are engaged
in athletic activities. The company will be applying the input chain strategy of 10% mark-up
pricing strategy on goods (Arcos 2016). The company will introduce the 20% off on the
regular pricing during the initial month of its operations. Along with this, “Fresh and Fit” will
be co-sponsoring the athletic charitable events to raise the brand name among the customers.
The marketing plan of “Fresh and Fit” is to create a customer loyalty program in the new
markets. Furthermore, “Fresh and Fit” will aim to increase its sales force to stress on the new
market.
The marketing plan of “Fresh and Fit” will comprise of numerous advertising
strategies namely the buy one and get one half-off among the potential customers. The
promotional strategies would be applicable to all the customers since the management
anticipates that “Fresh and Fit” would be the popular destination for dates, hang-outs and
family outings. Another aspects of pricing strategy are the cost of fruit juice which will be
based on the magnitude of juice bottles (Morden2016). The sizes and costs would be ranging

18ENTREPRENEURSHIP PRACTICE AND PROCESS
between 8 MYR to 20 MYR. The management expects to encourage the probable consumers
to increase their orders from small size to medium size with small cost difference between the
small and medium customers.
Theme and Aesthetic Appeal:
The juice hut would be providing a casual atmosphere to its customers through
friendly staff along with the trendy packaging theme to promote the sales of products. Posters
will be placed on the stores outlets highlighting the importance of health with relax
atmosphere. Additionally, quality alleys would be fashioned at the docks, driftwood, images
of beaches and beach theme to attract the customers (Armstrong et al. 2015). Couches, bean
bags along with the indoor hammocks of beach would be contributing the casual environment
and sales promotion strategy of “Fresh and Fit”.
Competitors:
The “Fresh and Fit” would separate itself from the local competing firms by satisfying
the social needs through fruit smoothie desires of local university students by demonstrating
the hours of operations around the lifestyle of the university student. Nevertheless, “Fresh
and Fit” would be capitalizing on the weekends sales during the closing hours for impulsive
and social standard of living for university students (Mendez et al. 2015). On the other hand,
the competitors would be only having the in and out service that would be closing by 10 pm
every night.
Management Team and Organizational Structure:
The owners of “Fresh and Fit” would be presently managing the daily operations of
the company. As evident the management team would be consisting of owners that have
more than 10 years of experience in natural food stores (Song, Koo and Paik 2015). The

19ENTREPRENEURSHIP PRACTICE AND PROCESS
production manager would be responsible for producing the fruit juice and process it to the
stores. There would be sales manager to assist the selling and distribution activities.
Production Supervisor:
On successfully establishing the business the company will be having managers for
specific business levels. The owners and CEO of “Fresh and Fit” would be engaged in the
daily production activities. Though the management would be engaged in production
activities but their involvement would be at minimal as they would be placing emphasis on
overseeing each department and creating bonds with the customers and employees (Sinha and
Verma 2015). Under the supervision of CEO direct supervision would be implemented on the
numerous heads of business departments. Each of the manager would be required to submit
the bi-weekly report on the progress made in their respective areas and any other relevant
matters.
Chief Financial Officer:
On the other hand, the management team would be comprising of the chief financial
officer, that would be recruited based on the experience on accounting and accounting of
books of accounts. The financial officer would be accountable for keeping the track of
financial records with numerous roles of leadership position. The management of “Fresh and
Fit” believes that the chief financial officer leadership and experience with finances would
turn out be big asset to the company (Andrews and Shimp 2017). The financial officer would
assist in budgeting the taxes, ordering level of inventory and assuring that the “Fresh and Fit”
covers the necessary expenditure.
Advertising Director:
The business would be hiring the advertising director that would be responsible for
communicating and advertising the marketing of products. The manage believes that

20ENTREPRENEURSHIP PRACTICE AND PROCESS
knowledge of advertising director would be enable the accountable person to design the
advertisements to attract the customers into the “Fresh and Fit” outlets (Srinivasan and Swink
2015). The advertising director would be advertising the aspects and endorse the numerous
activities and discount offers that would take place at “Fresh and Fit”.
Organizational Structure:
“Fresh and Fit” would be having a matrix organizational structure that would be
accompanying the hybrid mix of several diverse features from the numerous types of
administrative structure. The following feature represents the organizational structure of
“Fresh and Fit” that are as follows;
a. Functional structure
b. Geographic locations
c. Product based division
d. Teams
Functional Structure:
The functional structure of “Fresh and Fit” organizational structure would be referring
to the grouping based functional operations. The company would be having a finance officer,
marketing officer and production supervisor. These heads would be very pronounced at the
top level of “Fresh and Fit” organizational structure (Tjemkes, Vos and Burgers 2017). This
features would be related to the corporate business strategies in the organizational structure of
“Fresh and Fit”. The functional structure feature of “Fresh and Fit” organizational structure
would be having the facilities of top down method of monitoring and control with the
CEO/Owner at the top level of organizational structure.
Geographical Locations:

21ENTREPRENEURSHIP PRACTICE AND PROCESS
“Fresh and Fit” organizational structure would be involving geographical locations of
the stores outlets. The geographical locations of the store outlets will be having the CEO. In
this manner the managers of “Fresh and Fit” would be reporting to the superiors such as store
head (Kim and Lee 2017). The organizational structure of “Fresh and Fit” would be
supporting the managerial support for geographical needs. The CEO would be having higher
degree of flexibility in adjusting the strategies and policies to suit the certain specific needs of
the market situations.
Product-Based Divisions:
“Fresh and Fit” would be using the product based divisions in its organizational
structure. The division would be addressing the product lines. The company will be having
the division for fresh fruit juice and division for outlet serving of juice (Ye and Zhang 2014).
Such feature of organizational structure would enable paving focus on certain product lines.
In such a manner the “Fresh and Fit” would be effectively developing and innovating the
products with the supports from the organizational structure.
Teams:
Teams will be used in different portion of the “Fresh and Fit” organizational structure.
Nevertheless, teams would be most notably visible at the lowest level of organizations. The
“Fresh and Fit” outlets will be having sales teams to deliver and distribute products and
service among the customers (Clerides and Courty 2017). Such feature of “Fresh and Fit”
organizational structure would enable the company to offer effective and efficient service to
consumers.
Long-Term Development Plan:
Business development plan refers to the mixture of several individual tasks that has
the goal of applying and developing the market expansion opportunities inside the association

22ENTREPRENEURSHIP PRACTICE AND PROCESS
(Batra and Vashisht 2017). Bearing the expansion objectives of business, the long term
development plan for “Fresh and Fit” is stated below;
Long term value creation:
For “Fresh and Fit” is not about making principles that would disappear in a matter of
time the company would be engaged in generating appropriate openings for the specific
goodwill in order to retain for a longer period of time. The concept is that business should be
positioned in such a manner that there is a free flow of values for the firm (Kumar and Patra
2017). “Fresh and Fit” looks to stabilize the business development platform by consolidating
the long term value for the company growth.
Sales vs Business Development Strategies:
Business development strategies must not be mixed up with the sales. The procedure
for sales should be based on driving revenue or the derivation of profits (McKay et al. 2015).
The overall intentions of sales are to distribute the items and maintain the profit margin. On
the other hand, the “Fresh and Fit” long term business development strategies involve
identifying and creating a new partnership avenue that would indirectly assist in driving
revenues. The functions of sales are associated with the output, while the business
development procedure is associated with the overall journey (Goetsch and Davis 2014). The
typical business development goals of “Fresh and Fit” is creating a general awareness, market
expansion, brand projection, acquiring new clients etc.
The selling functions on the other hand is to sell the products or service directly to the
end users of customers. Whereas, the long-term business plans of “Fresh and Fit” would be
working through the partners and channels to make sales happen to customers.

23ENTREPRENEURSHIP PRACTICE AND PROCESS
Figure 3: Figure representing Sales and Business Development Strategy
(Source: Leigh and Blakely 2016)
Focussing on the client’s requirements:
The “Fresh and Fit” would not be presenting what they are offering instead they
would be presenting products that is wanted by clients. The company prefers to listen
carefully the requirements of clients and aims to modify their products to match the
requirement of customers which would in return increase the customer rate of satisfaction
(Scott 2015). The “Fresh and Fit” will be customizing the products according to the needs of
the clients. The owners believe that if the customers fail to get the product according their
needs and desire then the chances of doing business with them is minimized.
Main Motto: Customer Satisfaction:
There is no such thing in business that is worse than furious customers. Having a
furious customer not only spoils the relationships with the customers but simultaneously
harms the reputation of the business. The main motto of “Fresh and Fit” is to fix the issues

24ENTREPRENEURSHIP PRACTICE AND PROCESS
health problems faced by the customers as the owners believe that obtaining the customers
applause will help in making an enthralling impression on the customers.
Offering excellent service:
One of the important long term business development goals of “Fresh and Fit” is
providing excellent service to customers. Following the successful influence of product on
customers and getting the business from them the owners would look forward to please the
customers with excellent service. The business would stick with the quality of juices offered
to customers and acting as the guide on teaching the best practice of maintaining good health
(Warren and Jones 2018). Given the business succeeds in making the customers happy the
owners of “Fresh and Fit” might be rewarded with something that is exceptionally good.
Qualitative vs Quantitative Approach:
There are several businesses that entirely place their emphasis on qualitative business
value proposition and pays less attention towards the importance of other business factors.
But this cannot be termed as the unwise idea. As a result of this these business might face the
probability of getting failed. The market is not ready to spend extra amount even though the
customers get the improved user experience and better services. As a result of this the
quantitative aspect of the business increases the probability of success. As the long term
business development plan “Fresh and Fit” would look to be more competitive at the lowest
price which would help in attracting more number of customers. This would in turn help in
maximizing the revenue of the business.

25ENTREPRENEURSHIP PRACTICE AND PROCESS
Financial Projections:
The “Fresh and Fit” will be approaching the bank for financial loan of $75,000 based
on the grounds that making an investment in the health of common citizens in order to
prevent large amount of money being paid out to those that are effected by disease
(Schaltegger and Burritt 2017). A large number of people will be healthier for a longer period
of time since the intake of harmful additives would be reduced that would simultaneously
reduce the health bill.
Statement of Resources Needs:
Funding for the business will be sought from the local banks. During the first month
of operations, it is anticipated that higher percentage of populations would be trying the
“Fresh and Fit” juices. The numbers are anticipated to increase at a slower rate. Sales are
anticipated to be low during the peak dry weather season while in April the season will be
hitting the summer and sales is anticipated to spike during the first quarters of March and
June (Warren and Jones 2018). The summer sales are anticipated to be higher because of the
higher involvement of sporting activities in this month additionally there would be a rise in
harvesting of fruit crops as well. Furthermore, the business is anticipated to realise an annual
profit of around 10-15% with the expenditure is anticipated to increase by 8-10% due to the
rising price of the raw materials.
The money that is acquired for loan will be using to cover the purchase of the
furniture, large freezers, furniture, décor and equipment. Furthermore, the money acquired for
loan would be using to fund the requirement of raw materials procurement. The chief
financial officer and the owners involved in planning is believed to make sufficient use of
initial operations, atmosphere and help in purchasing the business assets.

26ENTREPRENEURSHIP PRACTICE AND PROCESS
Projected Financial Statements:
Start-up Cost:

27ENTREPRENEURSHIP PRACTICE AND PROCESS
Sales Projection:
Gross Margin:
X-Axis Label Sales Gross Margin Percentage
Year 1 $2,00,000 $1,12,000 44%
Year 2 $2,30,000 $1,93,936 16%
Year 3 $2,76,000 $2,25,962 18%

28ENTREPRENEURSHIP PRACTICE AND PROCESS
Year 1 Year 2 Year 3
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$200,000 $230,000
$276,000
$112,000
$193,936 $225,962
Gross Margin
Sales Gross Margin Percentage
Figure 4: Figure representing Gross Margin
(Source: As Created by Author)
Break-Even Analysis:
Breakeven Analysis
Breakeven Sales Value = average fixed cost/% contribution
Revenue Contribution Fixed Cost Profit
52891 26445.5 52891 -26445.5
105782 52891 52891 0
132227.5 66113.75 52891 13222.75
158673 79336.5 52891 26445.5

29ENTREPRENEURSHIP PRACTICE AND PROCESS
40000 60000 80000 100000 120000 140000 160000 180000
-40000
-20000
0
20000
40000
60000
80000
100000
-26445.5
0
13222.75
26445.5
52891 52891 52891 52891
26445.5
52891
66113.75
79336.5
Contribution
Fixed Cost
Profit
Figure 5: Figure Representing Break-even Analysis
(Source: As Created by Author)
Cash Flow Projections:

30ENTREPRENEURSHIP PRACTICE AND PROCESS
Projected Profit and Loss Account:

31ENTREPRENEURSHIP PRACTICE AND PROCESS
Projected Statement of Financial Position:

32ENTREPRENEURSHIP PRACTICE AND PROCESS

33ENTREPRENEURSHIP PRACTICE AND PROCESS
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38ENTREPRENEURSHIP PRACTICE AND PROCESS
Appendix:
Depreciation Schedule:
(3) DEPRECIATION SCHEDULE
Year 0 1 2 3
Fixed Assets
Furniture 12000 12000 12000 12000
Freezers 18000 18000 18000 18000
Equipment’s 22500 22500 22500 22500
Computers 5500 5500 5500 5500
Total book values (i.e. net fixed assets) 0 58,000 58,000 58,000
Annual Depreciation
Furniture’s - 20% Straight Line 1,100 1,100 1,100
Freezers-10% straight line 1,800 1,800 1,800
Equipment’s - 20% reducing balance 4,500 3,600 2,880
Computers-20% reducing balance 1,100 880 704
total annual depreciation 8,500 7,380 6,484
Ratios:
Common Financial Ratios Year 1 Year 2 Year 3
Debt Ratio (Total Liabilities / Total Assets) 0.59 0.56 0.55
Current Ratio (Current Assets / Current Liabilities) 2.08 2.19 2.14
Working Capital (Current Assets - Current
Liabilities) 2,15,695 2,54,964 2,95,755
Assets-to-Equity Ratio (Total Assets / Owner's
Equity) 2.44 2.28 2.20
Debt-to-Equity Ratio (Total Liabilities / Owner's
Equity) 1.44 1.28 1.20

39ENTREPRENEURSHIP PRACTICE AND PROCESS