Business Plan for Organic Food Industry - BM564

This business plan outlines the proposed future business of an organic food industry, including customers, competitors, skills analysis, projected profit and loss accounts, funding sources, resource acquisition plan, and management information system.

BM564
ENTERPRISE AND
ENTREPRENEURSH
IP BUSINESS PLAN

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Proposed Future Business............................................................................................................4
Customers-...................................................................................................................................5
Competitors-................................................................................................................................5
Skills analysis-.............................................................................................................................5
Projected 2-year profit and loss accounts and Proposed Cash flow statements for two years-...6
Findings and evaluation of suitable sources of funding-.............................................................8
Plan to obtain resources-..............................................................................................................8
Organization and the management information system-.............................................................9
Vision of the business idea-.........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
The business plan for the new business mainly helps in defining about the set document in detail
which results in defining to attain the company goals and objectives by introducing the new
business as to attract and influence the consumers and operates in the dynamic business
environment. Most of the key aspects this report includes the competitors, consumers, the
proposed business ideas with the financial arrangement etc.

INTRODUCTION
The business plan is mainly formed for the business to attain the set business goals as by
starting the new business with accommodating and using the new business ideas (Chen, Wang
and Arya, 2022) This report provide detail about introducing the organic products food industry
and helps in analysing the competitors, consumers, skills analysis and the profit and loss
statements with cash flows for the two years as for making the plan for attaining the set business
objectives.
MAIN BODY
Proposed Future Business
With starting the new business as by accommodating with using the ideas for starting the
organic food business industry due to the increase in more health conscious consumers as various
problems being faced while operating in the dynamic business market. As with starting the
business with using the new and preposed idea it results in bearing and handling all the risk
which helps in generating the revenues and the profits by starting the new organic food industry
in the dynamic market (Kovalchuk and Duik, 2020)
With starting this business, it mainly helps in building and encouraging the consumers to
purchase more organic food in nature and moving towards natural and environment friendly
products in nature which helps in preserving the environment and minimises the high risk of the
disease caused which impacts the living standards.
This business ideas mainly helps in being more sustainable in nature as by adding the
innovative ideas for introducing the new products by focusing on the health conscious and those
consumers which ref to adapt more organic food in nature. With using the jungle ingredient
mainly helps in attracting large number of consumers by offering wide range of products
focusing the organic puffed snacks, organic candies, gluten free organic food ad cookies, organic
chyawanprash, organic fruits and juices and the organics beverages.
With this the proposed business idea is very attractive and very innovative in nature.
Thus, this business idea for training the organic food industry is very interesting and unique in
nature which helps in attracting and influencing the consumes to prefer healthier and organic
food in nature.

Customers-
By starting this organic food industry is mainly the B2C businesses, the main consumers
are all the age group individuals.
As by targetting all the groups segments for purchasing the jungle food ingredients products as
by making the organic food products bars, the puffed snacks for the children and youth
individuals.
also serving the gluten free products for the consumes which are more health conditions
in nature including the organic cookies, chyawanprash and the beverages with fruits and juices.
These products and mainly purchased by the ladies and the house wife, also the children and the
youth age individuals, lastly the aged individual which are more health conscious and impacted
with various diseases of health (Barai and Jethy, 2022)
USP of new business includes “An effort towards supplying organics products for
attaining substantiality'
The consumers of the organic business industry mainly are the heath and diet conscious which
helps in ever-increasing their safety by reducing the disease caused by consuming non healthier
and non-organic products in nature.
Competitors-
The man competitors of this company includes the non-organic food industry and the
business Which are supplying non organic products in nature at the low cost and charging the
prices (Rizki and Kaur, 2022) As these competitors mainly incudes the Tesco, Morrisons,
Sainsbury Selling wide range of food and non-food products with limited organic range in the
stores. Thus, the consumers of the company mainly purchase these as for attaining
competitiveness and increased the sales of the organic food business.
Skills analysis-
These are some skills I am having and would be paving the way forward to successfully guide
the business idea-
 Deeper understanding of the market.
 Professional skills with the use of organic products and the way they are being used.
 Good skills with management of finance.
 Understanding of marketing process pertaining to organic products.

Skills needed-
besides the fact that there is already good grip on the skills yet there are some skills are needed in
order to make the business idea foster-
 Good understanding of customer phycology is needed since the organic products are not
normally being used so perceiving customers is an essential thing.
The modern technology which is supposed to be used in order to promote the product is also
supposed to be perceived (Chams-Anturi, Moreno-Luzon and Romano, 2022)
 Legal aspects pertaining to the new business are to be learnt.
Strategy to address the gape in skills-
 To perceive the customer phycology some deeper insights would be nurtured such as
customer phycology and market trends are to be taken into focus.
 For legal understanding will gather professional legal knowledge.
 Technicality of marketing will be improved taking help form the marketing advisors.
Projected 2-year profit and loss accounts and Proposed Cash flow statements for two years-
Projected 2 years’ profit and loss accounts-
Particulars 2023 Total 2024 Total
To salaries
To rent
To advertisement expenses
To purchase of row material
To bank charges
To stationary
To refreshment expenses
To depreciation
Total expenditures for the year
To Sales of food items
To Sales of scrape
To grant from government
Total revenue for the year
75000
100000
75000
185000
20000
22000
10000
22000
775000
50000
35000
509000
860000
75000
165000
55000
255000
20000
35000
10000
17000
1020000
127000
-
632000
1147000

Net Income 351000 515000
Projected cash flow statement for the years 2023 and 2024-
2023 2024
Cash flow form the operational activities
Net operational income
Adjustments pertaining to operational activities
Depreciations on plant
Loss on sale of plant
Change in the CA and CL
Increase in Trade receivables
Decrease in Prepaid expenses
Net Cash provided by the operating activities
Cash flow form the investing activities
Capital expenditures for the year
Net cash spend for investing activities
Cash flow form the financing activities
Proceeds from issuing debt
Dividend payment to stockholders
Net cash flow from finance activities
Net cash increase in the year
Cash at the beginning of the year
cash at the end of the year
350000
22000
-
-4000
15000
383000
-25000
-25000
-
-
-
373000
137000
510000
514000
17000
-
-2000
19000
548000
-24000
-24000
152000
-26000
126000
648000
510000
1158000

BEP analysis-
BEP refers to the process of making calculation of that level of sales where the organization does
not make profit and loss.
This analysis is helpful to decide price of products and organization can make its policy of
production and sales.
Findings and evaluation of suitable sources of funding-
In the market there are number of sources which can be used in order to arrange funds for
the new business but keeping some external and internal market dynamics the best set of such
alternatives has to be picked.
Bootstrapping is getting fame form last couple of years. In this method external funds providers
are kept a side and focus is shifted to only arrangement of funds using internal sources.
For instance- for organic production process some equipment would be needed which will be
arranged in form of second hand tools (Eyinade, Mushunje and Yusuf, 2021)
In the beginning phase of the business funds are to be arranged through debt sources which are
less costly and later on when the business will be performing above BEP then funds will be
arranged form equity source.
Plan to obtain resources-
Both tangible and intangible resources are needed in the business in order to carry out operations
in the most effective manner. With this regard, some practises are to be taken.
Tools such as fan, equipment, machinery to process the items, packaging tool, deliver
instruments etc. will be brought only 50% of the need in the beginning period (Mousavi, et. al.
2021)
After first year, the tangible assets would be brought to the fullest extent. In the business there
will be need of having some intangible resources such as goodwill, patents, etc. with this respect,
the organization would get the patent generated but would not spend anything for buying
goodwill.
Start-up cost-
The start-up cost would be £10,00,000. the segregation is as-
Particulars Amount Total

Legal charges 7500
Registration fees of organic business 5500
Digital marketing 45000
Tangible assets 405000
Intangible assets 45000
Expenses of research 55000
Installation charges of Organic processing
machinery
200000
Traditional marketing expenses 40000
Cash at hands 137000
Total cost 1000000
Organization and the management information system-
The business idea is being seem quite fostering but there is need to have a MIS. MIS refers to eh
system of managing information system in the organization in order to prevent any type of
discrepancy.
There are some tools which can be used to manage the information system. The company will be
using Microsoft Dynamics which is fabricated to support such types of organizations.
With the help of this system data collection, processing, analysis and then reporting actions
would be performed. Microsoft Dynamics 365 is that system which will be used by the
organization (Guerard, Saxena and Gultekin, 2021)
Vision of the business idea-
The vision of this business is to bring innovative practises to the market and also making focus
on providing healthy food items to the customers. At the same time the vision of providing
higher quality organic items has to be perceived (Suciani and Setyawan, 2022)

On the basis of the undertaken vision it can be perceived that the future of this business seems to
be higher since after pandemics now market is highly inclined to buy such products.
CONCLUSION
Form the report above it can be summarized that undertaken business idea is highly lucrative. It
is brining sense of innovations in the market. At the same time, it would be quite healthy and sort
of innovative which will be reverting better outcomes to the organization.

REFERENCES
Chen, S .C .I., Liu, C., Wang, Z. and Arya, F., 2022. Innovative Strategies to Fuel Organic Food
Business Growth: A Qualitative Research. International journal of environmental
research and public health. 19(5). p.2941.
Kovalchuk, S. and Duik, A., 2020. Dynamic processes of organic business. The Scientific
Heritage. (55-6). pp.35-46.
Barai, D. and Jethy, J., 2022. THE IMPACT OF COVID 19 PANDEMIC ON INDIAN
ORGANIC FOODS INDUSTRY AND BUYING BEHAVIOUR OF ORGANIC
FOODS CONSUMERS: GEOGRAPHICALLY IN BHUBANESWAR CITY,
ODISHA. EPRA International Journal of Economics, Business and Management
Studies (EBMS). 9(8). pp.1-12.
Chams-Anturi, O., Moreno-Luzon, M.D. and Romano, P., 2022. The role of formalization and
organizational trust as antecedents of ambidexterity: An investigation on the organic
agro-food industry. BRQ Business Research Quarterly. 25(3). pp.243-264.
Eyinade, G. A., Mushunje, A. and Yusuf, S. F. G., 2021. The willingness to consume organic
food: A review. Food and agricultural immunology. 32(1). pp.78-104.
Guerard, J. B., Saxena, A. and Gultekin, M., 2021. The Annual Operating Statements: The
Income Statement and Cash Flow Statement. In Quantitative Corporate Finance (pp.
53-77). Springer, Cham.
Suciani, T. Y. and Setyawan, S., 2022. ANALYSIS OF CASH FLOW STATEMENT TO
ASSESS THE COMPANY'S FINANCIAL PERFORMANCE AT PT ASTRA
INTERNATIONAL TBK. CASHFLOW: CURRENT ADVANCED RESEARCH ON
SHARIA FINANCE AND ECONOMIC WORLDWIDE. 1(4). pp.1-12.
Rizki, I. H. and Kaur, M., 2022. Analysis Of Statement Of Profit And Loss And Statement Of
Cash Flows On Operating Cash Flow Ratio On Cv Biru Utama. Enrichment: Journal of
Management. 12(2). pp.2398-2403.
Mousavi, M. R., et. al. 2021. ICI and BEP analysis of hyperbolic FRFT based systems for
satellite internet of things. Telecommunication Systems. 76(4). pp.513-523.