Small Business Management - Business Plan for Organic Food Store

This business plan outlines the process of starting an organic food store that caters to the health-conscious segment of the market. It includes market research, strategies, financial documents, and management and personnel details. The plan focuses on sustainability and outlines specific requirements for pest control, ingredients, processing methods, packaging, labeling, storage, and transport. The marketing strategy includes STP framework, 4 P's of marketing, and sales forecast. The plan also includes a SWOT analysis, PESTLE analysis, and milestones.

Small Business Management

Table of Contents
 Executive Summary
 Business Description and Structure
 Market Research and Strategies
 Management and Personnel
 Financial Documents
 References
 Appendix

Executive Summary
 The Organic Food Store is a company that deals in manufacturing and
selling the products that are aimed for serving the needs of health
conscious segment of the market.
 Company sell its product through physical store in London and online
through company’s website and application. Business processes of the
company thrives to be sustainable.

Business Description and Structure
 The Organic Food Store is a
business running with the
objective to help people to
lead a healthy and long life.
 The store sells wide range of
food products that are all
organic. Idea for the business
came from analysing the
increasing trend in the
market for health
consciousness.
Manufacturing Process:
Specific Requirements
Pest Control
Ingredients
Processing Methods
Packaging
Labelling
Storage and Transport

Continued....
 Inventory Management
 Strategic Relationships
 Administrative Issues
 Intellectual Property
 Expenses
 Legal Structure

Market Research and Strategies
Swot Analysis
Strengths
 Distribution network
 Return on Investment
 Social Media
Weaknesses
 Inventory Cost
 Rental Expenses
 Less Profit
Opportunities
 Online Selling
 Interest and Inflation Rates
 Training
Threats
 Competition
 Suppliers
 Taste and Preferences
Market Research:

Continued....
Pestle Analysis
Political Factors
 Regulation
Economic Factors
 Growing Disposable Income
 Increasing Labor Costs
Social Factors
 Health Consciousness
 Dietary Restrictions
Technological Factors
 Automation

Continued...
Marketing Strategy
Segmentation -
Demographics
Targeting – All age
groups
Positioning - Quality
STP Framework 4 P’s of marketing
Product – Organic Product
Price - Economic
Place – Offline & Online
Promotion – Social Media
and Television Advertising

Continued...
 Deadlines
 Advertising
 Public Relations
 Competition

Sales Forecast
Sales Year 1 Year 2 Year 3
customer
age 10 -
20 years 945 963.9 968.72
customer
age 20 -
30 years 5670 5783.4 5812.32
customer
age 30 -
50 years 2835 2891.7 2906.16
Total 9450 9639 9687.2

Milestones
Particular Year
Sales Unit more than
9000 1
30 % Net profit 5
Website Reach 100000 2
Customer satisfaction
improvements 3

Management and Personnel
 Company Executives and Managers
 Risk Management
Potential Consequences
Likelihood
Supply Chain
Disruption
Tainted
Food
Robberies Equipment
Fail
Fire
s
Almost
Certain
Likely
Possible
Unlikely
Rare

Continued...
Risk identified Likelihood Impact Action in Response
Supply Chain
Disruption
Possible Very high The company will have more than two suppliers
so that the risk can be minimized as there will be
no dependency over a single supplier.
Tainted Food Likely High Effective inventory management system of
company will help to mitigate the risk.
Robberies Rare Low For ensuring that no loss will have to be faced by
the company because of theft, it will hire 4
guards for the store. Out of which two will be at
day shift and rest for night shift.
Equipment Fail Almost Certain High Routine check-ups of machinery and equipment.
Fires Unlikely High Fire management devices will be installed.

Financial Documents
Year 1 Year 2 Year 3
Particulars Amount (£) Amount (£) Amount (£) Amount (£) Amount (£) Amount (£)
Sales unit 9450 9639 9687.2
Selling price 90 91.8 92.259
Sales Revenue 850500 884860 893731
Less Cost of Sales 685000 695275 705704
Gross Profit 165500 189585 188027
Gross Profit Margin 19% 21% 21%
Expenses:
Payroll 10500 11130 12243
Sales and Marketing 6400 6784 7462.4
Depreciation 1000 1060 1166
Utilities 1450 1537 1690.7
Insurance 600 636 699.6
Rent 5400 5724 6296.4
Payroll tax 1600 1696 1865.6
Less Total operating expenses 26950 28567 31423.7
Profit before interest and tax 138550 161018 156603
Less Interest 1200 1150 1150
Profit before tax 137350 159868 155453
Less Tax @ 20% 27470 31973.6 31090.6
Net Profit 109880 127895 124362
Profit and Loss Account

Continued...
Particulars Details Year 1 (£) Details Year 2 (£) Details Year 3 (£)
Assets
Long term assets 55000 65000 68000
Less Depreciation 950 54050 1050 63950 1190 66810
Current Assets:
Trade receivables 24650 26850 27850
Inventory 14350 15650 16100
Cash Balance 6550 7850 10520
Total Assets 99600 114300 121280
Liabilities
Current liabilities:
Trade payable 23500 26850 27850
Bank loan 52150 75650 56000 82900 56380 84230
Non-current liabilities
Debts 7350 13520 15200
Equities
Share Capital 16600 17880 21850
Total Equities and
liabilities 99600 114300 121280
Balance Sheet

Continued...
Cash flow Statement
Particulars Details Year 1 (£) Details Year 2 (£) Details Year 3 (£)
Opening cash balance (A) 5000 800500 1584570
Add Cash inflow:
Sales receipt 850500 859005 867595
Purchase of long term assets 65000 65065 65130.1
Total cash inflow (B) 915500 924070 932725
Less Cash outflow
Expenses excluding
depreciation 80000 92000 105800
Bill payments 40000 48000 57600
Total cash outflow (C) 120000 140000 163400
Net Cash flow (D) = (B) - (C) 795500 784070 769325
Closing cash balance (A) + (D) 800500 1584570 2353895

References
 Shah, S. and et.al., 2020. Liposomes: Advancements and innovation in
the manufacturing process. Advanced Drug Delivery Reviews. 154.
pp.102-122.
 Neves, P. and et.al., 2018. Implementing lean tools in the
manufacturing process of trimmings products. Procedia
Manufacturing. 17. pp.696-704.
 Li, H. and et.al., 2020. Three-dimensional large-pore covalent organic
framework with stp topology. Journal of the American Chemical
Society. 142(31). pp.13334-13338.

Appendix Business Model Canvas:
Key
Partners
Key
Activities
Value
Propositions
Customer
Relationships
Customer
Segments
Suppliers – Raw
Materials
Government – Licence
Consumers – Preferring
products over
competitive products
Identifying customer needs
Satisfying customer needs
Helping
customer to
lead healthy
life
Customer expect to
get their needs
satisfied and
reasonable prices
Customer of all age
groups concerned with
their health
Key Resources
Channels
Raw materials
Equipment
Machinery
Physical Stores
Online website
Company’s App
Cost Structure Revenue Streams
Cost Driven
Fixed Cost (Machinery, equipment, rent, insurance,
furniture) Variable costs (Materials Labour)
Loss – leader pricing