Analyzing Financial Statements

The assignment presents three sets of financial statements for a business. It details various aspects such as the cost of goods sold, gross profit, expenses (advertising, bank charges, salaries, distribution costs, insurance, rent, telephone), and ultimately calculates the net profit for each scenario. The user is tasked with analyzing these figures to understand the financial performance and trends of the business.

Business Plan
Name:
Course
Professor’s name
University name
City, State
Date of submission
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Executive Summary
This is a business plan iFarm company limited. iFarm , provides individualized yet bespoke
services to individual farmers in Australia to help them in monitoring their herd of cattle’s
when in the farm. It is a device that has even an application to suit the need of each farm. This
is an idea conceived by farmers in need of better monitoring of their farms while they attend
to other matters. It effectively builds a system of accountability and transparency in farms that
have large numbers of animals to feed, and manage. It is the only application with live video
streams and audio as communication mechanisms for ranch owners and farm managers. It is a
new and innovative service that has moved through the design with minimum viable stage and
a lean start ready for the Australian large market.
Page 2

Table of content
Executive Summary...............................................................................................................................2
Table of content......................................................................................................................................3
What’s iFarm App all about?.................................................................................................................4
Mission Statement..............................................................................................................................4
Founder..............................................................................................................................................4
How does iFarm Technology work?...................................................................................................5
iFarms Technology Ethics..................................................................................................................5
Market Feasibility..................................................................................................................................6
Study of the viability of your business...............................................................................................6
Target Analysis..................................................................................................................................7
Objectives of a competitive analysis..................................................................................................8
Techniques for the analysis of the competition..................................................................................8
Make a strategic analysis of the market..............................................................................................8
SWOT analysis...................................................................................................................................9
Human resource feasibility...................................................................................................................10
Key personnel...................................................................................................................................11
Recruitment options.........................................................................................................................12
Training programs............................................................................................................................12
Operational and technical feasibility....................................................................................................13
Production........................................................................................................................................13
Distribution......................................................................................................................................13
Legislation........................................................................................................................................13
Operations........................................................................................................................................13
Financial feasibility..............................................................................................................................14
Profit and loss forecast.....................................................................................................................15
References............................................................................................................................................17
Page 3

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What’s iFarm App all about?
Mission Statement
iFarm technology aims at being a trusted venture that farmers recognise as a unique and reliable
way of hearing and seeing where the animals are and what they are doing in real time within the
farm environment.
Founder
The founder of iFarm is known as Bob Robinson. He conceived the idea after working with
different farm managers who always gave conflicting reports aboutthe animals and the output or
where they were. He has had two fire and hire a lot of farm managers with integrity issues and
therefore decided to invent a farm application tool that monitors his herd. As one of the biggest
ranchers in Northern Australia, Bob keeps both beef and dairy cows in his expansive estate with
more than 50 workers. He wished there was a way to keep in touch with the business managers
while giving instructions on what should be done if a decision need to be done. For example if a
cow falls sick and collapses, as a certified veterinary officer he can instruct the farm managers on
what to do while viewing the proceedings live on the camera(Abrams, n.d.).Bob knew it wasn’t
as good as being there in person, however his invention was the next big thing. Being able to see
his farm animals and see the progress in the day to day running of the business was an actual
possibility. It would just require a camera to be placed somewhere above the ground overlooking
all the farm. It turns on a 360 degrees rotational basis and can be zoomed in and out focusing on
a particular point on the phone.The camera can be located at every corner of the firm and at the
central position on a need be basis(How to Prepare a Business Plan, 2011). The shift in

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perceptions will share information via a created technological database. It is limited to a farm of
minimum 10 cows and can also be used in monitoring tens of thousands of cattle’s on real time
basis.
How does iFarm Technology work?
iFarm works in three steps:
1. Attach a camera on the focal point or the central point of the farm where it will rotate on
a 360 degrees.
2. Upload the iFarm application on your smartphone and enable the use of encrypted data in
transmission and visual/animal identification technology.
3. See and watch what any particular animal after zooming on a particular focus and give
instructions to the farm managers via the application or just a telephone call in real time.
iFarms Technology Ethics
We get the value of animal farm management which is very important in product yield of a farm.
It is extremely important to have an information or a data sharing policy that prohibits the farm
managers to give erroneous information on a particular animal. Animal identification application
is the cutting edge of animal farm technologies and it immediately blurs defining the features for
animals on the farm. The farm owner can control the activities of the animals eg regulations on
feeding and participate in the consent of the service(Pinson, n.d.).

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Data streaming will also enable data retention which is good for the yield production and farm
management and control. As pioneers of the new market, we can contribute to the moral, ethical
and social contribution by the pace created of animal focused technology(Young, 2007).
Market Feasibility
You have a business idea that seems irresistible to you. You plan to launch a new product and
you think that customers will fall at your feet. You have found a great place for your new
establishment and you want it, yes or yes.
For the elaboration of a market study, quantitative, qualitative, observation and documentary
analysis techniques are used. From surveys to trends research in social networks or focus groups.
Study of the viability of your business
If we have one or several business ideas, the business study will help us to choose, discard and
correct. Maybe your idea is good, but give your product a spin to help better meet the needs of
your target. Maybe the place you have chosen is a wonder, but your target is not in that area. Or
maybe your business is not viable. And, in that case, it is better to know it as soon as possible
and dedicate our resources to something else(Barrow, 2016).

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A well-conducted market study will provide us with important information to refine our business
idea in a specific context and adapt our wishes to reality.
Target Analysis
If in the past marketing focused on creating demand for a product, this is a thing of the past. We
must define our product or service according to our target audience, and for that we must know
it. Do not forget that in the current marketing the consumer does not resign himself to being a
mere receiver, he also wants to participate in the creative process and from there arise tools such
as design thinking.
If we sell a product, we must know to whom. Both quantitatively and qualitatively. Not only to
adapt it to your needs. Also to know where that target is, how to reach it and through what
marketing messages or actions.
Within our target we can also find different customer profiles. A correct segmentation of the
market (dividing our target audience into segments) will also help us find niches of consumers
who may be interested in our product(Step-by-step business plan, 2007).

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Objectives of a competitive analysis
The analysis of the competition continues to be an essential part of any market study, despite the
fact that in very innovative businesses, various business experts recommend forgetting about the
competition and focusing above all on the validation of the product by the client(Stutely, 2012).
Techniques for the analysis of the competition
The market studies prepare the company to know what they will find in the market. Launching it
without knowing it previously increases the chances of failing due to lack of structure,
preparation or the set of guidelines that affect the success of a startup(DeThomas, Fox and
Derammelaere, n.d.).
Make a strategic analysis of the market
These studies investigate the market, potential customers, the product and its substitutes in the
most analytical way possible. In this way, we obtain what is known as the SWOT, that is, the
Strengths, Opportunities, Weaknesses and Threats, with a very clear purpose: to take advantage
of the potential of the market and the company and to prepare for the weaknesses of this one
against the competition and the threats presented by the real market(Creating a business plan,
2007).

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SWOT analysis
Strengths Weaknesses
Competitiveness of the company
Positive brand relationship with farmers
Ability to produce as per the farmers
requirement
Can be easily replicated by people since it’s
not patented
Expensive for small scale farmers
Sometimes the application may not be in sync
with the camera

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Opportunities Threats
Brand loyalty with the farmers
Easily identifiable with all ranches
especially in Northern Australia.
Great customer relationship with the
farmers.
Farmers easily recognise the need for this
application in managing of the farm
It will face stiff competition as it’s a new
market
Sometimes intrusive to the need of the farmer.
Some are too private in their farms
It will be hard unless legislated and
implemented by the farm
.
Human resource feasibility
This company is founded by Bob Robinson, he serves as the chairman and also a non executive
director. Lee Mason is the company’s Chief executive officer whose main role is to oversee the
company’s day to day operations and ensure that the company’s goals are met. Ben Williamson
is the company’s technical director and is responsible for the development and monitoring of the
device(Vijg, 2011).
Human resource will be vital if the company and the idea will succeed. Therefore, the board led
by Bob Robinson plans to bring on board the best people in various fields. It is critical that we
have the technical expertise that will be the driving force for developing the ifarm app to ensure

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that farmers subscribe to the idea. As business grows, the number of employees will be increased
to keep up with the demand of the devise and also the maintenance part of it(Wei, 2012).
Key personnel
Job Title Quantity Expected staff
turnover
Skills necessary
App technician 3 3-4 years Relevant qualifications in
App design. At least 2
year’s experience.
Customer
relationship
managers
2 3-4 years Relevant experience in sales
and customer care. At least
5 year’s experience.
Technical
operations
manager
1 3-4 years Relevant technical Apps
and device experience. At
least 5 year’s experience.
Accounts
payable/receiva
ble
2 3 years Relevant qualifications in
accounting. At least 2
year’s experience.

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Job Title Quantity Expected staff
turnover
Skills necessary
Human
resources/
general office
manager
1 2-3 years Relevant qualifications and
experience in HR and office
management.
Recruitment options
We intend to use recruitment agencies to get our employees because this is where there is a wide
pool of personnel who have experience that we need.
Training programs
Training is a key functweintenion of the human resource department. We expect to provide both
internal and external training to provide professional development to our employees on what the
customer needs. Regular evaluation will be carried out to know the needs of the customers and
this is also part of the strategic plan.

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Operational and technical feasibility
Production
As we seek to give our customers the highest quality manufacture of the devices, we plan to do
the development in house and also the monitoring devices will be produced locally. The
resources required for updating and maintaining of the technology will be sourced from partners
and financial institutions.
Distribution
I farm will be the wholesaler taking the product to major stores in the country as well as Agro
vets where farmers can easily access them.
Legislation
The government has always aimed to support farmers by formulating legislations that support
this industry. Therefore, we shall be lobbying different stakeholders in the country including
parliamentarians to formulate laws that support our business. We are commited to providing the
best quality gadgets to our farmers(Creating a business plan, 2007).
Operations
Information sharing will be important so that we can show farmers the best industry standard.
The app will enable farmers to share information on the best way to practice and improve their
trade.

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Financial feasibility
We seek to create a good relationship with all major stores in the country when we roll out this
device in the market. We estimate that by the second year we will be breaking even. Assuming
that we sell 1000 devices to farmers and also proceeds from downloading the app in to the smart
phone, we shall do the following projections(Creating a business plan, 2007).
No. Of devices *cost/unit Total
Cost of production 1000* $20000 $20,000,000
Expected Revenue 1000* $35,000 $35,000,000
To get this company running, the developmental fees will be funded by private equity and also
external sources financing such as banks and venture capitalist. I farm is considering a
combination of both equity and debt in its capital structure.

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Profit and loss forecast
Profit and Loss
Forecast
Year 1 Year 2 Year 3
Sales $35,000,000 $42,000,000 $52,000,000
Less: cost of goods
sold
$20,000,000 $24,000,000 $30,000,000
Gross Profit $,15,000,000 $18,000,000 $22,000,000
Expenses
Advertising and
marketing
$1,000,000 $1,500,000 $1,750,000
Bank charges $25,000 $45,000 $60,000
Salaries $1,250,000 $2,050,000 $3,200,000
Distribution cost $ 800,000 $900,000 $1,100,000
Insurance $500,000 $750,000 $1,200,000
Rent and rates $150,000 $200,000 $250,000
Telephone $35,000 $35,000 $35,000
Total expenses $3,760,000 $5,480,000 $7,595,000

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Net profit $11,240,000 $12,540,000 $14,405,000