Venture Idea and Execution

This report outlines a business plan for a grocery application in Australia named ShopEasy. It integrates different supermarkets on a single platform, allowing customers to shop online and save time. The report includes SWOT and PESTLE analysis, value proposition, marketing and channel strategy, and financial viability of the venture.

Running head: VENTURE IDEA AND EXECUTION
VENTURE IDEA AND EXECUTION
Name of the Student
Name of the University
Author Note

1VENTURE IDEA AND EXECUTION
Table of Contents
Executive Summary.........................................................................................................................3
About the firm..............................................................................................................................3
Mission and Vision......................................................................................................................4
Analysis on possible market gap/opportunity..................................................................................5
SWOT Analysis of the product/service.......................................................................................5
PESTLE of Grocery market Australia.........................................................................................6
Identification of the gap...............................................................................................................9
Developing value proposition of the innovative product or service................................................9
Marketing and channel strategy approach.....................................................................................11
Product.......................................................................................................................................11
Pricing........................................................................................................................................11
Place...........................................................................................................................................12
Promotion..................................................................................................................................12
Channel strategy........................................................................................................................13
Competitive strategy and positioning............................................................................................14
Competitive strategy..................................................................................................................14
Positioning.................................................................................................................................15
Financial viability of the venture using break-even, cash flow, and investment needs.................16
Assumptions..............................................................................................................................16

2VENTURE IDEA AND EXECUTION
Startup capital............................................................................................................................17
Break even Analysis..................................................................................................................20
Cash flow...................................................................................................................................21
References......................................................................................................................................23
Appendices....................................................................................................................................25
Appendix 1: The buying process...............................................................................................25
Appendix 2: The financial statements.......................................................................................25

3VENTURE IDEA AND EXECUTION
Venture idea: About a grocery Application in Australia which is a go-to application for the
different shoppers in the country
Idea title ShopEasy- the go-to solution for the shoppers.
Executive Summary
Introduction
There exist various problems in the society and it is the duty of the entrepreneurs to come
up with ideas which fulfill the gap present in the society. Hence, the business idea outlined in the
report shall outline such a gap and present a plan to fulfill the same. As the business environment
has become competitive, it is crucial that, new innovative ideas are introduced into the scope of
the business in order to ensure long term success. In line with this, it becomes very crucial that a
business plan is outlined which shall assist in understanding the overall requirements of any
business and also assist in seeing to it that, all the goals and objectives of the new venture are
attained in a timely manner. The business idea which will be discussed in the plan can be stated
to be related to the plan of a Grocery application which integrates the various different
supermarkets on to a single platform. The different consumers can enjoy the convenience of
shopping online from the application without having to visit the stores and hence, save time. The
application will be launched in Australia. In the beginning phase, the application will be
available in the metropolitan cities only but in the future after it receives a suitable response from
the different cities then, in such a case, it will expand to the rest of the cities as present in the
metropolitan city as well. The given business plan will focus on discussing the overall way the
business has been designed and additionally focus on the manner in which the different
operations of the business may be carried out successfully. The report aims to outline the way

4VENTURE IDEA AND EXECUTION
the overall operations of the business can be carried out and understand the manner in which any
firm will be able to attain long term success with adequate Financial forecasting, Marketing
agendas and other management programs.
About the firm
The Grocery application will be named: ShopEasy and will be having a considerably
large inventory. The reason why the business plan can be successful in the long run is because, it
will have comparatively lowered middlemen costs because the goods will be sourced directly
from the different manufacturers and as a social initiative, the farmers will be contacted directly
which would then ensure that, they are being able to sell their goods at the right prices and
additionally be able to ensure that they are not being cheated. The application designed will be
available on both the Android as well as the iOS platforms. The economy of the firm has been
performing considerable well and it is with respect to this that, it becomes extremely important
for the new ventures to capture this development and be able to ensure that, ShopEasy is being
able to fulfill the needs of the different customers and see to it that they are not required to utilize
their time in other such shopping sprees and instead shop on great offers and discounts from the
application.
Mission and Vision
The vision of the company can be understood to be to become the number one Grocery
selling application in Australia and additionally the firm also has an aim to become a household
name in Australia which can be made use of by various businesses, professionals, students and
household departments.

5VENTURE IDEA AND EXECUTION
The mission of the firm can be taken to be to provide the best services to the different
customers and ensure that it is being able to upgrade the technology as available in the right
manner so as to ensure that, it is being able to maintain the competitive advantage in the market.
Objectives
The objectives of the firm are as follows:
 To provide services to the customers at all times
 To build a positive brand image
 To provide a satisfactory experience to the different customers
 To earn high revenue
 To ensure that the firm`s application is able to achieve maximum downloads.
Analysis on possible market gap/opportunity
In order to understand whether the particular gap in the market lies and to be able to
identify and related opportunities in the scope of the business, the section will undertake the use
of various tools like the SWOT analysis and the PESTLE analysis which will assist it in
understanding the overall market scenario (Anantadjaya, 2013).
SWOT Analysis of the product/service
As ShopEasy can be primarily understood to be the business dealing in grocery items, the
fruits, and vegetables can be understood to be related items, it is important to understand the
various strengths which related to the overall business. Hence, in this section, the SWOT
analysis of the business will be undertaken which will assist in deciding the manner in which the
firm will be able to ensure long term success (Armstrong et al., 2015). The SWOT analysis will
identify the strengths, weaknesses, opportunities and threats of the business opportunity.
The strengths of the business are as follows:

6VENTURE IDEA AND EXECUTION
1. The brand has to offer a wide variety of goods as well other related items which will ensure that,
the overall customer needs can be fulfilled and satisfied adequately.
2. The firm offers considerable discounts to the different customers and hence, becomes
considerable popular with respect to this.
3. The firm provides considerable convenience to the different individuals as present and helps them
to purchase online at their own convenient time and discounted price offerings.
The weaknesses which are faced by the business, can be taken to be as follows:
 The delivery time may vary and the firm may not be able to provide the delivery in the stipulated
time which may then lead to a mark on the overall brand image of the firm.
 Although the fixed costs as present in the firm can be understood to be limited, however, the
variable costs as present in the firm can be taken to be very high.
 Very often the different customers tend to cancel the order and this leads to issues regarding the
overall accounts and also leads to the wastage of the goods.
The various opportunities which are available for the business can be taken to be as follows:
 The Australian market can be understood to be duopolistic in nature and in relation to this, the
firm can take advantage of the anti-duopolistic laws and ensure long term success.
 Additionally, when Shop Easy finds success in the metropolitan cities then in such a case, it will
be able to expand to the different countries and other cities of Australia.
 The firm can also engage in valued packaging and engage in related cross selling to ensure long
term success.
The different threats faced by the firm are:
 The presence of the big players can be understood to be the biggest threat which is generally
faced by a firm. The presence of the retail giants causes the threat to the organization and its
overall wellbeing.
 The needs of the customer often go in considerable change and in relation to this, the firm needs
to be aware of the changing needs in the right manner.
 The retention of the customers can also be understood to be a threat faced by the firm.
PESTLE of Grocery market Australia
PESTLE Analysis
The pestle analysis can be understood to be a strategic management tool which helps in
analyzing the overall business environment and also provides an analysis of the different forces
which are operating in the external environment of the firm. The PESTLE analysis comprises of

7VENTURE IDEA AND EXECUTION
the political, economic, social, technological, legal and environmental forces which impacts its
operations either positively or negatively. Hence, in this section for the PESTLE has been
conducted for Shop easy in the Australian grocery market.
Political
The political forces can be understood to be the force relating to the government of the
country. The Australian government can be understood a fairly stable government with the
defined set of rules and legislation for the different business organizations. The ease of doing
business in Australia is comparatively easy because of the simple legislations present (Shi &
Zhang, 2014). However in case of the grocery industry, the various governmental regulations
which are set against a duopolistic feature of the market is against the giant retailers and allows
the different new organizations to promote the business. For the operations of Shop easy this can
then be understood to be a beneficial as it helps to encourage their operations due to this
legislation.
Economical
The economic aspects of the forces can be understood to be those forces relating to the
overall economic development of the country and its members. A business can perform well only
when its operations align with economic state of the country in which it is governing. In
Australia the economic power of the different individuals has been increasing and so are the
spending’s which been increasing (Armstrong et al., 2015). Shop easy can take advantage of this
and ensure that it is easily able to target these customers. On the other hand the bargaining power
of the suppliers has also reduced drastically which is the factor which Shop easy can take
advantage of in order to incorporate their overall supply chain management.

8VENTURE IDEA AND EXECUTION
Social
The social aspects comprise of the characteristics of the target market and other related
aspects such as the overall trend in the market. In light of this it can be understood that the issue
of the customers and their changing demands is required to be met with by the Shop easy and
additionally the culture of the people which can be understood to be multi culture also needs to
be addressed (Shi & Zhang, 2014). Hence Shop easy can engage in the stocking of the goods
which belongs to all cultures and is not biased to words the Australian culture only.
Technological
The increased usage of the Internet can be understood to be an advantage with the respect
to which Shop Easy will be able to target the tech savvy customers who are willing to shop
online. As contactless payment facilities have been increasing, the payment was made on the
application can be understood to be used by these individuals who are comfortable with them.
The use of cloud infrastructure can also be made in order to maintain the stock (Pozzi, 2012). As
the technological development is greatly increasing it is important to target customers who are
technologically advanced and on the other hand Shop easy can also be available on the online
platform and hence, the needs and the demands can be met with accordingly.
Legal
There various legislative laws and regulations which can be applicable to shop easy and
these can be understood to be the legal actions of ACCC is against the big supermarkets. Hence
it can be beneficial for Shop easy to conduct the operations.

9VENTURE IDEA AND EXECUTION
Environmental
The environmental aspects are the aspects which need to be considered and in this case
the business would be required to make the use of sustainable products (Armstrong et al., 2015).
For this aspect, Shop easy will be required to ensure that it deals in the use of sustainable
products and stocks eco-friendly products as well as these are the latest trends and when shop
easy will be following this trend it will be able to get more popular with the different customers.

10VENTURE IDEA AND EXECUTION
Identification of the gap
Hence after analyzing the internal strengths, weaknesses opportunities and threats of firm
and examining the external forces which govern in the business environment it could be
understood that the gap which lies in the market is the potential presence of such an application
which will be able to bring all these retailers under one roof. Hence this is Shop easy as an
application will come into the scene whereby it will integrate the different supermarkets such as
Woolworths, IGA, Coles and other Amazon supermarkets (Nilsson et al., 2015). The one
application platform WILL allow the customers to compare and match its products accordingly.
Although these brands have their own separate websites, the different customers often find it
very difficult to compare and purchase accordingly. Hence this application will be go-to
application for the different customers who can simply compare all the products offered by
different supermarkets side-by-side and make choice of the best product. A minimum shopping
limit will be assigned so that each supermarket benefits accordingly.
Developing value proposition of the innovative product or service
The different customers are required to be offered with the goods which have a unique
value proposition in order to ensure that the brand name of the company improves and
additionally the brand or the innovative product or service can appeal to the customers with the
help of its own capabilities (Armstrong et al., 2015). The Shop easy allows the customers to
enjoy a service which is innovative nature. The main unique selling point of the service is that
the application brings several giant grocery retailers and the one local farmers under a single roof
which allows the customers with the convenience of shopping from one place at one point of
time from different retailers.

11VENTURE IDEA AND EXECUTION
The application shall set down different minimum limits for each retailer and in this way
the customer will be the one who benefited the most as they will be able to shop from any
supermarket of their choice without even leaving the house (Warschun et al., 2012). The reason
why this could act as an innovative idea and a valued offering is because of its capability to meet
the needs of the different customers who are very busy and cannot take out time for shopping.
As the economy development of the country has been improving the individual to have
been involved in economic activities which help in increasing the income and hence they will be
able to afford extra pricing but prefer that the goods are delivered at their doorstep (Nilsson et
al., 2015). It is with respect to this that the Shop Easy has aimed to target this increase income
and increased burden by converting this problem into an opportunity for itself and align the
customers’ needs to the demand who will then be able to shop easily for all the household and
personal needs online.
Hence in order to summarize the value proposition has been discussed and he given points can be
examined:
 The main offering of the application is that it inculcates the services of all giant grocery retailers
in Australia.
 The service provides greater discount to different customers who are willing to purchase the
product. This has been done in order to attract the different customers in its initial stage. The
business is being able give to this aspect because of the minimised cost of inventory and related
office expenses.
 The customers can order at any point of time and any time of the day and can choose the delivery
time slots which will help them ensuring that their products gets delivered To the right place and
at the right time.
 The pricing of the product is very affordable in nature due to the low costs carrying operations
and to attract initial loyal customers.
 Moreover the customers are provided with the convenience of choosing from any of the grocery
retailers they are willing to purchase from. In addition to this the organisation will also be in
direct contact with the different farmers, so that they able to engage in some social contribution
and allow the farmers to be a part of the larger economy.

12VENTURE IDEA AND EXECUTION
 Lastly application will initially be available in all the Metropolitan cities Australian later on it
will be expanding to other city’s as per the demand in the initial days.
Marketing and channel strategy approach
The marketing strategy of any organization is extensively crucial because it helps in the
determination of the way in which the marketer with promote its goods and services to the
different customers. With respect to this marketing strategy which will be adopted for the Shop
easy it can be understood through the marketing strategies of the marketing mix (Nilsson et al.,
2015). The marketing mix comprised of four major aspects which help in understanding the
manner in which the firm will provide service to the different customers. Hence in this section
the 4P analysis of Shop Easy and its offerings will be undertaken which shall then assist in
understanding the manner in which the promotional activities will be carried out to attract the
different customers.
Product
The Shop easy can be understood to be offering the different customers with the
inventory of all the stores which are in listed in the application. In addition to this the business
will also be offering a wide range of fruits, vegetables and food grain items to the different
customers. Other items which will be sold by the firm can be understood to be household items,
personal hygiene items and branded food items (Mullins, Walker & Boyd Jr, 2013). In addition
to this, the business idea can be mostly understood to be in the form of a service which will be
present in the different app stores of android as well as iOS applications.
Pricing
The pricing strategy can be understood to be the most integral strategy which has to be
formed by the brand to understand the manner in which the goods with the priced. In this case

13VENTURE IDEA AND EXECUTION
Shop easy will be making use of the price penetration strategy. In this strategy, the firm will be
following a lower pricing policy to the different customers so that they able to gain the trust of
the customers and at the same time engage in a large customer service opportunity. Later on
when the products and the application will become successful with the different customers, then
the prices can be raised (Laudon & Laudon, 2013). The plan is that initially the company will
conduct enquiry and get into the decision with the grocery retailers and convince them to lower
the price in the right offerings to their shop easy.com so that they will be in listed accordingly
and the customers will be willing to purchase online.
Place
The place can be understood to be the area where the products are sold and the channels
of selling as well. For the initial stage of the business it has been decided that the application will
be available on android as well and Ios platform and will be sold in different metropolitan cities
of Australia. The metropolitan cities have been selected initially because these are the places
where the maximum population is present and be involved in some kind of an employment
activity which keeps him busy and hence the use of this application shall help them to fulfil the
grocery needs.
Promotion
The promotion can be understood to be the most essential of the business especially with
respect to any new business organization. The Shop Easy is bring the different retailers under
one umbrella and in relation to this it is crucial for the firm to promote its services in the market
(Kotler, 2013). The various mediums which can be used by the firm can be understood to be the
sales promotion, personal selling, direct marketing and social media marketing are some of the
techniques that the firm can consider. The social media marketing on the most popular marketing

14VENTURE IDEA AND EXECUTION
tactics of the 21st-century and hence it is recommended that the Shop Easy follows the social
media marketing technique will help it gain popularity among the white masses.
Moreover the next advantage of using social media is that the individuals who generally
tend to use social media will be the one who will be inclined to use the mobile application the
firm has to offer in (Jiang, Yang & Jun, 2013) .Using the social media will help the firm
indirectly targeting the right target audience for its products.
In addition to this, the Shop Easy can also hire various celebrities for the public relations
of the firm as it is helpful in building the customer trust which is an important part of any new
business has to start its overall operations.
Channel strategy
The channel strategy can be understood to be the part of the business which assists in it in
following a normal course of operations. The channel strategy which the firm adopts in this case
can be understood to be to be the multi-channel strategy. This means that Shop easy will not be
only be catering to the needs of the different customers by providing them a platform where all
the goods are present but at the same time to also be targeting the different businesses which are
the grocery retailers by providing them with a chance to enlist their products online on this
application. Hence in relation to this, the firm is following the concept of B2C as well as B2B
business operations (Hutt & Speh, 2012). Therefore the marketing of their activities need to be
such that both the parties can be satisfied easily.
In relation to this the business would be required to understand the channel which will be
adopted by them to ensure that, the right mode of selling can be made use of. The primary
channel which will be adopted by the firm can be understood to be the online channel (Chwolka

15VENTURE IDEA AND EXECUTION
& Raith, 2013). This is being stated because the online channel in the form of an application is
being used to attract the different customers and to attract them which with an offer which they
are not being able to refuse as they are the great promotional deals. Hence, with respect to this,
the application will be available in the different parts of Australia but mainly in the metropolitan
city so as to ensure initial success and secondly the channel which has been adopted by the firm
can be understood with online channels. However the company is dealing with real-time grocery
retail stores and hence the product will be delivered by Shop easy executives themselves from
the point of sales to the point of customers. In this way the firm will be able to ensure that the
right product reaches the right customers at the right time (Brigham & Houston, 2013). The
reason why the online domain has been adopted in the industry is because of the fact that it is
comparatively less costly than setting an owned physical store and as it is present in the form of
an application, it helps to bring together the different retail organizations.
Competitive strategy and positioning
Competitive strategy
The competitive strategy can be understood to be a long term strategy which is generally
adopted by the business in order to increase its overall revenues and to combat against the
different competitive forces which lies in the business environment. The porter’s competitive
strategies provides the most popular theories of all times which recommend certain genetic
competitive strategies which can be adopted by the firm in order to deal with the different
customers and generate its operations (Boons & Lüdeke-Freund, 2013). The main competitive
strategy which has been followed by shopping he can be understood to be the focus cost strategy.
In the focus strategy of the firm, the firm focuses on the costs aspects and constitute to serve a
niche market or it focuses to lead the market through cost leadership.

16VENTURE IDEA AND EXECUTION
The Focus strategy is a general strategy, whereby the planning generally tends to focus
on a small segment in the chosen target market. To target a narrow competitive forces present in
the industry, is the main underlying focus. The focus strategy is either the cost focus or
differentiation focus. The Shop easy can be understood to be following the cost focus strategy
whereby the firm will look out for a cost advantage in the selected segment. The Focus helps in
concentrating on the cost behaviour of the different products and the customers in certain
segments and takes advantage of the same.
In the case of the grocery industry, it can be stated that the cost of this lies in the quality
and the value of the goods presented to the different customers and hence, it is crucial that the
goods are valuable because the customers will be willing to pay the cost of the different retailers
if the items are of premium quality (Baden-Fuller & Haefliger, 2013). Hence the company
would be required to ensure that it in stocks all valuable goods which are worth the money as this
will ensure that customer spends on them and in this way, they will be built to ensure that it is
able to combat against all the competitive retailers present in the market and thereby act as a
convenience to the different customers.
Positioning
The positioning is a relevant marketing concept which seeks to ensure that the firm is
able to position it sells in the mindset of the consumers in a manner such that will be influenced
to make purchases from the phone. Hence the position of the brand of the organization in the
eyes of the customers should always be positive in nature. The positioning strategy which has
been adopted by shopping he can be understood to be the way it wants the different customers to
view itself as a go -to solution for any grocery need (Beardwell & Thompson, 2014). It lists all
the major retailing stores and the application will ensure that the customer is simply log onto the

17VENTURE IDEA AND EXECUTION
app and purchased from there. The earnings of the company will be made to the commission
received from the sellers as president. Hence the positioning statement can Understood to be as
follows:
``come to us for one stop grocery solution. ``
It is with this positioning image which the firm wants to feed in the mind of the
customers that it reflects on the fact that the customers would not be required to struggle and
visit the different stores to fulfil the grocery needs but instead just visit the application and
ensure that all the shopping is done at a comparatively attractive price (Best, 2013).
Hence if the promoters and the owners of the business able to follow the strategy is
diligently, they will be able to ensure that the firm is able to make a good positioning and a good
market share for itself in the long run.
Financial viability of the venture using break-even, cash flow, and investment needs
The given section will outline the overall financial viability of the firm. Please note that
the income of the firm has been calculated on the basis of the commission received on each item
sold (Arnold, 2013). The amount is present in the Australian Dollar. No loans have been taken
and hence, the capital involved is related to the owner`s capital only.
Assumptions
1. Year-one revenue expectancy
Store 1 Store 2 Store 3 Store 4
Number of units sold annually 50,000 75,000 100,000 120,000
Average sales price per unit $3.00 $5.00 $7.00 $12.00
Annual revenue per product $150,000 $375,000 $700,000 $1,440,000
Total year 1 revenue $2,665,000

18VENTURE IDEA AND EXECUTION
2. Year 1 cost of goods sold
Store 1 Store 2 Store 3 Store 4
Expected gross margin per product 40.00% 59.00% 45.00% 55.00%
Annual cost of goods sold per product $60,000 $221,250 $315,000 $792,000
Total year 1 cost of goods sold $1,388,250
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment 20%
4. Number of years for straight-line depreciation 5
5. Annual tax rate 30%
6. If long-term debt is being used to finance
operations, enter the total loan value. -
7. Account receivable and payable % 12%
Startup capital
Sources of Capital
Owners' Investment (name & %
ownership)
Your name & % ownership
$
100,000
Other Investor
Other Investor -
Other Investor

19VENTURE IDEA AND EXECUTION
-
Total Investment
$
100,000
Bank Loans
Bank 1
Bank 2 -
Bank 3 -
Bank 4 -
Total Bank Loans
$
-
Other Loans
Source 1
$
-
Source 2 -
Total Other Loans
$
-
Summary Statement
Sources of Capital
Owners' and Other Investments
$
100,000
Bank Loans -
Other Loans -
Total Source of Funds $

20VENTURE IDEA AND EXECUTION
100,000
Startup Expenses
Bldgs / Real Estate
$
49,200
Leasehold Improvements
41,
000
Capital Equipment
46,
250
Location / Admin Expenses
65,
100
Opening Inventory
39,
700
Advertising / Promo Expenses
19,
830
Other Expenses
31,
200
Total Startup Expenses
$
292,280
8% 7%
8%
11%
7%
3%5%
50%
Chart Title
Bldgs / Real Estate
Leasehold Improvements
Capital Equipment
Location / Admin Expenses
Opening Inventory
Advertising / Promo Expenses
Other Expenses
Total Startup Expenses
Figure 1: The startup capital

21VENTURE IDEA AND EXECUTION
(Source: As created by the author)
Break even Analysis
Fixed
Expenses
Fixed Expenses
Bldgs / Real
Estate
$
49,200
Leasehold
Improvements 41,000
Capital
Equipment 46,250
Location /
Admin Expenses 65,100
Opening
Inventory 39,700
Advertising /
Promo Expenses 19,830
Other Expenses 31,200
Total Fixed
Expenses
$
292,280
Variable
Expenses
Inventory or
Materials 20%
Direct labor
(includes payroll
taxes)
12%
Other expenses 20%
Other expenses 10%
Salaries
(includes payroll
taxes)
11%

22VENTURE IDEA AND EXECUTION
Supplies 10%
Total Variable
Expenses 83%
Breakeven Sales
level = $294,726.23 Year 1 Year 2 Year 3 Year 4 Year 5
Net income
(loss)
-
$294,7
26.23
$832,4
26.00
$849,07
4.52
$883,56
9.52
$937,66
8.20
$1,014,
339.11
Cumulative
income
$537,6
99.77
$1,386,
774.29
$2,270,
343.82
$3,208,
012.02
$4,222,
351.13
Positive Cash
Flow? TRUE TRUE TRUE TRUE TRUE
Undiscounted
breakeven year 1 years
Actual break
even period 0.35 years
Cash flow
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income
$832,42
6
$849,07
5
$883,57
0
$937,66
8
$1,014,3
39
$4,517,07
7
Depreciation $27,290 $27,836 $28,382 $28,927 $29,473 $141,908
Accounts receivable ($6,396)
($13,04
8)
($20,35
5)
($28,76
8) $0 ($68,566)
Inventories
($10,66
0)
($21,74
6)
($33,92
4)
($47,94
6) $0
($114,27
7)
Accounts payable $3,332 $6,797 $10,603 $14,986 $0 $35,718
Amortization 0 0 $0 $0 $0 $0
Other liabilities 0 0 $0 $0 $0 $0
Other operating cash
flow items 0 0 $0 $0 $0 $0

23VENTURE IDEA AND EXECUTION
Total operating activities
$845,99
2
$848,91
3
$868,27
5
$904,86
7
$1,043,8
12
$4,511,85
9
$0
Investing activities $0
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 $0
Sale of fixed assets
($356,7
54)
($363,8
89)
($378,6
73)
($401,8
58)
($434,7
17)
($1,935,8
90)
Other investing cash
flow items 0 0 0 0 0 $0
Total investing activities
($356,7
54)
($363,8
89)
($378,6
73)
($401,8
58)
($434,7
17)
($1,935,8
90)
Financing activities
Long-term
debt/financing $0 $0 $0 $0 $0 $0
Preferred stock 0 0 0 0 0 0
Total cash dividends
paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0
Other financing cash
flow items 0 0 0 0 0 0
Total financing activities $0 $0 $0 $0 $0 $0
Cumulative cash flow
$489,23
8
$485,02
4
$489,60
3
$503,00
9
$609,09
6
$2,575,96
9
Beginning cash balance
($192,2
80)
$296,95
8
$781,98
2
$1,271,5
84
$1,774,5
93
Ending cash balance
$296,95
8
$781,98
2
$1,271,5
84
$1,774,5
93
$2,383,6
89

24VENTURE IDEA AND EXECUTION

25VENTURE IDEA AND EXECUTION
References
Anantadjaya, S.P., (2013). Entrepreneurs vs. Business Plans: A study of Practicality and
Usefulness.
Armstrong, G., Kotler, P., Harker, M. & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Arnold, G., (2013). Corporate financial management. Pearson Higher Ed.
Baden-Fuller, C. & Haefliger, S. (2013). Business models and technological innovation. Long
range planning, 46(6), pp.419-426.
Beardwell, J. & Thompson, A. (2014). Human resource management: a contemporary
approach. Pearson Education.
Best, R. (2013). Market-based management. Pearson Higher Ed.
Boons, F. & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-
art and steps towards a research agenda. Journal of Cleaner Production, 45, pp.9-19.
Brigham, E.F. & Houston, J.F. (2013). Fundamentals of financial management. Cengage
Learning.
Chwolka, A. & Raith, M.G. (2013). The value of business planning before start-up—A decision-
theoretical perspective. Journal of Business Venturing, 27(3), pp.385-399.
Hutt, M.D.& Speh, T.W., (2012). Business marketing management: B2B. Cengage Learning.
Jiang, L., Yang, Z. & Jun, M. (2013). Measuring consumer perceptions of online shopping
convenience. Journal of Service Management, 24(2), pp.191-214.

26VENTURE IDEA AND EXECUTION
Kotler, P., (2013). Marketing Management, millenium edition: Custom Edition for University of
Phoenix.
Laudon, K.C. & Laudon, J.P., (2013). Management Information Systems 13e.
Mullins, J., Walker, O.C. & Boyd Jr, H.W. (2013). Marketing management: A strategic
decision-making approach. McGraw-Hill Higher Education.
Nilsson, E., Gärling, T., Marell, A. & Nordvall, A.C. (2015). Who shops groceries where and
how?–the relationship between choice of store format and type of grocery shopping. The
International Review of Retail, Distribution and Consumer Research, 25(1), pp.1-19.
Pozzi, A., (2012). Shopping cost and brand exploration in online grocery. American Economic
Journal: Microeconomics, 4(3), pp.96-120.
Shi, S.W. & Zhang, J., (2014). Usage experience with decision aids and evolution of online
purchase behavior. Marketing Science, 33(6), pp.871-882.
Warschun, M., Albers, S., Delfmann, W. & Müßig, R., (2012). A fresh look at online
grocery. Retrieved July, 3, p.2013.

27VENTURE IDEA AND EXECUTION
Appendices
Appendix 1: The buying process
Source: Kotler, 2013.
Appendix 2: The financial statements
Profit and Loss statement
Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price (revenue) increase - 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation (expense)
increase - 2.00% 4.00% 6.00% 8.00%
Interest rate on ending cash balance 0.50% 0.50% 0.50% 0.50% 0.50%
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue
$2,665,00
0
$2,718,30
0
$2,827,03
2
$2,996,65
4
$3,236,38
6
Cost of goods sold
$1,388,25
0
$1,416,01
5
$1,472,65
6
$1,561,01
5
$1,685,89
6
Gross margin
$1,276,75
0
$1,302,28
5
$1,354,37
6
$1,435,63
9
$1,550,49
0
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue $1,276,75 $1,302,28 $1,354,37 $1,435,63 $1,550,49

28VENTURE IDEA AND EXECUTION
0 5 6 9 0
Operating expenses
Sales and marketing $19,830 $20,227 $21,036 $22,298 $24,082
Payroll and payroll taxes $31,200 $31,824 $33,097 $35,083 $37,889
Depreciation $27,290 $27,836 $28,382 $28,927 $29,473
Maintenance, repair, and overhaul $9,250 $9,435 $9,620 $9,805 $9,990
Total operating expenses $87,570 $89,321 $92,134 $96,113 $101,434
Operating income
$1,189,18
0
$1,212,96
4
$1,262,24
2
$1,339,52
6
$1,449,05
6
Interest expense on long-term debt $0 $0 $0 $0 $0
Operating income before other items
$1,189,18
0
$1,212,96
4
$1,262,24
2
$1,339,52
6
$1,449,05
6
Loss (gain) on sale of assets $0 $0 $0 $0 $0
Other unusual expenses (income) $0 $0 $0 $0 $0
Earnings before taxes
$1,189,18
0
$1,212,96
4
$1,262,24
2
$1,339,52
6
$1,449,05
6
Taxes on income
30
% $356,754 $363,889 $378,673 $401,858 $434,717
Net income (loss) $832,426 $849,075 $883,570 $937,668
$1,014,33
9
Cumulative income $832,426
$1,681,50
1
$2,565,07
0
$3,502,73
8
$4,517,07
7
Startup expenses
Startup Expenses
Buildings / Real Estate
Purchase
$
20,000
Construction 2,200
Remodeling 12,000
Other 15,000
Total Buildings and R / E
$
49,200
Leasehold Improvements
Item 1 $

29VENTURE IDEA AND EXECUTION
3,000
Item 2 23,000
Item 3 12,000
Item 4 3,000
Total L / H Improvements
$
41,000
Capital Equipment List
Furniture
$
12,000
Equipment 3,400
Fixtures 12,400
Machinery 13,400
Other 5,050
Total Capital Equipment
$
46,250
Location and Admin Expenses
Rental
$
12,200
Utility Deposits 34,500
Legal and Accounting Fees 3,200
Prepaid Insurance 200
Pre-opening Salaries 3,000
Other 12,000
Total Location and Admin Expenses
$
65,100
Opening Inventory
Category 1
$
1,200
Category 2 23,000
Category 3 2,300
Category 4 12,000
Category 5 1,200

30VENTURE IDEA AND EXECUTION
Total Inventory
$
39,700
Advertising and Promotional Expenses
Advertising
$
1,200
Signage 2,330
Printing 2,300
Travel & Entertainment 12,000
Other / Additional categories 2,000
Total Adv and Promo expenses
$
19,830
Payroll and payroll taxes
Expense 1
$
1,200
Expense 2 30,000
Total Payroll and payroll taxes
$
31,200
Balance sheet
Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term
investments ($192,280)
$296,95
8
$781,98
2
$1,271,
584
$1,774,
593
$2,383,
689
Accounts receivable $319,800
$326,19
6
$339,24
4
$359,59
8
$388,36
6
$388,3
66
Total inventory $533,000.00
$543,66
0.00
$565,40
6.40
$599,33
0.78
$647,27
7.25
$647,2
77
Prepaid expenses 0 0 0 0 0 $0
Deferred income tax 0 0 0 0 0 $0
Other current assets 0 0 0 0 0 $0
Total current assets $660,520
$1,166,
814
$1,686,
632
$2,230,
514
$2,810,
237
$3,419,
333
Buildings $49,200 $49,200 $49,200 $49,200 $49,200
$49,20
0
Land 0 0 0 0 0 0
Capital improvements
$
41,000 41,000 41,000 41,000 41,000 41,000
Machinery and equipment
$
46,250 46,250 46,250 46,250 46,250 46,250
Less: Accumulated
depreciation expense 0 27,290 55,126 83,507 112,435
141,90
8
Net property/equipment $136,450 $109,16 $81,324 $52,943 $24,015 ($5,45

31VENTURE IDEA AND EXECUTION
0 8)
Goodwill $0 $0 $0 $0 $0 $0
Deferred income tax 0 0 0 0 0 0
Long-term investments 0 0 0 0 0 0
Deposits 0 0 0 0 0 0
Other long-term assets 0 0 0 0 0 0
Total assets $796,970
$1,275,
974
$1,767,
956
$2,283,
456
$2,834,
252
$3,413,
875
Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $166,590
$169,92
2
$176,71
9
$187,32
2
$202,30
8
$202,3
08
Accrued expenses 0 0 0 0 0 0
Notes payable/short-term debt 0 0 0 0 0 0
Capital leases 0 0 0 0 0 0
Other current liabilities
Total current liabilities $166,590
$169,92
2
$176,71
9
$187,32
2
$202,30
8
$202,3
08
Long-term debt from loan
payment calculator - $0 $0 $0 $0 $0
Other long-term debt $0 $0 $0 $0 $0 $0
Total debt $166,590
$169,92
2
$176,71
9
$187,32
2
$202,30
8
$202,3
08
Other liabilities 0 0 0 0 0 0
Total liabilities $166,590
$169,92
2
$176,71
9
$187,32
2
$202,30
8
$202,3
08
Equ
ity Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity (common)
$
100,000
$100,00
0
$100,00
0
$100,00
0
$100,00
0
$100,0
00
Paid-in capital 0 0 0 0 0 0
Preferred equity 0 0 0 0 0 0
Retained earnings 0 0 0 0 0 0
Total equity $100,000
$100,00
0
$100,00
0
$100,00
0
$100,00
0
$100,0
00
Total liabilities and equity $266,590
$269,92
2
$276,71
9
$287,32
2
$302,30
8
$302,3
08