Juicy Melodies Business Plan: Financial Projections and Analysis

This document presents a comprehensive business plan for Juicy Melodies, a new venture focusing on the sale of fresh juices and smoothies. The plan includes a detailed financial projection and analysis spanning three years, covering owner investments, borrowed money, and asset acquisition. The financial section incorporates an initial investment of $500,000 from equity investors and a loan of $100,000. The document outlines sales projections, cash flow budgets, income statements, and ratio analysis to assess the company's financial performance. The plan also includes a breakeven analysis for various products and a conclusion that highlights the financial soundness and growth potential of the business. The marketing plan identifies the target customer demographics, unique value proposition, equipment costs, store layout, and logistics. The plan also provides the location of the business and the feasibility of the business.

Running head: SMALL BUSINESS OWNERSHIP
Business Plan
Juicy Melodies
Name of the Student:
Name of the University:
Financial Plan:

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Table of Contents
Financial Projection and Analysis...................................................................................................2
Owners Investment..........................................................................................................................2
Borrowed Money.............................................................................................................................2
Assets and Initial Cash Worksheet..................................................................................................2
Sales Analysis..................................................................................................................................3
Cash Budget.....................................................................................................................................4
Income Statement............................................................................................................................4
Ratio Analysis..................................................................................................................................4
Monthly Breakeven.........................................................................................................................5
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................6

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Financial Projection and Analysis
The financial budgeting has been done for the new venture for a sum of three years in
which various cash inflows and outflows were well accounted for the purpose of analysis and
budgeting process. Analysis for the company by drawing profit & loss statement, cash flow
budget, sales analysis and marketing activity were some of the key portions which were done by
us.
Owners Investment
The initial investment that would be done by the equity investors would be around
$500,000 and the same would be well in the form of equity investment whereby the owners of
the Melody Juice would be providing the same in the form of initial capital. The growth on the
capital would be done on an annual 10% increase.
Borrowed Money
The borrowed amount will be in the form of debt or loan that the Company would be
taking which would be for a sum of $100,000 and the same would be repaid by the company in
the span of three years. The interest rate that would be well attached with the loan would be
around 10% and the same would be well paid by the company on an annual basis.

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Assets and Initial Cash Worksheet
The asset base that company would be purchasing on a lease basis will be Juicer Mixer
that would be costing around $10,000, Blenders $25,000 and Grinders & Crushers that would be
costing around $8,000 for the company. On the other hand, other assets that would be directly
purchased by the company would be Vehicles which would be well purchased by the company.
The equipment’s would be depreciated using straight line method on the other hand, vehicles
would be well depreciated using the reducing balance method. The equipment’s on the other
hand mentioned above would be well taken on a lease for which the company would be well
taking the same for a three year lease which would be well used by us for the purpose of business
operations. The interest rate that would be well charged on the lease amount would be around
10% and in particular the annual cost of lease expenses for each of the assets has been well taken
into consideration.
Sales Analysis
The sales that the company well expects to make for the first year has been well projected
to be around $350,000 in which the sales would be increasing at a rate of 10% for the company.
The increase in the rate has been well captured in the form of market penetration or growth rate
whereby the company would be well increasing the sales for the company.
Monthly cash flow statement for the company has been drawn whereby it was estimated
that in the first four months for first year the total sales would be around 5% of the total sales
estimated for the company. While from the fifth month as summer season arrives and as business
well markets its products and services to the consumers the month sales would be around 10% of

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the total annual sales reported for the company. The cost of goods sold and gross profitability
would be accordingly computed.
Cash Budget
The cash budget has been made for the new venture by well incorporating the various
cash inflows that it would be receiving it in the form of revenues. On the other hand, cash
outflows would be seen in the form of direct operational expenses, variable expenses (cost of
goods sold) and fixed asset expenses. The cash budget well shows that the company would be
having a positive cash balance for the company and the initial cash flows from equity and debt
along with the annual sales would be sufficient for meeting the business daily operations.
Income Statement
The income statement has been well drawn for the company for a sum of three years in
which it was well estimated that the company from the first year onwards only would be
generating a positive profitability. This is primarily due to the larger cash inflows or revenue and
comparatively lower amount of expenses that the company would be incurring. The gross profit
margin for the company is estimated to be around 40% in the three year projected line. Expenses
incurred would be well growing by a rate of 5% this has been well done in order to well account
for inflation and rising costs.
Ratio Analysis
The ratio analysis has been specifically performed for the company using the financial
data calculated whereby the gross profit for the company is around 40%. Net profit margin is

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estimated to be around 4.52% in the first year, the same is expected to grow to 9.76% in the
second year and 10.79% in the third year. Return on equity for the business venture in the other
hand will be well growing at a constant rate that is from 3.16% in the first year to 7.51% in the
second year and 8.31% in the third year. Debt to equity ratio on the other hand would be well
decreasing from 0.36 times to around 0.08 with the decrease in the total liabilities for the
company. The financial performance on an overall basis is seen o be increasing with the
increasing level of profitability.
Monthly Breakeven
The breakeven analysis has been well carried out for the company by well taking the
various products it would be selling and this would be in the form of juice, smoothies and shakes
and the minimum amount of quantities that needs to sold for breakeven or for covering the fixed
costs are as follows:
Breakeven Analysis
Particulars Juice
Smoothi
es
Shak
es
Fixed Costs (Total Fixed Costs*Revenue % Generated)
65,42
0 39,252
26,16
8
Revenue Per Unit $1.00 $1.50 $2.00
Variable Cost Per Unit (Total Revenue Percentage*
COGS) $0.60 $0.90 $1.20
Cars Serviced
1750
00 70000 35000
Breakeven Analysis: Fixed Cost/(Price-Variable
Cost) (In Units)
1635
49 65420
3271
0

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Conclusion
The business plan financial projected for the new business venture goes to well show that
the company would be well having a sound financial performance along with a strong financial
position would be allowing the company to have a better market position and have a sustainable
growth rate. The new business venture is expected to well grow its business operations in the
form of increasing sales and customer base which would be allowing it to achieve better results.
The business based on sound growth opportunity and business viability is considered to be a
great business idea.
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