Business Plan for YS System: MAN302, Stotts College, Semester 3, 2018

This business plan outlines the strategy for YS System, a private limited company focused on providing customized and healthy food and beverage options in Australia. The plan details the company's business structure, products and services (including hot coffee, ice tea, and smoothies), target market (men and women aged 25-45), marketing strategy (social networking), and financial projections, requiring an initial investment of $10 million. It includes a SWOT analysis, competitive analysis, and a sustainability plan, with key personnel in marketing, operations, technical, and finance roles. The plan emphasizes innovation through technology to reduce labor costs and enhance customer service. The document was prepared for the MAN302 course at Stotts College in 2018.

Running head: BUSINESS PLAN
YS SYSTEM
Name of the Student:
Name of the University:
Author’s Note:
YS Business System
Business Address: Surry Hills NSW, Australia.
ABN: 45652124575
ACN: 61422834300

1YS SYSTEM
Table of Contents
Business Plan Summary..................................................................................................................2
The Business....................................................................................................................................3
Business Details...........................................................................................................................3
Registration Details.....................................................................................................................3
Business Premises........................................................................................................................4
Organisation Chart.......................................................................................................................4
Management and Ownership.......................................................................................................5
Key Personnel..............................................................................................................................5
Products and Services..................................................................................................................7
Innovation....................................................................................................................................9
Insurance......................................................................................................................................9
Risk Management........................................................................................................................9
Legal Considerations...................................................................................................................9
Operations....................................................................................................................................9
Sustainability Plan.....................................................................................................................11
The Market.....................................................................................................................................11
Market Research........................................................................................................................11
Market Target............................................................................................................................11
Environmental/Industry Analysis..............................................................................................11
Customers..................................................................................................................................11
SWOT Analysis.........................................................................................................................12
Competitors................................................................................................................................12
Advertising and Sales................................................................................................................12
The Future......................................................................................................................................12

2YS SYSTEM
Vision Statement........................................................................................................................12
Goals/Objectives........................................................................................................................13
Action Plan................................................................................................................................13
The Finances..................................................................................................................................13
Key Objective and Financial Review........................................................................................13
Finance Required.......................................................................................................................13
Financial Assumptions...............................................................................................................13
Start Up Costs............................................................................................................................14
Balance Sheet Forecast..............................................................................................................15
Cash Flow Forecast....................................................................................................................16
Profit and Loss Forecast............................................................................................................17
Breakeven Analysis...................................................................................................................18
Sales Forecast............................................................................................................................18
Reference.......................................................................................................................................19

3YS SYSTEM
Business Plan Summary
YS Business System
Business Address: Surry Hills NSW, Australia.
Business Structure: Private Limited Company.
ABN: 45652124575
ACN: 61422834300
Business Location: Australia
Date Established 1st January 2019.
Business Owner: Tom Kirkman.
Relevant Owner Experience: 4 Years in Food and Beverage Industry.
Products/Services: Health Drinks and Beverage
The Market
Target Market: Men and Women Aged 25-45
Marketing Strategy: Marketing in Social Networking Websites.
The Future
Vision Statement: Expanding the YS Business System into Fast Food Industry
Goals/Objectives: Capturing Substantial Market Share, Long-Term profitability &
Sustainability.
The Finances
An Initial Investment of $10 million for the business with increasing market penetration showing
the revenue of the company increase by 10% on a yearly basis. The return on capital or the
business is forecasted to be around 8% for the company in the initial year going to around 18%
from the second year itself. The sustainability in the level of profitability and revenue of the

4YS SYSTEM
company with the wide range of products and services will be helping the company in the long-
term development and sustainable.
The Business
Business Details
YS Company the All in One automated system bringing technology and food and
beverage industry closer in terms of better innovative customer services and support. Providing
classified and differentiated services to the consumers by reducing the labour cost is the key aim
of the YS System. The company focuses on providing better quality and customised products
like health drinks and other beverages as per the taste and preference of the consumer for
servicing them with the minimum human involvement in the overall system (Laudon & Traver,
2016). The target market for the various products and services of the company is aimed to be the
age group of customers between 25-45 who will be actively using the product and including the
same in their daily food diet. The demand for the products and services will be anticipated by the
increase in the market penetration. The company in the initial stage will be offering various
health drinks in the form of milks shakes and smoothies. Various types of tea and coffees in
various flavours and customized products according to taste, preference and nutritional benefit
can be blended by the customer itself and provided on a customized basis. Bringing technology
and innovation together is the key aim and focus of company (Everything You Need to Know
about Starting a Food Business, 2019).
Registration Details
Business Name: YS Business System
Business Address: Surry Hills NSW, Australia.
Business Structure: Private Limited Company.
ABN: 45652124575
ACN: 61422834300
Business Location: Australia
Date Established 1st January 2019.

5YS SYSTEM
Business Owner: Tom Kirkman.
Relevant Owner Experience: 4 Years in Food and Beverage Industry.
Products/Services: Health Drinks and Beverage
GST: Not Applicable (GST on food or beverages, 2019).
Domain Names: www.ysservices.com
Licences and Permits: Food and Beverage License from NSW (Food Authority Food Safety
Standards, 2019).
Business Premises
Business Location: The operations of the business will be conducted from the registered office
address and the company will be providing the services in various places in Australia. The Office
Building will be situated in the Surry Hills NSW, Australia. The place will be a two-storeyed
building where the operations of the company will be carried on.
Buy/Lease: The Company will purchase the office building so it can use for the operation work
and various other work in the long-term. Spaces in stores, malls and colleges will be taken on a
rental basis for installing the machines. As short as 100 square feet of area will be taken on a
lease basis so that the operations of the business and rendering of services can be carried.
Organisation Chart

6YS SYSTEM
Management and Ownership
Name of Owner: Tom Kirkman
Details of Management and Ownership: The business will be run by the owner of the
company Tom Kirkman who will be taking an active role in the management of the business and
operations of the company. The company will be a Private Limited Company where the owner’s
decision will be taken as the final decision for the various operational and final management
decision about the company.
Experience: 4 Years of Experience in Food and Beverage Industry. Mr Kirkman has handled
operational work in Single O Surry Hills in Australia, Patrice Coffee Brewers and St Ali Coffee
Roasters. Having four years of experience in the food and beverage industry has helped him
gather various market data about the demand and need of the various products and services
according to the taste and preference. The experience gathered by him will be helping the
company in the operational and business services.
Tom Kirkman
(Owner)
Mark Brown
(Marketing and
Sales Manager)
Adam Steve
(Finance
Manager)
Lucy Brown
(Technical
Manager)
Harry David
(Operations
Manager)

7YS SYSTEM
Key Personnel
Current Staff
Job Title Name Expected staff
turnover
Skills or strengths
Marketing/ Sales
Manager]
Mark
Brown
15-18 months MBA in Marketing, Sales, 4 years of
Experience in Handling Marketing,
and Sales work in Starbucks.
Operations
Manager
Harry
David
13-15 months Relevant Qualification and 5 Years of
Experience in Handling various
operational and daily work of
companies.
Technical
Manager
Lucy
Brown
10-15 months Mechanical Engineering and B. Tech
from the University of Melbourne and
2 Years of Work Experience.
Finance Manager Adam
Steve
15-187 months CFA, MBA from University of
Melbourne and 3 Years of Work
Experience.
Required Staff
Job Title Quantity Expected
staff
turnover
Skills necessary Date required
Office
Assistant
Manager
[1] [2-3 years] Qualification in Office
Management and 1 Years of
Experience.
(03/2019)
Office
Receptionist
[1] [1-2 years] Qualification in Operational
work and Minimum 2 Years
of Experience
(04/2019)
Sales
Persons
[3] [2-3 years] Qualification in Sales and
Marketing & Minimum 2
Years of Experience in Sale
[04/2019]

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Recruitment Options: Advertising in Local Papers, Online Advertising of the various available
vacancy for the operations of the company is the key highlighted recruitment option.
Training Programs: Training and development of the current and present staff group with the
various operational work of the company is the key aim for better and sustainable operations of
the company. Continuous research about the market and improvement of the various operational
work for the company in terms of learnings and applying the same will mark the operational
efficiency in company.
Skill Retention Strategies: Skill retention strategies such as checking the work environment and
getting regular feedback from the employees of the company in contrast to the various
operational work of the company will be the key strategy used by the company. Incentive, work
and experienced based bonus will be the key highlights of the skill retention strategy.
Products and Services
Product/Service Description Price
Hot Coffee/Espresso
and Cappuccino
Hot Coffee with Pure Chocolate base having
low content of sugar and cholesterol level.
Customer would be able to customize the
content of chocolate, coffee and sugar as per
the LED Display Board indicating the
contrasting nutritional benefit from the same.
$3.60
Ice Tea, Lemon Tea
and Green Tea
Various flavours of tea along with the content
level and nutritional benefit can be selected.
$2.50
Smoothies Banana Smoothie, Peanut Butter Milk
Smoothie, Butternut Squash Smoothie, Green
Smoothie made from Raw Vegetables like
kale, spinach, Swiss chard, parsley and
broccoli (with the content of vegetable to be
around 40-50%).
$5.50

9YS SYSTEM
Product/Service Description Price
Milk Shakes Strawberry Milk Shake, Vanilla Milk Shake,
Banana Milk Shakes and Almond Butter
Milkshake
$4.50
Market Position: The products and the services of the company will be in the form of fast food
healthy drinks and beverages that will be served to the consumers targeting office goers and
college students. The products will be priced at the competitive level allowing the customers to
avail better food at better prices.
Unique Selling Position: Selling customized and healthy products in Australia and in
accordance with the taste and preference of the people will be the key advantage of the company.
Anticipated Demand: The demand for the beverages and coffees has been at a significant rate
where three out of four people in Australia drinks coffee and other kind of beverage. Around
75% of the population demand for various types of coffee and be beverages (Cafes and Coffee
Shops – Australia Industry Report | IBISWorld, 2019). The increase in the market penetration by
about 10% for the various products and services is the anticipated demand for various products
of companies.
Pricing Strategy: Pricing of the various products and services like various beverages has been
kept in contrast to the industry competitive prices so that the company is able to garner a wide
market share and customer base for the company. On an average, the cost paid by the Australian
for a coffee was around $5.42.

10YS SYSTEM
Figure 1: Price Paid by American for Beverages
(Source: Average price for coffee beverage by type 2017 | Statistic)
Value to Customer: The customer as a daily usage product that is a part of their daily food diet.
Growth Potential: The rising demand for the food and beverage industry in Australia and the
corresponding increase in the market penetration of the various products and services of the
company will be helping the company in gathering substantial market share and revenue growth
of the company.
Innovation
Research and Development: Primary and secondary research about the various types of food
and beverage industry in Australia will be the key strategy of the company in researching about
the taste and preference so the customers. Incorporation of the changing demand and preference
of the customers along with technological advancement and efficiency will act as operational
efficiency for the company.

11YS SYSTEM
Insurance
Business Assets: Insurance of Asset from the Asset Insure Company, which provides various
asset insurance services in Australia, will insure the key assets of the company like Office
Buildings, Equipment’s and Machineries (Specialist Insurance Australia - Crop, Surety, Motor,
building and more, 2019).
Risk Management
Risk Likelihood Impact Strategy
Fire and Theft Risk Likely High Insurance from Asset Insure
Company.
Operational and Business
Risk
Likely Medium Various Management,
operational and Sales
Strategy.
Legal Considerations
Food Safety Law and Regulations, Business Licensing and Food Safety Laws are some of the
key legal considerations that will be required by the YS Business (Thinking of Opening a Coffee
Shop? – LegalVision, 2019).
Operations
Production Process: The process will be technologically based where the machine will be
providing customized products.
Suppliers: Getting raw materials from the direct farms and manufacturing units for the
operations of the work will be done. The online website company “The Source Bulk Foods” will
be the key supplier of the company (Coffee & Tea | Australia | The Source Bulk Foods, 2019).
Key Assets: Office Building, Plant & Machinery and Refrigerators & Utensils.
Equipment Purchase date Purchase
price
Running
cost
Office Building 20/01/2019 $4,500,000 $450,000
Yearly
Equipment’s 20/01/2019 $3,000,000 $900,000
Yearly
Refrigerators and Utensils 20/01/2019 $2,250,000 $450,000
Yearly