Financial Management: Business Plan for Fizzed-up Beverages Pvt. Ltd

This project presents a detailed business plan for Fizzed-up Beverages Pvt. Ltd., focusing on its operations in the Australian region. The plan covers various aspects of financial management, including forecasting techniques using trend analysis, financial forecasting through budgeting for a three-year period, and the determination of statutory requirements. It addresses the company's negotiation strategy for securing funds, record-keeping processes, and budgeted performance and expenditure. Furthermore, the plan analyzes associated risk factors, planning for budget monitoring, and includes financial statements. The business aims to offer carbonated flavored drinks and has set a capital structure with 70% equity and 30% debt, with a projected return on investment increasing over three years. The plan also includes a comparative trend analysis using Woolworth Group data from 2017-2018 and discusses the financing of the business idea.

Running head: BUSINESS PLAN
Business Plan
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Forecasting Technique.................................................................................................................2
Financial Forecasting...................................................................................................................2
Statutory Requirements...............................................................................................................3
Comparative and Trend Information’s........................................................................................3
Negotiation Strategy....................................................................................................................4
Record Keeping...........................................................................................................................4
Budgeted Performance and Expenditure.....................................................................................4
Risk Factors.................................................................................................................................5
Planning for Monitoring the Budget............................................................................................5
Financial Statements....................................................................................................................6
References........................................................................................................................................7

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Introduction
The business plan in which the company will be offering the products or services
primarily will be in the beverage industry. The start-up will be operating with the trading name
Fizzed-up Beverages Pvt. Ltd whereby the business will be offering various kinds of products in
the beverage industry. The operations will be primarily in the Australian Region thereby
allowing it to undertake various courses of business products and services in exploring the
beverage industry and reaching out directly to the consumers. The key business details of the
startup company are as follows:
 Exact Location: New South Wales, Australia.
 Products: Carbonated Flavored Drinks.
 Staff Members: The management in the initial stages would be deploying around 25
members in the operations of the company.
Discussion
Forecasting Technique
The forecasting technique that would be deployed in order to analyze the financials of the
company will be the usage of the trend analysis. Relevant changes in the financials of the start-
up business will be based on the factors that will be affecting the movement of the determined
financials (Wagner, 2019). The financial forecasting will be done whereby annual profit and loss
statement, balance sheet and cash flow statement for the start-up will be prepared.

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Financial Forecasting
The financial statement was forecasted using budgeting process, whereby financial
budget has been done by projecting various assumptions like the revenue earnings that will be
earned, with the help of the various products that it will be selling (Qureshi, Saeed & Wasti,
2016). The financial forecasting in terms of budgeting will be done for a sum of three years. The
forecasting in particular will be done by including various financial terms and metrics that should
be included for the purpose of determining the various financial needs that the company would
be requiring. The income sources of the start-up plan will be done for a sum of three year trend
period where relevant changes in the financials will be taken into analysis. The operational
expenses that the new start-up will be spending can be primarily divided into variable and fixed
expenses. The variables expenses that the business will be spending will be into the field of
direct associated cost of goods sold for the sales made. The cost of goods sold will be around
50%. On the other hand, the operational expenses recorded for the business will be in the form of
wages, rents, salaries, sales and marketing expenses that the start-up will be spending as a part of
operational expenses. The operational expenses, has been determined by looking at the expenses
that has been incurred by the industry and the same has been taken into considerations for the
purpose of including in the financial statements. The total operational expenses that the start-up
will be spending in the first year will be around $179500 and the same is expected to increase at
a rate of 5%.
Statutory Requirements
The Beverage Business needs to well adhere with the Australian Government Business
Registration for the purpose of registering the business and getting the Australian Business
Number (ABN). The key statutory requirements that needs to be primarily adhered would be in

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accordance with the Australian Taxation Office whereby the applicable tax rate for the business
will be around 27.5% and the net income that will be generated by the business will be taxed at
the applicable tax rate.
Comparative and Trend Information’s
The comparative trend analysis for the start-up will be done with the help of the various
data that will be included for the company including the base case projection for the business
operations. The trend information for the Fizzed-Up business will be well determined with the
help of the base case figures determined in the first year and the relevant analysis after the same
will then be done based on the forecast and assumption made in the same context. The growth in
the revenue figure for the business will be taken at 10% increase whereby the various products
that will be sold by the venture, will be better analyzed and reviewed (O’Donnell & Dahl-
Popolizio, 2018).
Negotiation Strategy
The fund that would be required for the business operation will be around $1 million and
the amount that will be contributed from the equity portion will be summing up to 70%. On the
other hand, the net finance that will be required from the debt finance will be summing up to
next 30% that will be required by the business to borrow in the form of long-term borrowings.
The key negotiation points that would be highlighted to the bank manager would be that the
capital structure of the company has been kept less risky and the revenue and the net profitability
generated from the business will be optimal for the purpose of repayment of interest and the
associated principal amount (Shields, 2017).

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Record Keeping
The record keeping process for the business will be produced by the company and the
sane will be primarily in the field of budgeted financials whereby relevant financial planning and
assumption has been taken into consideration. The resource allocation and usage will be well
analyzed by the business with the help of the efficiency testing techniques for the business
operations, whereby the net asset utilized by the company in the trend period will be well
forecasted (Yu, 2018).
Budgeted Performance and Expenditure
The budgeted performance planned out for the business will be well carried with the help
of financial forecasting whereby relevant assumptions and factors that are important will be
noted down in the important financial documents like income statement, balance sheet and the
cash flows statement. The budgeted performance can be well reviewed by the management with
the help of the monthly level of sales activity for the company. The management of the company
can take important steps in taking necessary actions for strategizing and improving the same
(Barton, 2016).
Risk Factors
The key risk factors that are associated with the business will be primarily in the field of
changing business conditions and the market environment under, which the operations of the
start-up is based. The business operations of the start-up idea is also associated with the financial
risk whereby the inclusion of debt in the financials of the business will be actually affecting the
overall profitability and the associated business risk for the business operations. On the other
hand side the expected return that would be generated from the business can be well determined
with the help of Return on Equity for the company whereby the net profitability forecasted for

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the business along with the equity base of the company will be taken into consideration. The
return on investment for the company in the first year of operations will be around 20.14% and
the same is expected to increase to about 23.51% in the second year and simultaneously to
24.25% in the third year itself.
Planning for Monitoring the Budget
The planned out budget for the company will be well analyzed based on the monthly data
that has been forecasted along with the actual results that will be generated by the company. The
changes or the variances incurring in the result will be helping the management of the company
in understanding the various aspects of the business and the key effect of the same in the overall
business operations for the company.
Financial Statements
The company that has been selected for the purpose of financial analysis is the
Woolworth Group and the selected time period for the analysis will be for the period 2017 and
2018. The financial statements that would be required by the companies to lodge with the
Australian Security and Investment Commission will be the 10-K or Annual reports presented
(Group, 2019).
The horizontal and vertical analysis has been well carried out for the business for the
period 2017-2018 to analyze the effect of the same on the overall financials of the company.
The activities and efforts undertaken by the business in the field of increasing the
profitability and overall revenue base for the company has been primarily due to diversity in the
products offered and a customer oriented approach undertaken by the company. The financial

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decisions that are in particularly taken by the company should be able to well meet the various
needs and demands of the business organizations.
Financing of Business Idea
The start-up will be operating with the trading name Fizzed-up Beverages Pvt. Ltd
whereby the business will be offering various kinds of products in the beverage industry. The
operations will be primarily in the Australian Region thereby allowing it to undertake various
courses of business products and services in exploring the beverage industry and reaching out
directly to the consumers. The fund that would be required for the business operation will be
around $1 million and the amount that will be contributed from the equity portion will be
summing up to 70%. On the other hand, the net finance that will be required from the debt
finance will be summing up to next 30% that will be required by the business to borrow in the
form of long-term borrowings. In terms of financial performance it is expected that the company
will be generating sound revenue base for the company in the trend period that has been
analyzed.

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References
Barton, A. (2016). The Munch: An Integrated Business Plan.
Cant, M. C. (2016). Entrants and Winners of a Business Plan Competition: Does Marketing
Media Play a Role in Success?. Journal of Entrepreneurship Education, 19(2), 98.
Group, D. (2019). Reports. Wesfarmers.com.au. Retrieved 7 September 2019, from
https://www.wesfarmers.com.au/investor-centre/company-performance-news/reports
O’Donnell, R., & Dahl-Popolizio, S. (2018). Business Entrepreneurship: The Integrated
Behavioral Health Business Plan. In Training to Deliver Integrated Care (pp. 143-159).
Springer, Cham.
Qureshi, M. S., Saeed, S., & Wasti, S. W. M. (2016). The impact of various entrepreneurial
interventions during the business plan competition on the entrepreneur identity
aspirations of participants. Journal of global entrepreneurship research, 6(1), 9.
Shields, J. (2017). Business to Business Marketing.
Wagner, R. A. (2019). The Business-Model ‘Flag’: A Visualization Tool for Pitching
Financials. Available at SSRN 3409229.
Yu, J. M. (2018). Yu Buyu: A Curatorial Studio: A Business Plan 2019-2024.