Green Bags: Sustainable Business Plan - Enterprise & Entrepreneurship

This report presents a comprehensive business plan for "Green Bags," an enterprise focused on replacing plastic bags with eco-friendly paper bags. It identifies the product line, target customers (B2B, specifically shopping malls, wholesalers, and supermarket retailers), and key competitors in the UK market, such as Cancellate and Thrace Group. The plan highlights the company's strengths, including its commitment to natural authorization and societal betterment. It includes a two-year profit and loss account and cash flow forecasts, along with a break-even analysis. Funding sources, such as bank loans and equity finance, are considered, with a recommendation for equity finance. The report also outlines plans for obtaining tangible and intangible resources and emphasizes the need for a robust management information system. The vision of Green Bags is to become the most innovative firm in the market by continuous innovation, leading to the attraction of customers. The report concludes that entrepreneurship involves risk and reward, and that Green Bags aims to minimize pollution by offering a sustainable alternative to plastic bags.

Enterprise and
entrepreneurship

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Proposed future business :...........................................................................................................3
Customers :..................................................................................................................................3
Competitors :...............................................................................................................................4
Skills :..........................................................................................................................................4
2 year profit and loss account and proposed 2 years cash flow forecasts including break even.5
Sources of funds to grow business..............................................................................................6
Plans for obtaining resources, both tangible and intangible between now and either 1-2 year. .7
Type of management information system that is require in business.........................................7
Vision of Business Idea...............................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
Entrepreneur is an individual that first starts a new business, bear all the risks and
responsible for all the practice involved in the process of setting up an successful business and
enjoy the gotten rewards. Enterprise is the business that is performed by the entrepreneur with
the motive of building profits. This whole process of starting a business, providing a creative
product or service by considering the risks involved by the entrepreneur is known as
entrepreneurship (SANTOS and Ferreira, 2017). The following report is consisted of the various
factor about the chosen company 'green bags'. The several factor it includes are – details about
the product / service of the company with its proposed business, its target customers, its
competitors in the market, analysis of skills needed and used, accounts table, sources of funding,
plans, type of organisation and vision.
TASK
Proposed future business :
The product line of the business are eco friendly bags made up of paper to replace the
current use of plastic bags. This business idea is considered by looking at the current amount of
pollution made through usage of other types of bags that are harmful for the environment. The
use of plastic bags has a huge role in the pollution as they are biodegradable and takes thousands
of years to decompose. Each plastic bag has the ability to kill many animals include the marine
lives too. The use of these bags is common and can be easily found due to its cheapness. These
lead the market of bags that are used for carrying different products. The idea is to replace this
current use of plastic bags with one that are made up of paper (Cekuls, 2018). Use of paper bags
helps in coping up and minimising the pollution as these can be recycled after use and are made
from natural sources. Green bags can use trademarks as the intellectual property rights to have a
strong position and protect the business idea and enterprise. A trademark is a sign, expression or
design which makes the source identifiable. It legally states that it cannot be used by other
business organisations as their own.
Customers :
Target customers for dealing the product in the market are the business firms who have
high demands of using (for their sake or for providing to the customers) or selling of bags. Green
bags will have to deal in the B2B environment for achieving success in sector. It can target the

high consumers of these bags such as - shopping malls, wholesalers or supermarket retailers and
can also build a chain through which small retailers can buy them (Kalu and Dana, 2021). The
end users of these bags are customers and common people of the market but these kind of
products are not directly bought by them as these are basically the service that the customers
need in easy handling of their products and provided by the shops or other market sellers from
which they are buying any commodity. Generally, plastic bags are provided for free and paper
bags are charged a minimal by the sellers due to the difference in their cost. Due to this some
customers also prefer having plastic bags. Customers need to understand the value of the
environment and practice pollution minimizing activities at their extent. The consumers should
consider the using of paper bags as their contribution towards maintaining safe environment.
Competitors :
Cancellate, Thrace group, poly bags are some companies which are the leading ones in
the market of bags and polythene made form plastic in the UK market. These are the giants that
become a hindrance in the way of the related business. They try their level best to make the
market feel need of their product and to stop other emerging companies of plastic or paper bags
too at their extent to maintain their market leading place (Gándara, 2020). The company 'green
bags' proves to be better with these companies in the different following ways:
 All the paper bags are made with natural authorization as they come from forests and
managed continuously. This will prevent the release of carbon dioxide.
 The company is performing with less margins and rather than focusing on maximising
the profits, its full focus is to provide the society with better living standards.
 It will work in collaborating with big firms that will help in achieve their target of
employing the people that are in need in raising their families which will directly help in
betterment of employment level.
Skills :
These are the expertise or talent that are needed in order to achieve make any task easier
and effective. There are many types of skills that depends on the type of work or activity. To be
an successful entrepreneur, it needs many different types of skills that often depend on the area
of work. Skills that the innovator or business owner of green bags have and need for developing
and taking the business idea ahead and lead the market are:

 Innovation – To identify an idea and need from the market it needs innovation. A
business entity providing the same product or service as other can not achieve greatness.
The entrepreneur identified the need of these paper bags to improve the quality of
environment.
 Effective communication – The ideas were as per the needs of the market, but to
effectively present it in the market and, an entrepreneur needs good and effective ways of
communication. The related entrepreneur of green bags need to develop this skill to make
the consumers feel its need.
2 year profit and loss account and proposed 2 years cash flow forecasts including break even
Forecasted Profits and loss account for Green bags for 2 years.
Profit and loss account
Particulars Year 1 Year 2
Sales 2500000 3500000
Less: cost of goods sold 400000 500000
Gross Profit 2100000 3000000
Less: Expenses
Administration expenses 500000 550000
Selling and distribution expenses 600000 600000
Fixed Expenses 750000 750000
Operating income 250000 1100000
Add: Indirect income 450000 200000
Net Profit 700000 1300000
Forecasted Cash flow statement for Green bags for 2 years.
Cash flow statement
Particulars Year 1 Year 2

Cash received from sales 1500000 2000000
Less: payments
Payment to creditors 200000 250000
Rent 15000 15000
Purchases 150000 200000
Net cash after payments 1135000 1535000
Add: receipts
Received from debtors 230000 340000
Commission received 10000 18000
Net cash 1375000 1893000
Opening cash balance 1500000 2875000
Closing cash balance 2875000 4768000
Selling price per unit = $ 50
Variable cost per unit = Total variable cost / Number of units
Year 1
= 500000 + 600000 = 1100000
1100000 / 50000 = 22
Year 2
= 550000 + 600000 = 1150000
1150000 / 70000 = 16.42
Break Even point = Fixed Expenses / Sales - Variable cost
Year 1
= 750000 / 50 – 22 = 750000 / 28 = $ 26785
Year 2
= 750000 / 50 – 16.42 = 750000 / 33.58 = $ 22334
It is essential for the organisation to earn $ 26785 in year 1 and $ 22334 in year 2 in
order to covering its expenses.

Sources of funds to grow business
There are several sources through which the organisation can get funds. Some of them
are given below:
Loan from bank: Loan refers to a amount which an organisation can get from the banks or
financial institution in the exchange of some licence or mortgage. The business organisation
can use the money in expanding the business operations, acquisitions and meeting all the
expanses which have been done by management to grow (Radolova, 2019).
Equity Finance: It refers to the process under which the organisation issue shares to the general
public for the purpose of collecting finance. In the exchange of huge share capital,
organisation provide interest and dividend to the shareholders.
Recommendation: It is recommended to the Green Bags to select the option of equity
finance for sourcing the finance in the organisation. But any they can issue shares only if they are
listed under stock exchange. It is consider as the best source of finance as the organisation is not
required to repay the money as they have to do in the case of bank loan.
Plans for obtaining resources, both tangible and intangible between now and either 1-2 year
Particulars Amount $
Manufacturing expenses 1200000
Labour cost 100000
Fixed cost 200000
Raw material 1500000
Total 3000000
Type of management information system that is require in business.
In order to performing the effective business operations, the Green bags can work as a
Company. For the same, they are required to register under the London stock exchange. If the
Green bags work as a company it state the limited liabilities of their shareholders. Along with
this, the organisation have a legal entity (AbuJbara and Worley, 2018). The organisation can

raise the capital whenever they require. Limited liabilities of shareholder sis the best feature of
company as it do not make any burden on owners.
Several types of management information system are required in the Green Bags which
include process control for collecting the data on regular basis, management reporting system
for comparing the performance of organisation from the performance of past few years,
inventory control for the purpose of tracking the ram material and finished products, sales &
marketing in order to tracking the efficiency of marketing functions of business and many more.
Vision of Business Idea
It is defined as the key point which is derived from the strategic plan. The major vision of
Green bags is to become the most innovative firm in the market as it is being analysed that the
continuous innovation leads to the attraction of customers. The success of any business
organisation also depend on the customers as they make the decision of selection of products and
services.
CONCLUSION
From the above report it has been concluded that, the process of starting an enterprise by
an entrepreneur with maintaining all the risks involved and enjoying the rewards is known as
entrepreneurship. With the increase in pollution, the entrepreneur identified the one of the main
factor that was negatively effecting the environment as vast using of plastic bags in market and
decided to start an enterprise which will replace these plastic bags with natural paper bags. The
use of paper bags help in minimising the pollution highly. To perform the enterprise effectively,
the entrepreneur needs to identity the target customers and make related deals with them, identity
and cope up with the competitors, develop the skills needed, identify the type of organisation,
vision and consider many different activities.

REFERENCES:
Books and Journals:
SANTOS, E.M.M.D. and Ferreira, J.J., 2017. Analyzing informal entrepreneurship: A
bibliometric survey. Journal of Developmental Entrepreneurship. 22(04). p.1750022.
Cekuls, A., 2018. Role of the Leadership and the Values in Social
Entrepreneurship. International Multidisciplinary Scientific GeoConference: SGEM. 18(5.3).
pp.951-957.
Kalu, E.U. and Dana, L., 2021. Socio-cultural web and environmentally-driven community
entrepreneurship: a portrayal of Abia Ohafia community in South-Eastern Nigeria. Journal of
Enterprising Communities: People and Places in the Global Economy.
Gándara, D., 2020. How the sausage is made: An examination of a state funding model design
process. The Journal of Higher Education. 91(2). pp.192-221.
Radolova, O., 2019. Advantages and disadvantages of public funding.
AbuJbara, N.A.K. and Worley, J.A., 2018. Leading toward new horizons with soft skills. On The
Horizon-The Strategic Planning Resource for Education Professionals. 26(3). pp.247-259.