Molly & Smith Pvt. Ltd: Comprehensive Business Plan for E-Bottles

This document outlines the business plan for Molly & Smith Pvt. Ltd., a venture focused on manufacturing bamboo e-bottles. It begins with an executive summary and covers the owners' entrepreneurial experiences, market research, operational and legal requirements, and tangible and intangible needs. The plan includes detailed market segmentation, targeting, and positioning strategies. It also presents cost and pricing strategies, financial forecasting (sales, costs, seasonal trends, cash flow), and a contingency plan. The business aims to capitalize on the growing demand for environmentally friendly products. The financial forecasts include sales and cost projections, and an analysis of the business's running costs. The plan also details the cash flow forecast and investment sought from investors. Overall, the document provides a comprehensive overview of the business's objectives, strategies, and financial projections.

Business Owners
(Part - 1)

EXECUTIVE SUMMARY
This document has covered the idea of entrepreneur where, he has offered customers with
bamboo made e-bottles. It has also covered the marketing strategies, tangible and intangible
requirements, financial plan and feasibility of the whole new venture i.e. Molly & Smith Pvt.
Ltd. Along with this, cost and pricing strategies that has been taken into consideration are much
more effective in nature, that has raised ample number of benefits like competitive advantages,
enhancement within customer engagement and so on.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Owners Experience..........................................................................................................................1
New Venture....................................................................................................................................1
Market Research..............................................................................................................................1
Operational Requirements...............................................................................................................3
Tangible and Intangible Requirements..............................................................................3
Legal Requirements...........................................................................................................3
Cost and pricing strategy........................................................................................................3
Financial Forecasting.......................................................................................................................4
1. Sales and cost forecast for products and services:..............................................................4
2. Affect of seasonal trends:...................................................................................................4
3. Overall business running cost:............................................................................................4
4. Cash flow forecast:.............................................................................................................4
5. Investment asked from investors:.......................................................................................5
Contingency plan/exit plan.....................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

Owners Experience
Entrepreneurship in business can be defined as a particular process which is particularly
enclosed with idea, design, launching and running a whole new business. Basically, the term i.e.
entrepreneurship is the capacity along with willingness to organize, develop and manage a
business venture along with any of its risks to make a profit (Dana, 2018).
Experience 1:
Smith is aware of the fact that, plastic and other harmful materials are disrupting
environment, which will soon became a reason of holocaust or can be cause of various disasters
like global warming, drought and many more. This concern has brought in his mind a unique
idea of manufacturing e-bottles made up of Bamboo so that he could earn good amount of profits
in a short span. In present report, the new business idea which has been taken into consideration
of Molly & Smith Pvt. Ltd, which is a whole new manufacturing venturer, that is looking
forward to manufacture e-bottles made up of Bamboo. Basically, this idea will not only grab the
attention of targeted customers but, it will also aid Smith in supporting the environment by
giving a message to the world of not using plastic products, when they can use unique shaped
products like e-bottles made up of Bamboo, which are biodegradable in nature.
Experience 2:
Jose, is the one who loves food, but due to infected food he has been through food
poisoning. This made him realise that the world needs to start eating organic food. Therefore, he
opened a new business named as Organic Farms. Basically, this company will be offering
customers organic food products, that are less harmful for people and it will also aid them in
saving environment as well.
Experience 3:
Mark, is said to be the one who works in IT department of a business firm. He is now
looking forward to open his own e-business store where, he will be offering customers with
various software, gizmos and so on. With the help of this, Mark would effectively become a
successful entrepreneur in a short span.
New Venture
Molly & Smith Pvt. Ltd, which is a manufacturing business organisation started working
at small level, considering an idea of earning profit along with saving the business environment.
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The new product would be water bottles (e-bottles) made of Bamboo. Reason of choosing this
material while manufacturing the product is that this would provide more stability, durability and
effectiveness towards environment and hence, could be used in the place of plastic. along with
this, the internal coating of the e-bottles would be inclusive of technology by the name of
Sanipolymers, which has zinc particles that would be purifying the liquid in the containers,
therefore, providing more health benefits. Including this, the new venturer in near future will also
be offering customers with various biodegradable products, in order to bring awareness in all
over the world, about how plastic could impact negatively upon environment and raise chances
of holocaust (Dupuis, 2018).
Market Research
It refers to the systematically gathering of data about customers and helps in analysing it
better understanding of people's need. To collect information about the new product which is
bamboo bottle, secondary data method is used. As it is suitable in identifying the current trends
and include various sources such as sales report, financial statements, information about
company, MIS, business journals, libraries etc. To determine the targeted market for E-Bottles,
segmentation, targeting and positioning is used which is described as: Segmentation: It identifies the particular needs, suitable market to find customers and
deliver on focusing the effective marketing messages. It include various segments: Demographical: It determines the age, gender, income, education, type of residence and
many more. As Molly & Smith Pvt. Ltd, aims at those people who want environment
friendly products because they are more conscious about environment. Geographical: It specifies areas, country, region and climate of country which influences
the sale of E-Bottles. As company expand its product in that area where citizens are more
conscious about their environment as oppose the use of plastic (Fairlie and Fossen, 2018).
 Behavioural: It determines the brand loyalty, distribution channels, use of product which
impacts the marketing factors. As it identifies the buying behaviour of customers and
their requirement. Molly & Smith Pvt. Ltd, should identify the behaviour of their
customers and perspective about the product.
Targeting: The targeted market of company is those people who are more conscious
about environment and the age group of 10-45 as this size justifies the relevant segments as if the
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market is small because different segments require various benefits. The assumed targeted
market is North America, Europe, Asia Pacific and Middle East & Africa.
Positioning: It is the last stage of Segmentation, Targeting and Positioning in which the
product is positioned competitively in the market and to launch this specific market strategy is
developed as it helps in succession of product. To safely launch E-Bottles in the market,
company develop USP which is the material used in manufacturing of product because it helps in
advertising and promotion of product.
Market Strategies and competitors: Company use social media and Facebook ads to
promote their products in the market as it is helps in increasing the sales and profitability of E-
Bottles. The competitors of Molly & Smith Pvt. Ltd, are those who also offer environment
friendly products like aluminium bottles (Ikebuaku and Dinbabo, 2018).
Operational Requirements
In today's business world, operational requirements are effectively be capable of,
performance measurement (Measures of Performance, Measures of Suitability, Measures of
Effectiveness, Technical Performance Measurements and so on) and processes needed to address
mission area deficiencies, evolving threats, emerging technologies, or weapon system cost
improvements. Including this, Molly & Smith Pvt. Ltd, is said to be one of the crucial business
idea, which can be considered as one of the crucial business plan that will help in grabbing the
attention of customers and will also save the environment as well. Continuously offering
customers with products made up of bamboo or any other element that could effectively be
utilised by clients and without harming the environment (Julien, 2018).
For developing the manufacturing plant, it will be required by Molly & Smith Pvt. Ltd. to
sustain in the market for a longer period of time.
Unique selling point: This can be defined as one of the crucial factor, which majorly
differentiate products from competitors, and this is because lowest cost along with highest
quality or first-ever product could help Molly & Smith Pvt. Ltd in sustaining within the market
for a longer period of time.
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Tangible and Intangible Requirements
In order to run the business operations of Molly & Smith Pvt. Ltd., it will be required to
consider both tangible and intangible resources, which will help firm in selling e-bottle and other
biodegradable products to targeted customers in all over the world.
Tangible requirements: In present context, there will be a range of tangible requirements
that will be required by Molly & Smith Pvt. Ltd. and these are: inventory, cash, equipment,
vehicles, investments and buildings as well.
Intangible Requirements: If it is talked about intangible requirements, then the company
i.e. Molly & Smith Pvt. Ltd. will be required to focus different elements like pre-paid expenses,
accounts receivable, patents, goodwill and so on.
Legal Requirements
In present time, for company to perform business in much effective and efficient manner,
it will be required by Molly & Smith Pvt. Ltd. To fulfil a number of legal requirements like
business name registration, federal tax requirements, state and local tax requirements, business
permits and licenses and follow all the available business laws and regulations. It will also be
required by Molly & Smith Pvt. Ltd. to look into all the different range of amendments that takes
place within the laws made by government to perform business in ethical manner (Neck and
Corbett, 2018).
Cost and pricing strategy
Penetration pricing policy: It is a strategy which helps in gaining the market share for
those who are new entrants or launch innovative product. As per this strategy, initially company
can keep low price for product for specific period of time such as weeks or months. It is used to
develop customer base of product and currently, use by Molly & Smith Pvt. Ltd, in order to build
their market (Ramadani and et. al., 2019).
Cost: In present time, it will be required by Molly & Smith Pvt. Ltd, to adopt the best
possible strategy and i.e. cost leadership. Considering this approach, firm will sustain within the
market for a longer period of time.
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Financial Forecasting
1. Sales and cost forecast for products and services:
Particulars Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Forecasted
sales 6000 6120 6242 6367 6495 6624 6757 6892 7030 7171 7314 7460
Forecasted
cost 5000 4950 4901 4851 4803 4755 4707 4660 4614 4568 4522 4477
Profit 1000 1170 1342 1516 1692 1870 2050 2232 2416 2603 2792 2984
Notes: It has been estimated that sales of e-bottles will increase by 2% every month and
the cost will decreased by 1% per month.
All the calculations which are made above are based upon assumptions.
It has also been estimated that in first year the organisation will produce 2500 units which
will be sold on fluctuating rate according to the market situations and position of new business in
the market (Tur-Porcar, Roig-Tierno and Llorca Mestre, 2018).
2. Affect of seasonal trends:
The demand sales and cost of the bamboo made e-bottles will not get affected due to
seasonal trends in first year and rest of the upcoming years because the crop of it produced by
farmers for whole year. There will be no impact of seasonal trends on the supply and demand of
them.
3. Overall business running cost:
Basically, running costs can be defined as amount of money that is regularly spent on
things such as salaries, heating, lighting, and rent.
Formula: Total cost of production / quantity of units produced
= 56808 / 2500
= 22.72 pound per unit or bottle
Based on the above mentioned calculation, it has been interpreted that the overall
business running cost for per bottle will be around 22.72 pound.
4. Cash flow forecast:
A cash flow can be considered as one of the crucial plan which shows how much money
a business expects to receive in, and pay out, over a given period of time.
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Particulars Jan Feb Mar Apr May June July
Augu
st
Septe
mber
Octo
ber
Nove
mber
Dece
mber
Cash inflows
Opening
balance 5000 5500 8770
1331
2
1417
9
1932
4
2124
8
2690
5
3319
7
3942
7
4639
8
5301
2
Cash sales 4000 4080 4162 4245 4330 4416 4505 4595 4687 4780 4876 4973
Credit sales 2000 2040 2081 2122 2165 2208 2252 2297 2343 2390 2438 2487
Total inflows
( a )
1100
0
1162
0
1501
2
1967
9
2067
4
2594
8
2800
5
3379
7
4022
7
4659
8
5371
2
6047
2
Cash outflows
Fixed: Rent
and electricity 3000 2500 1500 2000 1200 3500 800 200 300 100 600 300
Variable :
Direct material 2500 350 200 3500 150 1200 300 400 500 100 100 400
Total outflows
( b ) 5500 2850 1700 5500 1350 4700 1100 600 800 200 700 700
closing
balance
( Total A- B ) 5500 8770
1331
2
1417
9
1932
4
2124
8
2690
5
3319
7
3942
7
4639
8
5301
2
5977
2
With the help of above information, it is being computed that, at the end of first year, the
organisation will be able to generate the cash flow of 341042 Pounds. Along with this, Total
outflow amount will be 25700 Pounds and 366744 pounds will be the inflow amount for the first
year.
5. Investment asked from investors:
As the total cost for the business is 56808 so the investors will be asked to make
investment of at least 80000 pounds. Higher amount is required for investment because apart
from the direct cost various other expenses such as rent, salaries, electricity etc. will be faced by
the organisation. The additional amount of 23192 pounds ( 80000 – 56808 ) will be used for the
purpose of dealing with different expenses which may takes place in future. This additional
finance can also be used for the purpose of ignoring uncertainties in future. Some of them are
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additional spending on advertisement, over budgeted marketing etc (Umrani, Kura and Ahmed,
2018).
Contingency plan/exit plan
Contingency plan, refers to that action by which organisations respond effectively for the
certain situation which may or may not happen. The plan for company is that in future if they fail
to sell the bamboo bottles due to their cost then they can replace it from aluminium bottles which
can the “PLAN B” for company.
Exit plan, defines that if company fails to survive in the market then they can wind up
their business and sell their shares by which they can earn relevant profit for them. For this,
liquidation can be use as it helps in distribution of assets to claimants (Venkataraman, 2019).
CONCLUSION
With the help of above mentioned report, it is being concluded that a whole new business
would require to develop an effective and eye catching business idea, to sustain within the
market for a longer period of time. Along with this, taking in use of much effective and efficient
marketing strategy, an entrepreneur could lead it's company and products to next level, where
they could expand business, enhance profit margins and productivity at much effective and
efficient manner.
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REFERENCES
Books and Journals
Dana, L. P., 2018. ENTREPRENEURSHIP & SMALL BUSINESS.
Dupuis, A., 2018. Entrepreneurship: New perspectives in a global age. Routledge.
Fairlie, R. W. and Fossen, F. M., 2018. Opportunity versus necessity entrepreneurship: Two
components of business creation.
Ikebuaku, K. and Dinbabo, M., 2018. Beyond entrepreneurship education: business incubation
and entrepreneurial capabilities. Journal of Entrepreneurship in Emerging
Economies. 10(1). pp.154-174.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Neck, H. M. and Corbett, A. C., 2018. The scholarship of teaching and learning
entrepreneurship. Entrepreneurship Education and Pedagogy. 1(1). pp.8-41.
Ramadani, V. and et. al., 2019. Beekeeping as a family artisan entrepreneurship
business. International Journal of Entrepreneurial Behavior & Research. 25(4). pp.717-
730.
Tur-Porcar, A., Roig-Tierno, N. and Llorca Mestre, A., 2018. Factors affecting entrepreneurship
and business sustainability. Sustainability. 10(2). p.452.
Umrani, W. A., Kura, K. M. and Ahmed, U., 2018. Corporate entrepreneurship and business
performance: The moderating role of organizational culture in selected banks in
Pakistan. PSU Research Review. 2(1). pp.59-80.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal Ideas
for the Next Twenty-Five Years of Advances (pp. 5-20). Emerald Publishing Limited.
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