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The entire business plan of a company named Organic Pabulums is prepared. This company will be introduced into the business world. It will carry out its services in two platforms, online and offline simultaneously. The online is carried out via company website and the offline services are operated from a retail store. The products of Organic Pabulums are organic food items. Apart of the funds are raised from NGOs and Government contributions. The rest is from my personal property and the loan taken from bank.
As the lives of people in this era has become too fast, they do not possess the time to find the items of their best choice from a huge mass of options available all around. Thus people attempt to grip the nearest and easiest option available in each and every parameter of life no matter whether they are perfectly meeting their demands or not or they are good for them or not. But an initiative is taken to implement a project which will help people to meet their demands in the easiest and simplest way without compromising with their health and hygiene (Abrams, 2003). The project is to form a company named as Organic Pabulums. The research report with reference to the project is provided over here.
1. GENERAL DESCRIPTION OF ORGANIC PABULUMS
1.1 Mission, goals and objectives of Organic Pabulums
The mission of the company is to deliver organic food item to customers as per their orders and carry out the business transactions with implementation of the advanced technology of online marketing as well as giving importance to the traditional retail marketing strategy (Barrow, 2011). The mission of Organic Pabulums generated the objectives to be followed and the goals to be reached.
The objectives of Organic Pabulums are as follows:-
- To maintain quality in the organic products.
- To become successful in keeping the commitments made to the customers. The orders which will be placed online must be reached to the customers within time and with proper care. Moreover, the customers who are interested to visit the retail store and pick the organic food items by their own hands can do that too. Thus it will serve to categories of customers and thereby meet their needs.
- To provide customer satisfaction and customer’s reliability upon their services.
The goals of Organic Pabulums include reaching high target sales and each year the goals will be modified to cross the previous year’s sales and move forward on the way to success.
1.2 Philosophy of Organic Pabulums and the users of its market
Each and every business possesses a philosophy and this is not an exception. The business philosophy of Organic Pabulums is to compete with the previous personal records and to consider the personal business mistakes as the guidelines to modification and rectification. The company never compares the sales with any other concern but always attempts to cross the previous record of sales of the own firm. The challenges that are faced on the way to proceed in the business world are considered as miles stone to reach success (Barrow, Barrow and Brown, 2012). One more major point that must be included in the philosophy of Organic Pabulums is meeting the needs of all kind of customers by offering versatile retain services of organic food products. This will make the market provided by the organization accessible to all people with variable mentalities which is indeed a plus point for the company.
1.3 Description of the industry
The project of Organic Pabulums will surely be useful for countless people. Common people will possess an option in marketing organic food products from this company as they can avail online marketing as well as come to the store, visit the products, examine and buy as per their choice. As soon as a single customer will be satisfied, the message of this satisfaction will be shared among numerous people and same way a number of new customers will be the benefiters by this firm. This, growth of the company is highly predictable and thus it can be termed as growth industry. Customers may report about changing a strategy in the online marketing domain which can be considered as a short term chance. Thus customer support section will be there to value the reports of the customers. On getting high benefits from the services of Organic Pabulums, the customers may demand to include some more categories of products apart from organic food products. This is a long term change and the company must predict the outcomes of the change before planning to implement the change.
1.4 Strengths and core competencies
A research has been taken via personal interviews and telephonic interviews to various groups of people. These groups include housewives, working women, students, aged people, and people covering all other categories. The analysis of the interview infers that the entire mankind has rising needs to buy and use organic food products and they desire to solely depend on this food type in future as it is the only natural way to lead a healthy life. A prediction can be made that this business will not meet downfall in future and the rising needs of organic food products will result to the growth of the company (Blackwell, 2008). Thus, the type of the product to be sold by Organic Pabulums brings the greatest competitive strength for the firm.
1.5 Legal form of ownership
The form of ownership of Organic Pabulums is sole proprietor. This form of business is chosen as the initiative and effort to execute this business is only of a single person. Moreover, the investments made to make this business stand are also from a single source. It is neither a sub part of a limited organization nor involves partners in supporting the business (Brockhouse, 1989). A single person is solely responsible for maintenance, execution, profits, losses and all tit bits of the business. Thus the form of the business is termed as sole proprietorship.
2. PRODUCTS AND SERVICES
The products are the bricks to construct a business and its services are the cements to provide the final shape to the business. Thus it is important to discuss the products and services of this business plan which is done over here.
As already mentioned previously, the products of Organic Pabulums are all organic food items. But this single phrase is not enough to describe the entire details of the products. The several categories of organic food products along with their detailed description are as follows:-
Organic Vegetable Pabulums – This is the commonest among all the organic food products. It comprises of green vegetables which may be the leaves, herbs, roots, stems or an advanced growth of an edible plant which are useful for the advancement of health. Mushrooms and nuts are also brought under this category.
Organic Fruit Pabulums – This I the next important item that comes in the list of products of this business industry and these are the necessities for each day in all households. This category include fruits like apples, oranges, cherries, peaches, berries, and most of all popular fruits that some way or the other benefit human health. Dry fruits are also found as products in this category which are available with the best quality.
Organic Drinks and Juices Pabulums – These are the organic food products available in the retail store and online store of this business firm that are the outcomes of treating organic fruits and vegetables. These basically are formed from the extracts of fresh fruits and vegetables to make healthy juices and organic health drinks. Natural sodas are also included in this category.
Organic dairy Pabulums – These organic products consider link as their base products and thus fall into the dairy category of this firm. Plain milk, condensed milk, milk powder are available along with butter, cheese, yoghurt are some of the useful dairy products in this category. In addition there are dairy ice creams, milk shakes and many more dairy products.
Organic Cereals Pabulums – Households cannot be imagined with these organic food products. And thus, if none of the products are sold, at least the firm will be able to make business with the products of this category. Cereals form the base of the main meals in a day. Cold cereals and granolas are very common in this group. Whole grains, hot cereals and rolled oats are the items that are very useful to enhance and maintain good health conditions.
Organic Bakery Pabulums – A number of families live just on breads. They will not at all be eliminated from the customer list of this business firm. Organic bread products are available in huge varieties in this business stores. Starting from organic pizzas to burgers, from plain breads to organic flavored breads all will be available both in the online and retail store. In addition the platform is fond of organic cases, biscuits and cookies.
Organic Jams, Jellies and Honey Pabulums – The organic bakery products which are mentioned in the lat category remain unfulfilled without the complementation by the products of this category. Jams and jellies that are derived on treating organic fruits are necessary for having organic breakfast. In addition, organically prepared honey is also included in the product list of the business services.
Organic Beverages Pabulums – These include organic coffee seeds and tea leaves which do not have a single percentage of synthetic elements in it. These are considered to be organic sources or production of energy in human bodies. Frozen and normal forms of both the items are available.
Organic Miscellaneous Pabulums – In addition to the categories of food products that anyone can get from the stores of this business, there are a number of other items which are not grouped over here. These include canned foods of organic fish and meet, organic spices, edibles oil, organic sauces and vinegars and many more.
All in all, apart from the necessary organic food products that people needs, all the rare items are also available in the store. The products of this business industry will be more than enough to satisfy any need regarding organic food products.
The services of Organic Pabulums are distributed majorly in two fields. One is in the online mode and the other one is in the offline mode.
The offline business services are the traditional ones. The business will comprise of a retail store where all the above mentioned organic food products will be available. Customers will visit the shop and go through all the items. In this service, they will have a chance to judge the quality of the products on spot with that own perception and pick the items of their choice to the counter to buy them.
But there are some people who find it hard to manage a time in a day to visit the shop and but the organic food items. But they have rising needs to translate their present diet to organic diet. In that case, the online services of the company will serve them the best (Dickey, 1994). Organic Pabulums will possess a website which is considered as the online marketing domain. The customers will be able to have a glance at all the available organic food items and select the ones depending upon their needs and choice. Finally, they will have to place the online orders by making payments via internet. As soon as the company will receive the payments, the ordered items will be reached to the customers within pre specified time. Moreover, on getting the items if the customers have any query or dissatisfaction with the products, they can immediately report about that in that in the website. The customer service team of Organic Pabulums will be there to solve all such issues reported by the customers.
2.3 Competitive advantage and disadvantage
The advantage of the products and services of Organic Pabulums are a lot. As the products are needful to all people and useful for proper health, this will always have a great demand. As doctors and health experts are emphasizing on organic diet in the present day, more and more people will attempt to inherit a proper organic diet within their lifestyle (Friedlob and Plewa, 1996). As there are lacks of stores offering organic food products at all places, the online version of this business will earn huge profit.
The only disadvantage is that as Organic Pabulums is in the form of sole proprietorship so it may be a tough to handle all the managerial and financial responsibilities all in single hand. Though employees could be recruited to help in all transactions but in that case, part of the profit will be invested in paying the salaries to them. But, as the growth are predicted in this business, at the end of multiple transactions, profit will collected by me.
The payment policies of Organic Pabulums will be flexible as customers will have the options to avail online payment or offline payment procedures. No extra charges will be exerted upon the customers apart from the legal taxes.
3. MARKETING PLAN
The plan of marketing in any business depends upon the researches that are taken place upon the markets on which the business services will be implemented. Thus, the needs of market research are limitless in a business industry. This role of research is highlighted below:-
3.1 Role of Market Research
It is very dangerous to assume the marketing conditions and apply the marketing strategies. This is because, marketing conditions cannot be assumes at all and can only be determines with proper research (Hague, 1971). The outcomes of the research will point out the weakness and strength of the market of organic food items in the present day and forecast the conditions in the future days. This will be the sole guidelines to plan for the marketing strategies to be implement by the business firm.
3.2 Execution of Market Research
Marketing research can be carried out in Organic Pabulums in two ways. The first one is secondary market research and the second one is primary market research. Both the ways are described below.
The secondary one is simpler. This research involves collection of statistical data, reports, public opinions, and similar documents which have already been published. Journals, newspapers and books many a times possess such information. It is wiser to pick the recently publishes ones to determine the present marketing conditions. Analysis on those data will determine how the products of the business, that is, organic food items in this case, will be accepted by people (Hargreaves, 1983). Will they buy the products or not? Will they become short term customers or long term customers? All the information will be clean and clear from this research just with the help of external sources of marketing information.
The primary research is a bit complex but the results of this type of research are much more valid and entirely concentrate upon this business only. This is because it uses only the cases and services of this business and do not consider any generic perspective. It is very much specific. The main job to execute this research is to carry out personal interviews and telephonic interviews verifying the needs of organic food products of Organic Pabulums among common people. The interviewees will comprise of all age groups and both the genders to determine whether a particular group is interested which the services of Organic Pabulums (which is risky) or whether all sectors of the society are having demands in the products of the company (which is stable condition). Participation of people in conducted campaigns will also determine the markets conditions which can be included in the primary type of research. In addition to that, the company may conduct polls and filling up of personal data sheets to realize the needs and desires of human beings (Morris, 2011). The result of the free polls and the answers of the data sheets filled by the common mass will vividly display that whether the organic food products will gain importance in the society or does it possess a chance to incur loss. All in all, these researches involve personal initiative and personal involvement to know the market condition from the people.
As soon as these researches have been completed, the exact outline to be followed in implementing strategies in the business market will be clean and clear. The strengths of the markets have to be utilized and the weaknesses of the markets have to be overcome. The plans are finally made which will comprise of short term goals and maintenance of business principles as per guidelines of services of Organic Pabulums. This will make the business to proceed successfully by leading it towards business growth.
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Size of the market
The size of the market of Organic Pabulums cannot be mentioned in a single value. The reason behind the inference is that this business market is available in two ways. One is the retail store and the size of that retail market is relatively small. It is based in a single locality and people of the locality have to visit the store to buy a product. Thus, only the residents of the locality can have business transaction in this case.
But in contrast to this, online representation of Organic Pabulums has been done. This is the platform where people from any place can avail the opportunity to buy organic food items of their choice from the website of the company (Pickle and Abrahamson, 1976). This makes the company a national concern and the size of the market is nationalized in this case. Moreover, there are also chances to bring international exposure to the business market with the help of World Wide Web.
My personal share in Organic Pabulums
Organic Pabulums is a sole proprietorship business. Thus my personal investments are considered to develop the business and I am the collector of the entre profits or losses. Thus, I will not have to share any investment, profit or loss of the company with any other party as I am the single owner of it. Moreover, when the markets of Organic Pabulums will reach to a great extent and will comprise of numerous sales, then the initiative may be taken to sell some shares to third parties.
Current demand in the target market
As the researches and statistical records have been analyzed, it have been found that present market have rising demands for organic food products but the society lack sources to compensate the needs of people for these products (Pinson, 2001). Thus, as soon as Organic Pabulums will come into existence, people will instantly grip the chance to buy its products.
Trends of growth and consumer preference
The demands of organic food products are not only are present in these days but will accelerate in the future days. This is because today some people consider it as a good choice, but tomorrow they will consider it as necessity (Siegel, Ford, Bornstein and Siegel, 1993). Doctors and health experts have already started prescribing organic diets and it is predictable that people will concentrate in these diets in future. Thus the growth of Organic Pabulums along with increasing consumer preference to have organic food items is sure to appear with the proceeding of the business.
Growth potential and opportunity for a business of similar size
A business of size similar to this business may have the potential to growth if and only if the demands for its products are identified in the present market. Moreover, the chances for the business to sustain will only be there if its products and services are required by people in the future days.
Economic barriers to introduce Organic Pabulums into the market and overcoming them
It is really a hard nut to crack to introduce a company in the existing market and vitalize it where innumerable companies are getting erased from the business world. But it is true that if one possesses money to invest, he can even buy the top rank in business industry. Thus, the main and the foremost barrier in this case is the economic barrier (Steingold and Bray, 2001). The first barrier faced is the high capital cost which is needed to form the company. Production costs are the next barriers identified and finally come the marketing costs which are the prime ones in running the company successfully. In addition to these main three economic barriers, there are many more but of lesser importance. They are the cost of training the workers, shopping costs, taxes and transaction costs and customer satisfaction investments.
All these can be overcome in a number of ways. First of all, as Organic Pabulums is having a good intention to promote usage of organic food items, I can get financial supports from several NGOs and even from the Government. This can be availed to minimize the barriers. If this is found not to be enough to overcome all the economic barriers, in that case an online campaign can be conducted over internet (Young, 2007). It will be a platform to raise funds to overcome the economic problems and challenges faced by Organic Pabulums.
Parameters that may affect Organic Pabulums
Change in technology may affect the company. This is because of the developing processors and instruments invented these days. If some technological invention makes it possible that people will be able to treat food in a food processor and get only the useful content to eat discarding the harmful elements, the trend of buying organic food products may be affected.
Moreover, if the Government inherit new regulation to not to fund any company, then the economic conditions of Organic Pabulums will be greatly harmed. Chance in economy of the society may also affect the business. This is because availing online modes of marketing is not possible by economically backward classes as it involves internet costs and shipping charges. Thus, economically challenged society will hamper the market of the business. In addition to all this factors, even a change in my industry may affect the services of this company as people have become accustomed to a particular products and services offered by Organic Pabulums. They may not put an urge to again get accustomed with the chance of the industry. Thus, a downfall of the company may come into existence in these cases.
Features and Benefits of Organic Pabulums products
If each of the Organic Pabulums products are judged and analyzed, the same list of advantageous features will be collected in each case. As per the customer’s point of view, the benefits and features of these products are enlisted below:-
- The products of Organic Pabulums are all 100% organic and do not possess a single percentage of synthetic item in them.
- No adulteration is involved in the growing, culturing and processing of Organic Pabulums products.
- It enhances sustainability in using edible products.
- Maintain high quality in the products and freshness is must in all its products.
The customers are grouped to form several demographic profiles. The details of the profiles are provided over here.
- Age: 13 to 25 years
- Gender: Both Males and Females
- Location: All over Australia
- Income level: 0 to 500 Australian Dollar
- Social class: Medium
- Occupation: Student and Researchers
- Education: Graduation, Post Graduation and Research levels.
- Age: 35 to 55 years
- Gender: Females
- Location: All over Australia
- Income level: 0 to 350 Australian Dollar
- Social class: Medium
- Occupation: Homemakers
- Education: Graduation levels.
- Age: 45 to 65 years
- Gender: Males
- Location: All over Australia
- Income level: 500 to 1500 Australian Dollar
- Social class: Medium
- Occupation: Corporate employees and retired persons
- Education: Graduation and Post Graduate levels.
These three demographic groups are the basis of analysis customer needs in the platform of Organic Pabulums.
The companies who have similar services and products can be the competitors of Organic Pabulums. The two major predictable competitor firm’s names with address are as follows:
- Australian Certified Organic – Nuriootpa
- Organic Food Chain – Toowoomba
Their competition with Organic Pabulums will mainly in consideration of the type of products as their motive and mission is also based upon organic food products (Abrams, 2003). The products and services from Organic Pabulums will be always excellent and once people will avail the services from this platform or use its products, they will never move to another concern as they will successfully able to meet their demands over here. This, Organic Pabulums will be able to compete with the competitors.
This is done by a table which includes all the major competitive factors. The ratings in each factors is distributed from 1 to 10 out of 10 in case of Organic Pabulums as well as in the cases of the mentioned two competitors. Whether the factor is a strength or weakness for my company is mentioned as “Yes” or “No”. Finally, the customers who have provided the rating is considered and whether the customer is critical or not very important is rated between the range of 1 and 5; where 1 seems to be critical and 5 seems to be not very important.
|FACTOR||Me||Strength||Weakness||Competitor A||Competitor B||Importance to Customer|
Three factors have been found from the analysis where Organic Pabulums is having weaknesses. The number one is its reputation (Barrow, 2011). As this project has not stills formulated, it is obvious that its reputation get poor marks. But it is expected that in the future days, the company will earn a great reputation. The second one is the method of sales. This may be because the numbers of sales methodologies are less than the other competitors. The advertising is poor which must be improved in the upcoming days.
Organic Pabulums is the platform to serve people with the best quality organic food materials. Once if anyone avail the services, he will desire to avail it for again and again. It aims for the good health and perfect organic diet of the entire human race with sustainability in food resources.
The strategies which are consistent to the niche provided are described below in details.
The customers must know about the services of Organic Pabulums which making it possible involves the first step of promotion.
- It can be done by passing leaflets and providing some free gift coupons to use the organic food products of the company.
- Organizing some campaigns via online and offline modes will be the best ways of promotion.
- Moreover, some celebrities and honorable people from the society can be requested to shoot for an advertisement which can be released in popular TV channels to let people know about Organic Pabulums (Barrow, Barrow and Brown, 2012). But this strategy may involve a high budget.
- Low budget promotions may involve rallies in local areas and sharing highlights of the company in the web pages of all social networking sites.
The promotion must bring an image to the company where people will consider Organic Pabulums as the source of boost to their health as well as in sustainability of food. They may consider be as the helper of the society as well as human race to provide them an opportunity to lead a healthy life without providing much effort.
The initial budget before starting up the company will be a bit higher. It will be approximately 800 AUD to 1000 AUD. This entire sum must be arranged at a time and executed at an instant. But the ongoing budget is reasonable. This is because it is not put forward at a time but could be arranged gradually. It is at about 600 AUD to 800 AUD per annum.
The pricing strategies include the prices that are fixed for the products of Organic Pabulums. The prices of the products are sometimes bit higher than the competitors and many a times are the same (Blackwell, 2008). It is higher sometimes and the production cost increases when an attempt to provide high quality is taken. Customer services will be maintained maximum via online modes to reduce investment.
The location of Organic Pabulums is chosen as one of the main cities of Australia. The surrounding is sufficient to satisfy the customers in all parameters. The place is having parking facilities and much interior space t provide a cozy ambience to the customers.
The retailing of the products will follow the policy of direct selling. It will not go for a strategy of wholesale or hire agents as in that case a part of the profit will be consumed by middlemen.
3.9 Sale Forecast of Organic Pabulums
The prediction of the sales of Organic Pabulums can say that it will become one of the best organic food selling companies of tomorrow (Brockhouse, 1989). The worst case can be predicted as the market may reach a downfall but the company will never collapse. This is because the needs of organic food products will never come to an end.
4. OPERATIONAL PLAN
The operational product plans of Organic Pabulums are highlighted over here:
- Production techniques – The products of Organic Pabulums will be produced in organic environment without the usage of any synthetic accessories (Dickey, 1994). Hygiene is maintained up to the brim and the products will be organically tested before their release.
- Quality control – The quality in products of Organic Pabulums will be maintained by the execution of Total Quality Management (TQC). It involves Quality control, Quality Management, Quality Management, thereby increasing the quality of Organic Pabulums products.
- Customer Services – This will be carried out by telephonic sessions and online discussions. A customer service desk at the retail shop will also be maintained.
- Inventory control – This is maintained by a few strategies. The first one is HML analysis where the High-Medium-Low predictions are made as steps are taken upon the analysis. Economic Order Quantity (EOQ) is a major parameter in inventory control of Organic Pabulums (Friedlob and Plewa, 1996).
- Product Development – Organic Pabulums performs VED analysis (Vital-Essential-Desirable) and thus importance of each product can be judged. This is the key of product development in Organic Pabulums.
The requirements of the location of Organic Pabulums are as follows:
- Amount of Space – the requirement is of 1500 to 1800 square feet.
- Type of the building – It is better if the building is composed of several rooms such that each category of Organic Pabulums products are stored in different room (Hague, 1971).
- Zoning – The zone chosen must be in a popular city of Australia.
- Power utilities – The electric power will be derived for operational causes. In emergency, stored electric power can be used by Inverters and UPSs.
As the retail store will be positioned in a main city of Australia, the transport facilities, railway and airways communication and all relevant accessing necessities will be much easier for the customers.
4.3 Legal Environment
The license of Organic Pabulums will be collected from the Australian Government. The permission of production is predicted to be granted as the production system and the Organic Pabulums products are all organic. The appreciable hygiene is maintained in the workplace and all the environmental regulations are maintained (Hargreaves, 1983). Organic Pabulums contains patented formulas of their products. Insurance will also be made by me for the company to cope up with the company in an emergency.
- Number of employees – 80 persons in the retail store and 45 persons in controlling the online domain making a total of 125.
- Type of labor – Skilled and professional.
- Finding employees – Advertisements will be given in the website of Organic Pabulums as well as in newspapers. Interested candidates will have to go through interviews conducted from Organic Pabulums.
- Pay structure – It will depend upon two factors. First one is the designation and skill, and the second one is the employee’s contribution to the company.
- Training – Initially theoretical and then practical training will be provided by a professional trainer grouped arranged by me.
- Division of tasks – This will be as per the designations and skills.
- Type – The type of inventory in Organic Pabulums includes some organic raw materials as well as some finished food items.
- Average inventory investment – Variable; approximately in the range of 1000 to 5000 AUD.
- Rate of turnovers – Expected rate of turnovers are 2 to 4 percentage.
- Lead time for ordering – It is approximately 2 to 3 days in Organic Pabulums.
- Name: Australian Pure Dairy Foods (Sydney)
- Type and amount inventory furnished: 65% of all inventories of Organic Pabulums is furnished from this supplier.
- Credit and deliver policies: Online credit policies and mailing delivering policies are involved with this concern.
- History and reliability: The company is reliable since it inauguration in 2001.
- Name: Australian Bakery Raw Materials and Agricultural Products (Sydney)
- Type and amount inventory furnished: 25% of all inventories of Organic Pabulums is furnished from this supplier.
- Credit and deliver policies: Mailing credit and delivering policies are involved with this concern.
- History and reliability: The company is reliable since it inauguration in 2005.
The second supplier is considered as the backup of the first one in Organic Pabulums. No problems are expected to happen in availing the services from the mentioned suppliers.
4.7 Credit policies
Selling of credit policies is not the customary in the industry of Organic Pabulums. Thus, as the company is in the initial stage, no such planning is made. As the business will proceed in future if such need arises, then the initiative to sell or share business credits will be taken (Morris, 2011). The maintenance of a good personal credit rating will be followed by me to extend business credits for Organic Pabulums.
Dealing with slow paying customers
This will be carried on in the platform of Organic Pabulums in three stages. They are as follows:
- Phone call – This will be the basic reminder of payments to the customers from Organic Pabulums. The frequency of the phone calls will be once in a week.
- Sending letters – This is done when the time of payment arrives. A letter will be send a week before the date of payments and in the previous day of payment.
- Threaten by attorney – If the date of payment crosses and even after several warning the customer rejects to make the payments, then I will have to hire an attorney to threaten the customer in a legal way in order to draw my deserved payments from him (Pickle and Abrahamson, 1976).
Managing the payable accounts of Organic Pabulums
The payable amounts to the supplier will neither be paid too early before getting the raw materials and nor be paid much after. It proceeds in a percentage depending upon the time. The table below shows it.
Payable aging table of Organic Pabulums
|Total||Current||After 30 Days||After 60 Days||After 90 Days||After Over 90 Days|
|Accounts Receivable Aging||100%||45%||25%||20%||10%||NIL|
5. MANAGEMENT AND ORGANIZATION
The management and organization involves the active participation of each and every person involved with Organic Pabulums. The diversity in responsibility, designation and authority in the organization is displayed below:
The board of Directors is at the top level of the company. In Organic Pabulums, it will comprise of me, as I am the owner of the company and some of the selected people whose decisions are matter in the execution of operation and functioning of the company (Pinson, 2001). Next the managerial team is considered which controls the entire management with the help of consultants. The agents are the extra support of Organic Pabulums. Finally the operations are executed by the workers who are guided by the team leaders.
6. PERSONAL FINANCIAL STATEMENT
As the company is owned by a single person, that is, myself, so all the liabilities of financing the company is of mine. Organic Pabulums will require high funds during its introduction into the business world. But as it is mentioned previously, a major part of the fund will be raised from the NGOs and the Government, so my personal liabilities thereby get minimized. Still I will take a loan from a bank by keeping all my inherited properties as mortgage (Steingold and Bray, 2001). The profits of the business will be more than enough for me to release the mortgage within a year or two.
7.STARTUP EXPENSES AND CAPITALIZATION
The expenses which are required during the startup of Organic Pabulums are a lot. The major on will be due to promotions. Other include establishment, modification in the building setup, buying the accessories for employees to accommodate. And the most important one is the initial production expenses. In addition, there are uncountable small expenses which will have to be faced by me on starting up the business.
The approached involved to cope up with this expenses is contingencies. The contingencies are predicted to be at least 20 percent of the entire expenses at the time of starting up the business (Young, 2007). The sources of income to balance these expenses will be from the loans taken from the bank and the financial supports from the Government and NGOs.
8. FINANCIAL PLAN
The financial projections are as follows:-
8.1 12-Month Profit and Loss Projection
The Profit-Loss expectation of the first 12 months execution of the business is analyzed. It is predictable that high profit will be achieved by Organic Pabulums for sure (Barrow, 2011). The reason behind this is there are countless demands of organic food products all in and around Australia but the sources to get it are rare. Organic Pabulums will provide services in all those fields and thereby earn a huge profit in the first year.
|Cost of Sales|
8.2 Cash Flow Projection
The operational areas are marked at first and the expected cash flow is projected as per the usable parameters of Organic Pabulums. A stock of cash in hand is planned to be kept for any emergencies. This policy will help the company to never meet a downfall.
|Particulars||Year 1||Year 2||Year 3||Year 4||Year 5|
|Cash From Operations||13800||18900||24300||28900||36200|
|Additional Cash Received|
|Tax, VAT, HST, etc||1869||2196||2500||2960||3600|
|Interest free liability||0||0||0||0||0|
|Sale of Current Assets||1120||1500||1800||2150||2450|
|Subtotal Cash Received||2989||3696||4300||5110||6050|
|Total Cash Received||45089||69496||107200||132610||154650|
|Expenditures||Year 1||Year 2||Year 3||Year 4||Year 5|
|Expenditures from Operations|
|Subtotal Spent on Operations||22200||30800||36000||42000||48500|
|Additional Cash Spent||0||0||0||0||0|
|Subtotal Cash Spent||22200||30800||36000||42000||48500|
8.3 Opening Day Balance Sheet
|LIABILITIES AND OWNER’S EQUITY|
|Long Term Debt||35,000|
|Value of stock||65,000|
8.4 Break-Even Analysis
|Breakeven Sales =||50,000|
|1 – 60%|
= 125000.(Where Fixed Cost = 50,000AUD and Variable cost = 60% of Fixed Cost.)
9. REFINING THE PLAN
Refining the business plan of Organic Pabulums on the basis of various parameters is as follows:-
9.1 Raising Capital
- The amount of the loan taken of the band in 30,000 AUD. It is kept in the cash form as mentioned in the Balance Sheet. It is a long term debts from the bank which can even be paid back at any time.
- The investors include me as I have invested a major amount (Abrams, 2003). It also includes the funds raised from the NGOs and the Australian Government.
9.2 A Focus on the Type of Business
- In the manufacturing sector, high quality is maintained which leads to a big investment. Thus, initially the profit margin will be less which must be improved later by implementing the existing stocks.
- As soon as the profits will be reached, initiative will be taken to launch new products.
- Clint base is kept by proper customer support service (Dickey, 1994).
- Pricing is based upon the raw material cost and the processing cost keeping at least an appreciable margin of profit.
The entire report of the business plan of Organic Pabulums is hereby completed. Modifications for the betterments of the services or prospects of the company may be implemented at any instant.
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