Running head: FRUITY ENTERPRISES 1

Fruity Enterprises

Student’s Name

University Affiliation
FRUITY ENTERPRISES 2

Table of Contents

1 Executive Statement.....................................................................................................................3

1.1 Business Overview.................................................................................................................3

1.2 Financial Overview................................................................................................................3

1.3 Vision Statement....................................................................................................................4

1.4 Business Objectives...............................................................................................................4

2 Market Analysis............................................................................................................................4

2.1. Market Research...................................................................................................................4

2.2. Type of Customers................................................................................................................5

2.3. Types of Products and Services............................................................................................5

2.4. Marketing and Promotion.....................................................................................................6

2.5. Main Competitors.................................................................................................................6

2.6. Key Suppliers........................................................................................................................6

3. Financial Projections...................................................................................................................6

3.1. Direct Costs and Overhead Costs..........................................................................................7

3.2. Fixed Assets..........................................................................................................................7

3.3. Investments...........................................................................................................................7

4. Start-up Costs and Funding.........................................................................................................7

References........................................................................................................................................8
FRUITY ENTERPRISES 3

Fruity Enterprises
1. Executive Statement

1.1. Business Overview

Fruity Enterprises is a new business that aims to offer fresh fruits and fruit juice prepared

locally with a tasty natural flavor. We hope to build up a fruit and juice kiosk that will provide

the freshest and tasty fruits and various kinds of fruit juice that are locally prepared. We plan to

source all our ingredients from fruit vendors who purchase fruits directly from farms.

We will prepare our juices on site to ensure our customers get the freshest juices with its

natural flavor possible. With a keen focus on specific farmers and growers, we plan to

personalize their producers to give our juices a unique taste and flavor. We will allow customers'

juice creations to be rated by other customers so that we have as many blends as possible.

1.2. Financial Overview

We have a forecasted annual net profit of $10,512 by the end of the first year and an

additional $16,183 and $37,714 in the second and third years respectively. We require an initial

investment of $13,000, and we have a current investment of $8,000. We are looking forward to

an additional $5,000 to get started.

We hope for expansion of the business by 10% after every three months. I have

forecasted booming sales in the first year with promising improvements into year two and year

three. Year 1 sales are forecasted at $54,578 based on a slow development of the business

through capturing more customers every month. I base these forecasted figures on the preference

to purchase an area, putting other factors into considerations such as football games on the main

street and being able to get more customers from my competitors. To make sure that the working
FRUITY ENTERPRISES 4

capital available is consistently sufficient in the first year, the only minimum amount will be

drawn from the business.

1.3. Vision Statement

To be the best fruit and fruit juice vendor shop in the county and be renowned for

providing quality local foods and supporting farmers and growers. This can be achieved by

providing customers with quality fruits and juices at competitive prices.

1.4. Business Objectives

Our short term objective is to strive and grow the business by at least 10% after every

three months, with total sales of $54,578 in the first year. This will require selling 20 liters of

fruit juice and 60 kilograms of fruits. I plan to continue growing my business in years two and

three and expand the outlets in the region as I look forward to winning Young Entrepreneur of

the Year.

There are two colleges in the nearby, and new offices are being built up in the area. My

kind of service to customers is unique in the area, and a recreation center is very near to my

premises. There are other similar premises in the area close to the premises; therefore

competition is going to be stiff. I need to make sure that we deliver on quality and attractive

price every time as a way of surviving the competition.

2. Market Analysis

2.1. Market Research

I conducted a market research that has enabled me to validate my business idea with an

appropriate approach. The US juice vendor market is a promising industry whereby taking of

fruit juice is a center of everyone's daily routine to supplement the body with vitamins.

I have selected a prime location that has sufficient recreational and sports activities and

businesses that will support the juice vendor shop. I have critically priced the products to ensure

that we remain competitive and profitable enough in the market. This implies that we have to

offer something unique that is different from the competition. I have researched on the number of

people of who take juice during the day and away from home and their tastes on various blends

with corresponding prices. This informed has helped me in pricing and blending decisions. I

have also analyzed the number of customers my competitors serve in a day.

The premises are located on the high street. The area is a business complex, housing a

large of a number of different organizations including two colleges and various business offices.

It also has good local transport links including railway and bus stations.

2.2. Type of Customers

Most customers work, study or live in the local area and visit high street to buy locally

prepared juices for refreshments after or before a meal. The majority of them are aged between

16 and 50. Morning customers purchase a glass of refreshing juice between 9.00am and 12noon

at an average price of $1.5. Afternoon customers purchase a glass of juice between 2.00pm to

5.00pm.

2.3. Types of Products and Services

The juices are locally prepared without the industrial toxins, and they are offered at

competitive prices. We mix and create authentic and tasty juices according to the customer
FRUITY ENTERPRISES 6

preferences. My businesses also offer cakes, sandwiches, bread and crisps as accompaniments to

juice. We also offer other soft drinks to provide a variety from which customers can choose

from.

2.4. Marketing and Promotion

There will be an announcement of the opening of the vendor shop as a unique venture in

the area. Use of posters will be necessary to inform customers about the different products

offered and how the venture will be supporting other local businesses. There will be launch

events that shall involve tasting sessions in the high street. Leaflets will be dropped in the local

residence and businesses.

2.5. Main Competitors

A local supermarket and four other similar shops in the area are the main competitors.

Most of these premises are well known in the area and offer competitive prices in an attractive

environment. A common weakness among them is that they don't solely focus on fruit juice, and

they don't open early in the morning. My business will concentrate so much on the freshness

factor and outside catering.

2.6. Key Suppliers

I conducted research into different suppliers and checked their pricing, reliability in

supply and credit terms. I had to visit each supplier first hand to make sure their fruits meets the

intended standards. After double checking their consistency in quality with their customers, I

identified two main suppliers of fruits; The Green Fruits and Harbor Farm. Am looking for an

alternative supplier to act as a caution against unreliable supply.

3. Financial Projections

From the first month, I have forecasted to sell 20 liters of juice and 60 kilograms of fruits

per day and expand the business with at least 10% after every four months. I aim to sell 50 liters

of fresh juice and 100 kilograms of fruits by the third year. Concerning difficulty in forecasting

the number of sales per each type of juice blend and fruit type, I have simply taken the average

prices for forecasting.

3.1. Direct Costs and Overhead Costs

To be able to forecast the costs of selling each type of fruit and juice blend I have worked

out the average cost of selling each type of fruit, juice blend and other accompaniments like

bread, cakes etcetera. Accompaniments will be bought when readymade and in large quantities

to cover costs. Overhead costs will cover wages, electricity, rent and water bills.

3.2. Fixed Assets

The business will have a range of fixed assets which will be bought at the start up. These

will comprise of items fruit preparations such as blenders, refrigerators, and fridge displays.

There's also a need for till system, security shutters and burglar alarm.

3.3. Investments

I have an initial personal investment of $8,000 which will be used as the start-up costs to

commence the business. I’m looking forward to raising the additional requirement of $5,000

through loans and grants from family members and friends. I have already approached friends

and family members for the additional finances required.

4. Start-up Costs and Funding

A large part of the start-up cost will be required in refurbishing the premises and in the

purchase of necessary equipment to get started and to run from day one. Blenders, refrigerators,

and display equipment are most needed pieces of equipment for us to get started. Other than the

fixed asset investment required, I need to purchase a substantial amount of stock. The current

startup cost is $13,000, and I have already made a personal investment of $8,000. Therefore, the

business requires an additional $5,000 to enable it to get started. I am hopeful that a combination

of grants, loans from family and friends will enable get the deficit amount for a start-up. Outside

investments and loans from financial institutions are also part of the alternative sources of the

deficit fund for the commencement.

References

Chen, X., Yao, X., & Kotha, S. (2009). Entrepreneur Passion And Preparedness In Business Plan

Presentations: A Persuasion Analysis Of Venture Capitalists' Funding Decisions.

Academy Of Management Journal, 52(1), 199-214.

http://dx.doi.org/10.5465/amj.2009.36462018

Mason, C., & Stark, M. (2004). What do Investors Look for in a Business Plan?: A Comparison

of the Investment Criteria of Bankers, Venture Capitalists and Business Angels. Int Small

Bus J, 22(3), 227-248. http://dx.doi.org/10.1177/0266242604042377

Honig, B. (2004). Institutional forces and the written business plan. Journal Of Management,

30(1), 29-48. http://dx.doi.org/10.1016/j.jm.2002.11.002

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Business Finance | ACCA | ACCA Global. Accaglobal.com. Retrieved 12 November

2015, from http://www.accaglobal.com/zm/en/business-finance/business-plans/example-

plan.html