School

by Organicsan Management Team

Business Plan

Business Name: Organicsan Incorporation

Co-founders: Man Fong, Hendrik Muskus, Princeton Oben, Hien Vu

Created on June 08th, 2020

Table of Content

I. Executive Summary page 02

II. Introduction page 03

III. Analysis of Business Situation page 10

IV. E-Commerce Operations page 15

V. Planned Financing page 21

VI. Conclusion page 27

VII. Bibliography page 29

VIII. Appendix page 30

I. Executive Summary

With a rise in economy, many households are left with more disposable income. This allows consumers the desire to trade up to more expensive products; organic, non-GMO, superfoods. This helps support industry performance. With an expected rise in per capita disposable income in 2020, a potential opportunity is opened for the industry.

Having an estimated 24.7% of the industry revenue in 2019 from Mondelez International, Kellogg, Campbell, and Barilla, small to medium sized companies still account for a significant portion of the industry accounting for 54.7% of the market.

One snack dominating the industry right now is edible nuts. They contain high-quality fiber, minerals, vegetable protein, oils, and vitamins, all vital for healthy functioning of the human body. According to the March 2020 USDA report, Vietnam is ranked number one in exporting tree nuts.

Organicsan, a US- based company founded by a management team with over 20 years of international operation and trading experience, was created in response to the emerging “health-nut” population. With an aim towards healthier lifestyles with gluten-free and organic snacks and nuts, they have managed to take over Vietnam’s position as the leading nut exporter.

Since early 2020, the founders of Organicsan have collaborated with a local organic farmer and its processing plant in Vietnam for cashews and macadamia nuts. In 2021, we plan to set up our first business office in Texas in hopes to partner with companies such as Amazon and Shopify to promote our organic products. We hope to one day sign contracts to wholesalers main distribution channels with large retailers. Organicsan plans to expand through localizing manufacturing operations to minimize costs while focusing on higher productivity by 2023.

Our objective is to obtain a $250,000 loan to enable us to begin operations with projected first-year revenue of US$2 million dollars, and then subsequently obtain a first-round investment amount in the amount of US$1 million in 2023 to fund capital expenditure and working capital for our product portfolio. We are projected to bring in revenue of US$2 million per year and grow at a strong annual compounded rate of 35%.

Our consumers would enjoy healthier snacks with organic ingredients, lower sugar consumption, fewer carbohydrates, and better control of the calorie intake whilst still enjoying a tasty, high-quality variety of snacks.

II. Introduction

1. Company value, vision, and philosophy

“San” in Japanese (さん), when talking about other people, is used as honorable titles after their name. It means all of "Mr", "Mrs", "Miss", and "Ms." Moreover, ”San” in Vietnamese (“sàn”) means a trading floor or an open market place.

Hence, “organicsan” means an open marketplace where organic farmers can communicate and deal directly with their organic end-consumers whilst saving middle-man costs and enjoying the true value of living healthy and sharing happiness. And that is the value of the Company.

Our vision is to bring more organic nuts and super seeds harvested from the organic farms to the tables of families around the world, enhancing the lives of these poor farmers by patronage and support while enriching the health of the world with organic snacks and making a profit in the process.

Our philosophy is to make a positive impact on the hearts and lives of people: farmers and consumers. We use food to fight illness, increase longevity, boost immunity, increase energy, and eventually being happier. For every product, we offer our customers, stakeholders, and partners happiness. Let’s all share the happiness with the Givers Gain® philosophy.

2. Company goals

In early 2020, the founders of Organicsan started working with one of the first organic farms and manufacturers in Vietnam to study the food processing of organic cashew nuts, macadamia nuts for export under global standards like USDA Organic and BRC Organic Certifications.

​Organicsan is going to build an E-commerce website and start its operation office in the U.S. in 2021 to engage in marketing & sales activities to promote its own brand for fire-roasted organic nuts.

Our initial goal in the first year is to start selling on reputable E-commerce partners like Amazon and Shopify. In long term, our goal is to sign contracts directly to wholesalers like Costco and main distribution channels with large retailers like Walmart, Kroger, Albertsons, Target, HEB, Wholefoods, and grocery stores like Amazon Go, 7-Eleven, Circle K.

By the end of 2023, Organicsan will develop its own brands for snacks production and promote it to the international markets by localizing manufacturing operations near the local organic farms in order to minimize raw material, logistics and distribution costs while focusing on higher efficiencies for gluten-free, organic snacks and other superfoods.

3. Products

All of our organic products are humanely and sustainably grown without any pesticides, herbicides, or chemical fertilizers. They are carefully harvested and processed to preserve delicate enzymes and nutrients. Free of preservatives, cashew nuts, and macadamia nuts are rich in vitamin B1 and manganese as well as magnesium, iron, potassium, vitamin B6, and healthy omega fats.

All raw products are being selected for grading, eco-fumigating, packaging, labeling, and exporting. Local processing factories also have color-sorting, x-ray, and metal detector machines under strict quality control. The raw products can be great for catering companies to add for trail mixes, stir-fries, and baked goods.

Here are the first key product items to kickstart in year 2021:

(1) Macadamia Nuts – Organic, Non-GMO, Gluten-Free, Dry Roasted

· Native to Lush, Macadamia Nuts are widely considered to be among the world's most distinctive and sought-after culinary delicacies. It is cherished for its unique flavor, exquisite texture, and nutrient profile, and become a wonderful source of nutrition.

· Packing: 4 oz, 7 oz, 14 oz, 1 lb., 2 lbs. in-shell or shell-off

· Pricing: starting from $2.5/oz for online retail price, free delivery for orders over $50. Our pricing is in the same category with high-end products from Hawaii & Australia

· Projected Profit Margin: 25% or more, dependent on product types and traded volume

· Organic Farm: Macca Dai Viet from Vietnam. See the appendix for details.

(2) Cashew Nuts - Organic, Non-GMO, Gluten-Free

Hand-Shelled & Fire Roasted, with/ without Honey / Himalayan Salt

· Pricing: starting from $1.2/oz for online retail price, free delivery for orders over $50. Our pricing is in the same category with high-end products from Africa & India

· Organic Farm: Organics & More from Vietnam & Indonesia. See the appendix for photos.

Raw, Certified Cashew Nut Kernels

· Grades: WW240, WW320, WS, LP

· Packing: Vacuum and carton boxes in 50 lbs., 25 lbs., 10 lbs.

· All raw products are being selected for grading, eco-fumigating, packaging, labeling and exporting. The local processing factory also has color-sorting, x-ray, and metal detector machines as quality control.

· Organic Farm: Organicsan from Vietnam & Indonesia. See the appendix for details.

1. Market Overview

According to the market research done by IBIS World 2019 Report by Yang (2019), the cookie, cracker, and pasta production industry have a low level of market share concentration, with the top four manufacturers - namely Mondelez International, Kellogg, Campbell, and Barilla accounting for an estimated 24.7% of industry revenue in 2019. The industry’s top players have international influences, with brands from all over the world. They engage in acquisitions frequently due to the extensive number of brands available in the industry, and the fast-changing nature of snacking trends. For instance, Campbell acquired Snyder-Lance in 2018 to expand its snack segment. Company management teams are adamant about trends, considering which brands need to be reinvented or dropped altogether. Small-to medium-sized companies still account for a significant number of players in the industry, with less than 20 employees like Organicsan, accounting for 54.7% market.

Looking at edible nuts imported into the US market, the total market size can be shown as below:

Source: USDA, Annual Foods Imports Report 2007-2017

The first-year target revenue, for 2021, is set at $2 million or equal to approximately 0.5% of existing total imports from Vietnam for cashew nuts and macadamia nuts.

The demand for cashew nuts keeps growing over time, mainly due to the trending habits of healthier eating, and many snack manufacturers import raw cashew kernels to mix with other super seeds or superfoods to make their snacks more appealing and healthier to consumers. Vietnam has kept its leading position in export in terms of both volume and import revenue during the last couple of years. With the latest policy of bilateral trade agreement between the US and Vietnam, the trade tariff for import edible nuts is exempted at zero import duty rate which enables the higher growth of this business segment. Out of $1.2 billion of current import revenue, we just set our humble target of $4.5 million a year which is equal to 0.4% of total imports from Vietnam.

Source: USDA, Annual Foods Imports Report 2007-2017

For macadamia nuts, the demand also keeps rising but at a slower rate compared to cashew nuts, because macadamia nuts are not as popular for mixing in with other snacks and much higher unit price of macadamia driven by its small supply around the world. However, in terms of nutrients, macadamia is considered the best nut or “king of the nut” which is proven excellent for people’s health compared to other edible tree nuts. Out of $66 million of current revenue from Vietnam, we set our initial target of $0.5 million which is equal to 0.7% of total imports from Vietnam.

2. Target market

For this business plan, our target is the export markets to North America. In terms of customers, we target the rising discretionary income families associated with a growing middle class.

According to the Mintel report of Snacking Motivations and Attitudes, nearly 94% of Americans snack at least once a day, with 50% of adults snacking two to three times per day. In response to the growing demand for industry products that can be consumed as snacks on the go, Organicsan plan to launch more single-serving or travel-sized packages of our products.

3. Target customer

Our ideal customers are those Generation X and Millennials who are prone to be on diets and need on a regular basis as repeated consumers. Also, we plan to partner with some influencers to target the right customer segment over different multimedia channels.

We also plan to go on long-term partnerships with wholesale buyers to increase our volume and increase access to their partner members who are also our potential repeat clients.

Our target customer groups can be described with the following demographic profile:

For consumers:

· Age: Generation X and Millennials

· Gender: both male & female

· Location: North American markets

· Income: Average income or higher

· Occupation: Preferably athletes, vegans, weight-watchers, health food nuts, millennials, children, cubicle-dwellers, and micro-influencers.

· Education level: Preferably high-school graduates or higher

For businesses:

· Industry: online e-commerce platforms, large retailers, grocery chain for health & beauty

· Location: North American markets

· Size: Minimum one FCL shipment (or equal to $120,000)

· Stage in business: well-established and growing

· Annual sales: Preferably 2 FCL shipments or higher

· Distribution type: both online and retailers

4. SWOT Analysis

The top four manufacturers - namely Mondelez International, Kellogg, Campbell and Barilla accounting for an estimated 24.7% of industry revenue in 2019. Small-to medium-sized companies still account for a significant number of players in the industry, with less than 20 employees like Organicsan, accounting for 54.7% market.

For Organicsan, we can envisage the following:

Strengths

· Product differentiation: Our own proprietary roasting process differentiates our products to remain competitive advantage in the marketplace. Both organic macadamia nuts and cashew nuts are hand-picked and roasted under our own proprietary roasting know-how that keeps the natural flavors and tastes to its full richness. Our products are widely considered to be the most recognizable and sought-after culinary delicacies in Asian countries and that’s why we are driven to bring it to the larger consumption market in North America. It has been cherished for its distinct flavor, exquisite texture, and nutrient profile, and become a wonderful source of nutrition.

· Supply contracts booked in place for cost-saving: With long-term supply contracts and a scholarship offered to organic plantation farmers, we benefit from reduced supply volatility and give back to the farmers’ community. Guaranteed supplies at pre-determined prices can minimize supply costs.

· Organicsan has strategic local partners from Vietnam and Indonesia, who deal directly on daily basis with organic plantation farmers to assure the best quality of products whilst negotiating for a reasonable sourcing price without adding on middle-man cost.

· Ability to adapt to change: farmers and producers can respond directly to changes in consumer preferences to remain competitive in the industry. Over time, with increased volume orders, we can also capitalize on economies of scale for lower production costs.

Weaknesses

· Brand recognition challenge would be considered as a barrier to entry to Organisan’s products as customers need to try out before they place orders on regular bases. We plan to firstly promote our products through online e-commerce platforms like Amazon, Shopify, and direct marketing Direct-to-Consumer (D2C) channels from our website.

· Considerable startup costs, especially working capital used for imports and inventory costs. This can be mitigated by starting off with small inventory quantities and gradually increase when sales pick.

· Given the startup status, it would take time to build up a credit line with the US commercial banks who we expect to seek for 70% financing for the trade credit line.

· High marketing costs, especially during the first year of operation as we may need help from experienced trade brokers who have access to large retailers like Costco, Walmart, and Kroger.

Opportunities

· Organicsan can directly access to leading local organic farms and processing plants which are qualified for USDA Organics.

· Opportunity for Organicsan to hedge export contracts to the local commercial banks for a credit line for advance payments to local farmers given the advantage of our term contracts with its corporate buyers. Normally, local vendors must deposit and pay in advance to farmers to reserve the right to buy and farmers are more comfortable to focus on their plantation.

· Chance to improve customer services: With the presence of our US-based office, our E-commerce platform can provide 24/7 online assistance and 800-direct-call to leave a message for our call-service team’s immediate follow-up. We also partner with FedEx and online delivery firms to offer the most suitable options for our end-consumers for online shipments.

Threats

· Organicsan would be exposed to more threats of a higher level of participation of the top leading players as well as fiercer competition in terms of price and delivery time by internal brands of large wholesale retailers like Costco or Walmart.

· The challenge to logistics management, specifically the storage and on-time delivery versus price fluctuation risk during the year. Naturally, organic nuts are seasonally harvested; and thus, it requires a well-planned procurement strategy to execute in line with local farmers and business partners who should commit to all key commercial terms in agreements signed with the Company.

· In the long term, if there will be more risks associated with the world recession caused by the Covid-19 pandemic and changes in the US government regulations about import duty tax applicable to edible nuts & snacks.

5. How to market our products

We prefer starting with both channels through large retailers and online. For online, we prefer applying Direct-to-Consumer (D2C) approach as we can control our products and ship our products directly to buyers without relying on traditional stores or other middlemen.

Short-term, we believe the D2C approach would help us to sell our nuts and snack products at lower costs than traditional consumer brands, and to maintain end-to-end control over the making, marketing, and distribution of products. Unlike other traditional retail competitors, D2C brands can experiment with distribution models, from shipping directly to consumers, to partnerships with physical retailers, to opening pop-up shops. There is no need to rely on traditional retail stores for exposure. We may compete by rethinking not just the product, but also the retail model.

With the key image of “sharing Happiness” for our brand, our marketing may include:

· Company website

· Social media marketing

· Email marketing

· Mobile marketing

· Search engine optimization

· Content marketing

· Print marketing materials (brochures, flyers, business cards)

· Public relations

· Trade shows

· Networking

· Word-of-mouth

· Referrals

6. Pricing

· Our pricing stays competitive thanks to direct sourcing with organic farmers in Vietnam

· With the “from farm to table” approach, we position ourselves as the value-added to end consumers by cutting irrelevant middleman costs and pass through it to consumers.

· Our pricing strategy reflects our pioneer positioning towards direct to consumer for snacks products

· Compare to competitors as shown in the Appendix, our unit price is still 20% lower

· We plan to offer more discount for repeated orders to build up royalty with customers

7. Distribution channels

For distribution, we will focus primarily on the following:

· E-commerce

· Direct sales via D2C channel

· Wholesale

· Retail Stores

· Outside sales representatives

Our initial plan is to start by using a reputable E-commerce partner to simplify the sales operations and give customers confidence in their purchase. The two main partners we use will be Amazon and Shopify.

However, it is our goal not only sell through Amazon and Shopify but also to go into strategic partnerships or key distributor relationships with US-based retailers in a long term who can take leverage on our direct sourcing capabilities in Southeast Asia for their better procurements, that would end up as another success factor in our success in the future.

a. Selling on websites:

In addition to promoting and selling the Organicsan nuts on our own website https://organicsan2020.wixsite.com/website, it will also be sold via Amazon and Shopify.

Selling on Amazon

We will set up as a professional seller on Amazon with the monthly unlimited sales plan that reduces Amazon commission costs compared to the per item sale commission. Selling through Amazon also includes credit card payment processing. We will also choose to use Amazon fulfillment service to simplify our initial operation and warehousing needs.

Selling on Shopify

We will also set up a Shopify online store and cart with the Shopify plan ($79 per month). It includes unlimited product sales, online support, and professional report. Shopify can also process online credit card payments and provides shipping discounts and shipping label printing services.

b. Operations Software

We will use QuickBooks online advanced service ($79 per month) for all business bookkeeping, accounting, inventory tracking, order fulfillment, and business analytics/ insights reporting. The QuickBooks advanced service also provides sales and business data import capability from Amazon and Shopify to streamline the operations. It can also process payments and generate invoices for customers.

c. Marketing

Our product will be advertised on Google ads, Facebook ads, and YouTube video ads as outlined:

GOOGLE ADS:

Google ads use a pay-per-click (PPC) model whereby we only pay when a prospective client clicks on the ad. The ads are shown when a potential client types in a keyword that we have chosen into the search bar. The keywords that we have chosen are nuts, snacks, organic cashews, organic macadamias, healthy snacks, vegan, nutritious, online snacks. These pertain to our model of selling healthy snacks and nuts online. Our audience is all of North America, and the target demographic is athletic, health-conscious, millennials, and people on a diet who are all prone to shop conveniently online. When leads type in these keywords, they will be shown the ad before their search results. The ad would look like this:

Clicking on the ad takes them to our website where they can shop conveniently online. We choose the $25 daily tier, which reaches an estimated 35,270 - 58,860 people and get 670 - 1,120 ad clicks per month

FACEBOOK:

Facebook ads are the other target medium of marketing. With almost 6 billion people on Facebook, it is a rich source of revenue. First, we created a page with contact information, website links, and posts to boost our online presence, and then choose marketing media that increase traffic to our website. Facebook ads target behaviors or interests that customers have indicated. So we choose keywords we associate within targeting our ads, such as: Athletes, Health-conscious, vegan, alternative lifestyle, pregnant, breakfast, diet, organic, millennial, cashews, macadamia, premium nuts, cheap, non-GMO, charity, sustainable, corporate responsible company.

Facebook Ad Preview:

Facebook ads are designed to achieve one or more goals of :

1. Automated ads- send visitors to our website.

2. Get more website visitors: $5 a day: 922-2.7K clicks per day

3. Promote our page: $5: 884-2.6K likes per day

4. Boost our posts: Increases a post’s views

5. Get more leads: $7 a day: 5-14leads/307-887 people a day

6. Get more button clicks- buttons take to our website. $5: 810-2.3K clicks per day

Being a brand new company, we would start off with all 6 media and fine-tune to narrow to the most productive avenues, for a total of about 7000 clicks per day and a cost of $30 per day or a budget of $900 a month.

The projected Facebook click-through rate is 0.016%

YOUTUBE AD:

Our ad is a quick video that shows our product. Our strategy is to place the ad before the videos that users clicked on based on their search, so they are taken to our website to shop and then also choose to appear on YouTube partner sites for maximum exposure.

Our target audience is North America and demographic is chosen as all ages and genders, and behaviors that users have indicated an interest in or searched for such as snacks, healthy food, nuts, party favors, and gift-baskets for such holidays such as Christmas, Easter or Thanksgiving. It sends them to our website where purchases can be made. Users cannot skip the ad.

It costs $5 a day, for a budget of $150 a month, and brings in 6K-10K impressions a week, meaning $3.3-$5.30 average cost per thousand impressions (CPM). The projected clickthrough rate is 0.02%.

d. Support

We will provide two main types of supports initially via email and chat room.

Email support allows customers to send questions on a purchase or return requests 24/7. An email response will be provided to the customer within 24 to 48 hours of response time.

Chat room support allows customers that prefer real-time interaction or immediate assistance. Customers can click on the chat room button on our website and get instant support. We will use the Chatbot service to provide chat room support. This AI-based automated chat room service provides interactive human-like conversation support instead of just online help. Chatbot pricing is from $50 to $500 per month upon the number of chat customers initiated.

e. Management Reports

As managers, we would want to see reports in two broad categories: Sales & Marketing, and Accounting and Finance.

Sales & Marketing

1. Sales Forecasts Budget Report(monthly): We would like to see the sales forecasts budgets on a monthly basis. These figures would help determine how much inventory we order from our suppliers. These sales forecasts are determined by industry trends and consumers’ attitudes towards our product, which would reference the attitudes towards snacks, diets and healthy foods. Our marketing efforts and results would also determine these numbers.

2. Actual Sales Reports (daily):

We would also look to see actual sales reports. These would be seen on a daily basis. Since this is a start-up, looking at sales would help us compare them to marketing efforts and look at which can be ramped up and which marketing channels can be retired. They would also help us determine if, for example, a marketing video has gone viral and we need to increase inventory immediately, or if we are in a slump and why that is.

3. Returns Reports (monthly):

We would look at reports of returns on a monthly basis. This would result in changing what caused the reason for the returns and adjusting such cause so that returns can be reduced.

4. Customer Service and Complaints Reports (daily):

The customer service department would provide daily reports of complaints and compliments, which we would review to see what can be fixed or optimized for maximum exposure and revenue.

5. Click-Through Rates (weekly):

Our social media channels of advertisement: YouTube, Google, and Facebook would be analyzed weekly to determine the clickthrough rates and effectiveness of the channel. Low CTR channels would be scrapped to reduce the cost of marketing and higher, more effective channels kept.

Accounting and Finance:

6. Inventory reports (daily):

Inventory reports would be examined daily to determine trends; if our business has hit a viral marketing campaign so that we don’t lose sales by not meeting demand.

7. Bank Account statements (weekly):

Our bank statement would be reviewed weekly to ensure that our expenses are accurate, no fraudulent or suspicious activity is taking place, or bounced checks from clients, or suspicious charges by vendors or suppliers, as well as reconcile our books.

8. Invoices (weekly):

Our invoices would be checked weekly to ensure that our vendors are billing us accurately and make sure that the right quality and quantity of merchandise is sent us.

9. Financial Statements (quarterly):

V. Planned Financing

1. Start-Up Expenses

Based on the likelihood of pre-orders and production capacity of local partners in Vietnam, this summary shows a high-level of sources of funds and uses of funds for the year 2021. With total capital source of $650,000 comprising $400,000 (or 61%) of owner’s equity and $250,000 (or 39%) of a bank loan. The bank loan is mainly used to invest in long-term assets such as equipment and machinery for production and the remaining disbursed to supplement the working capital with nuts inventory used as collateral for export purpose. Another note is that we also invest heavily in the D2C online platform that requires an upfront cost of about $70,000 since the beginning. As a result, total projected start-up expenses would be around $583,000 and founders also set aside another $100,000 which is almost 20% of total startup costs for contingencies given the potential downside of the market during this Covid-19 pandemic.

2. Opening Day Balance Sheet

The opening balance to start would be as minimum as $10,000 before applying for the incorporation license and all founders are expected to contribute up to their 100% commitment to reach the total equity of $400,000 before the Bank of America can disburse the loan of $150,000 for purchase of equipment and machinery and withdrawal of $100,000 as credit export loan from the local bank in Vietnam. Further details can be referred to the below Financial Plan for Balance Sheet and 12-Month Cash Flow.

3. Owner’s Investment and Collaterals for Loan

4. Financial Statements - Profit & Loss projection

Also known as an income statement or P&L, the 12-month profit and loss projection is the centerpiece of this business plan. Revenues are coming from main four items, roasted organic macadamia nuts in small-size packages for consumers, raw organic macadamia nuts in larger package size for wholesale importers, roasted organic cashew nuts in small-size packages for consumers, raw organic cashew nuts in bulk packages for wholesale importers and catering companies, and imported snacks and imported nuts from US market to be sold in Vietnam. All assumptions are based on the first-year sales target of $2 million in 2021 with a margin of around 32%.

Following the projected assumptions, Organicsan can break even after the first 6 months of operations and make a small profit with positive cash flow at the end of the first year.

5. Financial Statements - Cash flow projection

Organicsan has an asset-light strategy where we leverage on the serviced factory for immediate production and saving of set-up costs. We can reach the target of revenue over $100,000, then cash flow stays positive, specifically starting after the 6th month of the first year of operations.

Projected Balance Sheet

Balance Sheet stays healthy with debt-to-equity of 1.17 whilst short-term debt is used mainly for trade financing, and for the purpose of exporting products from outside into the US.

6. Break-even calculation

In order to recoup the investment cost, monthly revenue should be no less than $97,333. In another word, the US office must find ways to get into the sales channel of major retailers. Otherwise, the Company must focus on wholesale or importation of raw nuts at the beginning to reach the target of break-even at the end of the first year of operation in the US.

The company plans to raise $400,000 from the cofounders as equity, and raise $250,000 as loans from Bank of America and another US bank as a means to reach the $650,000 needed for startup expenses.

Repayment Plan

Based on the projected cashflow, the company is projected to reach positive cash flow after 6 months of operation. At that time, it will pay down the bank loans, while investing some of the profits back to the business. As the company grows and brings in more revenue thanks to expansion, more revenue will be raised to fund this growth. All debt will be paid down right away at a rate lower than the company’s returns. Year two is projected to bring in a profit of $450,000, which will be used to pay off the debt of $250,000 and provide a return on investment to equity funds and year three profit of $880,000 will be used to pay down debt to future investors and loans.

VI. Conclusion

In conclusion, our initial plan is to request $250,000 as a loan to enable us to build our operations. By end of the year 2023, we plan to raise another $1 million for 30.3 % equity (post-valuation of $3.3 million) after we have been operating profitably for 2 consecutive years. The extra funding will be used for capital expenditure (CAPEX) and new lab investment for Research and Development (R&D) of healthy, organic snacks. Please see above the breakdown details of 5-year projections and below how we spend an extra $1 million for our future operational activities.

Source: Projected business plan by Organicsan

VII. Bibliography

Kaplan, J.M., & Warren, A.C., (2016). Patterns of Entrepreneurship Management, 5th Edition. Wiley Publication.

Spacey, J. (2019, May 26). “4 examples of management reports”. Simplicable. Retrieved from https://simplicable.com/new/management-reports

Szanto, P. (2018, February 15). “How to promote your YouTube videos with Google AdWords”. Social Media Examiner | Social Media Marketing. Retrieved from https://www.socialmediaexaminer.com/how-to-promote-youtube-videos-with-google-adwords/

Tayenaka, T. (2020, June 20). “Your guide to creating and optimizing Facebook video ads”. Entrepreneur. Retrieved from https://www.entrepreneur.com/article/349719

The top 50 snack and bakery companies of 2016. (n.d.). Snack Food & Wholesale Bakery | Business Strategies & Solutions. Retrieved from https://www.snackandbakery.com/top-50-snack-bakery-companies-2016

Thompson, A. (2018, July 16). 10 major advantages of QuickBooks for your business. Paygration. Retrieved from https://paygration.com/10-major-advantages-of-quickbooks-for-your-business/

USDA. “US Food Imports.” Retrieved on June 06, 2020 from “https://www.ers.usda.gov/data-products/us-food-imports/

Zheng, Q. (2019, September). “Cookie, Cracker & Pasta Production in the US”. IBISWorld.

VIII. Appendix

Products

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