ENTREPRENEURSHIP -6 Assignment "Financial Plan Final Draft" 2 Pin It W5 Assign

Purpose: FJFP’s objective is to provide 100% natural, healthy and very energetic 100% alcohol-free beverage that will add to daily nutrition intake of an individual and help in building immunity against diseases and sickness.

Mission Statement: Become a health drink symbol saving lives and promoting healthy lifestyles.

Vision: To create a trustworthy health food and beverage brand in enhanced beverage category and gain leadership position in its category by creating a niche coming years.

Core Values: 100% natural; No added flavors; Use of real fruits, herbs, and other natural products; Use of 100% recyclable materials; Work towards welfare of employees, consumers and society at large.

Goals: Provider of best quality healthy fruit beverage; Creating a highly trustworthy and dignified brand; 100% environmental friendly with zero carbon footprints.

Management Directory: Myself will the promoter Managing Director of FJFP Inc.

Scope of Work: FJFP will source 100% natural fresh fruits, herbs and other healthy products from multiple farmers. Manufacturing and blending will take place inhouse in a rented premise and deliver to distributors including food service operators.

Financial Considerations: My parents developed a good habit in me of saving every surplus penny for future and driven by this habit I have set aside half a million dollars for my business out of my total surplus. Remaining will be raised through PE Investors and Bank Loan. Investments will be made over a period of time with $60,000 of self funding in Year 1, $60,000 by way of borrowing from bank and $75,000 by way of Series A round of PE funding.

Company Name: Fresh Juicy Fruit Punch Inc. (FJFP)

Rational: World is ageing. Globally people are becoming health conscious and moving towards food and beverages which are healthy and contain more nutritional values. Share of carbonated soft drinks is declining in overall beverage consumption and proportion of healthy / enhanced beverage is growing and it is the fastest growing segment in the US and world is following the suit.

· RTD beverage market of the US is dominated by large Global Giants like Coca Cola, Pepsi, Cott & Dr. Snapple Conventional global leaders in carbonated soft drinks (CSDs).

· Consumer awareness, health concerns and preference for health drinks leading to declining in market share of CSDs in the RTD segment. Demand shifts are seen towards healthier options like organic juices, bottled water and enhanced beverages (still natural beverages).

· Larger F&B companies are adapting aggressive stance and seeking large transformational M&A deals to stay relevant in the market

· Strategic intent is to grow market share,

· Acquire mid-size new players which have an established product known for quality and a brand in niche high growth segment giving access to new consumer channels which later transformed into large size player using the distribution and financial muscle of Global Giants but not under their umbrella brands.

Plan Assumptions

1. First year of operation: January 1, 2015 onwards

2. Monthly Volumes = 2,000 Bottles in January

3. Month on month growth = 25%

4. Unit price = $5 per bottle

5. Sales made through commission agents = 30%

6. Commission to sales agents = 15%

7. Returns and allowances = 2.5% of gross sales

8. COGS = 30% of Gross Sales

9. Monthly Inventory = 120% of COGS

10. Capex

a. 4 Panel Vans of $10,000 each

b. Life of the van = 4 years

c. Salvage Value = $2,000 each

11. Staffing

a. Management Employees = 3 head count @ $2,000 per month

b. Administrative Staff = 2 head counts @ $1,250 per month up to June. 4 head counts from July onwards

c. Sales Team = 3 head counts @ $1,000 per month. 5 head counts from July onwards

d. Operations = 1 head count @ $1,500 per month

e. Other Staff = 2 head count @ $500 per month

f. Retainer = 1 head count @ $10 per hour

12. Marketing

13. Professional Services

a. Attorneys = $2,000

b. Accountants = $1,500

c. Management Consultants = $2,000

14. Capital Investment

a. Owner Funding = $60,000

b. Bank Loan = $60,000 for 2 years @ 3% p.a.

c. Series A round of funding from private equity = $60,000 in April

15. Miscellaneous Expenses

Monthly Break Even Sales

Year 1 (2015-2016)
January	$50,822
February	$46,906
March	$45,240
April	$44,485
May	$44,104
June	$43,818
July	$51,833
August	$51,735
September	$51,652
October	$51,582
November	$51,524
December	$51,480
Monthly Average	$48,765

First Year Ratios

(2015-2016)	Working Capital	Current Ratio	Quick Ratio	Cash Turnover	Debt to Equity	Return on Investment	Return on Sales	Return on Assets
1st Quarter	-$13,900	0.53	0.46	-2.59	-20.36	2612%	-188%	-135%
2nd Quarter	$18,026	1.60	1.38	3.90	1.29	-106%	-53%	-46%
3rd Quarter	$4,636	1.15	0.66	29.64	1.42	-23%	-5%	-9%
4th Quarter	$83,618	3.75	2.68	3.21	0.27	74%	31%	58%