Download - Ireland Startup Business Plan
Ireland: Healthy Breakfast Delivery
Prepared by Ksenia Udovitskaya and HSE MIB team
The product
WHAT WE OFFERWe offer a range of products either in standard sets or customized sets suitable for breakfast. All the products are healthy and with a high nutritional content that will provide with the right amount of energies and a good taste to start the day at the best.
Beans, Eggs, Potatoes, Mushrooms, Ham, Sandwiches, Cereals, Oatmeal, Mixed Nuts, Greek Yogurt, Eggs, Waffles, Protein Pancakes, Fruit, Honey, Croissant.
1) Choose your meal plan: standard or customizeda. 1 mealb. 4 meals per weekc. 7 meals per week2) Order and receive it at your address3) Eat and Enjoy!
Service Description: How it works
Uniqueness of the service:• Fresh, healthy and comes to your house on time• We serve only breakfasts and snacks• Very high quality foodCompetitive advantage: time delivery and fresh products at competitive prices
Service in a nutshell
Business model
Picking, that is sale of related goods or services together. This model is characteristic of the institutions of a fast food selling several separate dishes as lunches, our model gives the chance to order not only products of local preparation, but also fresh products from other countries (for example fruit)
OUR MARKET
Incidence of having Breakfast in the morning
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
82% 89% 86% 86% 90% 87% 90%
statista.com. Incidence of having breakfast in the morning in Ireland in 2016, by days of the week
87%
13%
Consumer Trends and Needs: healthy food• Healthy breakfast items are of primary
importance when shopping for breakfast items, with consumers looking to enhance their own health through food choices
• 23% of people have changed what they eat for breakfast recently, 60% of them making a healthier choice, 15% having a bigger breakfast.
Consumer preferences have changed towards healthy eating
Healthier choice
Having hot or cooked breakfast
Eating instead of tea/coffee
Bigger breakfasts
Breakfasts on the go
Breakfasts out of home
0% 10% 20% 30% 40% 50% 60% 70%
65%
26%
22%
15%
12%
10%
statista.com. Share of changes made by individuals in Ireland and Great Britain, 2016
Nutrition FactsPer 100g of product; all the figures are expressed in grams
Product Calories Fat Protien Carbohydrate
Almonds 575 49 21 22
Greek Yogurt
87 5 7 3
Oatmeal 307 5 11 56
Waffle 312 10 7 49
Trending food in Ireland (% of growth)
Gluten free bread
Protein shakes
Homemade sauces
Porridge Smoothies Yoghurt Honey0%
5%
10%
15%
20%
25%
30%
35%
40%37%
35%
31%
28%26%
24%
6%
Type of distribution 2010 2011 2012 2013 2014 2015
Store-Based Retailing 98,2 98,1 97,9 97,9 97,7 97,6- Modern Grocery Retailers 80,9 80,4 80,3 80,3 80,4 80,4
- Hypermarkets 2,8 2,8 3,7 3,7 4,4 4,6
- Supermarkets 64,6 63,9 62,9 62,7 62 61,4- Independent Small Grocers 6,5 6,4 6,4 6,3 6,2 6,2Non-Store Retailing 1,8 1,9 2,1 2,1 2,2 2,4
- Internet Retailing 1,4 1,5 1,6 1,7 1,8 1,9
Distribution of Health and Wellness by Format in Ireland Value 2010-2015
Consumer Profile• Demographic: male and female, any age, cities, any ethnicity
• Socioeconomic: students, workers, middle/high income
• Brand affinity: identify themselves as people who enjoy life, still keeping a balance.
• Psychographics: healthy and satisfactory lifestyle, active and sporty personality
• Generation: baby boomers, generation x and y, Millenium.
• Geography: main Irish cities (Dublin, Cork, Limerick, Galway, Waterford)
• Benefits sought: healthy food, time saved.
Internet retailing in Ireland by category
Apparel and
Footwear
Beauty and Personal
Care
Food and Drink
Consumer Electronics
Home Care Consumer Appliances
Media Products
Toys and Games
0100200300400500600700800
2010
2015
Forecast (2020)
euromonitor.com. Internet retailing in Ireland, Jan. 2016
Market size
• Almost 20% of the land is devoted to farming. • The staples of the Irish diet have traditionally been
potatoes, grains (especially oats), and dairy products.• €26bn turnover in the sector• €10.5bn worth of exports in 2014 to 120 countries• Half of exports by indigenous Irish companies• Destinations – UK 40%, rest of Europe 31%,
international markets 29%
Marketing Plan
Marketing budget Jan-17 feb-17 mar-17 apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 nov-17 Dec-17 Total
Branding € 3.600 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 3.600
Website € 4.010 € 10 € 10 € 10 € 10 € 10 € 10 € 10 € 10 € 10 € 10 € 10 € 4.120
Social media ads € 1.500 € 1.500 € 0 € 0 € 1.500 € 1.500 € 1.500 € 0 € 1.500 € 0 € 0 € 1.500 € 10.500
Content marketing € 2.000 € 1.000 € 0 € 1.000 € 0 € 1.000 € 0 € 1.000 € 0 € 1.000 € 0 € 1.000 € 8.000
Traditional marketing € 2.700 € 0 € 2.700 € 0 € 2.700 € 0 € 2.700 € 0 € 2.700 € 0 € 2.700 € 0 € 16.200
Events € 4.500 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 4.500
Total€
18.310 € 2.510 € 2.710 € 1.010 € 4.210 € 2.510 € 4.210 € 1.010 € 4.210 € 1.010 € 2.710 € 2.510 € 46.920
Marketing Channels
Local press
Social media
Online (display and contextual)POSM
Sponsorship
Services that exist in London and Vancouver
Benchmark Analysis of Prices
Product Vancouver London
Smoothies C$ 8 = € 5.5 £3 = € 3.3
Pancakes C$ 12.5 = € 8.6 £ 8.5 = € 9.4
The classic set C$ 12 = € 8.2 £ 6.25 = € 6.9
The French burger C$ 14.3 = € 9.8 £ 6.5 = € 7.2
Fruit plate C$ 12 = € 8.2 -
Our PricesProduct Price
Smoothies €4
Protein Pancakes (4 pieces) €3.50
The Classic Set €7.50
The French Burger € 7
Fruit Plate €5
Protein brownie € 3.50
Mixed nuts (50 gr) € 2
Greek yoghurt (150 gr) € 2
Porridge € 3
English breakfast: Low-fat sausage, 2 boiled eggs, beans, 2 whole bread slices, 1 tomato
€ 7
OUR SET
Porridge at choice• Porridge with cacao• Porridge with Greek
yoghurt• Porridge with honey• Porridge with milk• Porridge with fruit
Smoothie at choice• Energizing• Low-calories• Anti-oxidant
Sweet at choice• Protein brownies• Protein pancakes
€10
Operational Plan
Manufacturing Operations
Manufacturing is partially on us, but we are going to lease a restaurant’s kitchen when it will not be used, i.e. nights and early mornings, subcontracting the cooks.
We will entirely provide: • packaging• online order in website• punctual delivery
We are going to establish partnerships with local farmers and producers to provide our clients with genuine and natural products.
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New Materials Usage and PackagingSuppliers of new materials (Ireland)Scallan's Food Packaging, Du Pont, Paptic, Fispak (nnovative food solutions), Greenman Packaging
Key purposes of packaging• Protection in relation with tampering resistance, special physical, chemical,
or biological needs• Preservation of food temperature • Purchasing a large volume of materials for cost efficiency • Placing a logo on packages
Types of materials Aseptic processing (Greek yogurt, whole eggs), boxes (cereals, sandwiches, ham), bags (potato chips, mixed nuts), hot food carton (Noodle Box Style) (potatoes, scrambled eggs), square clamshell box (burgers, waffles), flexible package (mushrooms, beans, fruits, honey, croissant), pallets (package of the order-delivery)
Environmental new material replacing paper and plastic, recyclable and resource efficient
Material originating from sustainably managed forests. These products include our coffee cups, kraft take-away boxes, bakery bags and sandwich wedges.
Cost of Manufacturing the Product
Manufacturing cost Burger cost price (per product)
Direct material cost (products price, packaging)
Product price. Retail prices. Meat (100G) €1.0 + bread €0.3 + sauce €0.3, salad €0.2, tomatoes €0.2 = €2 (1)Packaging. Sugarcane square clamshell box €42 (200 units) = €0.21, carry bag (200 units) €18 = €0.09 per unit
Direct labor cost (salary, food preparation space rent)
Salary. Kitchen Chef €10.20 per hour (2)15 min. per dish = €2.5Newmarket Kitchen space rent €22 per week, €4.4 per day, €1 per hour = €0.4 (3)
Manufacturing overhead (wash-up, taking out the trash)
5% from a sum = €5.2 * 1.05 = €5.46Total (burger cost) = €5.46
(1)Tesco stores average prices(2) Payscale, currency converter(3) http://www.newmarketkitchen.com
Inventory usage. All unused products in the cooking process will be sent to underprivileged citizens.
Partnership
• Partnership contract with a delivery company (Delivery)• Partnership
contract with restaurants (Food Preparation)
Sharp Decrease in Costs•No investments and maintaince of equipment•Avoidance of the minumum required amount of working hours per employee
Raw Materials and Suppliers
• Farms• Large vegetable
warehouses• International
suppliers of fruit• Dairy farms
• Porridges• Fruit• Dairy products• Vegetables
Transportation
• Needs: on-time delivery
• Demand coverage from 6:00 to 11:00
• Partnerahip with Ubereats (average delivery time 34 min.)
• Semi-variable cost
LocationOperational Location: 3 restaurants respectively located
at South, North, and West of DublinThe restaurants will be rented from 5:30 to 11:00, 7 days
a week.
Administrative Location: in any office of DublinThe office will be rented as well all the hoursOffice Equipment will be bought (computers and
techological devices) and the rest will be a part of the rent (office furniture)
Costs
Fixed Costs• Rent office = 500€ per month• Utility = included• Internet & Telephone = 40€ per
month• Salaries = Freelance Lawyer 900€
per month, Data Analyst 900€ per month
• Asset Depreciation = straight-line depr. 10% per year
• Chef = 2000€ per month x 3• Kitchen space rent = 90 € per month
x 3• Office Equipment = 80€ per month
Variable Costs
•Cost of Good Sold = 35% of Revenues
•Taxes = 12.5% of EBT
Semi-variable Costs
•Delivery = fixed part and variable part (to negotiate)
Organizational Plan
Our business will be a private limited company (Ltd), the business is a separate legal entity than the owners. The owners and managers are only liable for the business up to the amount they have invested in the company and are not liable for the debts incurred by the company unless they have signed a personal guarantee.
The company must be registered with the Companies Registration Office (CRO) and the company reports and accounts must be returned to the CRO each year. The shareholders' liability, should the company fail, is limited to the amount, if any, remaining unpaid on the shares held by them.
http://www.citizensinformation.ie/en/employment/types_of_employment/self_employment/setting_up_a_business_in_ireland.htmlhttps://www.cro.ie/Registration/Company
BUSINESS FORMAT
EEA and Swiss nationals do not require a business permission to establish a business in Ireland and they do not require a visa to visit, travel to, live or work in Ireland. Non-EEA nationals can establish a business in Ireland but they require permission to do so.
If you are not from EU, you should apply for a business permission. This is a written permission from the Minister for Justice and Equality that allows you to establish and engage in a business in Ireland for a certain period. If you are applying for a business permission to start a business in Ireland, you must meet the following strict criteria:• You must have at least €300,000 of your own money to invest in business in Ireland.• Your business must create employment for at least 2 Irish or EEA or Swiss nationals or at least
maintain employment in an existing business• Your business must add to the commercial activity and competitiveness of the State• Your business must be a viable trading concern and provide you with sufficient income to
maintain and accommodate yourself and any dependants without resorting to social assistance or paid employment for which a General Employment Permit would be required
NON-RESIDENT IN IRELAND
Source:http://www.citizensinformation.ie/en/employment/types_of_employment/self_employment/coming_to_set_up_a_business_in_ireland.html
How much statutory redundancy pay you get
The amount of statutory redundancy pay you can get depends on several things:• how long you've worked for your employer• your age• your weekly payYou have the right to:• half a week’s pay for each complete year of employment when
you were below the age of 22• a full week’s pay for each complete year of employment when
you were between the ages of 22 and 40 inclusive• a week and a half’s pay for each complete year of employment
when you were aged 41 or above
Salaries in Ireland
Minimum salaries:• Experienced adult worker €9.15 per hour• Over 18 and less than 2 years since first job €8.24 • Over 18 and less than 1 years since began first job
€7.32 • Aged under 18 €6.41
Average salary:• Individuals in the Republic of Ireland have an annual
gross income of €26,800
Salaries for our employees
Freelance Lawyer = €900 Data Analyst = €900
Chef = €2000
+1 Chef from October
In Ireland there is an income tax, a value added tax (VAT), and various other taxes. Employees pay pay-as-you-earn (PAYE) taxes based on their income, less certain allowances. The taxation of earnings is progressive, with little or no income tax paid by low earners and a high rate applied to middle to top earners, the top marginal rate of tax (including USC and PRSI) is 52%. However a large proportion of central government tax revenue is also derived from VAT, excise duties and other taxes on consumption. The standard rate of corporation tax is among the lowest in the world at 12.5%.
TAXES
Which taxes must the business pay?Where an individual carries on business as a sole trader, he or she is
obliged – under the self-assessment Pay & File system – to pay Income Tax, PRSI and USC on the profits of the business (as adjusted for tax purposes).
In addition, the sole trader must submit to the Revenue Commissioners monies due under the PAYE system, the VAT system and the Relevant Contracts Tax system (as appropriate).
Where two or more individuals carry on business in partnership, then each partner is obliged – under the self-assessment Pay & File system – to pay Income Tax, PRSI and USC on his or her shares of the profits of the business (as adjusted for tax purposes). In addition, the partnership must submit to the Revenue Commissioners monies due under the PAYE system, the VAT system and the Relevant Contracts Tax system
Where the business is carried on via a company structure, then the company is obliged – under the self-assessment Pay & File system – to pay Corporation Tax on the profits of the business (as adjusted for tax purposes). In addition, the company must submit to the Revenue Commissioners monies due under the PAYE system, the VAT system and the Relevant Contracts Tax system
Financial Plan
Year 1 January February March April May June July August Sept Oct Nov Dec Total
No of orders 300 600 700 800 900 900 900 900 1000 1000 1000 1000 10000
Total Income €3000 €6000 €7000 €8000 €9000 €9000 €9000 €9000 €10000 €10000 €10000 €10000 €100000
INCOME EXPECTATIONS 2017
• Cost of 1 meal = €10 • We expect 300 orders first month and 1000 orders per last month of a
year as we will have a massive promotion on the website and in social networks.
• From February the amount of clients will increase constantly
PROFIT AND LOSS STATEMENT (2017)
• Manufacturing cost per product = €2.2• We plan to purchase packaging wholesale (3000 items once) and the rest as required. Price per meal
= 0.09. • Delivery driver wage = €10 per hour. He can handle 2.5 orders per hour. 1 order = €4. One order can
include 3 meals. • Salaries and Wages = Freelance Lawyer €900, Data Analyst €900, Chef €2000. (+1 Chef from October)• Marketing (1th month): website creation, branding, social media, content marketing, traditional
marketing), support in the subsequent months
PROFIT AND LOSS STATEMENT 2017-2020
No of sold items: 2018 = 20000, 2019 = 30000, 2020 = 40000Marketing budget from volume of sales = 46% (first year), 27%, 20% and 18% in the next yearsBreakeven point in 2019
Bank Loan
€100,000.00
7 years
Bank of Ireland
Business Loan
6%
1 2 3 4 5 6 7Tot.5,000 7,000 18,000 19,000 19,000 19,000 19,000 106,000
Bank Loan
2017 2018 2019 2020 2021 Operations
Profit (loss) (64,801.00)
(724.04) 42,317.00 68,797.00 70,860.91
Add-back deprecitaion 204.00 204.00 204.00 204.00 204.00
Inventory (3,000.00) (5,000.00) (9,000.00) 10,000.00 11,000.00
Changes in AR - - - - -
Changes in AP (2,000.00) (5,000.00) (8,000.00) (8,800.00) (9,680.00)
Interest (5,000.00) (5,000.00) (18,000.00) (19,000.00) (19,000.00)
Net Cash from Operations (74,597.00) (15,520.04) 7,521.00 60,001.00 63,064.91 Investing
Sale of equipment - - - - -
Purchase of equipment (1,500.00) - - - -
Net Cash from Investing (1,500.00) - - - -
Financing
Dividends - - - - -
Borrowing 80,000.00 20,000.00 - - -
Net Cash from Financing 100,000.00 - - - -
NET CASH 3,903.00 4,479.96 7,521.00 60,001.00 63,064.91
Cash Beg (64,801.00) (724.04) 42,317.00 68,797.00 70,860.91
Cash End. (60,898.00) 3,755.92 49,838.00 128,798.00 133,925.82
Monthly Cash Flow 2017
DCF €891,103.70
Discount Factor (1/1+0.02)
TV
€7,195,236.36
Total Value €8,086,340.05
Discounted Cash Flow 2017-2027
Executive Summary
Healthy Breakfast delivery is a service based in Ireland.
Consumers in Ireland are getting more aware of the importance of a healthy breakfast but don’t have time to prepare it or to go to a cafè.
We will provide a quick delivery of healthy products and fresh fruit at competitive prices
Healthy Breakfast delivery is a service that will provide clients with healthy and ready-to-eat breakfast, which is one of the most important meals of the day. Our service will help people stay healthy and fit.
Nowadays 65% of Irish population is switching to healthier choices for breakfast, the most trending food are the healthy ones (gluten-free bread, porridge, smoothies, etc.)
We are five business students passioned about healthy lifestyle and we aim to make people’s lives better
Executive Summary
The company plans to build a strong market position in Dublin, due to the mild competitive climate in the area and the arising interest in healthy and organic food among the citizens of Dublin
Our primary strategy is to develop a strong and sustainable healthy breakfast delivery service as a convenient and cost-effective alternative for a restaurant or home cooking.
Exit Strategy: to sell for amount > tot. value
The breakeven will be reached after 2 year
Thank you for your attention!
If you have any questions please contact me: [email protected]