fruits in chocolate

7/27/2019 Fruits in chocolate

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Business DescriptionWe create chocolate dipped fruit arrangements to bring happiness in all lifesoccasions.

Our purpose is to start up with a production point and online sales to direct

customers and to the corporate sector.

We address to:

B to B (business to business) - gifts/ events/ catering

B to C (business to clients) gifts/ events


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1. Business DescriptionGoals and Milestones

Opening the first shopping pointin a wealthy area with a highly

purchasing potential within a year Ex: Old Center area

Building a local

shop network witha national franchisesystem

Finding a way to automate theprocess

Creating a massproduct: packeddipped chocolatefruits


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2. Products and ServicesProducts:

Fresh dipped chocolate fruit

arrangements:

- advantages: premium product,

sophisticated, impressive, unique- For special events: weddings/ birthday

parties (custom arrangements)

- Gifts

Packed dipped chocolate fruits:- advantages: affordable, easy to

transport, elegant

- Gift boxes for special people (direct

customers & corporate)


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2. Products and ServicesServices:

- Customers have the possibility to choose some of the ingredients, the

toppings, the products design ideal for corporate gifts/ weddings etc.

- Delivery services (custom products and messages) ideal for specialdays (ex. Valentines Day/ 8th of March/ Easter/ Christmas etc) and

birthdays

Customers are attracted by:

- The innovative idea

- The freshness of the fruits

- The thought of eating a healthy sweet ( a easy way to convince children

to eat fruits and avoid heavy sweets)


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3. The Marketing and SalesA. Market Research and Analysis

Direct Competition

Chocolate Fruits Arad

Indirect Competition

Pastry Shops

www.aranjamentefructe.ro

www.beautiful-decor.ro

www.buchetedelicioase.ro

adrianareteteculinare.blogspot.ro

Pastry Shops from HoReCa system

Secondary Market

Direct Customers

Market testing

We had a positive feedback from the people we invited to taste our products.

We reached a high number of likes on our Facebook page.
http://www.aranjamentefructe.ro/http://www.beautiful-decor.ro/http://www.buchetedelicioase.ro/http://www.buchetedelicioase.ro/http://www.beautiful-decor.ro/http://www.beautiful-decor.ro/http://www.beautiful-decor.ro/http://www.aranjamentefructe.ro/


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3. The Marketing and SalesB. Competition

Strengths

First company to prepare very well thelaunch (advertising), can be positionedas the first on the market

Innovative design

Continuous feedback from consumers

Weaknesses

Budget

Keeping products fresh solutions withimpact on the number of delivered

orders

Opportunities

Increasing demand for new andinnovative products as gifts

Increase in online eCommerce

Threats

Idea, devices and human resources canbe replicated

Request for product exceedsproduction so other competitors cansatisfy it

Mechanism for keeping products fresh

can be very expensive

SWOT


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3. The Marketing and SalesC. Selling to the Market

Advertising

Online communication through own site and online advertising (Google

AdWords and Facebook Ads)

Social networks (Facebook, Twitter, Pinterest, eForums etc.)

Glass cases placed in Business Centers

Stickered Cars Packaging

Public Relations

Organizing special events

Media Releases, Articles in newspapers and magazines that fit the profile

Blogging

Night club, weddings sampling

Delivering the goods and services

In maximum 48 hours since receiving the orders confirmation

(recommended: directly from the production point to the final consumer)


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3. Marketing Buget

Type of expense Cost w/o VAT

Website (online eShop) development 10,000.00

Social Media management (12 m budget) 3,600.00

Feedback processing (12 m budget) 3,000.00

Rent for Glass cases placed in Business Centers

(30 centers at EUR 200 rent for periods of 2-3

days)

6,000.00

Print advertising (500 eur/month for first 6

months; EUR 200/month afterwards)4,200.00

Fairs -6 /year; EUR 700 / fair 4,200.00


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OperationsLocation Facilities:

- Special equipments (refrigerated display case at the production point)

- Production point - situated in a central/semi-central location in Bucharest

Suppliers:

- Fresh fruits suppliers

- Chocolate suppliers- Packaging suppliers

Transportation Factors:

- Two delivery cars with a cooling system providing the appropriate temperature

in order for the products to maintain their freshness

Quality Control:

-We will collaborate only with suppliers that can ensure us about the products

term of validity

Labor supplies:

- We will employ only qualified people to whom we will offer all the conditionsand appropriate facilities in order to maximize their work


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5. Operations BugetType of expenses w/o VAT

Company's set-up costs and authorizations 1,500.00

Fit-out cost of the production facility

(refurbish, refrigerator display case) 10,000.00

2 Delivery cars with refrigerators in

operational leasing / EUR 30,000 acquisition

price; 594 / monthly installment

Cooler for events and promotion 6,000.00

Rent for the production space / month 1,000.00


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6. Management &HRManagement : one manager( one of the shareholders)Education& Experience EMBA graduate; experience with otherbusinesses developed in marketing and in online sales

EmployeesProduction - 5 employees, out of which 2 qualified and with relevantexperience and 3 with minimum experienceDrivers 2 employees with experience in a similar jobEducation - Secondary education

In peak periods (Winter Holidays, Valentines Day, March) temporaryproduction employees


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6. Management &HR

Legal Structure: SRLPeople: 1 manager, 2 drivers and 5permanent production employeesReward/compensation : salariesand bonuses for employeesManager no salary

Organizational structure

Manager

Drivers Production


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COSTS BUDGET

Type of expenses

Recruitment and initial employment expenses

(medical tests, PSI training, uniforms, etc.) 1,000

Gross Salaries - drivers 2X 500/month

Gross Salaries - Workers - qualified 2X 1,000month

Gross Salaries - Workers - unqualified 3X 500/month

Christmas and Easter bonuses (vouchers) 1,000/year

Temporary employees in December, February and

March 2X500/month


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7. Financials

Max capacity -

units/day Average orders -units/day Price/unitwith VAT COGS/unitwith VAT GrossMarginFruit box 96 48 10.00 3.72 63%Fruit arrangements 48 24 25.00 5.35 79%

Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 1

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-1

Net cash end of period before VAT (42,180) (7,907) (4,720) (82) 9,195 9,195 9,567 17,664 8,699 23,933 14,882 9,567 8,699

Net cash cumulated before VAT (50,087) (54,807) (54,888) (45,693) (36,498) (26,931) (9,268) (569) 23,364 38,246 47,813 56,512

VAT payable 627 1,254 2,508 5,017 5,017 5,017 9,406 5,017 9,406 9,406 5,017 5,017

VAT deductible 7,680 1,286 1,297 1,653 2,366 2,366 2,294 3,710 2,462 3,710 3,710 2,294 2,462

VAT credit/debit 7,680 8,339 8,382 7,527 4,876 (2,651) (2,723) (5,697) (2,555) (5,697) (5,697) (2,723) (2,555)

Net cash after VAT cumulated (50,087) (54,807) (54,888) (45,693) (39,149) (29,654) (14,964) (3,123) 17,667 32,550 45,091 53,958


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P&L 1 year

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1

Jun-13 Jul -13 Aug-13 Se p-13 Oct-13 Nov-13 De c-13 Jan-14 Fe b-14 Mar-14 Apr-14 May-14

Real orders

(% of Capacity) 10% 20% 40% 80% 80% 80% 150% 80% 150% 150% 80% 80%Fruit box - Units sold 144 288 576 1152 1152 1152 2160 1152 2160 2160 1152 1152 14,400

Fruit arrangments - Units

sold 72 144 288 576 576 576 1080 576 1080 1080 576 576 7,200

Fruit box - Sales 1440 2880 5760 11520 11520 11520 21600 11520 21600 21600 11520 11520 144000

Fruit arrangments - Sales

revenues 1800 3600 7200 14400 14400 14400 27000 14400 27000 27000 14400 14400 180000

Total sales 3240 6480 12960 25920 25920 25920 48600 25920 48600 48600 25920 25920 324000

Fruit box - COGS 536 1071 2143 4285 4285 4285 8035 4285 8035 8035 4285 4285 53568

Fruit arrangments - COGS 385 770 1541 3082 3082 3082 5778 3082 5778 5778 3082 3082 38520

Total COGS 921 1842 3684 7367 7367 7367 13813 7367 13813 13813 7367 7367 92088

Salaries 4500 4500 4500 4500 4500 4500 5500 4500 5500 5500 4500 4500 57000

Utilities

(electricity,water) 300 300 300 300 300 300 300 300 300 300 300 300 3600

Gas 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

Marketing 2170 1302 1302 1302 1302 930 1798 1798 1798 1798 930 1798 18228

Operational profit -5651 -2464 2174 11451 11451 11823 26189 10955 26189 26189 11823 10955 141084

Outsourced accountant 372 372 372 372 372 372 372 372 372 372 372 372 4464

Utilities (internet,phone) 50 50 50 50 50 50 50 50 50 50 50 50 600

Rent 1240 1240 1240 1240 1240 1240 1240 1240 1240 1240 1240 1240 14880

Leasing cars 594 594 594 594 594 594 594 594 594 594 594 594 7128

Total overheads 2256 2256 2256 2256 2256 2256 2256 2256 2256 2256 2256 2256 27072

Profit before tax -7907 -4720 -82 9195 9195 9567 23933 8699 23933 23933 9567 8699 114012

Income tax 0 0 6269 9050 18242

Net profit -7907 -4720 -82 9195 9195 9567 17664 8699 23933 14882 9567 8699 95770


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Conclusions

Positive cash flow after 3 months

Initial investment recovered in less than 1 year

Sales after 1 year of EUR 325,000

Net profit after 1 year of EUR 95,000

Rate of return after 1 year 169%

Financial requirments Proposed financing

Initial investment(set-up costs,

web site, fit-out and

equipments) 42,000 Owners's equity 57,000

Working capital (first 3 months) 15,000

Total needs 57,000 Total financing 57,000


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8.Risks and RewardsRisks

Low entry barriers risk of competition

Action plan

- be the first on the market

- use marketing to obtain fast awareness and market share

- create a brand

- develop relationship s with customers (corporate clients, retailers, hotels)

- be ready to expand production capacity

- expand through shops network

- focus on quality and service (on time delivery)

Operations failure not able to timely respond to orders

Action plan

- Use flexible workforce (part time) in case of overloads

- Increase workforce in peak periods (Winter Hollydays, Valentines day, March)

- Increase production facility easily duable due to low initial investment required

- Management system of orders min 1 day for a delivery; min 2 days for large orders;prioritize loyal customers

fruits in chocolate

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