REVISED FRUIT JUICE BUSINESS PLAN COMPLETE

Executive Summary

Our business will be located in Ruaka area near Two Rivers Mall. The business will open from January 2019. We will build a reputation on offering the most nutritious, delicious juices and smoothies that are 100% natural with no artificial flavors or preservatives.

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We will provide an assortment of chilled fruit and vegetable juices and smoothies as well as healthy salads to a wide range of clientele. Initially, only the basics product will be offered regularly, new products will be introduced as the business grows. Every operation of the business including production and marketing will take place on this location. 

The demand for fresh juice and smoothies is continually growing, therefore, we intend to expand to new locations around the city and also create an elaborate distribution channel. The ultimate aim is to become a leading national brand in the healthy juices and salads industry in five years’ time. 

Our products will have a unique taste and quality such that our customers’ will keep coming back for more purchases. The business will ensure the highest standards of our customers’ needs. Our fruit juice bar will be customized. We want it to be a first class fruit juice shop with proper hygiene, courteous professionals and best quality products. The plans, process and structure that will be put in place will ensure that we are always the number one in the market.

Company Summary

Our company is a limited liability company registered in Kiambu County. It will be starting operations in January 2019. The idea is to reach as many customers as we possibly can by being where they are and promptly delivering to those who need our delivery services.

The target market for our fresh juice business is wide. Almost everyone loves to have some fresh juice.  The demographics of A Juice customers are as follows:

  • Young professional, age 25- 45;
  • Average  income of Kshs50,000;
  • Health-conscious people;
  • Shop in upscale health/natural food stores and understands that there is a link between high quality products great health and a higher price tag

Our smoothies bar will open daily from 7am to 8 pm. 

Market Analysis

Consumers understands that what they consume affect their general health and well-being. Therefore, they are making wiser health choices. Many consumers are willing to buy dietary supplements as well as weight-loss pills that are much more expensive than a single glass of fruit juice or a bowl of salad.

The typical middle- class living in Kiambu County consists of at least 4 people from one household. Total monthly spending on food and refreshment ranges between from kshs.20, 000 to Kshs30,000. Total expected sales if on a normal day 20 people buys our all of our 5 products at an average price of Ksh.200 would be Kshs20 000.

A need as well as a huge market exist due to increasing health awareness within the middle-class.

We looked at the following factors as determinants of the ideal location:

  1. Competition analysis:

As in any business, competition is to be expected. Our juice bar will need to be creative to become among the number one players in the industry. Our juice bar will build its strength in quality and the ability to deliver to customers in their homes and offices at no extra cost.

  1. Marketing strategy:

Everyone uses social media nowadays. We intend to take advantage of the social media platforms to reach and attract our customers. They include; Facebook, Instagram and WhatsApp. Other promotional methods are as follows:

  • Posters
  • Flyers
  • Loyalty and membership programs.
  • Word of mouth
  1. Pricing:

We intend to use the cost-plus method to determine the prices of our smoothies and salads. This method is popular within the juices and smoothies industry. Normally the product cost breakdown is 50% ingredients, 40% profit and 10% wages /salaries. However during the initial product development stage, exact prices could be set. In addition to setting exact prices, our products will be sold at a lower price during the first three months to encourage customers to buy into our products.

  1. Product:

To make the product development process shorter at the initial stage, our products flavors will be based on those of our competitors. This will also ensure high quality taste. However, this does not mean that the same fruits or vegetables will be used. Our main concern is the taste and the flavors. As the business grows we will use nutritional experts’ advice to come up with our own taste and flavors. Customers’ feedback will also be of importance when it comes to our products development. The following products will be offered:

  • Fruits and vegetable juices;
  • Lemonades;
  • Smoothies;
  • Fruits Salads;
  • Fruits and vegetables shakes.
  1. Product production:

Our products will be made using the best commercial grade juicers, blenders and smoothie machine. The price of these equipment including a freezer is around Kshs.75, 000. In order to ensure efficiency and ease of use, fresh fruits and vegetables will be frozen beforehand in airtight containers. The most popular products will be made every morning and displayed. This will save time, increase selling speed and also attract customers.

  1. Physical Environment:

Our physical environment will be designed in such a way that our customers finds it cheery and attractive. Our employee uniform and branding will also spread cheerfulness. 

  1. Management team:

The business is jointly owned by two brothers who own and manages other businesses separately. Their successes in starting and managing those businesses will be of great assistance when starting and operating this business.

  1. Personnel plan:

The personal plan would be as described below:

 There will hire be a manager, a human resource manager, and three personnel including a home and office delivery personnel.  Personnel will be hired on full time basis. An initial salary will be offered and will be increased annually once the business start making profits.  The monthly pay per employee is as follows:

  • Manager – Kshs15,000
  • HR – Kshs15,000
  • Chef – Kshs10,000
  • Customer attendant – Kshs10,000
  • Cashier – Kshs10,000

Each personnel will have a specific responsibility. However, there will be cross training such that every personnel can do other jobs as well as their assigned responsibilities in the event that there is a demand, or one is absence ,or demand is high. The personnel plan is as shown below:

year 1(Kshs.)year 2(Kshs.)year 3(Kshs.)
Manager180,000240,000300,000
HR180,000240,000300,000
Chef120,000180,000240,000
customer attendant120,000180,000240,000
cashier120,000180,000
Total600,000960,0001,260,000

Financial Requirement

This business will require an estimated Kshs.280, 000 before it is fully operational. This would cover for shop rent and deposit, business registration, shop customization and branding. Below is the financial requirement breakdown.

  • Business registration fee – Kshs5000
  • Cost of branding- Kshs15,000
  •  Cost of rent and deposit-Kshs40,000
  • Utility( water and electricity) deposits-Kshs5,000
  • Operational cost for the first three months – Kshs100,000
  • P.O.S machines- Kshs30,000
  • Cost of juicers-  Kshs40,000
  • Cost of freezers- Kshs25,000
    • Cost of tables and chairs- Kshs15,000
  • Miscellaneous-Kshs5000

 Financial Plan

Assumptions: The assumption is that during the first year of operation, 15 smoothies and juices will be sold each day. However, this number will increase as the business grows. The price of each product will also be increased after the business stabilizes. Most sales are assumed to be made during the peak hours than during the day. Weekends are assumed to be busier than weekdays since most people eat out especially on Sundays. Below is the income projection for the first three years.

Projected yearly income:

Profit and Loss yearly
Year123
sales2,730,0005,460,0007,280,000
operating costs728,0001,092,000910,000
overheads (rent, electricity, water)840,000840,000840,000
salaries and wages600,000960,0001,260,000
net profit562,0002,568,0004,270,000

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