Business Plan Juzon juices Erika M VHS Entrepreneurship Session: April 2007
1.What is Juzon? JUZON is the union of: JUICE & AMAZON Juzon is an exquisite natural juice made of exotic fruits from Amazon (Peru) The juice ingredients provide a good source of vitamins and antioxidants
My products are made for any person but will be more appreciated by adults Juzon can be purchase in supermarkets or healthy stores The company objective is to maintain the products taste as time passes by
Why Juzon distinguishes from the rest? Exquisite quality by maintaining the fruit flavor with natural preserver No added sugar instead an organic sweetener, pure honey Improves your health, since fruit contains vitamins and oxidants your body needs
Package is eco-friendly (recyclable) because Juzon is worried in respecting the environment. Comes from Peruvian lands, thus create an exotic product and a difference to the always seen and tasted fruits. Adequate price offered because Juzon is for everyone who is willing to drink natural
2.Business Organizational Structure Limited Liability Company (LLC) Ownership is divided upon the members. This allows the members work together for the growth of the company. Personal Liability: is also divided rather than one doing everything. Also a colleague will focus on his area of expertise in the business. Taxation: taxes are not at the entity level but pass through LLC members.
Sharing of profit: LLC has a high probability of gaining more profit by working as a team; nevertheless, the profit obtain is seen in the long-run. Sharing of ideas In LLC you can hear the point of view of other members who will not risk the money invest. The disadvantage is that it will be difficult to arrive to a general agreement. Financing Startup: The financing startup will come from: members, stockholders and my savings. When doing capitalization for LLC and rest of structures it must be divided against the members.
Future plan of business: The life of legal in LLC is variable meaning that it depends on the business. Juzon Company will be unlimited this way the company can continue to grow as years pass by. Also in the future plan more products apart from beverage line will be produced using domestic ingredients. I will implement a regime to allow the company fall in good hands
Disadvantages of LLC Erika Mendoza Los Rosales 142 Ate, 3 Lima Peru Tel.: (51-1) 326-4314 Fax.: (51-1) 326-6022 ekm@juzonjuice.com www.juzonjuice.com Experimen t the nature s exotic juice! The C. Corporation & S. Corporation ownership belong to the investors meaning that one has to work like an employee for the stockholders. However, it is beneficial in the sense that one will not invest money since investors take care of that. A better option for taxation issues is Nonprofit Corporation who are not charged for taxes, since people are working for the benefit of needed people. The sharing of profit is better in sole partnership because the entire profit goes to proprietor while the rest or structures the profit is divided between members.
3.Marketing What type of business is Juzon? Juzon is a Manufacturer because it will produce the juices from the raw materials being the fruits to its final stage were the juices are ready to sell. As well I will distribute the juices to the stores. Consumer Description My target consumer are adults from ages 20-35. I Choose adults because they would spend more money in their health than teens. The expected gender are both men & women that would prefer to drink a juice rather than a soda. The primary need of my consumer is their health.
Market Research & Analysis Q: Ans.: Q: Ans.: Q: Ans.: Would you purchase my product? 12 persons said Yes! 1 No. Suggest a price Range of $1.5 - $7 Possible location 8 supermarkets 2 healthy stores 2 restaurants 1 school These results tell me that my product will be positively accepted by adults and teens. This is a good range since I initially calculated my initial price being $2. This confirms my initial thoughts regarding location.
Q: Ans.: Any modification? take the strap try it first modify shape expand healthy aspect In other words to expand in all the aspects! I think is good since one will never obtain the best results the first time. Also I think I will stay with the holder b/c personal experience I feel is more practical. Q: Ans.: Who is my competition? selva walon Pulpin I agree with the results Selva is the most nutritious among them. However their weak point is that it is not well marketed and a high price for average income people. On the other hand Pulpin uses and that I need to apply is TV commercials and billboards.
Q: Ans Fav. Fruit 5 mango 2 maracuya 1 guanabana 3 apple 1 lemon 1 orange This tells me I cannot only focus on certain fruits but mix unknown fruits such as camu camu with apple. By doing this I will attract the lovers of apple to try an exotic juice with their favorite fruit. Fruit orange lemon apple guanabana maracuya mango Fa v o r i t e f r u i t 0 1 2 3 4 5 6 Answers
Additional comments By reading all the comments in the questionnaire I have confirm that exists a public (adults) who appreciate and are willing to purchase Juzone juices! Nevertheless, there are several things I need to know and do before I actually start with the production: Recalculate unit price with exotic fruits and organic ingredients. Create fruit mixtures such as camu camu with apple. This will attract lovers of fruits.
Modify the quantity of 250ml to 500ml. Research deeply all the health properties of exotic fruits from accurate resources, given that I will use this information to convince clients. Develop a better container for the juice. This will create a good impression for the clients.
4.Promotion & Advertisement Methods to reach consumers: 1. Distribution to supermarkets and healthy stores. Benefits: People will see the benefits my product has in comparison to competition. No investment in an independent local. Public will find the product more accessible to them than in only one store. 2. Create a website Benefits: Allows new costumers to know the products, quality contact info, and company. As well this brings a stronger impression of the company.
3. Use media (Radio, TV, Newspaper) Benefits: Since the majority of people see any of this media daily there is a high probability they will hear, observe, or read about my product. This method to maintain the image on the minds of the consumers. 4 Sponsor civic events Benefits Public will have a positive image of product More opportunity to obtain more clients
Logo & Slogan Experiment the nature s exotic juice!
Experiment the nature s exotic juice! Experiment nature exquisite treasure Juzon It s a mixture of both known fruits and exotic fruits from Amazon: Marcuya, Lucuma, Camu Camu, Chirimoya, and many more. It contains pure pulp fruit and natural sweetener, and natural preserver. Do u want to try Juzon? Take this flier to your near Supermarket to receive a free sample. There is limited quantity of juice samples. It only costs $2 which is nothing compared to your health. Juzon is for everyone who is willing to drink natural.
Let Juzon enter your zone Juzon is not another beverage fill with artificial flavoring and preservers. It s an innovative organic juice made with exotic and nutritious fruits from the Amazon. The fruits selected aren t random. For instance camu camu is the only food known that contains the highest percentage of ascorbic acid (vitamin C). Nothing is compared to your health. Are you ready to try Juzon?
5. Financial Statements Economics of One Unit The economics of the unit I choose is a nectar juice made of pineapple. The bottle will not only contain the exquisite juice but as well several characteristics that will differ from my competitors. First the bottle will have the form of the fruit (only certain attributes of the fruit). This will create a singular/unique option in the vast beverage market were most of the bottles have geometrical shapes. Another detail is that nectar label will show the benefits of drinking pineapple and tips to maintain your health. The label will also contain nutritional information, required certificated logos to show it has passed through the quality regulations. This will create confidence in the client.
Unit Cost Cost of pineapple nectar Cost (1L) 1kg. Pineapple 300g. Sugar Employee per month * light per month Water per month Total cost per liter $ 188.00 $ 9.00 $ 9.00 Price $ 0.16 $ 0.19 $ 0.08 $ 0.03 $ 0.03 $ 0.48 *In order to obtain the cost of the employee: I divide $188 / 30 = 20. The result was divided by the production of one day 80 liters. 20/80 =$ 0.25 per day.
Cost for 500ml pineapple bottle Cost Cost 500ml of juice ** Label Price $ 0.24 $ 0.03 Glass bottle Overhead expenses Total cost per bottle $ 0.09 $ 0.16 $ 0.92 Selling price per unit $ 2.00 A Cost of goods sold per unit $ 0.92 B Gross profit per unit (A - B) $1.08 C **Conversion 1L = 2 bottles of 500 ml each
Start up Cost Report Costs before starting Items Automatic label machine Filling machine Inspection system Van Where will I buy this? Technical Automation Service S.A. Technical Automation Service S.A. Industrias Plasticas Corp. S.A. mitsubishi Estimated Cost $ 500.00 $ 20,000.00 $ 5,000.00 $ 1,000.00 Scaffolding Desks Parada Parada $ 200.00 $ 200.00 Water filter Clock Gloves wong Ace Home Center Ace Home Center $ 20.00 $ 10.00 $ 10.00 Mask (odors, viruses, dust) Hat to cover hair Ace Home Center Hiraoka $ 10.00 $ 10.00
Start up Cost Report Knifes Cooking board Hiraoka Hiraoka $ 15.00 $ 10.00 Calculator Office supplies Service bootle 1 month label tap Preserve ingredients Fruits for a month Hiraoka Ace Home Center Wholesale Fruit market $ 4.00 $ 30.00 $ 400.00 $ 200.00 $ 160.00 $ 100.00 $ 4,000.00
Start up Cost Report Additional costs Amount building construction $ 500.00 insurance $ 200.00 licenses and permits $ 200.00 professional fees $ 300.00 rent $ 200.00 miscellaneous $ 400.00 TOTAL $ 33,679.00
List of financing sources Saved Gift Debt Amount Personal sav. $ 9,000.00 $ 9,000.00 Relatives $ 5,000.00 $ 5,000.00 Investors $13,000.00 $ 13,000.00 Bank grant $10,000.00 $ 10,000.00 Total $ 37,000.00 The maximum interest I will pay for a debt financing is 4%
Annual Breakdown of Income Statement (monthly) Revenue Jan Feb Mar Apr May Nectar juice $ 156.00 $ 182.00 $ 195.00 $ 190.00 $ 193.00 juice fruit $ 47.00 $ 73.00 $ 75.00 $ 70.00 $ 73.00 Soft drink $ 156.00 $ 182.00 $ 194.00 $ 192.00 $ 194.00 Total for one day $ 359.00 $ 437.00 $ 464.00 $ 452.00 $ 460.00 Total for month $ 11,129.00 $ 13,547.00 $ 14,384.00 $ 14,012.00 $ 14,260.00 Costs of Good Sold Nectar juice $ 109.00 $ 127.40 $ 136.50 $ 133.00 $ 135.10 juice fruit $ 23.00 $ 18.25 $ 18.75 $ 17.50 $ 18.25 Soft drink $ 94.00 $ 109.20 $ 116.40 $ 115.20 $ 116.40 Total for one day $ 226.00 $ 254.85 $ 271.65 $ 265.70 $ 269.75 Total $ 7,006.00 $ 7,900.35 $ 8,421.15 $ 8,236.70 $ 8,362.25 Operating Costs (Fixed) Insurance $ 480.00 $ 480.00 $ 480.00 $ 480.00 $ 480.00 Rent $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 Interest on Loan $ 140.00 $ 140.00 $ 140.00 $ 140.00 $ 140.00 Total $ 900.00 $ 900.00 $ 900.00 $ 900.00 $ 900.00 Operating Costs (Variable) Salaries $ 565.00 $ 570.00 $ 600.00 $ 580.00 $ 590.00 Utilities $ 375.00 $ 390.00 $ 400.00 $ 380.00 $ 390.00 Advertising $ 70.00 $ 80.00 $ 90.00 $ 100.00 $ 110.00 Total $ 1,010.00 $ 1,040.00 $ 1,090.00 $ 1,060.00 $ 1,090.00
Breakdown of Income Statement Revenue Jun Jul Aug Sep Oct Nov Nectar juice $ 195.00 $ 200.00 $ 330.00 $ 270.00 $ 280.00 $ 300.00 juice fruit $ 75.00 $ 80.00 $ 90.00 $ 107.00 $ 98.00 $ 102.00 Soft drink $ 198.00 $ 210.00 $ 320.00 $ 275.00 $ 290.00 $ 300.00 Total for one day $ 468.00 $ 490.00 $ 740.00 $ 652.00 $ 668.00 $ 702.00 Total for month $ 14,508.00 $ 15,190.00 $ 22,940.00 $ 20,212.00 $ 20,708.00 $ 21,762.00 Costs of Good Sold Nectar juice $ 136.50 $ 140.00 $ 231.00 $ 189.00 $ 196.00 $ 210.00 juice fruit $ 18.75 $ 20.00 $ 22.50 $ 26.75 $ 24.50 $ 25.50 Soft drink $ 118.80 $ 126.00 $ 192.00 $ 165.00 $ 174.00 $ 180.00 Total for one day $ 274.05 $ 286.00 $ 445.50 $ 380.75 $ 394.50 $ 415.50 Total $ 8,495.55 $ 8,866.00 $ 13,810.50 $ 11,803.25 $ 12,229.50 $ 12,880.50 Operating Costs (Fixed) Insurance $ 480.00 $ 480.00 $ 480.00 $ 480.00 $ 480.00 $ 480.00 Rent $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 Interest on Loan $ 140.00 $ 140.00 $ 140.00 $ 140.00 $ 140.00 $ 140.00 Total $ 900.00 $ 900.00 $ 900.00 $ 900.00 $ 900.00 $ 900.00 Operating Costs (Variable) Salaries $ 600.00 $ 600.00 $ 620.00 $ 600.00 $ 580.00 $ 570.00 Utilities $ 400.00 $ 390.00 $ 410.00 $ 400.00 $ 380.00 $ 370.00 Advertising $ 120.00 $ 100.00 $ 110.00 $ 100.00 $ 90.00 $ 88.00 Total $ 1,120.00 $ 1,090.00 $ 1,140.00 $ 1,100.00 $ 1,050.00 $ 1,028.00
Breakdown of Income Statement Revenue Nectar juice juice fruit Soft drink Total for one day Total for month Costs of Good Sold Nectar juice juice fruit Soft drink Total for one day Total Operating Costs (Fixed) Insurance Rent Interest on Loan Total Operating Costs (Variable) Salaries Utilities Advertising Total Dec $ 320.00 $ 110.00 $ 320.00 $ 750.00 $ 23,250.00 $ 224.00 $ 27.50 $ 192.00 $ 443.50 $ 13,748.50 $ 480.00 $ 280.00 $ 140.00 $ 900.00 $ 590.00 $ 400.00 $ 100.00 $ 1,090.00 Total Sum $ 205,902.00 $ 121,760.25 $ 10,800.00 $ 12,908.00
Return on Investment (1 st year) Formula: First Year's Profit - Start-up Costs (100) Divided by Start-up Costs ROI= $205,902 - $144,648.25 (100) $144,648.25 ROI= 42%
6. Future Plans In the future I would like business to expand in the production of other food areas such as: oil made of a very nutritious plant called sacha inchi, prepared meals with nutritious food. Apart from my business plans my future a personal goal is to create a non-profit corporation that will be in charge to defend animal abuse. I will achieve this by gaining money in the production of dog food were the major percent of profit will be used for the non-profit corp. Finally I intend to keep my business a future success by gaining more experience for free if necessary in competition companies such as selva. Gaining more labor and educational experience will let me get an overview on the things I need to add to my business plan. Also to help the companies I will work for if I see something is wrong. In addition I will save money for my business.