entrepreneurship info

Business Plan ‘Juzon juices’

Erika M

VHS Entrepreneurship Session: April 2007

Business Plan ‘Juzon juices’

Erika M

VHS Entrepreneurship Session: April 2007

• 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

1.What is Juzon?

• 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)Limited Liability Company (LLC)Ownership is divided upon the members. This allows

themembers 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 LLCDisadvantages of LLC• 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 whoare 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.

Experiment the nature’s exotic juice!

Erika MendozaLos Rosales 142 Ate, 3 Lima – Peru Tel.: (51-1) 326-4314 Fax.: (51-1) [email protected]

What type of business is Juzon?• Juzon is a ManufacturerManufacturer 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.

3.Marketing

These results tell me that my product will be positively accepted by adults and teens.

Ans.:

Possible location8 supermarkets 2 healthy stores 2 restaurants 1 school

Q:

Ans.:Suggest a price…Range of $1.5 - $7

Q:

Ans.:Would you purchase my product?12 persons said Yes!1 No.

Q:

This is a good range since I initially calculated my initial price being $2.

This confirms my initial thoughts regarding location.

Market Research & AnalysisMarket Research & Analysis

Pulpin

walon

selvaAns.:

Who is my competition?Q:

expand healthy aspect

modify shape

try it first

take the strapAns.:

Any modification?Q: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.

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.

Fa v o r i t e f r u i t

0 1 2 3 4 5 6

mango

maracuya

guanabana

apple

lemon

orange

Fru

it

Answers

1 lemon 1 orange

1 guanabana 3 apple

5 mango 2 maracuya

Fav. FruitQ:Ans

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.

Additional commentsBy 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.

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.

4.Promotion & AdvertisementMethods to reach consumers:

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 eventsBenefitsPublic will have a positive image of productMore opportunity to obtain more clients


Logo & SloganLogo & SloganLogo & Slogan


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.

Experiment nature exquisite treasure JuzonJuzon

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 zoneJuzon 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?

Economics of One UnitThe 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.

5. Financial Statements5. Financial Statements

Cost of pineapple nectar

$ 0.48 Total cost per liter

$ 0.03$

9.00 Water per month

$ 0.03 $

9.00light per month

$ 0.08 $

188.00 Employee per month *

$ 0.19 300g. Sugar

$ 0.16 1kg. Pineapple

PriceCost (1L)

*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.

Unit Cost

Selling price per unit _____$ 2.00__ _______ ACost of goods sold per unit ______$ 0.92_________BGross profit per unit (A - B) _______$1.08_________ C

$ 0.92Total cost per bottle

$ 0.16 Overhead expenses

$ 0.09 Glass bottle

$ 0.03 Label

$ 0.24 Cost 500ml of juice **

PriceCostCost for 500ml pineapple bottle

**Conversion 1L = 2 bottles of 500 ml each

$ 10.00 HiraokaHat to cover hair

$ 10.00 Ace Home CenterMask (odors, viruses, dust)

$ 10.00 Ace Home CenterGloves

$ 10.00 Ace Home CenterClock

$ 20.00 wongWater filter

$ 200.00 ParadaDesks

$ 200.00 ParadaScaffolding

$ 1,000.00 mitsubishiVan

$ 5,000.00 Industrias Plasticas Corp. S.A. Inspection system

$ 20,000.00 Technical Automation Service S.A.Filling machine

$ 500.00 Technical Automation Service S.A.Automatic label machine

Estimated CostWhere will I buy this? Items

Costs before starting

Start up Cost Report

$ 4,000.00 Wholesale Fruit marketFruits for a month

$ 100.00 Preserve ingredients

$ 160.00 tap

$ 200.00 label1 month

$ 400.00 bootleService

$ 30.00 Ace Home CenterOffice supplies

$ 4.00 HiraokaCalculator

$ 10.00 HiraokaCooking board

$ 15.00 HiraokaKnifes


$ 33,679.00 TOTAL

$ 400.00 miscellaneous

$ 200.00 rent

$ 300.00 professional fees

$ 200.00 licenses and permits

$ 200.00 insurance

$ 500.00 building construction

AmountAdditional costs


The maximum interest I will pay for a debt financing is 4%

$ 37,000.00 Total

$ 10,000.00 $10,000.00 Bank grant

$ 13,000.00 $13,000.00 Investors

$ 5,000.00 $ 5,000.00 Relatives

$ 9,000.00 $ 9,000.00 Personal sav.

AmountDebtGiftSaved

List of financing sources

Annual Breakdown of Income Statement (monthly)

$ 1,090.00 $ 1,060.00 $ 1,090.00 $ 1,040.00 $ 1,010.00 Total

$ 110.00 $ 100.00 $ 90.00 $ 80.00 $ 70.00 Advertising

$ 390.00 $ 380.00 $ 400.00 $ 390.00 $ 375.00 Utilities

$ 590.00 $ 580.00 $ 600.00 $ 570.00 $ 565.00 Salaries

Operating Costs (Variable)

$ 900.00 $ 900.00 $ 900.00 $ 900.00 $ 900.00 Total

$ 140.00 $ 140.00 $ 140.00 $ 140.00 $ 140.00 Interest on Loan

$ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 Rent

$ 480.00 $ 480.00 $ 480.00 $ 480.00 $ 480.00 Insurance

Operating Costs (Fixed)

$ 8,362.25 $ 8,236.70 $ 8,421.15 $ 7,900.35 $ 7,006.00 Total

$ 269.75 $ 265.70 $ 271.65 $ 254.85 $ 226.00 Total for one day

$ 116.40 $ 115.20 $ 116.40 $ 109.20 $ 94.00 Soft drink

$ 18.25 $ 17.50 $ 18.75 $ 18.25 $ 23.00 juice fruit

$ 135.10 $ 133.00 $ 136.50 $ 127.40 $ 109.00 Nectar juice

Costs of Good Sold

$ 14,260.00 $ 14,012.00 $ 14,384.00 $ 13,547.00 $ 11,129.00 Total for month

$ 460.00 $ 452.00 $ 464.00 $ 437.00 $ 359.00 Total for one day

$ 194.00 $ 192.00 $ 194.00 $ 182.00 $ 156.00 Soft drink

$ 73.00 $ 70.00 $ 75.00 $ 73.00 $ 47.00 juice fruit

$ 193.00 $ 190.00 $ 195.00 $ 182.00 $ 156.00 Nectar juice

MayAprMarFebJanRevenue

Breakdown of Income Statement

$ 1,028.00 $ 1,050.00 $ 1,100.00 $ 1,140.00 $ 1,090.00 $ 1,120.00 Total

$ 88.00 $ 90.00 $ 100.00 $ 110.00 $ 100.00 $ 120.00 Advertising

$ 370.00 $ 380.00 $ 400.00 $ 410.00 $ 390.00 $ 400.00 Utilities

$ 570.00 $ 580.00 $ 600.00 $ 620.00 $ 600.00 $ 600.00 Salaries


$ 900.00 $ 900.00 $ 900.00 $ 900.00 $ 900.00 $ 900.00 Total

$ 140.00 $ 140.00 $ 140.00 $ 140.00 $ 140.00 $ 140.00 Interest on Loan

$ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 Rent

$ 480.00 $ 480.00 $ 480.00 $ 480.00 $ 480.00 $ 480.00 Insurance


$ 12,880.50 $ 12,229.50 $ 11,803.25 $ 13,810.50 $ 8,866.00 $ 8,495.55 Total

$ 415.50 $ 394.50 $ 380.75 $ 445.50 $ 286.00 $ 274.05 Total for one day

$ 180.00 $ 174.00 $ 165.00 $ 192.00 $ 126.00 $ 118.80 Soft drink

$ 25.50 $ 24.50 $ 26.75 $ 22.50 $ 20.00 $ 18.75 juice fruit

$ 210.00 $ 196.00 $ 189.00 $ 231.00 $ 140.00 $ 136.50 Nectar juice

Costs of Good Sold

$ 21,762.00 $ 20,708.00 $ 20,212.00 $ 22,940.00 $ 15,190.00 $ 14,508.00 Total for month

$ 702.00 $ 668.00 $ 652.00 $ 740.00 $ 490.00 $ 468.00 Total for one day

$ 300.00 $ 290.00 $ 275.00 $ 320.00 $ 210.00 $ 198.00 Soft drink

$ 102.00 $ 98.00 $ 107.00 $ 90.00 $ 80.00 $ 75.00 juice fruit

$ 300.00 $ 280.00 $ 270.00 $ 330.00 $ 200.00 $ 195.00 Nectar juice

NovOctSepAugJulJunRevenue

Breakdown of Income Statement

$ 12,908.00 $ 1,090.00 Total

$ 100.00 Advertising

$ 400.00 Utilities

$ 590.00 Salaries


$ 10,800.00 $ 900.00 Total

$ 140.00 Interest on Loan

$ 280.00 Rent

$ 480.00 Insurance


$ 121,760.25 $ 13,748.50 Total

$ 443.50 Total for one day

$ 192.00 Soft drink

$ 27.50 juice fruit

$ 224.00 Nectar juice

Costs of Good Sold

$ 205,902.00 $ 23,250.00 Total for month

$ 750.00 Total for one day

$ 320.00 Soft drink

$ 110.00 juice fruit

$ 320.00 Nectar juice

Total SumDecRevenue

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%

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 tocreate 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.

6. Future Plans6. Future Plans

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