Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from essay:
Asking for $2.5 million in loan to purchase and develop land and construct a 6,000-foot travel center.
Competitive issues -- Center will be located between Hwy 45 and 635; there is high visibility, good access, limited competition, good traffic potential.
Market segmentation -- Will offer gas, convenience store items, restrooms, showers, game rooms, trucker lounge, scales, parking -- meant to be a regular stop for truckers on busy U.S. route.
Staff -- Initially run by management team; with supplemental hourly wage staff for check out, cooking, dining, hotel maintenance, etc. Owners to take $50K each for salary, total payroll just under $500,000 per annum.
Silvera and Sons Coffee Export -- Prepares green Arabia coffee beans grown in Brazil for export to the U.S. (specialty roasters) and then sell to Brazilian wholesalers. Asking for investment to expand from 72,000 bags per year to 120-160 bags per year. Coffee differentiates because it is high end, currently demand exceeds the ability to supply, causing the company to refuse shipments and orders.
Owners -- Family owned business in its 7th year of operation; the plant has been in operation for 12 years under one of the owner's managerial expertise. Past performance shows steady sales growth, from $16.2 million to $18.4 million, 15% margin fairly steady.
Sales -- Projected $26.3, $33, and $46 million for years 1-3 forward, moving gross margin to 17.5%. Need $2.7 to $3 million to expand.
Finances -- Finance through LT Debt and increased cash flow; purchase of larger facility will require 80% debt;
Competitive issues -- Top level coffee trends are showing high-growth; key indicator for the company is inability to fill orders for past several years. Numerous coffee producers and roasters of low-mid range product; very few on high end.
Market segmentation -- vast potential in the U.S.; new relationships with high-end producers through phone selling and trips to Brazil, print advertising in trade publications, and Web based information.
Staff -- Current staff, especially management in place, key gap is controller or staff member who can analyze the changing legal and financial aspect of the business; more cost effective to plan this in house; other staff are experts in their jobs, with salaries ranging from $37-50K/annum.
International Consulting Firm
Expanded truck stop with amenities in busy Dallas Hwy intersection
High-end coffee import and sales
Start Up or Existing
Existing and Profitable
Mid-high; difficult to convince businesses to use consultants
Low in area, prime area for transportation hub
Low in specialty business; this is high-end niche
Take advantage of globalism and new markets in Europe and Asia
Capitalize on busy hub without adequate trucking services
Have turned down orders, expand to fill and improve niche
Expertise in international business; no information on expertise in business operations or sales.
No retail experience, expert (wife) in bookkeeping; husband expert in auto mechanics and repair
Family operated business, experts in the area, well-entrenched.
Low per customer, breakeven likely with just 30% capacity used
Breakeven almost immediate by filling orders already in the system
Conclusions - The most likely return on investment would be the coffee export, profits already in place, expertise and longevity exist, as well as the market. All that is holding them back is a new facility. Interstate is medium risk, likely good idea and some security with land and buildings, also a heavy growth industry; key will be owner's expertise and commitment. Acme likely a high-risk, but low need ($50K spread over investors); however, the least likely of the three to succeed.
Acme Consulting Business Plan. Retrieved from: http://www.paloalto.com/sampleplans/bpp7/enu/live/acmeconsulting_live.pdf
Interstate Travel Center Business Plan. Retrieved from:
Silvera and Sons Coffee Export Business Plan. Retrieved from:
Berry, T. (2011). Buying a Business: Know What You Are Getting. Retrieved from: http://articles.bplans.com/buying-a-business/buying-a-business-know-what-you-are-getting
State of Wisconsin. (2009). A Consumer's Guide to Small Business Investments. Retrieved from: http://www.wdfi.org/ymm/sbic/brochures/small_business_investment.htm
U.S. Small Business Administration. (2011). How Important are Small Businesses to the U.S. Economy? Retrieved from: http://www.sba.gov/advocacy/7495/8420.[continue]
"Business Planning Financial Decision Making One" (2011, September 24) Retrieved December 3, 2016, from http://www.paperdue.com/essay/business-planning-financial-decision-making-45714
"Business Planning Financial Decision Making One" 24 September 2011. Web.3 December. 2016. <http://www.paperdue.com/essay/business-planning-financial-decision-making-45714>
"Business Planning Financial Decision Making One", 24 September 2011, Accessed.3 December. 2016, http://www.paperdue.com/essay/business-planning-financial-decision-making-45714
Financial Resource Management Reaching a financial decision regarding heath care services All forms of industries deemed financial management as expressive in origin till the 1960's. Its basic and sole role was to ensure financing for completing the business's operatives and functions. The department for business planning or marketing would project a net total for meeting the services and meeting daily demands; managers would calculate the assets required to complete a given project
One of the reasons for the task force is to enhance the Marketing Department. The Marketing Managers have no say so in the changes that need to be made. It is a business; they are employees. There were about seven employees from different divisions of the company on the task force. During the first meeting with the task force, Bacon allowed others to make decisions that he just went along with.
Business Plans Investment Decisions An Analysis of Three Business Plans in Regards to their Riskiness This paper will examine three separate business plans and rate these plans based on the level of risk and the cost of capital that should be awarded to these plans. Of the three plans considered, a plan for an expansion of a coffee production facility in South America carries the least risk. An investment opportunity for a truck
Decision Making Barnes and Noble Inc. is one of the most successful bookstores in the world. The company operates throughout the United States and boasts roomy inviting stores. In addition to books, the company also sells DVDs and music. The company operates both brick and mortar stores and it is also the largest internet bookstore. Furthermore, Barnes & Noble, Inc. is a Fortune 500 company and the largest bookseller in the
Decision Making Consumer decision process leads to the embankment of marginal profits of any investment in a given market depending upon the level of awareness of a potential customer, brewing market trends and swirling expectations to meet certain demands. The phenomenon is also very important in hinging any level of comfort that a customer is seeking for and also in the rolling in of positive feedback. As a matter of fact,
Decision Making Model Decision-Making Model An individual's life, it is often said, is nothing but a reflection of choices that were made. Thus, individuals who make well-thought out decisions are more likely to feel content and fulfilled, whereas individuals who are driven by impulse often end up taking many a wrong turn in life. The preceding observation is especially true of decisions that are made at critical junctures of a person's life
Behavioral Economics Many academics advocate that markets are "efficient." They argue that all stock and business information is embedded in the current price of an asset. As new information enters the market, the asset price immediately adjusts to reflect the new market sentiment. As a result of these efficient markets, investors can only hope to achieve the market rate of return given the amount of risk taken. There is very little