Fluent Essays

Where appropriate you shall introduce a company, give company data or description and site the communication issue or problem or any communication phenomenon according to the attached document; but also remember; Running head: SMOOTHIE BUSINESS 1 SMOOTHIE BUSINESS 12 SMOOTHIE BUSINESS Author’s name Institutional affiliation Smoothie business Background information MACJUICE shop is basically a fruit juice retail shop that specializes in selling of a number of mixed as well as instantly prepared natural fruits alongside smoothies on take away basis. In this regard, the target audience of MACJUICE retail shop entails a variety of health conscious customers that are basically looking for very effective and convenient fast-food options (Scarborough & Norman 2012). However, in order to realize its objective, MACJUICE has to offset some competition from the already established JAMBAJUICE shop (Scarborough & Norman 2012). Therefore, this paper will analyses and evaluate the strategy concept of the competing juice shop , determine the viability of establishing the new business plan as compared to the already existing plan and in the process, discuss the most appropriate type of business ownership as well as outlining a business plan for the new MACJUICE shop. Strategy of a business concept directly competing with MACJUICE shop It is universally known that, marketing is one of the most important pre-requisite of a business shop that in one way or the other controls the way its products are sold. By so saying, it means that, as of recent, JAMBAJUICE has greatly embraced marketing as a management process that ensures that its juicy products move from its marketing concept and reaches conveniently to consumers (Scarborough & Norman, 2012). In this case, JAMBAJUICE sells one of the most-flavored flavors such as pumpkin almond milk, pumpkin smash, and mango limeade among others. Additionally, the price of one small smoothie is approximately 1, 99 euros, the medium smoothies goes for about 2.69 euros and finally, one large smoothie costs approximately 2.99 euros. In this case, one is able to save a lot of money if they purchase the larger size (Scarborough & Norman 2012). To attract a lot of profit, JAMBAJUICE sells Smoothies-To-Go. In other words, their customers are in a position to purchase healthy smoothies during their lunch time break or on whenever they pass by to work (Scarborough & Norman 2012). Additionally, the JAMBAJUICE smoothies are established in such a way that those individuals in their cars are able to see smoothie bars on display. By so saying, it means that, the main target audience of JAMBAJUICE shop is those individuals living around Greensboro. Owing to the fact that most people living around Greensboro are not blessed with so much money, JAMBAJUICE shop has ensured that most of their loyal customers are served with a very special premium card (Scarborough & Norman 2012). In this case, the loyal customers are able to collect and accumulate fruit points in order to attain a smoothie for free. Moreover, the staff members of JAMBAJUICE shop are identified with uniform T-shirts and Fruit hats that clearly indicate or rather symbolizes the colorful flavors available at JAMBAJUICE. Given the fact that JAMBAJUICE shop is a very small business shop, advertisement is necessary so as to make it more popular. Additionally, due to its smaller size, Television advertisement as well as oversize banners are not necessarily needed (Scarborough & Norman 2012). By way of explanation, JAMBAJUICE shop uses flyers, brochures, websites, leaflets, samples for new customers and gives away articles. Through this marketing strategy, JAMBAJUICE will offer a more formidable competition to MACJUICE shop. The viability of initiating MACJUICE or purchasing JAMBAJUICE MACJUICE shop will offer a variety of menu juices, salads, sandwiches as well as other specialty fast-food organic items. Given the fact that JAMBA juice does its marketing locally within Greensboro area, MACJUICE will therefore be required to exhibit high levels of high quality services in terms of both beverage and organic foods (Scarborough & Norman 2012). By so saying, it means that, most Smoothie shops around Greensboro specializes in fruit –flavored drinks alone but MACJUICE will be able to specialize in smoothies, wheat grass shots as well as juices. By so doing, it will attract a lot of customers hence increasing the sales volume, in the process; the net revenues of MACJUICE will boom (Scarborough & Norman 2012). Another benefit of starting MACJUICE rather than purchasing the already existing JAMBAJUICE is that, MACJUICE shop will be able to benefit or rather pride itself on the fact that it is smaller in size but it boasts as one of the fully equipped quick service restaurant that looks to see to it that it provides better and high quality products to its customers in a very inviting atmosphere, something that has been lacking in other smoothie shops like JAMBAJUICE shop (Scarborough & Norman 2012). Moreover, unlike JAMBAJUICE, with healthy beverages along, MACJUICE will as well focus and concentrate on maximizing the consumer experience through maintaining and establishing high level of customer satisfaction. In other words, not only will consumers be more than enjoy revisiting MACJUICE store, but the overall effectiveness and efficiency will as well increase due to a well-motivated workface something that has been lacking previously in the already existing smoothie’s businesses. The most appropriate type of business ownership Owing to the fact that one’s brother’s talents and skills compliment another, the best form of business will be entering into a partnership with them. In other words, setting up a smoothie business is one of the common business ideas that we share and therefore, our knowledge and skills will complement each other very well when it comes to running of the smoothie business. Additionally, as far as running a business smaller in size boasting of a reasonably low turnover is concerned, a partnership is the most appropriate or rather the better choice of legal business structure (Scarborough & Norman 2012). By so saying, it means that, the manner in which a smoothie business is managed and set up as well as how it is governed coupled with its taxation; partnership remains the most appropriate form of business structure. Partnership therefore remains the best legal structure for MACJUICE due to the following reasons: first, because of the business nature of smoothie businesses, the more partners there are in a business, the more the capital. In other words, the loan needed to start up the business will be made easier by having two guarantors of the loan (Scarborough & Norman 2012). Second, partnership businesses are more flexible and have no complications when it comes to its formation. By so doing, it will allow MACJUICE to be more dynamic and flexible hence realizing more growth potential. Third reason is the fact that in partnership, there is shared responsibility (Scarborough & Norman 2012). For instance, if ones brother is good in accounting, he will be in charge of accounts and all figure related issues and if one is good in sales and marketing, then they will take up the responsibility of the sales person. Business plan of MACJUICE Contents 5 1.0 executive summary 6 1.1 products and services 6 1.2 Financing 6 1.3 Mission statement 6 1.4 Management team 7 1.5 Sales forecasts 1.6 7 Expansion Plan 7 2.0 Strategic and market analysis 7 2.1 customer profile 8 2.2 competitive analyses 8 3.0 marketing plan 8 3.1 marketing objectives 8 3.2 Marketing strategies 9 4.0 Personnel summary and organizational plan 9 5.0 financial plan 9 5.1 Underlying financial assumptions 5.2 source of funds………………………………………………………………………………...9 11 References 1.0 executive summary The primary aim of this business plan is to raise approximately 230,000 dollars for the development of MACJUICE shop while at the same time showcasing the expected future financials as well as its operations in the next one year (Redder M., 2015). MACJUICE is a smoothie business shop in Greensboro that specializes in provisions of a number of juices, a number of smoothies as well as other fast-food products to consumers within and without Greensboro (The finance resource, 2015). Additionally, MACJUICE will be in the form of a partnership business between two brothers. 1.1 products and services MACJUICE will provide a number of menu juices, salads, sandwiches/wraps as well as other specialty fast-food organic items. Additionally, all goods and services will basically be in the form of beverage goods and organic food (The finance resource, 2015). Moreover, MACJUICE will concentrate mainly on smoothies, wheat grass shots and juices. Furthermore, it will also focus in offering a number of salad wraps, breakfast products and sandwiches (Redder M., 2015). .1.2 Financing MACJUICE is seeking to accumulate 230,000 dollars as a bank loan. Additionally, the loan agreement and the interest rate are to be discussed further during negotiation. In other words, this business plan is of the assumption that, MACJUICE will be able to receive a loan with a 9 percent fixed interest rate within 10 years (The finance resource, 2015). 1.3 Mission statement MACJUICE’s mission is basically to offer customers with a variety of quality and freshly made smoothies, juices, and more fast-food products that are more affordable and healthy. 1.4 Management team MACJUICE will be managed and run as a partnership business of two brothers who have a common business idea. Additionally, their skills and knowledge as far as smoothie businesses are concerned, will be able to propel MACJUICE shop to profitability within their debut operational year (Redder M., 2015). .1.5 Sales forecasts MACJUICE shop is expected to record a strong growth rate immediately it commences its operation. The table below shows the expected financials in the next one year. year 1 sales $ 655,290 EBITDA $ 377, 526 Operating costs $ 212, 235 Interest rates, taxes, depreciation $ 99, 649 Net profit $ 112, 586 1.6 Expansion Plan The founders of MACJUICE expect that it will aggressively grow and expand within the first two years of its operation (The finance resource, 2015). Additionally, the founders intend to implement a clear and well-established marketing plan that will target consumers within Greensboro. 2.0 Strategic and market analysis 2.1 customer profile · MACJUICE’s average customers will basically range from the middle class levels to upper class individuals living within Greensboro (The finance resource, 2015). Additionally, most of its target consumers will fundamentally be those individuals living not more than 20 miles from the shop (Redder M., 2015). 2.2 competitive analyses The most notable competitive threats to MACJUICE are basically smoothie business shops around Greensboro such as JAMBAJUICE (Redder M., 2015). In other words, JAMBAJUICE specializes in production and selling of multi-flavored smoothies such as Pumpkin smash and pumpkin almond milk (Redder M., 2015). . 3.0 marketing plan MACJUICE intends to offer an extensive marketing campaign which will see to it that there is maximum acceptance and visibility for its products within Greensboro. 3.1 marketing objectives · Potentially establish a catering menu for any available Greensboro event planners · Obtain a very highly visible marketing retail location that can be viewed easily by drivers and pedestrians (Redder M., 2015). 3.2 Marketing strategies · MACJUICE intends on employing a variety of marketing strategies which will ensure that MACJUICE targets Men and women within Greensboro. Additionally, these marketing strategies include prints located on the internet (The finance resource, 2015). Moreover, MACJUICE targets to set up its operations in a standalone building within Greensboro so as to attract instant recognition. Moreover, at the onset of its business operation, MACJUICE will give immediate discount offers on some of its products in a move meant to attract more customers (Redder M., 2015). . 4.0 Personnel summary and organizational plan Sourced from: The finance resource, 2015: http://www.thefinanceresource.com/free_business_plans/free_juice_and_smoothie_bar_b usiness_plan.aspx 5.0 financial plan 5.1 Underlying financial assumptions · MACJUICE will experience a 16 percent growth rate annually · The founders of MACJUICE will source their funds from a $ 230000 debt fund in order to start up the business (Redder M., 2015).. · The financial debt loan will have an interest rate of 9 percent within 10 years. 5.2 source of funds Equity contributions Management investment $ 30000.00 Total equity financing Banks and lenders $200000 Total financing $230,000 References Redder M., (2015) .Business plan. Retrieved from: http://www.adam- europe.eu/prj/7823/prd/1/2/Businessplan.pdf Scarborough, Norman M (2012). Effective Small Business Management: An Entrepreneurial Approach, 10th Edition. Prentice. Vital Source Bookshelf Online.  The finance resource, (2015). Free Juice and Smoothie bar Business Plan. Retrieved from: http://www.thefinanceresource.com/free_business_plans/free_juice_and_smoothie_bar_b usiness_plan.aspx