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Team members

:
(2T22)

Tran
(2T20)
Catholic
College
Date
24th May

Viet Quang
School:
Junior
Workshop
attended:
2014

Table

Mai Viet Bach

of

Contents

1. Executive summary............................................................................................ 3
1.1 Mission........................................................................................................ 3
1.2 Key to success.............................................................................................. 3
2. Company summary............................................................................................ 3
2.1 Company Ownership..................................................................................... 3
2.3 Start-up Summary......................................................................................... 3
2.4 Company locations and facilities......................................................................4
3. Products........................................................................................................... 5
3.1 Products description...................................................................................... 5
3.2 Product benefits............................................................................................ 7
3.3 Competitive comparison.................................................................................7
3.4 Sourcing...................................................................................................... 8
3.5 Product Distribution....................................................................................... 8
3.6 SWOT Analysis............................................................................................. 9
4. Market analysis................................................................................................ 10
4.1 Market segmentation................................................................................... 10
4.2 Target market analysis................................................................................. 11
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5. Strategy and Implementation............................................................................. 13
5.1 Marketing strategy....................................................................................... 13
5.2 Marketing programs..................................................................................... 13
5.3 Pricing strategy........................................................................................... 16
5.4 Sales Strategy............................................................................................ 16
6. Financial Plan.................................................................................................. 17
6.1 Start-up Funding......................................................................................... 17
6.2 Important Assumptions.................................................................................18
6.3 Break-even Analysis.................................................................................... 19
6.4 Projected Profit and Loss..............................................................................19
6.5 Projected Cash Flow.................................................................................... 20
6.6 Projected Balance Sheet.............................................................................. 21
7. Evaluation....................................................................................................... 22
7.1 How to measure success?............................................................................22
7.2 Future plan................................................................................................. 22

1. Executive summary
Currently there is an increasing trend in Vietnam, specifically in Ho Chi Minh City, to engage in bodybuilding. Reasons for this trend are numerous: aesthetics, health, esteem-building, etc. As such,
supplementary drinks, such as protein shake, also experience increasing demand without any sign of
cooling down, as individuals who want to keep fit or build their ideal body can achieve their goals
more efficiently with such products. Despite the facts, there are presently no such complementary
products to cater to the increasing need in Vietnam. Hence, Protein Quake seeks to be the first
specialty beverage retailer in Vietnam to relieve the growing body-builders community with protein rich
drinks that are not only tasty, but also healthy and affordable.

1.1 Mission
We adopt a three-pronged approach with 3 main missions:
- Product mission: provide customers with the best quality protein shakes that help them to achieve
their athletic goals.
- Community mission: promote a healthy lifestyle and popularise the use of protein shake, making it
not only a supplement drink but also a healthy drink that is suitable for anybody.
- Economic mission: Operate and grow at a profitable rate through sound economic decisions.

1.2 Key to success
There is still a lack of knowledge of the people on the benefits of protein shakes. Hence, this is a gap
in the market that we need to exploit. As a pioneer in the industry, it is important to have:
1. An outstanding marketing campaign to introduce the new products into the market and to
let the people understand the benefits of protein shakes
2. The best products: freshest ingredients and best tasting protein shakes.
3. The greatest locations: visibility, high traffic pattern, near the biggest gyms.
4. Best customers service: a team of knowledgeable nutritionists who are able to give advice
on which type of drink to take.
5. Close collaboration with gyms to promote our products.

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rent and start-up assets. All of the prerequisite services and goods will be acquired within Vietnam. with local service and insurance rate already taken into account. The products are not only tasty but also healthy and helps build up and maintain muscle as well as lose weight.2 Start-up Summary Protein Quake start-up expenses and fundings are shown below. Majority of the expenses are in legal services. which include blenders. 2.2. as it is not a basic requirement. etc. It provides a new products to the customers in an economical and convenient way as well as giving advice on the protein shake and diet.672 Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets $500 $580 $1.000 $50 $84 $2.650 Total Requirements $7.322 3 | Page . Start-up Requirements Start-up Expenses Legal Stationery Insurance Rent Sales Personnel Other Total Start-up Expenses $1. It should be noted that the cost of marketing has not been accounted for.1 Company Ownership Protein Quake ownership is shared equally between Tran Viet Quang of Ha Noi and Mai Viet Bach of Vung Tau. Vietnam 2. Company summary The Protein Quake is a specialty beverage retailer. lightings. decorations. The opening day cash on hand balance will be $500. seating.900 $588 $50 $4.570 $2.

3 Company locations and facilities The first Protein Quake outlet will be located on Hai Ba Trung st. the rent. This is the most optimal location available we can find in the CBD area. Be You Centre. is not too expensive despite being in the CBD. Ho Chi Minh City. and Pure Gym. Products 3. Here is an example of different recipes: Plain shake: Fig.Gym Cali Wow. and 3 additional small gyms. at $2900 per month. Furthermore.1 Products description The Protein Quake provides its customers with a varieties of protein smoothies.2. 3.3. District 3. Within its 500 metres radius are 3 major gyms .1: Bland protein shake Blend fruit shake: 4 | Page .

burn fat. build muscles. The flavours are named after the most famous bodybuilders. 5 | Page . In short.3: Chocolate peanut butter protein shake Besides having different tastes. gain weight.2: Chocolate and blended strawberry protein shake Chocolate peanut butter: Fig 3.3.Fig. for example. we will have our customers first choose their desired type of protein (they can be recommended by our nutritionists at the outlet) then they will choose the flavour. we also have a varieties of products with different effects on the body.

Besides serving the drink. Drinking a protein shake as a meal replacement can help you cut calories. Without an adequate amount of protein our muscles would not heal up as quickly and could therefore lead to overtraining your muscle which could lead to injury.3 Competitive comparison No other business in Vietnam specifically caters to the protein smoothies market. growth. muscle contraction.com1. and healing. nor can it generate the biochemical substances needed for cardiovascular function. subjects who consumed high-protein meal replacements. For bodybuilder. which leads to eventual weight loss.2 Product benefits Protein shake will help people going to gym to utilise their exercises. tissue. We will also be the retailer of ON protein powder to diversify our products. convenient and stylish.html 6 | Page Different cafes nearby .com/fun/proteinshakebenefits. 3. the Protein Quake has no direct competitor. such as shakes.bodybuilding. According to bodybuilding. Hence. One possible reason for the tie between protein shakes and weight loss is the increased satiety that shakes can provide.Fig 3. we also have a team of well-trained nutritionists who can recommend which type of protein and drinks the customers should take. According to a 2008 article published in the “American Journal of Clinical Nutrition. and organ. 3. it is the fast absorbing protein that helps them to gain muscle in the golden window period (one hour after gym). Competitor Homemade shake protein Other drinks sold inside or near the 1 http://www. without adequate protein.” protein is more effective at producing lasting fullness than carbohydrates or fat. says Mayo Clinic nutritionist Katherine Zeratsky. In a study conducted at Ulm University in Germany. lost more weight and fat mass than subjects who simply followed a reduced-calorie diet. our bodies can't put together the structures that make up every cell.3: Example of a menu All the protein shakes will be served in our own cup with our logo on it which is portable.

These drinks contain mostly sugar which is not preferred by the people as they are unhealthy and fattening There is no drink option available that specifically caters to help people going to gym to maximise their exercises Fig 3. 30% of the people going to gym bring along a protein shake Not convenient. Pepsi. 7 | Page . with each having more than 32 outlets within the city and 8000 units sold per day Convenient to these drinks. for example. there are also small retailer of bottled drink. They are popular cafes such as Trung Nguyen Coffee Capuccino and Urban Station Smoothie and Soda. Two things that makes it stand out from its competitors: 1/ The Protein Quake will be providing products in the most convenient and efficient way available by setting up a small outlet (like a bubble tea shop) near to the gyms. buy Convenient to go into any of these cafes None of them contains any amount of protein. The drinks sold are bottled drinks. Some people we have interview inside the gym are just too busy to be making protein shake on their own. green tea and sport drinks Outside the gyms. there is a bar to sell drinks. plain protein powder does not taste good due to the lack of flavour Weakness gyms Inside the gyms. Coca-Cola.Description Protein powder can be easily purchased from dinhduongcaocap.1. Furthermore.vn which is the main retailer of protein shake in Vietnam Strength Economical to make protein shake this way.1: Competition matrix analysis Based on figure 3. Trung Nguyen Coffee and Urban Station are major beverage retailers in downtown Ho Chi Minh City. it is clear that the Protein Quake has a competitive edge against its competitors.

etc.8. opportunities and threats of our products. Convenience. there is a strong demand for protein shake as complementary sport drinks. Ingredients will be taken from wholesalers to points of sales. 3. As mentioned above in Chapter 4. Vietnam) every day to ensure the daily freshness.4 Sourcing The Protein Quake purchases its protein powder from BOCCI Vietnam (240 Võ Văn Tần. Instead of having to make protein shake beforehand. Hồ Chí Minh. 3.3). The cups and straws are manufactured by Gia Thanh Co. At the inception of the business. which is frequently a major issue with home-made protein shake.5 Product Distribution Taking into consideration that all of our ingredients can be found within the city (refers to Section 3.6.vn. This is when one's muscles have been broken down from exercising and in desperate need of protein to rebuild 2.. Higher Quality. Q.g. 2 http://www. Vietnam) which is one of the two authorised direct distributors of Optimum Nutrition protein. The golden window period for drinking a protein shake is immediately following one's resistance or weight training workout. with the exception of milk and fruits being once a day. A supply run will be made once a week. chocolate) are bought from Co-op Marts (189C Cống Quỳnh. Protein Quake currently has no direct competitors. have no complementary effects to body-building or body-maintaining. Furthermore.com/211/time-drink-protein-shakes-fitness-nerd/ 8 | Page . Hồ Chí Minh. fruits.. First to tap into an increasing demand. weaknesses.1. 3. as established in Section 3.answerfitness.2/ The products are healthy and supplement the athletic activities.3. Vietnam) Other necessary kitchen accessories are bought from barista. owners may transport the milk and fruits from supermarkets to point of sales themselves to reduce fixed costs. soft drinks. where transactions on cash basis will be made with customers on the spot. which will become the groundwork we use to design and organise our marketing plan.1 Strengths 1.5. The ingredients (e. tea. however. Ltd (1085 Tạ Quang Bửu.6 SWOT Analysis The following SWOT Analysis presents the strengths. Hồ Chí Minh. a preferred means of transport would be vans. Greater benefits to body-building. which can be significantly alleviated by our use of fruits and other condiments. Q. any possible degradation of protein due to exposure to air over extended periods of time is minimised. 3. as our products are made and consumed on the spot. Q. Alternatives such as energy drinks. 4. 3. plain protein shake does not have an appeal to taste. convenient and efficient methods in delivering our products. 2.4 Sourcing). We offer quick. unlike the soft drinks or cafe which has no complementary effects on the workout. This benefit can be a major selling point of our protein products. customers can now visit our outlets at strategically convenient locations (Section 2.

as students are relieved from schools and universities for extended periods of time. sauna massage similar to Gym Cali Wow Oldest gym in Ho Chi Minh city 800 Smaller gyms but facilities are better 500 Similar to Gym Cali Wow.6. 2. yoga. body building classes. It is also possible that we may turn our business into a franchise to differentiate ourselves from the rest.2. prompting additional marketing efforts during these periods prime to capitalise on the possible increase in free time among the target customers. Such trend allows opportunities for growth and further expansion. our idea may be copied and replicated. The low cost barrier of entry may exacerbate the problem. 3. yoga.3 Opportunities 1.4 Threats 1.4) Lan Anh Gym (291 Cách Mạng Tháng 8.3. People who frequently go to the biggest gyms are concentrated in the 6 gyms. sauna massage The Gym Flemington) (Parkson Estimated traffic per day 1000-1200 the second biggest with dance classes. Market analysis 4. As our business grows. Most of the year’s profits can be expected to be made in January and from June to August. 2. 3. Increasing interest in body-building among youths (as established in 4. (the number of traffic is based on what we have asked the personnel in each gym) Gym Description Gym Cali Wow (28 Lê Lai &Tầng 5 Parkson Hùng Vương) Get Fit Gym (lầu 3 – Tòa nhà H3 – 384 Hoàng Diệu Q.2 Weaknesses 1. The lack of expertise in marketing know-hows can be a problem.1 Market Trend). as additional resources may have to be expended to cover the lack of expertise through training or hiring.6. TPHCM) Pure Gym (168 Võ Thị Sáu) Be You Center (200 Lê Lai and 127/135 Điện Biên Phủ) The most famous gym in Ho Chi Minh city with dance classes. Thus. They are often businessman. this issue further emphasises the need for effective marketing to differentiate ourselves from possible future direct competitors.6.1 Market segmentation The Protein will focus on 3 market segments: people who frequently go to the biggest gyms. people who go to other gyms and people who are interested in healthier drink choices. 4. There is possible time lag to educate our customers of the benefits of protein shake to body-building. foreigners who work in Ho Chi Minh City 9 | Page 2 . 1500 outlets Premium gym 500 900-1200 for People who go to these 6 biggest gyms are people with higher income as the gym membership is about $500 to $700 a month. body building classes. Quận 10.

2 Target market analysis Protein Quake main target is people who frequently go to gyms and want to build muscles or lose weight fast by using supplement. A good estimation of the combined traffic of the local gyms is 5000 per day. 2. 4. Diamond Health Club. from June to August. The third group is the people with interest in a healthier drink. The frequent customers have an average income of $2000 a month. Landmark Health Club Caravelle Fitness. They are often professionals.739 people interested in a healthy drink. That equates to approximately 16. All these gyms are located in the District 1. They should have no financial problem spending on our products as one bottle of water in these gyms costs almost as much as our protein shake and they are willing to pay for it. 3. Pure Gym. 13 are interested in healthier drinks than Coca-Cola and Pepsi. all of which are close to the CBD. NutriFort Fitness. Increasing number of people going to gyms also means the expansion of market is huge. Mommy Health Club.com/nao-cung-tap/khoi-dong/phong-gym-moc-len-nhu-namchat-luong-ra-sao 10 | P a g e . Fig 4. the number of gyms in Ho Chi Minh City almost double form 2012 to 2014. Since our sample size is comparatively much smaller.216.Health & Fitness Centre. gym Toàn Thắng and gym Đình Phú Thạnh.1: Market segments 4. Trung tâm TDTM Dáng Ngọc. we may estimate a tentative number of 530.2. There are other small gyms such as Nikko Fitness Club.5% of the young population.600. We have done a survey on 79 people and out of them. This shows the trend of increasing interest of people in keeping fit and a healthy lifestyle. Huy Long Gym. Kryoga Việt Nam. workers. which is expected to be much higher during the summer break. Gym Sức Khỏe Việt. InterContinental . Vincharm Health Club. Given the young population of Ho Chi Minh City is 3.1 Market trend According to Women’s Health Vietnam 3. it is appropriate to assume that only about 5000 people may become potential customers due to the currently low publicity level of protein shakes.and children of the wealthier people. A large proportion is also the students whose parents will pay for their fees. 3 http://www.womenshealthvn.

The graph is shown by Google trend4. It reflects the increasing number of searches on protein shake in recent years from 2011 to now. 4 http://www.com.2.google. increase in interest of people in protein shake.2 Market growth According to industry statistics.sg/trends/explore#q=Protein%20shake 11 | P a g e . 4.8% from 2012 to 2017. it is certain that it is an untapped market of people demanding protein shakes in Ho Chi Minh City. consumption of sport nutrition is going to grow rapidly in the next 3 years with the expected increase of 6. Hence. by notifying the trend in the increase in gyms in Ho Chi Minh City.

people are more willing to pay to have their aesthetic look and thus more are going to gym (as seen in the surge of number of gyms mentioned earlier).5% GDP growth last year.com/how-much-protein-per-day 12 | P a g e . the recommended or usual intake of protein of an average person is too meagre as said by authoritynutrition. proving a larger group of potential customers. The outlet will be very unique and eye-catching with our mascot Mr Protein Quake in front of the outlet to introduce about our company and give out pamphlets. By giving collaborating with the gyms. Ho Chi Minh City has a large population of 8. only about 30% of people going to their gyms bring along their shakes) 2/ Protein shakes do not taste good (I have tried to make it myself) In addition. We will also give away samples and they will give their word of mouth to other people going to gyms.399. Hence. 5. not only people who go to gym but everyone else needs to take extra protein. Second. Furthermore. Strategy and Implementation 5.2 Marketing programs 5 http://authoritynutrition.3 Market needs Ho Chi Minh City is a thriving city. the Protein Quake will have an outstanding marketing campaign aiming to: 1/ Inform the people of protein shakes. their benefits and our brand 2/ Persuade them to buy our protein shakes 3/ Encourage brand loyalty Third. Although the market in Singapore is different from that of Vietnam. based on the increasing sales of one of our indirect competitor (Hoa Huong Duong Energy Drink Ptd) in recent years. Having more disposable income.200).1 Marketing strategy Firstly. the Protein Quake is placed at a location near to the biggest gyms mentioned before which leads to high visibility and great ease of access for all people going to these gyms.775 which is even greater then Singapore’s (5. The problem is: 1/ People forget.com5. feel lazy or have no time to make their protein shake (in our survey with the gyms. probably the most economically developed in Vietnam with 9.Another trend can be identified in the case study of Amino Bar (a protein cafe bar). the Protein Quake will rely on building relationship with the gyms. we can access the need of each member of the gyms. 4. Hence. Velocity and One-north.190. Currently. Protein Quake exists to provide customers with the best quality protein shakes that help them to achieve their athletic goals in a convenient and simple way. A problem with a developing society is that people are having less free time. It was founded in Singapore in 2010 and now it has 3 outlets in Somerset.2. thus there is a need to maximise the time they spend in the gym. beverage industry is expanding in Ho Chi Minh City as people are spending more on drinks. thus they need to use supplement drink like protein shake. we should take in 91 grams instead of 56 grams per day for an average male. Amino Bar is expanding into the USA. 5.

Pho (1. The YouTube page can be foreseen as a success as YouTube is becoming more popular in Vietnam in recent years with the rise of loggers such as JVevemind (1. Mr Protein Quake will be the main character in the YouTube channel. In the videos. He represents represents represents is a the the the E marketing: We will have our own website. We will also collaborate with them to earn more subscriber for our YouTube channels.. Some of the ideas of the videos are the workouts and how to make protein shakes yourself.. This approach is the main part of our marketing campaign as there is no YouTube page in Vietnam that provides a guide on how to exercise and make protein shakes.546 subscribers). only 30% the population of Vietnam are proficient in English. Twitter and Instagram to publicise our brand as well as our product to update our event and promotions.2. A case study of this would be Mike Chang’s six packs short-cut. There are other pages on YouTube which do the same thing. we will also have our Youtube page featuring Mr Protein Quake. he will talk about the benefits of protein shakes and why people should lead a fit and healthy lifestyle. Huyme (363.645 subscribers). he began making YouTube videos teaching people how to do exercises. Then he earned more subscribers and now he is owning his 13 | P a g e .001. A video will be out every week.824 subscribers). mascot. however. Facebook. Behind him is the dawn which beginning of a new hero (a new franchise).5.482. as there is a lack of general knowledge of protein. To Inform Distinctive logo: In the middle of the logo is Mr Protein Quake who is our cartoon-like character of a cup of protein shake which products that we sell.1. He also has bulky triceps which benefits of the protein shakes. However.

we will also make visits to the gyms to give away free samples and pamphlets once a month. A list of prizes will be a free drink. This proves that a YouTube channel can really boost up a business.2. especially when few people know about protein shakes A link to our YouTube channel together with Facebook and Twitter page will be printed on every cup we sell. they can use these points to participate in a wheel spinning to get a prize. By doing this. Every time. When they have garnered 10 points.. painless way for the gyms to gain a financial reward while providing a pleasant and fulfilling benefit to our customers. Loyalty card: We will give a loyalty card to every customer who buy our products. 14 | P a g e . for every cup sold.own brand of protein shake powder. A gigantic launching event: 2 weeks before the launching event. The event will be fun. It becomes a tremendous. energetic and memorable so that people can have an idea of a brand that is aiming to encourage people to have a healthy and fit lifestyle. We also incentivize them to spread the words and invite more friends to buy our products Free advice from professional nutritionists (to be implemented in the second year due to lack of funds) One thing that differentiate our brand is the free consultation with our nutritionist. A team of nutritionist will be stationed at our outlet to give out advice to our customers about which type of protein and diet they should take to achieve their goals. a protein bar. we encourage our customers to come back to our outlet to buy the protein shakes. they buy our products. And. By doing this. By doing this. Every time they bring a friend to buy our products they will also earn a point. We also encourage people to go to the gyms and exercise which is in line with our missions.. we provide them with extra customer service and thus differentiate our brand and prevent potential competitor. 5. we will put up posters inside the gyms and give away pamphlets and vouchers to inform people going to these gyms. we are directly persuading our main target group to buy our protein shakes. We will also have a group of loyal customers who are the long-term members of these gyms to be our customers. they will earn one point. We will have a big launching event in which we will give out free samples near to our outlet and outside every gym. To get to our market.2. To persuade them and increase brand loyalty Promotion with gym membership: We will collaborate with the gyms to give 10% discount to the gym members. a portion is returned to the gyms. an energy bar.

In this event.06. Competitors’ Products Trung Nguyen Coffee Cappuccino Urban Station Smoothie and Soda Unit Price $2. we will send 2 vans to go around the city and to different gyms. 5. This price is comparable to our indirect competitors’ price.06 $2. In the day before the start of SEA GAME (4 June). with each having more than 32 outlets within the city and 8000 units sold per day) At price point $ 2.4 Sales Strategy There will be several sales strategies put into place. Price for Optimum Nutrition Whey Protein is placed at standard retailers’ price point.000). including posting specials on high-profit items. We will launch an event called “Gym ‘n Drink”. Another van will be giving away free samples of our protein shake. customer are much less likely to deem our products’ prices as unreasonable. One van will carry a portable gym inside which is separated by clear. This will increase the visibility of our brand and again create an image of a fun and energetic brand. 5.3. The portable gym will definitely attract the attention of the people and show how people can exercise anywhere.3 Pricing strategy Protein Quake products will be offered at the following prices: Products Protein Shake (All Types) with Milo/Milk Protein Shake (All Types) with a Variety of Fruits Optimum Nutrition Whey Protein 900g Unit Price $2. The Protein Quake will also develop window sales techniques such as the baristas asking if the customer would like a pack of protein powder along with their drink. Gym’n Drink can be a shocking event for the people as it is the first time they see a portable gym separated by glass wall.5. transparent glass so that the public can see the people exercising inside the portable gym.09 Protein Shake is sold at price point of $2.06 $50. Materials will also be given out to show the important of exercising and protein shakes. The barista will also hand out free drink coupons to those who purchase more than 5 cups at once. To remind Taking advantage of the SEA GAME in June 2015 (which is well received by the Vietnamese audience). we will work closely with the biggest gym to let them publicize their brand as well as sharing the cost.06 (Trung Nguyen Coffee and Urban Station are major beverage retailers in downtown Ho Chi Minh City.06 (equivalent to VND35. 15 | P a g e .35 $2.2.

10 percent to sales employees and 8 percent to the designers.09 $50.06 $2. The sales forecast also assumed that a marketing campaign is launched in this period to capitalise on the strong influx of students. For purposes of projection.09 $50.265 $212.405 $193.4. Hoa Huong Duong Energy Drink Ltd and beverage sales of three different gyms.5.283 73.819 $58.200 30. 57 percent of sales will go to our company (the retailer).783 27.052 $95.06 $21.06 $50.539 $64.06 $2.77 Year 3 $0.916 1.620 34.881 $20.352 $26.817 $71.032 $63. July and August.487 $30.09 $51.88 $0. Sales Forecast Unit Sales Protein Shake (All Types) with Milo/Milk Protein Shake (All Types) with a Variety of Fruits Optimum Nutrition Whey Protein 900g Total Unit Sales Unit Prices Protein Shake (All Types) with Milo/Milk Protein Shake (All Types) with a Variety of Fruits Optimum Nutrition Whey Protein 900g Sales Protein Shake (All Types) with Milo/Milk Protein Shake (All Types) with a Variety of Fruits Optimum Nutrition Whey Protein 900g Total Sales Direct Unit Costs Protein Shake (All Types) with Milo/Milk Protein Shake (All Types) with a Variety of Fruits Optimum Nutrition Whey Protein 900g Direct Cost of Sales Protein Shake (All Types) with Milo/Milk Protein Shake (All Types) with a Variety of Fruits Optimum Nutrition Whey Protein 900g Subtotal Direct Cost of Sales 16 | P a g e Year 1 Year 2 Year 3 24.271 $105.77 Year 2 $0.077 38.765 1.340 $42. as this is the summer break period for both high school and university students.166 66.979 34.77 $36.442 Year 1 $2.136 $33.88 $0.053 $56.891 $46.087 $29. the two main driving force behind sales in this period.88 $0.913 Year 1 $0.06 $2. sales of product is expected to rise in June.06 Year 3 $2.494 .1 Sales Forecast Unit sales are projected based on sale report of two indirect competitors.082 933 52.06 Year 2 $2. It is reasonable to estimate that the growth of sales in Year 2 is 20% and that in Year 3 is 10%.06 $36.734 $153.199 $78.317 $70.648 $76.06 $36. assuming that there is no additional outlets opened in this period.810 $27. with 25 percent to wholesalers.449 $46.

the business is expected to grow fast due to high existing.1 Start-up Funding The majority of our funding for start-up requirements will come from short-term loans from VPBank and/or Agribank. as the maximum loanable funds at both banks is at $9412. Investment will play a major role in financing our growth and cushioning the initial losses.322 $0 $863 $8. We hope to able to secure an investment of $30.863 $34.150 $500 $31. However. for the purpose of this financial plan.013 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Other Current Liabilities (interest-free) Total Liabilities $7.6.000 $30.322 Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $2. Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required $4. Since Protein Quake is a pioneer in the market. 6. which will be paid out in dividends of 2% per month after the first year.185 Capital Planned Investment Owner Investor Total Planned Investment 17 | P a g e $500 $30. as both banks are well known for charging a lower interest rate and higher amount of loanable funds for entrepreneurs. untapped demand.363 $31.672 $2.000. Furthermore. after the required start-up cost of $7322. Financial Plan The financial prospects for Protein Quake is quite promising.650 $7. We hope to expand to other outlets by Year 3 when we most likely have repaid most of the initial debts. Other current liabilities include but not limited to:    Taxes Insurance Start-up Stocks The owners of Protein Quake has gathered an additional funding of $500 to support the company for the first few months. we assume that there will be no additional outlets within 3 years. there is a $2090 cushion for unexpected overhead costs.500 .

The key underlying assumptions are: 1. We need at least $10.013 Total Funding $38. The interest rate is estimated based on public statements from VPBank and Agribank. The Average Per-Unit Revenue and Variable Cost are calculated based on the individual price.44 $5. That is approximately $360 in sales per day.672) $25. There are no unforeseen changes in public health perceptions of its general products.Loss at Start-up (Start-up Expenses) Total Capital ($4. A quick-growth economy.778 in sales to make cover all monthly expenses. cost and weightage of each selling items to the total revenue and cost. Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even 3.778 Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost $2. 2. or 124 units sold per day to sustain business. 6.91 $1. Additionally. No additional outlets are opened within the assessed period.708 $10.3 Break-even Analysis Our break-even analysis is summarized by the following chart and table. most of which are shown in the following table. 3.828 Total Capital and Liabilities $34. without major recession or overheating.   Tax rate for private businesses is expected to drop from 22% to 20% in 2016.685 6.2 Important Assumptions The financial plan depends on important assumptions.429 18 | P a g e . Access to equity capital and financing sufficient to maintain its financial plan as shown in the tables. 4.

37% $97. Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Year 1 $153.694 $7.863 Total Operating Expenses $65.800 $600 $469 $1.800 $750 $508 $1.149 $49.45% Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Payroll Taxes Other $6.300 $1.593 Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred $12.719 19.479 50.828 $4.934 5.340 $0 $76.084 Net Profit Net Profit/Sales $8.000 $782 $1.49% $44.846 $406 $11.800 $1.345 $847 $9.540 $7. Net Profit in the first year may be punctured by the high cost of penetrative marketing.82% 19 | P a g e .330 $12.450 $877 $2.340 Year 2 $193.826 $56.913 $105.520 $47.419 50.300 $350 $34.720 $20.900 $120 $34. if we can still make positive net profit by the end of Year 1.020 $34.653 $51.539 $95.6.81% $37.4 Projected Profit and Loss There are a multitude of factors and consideration to include when determining projected profit and loss.251 $4.45% $107.891 Year 3 $212.494 Gross Margin Gross Margin % $77.819 $76.336 20.494 $0 $105.995 $48.430 $55.648 50. However. there is a good chance that we can repay initial short-term loans in Year 2 and further expand in Year 3.891 $0 $95.

Dividends for investors are paid out in Year 2 at 2% of $30.913 Additional Cash Received Sales Tax.913 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending Subtotal Spent on Operations $144. Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash from Operations Cash Sales Subtotal Cash from Operations $153. HST/GST Paid Out Principal Repayment of Current Borrowing Dividends Subtotal Cash Spent $0 $176 $0 $144.819 $0 $193. $600 monthly.980 $102.000 per month.000 will help us greatly not only in cushioning initial losses in Year 1. The initial investment of $30.e.765 $155.470 $167.200 $181.539 $193.933 Net Cash Flow Cash Balance $8. but also in allowing opportunities for expansion in Year 3.941 $0 $176 $7.413 Cash Received 20 | P a g e .176 $7.557 $167. i.470 $155.819 $153.693 $71. VAT. VAT.539 $212.539 $0 $212. HST/GST Received Subtotal Cash Received $0 $153.819 $193.557 Additional Cash Spent Sales Tax.846 $0 $7.5 Projected Cash Flow Our projected cash flow is outlined in the following chart and table.913 $212.6.433 $30.200 $162.878 $40.741 $30.765 $144.

Evaluation 7.934 $34.741 $580 $41.413 $580 $102. Pro Forma Balance Sheet Year 1 Year 2 Year 3 Current Assets Cash Other Current Assets Total Current Assets $40.280 $73.970 $863 $7.500 $27.672) $8.762 $65.100 $73.771 $30.570 $120 $1.500 ($4.433 $580 $72.6.6 Projected Balance Sheet The table below outlines the projected balance sheet.113 $1.938) $37.336 $102.073 Net Worth $34.993 Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets $1.009 $0 $7.450 $42.490 $80 $103.833 $0 $657 Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital $30.570 $1.833 ($206) $863 $657 Long-term Liabilities Total Liabilities $0 $8.146 $863 $8.280 $102.013 $102.771 $1.719 $65.009 $6.416 $103.580 $44.321 $71.113 $30.073 Liabilities and Capital Year 1 Year 2 Year 3 Current Liabilities Current Borrowing Other Current Liabilities Subtotal Current Liabilities $7.762 $42.570 $470 $1.1 How to measure success? 21 | P a g e .416 Assets 7.500 ($2.

7. In the hotter seasons. Ensure that actual sales from June to August reach the projected sales of 6. the Protein Quake will be offering products that will enhance sales and satisfy its customers' desires. In the long run.1. to further diversify our products. 22 | P a g e . 7. The Protein Quake will also have special menus for holidays for example protein egg nog during Christmas. the Protein Quake will extend its products into protein ice-cream. Achieving the second goal is imperative in keeping business in the black. 2. Expand with at least 3 new outlets by Year 3 2.125 units per month through effective marketing.2 Future plan As the season changes.Success will be measured based on whether short-term and long term goals are met.2. we will also sell protein and energy bars along with protein-rich food like sandwiches or protein cake. Long-term Goals: 1. especially among the youth. The Protein Quake's primary aim will be to listen to its customers to ascertain what they are looking for most and provide it. Short-term Goals: 1. product quality and differentiation.1. 7. Create a body-building culture within the city to promote greater health and self-esteem.1. Make a normal or supernormal net profit by the end of Year 1.