Business Plan: Express Bottle Maker, Gmbh

BUSINESS PLAN: Express Bottle Maker, GmbH

Table of Contents

1. Executing Summary 4

2. The Business 5

2.1. The Opportunity 5

2.2. The Description of the Business 6

2.3. Competitive Advantage 7

2.4. Current Status and Requirement 9

3. Management Team 10

3.1. Management Team 10

3.2. Board of Directors and Advisers 12

3.3. Key Professional Services Providers 13

4. Company Structure, Intellectual Property, and Ownership 13

4.1. Organizational Structure 13

4.2. Legal Structure 15

4.3. Intellectual Property 16

5. Industry Analysis 16

5.1. Industry Description 16

5.2. Target Market 20

5.3. Competitive Position within Target Market 25

6. Marketing Plan 25

6.1. Product Feasibility and Strategy 25

6.1.1. Product Strategy 26

6.1.2. Concept Testing 26

6.1.3. Usability Testing 26

6.2. Pricing Strategy 27

6.3. Channels of Distribution 27

6.4. Promotions and Advertising 28

7. Operational Plan 29

7.1. Method of Services Delivery 29

7.2. Availability of Qualified Labor Pool 30

7.3. Business Partnership 30

7.4. Quality Control 31

7.5. Customer Support 31

8. Financial Plan 32

8.1. Capital Requirements for the Next Three to Five Years 32

8.2. Overview of Financial Projection 33

8.3. Income Statements 33

8.4. Cash Flow Projections 33

8.5. Balance Sheet 34

8.6. Payback and Exit Strategy 34

9. Critical Risk Factors 35

9.1. Management Risks 35

9.2. Marketing Risks 35

9.3. Operating Risks 36

9.4. Financial Risks 36

9.5. Intellectual Property Infringement 36

Reference 38

Appendices 40

1. Executing Summary

With increasing complexity of society, people tend to be more busing with their working life and hence, they are unable to devote sufficient time to their families and children. Besides, they also need to assure a healthy and secure life for their babies. In this situation, people have become highly depended on technology to save their time and energy with higher accuracy. Express Bottle Maker has realized this opportunity and hence, developed a machine for busing parents that prepares bottle milk for babies.

The USP of this machine is that it prepares the bottle milk for babies eight times in a day by saving time and energy and by offering milk without any kind of harmful micro-organism. The machine prepares milk with the optimum temperature for keeping the proteins and vitamins unaffected which cannot be maintain using the ‘time-taking' pre-mixed formula. The features of the newly invented product strives to create a competitive advantage as there is no direct competition in the market and Express Bottle Maker will manufacture the product with patent right.

The target market for the product includes the middle income and wealthy people having more that €2600 per week. The main focus will be on the working parents and single residing in the busy urban areas.

The management team will consist of three boards of directors and one chairman and adviser who will be shareholders. There are five major departments and there will be the head executives for each department. They will responsible for managing their areas and will directly report to the CEO.

The financial projection is based on the projected sales for the next three years i.e. 1000, 1300 and 1600 respectively. For the first 2 operating years, Express Bottle Maker will incur losses and during third year, it is expected to cross the breakeven point and will earn a profit of €7,425. The total startup for the business is around €269,125 which will sued to acquiring assets and other operating and capital expenses. In the first three operating years, the Express Bottle Maker aims to strengthen its financial position by increasing its assets and capacity and to cross the breakeven by increasing the sales. The two major exits strategy for investors are sold out the share to other investors and to obtain loan for repaying shareholders' equity.

2. The Business

2.1. The Opportunity

One of the primary and necessary virtues of entrepreneurs is the capability of identifying the underlying opportunities and the capability of catering those opportunities by taking viable and profitable initiatives. Sometimes, it is very difficult to realize the opportunities for any business, but innovative and creative entrepreneurs develop certain products or services of such utility that aims to create market demand. For example, the products likes tablet PC, iPod etc have created their demand and utility in the market.

However, this business plan aims to cater the market by offering an innovative product for the underlying opportunity. Today, in post-modern organization, people have become too busy in their processional and working life to cope with the family responsibilities. Considering the present scenario, the entire society have become too competitive where people have to manage their working and family responsibilities. Taking care of new born babies in a proper way is a challenging task as mothers have to be very careful in every step like proper food, hygiene, medical assistance etc. Besides, every task must be executed in proper time like feeding and any kind of delay or lack of accuracy in these tasks may create serious problem for the babies. On the other hand, with increasing complexity of social life and business, people would like to take help of new technologies and machines that strive to make their life simpler and fast with proper accuracy.

2.2. The Description of the Business

The product for this business plan is an automated machine that prepares milk for babies by pressing a single button. The machine strives to save time of the mother taking care of their child in better way by offering hygienic milk free of any kind of harmful micro-organisms. The machine will serve the number of mothers' intentions who want to feed their babies in timely with proper hygiene and nutrient. Basically, the middle income groups and wealthy families will accept the product for better caring of their babies.

The machine will be manufactured by Express Bottle Maker, GmbH a new start up venture based in Germany. This newly startup company has no any significant history as the company is about start its business activities followed be a proper business plan. Express Bottle Maker is privately held company and will focus on Germany market for commercializing its newly invented machine.

The primary objective of the Express Bottle Maker is to offer its useful product to its potential target market for making their life easier for them and better for their babies. Therefore, in order to serve the market for long run, it is also very necessary to maintain its existence in the market for log run by taking sustainable business process. Hence, securing an ample amount of profitability is also another prime objective for the company. Besides, for specific aim and goal Express Bottle Maker has developed its sustainable mission statement. The mission of Express Bottle Maker is to offer better life for mothers and their babies by achieving the overall organizational growth simultaneously.

2.3. Competitive Advantage

A company can gain competitive advantage by strengthening its core competencies. For example, certain companies are famous for their low prices; whereas, other companies are famous for their highly quality products or services. Besides, a company can also gain a sustainable competitive advantage by developing specific strategies for their specific task like distribution, promotion, consumer relationship etc. Express Bottle Maker is a newly formed privately held company and will be engaged in manufacturing operations. A manufacturing business includes a number of tasks which can be categorized into two major sections i.e. primary and supporting. The primary activities are management of supply chain and logistic, manufacturing and inventory, marketing, sales and after services. The supporting

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