Rosella Functional Beverages & Food - Case Study Example

Rosella Functional Beverages & Foods (RFBF). P.O BOX ………………………. …………………….. Tel: …………………………. Email: ……………………….. BUSINESS PLAN March, 2013 Table of Contents I.0 EXECUTIVE SUMMARY 5 2.0 BUSINESS DESCRIPTION 7 2.1 Vision 7 2.2 Mission statement 7 2.3 Fact sheet 7 2.4 Business background 8 2.5 Products 8 2.6 Services 9 2.7 Location 10 2.8 Merchandising plan 10 2.9 Operating plan 10 2.9.1 Methods of record keeping 10 2.9.2 Insurance 10 2.9.3 Security 10 2.10 Organizational plan 11 2.10.1 Management 11 2.10.2 Personnel 11 3.0 MARKETING PLAN 12 3.1 Market description 12 3.2 Competition analysis 12 3.3 Selling strategies 12 3.4 Marketing approach 12 3.4.1 Methods of distribution 12 3.4.2 Advertising 13 3.4.3 Pricing 13 3.4.4 Product design 13 3.4.5 Timing of Market entry 13 3.4.6 Business trends 13 4.0 FINANCIAL PLAN 14 4.1 Capitalization plan 14 4.1.1 Income Projection Year 1 15 4.1.2 Income Projection Year 2 18 4.1.3 Income Projection Year 3 22 4.2 B.E. Analysis 25 4.3 Risk assessment 25 5.0 SUPPLEMENTARY DOCUMENTS 26 5.1 Product Pictorials for RFBF 26 26 26 5.2 Resumes 27 5.2.1 Director’s Curriculum Vitae 27 5.2.2 Production Manager’s CV 27 References 27 I.0 EXECUTIVE SUMMARY The business will entail manufacture of health beverages and herbal products. It will also provide services to other entrepreneurs interested in New Product Development (NPD). The raw materials will be sourced from farmers already subcontracted by the business proprietor (200 farmers distributed country wide in Kenyan towns of Kitale, Nyeri, Meru and Narok). These beverages have already undergone scientific analysis and have been proven to meet the Quality Standard by as stipulate by Codex Alimentarius Commission (CAC) and Kenya Bureu of Standards. The business will require an initial funding of Ksh 2Million to be sourced from Competitive grants e.g National Plan competition and Ministry of industrialization, Youth fund and loans from micro finance institutions. The first year will close with a balance of Ksh. 4,973,395M and a profit of 2.1M .The second year will close with a balance of Ksh. 7,212,399M and a profit of Ksh 5 million while the third year will close with a balance of Ksh. 8,561,403 and a profit of Ksh 6 Million. The current exchange rate is 1 USD= Ksh 85. The business will engage 6 people, 9 employees in the first and second year respectively. In the third year the business will be incorporated and therefore become a separate entity with a board of directors and directly employ 10- 20 employees and indirectly support over 1000 Kenyans. 2.0 BUSINESS DESCRIPTION 2.1 Vision To be a world class company of functional beverages and foods for a healthy diet 2.2 Mission statement To supply plant based foods & beverages, herbal products and mineral water to the Kenyan and international market. To offer client oriented, interactive and hands on product development work, services that shall assist other entrepreneurs, food processors and food producers with technical expertise to formulate food products for health lives. 2.3 Fact sheet Fruits are perishable and seasonal agricultural goods .They are essential in the human diet because they provide essential macro-nutrients and micronutrients. In the last decade however, functional foods have emerged, i.e. food that provide health benefits besides the traditional nutrients. Plant based foods are rich in Phytochemicals. 8This phytochemicals are chemicals in plants that have antioxidant properties. RFBF incorporates phytochemicals from different sources in the formulation of functional foods and Beverages in the choice of a healthy diet. This shall always be our unique selling proposition (USP) 7Overwhelming evidence from epidemiological and clinical trial data indicates that a plant-based diet can reduce the risk of chronic diseases, particularly cancer. In 1992, a review of 200 epidemiological studies showed that cancer risk in people consuming diets high in fruits and vegetables was only one-half that in those consuming low in these items (Block et al., 1992)1 It is now clear that there are components in a plant-based diet other than traditional nutrients that can reduce cancer risk. The fruit processing industry is still not exploited to the meaningful level. Many shelves in the supermarkets are filled with imported fruit juices. Most sectors of the food industry are running at below market capacity. RFBF will have a massive impact on Kenya in particular, offering market competitively and creating over 1000 jobs and supporting over 30,000 families. RFBF has not met its financial obligations and targets. The future of RFBF is solid and lucrative. The potential is tremendous and the market growth is guaranteed. 2.4 Business background Roselle (Hibiscus sabdariffa L.) is a rare plant in Kenya hence it has not been exploited despite its existing potential for a wider application in Food Industry. It is highly regarded from a stand point of nutritional, medicinal & economic value. The roselle calyces are rich vitamins, minerals and antioxidants that prevent diseases such as cardiovascular diseases & hypertension. RFBF exploits its potential in Healthy beverage manufacture. 2 A healthy mind needs to be supported by a nourished body. Our quality Moringa products help support healthy blood sugar levels and provide nutritional support for diabetics. They aid in eliminating toxins, stimulating digestion, and strengthening the immune system.3 Chamomile has a long history of use in Europe for digestive ailments. 4The active constituents of chamomile have anti-inflammatory properties, and ease spasm and discomfort in the digestive tract: Indigestion, Anxiety, Insomnia, Canker sores, Colic, Conjunctivitis, eye irritations, Crohn's disease, Diarrhea, Eczema, Gingivitis, Hemorrhoids, Menstrual disorders, Irritable bowel syndrome, Peptic ulcer e.t.c Lemon grass is a long thick grass with leaves at the top and a solid portion several inches long at the root end. The lower portion is sliced or pounded and used in cooking. As a spice, fresh lemon grass is preferred for its vibrant flavour, but is also sold in dried form. The dried spice is available in several forms: chopped in slices, cut and sifted, powdered, or as an oil can be extracted from the plant. Moringa , chamomile and lemon grass have all been incorporated by RFBF in formulation of the rosella herbal tea. 2.5 Products Herbage production/herbal teas, fruit based products: beverages, soft drinks, jam and wines. The fruit based beverages shall be naturally and/or mechanically preserved with permissible food grade additives. The fruit based products shall be produced when the raw materials are in season. Fruits Based beverages 1. Rosella Cordial 2. Rosella fruit flavored drinks including Rosella Apple Drink (RAD) and Rosella Orange Drink. 3. Mangoes –mango concentrates and reconstituted mango cordials 4. Oranges –concentrates 5. Passion-passion concentrates and also cordials based on the demand. Herbs and herbal tea bags 1. Rosella Herbal tea 2. Chamomile 3. Lemon grass 4. Moringa oleifera Other Products 1. Rosella apple wine (ROSPYNE) 2. Rosella jam 3. Fruit Mixed jams 2.6 Services The business shall provide client oriented, interactive and hands on product development. The services shall assist other entrepreneurs and food processors and food producers with technical expertise to formulate food products for market testing and sale. Development work shall range from 1. Just an idea that needs to be developed 2. A home developed recipe that needs improvement 3. A quality issue that needs to be overcome 4. Finding replacement ingredients for recipe using all natural and organic ingredients 5. Processing improvements 6. Shelf life development 7. Nutritional labeling RFBF staff members will assist to outline a scope of work for any project. 2.7 Location The business shall be located in the Nairobi province (city of Nairobi) with franchise business in Rift valley province of Kenya (Kitale & Narok), Upper Eastern province (Meru) and Coast Province (Mombasa). 2.8 Merchandising plan Sales team force shall be established by the National sales manager. 2.9 Operating plan 2.9.1 Methods of record keeping Chronological method of record keeping shall be followed to enable product traceability. This will be subject to improvement depending on growth and complexity of the business. 2.9.2 Insurance After initial installations insurance covers shall be provided for all the permanent and contractual employees. Casual and temporary employees shall be offered temporary insurance terms. 2.9.3 Security Security shall be contracted and provided for all the business staff on duty, buildings, holdings and RFBF assets. 2.10 Organizational plan 2.10.1 Management The Managing Director who is also the CEO will be the head of the administrative issues of organization, aided by the Finance Manager/Auditor, Production Manager, National sales manager and the IT Communications officer. 2.10.2 Personnel Personnel shall be hired on permanent, contract, temporary and casual basis. Employment will be required when the production and distribution so necessitates and the outputs are commensurate to inputs to earn profits. 3.0 MARKETING PLAN 3.1 Market description The market focus groups shall be segmented into age groups, income levels and geographical orientation 3.2 Competition analysis The beverage industry is faced with competition from Coca Cola, EABL, Kevian Industries and Del Monte who produces about 1M bottles per day. This is only 4% drinkage of the 40 M population in Kenya. There are other smaller players in fresh fruit and vegetable juices. The beverage industry is still underexploited and particularly functional foods are still at infancy stages. 3.3 Selling strategies Personal selling will be used in the first year and then a sales team shall be constituted to sell through the supermarkets, major hotels and shops within Nairobi and later penetrate the rest of the country counties. Export market including; German, UK, USA, countries in COMESA, EAC shall be sort for some of the functional foods and Herbal beverage products. The Export promoting council (EPC) shall be consulted in this venture. 3.4 Marketing approach 3.4.1 Methods of distribution Contractual distribution shall be established to ensure products reaches most part of the country. EPC shall be sort for the export market venture. 3.4.2 Advertising Television, print media, promotions and road shows shall be used to promote our products after launching the products. 3.4.3 Pricing The products will be based on creation for uniqueness rather than competitive pricing. Quality and customer satisfaction will be our driving force in our product pricing. Cost of production will be a key consideration in product price determination. 3.4.4 Product design Constant improvement of the product will be followed by the creativity department to ensure customer needs are satisfied and expectations exceeded. 3.4.5 Timing of Market entry Consciousness of the consumers will be timing of our market entry. 3.4.6 Business trends Health consciousness by consumers is driving the market. With a major shift to health enhancing foods that will cut down health care costs and enhance their wellbeing. This in essence is our unique selling proposition (USP). As clearly our products are functional i.e. they offer medicinal benefits besides the traditional nutrients of proteins, mineral, vitamins and carbohydrates. 4.0 FINANCIAL PLAN 4.1 Capitalization plan The capital will be acquired from Grants e.g. Jitihada and financial institutions like Kenya industrial estates, and incubation support from KIRDI, EPZA and EPC and JKUAT. Loans from microfinance institutions e.g. Faulu Kenya. Leases of land for production of the raw materials .Some farmers will be contracted to supply the raw materials. About 500 acres will be required to be able to supply the market consistently with our high valued products after the third year, since we shall be mature through the incubation period to export our products to overseas, including German, UK, Malaysia, Italy and USA. Common manufacturing unit will be sought by the service providers like KIRDI and EPZA. 4.1.1 Income Projection Year 1 ROSELLA FUNCTIONAL BEVERAGES &FOODS CASH FLOW YEAR 1 MONTHS 1 2 3 4 5 6 7 8 9 10 11 12 CASH INFLOW B/F(Grant) 2,000,000 798,192 897,184 1,194,176 1,491,168 1,652,160 1,995,583 2,507,000 3,017,717 3,529,144 4,040,561 4,451,978 Rosella Drinks 564,000 752,000 752,000 752,000 752,000 940,000 940,000 940,000 940,000 940,000 940,000 Passion Juice 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Mango Juice 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Rosella Wine 240,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 Rosella Herbal Tea 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Rosella Jam 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 Moringa olleifera 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Lemon Grass 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Chamomile 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 TOTAL CASH INFLOWS 2,000,000 1,660,992 2,027,984 2,324,976 2,621,968 3,102,960 3,634,383 4,145,800 4,656,517 5,167,944 5,679,361 6,090,778 CASH OUTFLOW Fixed cost Fruit pulp finisher 170,000 steel sufurias 40,000 Steel tables 60,000 Refrigirator 60,000 Cooking Gas 30,000 Storage Vans 20,000 Deep freezer 50,000 Fruit Juicer/Blender 14,000 sealing machine 2,000 Cutlery 3,000 weighing scale 5,000 weighing Balance 10,000 Variable Cost Rent for premises 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Electricity 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Water 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Cost of raw materials Rosella calyces 160,000 240,000 240,000 240,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Apples 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 Oranges 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Passion Fruits 32,000 32,000 32,000 32,000 32,000 32,000 32,000 Mangoes 32,000 32,000 32,000 32,000 32,000 32,000 32,000 Lemon 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Moringa 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Lemon Grass 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Chamomile 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Pectin 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Winers yeast 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Sugar 88,725 88,725 88,725 88,725 88,725 182,300 182,300 182,300 182,300 182,300 182,300 182,300 Packaging Materials 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 Product labels 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 Distribution cost 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Salaries 48,000 64,000 64,000 64,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 TOTAL OUTFLOWS 1,201,808 833,808 833,808 833,808 969,808 1,127,383 1,127,383 1,127,383 1,127,383 1,127,383 1,127,383 1,127,383 BALANCE( IN-OUT) 798,192 897,184 1,194,176 1,491,168 1,652,160 1,995,583 2,507,000 3,017,717 3,529,144 4,040,561 4,451,978 4,973,395 4.1.2 Income Projection Year 2 ROSELLA FUCTIONAL BEVERAGES &FOODS CASHFLOW YEAR 2 MONTHS 1 2 3 4 5 6 7 8 9 10 11 12 CASH INFLOW B/F(Grant) 4,973,395 4,600,812 4,838,229 5,075,646 5,313,063 5,550,480 5,787,897 6,025,314 6,262,731 6,500,148 6,737,565 6,974,892 Rosella Drinks 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 Passion Juice 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Mango Juice 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Rosella Wine 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 Rosella Herbal Tea 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Rosella Jam 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 Moringa olleifera 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Lemon Grass 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Chamomile 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 TOTAL CASH INFLOWS 6,612,195 6,239,612 6,447,029 6,714,446 6,951,863 7,189,280 7,426,697 7,664,114 7,901,531 8,138,948 8,376,365 8,613,782 CASH OUTFLOW Fixed cost Lease Land 60,000 Computer 50,000 Pickup 500,000 Variable Cost Rent for premises 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Electricity 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Water 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Cost of raw materials Rosella calyces 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 Apples 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 Oranges 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Passion Fruits 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 Mangoes 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 Lemon 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Moringa 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Lemon Grass 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Chamomile 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Pectin 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Winers yeast 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Sugar 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 Packaging Materials 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 Product labels 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 Distribution cost 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Stationery & apparels 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Agronomy & farm Husbandry 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Salaries 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 TOTAL OUTFLOWS 2,011,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 BALANCE (IN-OUT) 4,600,812 4,838,229 5,075,646 5,313,063 5,550,480 5,787,897 6,025,314 6,262,731 6,500,148 6,737,565 6,974,982 7,212,399 4.1.3 Income Projection Year 3 ROSELLA FUNCTIONAL BEVERAGES & FOODS CASH FLOW YEAR 3 MONTHS 1 2 3 4 5 6 7 8 9 10 11 12 CASH INFLOW B/F(Grant) 7,212,399 5,949,816 6,187,233 6,424,650 6,662,067 6,899,484 7,136,901 7,374,318 7,611,735 7,849,152 8,086,569 8,323,986 Rosella Drinks 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 940,000 Passion Juice 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Mango Juice 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Rosella Wine 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 Rosella Herbal Tea 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Rosella Jam 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800 Moringa olleifera 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Lemon Grass 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Chamomile 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 TOTAL CASH INFLOWS 8,851,199 7,588,616 7,826,033 8,063,450 8,300,867 8,538,284 8,775,701 9,013,118 9,250,535 9,487,952 9,725,369 9,962,786 CASH OUTFLOW Fixed cost Land 1,500,000 Variable Cost Rent for premises 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Electricity 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Water 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Cost of raw materials Rosella calyces 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 Apples 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 Oranges 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Passion Fruits 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 Mangoes 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 Lemon 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Moringa 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Lemon Grass 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Chamomile 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50 Pectin 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Winers yeast 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Sugar 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 182,300 Packaging Materials 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 81,900 Product labels 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 54,670 Distribution cost 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Stationery & apparels 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Agronomy & farm Husbandry 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Salaries 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 364,000 TOTAL OUTFLOWS 2,901,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 1,401,383 BALANCE (INFLOWS-OUTFLOWS) 5,949,816 6,187,233 6,424,650 6,662,067 6,899,484 7,136,901 7,374,318 7,611,735 7,849,152 8,086,569 8,323,986 8,561,403 4.2 B.E. Analysis The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". A profit or a loss has not been made, although opportunity costs have been paid, and capital has received the risk-adjusted, expected return. Incase RFBF cannot sell more products, to ensure viability: 1. RFBF will try to reduce the fixed costs (by renegotiating rent for example, or keeping better control of or other fixed costs) 2. RFBF will try to reduce variable costs (the price it pays for the raw materials by finding new suppliers) 3. Increase the selling price of the products 4.3 Risk assessment 1. Product consumer acceptability rated high 2. Available market for products 3. Health benefits and willing farmers who have already been subcontracted (about 150 farmers). 4. Climate predictability. I the undersigned declare that the statements made herein are for the purpose of obtaining business financing and are to the best of my knowledge true and correct. I consent to the bank making any inquiries it deems necessary to reach a decision on this information about me to any credit reporting agency or to anyone with whom I have financial relations. Date …………………………….Signature of Applicant……………………………… 5.0 SUPPLEMENTARY DOCUMENTS 5.1 Product Pictorials for RFBF Rosella Drinks and Rosella wine Rosella Herbal Tea Moringa Chamomile and Lemon Grass 5.2 Resumes 5.2.1 Director’s Curriculum Vitae 5.2.2 Production Manager’s CV References 1. Ayoola, G.A., Sofidiya,T., Odukoya, O. and Coker, H.A.B. (2006). Phytochemical screening and free radical scavenging activity of some Nigerian medicinal plants. J Pharm Sci & Pharm Pract. 8: 133-136. 2. Azizah A.H., Ruslawati N.M., Swee T. (1999). Extraction and characterization of antioxidant from cocoa by-products. Food Chem. 64, 199-202. 3. Bravo, L. (1998). Polyphenols; dietary sources, metabolism and nutritional significance. Mycologia, 67: 311-319. 4. Babalola, S.O. (2000). Chemical analysis of roselle leaf organs.(Hibiscus sabdariffa), in proceeding of 24th annual conference of NIFST, pp. 228-229. 5. Clydescale, F.M., Maina J.H. & F.J. Francis. (1979). Roselle (Hibiscus sabdarifa) anthocyanins as colorants for beverages and gelatin dessets. J. Food protection.42:204-267. 6. CTA, (2001). The fruits we eat. Technical center for agriculture and rural cooperation. Washington, the Netherlands, pp: 9:20. 7. Gansch, H., Weber, C.A, Lee, C. (2009). Antioxidant capacity and phenolic phytochemicals in black raspberries. New York Fruit Quarterly.Vol.17: 1 8. Ina, K., Sakata, K. Tomita, L. and Isemura, M. (eds) (2002). Ten components and their function. Kawasaki, Japan. Read More