New Business Propsal - Research Paper Example

This strategy will enable the company to easily capture the older Chinese people. In general, fruits are good for the health. Therefore, it is a good business strategy to develop a wide-range of combined fruit juices to enable the company attracts a large population of health conscious individuals living in China. Executive Summaries and Business Pro Forma Executive summaries and business pro formas is about studying the market demand and analyzing the actual cost of establishing a business (The City of Victoria, 2011).

In general, drafting an executive summaries and business pro formas is important part of designing a business proposal since the process of going through the proposed business plan would give the business owner a better insight whether or not the proposed business idea is feasible or not. Specifically the population of China is one of the highest around the world. As of July 2010, the total population in China is a little more than 1.3 billion (Central Intelligence Agency, 2011a). Regardless of gender and sexual orientation, the target consumer for this product is between the age brackets of 15 – 64 years old is 72.

1% of China’s entire population or close to 965 million individuals (ibid). Aside from having a very low unemployment rate with only 4.3% as of the last quarter of 2010, makes the idea to operate the business in China more feasible and lucrative as compared to doing the business in the United Kingdom (Central Intelligence Agency, 2011b). To make the proposed fruit-, tea-, and coffee-based smoothies reach the target consumers in China, I intend to penetrate the target consumers by initially renting out a small booth or stalls in different malls in Shanghai.

In line with this, the top 10 malls in Shanghai China which I intend to establish a small booth or stalls include: Carrefour, No. 1 Department Store, Friendship Store, Grand Gateway Mall, Orient Department Store, Plaza 66, Shanghai Westgate Shopping Mall, Super Brand Mall, Westgate Mall, and Yaxin Plaza (World Guides, 2011). Aside from making it easier for me to pull out the stalls in areas wherein the volume of target consumers who will be purchasing fruit-, tea-, and coffee-based smoothies is low, one of the reasons why it is necessary to start the business in a small-scale includes cheaper rental fees and lower manpower cost.

By cutting down the daily operational cost in each mall, it is possible for me to take advantage of economies of scale and easily make the brand name be known to the public consumers. When managing the proposed business, it is very important on my part to reach the level higher than the break-even point. By reaching the break-even point, it means that I will not incur either business profit or loss. When computing for the break-even point, it is important to determine the variable and fixed operational expenses.

Regardless of whether or not the total volume of sales is high, the fixed operational cost is referring to fix expenses which I should pay each month. On the other hand, variable costs include expenses which may accumulate depending on the demand for the proposed product. The minimum monthly wage in Shanghai, Beijing and Tianjin China is 1,120 yuan or 11 yuan per hour