BUSINESS PLAN
Prepared & Presented by Knight Newcomb
TABLE OF CONTENTS
Executive Summary
01
Company Description
02-03
Product
04-07
Market Analysis
08-11
Marketing Plan
12-20
Management
21-22
Financial Plan
23-24
Financial Forecast
TBD
EXECUTIVE SUMMARY
NeuAG, a leader in the manufacturing of ammonium
sulfate products primarily used in agricultural fertilizers,
is diversifying its portfolio with the introduction of Yellow
Crush, a revolutionary product designed to combat
common algae issues in the pool maintenance sector.
Capitalizing on our legacy of providing high-quality
products and demonstrating a strong commitment to
innovation and customer satisfaction, we aim to
penetrate this lucrative market and solve a persistent
problem faced by pool owners.
Green and mustard algae are prevalent issues faced by
residential and commercial pool owners, capable of
significantly degrading the aesthetics and usability of
pools if not promptly and effectively addressed. We have
developed Yellow Crush to tackle this issue head-on,
utilizing our extensive knowledge and expertise in
ammonium sulfate solutions to offer a transformative
product capable of converting algae-ridden pools into
clear, clean waters within days.
Yellow Crush's defining feature is its 100% purity, a
characteristic that decisively sets it apart from competing
products in the market.
Although products like Yellow Out employ ammonium
sulfate, they are not as pure, often containing additional
fillers or dyes. For example, Yellow Out has a purity level
of just 90% and is dyed, a gap in quality that our product
effortlessly bridges.
Through Yellow Crush, we're bringing a pure, in-house
product to market, presenting an advantageous
opportunity to extend the breadth of our product line,
serve a new customer base, and leverage our
established reputation for quality and innovation.
With the launch of Yellow Crush, NeuAG is poised to
establish a robust presence in the pool maintenance
market. Our focus remains on delivering a highly
effective, user-friendly solution to algae problems. This
novel application of our core expertise aligns perfectly
with our long-standing dedication to quality, customer
satisfaction, and innovative product solutions. As we
move forward, we eagerly anticipate the positive impact
Yellow Crush will have on pool owners nationwide, and
the consequential growth and success we foresee for
NeuAG in this exciting new sector.
01
COMPANY DESCRIPTION
Structure
Mission
Yellow Crush, LLC is a Texas-based Limited Liability
Company, newly formed to exclusively to distribute the
Yellow Crush pool cleaner. NeuAG, a well-established
producer of ammonium sulfate and ammonium sulfate
blends, will manufacture the product.
Yellow Crush LLC's mission is to provide high-quality,
effective pool cleaning solutions that meet the needs of
both individual consumers and businesses. With the
launch of Yellow Crush, the company aims to deliver a
product that exceeds customer expectations in the algae
remedy market.
Product
Yellow Crush is a pool cleaner designed to effectively
combat algae in pools. Manufactured by NeuAG, Yellow
Crush utilizes the proven power of ammonium sulfate to
turn algae-ridden, murky pools into clean, inviting
spaces.
Vision
Yellow Crush LLC's vision is to become a leading
provider of pool cleaning solutions, standing out for its
purity, commitment to quality, effectiveness, and
customer satisfaction. The company strives to
continuously innovate and expand its product range to
meet the evolving needs of the consumer.
02
COMPANY DESCRIPTION
Target Market
Yellow Crush LLC's primary target market includes
owners, managers, and developers of residential and
commercial pools who require an effective solution for
algae control. The company also plans to target
customers who value products with proven ingredients,
like ammonium sulfate. Yellow Crush will be sold through
business-to-business channels as well as directly to
consumers via e-commerce.
CompetitIve Advantage
Yellow Crush LLC's competitive advantage stems from
its partnership with NeuAG, a company with extensive
experience and expertise in the production of ammonium
sulfate blends. This experience is translated into the
development of Yellow Crush, ensuring a reliable and
effective pool cleaning solution. Furthermore, Yellow
Crush LLC's commitment to customer satisfaction and
product purity sets it apart in the market.
03
PRODUCT
Product Name
Yellow Crush - 100% Pure, 100% Crush
Market Stage
Competitive Advantage
Yellow Crush is our flagship product slated for launch.
It's designed as an effective solution to treat and
eradicate yellow algae problems in water bodies.
Manufactured with 100% pure ammonium sulfate, our
product stands at the market-ready stage, having
undergone NeuAG’s rigorous development and testing
processes of the ingredient.
Yellow Crush LLC's competitive advantage stems from
its partnership with NeuAG, a company with extensive
experience and expertise in the production of ammonium
sulfate blends. This experience is translated into the
development of Yellow Crush, ensuring a reliable and
effective pool cleaning solution. Furthermore, Yellow
Crush LLC's commitment to customer satisfaction and
product purity sets it apart in the market.
Features and Benefits (Value Proposition)
Yellow Crush's standout feature is its purity – it's made
from 100% pure ammonium sulfate, setting it apart from
most products on the market that are blends containing
dyes and fillers. This purity guarantees optimal
performance, offering customers a reliable, high-quality
solution to their yellow algae problems. Our product is
designed to be easy to use, offering efficient algae
control with minimal effort.
Problem & Solution
Yellow algae in water bodies can be a persistent issue
for many, affecting the clarity and quality of the water.
Yellow Crush directly addresses this problem, offering a
powerful solution that can effectively eliminate yellow
algae, improving water clarity and cleanliness.
04
PRODUCT
Innovation & Proprietary Advantages
Sales & Distribution
Our innovation lies in our decision to forgo the typical
use of blends with dyes and fillers. We exclusively use
100% pure ammonium sulfate, providing our customers
with a high-quality product that doesn't compromise on
performance. Our manufacturing process has been
refined by NeuAG to ensure the consistent quality of
Yellow Crush, setting it apart in the market.
Yellow Crush will be conveniently packaged in a 2lb bag,
designed to treat 15,000 gallons of water. This standard
sizing aligns with market expectations and offers easy
comparison with competitor products. It will be available
for purchase through various channels including our
online store and select physical locations to ensure wide
accessibility for our customers.
Product Life-Cycle & Future
We anticipate a long-term demand for Yellow Crush,
given the widespread need for effective, high-quality
algae control products. As we grow and scale our
operations, we plan to further innovate and expand our
product range while consistently maintaining our
commitment to quality and purity.
05
PRODUCT
LOGO VARIANT #1
06
PRODUCT
LOGO VARIANT #2
07
MARKET ANALYSIS
Summary
The pool maintenance market is a thriving sector, driven
by the increasing number of private and public pools and
the need to maintain these facilities' cleanliness and
safety. Within this market, the demand for effective algae
removal solutions is high.
Green and mustard algae are common problems in
pools. When not treated promptly and effectively, these
algae can compromise both the appearance and
usability of the pool. Currently, several solutions are
available to pool owners, but these often fall short in
terms of effectiveness, ease of use, or safety.
Enter Yellow Crush. NeuAG has leveraged its extensive
expertise in ammonium sulfate-based solutions to
develop a product that not only effectively eliminates
green and mustard algae but also has an enhanced
purity formulation.
With this superior formulation and user-friendly
application, Yellow Crush is uniquely positioned to
capture a significant share of the algae removal market.
We anticipate that pool owners, both private and public,
will appreciate Yellow Crush's effectiveness and ease of
use, and that this will drive strong demand for our
product.
Yellow Out is one such product. While it has gained
popularity due to its effectiveness in tackling green and
mustard algae, there is room for improvement. Yellow
Out contains 90% di-ammonium sulfate. The
recommended dosage is to add directly to the pool 2
pounds of Yellow Out per 15,000 gallons of pool water.
08
MARKET ANALYSIS
Industry Overview
The global pool cleaning market is a dynamic and
growing industry. As of our last data point in 2023, the
market was projected to reach $2.7 billion by 2027,
growing at a CAGR of 3.9% from 2020 to 20271. This
growth is fueled by an increase in the number of
residential and commercial pools, a growing preference
for professional pool cleaning services, and the
introduction of innovative products. Within this industry,
the algae cleaning segment holds significant potential,
as algae growth is a common problem faced by pool
owners.
Target Market
Yellow Crush LLC's primary target market is residential
and commercial pool owners who require an effective
solution for algae control. These customers are likely to
value products with proven ingredients, purity of mixture,
and fast-acting formulas.
Geographic location is not a limiting factor for our
market, as Yellow Crush will be sold nationwide via
e-commerce. We also aim to reach out to pool cleaning
professionals, pool supply distributors, real estate
management and development companies as Yellow
Crush can serve as a reliable tool in their arsenal.
Competition
Our principal competitor is Yellow Out, a product that
utilizes a similar active ingredient – ammonium sulfate.
Yellow Out is recognized for its effectiveness against
green and mustard algae but their mixture is only 90%
pure with the remaining 10% being comprised of dyes
and fillers.
We also will compete with numerous other brands
offering pool cleaning and algae control products. These
competitors may provide cheaper alternatives, but their
effectiveness, purity and reliability can vary significantly.
09
MARKET ANALYSIS
Competitive Advantage
Conclusion
Yellow Crush sets itself apart through its potent
formulation, user-friendly application, and strategic
distribution plans. Produced by NeuAG, Yellow Crush
uses the proven efficacy of ammonium sulfate in a
format designed for ease of use, reducing the possibility
of misuse and potential negative reactions. Our plan to
establish
distribution
through
nationwide
pool
distributors, retail chains, and real estate management
companies also provides a competitive edge, offering
increased accessibility to our target customers. Finally,
Yellow Crush LLC's commitment to delivering
unmatched customer service and satisfaction will serve
as a distinguishing factor in the market.
In conclusion, the marketing analysis has highlighted
several key factors that underline Yellow Crush's
potential for success in the global pool cleaning market.
The market's strong growth prospects, driven by
increasing numbers of residential and commercial pools
and the rising preference for professional cleaning
services, provide a fertile environment for our product's
launch.
Our target market's broad range, encompassing
residential and commercial pool owners, pool cleaning
professionals, and pool distributors, ensures we have a
substantial audience to engage with our product.
Furthermore, our intent to distribute Yellow Crush
nationwide via e-commerce and physical stores extends
our reach beyond geographic limitations, setting the
stage for wide-scale brand recognition and customer
loyalty.
10
MARKET ANALYSIS
Conclusion (cont’d)
Coupled
with
user-friendly
application
and
comprehensive customer service, our product offers
tangible benefits that meet the real needs of pool owners
and professionals.
Yellow Crush’s unique selling proposition of 100% purity
and efficacy gives us an edge over the competition.
Coupled
with
user-friendly
application
and
comprehensive customer service, our product offers
tangible benefits that meet the real needs of pool owners
and professionals.
Our distribution strategy also needs to ensure our
product is readily accessible across various channels.
In essence, our marketing analysis underscores the
promising opportunities for Yellow Crush while
highlighting the importance of strategic marketing and
distribution plans. By leveraging our unique product
attributes, emphasizing customer satisfaction, and
tapping into the digital prowess of an e-commerce
platform, Yellow Crush is poised to carve out its niche in
the vibrant pool cleaning market.
Nonetheless, this marketplace is not without its
challenges. The presence of strong competitors with
similar products means we cannot afford to be
complacent. This necessitates an agile and responsive
marketing strategy that not only communicates our
product's benefits but also fosters a strong
brand-customer relationship.
11
MARKETING PLAN
Summary
Marketing Strategy
Yellow Crush is a market-ready solution engineered to
combat persistent yellow algae in swimming pools.
Manufactured with 100% pure ammonium sulfate,
Yellow Crush guarantees high performance, ease of use,
and accessibility via multiple sales channels including
e-commerce and in-store sales through our distribution
network.
Segmentation and Targeting
Situation Analysis
Positioning
We operate within a vibrant global pool cleaning
industry, valued at $2.7 billion, with our main competition
being Yellow Out and other algae control products. Our
product's unique purity and ease of use sets us apart
from competitors and places us in a strong position to
succeed.
Yellow Crush will position itself as a premium,
high-quality, user-friendly, and efficient solution for algae
control in swimming pools. Our key selling points will be
the product’s purity (100% ammonium sulfate) and easy
application.
Our primary market includes residential and commercial
pool owners, pool cleaning professionals, and
nationwide pool distributors and retailers. We also target
real estate management companies with multiple
properties that house pools.
12
MARKETING PLAN
Objectives
●
●
●
Secure shelf space in 20% of nationwide pool
distributors and retail chains within the first year.
Achieve 15% market share among professional
pool cleaning services within two years.
Reach a 3% share of the direct-to-consumer
market in our first year, increasing to 10% by
year three.
Marketing Mix
1. Product
Yellow Crush - a potent, easy-to-use solution for treating
and eliminating yellow algae problems in water bodies,
manufactured with 100% pure ammonium sulfate.
2. Price
Pricing will be competitive yet reflect the premium quality
and unique formulation of Yellow Crush. Special
discounts and bulk pricing will be offered to professional
pool cleaning services and real estate management
companies.
3. Place
Distribution will be broad and include direct-to-consumer
through our online store, physical retail outlets,
nationwide pool distributors, and real estate
management companies.
13
MARKETING PLAN
4. Promotion
Sales Forecast and Budget
Promotion will be a mix of digital and traditional
marketing methods:
We project robust sales given the market demand, the
unique features of our product, and our competitive
pricing strategy. A detailed sales forecast and marketing
budget will be prepared to guide our efforts and track
progress.
●
Digital marketing efforts will include a dedicated
website and e-commerce platform, SEO,
targeted social media campaigns, and email
marketing.
●
Traditional marketing will involve partnerships
with distributors, trade shows, and print ads in
industry publications.
●
Incentives such as first-purchase discounts and
referral bonuses will be offered to attract and
retain customers.
Control and Evaluation
We will closely monitor key performance indicators such
as sales volume, market share, customer satisfaction,
and website traffic. Regular reviews will be conducted to
assess the effectiveness of the marketing plan and make
necessary adjustments. We aim to ensure the consistent
quality and customer satisfaction that Yellow Crush
promises.
14
MARKETING PLAN
Marketing Implementation Strategy
1. Digital Marketing Strategy
●
●
Website and E-Commerce Platform: A
user-friendly
website
with
a
seamless
e-commerce platform will be developed. The
website will host engaging product descriptions,
testimonials, how-to videos, and FAQs to aid in
customer education and decision-making. An
intuitive and secure checkout process will be
critical to facilitate online sales.
SEO: Optimize our website for search engines
to improve our organic rankings, increase
visibility, and attract more potential customers.
Regularly updating the site with SEO-friendly
content, like blog posts and articles about pool
maintenance and the benefits of Yellow Crush,
can aid this effort.
●
Email Marketing: Launch an email marketing
campaign to nurture leads and retain customers.
Regular updates about Yellow Crush, pool
maintenance tips, special offers, and company
news can be shared.
●
Social Media Campaigns: Utilize platforms like
Facebook, Instagram, and Twitter to promote
Yellow Crush, share user testimonials,
announce discounts, and engage with
customers. Paid social ads targeting our specific
demographic can also be used to boost reach.
15
MARKETING PLAN
Marketing Implementation Strategy
1. Digital Marketing Strategy
●
●
●
Website and E-Commerce Platform: A
user-friendly
website
with
a
seamless
e-commerce platform will be developed. The
website will host engaging product descriptions,
testimonials, how-to videos, and FAQs to aid in
customer education and decision-making. An
intuitive and secure checkout process will be
critical to facilitate online sales.
SEO: Optimize our website for search engines
to improve our organic rankings, increase
visibility, and attract more potential customers.
Regularly updating the site with SEO-friendly
content, like blog posts and articles about pool
maintenance and the benefits of Yellow Crush,
can aid this effort.
Email Marketing: Launch an email marketing
campaign to nurture leads and retain customers.
Regular updates about Yellow Crush, pool
maintenance tips, special offers, and company
news can be shared.
●
Social Media Campaigns: Utilize platforms like
Facebook, Instagram, TikTok, and Twitter to
promote Yellow Crush, share user testimonials,
announce discounts, and engage with
customers. Paid social ads targeting our specific
demographic will be used to boost reach.
2. Traditional Marketing Strategy
●
Partnerships: Develop relationships with pool
distributors, retail chains, and real estate
management companies for product placement
and promotion.
●
Trade Shows: Attend industry-specific trade
shows to showcase Yellow Crush, providing live
demonstrations and free samples to attract
potential customers and distributors.
●
Print Ads: Leverage industry publications for
print advertising to reach a broader,
industry-specific audience.
16
MARKETING PLAN
Control and Evaluation Metrics
Risk Management
●
Potential risks include changes in industry
regulations affecting our product, aggressive
competition,
or
changes
in
consumer
preferences. Regular market and consumer
behavior research, along with contingency
planning, will be crucial in risk management.
●
This marketing plan offers a comprehensive
approach to successfully launching Yellow Crush
in the market. By leveraging digital and
traditional marketing methods and focusing on
customer satisfaction, we can secure a strong
foothold in the pool cleaning industry.
Key performance metrics will be monitored closely:
●
Sales Volume: Track sales both online and
through physical outlets, observing any trends or
patterns in buying behavior.
●
Market Share: Regularly evaluate our market
share to assess our standing against
competitors.
●
Customer Satisfaction: Implement customer
satisfaction surveys and monitor online reviews
and feedback to identify areas of improvement.
●
Website Analytics: Track metrics such as site
traffic, bounce rate, and conversion rate to
evaluate the effectiveness of our digital
marketing efforts.
17
MARKETING PLAN
Pricing Strategy
Partnership Strategy
Given Yellow Crush's unique selling proposition of 100%
purity, we will adopt a premium pricing strategy that
reflects the high-quality and performance of our product.
However, we will ensure that our pricing remains
competitive within the market, so as not to deter
potential customers.
We aim to foster long-term relationships with key
industry players to broaden our distribution network and
increase product accessibility.
●
For residential pool owners and casual buyers,
we will price our product competitively with
similar premium products in the market.
●
For professional pool cleaning services and real
estate management companies, we will offer
bulk discounts to encourage larger orders.
●
For online sales, we may occasionally offer
promotional, and/or “first purchase” discounts to
incentivize
purchases
and
attract
new
customers. Free shipping on orders over a
certain amount spent can also incentivize
customers.
●
Approach pool equipment distributors and retail
chains for distribution deals. We will provide
them with comprehensive product training and
promotional materials to help them effectively
sell our product.
●
Collaborate with real estate management
companies. They can serve as reliable partners
for large, repeat orders due to their extensive
portfolio of properties with pools.
●
Engage with professional pool cleaning services,
providing them with bulk discounts and
highlighting the superior effectiveness of Yellow
Crush as a tool for their services.
18
MARKETING PLAN
Customer Service Strategy
Post-Launch Strategy
To build a strong brand reputation and foster customer
loyalty, we will invest in providing exceptional customer
service.
Once Yellow Crush has been launched, we will
continually monitor and refine our marketing efforts
based on performance metrics and customer feedback.
●
●
●
A dedicated customer service team can handle
inquiries, complaints, and feedback. They will be
trained to provide solutions quickly and
efficiently. There are also some new solutions
available from AI programs that offer effective
customer service products.
●
Collect and analyze sales data to understand
buying trends and customer preferences.
●
Conduct regular market research to stay
updated on industry trends and competitor
strategies.
Utilize online platforms to provide prompt
responses to customer queries and issues. This
includes social media, emails, and live chat on
our website. Live chat is a good example of
where AI can be implemented.
●
Launch customer satisfaction surveys to gather
valuable insights into our product performance
and areas of improvement.
●
Continually optimize our website and digital
marketing efforts based on analytics data.
●
Expand our distribution network and form new
partnerships to increase market reach.
●
Based on the product's performance and
customer needs, consider developing additional
products or variants to diversify our portfolio.
Regularly gather customer feedback to
understand their needs and expectations better
and to continually improve our product and
services.
19
MARKETING PLAN
Conclusion
In today's increasingly digital and interconnected world,
an e-commerce storefront is not just a luxury, but a
necessity for businesses seeking to reach a broader
audience and maximize sales. The adoption of online
shopping has grown significantly in recent years,
propelled by factors such as convenience, wider
selection, and the ability to compare prices and read
reviews instantly.
For Yellow Crush, an e-commerce platform can provide
an invaluable opportunity to directly connect with
customers on a nationwide scale, unhindered by
geographic limitations inherent in brick-and-mortar retail.
It allows us to tap into the growing consumer preference
for online shopping, which has been further amplified by
the shift in consumer behavior due to the COVID-19
pandemic.
Furthermore, an e-commerce storefront offers a
cost-effective channel for reaching and serving our
customers.
The operational costs of maintaining an online store are
generally lower compared to physical stores, enabling us
to sell our product at competitive prices without
compromising on profit margins. We can also save on
distribution costs, especially when selling directly to
consumers, thereby improving our bottom line.
The ability to gather and analyze customer data is
another major advantage of e-commerce. Through
website analytics, we can gain insights into our
customers' shopping behavior, preferences, and needs,
which can inform our marketing strategies, product
development, and customer service.
Overall, investing in a robust and user-friendly
e-commerce platform is integral to Yellow Crush's
marketing plan. It will play a pivotal role in driving sales,
enhancing customer experience, and securing our place
in the competitive pool cleaning market. With our
commitment to quality, service, and customer
satisfaction, Yellow Crush is well-positioned to leverage
the advantages of e-commerce to grow and thrive in the
digital age.
20
MANAGEMENT
Management - Yellow Crush
NeuAG, with its long-standing expertise in ammonium
sulfate products, is well-positioned to handle the
day-to-day operational management of its new product,
Yellow Crush. As a product closely tied to the core
competencies of our existing manufacturing processes,
we are confident in our ability to ensure its smooth and
efficient production, quality control, and distribution.
Our internal team will take responsibility for managing
inventory,
overseeing
the
production
process,
implementing strict quality checks, and liaising with
physical retailers and distribution partners. These
operational aspects are integral to ensuring the
availability and quality of Yellow Crush, which are crucial
for building customer trust and loyalty.
However, the introduction of Yellow Crush presents new
challenges in terms of its digital marketing, e-commerce
operations, and social media management. These
areas, while increasingly important in today's digital age,
are specialized fields requiring specific skills and
experiences. While NeuAG has a strong foundation in
manufacturing and product development, these digital
spheres would benefit from focused, expert attention.
While NeuAG has a strong foundation in manufacturing
and product development, these digital spheres would
benefit from focused, expert attention.
Therefore, it would be highly advantageous for NeuAG
to partner with a subcontractor to manage and oversee
the e-commerce storefront, advertising purchases, data
collection, blog posts, and social media accounts and
content posts.
This specialist contractor would bring invaluable
expertise in driving online sales, increasing brand
visibility, analyzing customer behavior, and fostering
customer engagement across digital platforms.
Involving a subcontractor allows us to tap into their
knowledge of e-commerce and digital marketing
strategies, reducing the learning curve and ensuring we
hit the ground running in promoting Yellow Crush online.
This subcontractor can focus on tailoring our online
presence to suit our target market's preferences,
conducting data-driven campaigns, and ensuring the
seamless operation of our e-commerce platform.
21
MANAGEMENT
Management - Yellow Crush (cont’d)
Their role would extend to managing our social media
accounts, creating engaging content, and nurturing an
online community around our brand. They would also be
responsible for managing our advertising purchases,
ensuring we reach our target audience effectively, and
gathering data to continually refine our marketing
strategies. Moreover, through engaging blog posts, we
can educate potential customers about Yellow Crush
and its benefits, further solidifying our online presence.
In conclusion, while NeuAG has the capacity and
experience to handle the internal operational
management of Yellow Crush, hiring a subcontractor for
the e-commerce and digital marketing aspects is a
strategic decision that would allow us to leverage
specialized expertise, boost our online presence, and
ensure the successful launch and ongoing promotion of
Yellow Crush in the digital marketplace.
22
FINANCIAL PLAN
Financial Plan Summary
The financial plan for the launch and ongoing operations
of Yellow Crush, NeuAG's latest product offering, is
integral to the product's success and sustainability in the
market. It forms the foundation for our budgeting,
financial management, and strategic planning.
A critical aspect of the financial plan is understanding the
costs associated with product manufacturing. For
NeuAG, the manufacturing cost of ammonium sulfate is
$200 per tonne, translating to a per unit cost of $.20 for
our 2lb package of Yellow Crush. This efficient
production cost underscores the advantage of utilizing
our existing expertise and resources for the product's
manufacture.
However, beyond the product's manufacturing cost, we
must also consider the additional expenses associated
with packaging and fulfillment. Yellow Crush's packaging
will be outsourced, which entails a separate cost.
We are currently in the process of obtaining quotes and
finalizing our packaging partner to determine this aspect
of our budget accurately. Likewise, fulfillment, including
storage, order processing, and shipping, is a critical
factor. Our central location in Texas does provide an
advantage in terms of reduced shipping times to both
coasts, but we must also factor in the associated costs
for a comprehensive financial understanding.
The digital marketing and e-commerce aspect of Yellow
Crush's operations also has significant financial
implications. We plan to subcontract these tasks, which
means a monthly management fee must be budgeted.
Additionally, we need to allocate advertising dollars for
our product launch and ongoing promotions. While this
may initially be a modest sum, it is vital to keep in mind
that this amount may need to be adjusted as we test the
market and assess the effectiveness of our advertising
strategies.
23
FINANCIAL PLAN
Financial Plan Summary (cont’d)
Furthermore, we propose a performance-based
approach to our contract with the subcontractor. Initially
hiring them in 90-day increments provides an opportunity
to assess their performance before committing to a
long-term agreement. The subcontractor’s contract
extension will be based on their success, incentivizing
them to spend our advertising budget wisely and
produce tangible results.
In conclusion, the financial plan for Yellow Crush is
multifaceted, encompassing manufacturing, packaging,
fulfillment,
and
digital
marketing costs. This
comprehensive financial strategy ensures we have a
clear understanding of our operational costs and are
well-positioned to make informed, strategic decisions
that drive the financial success of Yellow Crush.
24