Business Proposal
Business name: Zen NZ Limited
Address 1: 56 Britannia Heights
City: Nelson, New Zealand
Post code: 7010
Phone: 03-5469030
Mobile: +642102731744, +641208229027
Email: rafnishpk@gmail.com, nitheeshthekkanath@gmail.com
Website: www.zenltd.co.nz (proposed domain)
Name: Nitheesh Augustine
56 Britannia Heights
Nelson, New Zealand – 7010
Ph:+642108229027
1.
Executive Summary
Zen NZ Limited is a startup company planning to run an organic smoothie shop in
the main cities of New Zealand. Zen NZ limited startup firm plan to establish completely
organic fruit themed smoothie shop, offering a unique blend of smoothies made from
locally grown vegetables and fruits. Emphasis on locally grown produce will be
attractive to the environmentally conscience residents. The company will bring a
different menu to the juice and smoothie arena by adding high nutrient vegetables into
the drinks. In addition to that, we also provide healthy and nutrient powders like protein,
immunity, extreme-c, detox and super green shots. All the products and service we offer
will be organic, that will improve the health of the consumers and helps to build up a
healthy society with less medical problems. We aim to build a healthy society.
1.1. Business Opportunity
Smoothies operations have a strong foothold in the food service market. Sales
of smoothies and fresh fruit juices increase every year and with the rise of consumer
interest in environmentally friendly products, smoothies made from locally grown
produce will gain additional popularity.
1.2 Product/Service Description
Zen NZ Limited Company offers smoothies contain organic vegetables as well
which give their smoothies a healthy boost of additional vitamins and minerals which
differentiates them from conventional smoothies. The locally grown produce that
supplies Zen NZ limited Company further distinguishes its products by appealing to
locals and environmentally conscious people. The smoothies range in variety from citrus
to berry flavors coupled with select vegetables to complement flavors and nutrients to
appeal to both taste and health consciousness. Smoothies will be served to on-the-go
customers in eco-friendly containers. Furthermore, we also offer international tastes
which comprises of dates, Goji berry, almond, pista, butter-scotch and cold coffee. All
the vegetables and fruits are produced organically.
 Organic Smoothies: tropical smoothies, green smoothies, berry smoothies,
Arabian delight, Spanish Jugo, kiwi pleasure, exotica etc.
 Organic Fresh juices: orange, apple, carrot, vegetable mix, mixed fruit etc.
1.3 Current Business Position
Zen NZ limited is a startup company which offers organic products to the
customers. Zen NZ limited company will be owed by Rafanish Punnankulangara and
Nitheesh Augustine in an equal limited liability partnership. Both the business owners
have experience in this industry, business management, sales and customer service.
Rafanish will be Chief of operations; Nitheesh Augustine will head the accounting and
public relations. Zen NZ Limited Company plans to startup a business in good location
in a high volume area for potential further business and financial growth. We also plan
to establish our service to thirteen major cities of New Zealand.
2.
Mission Statement
Zen NZ limited company’s ultimate aim to build up a healthy society through offering
organic products. Zen NZ Limited Company will offer organic fruit and vegetable
smoothies made from the products of both local and international farms to the health
and environmentally conscious residents of the Richmond and Nelson in New Zealand.
3. Company Description
3.1. Company Ownership
Zen NZ Limited will be a Limited Partnership company formed between Rafanish
and Nitheesh Augustine, all of whom have specific responsibilities in the company.
Rafanish will manage research and development by keeping up with current trends in
the smoothie market and organic food industry and doing hedonic sensory testing to
ensure organic products remains a popular place for consumers. Rafanish will also be
keeping track of inventory and receiving deliveries from the distributors. Nitheesh will be
responsible for public relations by promoting our products and service throughout New
Zealand. At present company plans to operate first shop in the Nelson and Richmond
area especially at gyms, businesses, “green friendly” stores and organizations, schools,
and hospitals in the surrounding areas. Nitheesh Augustine will also manage all
finances including paying rent, bills, paychecks, accounting, and purchases.
3.2 Key Employees and Personnel Plan
Rafanish will work full-time and Nitheesh work part time rotating shifts throughout
the week during which Rafanish will manage the store and its employees as well as
taking managing the responsibilities of product development, acquisitions, public
relations, and finances, respectively. Company will be trade from 8:00 AM - 7:00PM
Monday to Saturday and from 9:00 AM- 5:00PM on Sundays.
Two part-time employees will be hired to work 20 hours per week alongside the
business owners/ manager according to their availability.
3.3 Products and Services
Zen NZ limited company will offer a simple menu of organic fruit and vegetable
smoothies and juices with a focus on local seasonal produce which changes the menu
several times a year. The menu and service setup emphasizes nutrition reflected by fruit
themed drinks and
décor. Smoothies will be sold in eco-friendly containers with prices ranging from $4.50
to $11.50.
This is an approximate price
4. Industry, Competition, and Market
4.1 Industry Definitions
A smoothie is a drink made to order at a juice or smoothie bar containing juice,
fruit, ice, frozen yogurt, and/or soy milk, blended together in a high speed blender.
Smoothie and Juice Bars have dictated industry definitions that categorize them and
give them a place in the food industry. The popularity of the smoothie began in the
early 1990’s and due to its popularity and growing number of health conscious
consumers, in 1998 The Juice and Smoothie Association (JASA) was created. JASA
developed definitions to help categorize the smoothie and juice industry and to educate
consumers. Our uniqueness is that we offers smoothie which is made of organic fruits
and vegetables.
There are four smoothie rankings, Platinum, Gold, Silver, and Bronze, which are
labeled based on the base ingredients contained in the smoothies and the way the
smoothies are made. Our Juice and smoothies fall under the Platinum category
because the drinks are made to order with all-natural ingredients, the base is made of
freshly squeezed juice, the seasonal fruit is freshly cut, direct from the suppliers.
Zen NZ limited company also fits the definition of a Smoothie store, not to be
confused with a Juice Bar which specializes in fruit juice smoothies and fresh squeezed
juice which is made up of fruits produced organically. As a smoothie store smoothies
are our expertise and our primary focus, which is why food and other beverages will not
be sold at our shop.
4.2 Market Size and Trends
New Zealand is a country with a population of 4.5 million people in both north and
south island. People in New Zealand are not much familiar with organic products. And
we hope they will warm welcome our product and services. Our plan is to startup in a
place called Richmond is a small trendy developing city in the Tasman province, which
has a population of nearly 16000 people. Richmond also brings in a lot of revenue from
the large amount of tourists it attracts each year.
4.3 Target Market/Segmentation
4.3.1
School students and normal street shoppers.
Richmond has many schools. Many students come to Richmond for meeting with
friends, go shopping, work at small café’s, and try different one of the many cuisine
options that Richmond retailers offer.
Students also fall within the primary smoothie purchasing demographic, age 10 to 18. In
addition to that, shoppers also are targeted in our business.
4.3.2 Health Enthusiasts
Richmond is home to many gyms contributing to thousands of gym goers in the
area. We have the healthiest options of smoothies in comparison to other smoothie
shops in the area, and will be the number one choice for a post-workout boost that the
gym goers will need.
4.4 Market Competition
4.4.1
Strengths
Zen NZ Company is the company in the Richmond area that offers smoothies that
only have fresh fruits and vegetables organically produced from local farms, allowing
consumers purchase a healthy and environmentally smart choice.
4.4.2
Weaknesses
As the business is started up from scratch it will take a lot of effort and time to try and
get everything done by the intended finishing date. The store needs to be up and
successfully running as soon as possible so money will be coming into the business.
This will cause stress on the staff members to get everything done and to be able to
have a successful first day of opening for the business. Also the stress of the workplace
may get to some staff members being in a new environment.
4.4.3
Opportunities
Purchasing fruits and vegetables from local farms which grow fruits and vegetables
organically allows Zen NZ limited company to team up and make partnerships with
major environmental companies that are also marketing to consumers that want to
contribute to the well being of the environment. Zen NZ limited company can promote at
their events, give out samples, and even recruit for open positions in the
company. Furthermore, not much competitors in this industry will help us in developing
our business faster.
4.4.4
Threats
Since we sell cold products, the only threat we face will be the seasonal changes.
5. Business Goals and Objectives
Zen NZ limited company is the first organic smoothie shop in the Richmond and
in New Zealand to incorporate locally grown produce and a blend of fruits and
vegetables into its menu. Financial success will come from Richmond, Bright water and
Nelson health- and environment-conscious population.
5.1 Business Goals
Zen NZ Limited company’s business goals are as follows
1. Sales of at least $150,000 in the first year, with an increase of 5% in sales every
year thereafter.
2. Become the number one organic place in New Zealand by the second year.
3. To establish our product and services in the 13 major cities of New Zealand by the
end of second year.
5.2 Keys to Success
Zen NZ limited company provides high quality product and service that are
unique to smoothie industry. In order to attain business goals, Zen NZ limited must
promote and market its philosophy of environmentally friendly drinks and educate
customers about the health and environmental benefits of our smoothies.
Zen NZ limited company is a unique smoothie shop in its dedication to helping
the local economy and environment by purchasing from the farmers in the Richmond
area(start up stage-first store plan to open in Richmond) as well as throughout New
Zealand. This will appeal to the trendy Richmond and Nelson population, who like to try
new types of food and are concerned about the environment.
6. Financial Assumptions
This is the financial prediction to startup first store. This section of the business plan
summarizes the financial assumptions used in creating the financial statements.
Zen NZ limited planned operation, including Beginning Balance Sheet, profit and loss
forecast and sales forecast for first three years. Our plan is to establish our product and
service to the 13 major cities of New Zealand by the end of second year. We have
predicted the sales forecast of the area we planned to operate first. The prediction is
done by thoroughly analyzed the demographics and the consumer habits of people in
Richmond. The sales will increase when we move to cities with higher population. Our
next plan is to establish in Christchurch (population: around 350,000 sales will be
around $200,000 to $250,000 an year), wellington (population: around 400000 sales will
be around $225000 to $265000 an year) etc. the cost of establishing stores in every city
will be the same cost.
Beginning Balance Sheet
Currency is in NZ$
Property and Equipment cost
28196
Cash & Bank
4581
Inventory
500
Current assets
5081
Total Assets
33277
Liabilities and owners equity
Owners equity
Line of credit
Other Current Liabilities
Total liabilities and equity
Sales
No. of working days
Sales per day
2 days sales
Margin
Cost
Cost of Sales (2
days)
150000
365
411
822
40%
60%
493
9500
23277
500
33277
Rounded off
Equipment
Inventory
500
28196
500
SALES FORECAST
Year
Average Price per
Container
Expected No. of Containers
Sales (Amount)
1st
2nd
3rd
$
8
$
9
$
10
18,750
$
150,000
19,688
$
177,192
20,672
$
206,720