Business Plan On Juice Processing

EXCUTIVE SUMMARY
Fruit juice processing enterprise business will be run as partnership. Juice providing enterprises
will provide its product at market price by identifying and listing each type of fruit juice with
their fair prices. The price is affordable should not annoy or exploit customers So that customers
are willing to pay. These enterprise offer high quality juice for customers.The main objective of
the business is to provide quality of juice in order to get the
expected profit and to satisfy the customers, have a claim to create job opportunity, providingco
mplementary and with fruit juice and plans to expand the business in different area and also
toexpand the initial business in size. The main job in this business is purchasing and
processingquality juice, preparing warehouse to store the product, monitoring and auditing sales
of business.The overall and general objectives of the business are mainly to achieve and exceed
salesforecasts to enable the business to be operating at capacity, so that the business extended
thetypes of fruit juice that enables the business to meet the customers need. In the beginning
yearthe business forecast some profit. In the second year and third year we expect that there will
beincrement of profit due to further increases in the number of customers and get acceptance.
NAME AND ADDRESS OF THE BUSINESS
Name of the enterprise is fruit juice processing. The reason that we assigned this name to the bu
siness is to show the concern for the eastern part of our country fruit production and as the
sunrises at the east and gives light for the entire world, our enterprise products also marketing
allover our country and even for exporting purposes of all over the world. Fruit juice processing
islocated in Jimma town.
NATURE OF THE COMPANY

fruit juice processing, providing enterprise is established to overcome the absence of such typeof
fruit juice center in this area. This business center provides different juice for Jimma townsociety
and Jimma university society. As the name of the business center indicates the initial
focuses on providing different types of high quality of different fruit juice to the people
whocome to this Bella Shake fruit juice processing.It serves as entertainment area for community
especially for University student and it alsocontribute for the development of Jimma town.
Basically this business is believed to reduceunemployment by creating job opportunity for many
people.
KEY SUCCESS
The followings are the key success of this business plan:-
1. It uses various types of promotional, or inducement mechanism to attract othercustomers2.

Continuous monitoring of our service and expense.3. It is by society for society! Provide
affordable cost with high quality.4. by reducing expenditure cost of transportation for the
customers.5. Satisfying customer interests by providing quality service6. The presence of good
market price due to the weakness of competitor in the area.7. There are many customers,
because there is no other provider that gives this service.8. It gives service for long hour.
STATEMENT OF FINANCIAL NEED
The business requires means of acquiring this initial capital by borrowing from
financialinstitution like: banks, personal capital, and micro finance institution. This fruit juice
processing provides enterprise planned to construct and establish a company with capital of
300,000 Birr.
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Business plan done on juice processing entreprise Page 3
STATEMENT OF CONFIDETIALITY OF REPORT
The primary purpose of this business plan is to provide qualitative and quantitative amount
ofvarious types of fruit juice at affordable price. Owners of fruit juice processing,
spendsknowledge, money, time, resources, and experience to prepare business plan. For this
reason theowner have to have the patent right in order to protect the business plan which is the
result ofall share holder effort for this reason should not be transferred or copied to another
individual orcompany. If anyone refuse to accept this, the owners have right to accuse individual
or the
company to bring them in front of the law. “All Rights are reserved”
It is known that many types of business implements in each and every aspect of our area and
thiscomes with interaction of different countries in all aspects of socio-economic and
culturaldogmatism with the beginning of this fruit juice processing. This is because of comfort
ability ofvarious kinds of environment which assist or help people to lead their life in a good
manner andencourage a main accent in standard of excellence in their life as well.

CHAPTER ONE1. COMPANY OVERVIEW
1.1 INTRODUCTION
Fruit juice processing enterprises has special roles for its customers.it serve the customers
by providing quality of fruit juice. Come up with new service which is not available previously.
1.2 COMPANY VISION STATEMENT
To solve the shortage of fruit juice service as well as to promote our businessinternationally by
providing a good quality of fruit juice.
1.3. Goals Of The Company
1.3.1. Short Term Goals
1.
To increase consumption of fruit juice by giving awareness2.
Promoting our business3.
Increasing quality of juice regularly4.

Increasing profit5.
To provide work for all members6.
To create job opportunity for local people7.
To raise the life standard of the members by paying them a good salary
1.3.2. Long Term Goals
1. To export juice to foreign country2. To increase the number of customers in the local as well
as International3. To buy modernized fruit juice processing machine
4. To expand our business to other places5. To increase the number of employee6. To own wide
fruit production farm
1.4. COMPANY MISSION STATEMENT

Our company has the following mission.1. Adopting to the dynamic environment throughout the
operation2. Providing entertainment service for customers who are in different age level.3.
Providing qualitative living style to its workers2. Supplying high quality fruit juice which is
good for healthy, vitamins and strengthsuitable for bodies.
CHAPTER TWO2. MARKETING PLAN
2.1 Description of the product
Juice is one type of drinking, wich is used as the food forn human being.it is produced indifferent
place with different mechanism.most of the time the juice used in our country isimported from
foreign countries. However, this product wich is imported from differnt countriesis didnot satisfy
the need of our nations. So,sice the best raw materials for production of
this products are available aboundantly in our countries, we are beagered to estabilish this small
business enterprise in jimma town.
Properties of this juice,it has
Semisolid phasePleasant flavourDifferent colour respective to its raw material
Uses of this product

It uses as the foodIt referesh our mindsIt builds our bodiesIt prevent differen t disease from our
bodiesIt protects our healthy system
2.2 Analyses Of Competitors
Even if there is no known f
ruit juice processing in this area, there are some competitors’ who
competes with us. Fruit juice processing business is well known and has good profit in
other place. But in our area it is not recognized this much.

Some of our direct competitor’s area
1. Jimma town super market and retailers
Our indirect competitors are
Restaurant service in Jimma town,Expansion of recreational lounge
The strength of our competitors is
They have high initial capital
They have enough man power,
They have enough space for producing large number of fruit juice products.
Their weakness

They do not respect their customers
They provide poor quality
Their service of time is limited
2.2.1 Competitive Advantage
The competitive advantages of our business are listed in the following manner
Proximity to suppliers
Initiated workers
We provide quality fruit juice for our customers better than our competitors

Our business entertain customers who are in different age level
It address customers need with lower price.
2.3
Customer Analyses
Our target customers are

The Jimma university society
Jimma town society
Jimma fruit juice distributors
2.4.
Industry Analyses
2.4.1 Description of Market Plan Place
The brand of the business is designed to be fruit juice processing providing enterprise; it isnamed
so because its name and the service it gives are much more related and attractive. Since itis
natural product the people are willing to use the service. The location of the business isOromia
regional state,Jimma town.The fruit juice business enterprise provides fruit from Jimma,and local
market.This product is sold to customer around the Jimma town, Jimma University and to other
places.This product also sold to small enterprise found around its environment. The product of
our business is fruit juice product.In order to accomplish the service effectively and efficiently
our business hires workers based onthe following criteria.
Educational level

Age
Ability
Experience
Health
ConductThe location is preferred for the following reasons

Different types of raw materials are available
Weather condition is comfortable.
The transportation cost is less.
There is no such business enterprise around this area.
There are many customers for the service.
2.4.2 Office Equipment
The materials needed would be:

Chair
Pulpier
Balance
Refrigerator
Shelf
Stainless steel knife

Spoon
Fork
Juice processing equipment
Glasses with different size and design
Chopping board
Table

Jar(bottle)The materials mentioned above will be purchased. The special ability of the manager
todominate or have complete power on others is that he/ she can communicate with
others,understand technical problem, persistent, self-confident and have good conduct. The
businessmanager should be experienced at least in business and should have knowledge
ofentrepreneurship.The motivational to start this new business is
To turn our hobby into reality.
To change previous work experience in to business.
Financial incentive.

To reduce unemployment.
Desire for independency.
Desire to exploit opportunity.
2.4.3 Industry Forecast
We predict that in future our business will be expanded and will have many branches indifferent
places. In the case it will increase the number of customer and this is the causefor the
development of the enterprise itself. There is no doubt that the people need torecreate
themselves. Because recreation is basic human need. Bella Shake fruit juice processing is a place
to recreate peoples, so this type of business is going to expand in thecoming year at increasing
rate. For this reason our business paves the way for those whowant job opportunity for the
society surrounding Jimma town. For those who came fromanother place it is serving as
entertainment area.
2.4.4 Market Segmentation
Actually the business enterprise is not limited to local market or internal market ratherthan
external market. So our fruit juice processing is comfortable to export to othercountries. They are
profit oriented, gradually involves in the production of different fruit
2.5 Demand and Supply Analysis
We have to measure the daily, weekly, monthly and yearly consumptions of the customer
andcompare with our products. By carrying out this process we can balance demand
andsupply.Most of the time demand and supply do not balance each other. To balance Supply
withdemand we must do a continuous asessment on the number of our customer. We must
identifythe primary need of our customers.
2.6 Pricing Strategy
Actually the price of our product is not below the market price; as a result, fruit juice
providing business enterprise
set the price of juice as the markets that are it fluctuates over the time withmarket price. The
basis for our fruit juice prices is the market price and cost-benefit analysis.Even if our
competitors have no so much strength, we can reduce our price in order to attract andget our
customers attention; as a result we can increase our profit from large number ofcustomers.
2.7 Distribution Strategy
The distribution of the our fruit juice processing to consumers can be distributed in
differentways. Like: direct deliv
ery to consumer’s house

, Retail services. Because we will get more profit by this mechanism rather than wholesales.
2.8 Promotion Strategy
Our promotion strategies are applied using the following methods:-
Notice
Sponsorship for short radio programs
News paper
Business card
2.9 Sales Plan
The sale of fruit juice is expected to be calculated daily the price of each type of juice we take
is17 birr per one packed juice, and on average we have estimated that 5000 packed juice will
besuplied per month, hence the approximation of the revenue will be 85,000 birr per month.
CHAPTER THREE3. PRODUCTION PLAN
3.1
Production Process
3.2 Investment Cost
The aim of the business is to provide high quality and quantity fruit juice in order to get
the predicted gain and to satisfy
this business is fully responsible for all part of the operation. Thefirst starting point of the
business is identifying the need of consumers, and then supplying this
product with minimum cost that doesn’t heart any one. The equipment and facilities needed for
this business is needed is mentioned as the below.Generally the cost of business activity includes
the following.

Cost for telephone
Cost for labor force
Cost for license
Cost for different raw fruit
Cost for house rent
Cost for water
Cost for electric powerBasic Equipment needed is:


Fruit pulpier
Processing equipment
Raw fruitt
Wear (workers uniform)
3.2
Startup Capital
The supplementary financing is required to being work on site preparation, equipment purchases,
and to cover expense in the first year of operations. No Item of name Quantity Unit price Total
cost1 Handling materials 22 10 2202 Miscellaneous cost - 3,000 3,0003 Fruit pulpier 3 1,200 3,6
004 Employees 10 (1500*4*12)+(500*6*12)108,0005
Processingequipment1 6,000 6,0006 Mango fruit 5,000kg 20 100,0007 Papaya fruit 5,000kg 15 7
5,0008 Avocado fruit 4,000kg 10 40,000Total 335,820
Salary Expense
We have ten employees out of them, four permanent workers and the remaining six aretemporary
workers.Each of the four permanent workers out of the ten earns 1500birr andremaining six
workers earn 500 birr per month:Total salary for workers= (1500*4*12) + (500*6*12)
=108,000birr
Total salary expense= 108,000birr
3.2.1 Miscellaneous Expense
Items Quantity Unit price Total priceAgenda book 5 10 50Electric power 200Pen 12
4 48Uniform cloth 5 50 250Telephone 60Water cost 100Total 708
3.2.2 Depreciation Expense
The fruit juice processing enterprise has some depreciation expense. And it expected to be
2000 birr.Total depreciation cost (Expenses) = 2000birrinterest Expense= principal*interest
rate=200,000*10%=20,000birr
3.3 Sources of Start-Up Capital
Additional financing has already been secured in the form of:-
The business plan is prepared to obtain funds amounting 100,000 birr.
Birr 50,000 from ourselves.
Birr 200,000 from closed relatives, government, and NGOs.

3. 4 Assessment of Risks
The predetermined or expected risks are:-Scarcity of raw fruit from farm.Damage of raw
materials from car accident.Fluctuation of market price (devaluation, inflation, deflate)Spoilage
of juice.Expiration of fruit juice and contamination.Loss of income from spoiled and expired
item.Loss of customers. Natural hazardous.

CHAPTER FOUR4. ORGANIZATIONAL AND MANAGEMENT PLAN
4.1 Form of Ownership
Fruit juice processing providing business enterprises are a type of business in the form
of partnership. The reasons for the selection of this form of business are:-
Accessibility of raw materials.
Profit gained in the first time it established.
Simplicity to establish the firm.The overall operation or function of the business would be
governed or administered by theowner. The owner can be manager, and sometimes there may be
needed to hire the manager fromthe outside people that can fulfill the following criteria:
Ability to manage others.

Risk taker.
Experienced.
Have the knowledge of entrepreneurship.
Sociability.The business will contain the following members:-
Employees (Permanent and Temporary)
Owners
4.2 Roles and Responsibility of Members of the Organization
The role of the manager will be managing the overall activity of the business. That is:-

Making decision regarding the state of business in the future.
Controlling the overall activity in the business.
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
Evaluating the quality of the products (juice).
Making decision regarding processing.
Lift up or move up capital contribution.
4.2 Organizational Structure
The business will be managed by Mr Sisay Fanta, Mrs lidiya Abdisa and Mrs. Tsion Assefa
whowill act as general manager, personnel manager and production manager respectively..
MrTeshamE will act as marketing manager as well as treasurer. A part-time
bookkeeper/secretarywill also be hired. Four part-time workers will be hired for the operation.
During peak operation,Mr shemalsi will be expected to help in production. Delivery of the
finished product to theretailers will be done by contracting outside labor when the need arises.
Being a large operation,the business will be managed in a formal and strict rules will be enforced
regarding qualitystandards and production operation.The organizational structure is depicted in
the organization chart
Fig 1 for
The organizational structure of our business planGENERAL-Manager(Mr Sisay
persinnelManager(MissTsion
)
ProductionSupervisor(Miss
Lidiya)
Foreman(to be hired
workers(to behired
markating
suprvoisor(MrteshamoFinance/Treasurer(Mr shmalis)Secretary/Bookkeeper(to be hire
d)
CHAPTER FIVE5. FINANCIAL PLAN
5.1 Cash flow Analysis
The sale of fruit juice is expected to be calculated daily the price of each type of juice we take
is17 Birr per one packed juice, and on average we have estimated that 5000 packed juice will
besuplied per month, hence the approximation of the revenue will be 85,000 Birr per
month.Total revenue=5000pack/month*17Birr / pack
=85,000 Birr/month
Our company will operates 10 months per year,Hence Total revenue =85,0000 Birr/month*10=
850,000Birr/year
Pro-forma income statement as of year 1
Revenue
Sales-------------------------------------------------------------------------------------850,000
Expense
Total Salary Expense-------------------------------------------------------------------108,000Interest Exp

ense -------------------------------------------------------------------------20,000Miscellaneous Expense-
------------------------------------------------------------------708Total Expense-----------------------------
------------------------------------------------128,708In the second year of operation it is assumed that
the business will increase the provision of juice by 5%.
Hence, Revenue =850,000+0.05*850,000=
892,500
AndPro-forma income statement of year 2
Revenue
Sales-----------------------------------------------------------------------------------------892,500
Expense
Total Salary Expense----------------------------------------------------------------------45,600Interest Ex

pense----------------------------------------------------------------------------19,000Miscellaneous Expen
se--------------------------------------------------------------------708Total expense-------------------------
-----------------------------------------------------128,708In the third year of operation and its
subsequent two years it is assumed that the business willincreases by 20% of the second year,
using full capacity at efficiency.Therefore Revenue annually=892,500+0.2*892,500=
1,071,000Birr
For the third year and subsequent two years the increament of total expenses were estimated
toincrease by 5% .Hence,total expense=128,708+0.05*128,708Birr=
135,143Birr
Cash flow
Year of investement 0 1 2 3
45
Total capitalinvestement cost
300,000
---
--
Profit loss statement
Income(Revenue)(A) - 850,000 892,500 1,071,000 1,071,000
1,071,000
Cash operatingexpenses(B)- 128,708 128,708 135,143 135,143

135,143
Depereciation(c)- 2000 2000 2000
2000 2000
Total operatingexpenses(D=B+C)- 130,708 130,708 137143 137143
137143
OperatingIncome(E=A-B)- 721292 763792 935,857 935,857
935,857
Gross profit(F=E-C)- 719292 761,792 933,857 933,857
933,857
Federaltaxes(35%)(G=35%F)- 251752 266,627 327,550 327,550
327,550
Net profit aftertaxes(H=F-G)- 467,540 495,165
606,307
606,307 606,307
After tax cashflow(I=H+C)- 469,540 497,165 608,307 608,307
608,307Cumulative cash flow -300,000 169,540 666,705 1,275,012
1883319 2,491,626
Reference
1.
Entrepreneurship and small business management;DawitAyele and DawitArega; Addis Abeba2.
Entrepreneurship; Robert D. Hisrich, Michael P.Peters, Dean A. Shepherd; New Delhi3.
Entrepreneurship; Peggy Lambing, charles R. Kuehl; 2
nd
edition
4.
internet(google.com),”computer training center
”
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EXCUTIVE SUMMARY

NAME AND ADDRESS OF THE BUSINESS

NATURE OF THE COMPANY

The followings are the key success of this business plan:-

1. It uses various types of promotional, or inducement mechanism to attract othercustomers2.

STATEMENT OF FINANCIAL NEED

Business plan done on juice processing entreprise Page 3

STATEMENT OF CONFIDETIALITY OF REPORT

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CHAPTER ONE1. COMPANY OVERVIEW

1.2 COMPANY VISION STATEMENT

1.3. Goals Of The Company

1.3.1. Short Term Goals

To increase consumption of fruit juice by giving awareness2.

Promoting our business3.

Increasing quality of juice regularly4.

To provide work for all members6.

To create job opportunity for local people7.

1.3.2. Long Term Goals

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Business plan done on juice processing entreprise Page 5

1.4. COMPANY MISSION STATEMENT

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CHAPTER TWO2. MARKETING PLAN

2.1 Description of the product

Properties of this juice,it has

Semisolid phasePleasant flavourDifferent colour respective to its raw material

Uses of this product

2.2 Analyses Of Competitors

Even if there is no known f

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Some of our direct competitor’s area

1. Jimma town super market and retailers

Our indirect competitors are

Restaurant service in Jimma town,Expansion of recreational lounge

The strength of our competitors is

They have high initial capital

They have enough man power,

They provide poor quality

Their service of time is limited

2.2.1 Competitive Advantage

Our business entertain customers who are in different age level

It address customers need with lower price.

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Business plan done on juice processing entreprise Page 8

Our target customers are

Jimma town society

Jimma fruit juice distributors

2.4.1 Description of Market Plan Place

ConductThe location is preferred for the following reasons

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Different types of raw materials are available

Weather condition is comfortable.

The transportation cost is less.

There is no such business enterprise around this area.

There are many customers for the service.

2.4.2 Office Equipment

The materials needed would be: