BUSINESS PLAN

Of

Fish Food & Nutrition

PRESENTED TO THE FACULTY OF THE DEPARTMENT OF BUSINESS

ADMINISTRATION

KYUNGDONG UNIVERSITY-GLOBAL CAMPUS

SOUTH KOREA

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN BUSINESS

ENTREPRENEURSHIP

MARIA

CRISTINA
June 2018
 TABLE OF CONTENTS

Page Number

1. Executive Summary 3

2. Mission 4

3. Vision 4

4. Company Description

5. Opportunity Analysis

a. Industry Analysis

b. Environmental Analysis

c. Competitive Analysis

6. Marketing Strategy

a. Product

b. Price

c. Promotion

d. Place

7. Management

a. Management Team

8. Operations

a. Facilities

9. Financial Analysis

a. Balance Sheet Projections

b. Income Statement Projections

10. Funding
 11. Appendices

a. CV

b. Promotional Materials

c. Website

d. Facebook Page

e. Product prototype/Miniature

f. Layout of Facilities

g. Detailed Financial Projections

1.Executive Summary

JBR Fish Feeds, Inc. is a well-established custom feed store. The company is engaged in the
production of fish feeds and other animal products in relation to livestock animals, pets, etc. JBR
Feeds, Inc. has recently expanded its production facility (custom mill) and is well positioned to
market its workroom production beyond its present client base. The company is dedicated to
providing the highest quality customer service, meeting the agreed delivery dates, and keeping
the sales prices controlled in accordance with ongoing market trends. The focus of this business
plan is to identify future target clients, explain our marketing strategy, improve internal
procedures so we can substantially increase profitability, and obtain the funding required to
expand the business.

JBR Feeds, Inc. is located in Sokcho, South Korea . The company is a privately owned
corporation and has been operating for nearly 1 years. The previous owners live next door to the
store, and are planning on moving to their retirement home in south Korea , as soon as this
business transaction is completed. However, since the current owners and new owners are in
fact family, the current owners will be around if needed and to visit on a bi-weekly basis.
 The six counties surrounding JBR Feeds contain an estimated 1 livestock farms. However, the
entire state is an open market once delivery to customers is an option. JBR’S would then be in
the market to compete for the business of 1 farms. South Korea records show that a quarter of a
million dollar is spent annually on feed in the State of Gangwong-Do by these same farms. The
company's estimated existing share of the nearby market is less than 1%. Previously, the owners
have established an estimated $10000 of the state total on an annual basis. They have
accomplished this without any form of advertisement, and without any outside sales.

The marketing research and tailored marketing strategy described in this business plan will result
in after-tax profits of $6,000 in Year 1 and increasing to nearly $5,000 in after-tax profits within
three years, despite significant new advertising and renovation expenses.

To achieve these goals, fields needs funding for two different phases of expansion. We
are currently seeking a $15,000 short-term loan, to be repaid within two years. This loan will
enable us to purchase a delivery truck, a key element of our new sales and marketing strategy. In
early Year 2, we will need a second, long-term loan in the amount of $135,000, to build the
area's premier equine boarding stable. The addition of "Mid-Town Meadows" will not only be
another source of revenue, but also another source of feed sales. Mid-Town Meadows will be
a comfortable, inviting equine resort designed to make our customers and their horses feel as if
they are enjoying VIP services in a world all to themselves. The decor and theme will be rustic
(log exterior walls), yet formal (private club house overlooking the enclosed arena). The feed
store is already located at the main entrance, next to a cascading water fountain and company
signs. 

2.Mission

JBR Feeds is a friends owned and operated company, dedicated to providing our customers
with the best premium products and services on the market. JBR's offers all of our customers the
direct personal attention they deserve. Our commitment to customer service and satisfaction
assures us that our customers are 100% satisfied with our products and services.
3.Vision

Our Vision -To succeed and to enable our customers success by providing customer service
while delivering quality fish food at a great value. -To be recognized as the premier mid-market
supplier of portion with value-added finfish products with global procurement reach and
customized customer service. -To engage with customers and vendors efficiently,
knowledgeably, and with integrity so that expectations are met every transaction -To respect and
foster the growth and development of our employees by empowering them with expertise,
resources, and opportunity -To be responsible and proactive stewards of the oceans by
involvement with industry associations and sustainability initiatives -To be active and committed
members of the community by involvement with local charities and national nonprofits

4.Company Description

JBR Feeds is a fish based farm and feed store dedicated to providing our customers with
professional services and high quality feed products. JBR's offers only the best feed and products
in the industry. JBR's also offers our customers the option of a custom made feed. Our mill
enables us to provide high levels of quality products that are always fresh and available.
JBR's primary focus is on keeping our customers satisfied. Professional and reliable service,
competitive pricing, and a knowledgeable staff will provide for continued growth in the years to
come.

JBR's was founded in 2018 borkot hossan & jony jahirul islam  and rony. Their hard work and
dedication has proven to be successful, as JBR's is now one of the area's premier feed stores and
the only one specializing in custom-made feed.

The future of JBR's is looking bright with younger family members taking over ownership. Our
focus is on the core products, our sales and promotions emphasize our history and reputation for
quality and customer service. With the addition of new energy and enthusiasm from younger
owners, we will increase sales and the bottom line. Even though the new owners have the time,
energy, interest and knowledge to invest in an already successful family business, our greatest
asset will be our commitment and pride in protecting and growing the business
In the past, JBR's has been just a feed store...in the future JBR's will grow to become not only a
larger provider of quality feeds, but also a boarding stable and resource for customer with
inquiries about all areas of pet care.

JBR Feeds, Inc. is a privately-held soli corporation. Hossan borkot Feeds, Inc.'s founder, and her
wife  kim soli  are the two current owners. 

The new owners will share 50/50 ownership and they are as follows: 

 Hossan Borkot

 Jony Jahurul Islam

 Rony mohammad Rakibul Islam

5. Opportunity analysis
a.Industry Analysis
JBR’s also known as the fish feed, is a commercially produced food item for various aquatic
species such as fish, crustaceans, and mollusks. JBR’s is extensively used in the aquaculture
sector. Fish cultivated on farms and feeding on pests found on crops can also be categorized
under the JBR market segment. Properties of commercially manufactured feeds can be altered so
that they can float on the surface of the water or sink to the bottom of the tanks where fish are
reared. Furthermore, the content of various nutrients in the feed can be controlled.

Global JBR’s additives market, by product, 2012 - 2022 (USD Million)

This has led to an increase in popularity and growth of the market over the past few years.
Increasing aquaculture activities is one of the primary factors expected to drive the JBR’s
demand over the forecast period. Also, growing human consumption of fish owing to rising
consumer awareness about its health benefits is expected to fuel demand for JBR’s over the next
few years. However, fluctuating prices of key ingredients used in manufacture fish feed such as
fish meal and fish oil is expected to hamper the growth of the market. Global demand for JBR’s
was 41,627.6 kilo tons in 2014 and is expected to grow at a CAGR exceeding 11% from 2015 to
2022. In terms of revenue, the market was valued at USD 69,721.9 million in 2014 and is
expected to grow at a CAGR of 11.4% from 2015 to 2022. Growing demand for fish and fish oil
products owing to rising consumer awareness regarding the health benefits of omega 3 is further
expected to expand aquaculture activities, consequently fuelling the demand for JBR’s.

Product Insights
Amino acids were the largest product segment of the aquaculture additives market in 2014,
accounting for over 25% of the revenue share. Proteins are essential macromolecules which are
necessary for healthy growth of the fish. Fish are incapable of synthesizing ten indispensable
amino acids, viz., methionine, arginine, threonine, tryptophan, histidine, isoleucine, lysine,
leucine, valine and phenylalanine. Thus, more and more manufacturers are adding protein
sources to JBR’s to enhance growth and improve overall health. Feed acidifiers are expected to
witness the highest growth over the next seven years. Feed acidifiers help in improving the level
of gastric acids in animals which strengthen their digestion system by regulating assimilation of
food. An optimum acid level also helps in destroying harmful bacteria breeding including E Coli
and Salmonella in the gastro intestinal tract.

Application Insights
Carp was the largest application segment of the market, accounting for over 25% of global JBR’s
demand in 2014. In addition, demand for JBR’s in carps is expected to be the highest over the
forecast period. Carps are rich in omega-3 fatty acids and offer high sources of protein that are
low in fat. Demand for carps has been widespread in rice and fish farming as well. Over the past
few years, carps are being increasingly reared in rice paddies to feed on insects and other
organisms associated with rice culture. These factors are expected to boost demand for carps, in
turn, augmenting demand for JBR’s over the forecast period. Mollusks were the second largest
application segment of JBR’s accounting for over 20% of global market volume in 2014. Certain
mollusks such as clams and oysters are an important source of food to humans. Increasing meat
consumption over the past few years at a global level has led to a growing demand for clams and
oysters. In addition, oyster shell extracts are being increasingly used in cosmetics, thereby,
propelling market growth. Additionally, clams and mussels are filter feeders that are being
increasingly used in maintaining good water quality by filtering nutrients, sediments, and
contaminants from the water.

Regional Insights
Asia-Pacific was the largest market for JBR’s accounting for over 65% of global JBR’s demand
in 2014. Asia-Pacific is expected to dominate the JBR’s industry over the projected period due to
significant growth in the aquaculture industry owing to factors such as ease of availability of
natural resources, induced conditions for aquaculture and cheap labor. In other regions including
Europe and North America, growing inclination towards salmon farming, rising demand for
seafood, hardiness of the species and governmental interest have led to a higher demand for
JBR’s from aquaculture species. Europe was the second largest consumer of JBR’s in 2014
accounting for over 14% of the global demand.

b.Competitive analysis

It is easier to find entrepreneur gathering towards an industry that is known to generate

consistent income which is why there are increase number of fish food farmers in south Korea
of course in most parts of the world.

These goes to show that there are appreciable numbers of farmers in South Korea but that does
not mean that there is strong competition in the industry. As a matter of fact, entrepreneurs are
encouraged by the government to embrace commercial farming fish food business. This is so
because part of the success of any nation is her ability to cultivate her own fish food and also
export fish foods to other nations of the world.

JBR Fish feeds Inc., which is fully aware that there are competitions when it comes to selling
fish all over the globe, which is why we decided to carry out thorough market research so as to
know how to take advantage of the available market in South Korea and in other parts of the
world. We have done our homework and we have been able to focus on some factors that will
give us competitive advantage in the marketplace; some of the factors are effective and reliable
fish food farming processes that can help us sell our produce at competitive prices, good network
and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have
healthy relationships with loads of major players in the industry; both suppliers of fish feeds and
medications and buyers of fish food within and outside of South Korea. We have some of the
latest fish and seafood farming hatchery, tools and equipment that will help us raises fish food in
commercial quantities with less stress.

Lastly, all our employees will be well taken care of, and their welfare package will be among the
best within our category in the industry. It will enable them to be more than willing to build the
business with us and help deliver our set goals and achieve all our business aims and objectives
entrepreneurs are encouraged by the government to embrace commercial farming cum fish and
seafood farming business. This is so because part of the success of any nation is her ability to
cultivate her own food and also export foods to other nations of the world. Why we decided to
carry out thorough market research so as to know how to take advantage of the available market
in South Korea and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us
competitive advantage in the marketplace; some of the factors are effective and reliable fish food
farming processes that can help us sell our produce at competitive prices, good network and
excellent relationship management. Another competitive advantage that we are bringing to the
industry

We have some of the latest fish food farming hatchery, tools and equipment that will help us
raise fish and seafood in commercial quantities with less stress. Aside from our relationship and
equipment, we can confidently boast that we have some the most experienced Lastly, all our
employees will be well taken care of, and their welfare package will be among the best within
our category in the industry. It will enable them to be more than willing to build the business
with us and help deliver our set goals and achieve all our business goal and objectives

6. Strategy and Implementation

JBR™ is positioned very carefully: this is an innovative product that addresses a major
complaint of fish-owners better than any of the competitors. Our marketing strategy is primarily
based on making this information available to our target market, visually via point-of-purchase
displays and graphically via creative ad copy and graphics. This basic strategy should allow this
product to stand out in a field of competitors that appear to employ no clear marketing strategy.

Value Proposition

The value proposition for JBR™ lies with the dog owner. With JBR™, the dog owner will have
a simple, sanitary, and dignified means of cleaning up after their fishes. Because dog owners
identify this task as one of the most challenging aspects of owning a fishes and because the target
market has substantial disposable income, they will be willing to pay a premium price to acquire
this superior product.

Marketing Strategy

The primary goal of our sales and marketing strategy is to simply and succinctly explain our
product to our target market. An explanation of this innovative product is best accomplished by
means of a visual demonstration. Focus group research within the target market shows that,
while there is a significant amount of interest in this product based on a verbal description, this
interest is greatly magnified by a visual demonstration. Retail product demonstrations will be
accomplished with point-of-purchase displays that allow customers to try the product for
themselves. In addition, the product itself is packaged in such a way that consumers can operate
it and see for themselves how it works. The product website will also be used to visually
demonstrate the product. Presentations on cable television home shopping channels are also
being considered. These alternatives provide an ideal forum for demonstrating the product and
reach a wide audience.

Creative application of print media will provide a product description for catalog and ad copy.
We will be working with our advertising and marketing partner to develop ads for selected
magazines. This effort alone should be sufficient to set this product apart from a field of
competitors that appears to lack any type of marketing strategy. We are also planning a series of
press releases timed to coincide with the product launch.

Distribution Patterns

Product distribution will be accomplished by pet product distributors and the order fulfillment
provider. The primary distribution channel for pet products is through regional and national pet
product distributors. We are actively pursuing agreements with regional distributors and will be
attending major industry trade shows to develop contacts with distributors in other regions of the
country. The secondary distribution channel is through direct retail sales, specialty catalog sales,
and website sales. We are also actively pursuing agreements with retailers and specialty catalogs.
Once these agreements are in place, our order fulfillment provider will fill these orders.
Positioning Statement

For affluent, suburban, middle-aged female baby boomers whose children have left home
("empty nesters") who lavish attention on their fishes and who consider cleaning up after their
fishes an unpleasant and undignified task, JBR™ provides a much-needed solution. JBR™
addresses this need better than the competitors because it provides an aesthetically pleasing,
easily operated device which eliminates contact with the fishes waste by the user and the
reusable portion of the device, while collecting and packaging the waste in a sealed container for
convenient disposal.

Pricing Strategy

The manufacturers suggested retail price (MSRP) for JBR™ is $30. The MSRP for the bags is
$6.75 for a box of 25. These prices are based on a skimming strategy, which sets the initial price
high to establish high perceived value. High perceived value is important, as the target market
has substantial disposable income and is willing to pay for style and functionality. These MSRP's
are based on a careful survey of competitive products prices. While these MSRP's are high for
this product category, they are not the highest nor is this the only high-priced product in its
category. There are several competitive products with similar prices.

Although the MSRP is intentionally set high, based on manufacturing costs for the scoop and the
bags, these retail prices can be dropped substantially and still leave a reasonable margin. This
allows for price flexibility and pricing strategy modification based on the response of the market.

Sales Strategy

Our initial sales strategy will focus on regional retail sales, specialty direct mail catalogs (e.g.,
Drs. Foster and Smith, Sharper Image, Brookstone), and e-commerce. This initial strategy is
intended to control growth and keep sales in line with projections. As sales increase and more
working capital becomes available we will begin to focus on national retail sales. Although 'big-
box' retailers (e.g., Petco, Petsmart, Wal-mart) are key targets, most products enter these retailers
via distributors. To get our product into these stores we will pursue agreements with distributors
that already have relationships with these stores.
Revenue Streams

Because JBR™ requires the use of a consumable item, two revenue streams are generated. The
Sales Forecast graph illustrates the advantage of having a product that includes a consumable
component. Although customers will only need to purchase JBR™ once, they will need to
continue to purchase liner bags to continue to using the product. By year three, bag sales are
nearly equal to scoop sales. Eventually, bag sales will eclipse scoop sales. This will allow for
more price flexibility as the scoop could then be sold primarily as a means of generating sales of
the consumable. While there are some disadvantages to products that require replacement
components (e.g., replacement components may not be available when required, retailers may be
sold out) the advantages are clear. In order to minimize customer concerns about replacement
bags, the primary focus of the website will be to provide online purchasing of replacement bags.

Sales Forecast

The sales forecast includes sales of scoops and liner bags to wholesalers/distributors (75%) and
retailers (25%). To keep the sales projections conservative, direct sales to customers via the
website were not included in this forecast. Bag sales forecasts assume that for each scoop
purchased, the liner bags will be used twice per week. This corresponds to one box of 25 bags
being used every three months.
SALES FORECAST

YEAR 1 YEAR 2 YEAR 3

 Sales

Scoops $299,425 $755,200 $1,401,250

Bags $99,225 $527,513 $1,315,575

TOTAL SALES $398,650 $1,282,713 $2,716,825

Direct Cost of Sales Year 1 Year 2 Year 3

Scoops $121,800 $307,200 $570,000

Bags $44,100 $234,450 $584,700

Subtotal Direct Cost of Sales $165,900 $541,650 $1,154,700

6.5 Milestones

The following chart and table shows key milestones for start up and the first quarter of
operations:
MILESTONES

Milestone Start Date End Date Budget Manager Department

Focus Group Research 6/1/2003 8/1/2003 $0 KBC Engineering

Final Design 8/1/2003 9/1/2003 $0 KBC Engineering

Refinement

Pre-production 9/1/2003 12/1/2003 $0 KBC Engineering

Release Design for 12/1/2003 1/1/2004 $0 KBC Engineering

Production

Purchase Tooling and 1/1/2004 2/1/2004 $15,000 KBC Purchasing

 Inventory

Product Launch 2/1/2004 4/1/2004 $60,000 KBC Purchasing

Marketing Campaign

Product Sales Launch 4/1/2004 6/1/2004 $0 KBC Purchasing

Totals $75,000

7.Management and Organization Summary

To remain consistent with our overall strategy of minimizing fixed costs, JBR Fish Food and
Nutrition does not intend to develop a large employee or operations infrastructure. Some of the
product design activities and all of the manufacturing and distribution activities will be
outsourced. This dramatically reduces the in-house requirements for manpower.

JBR Fish Food and Nutrition is a pet product innovator and marketing company based on a lean
and agile operations strategy. We will leverage limited resources by utilizing external resources
for product development assistance, manufacturing, fulfillment, and marketing. We may
also finance accounts receivable with a factor in order to minimize administrative work and
guarantee a positive cash flow. With this operations strategy, we can quickly and efficiently
develop new products, initiate manufacturing activities, and distribute our product with minimal
upfront and fixed costs. This strategy allows us to remain lean, by leveraging the expertise that
each external resource possesses and agile with respect to changing customer needs.

Management Team
In keeping with our operations strategy, we have assembled a team of consultants to provide
expertise and direction in key areas. We have also assembled an Advisory Board consisting of
key individuals that will provide expert advice to our company when making strategic decisions.
This board consists of individuals with particular expertise in engineering and new product
development, entrepreneurship, and small business planning.

MR.X: Mr. X has a mechanical engineering background and has a special interest in new product
development and entrepreneurship. He has been engaged in product design for the past six years,
working on projects in the medical, commercial appliance, automobile, furniture, and consumer
product industry. For the past five years, he has worked as a mechanical engineer and project
manager for one of the largest product development companies in the United States. The new
product development experience has developed his competence in taking product designs from
concept through engineering and into manufacturing. The project management experience has
increased his ability to manage people, budgets, and timelines. Prior to this experience, Mr. X
spent four years in the machine design industry. He holds a Bachelor of Science and a Master of
Science in mechanical engineering from the University of Wisconsin - Madison.

Personnel Plan

JBR Fish Food and Nutrition has adopted a relatively flat organizational structure. Mr. X will
serve primarily as the general manager, providing direction and coordination for outside
resources. Since development of the initial product line is nearly complete, Mr. Chase will focus
on marketing and advertising strategy, coordinate the necessary outside resources to promote the
product and handle administrative tasks. Prior to the product launch we will need one individual
devoted to sales activities and another individual responsible for the continued monitoring of our
production activities, coordinating the required manufacturing resources and monitoring
fulfillment of orders.

Financial Plan

Product sales generate the primary revenue stream for JBR Fish Food and Nutrition. As such, the
financial projections are closely tied to the sales forecast. While we believe that the sales forecast
presented is conservative and reflects a clear understanding of the market, we have considered
scenarios in which sales lag or lead our projections.           

Lagging Sales
Rather than purchasing inventory in large lots we will purchase inventory approximately every
three months on an as-needed basis. If actual sales volumes are less than projected, we can
respond by reducing inventory purchases to reduce variable costs and maintain a positive cash
balance. Our operations strategy is also an asset in this scenario as our fixed costs are very low
with respect to our variable costs. If necessary we can further reduce our fixed costs by reducing
personnel, as payroll constitutes the majority of our fixed costs.

Leading Sales
If actual sales volumes exceed our projections we will respond by increasing inventory
purchases. Our suppliers capacity greatly exceeds the estimates in our current sales projections.
While we should be able to finance the increased inventory purchases with revenue generated
from the increased sales, this scenario may require additional infusions of cash. We may also
consider financing accounts receivable with a factor to make cash for inventory purchases
readily available.

The following subtopics highlight the financial plan for JBR Fish Food and Nutrition.

 Break-even Analysis

JBR Fish Food and Nutrition revenues are generated from unit sales of JBR™ (a one-time
expense) and replacement liner bag sales (a recurring expense). The monthly break-even volume
was determined using the sales forecast as a guide, and based on estimates for fixed costs and
average revenue for JBR™ and the replacement liner bags. We anticipate breaking even within
the first year of operation.

Notes:
 One scoop and one box of liners constitute one unit.

 Average Per-Unit Revenue assumes only wholesale sales of one scoop and one box of
bags.

 Direct sales to retailers and catalogs will increase average per-unit revenue.

Projected Profit and Loss

Based on the sales projections and our low fixed cost operations strategy, JBR Fish Food and
Nutrition will achieve profitability within one year. Profits in subsequent years will accelerate
with an increase in anticipated sales volume, yielding approximately tripling of net profit in Year
2 and Year 3.
8.Operations

a. Facilities

JBR Fish Food and Nutrition wants to set itself apart from other animal service facilities that
may offer only one or two types of services. While talking to several pet owners, I have come to
realize they desire the services I am proposing, but are frustrated because they must go to several
different businesses. The focus of Noah’s Arf is day care and overnight care. However, the
services we provide will be above and beyond what our competition can offer.

Our business atmosphere will be clean, friendly and upscale where customers will be
comfortable leaving their pets. We will offer a personal touch, such as birthday cards and a daily
report card for each pet that is registered with JBR Fish Food and Nutrition.

Our business will offer 24 hour service, a unique concept in this type of industry.

9.financial analysis

Projected Cash Flow

We expect to manage cash flow with an initial investment and expect be profitable by the end of
Year 1, with occasional negative cash flows corresponding to inventory purchases. We invests
additional $10,000 in Year 2 as a hedge against Accounts Payable/Accounts Receivable flows.

PRO FORMA CASH FLOW

 YEAR 1 YEAR 2 YEAR 3

Cash Received

Cash from Operations

Cash Sales $99,663 $320,678 $679,206

Cash from Receivables $208,143 $760,573 $1,710,811

SUBTOTAL CASH FROM OPERATIONS $307,805 $1,081,251 $2,390,017

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $10,000 $0

SUBTOTAL CASH RECEIVED $307,805 $1,091,251 $2,390,017

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $66,000 $198,000 $228,000

Bill Payments $249,698 $921,205 $1,918,396

SUBTOTAL SPENT ON OPERATIONS $315,698 $1,119,205 $2,146,396

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0

 Long-term Liabilities Principal Repayment $15,400 $20,000 $20,000

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $5,000 $7,500

SUBTOTAL CASH SPENT $331,098 $1,144,205 $2,173,896

Net Cash Flow ($23,293) ($52,954) $216,121

Cash Balance $76,707 $23,753 $239,873

Projected Balance Sheet

As shown on the balance sheet in the following table, we expect a healthy growth in net worth by
the end of the plan period. The monthly projections for Year 1 are in the appendix.

PRO FORMA BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3

Assets
Current Assets

Cash $76,707 $23,753 $239,873

Accounts Receivable $90,845 $292,307 $619,114

Inventory $28,875 $94,275 $200,976

Other Current Assets $15,000 $15,000 $15,000

TOTAL CURRENT ASSETS $211,427 $425,334 $1,074,964

Long-term Assets

Long-term Assets $0 $0 $0

Accumulated Depreciation $0 $0 $0

TOTAL LONG-TERM ASSETS $0 $0 $0

TOTAL ASSETS $211,427 $425,334 $1,074,964

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $66,575 $120,182 $252,874

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $66,575 $120,182 $252,874

Long-term Liabilities $69,600 $49,600 $29,600

TOTAL LIABILITIES $136,175 $169,782 $282,474

Paid-in Capital $50,000 $60,000 $60,000

Retained Earnings ($20,000) $20,252 $188,051

Earnings $45,252 $175,299 $544,439

TOTAL CAPITAL $75,252 $255,551 $792,490

TOTAL LIABILITIES AND CAPITAL $211,427 $425,334 $1,074,964

 Net Worth $75,252 $255,551 $792,490

10. Funding

In setting up any business, the amount or cost will depend on the approach and scale you want to
undertake. If you intend to go big by renting a place, then you would need a good amount of
capital as you would need to ensure that your employees are well taken care of, and that your
facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any
difference in prices would be minimal and can be overlooked. As for the detailed cost analysis
for starting a pet store business; it might differ in other countries due to the value of their money.

This is the key areas where we will spend our start – up capital;

 The total fee for registering the business in the United States of America – $750.
 Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) – $3,300.
 Marketing promotion expenses for the grand opening of Tom & Jerry Pet Stores®, Inc. in
the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the
total amount of $3,580.
 The total cost for hiring Consultant – $2,500.
 The total cost for the purchase of insurance (general liability, workers’ compensation and
property casualty) coverage at a total premium – $2,400.
 The cost for payment of rent for 12 month at $1.76 per square feet in the total amount
of $105,600.
 The cost for shop remodeling (construction of racks and shelves) – $20,000.
 Other start-up expenses including stationery ($500) and phone and utility deposits
($2,500).
  Operational cost for the first 3 months (salaries of employees, payments of bills et al)
– $60,000
 The cost for start-up inventory (stocking with a wide range of pets such dogs, cats, fish
and birds and pet foods and pet supplies, such as collars, leashes, health and beauty aids,
shampoos, medication, toys, pet containers, dog kennels and cat furniture et al)
– $100,000
 The cost for store equipment (cash register, security, ventilation, signage) – $13,750
 The cost of purchase and installation of CCTVs: $5,000
 The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs,
Sound System, tables and chairs et al): $4,000.
 The cost of launching a website: $600
 The cost for our opening party: $5,000
 Miscellaneous: $5,000

We would need an estimate of $350,000 to successfully set up our pet store in Baton Rouge –
Louisiana. Please note that this amount includes the salaries of all the staff for the first month of
operation.

Generating Funds / Startup Capital for JBR Fish Food and Nutrition

JBR Fish Food and Nutrition. is a private business that is solely owned and financed by Simon
Winston and his immediate family members. They do not intend to welcome any external
business partner which is why he has decided to restrict the sourcing of the start – up capital to 3
major sources.

These are the areas we intend generating our start – up capital;

 Generate part of the start – up capital from personal savings

 Source for soft loans from family members and friends
 Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan
from family members $30,000) and we are at the final stages of obtaining a loan facility of
$250,000 from our bank. All the papers and document have been signed and submitted, the loan
has been approved and any moment from now our account will be credited with the amount.

11.appendices

 Cv
b. promotional materials

Our range of promotional material includes: JBR Fish Food and Nutrition

 Brochures
 Flyers
 Posters
 Banners
 Direct Mail
 Greeting Cards
 Books and Booklets
 Promotional Items
 ePublications

c. Web Plan Summary

Design
Design website will be the virtual business card and portfolio for the company. It will highlight
the product line and provide links to websites for each of the products. The graphic design of the
website will correspond to the corporate identity graphic design.

JBR Fish Food and Nutrition

This website is part of the overall marketing mix. It will provide product information and
service. It will have a commerce section to allow customers to purchase Fetch or replacement
liner bags. The website needs to be simple and well-designed, and in keeping with the latest
trends in user interface design. The graphic design of the website will correspond to the product
identity graphic design.

Website Marketing Strategy

The target market for JBR™ uses the Internet on a regular basis. As such, the website is an
important part of the marketing plan. It's primary purpose is to provide users a convenient source
for replacement bags. JRB™ can also be purchased via the website. In addition, it will provide
product information and service. The website will be simple, well-designed, and in keeping with
the latest trends in user interface design. The graphic design of the website will correspond to the
corporate/product identity graphic design.

Website Marketing Strategy

Advertising on the Internet has not yet proven to be very effective and will not be aggressively
pursued initially. Website awareness will be accomplished via more traditional forms of
advertising and product purchases.

Development Requirements
Development of these websites will be outsourced. We will work closely with the selected
website developer to develop a simple and well-designed site that satisfies the needs of JRB™
target groups. Site hosting and e-commerce transactions will be handled by the order fulfillment
provider.

D. product porotype
e. layout of facilities

JBR model facility layout should be able to provide an ideal relationship between raw material,
equipment, manpower and final product at minimal cost under safe and comfortable
environment. An efficient and effective facility layout can cover following objectives:

 To provide optimum space to organize equipment and facilitate movement of goods and
to create safe and comfortable work environment.
 To promote order in production towards a single objective
 To reduce movement of workers, raw material and equipment
 To promote safety of plant as well as its workers
 To facilitate extension or change in the layout to accommodate new product line or
technology upgradation
 To increase production capacity of the organization

An organization can achieve the above-mentioned objective by ensuring the following:

 Better training of the workers and supervisors.

 Creating awareness about of health hazard and safety standards
 Optimum utilization of workforce and equipment
 Encouraging empowerment and reducing administrative and other indirect workf. Detail
financial projection