Vigorous Company’ Business Plan

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Table of Contents

Executive Summary
Key Financial Statements
Reference List

Executive Summary

Business Concept

Vigorous is a non-alcoholic beverage (NAB) company that produces soda with unique flavors. The company aims at becoming the household name for healthy soda drinks in the United States. The organization strives to meet the needs of employees, customers, partners, and the rest of the stakeholders.

Business Concept Justification

The NAB industry is very competitive. Dominated by several powerful organizations that have established a very strong presence in the target environment, it incorporates a variety of obstacles that SMEs and new entrants have to overcome to gain weight in the NAB market. Therefore, it is imperative to create a unique brand product that will represent the organization properly. Healthy soda with unique flavors is exactly the product that has the potential to become the company’s big selling point.

Management Structure

The management structure of the company is fairly simple. CEO is at the helm of Vigorous, whereas COO and CFO plan the actions in the corresponding domains (i.e., operations and finances). Production, sales, marketing, IT, retail, and HR departments are accountable to the COO, whereas the CFO of the organization controls the processes related to accounting and audits.

The structure described above seems to be the most appropriate in the described scenario since it allows for a fast and uninhibited transfer of data from one company member to another. As a result, the essential goals are attained within the shortest amount of time possible. Furthermore, the crucial data is not distorted in the process; as a result, the threat of misconceptions and conflicts is reduced.

Market Need

The idea of providing customers with the soda drink that is actually healthy was prompted by the fact that most of the soda produced by competitors has a slightly negative impact on the consumers’ health rates, at best. The harmful effect of soda has been the reason for concern of nurses and medics for years (Taber, Chriqui, Vuillaume, Kelder, & Chaloupka, 2015), and the design of the product that will actually have a positive effect on people’s health is likely to attract people’s attention immediately.

Competitive Advantages

As stressed above, the emphasis on the healthy properties of the drink can be viewed as the selling point of the drink. Therefore, it will be necessary to focus on promoting Vigorous as the drink that provides an opportunity for the customers to follow the principles of a healthy lifestyle. Indeed, there are very few companies that address the health-related aspects of their products for quite understandable reasons. Therefore, being able to claim that the drink to be produced is completely healthy from the target audience is the opportunity that the company must not miss as the customers will doubtlessly value the innovation highly.

Financial Projections

Since the company will have to face rather stiff competition in the target market, the growth rate is expected to be moderate. According to the company’s financial statement, the net profit is going to grow at a comparatively fast pace. With the ending cash balance of $7,179 in June and an expected ending cash balance of $216,873 in August, the organization is going to make a powerful start to be able to double its revenues each month.

Return on Investment

Similarly, the ROI rates of the organization are expected to increase gradually. It is assumed that the sales will grow due to the focus on both promoting the brand product actively and enhancing the quality of services. The latter will be improved by training the staff members and improving the information management processes in the company (Gordon, 2014).

Exit Plan

Creating a merger with another company or acquiring one can be viewed as one of the possible exit strategies. Thus, the organization will be able to retain its assets and gain media attention. Furthermore, the quality rates of the products will not suffer.

Key Financial Statements

Income Statement

According to the income statement of Vigorous, the organization is experiencing a gradual growth. The increase in the net profit that the firm has been witnessing since July can be viewed as a sign of the company’s readiness to become a part of the global economy. One must admit that the tax rate has also been on a steep rise since the beginning of the company’s operations. Nevertheless, the profit that the entrepreneurship has been making indicates that Vigorous has been prospering and needs to grow further.

The income statement also demonstrates the propensity for the company to reduce its expenses. Although the changes to the number of expenditures made in the course of the firm’s operations might seem minor, it, in fact, has had a tremendous impact on the company’s ability to arrange its resources properly and use them sparingly. Similarly, a drop in the interest of loans shows that the company is likely to reduce the average maturity of its debts and pay its liabilities without unnecessary procrastination.

Cash Flow

Likewise, the increase in the net cash flow of the organization, although seemingly unnoticeable, proves that the company has been experiencing a significant improvement over the past few months. The current strategy used to promote the brand product, cater to the needs of the target population and manage the essential operations within the company clearly affects the organization positively as the cash flow has been increasing since Vigorous started operating in the target market.

Therefore, despite the obstacles that the firm may face in the environment of the global market, there is a solid chance of its success. The projections made for the next three years also look quite thrilling, as it is assumed that the firm’s ending cash balance will have reached a total of $33,596,020 by 2019. The rapid progress that the company is bound to make will serve as the foundation for its further stellar success.

Balance Sheet

The balance sheet of the entrepreneurship also shows that Vigorous has a huge potential that needs to be explored. Seeing that the total assets of the organization have been rising consistently over 2016 and are likely to be on the throughout 2016-2020, Vigorous is bound to be beyond profitable.

In addition, the fact that the accumulated depreciation levels are expected to be reduced needs to be mentioned among the reasons for investing in a Vigorous organization. Furthermore, the total current liabilities rate is expected to shrink. Consequently, the organization will suffer a smaller number of expenses and will be able to generate a larger net profit (Sawyer, 2015).

The balance sheet calculations show that Vigorous is likely to be very successful in the target environment. With an outstandingly well-developed brand product and the philosophy that is going to attract a large number of customers, the firm is likely to take its niche in the global NAB market quite fast and attract the attention of the target population members within a comparatively short amount of time.

Reference List

Gordon, J. M. (2014). A business plan for growth-based ventures. New York, NY: The Business Professor.

Sawyer, T. (2015). Financial modeling for business owners and entrepreneurs: Developing Excel models to raise capital, increase cash flow, improve operations, plan projects, and make decisions. New York, NY: Apress.

Taber, D. R., Chriqui, J. F., Vuillaume, R., Kelder, S. H., & Chaloupka, F. J. (2015). The association between state bans on soda only and adolescent substitution with other sugarsweetened beverages: A cross-sectional study. Physical Activity, 12(Suppl 1), S7-S16. Web.

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