INDEPENDENT BUSINESS PLAN

AIR ACADEMY HIGH SCHOOL

6910 CARLTON DR, U.S. AIR FORCE ACADEMY, CO
80840
WILLIAM MARKWORTH, GAVIN WAYNE, CARTER
WOOD
NOVEMBER 2019
 Table of Contents

I. EXECUTIVE

SUMMARY……………………………………………………………………………………….1

II. PROBLEM…………………………………………………………………………………………………

……….2

III. CUSTOMER

SEGMENTS………………………………………………………………………………………2

IV. UNIQUE VALUE

PROPOSITION………………………………………………………………………….4

V. SOLUTION…………………………………………………………………………………………………

………5

VI. CHANNELS…………………………………………………………………………………………………

………6

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VII. REVENUE

STREAMS……………………………………………………………………………………………7

VIII. COST

STRUCTURE…………………………………………………………………………………………….8

IX. DETAILED

FINANCIALS…………………………………………………………………………………….10

X. KEY

METRICS………………………………………………………………………………………………….1

XI. COMPETITIVE

ADVANTAGE…………………………………………………………………………….12

XII. CONCLUSION

………………………………………………………………………………………………….13

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XIII. BIBLIOGRAPHY…………………………………………………………………………………………

…….15

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 I. Executive Summary

Cost Structure
Description of Product:
Oceanic Fresh is a hard plastic water bottle company. Oceanic Fresh is based off the revolutionary
production process of the bottles. The bottles are created by recycled trash from the ocean. Our
company will have three boats rotating through the ocean collecting trash and then bringing the trash
693,000
collected back to our production720,000facilities. At these facilities the trash is sorted and then recycled to
then start the creation process of our hard plastic bottles. These bottles are similar to other bottles on
the current bottle market but our bottles are made with a good cause behind the production. Our
bottles will be selling for $11.50 per bottle. Additionally, we will be donating 20% of our profits to
natural disaster affected communities. Oceanic Fresh is currently the only bottle production company
on the market that209,000
Boat Expenses
is Employment
making bottles for profit and to help affected areas on our planet as well.
Production
Problems Solutions
Cleaning the Pollution in the Ocean: The Collecting the Oceans Pollution: Our bottles
oceans wind up with around 18 billion pounds of are specifically made out of recycled trash
trash every year. Millions of marine wildlife die collected from the ocean.
every year due to the pollution in our oceans. Donating Profits: We will be donating 20% of
Helping with Natural Disaster affected our profits to natural disaster affected
Communities: As well, more than 250 countries communities.
are affected by natural disasters each year. These
natural disasters are destroying communities and
killing millions of people each year.

Customer Segments Channels

Primary: Secondary:

Established “Social Media

Adults Influenced”
25-50 Years Old 15-21
$45,000- This age will be
$90,000 annual the primary for
salary social media Unique Value Proposition:
No specific sex, marketing The production process and the
race or marital donation of our profits will attract
status customers to our business to help
change the world.

Competitive Advantage
Oceanic Fresh is the very first bottle making company that uses recycled ocean pollution to make our bottles. Our
business is centralized around a “Good Cause” to make people feel the need to buy our product to make purchase
our product to help the cause. We are trying to use our companies values instead of our product as the main threat
to other companies in our market.
Detailed Financials
Oceanic Fresh to meet capital needs is a request of an initial
investment of $400,000 from investors, in exchange for a 12.5% Key Metrics
equity stake in our business, valuing our business at $3,000,000.
This means that owners Will, Carter, and Gavin will retain 87.5% of Service
4 o User Feedback
the company. The $400,000 addition to the founders’ investment of
$150,000 will cover the costs of initial startup and production Marketing
materials o Social Media Analytics
Income Trends
II. Problems: .

Cleaning the ocean

    There is about 18 billion pounds of trash that wind up in the ocean every single year. That is

approximately one dump truck full of trash dumping into the ocean every single minute.  With

that number growing continuously every single year

we would like to change this and help for the overall

well-being of the world. The pollution coming into our

ocean is killing thousands of marine wildlife every

day. This problem is one of the most addressed

problems over social media today. We as a business are aiming to make this problem our target

problem to address. With the help of our customers behind us we will be able to slim down the

amount of pollution in the oceans today. 

Helping with natural disaster affected countries.

    Every year over 250 natural disasters affect countries all over the world. With the number of

natural disasters growing every year, the amount of people that are in need for resources is

greater than ever. The problem with natural disasters is that there is no possible way to prevent

them, but there are steps to lessen the damage that comes from natural disasters. As a business

we are striving to aid countries that have been affected by natural disasters.

III. Customer Segments .

We want to have a very genuine and solid relationship with every single customer we

encounter. It is imperative that we reach our target market. The primary target of people we are

trying to attract are established adults. This is because we are trying to sell as many bottles as

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possible and adults who have money to spend are the most probable people to buy our product.

The demographics are the most important factor to figure out our target market. We identify our

target market by having no specific race or sex. As well, we believe that our primary market will

be adults between the ages of 25-50 years old. We believe our age range will make an average

income of 45,000 to 90,000 dollars. We have no specific marital status for our primary market.

This demographic for our primary market is the people we are targeting to make the most gross

sales possible. 

To sell a product, your business shouldn’t be specific to one single market of people. So,

as a brand we also have to identify our secondary market. Our secondary market will be the

younger ages that

are dominating

social media

currently. The

ages of 15-21 will

be the age range

we will try to hit.

We don’t have any

specific sex,

income or race for

our secondary market. The ages 15-21 are the most active on social media, so we will try to take

advantage of this demographic by heavy social media marketing. The sales from this targeting

will most likely not be affected by this age range specifically. We want to target these age ranges

to set the base for our business to spread our companies sales to our primary market.

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 Ocean pollution is a worldwide problem that many people are willing to help fight

against. We believe we will make our business international for this. This is to expand our sales

to the wide range of people around the world. With our problems being worldwide making our

business internationally sold we will be able to expand our market to the most possible cap we

can around the world. 

IV. Unique Value Proposition .

“Make an impact with one purchase”

The world is in need of a difference to be made, and our company does just that. As a

business our main goal is to make a positive impact on the earth. Oceanic Fresh makes it possible

for individuals to make a substantial change in the world by just making one purchase. We strive

to create a clear message that will show why we are unique and

worth the investment. With the growing fear of the negative

impact that we are making on the world, individuals want to find

an easy way to make a change. Unlike any other business, we

have a purpose to decrease the pollution in the ocean, and to

assist in aiding countries struck by natural disasters. 

    We want to create an image in the minds of our customers that

by making a purchase you are making a change, and that even

the slightest amount can make one of the biggest impacts. We

strive to make a means of impact that will make the earth a better

place. Our main goal is not to completely solve the problem with pollution, we aim to make a

positive cause to bring communities together. 

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 As we are making an impact on the world, we aspire to market our brand as a product

that anyone can use, and to anyone that wants to see a change in the world. As more and more

people buy into our product, the more of a difference that will be made in obtaining a better

place for everyone to live. 

V. Solution .

The Ocean and this Planet is in a very bad state regarding the pollution. We aren’t

aiming to completely stop pollution in the Ocean because that just isn’t possible right

now. But, we are aiming to help and slim down the amount of pollution in the Ocean.

We as a business will be focusing our trash collection in the Atlantic Ocean. Our

business will have three ships running on a continuous schedule. Two ships going out

in the morning and returning in the night and one ship going out at night and

returning in the morning. The trash collected in the Ocean is then brought back to one

of our three facilities and recycled. The recycled trash is then converted into

biodegradable plastic water bottles and filled with water. This solves our first

problem by helping the cause to clean up the Ocean. But, as a business we aren’t just

cleaning up the Ocean. We are also reselling the recycled trash for a profit that will

better our communities.

The 250 plus countries affected by natural disasters in the World are very large

problems. Like our solution to help cleaning the Ocean, we would also like to help

these affected countries and people. We will solve this problem by donating 20% of

our profits made to countries affected by natural disasters. We as a business believe

that 20% of our profits is a huge way to send aid to these affected areas of disaster.

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 The 20% we are giving to these countries is the perfect amount to donate. This

amount allows us to still make a profit as a business and put money to expand, but

also this allows us so help address and solve this problem that arise in the World.

VI. Channel  

Distribution of our products to the customers is one of the most important business

decisions to make for efficiency and profit. We will make our company mostly sold through

Indirect Distribution, but we will also have a smaller portion of our business sold through Direct

Distribution. 

    With Oceanic Fresh we have a very complex way of making our products. We first have

collector boats in the Atlantic ocean collecting trash and transporting this trash to one of our

three deposit facilities on the east coast in Miami,

Charleston and Boston. We will have a continuous

fleet of 4 boats running from the Atlantic Ocean

back to one of the three Deposit sites. Then, once

the trash is back at these facilities we will be sorting

and recycling the trash. This process then leads to

the production process which we are making our

reusable hard plastic water bottles. After the

production of our bottles they are off to be shipped. 

    65% of our bottles produced will be sent directly to retailers for our Indirect Distribution. Our

retailers will consist of big chain retailers like Walmart, King Soopers and Costco. These are

three of the biggest retailers in the United States which will help our business expand. With

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using this as our sole way to sell our product in the United States we will have to bump our

prices at the retailers for the loss of direct profit to us. We will sell our product to the retailers

using wholesale to sell our product to the retailers. With selling wholesale to retailers we will be

directly shipping our product through air to our retailers. Our business is going to be solely sold

through retailers in the United States to cover manual shipping to each customer in the united

states where our business is mostly based.

The other 35% of our bottles produced will be sold through Direct Distribution. This

method of our selling process will be solely for the international customers outside of the United

States. We will not be wholesaling our product to retailers internationally. So, we as a business

will sell our product internationally through our website. With our social media marketing we

will attract customers to buy our product off our website. Buying off our website will be more

pricey than our bottles in the United States. This is because the customers will have to pay a

shipping fee as well as the price for the bottles. After the purchase we will ship the bottles out to

our customers internationally using Direct Distribution.

VII. Revenue Streams .

To assure the most profit of a business we need to determine the right revenue model for

our business. There are many models to choose from to model a business's finances. We are

going to center our business off or a Markup revenue model. As a manufacturer we will sell our

goods to a wholesaler at a fixed price. The fixed price will include profits over and above the

price of the cost of manufacturing the bottles. This business model is also a very attractive part of

our business. The markup model is a very balanced way to sell a product for manufacturer and

wholesaler. Both of our companies will be making a sense of profit from our product. The only

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con we have with this is the fact that the bottles will be more expensive for the customer to buy

from retailers than just buying straight from us. Even though that is a big con for our business we

believe that the Markup revenue model will fit our business the best.

With the selling of our hard water bottles we have to figure out the numbers for our

lifetime value of our product to be able to decide the amount of money to set aside to other

business factors. Such as allowable acquisition cost and our investment acquisition cost. Our

bottles will be set to a fixed price of $11.50 to sell to the whole sellers. Since we are not selling

our product directly to our customer we will calculate the lifetime value of our product for the

retailers. We are looking to sell around 525,000 bottles the first year of our business. Through

the sale of our bottles to three retailers we expect our bottles to be sold through an even split

between the three retailers. So, with this the lifetime value for each of the businesses will be the

same.

$ Per Bottle Bottle Sold Per Year Yearly Revenue

Retailer Per Retailer
$11.50 175,000 1 $2,012,500

This means our revenue per month will be $167,708 dollars from each retailer. This is the

perfect price to sell our bottles at. This estimated revenue allows us to see how much money we

will be able to use in marketing campaigns and investments back into our business. The lifetime

value currently is just an estimate. If our profit of our estimate is correct we will be able to

provide essential amounts of money aside to provide for the running and growth of our business.

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VIII. Cost Structure     .

Each water bottle will be sold for $11.50. Shipping will vary based on where the

Bottle Sell Price How Many? Cost Production cost

$11.50 525,000 $1.32 $693,000

customer is located. We predict we will sell close to 525,000 water bottles in our first year. Each

Water bottle costs us $1.32 to make. With the predicted 525,000 bottles sold in the first year,

with each bottle costing $1.32 to make, it will cost us approximately $693,000 for production of

the water bottles. With us selling each bottle at $11.50 and a predicted 525,000 bottles sold, we

are projected to make $6,037,500 in gross sales for the first year. With taking the price of

production for the water bottles out of our sales, we are projected to make $5,344,500 in net sales

for the first year. 

We will hire a total of 60 employees between our 3 factories, and our 3 boats. We will

have 15 people in each factory and 5 people in each boat. We will have 3 shift managers in each

factory and one on each boat. Job Title Hours Weeks $ per Yearly

Every employee will work 40 hour Salary

Factory 40 50 21.40 42,800
hour weeks with 2 weeks of sick
Manager
or vacation days. The salaries
s
yearly for each expected Boat 40 50 23.60 47,200

person employed is stated Manager

below: s
Factory 40 50 16.50 33,000

Workers
IX. Detailed Financials  Boat 40 50 17.10 34,200 .

Workers

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 For the first year we are looking to sell around 525,000 bottles, so in the first month we

will sell around 43,478 bottles, which is around $500,000 earned revenue just in the first month. 

We have many factors

that go into our expenses.

The rent for our three

factories is around

$25,000 per month at

about eighty-three cents

per square foot. We are

also projecting around

$60,000 of monthly expenses for the boat’s

servicing, gas, insurance, and holding. Also we are expecting the cost of employing workers will

be around $189,000 for their salary. We also are adding in around $20,000 of worker related

expenses as well. The price to make the bottles in one month will be around $57,750. The

expenses for our machinery making the bottles will be around $20,000 for regular upkeep. The

total cost of expensive for the first month is projected at $342,000. This is a profit of around

$158,000 per month. With our investors taking twelve percent equity of our business that takes

$19,750 from our net profit. So the total profit gain will be $158,000 in the first month. With this

number we calculate our profit for one year will be $1,869,000 in the first year. 

For the first three years of our business we are expecting around 20% of gained

customers in the next two years. So, our profit for year two will be around $2,268,000 with the

projected growth included. This makes our year three profit around $2,721,000. The profit

margin is very large if our market and the cost we expect to start our business will be very high. 

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 Oceanic Fresh will need an initial investment of around $400,000

Oceanic Fresh will not receive a loan to finance itself, and will solely depend on investment for

equity in our business. For this capital, Oceanic Fresh will give its investors 12.5% equity stake

in our business’s percentage is enough so people will invest into our company and make money,

but this also gives us three security of the control of our business. We as the business owners will

also invest our own money into the business. We are all looking to invest around $50,000 each

into the business. This puts the initial investment into our business around $550,000. This

investment will be adequate enough to be able to fund the start up of our business production.

This investment will help us buy the machinery, boats, employees, and the factories.

X. Key Metrics .

    As a brand new business we have to insert ways to assess the success of our business. These

methods will be able to show us a report on how well our company is doing overall. We have

decided to measure the success of our service, marketing techniques, and income trends.

    It is very important that we are able to focus on the success and efficiency of the exchange of

product to customer. We will be able to measure how well our service to the customer is doing

by user feedback. We will be using social media and review platforms for the customer to be

able to reach out to us as a company. These reviews and comments will be able to relay the

product to customer relationship and be able to highlight the un-efficient methods of our

customer service. This will allow us to be able to tweak our service aspect of our business to

make the customer the most satisfied as possible.

    Marketing is one of the biggest factors for our business to reach our customers. We will be

focusing on social media marketing for our specific target market. To measure the success of our

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social media ad campaigns we will buy the analytics option on the social media platforms to

gauge the amount of clicks by each post of advertising we will get. These analytic options will

also allow us to see what demographic is looking at our post. These statistics will allow us to

change our marketing techniques to cater more to our target market.

    Lastly, we will measure the income trends of our business to help make product selling

decisions in our business. We will be able to see what demographic of people our buying our

product. This will allow us to see if we are selling and marketing to the correct target market and

for that be able to tweak the promotion aspect of our business to cater to our target market. We

will also be able to gauge how many units a single person is buying. This will be able to help us

make promotional events to gain additional sales there as well.

XI. Competitive Advantage .

    Oceanic Fresh is the first company in the water bottle scene to use the process of making the

bottles that we do. Hence, Oceanic Fresh doesn’t have any direct competition which boost sales

for our company. Our business is centralized around a good cause, we are cleaning the ocean

while selling a product that millions of people around the world use. By using a good cause as

the base of our company more people will feel obligated to buy and “help the cause”. 

    For a product to be successful in a currently saturated market, we need to provide more to the

customer for them to purchase our bottle over others. Our bottle doesn’t currently have any

outlining differences from any other hard plastic water bottles in the market. But, our bottle does

have the competitive edge of how our bottles are made. We are deciding to run our business by

making the bottles with recycled trash from the ocean. This makes people feel bad and want to

buy our product over other water bottles in our market. 

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    As we stated before, we have no direct competition. Our business does have many other water

bottle businesses as indirect competition. Companies like Nalgene, Yeti, and Hydro Flask are all

huge brands in our market. We aren’t using our product as the main threat to them but our

values. Many people will see our water bottles and decide to buy them over our competition just

for the processes we use to make them. 

XII. Conclusion  .

Request for Financing

The plan for Oceanic Fresh to meet capital needs is a request of an initial investment of

$400,000 from investors, in exchange for a 12.5% equity stake in our business, valuing our

business at $3,000,000. This means that owners Will, Carter, and Gavin will retain 87.5% of the

company. The $400,000 addition to the founders’ investment of $150,000 will cover the costs of:

 Initial startup costs of business production

 Purchasing of materials needed:

o Machinery, Boats, Employees, and Factories.

Once three months have elapsed, Oceanic Fresh’s revenue will cover the startup expenses and

will become self-sufficient. With the 12.5% equity stake, Oceanic Fresh is valued at $3,000,000

which is approximately two years projected revenue. Investors in Oceanic Fresh will recuperate

his/her investment within one and a half years as our business’ market is highly profitable. 

Financial Situation

    Oceanic Fresh needs $550,000 to sustain itself for the first four months while the revenue is

lower than the income. This capital will allow Oceanic Fresh to stay functioning until it becomes

a profitable income. The $400,000 investment included with the $150,000 put forth by the

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owners will contribute to this capitol. The owners will retain majority control of the company, 

so that all decisions will be made by owners. Investors input will be thoroughly considered in the

decision making process

Summary of Key points

    Oceanic Fresh will achieve a high standard of success as it allows individuals to contribute to

the issue of global pollution, and natural disasters, therefore positively impacting the planet.

Oceanic Fresh is one of a kind as it reduces the amount of pollution in the ocean, and donates

20% of sales to communities affected by natural disasters. It allows everyday individuals to

make an impact with ease and accessibility. We are streamlining the process it takes to make a

change in the world, and making it more convenient for all individuals. Combined with the ease

of making a purchase, which allows users to create a better place to live with the click of a

button, makes Oceanic Fresh an appealing product for the common consumer. Moreover,

Oceanic Fresh appeals to every individual, even if they're incapable of making a tangible

difference. Overall, Oceanic Fresh will make a positive impact on society by aiding communities

affected by natural disasters, and reducing the amount of pollution in the oceans, making it

beneficial, greatly appealing, and a profitable venture opportunity for any investor. 

XIII. Bibliography .

Dillinger, Jessica. “Countries Most Prone to Natural Disasters.” WorldAtlas, 21 Jan. 2016,

www.worldatlas.com/articles/countries-with-the-deadliest-natural-disasters.html.

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Parker, Laura. “Eight Million Tons of Plastic Dumped in Ocean Every Year.” New Study Shows

Plastic in Oceans Is on the Rise, 10 Oct. 2017,

www.nationalgeographic.com/news/2015/2/150212-ocean-debris-plastic-garbage-

patches-science/.

“Proposed Plan to Meet Capital Needs.” M Squared Education, Feb. 2013,

m2education.weebly.com/proposed-plan-to-meet-capital-needs.html.

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