Professional Documents
Culture Documents
FINAL Term Paper
FINAL Term Paper
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Course Title: Corporate Finance
Course Code: FIN-522
Section: 01
Prepared For:
Professor Dr. Tanbir Ahmed Chowdhury
Professor, Department of Business Administration and
Director, Executive Development Centre
Prepared By:
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August 31, 2023
Dear Sir,
Here is the term paper on “Business Plan of Omega Company: A Complete Study on projection
of establishing a new business that we would like to submit for the requirement of our Corporate
Finance course, Fin-522.
In preparing the term paper, we have tried our best to make sincere efforts to present the
financial feasibility test for establishment of a start up business in the sector of Ice-Crem
Industry.
In this connection, may we urge upon the benign honor of yours to go through the paper and let
us know about any change and adjustment needed in the paper.
Thanking You
Sincerely Yours,
Name: Md. Hafejur Rahman Chowdhury
Student ID: 2022-2-95-043
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ACKNOWLEDGEMENT
At the very outset, we would like to express our sincere gratefulness to the Almighty Allah, the
most merciful and beneficiary for empowering us to accomplish the dissertation within
scheduled time.
We are highly indebted to our course instructor, Professor Dr. Tanbir Ahmed Chowdhury. He
allowed us to encroach upon his precious time right from the very beginning of this paper work
till the completion. His expert guidance, affectionate encouragement and critical suggestion
provided us necessary insight into the problem and paved the way for the meaningful ending of
this term paper in a short duration. Without his constant supervision and valuable advices a
suggestion from time to time, we would not be able to complete the whole thing in a right
manner.
We would like to thank all those who contributed through their comments, suggestions and over
the phone interviews.
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Table of Contents
Executive Summary.........................................................................................................................7
Introduction:....................................................................................................................................8
Objective of the report.................................................................................................................8
Limitation.....................................................................................................................................8
Company Profile..........................................................................................................................8
Vision Mission.............................................................................................................................9
Product Description......................................................................................................................9
Ice-lolly........................................................................................................................................9
Mini-bar ice-cream.......................................................................................................................9
Family Pack Ice-cream.................................................................................................................9
Organizational structure.................................................................................................................10
Industry analysis............................................................................................................................10
Market Description....................................................................................................................10
Market size.................................................................................................................................11
Competition................................................................................................................................11
Growth.......................................................................................................................................13
Strength and weakness of the competitors.................................................................................14
SWORT Analysis.......................................................................................................................15
Marketing Plan...............................................................................................................................17
CUSTOMERS:...........................................................................................................................17
Target Marketing........................................................................................................................17
Age:............................................................................................................................................17
Income:.......................................................................................................................................18
PRICE:.......................................................................................................................................18
PROMOTION:...........................................................................................................................18
MEDIUM-TERM PLANS.........................................................................................................18
Short –Term Plans......................................................................................................................19
Production plan..............................................................................................................................19
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Location andStorage:.................................................................................................................19
Raw Materials:...........................................................................................................................20
Suppliers:...................................................................................................................................20
Financial Plan................................................................................................................................23
Key financial indicators:............................................................................................................23
Breakeven analysis:....................................................................................................................23
Regression equation:..................................................................................................................25
Pro-forma balance sheet:............................................................................................................26
Conclusion.....................................................................................................................................27
Contingency plan...........................................................................................................................27
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Executive Summary
There is a substantial potential market demand for ice-cream related products among the People
of Bangladesh. The ice-cream industry in Bangladesh is gradually increasing and during the
summer seasons the demand for ice-cream increases considerably, and leaves a substantial space
of gap for the new firm to emerge and fill the gap of market demand introducing new or unique
product. We are going to start a company with the name omega private limited company. Our
company will be a private limited company in the beginning with seven members each member
contributing 1cr taka investment in this venture. Our concept of thandai ‘Jaam- Ice cream’ with
the tagline ‘A freeze treat for you” that comes with four new but similar innovative product will
fill the gap of extra demand of ice-cream in the market. During the initial stage of our operation
the “Thandai Jaam-ice-cream” will introduce three products of similar flavor of Blue berry
(Jaam). The four different products will serve customer in four different perspective. As we all
know some customer prefer instant cold drinks to meet their thirst, here our lolly bar ice cream
will fulfill this customers demand while some customer prefer juicy mixed with cream our mini
bar ice-cream which will be available at 20 taka will solve this customer’s prospects here we will
consider notorious expects of the ice-cream as well. The differentiation in product will be related
to its quantity and quality of the products. Such that we will have two individual pack and one
family pack. the cheapest pack is our lolly bar ice- cream that will be sold in the market at price
5taka which will contain just flavor of ‘Jaam’ with Bar-ice. And our family pack ice-cream will
be available to our target customer at taka 70. Initially our target will be to launch our product in
the major cities of Bangladesh such as Dhaka, Chittagong, and Sylhet etc. Our long range
forecast will be to gain the market share of whole of Bangladesh with the period of 10 years.
And by 15 years our productive will be available outside the country as well. Along with
satisfying customers’ instant thirst we will consider the nutritious Expect of the customer as well
because we know for serving customer for long term we must maintain quality of our product as
well
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Introduction:
The ice cream industry of Bangladesh is not exactly exposed like other industries because so far
there were not many corporate presences in the industry. But now, there are eleven corporate
entities that are competing and trying take over the market rapidly. As a consequence of that,
Omega Company had to make their marketing strategy stronger to secure their position in the
market providing the high quality products with reasonable prices. While becoming the market
leader is a far-fetched dream for our company however having a strong foot of market share is
the first priority and trying to create unique marketing strategies to stay in the market leading
position. The ice cream industry is moving with a very fast growth rate at an average of 15%,
now the stage is in such a place that everyone has taken different positioning strategy in separate
untapped areas related to their product. Igloo being the market leader in the Bangladesh ice-
cream industry are developing new and innovative ice-cream and launching periodically in the
market which is why the marketing industry in Bangladesh is gradually becoming competitive
for the entry of new comer. However, at present there exists a huge potential for the new comer
as the market leader and follower are not able to completely capture the entire markets that is the
demand of the ice-cream products are far beyond the total supply of the ice-cream products in the
Bangladesh market. Even though there is huge potential benefits for the new comer however
being the high capital intensive and seasonal demand of the products many investors are
reluctant to venture in this industry.
Limitation
The data provided in this term paper has been collected and written mostly from secondary
sources as well as from intuition of our knowledge. Due to this limitation, it was quite impossible
to acquire large amount of firsthand information.
Company Profile
Omega Company will be a limited partnership company consisting of six partners contributing
equal amounts of investments as well as managing the company. Each partner will contribute an
amount of 1cr taka in the beginning to this business and sharing profit equally. However, the
salaries and other forms of remuneration will be distributed according to the management
position of the business. Omega Corporation will initiate its business by January 1, 2024 and
according its products will be available in the market. The capital of Omega Corporation consists
of 30:70 ratios. Omega Corporation is also going to take financial lease of factory. So, the
overall total capital stands of omega corporation in the beginning are estimated to be in the
beginning Omega corporation is going to launch three products in the markets, the further
product development and improvement will be considered according to the performance of the
running products.
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Vision Mission
The vision of our company will be to provide ‘Jaam’ Flavors ice-cream of different packs at
reasonable prices to our target customers while maintaining qualities, as well as considering the
nutritional and healthy aspects of our customers. The Mission of our company will be to become
the market leader providing quality product in the Bangladesh ice-cream industry within the
period of 10 years in.
Product Description
Initially we will launch three products of similar flavor but slightly different test in the market,
and according to the performance of these products in the market we will decide to bring
variation in these products or we will decide whether we will pursue for completely new product
line in the market.
Ice-lolly
Our Mini bar Ice-cream will be prepared basically to fulfill in the instant thirst of the customer,
though we won’t focus very much on the nutritional aspect of the product however this product
will solve one very important health related aspect which is sweating. This mini bar Ice-cream
will be the cheapest product in our product catalog. This product will be available to our target
consumer at taka 5. Flavored ice-bar of “Jaam” with a wood handle will be physical as well as
chemical composition of this products as well as decorated cover that will not only contain the
promotional aspects of our company but also product details such as date of manufacture,
ingredients as well as date of expiry.
Mini-bar ice-cream
This product will contain juicy ice-bar with jaam flavor that will be available to our target
customer with taka20. This product is meant not only to fulfill in the instant thirst of our target
customer but also we consider here nutrical aspects as well. The product will contain. Excessive
focus will be done here on its packaging. To promote as well as give product description.
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Luxury pack
As the name suggests this is the costliest product of in our product catalog. This product is
generally meant to for the target customer of the higher income group. The product will be
available in fancy container, chunks of cake with flavor of vanilla and jaam will be added in this
product. This product will be available at taka 400 for our target customers.
Organizational structure
CEO
&Chairperson
(Shawon & Irfan)
Industry analysis
The market size of ice-cream industry of Bangladesh is about 1200cr approximately, and it has
been growing at the rate of 15%. 85% of the total market share is occupied by the branded ice-
cream products remaining 15% is shared by premium ice-cream which are expensive than the
branded products. Among the major six companies of ice-cream igloo and polar contribute
around 66% of market share.
Market Description
Bangladesh ice-cream industry is growing rapidly compares to the past as well as compare to the
other industry of Bangladesh leaving a wide gap for the new firm to venture their foot in this
industry. There are quite a number of reasons for this growth of Ice-cream industry in
Bangladesh.
1) Increase in per capita income of the overall consumer
2) Availability of electricity 24x7
3) Reduction in the cost of refrigerator
4) Global warming
However due to huge investment requirement as well as seasonal demand few firms enter this
industry avoiding this risk of sunk cost despite being there high potential for the success. One of
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the important aspects of Bangladesh Ice-cream industry is that very few customers differentiate
between brands rather customer seems to be price sensitive which once again makes middle size
local firms to enter in to this industry.
Market size
Due to extensive promotion by leading firm and exposure to different culture as well as due to
the growth of population also due to the changes of weather condition of Bangladesh the total
size of the Ice-cream market has been substantially increased compared to the past. Today it is
about 1200cr industry and local firm capture around 900cr of Ice-cream industry and the most
promising par to Bangladesh Ice-cream industry is that the target customer are very price
sensitive due to which mid level firm are counting huge margin of profit then branded ice-cream
manufacturer like igloo, polar that are dominating the Bangladesh ice-cream industry. According
to a survey it was found out that a large fraction of total ice-cream sold the price of 5taka ice-
cream contribute a huge margins.
Competition
Competition in Bangladesh Ice-cream industry is considered to be very less compared to other
industry and the reason behind it attribute the fact of complexities of production and distribution
process as well as few other barrier which are stopping new companies entering in this industry.
At present Igloo is considered to be the market leader followed by Polar. There is very less
aggressiveness between the leading firm regarding keeping and maintaining position as well as
for growth.
1) The larger firms has cost advantage of economy of scale then small firm which make
them to produce ice-cream at comparatively lower cost which makes the small firm
difficult to survive in the market.
2) Ice-cream market in Bangladesh is bigger than capability of leading firms which makes
competition among the exiting firm pretty low.
3) There is substantial barrier to entry in this industry with regard to initial cost of setting up
new plant which once again set competition very low.
4) Ice-cream has no direct substitute products which make Ice-cream industry face less
competition which is another reason for less competition.
Igloo comes to the top of the list when it comes about the market share of the Ice-cream industry
of Bangladesh holding 38% of market share followed by Polar holding the 2 nd position of with
the market share of 28%. Bangladesh ice manufacturing company in Bangladesh and polar
comes 34d in rank in the list. Kwality come third in the list with 19% of market share.
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Market share percentage over the years is presented in the flowing table.
Market share
3%
Igloo
13%
Kwality
Polar
43%
Zan n zee
Others
28%
19%
Ice-cream industry in Bangladesh still continues to be city oriented products and demand is
comparatively low in rural areas the obvious reason might be cost of electricity and refrigerator
and other reason might be income as well as temperature of the rural areas.
Sales
70%
61.00%
60%
50%
40% Sales
30%
18.90% 16.90%
20%
10% 4.80% 5.90%
2.50%
0%
Dhaka Chittagong Khulna Comilla Barisal others
Dhaka still is the largest contributor in the ice-cream segment nevertheless over the year the
trend is shifting. Areas outside Dhaka are also growing, making Dhaka’s share lower by small
percentage as urban markets are the major contributors. Generally, the leading companies design
their products keeping in mind taste and style of urban consumer as mentioned earlier electricity
has been the major cause for the diversification of market segment as well as increasing the total
overall cost.
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Seasonality of Sales
Since Ice-cream is being consumed mainly during warm weather so the sales volume ice-cream
fluctuates intensely round the years. The following secondary data sources give the following
information.
The given data has been collected by questing retails so this may be for from exact value. Apart
from that various festival such as Eidul Adha, Eidul Fitr also contribute fluctuation of Ice-cream
sales.
Growth
From the above discussion and data representation of the Bangladesh ice-cream industry it is
clear that there is huge potential for the growth of this industry in the future. Furthermore, large
part of rural areas of Bangladesh is completely vacant for any new firm to venture their assets.
However according to a survey, the present growth of Ice-cream industry is around 12-15% and
substantial reason for this is due to extensive promotion which is done by Igloo for their market
penetration.
Change of weather such as reduction of the length of winter season has also factor to increase in
the growth of ice-cream industry.
New and improved technologies as well as innovation of new flavor also attracting and building
new customer, which once again add growth to the ice-cream industry of Bangladesh.
Prospects of Entry
1) The industries current growth potential is very high opportunity of market development
2) The competition currently permits adequate profitability
3) Level of risk very low in ice-cream industry because the consumer market is so huge any
product with standard quality and careful pricing will be able to make significant profit
4) There is a huge scope for market penetration and development to increase frequency of
ice-cream consumption
5) Since Ice-cream industry is capital intensive so once as firm get establish there is very
less change of rivalry by the new comer.
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Strength and weakness of the competitors
Company Strengths Weakness
Igloo Strong brand image Items are generally a bit pricy
High product quality Igloo does not give free
Highest no. of variety freezers like other companies.
Strong distribution Reluctant in recent times
network regarding innovation
Highest visibility Local sourcing of liquid milk
Strong promotion does not meet demand
High production Failure to use ERP technology,
capacity slowing decision making
Presence of extrusion ice
cream
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SWORT Analysis
Strengths
The strengths of Omega are:
Omega introduces products of new and innovative flavor of “jaam”
Owned and managed by the partners
Most of the raw material are collected from domestic suppliers
Focused only on niche market
Product variation
Competitive pricing.
Good packaging
Product quality
Weaknesses
The weaknesses are:
Market share
Availability of large source of funds
Single flavor of “Jaam”
No deep product differentiation
Narrow distributional channel
Seasonal variation of demand
Opportunities
Demand of ice cream is very high and it is growing.
Market is increasing 15% per annum.
Cheap labor cost
Developing markets
Less number of competitors
Scope of improving flavor and products
Threats
Uncontrollable situations like bad weather, irregular power supply, political violence,
flood etc
High cost involvement for automatic plant and for providing freeze to the retailer
Consumers change their taste and flavor rapidly
Easy entry in the market for any supplier\
Government Taxation
Infrastructure of the country
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Existing Products
There are quite a number of different variations of ice-creams products available in Bangladesh
ice cream markets that have gained the markets share of the industry over the years. The major
player of ice-cream industry in Bangladesh are continuously developing and introducing new
products of ice-cream to satisfy the target customers. The initial aim of Omega Corporation is to
introduce the three different ice-cream of the flavor of “Jaam”. Following are the description of
the few ice-cream products that are dominating the ice-cream industry of Bangladesh.
Chocó bar
Chocó bar is one of the largest selling products in Ice Cream industry. Vanilla with chocolate
coating sticks.
Cone
The Ice cream paste is filled in a Cone shaped biscuit. The product is available in Vanilla and
Mango flavor.
Chewy
The Ice Cream paste is filled in a 150 milliliters of cone shaped plastic cup. This is available in
vanilla and strawberry flavor.
Crunchy
Polar has first introduced this ice cream Vanilla with crispy coating.
Vanilla Toffee
This ice cream’s outlook followed the Logo of Polar ice cream with vanilla and strawberry
flavor.
Vanilla Strawberry
This ice cream has only Vanilla and Toffee flavor.
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Marketing Plan
CUSTOMERS:
Being the major source of survival and profit, customers are the most important component for
an organization. Omega considers customers as being their life-blood of survival and is taking
the maximum innovative efforts that can be utilized for utmost customer’s satisfaction.
Customers here can be segmented to family, kids, teenagers of high end, mid end and low end
of the market. Changes in the number and type of customers’ results in a dimension of
opportunities and threats. Omega operating in such ever-changing world of tastes and
preference pays heed to customers’ choices and their attitudes. They, very keenly take on
customers’ advice, try and amend as well as add new dimension to their business in order to
ensure survival in this highly competitive industry.
Target Marketing
The kind of market Omega will operates in is characterized by the volatility of its general
environment, the dynamism of its competitors and most of all the varying and the inconsistency
of needs and buying preferences of the consumers market, which are important consideration
guiding their day to day operations. Keeping this in mind, Omega has developed sound
marketing programs, which starts with identifying the differences that exists within a market,
deciding which segments will be selected and developing specific marketing mixes so as to
influence intended customers, and overall perception.
Age:
This is the most important component of demographic segmentation. Over the years, ice creams
were considered to as being more of a recreational product, but standing on this new century,
the effect of globalization has placed ice cream as more of a regularity in our lives. Omega has
divided its markets in segments according to different age groups such as kids, teenagers, and
the family range. Different ages of people are influenced by different flavors of ice cream,
different presentations of packaging and different product attributes. Kids incline more towards
ice creams, which contains animated and colorful packaging, and different types of test.
Teenagers prefer low calorie ice cream, more daring and wider range of tastes. Families are
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influenced more by ice creams that fulfill the general appeal and taste of all the members of the
family.
Income:
Income is the key determinant of consumers buying behavior. It is the most popular
demographic variable for market segmentation. For a larger part of the population to buy the
product, it is very important to segment the market in different income groups. This is given
utmost importance in Bangladesh where there is wide variation in the average levels of income.
Omega has chosen three income group peoples – low-income group, middle income group,
higher middle income group.
PRICE:
Price is what the buyer wants to give up obtaining the product. It is often the flexible of the four
marketing mix elements – the quickest element to change. Omega in setting its price considers
the kind of competition in the target market as well as the cost of the whole marketing mix. It
has developed its prices for its segments. This includes a range of TK 5/- because they choose
only low income peoples, TK 20/- for middle income peoples and TK 70/- for higher middle
income people and for higher income peoples 400TK
PROMOTION:
Promotion is concerned with telling the target market about the product that has been designed
for them through a proper channel, which includes personal selling, advertising, sales
promotion and public relations.
Omega will basically follows two different promotional activities and their explanations are
given below:
Consumers – Availability of scratch cards through purchase of certain flavored ice creams
enables consumers to obtain different types of gifts such as CD player, radio, television e.t.c.
Social Occasions – Even specific promotions are developed for Eid, Christmas, Friendship
day, Valentine day, Halloween and other occasions. For example this year the parlor had a
package for 14thFebruary which included a couple buying TK 200/- worth of ice creams would
get a free cassette of love songs. Also during the Eid time the prices of most of the ice creams
are reduced to a certain level in the retail outlets
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MEDIUM-TERM PLANS
Production plan
The ultimate target of our production process will be manufacturing quality products in a cost
effective manner. For this purpose, modern production techniques will be undertaken. Also, we
want to ensure that the suppliers of the raw materials are reliable enough so that our customers
can get the products within reasonable time without compromising with the quality.
To go on with the production process, estimating the market demand is very important. Our ice
cream will serve as a thirst quenching item in the hot summer season. So it will be more
consumed in the summer. This is why summer will be the peak season for the ice cream. So the
production boosts up in this season.
Location andStorage:
The location of our factory will be Gazipur.
Ice cream is consumed in a frozen state. So once it is produced it must be stored in the frozen
state. We want to ensure that our customers get the quality products. In order to do that, our
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storage for raw materials and the final products will be secure, clean and hygienic. The storage
will have a temperature controlled environment to keep the ice creams frozen.
Raw Materials:
There are various types of ice cream and the recipes are so different. There is a wide range of
raw materials and ingredients for making ice cream. The ingredients vary according to the recipe.
The major raw materials for making ice creams are fruit concentrate, milk, sugar, heavy cream,
vanilla extract, flavors, stabilizer, color powder, ice cream stick, plastic tube, ice and there are
some other ingredients as well. The fruit concentrate will be Black Plum (Jaam) flavored.
Suppliers:
We want to promote local trade. As we are doing business in local market so we are intending to
engage the local suppliers to the maximum extent. So the fruit concentrate and other materials
that are available in the local market will be collected from local suppliers. We are planning to
minimize intermediaries to minimize our cost.
Approximate Costing:
i. Ice Lolly
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ii. Bar Ice cream
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iv. Luxury Pack
Selling Price:
i. Ice Lolly: The selling price cannot be less than BDT 2.62. A reasonable price for the
ice lolly will be BDT 5.
ii. Ice Cream Bar: The selling price cannot be less than BDT 15.1. A reasonable price
for the ice cream bar will be BDT 20.
iii. Family Pack: Selling price cannot be less than BDT 62. A reasonable price for the
family pack ice cream will be BDT 70.
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iv. Premium Ice Cream: The selling price cannot be less than BDT 300. A reasonable
price for the premium ice cream will be BDT 400.
These prices have been determined based on the cost per unit. The costs are approximate costs
and costing has been done based on projection. The price will change accordingly if the cost
changes. Also, these prices will be reviewed if the products are not selling.
Financial Plan
With business plan in hand, one can begin the search for financing. The most common sources of
funds for new business fall into two basic categories: debt and equity. Debt must be repaid and
equity does not have to be repaid but entitles the investor to a piece of your company and a share
of future profits. Most businesses are financed with a mix of debt and equity.
The financial part of a business plan includes various financial statements that show where your
company currently stands and where it expects to be in the near future. This information helps
you determine how much financing your business needs and helps outsiders determine whether
lending you money or investing in your business is a wise use of their funds.
1.5
1 year 1
year 2
0.5 year 3
0
funding operating inventory gross surplus collcetion days
expenses turnover
Breakeven analysis:
Our break-even analysis is based on the on determination the optimum sales price for each
product, to reach maximum revenue by setting the price at the point where revenue is at its
highest. Fixed costs including the overhead for use of the factory premises, utilities/contract
services, payroll, and marketing costs. Marketing expenses will be kept to a minimum, primarily
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employing word-of-mouth and other inexpensive means. Our assumptions on the average unit
revenue are based on the average price we will charge for our ice creams. However, this is
not the only product that will be offered by our company. The result of this analysis offers
general insight regarding the number of ice creams we must sell in order to maintain
uninterrupted operation of the business each month.
Luxury Pack
300,000
250,000
200,000
150,000
100,000
50,000
0
600 500 400 400 400 600 700 700 400 400 500 700
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When the price is 20taka:
Lolly
14000
12000
10000
8000
6000
4000
2000
0
600 700 1000 1400 1600 1800 2000 2100 24000 2000 1300 1000
Regression equation:
Year Advertising expenses Sales revenue
2024 2m 7m
2025 1m 3m
2026 3m 8m
2027 4m 10m
2028 5m 12m
From the above table we can see that how much sales revenue we will earn by spending how
much on advertising.
Y(2024) 5.9m
Y(2025) 3.7m
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Y(2026) 8.1m
Y(2027) 10.3m
Y(2028) 12.5m
Scatter diagram: a graph in which the values of two variables are plotted along two axes, the
pattern of the resulting points revealing any correlation present.
Scatter diagram
14
12
10
8
6
4
2
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
Year 1 Year 2
Assets:
Current Assets
Cash 33,00,000 48,00,000
Accounts Receivable 61,00,000 80,00,000
Inventory 25,00,000 29,00,000
Other Current asset 57,00,000 39,00,000
Total current assets 17,600,000 19,600,000
Long-term assets:
Plant and machineries 410,00,000 390,00,000
Accumulated depreciation 0 0
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Total long-term assets 410,00,000 390,00,000
Total assets 586,00,000 586,00,000
Liabilities and capital:
Current liabilities:
Accounts payable 10,00,000 15,00,000
Current borrowing 50,00,000 28,00,000
Other current liabilities 26,00,000 13,00,000
Total current liabilities 86,00,000 56,00,000
Long-term liabilities 150,00,000 180,00,000
Total liabilities 23,600,000 23,600,000
Owners Capital 350,00,000 350,00,000
Total liabilities & capital 586,00,000 586,00,000
Conclusion
Starting up in business is an exciting challenge. However, it is necessary to have a good idea, a
clear understanding of the market and financial knowledge and skills to support the business'
development. A detailed business plan will help a business avoid failure by: researching the
market. Starting a small business is complex, time consuming and life altering. There are many
more things that go into running it than just providing the product(s) or service(s) that business
offers. We’ll also be responsible for our business’s finances, protecting your business and
personal assets, keeping your business legal, paying taxes, keeping records, managing employees
and more. If we understand what we’re doing and know how to minimize the risks and
challenges, the independence, personal satisfaction and financial rewards you can achieve as an
entrepreneur mean that starting a small business could be the best decision you’ll ever make.
Contingency plan
A business contingency plan helps organization to handle anything unexpected.
The success of the company thus hinges on meeting our sales targets each year and on
maintaining a price nearly identical to the suggested price. It will be more difficult to change the
sales price than the sales quantity due to the competitive nature of this business. However, if
these targets are not met, we will further investigate sales relations with grocery store because it
is essential to keep this facility running at capacity. We will evaluate their customer base yearly,
but if they are continuously not meeting sales targets by the second year, explorations in to
grocery shop will begin. If are sales do not build to expected liters after the third year, we should
strongly consider shutting down in order to minimize further losses. Comparatively, if sales
quantities increase by greater than 20% of the base situation, we will have to consider expanding
production capacity which would include purchasing another batch freezer and hiring additional
staff.
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If the sales do not increase, we will try to apply a different advertisement strategy. And if we
meet with our expected sales, we will go for other flavor and sizes. Also expend our target
market.
Works Cited
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https://yourbusiness.azcentral.com/ice-cream-marketing-strategy-11172.html
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