BUSINESS PLAN

Financial and Accounting Analysis of new Business Product



Financial and Accounting Analysis of new Business Product

Introduction

This assignment is aimed at producing accounting and financial analysis of launching a new Business, a new Energy Drink in the market of UK. For this purpose we would analyze the current market for beverages in UK region in order to determine the basic assumption for costs and revenues that the new business would use determine the capital budget, break even point and prepare the expected income statement and balance sheet for the new company over a 12 month period.

Introduction to Business

The Excel energy drink is a new business that is going to start its operations soon in the UK region. It is going to be operating as a sole proprietorship and plans to obtain license from the respective authoritative bodies to register itself as a solely owned company. The name of Energy drink is planned to be Excel Way. Initially, the company would operate to a certain geographical extent. The company is aimed at providing the potential consumers with high quality and fully energized energy drink that would add value tot heir life in terms of health and efficiency at work (Klein, K. E., 2012, n.d.).

Business Product

The core product of this business is the unique energy drink with various flavors of fruits and with no manipulation of harmful chemicals. We are highly concerned with producing a distinct mix of fruits and energizing drinks that is up to the customer set standards and affordable as well.

Assumptions regarding Cost, Price and Operation of Business

Financing

In order to begin the business, we have estimated that the total financing required for the business is 10,00,000 Euros. This amount would cover purchase of energy drink making machinery, plant, office set up, paying fees of availing business licenses, and marketing expenditures. The owner raises 100% of finance.

Target Market

The target market of the business is people that work all day and always require more energy to move forward in their daily lives and at work also. We are particularly targeting adults, teenagers, gamers, sports persons, and people in their late 40s and 50s.

Ingredients

The core ingredients involved in the production of the energy drink are as follow:

Items

Value

Energy

211 kj

Protein

0.5 g

Carbohydrates

10.5 g

Fats

0 g

Fruits Pulps

30 g/1

Caffeine

70 g/1

Vitamin B 3

7.3 mg

Vitamin B 5

2 mg

Vitamin B 6

0.8 mg

Vitamin B 12

0.4 mg

Sum of Cist per Can (250 ml)

4 Euro

Source: www.livelonger.hubpages.com

Site of Business and cost of Raw Materials

All the plant and production activities will take place in site area of London City. The drinks will be distributed to super markets, beverages stores, convenience stores and departmental stores. The cost associated to supply of raw material for the production of energy drinks is 5000 Euros and per unit cost per can is 2 euro.

Cost of Office Equipment and Land

The office equipment includes tables, chairs, drink stands, stationary, furniture, land of office and other necessary items, which is estimated to cost about 400,000 Euros.

Cost of Machinery and Plant

It is necessary to purchase efficient and effective machinery and plants that helps ...