FINANCIAL ANALYSIS

Financial Analysis

Table of Contents

Introduction1

Business concept1

Aim of the business2

Unique Selling Proposition (USP)2

The business model3

External environment analysis4

Target market5

Marketing mix6

Competitor analysis7

Strengths7

Weaknesses8

Threats8

Opportunities8

Financial plan9

Initial cost9

Sales forecasting9

Profit and loss statement10

Break even analysis and contribution margin11

Payback period12

Conclusion13

References16

Financial analysis

Introduction

In 21st century, to attract entrepreneur it is important to develop effective business plan. Without proper presentation and clarity of business plan, no company can achieve its goal or secure financing. If the business plan is well defined and well presented, it could attract good investors (Abrams, 2003, pp. xiv).

There are some factors which are involved in successful business. This factor involve business concept, have a good understanding of market, knowledge of industry trends and wealth, good focus on business and strategies, management capabilities, ability of attracting customers in all aspects, financial control, responsiveness to change and value of the company and reliability (Abrams, 2003, pp. 1).

Business concept

(Abrams, 2003, pp. 1) focuses on refining business concept, a good concept adds in at least one concept. Which are; it includes new technology or new service or feature; it could be an improvement of current product or service; a product or service for underserved market; incorporation of the new system or technology for enhancing product or services value; and addition of more services or products.

The concept of business is to setup a truck with selling freshly squeezed and pressed juice of vegetables and fruit. The concept is discussed as later; the base of the concept is to provide healthy juices to health conscious customers. The junk drinks such as fizzy drinks, soda and other artificial juices are harmful for the human body.

In UK, a lot of kids and young take soda and other fizzy drink. This is harmful for muscles and it also key to type 2 diabetes (Naish, 2012).

It has been observed that utilizing fresh fruit and vegetables are effective in the curing of some diseases such as obesity, blood pressure and barrier to chronic diseases (Hunter, 2011).

Therefore, the concept of the business to develop a truck shop, which can serve juices to peoples on the beaches of St Ives especially around Porthminster and Harbour beach.

Aim of the business

Most of the successful businesses describe their objectives for internal planning to achieve those goals. The objective of the mission should be challenging and incorporates other activities for achieving the overall success of the business (Abrams, 2003, pp. 65).

Therefore, the objective or aim of juice truck is serving people as hygiene product with real fruit juices for a healthy life; it also includes the awareness of side effects caused by junk drinks. To create a health society and nation is the ultimate aim of the company. The more awareness the more growth will be in this business.

Unique Selling Proposition (USP)

USP consists of one word or paragraph long. It should be kept simple and understandable by the customer. Through USP product can be compared with other products. Some considerations for creating USP are; it can be communicated easily; support USP by facts or data if necessary; differentiate your product from ...