Anzah Mustafa

BUSINESS PLAN (2020) BURST – PORK CRACKLING PREPARED BY: https://www.linkedin.com/company/prisma-consultancy-and-management-services BUSINESS PLAN BURST – Pork Crackling FY 2020 CONTENTS CONFIDENTIALITY/EXCLUSIVITY ........................................................................................................ - 3 DISCLAIMER ........................................................................................................................................ - 4 ABBREVIATIONS ................................................................................................................................. - 5 EXECUTIVE SUMMARY ....................................................................................................................... - 6 WHAT IS BURST? – AN INTRODUCTION ............................................................................................ - 6 BURST’s MISSION & VISION ............................................................................................................... - 7 BURST’s GOALS AND OBJECTIVES ...................................................................................................... - 7 PRIMARY GOALS AND OBJECTIVES: ............................................................................................... - 7 OPERATIONAL GOALS AND OBJECTIVES: ...................................................................................... - 8 MARKETING GOALS AND OBJECTIVES: .......................................................................................... - 8 FINANCIAL GOALS AND OBJECTIVES:............................................................................................. - 8 GROWTH GOALS AND OBJECTIVES: ............................................................................................... - 8 RST’s BUSINESS PHILOSOPHY ............................................................................................................ - 9 BUSINESS OPPORTUNITY ................................................................................................................. - 10 PROBLEM WORTH SOLVING ........................................................................................................ - 10 OUR SOLUTION ............................................................................................................................. - 11 OUR PRODUCT .................................................................................................................................. - 12 THE GAME-CHANGER ................................................................................................................... - 12 The Product Itself ..................................................................................................................... - 12 Nutrition Facts – Original Flavor .............................................................................................. - 13 Nutrition Facts – Spicy Flavor .................................................................................................. - 13 MARKET ANALYSIS ........................................................................................................................... - 14 Major Players Across the Globe ............................................................................................... - 14 Key Market Drivers................................................................................................................... - 16 Conclusion on Market .............................................................................................................. - 16 COMPETITION ANALYSIS .............................................................................................................. - 18 Competitive Factors ................................................................................................................. - 20 Burst’s Competitive Advantage ............................................................................................... - 20 SWOT ANALYSIS ........................................................................................................................... - 21 SWOT Analysis’ Conclusion ...................................................................................................... - 22 OPERATIONAL PLAN ......................................................................................................................... - 23 KEY MANAGEMENT ...................................................................................................................... - 23 Founder & Management Team ................................................................................................ - 23 - -1- BUSINESS PLAN BURST – Pork Crackling FY 2020 COMPANY STRUCTURE ................................................................................................................ - 23 Envisaged Company’s Structure (1-2 years) ............................................................................ - 23 Expected Company’s Structure (3-5 years) ............................................................................. - 24 FINANCIAL HIGHLIGHTS ................................................................................................................... - 25 Assumptions ............................................................................................................................. - 25 Statement of Profit & Loss ....................................................................................................... - 26 Statement of Financial Position ............................................................................................... - 27 - -2- BUSINESS PLAN BURST – Pork Crackling FY 2020 CONFIDENTIALITY/EXCLUSIVITY The Business Plan (hereinafter will be referred to as “Reportt” shall be provided as exclusive and confidential submissions to the management and employees of the BURST – Pork Crackling (hereinafter will be referred to as “Company”) and its affiliates. These should not be used, reproduced or circulated for any other purpose, whether in whole or in part without our prior written consent, which will only be given after full consideration of the circumstances at the time, other than, potential investors, coinvestors, advisors, investee companies and related companies who have entered into a nondisclosure agreement with the Company. The Company will not be held responsible for the reliance on information placed by any third party in the event of disclosure of such information by the Company to any such party. The Consultant will provide the advisory services on an exclusive basis to the Company and the Consultant shall not engage, either directly or indirectly, in any business or professional activities, which would conflict with the activities assigned under this assignment. The Consultant shall not, either during the term or after the expiry of the services noted in this letter, disclose any proprietary or confidential information relating to the assignment without the prior written consent of the Company, unless such a disclosure is required by law or regulation or such information has entered the public domain other than through breach of these terms. -3- BUSINESS PLAN BURST – Pork Crackling FY 2020 DISCLAIMER The consultant will exercise all reasonable and proper skill and attention necessarily required to discharge its duty of care to you (the Client) within the parameters of the agreed scope of work. -4- BUSINESS PLAN BURST – Pork Crackling FY 2020 ABBREVIATIONS The abbreviations used in the below mentioned plan are stated as under: Abbreviations -5- CEO Chief Executive Officer EOSP Economies of Scope EOSL Economies of Scale SARS South African Revenue Services VAT Value Added Tax ATO Australian Taxation Office ASIC Australian Securities and Investment Commission TMR Transparency Market Research POS Point of Sales USP Unique Selling Point BOD Board of Directors EXECUTIVE SUMMARY The business plan outlines the launch of a “crackling pork snack” product under the brand name of “Burst – Pork Crackling”. The highlights of this plan are the targeted gross margins and sales-revenue. These targets are attainable through a proactive approach to the candidacy of clients and teaming up with technology providers It is expected to generate positive net earnings in the twelfth month of the first year of operations. The data in this business plan concludes the general description of the business followed by Economic highlights giving brief introduction of the economy in which the company will operate, a Competitor’s Analysis stating the position of competitors and their market shares, a Marketing plan stating marketing budget and related marketing strategies helpful for a startup to maximize profit share, an Operational Plan discussing Burst’s, organizational hierarchy and human resource deployment. We are sure that the business will be able to fill the hole in the edible industry and will add value towards the community at large. Moreover, this business plan covers a comprehensive Financial Plan which includes financial projections for 5 years and breakeven analysis which will not only help Burst but will also provide an insight to investors regarding the financial standpoint of the organization. We feel that Burst is uniquely positioned to profit from changes in the industry, and we feel that our company can continue to leverage the expertise we have gained into higher levels of profit and customer satisfaction. WHAT IS BURST? – AN INTRODUCTION Core information about Burst is presented as under: Corporate Name Burst Pork Crackling Legal Structure Sole Proprietorship Founders & Shareholders Mr. James Ly Business Nature Snacks Office Location Brisbane, Australia Target Market Starting from Brisbane then expanding to rest of Australia and then go global. Burst is a brand serving pork crackling across Australia. The biggest aim is to bring back the classic taste and texture of the product which is hardly to be found in today’s market. Having this major aim, Burst entered into the snacks industry. At Burst, it is believed that every little opportunity can be maximized and capitalized to get bigger rewards. Entering the industry with two flavors of the product i.e. “Original” BUSINESS PLAN BURST – Pork Crackling and “Spicy” is the proof of that. Changing the dynamics of traditional snacks businesses and transforming it into a modern-day success story is the aim behind Burst’s struggle. How will Burst reshape the industry? It starts with their quality of service, value of the products and services offered to society and by constantly meeting the customer’s satisfaction benchmark. BURST’s MISSION & VISION Burst mission is all about providing a classical taste and texture which is nowhere to be found in today’s pork crackling industry. As for the vision, the higher management has set various expansion and growth benchmarks. Burst will always be remembered for not only being financially sustainable ( i.e. being operational in coming future) but will also provide employment and investment opportunities. Burst will be a brand name of trust worthiness, loyalty and high standard ethical & social values. BURST’s GOALS AND OBJECTIVES Accomplishment of entity’s goals and objectives is the only way to ensure that performance targets which were set by the higher management are being met and the organization is moving in the right direction. By keeping such ideology in view, Burst has set its goals and related objectives, details of which are mentioned below: PRIMARY GOALS AND OBJECTIVES: There are Five primary objectives by which success of Burst will be tracked: ❖ Maintain 100% existing customer base by providing consistent customer services i.e. in shape of same taste and flavor ❖ Produce and provide exceptional quality product at affordable pricing without compromising customer’s convenience; ❖ Expand customer base through direct referrals and aggressive direct sales with a goal to operate on a global level as well; ❖ Expansion of products lines by considering customer’s needs and wants; ❖ Promote good values of company culture and business philosophy; and ❖ Selection of such marketplaces which are prominent and easily accessible for customers. -7- FY 2020 BUSINESS PLAN BURST – Pork Crackling OPERATIONAL GOALS AND OBJECTIVES: Burst’s key operational objectives are stated hereunder: ❖ Producing a product at least possible cost i.e. without compromising the quality; ❖ Introduce state-of-the-art cooking machinery to cook quality food and serve customers efficiently; ❖ Introduce state-of-the-art packaging plant to provide consistency in packaging process; MARKETING GOALS AND OBJECTIVES: Key marketing goals and objectives are presented as under: ❖ Adoption of sound modern and technological online marketing techniques; ❖ Application of market segmentation principles and adhere with industry wide acceptable marketing policies; ❖ Adopt means to improve Burst’s brand name, generate good will and enhance customer loyalty; ❖ Make use of free social media forums such as Facebook, Twitter, and WhatsApp to promote brand name; and FINANCIAL GOALS AND OBJECTIVES: Key financial goals and objectives are presented hereunder: ❖ Adopt Accounting/Bookkeeping software for sublime and error free book-keeping; ❖ Compliance with mandatory regulatory and auditing requirements; ❖ Avoid unnecessary expenditures. Promote the concept of Intelligent spending by careful assessment of business needs and wants; ❖ Become a diversified investor in future to ensure Burst’s going concern’s ability; and ❖ Present accounting records to state officials for assessment of correct value of tax. GROWTH GOALS AND OBJECTIVES: Key growth goals and objectives are presented below: ❖ Perfection in taste, competitive pricing, diversified flavor options; and everything contributing towards building a brand to which customer can relate to; ❖ The objective to establish a national brand in Australian market within 5 years of initiation of operations; ❖ Strive to offer our customers efficient and most flexible services in the entire class of business; and -8- FY 2020 BUSINESS PLAN BURST – Pork Crackling FY 2020 RST’s BUSINESS PHILOSOPHY Burst is based on the philosophy that a customer-centric pork crackling with traditional taste and texture should be manufactured and supplied all across Australia. Top quality, mouthwatering taste and supreme flavors shall be catered. -9- BUSINESS PLAN BURST – Pork Crackling FY 2020 BUSINESS OPPORTUNITY PROBLEM WORTH SOLVING For startups, the biggest edge is to solve the problems which are being faced by existing business. Once they do that, then they have the capability to survive in long term. If we assess the pork crackling currently being served in our markets, we can say that these following problems are associated with them: ❖ Excessive fat ❖ Packing Design is not eye-catching – one of the biggest problems is that the packing design should be attractive and interactive. It should be designed in a way that it should be able to connect with customer’s needs. Unfortunately, people have failed to understand its’ importance and such is contributing towards the potential loss of customers. ❖ Traditional Flavor – Flavor is the biggest concern when it comes to snacks. If we assess the products being served currently in all across Australia, they lack the pure and traditional taste. This is something which presented us with the opportunity to get into the market. ❖ Distribution channels – Distribution channels is also an important factor. Such issue is one of the major issues. Despite having a good quality product, if you don’t’ have proper delivery system, your business will never flourish. ❖ Point of Sales – Point of sales (POS) is one of the concerns. Identifying those hotspots which will bring more consumer influx is quite hard. Sustainability in business is achieved once efficient point of sales are identified. - 10 - BUSINESS PLAN BURST – Pork Crackling FY 2020 OUR SOLUTION ❖ Burst has designed quite interactive and interactive packing design. If you look closely, we have used the color yellow and orange. Considering psychological perspective of such colors, both colors induce hunger which pushes the customer to buy the product. ❖ Taste will be our strongest selling point. The best recipe for manufacturing the crackling with traditional taste and color has been perfected over the period of 2 years. Given our experience in food industry of over 25 years, we know what makes the customer tickles. For maintaining the taste, color and texture of the crackling. ❖ The management has considered various spots where such product will be delivered. These spots mainly include well known bars, casinos and sport stadiums. Mega stores like 7Eleven are also being considered. The overarching idea is to be a wholesaler of the product and supply from Brisbane across all of Australia. - 11 - BUSINESS PLAN BURST – Pork Crackling FY 2020 OUR PRODUCT THE GAME-CHANGER For solution to above mentioned problems, we have gathered that Australian population is looking for a product with certain properties. These properties must include (but not limited to): • • • • The product should not have taste differences (from one pack to another); The product should be provided with consistent weight; The product should have traditional flavor and texture; and The design of the product i.e. its packaging should be attractive. To resolve such issues, we are entering the market with a pork crackling which will have all the abovementioned traits. Because it contains at minimum all the above-mentioned traits. The management has decided to start with only two flavors. One is “Original” and the other is “Spicy”. These are carefully selected flavors to cater the specific needs of majority of Australian taste buds. The Product Itself - 12 - BUSINESS PLAN BURST – Pork Crackling FY 2020 Nutrition Facts – Original Flavor The nutrition facts pertaining to Original Flavor are stated hereunder: Description Quantity Units Free Fatty Acid – Titratable Sulphur dioxide - Total Chloride Total Dietary Fiber Gluten Residue 1 Energy Protein (Dumas) Total Fat Monounsaturated Fatty Acids Polyunsaturated Fatty Acids Saturated Fatty Acid Trans Fatty Acids Carbohydrates Total sugars Sodium Moisture (Air drying) Ash <0.1 <10 0.8 <1.0 N/D- g/100g of fat mg/kg g/100 g g/100g mg/kg of Gluten kJ/100 g g/100g g/100 g g/100 g g/100 g g/100 g g/100 g g/100 g g/100 g mg/100g g/100g g/100 g Description Quantity Units Free Fatty Acid – Titratable Scoville Heat Units Sulphur dioxide - Total Chloride Total Dietary Fiber Gluten Residue 1 Energy Protein (Dumas) Total Fat Monounsaturated Fatty Acids Polyunsaturated Fatty Acids Saturated Fatty Acid Trans Fatty Acids Carbohydrates Total sugars Sodium Moisture (Air drying) Ash <0.1 <2000 <10 0.6 <1.0 N/D- g/100g of fat SHU mg/kg g/100 g g/100g mg/kg of Gluten kJ/100 g g/100g g/100 g g/100 g g/100 g g/100 g g/100 g g/100 g g/100 g mg/100g g/100g g/100 g Nutrition Facts – Spicy Flavor The nutrition facts related to Spicy Flavor are stated hereunder: - 13 - BUSINESS PLAN BURST – Pork Crackling FY 2020 MARKET ANALYSIS Major Players Across the Globe ❖ Evans Food Group Evans Food Group Ltd. is a global producer of both pork pellets and branded, private-label packaged pork rinds. Founded in 1947 as a pork rind venture in Saltillo, Mexico, the Chicago-based company has grown into the one of the largest Hispanic-owned businesses in the country and the world's largest producer of pork rinds. Evans provides privatelabel pork rinds to the world's largest snack food brands. • Operations: Chicago, Illinois • It has 4 brands: Macs, La Tonita, Porkies, and Bills ❖ Herr Foods A recognized leader in the snack food industry, Herr Foods Inc. is headquartered in Nottingham, PA. The family-owned-and-operated company began 65 years ago in Lancaster, Pa. It makes 340+ delicious snack products that are available in all 50 states and worldwide. • Operations: Nottingham, UK • Brand name: Herr’s Pork Rinds ❖ Rudolph Foods Pork rinds, pork skins, cracklings, chicharrons, bacon rinds -- this company has got your fix. Rudolph Foods is the world's largest producer of pork rinds and related snacks, producing more than 100 million pounds per year from plants in the US (Ohio, Georgia, Texas, and California) and Brazil. The company sells the pork treats under such brands as Rudolph's, Pepe's, Rudy's, Lee's Pig Skins, Smithfield Farms, Southern Recipe, and Grandpa John's 1987. • Operations: Ohio, US ❖ Bacon’s Heir Bacon’s Heir is reintroducing the world to the pork rind with our Pork Clouds and Pork Dust. Pork Clouds stand in sharp contrast to expectations of flavor and health. They contain slightly less fat than potato chips. Their protein content is equivalent to beef jerky. They contain no carbohydrates whatsoever, and are therefore gluten free naturally. Put together, this makes Pork Clouds an empty calorie free food - virtually all calories come from either olive oil or protein. Pork Dust was introduced next as an alternative to the traditional breadcrumb. It is are quite literally, pork rinds ground to the consistency - 14 - BUSINESS PLAN BURST – Pork Crackling FY 2020 of panko breadcrumbs. Pork Dust is a drop-in replacement for breadcrumbs in any recipe, replacing glutenous and empty carbohydrate calories with protein filled ones. • Operations: Atlanta, Georgia ❖ 4505 Meats 4505 Meats is a family owned company based in San Francisco, founded by chef Ryan Farr in January-'s legacy lies in whole animal utilization by way of butchery and sausage making. 4505 began in Farr's SF apartment with one product, the lighter-than-air Original Style Chicharrones, or “crispity clouds of porkaliciousness.” The launch of the 4505 Chicharron was then followed by the 4505 Bacon-Studded Hot Dog, and a full line of house made sausages. The business has only grown from there. 4505 has operated stands at Farmers’ Markets all over San Francisco, and remains a vendor at the Saturday Ferry Plaza Market. From- they ran a full-service whole animal butcher shop in the Mission District, where they sold responsibly and sustainably raised meat sourced from farms in Northern California. In 2013, they launched a restaurant, 4505 Burgers & BBQ, which serves burgers, 4505 Meats-style barbecue and more. 4505 is committed to bringing customers quality & delicious products at their Farmers Market stand, Restaurant, and specialty stores & bars nationwide. • - 15 - Operations: San Francisco, US BUSINESS PLAN BURST – Pork Crackling FY 2020 Key Market Drivers ❖ Quality Product Market can only be captured if a quality product is manufactured and supplied. If a business wants to grow, it should bare this in mind that only formula to remain sustainable in future is to provide quality product. It has been quite prominent that those who have maintained their quality, have generated bigger customer bases. Considering the brand names stated above, if you analyze their business model, you will witness that they serve the best in their region of operations. Delivering quality not only increase market share but also generate brand loyalty. ❖ Ketogenic Diet’s Major Ingredient The ketogenic diet is a very low-carb, high-fat diet that shares many similarities with the Atkins and low-carb diets. It involves drastically reducing carbohydrate intake and replacing it with fat. This reduction in carbs puts your body into a metabolic state called ketosis. When this happens, your body becomes incredibly efficient at burning fat for energy. It also turns fat into ketones in the liver, which can supply energy for the brain. Ketogenic diets can cause massive reductions in blood sugar and insulin levels. This, along with the increased ketones, has numerous health benefits. Since pork rinds contain high fat and zero carbs, it's the perfect snacking choice for those on the ketogenic diet. ❖ Disease-Free Product One of the biggest advantage Australia has is the production of disease-free pork and resultantly disease-free pork rinds, scratching, or crackling. This is the reason why Australia’s bread pork is in high demand in Asian markets. Even though higher market price might have to be paid by the Asian consumer, they still want to consume disease free products. ❖ Taste and Flavor Consistency is taste and flavor is the biggest brand identity which increase revenues and establishes goodwill in customer’s eyes. Consumer preference is the choice people make favoring any brand over their competitors. Numerous studies concentrate on how we make choices and what makes us prefer some things over the others. It appears that 90% of our choices are emotional or impulsive. Only some 10% are conscious decisions – these are the goods we buy repeatedly. Purchasing a product for the first time, we are most likely to be guided by its hype, brand popularity, or recommendations of other consumers. Conclusion on Market Market, hence all across the Australia and our chosen location is very strong for the crackling business. There is not only a business opportunity but also an investment opportunity as well. With strong industrial growth numbers at the back and people’s shifting attitude towards likeliness of cracklings, the market is sufficiently strong for us to build our business with our unique value proposition capture a major share of the market. - 16 - BUSINESS PLAN BURST – Pork Crackling - 17 - FY 2020 BUSINESS PLAN BURST – Pork Crackling FY 2020 COMPETITION ANALYSIS Our direct competition is largely with other pork crackling manufacturers and our indirect competition would be with other brands selling other type of snacks such as chips, crisps, and pops etc. Some of our major competitors in this category are: Competitor’s Name Pascal’s Pork Scratching Description of Product Pascal’s Pork Scratching are high protein, low carbs, premium ready to eat pork crackling, that is hand cut & slow cooked with no preservatives or any additives. It is golden brown in color and has crunchy and crispy taste. Brittle snack is sprinkled over it with salt to give it the best taste. Dan Murphy’s Huff & Puff Dan Murphy’s Huff & Puff are crispiest, crunchiest pork crackling. They are hand fried in Australia from real Australian pork rind. They are seasoned with sensational spices to give them their porky taste. These cracklings are available in 4 flavors i.e. Original Roast, Salt & Vinegar, Sweet & Sour and BBQ. Joy Food Joy Foods is an Australian owned business, making food for 25 years. Joy Foods is a manufacturer specializing in snack foods and breakfast cereal/ muesli products. They are serving their customers with low fat and high protein cracklings. High quality pork rind is used in their cracklings. A mix of supreme spices is their major ingredient. They are serving 6 flavors i.e. Original, Bacon, BBQ, Chili, Smokey Cheese and Spicy BBQ. - 18 - BUSINESS PLAN BURST – Pork Crackling Crackle & Co. FY 2020 Combined with high quality pork rind and naturally extracted spices, Crackle & Co. is serving the customers with light and tasty pork crackling. No preservatives or additives are used in its manufacturing. This is done only to serve the cracklings in their natural taste. Available in Sea Salt, Chili & Balsamic Vinegar flavors. J. Crackleton J. Crackleton is one of the premium pork crackling brands. Currently it is being served in 2 flavors i.e. Original & Paprika. These cracklings are low on fat and high in protein. For premium taste, ingredients of top-notch quality are used. Preservatives are not added at all to maintain the natural taste and aroma. - 19 - BUSINESS PLAN BURST – Pork Crackling FY 2020 Competitive Factors Competition is based on various factors. Such factors are necessary for a startup to understand to analyze its strategic position in industry. If those strategic factors are exploited intelligently, a new entrant is then capable to survive. Some of those important factors are stated hereunder: • Variety in products: Catering only single product is a good idea. But it limits your potential to generate extra profits. Therefore, it is always advised to cater more products. Sometimes a business doesn’t have the ability to produce more than one product. in that case, just like mobile companies do, try to introduce variants of the same phone so that more customers can be captured and market share can be increased. • Location: This is one of the major factors which contribute towards the competitive advantage. If your product is available at a location which is accessible for the normal consumer, then you will have your consumer’s attention. Be in reach is important for conducting business. • Packing & Design: Packing & Design of the product plays an important role. If you have a packing which captures customer’s curiosity and a design which attracts the customer, you will be able to sell your product a lot faster. • Customer Satisfaction: The biggest concern for the customer is that his money should be well spent. If your product is able to provide the best value for money, you’re a winner. You will see a boom in your revenues. Burst’s Competitive Advantage Keeping in view the factors stated above, Burst’s competitive advantage can be assessed by absorbing the factors stated hereunder: • Mr. James has selected the key ingredients for crackling himself. His past experience in food industry has made him mature enough to come up with the best of the recipe. The traditional taste and texture of the product is the key factor to the product; and • The packing and design of the crackling is interactive and customer-engaging. This will surely make the product eye-catching. - 20 - BUSINESS PLAN BURST – Pork Crackling FY 2020 SWOT ANALYSIS SWOT (Strength, Weakness, Opportunities & Threats) analysis is a framework used to evaluate a company’s competitive position and develop strategic planning. It assesses internal and external factors, as well as current and future potential, and is designed to facilitate a realistic, fact-based and data-driven look at the strengths and weaknesses of an organization. Below is a summary of SWOT analysis for Burst: S Strengths ❖ ❖ ❖ ❖ ❖ ❖ ❖ Easy availability of Resources; Access to distribution channels; Low cost of production; High brand value; High customer demand; Positive customer feedback; High quality raw materials and end product; ❖ Founder’s expertise in food industry; and ❖ Traditional taste and texture O Opportunities ❖ Product is currently in demand; ❖ Competitive pricing made it possible to generate more revenue; ❖ Mass production; ❖ Low research and development cost; ❖ Possibility to grow at global level; ❖ Massive demand due to exceptional taste; ❖ Creating job opportunities; and ❖ Use in ketogenic diet. - 21 - W Weaknesses ❖ High startup costs; ❖ Need of specialized equipment for production; ❖ Strong competition in local market; ❖ Change in customer demand; ❖ Being startup, risk of lack of funding ❖ The company is considered to be a new entrant; ❖ The idea can be limited; and ❖ Difficulty in expansion of project. T Threats ❖ Established direct competitors in local market; ❖ Older and indirect competitors in the market as well; ❖ Massive competition on global scale; ❖ COVID-19 has decreased the purchasing power of people. So, it is a possibility that placing mass orders would be difficult for suppliers; and ❖ Extensive government laws to abide by BUSINESS PLAN BURST – Pork Crackling FY 2020 if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strengths, leverage on the opportunities that will be available to us, mitigate our risks and be well-equipped to confront our threats. SWOT Analysis’ Conclusion Burst’s success lies essentially in the following: • • • Low cost of production and higher customer demand lead by positive customer feedback is the reason why Burst will be a respectable rival in the industry; Using higher quality raw material resulting into provision of traditional taste and texture will be our USP. Access to efficient distribution channels, and need for specialized equipment for production of goods would impact Burst’s ability to tap new market segments; Essentially, Burst looks forward to evolving and growing by taking a step-up towards a long-term and sustainable business model by providing a premium experience to its customers. We are geared to adopt the approach of taking the best out of opportunities & strengths while also utilizing them to address the threats & weaknesses. - 22 - BUSINESS PLAN BURST – Pork Crackling FY 2020 OPERATIONAL PLAN KEY MANAGEMENT Key management and personnel details have been mentioned below. The following are envisaged to be implemented and operated based on actual circumstances at the time of implementation. Our operational details remain flexible and adjustable based on stakeholder requirements and changes. Founder & Management Team Burst, although a new player in the crackling market, has behind its success the professional and leadership experience of our founder which shall be leveraged for our Company’s development and operational success. For initial 2 years, the BOD will only consist of 1 member who will be the founder himself. In coming 3-5 years, depending upon the need, the BOD will consist of 1 Chief Executive Officer (CEO). The BOD will be appointed to guide, advise and counsel the CEO and other executives and share their experience and expertise to assist with the growth and profitability of the Company. Moreover, the group will provide fresh ideas and unique perspectives to advance the mission and expand the reach of the Company. COMPANY STRUCTURE Envisaged Company’s Structure (1-2 years) Founder, Director & CEO Mr. James Ly SalesExecutive Operational Hiring - 23 - Purchase Executive Operational Hiring Accounts Executive Operational Hiring Prduction Incharge Operational Hiring BUSINESS PLAN BURST – Pork Crackling FY 2020 Expected Company’s Structure (3-5 years) Founder Mr. James Ly Director Operational Hiring Sales Executive Operational Hiring - 24 - Purchase Executive Operational Hiring CEO Opertaional Hiring Accounts Executive Operational Hiring Executive # 4 Operational Hiring BUSINESS PLAN BURST – Pork Crackling FY 2020 FINANCIAL HIGHLIGHTS The financial highlights will bring into light some of the prominent financial aspects of Burst. This will not only help the investor but also the user of this financial plan to consider the financial strategies which should be adopted and kept in check over the period of venture’s existence. Major aspects of the financial plan include: ❖ Projected Income Statement; and ❖ Projected Balance Sheet Statement. Assumptions Certain assumptions, were considered before making projections. It is to be highlighted that such assumptions, if changed, will impact the projections, but not drastically. The set of assumptions is presented below: 1. Revenue Years- Amount (AUD) 100,000 150,000 200,000 250,000 300,000 Sources We have assumed the growth rates as constant where no data for the respective year was available. 2. Inflation Rate Years- Latin American 1.61% 1.61% 1.61% 1.61% 1.61% Sources *Averaged 5 years' available rate is 1.61 3. Depreciation rate for, Office equipment is 10% on Straight Line Basis. 4. It is assumed that there will be no impairment on any fixed asset over the next 5 years. 5. Insurance expense has been incurred from the first year of business which includes insurance of employs & assets 6. It is assumed that at least 40% of the sales are credit sales and credit sales 7. Inflation percentages has been used for the estimation of future expenses which is 1.61% 8. Sales growth would be 25% each year assumed as per initial information provided. 9. Per unit retail price of 1 item would be 9 per unit and cost of 1 unit would be 3 per unit." - 25 - BUSINESS PLAN BURST – Pork Crackling Statement of Profit & Loss - 26 - FY 2020 BUSINESS PLAN BURST – Pork Crackling FY 2020 Statement of Financial Position Burst - Pork Crackling Statement of Financial Position / Balance Sheet Years : 2021, 2022, 2023, 2024 & 2025 All figures are in AUD 2021 Description 2022 2023 2024 2025 Assets Fixed (Long-term) assets Property and equipment • Office equipments 3,690 3,280 2,870 2,460 2,050 Total long term assets 3,690 3,280 2,870 2,460 2,050 360,000 240,000 600,000 603,690 370,800 482,618 853,418 856,698 752,724 369,747 1,122,471 1,125,341 775,306 632,409 1,407,714 1,410,174 787,107 922,613 1,709,720 1,711,770 2021 ($) 2022 ($) 2023 ($) 2024 ($) 337,500 236,190 573,690 337,500 488,715 826,215 337,500 758,214 1,095,714 337,500 1,045,347 1,382,847 Current assets Trade receivables Cash and bank balances Total current assets Total assets Description 2025 ($) Share capital and Reserves Equity and Liabilities Share capital Accumulated profits Total equity Liabilities Long term liabilities Long term liabilities Total long term liabilities - - - - - Current liabilities Trade creditors Total current liabilities Total liabilities Total equity and liabilities - 27 - 337,500 1,350,795 1,688,295 30,000 30,000 30,000 603,690 30,483 30,483 30,483 856,698 29,627 29,627 29,627 1,125,341 27,328 27,328 27,328 1,410,174 23,475 23,475 23,475 1,711,770