A Business Plan

A Business Plan

For starting

Chocolate Company

CERTIFICATE OF AUTHENTICITY

This is to certify that Aneesh Babbar bearing Roll Number__________________ is a student of Class XII-F.

He has successfully completed his project under my guidance and supervision towards the fulfillment of the practical examination in Entrepreneurship conducted by the Central Board of Secondary Education for the academic year 2014-15.

Ms Jyoti

Teacher's Signature:ACKNOWLEDGEMENT

I , Aneesh Babbar, do hereby declare that this project is my original work and I would like to thank Ms Jyoti, my Entrepreneurship teacher, for her wholehearted support and guidance for making it possible to complete this project on time. I would also like to thank CBSE for giving us an opportunity to widen our knowledge base by introducing this topic of study and my school for giving us this subject option.

I would also like to thank my friends and family members for their kind support and guidance without which this project could not have been completed.

Aneesh Babbar

Class - XII - F

INDEX

S.NOPARTICULARS

1. Introduction to the Topic

Chocolate Farming

Chocolate

Types of Chocolates

History of Chocolate

2. Profile of the Organization

Our Product

Our U.S.P.

Logo

Label

Tagline

Packing

3.

4.

5.

6. Appendix

7. Teacher's Observations

CHOCOLATEChocolate is one of the most loved foods in the world. It's used in cake, fudge, cookies, ice cream, hot cocoa, and candy bars. It's eaten with nuts or raisins or any number of other things.

Butchocolateisn'tjust candy. Chocolate is used in cooking too. In Mexico, chocolate is an ingredient in mole sauce, which is often served with chicken. Chocolate-flavored chicken! Can you imagine that?

Andchocolateisn'tnaturally sweet. It's bitter. Sugar has to be added to make sweet treats out of pure chocolate.CHOCOLATE FARMING

Chocolateismadefrom cocoa beans. These beans are the seeds of the cacao, or cocoa, tree. Cacao trees grow in warm, tropical climates like those in South America, Central America, and Africa.

CHOCOLATE MANUFACTURINGChocolateismadebydrying and roasting the cocoa beans. The beans are ground and then crushed to release a liquid known as chocolate liquor. This bitter-tasting liquid contains a fat called cocoa butter. Cocoa butter is what makes chocolate so creamy and delicious.

Tomakepowderedcocoa, most of the cocoa butter is squeezed from the unsweetened chocolate liquid. The hard, dry cakes left behind are ground into a fine powder. When mixed with sugar, this powder can be used to make that hot cocoa you drink on a cold day.

Tomakethechocolate you eat, sugar and more cocoa butter are added to the unsweetened chocolate liquor. Other ingredients might also be added for flavor, including milk or vanilla.

TYPES OF CHOCOLATES

Therearemanywaysto eat chocolate, but just a few types of chocolate. Unsweetened chocolate is used for baking. Semisweet chocolate, also called dark chocolate, is often used in homemade cookies, cakes, and other treats. Milk chocolate is eaten in bars or used as a coating on candy.

Whitechocolateisatype of chocolate, too. It contains cocoa butter, but no other nonfat chocolate solids. It is used mainly as a candy coating.

HISTORY OF CHOCOLATE

Chocolatecameoriginally from the Americas. The ancient Maya Indians called cocoa beans the food of the gods. In1519,Spanishexplorer Hernan Cortes discovered a city built by the Aztec Indians in what is now Mexico. The Aztecs gave Cortes a special drink called chocolati, which meant warm liquid. It was the favorite drink of the Aztec king Montezuma.

CortesconqueredtheAztecs and carried cocoa beans back to Spain. There, chocolate became a favorite drink of the nobility, especially after sugar was added. Chocolate then spread throughout Europe and later the rest of the world.OUR VENTURE

We are starting a business of manufacturing chocolates. Name of the company is Yummy Chocolate and our products name will be Divine Chocolates. Our target market is whole India. The customers to whom our products will be supplied are retailers, wholesalers and traders in all states and union territories. The location of our manufacturing plant would be GIDC, Adipur.

We would be targeting the consumers of all age groups. The products that we would offer are:

Divine Plain Chocolate

Divine Milk Chocolate

Divine Fruit N Nut ChocolateVISION

Our vision is to be the leading manufacturer of chocolates all over India.

MISSION

We seek to produce high quality products at competitive price using modern technology to provide high satisfaction to the consumers.

OBJECTIVES

To manufacture and provide the customers with the quality products to the best interest of the customers.

To create Price competitive Products as part of the effect to increase the world access to high quality chocolates.

To ensure a hygiene & clean working environment as to continue to produce Safe & Tasty Products

To strive to Meet & Exceed Customer's Expectations so as to ensure a sustainable business relationship.

PRODUCT SELECTION

According to a recent study conducted by a major chocolate brand in India the major consumers of chocolates apart from kids are teenagers and people between the age of 15 - 35. Chocolates which were once considered expensive once have now become affordable by one and all. Most of the chocolate brands in India produce chocolates in different sizes that are priced according to their sizes. Chocolates like Diary Milk and Five Star can be got for just Rs 15.

Chocolates in India are slowly and steadily substituting the mithai or traditional Indian sweets. Due to the increasing levels of social consciousness people prefer gifting well wrapped chocolate packets rather than sweets on occasions and festivals. Taking advantage of this situation, the top chocolate brands in India are now concentrating on the packaging and are introducing well packaged chocolates for specific occasions.

OUR PRODUCT

PRODUCT RANGE

We would be targeting the consumers of all age groups. The products that we would offer are:

Divine Plain Chocolate

Divine Milk Chocolate

Divine Fruit N Nut ChocolateLOGO OF THE CHOCOLATE

Logo shows the feel of divineness of heaven in the chocolate

LABEL OF THE CHOCOLATEThe label is different for our varied range of every chocolate. It has its own background which represents its flavour. All the label show the content list with amount of carbohydrates, fats, proteins etc. with mfg date, expiry date, MRP and batch no. embossed on the label.

TAGLINE

THE COOLEST CHOCOLATE SWEET TO EAT

COMPETITIVE ADVANTAGE

We will manufacture and provide the customers with the quality products to the best interest of the customers.

We will be create a price competitive product as part of the effect to increase the world access to high quality chocolates.

It will be ensured that a hygiene & clean working environment be created and continue to produce Safe & Tasty Products

we will strive to Meet & Exceed Customer's Expectations so as to ensure a sustainable business relationship.

The core competencies on which our company would be competing are taste and quality of our chocolates. Our company would be a partnership firm. There would be 2 finance managers, 2 marketing managers, 1 accountant and 1 general manager as part of the organization.OUR U.S.P.

It is a premium soft centered chocolate product. Times Chocolates, which is the brand name for our chocolates are hygienically produced, and only naturally sourced ingredients are used. Besides, these chocolates are 100% vegetarian unlike some of the mass produced brands.

STARTUP

Start-up means the act or an instance of setting in operation or motion of a business enterprise. A business or undertaking that has recently begun operation or is going to start operations is called a startup

Essential to the startup effort is the creation of a business plan a detailed map of the new business to be created. A business plan forces consideration of the different startup costs for the business.

Underestimatingexpenseswill falsely increase expected netprofit, a situation that does not bode well for any small business owner.

Startup costs are the expenses incurred during the process of creating a new business. All businesses are different, and can require different types of startup costs. Online businesses have different needs thanbrick-and-mortars; Chocolate manufactures have different requirements than any other business does.

STARTUP COSTSStart-up Expenses

Legal & Accounting60,000

Stationery etc.10,000

Brochures10,000

Consultantion1,00,000

Marketing & Merchandising5,00,000

Office Supplies15,000

Expensed Equipment40,000

Research and Development15,000

Web Page Development50,000

Machines8,00,000

Plant9,50,000

Plot10,00,000

Labour2,50,000

Unknown Expenses5,00,000

TOTAL START-UP EXPENSES43,00,000STARTUP FUNDING

Above startup expenses will be met by the capital investment of both partners and rest will be financed by the State Bank Of India (SBI). Total capital investment by both partners will be 15% of the total investment i.e. 6,45,000 to be beared by both and rest will be financed by the bank @12% per annum interest

RISK ANALYSISBusiness risk refers to those uncertain events which may cause loss or reduce profit of a business firm.

Divine chocolate risk analysis

S. No. TYPE OF RISKPRECAUTIONS TO REDUCE THE RISK

1.Political risk

Change in taxation policy

Government stabilityAccording to the industrial practice either burden to be shifted on consumer or to be absorbed by the company

2.Economic risk

Inflation

Reduction in GDPTo launch cost effective chocolates

3.Social risk Change in taste and consumer preferenceTo introduce healthy chocolates as per consumer preference

4.Technological risk Introduction of new technologyTo increase expenditure in research and development

5.Ecological riskEnvironmental damageTo use eco friendly inputs.

6.Legal risk

Employment klaw

Taxation lawTo take regular advice from professionals.

BREAK-EVEN ANALYSISA break-even analysis table has been completed on the basis of average costs/prices. Our cost of goods is 50%. The table below shows our average monthly fixed costs, and the amount we need to sell per month to break-even.

Monthly Revenue Break-evenRs. 13,45,000

Assumptions:

Average Percent Variable Cost50%

Estimated Monthly Fixed CostRs. 6,72,400

PROJECTED PROFIT AND LOSSThe first year of operations will be spent developing sales and business relationships with key Distributors, Wholesalers and other companies. The sales goalfor Year One is conservative andrealistic.

We feel that doubling sales in Year Two is very attainable and necessary to fund marketing and personnel objectives. Net profits are reduced in Fiscal Year 20014 as staff members are added and marketing expenditures are increased. This strategy will allow us to attain attain the aggressive sales goal in Fiscal Year 2015.

PROFIT AND LOSS ACCOUNT

UnitsRupeesRupees

aSales 1,50,00011.3517,02,500

bCost Of Sales7.007,00,000

cGross Profit = a - b10,02,500

Fixed Expenses:

Salaries2,50,000

Rent1,00,000

Utilities50,000

Monthly Interest Only On The Loan That You Took50,000

Transport75,000

Miscellaneous1,00,000

dTotal Fixed Expenses ( Cash)6,25,000

eDepreciation (Non-Cash)80,000

fTotal Fixed Expenses

(Cash And Non-Cash)

= D + E7,05,000

gOperating Profit Or Loss

= C F2,97,500

hTaxes = Use 25% On Profits Only74,375

iNet Profit Or Net Loss

= G - H2,23,125

BIBLIOGRAPHYTEACHER'S OBSERVATIONS