Several months ago, I wrote an article that showed why it was profitable to
start producing natural fruit juices. Following several reactions to this
article, I come back with some useful details for anyone who wants to start
producing several thousand bottles per year. For this article, I will take a
more practical approach by giving you the elements to include in your
reflection to build your business plan. But in build your juice bar business plan you
should give first priority to qualities and marketing.
To launch
your business, always think about the problem to be solved
I come back to the problem to be solved in the famous article on the
opportunity to launch into the production of natural fruits in Cameroon. You
can choose this solution for different reasons:
·
You are truly
committed to good nutrition and health;
·
You want to
promote local products;
·
You would
like to suggest alternatives to soda;
·
You take
advantage of an opportunity;
·
You test
because you've seen others do it.
In all cases, and especially the last, you should start with an artisanal
production to gauge your ability to develop this project, to build a reliable
and profitable network of suppliers, distributors, and customers, to create a
strong brand and trust. Many initiatives remain unknown to the general public
because do not know how to communicate.
The business model of an agro-industrial company specializing in the
production of natural fruit juices
Defining your business model, to clarify is to say how you expect to make
your business profitable. Or say what you are going to sell, how, and with what
distinctive element will become a competitive advantage. It should stand out
perfectly in your business pitch, the one you use in front of investors or your
banker. In your business plan, it should be easily found because, for a
company, it is still the main point.
1- The types
of natural fruit juices with a long shelf life
Make a difference because there is a world between the two offers: fruit
juices to keep and juices to drink on the spot. They are two distinct solutions
that meet different needs and address different distribution networks. There
are three types of natural fruit juices with a long shelf life:
Pure juices: They are rarer
in the offer of natural juices with a long shelf life in Cameroon. Pure juices
are pressed or have gone through juice extractors, which will remove the
precious liquid from the pulp. If you want to draw a parallel with well-known
brands, we can, for example, talk about Joker.
2- The method
of preserving natural fruit juices
To stay natural or even compete for an organic product label, you must use
natural preservatives. There are two: sugar and lemon. You can imagine that the
sugar will not be this bleached industrial product but a product with little
processing and no chemical influence coming from a laboratory. Knowing that the
laboratory is here associated with research aimed at artificially recreating
compounds and flavors.
The key elements of a business plan for
the production of fruit juices with a long shelf life
You have several levels of assessment to complete, and each of its parts
has its costs.
1-The
marketing plan
Often overlooked, if not ignored, the marketing plan is the result of your
prior market research. It saves you from making some unnecessary investments by
answering your primary question about the existence of a market, the
opportunities, and threats, as well as the key skills and competitive
advantages you need to develop to get started and survive. You will have to
study: current consumers and non-consumers (absolute and relative),
competitors, the level of negotiation and intervention of the different actors
in the proper deployment of your offer.
2- The
business plan
It reviews the characteristics considered or tested for your offer. What
exactly do you intend to sell, under what conditions, and over what extent of
the territory. Your progress objectives can also be expressed at this level,
even if the calculations which justify it are found in the appendix or the
financial part of your business plan.
·
What is the
targeted sector?
·
What fruits
will you get started with?
·
Who are your
suppliers?
·
What is your
pricing strategy?
3- The
technical plan
It is mainly defined by your production objectives, market coverage, the
requirements of your target (sale on the territory or export), environmental
and health standards, the types of products and fruits, your budget.
For industrial production, you have machines with different levels of
efficiency and different levels of human intervention. I could not say what
your inclination is, so depending on your type of product, the type of material
you would need is in bulk. If you cannot have everything, contact providers
with the corresponding budget, as this cost will be included in the final sale
price.
·
Fruit
extractors
·
Industrial
crushers
·
The drying
system
·
Recovery and
storage equipment at different processing levels.
4- The financial
plan
You have to answer many questions on this part. The most important part is
your investor's eyes, the bank, the micro-finance, and perhaps even the
tontine, which will support you in this project.
How is your selling price structured: You must identify your cost price to
which a margin will be applied to give the selling price? And your margin does
not fall from the sky. She answers many questions to ensure profitability.
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