Tea time, llc business plan
The facility presented an opportunity to invest in the non-alcoholic industry which is growing at a rapid rate. Therefore, we decided to invest in fruit tea which is a popular product that will attract a significant number of potential customers. The Company Tea Time, LLC will be a partnership business that will specialize in the production of fruit-based tea rich in electrolytes and minerals necessary for replenishment. Over recent years, there has been significant growth in a nutritious-sensitive population. The company aims to take advantage of this situation by positioning itself as the largest and reliable supplier of non-alcoholic beverage drink that can be used for body nourishment as well as refreshment purposes. The company will begin by providing all the five product lines.
Production will take place at the manufacturing warehouse. Energy efficient machinery would be used in all operations, and materials will be recycled. Supplies will be obtained from local farms. Target Market The target market includes young professionals both male and female aged between 24 to 64 years. The Future The estimated profit after five years is 2. 0 million. It aims to expand to three operation locations with approximately 42 employees. The expected market share in five years is 25%. Management President and founder, Daniel Thrasher, has a degree in business and previous experience in restaurant management. Total working capital-204, 000. Total use of funds is 265, 000. Company Description The new venture, which is a wholly owned family business, will operate in the market under the name Tea Time, LLC and will specialize in the production of fruit-based tea, which is rich in electrolytes and minerals necessary for replenishment.
The core ingredients in the end product will encompass tangerine, water, lime, and orange juice. The Company has decided to adopt the name as mentioned above to ensure the market identifies the brand as a useful commodity that can be used as a refreshing drink as well as for body nourishment since it contains adequate electrolytes. Through such a strategy, we believe we are in the right track towards achieving customer satisfaction, employee commitment, stakeholder collaboration, which are elements crucial for continued growth in the market. Further, the issue of sustainability is a priority and not a by the way, and as such, we will ensure our business operations observe the necessary approaches that facilitate such by incorporating policies and practices that guide the entire process.
Industry Analysis and Trends The non-alcoholic beverage industry has been registering unprecedented growth for the last few years, globally. Such dynamics are shaped by aspects such as changing lifestyles, population increase, and rising disposable income. With the rising concerns on vast cases of obesity and health awareness, the market is postulated to record more growth, and the same time document a decrease in the demand for carbonated drinks. With the use of nontraditional marketing and sales routes like word-of-mouth, online stores and promotions through social media, such start-ups earn a competitive edge in the market. Tea Time, LLC being a new entity strives to leverage the growing demand in non-alcoholic drinks to become a giant player. Target market The food and beverage industry segmentation gain traction through product type, nature, price range, flavor, sales channel, packaging, and regions.
The implication is that all the products within the beverage category can be perceived as an indirect competitor. Tea Time LLC will focus on the specific brand in the market, but complement it with different flavors. The company will pursue image differentiation through customer service and quality product. Through approaches such as advertisements and a conducive atmosphere present at all physical outlets where consumers experience the business. In achieving this end, the brand would strive to stand out as the best choice for those looking for a healthy and instant replenishment. Using such an analogy, the audience will recognize the brand with ease because it communicates a unique element different from competitors (Camilleri, 2017). The company acknowledges that such a strategy will not be easy; hence, it plans to stage a continuous and ongoing communication of the brand's value proposition in an effective and meaningful manner.
On the other hand, external benchmarking will allow Tea Time LLC to find out the strategy the competitors are utilizing to remain afloat, and in the event, incorporate any missing links in its operations, but do so within its resource capabilities (Elahi, 2013). Being watchful of changing market trends from the customer and competitor point of view would help the firm to overcome the competition risk. Product risk With several processes involved in the production of the final commodity and package it in a manner that customers appreciate in the market, Tea Time faces a product risk. Such issues emanate from the possibility of the product failing to capture the anticipated response from the target market, leading to low sales and subsequent closure of the firm.
Once the firm cannot breakeven for the first years in the market, it follows that losses will be recorded, which will lead the firm to deep debts. Further, since the entity is a family venture, not so many investors will be interested in investing their hard-earned cash in such a company (Atherton, 2012). As much as the firm has financed most of the principal areas of the business, it aims to keep debt at a bare minimum to limit the possibility of legal tussles in case things do not work well as planned. However, such an argument does not imply that the business would not consider borrowing money only that the move will come to perspective when all other avenues have been fully exploited.
Marketing Plan & Sales Strategy The heightened competition in the market calls for a robust marketing and sales approach that will secure the company an edge over its rivals. The physical outlets at Alabama notwithstanding, the company will employ technological methods such as online marketing through social media, creating online communities and designing an app. Operations Plan As part of its operation plan, Tea Time LLC will employ additional staff members. Such individuals will help with the day to day running of the company activities. All departments in the institution will be coordinated in a manner that facilitates the seamless flow of communication. Tea Time will rent its facilities, a 10,000 square foot warehouse for the administrative office and production. The production equipment owned by the company consists of two beverage filling machines, two Accutek AccuSnap Capper Bottling machines.
Proper management of employee will help in talent retention, which is critical towards ensuring consistency in production and incremental improvement of product features and quality. The firm will opt to purchase equipment's to assist in the production process, which will be better since it will help reduce the cost of production in the long run. Because Tea Time LLC has full control of the production line, any technical hitches will be solved with ease and ensure business returns to normalcy the soonest possible, which avoids unnecessary delays associated with the leasing of equipment. Further, Tea Time LLC will incorporate technology to ensure all its operation respond to market dynamics in real time. With such an approach, the company will avoid spoilage, late delivery, and missed opportunities in the market, to name a few (NexTec, 2018).
Technology will come in handy to help Tea Time LLC management and staff to make informed business decisions. All departments, ranging from marketing, inventory, production, human resource, and supply chain will be interlinked through a Customer Relations model to ensure they react to customer needs real time. An inventory software will be critical towards monitoring of expiration, and inventory turns, maintaining stock at optimal levels, forecasting of sales, reduce spoilage and minimize the risks associated with cross-contamination, warehouse management and optimization of shelf life. The firm will collaborate with industry experts to select appropriate inventory control solutions to facilitate forecasting, boost business performance, improve flexibility and decrease waste, among others. Challenges of overstocking, spoilage and cross-contamination are typical problems that when not well managed can adversely impact on the companies bottom-line (Mulky, 2013).
Mr. Job will ensure we partner with experts in the field of technology to stay updated of new developments. As the business grows, we can then hire additional people to maintain a high tech development. As the business expands, additional tech employees will be added to the team. They must be fully capable in using the software system in a productive manner. Clear communication will be a key component to management structure. Oliver Pence will be the most senior member of the management team. Doctor Pence graduated from Leicester University with several advanced degrees (Masters and Doctorate in Economics). In his active career life, Pence has worked as a senior member of the management team, with most of his focus being in procurement and supply chain.
In his capacity, Pence will run the business during weekend hours while Susan Pence will assist with the business operations during the weekends. Embracing diversity and teamwork With the understanding that the success of the company operations is dependent on human capital, Tea Time LLC will promote the concept of diversity and strong teams. Our teams will comprise of employees from different ethnic backgrounds that will be reflective of the rich mosaic of the communities we serve. Such an approach would ensure no community feels discriminated, creating an environment for mutual co-operation where such societies can identify with company products. All staff members would be offered the platform to bring their full selves to work and leverage the available opportunities to succeed equally.
The company would embrace, value and respect varied opinions that arise from individual differences. Investing in sustainability Through all our branches across Alabama, Tea Time LLC understands the impact its business has on the environment. The company strives to be as efficient as possible in its use of earth materials and quantifies the consumption and waste it produces annually to ensure it remains a champion and mindful steward. In such a case, the company through the project Green Committee will set goals, track sustainability metrics, employ advanced technology to foster an eco-friendly mindset. For example, the company will work with relevant authorities to incorporate Leadership in Energy and Environmental Design principles in every construction project while at the same time enhancing a recycling program.
The firm will use LED lights throughout all its offices. However, packaging has its shortcomings because it uses finite resources during the conception stage and later generates waste, which is a threat to the environment. In addressing this challenge, the firm will source its packaging materials from sustainable resources and create a second life for the plastics. In such a case, the company will use a circular model; the waste materials will be converted to a resource. Such a move calls for different thinking away from the traditional approaches, which embraces collaboration, knowledge sharing, and partnerships with sectors and organizations harboring similar mindset. Tea Time anticipates creating a packaging approach that respects the future of people, nature, and business by changing its interaction with resources (Danone, 2017).
However, drinking too much of a beverage containing such elements is as equally harmful as having too few electrolytes (Roberts, 2017). Therefore, taking too much of Tea Time can hurt the body as highlighted below. Hypernatremia This condition arises from the accumulation of too much sodium in the bloodstream. With extremely high levels of the element, a person will develop symptoms like dizziness when shifting from one place to another, diarrhea and vomiting. Hyperkalemia Potassium works hand in hand with sodium to facilitate the proper functioning of muscles. As a word of advice, consumers would be advised to take plenty of water if they experience the above symptoms after taking our product, and if the symptoms persist, they should seek doctors’ advice with immediate effect.
Health impacts on certain segments of the population Children are an inactive segment of the community, and as such, the drink would not be recommended for them. With their litter to no activity, they do not need to replace ay electrolytes, which makes such beverage risky for their health. Plans to target and reach appropriate market segments In the advertisement strategy, Tea Time LLC would strive to create messages directed to the general population, and more specifically to athletes and heavy task workers who need lose too much energy and electrolytes to sweat; thus, calling for daily replenishment. The targeting messages, as well as the packaging container, will carry a warning message which highlights that the drink is not recommended for children.
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