Prodieta Business Plan

Title: Prodieta Ltd.
Submitted to: Ms. Maura O’Connell, Marketing, NUI, Galway
Dr. Rachel Hilliard, Management, NUI, Galway
Ms. Mary Cosgrove, Accountancy & Finance, NUI, Galway
Course: MG529: Introduction to Business
Submission Date: 20th November 2014
Programme: Postgraduate Diploma in Applied Microbiology
Group Members: Karen Duffy (Student No.10009841)
Kevin O’Dowd (Student No. 09535489)
Francis Higgins (Student No. 09542639)
Chyrl Coen (Student No. 09823549)

Statement of Authenthicity
We have read the University’s code of practice on plagiarism. We hereby certify this
material, which we submit for assessment on the programme of study leading to the award of
Postgraduate Diploma in Applied Microbiology is entirely our own work and has not been
taken from the work of others, except to the extent that such work has been appropriately
cited and acknowledged within the text of our work. Moreover, we recognize that as a group,
we are individually and jointly responsible for the submission of this project.
Name: Karen Duffy
Signature: ____________________________
Date: 20 November 2014
Name: Kevin O’Dowd
Signature: ____________________________
Name: Francis Higgins
Signature: ____________________________
Name: Chyrl Coen
Signature :____________________________

Acknowledgements
We would like to extend a great thanks to our course directors: Dr Cyril Carroll, Dr Ger
Fleming and Michael Coughlan, for their guidance during our undertaking of this project. We
would also like to thank our fellow course mates for their help and support during this
project.

EXECUTIVE SUMMARY
Prodieta Ltd. is a small Irish start-up company that manufactures and sells probiotic yogurt
drinks throughout Ireland with the potential to eventually export internationally. Prodieta Ltd.
was established by a group of students undertaking a postgraduate course in Applied
Microbiology in the National University of Ireland, Galway. The idea behind Prodieta Ltd.
came from research recently published in August 2014. It stated that the bacteria present in
the human intestines were contributing to cravings for particular types of foods, containing
sugars and fats. The research also suggested that these bacterial species present in the human
intestines can also be responsible for excess consumption of foods. They produce compounds
which are picked up by our nervous system as chemical signals. These chemical signals can
cause the brain to desire particular types of foods, such as chocolate and fizzy drinks. Our
product produces other compounds (e.g. tyrosine) which increases the feel good hormone
dopamine, thus reducing the cravings for food. This product will be sold as a yogurt drink in
100ml biodegradable plastic bottles, in packs of four and eight. The price of our product is
€1.80 for a pack of four and €3.50 for a pack of 8. Thus, the consumption of this product on a
daily basis has the potential to reduce cravings with an added value of weight loss, as a part
of a balanced dietary intake and exercise.
Initially, we aim to target 10% of the Irish population of men and women between the ages of
20-65. This company intends initially to target Irish consumers, but we plan on exporting to
the UK and Europe after 3 years. Based on primary research, which included a marketing
survey, we found that there is great interest in this product. The uniqueness and many
beneficial properties of our product are what appeal to our consumers and what gives us an
advantage over our competitors. Prodieta Ltd. will be the only producers of a probiotic drink
that reduces cravings. We will face some challenges in our effort to break into the yogurt
market. These include; acquiring adequate finances to launch the product, significant
advertising costs to reach a national audience and poaching customers already loyal to other
brands.
To launch our business we will require a High Potential Start-up (HPSU) grant from
Enterprise Ireland of €50,000, and a long-term business loan from Bank of Ireland for
€80,000. This will be adequate funding to begin our business venture.

SECTION 1 – CONTACT DETAILS
PromoterDetails:
Name 1 & Team Lead: KevinO’Dowd
Position in the Enterprise: Finance Director
Faculty & Year Postgraduate Diplomain
Microbiology 2014-2015
Email: k.odowd2@nuigalway.ie
Name 2: KarenDuffy
Position in the Enterprise: QualityDirector
Microbiology2014-15
Email: k.duffey1@nuigalway.ie
Name 3: FrancisHiggins
Position in the Enterprise: ProductionDirector
Faculty & Year: Postgraduate Diplomain
Microbiology2014-2015
Email: f.higgins3@nuigalway.ie
Name 4: Chyrl Coen
Position in the Enterprise: SalesandMarketing
Director
Microbiology2014-2015
Email: c.coen2@nuigalway.ie
SECTION 2- PRODUCT/SERVICE AND MARKETING:
Business Overview:
Prodieta Ltd. is an Irish company that is based in Unit 5 Addley Park, Liosban Industrial
Estate, Galway City. It is a small indigenous start-up business which manufactures probiotic
yogurt drinks. Prodieta is a probiotic yogurt drink that contains live cultures of
microorganisms. It aids in reducing cravings for particular types of foods, such as sugars and
fat. It will utilise a cocktail of bacterial cultures that each benefit the consumer individually.
Prodieta Ltd. differentiates itself from other probiotic yogurt drinks in the market, such as
Actimel and Yakult, through its unique effect. It is novel in its ability to stifle food cravings,
which in turns helps with weight loss as well as being beneficial to the immune system. We
offer far more benefits to the consumer than our competitors. Prodieta’s key resource is its
unique strains of bacteria that reduce cravings and cannot be imitated.
We chose our premises as it has ample space, affordable rent and access to the Headford
Road, Tuam Road and Dublin Road. Prodieta Ltd.’s key partner is Pallas Foods who will
distribute our refrigerated product to various retailers as part of our distribution business
model. Our key suppliers are Alibaba.com who will provide the majority of our production
equipment, including our bottles and customized labels. Prodieta’s key activities will involve

the production and bottling of the probiotic drink, and the marketing of the product to our
customer base. We intend to establish relationships with customers through media campaigns
including radio advertisements, radio competitions, as well as social media and in local print
media. Our most important customers are females. It is likely that they will buy the product
for themselves but also for their families.
We aim to establish our customer base by selling our product cheaper than our competitors..
In our first year we will grow a large customer base and establish a strong company that will
compete with the leading competitors in the Irish yogurt market. We will sell our product to a
larger number of smaller stores locally instead of the larger chain retailers (which may be
initially cost prohibitive). Prodieta Ltd. have currently identified a significant niche in the
yogurt market, through extensive market research, and have a definitive product concept.
We intend on funding our start-up through a long-term business loan of €80,000 from Bank
of Ireland. We will also be applying for a High Potential Start-up (HPSU) grant from
Enterprise Ireland of €50,000. Prodieta Ltd. aim to purchase equipment for the manufacture
of its yogurt drink using the secured funding in January 2015, and aim to have initial sales
revenue by February 2015.
The MarketOpportunity:
There has been a stigma surrounding the various ‘miracle diet’ products that have been
concocted throughout the years, due to the lack of evidence suggesting their efficacy (Egras
et al, 2011). Consumers will always be swayed to try these quick fix weight loss products due
to their supposed validity and convenience and the hope for a fast solution to a problem that
has plagued many men and women for generations. Our product is based on new research
that shows our cravings are heavily influenced by our gut microbiome (Alcock et al. 2014).
The gut microbiome can be loosely defined as those bacteria (either good or bad) that are
living in our intestine. Obesity is a medical condition in which the body has considerable
excess fat (Haslam, D, 2005). It is a major problem globally and leads to many diseases such
as heart disease, cancer, liver problems, high cholesterol and Type 2 diabetes to name but a
few. Obesity is the result of the continuous consumption of large amounts of food energy,
along with the lack of physical activity (Duncan et al, 2008). It is the leading cause of death
in the world that can be prevented, with between 120,000 – 365,000 deaths per year as a
result (Barness et al, 2006). The rate of obesity in adults and children has been shown to be
increasing every year. Our product could be a major development in the battle against the
problem of obesity for our generation.
We have three main competitors which are Actimel, Yakult, and Irish yogurts. These are
large well established companies that sell products throughout Ireland. They do not however,
have a product on the market which has the potential to reduce the cravings for foodstuffs.
They focus mainly on boosting the immune system, and aiding digestion. We have envisaged
that these competitors will attempt to copy our product and thus out compete us from the
market. To this end we have put in place a protocol during the course of our manufacturing
process which will make it practically impossible for these competitors to imitate our
product.

MarketSolution:
Our product is a probiotic yogurt drink that contains a unique cocktail of eight bacterial
species. The yogurt contains two strains of the yogurt-making bacteria Lactobacillus brevis;
IOEB 9809 and ATCC 367, (Moreno-Arribas and Lonvaud-Funel, 1999) that utilise tyramine
(which we introduce to our cultures from banana extract) to produce tyrosine. Tyrosine is an
essential amino acid that gets converted to dopamine, which is an appetite suppressor and
also a feel good hormone. (Daubner and Wang, 2011). A cocktail of six other strains are
added which include L.acidophilus, L.Salivarius, L Plantarum, L Rhamnosus, B Lactis and B
Bifidum (Custom Probiotics Inc, 2014). Each of these strains have many properties that are
beneficial to the consumer. These include aiding digestion, boosting immune system,
preventing food cravings and aiding with weight loss.
The two flavours we will produce will be strawberry and vanilla, as these were the most
popular flavour choices on our market research survey. We are going to sell our product in
packets of four and eight. We will sell the four pack for a price of €1.80, and we will sell the
eight pack for €3.50. In our market survey (Appendix A). We asked people would they pay
these prices for our product and the results showed the majority of the people thought our
price range was ideal. These prices are cheaper than our competitors (Appendix C).
Future Plans:
We will build on our flagship product and develop a range of new products based on the
same scientific research which launched our company. This is essential to grow our brand
and allow the possibility of international distribution. Future products might include yogurt
pots and frozen yogurts. We will launch new flavours for our yogurt drink, such as raspberry,
and peach (as suggested by our market survey).
We aim to expand internationally in the future. There is a niche in the market for our yogurt
drink, as no other yogurts have been previously developed to fight food cravings. This,
coupled with the size of the market, suggests the potential for exporting beyond Ireland into
Europe, USA and more. We may do this ourselves, or possibly through licencing out our
product to other international companies and collecting royalties.
MarketResearch:
We carried out our primary market research through an online customer survey (Appendix
AWe also performed SWOT analysis of our three main competitors (Actimel, Yakult and
Irish Yogurt) and ourselves. (Competition section & Appendix A)
From our market research, we determined many key elements. The natural health segment
includes products such as natural yogurt, organic and probiotic yogurts and yogurt drink. This
segment accounts for 25% of the Irish yogurt market. In the diet segment, the consumers of
these products look for products that contain low fat, or fat free. These include weight
watchers yogurts. This segment accounts for 13% of the market. Yogurts targeted at the
children market account for 21% of the overall sales. Yogurt drinks (including Yop)
constitute 5% of the market. Yogurt Desserts account for 11% of the market. Full taste

yogurts account for 10%, these include Müller Fruit Corners. We will be marketing our
product as a natural healthy product, a diet product and also a yogurt drink. Thus, we will be
occupying multiple markets (Business 2000, 2012).
Customers:
According to our online survey our main customers are females (Aged 18-29) followed by
females (30+). Males (Aged 18-29) are the third highest market. Of 100 people surveyed, 90
were prepared to buy the product. Our customers are predominantly active (exercising 2+
times a week) and many said they have trouble losing weight/ food cravings.
Competitors:
Competitor Strengths Weaknesses
Danone (Actimel)
(probiotic yogurt drink &
edible yogurts)
 Well-known, global product
 Strong, highly skilled workforce
 Loyal customers
 Reputable products
 Claims to boost immune system
 Well-developed brand
 Little scientific evidence that the
product boosts the immune system.
Yakult
(probiotic yogurt drinks
company)
 Well-known brand
 Consumed around the world
 Aids digestion
 Large company
 Their regular probiotic drink
contains very high sugar content
(higher than level defined by UK
standards agency as high)
 May make product less appealing to
health conscious individuals/
families
Irish Yogurt
(homegrown yogurt
company)
 120 employees
 50 million tubs per year
 Well-known
 Various flavours
 Nowsold in UK
 Various types including diet options
 Also sells range ofprobiotic yogurts
 Large market
 Many competitors
Promotion:
Promotional method How When Cost
 Launch date  To coincide with the
most depressing Blue
Monday of the year.
Our yogurt, by
stimulating the happy
hormone, should give a
feel-good factor
 19th
January
2015
 0

 Radio competition  Galway Bay FM
provides a package to
run a competition every
morning of a week
coming to an end on the
Friday.
 Feb Year 1
 July Year 2
 June Year 3
 €500 – package cost
 5 1-month supplies ( 4 8-
packs) for winner ofeach
day
 €50 euro voucher for
raffle draw winner on the
Friday
 Pallas foods sample
merchandising
 Pallas Foods offer this
merchandising service
as part of their fee.
 April Year 1
 March Year 2
 October Year 3
 Included in 15% cost-of-
sales deal with Palace
Foods
Place/channelsofdistribution:
Distribution Strategy:
Distribution is a huge challenge for small food and drink producers in developing a business.
To sustain a competitive business advantage, distribution must be recognised as a key part of
an integrated and well managed supply chain encompassing all stages of the process from
production right through to the end consumer (Root, 2014). Due to our lack of expertise in
this area we decided to work with an experienced distributer who possesses the expertise and
knowledge to bring our product to the consumer and perhaps into Europe in future years.
Choosing a distributor:
We chose the distributor that best suited the needs of our product. We signed with Pallas
Foods to distribute our product nationwide at a cost of 15%. It was decided to work with this
distributor as they have many years’ experience in dealing with dairy products including
probiotic drinks, namely Actimel. We can sell more through a distributor than if we
attempted to distribute our product on our own (Bord Bia, 2014). Irish supermarkets, such as
Tesco Ireland and Dunnes Stores, continue to be the most commonly used methods of
distribution of probiotic drinks and account for the dominant share of the sales. It may prove
difficult to get our new product into these stores and this is something that will be developed
in later years (Bord Bia, 2008).
Pricing:
We will be using a market penetrating pricing strategy. We will set our prices lower than our
eventual market price and promote our product widely to attract new customers (Business
Hub, 2010). As we are entering a market that is already well-established it is in our best
interest to undercut our main competitors in terms of pricing. Although this will decrease our
initial short term profits it is required to increase our market share/ sales volume of our
product. We will still be able to cover our costs, and eventually make a profit.

Our prices:
As part of our market research survey we asked how customers felt about paying for our
products. These are the prices we decided on based on our consumers’ opinion on them (from
100 survey responses):
1. 4 pack for €1.80
 28% - Too expensive
 66% - Ideal
 6% - Cheap
See Appendix C for competitor pricing.
Marketing Activities:
TASKS DATE: Month/year
Market Analysis and Niche
Identification
September 2014
Brand Name Conception October 2014
Market Pricing Strategies and Tactics October 2014
Market Research Survey
Distribution Channel Research
November 2014
Distribution Channel Selection December 2014
Product Launch and Advertisement
Campaign (radio, print media, social
media)
January 2015~
(Advertisements periodically during business
years)
Radio Competitions February 2015
July 2016
June 2017
Free Sample Displays April 2015
March 2016
October 2017
Social Media Interactions Weekly
2. 8 pack for €3.50
 24% - Too expensive
 69% - Ideal
 7% - Cheap

SECTION 3 - INTELLECTUAL PROPERTY
We have not legally protected our product because we produce the yogurt in a certain way
that prevents our competitors identifying our two primary bacterial strains. These two
bacterial strains are added into the yogurt along with banana extract, which produces
tyrosine. The yogurt is then heated to specified temperatures to eliminate these bacterial
strains. The cocktail of six bacterial species is added to the yogurt at this point. Our
competitors will not be able to culture our two primary strains, but will be able to detect the
presence of tyrosine, and culture our six additional strains. This will protect our product
without the need for immediate patenting. We will be copywriting our brand name and
trademarking our logo.
SECTION 4 – PEOPLE
Initially we will have some employable positions available. On top of our four team members
we will have 6 additional staff members. We will also be using an external distributor for
deliveries for at least our first year in business. However as our business grows and
opportunities for expansion present themselves we will be looking to upscale our production
and thus, new job opportunities will become available to meet the increased demand in
labour. Further down the line, we hope to begin distributing to countries other than Ireland.
As well as a change in location/factory size this will also see a considerable increase in the
number of employees we will require such as production workers, cleaners, stock and loading
workers, personal delivery people, security etc.

SECTION 5 – FINANCE
The financial plan contains the projected accounts for Prodieta Ltd. for a three year period
which includes the Trial Balances, Purchases, Depreciation, Sales projections, workings for
accounts and the break-even analysis for each year.
Initial/start-up schedule of costs
Capital items
owned
Amount €
Premises
Raw Materials
Equipment/tools
Fixtures & fittings
Office equipment
Training
Security & safety
Consulting fees
Legal fees
15,324.72
176,142.40
24212.05
4320.00
1230.00
1380.00
3000.00
13440.00
14026.32
Total 253.075.49
Financing Plan:
Long term loan: € 80,000 loan, repayed at 5% interest over 5 years (€ 1509.70 per month)
Grants: € 50,000 HPSU grant from Enterprise Ireland
See Appendix G for Cash Budgets for Year 1,2 and 3.

ProjectedStatements ofProfit or Loss for the years ended 31 December2015
2015 2016 2017
€ € €
Sales 585,750.00 1,278,000.00 1,917,000.00
Cost of Sales W1 481,675.44 W1 847,992.22 W1 1,021,873.91
Gross Profit 104,074.56 430,007.78 895,126.09
Other Income
Grant 50,000.00 0.00 0.00
Expenses
Administration Expenses W2 49,596.02 47,241.16 W2 49,318.03
Selling and Distribution expenses W3 91,062.50 195,060.00 W3 291,078.00
Finance Expense 14,444.42
Net Profit/Loss -1,028.38 187,706.62 554,730.06
ProjectedStatements ofFinancial Position at 31 December2015
Non-Current Assets
Property, plant & Equipment 28,989.39 26,918.73 25,000.00
Furniture & Fittings 3,528.00 2,664.00 1,800.00
Total Non-Current Assets 32,517.39 29,582.73 26,800.00
Current Assets
Inventory 17,261.95 34,078.75 50,895.55
Cash & Bank 13,132.68 182,764.70 710,271.19
Total Current Assets 30,394.63 216,843.45 761,166.74
Total Assets 62,912.02 246,426.18 761,166.74
Equity
Retained Profits 187,706.62 554,730.06
Total Equity 187,706.62 554,730.06
Non-current Liabilities
Long term loans/debts 61,883.64 43,767.20 25,650.86
Current Liabilities
Bank overdraft 1,028.38 0.00 0.00
Total Current Liabilities 1,028.38 0.00 0.00
Total Equity & Liabilities 62,912.02 246,426.18 761,166.74

Bibliography
Alcock, A., Maley, C.C., and Aktipis, A. (2014) ‘Is eating behaviour manipulated by the
gastrointestinal microbiota? Evolutionary pressures and potential mechanisms vol 36, pp 940-
949
Daubner, S.C. and Wang, S. (2011) Tyrosine hydroxylase and regulation of dopamine
synthesis; 505, 1-12
Egras, A.M., Hamilton, W.R., Lenz, T.L., and Monaghan, M.S. (2011) An Evidence-Based
Review of Fat Modifying Supplemental Weight Loss Products
Haslam, D, (2005) ‘Obesity’ The Lancet, 366, 1197-1207
Duncan, S., Lobley, G., Holtrop, G., Ince, J., Johnstone, A., Louis, P., Flint, H. (2008),
International Journal of Obesity, 32, p 1720-1724
Barness LA, Opitz JM and Gilbert-Barness E (December 2007). "Obesity: genetic, molecular,
and environmental aspects". American Journal of Medical Genetics 143A (24): 3016–34
Custom Probiotics Inc. (2014). Six Strain Probiotic Powder. Available at:
http://www.customprobiotics.com/custom-probiotics-six-cultures.htm [Accessed 20 October
2014]
Business 2000 (2012). ‘Growing and creating a new market’ Available at:
http://www.business2000.ie/pdf/pdf_6/danone_6th_ed.pdf
Bord Bia (2008) ‘Guide to Distribution for Food and Drink Producers in Ireland’. Available
at:
http://www.bordbia.ie/industry/manufacturers/GrowingYourBusiness/DistributorSearch/Doc
uments/BordBia-DistributionGuide.pdf [Accessed 15 November 2014]
Bord Bia (2014) ‘Guide to Retail for Small Food Producers’. Available at:
http://www.bordbiavantage.ie/foodcommunity/Documents/BB-Retail-Guide-2014.pdf
[Accessed 15 November 2014]
Moreno-Arribas, V., Lonvaud-Funel, A. (1999) Tyrosine decarboxylase activity of
Lactobacillus brevis IOEB 9809 isolated from wine and L. brevis ATCC 367 FEMS
Microbiol Lett. 1999 Nov 1;180 (1):55-60.
Business Hub (2010) Market Penetration. Available at:
http://www.businessihub.com/penetration-pricing/ [Accessed 9 November 2014]

Chron (2014) ‘Keys to a Successful Distribution Business’ by Root, G. Available at:
http://smallbusiness.chron.com/keys-successful-distribution-business-21520.html

Appendices: Appendix A – Market Research Survey

Appendix B: Unit 5 Addley Park, Liosban Industrial Estate, Galway City

Appendix C:
Competitors’ prices (as per Tesco website):
Actimel
 Original 4 x 100g - €1.99
 Original 8 x 100g - €3.89
 Original 12 x 100g - €4.99
(Alternate flavours/ fat free options same prices)
Appendix D:
Appendix E: SWOT Analysis for Prodieta
Strengths Weaknesses
Prodieta
 Large market
 Unique product
 Reduces cravings
 Helps reduce obesity
 Novel product based on
new research – first of its
kind
 Hard to break into an
established market
 Better known products
already exist
 Must gain trust of
customers as product is
new
Opportunities Threats
Prodieta
 Potential to expand out of
Irish market into Europe
and beyond
 2 flavours initially but
possible to develop new
flavours and variations of
the product
 Expansion of company, job
creation
 3 main competitors;
Danone, Yakult & Irish
Yogurt
 No patent on idea; idea
could be copied in the
future
% trends in irish yogurtmarket
natural health segment diet segment childrens yogurt products
yogurt drinks desserts full taste
fruit yogurts
Yakult
 Fermented/ Light 7 x 65ml - €3.65

Appendix F:
Trial Balance from the books ofProdieta Ltd as at 31 December2015
Sales 585,750.00
Grant 50,000.00
Capital 80,000.00
Equipment Purchases 28,989.39
Purchases of raw materials 176,142.40
Insurance - Buildings 419.62
Advertising 3,200.00
Stationary 2,386.32
Rent and Rates 15,324.72
Salaries 300,000.00
Training 1,380.00
Electricity 2,115.72
Office Telephones 3,034.98
Mobile Phones 3,804.00
Loan Repayments 18,116.38
Interest on repayments 3,671.96
Furniture and Fittings 3,528.00
Office Equipment 1,230.00
Security and safety 3,000.00
Consulting fees 13,440.00
Legal Fees 14,026.32
Internet 414.72
Postage 180.00
Distribution 87,862.50
Audit Fees 1,500.00
Waste & Disposal 3,600.00
Depreciation Equipment 2,070.66
Depreciation Fittings 792.00
Bank Balance 25520.31
Total: 715,750.00 715,750.00

Trial Balance from the books ofProdieta Ltd as at 31 December2016
Sales 1,278,000.00
Purchases (Equipment) 1,174.37
Purchases (Raw Materials) 347,742.40
Insurance 440.59
Stationery 2,505.60
Rent & Rates 15,324.72
Wages/Salary 492,000.00
Training 1,380.00
Office Telephone 3,186.73
Office Mobile 3,804.00
Loan Repayment 18,116.38
Interest on Repayment 2,932.96
Consulting Fees 14,112.00
Internet 414.72
Postage 180.00
Audit Fees 1,500.00
Bank Balance 157,396.39
Total 1,278,000.00 1,278,000.00

Trial Balance from the books ofProdieta Ltd as at 31
December2017
Sales 1,917,000.00
Equipment Purchases 1,174.37
Purchases of raw materials 519,342.40
Stationary 2,630.88
Rent and Rates 15,324.72
Salaries 492,000.00
Training 1,380.00
Office Telephones 3,346.08
Mobile Phones 3,804.00
Loan Repayments 18,116.38
Interest on repayment 2,156.15
Consulting fees 14,817.60
Internet 414.72
Postage 180.00
Audit Fees 1,500.00
Bank Balance 527,506.49
Total: 1,917,000.00 1,917,000.00

Appendix G
Cash Budget Year 1
Receipts Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Income 0.00 43250.00 63250.00 53250.00 53250.00 73500.00 63250.00 63250.00 63250.00 33000.00 53250.00 23250.00 585750.00
Grant 50000.00 50000.00
Capital 80000.00 80000.00
Total Receipts 80000.00 43250.00 113250.00 53250.00 53250.00 73500.00 63250.00 63250.00 63250.00 33000.00 53250.00 23250.00 715750.00
Expenditure
Purchases(Equipment) 24212.05 24212.05
Purchases(RawMaterials) 88071.20 88071.20 176142.40
Insurance - Buildings 419.61 419.61
Advertising 800.00 300.00 300.00 162.50 162.50 500.00 162.50 162.50 162.50 162.50 162.50 162.50 3200.00
Stationery 198.86 198.86 198.86 198.86 198.86 198.86 198.86 198.86 198.86 198.86 198.86 198.86 2386.32
Rent & Rates 1000.00 2662.36 1000.00 1000.00 1000.00 1000.00 2662.36 1000.00 1000.00 1000.00 1000.00 1000.00 15324.72
Wages/Salaries 25000.00 25000.00 25000.00 25000.00 25000.00 25000.00 25000.00 25000.00 25000.00 25000.00 25000.00 25000.00 300000.00
Training 460.00 460.00 460.00 1380.00
Electricity 352.62 352.62 352.62 352.62 352.62 352.62 2115.72
Office Telephone 505.83 505.83 505.83 505.83 505.83 505.83 3034.98
Mobile Phones 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 3804.00
Loan Repayments 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 18116.38
Interest on Repayments 333.33 328.43 323.51 318.57 313.60 308.62 303.62 298.59 293.54 288.48 283.39 278.28 3671.96
Furniture & Fittings 4320.00 4320.00
Office Equipment 1230.00 1230.00
Security& Safety 3000.00 3000.00
Consulting Fees 1120.00 1120.00 1120.00 1120.00 1120.00 1120.00 1120.00 1120.00 1120.00 1120.00 1120.00 1120.00 13440.00
Legal Fees 1168.86 1168.86 1168.86 1168.86 1168.86 1168.86 1168.86 1168.86 1168.86 1168.86 1168.86 1168.86 14026.32
Internet 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 414.72
Postage 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 180.00
DistributionCosts 0.00 6487.50 9487.50 7987.50 7987.50 11025.00 9487.50 9487.50 9487.50 4950.00 7987.50 3487.50 87862.50
Shipping Freight In 7000.00 7000.00
Audit Fees 1500.00 1500.00
Waste & Disposal 1200.00 1200.00 1200.00 3600.00
Total Expenditure 154286.39 45924.50 40980.82 40385.17 39793.41 130621.42 42485.78 42325.19 40813.35 36117.58 39303.20 37344.88 690381.69
Net Income -74286.39 -2674.50 72269.18 12864.83 13456.59 -57121.42 20764.22 20924.81 22436.65 -3117.58 13946.80 -14094.88 25368.31

Cash Budget Year 2
Income 116500.00 106500.00 106500.00 76500.00 76500.00 166500.00 126500.00 116500.00 106500.00 116000.00 97000.00 66500.00 1278000.00
Grant 0.00
Capital 0.00
Total Receipts 116500.00 106500.00 106500.00 76500.00 76500.00 166500.00 126500.00 116500.00 106500.00 116000.00 97000.00 66500.00 1278000.00
Expenditure
Advertising 840.00 315.00 315.00 170.63 170.63 525.00 170.63 170.63 170.63 170.63 170.63 170.63 3360.00
Stationery 208.80 208.80 208.80 208.80 208.80 208.80 208.80 208.80 208.80 208.80 208.80 208.80 2505.60
Rent & Rates 1000.00 2662.36 1000.00 1000.00 1000.00 1000.00 2662.36 1000.00 1000.00 1000.00 1000.00 1000.00 15324.72
Wages/Salaries 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 492000.00
Training 460.00 460.00 460.00 1380.00
Electricity 370.25 370.25 370.25 370.25 370.25 370.25 2221.51
Mobile Phones 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 3804.00
Loan Repayments 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 18116.38
Consulting Fees 1176.00 1176.00 1176.00 1176.00 1176.00 1176.00 1176.00 1176.00 1176.00 1176.00 1176.00 1176.00 14112.00
Legal Fees 1227.30 1227.30 1227.30 1227.30 1227.30 1227.30 1227.30 1227.30 1227.30 1227.30 1227.30 1227.30 14727.64
Internet 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 414.72
Postage 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 180.00
Audit Fees 1500.00 1500.00
Waste & Disposal 1260.00 1260.00 1260.00 3780.00
Net Income -124153.20 40520.44 42927.70 16478.14 17122.48 -79976.98 58430.62 50039.13 43103.57 51344.77 35039.24 6520.48 157396.39
Balance B/F 25368.31
Cash Flow 157396.39
Balance C/F 182764.70

Cash Budget Year 3
Income 169750.00 159750.00 159750.00 129750.00 129750.00 219750.00 179750.00 169750.00 159750.00 169750.00 150000.00 119500.00 1917000.00
Grant 0.00
Capital 0.00
Total Receipts 169750.00 159750.00 159750.00 129750.00 129750.00 219750.00 179750.00 169750.00 159750.00 169750.00 150000.00 119500.00 1917000.00
Expenditure
Advertising 882.00 330.75 330.75 179.16 179.16 551.25 179.16 179.16 179.16 179.16 179.16 179.16 3528.00
Stationery 219.24 219.24 219.24 219.24 219.24 219.24 219.24 219.24 219.24 219.24 219.24 219.24 2630.88
Rent & Rates 1000.00 2662.36 1000.00 1000.00 1000.00 1000.00 2662.36 1000.00 1000.00 1000.00 1000.00 1000.00 15324.72
Wages/Salaries 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 41000.00 492000.00
Training 460.00 460.00 460.00 1380.00
Electricity 388.76 388.76 388.76 388.76 388.76 388.76 2332.58
Mobile Phones 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 317.00 3804.00
Loan Repayments 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 1509.70 18116.38
Consulting Fees 1234.80 1234.80 1234.80 1234.80 1234.80 1234.80 1234.80 1234.80 1234.80 1234.80 1234.80 1234.80 14817.60
Legal Fees 1288.67 1288.67 1288.67 1288.67 1288.67 1288.67 1288.67 1288.67 1288.67 1288.67 1288.67 1288.67 15464.02
Internet 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 34.56 414.72
Postage 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 180.00
Audit Fees 1500.00 1500.00
Waste & Disposal 1323.00 1323.00 1323.00 3969.00
Net Income -164826.60 85659.58 88081.07 61584.05 62283.61 -120625.26 103592.29 95146.12 88265.78 96940.29 79989.50 51416.06 527506.49
Balance B/F 182764.70
Cash Flow 527506.49
Balance C/F 710271.19

Purchases
for Prodieta
Ltd.
Purchases
Year 1
Purchase
Amount
Required
Price (€) Total Cost (€)
Equipment
Lab coats 6 19.00 114.00
Analytical Balance 1 781.37 781.37
Shake Flask 4 5.00 20.00
Shaking Incubator 1 4,000.00 4,000.00
Carboy (20L) 1 141.00 141.00
Fan Heater 1 18.00 18.00
Thermostat 1 100.00 100.00
500L Yogurt Fermentation Tank 3 1,598.43 4,795.29
Commercial Steam Generator 1 589.88 589.88
1500 x 1500 Cold Room 1 3,760.00 3,760.00
Filler, Capper & Labeller System 1 9,892.51 9,892.51
Total Equipment 24,212.05
Raw Material
Starter Cultures 2 150.00 300.00
25kg Skimmed Milk Powder 52 75.00 3,900.00
Banana Extract (1L) 1 24.00 24.00
Assorted Fruit Juice Flavours (1L
Conc.) 5 32.20 161.00
Zero Calorie Steetener (1kg) 2 40.20 80.40
Rhamnose Sugar 2 38.50 77.00
20,000 Labels 78 1,000.00 78,000.00
20,000 Plastic Bottles 78 1,200.00 93,600.00
Total Raw Material 176,142.40
Grand Total Purchases 200,354.45
Appendix H

Purchases
for Prodieta
Ltd.
Purchases
Year 2
Purchase
Amount
Required
Equipment
Lab coats 6 19.00 114.00
Carboy (20L) 1 141.00 141.00
Fan Heater 1 18.00 18.00
Thermostat 1 100.00 100.00
Raw Material
Conc.) 5 32.20 161.00
20,000 Labels 156 1,000.00 156,000.00
20,000 Plastic Bottles 156 1,200.00 187,200.00

Purchases
for Prodieta
Ltd.
Purchases
Year 3
Purchase
Amount
Required
Equipment
Lab coats 6 19.00 114.00
Carboy (20L) 1 141.00 141.00
Fan Heater 1 18.00 18.00
Thermostat 1 100.00 100.00
Raw Material
Conc.) 5 32.20 161.00
20,000 Labels 234 1,000.00 234,000.00
20,000 Plastic Bottles 234 1,200.00 280,800.00

Appendix I
Depreciationof Laboratory Equipment
Depreciation using straight line method over 15 years
Cost (€) Annual Depreciation (€)
Analytical balance 781.37 52.09
Shaking Incubator 4,000.00 266.66
Carboy (20L) 141.00 9.40
Thermostat 100.00 6.66
3 x 500L Yogurt Fermentation Tanks 4,795.29 319.69
Commercial Steam Generator 589.88 39.33
1500 x 1500 Cold Room 3,760.00 250.67
Filler, Capper & Labeller System 9,892.51 659.50
Shipping Freight In 7,000.00 466.66
Totals 31,060.05 2,070.66
NBV of Laboratory Equipment at end of Year 1 = (31,060.05 - 2,070.66) = €28,989.39

Depreciationof Furniture & Fittings
Depreciation using straight line method over 5 years
Cost (€) Annual Depreciation (€)
Furniture & Fittings 4320.00 864.00
Depreciation will be over 11 months in Year 1
Depreciation on Furniture & Fittings =
864 𝑋 11
12
= 792.00
Depreciation Year 1 = 792.00
NBV of Furniture & fittings at end of Year 1 = 3528.00

Appendix J:
Workings for Accounts
Insurance – Building
Insurance for Year 1 is quoted at €419.61 the budget for this will be increased by 5% for each
subsequent year.
Year 1 = €419.61
Year 2 = 419.61 + 5% = €440.59
Year 3 = 440.59 + 5% = €462.61
Advertising
The total advertising budget in Year 1 was €3,200.00 and will be increased by 5% for each
successive year.
Year 1 = €3200.00
Year 2 = 3200.00 + 5% = €3360.00
Year 3 = 3360.00 + 5% = €3528.00
Stationery
The budget for stationery each month in Year 1 was €198.86 and will be subjected to a 5%
annual rise in Year 2 and Year 3.
Year 1 = €198.86 per month
Year 2 = 198.86 + 5% = €208.80 per month
Year 3 = 208.80 + 5% = € 219.24 per month
Salaries
Salaries were to be paid at a rate of €300,000.00 annually in Year 1 and this was to be
increased in Year 2 and Year 3 to €492,000.00
Salaries for Year 1 = €25,000.00 per month (10 Employees).
Salaries for Year 2 & 3 = €41,000.00 per month (16 Employees).

Electricity
Electricity was estimated at €352.62 on a bi-monthly basis, this is to be increased in Year 2
by 5% and in Year 3 by a further 5%.
Year 1 bi-monthly estimate = €352.62
Year 2 bi-monthly estimate = 352.62 + 5% = €370.25
Office Telephone
The office telephone bill was estimated at a bi-monthly cost of €505.83 in Year 1, this cost is
to be increased by 5% in Year 2 and again in Year 3 by 5%.
Year 1 bi-monthly estimate = €505.83

Appendix K:
Year 1 – Break-EvenAnalysis
Fixed Costs
Advertising 3200.00
Stationery 2386.32
Rent & Rates 15324.72
Wages/Salaries 300000.00
Training 1380.00
Office Telephone 3034.98
Mobile Phones 3804.00
Security & Safety 3000.00
Internet 414.72
Shipping Freight In 7000.00
Audit Fees 1500.00
Depreciation – Furniture & Fittings 792.00
Depreciation – Equipment 2070.66
344327.01
Variable Costs
Purchases 200354.50
Cost per unit 0.13
Sales price per
unit
0.45
Total units Year 1 1,560,000
Cost per unit = Purchases ÷ Total units Year 1
Contribution = selling price less variable cost = 0.45-0.13 = 0.32
Break-Even point = Fixed costs ÷ Contribution per unit
Break-Even Point = 344327.01 ÷ 0.32 = 1,076,021.91 units

Fixed Costs
Advertising 3360.00
Stationery 2505.60
Training 1380.00
Internet 414.72
Audit Fees 1500.00
526851.02
Variable Costs
Purchases 348916.77
Cost per unit 0.11
Sales price per
unit
0.45

Fixed Costs
Advertising 3528.00
Stationery 2630.88
Training 1380.00
Internet 414.72
Audit Fees 1500.00
527325.67
Variable Costs
Purchases 520516.77
Cost per unit 0.11
Sales price per
unit
0.45

Appendix L:
Sales Projections Prodieta Ltd.
Year 1:
Prodieta Ltd. aim to produce 30,000 units per week in Year 1.
15,000 units will be packaged and sold as a 4 pack = 3750 @ 0.45c per unit.
15,000 units will be packaged and sold as an 8 pack = 1875 @ 0.44c per unit.
A 4 pack will retail at €1.80 generating sales of €6750 per week (3750 x €1.80).
An 8 Pack will retail at €3.50 generating sales of €6562.50 per week (1875 x €3.50).
€6750 + €6562.50 = €13,312.50 estimated sales per week.
€13,312.50 x 4 weeks = €53,250 per month.
€53,250 x 12 months = €639,000 a year.
However, Prodieta will only producing for 11 months in Year 1
Therefore, €53,250 x 11 months = €585,750 Total Sales Estimate in Year 1.
Year 2:
30,000 units will be packaged and sold as a 4 pack = 7500 @ 0.45c per unit.
A 4 pack will retail at €1.80 generating sales of €13,500 per week (7500 x €1.80).
An 8 Pack will retail at €3.50 generating sales of €13,125 per week (3750 x €3.50).
€6750 + €6562.50 = €13,312.50 estimated sales per week.
€26,625 x 4 weeks = €106,500 per month.
€106,500 x 12 months = €1,278,000 Total Sales Estimate in Year 2.

Year 3:
45,000 units will be packaged and sold as a 4 pack = 11,250 @ 0.45c per unit.
A 4 pack will retail at €1.80 generating sales of €20,250 per week (11,250 x €1.80).
An 8 Pack will retail at €3.50 generating sales of €19,687.50 per week (5625 x €3.50).
€20,250 + €19,687.50 = €39937.50 estimated sales per week.
€39937.50 x 4 weeks = €159,750 per month.
€159,750 x 12 months = €1,917,000 Total Sales Estimate in Year 3.

Appendix M: Workings for Financial Statements

Prodieta Business Plan

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Prodieta Business Plan

Ähnlich wie Prodieta Business Plan (20)

Prodieta Business Plan