by Organicsan Management Team by Organicsan Management Team ORGANICSAN Business Plan Business Name: Organicsan Incorporation Co-founders: Man Fong, Hendrik Muskus, Princeton Oben, Hien Vu Created on June 08th, 2020 Table of Content I.Executive Summarypage 02 II.Introductionpage 03 III.Analysis of Business Situationpage 10 IV.E-Commerce Operationspage 15 V.Planned Financingpage 21 VI.Conclusionpage 27 VII.Bibliographypage 29 VIII.Appendixpage 30 I. Executive Summary With the rise of the ketogenic diet and low carb diets, many people have begun to cut wheat and carbohydrates out of their diets in hopes to become healthier and lose weight. However, most products in the snack industry contain wheat leaving them exposed to shifts in demand. With the rise of Non-GMO, gluten-free, organic, and nutrient enhanced foods, snack producers are forced to focus making products healthier in response to consumer demand. With a rise in economy, many households are left with more disposable income. This allows consumers the desire to trade up to more expensive products; organic, non-GMO, superfoods. This helps support industry performance. With an expected rise in per capita disposable income in 2020, a potential opportunity is opened for the industry. Having an estimated 24.7% of the industry revenue in 2019 from Mondelez International, Kellogg, Campbell, and Barilla, small to medium sized companies still account for a significant portion of the industry accounting for 54.7% of the market. One snack dominating the industry right now is edible nuts. They contain high-quality fiber, minerals, vegetable protein, oils, and vitamins, all vital for healthy functioning of the human body. According to the March 2020 USDA report, Vietnam is ranked number one in exporting tree nuts. Organicsan, a US- based company founded by a management team with over 20 years of international operation and trading experience, was created in response to the emerging “health-nut” population. With an aim towards healthier lifestyles with gluten-free and organic snacks and nuts, they have managed to take over Vietnam’s position as the leading nut exporter. Since early 2020, the founders of Organicsan have collaborated with a local organic farmer and its processing plant in Vietnam for cashews and macadamia nuts. In 2021, we plan to set up our first business office in Texas in hopes to partner with companies such as Amazon and Shopify to promote our organic products. We hope to one day sign contracts to wholesalers main distribution channels with large retailers. Organicsan plans to expand through localizing manufacturing operations to minimize costs while focusing on higher productivity by 2023. Our objective is to obtain a $250,000 loan to enable us to begin operations with projected first-year revenue of US$2 million dollars, and then subsequently obtain a first-round investment amount in the amount of US$1 million in 2023 to fund capital expenditure and workin ...

1. by Organicsan Management Team
by Organicsan Management Team
ORGANICSAN
Business Plan
Business Name: Organicsan Incorporation
Co-founders: Man Fong, Hendrik Muskus, Princeton Oben, Hien
Vu
Created on June 08th, 2020
Table of Content
I.Executive Summarypage 02
II.Introductionpage 03
III.Analysis of Business Situationpage 10
IV.E-Commerce Operationspage 15
V.Planned Financingpage 21

2. VI.Conclusionpage 27
VII.Bibliographypage 29
VIII.Appendixpage 30
I. Executive Summary
With the rise of the ketogenic diet and low carb diets, many
people have begun to cut wheat and carbohydrates out of their
diets in hopes to become healthier and lose weight. However,
most products in the snack industry contain wheat leaving them
exposed to shifts in demand. With the rise of Non-GMO, gluten-
free, organic, and nutrient enhanced foods, snack producers are
forced to focus making products healthier in response to
consumer demand.
With a rise in economy, many households are left with more
disposable income. This allows consumers the desire to trade up
to more expensive products; organic, non-GMO, superfoods.
This helps support industry performance. With an expected rise
in per capita disposable income in 2020, a potential opportunity
is opened for the industry.
Having an estimated 24.7% of the industry revenue in 2019
from Mondelez International, Kellogg, Campbell, and Barilla,
small to medium sized companies still account for a significant
portion of the industry accounting for 54.7% of the market.
One snack dominating the industry right now is edible nuts.
They contain high-quality fiber, minerals, vegetable protein,
oils, and vitamins, all vital for healthy functioning of the human
body. According to the March 2020 USDA report, Vietnam is
ranked number one in exporting tree nuts.
Organicsan, a US- based company founded by a management
team with over 20 years of international operation and trading
experience, was created in response to the emerging “health-

3. nut” population. With an aim towards healthier lifestyles with
gluten-free and organic snacks and nuts, they have managed to
take over Vietnam’s position as the leading nut exporter.
Since early 2020, the founders of Organicsan have collaborated
with a local organic farmer and its processing plant in Vietnam
for cashews and macadamia nuts. In 2021, we plan to set up our
first business office in Texas in hopes to partner with
companies such as Amazon and Shopify to promote our organic
products. We hope to one day sign contracts to wholesalers
main distribution channels with large retailers. Organicsan
plans to expand through localizing manufacturing operations to
minimize costs while focusing on higher productivity by 2023.
Our objective is to obtain a $250,000 loan to enable us to begin
operations with projected first-year revenue of US$2 million
dollars, and then subsequently obtain a first-round investment
amount in the amount of US$1 million in 2023 to fund capital
expenditure and working capital for our product portfolio. We
are projected to bring in revenue of US$2 million per year and
grow at a strong annual compounded rate of 35%.
Our consumers would enjoy healthier snacks with organic
ingredients, lower sugar consumption, fewer carbohydrates, and
better control of the calorie intake whilst still enj oying a tasty,
high-quality variety of snacks.
II.Introduction
1. Company value, vision, and philosophy
“San” in Japanese (さん), when talking about other people, is
used as honorable titles after their name. It means all of "Mr",
"Mrs", "Miss", and "Ms." Moreover, ”San” in Vietnamese
(“sàn”) means a trading floor or an open market place.
Hence, “organicsan” means an open marketplace where organic
farmers can communicate and deal directly with their organic
end-consumers whilst saving middle-man costs and enjoying the

4. true value of living healthy and sharing happiness. And that is
the value of the Company.
Our vision is to bring more organic nuts and super seeds
harvested from the organic farms to the tables of families
around the world, enhancing the lives of these poor farmers by
patronage and support while enriching the health of the world
with organic snacks and making a profit in the process.
Our philosophy is to make a positive impact on the hearts and
lives of people: farmers and consumers. We use food to fight
illness, increase longevity, boost immunity, increase energy,
and eventually being happier. For every product, we offer our
customers, stakeholders, and partners happiness. Let’s all share
the happiness with the Givers Gain® philosophy.
2. Company goals
In early 2020, the founders of Organicsan started working with
one of the first organic farms and manufacturers in Vietnam to
study the food processing of organic cashew nuts, macadamia
nuts for export under global standards like USDA Organic and
BRC Organic Certifications.
Organicsan is going to build an E-commerce website and start
its operation office in the U.S. in 2021 to engage in marketing
& sales activities to promote its own brand for fire-roasted
organic nuts.
Our initial goal in the first year is to start selling on reputable
E-commerce partners like Amazon and Shopify. In long term,
our goal is to sign contracts directly to wholesalers like Costco
and main distribution channels with large retailers like
Walmart, Kroger, Albertsons, Target, HEB, Wholefoods, and
grocery stores like Amazon Go, 7-Eleven, Circle K.

5. By the end of 2023, Organicsan will develop its own brands for
snacks production and promote it to the international markets by
localizing manufacturing operations near the local organic
farms in order to minimize raw material, logistics and
distribution costs while focusing on higher efficiencies for
gluten-free, organic snacks and other superfoods.
3. Products
All of our organic products are humanely and sustainably grown
without any pesticides, herbicides, or chemical fertilizers. They
are carefully harvested and processed to preserve delicate
enzymes and nutrients. Free of preservatives, cashew nuts, and
macadamia nuts are rich in vitamin B1 and manganese as w ell
as magnesium, iron, potassium, vitamin B6, and healthy omega
fats.
All raw products are being selected for grading, eco-fumigating,
packaging, labeling, and exporting. Local processing factories
also have color-sorting, x-ray, and metal detector machines
under strict quality control. The raw products can be great for
catering companies to add for trail mixes, stir-fries, and baked
goods.
Here are the first key product items to kickstart in year 2021:
(1) Macadamia Nuts – Organic, Non-GMO, Gluten-Free, Dry
Roasted
· Native to Lush, Macadamia Nuts are widely considered to be
among the world's most distinctive and sought-after culinary
delicacies. It is cherished for its unique flavor, exquisite
texture, and nutrient profile, and become a wonderful source of
nutrition.
· Packing: 4 oz, 7 oz, 14 oz, 1 lb., 2 lbs. in-shell or shell-off
· Pricing: starting from $2.5/oz for online retail price, free
delivery for orders over $50. Our pricing is in the same
category with high-end products from Hawaii & Australia

6. · Projected Profit Margin: 25% or more, dependent on product
types and traded volume
· Organic Farm: Macca Dai Viet from Vietnam. See the
appendix for details.
(2) Cashew Nuts - Organic, Non-GMO, Gluten-Free
Hand-Shelled & Fire Roasted, with/ without Honey / Himalayan
Salt
· Low-temperature dried and hand-shelled to preserve their vital
nutrients and supremely creamy taste. Great source of healthy
fats and an array of minerals, including iron and potassium.
Great for snacking and adding to smoothies, salads, trail mixes,
stir-fries, and baked goods.
· Packing: 4 oz, 7 oz, 14 oz, 1 lb., 2 lbs.
· Pricing: starting from $1.2/oz for online retail price, free
delivery for orders over $50. Our pricing is in the same
category with high-end products from Africa & India
· Projected Profit Margin: 20% or more, dependent on product
types and traded volume
· Organic Farm: Organics & More from Vietnam & Indonesia.
See the appendix for photos.
Raw, Certified Cashew Nut Kernels
· Grades: WW240, WW320, WS, LP
· Packing: Vacuum and carton boxes in 50 lbs., 25 lbs., 10 lbs.
· All raw products are being selected for grading, eco-
fumigating, packaging, labeling and exporting. The local
processing factory also has color-sorting, x-ray, and metal
detector machines as quality control.
· Organic Farm: Organicsan from Vietnam & Indonesia. See the
appendix for details.
Website page of Organicsan.com:
https://organicsan2020.wixsite.com/website

7. Images from the website pages are listed as below:
Main page: https://organicsan2020.wixsite.com/website
Products Page (Shop):
https://organicsan2020.wixsite.com/website/shop:
Health and Benefits:
https://organicsan2020.wixsite.com/website/store-policies:
Sign up: https://organicsan2020.wixsite.com/website
Cart: https://organicsan2020.wixsite.com/website/cart-page

8. Meet the team:
https://organicsan2020.wixsite.com/website/meet-the-team:
III. Analysis of Business Situation
1. Market Overview
According to the market research done by IBIS World 2019
Report by Yang (2019), the cookie, cracker, and pasta
production industry have a low level of market share
concentration, with the top four manufacturers - namely
Mondelez International, Kellogg, Campbell, and Barilla
accounting for an estimated 24.7% of industry revenue in 2019.
The industry’s top players have international influences, with
brands from all over the world. They engage in acquisitions
frequently due to the extensive number of brands available in
the industry, and the fast-changing nature of snacking trends.
For instance, Campbell acquired Snyder-Lance in 2018 to
expand its snack segment. Company management teams are
adamant about trends, considering which brands need to be
reinvented or dropped altogether. Small-to medium-sized
companies still account for a significant number of players in
the industry, with less than 20 employees like Organicsan,
accounting for 54.7% market.
Looking at edible nuts imported into the US market, the total
market size can be shown as below:
Source: USDA, Annual Foods Imports Report 2007-2017
The first-year target revenue, for 2021, is set at $2 million or
equal to approximately 0.5% of existing total imports from
Vietnam for cashew nuts and macadamia nuts.
The demand for cashew nuts keeps growing over time, mainly

9. due to the trending habits of healthier eating, and many snack
manufacturers import raw cashew kernels to mix with other
super seeds or superfoods to make their snacks more appealing
and healthier to consumers. Vietnam has kept its leading
position in export in terms of both volume and import revenue
during the last couple of years. With the latest policy of
bilateral trade agreement between the US and Vietnam, the trade
tariff for import edible nuts is exempted at zero import duty rate
which enables the higher growth of this business segment. Out
of $1.2 billion of current import revenue, we just set our humble
target of $4.5 million a year which is equal to 0.4% of total
imports from Vietnam.
Source: USDA, Annual Foods Imports Report 2007-2017
For macadamia nuts, the demand also keeps rising but at a
slower rate compared to cashew nuts, because macadamia nuts
are not as popular for mixing in with other snacks and much
higher unit price of macadamia driven by its small supply
around the world. However, in terms of nutrients, macadamia is
considered the best nut or “king of the nut” which is proven
excellent for people’s health compared to other edible tree nuts.
Out of $66 million of current revenue from Vietnam, we set our
initial target of $0.5 million which is equal to 0.7% of total
imports from Vietnam.
2. Target market
For this business plan, our target is the export markets to North
America. In terms of customers, we target the rising
discretionary income families associated with a growing middle
class.
According to the Mintel report of Snacking Motivations and
Attitudes, nearly 94% of Americans snack at least once a day,
with 50% of adults snacking two to three times per day. In
response to the growing demand for industry products that can

10. be consumed as snacks on the go, Organicsan plan to launch
more single-serving or travel-sized packages of our products.
3. Target customer
Our ideal customers are those Generation X and Millennials
who are prone to be on diets and need on a regular basis as
repeated consumers. Also, we plan to partner with some
influencers to target the right customer segment over different
multimedia channels.
We also plan to go on long-term partnerships with wholesale
buyers to increase our volume and increase access to their
partner members who are also our potential repeat clients.
Our target customer groups can be described with the following
demographic profile:
For consumers:
· Age: Generation X and Millennials
· Gender: both male & female
· Location: North American markets
· Income: Average income or higher
· Occupation: Preferably athletes, vegans, weight-watchers,
health food nuts, millennials, children, cubicle-dwellers, and
micro-influencers.
· Education level: Preferably high-school graduates or higher
For businesses:
· Industry: online e-commerce platforms, large retailers, grocery
chain for health & beauty
· Location: North American markets
· Size: Minimum one FCL shipment (or equal to $120,000)
· Stage in business: well-established and growing
· Annual sales: Preferably 2 FCL shipments or higher
· Distribution type: both online and retailers
4. SWOT Analysis
The top four manufacturers - namely Mondelez International,

11. Kellogg, Campbell and Barilla accounting for an estimated
24.7% of industry revenue in 2019. Small-to medium-sized
companies still account for a significant number of players in
the industry, with less than 20 employees like Organicsan,
accounting for 54.7% market.
For Organicsan, we can envisage the following:
Strengths
· Product differentiation: Our own proprietary roasting process
differentiates our products to remain competitive advantage in
the marketplace. Both organic macadamia nuts and cashew nuts
are hand-picked and roasted under our own proprietary roasting
know-how that keeps the natural flavors and tastes to its full
richness. Our products are widely considered to be the most
recognizable and sought-after culinary delicacies in Asian
countries and that’s why we are driven to bring it to the larger
consumption market in North America. It has been cherished for
its distinct flavor, exquisite texture, and nutrient profile, and
become a wonderful source of nutrition.
· Supply contracts booked in place for cost-saving: With long-
term supply contracts and a scholarship offered to organic
plantation farmers, we benefit from reduced supply volatility
and give back to the farmers’ community. Guaranteed supplies
at pre-determined prices can minimize supply costs.
· Organicsan has strategic local partners from Vietnam and
Indonesia, who deal directly on daily basis with organic
plantation farmers to assure the best quality of products whilst
negotiating for a reasonable sourcing price without adding on
middle-man cost.
· Ability to adapt to change: farmers and producers can respond
directly to changes in consumer preferences to remain
competitive in the industry. Over time, with increased volume
orders, we can also capitalize on economies of scale for lower
production costs.
Weaknesses
· Brand recognition challenge would be considered as a barrier
to entry to Organisan’s products as customers need to try out

12. before they place orders on regular bases. We plan to firstly
promote our products through online e-commerce platforms like
Amazon, Shopify, and direct marketing Direct-to-Consumer
(D2C) channels from our website.
· Considerable startup costs, especially working capital used for
imports and inventory costs. This can be mitigated by starting
off with small inventory quantities and gradually increase when
sales pick.
· Given the startup status, it would take time to build up a credit
line with the US commercial banks who we expect to seek for
70% financing for the trade credit line.
· High marketing costs, especially during the first year of
operation as we may need help from experienced trade brokers
who have access to large retailers like Costco, Walmart, and
Kroger.
Opportunities
· Organicsan can directly access to leading local organic farms
and processing plants which are qualified for USDA Organics.
· Opportunity for Organicsan to hedge export contracts to the
local commercial banks for a credit line for advance payments
to local farmers given the advantage of our term contracts with
its corporate buyers. Normally, local vendors must deposit and
pay in advance to farmers to reserve the right to buy and
farmers are more comfortable to focus on their plantation.
· Chance to improve customer services: With the presence of
our US-based office, our E-commerce platform can provide 24/7
online assistance and 800-direct-call to leave a message for our
call-service team’s immediate follow-up. We also partner with
FedEx and online delivery firms to offer the most suitable
options for our end-consumers for online shipments.
Threats
· Organicsan would be exposed to more threats of a higher level
of participation of the top leading players as well as fiercer
competition in terms of price and delivery time by internal
brands of large wholesale retailers like Costco or Walmart.
· The challenge to logistics management, specifically the

13. storage and on-time delivery versus price fluctuation risk during
the year. Naturally, organic nuts are seasonally harvested; and
thus, it requires a well-planned procurement strategy to execute
in line with local farmers and business partners who should
commit to all key commercial terms in agreements signed with
the Company.
· In the long term, if there will be more risks associated with
the world recession caused by the Covid-19 pandemic and
changes in the US government regulations about import duty tax
applicable to edible nuts & snacks.
5. How to market our products
We prefer starting with both channels through large retailers
and online. For online, we prefer applying Direct-to-Consumer
(D2C) approach as we can control our products and ship our
products directly to buyers without relying on traditional stores
or other middlemen.
Short-term, we believe the D2C approach would help us to sell
our nuts and snack products at lower costs than traditional
consumer brands, and to maintain end-to-end control over the
making, marketing, and distribution of products. Unlike other
traditional retail competitors, D2C brands can experiment with
distribution models, from shipping directly to consumers, to
partnerships with physical retailers, to opening pop-up shops.
There is no need to rely on traditional retail stores for exposure.
We may compete by rethinking not just the product, but also the
retail model.
With the key image of “sharing Happiness” for our brand, our
marketing may include:
· Company website
· Social media marketing
· Email marketing

14. · Mobile marketing
· Search engine optimization
· Content marketing
· Print marketing materials (brochures, flyers, business cards)
· Public relations
· Trade shows
· Networking
· Word-of-mouth
· Referrals
6. Pricing
· Our pricing stays competitive thanks to direct sourcing with
organic farmers in Vietnam
· With the “from farm to table” approach, we position ourselves
as the value-added to end consumers by cutting irrelevant
middleman costs and pass through it to consumers.
· Our pricing strategy reflects our pioneer positioning towards
direct to consumer for snacks products
· Compare to competitors as shown in the Appendix, our unit
price is still 20% lower
· We plan to offer more discount for repeated orders to build up
royalty with customers
7. Distribution channels
For distribution, we will focus primarily on the following:
· E-commerce
· Direct sales via D2C channel
· Wholesale
· Retail Stores
· Outside sales representatives
Our initial plan is to start by using a reputable E-commerce
partner to simplify the sales operations and give customers

15. confidence in their purchase. The two main partners we use will
be Amazon and Shopify.
However, it is our goal not only sell through Amazon and
Shopify but also to go into strategic partnerships or key
distributor relationships with US-based retailers in a long term
who can take leverage on our direct sourcing capabilities in
Southeast Asia for their better procurements, that would end up
as another success factor in our success in the future.
IV. E-Commerce Operation
a. Selling on websites:
In addition to promoting and selling the Organicsan nuts on our
own website https://organicsan2020.wixsite.com/website, it will
also be sold via Amazon and Shopify.
Selling on Amazon
We will set up as a professional seller on Amazon with the
monthly unlimited sales plan that reduces Amazon commission
costs compared to the per item sale commission. Selling through
Amazon also includes credit card payment processing. We will
also choose to use Amazon fulfillment service to simplify our
initial operation and warehousing needs.
Selling on Shopify
We will also set up a Shopify online store and cart with the
Shopify plan ($79 per month). It includes unlimited product
sales, online support, and professional report. Shopify can also
process online credit card payments and provides shipping
discounts and shipping label printing services.
b. Operations Software
We will use QuickBooks online advanced service ($79 per
month) for all business bookkeeping, accounting, inventory
tracking, order fulfillment, and business analytics/ insights
reporting. The QuickBooks advanced service also provides sales
and business data import capability from Amazon and Shopify
to streamline the operations. It can also process payments and
generate invoices for customers.
c. Marketing
Our product will be advertised on Google ads, Facebook ads,

16. and YouTube video ads as outlined:
GOOGLE ADS:
Google ads use a pay-per-click (PPC) model whereby we only
pay when a prospective client clicks on the ad. The ads are
shown when a potential client types in a keyword that we have
chosen into the search bar. The keywords that we have chosen
are nuts, snacks, organic cashews, organic macadamias, healthy
snacks, vegan, nutritious, online snacks. These pertain to our
model of selling healthy snacks and nuts online. Our audience is
all of North America, and the target demographic is athletic,
health-conscious, millennials, and people on a diet who are all
prone to shop conveniently online. When leads type in these
keywords, they will be shown the ad before their search results.
The ad would look like this:
Clicking on the ad takes them to our website where they can
shop conveniently online. We choose the $25 daily tier, which
reaches an estimated 35,270 - 58,860 people and get 670 - 1,120
ad clicks per month
FACEBOOK:
Facebook ads are the other target medium of marketing. With
almost 6 billion people on Facebook, it is a rich source of
revenue. First, we created a page with contact information,
website links, and posts to boost our online presence, and then
choose marketing media that increase traffic to our website.
Facebook ads target behaviors or interests that customers have
indicated. So we choose keywords we associate within targeting
our ads, such as: Athletes, Health-conscious, vegan, alternative
lifestyle, pregnant, breakfast, diet, organic, millennial, cashews,
macadamia, premium nuts, cheap, non-GMO, charity,
sustainable, corporate responsible company.
Facebook Ad Preview:
Facebook ads are designed to achieve one or more goals of :
1. Automated ads- send visitors to our website.
2. Get more website visitors: $5 a day: 922-2.7K clicks per day

17. 3. Promote our page: $5: 884-2.6K likes per day
4. Boost our posts: Increases a post’s views
5. Get more leads: $7 a day: 5-14leads/307-887 people a day
6. Get more button clicks- buttons take to our website. $5: 810-
2.3K clicks per day
Being a brand new company, we would start off with all 6
media and fine-tune to narrow to the most productive avenues,
for a total of about 7000 clicks per day and a cost of $30 per
day or a budget of $900 a month.
The projected Facebook click-through rate is 0.016%
YOUTUBE AD:
Our ad is a quick video that shows our product. Our strategy is
to place the ad before the videos that users clicked on based on
their search, so they are taken to our website to shop and then
also choose to appear on YouTube partner sites for maximum
exposure.
Our target audience is North America and demographic is
chosen as all ages and genders, and behaviors that users have
indicated an interest in or searched for such as snacks, healthy
food, nuts, party favors, and gift-baskets for such holidays such
as Christmas, Easter or Thanksgiving. It sends them to our
website where purchases can be made. Users cannot skip the ad.
It costs $5 a day, for a budget of $150 a month, and brings in
6K-10K impressions a week, meaning $3.3-$5.30 average cost
per thousand impressions (CPM). The projected clickthrough
rate is 0.02%.
d. Support
We will provide two main types of supports initially via email
and chat room.
Email support allows customers to send questions on a purchase
or return requests 24/7. An email response will be provided to
the customer within 24 to 48 hours of response time.
Chat room support allows customers that prefer real-time
interaction or immediate assistance. Customers can click on the
chat room button on our website and get instant support. We

18. will use the Chatbot service to provide chat room support. This
AI-based automated chat room service provides interactive
human-like conversation support instead of just online help.
Chatbot pricing is from $50 to $500 per month upon the number
of chat customers initiated.
e. Management Reports
As managers, we would want to see reports in two broad
categories: Sales & Marketing, and Accounting and Finance.
Sales & Marketing
1. Sales Forecasts Budget Report(monthly): We would like to
see the sales forecasts budgets on a monthly basis. These
figures would help determine how much inventory we order
from our suppliers. These sales forecasts are determined by
industry trends and consumers’ attitudes towards our product,
which would reference the attitudes towards snacks, diets and
healthy foods. Our marketing efforts and results would also
determine these numbers.
2. Actual Sales Reports (daily):
We would also look to see actual sales reports. These would be
seen on a daily basis. Since this is a start-up, looking at sales
would help us compare them to marketing efforts and look at
which can be ramped up and which marketing channels can be
retired. They would also help us determine if, for example, a
marketing video has gone viral and we need to increase
inventory immediately, or if we are in a slump and why that is.
3. Returns Reports (monthly):
We would look at reports of returns on a monthly basis. This
would result in changing what caused the reason for the returns
and adjusting such cause so that returns can be reduced.
4. Customer Service and Complaints Reports (daily):
The customer service department would provide daily reports of
complaints and compliments, which we would review to see
what can be fixed or optimized for maximum exposure and
revenue.
5. Click-Through Rates (weekly):
Our social media channels of advertisement: YouTube, Google,

19. and Facebook would be analyzed weekly to determine the
clickthrough rates and effectiveness of the channel. Low CTR
channels would be scrapped to reduce the cost of marketing and
higher, more effective channels kept.
Accounting and Finance:
6. Inventory reports (daily):
Inventory reports would be examined daily to determine trends;
if our business has hit a viral marketing campaign so that we
don’t lose sales by not meeting demand.
7. Bank Account statements (weekly):
Our bank statement would be reviewed weekly to ensure that
our expenses are accurate, no fraudulent or suspicious activity
is taking place, or bounced checks from clients, or suspicious
charges by vendors or suppliers, as well as reconcile our books.
8. Invoices (weekly):
Our invoices would be checked weekly to ensure that our
vendors are billing us accurately and make sure that the right
quality and quantity of merchandise is sent us.
9. Financial Statements (quarterly):
Our cashflow report, income statements and balance sheets
would be reviewed quarterly, and, based on our figures, more
money borrowed from the bank to fund sales, or costs cut if
they are too high in some areas.
V. Planned Financing
1. Start-Up Expenses
Based on the likelihood of pre-orders and production capacity
of local partners in Vietnam, this summary shows a high-level
of sources of funds and uses of funds for the year 2021. With
total capital source of $650,000 comprising $400,000 (or 61%)
of owner’s equity and $250,000 (or 39%) of a bank loan. The
bank loan is mainly used to invest in long-term assets such as
equipment and machinery for production and the remaining
disbursed to supplement the working capital with nuts inventory

20. used as collateral for export purpose. Another note is that we
also invest heavily in the D2C online platform that requires an
upfront cost of about $70,000 since the beginning. As a result,
total projected start-up expenses would be around $583,000 and
founders also set aside another $100,000 which is almost 20%
of total startup costs for contingencies given the potential
downside of the market during this Covid-19 pandemic.
Summary Statement
Sources of Capital
Founders’ investments
$ 400,000
Bank loans
150,000
Export Credit Line
100,000
Total Source of Funds
$ 650,000

21. Startup Expenses
Buildings/real estate
$ -
Leasehold improvements
3,000
Capital equipment
77,000
Location/administration expenses
60,000
Opening inventory
2,000
Advertising/promotional expenses
55,200
Other expenses
4,000

22. Contingency fund
100,000
Working capital
282,550
Total Startup Expenses
$ 583,750
2. Opening Day Balance Sheet
The opening balance to start would be as minimum as $10,000
before applying for the incorporation license and all founders
are expected to contribute up to their 100% commitment to
reach the total equity of $400,000 before the Bank of America
can disburse the loan of $150,000 for purchase of equipment
and machinery and withdrawal of $100,000 as credit export loan
from the local bank in Vietnam. Further details can be referred
to the below Financial Plan for Balance Sheet and 12-Month
Cash Flow.
3. Owner’s Investment and Collaterals for Loan
Sources of Capital

23. Year 2021
Owners' Investment
Hien Vu
$ 100,000
25%
Henrik Muskus
$ 100,000
25%
Man Fong
$ 100,000
25%
Princeton Oben
$ 100,000
25%
Total Investment
$ 400,000
100%
Bank Loans

24. Bank of America
$ 150,000
Other US Bank
-
Total Bank Loans
$ 150,000
Other Loans
Vietnam Local Bank
(credit line for export)
$ 100,000
Other Local Bank
-
Total Other Loans
$ 100,000

25. 4. Financial Statements - Profit & Loss projection
Also known as an income statement or P&L, the 12-month
profit and loss projection is the centerpiece of this business
plan. Revenues are coming from main four items, roasted
organic macadamia nuts in small-size packages for consumers,
raw organic macadamia nuts in larger package size for
wholesale importers, roasted organic cashew nuts in small-size
packages for consumers, raw organic cashew nuts in bulk
packages for wholesale importers and catering companies, and
imported snacks and imported nuts from US market to be sold in
Vietnam. All assumptions are based on the first-year sales
target of $2 million in 2021 with a margin of around 32%.
Following the projected assumptions, Organicsan can break
even after the first 6 months of operations and make a small
profit with positive cash flow at the end of the first year.
5. Financial Statements - Cash flow projection
Organicsan has an asset-light strategy where we leverage on the
serviced factory for immediate production and saving of set-up
costs. We can reach the target of revenue over $100,000, then
cash flow stays positive, specifically starting after the 6th
month of the first year of operations.
Projected Balance Sheet

26. Balance Sheet stays healthy with debt-to-equity of 1.17 whilst
short-term debt is used mainly for trade financing, and for the
purpose of exporting products from outside into the US.
6. Break-even calculation
In order to recoup the investment cost, monthly revenue should
be no less than $97,333. In another word, the US office must
find ways to get into the sales channel of major retailers.
Otherwise, the Company must focus on wholesale or
importation of raw nuts at the beginning to reach the target of
break-even at the end of the first year of operation in the US.
The company plans to raise $400,000 from the cofounders as
equity, and raise $250,000 as loans from Bank of America and
another US bank as a means to reach the $650,000 needed for
startup expenses.
Repayment Plan
Based on the projected cashflow, the company is projected to
reach positive cash flow after 6 months of operation. At that
time, it will pay down the bank loans, while investing some of
the profits back to the business. As the company grows and
brings in more revenue thanks to expansion, more revenue will
be raised to fund this growth. All debt will be paid down right
away at a rate lower than the company’s returns. Year two is
projected to bring in a profit of $450,000, which will be used to
pay off the debt of $250,000 and provide a return on investment
to equity funds and year three profit of $880,000 will be used to
pay down debt to future investors and loans.
VI. Conclusion

27. In conclusion, our initial plan is to request $250,000 as a loan
to enable us to build our operations. By end of the year 2023,
we plan to raise another $1 million for 30.3 % equity (post-
valuation of $3.3 million) after we have been operating
profitably for 2 consecutive years. The extra funding will be
used for capital expenditure (CAPEX) and new lab investment
for Research and Development (R&D) of healthy, organic
snacks. Please see above the breakdown details of 5-year
projections and below how we spend an extra $1 million for our
future operational activities.
Source: Projected business plan by Organicsan
VII. Bibliography
Kaplan, J.M., & Warren, A.C., (2016). Patterns of
Entrepreneurship Management, 5th Edition. Wiley Publication.
Spacey, J. (2019, May 26). “4 examples of management
reports”. Simplicable. Retrieved from
https://simplicable.com/new/management-reports
Szanto, P. (2018, February 15). “How to promote your YouTube
videos with Google AdWords”. Social Media Examiner | Social
Media Marketing. Retrieved from
https://www.socialmediaexaminer.com/how-to-promote-
youtube-videos-with-google-adwords/
Tayenaka, T. (2020, June 20). “Your guide to creating and
optimizing Facebook video ads”. Entrepreneur. Retrieved from
https://www.entrepreneur.com/article/349719

28. The top 50 snack and bakery companies of 2016. (n.d.). Snack
Food & Wholesale Bakery | Business Strategies &
Solution
s. Retrieved from https://www.snackandbakery.com/top-50-
snack-bakery-companies-2016
Thompson, A. (2018, July 16). 10 major advantages of
QuickBooks for your business. Paygration. Retrieved from
https://paygration.com/10-major-advantages-of-quickbooks-for-
your-business/
USDA. “US Food Imports.” Retrieved on June 06, 2020 from
“https://www.ers.usda.gov/data-products/us-food-imports/
Zheng, Q. (2019, September). “Cookie, Cracker & Pasta
Production in the US”. IBISWorld.
VIII. Appendix
Products
•OngBa Organic, Hand-Picked, Special Roasted Macadamia
Nuts
•Origin: Organic nuts grown in Lam Vien highlands, Vietnam

29. •Package: 16 oz.
•Unit prize per oz: $2.2
•Brand owner: Organicsan (via Macca Dai Viet local partner)
•Royal Hawaiian Orchards Certified Organic Macadamia Nuts
•Origin: Organic nuts grown in Hawaii, USA
•Package: 4 oz.
•Unit prize per oz: $2.45
•Brand owner: McFarms LLC
•Sunfood Organic Macadamia Nuts
•Origin: organic macadamia nuts grown in Australia
•Package: 8 oz.
•Unit prize per oz: $2.45
•Brand owner: McFarms LLC
•Raw, Certified Cashew Nut Kernels
•Origin: Organic nuts grown in Vietnam
•Grades: WW240, WW320, WS, LP, packed in 50 lbs.
•Unit prize per oz: $0.55
•Brand owner: Organicsan (via its affiliate company in
Vietnam)
•Navitas Organic Cashew Nuts,
•Origin: Organic imported from Vietnam

30. •Package: 8 oz.
•Unit prize per oz: $1.25
•Brand owner: NowFoods. Discount 20% for online order
•Kirkland Signature Organic Cashews
•Origin: Nuts licensed/imported from African & Asian countries
•Package: 40 oz.
•Unit prize per oz: $0.85
•Brand owner: Costco
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