Pitching For A New Business

Pearson BTEC HN Diploma in Business

Student Name: Salvino Saji Henry

Student ID: 22002992

Assessor Name: Ms. Navid Akthar

Date of submission:

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 Table of content
Contents
A.P1............................................................................................................................................................ 3
Business Idea 1: Organic Herbal Teas..................................................................................................... 3
Business Idea 2: Customized Eco-Friendly Stationery............................................................................ 4
Business Idea 3: Mobile Bicycle Repair Service...................................................................................... 5
Business Idea 4: Urban Microgreens Farm............................................................................................. 6
A.P2............................................................................................................................................................. 7
Decision Matrix...................................................................................................................................... 7
B.P3............................................................................................................................................................. 7
B.P4....................................................................................................................................................... 11
Legal Aspects.................................................................................................................................... 11
Financial Aspects............................................................................................................................. 13
C.P5...................................................................................................................................................... 16
Kairali Greens Pitch for Funds....................................................................................................... 16
C.P6...................................................................................................................................................... 19
Factors determining viability of business....................................................................................... 19
Factors determining risk of business.............................................................................................. 22
References:........................................................................................................................................... 27

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 Learning Aim A
A.P1
Business Idea 1: Organic Herbal Teas
Activity:
The product expertise area encompasses the production of natural herbal teas derived from locally
cultivated herbs and flowers.

Processes:
 Procurement: Establish partnerships with local farmers to guarantee the provision of recently
harvested organic herbs and flowers.
 Production: Clean and organize herbs in a sterile environment, adhering to prescribed organic
certification protocols.
 Packing: Several suggestions include developing sustainable packing materials to improve beet
preservation and increase environmental sustainability.
 Marketing and Sales: In order to effectively reach customers, the company should utilize social
media platforms, local farmers' markets, or establish an online store.

Organizational Structure:
 Founder/CEO: Accountable for the strategic planning and day-to-day operations of the business.
Responsibilities: Overseeing management and business goals, establishing and maintaining
partnerships and alliances, managing financing and funding.
 The Production Manager is accountable for overseeing the production process and ensuring that
the product adheres to the company's quality requirements.
Responsibilities: Supervising the drying and blending process of herbs, ensuring the herbs are of
high quality, and managing the stocking of herbs.
 Marketing Manager: Develop and implement strategies to improve the product's design and
marketability.
Responsibilities: Managing social networking sites, expertise in internet marketing, developing
and maintaining a positive public image, doing market research with a focus on electrical
gadgets.
 The Sales Representative is responsible for overseeing sales activities and maintaining the
company's customer relationships.

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 Responsibilities: Key tasks of managing a small company online store include optimizing the
store interface, participating in farmers markets, providing a warm welcome to clients, and
promptly addressing their inquiries.
 A Logistics Coordinator is accountable for overseeing the shipping and supply chain operations
of the firm.
Responsibilities: Recording delivery timetables, managing suppliers, supervising the
transportation of products. (FINMODELSLAB, 2024)

Business Idea 2: Customized Eco-Friendly Stationery

Activity:
This business specializes in creating and promoting personalized eco-friendly notebooks, planners, and
greeting cards.

Processes:
 Design: Create distinctive and customized designs for various stationery products with the
intention of selling them.
 Production: It is imperative that they guarantee the use of recycled materials and environmentally
sustainable ink for printing.
 Customization: Customers should be offered a range of design alternatives.
 The sales and distribution of the product occur through both an internet platform and local eco-
friendly retailers, with a total of 55 outlets.

Organizational Structure:
 Founder/CEO: In addition, it assists in establishing the management vision of the organization
and assessing its long-term viability.
Responsibilities: Specifically, overseeing company development, implementing sustainable
practices, and managing the financial aspects of the organization.
 Design Lead: Responsible for formulating product concepts or proposals to ensure the
implementation of high-quality standards.
Responsibilities: Developing and managing products, creating unique selling points, and
designing fashionable styles.
 The Production Manager is accountable for overseeing the entirety of food production operations.
Responsibilities: Overseeing the utilization of supplies that adhere to ECC standards, ensuring
product quality, and coordinating production activities.
 Marketing Specialist: Its purpose is to evaluate and promote the brand and products, ensuring that
people are aware that they are the superior choice available in the market.

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 Responsibilities: Utilizing social media platforms for marketing purposes, specifically targeting
influential persons, and allocating funds for advertising space.
 Customer Service Representative: Assists consumers by addressing challenging issues.
Responsibilities: Managing order processing, addressing and resolving customer complaints and
inquiries, fulfilling client needs and requests.
 Warehouse Manager: Responsible for overseeing the storage and transportation of goods.
Responsibilities: Oversee the administration of materials, handle procurement of orders, and
coordinate shipments. (FINMODELSLAB, 2024a)

Business Idea 3: Mobile Bicycle Repair Service

Activity:
The company specializes in providing prompt bicycle repair services for consumers who are constantly
on the go, ensuring that any issues a rider may face are promptly resolved.

Processes:
 Service Scheduling: Customers book appointments using an e-commerce website or a mobile
application.
 Repair and maintenance involve the process of addressing any issues that may arise with
technological items. This typically entails hiring professionals who will travel to the client's
location, whether it be a residence or a business, in order to resolve these difficulties.
 Components and materials: Equip a mobile juice van with an inventory of essential components
and tools.
 Client Suggestion: Provide additional services that can be offered after the first purchase, together
with reminders about the necessary maintenance schedule for the specific device.

Organizational Structure:
 The Founder/CEO is responsible for overseeing and directing the company procedures and
strategies.
Responsibilities include tasks such as consumer segmentation, client selection, financial
management, and strategic development, among others.
 The Head Technician is in charge of overseeing the repair crew and ensuring the quality of
services.
Responsibilities: Overseeing mechanics' maintenance, providing technical education, conducting
product inspections.
 Technicians are responsible for repairing any problems on bicycles and performing other
maintenance tasks related to bicycles.

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 Responsibilities: Identifying issues, making precise modifications and repairs, and providing
information to clients.
 The Customer Service Manager engages with consumers and oversees appointment scheduling.
Responsibilities: Managing the scheduling of appointments, actively interacting with customers
and communicating with them, and ensuring follow-ups are conducted regarding service
performance.
 The Marketing Coordinator's role is to promote and market the service to potential clients.
Responsibilities: Here are a few examples: Utilizing social media platforms for marketing
purposes, establishing and maintaining relationships with the community, and engaging in
partnerships with local bicycle groups. (FINMODELSLAB, 2024a)

Business Idea 4: Urban Microgreens Farm

Activity:
This enterprise will develop and provide fresh Microgreens to restaurants, retail establishments, and
individual consumers.

Processes:
 Cultivate microgreens using a hydroponic system, preferably in an indoor facility that utilizes
structural farming techniques.
 Harvesting: Similar to other crops, microgreens should be collected at the optimal stage of
growth.
 Packaging: Pack microgreens in eco-friendly containers.
 Scope: Offer microgreens services to nearby customers and vending at farmers' market.

Organizational Structure:
 The Founder/CEO is primarily accountable for overseeing and directing the overall
administration of business strategy and actions.
Responsibilities: Overseeing management, financial operations, and the development of essential
business strategies.
 Farm Manager: In charge of overseeing the management of fodder, feeds, and all other farm
operations.
Responsibilities: Managing the scheduling of planting, monitoring the growing progress, and
assuring the overall quality of the cultivated crops.
 Agricultural Technicians specialize in the cultivation and commercialization of microgreens.
Responsibilities: Planting seeds, providing water, harvesting crops, and managing pests.
 Sales Manager: Responsible for supervising sales activities and managing client relationships.

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 Responsibilities: Engaging in direct sales to firms and organizations, doing sales to individual
customers, and gathering market intelligence.
 Marketing and Community Engagement Specialist: Assists in promoting the firm and actively
engages with the target market, which in this context refers to the general public.
Responsibilities: Utilizing social media platforms for marketing purposes, implementing
promotional strategies and securing sponsorships, collaborating with other brands.
 Logistics Coordinator: He has played a significant role in overseeing delivery management and
optimizing the supply chain.
Responsibilities: Acting as the intermediary between the suppliers and the company, overseeing
the transportation of goods, and monitoring inventory. (Microgreens Farmer , 2024)

A.P2
Decision Matrix

From the decision matrix a conclusion can be drawn that the Urban Microgreen Farm startup idea is the
best out of the four options.

LEARNING AIM-B
B.P3
The startup idea that has been chosen is the urban microgreen farming idea. The company will be named
Kairali Greens.

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Marketing Goals
 Non-Financial Goals:
 Enhance Brand Awareness: Establish Kairali Greens as a reputable and dependable
choice for horizontal farming and herbal farming.
 Customer Satisfaction: It must exceed a 90% rate of customer satisfaction.
 Community Engagement: Foster collaboration with community residents through
participation in community arts initiatives, coordination of social events, partnerships
with local businesses, and interaction with kids from nearby schools.
 Sustainability: Promote the cultivation of staple crops in a manner that is environmentally
friendly, utilizing agricultural techniques that do not harm the environment and prioritize
resource recycling.
 Financial Goals:
 Revenue Goals: Achieve a monthly sales figure of $10000 within the initial year of
operation and thereafter enhance sales by 20% in the subsequent year.
 Profit Margins: Attain a gross profit margin of 25% to showcase the firm's effectiveness
in selling its entire product inventory.
 Customer Acquisition Cost (CAC): The objective is to reduce the customer acquisition
cost and ensure that it remains below $50 per customer.
 Sales Target: Ensure that the sales volume of microgreens exceeds 1,000 units each
month.

Target Market
 Demographics:
 Age range: 25–45
 All genders
 Families with middle-class to upper-class incomes
 Education: University graduate
 Psychographics:
 People who are concerned about their health
 Consumers who are more focused on sustainable living and environmentally sensitive.
This includes individuals who are interested in food, recipes, cooking methods, and how
the finished dish is presented for serving.
 First and foremost, those citizens who reside in large cities and are unable to grow a
garden.
 Geographics:

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  Metropolitan and residential areas
 Realms predominantly inhabited by individuals that prioritize their well-being and the
preservation of the environment in accordance with the concepts of sustainability.

Methods Of Marketing
 Direct Marketing: Promote products or services by utilizing an email newsletter and sponsoring
campaigns on well-known social media platforms.
 Advertising: Market its products by utilizing platforms such as Google AdWords, Facebook
advertisements, and local newspapers.
 Social media marketing involves utilizing platforms such as Instagram, Facebook, and Pinterest
to create and share content that helps foster the growth and engagement of the Kairali Greens
community.
 Form influencer partnerships by collaborating with renowned chefs, influential food bloggers,
and notable personalities in the specific region to enhance the brand's visibility and appeal.
 McKenzie proposes collaborating with the community by organizing urban agricultural
workshops, cooking lessons, and farmers' markets as part of the events and workshops. (Semrush
Blog, 2024)

Methods Of Market Research

 Primary Research:
 Conducting surveys and questionnaires can help gather information about the target
market's preferences and buying habits.
 Focus groups: Organize a focus group discussion to determine the consumer perspective
of microgreens and urban farming in order to gain a deeper understanding of attitudes.
 Quality Assurance: Demographic: Exploring various methods of providing customers
with product samples in order to obtain feedback and enhance product quality.
 Secondary Research:
 Industry Reports: Access comprehensive analyses on the latest advancements in urban
farming, market performance of health food stores, and consumer purchasing patterns.
 Competitor Analysis: Perform thorough study to ascertain the structures of rival
companies, their capacities, and their strategies within the market.
 Market Data: Aid Coughlin Commercials in attaining its goals by analyzing the existing
and prospective markets using data sourced from government and trade organizations.
(indeed editorial team, 2022)

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Marketing Strategies:
 Product:
 Offer a range of familiar microgreens, such as arugula, basil, and cilantro, along with
unique combinations and blends.
 Ensure the quality and freshness of its products through the implementation of
environmentally sustainable farming methods and the use of recyclable packaging.
 Price:
 Revise your pricing plan accordingly and establish premium rates that accurately reflect
the superior quality of your organic items.
 Present a range of subscription services to frequent clients at discounted pricing.
 Place:
 Manage the sales of products via an e-commerce platform and physical stores that
specialize in health foods and dietary supplements.
 To develop direct contact with end customers, the corporation should make an effort to
offer its products via farmers' markets and other local events.
 Promotion:
 It is necessary to register and create a social media profile for the brand, where new
content can be posted and a dedicated group of followers may be built.
 This can be achieved by implementing product placement and showcasing local
influencers and chefs.
 The company should offer discounted prices for important occasions such as festive
seasons or athletic events. (Barone, 2023)

Budgets
Costs:

 Initial setup costs: $20,000 (equipment, seeds, packaging)

 Monthly operating costs: $5,000 (labor, utilities, marketing)

Revenue:

 Monthly revenue target: $10,000 (based on selling 1,000 units at $10 each)

Break Even Analysis:

 The break-even point is a cost analysis method that utilizes fixed and variable costs to determine
the number of units needed to cover all expenses within a given time frame.

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Market Environment
 Internal Environment:
 Advantages: Superior products, environmentally-friendly methods, robust brand
principles.
 Weaknesses: Limited early market penetration, elevated expenses resulting from organic
techniques.
 External Environment:
 Opportunities: Rising market demand for organic and locally-sourced food, as well as a
growing consumer awareness and concern for health.
 Challenges: The presence of well-known brands, changes in market demand, and
alterations in regulations.

B.P4
Legal Aspects
Business Legal Form:
 The legal structure of the entity will be designated as Kairali Greens and will be officially
incorporated as a Limited Liability Company (LLC).
 Benefits: This structure provides protection for the owner's assets against the hazards associated
with the business. It also offers ease of management and allows for taxes of the firm to be carried
out at the owner's level.
 Registration: If required, acquire any essential licenses from either the state or the national
business register, depending on the legislation of the country's jurisdiction.

Liability Insurance:
 General Liability Insurance offers protection for both the physical and legal responsibilities that
may arise from unintentional harm to someone's body, damage to someone else's property, and
injuries sustained by the policyholder themselves.
 Product Liability Insurance offers compensation for losses incurred from the sale of microgreens
and protects against any legal claims related to harm caused.
 Professional Liability Insurance restricts the insurer's liability for any negligence or errors related
to the services provided, such as agricultural advice. (Kagan, 2024)

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Consumer Protection Legislation:
 Ensuring product safety is of utmost importance, particularly when it comes to microgreens. It is
essential to ensure that all foods, including microgreens, are safe and comply with the food safety
requirements set by regulatory authorities. Regularly conducting tests for pollutants and
consistently adhering to proper labeling processes is crucial.
 Compliance with legal regulations is crucial in fair trading, particularly in relation to advertising
and marketing. It is imperative to ensure that product promotions do not include any false or
deceptive material that may mislead buyers.
 Consumer Rights: Establish appropriate policies for returns and refunds, and separate any pricing
and service concerns (Liberto, 2022)

Employment Legislation:
 Employment Contracts: Providing employees with written contracts to establish their power and
responsibility, as well as outlining the fringe benefits and terms of employment.
 The minimum wage should adhere to the salary rates mandated by local regulations regarding
compensation and remuneration for employees.
 Working Hours: Stricter controls may encompass working hours, overtime, and breaks as
stipulated by the law.
 Non-Discrimination: Policies on recruiting and personnel selection must explicitly ban any kind
of discrimination against candidates based on their race, color, sex, age, religion, or physical
impairment.
 Health Benefits: Ensure that the health benefits provided to individuals comply with both the
legal requirements of the country and the company's health policy.

Health and Safety Legislation:

 Workplace Safety: I propose guidelines for equipment management and the implementation of
safety protocols in expanding operations. Always guarantee that personnel are thoroughly trained
in safe practices to effectively minimize workplace accidents.
 Regulations pertaining to health: Maintaining regular hygiene practices, such as thorough
handwashing, ensuring appropriate cleanliness of tools and growth containers, and keeping the
growing space free from potential sources of contamination.
 Protocol for handling urgent situations: Establish protocols for crisis management and ensure that
all employees comprehend and adhere to these protocols.
 Safety Equipment: Provide comprehensive training to employees regarding the suitable protective
gear for each specific task and guarantee that they are adequately equipped. (British Safety
Council, 2023)
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Data Protection Legislation:
 Customer Data: Collect and store the customer data securely, ensuring that it is only used for its
intended purposes, such as fulfilling orders and conducting marketing campaigns, with the
customer's agreement.
 Data protection policies: Create and provide consumers with a comprehensive customer data
privacy policy that clearly articulates and conveys the methods of data collection, processing, and
security, in order to ensure its effectiveness.
 Compliance: It is imperative to adhere to the regulations of data protection such as the General
Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy
Act (CCPA) in the United States.
 Implement measures to promptly detect data breaches and comply with legal obligations by
notifying affected persons. Additionally, provide individuals with the option to decline the
disclosure of their personal information. (UK Government, 2018)

Environmental Protection Legislation:

 Sustainable Practices: Implement environmentally-conscious farming tactics, such as utilizing
organic fertilizers and efficient water management techniques.
 Implement waste management standards aimed at minimizing waste generation and promoting
recycling practices.
 Chemical Usage: It is important to verify that the chemicals utilized in agriculture are
environmentally sustainable and comply with the regulations of the country, while avoiding any
harm to the environment.
 Emissions: Restrict the release of pollutants from all equipment utilized in the process, ensuring
that the emissions of air pollutants remain within the prescribed quality criteria.
 Impact Assessment: It is crucial to conduct environmental scans and evaluate the impact of
farming operations on the environment to eliminate any negative effects (Cheever and
Campbell-Mohn, 2016)

Financial Aspects
Pricing Policy
 Premium Pricing Strategy:
 Product Pricing: Establish a brand identity for Kairali Greens that associates it with
opulence and the highest possible standard of ingrown microgreens. The pricing,
however, will be significantly higher than the usual market price due to the superior
quality and sustainable procedures.

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 Example: Customers have the option to purchase a small pack for $5, a medium pack for
$9, or a big pack for $16.
 Subscription Plans: Offer regular advertisements for a recurring monthly payment and
suggest savings based on the quantity of adverts for loyal clients.
Example: There are three types of delivery packs available: small, medium, and big. The
small pack is supplied once a week and costs $25 per month. The medium pack and large
pack are also delivered once a week, with prices of $45 per month and $80 per month,
respectively.

Sales Forecast
 First Year Sales Forecast:
 Projected Monthly Sales: Anticipate an initial monthly sales figure of 1,000 units, with a
quarterly growth rate of 10%.
 Annual Units Sold: Approximately 15,400 units were sold in the initial year.

Projected Cost
 Initial Setup Cost:
 Equipment: $10,000 (including grow lights, hydroponic systems, and packaging
equipment)
 Seeds and Initial Supplies: $2,000
 Rent and Utilities (3 months): $3,000
 Marketing and Branding: $5,000
 Monthly Operating Cost:
 Rent and Utilities: $1,000
 Labor Costs: $4,000 (including farm manager and technicians)
 Supplies and Materials: $1,500
 Marketing: $1,000
 Miscellaneous: $500
 Total Monthly Operating Costs: $8,000

Break Even Analysis

 Break Even Point Calculation:
 Fixed Costs (Annual): $96,000
 Variable Costs per Unit: $2.00
 Average Selling Price per Unit: $10.00
 Contribution Margin per Unit: $10.00 - $2.00 = $8.00

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  Break-Even Units = Fixed Costs / Contribution Margin per Unit = $96,000 / $8.00 =
12,000 units
 Kairali Greens needs to sell 12,000 units annually to break even.

Cash Flow Forecasts:

 Monthly Cash Flow Forecasts:
 Revenue: Starting at $10,000 and increasing by 10% quarterly.
 Expenses: Starting at $8,000 and increasing slightly with scale.
 Net Cash Flow: Positive from the second month onwards as revenue grows faster than
expenses.

Forecasted Opening and Closing Statements of Financial Position

 Opening Statement (At Launch):
 Assets: $20,000 (initial investment)
 Liabilities: $0
 Equity: $20,000
 Closing Statement (End of Year 1):
 Assets: $50,000 (cash, equipment, inventory)
 Liabilities: $5,000 (short-term loans)
 Equity: $45,000
 Capital Structure:
 Equity: Initial capital of $20,000 from founders.
 Debt: Short-term loan of $5,000 to cover initial setup costs and working capital.

Forecasted Income Statement for the Trading Period (Income Statement

for Year 1)
 Revenue:
 Total Units Sold: 15,400
 Total Revenue: 15,400 * $10 = $154,000
 Cost of Goods Sold (COGS):
 Variable Costs: 15,400 * $2 = $30,800
 Total COGS: $30,800
 Gross Profit:
 Gross Profit = Revenue - COGS = $154,000 - $30,800 = $123,200
 Operating Expenses:
 Labor: $48,000
 Rent and Utilities: $12,000
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  Marketing: $12,000
 Miscellaneous: $6,000
 Total Operating Expenses: $78,000
 Net Profit:
 Net Profit = Gross Profit - Operating Expenses = $123,200 - $78,000 = $45,200

C.P5
Kairali Greens Pitch for Funds
Introduction and Demonstration of Our Product
To whom it may concern, allow me to present to you Kairali Greens, a startup firm that focuses on urban
microgreen farming. This company specializes in producing fresh, organically grown microgreens for
health-conscious customers. The selection comprises a diverse assortment of Microgreens, including
Sunflower, Basil, Coriander, Parsley, Rocket, and Kale. These Microgreens are both recyclable and cost-
effective, offering the additional benefit of being cultivated using modern eco-friendly agricultural
methods. Our company offers clients a selection of freshly grown microgreens, including arugula, basil,
cilantro, and various combinations. These microgreens are packaged in recyclable containers.

Market Research Data

Market study reveals a growing preference among consumers in our target areas for purchasing organic
foods and locally sourced products. Presently, the market for microgreens is seeing substantial expansion,
with a projected compound annual growth rate (CAGR) of 7% in the worldwide market. There will be a
1% change between 2021 and 2028. The target demographic consists of young individuals between the
ages of 25 and 45 who are part of the rental population. They lead a healthy lifestyle and are open to
adopting ecological responsibility. We have also seen a deficiency in the local markets, whether it pertains
to collaborating with restaurants or supplying fresh, organic, and locally sourced items.

Cost Structure
Our cost structure includes:

 Initial Setup Costs: $20,000

 Monthly Operating Costs: $8,000
 Rent and Utilities: $1,000
 Labor Costs: $4,000
 Supplies and Materials: $1,500
 Marketing: $1,000
 Miscellaneous: $500

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Revenue Model (Return on Investment):
We suggest using a premium pricing approach, offering small packs at $5, medium packs at $9, and large
sizes priced at $16. We provide a subscription plan that allows for deliveries to be delivered at a
customized frequency, with a corresponding monthly charge. Regarding the sales projection, the projected
monthly revenue is $10,000 with a quarterly increase of 10%. Based on our calculations, our company
will achieve the break-even point when we sell 12,000 units annually. The projected adjusted gross sales
for the initial year of operations amount to $154,000, resulting in a net profit of $45,200. This indicates
that the firm is highly lucrative.

Market Plan
Our all-encompassing marketing strategy comprises:

 Direct Marketing: Email newsletters operate 24/7 without any breaks, and targeted social media
campaigns are also rather common.
 Advertising: The primary objective on social media platforms is to reach specific audiences on
Google and Facebook, as well as through local newspaper advertisements.
 Social media: The purpose is to encourage individuals to generate and share valuable material in
order to foster community development on platforms like Instagram, Facebook, and Pinterest.
 Collaborations with influencers: Utilization of regional influencers and gastronomic bloggers as
collaborative partners for sharing material.
 Activities and Workshops: Coordination of urban agriculture educational institutions, production
and marketing of meals, and participation in farmers' markets.

Competitor Analysis
Kairali Greens sets itself apart from other established companies in the organic food market through:

 Exceptional Quality: Providing the highest-grade microgreens sourced directly from the farm,
ensuring optimal freshness, nutritional value, and cultivation using natural methods.
 Community Engagement: Enhancing education by organizing seminars and actively participating
in community events to strengthen relationships with stakeholders.
 Premium Branding: The transformation of Kairali Greens into a specialized, themed, and
environmentally conscious product packaged in green materials.

Risk Analysis
 Market fluctuations have been mitigated by diversifying the consumer base and offering
subscription-based services.
 Competition is addressed by emphasizing the unique value and superior quality of our products
compared to those of our competitors.
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  Supply chain disruptions can be mitigated by implementing outsourcing strategies that involve
engaging numerous suppliers and maintaining sufficient stock of essential commodities. This
approach ensures that both your production needs and those of your partners are adequately met.

Projected Financial Statements

 Income Statement for Year 1:
 Revenue: $154,000
 COGS: $30,800
 Gross Profit: $123,200
 Operating Expenses: $78,000
 Net Profit: $45,200
 Opening Statement of Financial Position:
 Assets: $20,000
 Liabilities: $0
 Equity: $20,000
 Closing Statement of Financial Position (End of Year 1):
 Assets: $50,000
 Liabilities: $5,000
 Equity: $45,000

Team
The members of our team are highly skilled professionals that possess a wide range of experience and are
deeply passionate about their work.

 The Founder/CEO assumes a coordinating role and oversees the operations of organizations in
accordance with the set strategy.
 Farm Manager: Supervises the daily activities and ensures efficient production for a high-quality
harvest.
 Agricultural Technicians specialize in the cultivation, harvesting, and overall management of
several types of crops.
 The Sales Manager is accountable for overseeing the sales of the items, as well as managing the
hosting and catering services for clients.
 Marketing and Community Engagement Specialist: Social media has several advantages,
including increasing brand awareness and promoting social interaction among the targeted local
community.

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  The Logistics Coordinator is accountable for the efficient and effective distribution and
transportation of products throughout the market.

By investing in Kairali Greens, you are endorsing a business endeavor that merges financial gain with
environmental responsibility. Our primary objective is to create a beneficial influence on our community
and the environment by providing our customers with top-notch, nourishing microgreens. Participate in
our efforts to cultivate a more sustainable and environmentally friendly future.

C.P6
Factors determining viability of business
Market Demand
 Positive Indicators:
 A global research study on the microgreens market indicates that there will be a growth
trend with a Compound Annual Growth Rate (CAGR) of 7% in the coming years, namely
from 2021 to 2028. This growth trend highlights the increasing market need for this
technology.
 The high consumption demographics typically consist of younger and more affluent
consumers residing in urban areas. These individuals have a greater interest in healthy
eating and organic food compared to earlier generations.
 The target customer consists of health-conscious individuals aged 25 to 45, who represent
a growing and very willing group to pay premium rates for products of superior quality
that are sustainably derived.
 Challenges:
 The text explains that market demand can vary depending on seasonal factors and other
patterns related to the public's increasing concern for their well-being.
 Overall Assessment:
The high demand for Kairali Greens, together with the expansion of its market region, is
enhancing the prospects of the company. (Taylor, 2014)

Competition
 Positive Indicators:
 Product distinction is achieved by offering items that are of superior quality, made using
ecologically sustainable materials and methods, and have a strong appeal to customers
and the community.
 The target market values sensitivity in pricing and brand differentiation, as well as the use
of environmentally friendly materials in packaging.
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  Challenges:
 The local merchants or established brands may benefit from a stronger relationship with
the public or have a strong presence in the market.
 The motivation to create superior goods and services in order to surpass competitors that
provide comparable products.
 Overall Assessment:
 A competition that is easily analyzable and comprehensible, with well-defined and
implemented competitive C.D.Ps.

Financial Stability:
 Positive Indicators:
 The fixed expenditures are feasible; they just necessitate a $20,000 initial investment and
$8,000 monthly for operations.
 The projected total sales for the first year are estimated to be $154,000, with a net income
of $45,200.
 In order to reach the breakeven point during the first year, it is necessary to manufacture
an average of 120,000 sets of sneakers annually.
 Challenges:
 The initial revenue generated by the boot may be constrained, contingent upon the
duration required to achieve the break-even threshold.
 Emphasizes the importance of generating consistent revenue through subscriptions and
progressively growing sales to achieve profitability.
 Overall Assessment:
 It adheres to the principles of financial profitability, but may necessitate meticulous
financial management in order to attain sustainable profitability. (Burnett-Nichols,
2023)

Operational Efficiency
 Positive Indicators:
 An optimal cost structure is implemented, prioritizing the production of high-quality
products and maximizing the efficiency of resources, while also demonstrating a
commitment to environmentally friendly practices.
 Employing cutting-edge methods such as vertical farming and hydroponics to increase
agricultural output twofold.

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  Establish a supply chain and logistics system to enable and streamline the functions and
operations of this company.
 Challenges:
 The company places a strong emphasis on using organic and high-quality materials, and
ensures that its supply chain management follows strict standards.
 Additionally, it is important to consider the maintenance requirements of such equipment,
as well as the possibility of temporary partial or complete shutdown of production.
 Overall Assessment:
 It possesses significant operational efficiencies, but its sustained consequences
necessitate a robust supply chain management capability for complete implementation.
(Marks, 2023)

Management Team
 Positive Indicators:
 The protagonist is the Director/Manager responsible for establishing the enterprise's
strategic objectives.
 Competent production supervisors and agricultural technicians ensure the achievement of
optimal farming results.
 We are seeking exceptional sales and marketing professionals who has the skills and
expertise to get funding and effectively oversee the expansion of our community.
 Challenges:
 Lack of expertise could also pose a challenge due to the team's small size, potentially
constraining its ability to grow as the business expands.
 Outsourcing refers to the practice of delegating certain tasks or duties to external
individuals or organizations. Resource concentration, on the other hand, involves
focusing resources on specific individuals and their assigned obligations.
 Overall Assessment:
 The management team possesses substantial expertise suitable for the firm; yet, there
could be challenges arising from the expanding business in terms of managing
personnel's tasks and responsibilities. (Rahul, 2023)

Conclusion
After analyzing the important elements that determine the viability of Kairali Greens, it is evident that the
firm is extremely viable. There is a strong market demand, competition is controllable, financial

21
projections are sound, operations are efficient, and the management team is skilled. In order to guarantee
sustained success, it is important to:

 Regularly observe market changes and consumer preferences in order to maintain a competitive
advantage.
 Ensure strict adherence to financial principles and properly oversee the movement of funds,
particularly during the early phases.
 Allocate resources towards enhancing team development and strengthening the capacity to
effectively manage the expansion of operations.
 Enhance the connections within the supply chain to guarantee a steady and reliable flow of high-
quality inputs.

To attain sustainable growth and establish itself as a prominent brand in the urban microgreens industry,
Kairali Greens can focus on these specific areas.

Factors determining risk of business

Managing Cash Flow
 Risks:
 Typically, cash flow is expected to become more restricted during the initial weeks or
within the first two months until the break-even point is reached.
 This suggests that despite the presence of significant upfront expenses and ongoing but
little operational expenses, financial managerial tasks must be executed with prudence.
 Expenses and cost of sales: relying exclusively on obtaining regular sales revenues and
promptly collecting receivables to provide strong availability.
 Mitigation Strategies:
 Efficiently managing cash flows is crucial for the overall performance of any firm.
Therefore, it is necessary to establish processes that will ensure improved tracking of
expenses and income.
 Establishing an emergency or contingency fund to address sudden and significant issues
that may arise.
 It is crucial to provide customers subscriptions for a particular duration in order to ensure
consistent revenue. (Tipalti Inc., 2023)

Finding Your Niche and Marketing Your Value

 Risks:

22
  The primary obstacle confronting Kairali Greens is the lack of ability to establish a
distinct competitive posture that distinguishes the company from other participants in the
expanding organic food market segment.
 Challenges and barriers related to effectively conveying the need of charging a premium
for value and adopting sustainable business strategies.
 Mitigation Strategies:
 Market research should be undertaken to gain insights into the societal norms,
preferences, and values of the target market.
 Adopt a strong brand statement that aligns with the company's objective and vision,
emphasizing high-quality products, ecologically sustainable practices, and a dedication to
the local community.
 It is crucial to utilize promotional messaging to inform potential clients about Kairali
Greens' items that would more effectively meet their wants. (Shopify, 2022)

Ineffective Sales Funnel

 Risks:
 If the funnel is not appropriately designed, there is a higher probability of experiencing
low conversion rates among customers.
 Challenges encountered in transitioning from awareness to completing the purchasing
process.
 Mitigation Strategies:
 It is also advisable to examine the funnel and identify any occurrences where the system
is experiencing a decrease in speed.
 Implement data-driven strategies for sales and marketing to improve customer
experiences and interactions.
 Establish methods for obtaining feedback from customers to improve the sales process.
(Close, 2024)

Competition
 Risks:
 Existing local competitors or well-known brand names may possess a certain degree of
brand recognition, which could impede the expansion of a new company.
 Newly introduced products in the market are consistently susceptible to certain market
disruptions.

23
Mitigation Strategies:
 In order to expand the brand, it is crucial to prioritize the promotion of high-quality
products and ensure consumer happiness.
 Focus on enhancing and expanding products to surpass the competition in the market.
 Analyze the current actions of competitors and their positions in the market to determine
the appropriate adjustments to be made.

Lack of Scalability
 Risks:
 The firm lacks sufficient execution capabilities to effectively extend its operations on a
big scale.
 The difficulties pertaining to product quality and standards arise as the business
experiences growth and increases its range of offerings.
 Mitigation Strategies:
 Implementing optimal methods: Create innovative and efficient technical and process
solutions from the beginning.
 Create and execute strategies that incorporate the automation of processes and the
integration of technologies to enhance workflow efficiency.
 Develop a strategic plan for a progressive expansion that ensures regulated growth and is
not influenced by any external changes. (linkedin, 2024)

Overcoming Red Tape

 Risks:
 Deciphering regulatory duties can be quite challenging, and when there is a discrepancy
in compliance, it is likely to need a substantial amount of time and money.
 The risk linked with operational constraints, such as lengthy waiting times to get
necessary permissions and certifications.
 Mitigation Strategies:
 Although licenses and permits are not required, it is important to stay informed about the
current legal and regulatory requirements.
 To enhance job efficiency in this area, get guidance from legal and regulatory experts.
 Establish practical protocols for management and adherence to prevent them from
overwhelming the daily workflow, while still allocating sufficient resources and time for
their proper execution.

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Operational Challenges
 Risks:
 Excessive dependence on senior suppliers and strict adherence to high-quality inputs in
the supply chain.
 The utilization of human labor in the manufacturing system might result in possible
periods of inactivity or disturbances in production machinery and procedures.
 Mitigation Strategies:
 Establish a diversified supply chain to cultivate enduring partnerships with multiple
vendors.
 To prevent expensive repair expenses or equipment failures, it is important to regularly
perform maintenance on all equipment.
 Therefore, it is vital to establish an adaptable contingency plan to effectively manage any
disruptions in operations. (Staff, 2022)

Entrepreneurial Burnout
 Risks:
 Consistently experiencing great pressure can be detrimental to the health of an individual
or important team members, hence increasing the founder's susceptibility to burnout and
associated dangers.
 Potential ramifications that may arise throughout the decision-making process, impacting
organizational efficacy and the overall performance of the company.
 Mitigation Strategies:
 Establish productive professional relationships and provide assistance to individuals,
while recognizing the significance of maintaining a healthy equilibrium between work
and personal life.
 Collaborate with other colleagues and ensure that you have competent staff members who
can effectively manage their allocated tasks, so alleviating the burden on yourself.
 Implement stress reduction and health promotion initiatives among the staff. (Mol,
Pollack and Ho, 2018)

Opting for Quick Sales Tactics Rather Than Long-Term Development

 Risks:
 Occasionally, sales strategies that are effective in the short term may lack foresight and
have the capacity to harm a company's reputation or diminish consumer loyalty.
 There is a risk of short-termism when stockholders prioritize immediate financial gains
over the long-term growth and progress of the company.
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  Mitigation Strategies:
 Create a strategic management plan for a business with the objective of achieving long-
term goals and objectives, while also ensuring consumer needs are fulfilled.
 While it is necessary to take immediate action on sales initiatives, it is also important to
provide resources for brand development and customer interactions.
 Sales strategy control is used to evaluate the impact of its actions on a company's
strategic objectives. (WorldFirst, 2022)

Expansion into New Markets

 Risks:
 Expanding into unfamiliar areas may be a precarious endeavor, particularly for
organizations that fail to undertake thorough research and strategic planning.
 Confronted with the possibility of modifying products and sales strategies to adapt to
evolving customer demands and emerging regulations.
 Mitigation Strategies:
 Ensure that you conduct your own comprehensive market analysis and thoroughly
explore the potential for entering new areas.
 Segment the markets based on different global regions and adapt the product to cater to
local preferences, desires, and legal regulations.
 Analyze the objectives for the implementation of dual-entry techniques that can be
gradually accomplished to create first entries while safeguarding against a large-scale
undertaking.

References:

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