Business Profile
1. Business activity
The proposed business is a manufacturer and retailer of a variety of butter products.
2. Ownership structure
The business will be operated as a small proprietary company by Aurora who will be the sole director and shareholder of the company. A company structure is chosen because personally owned assets are to be kept separate from the business assets owned by the company.
3. Business name
The company will trade under the business name of “Small Maple’s Butter Shop”
4. Business location
The operation will be located at shop premises at 302 Rennin Street, FengHuang Town, which is also the registered address of the company. A company lease will be negotiated for an initial term of two years, with options to renew the lease for a further four years. Under the lease the rent is 5000RMB per calendar month for the first year, to be annually
increased 4%
The shop premises are centrally located in the Remind Street of the shopping centre. The premises are at street level and have a floor space area of 100㎡.
5. Entry strategy
The business will be started up as a new operation. The reason for starting up as a new operation is because it is the cheapest way to establish the business. The proposed date of commencement of business is 5 May.
6. Legal requirements
The legal requirements to operate the business are: ·Business name registration with the state fair trading authority ·Development approval for using the premises from the local council ·Health clearance permit(for food sellers)from the local council ·External advertising sign permit from the local council
7. Business objectives
The key objectives of the business for the next three years are summarized as follows:
Year 1 Year 2 Year 3 Marketing: ·Sales turnover Production: Production capacity used Purchasing: ·Average gross profit margin Personnel: Labor productively ratio Number of personnel (full-time equivalents) Financial: ·net profit ·net cash flow ￥250,000 80% 40% ＄4:＄1 ￥270,000 80% 40% ＄4.15:＄1 ￥290,000 80% 40% ＄5:＄1 2 2 2 ＄2,000 ＄40,000
＄7,000 ＄15,000 ＄18,000 ＄20,000
PURCHASING D.1.Suppliers
High-quality ingredients will be purchased to ensure a quality final product .The main suppliers will be as follows
Supplier 1
Name：Cream Supplies Location：My-Town Duration：45 years
Supplies：vary flavours of cream
Supply terms：COD, quantity discounts
Supplier 2
Name：Byproduct supplies Location：My-Town Duration：30 years Supplies：refined sugar Supply terms：COD
Supplier 3
Name：Peter’s Wholesalers Location：My-Town Duration：25 years
Supplies：condensed milk
Supply terms：COD, quantity discount
D.2.Purchasing policies
Supplies will be purchased monthly according to requires. Purchases will be made by issuing signed purchase orders to suppliers. Purchases will be paid for when a supplier’s invoice is received.
D.3.Purchasing controls
The following purchasing controls will be maintained to ensure purchasing activities are carried out efficiently and effectively.
Checking deliveries against purchase orders to ensure correct quantities and
desired quality of supplies
Checking suppliers’ invoices against purchase orders
Regularly reviewing supply terms and supplier performance.
