Undercover Color Assessment final business report PDF

Preview

Summary

Final business report...

Description

ADDRESS: 1003, 530 LITTLE COLLINS STREET, MELBOURNE AUSTRALIA, VIC 3000 ABN: 81 602 062 199 ACN: 602 062 199

UNDERCOVER COLORS AUS SIP-CHIP PRODUCTION

TABLE OF CONTENTS BUSINESS PLAN SUMMARY....................................................................................................................... 4 EXECUTIVE SUMMARY............................................................................................................................... 4 THE BACKGROUND.................................................................................................................................... 5 THE PURPOSE............................................................................................................................................ 5 INDUSTRY OVERVIEW............................................................................................................................... 5 THE BUSINESS............................................................................................................................................ 6 THE MARKET............................................................................................................................................. 6 THE FUTURE.............................................................................................................................................. 7 THE FINANCES............................................................................................................................................ 7 THE BUSINESS............................................................................................................................................ 7

BUSINESS DETAILS..................................................................................................................................... 7 REGISTRATION DETAILS............................................................................................................................ 7 BUSINESS PREMISES.................................................................................................................................. 8 ORGANISATIONAL CHART......................................................................................................................... 8 MANAGAEMENT & OWNERSHIP............................................................................................................... 8 KEY PERSONNEL........................................................................................................................................ 8 PRODUCT/ SERVICES................................................................................................................................. 9 INNOVATION............................................................................................................................................. 10 INSURANCES............................................................................................................................................. 10 RISK MANAGEMENT................................................................................................................................. 10 LEGAL CONSIDERATIONS......................................................................................................................... 12 OPERATIONS............................................................................................................................................ 12 SUSTAINABILITY PLAN............................................................................................................................ 13 THE MARKET............................................................................................................................................ 14 MARKET RESEARCH................................................................................................................................. 14 SURVEY QUESTIONS................................................................................................................................. 14 MARKET TARGETS................................................................................................................................... 14 ENVIRONMENTAL/ INDUSTRY ANALYSIS............................................................................................... 15 YOUR CUSTOMERS................................................................................................................................... 15 SWOT ANALYSIS....................................................................................................................................... 16 YOUR COMPETITORS............................................................................................................................... 16 ADVERTISING & SALES............................................................................................................................ 16 OVERALL................................................................................................................................................... 17 THE FUTURE............................................................................................................................................. 17 VISION STATEMENT................................................................................................................................. 17 MISSION STATEMENT............................................................................................................................... 17 GOALS/ OBJECTIVES................................................................................................................................ 17 ACTION PLAN........................................................................................................................................... 18 MS PROJECT.............................................................................................................................................. 18 THE FINANCES.......................................................................................................................................... 19 ASSUMPTIONS.......................................................................................................................................... 19 START-UP COST FOR 2021....................................................................................................................... 19 BALANCE SHEET FORECAST.................................................................................................................... 19 PROFIT AND LOSS FORECAST.................................................................................................................. 19 EXPECTED CASH FLOW............................................................................................................................ 19 BREAK-EVEN ANALYSIS........................................................................................................................... 20 RECOMMENDATIONS............................................................................................................................... 20 REFERENCES............................................................................................................................................. 21

2

APPENDICES............................................................................................................................................. 23 APPENDIX 1 - MS PROJECT PLAN............................................................................................................ 23 APPENDIX 3 - STAKEHOLDER ANALYSIS................................................................................................. 24 APPENDIX 4 - CASH FLOW....................................................................................................................... 28 APPENDIX 6 - BALANCE SHEET............................................................................................................... 29 APPENDIX 7 – START UP COST................................................................................................................ 29 APPENDIX 8 - BREAKEVEN POINT.......................................................................................................... 30 APPENDIX 11: ORGANISATIONAL CHART.............................................................................................. 32

BUSINESS PLAN SUMMARY EXECUTIVE SUMMARY The essence of the report is to educate readers on a new Australian product known as SipChip. The purpose of this product is to identify the presence of drugs or harmful substances within the drink. In practice, liquids are dropped onto the device which will then indicate whether a substance is present or not. Australia has a high percentage of sexual assault: 1 in 5 women have experienced sexual violence since the age of 15 and 1 in 18 men have also fell victim to this. Overall, 7% of students were sexually assaulted on at least one occasion. As there is no product like SipChip in the Australian market, that allows for the company to enter the market with no competition to fill consumer needs. Furthermore, with this product being the only one of its kind in Australia it will aim to 3

remedy the number of harmful offences. Our company Undercover Colors Australia has three main stakeholders which we will keep informed; Clients, Media and Undercover Colors AUS. The company’s SMART objectives consists of; operational objective - Have the contract signed with Undercover Colors USA and received first shipment 1 month prior to opening date, marketing objective - Reaching out to media press such as the news to gain brand awareness and from then on build our presence within the social media world looking to attain 5000 followers on Instagram and Facebook 1 month prior to opening date, financial objective - Meet breakeven point by the end of the first year of operation, Strategic objective - Expand the business by manufacturing the SipChip product in Australia by the 5th year of operation, and lastly our CSR objective - Donate 2% of our annual net profit to 1800Respect as they are a non-profit foundation that focuses on rehabilitation for those who have been a victim of sexual assault. Undercover Colors AUS is classified under the pharmaceutical industry as our product is drug related medical device. The company’s marketing strategy is to target individuals between ages 18 – 30 as they can benefit most from our product. The SipChip will be sold via e-commerce and marketed through platforms such as: broadcast, print media and social media. Regarding the financials, our exact start-up and capital costs are $95,851 and $105,968 respectively. The break-even point will be reached by month 2 of operations, with our company incurring profit by month 3. By the end of year 1 we expect a net profit from ordinary activities before income tax totalling $115,333. Undercover Colors AUS have extensively investigated the idea and believe that this is a product worth investing your time and money into. We stand by our vision statement and will continue to grow in this industry. We’re helping to change the story - Making the world a safer place.

THE BACKGROUND Undercover’s Colors is a diagnostic company. The first commercial product of this company is SipChip. SipChip is a coin sized drug test kit that helps you drink more safely. It brings the user better protected against drug facilitated sexual assault. The company (Undercover Colors) was founded in 2014 in Raleigh. It holds two patents in the U.S for its technology test strips (Cook, B 2018). According to Australian Bureau of statistics in 2005 physical violence of men in Australia was 10%, in 2012 it was approximately 8.3% and in 2016 it was 5.8 %. Women physical violence in Australia in 2005 was 4.5%, in 2012 it was 4.4% and in 2016 it was 3.7%. The big decision of this company is to collaborate with RAINN (Leading the national effort to end sexual violence). This company is the largest anti sexual violence organization. It has partnerships with more than 1000 local sexual services providers. It operates the DoD safe helpline for the department of defence (Berkowitz, S 1994). Purpose of this partnership is to handle the large and complex case by

4

helping each other. We are carrying out this project because it is better to do something good for someone who is in trouble. THE PURPOSE Due to the growing statistics of sexual encounters over many years, by means of introducing SipChip we agree that this product will make an assertion in the market. In addition to playing an essential position in decreasing the number of drug-facilitated attacks. This product works as an act of safety. Moreover, by means of including drops, people can be able to check if their drink has been contaminated or not. Our strategic associate, Undercover colors is our sole producer of this product. We have chosen to work along this corporations as they align with our social duty objectives of being one hundred present animal cruelty free. The coolest factor approximately this product is that it is very affordable. It is safe to use and is appropriate for all age corporations. You will be capable of feeling relief and safety whilst being out along with your buddies as it acts as a second alarm warning. Furthermore, our group includes individuals who were devoted and are absolutely committed to the reason. To make it perfect and secure in Australia we will partner with 1800 RESPECT. This is basically a charity that helps people who are physically violated or sexually assaulted. It is a good way to help the people of Australia who are daily sexually assaulted by the demons of the street. Like a QSuper who is a partner of this charity (Pennisi, M 2016). This charity helps the people 24/7. By doing this it will make our product more famous and everyone will refer us for the safety purpose. That is also a thriving enterprise among all humans, with individuals turning into a greater open to attempting such products in the last decade. INDUSTRY OVERVIEW We had decided to position ourselves within the pharmaceutical industry as the product works by identifying molecular inconsistencies from the usual contents of an alcoholic beverage. The pharmaceutical industry is a constantly growing and evolving phenomena amongst all age groups, set to rise to 25.2 Billion AUD by the end of this year (Drug Discovery and Development, 2020) with the industry covering a broad range of products. As a team we have decided to place ourselves within the enterprise as Sip Chip works as a prevention device for a defensive move to prevent reoccurrence of sexual assaults against individuals. This industry is continuously growing, developing, and gravitating appearance amongst the age group of 16-45 with a bigger notice being placed on the large array (Walsh, C2019). THE BUSINESS Business name: Undercover Colors Australia Business structure: Trust Fund ABN: 81 602 062 199 ACN: 602 062 199 5

Business location: 1003, 530 Little Collins Street, Melbourne Australia, VIC 3000 Date established: 01/01/2020 Business owner(s): Chief Executive Officer:

Ngan Kim

Chief Financial Officer:

Vlatko Trajcheski

Human Resource Manager:

Tessa Monty

Marketing Manager:

Sean Goodier

Relevant owner experience: All of the owners possess business degrees and have experience owning and working in large corporations. Products/services: We are selling the Sipchip product, we anticipate to sell around 60,000 units in the first year. THE MARKET Target market: Our target market is to be able to reach out to individuals between the age range of 18 to 30 as they can benefit most from our product. Marketing strategy: Embarking on this new journey we are fortunate enough to not have any existing competitors in our way to success. Our company will be reaching out to media press, such as the news to gain brand awareness to grasp attention from potential buyers. From then, we will continue to build our online present through social media on platforms such as: Instagram and Facebook. Our product placement will be e-commerce, as it has a larger reach to our customers, and we will not be restricted to opening and closing time. Anyone in Australia will be able to buy and read up on us at their own comfort. THE FUTURE Vision statement: We’re helping to change the story - Making the world a safer place We stand by our vision statement and will continue to help individual by making the world a safer place. Goals/objectives: We intend to sell at least 5,000 units of the product per month for the first year and a total of not less than 60,000 units annually. In the second year, we intend to increase these sales by 5% to 5,250 units monthly and a total of 63,000.

6

THE FINANCES The project initial start-up cost is forecasted at $95,851 and capital cost of $105,968, hence the total start-up cost to make this business operational is capped at $201,819. Each of the members will contribute $25,000 as a capital investment towards the business project, which will total to $100,000. The rest of the total amount, or $101,819 will be obtained through Investment Loan from the bank. According to the forecasted sale, the first year Revenue is seen to be $501,767. Therefore, after one year of operation the profit from ordinary activities before income tax will total $115,333. Finally, the Break-Even point is estimated to be reached during the second month of operation, and most certainly to start occurring profits from the third month of operation. THE BUSINESS BUSINESS DETAILS Products/services: The Sipchip device by Undercover Colours Australia is a medical device used to detect imbalances within alcoholic/non-alcoholic drinks spiked by drugs such as Valium, Xanax, Klonopin and other sedative products. In Australia there are currently no products of the same kind, with date rape becoming an increasingly worrying occurrence we are sure the product will prove successful.

REGISTRATION DETAILS Business name: Undercover Colours AUS Trading name(s): Undercover Colours AUS Date registered: July 18, 2020 Location(s) registered: VIC, NSW Business structure: Trust fund ABN: 81 602 062 199 ACN: 602 062 199 GST: Registed for GST July 18, 2020 Domain names: Sipchip.com Licences & permits: TGA approval for Medical Devices in Australia

BUSINESS PREMISES Business location: While the business will be through online websites, we have purchased a warehouse in which to hold the Sipchip products, the warehouse will sit at room temperature and be located near Melbourne city to ensure fast track deliveries to Sydney and Melbourne, our two biggest potential consumer bases.

7

Buy/lease: We have rented out a warehouse in Kensington for the duration of a year where we are paying $270 a month, the product is not a storage intensive device therefore we can fit our whole product range within a single 20,000 square feet space.

ORGANISATIONAL CHART Human Resource Manager Tessa Monty

Chief Executive Officer (CEO) Vlatko Trajeschki

Marketing Manager Sean Goodier

Chief Executive Officer (CEO) Ngan Kim

MANAGAEMENT & OWNERSHIP Names of owners: Tessa Monty, Ngan Kim, Sean Goodier, Vlatko Trajeschki Details of management & ownership: As a trust fund, the 4 owners will own equal shares to the company (25%). Experience: All of possess business degrees, with Vlatko and Sean holding Finance degrees from Victoria University, we’ve all worked in corporate businesses and know how they are run.

KEY PERSONNEL Job Title

Name

Expected staff turnover

Skills or strengths

HR manager

Tessa Monty

12 months

Business Bachelor Degree from Victoria University

CEO

Vlatko Trajeschki

12 months

Business Bachelor Degree from Victoria University

Marketing Manager

Sean Goodier

12 months

Business Bachelor...