SPARKLING HORIZON BOTTLED WATER
Wichita, KS 67207
Sparkling Horizon Bottled Water's business plan contains valuable financial information. Check out the Projected Cash Flow tables for the first three years of operation. The plan's owner has also included a Projected Balance Sheet and a Projected Income Statement, both of which also contain helpful information for anyone interested in starting a bottled water business.
* EXECUTIVE SUMMARY
* INDUSTRY ANALYSIS
* MARKET OVERVIEW
* BUSINESS DESCRIPTION
* PRODUCT DESCRIPTION
* MARKETING STRATEGY
* OPERATING PLAN
* MANAGEMENT AND STAFFING
* FUNDS NEEDED AND THEIR USES
* FINANCIAL STATEMENTS
Demand for bottled drinking water has been growing rapidly since the 1980s, increasing nearly 400% in the last decade according to the Council of Bottled Water Manufacturers, as a result of declining consumer confidence in the safety and quality of municipal water supplies. Bottled Drinking Water
To take advantage of this expanding market for drinking water, Sparkling Horizon Bottled Water has been established to provide home and office delivery of bottled water to the Wichita area. After months of extensive industry and market research, the company has developed a solid business plan to enter the market for bottled water. Sparkling Horizon will generate revenue as a result of the rental and sale of water coolers, as well as for the delivery of the three types of water:pure spring water, distilled drinking water, and purified drinking water in 5-gallon bottles. Management Team
Chantal Fuzet is the owner and president of Sparkling Horizon, bringing years of experience in water bottling and delivery to the company. Her family has operated a thriving bottled water business in Paris for over 15 years, which she helped to run. The company has applied for certification as a woman-owned business, which is in progress. Two key managers have been retained to assist in the operation and expansion of the company: Jean Polsky will serve as the company's Operations Manager, and Robert Blanc will be the Route Driver, an extremely important position as the primary customer contact. In addition, two commission sales associates will be hired to secure new customers. Manufacturing
Sparkling Horizon Bottled Water will be bottled by Rue Bottling of Decatur, Illinois, who will fill the 5-gallon bottles and store them until they are needed by Sparkling Horizon, as well as accepting empty bottles, cleaning them, and refilling them for reuse. By using free trials to entice consumers to install their water coolers, Sparkling Horizon will quickly establish a customer base. The free trial offer will be advertised through a variety of media, and will be promoted at trade shows and mall events. The marketing budget of $25,000 will enable the company to quickly capture a large percent of the potential market. All funding for marketing activities will be generated from the business as earnings from operations, not from start-up capital, and is based on a standard 5% of first-year sales.
Projected Income Statement | 1995 | 1996 | 1997 | 1999 | 2000 | Revenues | 247,928 | 322,721 | 400,992 | 453,092 | 509,801 | COGS | 95,760 | 105,336 | 115,870 | 127,455 | 140,003 | Operating Expenses | 96,250 | 102,104 | 108,379 | 115,111 | 122,342 | Net Income | 50,782 | 110,468 | 172,570 | 207,046 | 244,340 | INDUSTRY ANALYSIS
The market for bottled drinking water has been growing rapidly since the 1980s, increasing nearly 400% in the last decade according to the Council of Bottled Water Manufacturers, as a result of declining consumer confidence in the safety and quality of municipal water supplies. This nationwide trend...