BUSINESS PLAN

Black Tea Xtra

NOVEMBER 22, 2019

DELIGHT VENTURE
UCC, CAPE COAST

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 BLACK Tea EXTRA
DELIGHT VENTURE
CAPE COAST,
GHANA

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 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by

_____Delight Company ltd____________________ in this business plan is confidential;
therefore, reader
agrees not to disclose it without the express written permission of ______ Delight Company ltd
___________________.

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to ______
Delight Company ltd ___________________.

Upon request, this document is to be immediately returned to ___ Delight Company ltd
______________________.

___________________ Signature

__Adomako Frimpong Godwin_________________

Name (typed or printed)

___________________
Date: November 22, 2019

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 Table of contents

Executive Summary…………………………………………………….5

Objectives, Mission and Vision…………………………………………6

Keys to Success…………………………………………………………7

The Opportunity…………………………………………………………7

The Product………………………………………………………………7

The Market……………………………………………………………….8

Competition………………………………………………………………9

Strategy …………………………………………………………………..9

Management……………………………………………………………...10

Business Model…………………………………………………………..10

Company summary……………………………………………………….11

SWOT Analysis…………………………………………………………..11

Critical Risks, Problems and Assumptions……………………………….13

Financial plan……………………………………………………………..15

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1.0 Executive Summary

Delight Venture is a group-run start-up business dedicated to providing excellent quality tea and
after sales services to the residents of Cape Coast, in a manner that generates fair and equitable
returns for present and future owners, and superior value to our customers. We specialize in
creating and offering a variety of deliciously different tea flavors.

Local businesses are slowly catching up with this new opportunity. We are opening a new tea
production venture and delivery service that will focus on the Local Cape Coast community.
Delight Venture will offer a better product, at a reasonable price, and will deliver it on time to the
customer's door. Black tea Xtra is a powder mix of very essential ingredients that can be made a
refreshing beverage just by the addition of warm water. The major ingredient, which even
influenced the product’s name, is the black seed. Other ingredients include honey powder (instead
of sugar), nutmeg, cinnamon, milk powder, ginger, cardamoms, star anise and flavor. Because of
variety and being cognizant of preferences, the Black tea Xtra comes in three different flavors;
strawberry, chocolate and mocha. As the business begins its infancy, it will be targeted to students
and workers in Cape Coast (in the Central region of Ghana). Using the University of Cape Coast
(UCC), whose population (including workers) is estimated around 25,000 as a starting point, our
product will consequently gain the competitive edge it needs to penetrate the nationwide market.

There are various strategies that we will implement in order to successfully achieve our goals.
With regards to production, the major strategies that we intend to employ are the differentiation
and cost leadership strategies. Our business Organization is seeking to adopt the bricks-and-
clicks model where we have both an online and offline presence that allows customers to pick up
products from physical stores while they can also place an order online. Delight company limited
is expected to maintain a good and healthy financial position over the next three years. The
business would initially be financed by member’s contribution and other donations from family
and friends. The company would also finance growth through its estimated cashflows.

A total estimate of 500 cedis from members and contributions from friends and family precisely
200 cedis.

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1.1 Objectives

• To attract a minimum of 100 regular customers per day for Black Tea Xtra and
delivery, in the first year of operations;
• To offer our customers excellent tea services, at a reasonable price, and provide
outstanding customer experience, measured by minimum 5 percent yearly sales
growth, and customer complaints less than 1 percent.
• To generate positive cash flow from operations, and at least 10 percent net profits
to sales.

1.2 Mission and Vision

Delight Venture’s mission is to offer residents of the Ghanaian community the best tea
services. We are committed to providing the service quality and value that our customers
expect.

Delight Venture will use its strategy, staff, and systems to provide each customer with a
seamless three-part customer experience -- service product, service environment, and
service delivery -- each part of which will meet or exceed our customers' expectations.

Our vision is to become the first choice of tea in Ghana, and a respected company -- as
measured by our customers, our employees, and the community we live in.

Our values are critical to our success. They are the strong foundation of Delight Venture,
they define who we are, and set us apart from our competitors. They underlie our vision of
the future. These values include:

• Performance excellence. We act like responsible owners, always seeking to meet

or exceed expectations.
• Teamwork. We act as a team, committed to each other, and bound by trust and
loyalty.

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 • Integrity. We treat one another, and all our stakeholders with dignity and respect.
Honesty, ethical behavior, and integrity are fundamental characteristics of our
business conduct.

1.3 Keys to Success

Our keys to success are:

• Excellent product and service that will build and maintain customer loyalty.
• A business location that will assure high company visibility and a high flow of
customers.
• Proven management ability to successfully run a similar business.
• Our commitment to continuous improvement and total quality services.

1.4 The Opportunity

Learning from observation and experience, we have noticed that Ghanaians are usually
reluctant to take frequently proposed natural herbs and medications which are very
beneficial to the human body. Some think they are bitter; others believe they are ineffective
and others simply care less.

It is from this identified problem that our visionary team has come up with a way to help
mitigate this problem by providing the Ghanaian community with a refreshing nourishment
which contains an essential and ever natural ingredient known as the black seed. It is in our
belief that the Ghanaian youth are the workforce of our country and hence for our country
to productively progress, the youth, on whom that depends, need to be physically healthy.

1.5 The Product

Black tea Xtra is a powder mix of very essential ingredients that can be made a refreshing
beverage just by the addition of warm water. The major ingredient, which even influenced
the product’s name, is the black seed. Other ingredients include honey powder (instead of

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 sugar), nutmeg, cinnamon, milk powder, ginger, cardamoms, star anise and flavor. Because
of variety and being cognizant of preferences, the Black tea Xtra comes in three different
flavors; strawberry, chocolate and mocha.

Black seed grows from the nigella sativa and has been used for health remedies for
thousands of years. Its presence in our special product will help reduce or mitigate high
blood pressure, high cholesterol, rheumatoid arthritis, asthma, stomach upset, cancer and
many other problems. The black tea Xtra has innumerable health benefits that will be very
helpful in our lives. Black seed, if taken alone, is very bitter. This is why our team of
experts have skillfully blended it with other ingredients to dissolve the bitter taste of the
black seed. Therefore, not only does the Black tea Xtra have many health benefits, it also
has a great sense of taste and refreshment. So, to the customer, the Black tea Xtra is food
and medicine.

1.6 The Market

The Black tea Xtra is a very thoughtful product that was prepared for the whole Ghanaian
community, but that is more visionary. As the business begins its infancy, it will be targeted
to students and workers in Cape Coast (in the Central region of Ghana). Using the
University of Cape Coast (UCC), whose population (including workers) is estimated
around 25,000 as a starting point, our product will consequently gain the competitive edge
it needs to penetrate the nationwide market. It is well known that there are other
tea/beverage products in the market which will be quite the competition for our product.
However, the core competencies of our business organization and the innovativeness of
our product give us the competitive edge that will allow us to swoop the tea/beverage
market. Our production and marketing team came up with an effective and efficient way
to attain cost leadership in the market and because of that, we plan to use the penetrative
pricing method, thereby pricing it a little bit below the current average price of similar
products. Upon investigation, we found out that the average price for similar products is
one (1) cedi, and hence, our product will have an initial launch price of eighty (80) pesewas
per sachet.

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1.7 Competition

The existing competition is in the market is very strong and impossible to neglect. Firms
like Nestle Ghana ltd. and Atona Foods are already established in the market and have
instituted a very strong brand positioning in the minds of Ghanaians. There are also other
firms, not equally as popular or large, but are successfully offering similar products in the
market like impra tea. The most common feature of most of these existing products is that
they seek to only provide a tasteful refreshment to the body without any health benefits.
What gives us the competitive edge is the fact that the Black tea Xtra does not only provide
the great sense of taste, it most importantly resolves unrecognized and unfelt health
problems in the body. Other firms may try and even succeed to bring similar products to
the market later, but once our product is established in the market, we have the ‘first mover’
advantage which solidifies our position in the market.

1.8 Strategy

There are various strategies that we will implement in order to successfully achieve our
goals. With regards to production, the major strategies that we intend to employ are the
differentiation and cost leadership strategies. By differentiation, we mean to make our
product unique, both in function and appearance in order to distinguish it from the already
existing products in the market. Brand name is not good enough a factor of differentiation,
so not only will our product bear a different name in the market, what it does will be
unparalleled and its appearance will be unique. Also, we have specific cost goals that we
want to achieve and because of that we are using the possible least cost methods for
developing our product. For instance, for bulk purchase purposes, we will make a
convenient box like the one Lipton uses and keep within it sachets of Black tea Xtra and
hence reducing the cost of expensively designing each sachet. Once the product has been
completed, we will price it a little sub-standard in order to penetrate the market (as
discussed in the market session). Marketing will be done both online and through physical
advertisements and exhibitions. Product delivery will be made to customers who order
online (at a fee) and those who purchase in bulk (free). Our brand secret and competitive
advantage will reside in the core competence of our human resource and for that matter,
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 we will concentrate on properly incentivizing our workforce in order to achieve the goals
of the business.

1.9 Management

Our management is expected to use resources wisely, operate profitably, pay debts, and
abide by laws and regulations. Our management philosophy is based on team work,
responsibility, and mutual respect. People who work at Delight Venture would want to be
part of our team because we operate in an environment that encourages creativity,
diversity, growth, and performance.
Paul Kofi Barnie Junior will be the manager of Delight Venture assisted by Emmanuel
Toe.
Both of them have successfully owned and operated a business in Cape Coast, they have
more than three years relevant experience in business.

1.10 Business Model

Our business Organization is seeking to adopt the bricks-and-clicks model where we have both an
online and offline presence that allows customers to pick up products from physical stores while
they can also place an order online. The basic idea behind this mode of operation is that because
we intend to serve a wider market but cannot establish physical stores everywhere across the
country, we will create an online platform where customers who are not close to our physical
storehouses can place an order online and delivery will be made to them as quickly and as
convenient as possible. We will have a well-designed web page on which our products will be
displayed. As part of the web design, there will be an active order link where visitors of the page
can place an order after enquiring about the product. While we go online, we will also recognize
the importance of ‘human touch’, that is, the appropriate and good services that our customers
deserve. We will also create a customer base online which will help us to easily identify our
customers who have visited the page before. This will help us to deliver good after sales support.
We believe that the combination of both physical and technological trade will allow us a wider
market reach within the shortest possible time.

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2.0 Company Summary

Delight Venture is a new tea producing company in Ghana aimed specifically at providing the
Ghanaian community with a healthy and nutritious tea which comes in three different flavors. The
company shall be situated at the University of Cape Coast in the Central Region of Ghana. It shall
be managed by Paul Kofi Barnie Junior who has more than three years’ experience in the industry.

NAMES AND ADDRESSES OF PRINCIPALS

NAMES ADDRESS
ADOMAKO FRIMPONG GODWIN ACCRA
AKUA DAMOAH GIFTY TT/30/C OBUASI
BARNIE PAUL JUNIOR KOFI KUMASI
TOE EMMANUEL CAPECOAST
PERPETUAL OWUSU OTABIL ACCRA ABLEKUMA NORTH
RUTH OTIPONG BLOCK 2, SUNYANI
PATRICK JONES TAKORADI
LYDIA ABENA NYARKOH CAPECOAST NORTH
VICTORIA BOTCHWEY KASOA ACCRA
OHENEBA ADUSEI POKU ATONSU KUMASI

2.1 SWOT Analysis

The SWOT analysis provides us with an excellent opportunity to examine and evaluate the
internal strengths and weaknesses of Delight Venture. It also allows us to focus on the
external opportunities presented by the business environment as well as potential threats.

Next sections explain major strengths, weaknesses, opportunities, and threats that Delight
Venture should be aware of.

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2.1.1 Strengths
Delight Venture has a valuable inventory of strengths that would help it to be successful.
These strengths include:

a) location

b) excellent quality of modern-style tea that is currently not available in the Local
area

c) management's proven experience in successfully running a similar business in Cape

Coast
d) state-of-the-art, energy-efficient tea preparation equipment and technology

e) clear vision of the market needs: we know the customers' needs, we are familiar with
the latest technology, and we can offer the tea services that would bring the two together

2.1.2 Weaknesses
Strengths are valuable, but it is useful to realize the weaknesses. We have identified
some of our weaknesses:

a) cost factor associated with keeping state-of-the-art equipment and technology

b) we are new in town
c) start-up challenges

d) limited operating capacity during peak sales periods

2.1.3 Opportunities
Delight Venture's strengths and the awareness of its weaknesses will help it capitalize on
emerging opportunities. These opportunities include, but are not limited to:

a) fast growing population in Local Bay area

b) no other specialized tea producing company within a five-mile radius from our chosen
location
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 c) a large segment of low-to-middle class population, and more than five hundred
businesses in the area

d) no competitors offer tea in the surrounding area

2.1.4 Threats
Threats the Delight Venture should be aware of include:

a) slow recovery process of the economy from the current crisis

b) changes in the business environment that might reduce our sales

c) higher taxes in the future

d) the commercial property is leased, not owned by our company

e) tight credit times, higher interest rate, and higher inflation rate than predicted.

3.0 Critical Risks, Problems and Assumptions

3.1 Risks

3.1.1 External; These risks come from the environment in which the business is operating and
the risks are difficult to manage or control.

3.1.2 Buying Patterns; consumers buying pattern changes at certain times due to new entrance
in the markets and an urge to explore other products but delight company has put in place
measures to diversify the taste and introduce new flavors to make its tea more attractive so as to
boost and maintain sales.

3.1.3 Competition; There is high risk that other tea producers would enter into the market. Our
cost differentiation and pricing method with improvements in the product overtime would
manage to put us ahead of our competitors.

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3.1.4 Technology; New technologies for producing tea which makes production efficient and
effective comes at high prices which tend to increase production cost and affect the profit margin
of the business.

3.2 Internal

3.2.1 Personnel

The staff of Delight company are undergraduate students in the university who are still
enhancing their skills but the competitors out there are skilled with lots of experience that the
students don’t have. There are many techniques put in place to better the skills of the members to
outweigh the competitors.

3.2.2 Cash Flow Deficiency

One of our major concerns is to have sufficient cash in hand to meet our daily expenses and
payment obligations so as to run the business smoothly.

3.2.3 Financial Plan

Delight company limited is expected to maintain a good and healthy financial position over the
next three years. The business would initially be financed by member’s contribution and other
donations from family and friends. The company would also finance growth through its
estimated cashflows.

A total estimate of 500 cedis from members and contributions from friends and family precisely
200 cedis.

3.2.4 Sources and Uses of Fund

Member’s contribution, support from family and friends and an application for government
funding. The contribution from the members would be used in the production of the tea and the
other income will be used in packaging, preserving the tea produced.

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 3.2.5 Financial projections

ITEM AMOUNT (GHS)

Start-up 1500
Requirements

Start-up Expenses
Legal 700
Packing Materials 200
Kitchen Equipment 100
Promotion 100

Other Expensed Equipment 50

Office Supplies 50
Other 100

Total Start-up Expenses

Start-up Assets 200
Cash Required 1500
Start-up Inventory 200

Long-term
Total Assets 300
Total Requirements 2000

DELIGHT VENTURE

BUDGET FOR THE VENTURE

ITEM QUANTITY PRICE AMOUNT

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 700
BUSINESS
REGISTRATION

INSURANCE 500

PRODUCTION MATERIALS:

BLACK SEED

WATER 5 BAGS 3.00 15.00

HONEY POWDER 5 20.00 100.00

CINAMON 2 10.00 20.00

NUTMEG 1 5.00 5.00

MILK POWDER 5 20.00 100.00

GINGER 5 10.00

FLAVOR 40.00

STAR ANISE 20.00

COST OF PACKAGING 150.00

MISCELLANEOUS 100.00

TRANSPORTATION 70.00

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SITE 200.00

GROUP MEMBERS

NAMES INDEX NUMBERS

ADOMAKO FRIMPONG GODWIN (Group leader) SB/ADM/16/0123
AKUA DAMOAH GIFTY SB/ADM/16/0006
BARNIE PAUL JUNIOR KOFI SB/ADM/16/0141
TOE EMMANUEL SB/ADM/16/0021
PERPETUAL OWUSU OTABIL SB/PCM/16/0034
RUTH OTIPONG SB/ADM/16/0002
PATRICK JONES SB/HRM/16/0055
LYDIA ABENA NYARKOH SB/PCM/16/0031
VICTORIA BOTCHWEY SB/HRM/16/0027
OHENEBA ADUSEI POKU SB/PCM/16/00049

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