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Ellise Grocery Supplier’s Investor Attraction Report


The perception that the business of supplying groceries to urban centers and direct consumers is a preserve of the village folks and uneducated people is wrong. Every person eats vegetables, and this means that there is always a ready market for groceries. Ellise Grocery Supplier targets supermarkets, government offices and people living in urban areas. The urban population rarely gets fresh vegetables and fruits. They buy groceries from supermarkets and other stores at expensive prices. This business targets to break this cycle of suffering and bring fresh groceries close to consumers. The business plans to buy groceries from the countryside and sell them to customers in urban centers.

Economic Analysis

Ellise Grocery Supplier plans to partner and sign contracts with agricultural farms located in the countryside for a steady supply of groceries. It requires three vehicles, 12 employees, an office and store (14, 400m2). Some money will be set aside for business registration and other miscellaneous expenses. The business requires about $100,000 to finance all its start-up and monthly operations as shown in the business model canvas document below.

Startup Expenses
Amount ($) Description
Advertising 1,000 Promotion for opening the business
Starting inventory 2,500 Amount of inventory required to open
Cash 3000 Amount needed for the cash register
Decorating 1,000 Estimate based on bid if appropriate
Deposits 1000 Check with utility companies
Fixtures and equipment 2100 Use actual bids
Insurance 1,000 Bid from insurance agent
Lease payments 1,500 Fee to be paid before opening
Licenses and permits 1,200 Check with city or state offices
Miscellaneous 3,000 All other
Remodeling 1,000 Use contractor bids
Rent 2,500 Fee to be paid before opening
Services 1,000 Cleaning, accounting, etc.
Supplies 8,000 Office, cleaning, etc. supplies
Unanticipated expenses 5,000
Supply Van 17,000
Total Startup Costs 88,800
Amount of costs before opening

Startup Capital Requirements – Repeating Monthly Expenses

Expenses Amount ($) Description
Advertising 30
Bank service fees 300
Credit card charges 200
Delivery fees 3,000
Dues and subscriptions 1,000
Health insurance 150
Insurance 120
Interest 12
Inventory 130
Loan payments 850 Principal and interest payments
Office expenses 300
Payroll other than owner 1000
Payroll taxes 100
Rent 1000 Exclude amount on preceding page
Repairs and maintenance 1000
Sales tax 35
Supplies 1000
Telephone 80
Utilities 100
Your salary 0 Not applicable for first six-nine months
Total Repeating Costs
10, 407
Total Startup Costs
88,800
Total Cash Needed
99,207

Business Cycle

Food is a basic need that all people require to live healthy and comfortable lives. Ellise Grocery Supplier will operate throughout the year. The business will sign long-term contracts with farmers to ensure there is an endless supply of fresh fruits and vegetables. Most farmers use modern technology that enables them to cultivate crops without relying on rainfall water.

Building a Product Line

Groceries are in high demand in all regions, especially urban areas. Most people do not get fresh fruits and vegetables because they live far from farms. This company will build its product line by making same day deliveries of groceries so that consumers get them as fresh as they are in the farms. Most suppliers sell products that were harvested several days and kept fresh by cooling systems. However, Ellise Grocery Supplier will work hard to deliver fruits and vegetables the same day they are harvested. The prices of goods will be lower than those of the prevailing market by $0.15 per kilogram.

The Future

The business is expected to break-even after six to nine months from its inception. Estimates may change depending on the prevailing market conditions. First, there are numerous policies that control land use and agricultural practice. Issues like global warming may impact negatively on the future of the business. High costs of farming may influence farmers to increase the prices of their products. The unscrupulous use of genetically modified products may force the business to establish marketing strategies to dispel negative perceptions. The business will be forced to sell its products cheaply and may fail to achieve the targeted profits.

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IvyPanda. (2020, September 12). Ellise Grocery Supplier's Investor Attraction. Retrieved from https://ivypanda.com/essays/ellise-grocery-suppliers-investor-attraction/

Work Cited

"Ellise Grocery Supplier's Investor Attraction." IvyPanda, 12 Sept. 2020, ivypanda.com/essays/ellise-grocery-suppliers-investor-attraction/.

1. IvyPanda. "Ellise Grocery Supplier's Investor Attraction." September 12, 2020. https://ivypanda.com/essays/ellise-grocery-suppliers-investor-attraction/.


Bibliography


IvyPanda. "Ellise Grocery Supplier's Investor Attraction." September 12, 2020. https://ivypanda.com/essays/ellise-grocery-suppliers-investor-attraction/.

References

IvyPanda. 2020. "Ellise Grocery Supplier's Investor Attraction." September 12, 2020. https://ivypanda.com/essays/ellise-grocery-suppliers-investor-attraction/.

References

IvyPanda. (2020) 'Ellise Grocery Supplier's Investor Attraction'. 12 September.

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