Starting a new business
It has been estimated that in order to effectively operate this new business, 1. 4 million $ shall be needed. Of this amount, the owner managers has managed to realize 500,000 $, while the rest of the money (900,000 $) is expected to be obtained from a venture capitalist, who will then gain a proportionate share of the business. A venture capitalist would be the best choice, given that this is a start-up business, for which the venture capitalists have been known to prefer (Kirsner 2008).
Some of the other possible sources of finances for the start-up capital would include amongst others, investment bankers, banks, and grants form the government. In addition there are also other alternative sources of capital that the owner manager from the energy drink company may exploit, and these includes the use of credit cards, donations from relatives and friends, strategic partners, professional advisors, private placement leasing companies and prospective employees.
Role of ownership manager The ownership manager of the new energy drink company would be charged with the responsibility of ensuring that this new venture capital enjoys an established organizational culture. By design, a business venture that seeks to be successfully in the long-run needs to reflect
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Seeing that the owner of this energy drink business has its formula, and considering that it is the desire of this new product to capture a market share in south Florida through differentiation, a solid and unique organizational culture becomes necessary from the very start. In addition, such a promising and new business venture requires a leader who is visionary, and in this respect, the owner manager would be best suited to fulfill this responsibility.
The fact that the owner manager has managed to transform what was initially a dream into a viable business plan is a clear indication of a visionary leader. Thirdly, the owner manager of the energy drink serves the function of hiring the new senor management to the company. Given that eventually such an owner manager end up delegating a majority of his/her responsibilities to the hired senior management team (Schwetje et al, 2007), the responsibilities of the new management by extension shall be determined by the culture and vision that the owner manager shall have demonstrated.
Ultimately, an owner manager shall be required to play the role of a final go-between of the various decisions that the company may arrive at. In as much as delegation of responsibility to senior management shall be present, nevertheless there are time when this team may not be in a position either decide on or resolve certain issue of the company, and that is how then that the owner manager, who has the vision of the company, comes in. Business plan
Writing of a business plan for this particular venture shall be a significant step, for a number of reasons. First, a good business plan acts as a roadmap, thereby making it possible for the management of the business to lay out an infrastructure that shall ensure that the objectives of the organization are attained (Flyvbjerg et al, 2005). This includes for example, the establishment of organizational and management structure, illustrating how duties and responsibilities are delegated, and this helps to avoid conflict of interest within the management.
In addition, a business plan is important especially for a new business venture such as this one, as it will help in the carrying out of in depth consumer and market research, in order to assess the potential competitors and their business, their weaknesses and strengths. Moreover, a business plan helps in identifying the products features that one offers to their potential customers (Schwetje, Vaseghi & Gentilozzi, 2007), in addition to laying out strategies for the maintenance of existing competition.
Furthermore, a good business plan acts as a solid foundation for the growth of an organization. Consequently, operational budgetary preparation mechanisms may be developed, along with control and operational systems. Licensing the product As opposed to giving royalty right to other companies to manufacture our product, this company shall instead opt to license its new energy drink product. The benefit of licensing to other companies is that our product shall in the long-term be expanded to the other states, perhaps even across the border.
This way, the potential of the company shall have been expanded. Additionally, there is also the added benefit of risk minimization, in the sense that the licenses so chosen shall be those companies that already have in place the necessary infrastructure for both manufacturing and marketing (Goldstein 2009). Besides, there is the possibility of licensing to more than one company, through a multi-prong approach. This means that the manufacturing could be done by one company and the assembly by yet another company.
A third company would also be charged with the responsibility of distribution, further dividing up possible risks. Given that the Coca- Cola Company has already established itself as a global soft drink giant of repute, this company would highly consider appointing the company as a potential licensee for its energy drink. Potential partner One of the potential corporate partners that the new energy drink has in mind is the Panamerican Beverages INC, located in Panama City, Panama.
The company has enjoyed a close business relationship with Coca Cola Company, as a bottler for the latter over the last 60 years (Van Yoder 2000). As such, Panamco LLC, as it is also called, has cultivated itself a niche in the soft drink industry not just in the Florida area, but is also a leader in South Americas, thereby placing itself in good stead to enable the growth and expansion of our energy drink product. Property rights
Property rights is a terms used in reference to the intellectual property, financial information and the technical documents of an organization (Schwetje et al, 2007). With regard to the selling of property rights to other parties, the company would consider offering its financial information, in addition to several of the intellectual properties such as the design of for example, the package, and the concept of the energy drink. However, the brand name of the energy drink would remain as a trademark of its parent company.
In addition, technical documents such as the formulation would also remain a guarded secret of the company, and would therefore not be offered for sale. Key advisors for preparing the business plan While preparing the business plan, the owner manager shall require engaging the services of a number of professionals. Lawyers will be needed, to assists in drafting the contractual agreements with investment partners. Bankers will provide guidance on the financial framework of the business plan, such as solicitation of finances.
Consultants will be required in establishing the business strategy, as well as at a technical level. Here, consultants who have specialized in such diverse areas as risks management, marketing, information technology and strategic alliance will also come in handy.
Flyvbjerg, B. , Mett, K. , Skamris, H. , & Soren L. (2005). “How (In)accurate are demand forecast in public works projects? ” Journal of the American Planning Associationsidoo kale ayaa waxaa, 71, 2, 131-146. Goldstein, Gary. (2009). Steps to Product Licensing.
Retrieved June 5, 2009, from http://www. articleclick. com/Article/Steps-to-Product-Licensing/1187111 Kirsner, Scott. (2008). “Venture capital’s grandfather. ” The Boston Globe, April 6. Luigs, Mel. (2008). The Four Roles of Ownership that Cannot be Delegated. Retrieved June 5, 2009, from http://www. aml-associates. com/publishedarticles/ownershiprole. html Schwetje, G. , Vaseghi, S. , & Gentilozzi, J. (2007). The business plan: how to win your investor’s confidence. New York: Springer. Van Yoder, Steven, “Thirst for Success,” Industry Week, May 15, 2000.