1. Sources and use of funds

Kenry Beverage Company has an outstanding $30,000 loan from family and family. Moreover, Kenry Beverage Company is seeking an additional $150,000 loan from venture capitalists to fund the start-up round. More fund will be required for projects to grow the company after 3-5 years where there will be additional expenses. The payoff time is 30 months at an interest rate of 5%.

Use of Funds:

Capital Expenditures

Purchase of ingredients                             $25,000

1 additional van                             $12,000

Working Capital

Employee wages and a premium bonus    $ 30,000

Purchase of package materials                 $ 20,000

Advertisement                               $ 15,000

2. Plan assumptions

The demand for healthy juices is on the rise as people are becoming more healthy driven. Furthermore, healthy beverage alternatives for plain water and soda are becoming more popular. The target market in New York City is over 2,000,000 people with500,000 willing to pay extra for healthy juices. At first, our target was three drinks per month for our target market with the potential of the rise in thedemand. When our beverage is introduced in social events, then the target market will undoubtedly increase and loved when people realize the benefits it brings along. Kenry beverage is slightly more expensive than water or any carbonated soft drink, inexpensive compared to the alcoholic beverages in the market. Consumers will appreciate the beverage as well as its production process when they have a taste of it. In addition to our passion, our dedication and experience of everybody in the company will ensure that the company’s growth is propelled forward the management and the team are well trained. Nonetheless, we guarantee that everyone is motivated without being overstaffed. Moreover, we plan to ensure that Kenry beverage has great funding since we aspire toownland, machinery, and have our source of ingredients to secure a promising future. This will be a great motivation and a foundation to ensure that the company’s goal is to expand and become one of the best in the non-alcoholic beverage market.

3. Break-even analysis

Kenry beverage company Break-even point starts at $400,300 sales in January 2018 and average in the first year at monthly sales of $530,986. During the 2^nd year, we will require $600,100 to be break even with all variable and fixed costs, if no significant changes in production or price occur.

With a sales price of $6.75, in the first month, Kenry beverage needs to sell 88,904 bottles or glasses to be break even. During the first year, Kenry beverage needs to sell 103,002 bottles per month, which will increase to 109,560 bottles per month in the second year. These sales are realisticfigures given the target marketavailable.

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