BUSINESS IDEA
Business plan
According to research, an adult needs to eat 0.3 kilograms of vegetables a day.
Vegetables and tubers are rich in essential vitamins, minerals, and fiber, which aid in detoxification and fat removal from the body Incorporating an adequate amount of fruits and vegetables into a low-fat, high-fiber diet can significantly reduce the risk of serious health issues, including obesity, type 2 diabetes, heart disease, stroke, and certain cancers.
Eating vegetables is vital for everyone’s health, and doctors recommend consuming clean, locally-sourced produce Given the prevalence of pollution and subpar vegetable quality today, it’s important to research and select reputable sources for purchasing your food.
In Hanoi, there have not been a lot of fresh vegetable stores with high quality and detail sources Therefore, we choose to open a fresh vegetables store to start our business.
Our vision
In our inaugural year, we aim to offer a diverse selection of fresh vegetables that meet high standards, catering to a broad customer base in the vicinity of our vegetable store.
From year two, we will open more stores in Hanoi and from year three is neighboring provinces, become a trustworthy chain of fresh vegetable store.
Our Mission
Our mission is to establish a leading retail chain specializing in fresh fruits and vegetables, with plans to operate a standard vegetable farm in the near future.
MARKETING
Market analysis
Nowadays, providing fresh vegetables service in Hanoi is a potential market.
In densely populated areas with high educational levels and income standards, the demand for fresh vegetables surpasses that of other regions Many residents prefer shopping at nearby small markets for convenience, despite concerns over the origin and quality of the produce, which raises food hygiene issues However, the need for quick access to vegetables for family meals often outweighs these concerns As awareness of food hygiene and the importance of healthy eating grows, the demand for fresh, healthy vegetables is steadily increasing, signaling a shift towards a modern lifestyle focused on health and fitness in urban environments.
In Hanoi, our primary competitors are numerous fresh vegetable stores, as the trend toward consuming fresh produce grows However, altering the eating habits of residents presents a significant challenge, as many individuals are reluctant to invest more in fresh vegetables, believing that those found in small markets are both nutritious and economical enough to sustain them until their next meal Nevertheless, we aim to shift this perception by highlighting the dangers associated with unclean food and the potential health risks of food-borne diseases.
Therefore, we determine our main competitors are other fresh vegetables stores.
After analyzing, we choose two competitors to analyze, which are Orfarm and Bac Tom.
Criteria Fresh Vegetables Orfarm Bac Tom
Product Fresh vegetables Organic vegetables, Fruits, Meat, Seafood…
Fresh vegetables, Organic vegetables, Fruits, Meat, Seafood…
Price Medium High Pretty high
5km distance with buying combo, support for ordering, Professional system of serving, fast delivery.
Knowledge about fresh vegetables will be introduced carefully by staffs to the customers.
Free delivery 5km distance with bills from 199,000 VND , support for ordering,
Many outlets for customers to come.
Free delivery 5kmdistance with bills from 200,000 VND,support for ordering, professional system of serving, fast delivery.
Many outlets for customers to come
Marketing Social network Social network Social network Outlet Design Green space providing fresh feeling
Our target customers are families with standard incomes who prioritize their health and understand the significance of nutritious meals This includes individuals like gymnasts who require a dependable source of fresh products, as well as married women dedicated to maintaining their family's well-being.
After deciding direct competitors and target customers, we conduct the following questionnaire:
4 How often do you cook?
5 Where do you choose to buy food for your family:
Small markets nearby your home
6 Do you concern about the food origin?
7 Are you willing to pay a high amount of money to purchase healthy food?
Research indicates that individuals aged 25 and older, particularly married women, prioritize fresh vegetables more than other demographics These consumers are willing to spend more to ensure their families have access to fresh produce.
Marketing strategy for one year of operation
- We use Marketing Mix 7P’s for marketing strategy
Brand reputation of vegetable supplier Image of supplier Supply:There are a few key standards with suppliers
Standard expected ( Quality of vegetables inspected and accepted )
- When vegetables are delivered, the supermarket staffs are trained to select only the best Any produce that does not meet the standards is given back to the supplier/supplier.
- Product list: all vegetables, tubers and herbs ( specially seasonal vegetables)
Days for products: About 5 days to 1 week Therefore, we consider how frequently we will need to restock our produce: Three times a week.
Combo 1: 799.000 VND for small family ( 2-3 people)
Combo 2: 999.000 VND for nuclear family (4-5 people)
Combo 3: 1.199.000 VND for extended family (6-7 people)
After conducting a thorough market analysis, we have established a competitive medium price for our product Unlike other competitors who either price their offerings too low, compromising quality, or too high, limiting market reach, our pricing strategy is designed to appeal to our target customers effectively.
- Buyers can choose the combo they want and vegetables will be delivered to their home.
- Our store can provide more package choices depend on customer’s want.
- Promotion plan for our Fresh Vegetables is designed for 3 stages
Introduction: From 1/2020 Goal: Raise the awareness of the customer, promote trial Means: Marketing online (Facebook marketing), run promotion program, discount 10% on the opening day and every Sunday “HAPPY SUNDAY”
Marketing offline: providing printed advertisements at building office and points of traffic around, word of mouth by the relationships.
Growth: From 4/2020 Goals: Raise the awareness, boosting sales Means: Marketing online, discount 10% in every Sunday “HAPPY SUNDAY”
Maturity: From 7/2020 Goals: Raise the awareness of new products, boosting sales, maintain customer relationships.
Means: Marketing online, discount 10% for every Sunday “HAPPY SUNDAY”
Located on the first floor of an apartment on Nguyen Co Thach Street, this rental space is ideal for businesses, with a monthly rate of 12 million VND and a three-month upfront payment The area has a population of over 5,000, providing a solid customer base Its strategic location near various buildings, schools, and offices enhances accessibility for clients, while also offering more affordable rental prices compared to central districts.
- Our goals are to provide great support for customer to get their high-quality of meal with fresh products
Internal PR : Focus on each employees
Having internal events, recreational activities, team buildings ….
Giving recognition to people during birthday (By emails or message ) or when they receive awards…
Given at least 13 months of salary…
Sending gifts to employee families on Tet holiday….
External PR: We have to build up and maintain relationships and customer service system towards distributors, suppliers, the media….
Working with the media: Launch a new service, awards for the company…
Event: the opening, the trial sample product…
Customers : Come into the service, the most important factor in the system
Facilities: Includes equipment which is necessary for service and material environment.
Service staff: Includes employees who have direct contact with customers, indirect service personnel and managers
Service: is the goal of the system and at the same time is the result (output) of the system The service is determined by the scenario outlined.
The process receiving and stocking ( tips)
- Prepare the backroom Get rid of trash, stack empty boxes, and condense merchandise to make room for the load.
We will map your refrigerator to identify the coldest and warmest areas, ensuring optimal storage for your produce to enhance flavor and reduce spoilage Consistently place items in designated spots for easy access, and when unloading the truck, organize products in specific areas to minimize handling.
- When picking up or receiving a produce delivery, accept only produce items that are within their recommended temperature ranges
- Handle with care! Never throw or drop produce This can cause damage and shrink.
To ensure optimal inventory management and minimize waste, utilize the First-In-First-Out (FIFO) method by positioning newer items behind or beneath older ones This strategy guarantees that all produce is rotated effectively, allowing you to sell items before they spoil.
- Dating keeps track of aged inventory.
- A clean ship is a happy (and safe) ship Stack away empty pallets, dump the trash, sweep, and mop the floor.
Verify the recent shipment against your invoice to ensure all items arrived as ordered This is the ideal moment to identify any shortages or discrepancies and make the necessary adjustments with your warehouse.
- The store locate in apartment building with targeted customer : the citizens in area with standard income
- Medium size for store : enough space for customer
- The store is decorated with light color, certificate, food classification….
Estimate marketing budget for 1 year
Table 2.3: Marketing cost for first 3 months
3.2 For the next three months
Table 2.4: Marketing cost for next 3 months
3.3 For the rest of the years
Table 2.5: Marketing cost the rest of the year
=> Total: 73,061,400VND for the first year.
HUMANCE RESOURCE MANAGEMENT PLAN
Job analysis
The initial stage of human resource planning involves assessing the existing workforce within the company This process includes conducting a thorough audit of employees' skills, demographics, qualifications, experience, and compensation.
Fresh Green Grocery must evaluate whether current statistics align with its business objectives In its inaugural year, the company needs to assess the number of staff required to remain competitive and effectively manage operations Additionally, it should consider whether reorganizing its workforce could enhance profitability.
Job Analysis is essential for Salad Bar's operations, as it involves collecting and analyzing vital information about all roles and staff This process encompasses both Job Descriptions, which detail the responsibilities and tasks associated with each position, and Job Specifications, which outline the necessary qualifications, skills, and attitudes required from jobholders Essentially, Job Descriptions provide a written overview of job content, while Job Specifications serve as a record of the attributes needed for effective job performance.
Organization structure
To successfully operate our Fresh Vegetables Store, we require a dedicated team including a store manager, cashier, accountant, warehouse staff/shipper/deliverer, and saleswomen In the first year, we plan to hire one full-time cashier, one full-time warehouse staff/shipper/deliverer, two part-time saleswomen, and one part-time accountant who will work at the end of each month.
Table: Salary per month and per person
Type of employee Salary ( per person per month)
Cashier 1 Full-time 6,000,000 VND + 15,000 VND per day + sale figure: 1%* revenue
1 Full-time 7,000,000 –VND + 15,000 VND per day
Saleswoman 2 Part-time 15,000 VND/ per hour + 100,000
Average salary per month 19,750,833 VND
Recruitment & selection
In first round (Application), we recruit by 2 ways, throughfriends and post recruitment information online (YBOX, TOPCVand Facebook with running ads).
To apply for a position, candidates must submit a CV and cover letter to the manager's email The manager will then review the applications, filtering candidates based on their CVs and scheduling individual tests and interviews For key roles, the tests will assess professional qualifications, while positions such as accountant, cashier, warehouse staff (who also serve as shippers), and saleswomen will focus on problem-solving skills The subsequent interview round will evaluate candidates' personality and attitude.
Afterinterview, employees will have 1 month to have on – job training If they do good job, they will become officially employee of store
1 Accountant Itemizes and totals purchases by recording prices, departments, taxable and nontaxable items; operating a cash register.
Basic PC knowledgeand familiarity withelectronic equipment.
Attention to detail andmathematical skills
2 Cashier Discounts purchases byredeeming coupons.
Collects payments by accepting cash, check, or charge payments from customers; making change for cash customers.
Basic PC knowledgeand familiarity withelectronic equipment.
Attention to detail andmathematical skills
3 Warehouse staff Manage amount of vegetables in and out the warehouse to check with cashier.
Import products and check the quality.
4 Saleswomen Customer care: introduce and give the best advice, maintain relationships with customers.
Prepare vegetables for store everyday.
Have knowledge about vegetable and its function.
Training and development
The training and development process begins at the time a new person gets hired.
Ongoing training, both in-house and external, is essential for employee development, enabling them to advance from their current skill levels to desired competencies This targeted training not only enhances employee skills but also significantly lowers staff turnover rates and reduces the costs associated with onboarding new employees.
Topic 1 Company’s culture Training about vision, mission, development strategies and company culture: smile and greet/ goodbye to customer ….
Topic 2 Employee Orientation Orienting employees about their detail career
Training about the rights, the duties of employees and their compensation
Training about requirement skills when they work in Fresh Green Groceries It concludes serving skill, persuading customers, attitude to customers and when problems occur how they will deal with?
To satisfy customer and protect store.
Topic 5 Performance This helps to evaluate employees in a fair appraisal way to support or punish them.
Set the direction for the employees
Apply his training and other skills and abilities to perform the job well.
Add additional training programs to his individual plan
If he does well, he will get promotion (higher position) and increase salary or give bonus at the end the month.
Performance appraisal
- Accountant: A strong sense of ethics, constantly learning, emphasizing accuracy, organizational skills, sense of accountability, trustworthiness and reliability, knowledge of the field
- Cashier: good communication, friendly, understanding, logical, well presented, trustworthy, accurate, quickly to learn.
Warehouse staff and shippers must possess a strong understanding of the methods and practices involved in receiving, storing, and packing materials and supplies Additionally, they should have the ability to operate powered materials handling equipment essential for efficient material management.
- Saleswoman: upbeat, passionate, ingenious, empathetic, accountable, well prepared, highly engage.
- For part-time: Student in universities or graduating from high school.
- For full- time: People graduating from high school know clearly this field, from university…
- Standards are disseminated clearly and widely to all employees
- Meetings will be held monthly (quarterly) to review standards and remind employees
- Manager track and regularly review how employees are performing.
Attendance might be reviewed weekly when the schedules are made, whereas sales goals might get reviewed monthly.
Conduct individual meetings with each employee to discuss standard expectations, offering constructive feedback on their strengths and areas for improvement Ensure that all feedback is articulated objectively and maintain a professional, positive tone throughout the conversation.
- Set an action plan for future performance appraisals Build bigger goals around areas of employee success and provide specific plans of action where improvement is needed.
Ensure that employees sign the plan to acknowledge their understanding and acceptance of its contents, including the associated action plans After obtaining their signatures, provide a copy for the employee and retain another copy for the human resources file.
Compensation
Compensation, beyond just salary, plays a crucial role in employee retention It encompasses the rewards and benefits that employees receive in exchange for their contributions, making it a vital factor in maintaining a motivated workforce.
Compensation encompasses various forms of payment, including bonuses, sales commissions, overtime pay, and recognition rewards, as well as non-monetary benefits like days off, holidays, and parties It plays a crucial role in human resource management by motivating employees and enhancing organizational effectiveness.
Name Full-time Part- time
Wage Based on fix salary for each position
Based on fix salary for each position
Manager willregisterhealthyinsuran ce per yearfor full – time,cost
3 days for death of parents
OPERATION PLAN
Input
No Name Quantity Price Total Supplier
Explore local farmers' markets to secure competitive pricing on your produce choices while also seeking training on effective handling and promotion techniques Additionally, consider importing from provinces near Hanoi for a diverse selection.
BacGiang, Hai Duong, VinhPhuc…Therefore, we also tell to our customers the place, the person who grow vegetables that we stock.
Three combo will have different weight about three main fresh vegetables
No Combo Material Unit Quantity
Total price of each combo
The Human Resources of a fresh vegetable store are categorized into two types: full-time and part-time staff Full-time employees, who are experienced and highly committed, play a crucial role in the store's operations, including positions such as cashiers and warehouse staff In contrast, part-time staff, primarily consisting of university and college students aged 18 to 23, offer lower commitment at a reduced cost Additionally, the accountant is hired on a part-time basis, working only at the end of each month.
The capital we invest to open Fresh Green Groceries is 250 million VND in cash from Mrs Thu.
Transformation process
- Our fresh green grocer is open to serve customer from 6.30 am to 7.30 pm, dividing into 2 shifts :
Morning – Afternoon shift: 6.30 am to 3.00 pm Afternoon – Evening shift: 3 pm to 7.30 pm
- Our store will be opened by part-time staff at 6.30 am, and they will work until 10.30 am for morning shift and from 4.30 pm to 7.30 pm for another shift.
Besides, full-time staffs work as office hours.
To place an order online, customers can conveniently use our website, call us, or reach out via Facebook All online orders must be submitted before 12 AM or by 7 PM to ensure timely delivery after the ordering deadline This efficient process not only saves time but also allows us to deliver multiple orders to nearby areas simultaneously.
Fresh Green Groceries caters to offline customers daily from 6:30 am to 7:30 pm, offering a warm welcome and friendly service Our knowledgeable staff engages with customers by inquiring about their preferred combo options and providing tailored recommendations Additionally, they share valuable tips on product storage to maintain freshness and highlight the benefits of various items, ensuring a satisfying shopping experience.
Output
Our main products are 3 types of fresh vegetables combo: Small size, Medium size and big size.
Combo 1: suitable for the family with small size - 2 people.
Combo 2: suitable for the family with medium size – 3, 4 people.
Combo 3: suitable for the family with big size – 5, 7 people.
With each combo, customer will select the types of vegetables they want.
The price of each types of combo:
Combo 1: 799,000 VND Combo 2: 999,000 VND Combo 3: 1,199,000 VND The average price: 999,000 VND
We offer a premium selection of fresh vegetables, complemented by exceptional customer service and expert product knowledge Our commitment to high standards ensures that our food service is safe, affordable, and focused on health, providing high-quality products delivered by friendly staff We strive to help our customers feel confident and healthy with every purchase.
Layout
Location: on the first floor in an apartment in Nguyen Co Thach street About 35 m 2
Store Appearance: The way the store looks can affect how much produce we sell.
A cluttered sales floor can lead customers to question the freshness of our produce, while excessive alcohol and tobacco advertisements may overshadow our fresh offerings To enhance the appeal of our produce selection, we should consider implementing visual improvements such as removing unnecessary clutter, replacing damaged signs with attractive signage, ensuring clear pricing on shelf talkers, and utilizing proper lighting.
Storage Temperature Different produce items require different storage temperatures to maintain good quality, which will improve sales Keep the following storage chart in mind when selecting produce items
Optimal storage temperature for up to seven days of storage
Vegetables Cabbage Carrots Mushroom Spinach Corn Cauliflower Lettuce Broccoli
Vegetables Chili peppers Green Beans Cactus Leaves Okra
VegetablesOnionsPotatoesTomatoesJicama wo od en sh e lve wO OD EN SH EL VE fRIDGE fR I D GE storage
When importing various items, it is crucial to manage quantities carefully and promptly address any errors upon receipt Ensuring proper preservation and packaging during the anti-inspection and pre-processing stages is essential As goods may lose their freshness over time, consider selling them at competitive prices or processing them into other products for resale, particularly to smaller restaurants.
FINANCE PLANNING
Salary
15,000 VND/day 1% * total revenue/month
Total 21,228,833 VND in average per month in the first years.
Marketing
We will utilize Facebook as our primary online marketing channel In the initial three months (January, February, March), we will allocate a budget of 5 million VND per month For the subsequent three months (April, May, June), we will cut our spending by half, reducing it to 1.5 million VND each month In the final phase, we plan to further decrease our budget to 1 million VND per month.
For marketing offline, we use promotion cost on sale and also printed advertisement to increase our sale volume.
Next three months 3.5 mil/ month
1 mil/ month Promotion cost 38,561,000 VND/ first year
Printed ad 3 mil/ only first month
Based on a survey of our competitors and an analysis of our unique offerings, we have identified essential equipment needed for our green grocery business The total investment required for this equipment in the first year amounts to 98,645,000 VND.
Utility cost: We estimate the cost of water and electricity is 2.5 million VND and for Wi-Fi is 200,000 VND per month The telephone expense is 200,000 VND.
Renting cost: our Fresh Green Grocery located in Nguyen Co Thach Street with
35m2 and the first floor only The market price for renting cost is 12 million VND/month, pay 3 months in advance The deposit prepayment is 15,000,000 VND in the first month.
Refurbishment fee: We plan to fix and redecorate our store at the end of each year and spend 3 million VND for each time refurbishment.
After surveying the current market, we selected the most suitable suppliers for our store in each category, ensuring both reasonable prices and high-quality, fresh materials.
Our store includes 3 combo which is suitable for each household Small combo (1) values 300,000 VND, Medium combo ( 2) values 400,000 VND and Big combo
Therefore, average cost for each is 393,000 VND.
To estimate daily unit sales, we analyze various influencing factors, including seasonal trends, market dynamics, and human behavior Taking these elements into account, along with our operational capacity, we project our unit sales for the first year as outlined in the table below.
Table 5.3: Estimate how many combo sold per month
Total cost of material: 580,800,000 VND in first yearRevenue: VND 1,480,450,000 VND in first year
Cash flow
Based on our assumption we calculate the cash flow table, income statement and balance sheet.
For more detail, you can see it in Fresh Green Grocery Financial Statement.
Our analysis indicates that the break-even point for Fresh Green Groceries is 1,023 units, with a payback period of approximately 8 months This means that the company will recover its initial cash investment within this timeframe Additionally, we project a profit of 397 million VND in the first year, reflecting a highly optimistic financial outlook.
250 million VND investment Therefore, our Business Salad Bar Restaurant is a potential project with high chance of successful to invest in.
POTENTIAL PROBLEMS/RISKS
Potential risks
The ongoing staff shortage and frequent turnover of employees pose significant challenges for our store With a mix of part-time and full-time workers, finding individuals who are a good fit from the start is often difficult Additionally, the high rate of part-time employees quitting necessitates a swift recruitment and training process to fill these gaps, which can be time-consuming and hinder the store's development.
Employees directly interact with products and customers, so their dissatisfaction with working conditions, salaries, or colleagues can lead to unexpected resignations, negatively impacting business outcomes To address these issues effectively, it is essential to have a competent manager with the necessary experience and skills in management.
The demand for fresh vegetables remains surprisingly low, despite their essential role in a healthy diet Many individuals are hesitant to trust the quality and sourcing of these vegetables, leading to a lack of confidence in their consumption.
Time overruns are a common challenge in many startup projects, including ours, where smaller tasks often remain unfinished due to delays in other areas This risk can lead to significant issues, wasting both time and money While fresh vegetables are not a new product in the Vietnamese market, there are still relatively few stores offering them If we fail to capitalize on this opportunity quickly and effectively, we will face intense competition from numerous rivals.
Cost overruns are a common challenge during the implementation phases of startup projects, often caused by various internal and external environmental factors that can hinder progress and delay timelines Issues such as complications with quality registration certificates and difficulties in securing suitable locations can exacerbate these delays Additionally, these challenges may lead to a budget shortfall, further complicating the project's financial management.
Lack of capital: It may be happened if the potential investors refuse to invest in our business We do not have enough capital to start project.
The inconsistency in material quality poses a challenge for our clean vegetable products, which must be consumed promptly to maintain their freshness Prolonged storage leads to a decline in quality, resulting in the need for disposal Additionally, subpar products do not align with seasonal standards.
Solutions
Time overruns Timestones for each tasks have to be set clearly and exactly Which works is overtime, the leader will bepunish.
Financial Cost overruns - Taking an amount of money from capital risks in to emergency fund
Lack of capital -Preparing a detail plan to convince potential investors.
-Opening the range of money source
The quality of the material is not consistent and cannot control
-Carefully store products -Carefully calculate the number of products to import
Shortage of staff / Employees who quit their jobs halfway
-Actively find people from before opening a store -Ensure benefits and incentives in accordance with signed labor contracts
The number of customer is too low
Promoting communication, marketing online and offline emphasizing the importance of the vegetable in daily life
Chapter 4: Operation Plan Nguyen KhanhLinh