Jamba Juice Inc - Business Plan-2

BUSINESS PLAN
ON THE SET UP
AND
OPERATION
OF A
JUICE & SMOOTHIES BAR/CAFÉ
BY
JAMBA JUICE INC.
JAMBA JUICE INC.

PLOT 1, KIMATHI AVENUE,
UAP INSURANCE BUILDING,
P.O. BOX 34582,
KAMPALA,
UGANDA.
Cell Phone: +256-776-408 081
Land Phone: +256-414-344 700/414-344 700
Fax: +256-414-340 189
E‐Mail: phcryan@gmail.com
DECEMBER 2016
i
JAMBA JUICE INC. Business Plan Corporate Document
A. TABLE OF CONTENTS
S/NO. DESCRIPTION PAGE
1.0 EXECUTIVE SUMMARY 1

1.1 Business Profile 1
1.2 Company Objective 1
1.3 Specific Objectives 2
1.4 Mission Statement 2
1.5 Products and Services 3
1.6 Company Start-Up Financing 3
1.7 Management Team 3
1.8 SWOT Analysis 3
1.9 Business Operating and Pricing Strategies 3
1.10 Target Market 4
1.11 Projected Sales 4
1.12 Financial Analysis 4
2.0 BUSINESS DESCRIPTION 6

2.1 Business Overview 6
2.2 Business Proposal Highlights 7
2.3 Justification of Business Venture 8
2.4 The Opportunity 8
2.5 Need to be Fulfilled 8
3.0 COMPANY INFORMATION 9

3.1 About Jamba Juice Inc. 9
3.2 Company Vision 9
3.3 Company Mission 9
3.4 Company Objective 10
3.5 Specific Objectives 10
3.6 Key Success Factors 11
3.7 Company Locations and Facilities 11
3.8 Required Funds to Start 12
4.0 PRODUCTS & SERVICES 15

4.1 Product Description/Offering 15
4.2 Benefits of Jamba Juice Inc. Products 16
ii
5.0 MARKET & INDUSTRY ANALYSIS 17
Background Analysis: Industrial Processing and Packaging
17
5.1 of Fruit Juices in Uganda
5.2 Market Segmentation 19
5.3 Industry Analysis 20
5.4 Customer Profile/Target Market and Demographics 21
5.5 Market Analysis 22
5.6 SWOT Analysis 26
6.0 MARKETING STRATEGY 33

6.1 Marketing Objectives 33
6.2 Marketing Strategies 33
6.3 Sales Strategy 36
6.4 Competitive Advantage 36
7.0 MANAGEMENT AND ORGANIZATIONAL STRUCTURE 37

7.1 Ownership 37
7.2 Human Resources 37
7.3 Organizational Structure 38
7.4 Personnel Plan 38
8.0 OPERATIONS PLAN 40

8.1 Overview of Operations Plan 40
8.2 Opening Procedures 41
8.3 Equipment Requirements 42
8.4 Store Design and Layout 42
9.0 IMPLEMENTATION PLAN 44
10.0 FINANCIAL PLAN 46

10.1 Underlying Assumptions 46
10.2 Summary 46
10.3 Sources and Uses 47
10.4 Net Income Statement 47
10.5 Cash Flow Sheet 48
10.6 Balance Sheet 49
10.7 Personal Income 50
10.8 Taxation 50
10.9 Currency Values 50
10.10 Depreciation 50
iii
10.11 Benchmarking 50
10.12 Operating Assumptions and Limitations 51
10.13 Break-Even Analysis 51
10.14 Sensitivity Analysis 52
11.0 PROJECT ECONOMICS 54

11.1 Outline of Project Economics 54
11.2 Pricing 54
11.3 Sales Projections 55
11.4 Development Impacts 56
11.5 Value Added 56
12.0 RISK ASSESSMENT AND MITIGATION PLAN 57

12.1 Critical Risk Factors 57
12.2 Contingency Plan 58
13.0 CONTROLS 59
13.1 Financial Risks and Contingencies 59
13.2 Implementation 59
14.0 EVALUATION & CONCLUSION 61

14.1 Evaluation 61
14.2 Conclusion 61
iv
B. LIST OF TABLES
T/NO. DESCRIPTION PAGE
1 Key Project Performance Parameters 5
2 Company Legal Structure 9
3 Initial Business Investment Costs 13
4 Market Analysis 20
5 Juice and Smoothies Bars in Kampala 28
6 SWOT Matrix 32
7 Sales Forecast 36
8 Personnel Plan 39
9 Large Equipment 42
10 Small Tools and Equipment 42
11 Project Management Timetable 44
12 Summary Profit & Loss Account for First Five Years of the Project 48
13 Projected Cash Flows 48
14 Projected Balance Sheet 49
15 Break-Even Analysis in Project Year 5 52
16 Project Economics 54
16-1: Total Project Cost 54
16-2: Project Returns 54
16-3: Financing Planning 54
17 Calculation of Value Added 56

v
18 Key Financial Modeling Assumptions 62
18-1: Economy-Related Assumptions 62
18-2: Cash Flow Assumptions 62
18-3: Revenue Assumptions 62
18-4: Operating Expense Assumptions 63
18-5: Insurable Expenses 63
18-6: Calculation of Insurance Fees 63
18-7: Financial Assumptions 64
18-8: Depreciation Rate Assumptions 64
vi
C. LIST OF FIGURES
F/NO. DESCRIPTION PAGE
1 Performance Highlights (PY2 – PY5) 5
2 Use of Funds 14
3 Market Analysis (Pie) 20
4 Consumption of Healthy Food/Drink 23
5 Favourite Fruit 23
6 Price of a Smoothie 24
7 Size of a Smoothie Cup 24
8 Feelings towards Fruits 25
9 Favourite Fruit Products 26
10 Organizational Chart 38
11 Juices & Smoothies Value Chain 40
12 Processes/Diagram Path 41
13 Project Implementation Schedule 45

vii
D. LIST OF FINANCIAL ANALYTICAL SCHEDULES
S/NO. DESCRIPTION PAGE
01: Key Financial Modeling Assumptions 62
02: Source and Structure of Project Financing 65
03: Loan and Interest Service Schedule 66
Calculation of Working Capital: I Minimum Requirements of Current

04/1: Assets and Liabilities 67
Calculation of Working Capital: II Annual Production Cost –

04/2: Estimates 68
04/3: Calculation of Working Capital: III Working Capital Requirements 69
05: Fixed Assets and Depreciation Allowances 70
06: Change in Total Investment Costs 71
07: Change in Total Assets 71
08: Projected Cash Flow Table 72
09: Projected Cash flow Table and Calculation of Present Value 73
10: Projected Income Statement 74
11: Projected Balance Sheet 75
12: Business Ratios/Ratio Analysis 76
13: Projected Payback Period 78
14: Sensitivity Analysis 78

1.0 EXECUTIVE SUMMARY
1.1 Business Profile
The purpose of this business plan is to raise UShs 450 million for the development of a
juice and smoothie bar while showcasing the expected financials and operations over
the next five years. Jamba Juice Inc. (“the Company”) is a Kampala-based Company
that will provide a diverse line of juices, smoothies, and small food products to
customers in its targeted market. The Company was founded by Phoebe Kankazi along
with two other Directors/Shareholders namely: Fred Washaba and Aggrey Namanya.
This business plan describes in detail Jamba Juice Inc.’s entry into Kampala, Uganda.
Jamba Juice Inc. is modeled after proven US companies, such as Jamba Juice. Jamba
Juice Inc. emphasizes nutritional value, coupled with attractive pricing. An in depth
SWOT analysis was performed in determination of major external and internal factors
facing the Company.
Jamba Juice Inc. is planning to expand its operation to include additional sales stores
within the Kampala metro area. The Company intends to implement marketing
campaigns that will effectively target individuals within the target market. Owner
retained earnings and internally generated cash flow will enable most of the expansion
plan. The Company will also need to secure a UShs 450 million medium-term
financing facility. Sales projections for the next five years are based on current sales
success with the target customer base in Richmond. Initial contacts have been
completed with existing retail outlets within the Kampala metro area and the potential
target markets have been identified.
This plan will result in sales revenues growing to UShs 2.21 billion by Year 2.
1.2 Company Objective
The products to be made include: juices, shakes, smoothies, and yogurt-based

smoothies. Neutrality will govern the products made since the raw materials will
basically comprise of fresh, mature fruits of the season without non-fruit fortification.
Jamba Juice Inc. products are intermediate since they are from raw material to juice
and smoothies made products that are then consumed by the consumer with minimal
value-added processing. Availability regardless of the seasonality forms another niche
value to Jamba Juice Inc. products.
1
The main objective is to ensure sustainable economic, food, health and nutrition
security by seasonal reduction of fruits post-harvest losses by at least 10% through
processing.
1.3 Specific Objectives
 To become the best juices and smoothies bar/café in Uganda.

 To improve customer satisfaction through the processing and delivery of good
quality juices and smoothies products.
 To turn in profits from the first year of operations.
 The making and selling of unique, innovative and healthy products that will
differentiate Jamba Juices Inc. from the other local juice shops in Uganda.
 To open four new outlets within the next five years in other up-country towns of
Uganda.
 To exceed UShs 2.43 billion in annual sales by the third year of plan
implementation.
 Maintain tight control of cost and operation during expansion.
1.4 Mission Statement
“To provide a healthy, tasty and refreshing experience with our 100% natural fruit
juices, shakes and smoothies to take away. To serve and satisfy the nutrition needs of
health-conscious consumers through the high quality of our products. We contribute to
make Uganda a healthier nation”.
The Jamba Juice Inc. Company Mission integrates three core elements: -
 Quality: Our fruit juices are the highest quality, most nutritious food
products...because we will accept nothing less.
 Innovative: Our products have always been in the forefront of the health and
nutrition wave. Innovative products, state-of-the-art manufacturing, quality
assurance and industry expertise are the bases for our past and future successes.
 Integrity: Our customers depend on the quality of our juice products. Our
commitment to the highest standard is the foundation of our customer's trust in
Jamba Juice Inc. delivering freshly made juice to consumers depends on
extensive cooperation and mutual reliance between supplier and retailer. We
stand behind our product, our service and our word.
2
1.5 Products and Services
The Company will offer a wide menu of fruit juices (including multi-flavoured juices),
vegetable juices, super food drinks, smoothies and fruits & vegetable shakes. All
products will be organic food and beverage goods. The Company will pride itself on
being a small, but full service health quick service restaurant that seeks to provide only
the highest quality products in an inviting atmosphere.
1.6 Company Start-Up Financing
Jamba Juice Inc. ownership will supply a van vehicle worth UShs 20 million towards
start-up expenses and will require additional external funding worth UShs 450 million
for the purchase of store property, equipment, and bar/café furniture and fixtures.
The interest rate and financing loan agreement are to be further discussed during
negotiation. This business plan assumes that the business will receive a 5-year financing
facility loan with a 12% fixed interest rate.
1.7 Management Team
Jamba Juice Inc. was founded by Phoebe Kankazi in association with Fred Washaba
and Aggrey Namanya. Phoebe Kankazi is the lead project promoter with more than 10
years of experience in the food service industry in the US and UK besides having a
strong passion and desire to excel in the juicing business. Through their combined
business experiences and industry expertise, they will be able to bring the operations of
the business to profitability within its first year of operations.
1.8 SWOT Analysis
Key external factors include seasonal sales, direct competition, tourism, marketing and
promotion, location, labor, and social trends. The main internal factors consist of
seasonal sales, nutritional value, employee satisfaction, introducing a new concept,
healthiness, and reliance on tourism. These core factors were applied into a SWOT
matrix to formulate Jamba Juice Inc.’s key strategies.
1.9 Business Operating and Pricing Strategies
All strategies developed for use in this business plan were ranked according to Net
Present Value. The most profitable offensive strategy was expansion. This strategy
essentially doubles the sales and total assets of Jamba Juice Inc. The Net Present Value
3
of this strategy if UShs 1,504,546,408 over a 5-year period at a Discount Factor rate of
17%. This strategy will also act as a marketing tool because consumers are more likely
to find the store as it expands throughout Paris. These strategies are designed to
supplement the revenue generated by smoothie sales and to diversify Juicy Boost’s
product line.
Jamba Juice Inc.’s pricing strategy is to sell a premium product at a value price. Price
levels are rising in Kampala, and Jamba Juice Inc.’s sales prices are set at UShs 12,000
for a medium-sized 16oz smoothie and UShs 10,000 for a small-sized 12 oz smoothie.
Compared to local competitors, these prices are relatively low and will attract positive
attention from both locals and tourists. There is an excess supply of food and beverage
retailers in Kampala, and Jamba Juice Inc.’s value-pricing strategies will ensure a
strong smoothie demand. Jamba Juice Inc. Advertisement will be done through
posters, radio, samples, word-of-mouth, and social networking websites.
1.10 Target Market
Jamba Juice Inc.’s target market is large—2-million people inhabit the Kampala metro
region, and over 1.3-million tourists visit or transit through Kampala each year.
Another key target market segment is the Kampala middle-class young professionals
and corporate people falling in the 20-45 age bracket. Due to this large consumer
potential, Jamba Juice Inc. needs a very small market penetration to produce profits.
1.11 Projected Sales
Based on fixed costs of UShs 242.2 million in Year-1 and increasing at a rate of 10% per
annum, Jamba Juice Inc. must sell at least 50 smoothies everyday day to break even.
Comparing this requirement to data collected from Jamba Juice’s Foothill location—this
minimum sales quantity per day is easily achievable. Jamba Juice at Foothill sold an
average of 377.9 smoothies per day in the cold winter month of February, 2011 in San
Luis Obispo – USA. Jamba Juice Inc. will operate in a much larger city (Kampala with
a current population of more than 1.6 million residents) and have a much greater sales
potential than the Jamba Juice on Foothill in the USA.
1.12 Financial Analysis
Jamba Juice Inc.’s projected financial ratios maintain competitiveness with industry
averages. This business plan is designed to reduce unnecessary debt, while maximizing
sales potential. Due to the relatively small asset and debt figures, Return on Equity and
4
Return on Assets appear to be inflated. During Year-5 of operations, Jamba Juice Inc. is
projected to have a Profit Margin of 12%—33% greater than industry averages.
The key financial performance highlights of Jamba Juice Inc. are presented in Figure 1
and Table 1 below.
Figure 1: Performance Highlights (PY2 – PY5)

Sales Gross Margin Net Profit
3,000,000,000
2,500,000,000
2,000,000,000
Ug Shillings
1,500,000,000
1,000,000,000
500,000,000
0
PY 2 PY 3 PY 4 PY 5
Table 1: Key Project Performance Parameters (UShs)

KPI/Year Year 2 Year 3 Year 4 Year 5
Sales 2,210,400,000 2,431,440,000 2,674,584,000 2,942,042,400
Operating Profit 864,531,605 966,590,697 1,078,855,699 1,202,347,201
Tax 210,159,482 244,737,209 282,376,710 320,384,160
Net Profit / [Loss] 490,372,124 571,053,488 658,878,989 747,563,041
Gross Margin 70.00% 70.00% 70.00% 70.00%
Operating Margin 39.11% 39.75% 40.34% 40.87%
Net Margin 22.18% 23.49% 24.63% 25.41%
Return on Investment 106% 123% 142.25% 161%
Fixed Assets Turnover 2.13 1.64 1.32 1.11
Debt Coverage Ratio 3.49 4.25 5.20 5.88
Times Interest Earned Ratio 16.01 23.69 39.09 83.50
Break-even Point (BEP): UShs 557,766,144 at a capacity utilization of 18.96%

Payback Period (Loan): 1.81 Years
NPV at 17%: UShs 1,504,546,408
IRR: 132.10%
5
2.0 BUSINESS DESCRIPTION
2.1 Business Overview
The Juice and Smoothie Bars/Cafés industry has come a long way and it is still evolving
with loads of smoothie drink makers bringing in creativity in terms of flavours and
packaging into the industry. Smoothie drinks have been around for many years, but
they are becoming more popular in recent time due to the health benefits that comes
with it.
This industry consists of businesses that basically make and retail smoothies and fresh-
made juices. A smoothie is a blended, sometimes sweetened beverage primarily made
from fresh fruit or vegetables combined with ice, frozen fruit or other frozen
ingredients. Some juice and smoothie bars/cafés give their clients option of add-ins,
such as soy milk, whey powder, green tea and herbal or nutritional supplements et al.
Smoothie drink is one commodity that is consumed in all parts of the world and of
course those that are in the business of producing smoothie drinks is known to generate
sales year in year out if the business is well – managed. As a matter of fact, economic
downturn hardly affects the consumption of smoothie drink simply because it is a
commodity that is as affordable and considered a healthy substitute for soft drinks and
other processed juices et al.
No doubt, The Juice and Smoothie Bars/Cafés industry has grown steadily over the last
five years as juice and smoothie bars have adapted to the rapidly changing consumer
preferences and lifestyle. In recent years, the perceived high sugar content of some
smoothies and juices has forced the industry to adapt its offering.
Because of this reason, cold press juice, which is made by hydraulically chopping and
crushing produce such as spinach, kale and ginger without using heat, thereby yielding
highly nutritious juice, has risen to prominence.
In the United States for instance, the Juice and Smoothie Bars/Cafés industry is a
thriving sector of the economy of the United States of America and they generate a
whooping sum of well over US$2 billion annually from more than 1,435 registered and
licensed juice and smoothie bar companies scattered all around the United States of
America. This means that each business in the sector generates an average of about US$
1.4 million per annum.
6
The industry is also responsible for the employment of well over 35,861 people. Experts
project The Juice and Smoothie Bars/Cafés industry of the United States to grow at a 2.9
percent annual rate.
In Uganda, where health consciousness is now beginning to receive a lot of attention

owing to the phenomenal increase in the incidence of lifestyle-related diseases like
cardio-vascular diseases (CVDs), diabetes, certain types of cancers and the like, there is
no better time like now to introduce the product and tap into this emerging Juice and
Smoothie Bars/Cafés domestic market with a high sales and growth potential. Besides,
Ugandans are known to follow modern trends in what sort of cars they drive, what
kind of smart-phones they use, where they eat from, what type of foods and drinks that
they consume, etc. Middle-class Ugandans love vogue and they are trendy people who
are prepared to pay a price for something that they consider to be a market hit. In
Uganda, the middle class and the educated segmented of the population though still
relatively small, are however a large enough segment that offer an excellent fast-
growing market opportunity for an exquisite and well-packed juice and smoothie menu
with a lot of tasty and healthy ingredients.
Jamba Juice Inc. will start on a small scale by staging its operations and sales from two
(2) sales outlets that will be centred at the large shopping malls’ food court booths in the
up-market sub-urban areas of Kampala like Bugolobi, Kololo, and Nakasero. As the
business grows and expands, the company will consider bottling its juice and smoothie
drinks and selling them to all the urban supermarkets or grocery stores, restaurants,
fitness centers and local cafes. This will mean the setting up of adequate structures for
the complementary chains of outlets and distribution networks. The Company plans to
investment a substantial amount of its incremental incomes into aggressive marketing
and advertising campaigns to capture the attention of particular markets.
2.2 Business Proposal Highlights
• The Juices and Smoothie-bar, named Jamba Juice Inc., will be selling a variety of
mixed and instantly prepared, 100% natural fruit juices, shakes and smoothies to
take away.
• The target group is composed of health-conscious consumers looking for

convenient fast-food alternatives.
• The health benefits and tastes of our juices are the core of our Company and will
be transmitted through our efficient service.
7
2.3 Justification of Business Venture
Sustainable juice bars and smoothie cafés sell freshly squeezed juices and blended
smoothies made from organic, local, and seasonal fruits and vegetables. Many people
are seeking out healthier fast food options, trying to incorporate more fruits and
vegetables in their diets, and have heard that juicing is a great way to capture a lot of
vitamins and minerals from raw produce that might otherwise be lost during cooking
or industrial processing and packaging of foods.
Juice bars and smoothie cafés are essentially small-scale businesses that can be started
inside a gym, in a kiosk at the local shopping mall, or anywhere else that one might be
able to simply rent some space, as opposed to a stand-alone building. There are many
great ways to incorporate locally sourced, organic and seasonal produce that will
greatly improve the environmental footprint of the business, as well as the health of our
offerings and the creation of community in our business locality.
2.4 The Opportunity
Government records and statistics show the annual production of fruits to be 9,559,794
MT (FAOSTAT, 2013), but this is only 20% of the potential area exploited and this can
be caused by lack of where to send and how to use the increased production.
2.5 Need to be Fulfilled
This project, so to speak will focus on increasing the usability of fruits which usually
experience enormous losses especially during the seasons and creates new
opportunities for the Uganda fruits sub-sector through instant preparation of fruits for
natural fresh juices and smoothies. More so, the initiator of this idea is a professional
expert in the field of post-harvest fruit processing, having had considerable experience
in the preparation, packaging and retail selling of a variety of mixed and ready to take
away 100% natural fruit juices and smoothies in the UK and USA.
2.5.1 How the Proposed Business will fulfill this Need
With the capacity of operation which business plan to operate in, the company will
instantly prepare fruits for juices, shakes and smoothies which will be consumed by a
niche market of up-market middle and high income earners who have the taste for such
products but have not been able to access them from local fruit product sales outlets in
Uganda.
8
3.0 COMPANY INFORMATION
Initially idea was brought by one of the partners who is a professional in this field and
she has long term experience in food processing. Later on the project concept was
picked up by two other partners who contributed towards some of the project
investment capital. Jamba Juice Inc. is seeking to build an excellent reputation of
offering the most delicious, nutritious, 100% natural juices, shakes and smoothies with
no artificial flavours, colors or preservatives in the market.
3.1 About Jamba Juice Inc.
Jamba Juice Inc. is a company registered and incorporated in the Republic of Uganda
with limited liability. Jamba Juice Inc. is made up entirely of Ugandans with immense
sales experience and management capabilities in the Juice and Smoothie Bars/Cafés
Industry and a host of other self-entrepreneurship related activities. Jamba Juice Inc.
has three (3) shareholding Directors namely: 1) Phoebe N. Kankazi; 2) Fred Washaba;
and 3) Aggrey Ryan Namanya. The Head Office of Jamba Juice Inc. is on the Third
Floor, UAP Insurance Building, Plot 1 Kimathi Avenue, Kampala.
The legal structure of Jamba Juice Inc. is that of a limited liability company, the details
of which are provided in Table 2 below:
Table 2: Company Legal Structure

Shareholder Shares held (UGShs) [%age]
1. Phoebe N. Kankazi 4,100,000 41%
2. Fred Washaba 2,000,000 20%
3. Aggrey Ryan Namanya 2,000,000 20%
4. Floating Shares 1,900,000 19%
TOTAL SHAREHOLDING 10,000,000 100%
3.2 Company Vision
“To be perceived as the provider of the most delicious, convenient and healthy grab
and go alternative juice drinks in Uganda”.
3.3 Company Mission
“To provide a healthy, tasty and refreshing experience with our 100% natural fruit
juices, shakes and smoothies to take away. To serve and satisfy the nutrition needs of
9
health-conscious consumers through the high quality of our products. We contribute to
make Uganda a healthier nation”.
The Jamba Juice Inc. Company Mission integrates three core elements: -
 Quality: Our fruit juices are the highest quality, most nutritious food
products...because we will accept nothing less.
 Innovative: Our products have always been in the forefront of the health and
nutrition wave. Innovative products, state-of-the-art manufacturing, quality
assurance and industry expertise are the bases for our past and future successes.
 Integrity: Our customers depend on the quality of our juice products. Our
commitment to the highest standard is the foundation of our customer's trust in
Jamba Juice Inc. delivering freshly made juice to consumers depends on
extensive cooperation and mutual reliance between supplier and retailer. We
stand behind our product, our service and our word.
3.4 Company Objective
The products to be made include: juices, shakes, smoothies, and yogurt-based

smoothies. Neutrality will govern the products made since the raw materials will
basically comprise of fresh, mature fruits of the season without non-fruit fortification.
Jamba Juice Inc. products are intermediate since they are from raw material to juice
and smoothies made products that are then consumed by the consumer with minimal
value-added processing. Availability regardless of the seasonality forms another niche
value to Jamba Juice Inc. products.
The main objective is to ensure sustainable economic, food, health and nutrition
security by seasonal reduction of fruits post-harvest losses by at least 10% through
processing.
3.5 Specific Objectives
 To become the best juices and smoothies bar/café in Uganda.

 To improve customer satisfaction through the processing and delivery of good
quality juices and smoothies products.
 To turn in profits from the first year of operations.
 The making and selling of unique, innovative and healthy products that will
differentiate Jamba Juices Inc. from the other local juice shops in Uganda.
10
 To open four new outlets within the next five years in other up-country towns of
Uganda.
 To exceed UShs 2.43 billion in annual sales by the third year of plan
implementation.
 Maintain tight control of cost and operation during expansion.
3.6 Key Success Factors
 Store (juices and smoothies bar/café) design that will be both visually attractive
to customers, and designed for fast and efficient operations.
 Employee training to insure the best juices/smoothies preparation techniques.
 Marketing strategies aimed to build a solid base of loyal customers.
 To serve products of the highest quality and combine this quality with great
service and atmosphere.
 To deliver customer satisfaction with high quality juices/smoothies and services.
 To employ competent management staff who are able to make juices, smoothies
and shakes that are fresh and of good quality.
 Location is our key success factor meaning that our chosen locations for the
juices and smoothies bar/cafés in Kampala will be very suitable for our business.
 Having in place a management that treats every employee equally. We will
create an atmosphere where the employees have passion for work and can earn
good income.
 Our commitment to providing excellent quality juices, shakes and smoothies at
all times.
 Excellent Customer Service. Quick delivery and each customer will be treated as
a special and honoured guest in our homes.
 Product quality. Not only great food but great service and atmosphere.
 The creation of a unique, innovative, up-scale atmosphere that will differentiate
itself from other juice selling outlets in town.
 Fresh juices, shakes and smoothies daily will give customers a unique experience
as well as excellent product.
 Maintain good relationships with reliable raw material suppliers
 Able to generate repeat and referral customers.
3.7 Company Locations and Facilities
The location of the selected store fronts in the up-scale areas of Bugolobi, Nakasero,
Kololo/Kiseminti areas within the food courts of the existing strategically-located large
shopping malls such as The Village Mall, Acacia Mall, etc. is meant to catch the eye of
11
the targeted niche market in such places which generate high volumes of shoppers
traffic on a daily basis. This is expected to lead to the fast build up and growth of
business within the first year of the project with sustained and incremental growth of
business in the subsequent years of trading. Besides the strategic locations of the Jamba
Juice Inc. at such high traffic volume shopping centres, it will also allow for the easy
transportation of inputs and raw materials from the markets and raw material suppliers
to the store fronts. These same locations also make it easy for employees and staff of
Jamba Juice Inc. to move to work in the mornings and depart from the workplace in the
evenings at the close of business. These shopping malls are also well-facilitated in terms
of basic services and infrastructure like ICT, electricity, and water that are key
determinants in the selection of an ideal business location.
3.8 Required Funds to Start
Other than the standard overhead costs such as rent and utilities, the largest
investments in opening a sustainable juices and smoothies bar/café will probably be the
money to purchase commercial quality juicers, blenders, and mixers, along with
refrigerators and freezers for cold storage.
At this time, the Jamba Juice Inc. juice and smoothie bar requires UShs 443.2 million
(approx. UShs 450 million) of external funds. Below is a breakdown of how these funds
will be used:
12
Table 3: Initial Business Investment Costs (In UShs)
Item Own External Total
Contribution Support
Equipment
Cost of Equipment 0 141,600,000 141,600,000
Air Freight 0 24,500,000 24,500,000
Local Transportation 0 6,300,000 6,300,000
Insurance (US$ 750) 0 2,600,000 2,600,000
Sub-Total 0 175,000,000 175,000,000
Rent for 2 outlets (First Year) 88,200,000 88,200,000
Pre-Operating Expenses
Licenses & Legal 0 30,000,000 30,000,000
Store remodeling and installation costs 0 46,000,000 46,000,000
Operation and management equipment 0 26,000,000 26,000,000
Consulting 0 12,000,000 12,000,000
Marketing 0 35,000,000 35,000,000
Start-Up Working Capital (1 Year) 0 31,000,000 31,000,000
Sub-Total 0 180,000,000 180,000,000
Vehicle 20,000,000 0 20,000,000
Total 20,000,000 443,200,000 463,200,000
Though relatively new, the directors realize their Company's vast potential market and
opportunity for growth given implementation of the appropriate strategies, aided by
the necessary finances.
13
Figure 2: Use of Funds
Use of Funds
4.32%
6.69% Store Equipment
7.56% First Year Rent
2.59% 37.78%
Licences & Legal
5.61%
Store remodelling
Operation & mgmt eqpmt
Consulting
9.93%
Marketing
6.48% Start-up Working Capital

19.04% Vehicle
14
4.0 PRODUCTS & SERVICES
4.1 Product Description/Offering
Jamba Juice Inc. will create an extensive menu with five categories of juice to sell; fruit
juices (including multi-flavoured juices), vegetable juices, super food drinks,
smoothies and fruits & vegetable shakes. Our preliminary market research findings
indicate that the most popular fruit juices are Apple, Banana, Orange, Pineapple,
Mango and Strawberry. These juices are referred to as base juices because they can be
mixed with other types of juice.
Suitable vegetable juices include spinach, celery, beets, tomatoes, wheat grass and
carrots. We shall also consider adding spices like ginger, garlic, nutmeg or cinnamon to
our vegetable juice menu while in the smoothie’s category we shall include dairy
products like yogurts, soya milks or rice milks – thus adding to product diversity using
other locally-available agricultural products.
All Jamba Juice Inc. products will be made of local fruits, free of additives and artificial
preservatives. There will be no need for adding sugar, as the fruits contain natural
sugars. Fruits available during that particular season will be harvested. A portion
would be used, the remainder either dried or frozen in a deep freezer for out-of-season
use.
Our smoothies will be blended from a variety of fruits, juices, sorbets, and yogurts. The
smoothies will be offered in 12 oz (350 mls), 16 oz (470 mls) and 24 oz (700 mls) serving
sizes, this is largely due to the fact that Ugandan portions are much smaller to those in
the US. Jamba Juice Inc. will also provide delicious smoothies to tourists on the go, as
well as a relaxing environment that caters to the Ugandan custom of social dining.
Jamba Juice Inc.is an evolution of proven US companies that has been fine-tuned to
match the Ugandan lifestyle. Jamba Juice [US], a major inspiration for Jamba Juice Inc.,
receives annual revenues of US$301.6 million.
Furthermore, Jamba Juice Inc.’s top priority (along with serving quality drinks) is to
comply with all national and local laws regarding the sale of food and beverages to the
general public. Within the Jamba Juice Inc. facility, the Company will handle all
fruit/dairy products, properly (and will inform employees on safe food handling
practices) which have higher incidences of spoilage. The Company will ensure, at all
times, the Juice and Smoothie Bar/Café facility is in compliance with all health and food
safety laws.
15
With growth, these other products will be introduced at a later stage, and where
necessary, only use their natural sugars:
 jams and jellies (using seasonal fruits)
 chutneys (e.g. mammey apple)
 stews (e.g., gooseberry and golden apple)
 juices, slushes and milkshakes (using coconut milk as the base)
 dried fruit snacks and chips (using solar energy)
 yogurt and ice-cream (using the local fruits)
 breads and sweet breads (using flour from local carbohydrates, e.g. breadfruit
and cassava), pies (using the purée from the juicing as the filling) and cakes
 trail mix (using locally grown nuts and dried fruits)
 sweets, e.g., guava cheese (made from all natural ingredients) and
 cookies (using local fruits for flavouring)
4.2 Benefits of Jamba Juice Inc. Products
At this point, the three matters at hand are:

 Combating obesity;
 Encouraging better eating habits;
 Making full use of local fruit.
Benefits of Jamba Juice

• Up to twice the fruit and half the ice of the competition.
• No artificial sweeteners, colouring or additives.
• Organic live active yogurt cultures (a probiotic) and prebiotics.
• Smooth, natural sorbets which use inulin (a probiotic) to reduce sugar and add
many health benefits (no sherbets or ice creams).
• Over 100% of the daily requirement of fruit and pure juice in most of our
smoothies.
• A free nutritional supplement in every smoothie.
16
5.0 MARKET & INDUSTRY ANALYSIS
The demographics of Jamba Juice Inc. customers are as follows:

 Young professional, ages 20 - 45;
 Average income of UShs 40,000,000+ a year;
 Involved in athletic activity;
 Shop in upscale health/natural food stores;
 Middle-class children, ages 2-15.
5.1 Background Analysis: Industrial Processing and Packaging of Fruit

Juices in Uganda
A fast growing middle class and a more health conscious population is spearheading
the increased consumption of fruit juices.
More Ugandans are consuming fruit juice even though its price remains slightly higher
compared to other soft drinks.
Other soft drinks; imitation drinks such as ‘Safi juice’ and carbonated soft drinks such
as soda are the most popular soft drinks consumed in Uganda. This is partly explained
by their prices and popularity of their brands.
But packed fruit juices have only become popular with consumers in the last decade.
Prior to that, it was rare to find people taking fruit juice as it was labeled expensive and
limited to a certain section of the population. This is however changing, as more people
embrace packed fruit juices.
Even though there are hardly any statistics to quantify this trend, the growing
investors’ interest in the sub-sector confirms the growth in consumption.
There are at least seven certified and large scale fruit juices/drinks producing
companies, compared to the less than five companies that were operating at the end of
2010.
Altogether, there are 52 certified soft drinks products manufactured by less than 15
companies in the country.
17
Uganda is one of the biggest fresh fruit producers on the continent – with an estimated
9,559,794 MT of fresh fruit produced in 2013. However, a huge percentage of these fruits
have been exported at low garden prices while some are locally consumed and others
rot in the gardens.
This trend has been attributed to few fruit juice producers in the country.
Growth in competition
Although processing is still considered low due to limited extraction of juice and
packing, the positive strides witnessed in the last two years signal improvement as both
juice production and farmers’ involvement has grown.
By the end of 2010, there were a few fruit juice producers and the market was
dominated by House of Dawda (Britannia Allied Industries Limited) juice products—
Splash and Yojus.
However, in 2011, two big companies; Sameer Agriculture Livestock Ltd (SALL) and
Coca Cola joined the local market, each launching a multi-billion fruit juice plant.
Sameer announced that it had invested UShs 5.2 billion in a juice plant and would use
locally grown fruits to produce a variety of high quality juices under the brand Diama
juice.
On the other hand, Century Bottling Company (CBC), manufacturers of Coca Cola
products introduced Minute Maid juice brand after investing about UShs 39 billion
(US$ 15 million) in a juice processing line at its Namanve plant. Coca Cola has been
producing Minute Maid in other countries but decided to also introduce it in Uganda as
a result of a steady growth in fruit juice consumption and the need to widen the variety
of soft drinks.
The increasing market trend in the consumption of fruit juices in Uganda is due to the
fact that more people prefer fruit juices to other soft drinks as the latter are
recommended by medical experts for their composition of natural and healthier
ingredients.
While the market continues to appreciate fruit juices, the fruit juice manufacturers
continue to face high costs that keep the prices of fruit juices relatively high compared
to other soft drinks.
18
Among the major factors that influence high fruit juice prices are: steep import duty
taxes on long life packaging materials and the high cost of capital. To avoid these tax-
and capital-related constraints, one has to literally process packaging materials locally
and strive to access lower cost capital for investment in cold storage facilities that would
extend fruit juice processing to off-season periods.
Due to the increasing demand for fruit juices, processing plants are also directly
spending on farmers to ensure stable supply of the raw fruits. For example, Britannia
Allied Industries (House of Dawda) is distributing fruit seedlings to farmers, with
more than 20,000 already given out. Under this scheme, the benefiting farmers agree to
grow and supply fruits to the seeds distributor at an agreed price.
Additionally, since the launch of Minute Maid juice last year, Century Bottling
Company (authorized manufacturer of Coca Cola products in Uganda) has been
working with farmers in the districts of Soroti and Pallisa, providing them with better
techniques of mango farming, good seeds and a market for their fruits.
5.2 Market Segmentation [Fruit Juices and Smoothies in Kampala]
Jamba Juice Inc. has identified seven metro locations within Kampala metro area where
we can reach our target customers:
 Bugolobi-Nakawa;
 Kololo-Kiseminti;
 Nakasero-CBD;
 Naguru-Ntinda;
 Bukoto-Kisaasi;
 Muyenga-Kansanga;
 Makerere-Wandegeya
19
Figure 3: Market Analysis (Pie)
Market Analysis
Makerere-Wandegeya
Naguru-Ntinda
Bugolobi-Nakawa
Kololo-Kisiminti
Muyenga-Kansanga
Nakasero-CBD
Bukoto-Kisaasi
Table 4: Market Analysis

2017 2018 2019 2020 2021
Potential Customers Growth CAGR1
Makerere-Wandegeya 10% 60,000 66,000 72,600 79,860 87,846 10.00%
Naguru-Ntinda 10% 75,000 82,500 90,750 99,825 109,808 10.00%
Bugolobi-Nakawa 10% 85,000 93,500 102,850 113,135 124,449 10.00%
Kololo-Kisiminti 10% 75,000 82,500 90,750 99,825 109,808 10.00%
Muyenga-Kansanga 10% 62,000 68,200 75,020 82,522 90,774 10.00%
Nakasero-CBD2 10% 90,000 99,000 108,900 119,790 131,769 10.00%
Bukoto-Kisaasi 10% 48,000 52,800 58,080 63,888 70,277 10.00%
Total 10.00% 495,000 544,500 598,950 658,845 724,730 10.00%
5.3 Industry Analysis
The coffee and non-alcoholic retail shop (which includes smoothie and juice bars)
industry has experienced a healthy level of growth over the past decade. In Uganda,
juice and smoothies bars/cafés are to be found almost exclusively in the capital –
Kampala with an estimated number of about 20 scattered in various locations of the city
and still growing. This number is expected to increase at a rate of 5% per annum. While
the growth rate of the number of establishments has increased 5% per year, the
1 CAGR: Compound Annual Growth Rate

2 CBD: Central Business District
20
revenues generated per establishment have increased at a rate of 10% per year. As the
country has become significantly wealthier of the last ten years, more and more
Ugandans (especially in the working class highly urbanized areas like Kampala) are
eating out. Time has also become a concern for the average Kampalan family. Market
surveys have shown that more than 20% of Kampalan families eat out at least one night
per week. Kampalans, on the whole, have also become much busier. More and more
families now have two incomes, and as such, the tradition of staying at home and
cooking meals is vanishing.
Five Forces Analysis

• Smoothie industry is in a growing stage, with few players; differentiation is key.
Potential Entrants
High
Moderate
Suppliers Buyers
Competitor
Rivalry
Low
Moderate
High
Substitutes
5.4 Customer Profile/Target Market and Demographics
Juice and Smoothie Bar’s average client will be a middle to upper middle class man or
woman living in the Company’s target market. Common traits among clients will
include:
• Annual household income exceeding UShs 20 million
• Lives or works no more than 15 miles from the Company’s locations.
• Will spend a minimum of UShs 25,000 per visit to the Jamba Juice Inc. outlets.
With about 36 million people living in Uganda presently and over 1.3 million tourists
visiting each year, our target market will be admittedly large. However, Juicy Boost will
require a small market penetration to achieve profitability (Paris Region: Key Figures).
Smoothies appeal more to younger populations; thus, Juicy Boost’s target market will
involve younger populations. There are an estimated 98,000 students in higher
education living and studying in Kampala. Fruit smoothies also appeal to the young
21
adult generation that is mindful of their health as well as their children’s. According to
the Uganda Bureau of Statistics (UBOS) – 2015 Statistical Abstract, the central statistical
database for Uganda, there are 10,890,600 people ranging from ages 20 to 44 that fit this
description throughout Uganda, and 473,885 people falling within this age bracket in
the Kampala metro area. This brings the grand total of Jamba Juice Inc.’s target market
to 571,885. This figure represents the potential for repeat customers; however, the 1.3
million tourists that travel to Uganda (and through Kampala) each year can also be a
huge contributor towards Jamba Juice Inc.’s annual revenues and should be considered
as part of the target market.
5.5 Market Analysis
Primary Research
Survey Results (90 respondents):

• Positive attitude towards Smoothies / freshly made natural juices.
• High demand – not saturated / growing market.
• Accepted by the target group / health-conscious people perceived as healthy
fast-food alternative (tourists and short-/long-term residents).
Main reasons for not consuming:

• Doubts on quality / No confidence in cleanliness.
• Too expensive.
• Not available (in the variety that I would like them).
An important fact is the target audience. Different countries have different cultures and
different flavours. We need to know what the costumers prefer; otherwise they would
not buy our products. So, it is necessary to find out what the most popular flavours are.
The best way to get information about what the customers like is during market
surveys. We asked 80 people at the age of 16 to 45 within the Kampala metro area to get
their opinions about juices, smoothies and healthy food in general.
22
Figure 4: Consumption of Healthy Food/Drink
Consumption Trend
8%
10%
Daily
Weekly
52% Once a month
Never
30%
Figure 5: Favourite Fruit
Favourite Fruit
20%
30%
Strawberry
Orange
Banana
Peach
22%
28%
23
Figure 6: Price of a Smoothie
Price of a Smoothie
3%
18%
32%
Ushs 2,500-5,000
Ushs 5,000-10,000
Ushs 10,000-15,000
Ushs 15,000-20,000
47%
Figure 7: Size of a Smoothie Cup
Size of a Smoothie Cup

1%
19% 22%
275 ml
350 ml
470 ml
600 ml
58%
The survey shows that most of the people are interested in a juice or smoothie bar. More
than 75% of the informants eat daily or weekly healthy food. The favourite flavours are
strawberry, orange, banana and peach. They prefer a small price because most average
Kampala residents do not have much money. The optimum size is about 350 ml.
24
The following chart illustrates the percentage of the target market who enjoy eating
fruit. It must be noted that 15% of the respondents who said they did not like fruit went
on to say that they dislike raw fruit, but would consume it in another form. Mangoes
and bananas were the preferred fruits of the majority of the sample.
Figure 8: Feelings towards Fruits
Feelings towards Fruits
25%
Like Fruit
Dislike Fruit
75%
Kampala consumers’ favourite fruit products are given in the following chart. The Y
axis represents the number of respondents (consumers).
25
Figure 9: Favourite Fruit Products
Favourite Fruit Products
Favourite Fruit Products
250
Number of Consumers
200
150
100
50
80% of the Kampala residents interviewed said they would patronize Jamba Juice Inc.,
65% promised to visit daily.
Secondary Research
Consumer Trends:
• Constant growth rates of the juice market in Uganda!

• Soft drink market in Uganda is projected to rise up to US$ 300 million in 2017.
• “Resilience of health products during the recession to customers´ desire to
maintain their health / wellness habits while avoiding risky cheaper options”
• “Growing demand for “easy health” (convenience) in the shape of functional
foods”
• “Widespread consumer interest in products positioned as health-boosting” →
preventative care
• “Health benefits are driving sales of functional foods and beverages”→ value-
added-products
5.6 SWOT Analysis
In determining our business strategies, we have implemented the use of a SWOT

analysis to develop a list of the factors most crucial to the success of Juicy Boost. These
26
factors are broken down into External (Opportunities, Threats) and Internal (Strengths,
Weaknesses). They are then given weights according to their relevance to Juicy Boost’s
success and charted onto a list of manageable key factors from which business strategies
were derived (David, Strategic Management). The appendix provides an in depth list of
the weights and factors utilized in Jamba Juice Inc.’s SWOT analysis.
External Factors
Weather/Seasonal Sales:
The most pertinent threat to the success of Jamba Juice Inc. is Kampala’s weather cycle,
and more directly, seasonal sales. Weather peaks in summer months and drops
substantially during the wet seasons (i.e. March – May and October – December). In the
beverage industry, cold weather is an obvious deterrent to overall sales, and requires
the most attention from strategic plans.
Competition:
The next largest threat facing Jamba Juice Inc. is competition. The direct competition is
relatively small and in most cases very weak. In the Kampala metro area, there are an
estimated 20 juice and smoothies bars spread out in diverse locations of the city. Only a
few (about 5 of them) operate as medium-sized facilities with excellent juice/smoothies-
preparation kitchens and store fronts for customer service, while the rest are basically
the size of small restaurants that combine the business of juicing with fast-food service
and along with coffee shops in other instances. Practically, all the 20 juice and smoothies
bars/cafés surveyed operate from single-unit locations in Kampala without any
additional store fronts in any other parts of the city. They also offer a limited range of
juices and smoothies to the market and instead make up for their short-fall in
juices/smoothies menus with a variety of other typical restaurant fast-foods and
manufactured beverage (including soda and mineral water). This competition is also
limited by their thin levels of professional expertise and experience in the making of up-
market juices and smoothies and a lack of innovation in their product offers.
Despite the direct competition being relatively weak, Kampala boasts over 1,000
restaurants, which all serve as competitors to Jamba Juice Inc. Kampala is filled with
bars, cafes, and bistros, making it difficult for any one company to obtain a significant
market share. However, the reason so many food and beverage companies thrive in
Kampala is due to its large urban population (by African standards) and tourism that
the city receives each year.
27
Table 5: Juice and Smoothies Bars in Kampala
S/No. Name Location Contact Phone Rating
1. Holy Crepe 17 Kololo Hill Lane, +256-754-843576 4.8*
Kampala
2. Markitah Beverages/Juice Kalinabili, Ntinda – +256-785-149967 4.7*
Kampala
3. Juice Avenue Acacia Mall Kololo +256-790-424587 3.7*
4. Juice Ambiance City Centre Kampala +256-702- 3.7*
356320/753-002215
5. Bean Café Ggaba Road, Kansanga, +256-776- 5.0*
Kampala 750125/772-705397
6. Paradise Gardens Kajjansi (Kampala – Entebbe +256-779-870592 4.0*
Highway)
7. Splendor Salad Bar- Cham Towers (City Centre +256-704-411388 4.0*
Nutrition Kampala)
8. KweNu Kampala Bukoto-Kisaasi Road, +256-777-105496 4.9*
Bukoto – Kampala
9. Scooby’s Juice and Wine off Mobutu Road, Makindye +256-705-340982 _
Bar
10. B Fresh Juice Parlour City Centre (DTL Plaza, +256-782-132898 5.0*
Luwum Street)
11. Pal Foods Uganda Wandegeya Market Building +256-789-519111 _
12. Planet Ice Lugogo Lugogo Forest Mall +256-700-729393 5.0*
13. Jamulu Fruit World City Centre (Namaganda +256-705-414830 _
Plaza, Luwum Street)
14. Juice Life Bar City Centre (Kiseka Market +256-752-893922 5.0*
Auto Centre Building)
15. Kem Tazo Restaurant Mbuya +256-750-558220 _
16. Café Liven Kisoota Street, Kisaasi +256-704-387116 3.0*
(Kampala)
17. Anvu Terracota Grill, Plot 689, +256-776-492952 _
Bukoto-Kisaasi Rd.
18. The Little Donkey Dotta House, Plot 5554, +256-787-077156 4.0*
Kisugu Rd. Namuwongo,
Kampala
19. Lynda’s Eatery Kagabi Stage, 400m off +256-772-445512 2.0*
Stella Stage, Entebbe Road,
Kampala
20. Umami Smoothies and Plot 37/39, William Street, +256-701-947592 1.8*
Juices Shop L1009, Kampala
28
Jamba Juice Inc. anticipates overcoming this mild market competition by offering a
much more diversified range of fruit and vegetable juices, shakes and smoothies on the
market that it will continue to improve and add innovations with time. Secondly,
Jamba Juice Inc. will have the added advantage of selling a well-branded and
internationally known product brand (Jamba Juice) in the area of making and selling
and selling juices and smoothies while specializing and being as price-competitive as
possible on its product offers to the market. Jamba Juice Inc. will also leverage its
professionalism and expertise in making and selling of high quality fruit and vegetable
juices, shakes and smoothies in multiple locations of Kampala and not only just from a
single sales outlet. The Company will put in place state-of-the-art kitchen equipment
and store front furniture to attract and retain repeat customers that it expects to grow in
volume with time.
Population/Tourism:
Uganda is currently home to about 36.86 million people and over 1.3 million tourists
come to Uganda with practically all of them transiting through its capital Kampala
given Uganda’s small size as a country. This rather relatively modest inflow of tourism
and large inhabitant population enable businesses to stay profitable with extremely low
market shares.
Marketing/Promotion:
A major external factor that coincides with this big market for food and beverages in
Kampala is marketing and promotion. This factor doubles as an opportunity and a
threat, if marketed properly Jamba Juice Inc. can boast high profits. Within the confines
of Kampala, Jamba Juice Inc. must utilize available marketing means to attract a strong
consumer base consisting of locals and tourists. The potential profitability of Jamba
Juice Inc. will revolve around obtaining local recognition—marketing and promotion is
an external factor of upmost importance.
Location:
At 189 km2, Kampala is a big city, making location a vital factor towards the success of
Jamba Juice Inc. This size makes it easy to be overlooked as a small business, which
causes location to be a major opportunity or threat for any company looking to open in
Kampala. This property will be rented because the purchase of property would push
Jamba Juice Inc. deep into dept., substantially increasing the company’s breakeven
point. Debt, if not properly planned and managed can be the end of a smoothie chain.
29
Social Trends:
Finally, a major opportunity that corresponds with Jamba Juice Inc.’s potential success
in Kampala is the country’s current social and health trends. Ugandan citizens have
begun to adopt similar eating patterns to western societies and are now facing an
imminent obesity problem. Ugandan obesity levels are at roughly 8% and nearly 20% of
the population is overweight. The Uganda Government has advertised the importance
of nutrition through marketing programs, which is essentially free promotion for Jamba
Juice Inc. The Ugandan Education and Health Systems have also taken steps towards
fighting obesity by educating youth and the general public on nutrition early on. With
the obesity epidemic reaching the forefront of Ugandan social issues, Jamba Juice Inc.
will provide all consumers with healthy alternatives to fast food—the opportunity for
success is substantial.
Internal Factors
Seasonal Sales:
In addition to being a threat and an opportunity, seasonal sales can become a major
strength of Jamba Juice Inc. As tourism in Uganda mostly spikes during the northern
hemisphere summer months, Jamba Juice Inc.’s total revenue potential increases as
well. Successful summer-time and hot-dry season sales can easily negate any low
grossing winter (northern hemisphere) and wet season (local) months due to the vast
amount of consumers that flood Kampala streets. Similarly, Jamba Juice Inc.’s reliance
on tourism may be a potential weakness. Maintaining profitability solely on
summer/dry season sales is not an efficient strategic plan, and when the actual
strategies are discussed, it will become apparent how Jamba Juice Inc. will overcome
the wet season months in Kampala when sales for cold drinks are low.
Nutritional Value:
A major strength of Jamba Juice Inc. is the health content in each beverage. Each
smoothie is packed with fruit, juice, low-fat yogurts or sorbets, and free boosts that
provide consumers with healthy on-the-go alternatives contrasting products that other
retailers offer. Jamba Juice Inc. controls everything that goes into each frosty smoothie
and will strive to maintain the nutritional value of each beverage, keeping our
consumer critiques positive.
30
Employee Satisfaction:
Along with healthy beverages, Jamba Juice Inc. will focus on maximizing the customer
experience by maintaining a high level employee satisfaction. Not only will customers
be more willing to revisit the store, but overall efficiency will rise due to a more
motivated workforce. Happy employees will lead to a greater Return on Equity for the
Company.
Unlimited Variety:
Another strength that Jamba Juice Inc. will utilize while in operation is its unlimited
variety. Jamba Juice Inc. can alter smoothie compositions and flavours to cater to wide
ranges of consumers to maximize profits.
Given that Jamba Juice Inc. is not yet in action, the strengths that were discussed in this
section are intended to be carried out when the business opens.
Soft Drinks Market:
The Uganda soft drinks industry is now stronger compared to about three years ago,
and is set for major growth going forward due to increased affordability and expected
increase in people’s spending power.
The market is witnessing strong growth in the plastic bottled soda sales compared to
returnable glass bottle sodas, which is reflective of the consumer trends. Many
customers today are always on the move and hungry for packaging that is convenient
and in line with their mobility.
With the growing number of health-conscious consumers and other consumer trends,
beverage manufacturers in Uganda are also struggling to stay relevant with most of
them deploying several measures including adopting alternative sources of revenue
through product diversification by adding lines of healthier drinks such as water and
juices.
Water and juices are said to be the fastest growing segments of the Uganda beverages
business and are now becoming a lifeline of sorts for soda companies that have been
struggling to revive tumbling soda sales.
31
Table 6: SWOT Matrix
Strengths: Weaknesses:
Healthy Seasonal Sales
Employee Satisfaction Intro of New Concept
Unlimited Variety Reliance on Tourists
Few Employees Expensive
Opportunities: 1. Sell healthy living snacks. 1. Buy property rather than
Tourism 2. Sell pedometer. rent.
Location/Cheap Rentals 3. Advertising Campaign: 2. Offer samples at tourist
Matches Consumer Trends radio/signs. areas.
4. Student ID Discount. 3. “Happy Hour”.
5. Eco-friendly cups/lids. 4. Supply youth sports
6. Strategic locations to leagues.
increase sales with different 5. Expansion.
types of customers visiting 6. Interest payment strategies.
Jamba Juice Inc. store
outlets.
Threats: 1. Offer coffee/hot food line 1. Promote in local gyms.
Seasonal Sales in cold season. 2. Website formulation.
Competition 2. Raffle Promos/Make own 3. Use frozen fruits to reduce
Marketing/Promo Flavor competition for costs.
prizes. 4. Establish long-term
3. Increase owner work hours agreements with suppliers
to minimize labour and forecast average costs,
expenses and maximize to reduce effects of
profitability. variations.
4. Use differentiation strategy
and brand awareness to
reduce the risk of threat of
new competitors.
32
6.0 MARKETING STRATEGY
The strategy of Jamba Juice Inc. is to focus on our niche market which is health/natural
food stores that serve the young active professional.
Jamba Juice Inc. Bar/Café intends to maintain an extensive marketing campaign that
will ensure maximum visibility for the business in its targeted market. Below is an
overview of the marketing strategies and objectives of the Company.
Jamba Juice Inc. will introduce its products at 20% off regular price during the first
month. In addition, Jamba Juice Inc. will co-sponsor local athletic charitable events to
raise the visibility of the brand name.
6.1 Marketing Objectives
 Potentially develop a catering menu for local event planners.

 Implement a local campaign with the Company’s targeted market via the use of
flyers, local newspaper advertisements, and word-of-mouth advertising.
 Obtain highly visible retail locations that can be easily seen by pedestrians and
drivers.
6.2 Marketing Strategies
Foremost, the Company intends to source highly visible retail locations in either a
stand-alone property or within a highly trafficked strip mall type setting in the up
market areas of Bugolobi, Kololo, Nakasero-CBD, Naguru-Ntinda, Bukoto-Kisaasi,
Muyenga-Kansanga, etc. This will allow Jamba Juice Inc. Bar/Café to have instant
recognition among local residents of its location and the types of juice, smoothie, and
food products offered.
Jamba Juice Inc. Bar/Café, on a regular basis, will distribute coupons/menus about the
range of product choices on offer directly to residents within the target market as well
as through local newspaper circulars. Such marketing will entail enlisting the health
benefits of each of them. At the onset of operations, the business will aggressively
promote a number of discount offers to drive traffic to the location so that patrons
become familiar with the business and the quality of its juices, smoothies, and other
food products.
33
We shall also make use of social media outlets such as Facebook, Twitter and Google+
page that are quite popular with the youth and middle-class segments of society
nowadays. We shall also start a descriptive and informative website on our products.
Sending news releases to local magazines and newspapers, sponsoring events to reach
out to people are some of the other innovative ways that Jamba Juice Inc. will use to
advertise its Juice and Smoothie products.
The social networking campaigns will be extremely effective in the Company’s

marketing strategy. Other marketing strategies will be as follows:
 Launching a website
 Commercials on the local radio and local television channels
 Posters
 Flyers
 Pages, contests and campaigns on social networking websites
 Coupons and specials
 Loyalty and membership programmes
 Prizes, packages and giveaways
 Product sampling
 Presentations at schools and universities in Kampala
 Presentations at the Parent Teacher Association (PTA) Meetings
 Meetings with the Staff, and Education Officials
 The use of social media
Target & Strategy
• “Jamba Juice Inc.’s customers are likely to be followers of a healthy type of lifestyle.
Additionally and as a result of the scarce restrictions that the product has in terms of age,
gender and benefits, a secondary will be the tourists that come to Kampala or transit
through it and young professionals that are adopting new trends”
34
Low Cost Strategy Differentiation
Mass Coffee Packed fruit juices
“Traditional Beer Soft drinks
consumers Regular Sodas Yogurt
of drinks” Water
Niche
“People in Energetic drinks
the healthy Light sodas 100% Natural fruit
living Vitamins juices to grab and go
trend”
Strategy
• Focused Differentiation Strategy.
• Strategically increase the number of locations within a short time-frame,

expanding the reach, making the products more available to the consumers.
• Take advantage of economies of scale.
• Strong brand management.
• In comparison to the first store, the following kiosks are small in size, investment
and running costs, and are flexible and easy to set-up.
Promotion
 Brand Proposition:  Promotion:

• Sampling
“Jamba Juice Inc. is the most • Flyers
convenient, fresh and tasty option to • Bonus / Loyalty Cards
nurture and energize your body and • Homepage
immune system at a reasonable price”. • SEM3 / SEO4
• Newsletter
• Sweepstakes
• Alliances
3 SEM: Search Engine Marketing

4 SEO: Search Engine Optimization
35
6.3 Sales Strategy
The sales strategy is to build customer loyalty in the new markets. Jamba Juice Inc. will
increase its sales force to focus on the new markets.
6.3.1 Sales Forecast
The following table shows the rapid ramp-up of sales during the first three years of
operation.
Table 7: Sales Forecast (UShs)

2017 2018 2019
Sales
Products 2,210,400,000 2,431,440,000 2,674,584,000
Other 0 0 0
Total Sales 2,210,400,000 2,431,440,000 2,674,584,000
Direct Cost of Sales 2017 2018 2019
Products 552,600,000 607,860,000 668,646,000
Other 0 0 0
Sub-Total Direct Cost of Sales 552,600,000 607,860,000 668,646,000
6.4 Competitive Advantage
• Excellent value-for-money we offer to our customers.
• Superior product quality and positioning combined with a price lower than that
of the competition.
• Cost control and Economies of Scale.
• Diversified menu.
• Unique high traffic locations in Kampala.
• Clear shaped image and brand experience aligned to healthy lifestyle concept.
36
7.0 MANAGEMENT AND ORGANIZATIONAL STRUCTURE
7.1 Ownership
The business is currently owner by 3 directors as mentioned in Section 3.1 above and
they will contribute 81% of the initial investment and the rest may be sold to any
interested investors or development partner as Floating Shares. The three directors,
namely, Phoebe N. Kankazi; Fred Washaba; and Aggrey Ryan Namanya are all
partners and shareholders of the business.
First partner is PHOBE KANKAZI, who has [state qualification(s), issuing institution(s),
course(s) offered], Phoebe is the brain-child of Jamba Juice Inc. in Uganda and will be
overall in-charge of all juice/smoothies making and selling operations.
Second partner, FRED WASHABA is a holder of [state qualification(s), issuing

institution(s), course(s) offered], Fred owns and operates a company that deals with
security and control equipment in Kampala and he will be overall in-charge with
human resource and public relations of the Company. Fred will use the extensive
business skills he has acquired over time as well as the network contacts he has gained
within the Uganda business environment to develop and grow the Jamba Juice Inc.
business portfolio.
Third partner, AGGREY RYAN NAMANYA is a holder of [state qualification(s), issuing

institution(s), course(s) offered]; he will be overall in-charge of the market operation of the
Jamba Juice Inc.
7.2 Human Resources
Strategy/Organizational Structure:
• HR seen as an important strategic factor.
• Employees are considered the most important asset.
• They will be a key to success through their commitment and attitude to the
customer satisfaction.
• SB will attract and hire the best applicants, and provide the best work
environment.
• Main motivational factor: belongingness to an entrepreneurship business with a
high projection for growth.
• The main values on which Jamba Juice Inc. is built on are: customer orientation,
friendliness, dynamism and integrity.
37
7.3 Organizational Structure
When fully established, the business will have several managers. The CEO’s
involvement in daily juice/smoothies making will then be minimal, as time would be
spent overseeing each department and forming bonds with patrons and employees.
Under the CEO’s direct supervision there will be the heads of the various departments.
Each manager will be required to submit a bi-weekly report on progress in their area of
management and any other matters. The flow chart below shows the business’ chain of
command with growth.
Figure 10: Organizational Chart
BoD/CEO
Production Chief of Financial

Manager Maintenance Manager
Waiters (4) Security Officers Accountants

Cleaners (4)
(2) (2)
Chefs (4)
7.4 Personnel Plan
Prospective managers will include those who would have studied Food Science and
Nutrition at the Diploma or Degree Certificate Level from any of the accredited tertiary
institutions in Uganda. Employees will be recent graduates of either the secondary
school or tertiary colleges. It is also imperative to employ persons with good people
skills, and those with management and leadership qualities who can manage
subordinates well. The business would also have to liaise with a graphic designer for
store front design and layout. The personnel plan is shown in Table 8 below.
38
Table 8: Personnel Plan (Year 1 in UShs)
Sr. No. Designation No. of Monthly Annual Salary
Employees Salary (UShs) (UShs)
1 CEO 1 2,500,000 30,000,000
2 Production Manager 1 2,000,000 24,000,000
3 Chief of Maintenance 1 2,000,000 24,000,000
4 Financial Manager 1 2,000,000 24,000,000
5 Accountants 2 3,600,000 43,200,000
6 Waiters 4 2,000,000 24,000,000
7 Chefs 4 2,400,000 28,800,000
8 Security Officers 2 1,000,000 12,000,000
9 Cleaners 4 800,000 9,600,000
TOTAL 20 18,300,000 219,600,000
Initially, the business may have up to ten (10) employees plus the CEO. With growth,
there will be over thirty-two members of staff. Jamba Juice Inc. will provide
employment for:
 one Public Relations Officer
 one Customer Service Representative
 three sales persons
 six chefs
 two security officers
 eight cleaners
 one accountant
 four managers
 the Chief Executive Officer
39
8.0 OPERATIONS PLAN
8.1 Overview of Operations Plan
The products to be sold in our Jamba Juice Inc. bar/café will be produced by our
kitchen staff. Each person on the staff will have a specific responsibility. The
cooks/chefs will be cross trained to do other jobs, in the event that someone is unwell-
or there is need, because of demand, to help another staff member. All production will
begin an hour before opening in the mornings at 7:00 a.m., to ensure that customers can
enjoy fast and efficient service, as opposed to having to wait for their order. This allows
ample freshness, and comfortable service, as there will not be a long line of people
waiting.
The bar/café’s prime operating time will be between 8:00 a.m.-8:30 p.m. to
accommodate customers’ needs throughout the day.
Figure 11: Juices & Smoothies Value Chain:
Human Resources
Accounting & Finance
Procurement
Reception, storage and Preparation of smoothies Marketing Customer service

quality control of fruits Packaging
and other raw materials Maintenance of facilities
Inbound logistics Operations Sales
40
Figure 12: Processes/Diagram Path:
Key:
Production process path Storage Operation
Path for storage of cleaning and safety materials path Transport Inspection
Path for storage of inputs and raw materials
8.2 Opening Procedures
Jamba Juice Inc. is scheduled to open in a time span of four months after securing
adequate project financing capital. The rental locations will be acquired by negotiating
rental leases with shopping mall proprietors in prime locations like the Village Mall in
Bugolobi and Acacia Mall at Kololo. The average monthly rent for two store outlets in
such prime locations is UShs 7.35 million (2 units), which is a prime price for any
Kampala store, and it comes with a fixed utility expense of about UShs 800,000 per
month. These locations are situated close the major attractions, namely the Kololo
Airstrip, as well as near key Kampala business locations and student institutions and
hostels. Jamba Juice Inc. will renovate the stores into operable conditions. Based on a
Kampala market construction and renovation rates, these fixtures will cost around UShs
46,000,000.
In addition to the fixtures, Jamba Juice Inc. will purchase UShs. 175 million worth of
equipment as detailed in the next sub-section (Table 8). Due to the strategy of reducing
labour costs, few workers will be required— they will undergo training during normal
working hours.
41
8.3 Equipment Requirements
To start up a well-organized Juice and Smoothie Bar business, Jamba Juice Inc. will
require US$ 50,000 to purchase some industry-specific equipment. Some of the
equipment that the Company will need includes-:
Table 9: Large Equipment

Blenders (2 units) Refrigerators for Juice (2 units)
Extra Jars (8 units) Refrigerators for Fruits (2 units)
Commercial Juice Dispensers (2 units) Freezers (2)
Mixers (2 units) Ice Machines (2)
Table 10: Small Tools and Equipment

Bar Stools Mesh Strainers
Bar Tables Long Spoons
Soap Dispensers Menu Boards
Napkin Dispensers Decoration & Flyers
These are only basic equipment and tools that we need to set up the business but as
time goes on and the Company starts to make more sales and profit, will need other
additional equipment to add on. The most essential equipment however are the
blenders, commercial juicers and mixers which can only be sourced and imported from
the UK. The simpler tools and equipment will be procured locally. The total importation
cost including purchase, freight and taxation of the key equipment and machinery from
UK to Uganda is US$ 50,000 (approximately UShs. 175,000,000).
8.4 Store Design and Layout
The most important part of designing the Jamba Juice Inc. juice and smoothie bar is
satisfying the legal requirements as established by Kampala Capital City Authority
(KCCA). After those requirements have been met, Jamba Juice Inc. will ensure that
there is a flow about its juice & smoothie bar(s). Everything about the Jamba Juice Inc.
juice & smoothie bar(s) layout shall incorporate a flow that will facilitate maneuvering
in and about the juice & smoothie bar(s) and make it easy for customers and employees
to move in and out. A good layout for a juice & smoothie bar is one that requires the
minimum amount of movement to create the desired smoothie.
When designing a juice & smoothie bar for a health club or retail spot, minimizing all
effort and labour that goes into the smoothie production process is of paramount
42
importance. In the above case, the blender jars should be easily accessible and placed
near the ice machine. Liquid dispensers or fridge(s) containing liquids can then be
placed past the ice machine. A dipping freezer can then be placed next to the liquid
dispensers for cold-storage of frozen fruits or yogurts. Then next in line would be the
powder bins or tubs. And then last would be the blenders and blend station.
In addition to a utilitarian layout that facilitates the production of the smoothies, Jamba
Juice Inc. will also address design and layout as it relates to customer walk in and out
traffic. We will take particular note of where our high traffic areas are and how visible
our location will be to that traffic. We will also want it to be easy to access the smoothie
bar and the employees. The placement of menu placement and how easy it will be to
see will also feature highly in our juice & smoothie bar(s) design layout.
In summary, these are the key points in the juice & smoothie bar(s) layout and design:
1. To satisfy local requirements first with zoning and health departments.
2. To build our juice & smoothie bar(s) with production flow in mind. Try to
minimize labour efforts wherever possible.
3. Make our juice & smoothie bar(s) easily accessible. Make sure that they are in the
customers’ way so they have to take quick notice.
4. Make placing orders and purchasing very self-explanatory so no one is guessing
which line to get in.
43
9.0 IMPLEMENTATION PLAN
Taking into consideration that this is a start-up project, the following sequence of
activities will constitute the project implementation phase processes.
Table 11: Project Management Timetable

Item Activity Time (Days) Cumulative
(Days)
1 Invest the shareholders’ equity to create the business 7 7
2 Register the Company “Jamba Juice Inc.” 7 14
3 Research for project financing 14 28
4 Get project financing 7 35
5 Evaluate and select suitable locations for stores 21 56
6 Rent of the selected suitable locations 14 70
7 Obtain facility design layout license from KCCA 7 77
8 Execution of design layout and remodeling stage 21 98
9 Installation of equipment and furniture 14 112
10 Opening Day 7 119
44
Figure 13: PROJECT IMPLEMENTATION SCHEDULE
Activity Duration Period in Months
Months/Days 1 2 3 4 5 6
Invest the shareholders’ equity to create the business 7 Days
Register the Company “Jamba Juice Inc.” 7 Days
Research for project financing 14 Days
Get project financing 7 Days
Evaluate and select suitable locations for stores 21 Days
Rent of the selected suitable locations 14 Days
Obtain facility design layout license from KCCA 7 Days
Execution of design layout and remodeling stage 21 Days
Installation of equipment and furniture 14 Days
Opening Day 7 Days
45
10.0 FINANCIAL PLAN
This section evaluates various financial aspects of the proposed Jamba Juice Inc. juices
and smoothies bar/café (cost of project, earnings forecast, rates of return, payback
period, cash flow, balance sheet, etc.). Wherever calculations, workings, etc. are
voluminous, a summarized version is presented in this chapter and detailed
calculations are given in the relevant Schedules of Financial Analysis.
10.1 Underlying Assumptions
 We assume that the Ugandan economy grows at an average rate of 5% p.a.

without any major recession in the ten-year analysis period.
 We assume that the exchange rate remains stable at an average of UShs. 3,600 to
US$1.0.
 We assume that the Ugandan economy remains in a stable non-hyper inflationary
rate of below 5% p.a.
 We assume that the project implementation aspects of the proposed Jamba Juice
Inc. juices and smoothies bar/café will take 4 months to complete as indicated in
this Business Plan’s project implementation schedule.
 We assume that we will grow as managers during the process, this growth will
manifest itself as a flat line expense over the ten-year analysis period, leading to
increased annual cash flow.
 We assume access to equity capital and financing sufficient to maintain our
financial plan as shown in the tables and schedules (appended).
 We assume increase in popularity of the proposed Jamba Juice Inc. juices and
smoothies bar/café products (i.e. juices, shakes and smoothies) by health-
conscious consumers within the targeted student, tourist, and middle-class
market segments in Kampala.
 Jamba Juice Inc. will have an annual revenue growth rate of 10% per year.
 The Company will acquire a financial facility of UShs 450 million to develop the
business.
 The financial facility will have a 5-year term with a 12% interest rate.
10.2 Summary
Year-5 projected revenues are at UShs 2,942,042,400. The breakdown of units sold each
year is explained in Table 18-3 of Schedule 01: Key Financial Modeling Assumptions
on page 61 and justifies the sharp increases to units sold over the 5-year period. Cost of
goods sold maintains a constant relationship with sales and ends at UShs 882,612,720
46
during Year-5. Expenses increase rapidly from year 2 to 3, 3 to 4 and 4 to 5 due to
increases in employment and other operating cost centres. These increases are offset in
profits due to an overall greater volume of goods sold. Interest payments diminish over
the 5-year forecasts due to loan servicing strategies (i.e. gradual reduction of loan
principal). Taxes, as expected, increase as does EBIT (Earnings Before Interest and Tax)
/Operating Profits from year to year. Total assets show a sharp increase in Year-2
owing to the strong growth in current assets, and then continue increasing year-on-year
with capital accumulation and continued strong performance of current assets up to
Year-5. Retained earnings increases each year as excess profits are added into retained
earnings. The Financial Analysis Schedules on pages 62-78 offer a detailed, year-by-
year summary of all the financial measures.
10.3 Sources and Uses
Jamba Juice Inc.’s cost itemization is recorded in Table 3: Initial Business Investment
Costs on page 13 and Schedule 02: Source & Structure of Project Financing on page
65. Owners will supply business assets worth UShs 20 million for the initial start-up
and require a financial facility of UShs 450 million for fixtures as well as property,
plant, and equipment costs. The owner-investment of UShs 20 million is the market
value of the existing van (vehicle) that will be used in transportation of raw materials
and outside catering services. Jamba Juice Inc. requires minimal initial investment to
begin operations and can manage to continue with low breakeven points, while having
high profit potential.
10.4 Net Income Statement
As viewed in Schedule 04/2: Calculation of Working Capital: I Annual Production

Cost Estimates on page 68 and Schedule 10: Projected Net Income Statement on page
74, the income statement provides sales of juices, smoothies, yogurt-based smoothies as
well as the cost of goods sold for each of these items. It also provides a listing of the
major expenses incurred each year: Wages, Rent, Advertising, Utilities, and
Depreciation. Net incomes, as will all income statements, are posted at the bottom of the
data. Table 12 below is a summarized version of the projected net income statement of
Jamba Juice Inc.
47
Table 12: Summary Profit & Loss Account for First Five Years of the Project (In UShs)
Description Year 2 Year 3 Year 4 Year 5
Sales 2,210,400,000 2,431,440,000 2,674,584,000 2,942,042,400
Less: Cost of Goods Sold 663,120,000 729,432,000 802,375,200 882,612,720
Gross Profit 1,547,280,000 1,702,008,000 1,872,208,800 2,059,429,680
Less: Operating Expenses 682,748,395 735,417,303 793,353,101 857,082,479
Operating Profit 864,531,605 966,590,697 1,078,855,699 1,202,347,201
Less: Interest service 54,000,000 40,800,000 27,600,000 14,400,000
Less: Loan service 110,000,000 110,000,000 110,000,000 120,000,000
Provision for Tax 210,159,482 244,737,209 282,376,710 320,384,160
Net Profit 490,372,124 571,053,488 658,878,989 747,563,041
Cum. Retained Earnings 490,372,124 1,061,425,611 1,720,304,601 2,467,867,641
10.5 Cash Flow Sheet
The cash flow statement shows that the excess cash generated by the business is used to
expand it without the need of a bank loan. This sheet reviews all net cash inflows and
outflows each year. The projected cash flow for the first five years of the project is
shown hereunder:
Table 13: Projected Cash Flows (In UShs)

Project Year 1 2 3 4 5
Costs (US$)
A. Cash inflow 463,200,000 2,210,400,000 2,431,440,000 2,674,584,000 2,942,042,400
1. Financial resources Total 463,200,000 _ _ _ _
2. Sales revenue total _ 2,210,400,000 2,431,440,000 2,674,584,000 2,942,042,400
B. Cash outflow -463,200,000 -2,200,450,825 -1,902,847,077 -2,062,346,632 -2,245,720,143

1. Total assets schedule
including replacements -463,200,000 -479,222,949 -41,260,565 -45,441,621 -50,040,783
2. Operating Costs _ -1,345,868,395 -1,464,849,303 -1,595,728,301 -1,739,695,199
3. Debt Service
a) Interest _ -54,000,000 -40,800,000 -27,600,000 -14,400,000
b) Repayments _ -110,000,000 -110,000,000 -110,000,000 -120,000,000
4. Corporate tax _ -210,159,482 -244,737,209 -282,376,710 -320,384,160
5. Dividends 4% on equity _ -1,200,000 -1,200,000 -1,200,000 -1,200,000
C. Surplus / deficit 0 9,949,175 528,592,923 612,237,368 696,322,257
D. Cumulative cash balance 0 9,949,175 538,542,098 1,150,779,466 1,847,101,724
48
10.6 Balance Sheet
The balance sheet matches industry average proportions as gathered from Industry
Norms & Key Business ratios 2015-2016. By end of Year 4, more than 73% of loan
payments have been paid off, greatly reducing total liabilities. Cash Reserves in
shareholder equity represent the left over cash from owners at the company start-up.
In Year 5, there is a massive amount of excess cash, which can either be used for
personal income or for further Jamba Juice Inc. expansion. This decision exceeds the
forecasting period of 3-5 years and will be re-evaluated later on by the Company.
Projected balance sheet for the first five years of operation is shown below:
Table 14: Projected Balance Sheet (In UShs)

CAPITAL EMPLOYED: YR.1 YR.2 YR.3 YR.4 YR.5
Share Capital 30,000,000 30,000,000 30,000,000 30,000,000
Retained Earnings 490,372,124 1,061,425,611 1,720,304,601 2,467,867,641
Shareholder's Equity/Deficit 520,372,124 1,091,425,611 1,750,304,601 2,497,867,641
Long-Term Liabilities 450,000,000 450,000,000 340,000,000 230,000,000 120,000,000

450,000,000 970,372,124 1,431,425,611 1,980,304,601 2,617,867,641
EMPLOYMENT OF CAPITAL: `
Store Equipment 201,000,000 180,900,000 160,800,000 140,700,000 120,600,000
Store Furniture & Fixtures 46,000,000 41,400,000 36,800,000 32,200,000 27,600,000
Vehicle 20,000,000 16,000,000 12,000,000 8,000,000 4,000,000
LONG-TERM ASSETS: 267,000,000 238,300,000 209,600,000 180,900,000 152,200,000
CURRENT ASSETS: 183,000,000 797,287,693 1,274,832,689 1,840,302,337 2,494,565,101
Accounts Receivable 112,155,700 122,070,775 132,977,358 144,974,600
Stock (Inventory) 336,769,399 366,510,351 399,225,397 435,211,948
Bank Balance and Cash 30,297,850 31,902,388 33,722,379 35,779,370
Other Current Assets 318,064,745 754,349,176 1,274,377,202 1,878,599,184
CURRENT LIABILITIES: 65,215,570 53,007,078 40,897,736 28,897,460

Accounts Payable 11,215,570 12,207,078 13,297,736 14,497,460
Current Portion of Long-term
Liabilities 54,000,000 40,800,000 27,600,000 14,400,000
NET CURRENT ASSETS: 183,000,000 732,072,124 1,221,825,611 1,799,404,601 2,465,667,641
TOTAL CAPITAL 450,000,000 970,372,124 1,431,425,611 1,980,304,601 2,617,867,641
49
10.7 Personal Income
Personal income suffers during the first three years of Jamba Juice Inc.’s operations, as
displayed in the statement of cash flows. Year-3 can produce higher personal income,
but it is better for long term profitability to re-invest excess funds into the expansion of
another store location.
10.8 Taxation
Since Jamba Juice Inc. is essentially a limited liability company all EBT is taxed based
on income tax—Ugandan tax law works similar to that of the US (Ugandan Taxes). In
Uganda, Value Added Tax is unanimous and uniform—it makes up 18% for food retail
vendors like Jamba Juice Inc. (Ugandan Taxes). These sale taxes are factored into all
sales prices for the products that will be made and sold by Jamba Juice Inc.
10.9 Currency Values
Currency exchange rates were calculated off a 12-month average of Uganda Shillings
3,600 per US Dollar (Google Finance).
10.10 Depreciation
Depreciation schedules are provided in Table 18-8 under Schedule 01: Key Financial
Modeling Assumptions on page 64. All depreciable items fall under two categories of
the URA tax table with 10-year and 5-year lives. Uganda permits straight-line
depreciation, which is utilized in Jamba Juice Inc.’s calculations.
10.11 Benchmarking
Benchmarks can be found in the Appendix as “Ratio Analysis” and are measured
according to data presented in Industry Norms & Key Business ratios 2015-2016. Given
that Jamba Juice Inc. is a small start-up, it is difficult to perform ratio analysis against
companies as large as Jamba Juice. Return on Equity and Return on Assets seem to be
highly inflated, but that is due to the fact that Jamba Juice Inc.’s assets and equity are
relatively low as related to Net Income. The Profit Margin seems to be more in line with
industry averages. Jamba Juice Inc.’s projected Profit Margin in Year-5 is 6% greater
than that of the industry average. Total Asset Turnover, like Return on Assets, is
inflated because of Jamba Juice Inc.’s low asset level. After expansion, the Quick Ratio
normalizes with industry averages. Finally, by Year-5, the Inventory Turnover
normalizes with industry averages.
50
• Financial ability to pay its short term debts.
• Big part of the liabilities that are accounted at the end of each year is assigned to
the concept of dividends payables.
• The assets are more productive every year.
• The business is generating enough profits to finance its own expansion.
10.12 Operating Assumptions and Limitations
This Senior Project’s research was done with a store opening date of May, 2017. Even
though the financial figures and forecasts are associated with past dates, they are still
very much applicable to a later opening date. All cost estimates can be applied to any
month; May of 2017 serves as the example starting point for the purposes of this project.
In regards to the organizational structure, a typical business plan is comprised of

written material at the beginning of the document and of graphs and financial
information in the back. To put charts in the middle of the text would be to ignore the
professional guidelines of a standard business plan.
10.13 Break-Even Analysis
Break Even analysis is for Year 5. Assuming that 15.64% of sales are all cup sizes of
plain smoothies and 28.34% of sales are all cup sizes of yogurt-based smoothies, a total
of 18,168 smoothies must be sold to break even. This is equivalent to 1,514 smoothies
sold each month, 349 smoothies each week, and 50 smoothies each day, assuming a 365-
day working year. Given gathered information from San Luis Obispo’s Jamba Juice on
Foothill, this breakeven point is easily achievable.
Jamba Juice—Foothill San Luis Obispo:

Research was done on the sales performance of Jamba Juice on Foothill, which formed
the basis for Jamba Juice Inc.’s sales projections. During the cold 2011 month of
February in San Luis Obispo, Jamba Juice averaged 377.9 smoothies per day. Indications
also point to the fact that hot summer days often result in over 1,000 smoothies sold,
whereas a typical sunny day falls around 500 smoothies. These numbers shape explain
the huge profit potential of Jamba Juice Inc. This Jamba Juice location is a small
operation, in a small city, yet producing high amounts of smoothies. If Jamba Juice Inc.
sold the minimum amount of 377.9 smoothies in Kampala each day, it would end the
year with 137,933.5 smoothies sold in one year (assuming 365 operational days). This is
7.6-times the breakeven point, which is a huge indication of the success to come from
Jamba Juice Inc. in one of the fastest growing cities in Africa.
51
The project’s commercial break-even level (profitability break-even) in Project Year 5 is
calculated below:
Table 15: Break-Even Analysis in Project Year 5 (In UShs)

Items Variable Cost Fixed Cost Total Cost
Cost of Goods Sold 882,612,720 0 882,612,720
Payroll Expenses 219,215,700 73,071,900 292,287,600
Rent 78,262,800 39,131,400 117,394,200
Outside services 59,895,000 19,965,000 79,860,000
Repairs & maintenance 17,800,000 8,900,000 26,700,000
Office Expenses 5,324,000 2,662,000 7,986,000
Advertising & marketing 129,772,500 43,257,500 173,030,000
Telephone 9,982,500 3,327,500 13,310,000
Utilities 9,583,200 3,194,400 12,777,600
Insurance 3,824,719 1,912,360 5,737,079
Professional Fees 5,333,333 2,666,667 8,000,000
Miscellaneous Expenses 90,000,000 30,000,000 120,000,000
Depreciation 0 28,700,000 28,700,000
Financial Expenses 0 14,400,000 14,400,000
TOTAL 1,511,606,473 271,188,726 1,782,795,199
Sales Value of Production = UShs 2,942,042,400
Break-even Sales = 271,188,726 = 271,188,726 = 271,188,726

1 –1,511,606,473 1 –0.5138 0.4862
2,942,042,400
Break-even Sales = UShs 557,766,144
Capacity utilization required to Break-even = UShs 557,766,144 x 100 = 18.96%

UShs 2,942,042,400
Margin of Safety = 100% – 18.96% = 81.04%
10.14 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues.
During these times, people may demand fewer smoothies and juice beverages and
small food products as they cut back on their discretionary expenditures. However, the
business generates substantial margins from its sales under changing operating costs
52
and cost of goods sold scenarios, and as such, the business will always be able to remain
profitable and cash flow positive while concurrently servicing its financial obligations.
The sensitivity of the project to under different operating variables is shown in
Schedule 14: Sensitivity Analysis on page 78.
53
11.0 PROJECT ECONOMICS
11.1 Outline of Project Economics
The total project cost for setting up the proposed Jamba Juice Inc. juice and smoothies
bar/café is UShs 463.20 million. The capital cost incurred is UShs 267 million, with a e
working capital of UShs 31 million and pre-operational expenses totaling UShs 165.20
million. The total cost, project returns and financial plan are given in Tables 16-1 to 16-
3 below.
Table 16-1: Total Project Cost

Account Head Total Cost (UShs)
Capital Cost 267,000,000
Pre-Operational Expenses 165,200,000
Working Capital Cost 31,000,000
Total Project Cost 463,200,000
Table 16-2: Project Returns
NPV (US$) @ 17% 1,504,546,408
Financial Internal Rate of Return (FIRR) 132.10%
Payback Period (Years) 1.81
Table 16-3: Financing Planning
Financing Ratio US$
Equity 4.32% 20,000,000
Debt 95.68% 443,200,000
11.2 Pricing
Paris price levels are notoriously high and essentially every type of beverage is direct
competition towards Jamba Juice Inc., which was considered when pricing our
smoothies. Coca-Cola sodas typically cost UShs 1,000 – UShs 5,000 each depending on
size and location. Most of the juice and smoothies bars in Kampala charge UShs 12,000 –
UShs 20,000 per smoothie depending on size. Specialty coffee drinks vary from UShs
10,000 – UShs 20,000, and can sell as high as UShs 30,000 at famous locations.
With so much competition in Kampala, the elasticity of demand is very high—

consumers will simply go next door if they feel one store’s prices are a bit excessive.
Additionally, Ugandan laws make it difficult for restaurants and beverage venues to
make money due to high taxation and labor costs, so equilibrium must be met in order
for Jamba Juice Inc. to find a balance between Supply and Demand. As displayed in the
54
appendix, the total input price for a 16 oz smoothie is UShs 3,600 (US$1.00) and a 12 oz
smoothie is UShs 3,000 (US$0.83). The sales prices for these items will be UShs 12,000
(US$3.33) and UShs 10,000 (US$2.78) respectively. Once compared to price averages in
Paris, it becomes apparent that Jamba Juice Inc.’s premium smoothies come at a very
cost-competitive price. Due to the use of frozen fruits in our smoothies, Jamba Juice Inc.
will minimize production costs and still maintain high contribution margins of UShs
8,400 for 16 oz and UShs 7,000 for 12 oz smoothies.
With this cost competitive price, Jamba Juice Inc. can expect a relatively high demand
for its product. Jamba Juice Inc. smoothies offer a great consumer value at a relatively
low price. The supply of foods and beverages in Kampala is very high, given the 1,000
restaurants, but these cost competitive prices should shift demand in favor of Jamba
Juice Inc.
11.3 Sales Projections
Sales projections for the Jamba Juice Inc. products (i.e. smoothies, juices, yogurt-based
smoothies, and special edible mixes) are based on conservative estimates of about 20%
of what the actual daily sales turnover would be. The use of conservative sales
projections is based on the reasoning that typical Ugandan consumer markets would
usually take a period of time to get used to new consumer products and sales locations
before demand picks up to boost sales to expected levels of turnover performance. Sales
projections of Jamba Juice Inc. are indicated in Table 18-3 of Schedule 01: Key
Financial Modeling Assumptions on page 62 of this business plan.
In the business plan sales projections, the company only averages a total of 200
smoothies per day in Year 2 (first year of operations), making it a relatively conservative
number. At this rate, Jamba Juice Inc. is selling only about 53% smoothies as Jamba
Juice does on its most unproductive days. Sales are expected to pick up at an annual
rate of increase of 10% per annum due to increase in customer demand and opening of
new locations in Kampala to top about 266 smoothies per day. Provided that the Jamba
Juice on Foothill typically sells 500 smoothies a day, the sales per day during year-5 is
only operating at a 53.2% of the potential measured by a smaller juice bar location.
Jamba Juice Inc. can very well expect greater sales than 500 smoothies per day by being
in Kampala rather than San Luis Obispo – which is a small town in the USA; however,
conservative numbers were used to stress the profitability of Jamba Juice Inc. even with
less than average production.
55
11.4 Development Impacts
The proposed Jamba Juice Inc. fruit juice making and selling project will impart
agriculture, health, and economic development impacts to the Ugandan economy.
These are briefly highlighted below.
Health Benefits: This project will first and foremost combat obesity and promote good
health for Ugandans. It does make lots of sense to invest in the health of people in this
country including the youth and adult Ugandans now to prevent large amounts of
money being spent on the treatment of those afflicted with lifestyle-related diseases.
Because of healthy eating and drinking habits, more people in Uganda will live longer
and healthier lives as the consumption of harmful additives will be reduced, and so will
the health bill.
Agricultural Benefits: This project will make good use of locally-produced fruit that will
create knock-on multiplier effects in the fruit production sub-sector of the Ugandan
economy. It will definitely add some good mileage to the growing market for fruit
farmers that are now trying to improve their livelihoods through gainful horticultural
practices.
Economy Benefits: The Jamba Juice Inc. will also generate gainful employment
opportunities for Ugandans, besides generating some valuable tax income for the
Treasury and expanding on the contribution of the fruits sub-sector to Uganda’s GDP
growth.
11.5 Value Added
The value added as a percentage of gross sales is 39.89%. The value added calculated
for the fourth year (PY5) of operations is as follows:
Table 17: Calculation of Value Added

Description Year 2 Year 3 Year 4 Year 5
Value of Production (Sales) 2,210,400,000 2,431,440,000 2,674,584,000 2,942,042,400
Less Intermediate Inputs:
Cost of Goods Sold 663,120,000 729,432,000 802,375,200 882,612,720
Marketing Expenses 130,000,000 143,000,000 157,300,000 173,030,000
Other Operating Expenses 552,748,395 592,417,303 636,053,101 684,052,479
Depreciation 28,700,000 28,700,000 28,700,000 28,700,000
Total Intermediate Inputs 1,374,568,395 1,493,549,303 1,624,428,301 1,768,395,199
Value Added 835,831,605 937,890,697 1,050,155,699 1,173,647,201
Value Added as a %age of Output 37.81% 38.57% 39.26% 39.89%
Value Added per Worker 41,791,580 46,894,535 52,507,785 58,682,360
56
12.0 RISK ASSESSMENT AND MITIGATION PLAN
12.1 Critical Risk Factors
12.1.1 Financial Risks
As with opening any food service business, the first year chances of failing are high.
Jamba Juice Inc. combats this by focusing strategies on reducing early-on expenses and
tuning advertising to attract locals and tourists alike. The chance of suffering losses
during the first year of operations is evident, but will be prevented by further cost
reduction measures including: reducing store hours, firing hired help, increases in sales
price, and by raising promotional budgets to produce a greater Juicy Boost consumer
base.
Jamba Juice Inc.’s business strategies will maintain a minimization of borrowed money
to afford the company more time to generate adequate sales to break even. Juicy Boost
is profitable on a very small scale—so if monthly projections are not being met,
downsizing can help the company operate in the green.
All sales projections were based off break-even points and units sold data provided
from a small-sized Jamba Juice—Jamba Juice Inc.’s potential for sales is much higher
than the projected values and may be an even more profitable enterprise than
estimated.
12.1.2 Market Risks
Assumptions are that low prices of substitute imported products may hit the industry
and consumers who will not differentiate between the two may go for the substitute.
However, plans are that among the duties of marketing personnel will be to train
consumers about these risks. Inflation may cause increased production costs against the
estimates, the management has estimated contingency to curb this risk. Hiked taxes
may hamper sales/profits but care has been taken in production and sales estimates to
an average figure while it is known that an increased percentage may offset the
unforeseen risks; and campaigners (competitors) may downgrade the product for their
benefit. This last risk will be taken aboard by sensitizing consumers and they will in the
end differentiate the qualities.
57
12.1.3 Operating Risks
These are risks caused by weather changes which might impact our company not to
satisfy our customer.
Our business is mostly affected by weather changes.
The company will overcome the risk by making sure that we have enough
reserve/stocks to be used for a long time.
12.1.4 Marketing Risks
The industry is characterized with high levels of competition which increases the risk of
price wars. To overcome the risk the company will use the differentiation strategy.
Jamba Juice Inc. will offer higher quality products at affordable and competitive prices.
Jamba Juice Inc. also understands that in this business there are threats of substitute
such as soda, mineral water, industrially processed and packaged juices and so on. By
knowing this, Jamba Juice Inc. will make sure we maintain our product quality so that
we can retain our customers.
12.2 Contingency Plan
• Lower Sales Levels → Increase Promotion / Reduce Price

• Unavailability / Decreased quality of fruits → continuous sourcing & menu
variation
• Sales higher than expectation → accelerated growth
• Exit Strategy → Sale of business / Liquidation of assets
58
13.0 CONTROLS
The juice and smoothies market in Uganda is still raw and has not yet been fully
explored. With this in mind we intend to aggressively market our existence. The
introduction of quality sales and marketing literature (including posters, flyers,
coupons and specials) will enable Jamba Juice Inc. to effectively market to potential
customers with a positive image and impression. This will be supported by the
relationships we would have established with several of our customers and clients.
Throughout the year the intention will be to undertake regular evaluations of our
products and marketing programs so as to ensure that we are in line with our intended
objectives. In summary, we intend to undertake the following:
1. Tracking and follow-up: We intend to have the discipline, as a business

organization, to track results of the business plan and make sure that we
implement.
2. Market segment focus: We intend to have the discipline to maintain the market
segment focus.
3. Saying no: Though difficult initially we intend to be able to say no to special

deals that take us away from the target focus but in particular those that are
unprofitable.
13.1 Financial Risks and Contingencies
1. We intend to watch our results very carefully. We may need to drop a certain
product type(s), if we cannot get the margin up or it seems to be unviable. We
might be able to avoid the straight competition with the major companies by
focusing more on the target market mentioned previously.
2. Another possibility is the introduction of a new company(s) in our niche. Hence
the need to undertake aggressive marketing and networking.
13.2 Implementation
Jamba Juice Inc. will start by offering special juice and smoothies products at
discounted prices to the target market segments with the objective being to impress
them regarding our products' quality. This will see us building the basic confidence and
trust of the niche market segments that we are targeting in order to ensure that we grow
in the right direction. We will prepare our sales literature, including business cards
59
mainly through engaging a reputable printing organization. In undertaking the above,
we intend to ensure that the goals of the organization are achieved as well as delegation
of responsibility for maximum effectiveness.
60
14.0 EVALUATION & CONCLUSION
14.1 Evaluation
In order to ensure our new marketing strategy is successful we will have continual
evaluation of the changes being made. Our objective is to increase sales by 10% in every
successive year of business. This means by December 31 of each business year we
should see that increase reflected in the financial statements. This gives us a full second
year [2018] to make this strategy successful after we launch it in the beginning of May
2017. To maintain continual evaluation we will hold monthly reports on the changes in
sales and the implementations of the new marketing strategy that has taken place. This
will help us maintain growth and make adjustments if need be.
14.2 Conclusion
Based on all the variables looked at, this new direction for Jamba Juice Inc. will be
successful in the long run and take the Company to the next level within the current
market. With full support from the Company’s business executives, this business plan
should go off without any major hitches and really strike the market when hot.
61
Schedule 01: KEY FINANCIAL MODELLING ASSUMPTIONS
Table 18-1: Economy-Related Assumptions

Electricity price growth rate 10%
Diesel price growth rate 5%
Wage growth rate 5%
Table 18-2: Cash Flow Assumptions

Accounts Receivable cycle (in days) 30
Accounts Payable cycle (in days) 30
Raw material inventory (in days) 30
Equipment spare parts inventory (in days) 30
Table 18-3: Revenue Assumptions (In UShs)

Product/Size Unit Price Daily Daily Monthly Annual
Unit Income Income Income
Sales
Smoothies
Large: 24 oz (700 mls) 15,000 20 300,000 9,000,000 108,000,000
Medium: 16 oz (470 mls) 12,000 30 360,000 10,800,000 129,600,000
Small: 12 oz (350 mls) 10,000 30 300,000 9,000,000 108,000,000
Sub-Total 960,000 28,800,000 345,600,000
Juices
Large: 24 oz (700 mls) 12,000 20 240,000 7,200,000 86,400,000
Medium: 16 oz (470 mls) 10,000 30 300,000 9,000,000 108,000,000
Small: 12 oz (350 mls) 8,000 30 240,000 7,200,000 86,400,000
Sub-Total 780,000 23,400,000 280,800,000
Yogurt-Based Smoothies
Large: 24 oz (700 mls) 18,000 30 540,000 16,200,000 194,400,000
Medium: 16 oz (470 mls) 15,000 40 600,000 18,000,000 216,000,000
Small: 12 oz (350 mls) 12,000 50 600,000 18,000,000 216,000,000
Sub-Total 1,740,000 52,200,000 626,400,000
Special Edible Mixes
Large: 24 oz (700 mls) 100,000 5 500,000 15,000,000 180,000,000
Medium: 16 oz (470 mls) 80,000 12 960,000 28,800,000 345,600,000
Small: 12 oz (350 mls) 60,000 20 1,200,000 36,000,000 432,000,000
Sub-Total 2,660,000 79,800,000 957,600,000
Total Gross Income 6,140,000 184,200,000 2,210,400,000
62
Table 18-4: Operating Expense Assumptions (In UShs)
Payroll Expenses per annum 219,600,000
Rent payments per annum (2 store outlets) 88,200,000
Outside services per annum 60,000,000
Repairs & maintenance as a %age of Fixed Costs (10%) 26,700,000
Office Expenses per annum 6,000,000
Advertising & Marketing Expenses per annum 130,000,000
Telephone Expenses per annum 10,000,000
Utilities Expenses per annum 9,600,000
Insurance (see calculations in Tables 18-5 & 18-6 below) --
Professional Fees per annum 8,000,000
Miscellaneous Expenses per annum 120,000,000
Consumables (containers, cups, forks, straw, napkins & packaging) 110,520,000
Annual Change in Operating Expenses:
Repairs & maintenance Constant
Professional Fees Constant
Miscellaneous Expenses Constant
All other Operating Expenses 10% increase p.a.
Table 18-5: Insurable Expenses (In UShs)

Item/Year Year 2 Year 3 Year 4 Year 5
Equipment Cost 175,000,000 175,000,000 175,000,000 175,000,000
Store remodeling 46,000,000 46,000,000 46,000,000 46,000,000
Ops & management equipment 26,000,000 26,000,000 26,000,000 26,000,000
Van 20,000,000 20,000,000 20,000,000 20,000,000
Cost of Products/Goods 663,120,000 729,432,000 802,375,200 882,612,720
Total Insurable Expenses 930,120,000 996,432,000 1,069,375,200 1,149,612,720
Table 18-6: Calculation of Insurance Fees (In UShs)

Year 2 Year 3 Year 4 Year 5
Value of Insurable Goods 930,120,000 996,432,000 1,069,375,200 1,149,612,720
Insurance Premium (4%) 3,720,480 3,985,728 4,277,501 4,598,451
VAT 669,686 717,431 769,950 827,721
WHT 223,229 239,144 256,650 275,907
Stamp Duty 35,000 35,000 35,000 35,000
Total Insurance Fees 4,648,395 4,977,303 5,339,101 5,737,079
VAT: Value Added Tax
WHT: Withholding Tax
63
Table 18-7: Financial Assumptions
Project Life (Years) 5
Debt 95.68%
Equity 4.32%
Interest rate on medium-term debt 12% p.a.
Debt tenure (Years) 5
Debt payments per year 1
Grace Period 1 Year
Table 18-8: Depreciation Rate Assumptions

Land 0%
Buildings 5%
Machinery and Equipment 10%
Office Equipment 10%
Furniture & Fixtures 10%
Vehicles 20%
64
Schedule 02: Source & Structure of Project Financing (In UShs)
Source Share Equity Debt Total
Stores Equipment 0.00% 0 175,000,000 175,000,000
First Year Rent 19.04% 0 88,200,000 88,200,000
Licenses & Legal 6.48% 0 30,000,000 30,000,000
Stores remodeling & installation costs 9.93% 0 46,000,000 46,000,000
Operation & Management Equipment 5.61% 0 26,000,000 26,000,000
Consulting 2.59% 0 12,000,000 12,000,000
Marketing 7.56% 0 35,000,000 35,000,000
Start-up Working Capital 6.69% 0 31,000,000 31,000,000
Van (Vehicle) 4.32% 20,000,000 0 20,000,000
TOTAL 100.00% 20,000,000 443,200,000 463,200,000
% of Total 4.32% 95.68% 100.00%
65
Schedule 03: Loan and Interest Service Schedule (In UShs)
Section Years Totals
Loan Amount 450,000,000
Year 1 2 3 4 5
Interest (12% p.a.) 0 54,000,000 40,800,000 27,600,000 14,400,000 136,800,000
Annual Repayments 0 110,000,000 110,000,000 110,000,000 120,000,000 450,000,000
66
Schedule 04/1: CALCULATION OF WORKING CAPITAL
(a) Accounts receivable: 30 days at production costs minus depreciation and

interest
(b) Inventory:
Cost of Goods Sold: 30 days
Salaries & Wages: 90 days
Store Operations: 60 days of Total Overhead Costs.
Maintenance & repair: 180 days
Work in progress: 9 days of Cost of Goods Sold.
Finished products: 45 days of Cost of Goods Sold.
© Cash-in-hand: 15 days, see separate calculations at the bottom of this

schedule.
(d) Accounts payable: 30 days of 10% of Total Operating Expenses.
N.B.: All the local cost price factors for cost of goods sold, operating costs and working
capital are indicated in Uganda Shillings for the ease of computational and financial
analysis.
67
Schedule 04/2: Calculation of Working Capital: I Annual Production Cost Estimates (In
UShs)
ACCOUNT HEAD FINANCIAL YEAR OF OPERATION
YEAR 1 2 3 4 5
Operating Costs (UShs)
Cost of Goods Sold (COGS)
Raw materials (fruits + other inputs) 552,600,000 607,860,000 668,646,000 735,510,600
Consumables (containers, cups, forks, 110,520,000 121,572,000 133,729,200 147,102,120
straw, napkins & packaging)
Total Cost of Goods Sold (COGS) 663,120,000 729,432,000 802,375,200 882,612,720
Overhead Costs
Payroll Expenses 219,600,000 241,560,000 265,716,000 292,287,600
Rent 88,200,000 97,020,000 106,722,000 117,394,200
Outside services 60,000,000 66,000,000 72,600,000 79,860,000
Repairs & maintenance 26,700,000 26,700,000 26,700,000 26,700,000
Office Expenses 6,000,000 6,600,000 7,260,000 7,986,000
Advertising & marketing 130,000,000 143,000,000 157,300,000 173,030,000
Telephone 10,000,000 11,000,000 12,100,000 13,310,000
Utilities 9,600,000 10,560,000 11,616,000 12,777,600
Insurance 4,648,395 4,977,303 5,339,101 5,737,079
Professional Fees 8,000,000 8,000,000 8,000,000 8,000,000
Miscellaneous Expenses 120,000,000 120,000,000 120,000,000 120,000,000
Total Overhead Costs 682,748,395 735,417,303 793,353,101 857,082,479
Total Operating Expenses 1,345,868,395 1,464,849,303 1,595,728,301 1,739,695,199
Financial Costs (UShs)

Interest on Medium Term Loan 54,000,000 40,800,000 27,600,000 14,400,000
Depreciation 28,700,000 28,700,000 28,700,000 28,700,000
Total Financial Costs 82,700,000 69,500,000 56,300,000 43,100,000
Total Production Costs 1,428,568,395 1,534,349,303 1,652,028,301 1,782,795,199
68
Schedule 04/3: Calculation of Working Capital: II Working Capital Requirements (In UShs)
X Y Requirements (UShs)
Minimum Coefficient of Full Capacity
days of turnover
coverage
Item 2 3 4 5
I. Current assets
A. Accounts receivable 30 12 112,155,700 122,070,775 132,977,358 144,974,600
B. Inventory
a) Cost of Goods Sold 30 12 55,260,000 60,786,000 66,864,600 73,551,060
b) Salaries & Wages 90 4 54,900,000 60,390,000 66,429,000 73,071,900
c) Store Operations 60 6 113,791,399 122,569,551 132,225,517 142,847,080
d) Maintenance & Repair 180 2 13,350,000 13,350,000 13,350,000 13,350,000
e) Work-in-Process 9 40 16,578,000 18,235,800 20,059,380 22,065,318
f) Finished Products 45 8 82,890,000 91,179,000 100,296,900 110,326,590
C. Cash-in-hand 15 24 30,297,850 31,902,388 33,722,379 35,779,370

( from V below)
D. Current assets _ _ 479,222,949 520,483,513 565,925,134 615,965,918
II. Current Liabilities

A. Accounts payable 30 12 -11,215,570 -12,207,078 -13,297,736 -14,497,460
III. Working Capital

A. Net Working Capital 468,007,379 508,276,436 552,627,399 601,468,458
B. Increase in Working Capital _ 40,269,057 44,350,963 48,841,059
IV. Total Production Costs _ _ 1,428,568,395 1,534,349,303 1,652,028,301 1,782,795,199
Less: Cost of Goods Sold _ _ 663,120,000 729,432,000 802,375,200 882,612,720

Utilities _ _ 9,600,000 10,560,000 11,616,000 12,777,600
Depreciation _ _ 28,700,000 28,700,000 28,700,000 28,700,000
15 24 727,148,395 765,657,303 809,337,101 858,704,879
V. Required Cash Balance _ _ 30,297,850 31,902,388 33,722,379 35,779,370
69
Schedule 05: Fixed Assets and Depreciation Allowances (In UShs)
Year 1 2 3 4 5
Initial Dep Dep Dep Dep
Asset Value Allowance Allowance Allowance Allowance
Store Equipment 201,000,000 20,100,000 20,100,000 20,100,000 20,100,000
Van 20,000,000 4,000,000 4,000,000 4,000,000 4,000,000
TOTALS 267,000,000 28,700,000 28,700,000 28,700,000 28,700,000
70
Schedule 06: Change in Total Investment Costs (In UShs)
Period Construction Full Capacity
Year 1 2 3 4 5 Total
1. Fixed Investment Costs 432,200,000 0 0 0 0 432,200,000

a) Initial fixed investment costs 432,200,000 0 0 0 0 432,200,000
b) Replacement 0 0 0 0 0 0
2. Pre-operational expenses 31,000,000 0 0 0 0 31,000,000
3. Working Capital increase 0 468,007,379 40,269,057 44,350,963 48,841,059 601,468,458
Total Investment Costs 463,200,000 468,007,379 40,269,057 44,350,963 48,841,059 1,064,668,458
Schedule 07: Change in Total Assets (In UShs)

Year 1 2 3 4 5 Total
1. Fixed Investment Costs 432,200,000 0 0 0 0 432,200,000

a) Initial fixed investment costs 432,200,000 0 0 0 0 432,200,000
b) Replacement 0 0 0 0 0 0
2. Pre-operational expenses 31,000,000 0 0 0 0 31,000,000
3. Current Assets increase 0 479,222,949 41,260,565 45,441,621 50,040,783 615,965,918
Total Assets 463,200,000 479,222,949 41,260,565 45,441,621 50,040,783 1,079,165,918
71
Schedule 08: Projected Cash Flow Table (In UShs)
Year 1 2 3 4 5 *Sal val Total
Costs (UShs)
A. Cash inflow 463,200,000 2,210,400,000 2,431,440,000 2,674,584,000 2,942,042,400 0 10,721,666,400
1. Financial resources total 463,200,000 _ _ _ _ _ 463,200,000
2. Sales revenue total _ 2,210,400,000 2,431,440,000 2,674,584,000 2,942,042,400 0 10,258,466,400
B. Cash outflow -463,200,000 -2,200,450,825 -1,902,847,077 -2,062,346,632 -2,245,720,143 871,062,658 -8,003,502,018

1. Total assets schedule
including replacements -463,200,000 -479,222,949 -41,260,565 -45,441,621 -50,040,783 871,062,658 -208,103,260
2. Operating Costs (Cost of Sales) _ -1,345,868,395 -1,464,849,303 -1,595,728,301 -1,739,695,199 0 -6,146,141,198
3. Debt Service
a) Interest _ -54,000,000 -40,800,000 -27,600,000 -14,400,000 0 -136,800,000
b) Repayments _ -110,000,000 -110,000,000 -110,000,000 -120,000,000 0 -450,000,000
4. Corporate tax _ -210,159,482 -244,737,209 -282,376,710 -320,384,160 0 -1,057,657,561
5. Dividends 4% on equity _ -1,200,000 -1,200,000 -1,200,000 -1,200,000 0 -4,800,000
C. Surplus / deficit 0 9,949,175 528,592,923 612,237,368 696,322,257 871,062,658 2,718,164,382
D. Cumulative cash balance 0 9,949,175 538,542,098 1,150,779,466 1,847,101,724 871,062,658
*Salvage values: Rent (Yr 5): 117,394,200; 57% of fixed assets: 152,200,000; Working Capital:
601,468,458
72
Schedule 09: Projected Cash Flow Table and Calculation of Present Value (In UShs)
Year 1 2 3 4 5 *Sal val Total
Investment Costs -463,200,000 _ _ _ _ _ -463,200,000

Net Profit after Tax* _ 490,372,124 571,053,488 658,878,989 747,563,041 _ 2,467,867,641
Depreciation _ 28,700,000 28,700,000 28,700,000 28,700,000 _ 114,800,000
Interest Add back
Mid-term Loan _ 54,000,000 40,800,000 27,600,000 14,400,000 _ 136,800,000
NET CASH FLOWS -463,200,000 573,072,124 640,553,488 715,178,989 790,663,041 871,062,658 3,127,330,299
Discount Factors at 14% 0.8772 0.7695 0.675 0.5921 0.5194 0.4556 _

PV at 14% -406,319,040 440,978,999 432,373,604 423,457,480 410,670,383 396,856,147 1,698,017,573
NPV at 14% 1,698,017,573
Discount Factors at 17% 0.8547 0.7305 0.6244 0.5337 0.4561 0.3898 _
PV at 17% -395,897,040 418,629,186 399,961,598 381,691,027 360,621,413 339,540,224 1,504,546,408
NPV at 17% 1,504,546,408
Internal Rate of Return = 132.10% 132.10%
NPV at 14% = USHS 1,698,017,573
NPV at 17% = USHS 1,504,546,408
73
Schedule 10: Projected Net Income Statement (In UShs)
Year 1 2 3 4 5
Income _ 2,210,400,000 2,431,440,000 2,674,584,000 2,942,042,400
Cost of Goods Sold _ 663,120,000 729,432,000 802,375,200 882,612,720
GROSS PROFIT _ 1,547,280,000 1,702,008,000 1,872,208,800 2,059,429,680
Less: Operating Costs

(excl. Cost of Goods Sold) _ 682,748,395 735,417,303 793,353,101 857,082,479
OPERATING PROFIT _ 864,531,605 966,590,697 1,078,855,699 1,202,347,201
Financial Costs (Interest @ 12% p.a.) _ 54,000,000 40,800,000 27,600,000 14,400,000
Less: Annual Repayments* _ 110,000,000 110,000,000 110,000,000 120,000,000
NET PROFIT/LOSS BEFORE TAX 0 700,531,605 815,790,697 941,255,699 1,067,947,201
Corporation Tax 30% 0 210,159,482 244,737,209 282,376,710 320,384,160
NET PROFIT/LOSS _ 490,372,124 571,053,488 658,878,989 747,563,041
Accumulated Net Profit (Loss) _ 490,372,124 1,145,341,611 1,804,220,601 2,551,783,641
Net Profit Margin _ 22.18% 23.49% 24.63% 25.41%
Gross Profit Margin 70.00% 70.00% 70.00% 70.00%
Rate of Return on Investment _ 106% 123% 142.25% 161%
Operating Profit Margin _ 39.11% 39.75% 40.34% 40.87%
74
Schedule 11: Projected Balance Sheet (In UShs)
CAPITAL EMPLOYED: YR.1 YR.2 YR.3 YR.4 YR.5
Share Capital 30,000,000 30,000,000 30,000,000 30,000,000

Retained Earnings 490,372,124 1,061,425,611 1,720,304,601 2,467,867,641
Shareholder's Equity/Deficit 520,372,124 1,091,425,611 1,750,304,601 2,497,867,641
Long-Term Liabilities 450,000,000 450,000,000 340,000,000 230,000,000 120,000,000

450,000,000 970,372,124 1,431,425,611 1,980,304,601 2,617,867,641
EMPLOYMENT OF CAPITAL: `
Store Equipment 201,000,000 180,900,000 160,800,000 140,700,000 120,600,000

Vehicle 20,000,000 16,000,000 12,000,000 8,000,000 4,000,000
LONG-TERM ASSETS: 267,000,000 238,300,000 209,600,000 180,900,000 152,200,000
CURRENT ASSETS: 183,000,000 797,287,693 1,274,832,689 1,840,302,337 2,494,565,101
Accounts Receivable 112,155,700 122,070,775 132,977,358 144,974,600

Stock (Inventory) 336,769,399 366,510,351 399,225,397 435,211,948
Bank Balance and Cash 30,297,850 31,902,388 33,722,379 35,779,370
Other Current Assets 318,064,745 754,349,176 1,274,377,202 1,878,599,184
CURRENT LIABILITIES: 65,215,570 53,007,078 40,897,736 28,897,460

Accounts Payable 11,215,570 12,207,078 13,297,736 14,497,460
Current Portion of Long-term
Liabilities 54,000,000 40,800,000 27,600,000 14,400,000
NET CURRENT ASSETS: 183,000,000 732,072,124 1,221,825,611 1,799,404,601 2,465,667,641

TOTAL CAPITAL 450,000,000 970,372,124 1,431,425,611 1,980,304,601 2,617,867,641
TOTAL ASSETS: 450,000,000 1,035,587,693 1,484,432,689 2,021,202,337 2,646,765,101
75
Schedule 12: Ratio Analysis (In UShs)
Year 1 2 3 4 5
Sales Growth 5% 5% 5%
Percent of Total Assets

Accounts Receivable 10.83% 8.22% 6.58% 5.48%
Inventory 32.52% 24.69% 19.75% 16.44%
Other Current Assets 30.71% 50.82% 63.05% 70.98%
Total Current Assets 76.99% 85.88% 91.05% 94.25%
Long-term Assets 23.01% 14.12% 8.95% 5.75%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 6.30% 3.57% 2.02% 1.09%

Long-term liabilities 43.45% 22.90% 11.38% 4.53%
Total Liabilities 49.75% 26.48% 13.40% 5.63%
Net Worth (Total Capital) 93.70% 96.43% 97.98% 98.91%
Percent of Revenues
Revenues 100.00% 100.00% 100.00% 100.00%
Gross Margin 70.00% 70.00% 70.00% 70.00%
Management / Administration 0.45% 0.45% 0.45% 0.45%
Net Profit (after Interest & Tax) 22.18% 23.49% 24.63% 25.41%
Main Ratios
Current 12.23 24.05 45.00 86.32
Quick 7.06 17.14 35.24 71.26
Total Debt to Total Assets 43.45% 22.90% 11.38% 4.53%
Pre-tax Return on Net Worth 72.19% 56.99% 47.53% 40.79%
Pre-tax Return on Assets 67.65% 54.96% 46.57% 40.35%
Business Vitality Profile

Revenue per Employee 110,520,000 121,572,000 133,729,200 147,102,120
76
Schedule 12: Ratio Analysis .…… continued (In UShs)
Additional Ratios
Net Profit Margin 22.18% 23.49% 24.63% 25.41%
Return on Equity 94.23% 52.32% 37.64% 29.93%
Activity Ratios
Accounts Receivable Turnover 1.97 1.99 2.01 2.03
Collection Days 30 30 30 30
Inventory Turnover 4.00 4.00 4.00 4.00
Accounts Payable Turnover 1.20 1.20 1.20 1.20
Payment Days 30 30 30 30
Total Assets Turnover 2.13 1.64 1.32 1.11
Fixed Assets Turnover 5.65 6.99 8.82 11.43
Debt Ratios
Debt to Net Worth 0.46 0.24 0.12 0.05
Current Liability to Liability 0.14 0.16 0.18 0.24
Debt-Service Coverage Ratio 3.49 4.25 5.20 5.88
Liquidity Ratios
Net Working Capital 468,007,379 508,276,436 552,627,399 601,468,458
Interest Coverage [Times 16.01 23.69 39.09 83.50
Interest Earned Ratio - TIE]
Additional Ratios
Assets to Revenue 0.47 0.61 0.76 0.90
Current Debt / Total Assets 5.21% 2.75% 1.37% 0.54%
Acid Test 7.06 17.14 35.24 71.26
Sales/Net Worth 2.28 1.70 1.35 1.12
77
Schedule 13: Projected Payback Period (In UShs)
YEAR/ITEM 2 3 4 5
Net Profit 490,372,124 571,053,488 658,878,989 747,563,041

Interest 54,000,000 40,800,000 27,600,000 14,400,000
Depreciation 28,700,000 28,700,000 28,700,000 28,700,000
"Profit" 573,072,124 640,553,488 715,178,989 790,663,041
Year Amount paid Balance of Balance of
back from Loan Equity
"profits" Investment Investment
1 0 -463,200,000 -30,000,000
2 573,072,124 109,872,124 543,072,124
3 640,553,488 750,425,611 1,183,625,611
4 715,178,989 1,465,604,601 1,898,804,601
5 790,663,041 2,256,267,641 2,689,467,641
Pay Back Period = 1.81 YEARS
Schedule 14: Sensitivity Analysis (In UShs)

Items PAT BEP IRR Payback
Base Case 747,563,041 18.96% 132.10% 1.81 Years
Increase in Operating Costs by 5% 717,565,154 20.20% 126.98% 1.84 Years
Selling Prices up by 25% 1,262,420,461 12.52% 216.31% 1.48 Years
Decrease in Raw Materials by 10% 809,345,931 17.86% 142.20% 1.75 Years
Increase in Raw Materials by 10% 685,780,150 20.21% 122.01% 1.88 Years
Key:
BEP: Break-Even Point
IRR: Internal Rate of Return
PAT: Profit after Tax
78

Jamba Juice Inc - Business Plan-2

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Jamba Juice Inc - Business Plan-2

Diunggah oleh

Hak Cipta:

Format Tersedia

BUSINESS PLAN

JUICE & SMOOTHIES BAR/CAFÉ

JAMBA JUICE INC.

JAMBA JUICE INC.

S/NO. DESCRIPTION PAGE

1.0 EXECUTIVE SUMMARY 1

2.0 BUSINESS DESCRIPTION 6

3.0 COMPANY INFORMATION 9

4.0 PRODUCTS & SERVICES 15

6.0 MARKETING STRATEGY 33

7.0 MANAGEMENT AND ORGANIZATIONAL STRUCTURE 37

8.0 OPERATIONS PLAN 40

9.0 IMPLEMENTATION PLAN 44

10.0 FINANCIAL PLAN 46

11.0 PROJECT ECONOMICS 54

12.0 RISK ASSESSMENT AND MITIGATION PLAN 57

14.0 EVALUATION & CONCLUSION 61

T/NO. DESCRIPTION PAGE

1 Key Project Performance Parameters 5

2 Company Legal Structure 9

3 Initial Business Investment Costs 13

5 Juice and Smoothies Bars in Kampala 28

10 Small Tools and Equipment 42

11 Project Management Timetable 44

13 Projected Cash Flows 48

14 Projected Balance Sheet 49

15 Break-Even Analysis in Project Year 5 52

17 Calculation of Value Added 56

F/NO. DESCRIPTION PAGE

1 Performance Highlights (PY2 – PY5) 5

3 Market Analysis (Pie) 20

4 Consumption of Healthy Food/Drink 23

7 Size of a Smoothie Cup 24

8 Feelings towards Fruits 25

9 Favourite Fruit Products 26

11 Juices & Smoothies Value Chain 40

13 Project Implementation Schedule 45

S/NO. DESCRIPTION PAGE

01: Key Financial Modeling Assumptions 62

02: Source and Structure of Project Financing 65

03: Loan and Interest Service Schedule 66

Calculation of Working Capital: I Minimum Requirements of Current

Calculation of Working Capital: II Annual Production Cost –

04/3: Calculation of Working Capital: III Working Capital Requirements 69

05: Fixed Assets and Depreciation Allowances 70

06: Change in Total Investment Costs 71

07: Change in Total Assets 71

08: Projected Cash Flow Table 72

09: Projected Cash flow Table and Calculation of Present Value 73

10: Projected Income Statement 74

11: Projected Balance Sheet 75

12: Business Ratios/Ratio Analysis 76

13: Projected Payback Period 78

14: Sensitivity Analysis 78

1.1 Business Profile

1.2 Company Objective

The products to be made include: juices, shakes, smoothies, and yogurt-based

1.3 Specific Objectives

 To become the best juices and smoothies bar/café in Uganda.

1.4 Mission Statement

1.6 Company Start-Up Financing

1.7 Management Team

1.8 SWOT Analysis

1.9 Business Operating and Pricing Strategies