ENERGY DRINK PRODUCTION BUSINESS PLAN SAMPLE TEMPLATE
Drinks have always been in high demand, and they will continue to be so, if not for anything but for the fact that people drink a lot; and they drink always!
Is energy drink a good business? Yes. People will always drink, whether it is an energy drink, alcohol, name it! The reason why people drink is not that far-fetched; for one thing, it brings them a huge satisfaction and instant refreshment.
There are so many energy drinks, produced by different energy drink companies. The busy nature of working-class Americans means that they have to refresh their energy levels constantly. But with the opportunities presented by this business, comes the need to first write a good business plan.
By now, you will agree with me that the drink business is a very profitable one; however, as with most business ventures, you will not want to dive into the river without first testing the waters. There are several steps will you have to undertake, and you must get acquainted with them before you can start considering venturing into this business.
In this article, I am going to share with you several steps you must consider before starting a drink company. Of course, there are obvious ones such as getting a good location and determining who your target market is. However,
I will share with you some key ones that you must not neglect.
Here is a sample business plan for starting a drink production business.
- Choose your Niche
You must choose the niche you would want to focus on in the drink industry. The industry is a very wide one; hence you will need to narrow down your product offering to a particular niche so you can easily seize the market.
Your business idea is one thing that will be able to guide you in deciding the niche you should focus on. The following are several categories of drinks:
- Health drink
- Energy drinks
- Alcoholic drinks
- Juices and sodas
Having been able to decide which drink category your business idea falls into, you should now be in a better position to start investing your time into learning everything you can about that drink niche. Learning the business entails you make detailed inquiries about the business from various brands in the industry.
It will be very helpful if you get some sort of experience in the industry. This will ensure that you start your drink company on the right foot. You may want to make detailed inquiries about the business from entrepreneurs in the industry who do not consider you a direct competitor.
- Do a Market Analysis
As mentioned earlier, the drink business is a very wide one; hence you must do critical market research on the industry and the niche. Market research in the industry will enable you to know who your target market is, who your competitors are, and how the market is locally and internationally.
- Develop your Drink
Starting your own drink company would entail developing your drink (your product). Your product should be distinguishable from the others. At this point, you should have been able to put your product formulation together, and perfected your idea, especially the taste. You do not want to make your product taste like some other product out there. Your product has to be unique and original.
To be able to perfect your product formulation or recipe, you may have to host a tasting party where you will be able to get positive feedback from people.
- Find Material Suppliers
You will need to find suppliers who will supply you with raw materials for your drink company. Since you will be manufacturing your drinks, you must locate reliable suppliers that will supply you with quality raw materials which you will use in making your formula. Depending on the type of drink you will be offering your customers, you may need raw materials such as sweeteners, flavors, coloring, etc.
- Get the Needed Equipment
You will have to purchase the needed equipment for your drink company. For you to know the equipment you will need in the operation of your drink company, you will have to carry out a thorough feasibility study to know the equipment you will require for your drink company, as well as the respective price of each piece.
You may need to procure your bottling plant to be able to bottle your drinks. If you cannot afford to purchase all the pieces of equipment you will need, you may have to lease some.
You will not be able to run your drink company all by yourself. You must need the help of employees. You must do well to hire competent and qualified hands to help you run your company. It is also very important you think about how many employees you would need, and how much you will pay them. You will need the services of machine operators, accountant, truck drivers, etc. The size of your workforce will depend on the size of your drink company.
Get your Packaging Right
One of the best and most effective ways of getting customers’ attention is through packaging; you do not want to get this one wrong. You should make sure you create a unique and interesting design for your bottles, one that truly represents the image of your brand.
- Determine your Marketing Strategy
Before you can develop marketing strategies for your drink company, you will have to carry out detailed market research. This will enable you to know exactly how you intend to enforce your marketing strategies to promote your brand.
- Obtain the Necessary Licenses and Permits
The drink (beverage) industry is one that is highly regulated in every country; so you must get all the required licenses and permits such as health permits, etc.
You will have to go and get your drink company registered first before getting the permits you will need; so I would suggest you come up with several exciting names for your drink company before heading to get your company registered.
- Write a Drink Production Business Plan
Of course, I cannot leave this one out of the list! You cannot fully set up your drink company without having to write a business plan. A drink business plan is very important, especially if you will want to source for loans from either bank or investors.
You do not have to necessarily write it all by yourself; you could get the services of a professional to help you write a good business plan for drink business.
Your business plan must contain some key aspects of your business such as your business name and location, your products and services, target market and competitive advantage, etc.
ENERGY DRINK PRODUCTION BUSINESS PLAN EXAMPLE
Below are the guidelines under which this article will be written;
- Executive Summary
- Products and Services
- Vision Statement
- Mission Statement
- Market Analysis/Trends
- Target Market
- Competitive Advantage
- Sales and Marketing Strategy
- Sales Projection
- Publicity and Advert Strategy
- Payment Channels
Ales energy drink with its first outlet to be opened in California will be solely concerned with the production of premium brand energy drinks of different variants all designed for different customer needs and choices.
We will be ensuring that all our energy drink products are produced under the strict supervision of an effective quality control unit, meeting up the health standards set by the national health regulatory body. Apart from producing different flavored variants of drinks, we will also be offering franchise opportunities for investments, business partnerships, and training.
Products and Services
Offering a wide array of products and services, Ales energy drink will have on its list of products different flavored energy drinks, bottled water, our specially designed signature energy flavored drinks, and also a collection of beverages that will all bear the Ales brand name.
With high competition in the energy drink industry, Ales energy drink will not be left behind in the competition as we will ensure that we become a premium brand in the energy drink industry within our first five years of commencement of operations.
Our mission is to build a formidable brand that will easily win the respect and trust of both consumers and investors alike, hence becoming the brand to patronize either by consumers or investors who will love to enter into a franchise agreement with us.
Market Analysis and Trends
Analysis has shown a sharp rise in energy drink production industries. With the increase in new entrants/players into this industry is the rise of innovation and competition, all fueling a strong desire to capture the energy drink market.
There have been several attendant innovations which include the introduction of new flavors to the energy drink stable and also the new marketing innovations which involve celebrity stars advertising such products and services.
Some energy drink production companies have gone the extra mile in hiring celebrity brand ambassadors, all in a bid to capture the market.
Because of the nature of our products which are primarily energy drinks, produced in different flavors, our target market will include the most active segment of the population which includes the working population.
These include company executives, employees, students, the military, celebrities, sportsmen and women, tourists, and other groups which make up the most active segment of the American population.
The advantage we will have over our competitors is the fact that we will ensure that the workforce we employ will have the best motivation package. Among other motivation incentives to be provided to our workforce is an attractive remuneration package that will help in making them committed to the aims of our business.
Also, we will be ensuring that our quality control unit consists of the best brains in quality control, thereby ensuring that only the best products reach the consumers.
Sales and Marketing Strategy
The sales and marketing strategy to be adopted by us will include entering into partnerships with store owners such as department stores, supermarkets, pharmacies, among several other distribution outlets to ensure that our products achieve a high distribution penetration.
The services of a marketing strategist will be required to handle the marketing unit of our business to help us achieve the optimal consumption of our products.
With an in-depth analysis carried out on the nature of the energy drink market, we have projected that within the first 3 years of opening business, we will achieve tremendous growth, thereby increasing the profitability of our company. This projection however discounts factors like economic recession, sudden natural disasters among many others.
Publicity and Advert Strategy
The publicity and advert strategy to be deployed will be broadly based as it will include the use of the local TV and radio stations to advertise our products and services. Also, the internet will be exploited in a bid to achieve the highest sensitization level.
We will be building a website containing all the products and services produced and rendered respectively. Also, we will be erecting billboards in high-density areas to drive our customer base growth.
The payment channels to be used by Ales will be varied to suit customer preferences. Among these is the acceptance of payments through the POS, receipt of cash, mobile money transfers among other several means of payments.
These are to ensure that our clients do not have to be worried about how or what mode to use in the settlement of bills.
The above sample gives an idea on how to write an effective energy drink production business plan sample and the detailed guidelines to use, only substituting them with the ones unique to the entrepreneur’s business concern.