YUNQUERAS Business Plan
June 2019.
Calle Calvario 44, Yunquera, Malaga 29410
Company Number: S?????
Telephone: 0034 635 07 90 27
Contact: Michael Lindsay Orr
THE COMPANY
Yunqueras operates from a location in Yunquera, Malaga, Spain.
Web domains registered - yunqueras.com
facebook page registered
Trade Mark needs to be registered
NON-DISCLOSURE
By continuing to read this document you agree to disclose the content to no-one without the written permission of Michael Lindsay Orr
Financial Services and Markets Act 2000
(or Spanish equivalent)
This business plan is not a prospectus and does not, and is not intended to, constitute an offer or invitation to invest in securities, nor shall it, or any part of it, be relied upon in any way in connection with an offer to subscribe for shares. Private Investor recipients are assumed to possess a certificate of ‘High Net Worth’ or ‘Sophistication’ as set out in articles 48 & 50 of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2001. You should seek your own independent advice in relation to the information contained therein. Investment in a new business carries high risks as well as the possibility of high rewards; it is highly speculative and investors should be aware that no established market exists for the trading of shares in private companies.
Before investing in a project about which information is given, potential investors are strongly advised to take advice from an authorised person who specialises in advising on investments of this kind.
Confidentiality & Disclaimer
Receipt of this Business Plan shall constitute the agreement of the recipient that the Business Plan, together with any additional information, verbal or otherwise, that may be provided, (i) shall be treated and maintained as confidential, (ii) shall not be reproduced or used for any purpose other than to evaluate the proposed investment, (iii) shall not be submitted to or discussed with persons other than the authorized representatives, agents and advisors of those to whom it is transmitted by the Company (and only then on the confidential basis described in this paragraph) without prior written consent of the Company, and (iv) shall be returned to the Company promptly at any time upon request. Any distribution of this material, in whole or in part, or the divulgence of any of its contents, without the prior written consent of the Company is expressly prohibited.
CONTENTS
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Financial Services and Markets Act 2000
Confidentiality & DisclaimerYunqueras Proposition – Liqueur and steeped fruit production
Yunqueras Q product range
Benefits of Yunqueras to the local economy
Market Research
The Market
Management Team
Marketing
Sales Strategy
Progress to Date
Future Milestones
Strategic Partners
Operations
Financing RequirementAdvisors
Appendices
Confidentiality & DisclaimerYunqueras Proposition – Liqueur and steeped fruit production
Yunqueras Q product range
Benefits of Yunqueras to the local economy
Market Research
The Market
Management Team
Marketing
Sales Strategy
Progress to Date
Future Milestones
Strategic Partners
Operations
Financing RequirementAdvisors
Appendices
SYNOPSIS
To produce and market a unique range of liqueurs and liquored fruit using the resources and ingredients found in the Sierra de las Nieves National Park.
To promote Yunquera and its privileged position within the National Park as a spectacular place to visit and a great place to invest.
To offer the opportunity of employment to a rural community - an area suffering from depopulation, high unemployment and few opportunities.
EXECUTIVE SUMMARY
Yunqueras is a manufacturing Start-up seeking to raise equity-based funding through an ethical crowd-funding platform and strengthen its executive board to facilitate product development and take to market. With a strong experienced management team having both entrepreneurial and market sector backgrounds, Yunqueras is well-placed to capitalise on current market trends.
Yunqueras is a collection of fruit, almond, chestnut and star-anis liquors and preserved fruit.
Yunqueras core business will generate revenues from the sale of the above products.
Yunqueras will contribute significantly to the economy of Yunquera and the Sierra de las Nieves National Park by providing opportunities to a rural area with high unemployment, village de-population and youth emigration.
Yunqueras will use the local agricultural produce that the farmers currently cannot sell because of high transport to market costs and low product value. Currently many harvests are left unpicked by the farmers and on abandoned fincas, leading to the ruination of the agricultural sector and the consequential environmental problems.
The Yunqueras product range is totally sustainable and readily expandable as the increasing market will dictate.
Yunqueras anticipate achieving a pre-tax net profit of ????? euro in Y5. Breakeven will come at the beginning of Y3, moving to a net profit (Pre-tax) of ????? euro at the end of year ????. This forecast is based solely upon securing a client base in the UK market, before targeting international markets.
Yunqueras will benefit from the public´s swing towards a preference to buy products from an ethical source, grown in a natural environment and with a fair-trade attitude. For these natural products customers are prepared to pay a premium price.
Yunqueras has created a very strong brand identity by concentrating on the letter “Q”.
Yunqueras sees some barriers to entry for competitive solutions. Very few places have all the ingredients to provide such a comprehensive product range in such a concentrated area. Beyond the basic idea of providing a quality product, the investment and competence required to build a competing product range is still significant. An important factor within the Yunqueras marketing plan is to concentrate on, and exploit, the fact that Yunqueras is produced in a National Park which, in itself, is a powerful marketing tool and would be difficult to replicate. There seems little to differentiate a copycat solution, beyond location, that is not achievable within the Yunqueras concept.
With early collaboration of local and regional government, Yunqueras seeks to define this segment by setting the standard, both for product quality and strong branding.
The acting Spanish government recognises that something has to be done to combat rural depopulation in Spain. It aims to turn abandoned areas into “spaces of opportunity”, taking advantage of natural resources to lure people and businesses back to the countryside. Such an initiative would also remind an increasingly city-orientated population of the pleasures of living close to nature, with a beautiful view to wake up to every morning.
Yunqueras cashflow projections show a staged funding requirement of ????? euro over the first two years, which will be used to undertake a pilot programme with an established distributor and then further develop the project to completion. Yunqueras will be ready to generally market the project after successful pilot testing within 3 months of securing funding.
The board of Yunqueras are fully aware of the stage the company is currently at and therefore are prepared to negotiate a realistic level of equity in return for a commitment to fund the company through to a secure revenue stage. Stage funding is based on achieving predefined delivery milestones.
YUNQUERAS PROPOSITION
Liqueur and steeped fruit production
Yunqueras Q is a range of liqueurs using the fruit and nuts available in the Sierra de las Nieves National Park in the countryside surrounding Yunquera in Malaga.
Orange, lemon, cherry, almond and chestnut, and their cream-based derivatives.
Yunqueras Q Gourmet Collection is a range of fruit steeped in liqueur.
Orange, lemon and cherry.The Yunqueras Q Gourmet collection has been created by using the waste products from liqueur compounding. i.e. the residual fruit.
Yunqueras has the opportunity to create an interesting range of traditional, natural products using the unwanted fruit and of the Sierra de las Nieves National Park. A range of products that will protect the environment, alleviate unemployment in a depressed rural area and create a wider public awareness of the benefits of visiting, living and investing in a spectacularly beautiful area.
YUNQUERAS Q PRODUCT RANGE
Yunqueras Q will be available in six flavours and two sizes – 20cl and 70cl.
Naranja, Naranja Crema, Limon, Limon Crema, Cereza, Cereza Crema, Almendras, Anis and Chestnut.The 70cl is the normal commercial bottle size.
Naranja – a complete orange steeped in Q naranja; Limon – a complete lemon steeped in Q Limon; Cereza – ten cherries steeped in Q Cereza.
BENEFITS OF YUNQUERAS
to the local economy
Yunqueras will provide a market place for the unwanted fruit and nuts grown in Yunquera and the surrounding countryside.
Yunqueras will provide employment in an area of virtually no opportunities.
Yunqueras will protect the environment by giving local farmers the motivation to continue to grow and harvest – and not abandon - their fincas.
Yunqueras branding and marketing will create a wider public awareness of the Sierra de las Nieves – Spain´s newest national park.
This will attract a growing number of visitors, stimulating more investment and jobs within the tourist sector and thereby improving the local economy.
MARKET RESEARCH
Whilst there are many alternatives in the liqueur marketplace, there are very few in the eco-friendly liqueur market. Thatcher´s Blood Red Orange Liquor, for instance, is eco-friendly but is a micro-producer with no market presence.
Likewise, many villages produce their own local Wines and liqueurs, but none is marketed within a strong brand image to a national or international clientele.
Key findings were:
· The increasing market awareness of the benefits to natural eco-production.
· The public are prepared to pay a small premium for traditionally-made environmentally-friendly products.
This can be observed in every major supermarket where the number of green products available is constantly increasing
THE MARKET
Yunqueras market is global – as are all liqueurs.
Realistically, the market will be developed in stages. There are thousands of restaurant and bars within three hours of Yunquera: in major cities such as Malaga, Seville, Granada and Cordoba; the major tourist destination that is the Costa del Sol; Malaga airport and the growing inland eco-tourism areas.
This will be handled through established distributors.
Given the comprehensive range of products on offer, major and minor supermarket chains will be approached.
Thereafter, Spain and other markets can be examined.
THE MANAGEMENT TEAM
Michael Lindsay Orr
A serial entrepreneur that started his first company in 1987: Broughton Design – an award-winning design studio for clients such as Rick Astley, RCA Records, Hoechst Chemicals, local government, Domino Pizza.
This developed into the Incredible Group of Companies with clients such Volkswagen, Audi, SEAT, Skoda, Aston Martin, ABB, Minolta and others. Services included marketing, exhibition design and manufacture, corporate signmaking.
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Simon D´alessandro
An entrepreneur and restauranteur of over thirty years´ experience, including a current venue in Puerto Banus, one of Spain´s most prestigious locations.
Italian food and beverage designer, including Simoncello – his own version of Limoncello that he has produced for over twenty years.
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BRANDING
Strong branding is very important for market awareness and consumer recognition in a crowded marketplace.
We have taken the "Q" out of the company name - Yunqueras - as this is very easy to remember and offers a wide range of market recognition opportunities.
The Q liqueur label is very easy to recognise on the shelf.
For the Q GOURMET COLLECTION there is strong branding.
The Q Liqueur and Gourmet Collection can be used in many ways and, indeed, develop its own personality as each use can be named and ordered in a bar or restaurant by its own nomanclature.
Examples:
QOn the Rocks - - Un excelente digestivo
QDecadente - Con crema y helado es un postre decadente
QDiamante - Con cava - un apertivo especial
QPalmera - Con coco yogur griego para iluminar el comienzo de su día
QCafeCrema- Con cualquier sabor - es increible
These ideas and others will form an interesting part of the social media marketing campaign.
MARKETING
In keeping with the green philosophy, a paper-free marketing programme with be employed as much as possible.
Yunqueras will pursue membership of all relevant trade associations such as El Sabor de Malaga.
http://www.saboramalaga.esOutbound marketing will be derived from engagements with the press agencies for trade press and press release activity within the beverage media. Exiting B2B relationships will be exploited as will a directed sales campaign targeting the identified prospect list. This will include trade shows, workshops, seminars, webinars.
SALES STRATEGY
Yunqueras has a well-defined target account list starting with the distributors within the province of Malaga. Segmentation is expected to be similar in regional, national and international markets.
Yunqueras is already well-placed within this segment with a solid reputation within the catering industry. Through these existing relationships, Yunqueras will commence an initial pilot and proof-of-concept deployment and start to make initial business development activities within the broader target segment in Spain.
Dedicated business development resources with appropriate experience within this segment are planned to accelerate growth and achieve the forecast sales targets.
Focus for Y1 and Y2 will be developing the domestic Spanish market. Opportunistic international business will be explored and pursued if commercially viable at the time. International expansion is planned from Y3.
Pricing Strategy for Yunqueras is of fundamental importance to build market share but also improve margins and profitability over time. Yunqueras has two revenue opportunities:
YUNQUERAS Q - The beverage market to restaurants and bars via distributors and direct to supermarket chains.
YUNQUERAS Q GOURMET to supermarkets and higher-end retailers.PROGRESS TO DATE
Milestones achieved by YUNQUERAS:
Market Research completed
Core products defined
Core management team formation
Pilot samples ready for evaluation
Website
Yunqueras.com – under development
Support websites
Grant and Business Support options under investigation
FUTURE MILESTONES
Execution
Time Frame
Idea / Concept
Product Development
Market Launch
Scale and Growth
STRATEGIC PARTNERS
To be investigated
OPERATIONS
Location
Factory equipment and layout
Health and safety
PERSONNEL PLAN
At start-up:
Role - number needed - salary
Year 1:
Role - number needed - salary
FINANCING
Summary of cash flow and Profit and Loss, showing how much is needed to fund the business.
RISK ANALYSIS
Risks exist that investors in a start -up must be aware of are listed below:
Capability Risk: The risk that the start-up is unable to scale its capability on a timely basis and at levels required.
Design Risk: The risk that the product or service design does not meet the required performance standard.
Development Risk: The risk that development of the product or service is not completed on time, within budget or to defined specifications.
Economic Risk: The risk that the company’s success is sensitive to external economic factors.Design Risk: The risk that the product or service design does not meet the required performance standard.
Development Risk: The risk that development of the product or service is not completed on time, within budget or to defined specifications.
Economic Life Risk: The risk that the product or services useful life in the marketplace is shorter than originally anticipated or projected.
Legislative and Policy Risk: (a.k.a. “Regulatory Risk”) The risk that legislative and policy changes will result in higher costs to the start-up.
Maintenance Risk: The risk that maintaining the company’s assets at appropriate levels will cost more than anticipated.
Management Risk: The risk that the management team lacks the skill sets and experience to execute the start-ups’ business plan.
Operations Risk: The risk that operating costs are greater than budgeted, or that the service cannot be provided at the projected costs.
External Factors Risk: Success is sensitive to external economic factors.
Technology Risk: The risk that less than optimal technology is developed or utilized or that a competitor leapfrogs the start-up’s technology.
Volume / Demand Risk: The risk that the actual market’s demand for the product or service will not yield the projected sales volumes.
Research Risk: The risk that the quality of the initial research upon which key company assumptions were based was flawed in an impactful way.
Risk of Cyber Attack: Potential cyber-attacks represent a threat to any technology business
ADVISORS
Lawyers
Accountants
FINANCIAL OVERVIEW
Three year plan
Three year profit and loss
APPENDICES
Business history:
Michael Lindsay Orr
Simon D´alessandro
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