Summary

This business involves the marketing and sale of a unique and innovative device for improving the efficiency of lifting, packing and positioning beverages contained in plastic, glass or cans. The mechanism has a full international patent and will revolutionise the method of stacking beverages in a refrigerated environment. Exceptional efficiency improvements will result. R195,000 investment (active or passive) required. Excellent returns.

1. History Background

Fully describe the business's activities

The marketing and sale of a unique and innovative device for efficiently improving the lifting, packing and positioning of beverages contained in plastic, glass or cans. The device can lift multiple beverages from a case or crate, simultaneously placing them into vertical refrigeration. The mechanism has a full international patent and will revolutionise the method of stacking beverages in a refrigerated environment. Huge efficiency improvements will result.

Will the business manufacture the product(s)

No - This will be contracted out to an already identified supplier. Tooling costs of R60,000 comprise part of the funding sought from an investor. The balance is for stock and working capital.

2. Present Market

How will clients be attracted to the business's products

Through active promotion via distributors.

What is the traget market

Consists of individuals and establishments in the food and beverage/hospitality industry. Namely: Pubs, taverns, liquor outlets, restaurants, fast-food outlets, forecourts, entertainment venues, supermarkets, wholesalers, food stores, promotional events, shopping malls, hotels, and factories manufacturing and packing beverages.

What is the size of the market

RSA 500,000+, Africa 500,000+, International 12,000,000+

What competition exists

None. This is a unique patented product.

National distribution

The immediate objective is to appont distributors in all metropolitan and rural areas whilst ensuring a constant supply to all distributors and buyers in both South Africa and other African states.

3. Financial

Are cash flow projections available

Yes - Projections are based on very conservative assumptions, particularly those relating to pricing and the speed with which distributors are appointed. PLEASE NOTE that, although turnover figures are shown as 2008, they are in fact future projections.

How has product pricing been established

Via market research, the perceived value to customers and potential cost saving resulting from use of the product.

What investor input will be required

To be discussed with interested parties. Passive investors are welcome to enquire as well as those who wish to play a more active role in the business. Those with sales and marketing experience in the F&B/hospitality industry would add considerable value to business.

What capital is required from an investor

R470,000, comprising tooling costs R250,000; Initial stock (2,000 units) R120,000; Working capital R100,000.

4. Staffing

How many staff at start-up and their job types

Apart from the shareholder(s), there will, for the forseeable future, be one administration staff. Field staff will be appointed distributors and agents.

What commissions/ incentives will be offered

Distributors will derive income directly proportional to sales value.

5. Premises

What size premises will be required

Work from home for the first 6 months. Thereafter it might be necessary to open an office. This has been included in projections.

Where will it be located

Operations will be based in Cape Town

6. Assets

What assets are required.

Minimal - to set up a small office infrastucture. Desks, furniture, filing, phone, internet, computer equipment etc.

7. S.W.O.T. Analysis

Strengths

Unique patented product; No competition; Huge cost savings to customers; Excellent profit margins.

Weaknesses

New product , so "unknown future".

Opportunities

Unlimited in untapped markets.

Threats

None

8. Reason For Sale

What is the reason for the sale

Investor required