Fall

MARCH 25

Business Proposal: Phase 2

PREPARED BY: LUIS ABDUL-MELENDEZ 53398JOEL ANIRUDH
59854NATALIE FONROSE 55859
PREPARED FOR:
STEVE SEETAHAL

ALPHA MEALS

08
16

On September 10, 2015 three young entrepreneurs, students of the University of

Trinidad and Tobago, established Alphas Meals. Their vision was brought about
the appalling obesity rates experienced in Trinidad and Tobago. Trinidad and
Tobago was regarded as the 20th fattest country in the world, with an
obesity/overweight rate of 67.9% according to a recent study by the World Health
Organization. This is influenced by the ease of accessing unhealthy foods
compared to healthy options. Healthier franchise options in Trinidad and Tobago
were never provided with an adequate market. The growing, health-seeking
population makes entering into this market a win-win situation. Alpha Meals will
quickly become a part of the daily life of a healthier nation.

Industry and Market Feasibility

The Market Structure, Size, Trends and Factors That Influence the Market
Statistics generated yearly show the increase in obesity across countries. As a
result people have been taking health and fitness much more seriously. The size
of the market is the growing healthy lifestyle seeking population. Media and
society create the image of a fit body being most attractive and a fit person is
highly desired while doctors provide the facts supporting the need to be healthy.
The nature of food businesses locally does not meet the needs of these
individuals.

Figure 1. Statistics of activity across age groups

Examining the pattern of increased desire to be active and engage in a healthy

lifestyle provides support to the healthy food industry. A significant amount of
earnings can be made by ventures in this market.

The Number and Location of Potential Buyers

The number of potential buyers on a daily basis can be carded at roughly one
hundred and twenty persons as the location is near a large shopping complex
and a short distance from a top rated gym. There is also the potential of
increasing this figure to two hundred with the availability of meal plans that can
be delivered to most locations across Trinidad.
The Growth Potential of the Market
Fitness and a healthy life style has quickly become a way of life for millions, as
the benefits have been made so clear and real to the world. As a result the
market has the potential to expand further from adults down to children, who will
continue into it as they enter adulthood. Expansion of a branch to the sister isle is
a real possibility as the business will be able to take advantage of the almost
constant tourist population.
Competition and Forecasted Market Share
There is no real threat of competition, as food businesses currently are not
designed to satisfy these specific needs of customers. This is due to the fact that
their initial market has grown accustomed to the nature of their product and a
sudden change may cause sever losses. Alpha Meals has a potential market
value of $5 million with maximum of 500,000 market shares being offered at $10.
Use of 5 Forces Model/Matrix Identifying Market/Industry Attractiveness

Supplier control there is a high demand for the items required for Alpha
Meals to execute business, however by targeting farmers who do not have
a steady consumer, Alpha Meals will be able to capitalize on goods. Due
to the nature of the goods needed, bargains can be easily made along
with contracts.

Buyer control customers do not have much control over the prices based
on the nature of the product. A healthy meal price is justified by the quality
of the ingredients and the convenience of its availability on the go.

Potential entry food businesses open frequently in Trinidad, as a result it

is not a difficult to enter the market. However the customer based being
focused on has not been shown much consideration, this enables Alpha
Meals to meet the needs of an entire market and build a strong customer
base.

Substitutes to date there is no healthy meal businesses in Trinidad that

allow customers to come and order their meal of choice, there are only
semi-healthy options available on the go or pre-ordered meal plans.

Industrial Rivalry most food businesses currently are focused on

maintaining their typical customer base (no consideration paid to what is
consumed). Therefore there is not a great deal or competitors in the
specific field.

Product or Service Feasibility

Product/Service/Business Serving Needs and Existing Markets Pertaining to

Demands and Supplies
Due to the increased desire by the population to practice a healthier lifestyle and
lifestyle choices there is a strong need for food that satisfies them. Food that can
be tasty while being rich in nutrients, low on chemical additives at an affordable
price satisfies a market that is highly demanding. The working person may not
have the time to prepare a healthy meal, which makes the option to have a
designed meal plan prepared weekly very attractive.
Companys Advantageous Situation Amongst the Competition for Our Service
The location is ideal as it is positioned near a shopping complex and a gym.
Although there are alternative food places in the vicinity, the advantage of a
healthy meal option will compete based on taste, the price of the meals and the
benefits of its selection. Customers will be more compelled to make purchases
here as they are given the option to create their own meal without worrying about
the sluggish feeling of poor dieting.
Inventory and Start-up Cost for the Business
Alpha meals is a small food business with 4 employees. Two cooks, one cashier,
one nutritionist. The list below contains the requirements of the business:

2 vehicles (one for delivery one for transportation of goods)

Work-space (to be constructed)
Kitchen equipment
Seating arrangement
Ingredients
Fuel

The capital required to start this business is $1,500,000.00 one million five
hundred thousand dollars. This covers the cost of construction and furnishing of

building, procurement of equipment, inventory for 1 year and salary of workers

for 1 year.
Name and Location of Potential Suppliers
Raw goods such as vegetables will be accessed through local framers in the
area of Aranguez. Seasonings will be purchased from Pricesmart, which is
located in Chaguanas or form local producers in Paramin. Meats will be
purchased either from local suppliers is Gasparillo or San Juan. Packaging can
be purchased by Prink a Pak or Packaging Centre Ltd, both are located in
Trinidad.
Price range and availability
Item
Meat
Vegetables
Seasoning
Packaging

Price
Availability
$200 - $400 (per case)
High
$100 - $400 (per crate)
Moderate
$50 - $120 (per bottle)
High
$1500 - $2500 (per order)
High
Table 1. Price range and availability of items.

Risk/Challenge associated with providing the service.

One of the major challenges with providing the service would be obtaining the
ingredients required in the quantity needed. This is due to the possibility of there
being shortages within the country. A possible means of over coming this is by
making contracts with suppliers to provide a set amount to be sold solely to Alpha
Meals.
Financial Feasibility
Capital Requirements to launch the business.

The startup capital (CAPEX) was calculated to be $ 1.5 million; of which

$500,000 will be pooled from the savings of the three founders and bank loans
will provide the remaining $1 million. The chart below will illustrate the allocation
of funds for starting the business.

Money Allocation
$1,400,000.00
$1,200,000.00
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
$0.00

Graph. Allocation of money

Estimated Earning for the Business annually for 3 years.
The first four months of 2016 will be spent constructing the building and
preparing it for opening. The following eight months will see the business
generating profit. The break-even point is expected to occur after 15 months from
the business opening.
Yearly cash flow was generated based on averaging 120 sales per day at an
average cost of $35 per meal over the course of the amount of working days in a
year, which is roughly 270. The increased sales in 2018 were assumed to
increase based on the company becoming more popular and being sought out by
more people.

Economic Forecast
Year
2016
2017
2018

Cash In Flow
$ 500,000.00
$1,100,000.00
$1,400,000.00
Net Cash Flow

Cash Out Flow

$1,500,000.00
$600,000.00
$600,000.00

Net Cash Flow

-$1,000,000.00
-$500,000.00
+$300,000.00
$300,000.00