Swig is an excellent investment opportunity. Besides, the future company has a strong potential. Its business plan provides a clear business concept, an entering strategy, a management structure, and information on the market need. Moreover, the business plan describes the company’s competitive advantages, provides financial forecasts for investors, and describes an exit strategy.
The business concept is to develop a company that produces non-alcoholic beverages and occupies a niche of healthy, unsweetened, and natural products that is a winning entering strategy for Swig. The company’s primary goal is to promote products in the city of Columbia, S.C. suburbs and small towns within a radius of 25 miles. The company needs to follow particular communication, competitive, production, and sales strategies to reach the aforementioned goal.
The minimum number of staff allows the use of a functional management structure that suggests each management body is specialized in performing specific functions at every administrative level. The popularization of a healthy lifestyle and sports forms a market need and makes people look for alternatives to soda and juice drinks (Kennell, 2015). Since Swig drink has a pleasant taste and contains vitamins and natural ingredients, few other drinks can compete with it. Thus, the main competitive advantages of the business are the drink’s useful properties and the eco-focused packaging that attracts Millennials and demonstrates the company’s social responsibility (Evergreen Packing, 2017). As for finance, significant capital and investments are required to conduct production and marketing. However, the marketing policy is designed in such a way that the initial investment will pay off within the first year. After that, the project will begin to generate an income of $10000-12000 a year and its profits will continue to increase annually. A decrease in the sales of sodas and juices creates favorable conditions for entering the market. This factor makes the investment proposal even more attractive and less risky for investors. The exit strategy may vary depending on the changes in the environment, but the most advantageous option will be the merger of Swig with another company.