Introduction
Organic food delivery services are becoming more popular as the desire for nutritious and environmentally friendly eating increases. However, to build a new natural food delivery service, Fit Small Business needs to have a well-designed business strategy to help sell its five products/services. With a well-designed business plan, entrepreneurs can increase their chances of success in a highly competitive market. It is essential to have a successful business plan, such as market research, financial projections, and customer retention strategies, to enhance the opportunities for success in a fiercely competitive market.
The main ones are the subscription-based approach, a pay-per-meal, or a hybrid model. A pay-per-meal strategy only costs consumers the meals they purchase (Lee, 2019). Under a subscription model, clients commit to a certain number of meals per week or month and pay a regular charge. Customers may save time and effort by subscribing to this model, which offers them the option of having their meals delivered regularly. On the other hand, a pay-per-meal approach only charges clients for the meals they buy, giving them more freedom and control over their budgets. Customers who value variety in their meals may respond positively to this strategy, but the firm may generate stable income.
A business needs to grow and not stay static in the competitive market. Opportunities for an organic food delivery service to expand include partnerships, acquisitions, affiliations, the launch of complementary goods and services, and the creation of additional service levels and business units (Thakur & Hale, 2022). Partnering with other businesses will help Fit Small Business grow and be highly profitable. One way to expand is by buying up local organic food delivery services.
A subscription-based business may provide consistent income, but it might not suit clients who want more freedom of choice. Partnerships may increase exposure and consumer base, but they also often involve splitting earnings and losing some business control (Yovanno, 2022). Fit Small Business’s selected pricing plan is a hybrid that allows consumers to either subscribe or pay as they go for their meals. The business will form partnerships with other companies in the health and wellness sector to broaden its reach and attract more clients.
Financial Projection of Fit Small Business
Financial projections, including a new organic food delivery service, are critical for any business. A detailed financial forecast for the first six months of 2023 will be created, focusing on two to five products/services to be produced by the company. This projection will be based on a sample sales report template, enabling data collection and comprehensive financial forecast development. This forecast will provide valuable guidance for the business’s decision-making process, ensuring that it remains on track to achieve its goals.
In the first six months of 2023, product/service one will show a steady increase in revenue, with the highest revenue of $18,760 in April and June. With a unit cost of $1.25 in March and a margin of $6, revenue is estimated to be $15,333. The product’s gross profit will be highest in April and June, at $16,080.
Product/service two will show a fluctuating revenue trend, with the highest revenue in April at $26,800 and the highest gross profit at $22,780. Product/service three will have a fluctuating revenue with the highest revenue and gross profit in the first three months of 2023. Product/service four will show a steady fluctuation in revenue, with the highest revenue expected in June at $24,090.
Product/service five will have the highest cost of good service (COGS. It is expected to generate the highest revenue and gross profit, with the highest revenue in the first month, with $48,240 and a gross profit of $44,220, respectively. The highest revenue and gross profit are expected in the first month of 2023 at $114,349 and $101,559.50, respectively.
Customer Retention Plan
Customer retention is crucial to the growth of the organic food delivery business because it increases customer lifetime value, decreases client acquisition costs, and boosts brand loyalty. Loyalty programs, personalized recommendations, and referral programs are three marketing or company approaches for client retention (Hawkins & Hoon, 2019). Loyalty rewards may reward clients for their constant support. For instance, customers could be offered special pricing, free goods, or early access to a new product line.
One example of personalized advice is offering consumers a tailored meal plan based on their dietary restrictions or preferences. It entails sending consumers individualized emails with suggested goods or offering discounts on previously bought things. Customers may be encouraged to bring in new ones by rewarding them for referring their friends to the business. Personalized suggestions and loyalty programs are a promising combination for the Fit Small Business.
Conclusion
In conclusion, this essay emphasizes the need to develop a company strategy that extends the investor base and target market. Market analysis, financial forecasts, client retention tactics, and improvements such as tailored suggestions and loyalty programs were examined. Prioritizing target market demands and periodically assessing the company strategy is critical for long-term success. Entrepreneurs may raise their chances of success in a competitive market by always looking for improved methods. Lastly, suggestions for further study and implementation are presented to position entrepreneurs for success. They include investigating innovative client retention tactics and keeping abreast of industry developments.
References
Hawkins, L., & Hoon, S. (2019). The impact of customer retention strategies and the survival of small service-based businesses. SSRN Electronic Journal, 1–24. Web.
Lee, I. (2019). Pricing schemes and profit-maximizing pricing for cloud services. Journal of Revenue and Pricing Management, 112–122. Web.
Yovanno, D. A. (2022). The partnership economy: How modern businesses find new customers, grow revenue, and deliver exceptional experiences. Wiley.