Braden Michnik

PRODUCT  Certified organic birdseed  Blended for canaries, budgies, and finches  Ingredients: mixture of organic canary seed, millet, sunflower seeds and canola seed

MISSION STATEMENT  For the bird owner who wants their feathered companion to enjoy a healthy and balanced diet, Living Skies Organic Birdseed provides essential nutrients that contribute to a long-lasting life.

TARGET MARKETS  Market Segments  Bird Owners  Bird Watchers  Bird Breeders  Sell to people who want the best for their pet bird

PLACE  Primarily retail through:  Independent pet stores  Supermarket chains  Website

PRICING  Will charge a premium price  Direct to customer  $ % = $9.10  To Retailers  $7.00 – 25% = $5.25  To Wholesale Distribution  $5.25– 25% = $3.94

BUYING LOCAL  Eating local has many benefits beyond the environment  Recognize and reward Saskatchewan farmers

COST BREAKDOWN FOR 2KG BAG Unit Cost Analysis Canary Seed Millet Canola Seed Packaging Direct Materials Direct Labor Overhead Total Unit Cost

FINANCIAL ANALYSIS Year Sales107,358115,076124,779139,468135,192 COGS59,60065,05268,51371,98379,462 Gross Margin48,75850,02466,26668,48585,730 Total Expenses45,07749,33258,36559,13264,935 Income Taxes3,3194,5888,86511,74521,524 Net Income42,77845,04550,31448,63357,952 Dividends00000 Net Cash Flow20,70827,01333,54547,86258,794 NPV$14,990 IRR20.1% ERR14.2%

CRITICAL RISK FACTORS  There are three main critical variables:  raw material expense  selling price (to stores = most critical)  quantity of sales Critical VariablesBase CaseIRR=0% Change Packaging Wages Inflation Internet Selling Price Retail Selling Price Sales Quantity in Retail Sales Quantity Online

CONCLUSION  Business plan shows that the business is a feasible enterprise  The required rate of the return (20%) is achieved  Future challenges for bird seed manufacturers is food pellets.

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