Develop a detailed income statement for your venture for two years (at six month intervals). Explicitly state the assumptions that underlie your financial model.

Income Statement

Please click the link for the most detailed information. The assumptions below are summarized using information from the link above. 

Assumptions:

• Sales Projections: Period is 160 days each, each muffin is being sold for SLL1500, 500 units of each product will be sold per day, products will be sold at the bakery and at kiosks
  • Period 1: 
    • 500 muffins/day in Makeni 
    • Revenue = SLL120,000,000
  • Period 2: 
    • 1,000 muffins/day in Makeni, 500 muffins/day in Freetown Location 1 
    • Revenue = SLL360,000,000
  • Period 3: 
    • 1,200 muffins day in Makeni, 1000 muffins/day in Freetown Location 1,500 muffins/day in Freetown Location 2  
    • Revenue = SLL648,000,000
  • Period 4: 
    • 1,500 muffins/day in Makeni, 1500 muffins/day in Freetown Location 1, 1,000 muffins/day in Freetown Location 2 
    • Revenue = SLL960,000,000
• COGS:
  • Raw materials (ingredients) = SLL156/Unit
    • 500 units of each product will be produced per day = SLL78,000/Day

• Production costs = SLL485/Unit
  • 500 units of each product will be produced per day = SLL242,500/Day
• Helpers’ Wages = SLL5,823,000
  • ~2 Helpers/500 Muffins
• Bakery Specialist Wages = SLL8,734,500
  • 1 additional specialist per location (bakery already has 1, so we will have a total of 2 per location and only have to pay the additional one ourselves)

• Operating Expenses:
  • Supervisor salary per period is SLL38,820,000
  • Supervisor associate salary per period is SLL7,277,031
• EBIT:
  • Corporate tax rate in SL is 30% (https://tradingeconomics.com/sierra-leone/personal-income-tax-rate)

Identify two SPECIFIC funding sources for the design phase of your project and two SPECIFIC funding sources for the dissemination (implementation / distribution / commercialization) phase of your project. For each funding source, explain why this is a good fit for your project, and what SPECIFIC aspect of your project might the funding source support.

Design: 

• Food Systems Vision Prize (Grant of $200,000) if we win. We are currently semi-finalists.
  • FSVP could aid in giving us the initial funding to cover short term expenses necessary to kickstart our venture; bike and fuel for transportation, kiosks for selling our products at market, wages for our initial employees and laborers, food production equipment such as dehydrators, mills, and blenders, and packaging materials. Through the business plan we have created, being able to conduct our fieldwork with having this amount of fundraising will significantly aid in gathering the people and items necessary to make our venture run after our fieldwork.
•  Lehigh University
  • Since we have yet to establish anything concrete in Sierra Leone, part of the design phase funding towards the venture must come from the University and GSIF Malnutrition researchers. Since we do not currently have a food design specialist, it is up to us to understand the needs of Sierra Leoneans and what resources we have to work with over there. For now, we are responsible for translating our research and into experiments with recipes that are affordable, nutritious, and flavorful according to us. Using resources like the internet, we can calculate the nutritional value of our products as well as being able to order supplements that our recipes may require, which can be hard to source during fieldwork and in Sierra Leone in general. GSIF/Personal funds are more expendable than in Sierra Leone, therefore our investment in our design helps mitigate the costs we may incur when trying to implement our ideas in fieldwork and for our employees after we leave.

Dissemination:

•  World Hope International 
  • Through our partnership with World Hope, our overhead costs are significantly reduced because of having the space of Betteh Bakery to work within. Since they cover utility and rent costs, we are able to keep production costs low meanwhile having the added benefit of branding and trust through our partnership. World Hope / Betteh Bakery carry more weight in Makeni than Lehigh might; through the credibility we gain, we are able to work within the established network and trust World Hope has with the community, making it easier to sell and spread word about our products.
•  Lehigh University
  • When we go to Sierra Leone, we will be responsible for bringing ingredients and equipment such as the dehydrator, cooking instruments, and mill to be able to arrive ready to instruct our bakers how to create our recipes. Before our venture begins to sell products, we are responsible for covering the initial costs of goods sold. Additionally, to begin advertising our products beyond just word of mouth, bringing marketing supplies such as stickers will depend on us because it will be difficult to begin spreading awareness of the Newtrition venture without some kind of visual to keep us in the minds of our customers beyond the time they consume our products.

Identify five specific partnerships that you need to forge to advance your project forward with the ultimate goal of positively impacting at least one million people. Describe exactly how that partnership might help you achieve scale and why that entity might be willing to work with you.

1. Mothers and parents of children in Sierra Leone: if we receive support from the community, they will keep us in business. Without them, there is no purpose to our project. They are the consumers. They can help in marketing our products through Word-of-Mouth and social media apps like Whatsapp, and they might be willing to work with us because our goal is to help them and the rest of their community. We want to establish an overall improved well-being in their health. 
2. People in the community who have some experience or potential in running a social enterprise. We have to create partnerships with people who are willing to bring our venture further and run the management operations. Newtrition is a legally structured, social enterprise that will need a team of people to manage central operations after Lehigh exits their role in the project. Having this team of people will advance the project further because they will help expand the project and create more opportunities for children with malnutrition to access our products 
3. People in the community who are willing to work to bake our food products, people who are looking for jobs. Although our venture is not focused on creating new jobs for people in Sierra Leone, one of our goals is to make connections with people who can work to produce food products. This is important because we need a mass population to be involved in production to be able to make a higher production of food. A larger production is important because as our venture grows and word of mouth spreads, we will have more mothers and families who will want to purchase our products, and we have to keep up with demand and increase production to get our products to everyone
4. We need to make connections with people who are willing to participate in our venture and are data personnel. These people are important for our venture because they can work with the health departments in Sierra Leone and obtain data about malnutrition. We need this data because it will help us see if our venture is actually making progress and an impact on malnutrition. We can also use this data to identify which cities or areas of Sierra Leone are still undergoing severe malnutrition. Identifying these areas will help us target those villages so we can provide our products to those who really our products to ward off malnutrition
5. We need to maintain our partnership with Betteh Bakery. We are using their bakeries to use their materials to make our products, so the people we hire in charge of making our foods can use their facilities. Our partnership with Betta bakery is important because without them, we would not have the materials for food product production. Our partnership with them is a foundation of our venture, and the use of their materials will allow our venture to continue food production that will help millions of people access our products through sales