Investment Potential Report for Red River Ventures

 

Introduction

As requested by the Red River Ventures, I hereby submit a report that analyzes the investment potential of the Ready Set Bake Company. This is a company that is based on clear and simple ideas that make cooking enjoyable, and food tasty. The purpose of the report is to recommend the company to be considered for financing. The main source of information is the company’s business plan, which reveals much about its nature, originality, startup costs as well as the generation of revenue. My in-depth research motivated me to recommend this project for financing since it is valid, sustainable and profitable.

Findings

Description of the Project

Ready Set Bake is a baking subscription box service that is web-based. The company is located in Winnipeg, Manitoba and it is dedicated to the delivery of fresh and delicious recipes to the customer doors. The boxes are carefully packaged with pre-measured ingredients. The box also comes along with precise instructions for baking with the aim of ensuring the highest of quality finished product for the customers. Since Ready Set Bake will be a sole proprietorship, it comes along with a low start-up cost due to the business type.

Products and Services

Though the products and services offered by ready set bake are common, the packaging and setting adds an original touch to their services and any subscriber is in for a beautiful surprise. Moreover, the fact that these products are delivered to the consumer’s door may sound attractive to people who find it boring to queue at the supermarkets as well as those who may be working on the negative behavior of impulse buying.

Market

The target market for the start-up is comprised of young adults, especially young women who find delight in cooking. Cooking is an everyday activity that can turn out to be boring especially when it becomes too monotonous. Additionally, in these critical times that are hard to deal with, people rarely find time to cook a good meal,and many opt to buy ready to eat meals at the supermarkets and shops. What ready Set Bake has done is to solve the issue of monotony from cooking and replacing it with fun and discovery. Subscription boxes are effective when it comes to food wastage due to the presence of pre-measured ingredients(Cadorniga, 2019).

Although the owner claims that the target market is young women,men may also be attracted to this option since they too require fresh homemade food that is easy to cook. And since many men do not know how to cook, they must appreciate the idea of a well thought out recipe that comes along with fresh ingredients.

Competition

Ready Set Bake has no competitors of its kind in the country. Being a food industry company, we can only compare it to the many players in the meal-kit industry, as we seek to analyze the competition. In this, case, we can see that there are currently 301 competitors in the land. Meal-kit providers in Canada have been witnessing an increase in revenues over the past years, and many companies have generated millions of dollars in revenue. Grocery stores and restaurants have begun to follow the trend after seeing the probable potential. This trend increases competition since others who witness this success will start to follow the trend(“How big is the global subscription box industry?“, 2019).

By the time many players join the game, Ready Set Bake will have solidified its base,and it will be an established brand that has the majority shares in the market.

Investment Requirements and Returns

It will be easy to start the business since the start-up costs for ready set Bake are minimal. These costs add up to a total of $11,759,and it is estimated that the first year sales may get to the $53,000 mark. It is also projected that the resulting net income is $20,456 and $6,259 for the second and third years respectively, and the returns on investment will definitely be realized by the second year of the company’s activities, and the table below shows detailed evidence.

Conclusion

The Ready Set Bake Company thrives in originality since it presents food to consumers in a way that guarantees freshness, excitement, as well as enjoyment. The idea is attractive to people who might be too lazy to walk or drive to the market, as well as to the active group of people that enjoys trying out new things as they seek to enjoy life. The business is easy to start, returns are guaranteed and there is no doubt about its profitability. The fact that there are no many such like businesses in Canada allows for solid establishment and great results can be realized out of the power of monopoly. There is a ready market for the products and services of Ready Set Bake since many will take it as a way of adding quality to life.

The idea is lovable, doable, realistic, and fantastic. As outlined in this paper, there are more than enough reasons for embracing it since all the projections pertaining to this business are most likely to be realized.