Section 1

Team 6

Spring 2023

Business Plan

Business Name: EcoCrunch

Business Idea: Sustainably Sourced Fruit and Veggie Chips

Our mission at EcoCrunch is to provide delicious, sustainably sourced snacks that promote a
healthy planet and people. We believe in using eco-friendly practices at every step of
production and providing our customers with high-quality, ethically produced products with
environmentally conscious packaging. We will purchase produce from suppliers that would
typically be rejected by traditional grocery stores—not because it is unfit for consumption
but because it is visually unappealing—and manufacture both sweet and savory fruit and
veggie chips from said produce.

Team Members Email Address

Iman Abuel Hawa Iman Abuel Hawa abuelhis@dukes.jmu.edu

Hayden Bako Hayden Bako bakohn@dukes.jmu.edu

Sean Bonner Sean Bonner bonnersp@dukes.jmu.edu

Casey Callinan Casey Callinan callincn@dukes.jmu.edu

Connor Duncan Connor Duncan duncancd@dukes.jmu.edu

Amy Freeze Amy Freeze freezeac@dukes.jmu.edu

Christopher Paternostro Christopher Paternostro paternce@dukes.jmu.edu

 Executive Summary

EcoCrunch
Section 1, Team 6
4450 N Brawley Ave, Fresno, CA, 93722
Phone: (209)123-9876
E-mail: ecocrunch23@gmail.com

Management: General Manager, Operations Business Description: EcoCrunch is a B-Corp

Manager, Research & Development Director, that takes fruits and vegetables that are
HR Associates, Marketing Coordinator rejected from grocery stores strictly because
they are not cosmetically appealing and
Industry: 311919 Other Snack Food processes them into snack chips.
Manufacturing
Products: We manufacture 6 oz. bags of apple,
Number of Employees: 23 potato, and sweet potato chips that are baked
instead of fried to promote a healthy lifestyle.
Amount of Financing Sought: We seek a Beyond year 5, we hope to expand our fruit and
$88,340 SBA 7a loan in Year 1, paid back veggie chip assortment as our business grows.
over 5 years at 7.25%. From an angel
investor we will need $1,183,227 – half in Competitive Advantage: As we are
debt and half in equity. purchasing “imperfect” fruits and vegetables,
we will be able to acquire our produce at a
Investment Sources: Each founder will lower cost than our competitors, and consumers
invest $150,000 for a total of $1,050,000. will feel confident in themselves, knowing their
Our SBA loan will be secured from Zion Bank, purchase is ethical and sustainable.
and our angel investment is coming from
Valor Equity Partners. Markets: Our target market is 28,188,000
strong and comprises young professionals with
Use of Funds: Funds will be used to no kids and eco-friendly, highly educated
purchase all machinery and cover all Year 1 parents. Both segments pursue healthy
operating expenses, to include training all lifestyles and are chip consumers. EcoCrunch’s
employees. market share for Years 1-5 is 0.08%, 0.18%,
0.32%, 0.52%, and 0.82%, respectively.
Product selling price: $7.99

Distribution Channels: In Years 1 and 2, we will focus on selling directly to consumers

through our company website to gain traction in the chip market primarily dominated by
well-established companies such as Lays. For Years 3 and beyond, we plan to sell to Target
using a wholesaler and other retailers such as Martin’s.

Competition: Our primary direct competition includes Uglies, a company that creates chips
from “ugly” potatoes, and Bare, which produces high-quality fruit chips. Our indirect
competition includes Lays and Pringles because they are two of the most popular standard
snack chip brands.

Financial Projections (Unaudited):

2023 2024 2025 2026 2027

Revenue: $926,628 $4,110,443 $10,067,641 $18,841,283 $32,321,453

EBIT: $(1,283,204) $1,208,470 $5,894,708 $12,407,188 $21,772,408

2
 Narrative

Elevator Pitch: A better world with every crunch. That is not only EcoCrunch’s slogan but

our belief that a choice as small and seemingly insignificant as what you choose to snack on

can profoundly impact the planet. According to a UC Berkeley Economic Review, 10 million

pounds of cosmetically imperfect waste is thrown away annually (BER Staff, 2021). Our

imperfectly perfect chips are healthy, flavorful, and can help chip away at that number – but

only with your support can we have a profound impact.

Product Description: EcoCrunch chips are created from imperfect fruits and vegetables

that would otherwise go to waste. In the first five years, three kinds of chips will be

produced: apple, sweet potato, and potato chips. Apple and sweet potato chips will be

seasoned with light brown sugar, and potato chips will be seasoned with sea salt. As the

business grows, more fruit and vegetable chip options will be added to our product variety.

Competitive Advantage: Our company differs from our competition in two key areas: (1)

our chips are created from imperfect produce, reducing food waste and making our products

more sustainable and (2) we offer both a fruit and multiple veggie chips to choose from with

minimal, clean ingredients in all our products. Leading chip brands in our industry only do

one or the other, with many doing neither. In buying our product, consumers will not only

gain explicit satisfaction from our chip quality and taste, but implicit satisfaction as well

from knowing their purchase supports the reduction of food waste in the U.S. We will

sustain our competitive advantage through the research & development of new fruit and

vegetable chips after year 5.

Value Proposition: The main value customers derive from our product is psychological;

they feel a sense of pride and satisfaction when purchasing our product because through

their purchase, they support a company whose goal is to promote a sustainable planet.

Consumers are also making a healthy snack choice when they choose our products over the

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typical fried potato chip. Add in the delicious nature of our product, and the benefits are at

least threefold.

Business Strategy: Our business strategy is differentiation.

Business Location: We decided to place our business in California because it is one of the

top states for production of agricultural products (USDA, 2023), so our goal to reduce food

waste has the potential to make a greater impact here. Additionally, Californians happen to

be particularly receptive to new trends (Adie, 2022), making it an ideal location to pilot our

brand. Our facility in Fresno is fairly central to California, and all our suppliers are within a

3-hour drive.

Outsourced Functions:

We will be outsourcing our accountant because it is much cheaper to pay an accountant to

perform tasks for our company such as taxes and auditing as needed, in contrast to having

a full-time, salaried Accountant. Outsourcing an accountant costs an average of $3,000 per

month in California, so annually, this will cost our company an average of $36,000 in

contrast to $100,000 which is what we would plan to pay for a full-time accountant were we

to hire one.

Financial Performance:

For our first year of business, we are operating at a net loss. This is mainly due to our

employee costs and our purchases of assets, such as equipment and machinery. However,

in Year 2 we turn a net profit of $1,202,547 that grows to $21,444,560 in Year 5 and likely

to exceed that as we progress into the years beyond. We only have preferred stock to begin

with, but will consider issuing dividends and common stock beyond Year 5 as our growing

profit will allow for generous payments to our shareholders.

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 Exhibit 1: Organizational Chart

EcoCrunch Year 2

Footnotes

1. Manufacturing Associates will run the factory equipment, report any problems that may arise to the
manufacturing supervisor, maintain cleanliness and organization of working area.

2. The HR associates will work on payroll, recruiting, and any HR related conflicts if needed.

3. The Sales & Support Associates will help with customer satisfaction and answer customer
complaints. We are adding one Sales & Support Associate in Year 4 which will bring our total of
Sales & Support Associates up to 6 in Year 5 from the 2 we will have in Year 2.

4. The Information Technology Associate will ensure all our online databases and systems are running
smoothly and assist in correcting any technological errors.

5. We will be outsourcing our accountant work.

6. In Year 4, we will be adding another Manufacturing Associate, making our total of Manufacturing
Associates go from 4 to 5.

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 Exhibit 2: Pay, Mandatory Deductions, Benefits, Knowledge, Skills, Abilities and Motivation
Table for Year 2

Key Product
Manufacturing Knowledge, Skills, and/or How are you going to secure these KSAs and
Positions Abilities Needed verify employee qualifications?
General Relevant work experience as a leader, We will secure these KSAs by holding 2 rounds of
Manager education relating to managing people and unstructured interviews to get to know candidates
knowledge on what it entails to be an better, requiring the candidate fills out a personality
effective leader. Important skills include test, having the candidate submit results for their
critical thinking skills, strategic thinking, Clifton Strengths test, as well as having top candidates
negotiation and conflict management, meet with our board of owners.
communication and interpersonal skills,
compassion, empathy.
Operations Relevant work experience in a We will secure these KSAs by holding 2 rounds of
Manager manufacturing setting, technical knowledge unstructured interviews to get to know candidates
regarding machinery and equipment as well better, requiring the candidate fills out a personality
as processes used, risk analysis and critical test, having the candidate submit results for their
thinking skills, staff management and Clifton Strengths test, as well as having top candidates
interpersonal skills. meet with our board of owners.
Marketing Social media marketing knowledge, We will secure these KSAs by holding 2 rounds of
Coordinator standard marketing knowledge, creativity, unstructured interviews to get to know candidates
strong organization and planning skills. better, requiring the candidate fills out a personality
test, having the candidate submit results for their
Clifton Strengths test, as well as having top candidates
meet with our board of owners.

Motivating Employees
We will increase the salary of each employee by 3.5% at the end of years 1 and 2, and then increase our annual pay
raise to 4-4.5% for years 3 to 5. We decided on these percentage rates because average annual pay raises are 2-3%
and good pay raises are around 4-5%. Our company would still like to encourage employees' dedication and reward
them for their hard work as much as we can, which is why we will offer them a 3.5% raise after the first 2 years. We
figured we could afford higher raises as our company grows, so we will raise employee salaries by 4 or 4.5%
depending on their performance as this is a good raise and we would like to be competitive with other employers and
show our employees just how much we appreciate them. We also will have a suggestion box for employees to offer
any constructive criticism or feedback, as well as show their appreciation for each other so they know their voices are
always valued as an important part of our company and its functions. In addition, we will hold biweekly team bonding
events and activities which may include karaoke or trivia night, happy hour, dinner or lunch together, and more fun
social events for employees to look forward to and to offer our workers a chance to get to know each other on a more
personal level. We believe this will increase their loyalty to our company and improve performance as team chemistry
strengthens.

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 Exhibit 3: Market Segmentation Analysis/Target Market Selection

Segment Segment Growth Segment Description Priority Justification for Targeting

Name Size Projection Level for
of Targeting
Segment
The demographic of this segment consists of middle to Young professionals account for 38% of the total
upper class adults, college-aged and above, who are workforce (USBLS, 2022). These individuals are
willing to spend slightly more for an environmentally employed, able, and most likely to pick products
friendly snack. While we are targeting this segment as based on sustainability and buy from sustainable
a whole, we will be specifically focusing on women brands (Wood, 2022). This segment is quite
(Zhao, et al. 2021). These individuals tend to try and substantial and relatively easy to reach, as they are
11.984 increase their social status by aligning themselves with highly susceptible to internet ads via social media.
million premium labels, organic foods, and expensive products They will, in theory, react positively to our offer
Segment #1: people 0.5% per (Anderer, 2019). They may work remotely at home or because they are always looking for the next best
Young (DPE, year in office. Geographically speaking, we will target this thing, especially if that thing is eco-friendly
Professional 2021) (USBLS, segment across the U.S (mostly within urban areas) 1 (Versace, 2022). Women specifically in this segment
Without Kids (Statistica, 2022) through online sales. This segment is typically active on tend to be eco-friendly, and more likely to purchase
2023) Facebook, Instagram, and TikTok, always looking for "eco-labeled" products (Zhao, et al. 2021). Applying
(Statistica, the next best health-craze to implement in their lives. the same logic to our own product, this segment
2022) If we potentially got an influencer to promote our seems to be the most likely to consume our
product, we would likely reach our target segment sustainable chips. This segment also has more
convincing some to possibly try our product (if not money to spend on food in general, making them a
switch over to it completely). prime target for purchasing our slightly more
expensive product. In turn, this makes it our most
promisingly profitable segment.

This segment includes adults any age from 25-50, who We identified this segment by taking the proportion
are working or busy taking care of kids and are looking of children who grew up with good relationships
for healthy snacks that are quick and convenient. We (NIH, 2014) and multiplying it by the total number
16.204 2.47% per will target the segment but will be specifically focusing of parents in the U.S. (USCB, 2020). This segment
million year on those in this segment that live in urbanized is substantial because while upper- and lower-class
Segment #2: people (Livingston, locations. Perhaps more than other segments, they individuals also purchase "green" products, the
Eco-Friendly (USCB, 2018), gain psychological satisfaction from spending money on middle-class individuals included in this segment
Highly- 2020) (Statista, products that are environmentally sound (Anderer, 2 are generally more likely to purchase "green"
Educated (Statistica, 2021), 2019) because they are not just buying for themselves products (Yan, 2020). We can reach this segment
Parents 2022) (Trading but introducing their kids to a sustainable and healthy by perhaps targeting schools for advertising, as well
(Statistica, Economics, lifestyle. Many parents who practice gentle parenting as social media (primarily Facebook and
2023) 2023) are the same people who live very intentionally, so are Instagram). The mindfulness of our product is
more likely to advocate against unsustainable acts that expected to evoke a positive response from this
people still practice due to instilled behaviors. group, so combining this with the other aspects
discussed, this segment should be significantly
profitable.

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 Exhibit 4: Market Quantification

Year Total Market Market Annual Total Direct Indirect Annual $

Potential (No. Share** purchase Annual Channel Channel Revenue
of frequency Unit Sales Price Price†
Customers)* ***
Year 1 28,188,000 0.08% 5.14 115,973 $7.99 $0.00 $926,628.15
Year 2 56,836,159 0.18% 5.14 514,448 $7.99 $0.00 $4,110,442.97
Year 3 85,954,662 0.32% 5.14 1,423,763 $7.99 $4.31 $10,067,640.63
Year 4 115,553,940 0.52% 5.14 3,062,478 $7.99 $4.31 $18,841,282.67
Year 5 145,644,677 0.82% 5.14 6,175,936 $7.99 $4.31 $32,321,453.36
* We combined the two segments we are going to pursue. Total market potential was calculated for each
subsequent year by adding the projected growth for each segment (0.5% per year for segment 1 and 2.47% for
segment 2). This resulted in annual revenue of $32,321,453 by Year 5, which is feasible given that multiplying our
initial market share of 0.08% by the industry revenue of $48.4 billion produces $38,720,000.

** We determined our initial market share to be 0.08% by taking the potentially attainable market share of 28%
and dividing it by 372, the number of different chip brands available (Taquitos.net, 2023). The 28% takes into
account that it is highly unlikely that we'd be able to tap into the market share of the top 3 chip brands in the U.S. -
- Lays, Ruffles, and Pringles -- that comprise 72% of the market (Statista, 2022). To calculate growth over the
years, we researched the average start-up growth rates and found that it is measured anywhere from 60-120%
(Eqvista, 2022). More specifically, it would be 120% from year 1 to 2, 83% from 2 to 3, and 60% from 3 to 4,
which we then also applied from year 4 to 5. We were unable to find information on a good proxy firm such as
Uglies or Bare, so we relied heavily on the industry research detailed above. The results of our survey indicated a
maximum market share of 1.89%, calculated by multiplying the fraction of people who said they were "extremely
likely" to try our product, 16/65, by the fraction that said they were "extremely likely" to switch to our product,
5/65. However, given that the brands ranked lowest in the top 10 by market share have a 1% market share
(Statista, 2022), we do not believe we'd be able to exceed 1%.

*** To calculate annual purchase frequency, we multiplied the average number of bags of chips eaten in a year --
the monthly average of 3 (Statista, 2022) times 12 -- by 1 divided by the estimated number of different chip
brands eaten by a single consumer: 7 (Love, 2023). So, 3*12*1/7 (1/7 representing the probability that a
consumer includes us in their 7-brand chip rotation) gave an annual purchase frequency of 5.14.

† We want to sell our chips in 6oz bags, so plan to charge $7.99 per bag based on the value-based method (what
our close competitors charge). Our indirect price was based on the average markup that Target, one of our main
intended retailers, implements of 46%; therefore, our indirect price is 54% of our direct price (Retail, 2012). For
the first 2 years, we don't anticipate being able to sell via indirect channels, which is why the price is $0; after that,
we think we will have 75% direct sales and 25% indirect in year 3, 50% each in year 4, and 25% direct and 75%
indirect in year 5 since we assume people are more likely to buy chips in-person in the store.

Year Average Price Total Fixed Costs Unit Variable Cost BEP in Units

2023 $7.99 212,617.02 0.56 26,610.41

2024 $7.99 530,468.50 0.49 66,391.56
2025 $7.07 1,126,188.26 0.67 159,265.23
2026 $6.15 2,003,552.47 0.80 325,659.11
2027 $5.23 3,351,569.54 0.88 640,413.04
Explain any assumptions used in your breakeven analysis: We assumed that we would have 100% direct
sales in Years 1 & 2, then in Year 3 have 75% direct and 25% indirect, 50% each in Year 4, and 25% direct and
75% indirect in Year 5, and used this information to determine average price.

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 Exhibit 5: Positioning/Competitive Analysis

High Sustainability
Attribute 1 High Sustainability
Attribute 1 High variety
Attribute 2

High variety
Attribute 2 High Quality
Attribute 3 High Quality
Attribute 3

Low variety Low Quality Low Quality

EcoCrunch
Uglies
Terra
Low Sustainability Low Sustainability Low variety Bare
Rind

Positioning Statement: EcoCrunch provides environmentally conscious customers with a snack chip that is high quality (organic
certified) and sustainably sourced. Our chips go beyond what competitors offer in variety and commitment to the longevity of our
planet by using imperfect but high-quality produce to create our snacks in order to reduce food waste.

SWOT Analysis: Strengths of our company include our products being made using imperfect produce which will reduce food waste
and support local farmers. We also use recycled materials to create eco-friendly, sustainable packaging. Another strength of ours
would be that our production process is relatively standardized and simple, which will allow us to avoid complications. Weaknesses of
our company are that we would have high capital costs due to the need to purchase manufacturing equipment to produce our
products as well as being limited in our product variety, starting off with just 3 products. Opportunities for our company could be
that the health-conscious population is growing as the population in the United States continues to age. There is also predicted high
revenue growth in the snack industry for the years of 2023 to 2028. Threats to our company are that the sustainable and healthy
snack industry is growing so we would have a lot of competition. There are also snack foods that are more affordable and in times of
economic downfall, people may not be as willing to purchase more expensive snacks and may turn to less sustainable and less
nutritious snack alternatives. In addition, large companies have a large market share in the snack industry which may be difficult to
compete with.

Uglies This competitor focuses on high quality potato chips made from imperfect, blemished potatoes. However, this brand only
focuses on imperfect potatoes, whereas our company incorporates more options.
Customer "Would have been 5 stars except for the price and the (very) few chips that were not okay. Still worth it to me. NOTE:
Review: After second order, I'd make it 4 stars. These bags that I received were not as good as the first ones. Quite a few more
inedible chips this time. But the good ones are still great!" (Verified Uglies Customer, 2022) Another review said "These
bags are worse filled than Lay's; literally 2/3 empty! Such a waste of plastic... this company is certainly undoing all the
food waste good they do with this packaging. The flavor is amazing, though." (Verified Uglies Customer, 2022) Summary:
These are two examples that shows that Uglies may not be as high-quality or high on sustainability as promised.

Terra This competitor focuses on making high-quality organic root vegetable chips. We chose this competitor because this brand
features vegetable chips and aims to make them sustainable by using the whole root. However, they are fried so they are
not as healthy as our product.
Customer "I was so disappointed when these came. Having previously sampled the larger bags I was looking forward to these.
Review: However, even though they said they were in date, they tasted stale and flavorless. the majority of the chips were less
than a half inch in size. Were really just bags of crumbs." (Verified Terra Customer, 2022) Summary: This shows that
while preaching chips of high quality, Terra does not always deliver in terms of appearance and taste.

Bare This competitor focuses on convenience. We chose this competitor because this brand turns certain fruits in to fruit chips.
However, they do not focus on reducing food waste or sustainability. Rather, their main focus is on providing a convenient
way to get fruits into people's diet.
Customer "First things first, one of the bags was ripped open when I first opened the box. Unacceptable. But whatever. Overall, the
Review: chips are not bad. The coconut one is super sweet. The banana one is OK. But the apple one is a bit on the sour side. All
their portions are small. It’s no wonder all the sugar and carb content are low. Personally I feel these bags are a big waste
of plastic". (Verified Bare Customer, 2021) Summary: According to this verified customer Bare's product seems to have
inconsistent flavor and may not be as healthy and sustainable as it is advertised.
Rind This competitor focuses on providing high-quality fruit chips. We chose them because this brand turns fruits into chips
using the whole fruit, including the peel, seeds, etc. with a focus on zero waste. However, they do not focus on using
imperfect produce to create their products.
Customer "Sorry. I was really hoping these chips would be better tasting … I gave them 3 stars because they have value and aren’t
Review: the worst. In fact - the ingredients are amazing. VERY clean. Healthy. If your looking for a snack that won’t cause heart
disease and obesity - these chips are def the way to go. Unfortunately, they are quite bitter. …” (Verified Rind Customer,
2022) Summary: This review exemplifies how though these chips are also a healthy snack option with great ingredients
and nutrients, the quality is not that high as they are not very tasty.

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 Exhibit 6: Marketing Mix
Product/Service Branding
EcoCrunch stands out from its competitors by offering delicious, healthy, and environmentally conscious snacks. EcoCrunch is
committed to reducing long-term food waste by utilizing imperfect produce to create its snacks. Our company promotes
sustainability and helps preserve our planet’s health. We obtain our produce from local, non-GMO farms and use all-natural organic
salt and brown sugar to flavor our products, making our products certified organic. We use elegant, simple colors, such as sage
green, that convey chic sustainability in our packaging and logo to capture our target market (Adobe, 2022). Our slogan, "A better
world with every crunch" encapsulates our mission and values. We believe that each time you enjoy one of our snacks, you are not
only treating yourself to a tasty, nutritious treat, but are contributing to a more sustainable world. EcoCrunch is not just a snack
brand; it’s a movement towards a healthier future.
Pricing
Year 1 Year 2 Year 3 Year 4 Year 5
Key competitor Customer Price $6.79 $6.79 $6.79 $6.79 $6.79 Terra
Key competitor Customer Price $8.49 $8.49 $8.49 $8.49 $8.49 Bare
Our Channel Price $0 $0 $4.31 $4.31 $4.31
Our Retail/Customer Price: $7.99 $7.99 $7.99 $7.99 $7.99
We set our prices based on similar healthy snack companies. Terra and Bare are two of our successful competitors that sell fruit and
veggie chips at a premium. This is why EcoCrunch is certain of our premium price. Additionally, two-thirds of Americans are willing
to pay more for a sustainable product (Sustainable Brands Staff, 2022). The markup for Target was found to be 46% (Retail,
2012), and the markup for C&S Wholesale we estimated to be 30% based on the average wholesale markup for grocery products
(Damen, 2022).
Distribution/Location Strategy
For the first 2 years, we will only be selling our product online through our website. Then, grow to use retailers such as Martins and
Sprouts, as well as use C&S Wholesale to sell and distribute our products to Target. We chose to use Target as a retailer for our
product because many high-income and middle-class consumers shop at Target for groceries and snacks. It also is a retailer that
appeals to both middle-aged and young adults. Beyond Year 5, we plan to expand into Costco, Whole Foods, and CVS.
Promotional Strategy
Year 1 Year 2 Year 3 Year 4 Year 5
Total IMC Budget: $92,663 $411,044 $1,006,764 $1,884,128 $3,232,145

Advertising Exp: 18,533 82,209 201,353 376,826 646,429 20% of Total

Sales Promo Exp: 46,332 205,522 503,382 942,064 1,616,073 50% of Total
PR Exp: 18,533 82,209 201,353 376,826 646,429 20% of Total
Other Promo Exp: 9,266 41,104 100,676 188,413 323,215 10% of Total
Our promotional strategy will involve sending our products to micro-influencers to promote on Instagram and TikTok. We can also
promote our brand via EcoCrunch Twitter, Instagram, and TikTok accounts as well as pay for formal ads on Instagram and
Facebook. We will pay influencers on a per-post basis, ranging from $500-$1000 depending on each influencer’s following size. We
will choose 7-10 micro-influencers who align with our product's mission. Influencers will promote EcoCrunch using an integrated
video format. This includes influencers who promote sustainability posting “what I eat in a day” or “day in the life” videos. They will
mainly be college-aged to reach our younger target market but will also utilize at least 1 male influencer to show our products are
for all. We also will target our older market segment via formal Facebook ads. This will help effectively reach both segments of our
target market and is effective because most people in our target market are on social media. Our key message is that EcoCrunch is
a highly nutritious, tasty, eco-friendly snack. This promotional strategy ties back to our positioning and brand because using micro-
influencers would be great considering we are a new company and have a small market share in the snack food industry. Our
advertising expense will go towards SEO to gain more website traffic, especially for the first two years. Once we get more exposure
and grow, we plan to collaborate with health and wellness brands. This would include sponsoring an influencer trip that another
company hosts or being featured in a photoshoot for an athletic clothing brand. This allows people who shop for sustainable active
wear to be introduced to our brand, as it is becoming more common for people to incorporate more sustainable habits in their life.

# of Salespeople: 3 5 5 6 6
Compensation Method: 60K Salary + $7,500 bonus
We will start with 3 sales and support staff employees who will answer customer satisfaction claims by responding to customers
who contact us and will be available to answer questions we receive via live chat on our website. In addition, they will assist our
marketing associate with reaching out to brands and influencers we are interested in collaborating with for promotional initiatives if
needed. These employees will work remotely but will meet in-person with our marketing associate and/or marketing director when
needed. Our compensation plan incentivizes them because they are paid generously, earning within the average salary range in
California for their position, and receive an annual bonus, which will attract dedicated, efficient sales and support employees.

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 Exhibit 7: Process Map

For each major quality step:

Quality What is How often? How will you ensure quality?
Step measured?
Q1 If the Every hour as A trained individual will visually and
fruit/vegetable well as every physically access the produce, checking
is fit for new shipment of for any irregularities.
consumption produce
Q2 If the final Every hour A trained individual will visually check
product is fit to for brown spots on the chips and
be packaged perform a taste test.

For each critical resource:

Critical Brief Description Unit Cost (in appropriate How
Resource unit) many?
CR1 Machine that cleans, peels and Total: $4,920 4
cuts produce $1,230/unit

CR2 Machine that blanches produce Total: $52,000 5

$10,400/unit
CR3 Machine that dewaters the Total: $3,900 6
produce $650/unit

CR4 An industrial dehydrating oven Total: $88,800 10

$8,880/ unit
CR5 Machine that adds flavor to Total: $11,460 3
chips $3,820

CR6 Machine that packages chips $15,600 1

Briefly describe your main facility.

Our main facility will be located in Fresno, California. The Facility is 14,532 square feet, and in relatively
good condition. It has 2 loading docks and an ample number of parking spaces around the property. It
also comes with 880 square feet of dedicated office space, so office space is included in the rent. The
facility is in great location as well. It's close to Freeway 99 and the Golden State Highway, and it's less
than a twenty-minute drive from Fresno Yosemite International Airport.

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 Exhibit 8: Quality Assurance

Indicate the Why is this dimension important, given your Identify the Quality
Dimensions industry & target market? Step(s) on the Process
of Quality on Flowchart/
which you Service Blueprint to
will focus. which this corresponds.
Aesthetics Given that we are a chip brand, we want our chips to Q2
give off a quality look expected or higher than that of
any other chip brand. In order to achieve this, our chips
will be subject to visual inspections, checking for brown
spots and other visual deformities.
Perceived We want our consumers to know that not only are they Q1
Quality buying a tasty, delicious snack, but they are also
helping achieve a more ecofriendly future. By
purchasing our chips, they are contributing to decreased
food waste and sustainability practices.
Consistency It is very important that every bag of chips we produce Q1 and Q2
is of the highest quality possible. We want our
customers to know that when they open a bag of
EcoCrunch, they aren’t taking a gamble; they need to
be getting a quality product every single time.

Proactive Quality Assurance Plan: One of our proactive quality assurance measures will be regular
machine maintenance and cleaning, performed by employees daily both before production starts and
once it ends to ensure the machines are cleanly and operate smoothly throughout the workday.
Additionally, machinery will be inspected once a year to verify it is compliant with industry and health
standards. As described in Exhibit 2, employees will be screened before hiring and trained appropriately
afterward, with required training every 6 months to ensure their work is continually up to standard. We
will also ensure that we only use organic, non-GMO produce from suppliers that align with our company
vision. If something changes, we will seek other suppliers.

Reactive Quality Assurance Plan: If we find out that a customer has received a bad bag of chips,
whether they contact us directly or through a customer review, we will try to find out from them what
exactly was wrong and offer to replace the quantity of bags they had an issue with (free of charge to
them). Their complaint(s) will be directed to a Sales and Support Associate, who will compensate the
customer accordingly by either providing them a refund, replacing the product, both, or another form of
compensation depending on the nature and severity of the complaint. All complaints will always be
reported to the Operations manager, who will coordinate with the Manufacturing Supervisor to ensure the
Quality & Control Inspectors are taking all measures to ensure our products are as high of quality as
possible.

If you will utilize a quality/process improvement methodology, indicate which:

☐ NA ☐ TQM ☒ Six Sigma ☐ ISO ☐ Benchmarking
☐ Other (specify what):
We plan to implement the Six Sigma methodology since our process is highly standardized. Having a
highly standardized product manufacturing process enables our company to easily implement the Six
Sigma method to define our issues, measure how our process is performing, analyze what caused any
defects, then improve by making changes and control by making regular adjustments.

12
 Exhibit 9: Inventory, Suppliers and Distribution

RAW MATERIAL INVENTORY & SUPPLIER SELECTION

Item(s) Supplier Name & Reason for selecting this Supplier Frequency of System of Mode(s) of
Location (City, supplier lead time replenishment Management Transportation
State, Country) (in days) (in days)
Apples Cuyama Orchards Differentiation and 3 7 Fixed Order ☒ Highway ☐ Rail
(Arvin, CA, USA) convenience. This supplier Interval ☐ Waterway ☐ Air
grows a variety of apples and
is relatively close to our
warehouse location.
Potatoes Zuckerman Family Convenience and quality. This 3 7 Fixed Order ☒ Highway ☐ Rail
Farms (Stockton, supplier is also relatively close Interval ☐ Waterway ☐ Air
CA, USA) to our warehouse and claims to
grow high-quality produce.
Sweet California Sweet Differentiation. This supplier 3 7 Fixed Order ☒ Highway ☐ Rail
Potatoes Potato Growers also provides a variety of Interval ☐ Waterway ☐ Air
(Livingston, CA, sweet potatoes, increasing the
USA) amount of unwanted produce
we’d be able to save.
Salt San Francisco Salt Convenience. The location of 2 365 Fixed Order ☒ Highway ☐ Rail
Company this supplier allows for cheaper Interval ☐ Waterway ☐ Air
(San Francisco, shipping costs. The bulk price
CA, USA) of their salt also makes it a
good supplier.
Light Brown WEBstaurant Convenience. It is easy to 2 365 Fixed Order ☒ Highway ☐ Rail
Sugar Store (Dayton, order a bulk amount of brown Interval ☐ Waterway ☐ Air
NV, USA) sugar for our chip production.

FINISHED GOODS INVENTORY

Finished goods Frequency of Average level of Finished Amount of safety stock
produced shipping finished goods inventory on site on site
(per hour) goods
At the end of Year 1 115 + (5% safety Once a week 121 x 8 hrs = 968 bags/day x 3 (968 x 125).05 = 6,050
stock) = 121 bags = avg of 2,904 bags on site bags per year
At the end of Year 2 259 + (5% safety Once a week 272 x 8 hrs = 2,176 bags/day x 3 (2,176 x 249).05 = 27,091
stock) = 272 bags = avg of 6,528 bags on site bags per year
At the end of Year 3 715 + (5% safety Once a week 715 x 8 hrs = 5,720 bags/day x 3 (5,720 x 249).05 = 74,800
stock) = 751 bags = avg of 17,160 bags on site bags per year
At the end of Year 4 1,538 + (5% safety Once a week 1,615 x 8 hrs = 12,920 bags/day (12,920 x 249).05 =
stock) = 1,615 bags x 3 = avg of 38,760 bags on site 160,854 bags per year
At the end of Year 5 3101 + (2% safety Once a week 3,163 x 8 hrs = 25,304 bags/day (25,304 x 249).02 =
stock) = 3,163 bags x 3 = avg of 75,912 bags on site 123,544 bags per year

What is the lifespan of your ☐NA Finished goods have a lifespan of 12-15 months (Bare Snacks, 2023).
finished goods inventory?

How will you manage ☐NA Finished products will be properly stored in a cool, dry area so they last as long as possible. If
perishability of Finished they cannot be sold before their effective lifespan, then those products will not be sold, and
Goods Inventory? will be disposed of.

DISTRIBUTION
Name of transportation Reason(s) for selecting this provider/carrier Frequency of Pick Up
provider/carrier / Drop off
Buffalo Market This transportation provider is local to California and has national reach. Weekly
This distributor delivers to both major and minor retailers/wholesalers.
They are also known for being “one of the most efficient, transparent,
and brand-friendly food distributors on the market.” Buffalo Market also
works with major retailers such as Walmart, Costco, Whole Foods, and
Safeway, so we are confident in the company's abilities.
USPS USPS is one of the most reliable shipping service providers and has a Weekly/as ordered
variety of options to accommodate customers’ varying levels of patience
to receive their packages. We will use USPS for our direct channel
orders that we receive online because it is a well-established company
that we know we can depend on to guarantee all our orders are shipped
in a timely manner.

13
 Exhibit 10: Capacity & Resources

Demand Capacity Utilization Hours of Bottleneck name How will you manage
(per (per (%) Operation and description /adjust the bottleneck to
hour) hour) ensure you can
appropriately serve or
supply your customers?
At the 121 3,525 3.4% 8 hrs a dayBlanching: This is No adjustments necessary at
end of (9-5) where our produce this point.
Year 1 is blanched so that
it can last longer.
At the 272 3,525 7.7% 8 hrs a day Blanching: This is No adjustments necessary at
end of (9-5) where our produce this point.
Year 2 is blanched so that
it can last longer.
At the 751 3,525 21.3% 8 hrs a day Blanching: This is No adjustments necessary at
end of (9-5) where our produce this point.
Year 3 is blanched so that
it can last longer.
At the 1,615 3,525 45.8% 8 hrs a day Blanching: This is No adjustments necessary at
end of (9-5) where our produce this point.
Year 4 is blanched so that
it can last longer.
At the 3,163 3,525 89.7% 8 hrs a day Blanching: This is No adjustments necessary at
end of (9-5) where our produce this point.
Year 5 is blanched so that
it can last longer.
Show your calculations for the following parameters at the end of Year 1.

Hours of Demand/month Demand/hour Capacity/month Capacity/hour Utilization

operation/month
125 workdays x 8 115,973 annual 115,973 units/ 3,525 bags/hr x 8 Bottleneck 121/3,525
hr workday = units/ 12 months 125 days = hr = 28,200 x 125 station TPR = = 3.4%
1000/ 12 months = = 9,665 + 2% 928/8 = = 3,525,000/12 = 5,525 bags/hr
96 hrs per month safety stock = 116 + 5% 293,750
9,858 bags/ safety stock = bags/month
month 121 bags/hr

Additional resources (beyond your bottleneck) must be allocated appropriately to support operations.
Identify which resources have a significant impact on capacity at start up and describe why these are
appropriate amounts of resources at start up.
Workforce: We plan on hiring a manufacturing supervisor, who oversees 3 manufacturing associates and 1 quality
control inspector. This will be more than enough manpower to keep up with demand. Raw materials inventory: For
our operation, we are going to acquire a steady flow of produce/flavoring from local farms. We plan on producing
an extra 2-5% of forecasted annual demand to keep as safety stock to account for fluctuations in availability of
the produce we need. Factory: We are going to need time to receive and set up our various machines, so we have
cut our operating days in a year by half. Based on our forecasting and the throughout rate of our bottleneck, we
have plenty of capacity to manufacture our product, even into year 5.
Describe adjustments you will make as resource requirements vary with time. Be specific regarding
which key resources (beyond your bottleneck) will be adjusted, when and how. If you will make
multiple adjustments, explain each.
Our utilization never exceeds 90% within the first 5 years of operation, so there will be no changes required to
operations until beyond year 5.

How will you manage seasonality?

Due to the seasonality and fluctuations in availability of produce, we plan on purchasing as much produce as possible
and storing it in our industrial freezer for use at a later time, when said produce is harder to acquire.
14
 Exhibit 11: EcoCrunch Pro Forma Income Statement

Fiscal Year
2023 2024 2025 2026 2027

Sales Revenue $926,628 $4,110,443 $10,067,641 $18,841,283 $32,321,453

COGS $64,945 $252,080 $953,921 $2,449,982 $5,434,824
Gross Profit $861,683 $3,858,363 $9,113,719 $16,391,300 $26,886,630

Operating Expenses
Salaries and Wages $1,296,000 $1,462,000 $1,522,000 $1,587,000 $1,647,000
Payroll Tax Expenses $74,183 $80,522 $88,678 $95,018 $103,174
Employee Benefits and
Retirement $401,363 $443,175 $469,204 $483,603 $509,632
Advertising and
Promotion Expense $47,585 $107,118 $177,415 $252,456 $351,059
Rent Expense $87,192 $87,192 $87,192 $87,192 $87,192
Research and
Development Expense $27,799 $123,313 $302,029 $565,238 $969,644
Commissions Expense $0 $0 $0 $0 $0
General Insurance
Expense $2,532 $2,532 $2,532 $2,532 $2,532
Travel, Meals, and
Entertainment $46,331 $164,418 $402,706 $753,651 $1,292,858
Website Expense $5,000 $5,000 $5,000 $4,000 $4,000
Licenses $2,736 $2,736 $2,736 $2,736 $2,736
Utilities Expense $31,098 $31,098 $31,098 $31,098 $31,098
Depreciation Expense $25,248 $43,269 $30,901 $22,067 $15,778
Accounting Expense $36,000 $36,000 $36,000 $36,000 $36,000
Other $61,820 $61,520 $61,520 $61,520 $61,520
Total Operating
Expenses $2,144,887 $2,649,893 $3,219,011 $3,984,112 $5,114,222

Earnings Before
Interest and Taxes ($1,283,204) $1,208,470 $5,894,708 $12,407,188 $21,772,408
Interest Expense $6,405 $5,124 $3,843 $2,562 $1,281
Earnings Before Taxes ($1,289,609) $1,203,347 $5,890,865 $12,404,627 $21,771,127
Income Tax Expense $800 $800 $800 $186,069 $326,567
Net Income (Loss) ($1,290,409) $1,202,547 $5,890,065 $12,218,557 $21,444,560

15
 Exhibit 12: EcoCrunch Pro Forma Balance Sheet

As of Fiscal Year
Inception
Date 2023 2024 2025 2026 2027

ASSETS
Current Assets
Cash and Cash Equivalents $2,144,887 $881,826 $1,853,377 $6,870,437 $16,856,657 $33,362,257
Accounts Receivable $0 $17,328 $76,865 $188,265 $352,332 $604,411
Inventory $0 $64,945 $317,024 $1,270,946 $3,720,928 $9,155,752
Total Current Assets $2,144,887 $964,099 $2,247,266 $8,329,648 $20,929,917 $43,122,419

Fixed (Long-Term) Assets

Machinery and Equipment $176,680 $176,680 $176,680 $176,680 $176,680 $176,680
Land $0 $0 $0 $0 $0 $0
Buildings $0 $0 $0 $0 $0 $0
Total Gross Fixed Assets $176,680 $176,680 $176,680 $176,680 $176,680 $176,680
Less: Accumulated
Depreciation $0 ($25,248) ($68,517) ($99,418) ($121,485) ($137,263)
Net Fixed Assets $176,680 $151,432 $108,163 $77,262 $55,195 $39,417
Total Assets $2,321,567 $1,115,531 $2,355,430 $8,406,910 $20,985,112 $43,161,837

LIABILITIES
Current Liabilities
Accounts Payable $0 $16,236 $63,020 $238,480 $612,496 $1,358,706
Accrued Salaries and Wages $0 $49,846 $56,231 $58,538 $61,038 $63,346
Accrued Payroll Taxes and
Benefits $0 $18,290 $20,142 $21,457 $22,255 $23,569
Current Maturity of LT Debt $0 $17,668 $17,668 $17,668 $17,668 $17,668
Total Current Liabilities $0 $102,041 $157,061 $336,144 $713,457 $1,463,290

Long-Term Liabilities
Notes Payable From Bank $88,340 $70,672 $53,004 $35,336 $17,668 $0
Total Liabilities $88,340 $172,713 $210,065 $371,480 $731,125 $1,463,290

STOCKHOLDER'S EQUITY
Common Stock $1,050,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000 $1,050,000
Convertible Debt $591,614 $591,614 $591,614 $591,614 $591,614 $591,614
Preferred Stock $591,614 $591,614 $591,614 $591,614 $591,614 $591,614
Retained Earnings $0 ($1,290,409) ($87,862) $5,802,203 $18,020,760 $39,465,320
Total Stockholders' Equity $2,233,227 $942,819 $2,145,365 $8,035,430 $20,253,987 $41,698,547

Total Liabilities and

Stockholders' Equity $2,321,567 $1,115,531 $2,355,430 $8,406,910 $20,985,112 $43,161,837

16
 Exhibit 13: EcoCrunch Statement of Cash Flows

As of
Fiscal Year
Inception
Date 2023 2024 2025 2026 2027
Cash Flows From (For)
Operations
Net Income $0 ($1,290,409) $1,202,547 $5,890,065 $12,218,557 $21,444,560
Depreciation $0 $25,248 $43,269 $30,901 $22,067 $15,778
Changes in Current Assets
Increase in Accounts
Receivable $0 ($17,328) ($59,537) ($111,400) ($164,067) ($252,079)
Increase in Inventories $0 ($64,945) ($252,080) ($953,921) ($2,449,982) ($5,434,824)

Changes in Current
Liabilities
Increase in Accounts
Payable $0 $16,236 $46,784 $175,460 $374,015 $746,210
Increase in Accrued
Salaries and Wages $0 $49,846 $6,385 $2,308 $2,500 $2,308
Increase in Accrued
Payroll Taxes and Benefits $0 $18,290 $1,852 $1,315 $798 $1,315

Net Cash Flow From

(For) Operating $0 ($1,263,061) $989,219 $5,034,729 $10,003,888 $16,523,267

Cash Flow (For) From

Investing Activities
Fixed Asset Purchases ($176,680) $0 $0 $0 $0 $0
Net Cash Flow (For)
From Investing ($176,680) $0 $0 $0 $0 $0

Cash Flow From (For)

Financing Activities
Issuance of Preferred
Stock $591,614 $0 $0 $0 $0 $0
Convertible Debt $591,614 $0 $0 $0 $0 $0
Issuance of Common
Stock $1,050,000 $0 $0 $0 $0 $0
Long Term Debt -
Long Term Maturity $88,340 ($17,668) ($17,668) ($17,668) ($17,668) ($17,668)
Long Term Debt -
Current Maturity $0 $17,668 $0 $0 $0 $0
Dividends Paid to
Stockholders $0 $0 $0 $0 $0 $0
Net Cash Flows
From (For) Financing $2,321,567 $0 ($17,668) ($17,668) ($17,668) ($17,668)

Net Change in Cash $2,144,887 ($1,263,061) $971,551 $5,017,061 $9,986,220 $16,505,599

Beginning Cash Balance $0 $2,144,887 $881,826 $1,853,377 $6,870,437 $16,856,657

Net Change in Cash $2,144,887 ($1,263,061) $971,551 $5,017,061 $9,986,220 $16,505,599
Ending Cash Balance $2,144,887 $881,826 $1,853,377 $6,870,437 $16,856,657 $33,362,257

17
 Exhibit 14: Financial Statement Notes

Note 1: Accounting methods

Our company uses MACRS lives and rates for depreciation for its fixed assets, namely our
production machines. According to Table B-2, these assets fall under 20.4 “Manufacture of
Other Foods and Kindred Products.” With a MACRS Recovery Period of 7 years, according to
Table A-1 this results in 14.29% depreciation for Year 1, 24.49% in Year 2, 17.49% in Year
3, 12.49% in Year 4, and 8.93% in Year 5 (IRS Publication 946, 2022).

Note 2: Assumptions

The following assumptions were made in the creation of all financial statements:

• Employees are paid every 2 weeks

• There is an income tax rate of 1.5% (California Tax Service Center, 2023)
• 22.44% of sales are made on credit revenue (Bizminer, 2023)
• A/P is 25% of COGS (paid every 90 days)
• Inflation is accounted for in the annually increasing salaries/wages of employees

Note 3: Investment Capital

Our initial start‐up costs are funded with a $88,340 SBA 7a loan from Zions Bank that
requires 7.25% interest per year, and this loan is paid off over five years. Other start‐up
costs include a $1,050,000 total investment from the 7 owners, as well as $1,183,227 from
angel investors, half of which is convertible debt and half which is equity ($591,614 each).

Note 4: Capital Investment

The initial capital investment is $176,680 for our production machinery.

Note 5: Risks
The risks and uncertainties associated with the operations of this company include:
• Risk related to the economy. We anticipate that consumers will be both able and
willing to spend more on a healthy, eco-friendly snack chip. Should there be a
recession, consumers may drop their cares about sustainability and flock to more
affordable chip options – even if they are less healthy.
• Risk related to input and product quality. Because we are creating our product from
reject produce, there is a chance that some of it may not just be cosmetically
unappealing but also unappealing in substance. Appearance does not matter in our
snack chip production, but taste does.
• Risk related to product price, cost to produce, and unit sales. Our chips are priced at
a premium, so that could severely impact our unit sales until our brand becomes
more well-established. The cost of production is not a big concern due to the highly
standardized manufacturing process.
• Risk related to tax rates. There is a risk that regulations on tax rates could be
changed, and if raised would have a negative impact on our net income.

Note 6: Other Expenses

Our “other” expenses include janitorial services, Organic certification, cleaning supplies,
repairs & maintenance, software & technology, and office supplies.

18
 Exhibit 15: EcoCrunch Pro Forma Financial Ratios

Fiscal Year
2023 2024 2025 2026 2027 Industry

Liquidity Ratios
Current Ratio 9.45 14.31 24.78 29.34 29.47 2.23
Quick Ratio 8.81 12.29 21.00 24.12 23.21 1.51
Operating Cycle 371.83 465.86 493.13 561.17 621.72 115.11

Leverage Ratios
Debt/Equity 2.65 0.62 0.34 0.45 0.54 0.77
Times Interest Earned -66.79 62.90 306.79 645.74 1133.16 4.78

Asset Management
Ratios
Inventory Turnover 0.02 0.09 0.33 0.84 1.87 11.19
Receivables Turnover 6.83 6.83 6.83 6.83 6.83 5.49
Fixed Asset Turnover 6.12 38.00 130.30 341.36 819.98 1.23

Profitability Ratios
Gross Profit Margin 92.99% 93.87% 90.52% 87.00% 83.19% 41.70%
Operating Profit Margin -138.48% 29.40% 58.55% 65.85% 67.36% 6.63%
Return on Assets -115.68% 51.05% 70.06% 58.22% 49.68% 5.81%

DuPont Analysis
Net Profit Margin -139% 29% 59% 65% 66% 4.73%
Total Asset Turnover 0.83 1.75 1.20 0.90 0.75 2.46
Equity Multiplier 3.65 1.62 1.34 1.45 1.54 1.77
Return on Equity -422% 83% 94% 84% 76% 82.60%

Business Valuation (Based on Price/Sales Ratio for Industry)

2027
Multiple 0.98
Projected Revenues $32,321,453
Estimated Valuation $31,675,024

19
 Exhibit 16: EcoCrunch Financial Analysis of Pro Forma Financial Statements

Liquidity

Our current ratio is well above the industry average. It grew from 9.45 in year 1 to 29.57 by year 5 as we
added more machines and equipment due to growing demand. Considering that one of our main current
assets is cash, our quick ratio is well above the average. Lastly, our operating cycle is much higher than
ideal in all 5 years, meaning we take longer to turn our product to cash – this could be revisited to ensure
we operate more efficiently.

Financial Leverage

In year 5 our debt-to-equity ratio is 0.54, compared with the industry average of 0.77. Our loan amount
was only $88,340, so that explains why this ratio is a little below the average. Because of our low debt
obligations and therefore low interest payments over the years, our times interest earned ratio is very
inflated compared to the industry average. While this demonstrates that there is a low risk we won’t be
able to pay back our debt, we could also consider leveraging our debt in a more efficient way – taking
more on, for example.

Asset Management

Our inventory turnover ratio in all 5 years is substantially lower than the industry average, meaning we
may have too much excess inventory at any given point. Our receivables turnover is slightly above
average, indicating that our company does well collecting on customer credit payments. As for fixed asset
turnover, ours is extremely high compared to the industry average; this is because we rent the space we
operate in (do not own the land nor building), resulting in low net fixed assets. In the long run, we may
want to consider reducing inventory and eventually purchasing our land and building to make our ratios
more competitive in the industry.

Profitability

EcoCrunch begins year one with a negative return on assets and operating profit magin, which is
unsurprising considering our expenses and asset purchases. However, the ratios turn positive heading into
year two, seeing as that’s when we break even. By year five, all our profitability ratios are far exceeding
the industry averages, indicating a pattern of high steady growth into the foreseeable future. Our ratios
also demonstrate that EcoCrunch can effectively and consistently manage expenses and produce profits.

DuPont Analysis

Our net profit margin varies from year-to-year, ending at 66% in Year 5. This is much higher than the
average, again due to our low interest and tax expenses that impact net income. Total asset turnover is
noticeably lower than the average in all 5 years, this time because of our small amount of fixed assets (as
we rent rather than own our facility). The equity multiplier is fairly consistent from Year 2 to 5 – though
slightly below average – indicating that we are not very reliant on debt for funding. Taken all together, the
significantly above average profit margin with the below average total asset turnover and the on-par
equity multiplier results in a return on equity just 6.6% below average by Year 5. This is promising for
future investors in EcoCrunch.

Valuation Method

The 311919-industry price to sales ratio is 1.66 (Nyu.edu, 2022); the P/S ratio for Utz, a leading chip
company, is just 0.98 (Macrotrends, 2022). Applying the lower latter to our projected revenues, our
business valuation is $31,675,023.90.

20
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32
Meet the Team – Section 1, Team 6

My name is Iman Abuel Hawa, and I am a sophomore Business

Management major concentrating in consulting from Falls
Church, VA. I am the secretary of JMU Give Volunteers, a
member of Women in Business, as well as a member of Food
for Thought and the JMU Investment Club. I recently became a
founding member of the Alpha Lambda Delta Honors Society at
JMU. I also work as a JMU Dining marketing intern. In my free
time, I enjoy working out, practicing Yoga and Pilates,
volunteering, reading, and traveling! I am interested in working
in management consulting upon graduation and eventually
opening my own wellness business.

My name is Hayden Bako, I am a junior CIS major from

Arlington VA. I am a member of Club Track and Field and Club
Brazilian Jiu Jitsu. I was also a frog this year. I enjoy working
out and playing video games with my friends. I am excited to
learn more about the fields within my major and would like to
pursue a career in either cyber security or database
architecture.

My name is Sean Bonner, and I am a Junior Finance major

from Richmond, VA. I transferred to JMU last year after playing
baseball at Eastern Mennonite University. I am a part of the
club baseball team as well as a founder of the JMU Investment
Club. Upon graduation, I am looking to enter the commercial
real estate field.

My name is Casey Callinan, I am a junior marketing major and

economics minor from Charlottesville, VA. I have been an
active member of Tri Sigma and was the on-campus housing
manager during my sophomore year. I am an avid animal lover
and passionate about making the world a more sustainable
place. I am interested in working in marketing consulting after
graduation.

33
My name is Connor Duncan, I am a Junior CIS major from
Goochland, VA. I have been a part of Phi Gamma Delta
Fraternity since my freshman year, and I am currently the Vice
President. I am also a member of the JMU Wrestling Club. In
my free time I like to go to the gym, spend time outdoors,
travel, and hang out with family and friends. After graduation, I
hope to pursue a career in database management or systems
analysts.

My name is Amy Freeze, and I am a junior Accounting major

from Manassas, VA. I am a member of Phi Chi Theta Business
Fraternity at JMU, and I also swim and compete on the JMU
Club Swim team. In my free time I like to play with my dog,
Molly, go hiking with family, or go out with friends. Upon
graduation, I hope to pursue a career in governmental or
corporate accounting.

My name is Christopher Paternostro, and I am a junior Finance

major with a minor in Computer Information Systems and a
concentration in Financial Technology Analytics. On campus,
here at JMU, I am proactive in multiple organizations. I am the
Vice President of Finance for the Interfraternity Council,
Secretary/Executive board member for my fraternity Delta
Sigma Phi, and a member of the Financial Management
Association. My interests include watching sports, following the
stock market, and real estate. After graduation, I am looking to
work in NYC.

34