Bus 498 Honest Tea

Bryan Blanco

09/12/18

BUS 498        

           Honest Tea

   The business plan showed good points for me to invest in them if I ever had a chance in the time it began as a startup, but with the service and goals it listed, I had some doubt about it. I would not have invested in this firm because of a few reasons towards their company such as their operation, financial startup, and the type of management for this organization. They spoke much about their products that they would produce for their customers and listed ways on why it would be better than their competitors, but never showed any analysis about the operation portion. How would the personnel for this organization be? What types of people would they employ? These were questions that made it risky, especially when there was no mention of legal requirements for this company when they’re about to enter into the food industry. Investors need to know more about the legal information in order to see this as a long-term company in the future without problems from the law. The biggest fault though was their financial plan. If a firm has products they know would flourish in the market, they should be able to give financial statements for the investor to know how they got into business. Honest tea never specified about the expenses or what startup fund they used to be able to survive in the business. Even though it could have been operating, an investor should know the types of expenses and capital resources that are used. Showing projections of how the firm would be in the future and their situation would be great to know as well. Risk of management at this point made this plan a great risk because they solely put their faith in two people which would have caused the downfall of the firm if either of the two named Seth and Barry discontinued with their roles.