Entrepreneural Business Plan

8/8/2019 Entrepreneural Business Plan

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Company Name:

BUTTERS

LOGO:

SLOGEN:

Life Betters with Butters

Companys Mission:

To combine aggressive strategic marketing with quality products

and services at competitive prices to provide the best insurance

value for consumers.

Companys Vision:

Helping people around the world eat and live better.

Entrepreneurship Page 1 of 21 BUTTERS


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Company Profile:

Form of Business: Partnership

Principals: M. Rahim Ejaz

Fahina Rasool

Imran Khan

Name of Business : BUTTERS

Start Date: 25 Dec, 2010

Business Operation: Full time venture

Monday to Friday

9:00 am to 5:00 pm

Business Description: Provider of a

Substitute to Desi Ghee

Location: Model Town, Block Z

D. G. Khan, PakistanCell: 03336474380

Email: www.butters.org

Business Advisors: Mr. Faran Ibrahim

Chartered Accountant

Mr. Omer Farooq

Marketing Specialist

http://www.butters.org/http://www.butters.org/


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Confidentiality Agreement:

The undersigned reader acknowledges that the information

provided by the principals in this business plan is confidential;

therefore, reader agrees not to disclose the information.

It is acknowledged by reader that information to be furnished in thisbusiness plan is in all respects confidential in nature, other than

information which is in the public domain through other means and

that any disclosure or use of same by reader may cause serious

harm or damage to the business.

Upon request, this document is to be immediately returned to the

legal advisor.

Names of Principals

M. Rahim Ejaz ______________

Fahina Rasool ______________

Imran khan ______________

Date: 25 Dec, 2010



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Executive Summary:

When we talk about the future trends and outlook of the business

then we come to know that still it is untouched section in cooking oil

industry of Pakistan. We are the entrepreneurs and future of this

business is very bright. This industry is covering all the geographic

area and it is of great importance in the GDP.

Our core aim is to provide FMCG products to increase the value of

the customers. We will not distributors in our business because

more intermediaries increase cost and distance to the customer. We

will establish retail outlets to target our customers and make

availability of the products. One head office will be established in

the hometown to deal with the customers and suppliers of thebusiness.

It is a partner form of a business. It has three partners. They all

have equal responsibilities to run operate and investigate the entire

business operations.

We have no share holders. We will meet our financial requirements

from the bank loans. Principals have full authority in the business

and they have full right to investigate, audit and operate the

business in any nature. Management background is very important

in the organizational structure. High profile and high expertise

management personnel are hired to perform the duties and roles in

the business.

Our product is very unique in the market infect this type of product

has been never introduce in the market before. Our product is a



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cooking substance and it is first time that it is in the shape of a

cake. It is easily turned into edible oil

while cooking process. It is unique in nature one cake piece is

enough to fulfill the needs of a family of a one supper.

We are targeting people from all the segments of the market. We

have no differentiated segment to target. We are targeting the

whole market. Our special focus is on the low income people. Thepurchase cycle of our product will be low because one pack will

satisfies more then the expectations to the buyers.

Our product is unique and has no competitor in the market.

However large brands are threats to our company but we have an

edge of uniqueness of our product. Further more our competitor is

in the market for more then 50 years and we are entrepreneurs. Weare introducing low price as compare to our competitor. Our product

nature is totally different from the product nature of our competitor.

The operations of the business will be started from the purchase or

raw material from the suppliers. Our raw material is milk. After

purchasing the raw material from the supplies it is sent to the

production department. When the production process completes

then the product is sent to the packaging section. When the

packaging of the product is completed then inventory is handed

over to the marketing and sales department. They make the

availability of the product to the final customer.

The total finance that is required to start this venture is about 60

million. All the cost of business, assets and operating costs are

included in it. As well as projected income statements and projected



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balance sheet is given in the section of financial plan of this

business plan. 60% resources are managed by the entrepreneursand remaining 40% financial requirements are fulfilled the bank

loans.

Industry Overview:

When we talk about the future trends and outlook of the business

then we come to know that still it is untouched section in cooking oil

industry of Pakistan. We are the entrepreneurs and future of this

business is very bright. This industry is covering all the geographic

area and it is of great importance in the GDP.

Our product is environment friendly is does not harm the cultural

variable anymore. Our product is very flexible in terms of

technology development. When technology changes it would be

easy for us to upgrade our plant and machinery according to the

needs and wants of the market.

Our product is new and unique, so it is very important for us to

patent our brand and product from the patent office in order to save

our product from criminal use and for legal protection.

As we discussed earlier that high potential and high demand exists

in the market but they have no enough buying power to purchase

the product. There is no potential threat to our company because or

product is unique and no competitor lies in the market.



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Our product is FMCG natured and we have no segmented market,

we are targeting the whole market. There is a bright future of theedible oil industry of Pakistan and market is flourishing day by day.

The main barrier in this industry is the non availability of resources

for making the edible oil. Pakistan is importing 65% of raw edible oilin order to make it refined to place it for final consumption for the

target market.

Business Description:

This is a nationwide business. Our core aim is to provide FMCGproducts to increase the value of the customers. We will not

distributors in our business because more intermediaries increase

cost and distance to the customer. We will establish retail outlets to

target our customers and make availability of the products. One

head office will be established in the hometown to deal with the

customers and suppliers of the business. Computers, internet,

facsimiles, printers, office jets are used in the office equipments and

approximately 50 employees will work in he head office to handle

the entire venture.

Product Description:

Our product is very unique in the market infect this type of product

has been never introduce in the market before. Our product is a



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cooking substance and it is first time that it is in the shape of a

cake. It is easily turned into edible oil while cooking process. It isunique in nature one cake piece is enough to fulfill the needs of a

family of a one supper.

We are introducing different sizes in our product in order to enhance

the customer value and satisfaction. The different sizes are to fulfill

the demands of consumer having different income levels.

It will give benefit to the price conscious market. They will easily

purchase their desired product and fulfill their needs and wants. It is

easy to use and risk of loss and wastage is very much reduced.

Our product contained no competitor yet in the market, so it will be

easy for us to position our product in the minds of the customer. Weare trying to make available healthy cooking substance to the low

income people as high income people buy good quality cooking oils

at high price.

Target Market:

We are targeting people from all the segments of the market. We

have no differentiated segment to target. We are targeting the

whole market. Our special focus is on the low income people. The

purchase cycle of our product will be low because one pack will

satisfies more then the expectations to the buyers.

Our product will not affect the life style of the people. Mostly the

house wives will influence to purchase the product because product



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usage is economical, low purchasing cycle and competitive price will

influence and attract the people to buy and use the product.

Competitive Analysis:

Our product is unique and has no competitor in the market.

However large brands are threats to our company but we have an

edge of uniqueness of our product. Further more our competitor is

in the market for more then 50 years

and we are entrepreneurs. We are introducing low price as compare

to our competitor. Our product nature is totally different from the

product nature of our competitor.

The strength of our competitor is its large brand name but we will

compete to its brand. They are using high advertising campaigns as

compared to us.

Production Plan:

Basically BUTTERS is a dairy product which is created by removing

the moisture and the nonfat milk solids contained in butter. It is amilk fat-based dairy product in its purest form. In terms of a

packaged good, BUTTERS is an efficient and economical means of

edible usage.

Butterfat in milk is comprised of various types of fat lipids, each

fraction having its own particular melting point. The main fraction

consists of triglycerides of fatty acids. The melting point for milk fat

is 37.C; butter oil begins to solidify at temperatures of less than



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17.C. Butter oil is commonly stored in 200 kg drums and may be

stored at low temperatures.

Composition

Anhydrous milk fat products are manufactured in two common and

distinct varieties.

There two common techniques are:

1. Anhydrous Milk Fat:

Must contain at least 99.8 percent milk fat and be made from

fresh cream or butter;

No additives (for neutralization of free fatty acids) are

permitted.

2. Anhydrous Butter oil:

Must contain at least 99.8 percent milk fat but can be made

from cream or butter of different ages and must be kept below

17 C to solidify it.

Use of alkali (an additive) to neutralize free fatty acids is

permitted.

Typical composition of BUTTERS

Fat 99.6%

Moisture 0.3%Protein 0.1%



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Note: Anhydrous milk fat or anhydrous butter oil must contain less

than 0.2 percent moisture.

Various Uses

BUTTERS possesses a light yellow color and has a clean bland

taste, free from sour, bitter, rancid, oxidized or other objectionable

flavors. Intense heat treatment is not used in the manufacturing

process. Consequently, butter oil lacks heated butter flavors. In the

dairy products industry, it is used for recombination with skimmed

milk powder to produce liquid milk and other milk products. Lecithin

in butter oil is used to produce instant milk powder. In

baking, butter oil can be sprayed on cracker surfaces to enhance

gloss and appearance. It is also used in the chocolate manufacturing

industry.

The advantages of using BUTTERS are:

Increased puff for pastries and pie shells;

Aroma and flavors enhancement in bakery items;

Control of fat bloom in chocolate candy; and

Ease of melting, pumping and mixing with other food

ingredients.

Functional Properties

Milk fat has many functional properties which makes BUTTERS a

most valuable food ingredient. The most notable are the following:



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Air incorporation

ant staling (through moisture dispersion and retention) creaming

flavors

flavor carrier

gloss

layering

shortening

Milk fat is composed of triglycerides ranging from volatile low-

melting to high-melting fractions. Fractionation of butter oil through

various separation processes is based on different methods of

crystallization of triglycerides at different temperatures. These

fractions have specific functional properties and can be used in

various food products. For example, the high melting fractions may

be used as cocoa butter substitutes or as shortening for specialty

baked

goods such as Danish pastry. Also, the low-melting fractions with a

concentration of flavors, vitamins and pigments could be used for

production of a soft butter, spread able at refrigerator temperatures.

Operational Plan:

The operations of the business will be started from the purchase or

raw material from the suppliers. Our raw material is milk. After

purchasing the raw material from the supplies it is sent to the

production department. When the production process completes

then the product is sent to the packaging section. When thepackaging of the product is completed then inventory is handed



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over to the marketing and sales department. They make the

availability of the product to the final customer.

The suppliers of our company are basically dairy milk farmers. We

have decided to have a contract with them. They will provide us

milk on the daily basis according to needs and requirements. Our

milk collectors will collect

milk from these farmers on time and reach to the production plant

in time in order to run the production and operations.

Organizational Plan:

It is a partner form of a business. It has three partners. They all

have equal responsibilities to run operate and investigate the entire

business operations.


Supplier

CustomerSatisfactio

n

Placement

Packaging

Production

Purchases

Operational Cycle


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We have no share holders. We will meet our financial requirements

from the bank loans. Principals have full authority in the businessand they have full right to investigate, audit and operate the

business in any nature. Management background is very important

in the organizational structure. High profile and high expertise

management personnel are hired to perform the duties and roles in

the business.

We will provide full safety and security to the employees of theorganization. All the facilities will be provided to the employees of

the organization. Health insurances are given to the employees.

Benefits, incentives and target achievement allowances will be

given to the employees of the company.

The environment of the organization will be kept clean and calm in

order to increase the high work efficiency. Especially at plant bestworking environment will be provided to workers to increase their

productivity.

Organizational Structure:



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Marketing Plan:


ChiefExecutive

Officer

ChiefOperating

Officer

ChiefMarketing

Officer

ChiefProduction

Officer

ChiefFinanceOfficer

ManagerSales &

Distribution

PurchasersAssistantsAccountant

s

GeneralManager

Sales

Officers

PrincipalEngineer

Sub

Engineers

Distribution Officer

BusinessAdvisors

QualityController


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Promotion

Our promotional campaign includes advertisements in news papers,

magazines and televisions. Yellow pages, personal selling and bill

boards techniques are also used to create awareness among the

customers; different type of incentives, bonuses will be given to

both customers and distributors in order to enhance the sales of the

product. Sponsorship of different events will be done in order to

promote our brand.

Place

Place plays an important role in the business. Due to the FMCG

nature of our product we use intensive nature of placement of our

product. We will target each and every outlet of the market. We find

dense populated sales points in order to attract more and more

customers. Because dense populated areas are more potential

market for us, it will be more beneficial for us. Commercial and

residential areas will be targeted for the placement of the product.

Price

After assuming the cost occurring on labor, factory overhead and

materials, a reasonable price is determined of a product having a

profit margin low in order to increase the sales. Low price strategy

will be practiced in order to attract the low income customers. This

low price strategy helps to increase the market share of the product.

SWOT Analysis



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Strength:

Business will have longer hours and better prices as compared

to competitors.

Discounts are available for bundle buying.

Expertise in getting new products to the market quickly.

Expertise in providing good customer service.

Online selling could be a competitive edge over similar rivals.

Customization available for individual customers.

Weakness:

New in business as compare to rivals.

Huge capital required to start business as credit is not easily

available from supplier in start.

Marketing expense in the start will be huge, to establish brand

name required lot of advertising.

Opportunity:

It is a business that can be operated throughout the year.

Sector is growing fast in the country.

Threat:

Competition is high and big companies like Dalda and Habib

will easily penetrate in this new market opportunity.

People are more conscious for pricing due to inflation and

going for discounts



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Financial Plan:

Statement of Finance Needed:

(Amount in Million)

Plant and Machinery Rs. 20

Land Rs. 10

Building Rs. 06

Office Equipment Rs. 04

Hiring cost (management & labor) Rs. 05

Start-up Inventory Rs. 05

Sales & Marketing Rs. 07

Research & Development Rs. 03

Total Start-up Finance Needed Rs. 60

Projected Balance Sheet:



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Assets

Cash Rs. 10,000,000

Accounts Receivable Rs. 500,000

Inventory Rs. 100,000

Equipment Rs. 20,000,000

Land & Building Rs. 16,000,000

Furniture Rs. 180,000

Total Assets Rs.46,780,000

Liabilities

Suppliers Payable Rs. 100,000

Accounts Payable Rs. 1,500,000

Notes Payable Rs. 12,500,000

Total Liabilities Rs. 14,100,000

Owners Equity

Draws (Rs. 1,820,000)

Paid in Capital Rs. 26,000,000

Retained Earnings Rs. 8,500,000

Total Owners Equity Rs. 110,818,000

Total Liabilities and Owners Equity Rs. 46,780,000

Projected Income Statement:

Revenues



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Net Sales Rs. 50,000,000

Total Revenues Rs.50,000,000

Expenses

Wages Expense Rs. 1,550,000

Cost of Goods Sold Rs.5,000,000

Utilities Expense Rs. 2,500,000

Supplies expense Rs. 250,000

Total Operating Expenses Rs. 9,300,000

Profit/Loss before Tax Rs.

40,700,000

Profit/Loss after Tax Rs.32,763,500



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Entrepreneural Business Plan

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