FINAL BUSINESS PLAN polished
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Transcript of FINAL BUSINESS PLAN polished
11.0 Executive Summary
21.3 Keys to Success
22.0 Company Summary
22.1 Company Ownership
32.2 Start-up Summary
4Table: Start-up Funding
53.0 Products and Services
54.0 Market Analysis Summary
54.1 Market Segmentation
6Chart: Market Analysis (Pie)
6Table: Market Analysis
74.2 Target Market Segment Strategy
74.3 Service Business Analysis
74.3.1 Competition and Buying Patterns
75.0 Competitive Edge
85.1 Marketing Strategy
85.2 Sales Strategy
85.2.1 Sales Forecast
9Table: Sales Forecast
9Chart: Sales Monthly
10Chart: Sales by Year
106.0 Management Summary
106.1 Personnel Plan
117.0 Financial Plan
117.0 Financial Plan
117.1 Important Assumptions
11Table: General Assumptions
127.2 Break-even Analysis
127.2 Break-even Analysis
12Chart: Break-even Analysis
12Table: Break-even Analysis
137.3 Projected Profit and Loss
137.3 Projected Profit and Loss
13Table: Profit and Loss
14Chart: Profit Monthly
14Chart: Profit Yearly
15Chart: Gross Margin Yearly
167.4 Projected Cash Flow
16Table: Cash Flow
187.5 Projected Balance Sheet
18Table: Balance Sheet
1.0 Executive Summary
Potato Flour Kenya is a potato processing company located in Moi Ndabi, Naivasha County in the republic of Kenya. It can be described as a company in the food processing sector, primarily crushing, drying, milling, packaging and distributing potato powder (flour) .This Company targets the largely untapped organic food sector, so this is its main selling point.
Potato Flour Kenya(PFK) has a mission of supplying quality, organic food that improves health, enhance community development and increases food security in Kenya.Additionally,it has a vision of being the leading processor of quality potato powder and products in Kenya and the larger East African region.
Our choice of Moi Ndabi was informed by the strategic location between Nakuru and Naivasha, as well as the fact that, this area is fertile with good climatic condition for growing of potatoes.
PFK seeks to create a new niche in the food industry, generating sales bymore thanKsh.2, 520,000over the next three years while at the same time, maintaining a gross margin of at least 70%.PFK has a philosophy of "organic is the best" regarding both product and service, PFK will seek establish itself as a purveyor in the sale of potato powder/flour in Kenya, mapping out entire eateries, restaurants, supermarkets, bakery industry and to some extent, the military-with these long shelf product.Indeed, the later is one of our competitive advantage over other perishable, unhealthy, processed foods. This business plan lays out our company concept, philosophy and forecasted financials.PFK hopes to clinch the $10,000 seed money so as to duly launch our business later this year.
1. Attain sales of Ksh.1, 500,000 in the first year.
2. Increase second year sales by 33% and maintain it in the third year.3. Increase production capacity by the third year of business.
PFKis a food company that will holistically be dedicated to providing T quality, organic food that improves health, enhance community development and increases food security in our country.1.3 Keys to Success
Dedication to quality organic product High level customer satisfaction.
Giving back to the community.
Enhancing food security
Empowering the youth
2.0 Company Summary
Potato Flour Kenya (PFK) is a premier potato flour processing company based in Moi Ndabi, Naivasha. It focuses on potato powder making to be used as food additive, ingredient flour in making chapattis, doughnuts, bread rolls, biscuits, baby formula, and juice among a host of other products. Its main raw material shall be potatoes obtained from farmers. It shall use improvised crushers, dryers, sorters and milling machines to process the product.2.1 Company Ownership
PFK is a partnership of youths coming together to form the company. It has the intention of converting to a limited company and later sells shares to other young people in the country. At the moment, it is registered with a group of 5 young people.2.2 Start-up Summary
PFK estimates start-up costs come to Ksh.1000, 000 which is mostly improvised solar dryers, sorters, packaging maching, sealant and sealant. To augment the start-up costs, we shall seek further funding from outside the seed capital. Below are our assumptions shown in Table 1 and Illustration 2?Table: Start-up
Office Supplies 20,000
Design & Construction300,000
Total Start-up Expenses1000,000
Other Current Assets0
Table: Start-up Funding
Start-up Assets/expense to Fund1000,000
Total Funding Required1000,000
Non-cash Assets from Start-up0
Cash Requirements from Start-up840,000
Additional Cash to be Raised160,000
Cash Balance on Starting Date1000,000
Liabilities and Capital
Accounts Payable (Outstanding Bills)0
Other Current Liabilities (interest-free)0
Additional Investment Requirement160,000
Total Planned Investment1,000,000
Loss at Start-up (Start-up Expenses)(1,000,000)
Total Capital and Liabilities1000,000
Total Funding 1,000,000
3.0 Products and Services
PFK will be involved in selling potato powder(flour crushed with peels).This powder will be uniquely packaged into 25g,50g,75g,100g,150g,200g and so on targeting various segments of the market. The product will be used as a food additive(seasoning),ingredient flour mixed with other flours to make chapattis,mandazi,doughnuts,biscuits,cakes,bread rolls, baby formula and juice. PFK will also target the Kenya military that have a special demand for foods with long shelf life. PFK will supply the products to eateries, hotels, supermarkets, retail outlets, wholesalers, direct industries such as bakers as well as home deliveries. Our sales people will offer individualized service for our various clients. Promotions will also be organized on weekends at various joints and offer samples in new markets..
4.0 Market Analysis Summary
Potato Flour Kenya will mainly focus on local markets, with a special bias on restaurants, eateries, retail outlets, wholesale shops, supermarkets as well as bakeries.
4.1 Market Segmentation
PFK has divided its market into four different segments: organic foods enthusiasts, bakers, retailers/wholesalers, mothers weaning babies with formula food and even the military. These groups of people inter-relate when it comes to certain food commodities.Organic foods are beginning to fill up shelves in supermarkets as more and more people seek alternative foods from the fast foods. These organic foods include millet flour, soya flour, cassava flour, amaranthus flour (terere) and so on. Mothers introducing their babies to dry foods would certainly want to make formula food for their babies. Potato powder would come in handy instead of mashing potatoes with boiled bananas.Hoteliers have clients with a fine taste for special meals. They can make do with potato soup gravy with other vegetable soups, served as an appetizer. We are targeting 3-5 star hotels as well as other hotels and eateries.
Bakeries are nowadays sprouting all over major towns. They use wheat flour, cassava flour, and soya flour among others to flavour their cakes, bread rolls, biscuits, cakes doughnuts and so on. Our product will easily find its place among this flour due to its great potato flavour.
Wholesalers, supermarkets and retail outlets are the best stokers of products .Our clients wishing to use the product in their homes will readily find the product in these outlets.
Lastly, word around is that the military are known to stock foods with long shelf life. Our product will find ready market from the military forces. With a contract to supply the army with such a product, PFK will have an enviable business with little or no competition.
Chart: Market Analysis (Pie)
Table: Market Analysis
Year 1 Year 2 Yea 3 Year4 Year 5
Weaning moms15% 250,000 300,000 350,000 400,000 400,000
Organic food enthusiasts10% 200,000 250,000 300,000 350,000 380,000
bakeries20% 250,000 300,000 350,000 400,000 400,000
25% 350,000 400,000 450,000 500,000 500,000