FINAL BUSINESS PLAN polished

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Transcript of FINAL BUSINESS PLAN polished

Cover Page

11.0 Executive Summary

1Chart: Highlights

21.1 Objectives

21.2 Mission

21.3 Keys to Success

22.0 Company Summary

22.1 Company Ownership

32.2 Start-up Summary

3Table: Start-up

4Table: Start-up Funding

5Chart: Start-up

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

105.3 Milestones

106.0 Management Summary

106.1 Personnel Plan

11Table: Personnel

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

17Chart: Cash

187.5 Projected Balance Sheet

18Table: Balance Sheet

Additional notes

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.

Chart: Highlights

1.1 Objectives

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.

1.2 Mission

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

Start-upKsh.

Requirements

Start-up Expenses

Legal50,000

Office Supplies 20,000

Beginning Inventory450,000

Consultancy20,000

Allowances50,000

Insurance30,000

Land lease30,000

Design & Construction300,000

Advertisement50,000

Total Start-up Expenses1000,000

Start-up Assets

Cash Required1000,000

Start-up Inventory0

Other Current Assets0

Long-term Assets0

Total Assets0

Total Requirements1000,000

Table: Start-up Funding

Start-up Funding

Start-up Assets/expense to Fund1000,000

Total Funding Required1000,000

Assets

Non-cash Assets from Start-up0

Cash Requirements from Start-up840,000

Additional Cash to be Raised160,000

Cash Balance on Starting Date1000,000

Total Assets1,000,000

Liabilities and Capital

Liabilities

Current Borrowing0

Long-term Liabilities0

Accounts Payable (Outstanding Bills)0

Other Current Liabilities (interest-free)0

Total Liabilities0

Capital

Planned Investment

Investor 1840,000

Other0

Additional Investment Requirement160,000

Total Planned Investment1,000,000

Loss at Start-up (Start-up Expenses)(1,000,000)

Total Capital1,000,000

Total Capital and Liabilities1000,000

Total Funding 1,000,000

Chart: Start-up

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

Market Analysis

Year 1 Year 2 Yea 3 Year4 Year 5

Potential CustomersGrowth

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

Wholesalers

25% 350,000 400,000 450,000 500,000 500,000

military 10%200,000250,000300,000300,000360,00