HOW TO WRITE A BUSINESS PROPOSAL AND GET FUNDS FROM ANY WHERE. PART 3.
Here is my sample business plan which I wrote in 2018.
BUSINESS PLAN OF AFRIFOOD BUSINESS AS AT 25/01/2018, IN BUIKWE TOWN.
CONTENTS;
A) EXECUTIVE SUMMARY.
B) BUSINESS OVERVIEW.
C) MARKET AND COMPETITION ANALYSIS.
D) SALES AND MARKETING STRATEGIES.
E) OWNERSHIP AND MANAGEMENT.
F) OPERATIONS PLAN.
G) FINANCIAL PLAN.
H) FUTURE PLAN.
I) CONCLUSION.
A) EXECUTIVE SUMMARY. With an aim of a pure quality products and service of the food crops products with a vision of becoming a leading business of pure food security, disturbing all over the world in order of suring the agriculture industry growth in Africa, this will empower the society, provide life time employment to the people, increase the food crops growth and a stable economic startands. This idea is already formed by Robert Kulaba as the Managing Director and the idea is materializing slowly to a physically form. First am working as a trader of food crops produce from farmers to ready market moving via Buikwe district to Jinja district, Kampala district and Mukono district. On developing the idea I knew that I needed more information about it which I have done and doing, as there is a ready market for food crops products these crops mainly include:
- Maize.
- Cassava.
- Millet.
- Rice.
- Beans. The account of maximum income profit of this business and the people who are trying to do this they haven’t clearly observed this and how to do it. Towards the future, I want it to be the greatest food security business in the world, there is a lot of unemployed in the country and by the near future more people will be employed, the income of this business will be handled by Equity bank for safety and development of the business. I am completely sure that this Idea business is coming to its physical form, in the names of Afrifood.
B) BUSINESS OVERVIEW. The idea of this food crop business which I have named afrifood has grown day by day in my mind since December 2016, looking over the similar business ideas in an opaque view this has encouraged me working hard on the transparent view of this idea. I have done research on this idea and looking at the overall process from food crop growth of the local farmers to the final consumer. Besides growing my own crops on a small scale also there is a great opportunity as local farmers end up growing and selling their unprocessed food crops to the available market due to oversupply of the food crop they sell at a low price on its purchase. After the purchase, food crops are placed in the store for the processing into their corresponding products that is maize grain into maize flour or millet grain into grinded millet flour. Over viewing the all process involved before reaching to the ready market there are four (4) stages involved as follows;
- Purchase of food crops from local farmers this is very cheap and mostly local traders do it.
- and 3. The food crops are placed in the stores of local traders in rural centers and then they are purchase by the urban traders and transported to their stores.
- Finally the food crops are processed into their corresponding products. With this process I leant that at every stage there is an income margin involved during the purchase leading to profits, where I have arranged to control the all process through Afrifood, not leaving one of the process behind in that great income profit margin can incur. The products are as follows of Afrifood business.
a. Maize. The most maize growing districts are Igaga, Mukono, Kapchorwa and Masinde, due to lack of adequate operating machines in these areas maize is farther transported to Kampala where the machines are which is a long distance passing through three(3) stages of traders from farmers to the operating machines in Kampala, hence a great opportunity to Afrifood, being connected to the farmers who sell maize grain cheaply and directly transport to the Afrifood operating station in Buikwe not far from Igaga or Mukono. Maize is proceed into three products namely Super flour 1, Medium flour 2 and then the waste(maize bran) which are sold to livestock farmers as animal feeds.
b. Cassava and Millet. Cassava growing is evenly distributed in Uganda besides millet which is grown mainly in regions Soroti, Tororo, Ntungamo and Amuru. The growth of cassava is evenly distributed hence there is no much need transport in from far districts to the Afrifood processing area hence great income profit margin.
C. Rice. In Uganda, rice is becoming a primary food source for a bigger part of the population and therefore enhancing the sustainability and productivity of rice is becoming a priority. Rice is mainly grown in two areas Kibimba in Bugiri district, Doho in Butaleja district and Olweny in Lira district both upland and the rice grown in swampy areas, in most times machine operate the processing of the rice in tne very growing place.
d. Beans. The districts with the highest production of beans here in Uganda are: Mubende, Mbale, Amuru and Ntungamo. Beans are harvested and transported to the farmer’s homes for primary processing. The primary processing involves using traditional methods (sticks) to remove beans from the pods, followed by winnowing to remove the chuff from the beans. The clean beans are then stored in the farmers’ house where they are purchased by Afrifood to the constructed stores at a ready market.
Groundnuts. Groundnuts can be grown in nearly all parts of Uganda but higher production levels include Tororo, Soroti, Kumi, Kaberamido and Amuria district.
The groundnuts can be processed into several product quality depending on the type of machine being used.
C) MARKET AND COMPETITION ANALYSIS.
- MARKET ANALYSIS. Although I have already observed the ready market, I have still to continue carrying out the research on the market which confirmed to me that they is a high demand of the processed products of these food crops. Here in Uganda there is a large market for these products due to uneven distribution of food crop growing as most of the districts in the country are not good at growing these crops for example in Kampala there is a low growth of cassava compared to Buikwe where the operation of afrifood is, hence high demand of the food crops products in such districts hence already market of the products. According to the main districts of Uganda namely Kampala, Mbale, Jinja, Mukono, Igaga and Mayuge which are all connected to the main road via Buikwe here is easy way of disturbing the products to the various places. The targeted market is as follows;
Retail shops; This is of a great advantage of large sale as the retail customers keep on the demand of various food crops products generally here shop keepers instead keep on waiting for supply from unknown sources by which there is a delay hence afrifood idea.
Schools; This includes Nursery and primary schools, secondary, technical and universities, there is a period where students lack what to feed on not because of income to purchase the foods but because of food insecurity in different places leading to a high demand in return of enough food stock in schools.
Orders; Every day there are several everts that happen mainly functions of individual who end up looking for food crops products to feed the audience, besides that, there are many organizations in the country which need daily food to feed on hence they end up budgeting for food, this will strength and lead to development of afrifood business.
- COMPLETION ANALYSIS. Beside of ready market which I observe by the high demand of food crops products, there are some traders who are trying to involve in these products in deferent ways, in the acknowledge of these called Competitors there is a lot of laziness in them working without aim, visiting on some of grinding station in Mayuge finding out that the management of customers and the process through which food crops prepared is not well organized. The Afrifood is willing to serve in an organized way from farmers to processing to the ready market, taking the advantage of the existing businesses’ mistakes in the following way;
-The Afrifood has a direct connection with farmers to the stage of processing the food crops products to ready market.
-The Afrifood has an organized way of doing things hence taking food crops products great business.
- The Afrifood is centered in Buikwe district which is a Central area of Uganda.
-The Afrifood has connection with agriculture organization like Infotrade ug which provide different food prices in their respective places.
-The Afrifood use latest technology to solve most of the business operations like income flow handling.
-The Managing Director is a well based commercial agriculturit.
-The Afrifood also has a dream of development compared to other competiting businesses. (These reasons makes the difference of the Afrifood business to other businesses)
D) SALES AND MARKETING STRATEGIES.
- SALES.
Without using incurred costs like transportation there is 100% of the profits for example 100kg of Beans can be purchased from Local farmers in Ankle area at Ushs. 120,000($33) and sold in Kampala area at Ushs. 250,000($68) wholesale price, but due to transportation and processing costs the Beans are sold at 65% profits and this can be minimized by increasing on the quantity of the products this reduce both the transportation and processing costs as there is a higher income profit margin.
The sales can be as follows;
Cassava flour: This is well dried (prepared) by farmers and bought by the Afrifood business agents at Ushs. 100,000($27) and the transported and proceed using Afrifood milling machines at a cost of Ushs. 15,000($4) and sold by the Afrifood business at a whole price of Ushs. 160,000($44) leading to a net profit of 45,000($12) -this is for a 100kg of Cassava flour. (this very process continue to each food crops that is Maize, Millet, Rice and Bean, there is no price change of the products of Afrifood business from the existing ones)
- MARKETING STRATEGIES. Apart from visiting a physical targeted market of Shopkeepers, organations, clubs and Schools, In marketing of these food crops products there is a great need to for advertising that is by books and calendars and use of the internet like setting up the websites to inform more about Afrifood products, on additional to this the need of marketing will also be shown by high quality products and services offered by Afrifood business. At any time products of Afrifood bought, the client will be given a business card this will increase the sales.
Thank you for reading, continue to part 4.