Business Plan Sample

Power Point Presentation of the Business Overview

The Company was incorporated in Ghana under the Company’s Code 1963 (Act 179) as a limited liability company on the 10th March, 2011 to deal in the purchasing of cocoa.

The Company was to commence business on the 11th March, 2011 but requires the final license to participate in the internal marketing of cocoa in Ghana. This Presentation therefore is the company’s business plan/feasibility which sets out the state of preparedness to participate in the internal market of cocoa.

Global Buyers Limited seeks to participate in the internal marketing of cocoa with an initial purchase of 3,000 tonnes and gradually increase to 15,188 tonnes in the fifth year.

In order to achieve this feat, the company will operate efficiently and effectively in order to gain a reasonable share of the internal cocoa market.

Also, qualified human resources with excellent public relations will be employed to facilitate the objective of capturing a sizeable share of the market.

The company will also offer attractive incentive packages such as supply of agrochemicals on credit to motivate cocoa farmers sell their cocoa to the company.

Organisational Structure

GLOBAL BUYERS LIMITED

ORGANIZATION STRUCTURE

Board of Directors

Managing Director

Finance Manager

Accountant

Accounts Department

Admin. Officer

Secretary

Audit Officer

Operations Manager

Area Mangers

District Mktg Officers

Marketing Clerks

Port Officers

Accounts Officers

MD’s Secretary

The company will be headed by a Managing Director who will report to a Board of Directors.

Two Managers in charge of Purchasing and Operations as well as Finance and Administration will support the Managing Director.


The Operations Manager would be an Economist and the head of the department with at least ten years of relevant working experience in cocoa operations.

He would be assisted by Thirteen (13) District Managers and Three (3) Port Officers.

The Operations Manager will be responsible for Operational planningPurchasing and warehouse planningPrimary and Secondary evacuation planning

Purchasing and Operations Department :


The Finance and Administration Manager shall be a Chartered Accountant

He will be assisted by five personnel with background in accounting.

Their functions include:• Preparation of periodic accounts financial

statements• Protection of Company’s assets• Collection and analysis of performance of the

company• Handling the day-to-day financial needs of the

company• Managing the human resources of the company.

Finance and Administration Department :


MARKETING PLAN

Product Positioning :Global Buyers Limited will deal exclusively in

thoroughly dried cocoa beans Ghana

Cocoa Beans will be purchased directly from farmers and will be bagged in 64kg bag.

The company, in its effort to differentiate its product, all cocoa purchased will be guaranteed good quality.

Farmers will be encouraged to adhere to environmentally sound farming practices.

The company will buy high quality cocoa, exhibit professionalism in its dealings, adhere to business ethics and be reliable to its farmers. Marketing Plan

The marketing strategy will be to pay farmers producer price determined by the Producer Price Review Committee (PPRC) and provide incentives to improve productivity.

Global Buyers Limited would create awareness about its existence through the use of billboards and in the long term create farmer loyalty.

The company will ensure that good quality and thoroughly dried cocoa beans are bought from farmers.

This objective is to position the company among the best buyers of high quality cocoa and create customer awareness regarding services offered as well as developing a solid customer base with farmers.

Strategy :

In terms of pricing the farmers will be paid the PRODUCER PRICE set by the PRODUCER PRICE REVIEW COMMITTEE and announced by COCOBOD.

Purchasing clerks will purchase thoroughly dried cocoa from farmers and ensure prompt payment to the farmers.

There will also be a mixture of advertisements and local networking to attract farmers to sell their produce to our firm.

It is also the philosophy of the firm to make farmers satisfied with their services rendered to them.

Marketing Mix :

Marketing Plan

Consultations have been carried out

during the initial phase of the marketing

development to have an insight into

prospective cocoa farmers and potential

areas for our depots to be established.

These consultations influenced our

decision-making processes.

Marketing Research :

Marketing Plan

Global Buyers Limited, as a way of winning the confidence of its farmers and further improving their livelihoods.

We intend to use part of its profit to provide facilities like :

Educational materials Clinical equipment Bore-holes for portable water in the

communities they operate.

Corporate Social Responsibility :

Marketing Plan

OPERATIONAL STRATEGY

The company’s head office will be in Accra, with an operational office in Kumasi.

The company will however, begin operating in thirteen (13) districts, spanning four (4) regions in Ashanti, Central, Western North and Western South.

Each district will operate in an average of eleven (11) to twenty-six (26) societies.

The company will also operate three (3) discrepant sheds to handle its discrepant cocoa in the following areas: Tema, Kaase and Takoradi

Areas of Operation :


RegionDistrict

AshantiTepa, Obuasi and New Edubiase

Western North Sefwi Wiawso, Debiso, Juaboso, Bonsu

Nkwanta and Akontombra Western South Dadieso, Enchi and SamreboiCentral

Twifo Praso and Assin Fosu

Areas of Operation Continued :

The company will expand its operations into other regions and districts in later years as indicated below.

Brong Ahafo Region : Goaso, Sankore and Kasapin

Eastern Region : Akim Oda, Nkawkaw and Asamankese. OPERATIONAL STRATEGY

The company will adhere to established regulations in the internal marketing of cocoa.

In view of this, the Akuafo Cheque system will be used to effect payment of cocoa.

In addition, the Company will enter into agreements with its operational bankers to ensure the effective and efficient use of the Akuafo Cheque system.

The Company will ensure that cocoa beans bought are of appropriate quality standard by applying all relevant regulations regarding the quality and condition of the beans.

Mode of Payment for Produce :


The Company will ensure that cocoa purchased are promptly graded and sealed by the Quality Control Division (QCD) of COCOBOD.

Various sizes of sieves will be acquired to enable the easy categorization of cocoa beans purchased into various bean sizes as stipulated by QCD.

Graded cocoa will be quickly moved from the Company’s depots to the appropriate take-over points as may be assigned from time to time.

Any other arrangement put in place to ensure the smooth grading and sealing and subsequent evacuation of cocoa will be strictly adhered to by the Company.

Quality of Cocoa :


The Company will acquire or rent warehouses or sheds in all the areas of operation.

Negotiations have been completed with some landlords of the sheds with cases of commitment fees paid in some cases. We are satisfied that these facilities can guarantee the preservation of the cocoa stored before being evacuated.

The Company in the long-run will build its own sheds in the various districts. It will be ensured that warehousing facilities are adequately disinfested to meet the Quality Control Division (QCD) of COCOBOD’s required standard.

District Managers and Depot keepers have been recruited and currently undergoing field training.

Warehouses and Sheds :


The Company will ensure that cocoa graded and sealed are promptly evacuated to the designated take-over

In this regard services of private hauliers will be used for both primary and secondary evacuation.

The Company will act in accordance with any special evacuation arrangement put in place by the regulators to facilitate the smooth evacuation of cocoa to the take-over centres.

The Company plans to acquire its own vehicles, particularly light trucks for primary evacuation.

Cocoa Evacuation :


The Company will ensure the prompt submission of weekly cocoa purchases returns to COCOBOD and the Company’s bankers.

The Company will put in place a monitoring system to ensure early detection of any malpractices by its staff.

In this regard, weekly reconciliation exercise will be carried out to ensure that actual figures are consistent with the monies paid out to farmers by the Companies marketing clerks.

Submission of Purchases Returns and Monitoring :


The Company, after two years of operation, will expand its operations into some of the distressed / marginal areas to ensure that our operations are extended to all cocoa growing areas.

Distressed / Marginal Areas :


FINANCIAL ANALYSIS

The company intends to be established as a Licensed Buying Company (LBC) in the internal cocoa marketing arrangement.

Seed money in the purchasing of cocoa would have a turn around ratio of 2.2.

The company will borrow 80% of its initial capital requirements from the financial institutions and will increase its return on investment.

Financial Objectives :

FINANCIAL ANALYSIS

REGION 2012/13(Tonnes)

2013/14(Tonnes)

2014/15(Tonnes)

2015/16 (Tonnes)

2016/17(Tonnes)

Ashanti 700

1,050

1,575

2,363

3,544

Central 500

750

1,125

1,688

2,531

Western North

1,000

1,500

2,250

3,375

5,063

Western South

800

1,200

1,800

2,700

4,050

Total 3,000

4,500

6,750

10,125

15,188

5-Year Purchase Forecast:

FINANCIAL ANALYSIS

2012/13 2013/14 2014/15 2015/16 2016/170

1000

2000

3000

4000

5000

6000

AshantiCentralWestern NorthWestern South

The company projects to purchase 3,000 tonnes in our first year of operation

This will gradually increase it to 15,188 tonnes by the end of the fifth year.

Notes on Purchases Forecast:Forecasts from 2012/13 to 2016/17 have been made

on the assumption that there would be 50% increase over the preceding year’s volume of purchase.

The assumed rate of increase is based on the fact that the company would have been growing in terms of financial and logistic resources to permeate more areas of operations.

Projected Purchases :

FINANCIAL ANALYSIS

2012/13

2013/14 2014/15 2015/16 2016/17

Producer Price(GH¢/Tonne)

3,280

3,936

4,330

4,763

5,239

Buyers' Margin(GH¢/Tonne)

343

514

617

740

888

Total Receipts(GH¢)

1,027,6

50

2,312,2

13

4,161,98

3

7,491,56

9

13,484,82

3

Revenues will accrue from margins earned by delivering cocoa to the Cocoa Marketing Company (Gh.) Limited (CMC) and is projected to reach GH¢13,484,823 in 2016/17 from an initial level of GH¢1,027,650 in 2012/13.

Assumptions and Financial Projections :

FINANCIAL ANALYSIS

Some basic assumptions were made in preparing the financial projections. The basic assumptions are as follows:

The Company will purchase 3,000 tonnes of cocoa in the first year of operation.

Capital expenditure will increase by 10% of the net value from year two (2) to year five (5).

Interest on bank overdraft is 24% per annum.

Depreciation rate for all assets is 20% per annum.

Assumptions and Financial Projections :

FINANCIAL ANALYSIS

Logistics Requirements :

ITEM QUANTITIESScales (units)Jute Sacks (bales)Jute Twine (bales)Tarpaulin (units)Gratings (units)Wooden Shovel (units)Sieves (units)

120160 8200400120120

To ensure that the Company’s projected levels of cocoa purchases are met, the following levels of inputs will be acquired initially. However, these levels of inputs will increase as our purchases increase over the years:-

CONCLUSION

It is acknowledged that GLOBAL BUYERS LIMITED is prepared to participate in the Internal Marketing of Cocoa in Ghana during the 2012/13 crop year.

The project is technically and financially feasible and economically viable based on the micro-economic study of the industry.

CONCLUSION :