Business Overview
Question:
Discuss about the Business Plan Of The Ground Nut Farm.
With the increasing ramified economic changes, ground nut farm business is growing with the drastic rate. It is observed that the output of the ground nut farm is highly based on the technologies used and implemented strategic plans. In this document, a proper business plan of the ground nut farm has been prepared to identify the potential of the business and possible outcome which entrepreneur could take.
The name of the business Earthen Cosmos delight which will be indulged in ground nut farm which will produce all types of organic products or oilseeds.
The groundnut farm business will be indulged in cultivating the organic food and harvesting all types of seeds which will be edible to clients. This business will be operated by more than 50 members and will be started as private company in its initial business working. Earthen Cosmos delight will exports all type of organic foods, seeds, peanuts and other edible products on domestic and international level.
This ground nut farm will be established as private company in the starting due to the import and expert of seeds, raw material and finished goods. However, with the increasing turnover, the nature of the business will be changed to public company.
Earthen Cosmos delight will be indulged in production of all type of organic foods, seeds, peanuts and other edible products. However, in order to sell these products, Earthen Cosmos delight needs to target retailers and other organization. After that, they will be indulged in selling its products to clients at large. In addition to this, Earthen Cosmos delight could also target direct clients by setting retail chain but it will increase its overall cost of production. In the starting, the main target customers will be retail sellers and brokers.
The main competitive advantage of Earthen Cosmos delight is based on its sowing and harvesting program which is done by using the advance technologies imported from the Japan. This Juki Computerized Sewing Machine HZL-F600 imported from japan will increase the overall production level and quality of the seeds at large. The main competitor would be Mei Heong Yuen who will be giving high completion to Earthen Cosmos delight
Short term Goal
- The main business goal of Earthen Cosmos delight would be increase the production level of organic foods, seeds, peanuts and other edible products and simultaneously maintain the high quality in these produced ground nuts products
- Earthen Cosmos delight wants to cover at least 7% market share in Canada in the ground nuts farm business.
- It wants to keep its business running at breakeven point.
Business Goals – Long term
- It wants to create core competency in the product differentiation and cost leadership style in the agriculture industry.
- By using the advance technologies, it wants to lower down the cost of its ground nut products for the better satisfaction of the clients at large.
- Setting strong brand image on domestic and international level.
|
Strength Newly started business with the high inflow of capital. Use of advance technology, Juki Computerized Sewing Machine HZL-F600 imported from japan will increase the efficiency of the business |
Weakness In the starting, It has to face high legal compliance and license program which will consume lot time of the promoters. Earthen Cosmos delight will have to set up strong corporate governance otherwise it will result to high penalties. |
|
Opportunity In Canada, many organization indulged in ground nut farming are charging high cost for their products. Therefore, by keeping the price of organic foods, seeds, peanuts and other edible products, it could win over the market (Goi, 2015). |
Threats The main threat would be from the companies who have established strong brand image. If Earthen Cosmos Delight fails to upgrade its business with the advance technologies then it may result to failure of business at large. |
The main marketing plan of the Earthen Cosmos Delight will be using the loyalty program approach in which all the newly registered members will be given high discounts and offers. In addition to this, by using the search engine optimization program and cyber communication technologies, it could directly connect with the retail stores. However, in the starting, Earthen Cosmos Delight will sell all of its ground nut products to retail stores on credit basis. This will attract high number of retail sellers in market.
Market Analysis
This above given chart reflects the management structure of the Earthen Cosmos Delight Company. However, more than 20 employees will be indulged in manufacturing the ground nut farms product (Johnston, and Bate, 2013.
In the starting, 20 employees will be hired in the value chain activities. 10 employees will be indulged in cultivation process of the ground, 5 employees will be indulged in harvesting of the ground nuts. In addition to this, 4 employees will be indulged in marketing of the business (Mohd, Idris, and Momani, 2013).
The compensation will be in terms of salary and business owners will be given 10% of the overall turnover for the capital they invest in the business.
Earthen Cosmos Delight will use cyber computing system for the communication and use advance harvesting technologies.
There will be following equipment’s used such as Tractor “Belarus 3022” from Minsk Tractor Works, Unimog with a flail hedge and verge trimmer implement used in agroforestry, A plough in action in South Africa. Notice the soil being turned over and Trailed sprayer for orchards and vineyards
The main agriculture services which Earthen Cosmos Delight will use would be harvesting and cultivation. It will be used to enhance the quality of the ground nut farms (Conway, 2013).
Purchase or Rent – Buildings= $ 5000
Purchase or Rent-Land= $ 7000
Purchase or Rent – Equipment= $ 2000
Utilities= $ 1000
Salaries= $ 10000
Supplies= $ 9000
Marketing and Promotion= $ 4000
Insurance= $ 3000
Projected Revenue:
The projected revenue in the starting year will be $ 1, 00,000 by selling organic foods, seeds, peanuts and other edible products to its retail customers. However, the revenue will be on credit basis. It might increase the overall cost of capital of business (Boshyk, 2016).
In the starting, company will have profit of $ 3000 from its business.
|
Company Name: Earthen Cosmos Delight) |
|||
|
INCOME STATEMENT (PROJECTED) |
|||
|
For the One Year Period Ended: (1st June to 30th May) |
|||
|
REVENUES |
|||
|
Livestock |
0 |
||
|
Crops |
$ 1,00,000.00 |
||
|
TOTAL REVENUE |
$ 1,00,000.00 |
||
|
Gross Profit |
100000 |
||
|
EXPENSES |
|||
|
Advertising |
$ 4,000.00 |
||
|
Benefits (employer paid) |
$ 3,000.00 |
||
|
Chemicals |
$15,000.00 |
||
|
Depreciation expense |
$ 5,000.00 |
||
|
Equipment Lease |
$ 2,000.00 |
||
|
Feeds |
$ 2,000.00 |
||
|
Fertilizer |
$ 5,000.00 |
||
|
Insurance |
$ 5,000.00 |
||
|
Interest |
$ – |
||
|
Maintenance |
$15,000.00 |
||
|
Rent |
$ 1,000.00 |
||
|
Salaries |
$25,000.00 |
||
|
Supplies |
$ 5,000.00 |
||
|
Travel |
|||
|
Utilities |
$ 5,000.00 |
||
|
Total Operating Expenses |
$ 97,000.00 |
$ 5,000.00 |
|
|
NET PROFIT |
$ 3,000.00 |
||
|
Net Before Income Tax |
$ 3,000.00 |
|
Company Name: Earthen Cosmos Delight) |
||
|
Balance Sheet (1st June- 30th May, 2018) |
||
|
ASSETS |
||
|
Current Assets |
||
|
Cash |
$ 5,000.00 |
|
|
Accounts Receivable |
$1,00,000.00 |
|
|
Inventory/supplies |
$ 50,000.00 |
|
|
Prepaid Expenses |
$ 25,000.00 |
|
|
Other Current Assets |
$ 50,000.00 |
|
|
Total Current Assets |
$2,30,000.00 |
|
|
Fixed Assets |
||
|
Land and Buildings |
$ 30,000.00 |
|
|
Fixtures |
$ 5,000.00 |
|
|
Equipment |
$ 15,000.00 |
|
|
Vehicles |
$ 15,000.00 |
|
|
Other Fixed Assets |
$ 30,000.00 |
|
|
Total Fixed Assets. |
$ 95,000.00 |
|
|
Total Assets |
$3,25,000.00 |
|
|
LIABILITIES |
||
|
Current Liabilities |
||
|
Accounts Payable |
$ 50,000.00 |
|
|
Short-term Loans Payable |
$ 20,000.00 |
|
|
Taxes Payable |
$ 15,000.00 |
|
|
Other Current Liabilities |
$ 10,000.00 |
|
|
Total Current Liabilities |
$ 95,000.00 |
|
|
Long-Term Liabilities |
||
|
Mortgage Payable |
$ 10,000.00 |
|
|
Long-term Loans Payable |
$ 20,000.00 |
|
|
Other Long-term Liabilities |
$1,50,000.00 |
|
|
Total Long-term Liabilities |
$1,80,000.00 |
|
|
Total Liabilities |
$2,75,000.00 |
|
|
OWNERS’ EQUITY |
||
|
Capital Investment |
$ 50,000.00 |
|
|
Retained Earnings |
$ – |
|
|
Total Equity |
$ 50,000.00 |
|
|
Total Liabilities and Equity |
$3,25,000.00 |
In the starting, Earthen Cosmos Delight will sell its products on credit basis. However, in the starting, lease, finance and rental land and building will be used to set up new business. $ 50,000 will be included by the promoters to start up new Ground farm business (Fernandes, Ferreira, and Moura, 2016).
References
Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
Conway, J.B., 2013. A course in functional analysis (Vol. 96). Springer Science & Business Media.
Fernandes, C., Ferreira, M. and Moura, F., 2016. PPPs—True Financial Costs and Hidden Returns. Transport Reviews, 36(2), pp.207-227.
Finch, B. 2016. How to write a business plan. Kogan Page Publishers.
Goi, C.L., 2015. Marketing Mix: A review of’P’. The Journal of Internet Banking and Commerce, 2005.
Johnston, R.E. and Bate, J.D., 2013. The power of strategy innovation: a new way of linking creativity and strategic planning to discover great business opportunities. AMACOM Div American Mgmt Assn.
Mohd, W., Idris, S. and Momani, R.A., 2013. Impact of environmental dynamism on marketing strategy comprehensiveness and organizational performance. International Journal of Business and Management, 8(9), p.40.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
