This sample business plan will provide you with the ideal guidelines for starting your soap manufacturing business. Use this example to compile your own.
SAFEassure, LLC has designed a new product that provides managers with a quick, easy, and affordable method to effectively monitor employee hand washing. Proper hand washing is the most effective preventative measure available to combat communicable diseases.
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Improper hand washing contributes to more than 130,000 deaths in the U.S. each year through the transfer of communicable diseases in restaurants, day cares and hospitals (more than AIDS and breast cancer combined). Studies have shown that proper hand washing procedures in these environments could cut down the spread of disease by up to 75%. The greatest contributing factor to this problem stems from the inability of supervisors to monitor and control employee hand washing. Existing products offer no effective or affordable solutions for enforcing and ensuring hand washing compliance. Treatment of preventable diseases costs Americans over $95 Billion in direct costs each year.
SAFEassure, LLC is the first producer that answers this problem and provides indisputable proof every time a person washes his or her hands. After washing occurs, the unique dye in our soap remains on the hands and fades to the skin’s natural color in under six minutes. This would allow supervisors to conclusively verify at a glance whether hand washing has taken place. No other product on the market offers such a high level of assurance of sanitation compliance. The product is safe and meets all current FDA regulatory requirements for soap.
Although restaurants and hospitals have tremendous market need for a product such as ours, day cares represent the best opportunity for our initial target market. Day cares are an ideal market because they have a vested interest in reducing disease transfer amongst children, and have adamant support from their clients [parents] to create as clean an environment as possible. As stated by Family Practice News,
“Most day care centres are sophisticated little germ factories, exchanging bacteria and viruses with the shake of a hand or the sharing of a toy. And many of those nasty bugs travel home where they can infect the rest of the family.”
SAFEassure, LLC boasts a strong founding team and experienced board of advisors. Our primary advisor, Jack Soap, brings twenty years of industry experience and networked relationships to accelerate market penetration of the product line. SAFEassure, LLC will outsource the production of its soaps to an existing soap manufacturer. The executive team will first target the Portland Metro area and eventually the greater Northwest using direct sales and existing distributor channels to penetrate the market. Initial capital will be used to test, patent, approve, produce, and market SAFEassure, as well as provide working capital for the first year.
SAFEassure, LLC will follow three concise strategies to achieve our desired growth:
- Exploit first-mover advantage in a highly fragmented market with a unique and differentiated product.
- Develop a strong branding campaign to build awareness, positive perception and sales of our products within our target markets.
- Continue to develop new products to satisfy an ever growing set of markets.
Our mission is to create value for customers and shareholders by continually improving health and reducing preventable illnesses through the use of our soap.
Keys to Success
- A first-mover branding campaign to build awareness of SAFEassure’s products as the standard for ensuring hand washing compliance.
- Patent protection to defend our time-sensitive dye and product concept from competitors.
- Complementary relationships with organisations interested in increasing hand washing compliance.
- Develop a complete prototype which meets regulatory standards by February of Year 1.
- Become the specialty soap of choice for day cares across the Northwest by December Year 2.
- Achieve sales of $5 million by the end of Year 6.
SAFEassure, LLC was founded in Portland, Oregon, and created as a Limited Liability Corporation. SAFEassure, LLC develops and markets soaps utilising time-sensitive dyes promoting sanitary and safe environments to businesses and parents interested in maximising cleanliness. The company will initially be based out of a residential apartment in Portland.
The executive team will retain at least 70% of the equity in the company. Every $2,500 dollars of investment in the company will secure up to 1% equity in the company. Assuming 30% of the company is owned by investors, Devon Nevius will retain 40% ownership, with Kevin Meinert retaining 30%.
Total funding required to get the business started is estimated at $250,000, of which the executive management team – Devon Nevius and Kevin Meinert – will invest $100,000 and $75,000, respectively. An additional $75,000 investment necessary to develop a product and effectively bring SAFEassure’s products to an initially limited geographic region is sought from other investor(s).
The key elements in the start-up plan for the company are:
- Development of a working prototype.
- Funding of working capital requirements and promotional materials for the principal operating activities of the company.
- Gaining patent approval.
- Establish a strong brand image early to position ourselves in the market.
The founders have already developed a rough prototype of the product. Our start-up period includes 5 months of work by an independently-contracted chemist at a local lab who will perfect this design into a finished prototype, with the correct balance of soap and dyes in four colours. The final two months of this start-up period include safety tests per government regulations to assure high quality.
Company Locations and Facilities
The management team of SAFEassure, LLC will initially use a residential apartment in Portland to run operations. In Year 2, we will move to a rented office. Distribution will remain outsourced.
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SAFEassure’s product line provides a unique control level to managers, supervisors and parents alike. We have two basic product lines: CHILDassure, intended for day care facilities, and an antimicrobial-based product for hospitals (HEALTHassure) and restaurants (FOODassure) – the antibacterial products are not yet in development. The various product lines, competitors and future product possibilities for SAFEassure, LLC will be outlined in the following section.
SAFEassure, LLC will produce a line of institutional liquid soaps with a time-sensitive dye blended into the mixture.
The dye reacts with the hands during the lathering process, staining the hands a distinct colour, then fading in under six minutes.
The product will sell for approximately $90/case. (4 gallons/case)
The packaging will be compatible with existing soap dispensers mounted in washing stations and be available in a variety of sizes.
Initially, SAFEassure, LLC will produce products with child care acquirers in mind, utilising the brightest colours possible. This product line, called CHILDassure, will consist of four colours: red, blue, pink and green.
SAFEassure’s products offer a high value alternative to other hand washing compliance products.
They provide an unprecedented level of control, allowing these managers to monitor and follow hand washing frequency and habits of both child-care workers and children. Ultimately this can lower costs for all users, either in a workplace or private environment by reducing the risk of disease outbreaks and/or health code violations.
As the first fading dye hand soap in the market, SAFEassure, LLC will build brand identity, establishing the company as the standard for improving hand washing compliance.
As SAFEassure’s products become more familiar in a workplace environment, the product will begin to produce a pressure on employees, whereby they feel compelled to wash their hands out of a consciousness about the perception of all employees, not just managers. This “peer pressure” effect will further fuel the use of our products and the recognition of the benefits they deliver.
In order to sell our product while creating familiarity and a positive brand image, it will be necessary to develop brochures and literature to emphasise the safety and beneficial attributes of fading dye soap, many of which may not be readily apparent to an interested party. These will be delivered both in person during a sales presentation and by direct mail.
The key to our success is the time-sensitive dye. Once the proper ratio of dye to base soap is isolated, the fragmented nature of the soap industry provides many options for outsourcing production.
Similar to any commodity, economies of scale require the soap to be produced, packaged and distributed in large batches. Initially, the soap base will be purchased in quantities of at least 38,000 gallons for approximately $50,000. Once the relationship with the manufacturer is established, our subsequent purchases will be approximately for $20,000.
These inventory amounts should be sufficient to for SAFEassure, LLC to meet the customer demand. Utilizing his production and distribution knowledge, Rick Brown will use existing established relationships in the industry to help us mix, package and distribute the product line.
The technology of our fading dyes will be pivotal in the success of our company. The interactions between fading dyes and antibacterial or anti-microbial bases suitable for use in restaurants or hospitals are more complicated than the interactions with the glycerin or lotion soaps utilised in the CHILDassure line.
As soon as cash flow permits, projected to be in 2008, SAFEassure, LLC will employ a professional chemist with experience developing dye products to further the research into technological innovations that may produce antibacterial and anti-microbial versions of the soap to address additional markets.
Additional soap products, manufactured to comply with regulatory minimums for strength and effectiveness in their respective target markets will be developed to address restaurants and hospitals. These soaps will be trade marked under the names FOODassure and HEALTHassure, respectively.
Perhaps the most promising future market opportunity for fading dye soap is the retail market. This product line will include soaps using the same or similar dye colours as the day care to encourage children to wash their hands more often at home. This will be a top priority when the company develops the financial resources enough to mount a national advertising campaign and distribution system.
A complete line of fading dye products could potentially be developed, including floor, counter and body cleaning products that use fading dyes to indicate places on a surface that may not have been cleaned.
Related: Free SWOT Analysis Template
4Market Analysis Summary
There is tremendous potential for a product that provides supervisors and parents with the control to monitor and encourage hand washing. Considering the large scope of our potential markets, we feel it is imperative to focus our limited resources on a particular geographic region where we can establish demand for our product. After successful market penetration, we will begin implementation into the restaurant and hospital markets.
SAFEassure’s first product line addresses the day care market. CHILDassure will first be introduced in the Portland, OR area, before sequential expansion to additional day care markets. There are currently 516 day care facilities in the Portland Metro area. After successful implementation in Portland, we will begin expansion into the greater Northwest. There are 3,414 day care facilities in the greater Northwest.
Successful penetration into the day care market will be followed by implementation into the restaurant and hospital markets. There are currently 19,362 restaurants in the Northwest, followed by health care services, which includes 23,108 organisations in the Northwest.
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The Industrial and Institutional soap industry, of which we are a part, is quite fragmented, but contains several well known main competitors: Gojo, Kimberley Clark, Dial, Provon, and SoftSoap, as well as generic brands that provide to distributors like Massco and Sysco. The industry is stable and growing; between 1998 and 2003 it grew by an average of 4% annually. Within the I&I sector there is fierce competition for market share among the existing popular soap offerings, leading to lean profits on soap sales.
Distribution in the soap industry is provided by regional providers. These distribution companies usually serve a large portion of the market based on the respective size of the market, delivering to the organisations monthly or bi-monthly depending on demand and usage patterns.
Food services typically receive deliveries of cleaning products once a month. Hospitals typically have a distribution system that operates on monthly deliveries of large quantities. Restaurants typically have a weekly delivery schedule.
Competition and Buying Patterns
Commercial customers select soap based on the necessary minimum safety regulations for the intended user; restaurant and hospital regulations require anti-bacterial/microbial. Customers will typically select a product based on price, distributor availability, and convenience.
Distributors will deliver a complete order of cleaning and maintenance products to customers. Major competitors sell to a variety of customers, including distributors like Sysco, who receive generic soap from bulk producers, then repackage and deliver it along with other products it sells, utilising the same distribution systems.
Traditional soap producers
Soap is a common and familiar the commodity of necessity to every company. Traditional soaps employ pleasant scents and dyes to encourage hand washing compliance. However there is no way to verify if hand washing has occurred and traditional soaps do little beyond the pleasant scents to encourage hand washing.
The largest current soap producer, Dial Corp, consistently achieves strong sales, and has enjoyed strong market share in the commercial markets. Producing a wide variety of soap products, Dial has maintained 18% in market share over the last decade. The other largest commercial soap providers include Kimberly Clark, Gojo, SoftSoap, Provon and NXT.
Alternative hand washing compliance systems
HyGenius, a product produced by Compliance Control Inc., is a complete hand washing compliance system that is installed (and leased) in businesses like restaurants, hotels, hospitals and receive. The system includes a small control box that controls water temperature, pressure and run time. By systematically controlling these factors, employees can be both trained and monitored in their hand washing frequency and technique. Periodic reports stored on the computer and linked to the Internet can be produced to indicate the number of times per month employees have been washing their hands, and the estimated savings that the system has created through efficient water use.
This system has limited value to business managers because they are expensive to install and lease, and do not necessarily increase employee compliance. They provide managers the ability to track usage, but do not help control day-to-day hand washing compliance individually or immediately.
Hypo-allergenic gloves are the solution provided by some organisations to combat the threat of hand washing non-compliance. To limit the risk of hand contamination, many restaurants and all hospitals require the use of gloves. Although gloves eliminate the risk of direct hand contamination they are not without downfalls:
- Gloves can carry bacteria in-between fingers, and on the glove surface, causing similar cross contamination to that of bare hands.
- Disposable gloves can cost a location upwards of $5,000 each year.
- Gloves can provide a false sense of security, causing employees to substitute gloves in place of proper hand washing.
- Gloves rip and tear.
The soap industry is highly fragmented. There are more than forty different Institutional soap products that compete in the market.
Target Market Segment Strategy
- Our initial day care market will consist of medium to large day care organisations, consisting of twenty or more children. Organisations such as Kindercare and La Petite Academy represent very attractive opportunities for our products.
- Organisations of this type are attractive because they are well managed, successful, health conscious and nationwide. Within these organisations we will target decision level managers with the power to implement use of our product in those locations.
According to a study published in the medical journal, Infectious Diseases in Children, researchers in hand washing recovered fecal coliforms from the hands of one out of every five staff members, citing that more than 33% of day care facilities “had poor hand washing techniques and no policy for hand washing before eating or after playing outside.
In spite of all the studies about the benefits of hand washing, improper or infrequent hand washing continues to be a major factor in the spread of disease in day-cares.”
Hand washing in child care facilities is an ideal initial target market for several additional reasons:
- Child care facilities have rampant illness and germ problems that can be directly reduced through frequent child and worker hand washing.
- Child care facilities have strict, government mandated rules that require frequent hand washing.
- Parents are particularly interested in reducing child illness, making them one of our strongest advocates for the use of CHILDassure in environments they cannot directly monitor.
In a study cited by Family Practice News in 1996, “Scientists had kids wash their hands when they arrived at school, before lunch then again after lunch time, recess and one more time before heading home every single day.” As a result of these ‘scheduled’ wash times, researchers found that “a month later, these kids had 24 percent fewer days off from colds, sniffles and flus and a whopping 51 percent fewer sick days because of gastrointestinal complaints like stomach cramps or diarrhea.”
With nearly 12 million children in child care facilities across the nation there is a clear need for CHILDassure, our first product, that can both encourage and help monitor child and employee hand washing to ensure a safe, clean environment for children.
Additional future target markets also have significant need for fading dye products:
- Hospitals: “In health care, nurses and doctors wash only 30% of the required time between patient contacts and procedures. Each year, an alarming 2,400,000+ nosocomial infections occur in the U.S. alone. They are estimated to directly cause 30,000 deaths and contribute to another 70,000 deaths each year. Nosocomial infections cost over $2,300 per incident and $4.5 billion annually in extended care and treatment.”
- Restaurants: “Food borne illness kills over 10,000 people each year. Over 70% of all outbreaks originate in food service operations and, as many as 40% are the result of poor food service and cross-contamination. Each year over 80 million estimated cases of food poisoning occur in the United States alone. The U.S. spends between $7.6 and $23 billion annually on health care and lost productivity resulting from food borne illness. The average incident costs the food service company over $75,000 and results in significant future sales losses.”
There has been a recent effort by the Food and Drug Association, the Centre for Disease Control, the National Restaurant Organisation, and others to promote education to increase hand washing compliance in target markets.
The focus of these programs is to educate and encourage preventative control measures for children and workers to help reduce diseases and lawsuits. This has led to greater awareness in our target markets about maximizing cleanliness and minimizing preventable illness.
There is an additional trend in both our target markets and industry towards organic based soaps. Organic products have become increasingly associated with safety and health in a variety of different markets. Our completely organic soap is complementary to this growing market trend.
The demand for child day care services will continue to grow. As the labor force participation of women between the ages of 16 and 44 remains high, parents of preschool and school-age children are expected to seek more day care arrangements.
As parents continue to work during weekends, evenings, and late nights, the demand will grow significantly for child day care programs that can provide care during nontraditional hours. School-age children, who generally require child day care only before and after school, increasingly are being cared for in child care centres.
Farm Machinery Manufacturer Sample Business Plan
By using this sample plan you can include important elements in your own farm machinery manufacturer business plan.
Farm Machinery Manufacturer Business Plan
Kouros Brothers Ltd. is an agriculture machinery and implements manufacturer importer and authorized reseller that sells A-Z series of heavy machinery and systems for Potatoes, Vegetables, Cereals, Stubble, and beach cleaning turn key projects and machinery. We have also patented and piloted four innovative machinery and systems the last 6 years for Vegetable and Cereal productions. Is also the sole and exclusive agent and dealer of 10 main agriculture manufacturers in Europe. It has managed to create communication links and to export its series of machinery in Middle East and Syria the last 3 years.
Kouros Brothers Ltd. has an experienced management team with direct knowledge of the industry, extensive research experience, and unique administrative skills. Its team includes Mr. Kouros and Mr Panikos Stella live in Larnaca, Cyprus. Both Owners have compiled an extensive list of customers/potential customers, vendors, and contacts for equipment consignment.
Last week it was announced by the Ministry of Agriculture, Natural Resources and Environment that EU has available 256 million Euro for funding from 65%-80% of all units or producers intending to modernize and use technological advances in order to improve customers’ (Agriculture Producers’) product quality and to be able to export goods into European markets at competitive prices.
We have a good reputation locally, but sales are slow because local farmers cannot buy new equipment every year. With Cyprus’ admission to the EU, this large amount of funding will let farmers buy more and newer equipment. However, the local farmers will only buy equipment they know to be effective; the best way to convince them, in our experience, is to bring a sample of equipment to their fields to demonstrate.
Kouros Brothers Ltd. has good earnings and assets, but we do not have enough cash on hand to buy the wide range of demonstration equipment we need to meet the sales potential created by the upcoming Government funds to our customers. The company intents to employ local individuals and to provide extensive training about its products and services in order to promote its sales. Loyal customers help to expand the company’s business area by word-of-mouth.
We have already identified a list of potential customers and communities that are willing and able to try its new product series. Even more so, the pilot equipments will be used for the upcoming October International fair for Agriculture and Livestock that will take place, at Nicosia, Cyprus. And also, the company plans to participate in the Thesalloniki state Agricultural fair that will take place on the 28th January next. As a sole agent and sales representative for Cyprus, Greece and Syria for some series of Wheat planting systems, the company needs to promote its series of products to all available marketing opportunities.
The company is seeking funding of the amount of £50,000 for the purpose of expanding the business. Expansion plans include the purchase of additional equipments allowing the company to promote and to demonstrate its products and services, and also by hiring additional personnel. This loan will be paid back in 6 years, with principal payments of £5,833/year, at 8.5% interest. This is on top of the existing 10,000 loan, which will be paid back on the same time frame, at roughly £1,666/year.
With this new demonstration equipment, and well-funded customers, our projected revenues for Year 1 are expected to reach £274,200, and up to £400,000 by Year 5.
The Kouros Brothers Ltd. directors believe that, there is a current untapped market opportunity for agriculture machinery because, existing providers of agriculture machinery and implements are too diversified to serve the increasingly specialized needs of the potato segment, by ignoring the crop needs for mechanization of Vegetables, Cereal, wheat and livestock sectors.
The company’s coverage area is constantly increasing, as customers are becoming aware of the company’s presence. European community offers a real business opportunity for such expansion, because now, there are 256 million Euro available for agriculture funding and support by EU agriculture committee, left to the Cyprus Government, to fund the Local Farmers and Agriculture producers for upgrading their production effectiveness and efficiency.
Kouros Brothers Ltd. mission is to become THE exclusive full-service equipment manufacturer and authorized importer, sales, and service company in agriculture machinery and implements in Cyprus and to expand its business to Middle East, with the ability to satisfy all needs of Livestock farmers and Agriculture producers.
Therefore, the company’s strategy is to create a limited geographical niche for itself, where there will be no potential competitors. Kouros Brothers Ltd. aims to offer high-quality agriculture equipments and machinery for crop mechanization of potato, vegetables and wheat crops at a price which is competitive in comparison to other premium-quality commercial machinery manufacturers in the local market.
1.3 Keys to Success
Kouros Brothers Ltd.’s keys to success will include:
- A high level of quality in its product line.
- A-Z equipment mechanization series for Vegetables, Cereals, Potatoes & Livestock.
- Maintaining and growing its referral networks to generate new and repeat sales.
- Significant investments in research and development of machinery with the aim to focus on precisely controlled equipment (Coriander seed, carrot machines etc.).
- Improving efficiencies of operations and to reduce the crop producers operating costs.
- Link with Consulting offices for Agriculture and Scientific support to its Customers.
- The machinery and Systems of Kouros Brothers Ltd. aim to help Cypriot farmers and Agriculture producers to export their products in the European market and to obey all European directives for product quality.
Kouros Brothers Ltd. is a manufacturer of heavy Agriculture equipments and Euro, with one location in industrial Estate area, Larnaca. The company began its operations since 1963 with little capital investment. The company combined 40 years of experience in the Agriculture machinery and Implements field to generate a large customer base, where until recently owned 80% of the local Potato machinery market.
The company is specialized into Potato planting and mechanization. After Cyprus accession into EU the company’s Directors decided to expand their field of products and to diversify into Cereal, vegetables and livestock. Kouros Brothers Ltd. hopes to initially make a successful effort to secure start-up financing to implement a new business opportunity.
2.1 Company Ownership
Kouros Brothers Ltd. is a limited liability company. Mr. Kouros Stella Zither, Mr. Panikos Stella, and Mr. Andreas Stella are the shareholders, owning 66%, 26% and 8% of the share capital, respectively.
2.2 Location & Facilities
The company has one office currently located in Industrial Area, at Our Town. The factory is only 3.5 kilometers from the center of town and is located on the front line of the industrial area. It has a 500 sq. meter showroom and is visible from the main road.
The factory has 3000m2 of shop floor area, where all manufacturing equipments and facilities are located and used for either maintenance or manufacturing of equipments and implements.
The factory facilities are open from 07:00 – 17:00 hours, Monday to Friday. The company does receive after hours calls or on weekends and provides assistance as needed.
2.3 Company History
Kouros Brothers Ltd. was founded in Our Town, Cyprus in 1963, to manufacture and to sell a complete A-Z series of potatoes crop mechanization. The company was formed by the Stella Zither family: Mr. Kouros Stella Zither, Mr. Panikos Stella, and Mr. Andreas Stella.
Kouros Brothers Ltd. has its principal offices and manufacturing unit of 3000 m2 , located at Our Town, Industrial estate area, Cyprus.
We have good earnings and Capital Assets (the value of the land and store), but do not have enough cash on hand to buy new samples of the equipment to demonstrate their effectiveness to farmers.
Products and Services
Kouros Brothers Ltd. is a manufacturer and Authorized dealer of imported Agriculture machinery and implements. The company is a manufacturer of the Potato A-Z mechanization such as Potato Planters, Diggers, Harvesters, Inter row cultivators, Taper Machines and Potato Fork-lift tractor mounted machines, Soil Preparation Machinery and Implements, Cereal Machinery and Implements, Transplanting machinery, Irrigation systems, Vegetable small seed planting machines, Wheat and Barley mechanization, Animal food factory and packing systems and Fire Fighting units designed for Agriculture areas.
Kouros Brothers Ltd. takes pride in having brought several new items for Livestock and Vegetable equipments that were otherwise unknown, such as the manure spreader machines, Cereal mechanization, and soil preparation machines. We also have designed and patented a new vegetable seed planting machine for Coriander, Onions, Beans, peas, broad beans, ground nuts, garlic, etc.
Kouros Brothers Ltd. has obtained the authorization to be a distributor for Beach Cleaning machines (French Patented systems). We are also a sole agent for beach creating technology and systems implementation.
In the case of cereals, the farmers plant 50-120 kgs of seeds per hectare, while they could have the same results and even more production with 18 kgs seed per hectare. Cereal planting systems can save up to 70-100 kgs seed that is wasted in each hectare without reason.
Stubble Cultivator Implement
Stubble is an easy and inexpensive food for cows, sheep and other animals, and it decreases the use of fertilizers by 50%. Farmers who acquire the knowledge to increase stubble create their own forage, with the utilization of stable and barley.
If stubble is left in the fields, it can cause serious problems to the Wheat producers. The result is that soil is overloaded, there is a decrease of the fertility of soil and there is a continuous danger of fires which can burn hundreds of hectares of virgin forests and cause disasters to the environment as happens very ofter in summer. (EU directives have forbidden field-burning.) Our unique Stubble cultivator machine can increase Wheat production and also can decrease the producer’s operating costs. By not exploiting stubble, farmers waste of tens of millions of pounds per year.
The potato producers lose huge quantities of potatoes that are abandoned in the fields without being collected, because they are only 5-10 cm below soil surface. From research, we found out that more than 1-1.5 tonnes of potatoes are abandoned in the soil in each hectare (1,000 t. meters), and in monetary terms we can say that the profit of the producer is abandoned in the field.
Our unique series of Potato mechanization systems and hectare that are exclusively manufactured into our Factory are tested for simplicity and are made with the best materials can warranty the potato quality and Low operating costs to the potato producer. These machines are satisfying the European directives requirements for Potato quality.
The cows in Cyprus produce 4-5 tonnes milk per year instead of 10-12 tones per year. For solving such problems our company has created last year a Pilot System of Cereals that can increase cereal production up to 1,000 -1,500 kgs per hectare clover for the livestock-farming and mixing of hay and pellets.
Our company has all the mechanization series and the associates with technology and know-how for animal food preparation and production from Cypriot materials such as Lolium, Loutex, Maze, Vetch, AA and trefoil. Compost Machinery and Manure Spreader. Our Company has well-established European associates with the know-how and the technology to create compost, helping not only in farming sewage problems but also in quality of soil fertilization.
Wheat Planting Machines
The Wheat producer, in order to plant seed into 100 hectares, needs to use 250 kgs of Seed and to go to his field at least 4 times. This means 4 times more operating costs and even more so, Wheat prices dropped by 40% with the Cyprus accession into EU.
Our machine is designed such that it can do all four processes–soil cultivation, fertilizing and planting on line, seed cover with soil and corrugation–in one go. The producer needs only 80 kgs per 100 hectares, instead of 250 kgs. Fertilizer is dropped just 1 cm from soil surface, reducing fertilization costs by 50%, because the fertilizer is not moved away by wind or rain.
Seed Vegetable Planting Machines
Through research and development over the last 3 years, we have managed to create and to patent a unique Seed vegetable machine for a variety of vegetables such as onions, beans, garlic, coriander, etc. This machine is capable of planting all mentioned Vegetables by minimizing operational costs by up to 70% and can have the products made as per European Union directives as concern Size, Weight and Quality.
The company has already tested this machine for 3 years with several Cypriot vegetable producers and the results were beyond expectations. The machine has already been registered and patented rights are exclusively owned by our company. (Patent No. CY2351)
Market Analysis Summary
The overall market for agriculture machinery and implements is immense.
This business plan has identified over 1,800 agricultural producers and farmers in the local market that have a potential need to maintain and/or win customers or even more so are striving to survive. The funding schemes for agriculture and livestock support set by EU will allow them to stay competitive and this business opportunity is all about it.
Last week it was announced by the Ministry of Agriculture, Natural Resources and Environment that EU has available 256 million Euro for funding from 65%-80% of all units or producers intending to modernize and use technological advances in order to improve customers’ (Agriculture Producers’) product quality and to be able to export goods into European markets at competitive prices.
In reality, all agriculture and livestock businesses are in need of our products, because there are only 3 potential competitors locally who import or manufacture agricultural machinery and implements. Those involved with Potato mechanization have copied some of our unique series of products, whereas only 2 of them are involved with Cereal and Wheat implements. Kouros Brothers Ltd. has all machinery and implement series of equipments that will allow the Cypriot agriculturer and Livestock producer to stay competitive into European markets.
4.1 Market Segmentation
Our market segmentation scheme is fairly straightforward, and focuses on all agricultural and livestock sectors. The information contained in our customer analysis table is taken directly from the last statistics report published by the Ministry of Commerce and Industry and Tourism website and clearly shows that our largest market potential is more concentrated on the following sectors:
- Potato Crop Mechanization
- Cereals Crop Mechanization, including Wheat and Barley
- Vegetables crop Mechanization
- Packing Technology
- Livestock Machinery
- Beach Cleaning Machines and Beach Creation methodologies
- Fire Fighting Systems for rural areas
For more than 35 years, the company has owned almost 80% of the potato mechanization market. However, due to negative growth opportunities in this sector the last years, the prospects of this sector were unclear. Therefore, the company in order to survive has decided to invest in sectors such as new vegetable machine designs that will satisfy the vegetable producer needs (lower operational costs, low investment costs, simple machines, etc.) and also simultaneously through dealership of the main European agriculture machinery and implements manufacturers to become their sole agent and promoter in Cyprus and the Middle East area.
After 40 years of experience in agricultural machinery and implements manufacturing and design, the company has identified its strengths and weaknesses and has focused on vegetable, Cereals, Livestock and Beach Cleaning implements and technologies, allowing it to offer the same quality of service and support as are afforded by the larger businesses.
The strategy used for years was to bring in selected products, and then attempt to find a buyer. This resulted in inventory overstock, and obsolescence. The company already knows the customers’ needs and wants, therefore, as part of its marketing mix has decided to use the start up funding for buying a series of 6 main machinery that will have the most predicted demand and via marketing and promotion will try to promote its complete series of products.
After sales, services and spare parts provision to repeat customers is also part of our new Marketing strategy. The aim of the new marketing approach is to keep the existing customers and not to start building a new market share. Long-term relationships with customers is one of the key-success factors mentioned earlier and was one of the reasons that company survived and earned their business. The company expects that by implementing a correct marketing mix, we will increase our share in this market segment by offering the same value-added service and support benefits that its commercial clients demand.
4.2 Target Market Segment Strategy
Our choice of target markets is based on comprehensive experience within the agriculture industry coupled with an in-depth understanding of the customers’ needs for more than 40 years.
We have taken a unique approach to satisfy our customers needs and wants and also simultaneously to answer all their questions and to air their fears about the effectiveness and efficiency of our products. The company identified that only the on-site testing of the agriculture machinery in the customers’ fields could calm down even the most resistive and questionable customer.
The company cannot be successful by just waiting for the customer to come for ordering. Instead, we must focus on the specific market segments whose needs match more to our series of products. Focusing on targeted segments is the key to company’s future. Therefore, the company’s focus and marketing message will be not only the customer needs but also the after service and spare parts services offered. A good marketing mix will develop company’s message, communicate it, and fulfill its commitment to excellence.
Developing a market strategy is a departure from the way the company has been managed in the past. We will change the paradigm of being a product- and price-focused sales organization, to that of becoming a customer- and market-focused organization, aiming in sharing responsibility for customer satisfaction. We will accomplish this paradigm shift through the implementation of a balanced and continuous market research for agriculture needs and technology demands. Planning and implementing specific strategies for each of the seven identified segments will be an ongoing process, and we will will consult with marketing specialists, and our manufacturers, to further refine these efforts as we develop an effective marketing plan.
4.3 Competition and Buying Patterns
Our customers want equipment that works well. They are paying a great deal of their annual income to purchase a machine, and will not buy anything unless they have a clear demonstration that it works, or a recommendation about buying from another farmer they trust. The Cypriot farmer and agriculture producer is the last minute man. He plans to buy a machinery only when it is critical and necessary, and when he identify the need, he wants immediate delivery.
Kouros Brothers Ltd.’s closest competitors are located in Next Town, Other Town and Our Town. They include the following five companies:
- IJK. Ltd.
- UVX. Ltd
- ABC. Ltd
All above listed competitors are offering standardized agriculture forbidden and implements for the potato industry and only 2 seek to satisfy somehow other sectors of the agriculture and Livestock Industry.
Furniture Manufacturer Sample Business Plan
In order to start up your furniture manufacturing business you are going to require a business plan similar to this.
Furniture Manufacturer Business Plan
Trestle Creek Cabinets will be formed as a cabinet company specializing in custom cabinets for the high-end residential, resort, and commercial market. Its founders have extensive experience in the construction and cabinet industry. Trestle Creek Cabinets will operate under the umbrella of Trestle Creek, Inc., a construction company sharing staff, office space, and administration costs. However, for the purpose of business planning, we are treating Trestle Creek Cabinets as a separate company.
Over some years of being involved with the construction of luxury homes, the company owners have seen a need for a cabinet line with a broad selection of design choices, high-end finishes, along with top of the line organization, customer service, and quality. Trestle Creek Cabinets will meet those customers needs. Building a strong market position in the high-end residential, resort, and commercial development segments, the company projects revenues to grow substantially between FY1 and FY3. By maintaining an average gross margin of over 25%, the company estimates handsome net profits by FY3.
The company owners have provided the capital to cover the start-up expenses. The company currently seeks a 3-year commercial loan to cover the operating expenses.
The company objectives are:
- To be a top cabinet supplier to luxury homes in the regional market.
- Revenues to more than double Year1 levels by the end of Year2.
- Aim to have 70% of sales in high-end residential customer segment.
- 20% of sales in mid-range residential customer segment.
- 10% of sales in commercial development segment.
- To have a showroom within 3 months in a prominent retail space.
To deliver a high-quality product, on time and within budget while also providing a fast, error free ordering system.
Trestle Creek Cabinets is a new company that will provide expertise and quality in the cabinet supplier market while meeting the demanding organizational, scheduling, and quality needs of architects, owners, and construction professionals.
2.1 Start-up Summary
Total start-up expenses, including tools, software, stationery, and related expensesare shown below. Two co-owners, Martin Kribs and Brent Palmer, will provide the bulk of the start-up financing. At the same time, the company plans to receive a 3-year commercial loan facility, which will help meet the cash flow requirements.
Our product is essentially made with two main components.
- The boxes and shelves will be ordered from two different suppliers (Cab Parts, Scheers), and will be delivered in kitset form. They can be finished with custom veneers.
- The doors, panels, and drawer fronts will come from four different suppliers: Bergmeyer Manufacturing, Homestead Woods, Decore, and Southwest Door Company. We will have 4-6 custom designs, with unlimited different custom finishes, available from Bergmeyer Manufacturing. The other suppliers will provide their stock products.
Market Analysis Summary
Trestle Creek Cabinets will be focusing on architects, owners, and contractors in the regional area who are involved in high-end residential, resort, and commercial development segments.
In 2000, a total of 219 new residential homes worth $168 million were constructed in the Teton County, WY. If we take an average of $40,000 per kitchen, (probably conservative), and multiply that by the 219 homes, that gives us a total of $8,760,000 in kitchens installed for the year. We plan to acquire 4-5% of the market share of this residential segment in our first year. We do not think this is unreachable, especially in a still growing market.
Teton County, Idaho has great potential as three new resort developments, Teton Springs Golf & Fishing Club, Grand Targhee Resort Expansion, and Teton Country Club, come on line.
The following table outlines to total market potential of the three major customer segments in the Teton County.
4.1 Target Market Segment Strategy
Trestle Creek Cabinets will be focusing on contacting contractors and architects that deal with the luxury home market. Making ourselves known to these entities will generate some strong leads, along with getting personal recommendations to the home owners.
There are plans to upgrade office space to a showroom in a high visibility location. This will give us exposure to new home builders that are looking for our product.
4.2 Industry Analysis
There are two main types of cabinet suppliers in the industry.
Resellers of complete cabinet sets using stock items where the cabinets turn up completely built. Usually have no shop facilities but do have show rooms.
Custom shops with full, in-house fabrication facilities. They are usually very product orientated and under-perform with customer support.
Trestle Creek Cabinets can provide high volume work, superior project management, and excellent quality while maintaining a low overhead.
4.2.1 Competition and Buying Patterns
The high-end cabinet market understands the concept of service and support, and is more likely to pay for it when the offering is clearly stated.
There are many competitors in the local market. Although each of them deliver a quality product, we feel they fail to deliver a full turnkey package. There are four factors that govern the cost of all kitchen projects: Scope, Product, Design, and Services. Most people mistakenly think that the size of the project and the choice of brand name products will make for the best results. But it is the design and a company’s services that will have the greatest impact on the quality and value of the customers investment.
Salsa Manufacturer Sample Business Plan
Your manufacturing business will need a proper business plan at the start and using this sample will provide you with excellent guidelines.
Salsa Manufacturer Business Plan
Salvador’s is a manufacturer of authentic Hispanic foods including salsa and chips. Their products are positioned at the high end of the market in terms of both quality and price. Salvador’s has been in business now for three years and has grown in popularity. What was once a business targeting solely the Hispanic community has grown into a business that has far broader appeal.
Salvador’s has several objectives that they will achieve within the next three years. The first is an increase in sales reaching two million dollars by Year 5. Salvador’s also would like gross margins to be above 55%. Salvador’s also hopes to have 40 different outlets that will distribute their product. Lastly, they aim to become known as the premier authentic Hispanic food producer in the area with an ever-expanding geographic distribution area.
Currently, Salvador’s has two main line of products. Their flagship product is their salsa, renowned for its freshness, uniqueness, and quality ingredients. Originally introduced in one temperature, hot, the market demand has asked for milder temperatures and Salvador’s has responded with both a medium and mild version. To compliment their salsa, Salvador’s offers fresh chips in both yellow and blue corn.
Salvador’s has targeted three main customer groups to sell their products to. The first group is grocery stores. The grocery stores will be then sell directly to the end consumer. This segment is growing at 75% and there currently are 53 potential customers. The second group is wholesale distributors. This segment has a 100% growth rate with 5 potential distributors. The last customer segment is restaurants which have a 45% growth rate. There are 18 potential restaurant customers. As mentioned before, Salvador’s originally targeted the Hispanic community. The market has indicated that their products have broader appeal and Salvador’s has recognized this and acted accordingly. The Hispanic community was initially targeted because of its exciting growth rate. The community has been growing at 22% a year, almost double the average of the overall US population.
While there are many competitors at the mid price point, both regional and national, there are few direct competitors at Salvador’s high price point. This is quite advantageous for Salvador’s, providing them with additional breathing room to establish themselves as the premier brand of authentic Hispanic food.
Salvador’s strong management team of Ricardo and Pat Torres will ensure sustainable growth for Salvador’s. Pat is the President and has 12 years of food industry experience. The previous five years was as manager of a four store Tex-Mex restaurant chain. This provided Pat with incredible insight and industry knowledge that reinforced the idea to start a business from scratch. Ricardo brings Salvador’s over six years of financial control experience that was gained as a CPA with Arthur Andersen. Salvador’s management team, due to its seasoned strength will help Salvador’s achieve the dream of being the premier Hispanic food manufacturer.
Salvador’s has begun to reach profitability and forecasts a modest net profit in three years. The commensurate modest profit margin will be achieved from sales. The financials within the plan further reinforce the exciting nature of this business.
- Increase sales significantly over the next three years.
- Improve gross margin % over the current product line and maintain that level.
- Add products and services to meet market demand, again at high gross margin.
- Improve inventory turnover, reduce the cost of goods sold while maintaining the high quality of the products.
- To provide jobs to the Hispanic community that are rewarding and fulfilling.
Salvador’s was built on offering the highest quality and value in its authentic hot salsa, filled with the history of the Hispanic community. Time honored family recipes have been passed down through the generations, rich with ethnic heritage. Knowledgeable consumers were looking for authentic products, filled with the best ingredients. The consumer was crying out for a change! They wanted real down home Hispanic salsa.
Salvador’s answered this call, first with its hot salsa, then adding mild and extra hot salsa, followed by yellow and blue corn chips. Constantly striving to supply what the consumer is asking for, we continually review what is available in the marketplace, and what isn’t. Improving on what is available and providing new products and services to the areas of need will assure our success in a market driven by consumer demand.
1.3 Keys to Success
- Delivering high quality products that set themselves apart from the others in taste and value.
- Providing service, support, and a better than average margin to our dealers.
- Increase gross margin %.
- Bring new products into the mix to increase sales volume.
Salvador’s is in its third year of operation, increasing sales five-fold in its second year, and is on track to repeat this in its third year. It has a good reputation, excellent people, an increasing position in the local market, and opportunities to reach out into other states. Starting with a few outlets for our products, we now have over 40, with two large grocery chains in the approval process of carrying our full line of products, and a large distributor intending to sell over $100,000 worth of our products annually.
2.1 Company History
Salvador’s has been hindered only by the lack of working capital it had in its initial stages of setup and operation. Sales are growing steadily, with the cost of goods sold consistently decreasing. But to make significant headway in this area, additional capital is needed to purchase ingredients and processing in larger volumes, thereby reducing the costs of goods sold by 32% overall.
2.2 Company Ownership
Salvador’s is a privately-held C Corporation owned in total by its co-founders, Ricardo and Pat Torres.
2.3 Company Locations and Facilities
Currently we have one location in suburban Perrysburg. It includes the production area, offices, and warehouse area. We are currently looking into plans to increase the size of the warehouse by adding a location, and providing a store front to enhance the current business sales practices, while providing a high quality, ethnic outlet for Hispanic foods.
Salvador’s sells its authentic Hispanic salsa and chips to an ever-growing clientele. Originally geared toward the local Hispanic community, the market has expanded to include a much larger geographical area, in addition to a very broad consumer response.
We are selling quality and product-uniqueness in a market segment filled with competition. Our approach is to take our product image up-market because or our rich heritage and uncompromising view of product quality. This focus has enabled us to view the voids in the market, and add product to our line that will fill it. We have researched and reviewed other ethnic food item organizations, tracking their successes and positioning ourselves similarly.
Salvador’s is building a reputation for high quality and strong value in a product filled with authentic Hispanic flavor. We service our dealers just as if they were a part of the family – and that is our unique approach to marketing our products. You are not just a dealer; not just a consumer; you are special to us – you are family. We go to great lengths to provide our dealers with high quality products, and the ability to make a good margin on them. In addition, we make ourselves available for on-site demonstrations of the product at no charge to them. We hope to continue offering this service, but at a minimal cost to lower our expenses in the future.
3.1 Product Description
We currently offer two basic product lines:
- Our original product, Salsa, was available only in a hot flavor. Because of consumer demand, we have added extra hot and mild flavors.
- Chips, both yellow corn and blue corn.
3.2 Competitive Comparison
To differentiate ourselves from all of the others, we stress quality and authenticity of the ingredients, and the heritage of the family recipe.
We sell more than a jar with salsa in it. We sell high quality ingredients, carefully put together in a masterful blend that can’t be matched in taste or true Hispanic authenticity.
These are simple products that must be presented in a way that encourages the consumer to just give us a chance. Once they try our product, we will have a long-term relationship with them.
As in similar food items, we can charge a premium for what we supply. The market has shown it will buy our product over more readily known names because of the richness and authentic taste of our salsa.
3.3 Sales Literature
We are currently working on a new line of brochures and sales materials to assist our marketing, and that of our dealers. Our newly designed labels show the direction we are taking in this area, and we have enclosed a copy as an appendix/attachment.
Our costs are a part of the margin squeeze. As our orders go up, we need to increase our production in a way that also increases our margin. We have found a local supplier that can reduce our costs by handling much larger batches of salsa than we are currently able, yet maintain our high quality. This will reduce our costs over 32% per jar in the production of our salsa.
We need to continue to find additional opportunities that will afford us lower costs of production while maintaining the quality that has put us on the map. Our outsourcing for the corn chips has shown we can contract for a high quality product that we will be able to put our name on, and meet our goals for gross-profit margin.
3.5 Future Products
We are currently researching the addition of an authentic Hispanic Sauce, as well as other Hispanic food items to offer our current clients, and to build increased interest in Salvador’s, Inc.
We are now looking into additional products, sauce, and other Hispanic food items, as well as other ways of marketing the overall line.
We are also looking into creation of a small store front, and eventually a lunch counter or small restaurant setting.
Market Analysis Summary
We have been selling at the rate of $2,500 per month to local restaurants, small grocery stores and distributors of Hispanic foodstuffs. Salvador’s is currently awaiting approval for a large grocery chain to carry our products, and has received a commitment from a large distributor to sell from $100,000 to $150,000 of product per year. There are several other large grocery chains that have been approached and are in various stages of interest in carrying the Salvador’s line of product.
4.1 Market Segmentation
The Hispanic food industry is in a boom period. While there are many items from various vendors available, Salvador’s has approached the market as a Specialty Retailer: a provider of authentic high quality Hispanic salsa and chips.
We have made significant inroads with several area restaurants and a small grocer’s, each providing us with a market presence. We are now looking at developing our own store front as an adjunct to our current marketing. There is is a need for a specialty retailer catering specifically to the Hispanic client and to the individuals that appreciate authentic Hispanic cuisine.
In addition to the above, we are also looking at packaging our products for other groups to use for fundraising events, gift baskets for corporate promotions, and the possibility of a house restaurant to further advertise and promote the products.
4.2 Target Market Segment Strategy
We are initially focusing on the Hispanic community. They will be able to appreciate more readily the authenticity of the product. The market will observe the products they choose, and they will indirectly become promoters of our products.
4.2.1 Market Growth
The market analysis shows us a broad range of prospective clients, covering more than one ethnic group or body. The largest of these groups of customers is that of the mainstream American, which is projected to grow at 12% per year. The fasting growing segment is Hispanic, which is projected to grow at 22% per year.
4.3 Industry Analysis
The Hispanic food industry is relatively new, and its popularity is ever on the increase. The authentic taste is not common in this industry, which gives Salvador’s a leg up on the competition.
In an industry currently in a steady upward growth curve, Salvador’s is poised to capitalize on the consumer’s desire for authentic, high quality, Hispanic cuisine.
While a troubling economy can affect many areas, food items are generally not as affected, with specialty items seeming to always find favor in the market place.
4.3.1 Competition and Buying Patterns
There are many suppliers of salsa and similar products currently available on the shelves at your local grocer. However, there is still a lot of room for new products and new companies.
By positioning ourselves at the higher end of the market, we expose ourselves to consumers trying to get out of the rut, who continue to use a product that they have long forgotten why they buy. By not trying to compete head on, we are selling our product consistently and increasingly. With entrance into some of the larger grocery chains we will broaden our audience considerably.
4.3.2 Main Competitors
Although Salvador’s is staking out the high end of this market, we can not fail to be compared with some of the current leaders in this arena. Chi – Chi’s, El Paso, and Hunt’s are just a few of the participants in this segment. Most have been on the shelf for so long they are taken for granted by the consumer. Our fresh approach to authentic taste and texture makes us different.
4.3.3 Industry Participants
While there are currently several vendors in this market selling competitive products, the commonality of those products provides an opening in the marketplace for the vibrant packaging and positioning of Salvador’s salsa and chips. We stand out on the shelf, we stand out in the restaurant, and we will stand out in the mind of the consumer.
4.3.4 Distribution Patterns
While current brand names carry more weight in the marketplace, because of our unique marketing approach using local restaurants, and displaying and demonstrating our wares in local grocery stores, we are able to build consumer awareness at a margin of the cost of television and radio advertising.
In going to food fairs, neighborhood festivals and the like, we build consumer awareness and generate demand at the same time. While at these events we are also able to directly research the market and hear first-hand what the consumer is seeking.
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