Women Empowered in Business (WEB) Soya. Business Plan 2018

Transcription

1 Women Empowered in Business (WEB) Soya Business Plan 2018

2 Table of Contents Summary 3 Marketing Plan 4 Target Market 4 Supply 4 Products and Services 4 Production 5 Distribution 5 Distribution Capacity 5 Competition 5 WEB Soya s Competitive advantage 6 Packaging 6 Business location 7 Pricing 7 Marketing Demand Analysis 8 Promotional Plan 8 Management Plan 9 Business structure 9 Employee recruitment and training 10 Financial Plan 11 Cost Analysis and Pricing 11 Sales 12 Cash flow (Uganda Shs 000) 12 Investment budget 13

3 Summary WEB Soya was established in February 2017 with the aim of increasing household income and job creation among women farmers in Oyam district. A locally based NGO, FICH, noticed that soya beans are widely grown in the Northern region of Uganda due to a favorable climate and land fertility. Many households sold soya beans but lacked the skill and capital to add value to their produce. In response to this, FICH initiated the WEB Soya project. Through WEB Soya, FICH created opportunities for rural farmers to add value to their soya beans and learn valuable business skills. Mission: to economically empower rural women and their communities through sustainable, grass-roots business Vision: to become the largest supplier of soya flour and soya cake in the greater north of Uganda and Southern Sudan Values 1. Excellency: Providing products and services that exceeds expectations will be our commitment. Our focus on delivering consistency services and quality products is the key that will create loyal and satisfied customers 2. Integrity: We will treat others with respect, honesty, and fairness. Our relationship with clients/customers and fellow employees are focussed on treating others as we want us to be treated 3. Teamwork: We believe we are better as a team that are individuality and committed to working together to accomplish our goals Goals To provide outstanding services and consistent quality to customers To increase productivity of WEB Soya members To develop a wide-spread and reliable client base Products and Services Soya flour Soya cakes Business skills training Location Alidi, Loro sub-county, Oyam District, Northern Uganda This location was chosen for its proximity to rural, women farmers, the popularity of soya beans among farmers in the area, and ease of access to major markets.

4 Marketing Plan Target Market Apart from being a source of edible oil, Soya is rich in proteins, and the defatted or whole Soya is used to make innumerable products such as Soya milk, Soya flour, Soya coffee and nugget. The potential markets for Soya flour are in the school feeding program, social welfare feeding program, sweet industries, baking industries, and manufacturing as a supplement for wheat flour and animal feeds. These products have gained consumer acceptance and the market continues to grow. Therefore, the WEB soya business will target: Bakeries Local free markets Retail shops and supermarkets Wholesale distributors Schools NGO s involved in child nutrition Local community The development of the bakery industry and soya consumption at individual and community levels is growing considerably and is an excellent opportunity for Uganda s agricultural and agri-food sector to capitalise on it. The market segment of soya flour and soya cake is growing due to the increased demand for alternatives to current agricultural products used to make bread and porridge. Customers are demanding products that add flavour, reduce malnutrition among children, improve digestion and bone health, and boost immunity. In addition, farmers demand products that help in animal feeds in order to conserve the environment through less consumption of grass and other plants by animals. Supply Item Soya beans Packaging Labour Supplier Local women farmers SAM Paper Bag - Kampala Local women farmers Products and Services Product/Service Soya flour 1kg Soya flour carton Soya flour cake small Soya flour cake medium Soya flour cake large Business skills training Description 1 kilogram of soya flour packed in WEB Soya branded packaging 12 bags of the 1kg Soya flour packed into a portable paper packaging Sweet cake Sweet cake Sweet cake Trainings on business, entrepreneurship, and finance

5 Production Soya flour is made through a 5-step process: 1. Procuring soya beans 2. Drying soya beans 3. Roasting soya beans 4. Grinding soya beans 5. Packaging soya beans for sale Soya cakes are made with WEB soya flour and require additional steps: 1. Procuring additional ingredients 2. Preparing oven and baking supplies 3. Mixing ingredients to make batter 4. Placing batter into small, medium, or large tins 5. Baking 6. Removing cakes from tins 7. Packaging cakes for sale Distribution Customer Distribution Method Bakery Delivery Local free market On site to market agent Retail shops & supermarkets Delivery Wholesale distributors On site Schools Delivery NGO s On site Local community On site Distribution Capacity The capacity to deliver is as high as quantity produce on a daily basis. We have not yet known delivery capacity properly because of limited production but all produced products are bought. Competition Characteristics/features WEB Soya TipTop Nkare Bakery Daily Fresh Bak Product quality x x x x Price x x x x Delivery lead time x x x x Multiple use x x x x

6 Key for rating 1. Outstanding 2. Very satisfactory 3. Good 4. Fair 5. Poor Competitor 1: Located at Industrial Area Lira; their customers are retails shops & supermarkets, they are good at door to door sales, they don t orient customers on their products and additional training. Competitor 2: Located in Gulu district; their customers are retails shops & supermarkets, they are good at door to door sales, they don t orient customers on their products and additional training. Competitor 2: Located on Olwol Road, Lira, their customers are retails shops & supermarkets, they are good at door to door sales, they don t orient customers on their products and additional training. WEB Soya s Competitive advantage 1) 2) 3) 4) We will provide additional training on usage of both flour & cakes Provide business and financial trainings to our customers WEB will establish sales agents and motivate them to sell more We will collect data about our products for strategic marketing Packaging

7 Business location WEB Soya is located at the FICH office compound. FICH rents the entire compound and allows WEB Soya to use the facilities for production and storage. It is located along the Lira-Kamdini highway in Alidi approximately 30 minutes from Lira. Toilets Bakery Storage/Traini ng room FICH Offices Vacant Vacant Dirt Road Soya Flour Production Room Storage Vacant Lira-Kamdini Highway Pricing Product/Service Unit production cost (total unit cost) + Mark up(profit) = Selling price Soya flour 1kg 2,910 1,090 4,000 Soya 1carton 41,127 6,873 48,000 Soya cake small Soya cake medium ,500 Soya cake large 20,122 9,878 30,000

8 Marketing Demand Analysis The following table indicates expected unit sales of WEB Soya products. Product Target in 1 st 6 months Target in 12 months Target in 18 months Target in 24 months Soya Flour 1kg 12, ,000 36,750 49,700 Soya Flour 1 carton 600 1,292 1,923 28,58 Soya cake Small 108, , ,000 3,945,000 Soya cake medium 30,000 72, , ,934 Soya cake large 720 1,760 2, Promotional Plan Method Details Cost Word of mouth The sales and marketing team will explain to customers 0 the usage of the soya flour and its benefits to human health and businesses development including soya cake features. Fliers and Will assist in explaining the location of the shop and 300,000 business cards factory, the soya flour & cake quality and contact details. Packaging It will explain usage of products, nutrient contents, 300 per Facebook and twitter Stickers Radio Demonstration Training Business counseling and mentorship contact details and branding. Create Facebook and twitter account and share information about how WEB soya flour & cake benefits to human health and business development, and advertise different promotions. This will help in promoting product name and slogan (branding of the products). Will explain product benefits, location of sales points, product quality and package quantity, after sales care services and contact details. The production and marketing team will hold demonstration sessions to produce other products from WEB soya flour to customers. Will assist to increase customers business knowledge and skills in selling WEB Soya Flour and other business products. (there will be start and improve your business trainings for customers at a subsidized rate) in partnership with FICH charity organization Will discuss customer s personal and business challenges to generate sustainable business operations Encouragement through motivational speeches, role models and experience sharing. unit 0 300,000 1,300, , ,000 1,200,000

9 Management Plan Business structure General Manager Director of Operations Director of Finance Head of Production Head of Sales & Marketing Production workers Sales agents Position General Manger Director of Operations Roles and responsibilities Managing general operation of the business. Make sure the operation from production to marketing and sales are progressing well. Will report to general manger Manages all financial transactions and carry administrative work Skills requirements Business Development services, Contract management, Business planning, Sales Management, Costing and financial planning Leadership and motivational skills, Excellent spoken and written communication skills The ability to build relationships with colleagues at all levels, To be able to plan and prioritize own work and other people's Director of Finance Strong accounts management and discipline, Win-win attitude and accountability Sales characteristics such as competitiveness, accountability, Quickly develop relationships with clients, Easy going and personable with clients, Tactfulness to generate positive company image. Head of Sales Will be specifically Excellent communication skills, Leadership abilities,

10 and Marketing Head of production and quality assurance Production Workers Sales Agents managing marketing department and sales of all products Will make sure there production is in line with guideline and quality is maintain Basically me responsible on production day to day activities with technical skills gained to perform the duties Conduct trainings to clients, market and perform all sales activities Strategic thinking: Experienced in developing marketing strategies Capable of delivering quick solutions to the marketing troubles, Effective listener Communication skills, Technical knowledge on roasting soya bean Creative, insightful and innovative, Team working skills, Ability to influence people Quantitative skills Perform all work within the processing and production mandate. Conduct quality and soya flour safety checks, as company policies and procedures. Safely start up, operate and shut down soya bean processing equipment Perform routine preventative maintenance and basic troubleshooting on operating equipment. Perform general labor, housekeeping and sanitation responsibilities as required Sort and Roast soya bean for processing as required Sound expertise in sales, Excellent verbal communication skills, Strong Presentation skills Persuasiveness Know-how to demonstrate Promote and sell, Goal-oriented, Strong networking skills, Negotiating skills, Good Judgment, Decision making Employee recruitment and training Strategy Staff Recruitment Product, sales and customers care training Performance rewards Recruitment of sales agent (target markets) Details Recruit qualified people with positive attitude and commitment to learning All employees will go through an induction and training programmes to cover products information, sales techniques and customer care Each employee will work toward a performance target bonus linked to creating and servicing repeat customers Recruit and train sales agents (retailers & wholesalers) who are WEB soya customers to actively participate in selling products to consumers. The customers will sell toward a performance target bonus linked to number of products sold.

11 Financial Plan Cost Analysis and Pricing S/N Item Quantity Required Unit cost Total cost (6 months) Total cost (12months) Total cost (18 months) Total cost (24months) (per item) Direct Material Costs Soya Flour products 1Kg bag 1. Soya bean 1.5kg 1,500 14, ,000,000 41,000,000 57,800, Packaging material ,880,000 3,600,000 8,100,000 13,780,000 Sub total 17,280,000 30,600,000 41,900,000 71,580,000 Carton Soya bean 18kg ,440,000 81,648, ,781, ,780,000 Packaging material , ,000 1,340,000 2,080,000 Sub total 19,728,000 82,224, ,121, ,860,000 Soya Cake Small (90 pieces) Soya flour 1kg ,800,000 6,240,000 13,860,000 18,700,000 Wheat flour 1/2kg ,600,000 4,680,000 9,800,000 16,970,000 Baking powder 2pack ,400,000 4,700,000 12,200,000 18,900,000 Butter 1000g ,200,000 26,800,000 38,100,000 52,300,000 Eggs 15pcs ,200,000 14,600,000 12,120,000 29,100,000 Mixed spice 1 tea spoon ,200,000 2,600,000 5,100,000 12,600,000 Flavour 2pcs ,400,000 4,800,000 8,600,000 13,000,000 Sugar 1kg ,600,000 7,600,00 12,900,000 16,200,000 Sub total 38,400,000 64,420, ,680, ,770,000 Medium (50 pieces) Soya flour 1kg ,400,000 6,200,000 10,700,000 14,200,000 Wheat flour 1/2kg ,800,000 4,400,000 7,100,000 12,500,000 Baking powder 2pack ,200,000 3,600,000 5,700,000 8,600,000 Butter 1000g ,600,000 14,700,000 16,600,000 23,100,000 Eggs 15pcs ,600,000 8,300,000 11,800,000 16,100,000 Mixed spice 1 tea spoon ,000 1,400,000 3,700,000 8,400,000 Flavour 2pcs ,200,000 3,600,000 5,700,000 8,600,000 Sugar 1kg ,800,000 4,400,000 7,100,000 12,500,000 Sub total 19,200,000 46,600,000 68,400, ,000,000 Large (3 pieces) Soya flour 1kg , ,000 1,600,000 3,800,000 Wheat flour 1/2kg , ,000 1,400,000 3,400,00 Baking powder 4pack , ,000 1,600,000 3,800,000 Butter 2000g ,584,000 3,680,000 6,752,000 9,504,000 Eggs 30pcs ,000 2,592,000 3,888,000 7,776,000 Mixed spice 2 tea spoon , , , ,000 Flavour 4pcs , ,000 1,600,000 3,800,000 Sugar 2kg ,000 1,300, ,000 7,600,000 Icing sugar , ,000 1,400,000 3,400,00 Sub total 4,320,000 10,732,000 20,180,000 32,280,000 Direct Labour Costs 1 Head of production and quality assurance 2 240,000 2,880,000 4,680,000 7,480,000 10,360,000 2 Production personnel 6 180,000 1,080,000 2,280,000 4,480,000 7,840,000 (producers) Sub total 3,960,000 6,960,000 11,960,000 18,200,000 Indirect Costs

12 S/N Item Quantity Required (per item) Unit cost Total cost (6 months) Total cost (12months) Total cost (18 months) Total cost (24months) 1 Rent 1 100, ,000 1,200,000 1,800,000 3,700,000 2 Equipment maintenance Assort 30, , , , ,000 3 Firewood/charcoal for 6 20, ,000 1,680,000 2,640,000 5,040,000 roasting soya bean & cake making 4 Transport 4 40, ,000 2,820,000 8,460,000 16,920,000 5 Communication 1 30, , , ,000 1,440,000 6 Meals 4 45,000 1,080,000 2,160,000 3,240,000 6,480,000 7 Medical treatment 8 10, , ,000 1,440,000 2,880,000 8 Promotion materials 1 120, ,000 1,440,000 2,880,000 5,760,000 9 Trading license 1 4,700 28,200 56,400 84,600 1,128, Depreciation 1 12,206 73, , , ,944 Salary/wages Assort 1,630,00 9,780,000 19,560,000 29,340,000 3,9120,000 0 Miscellaneous 1 150, ,000 1,800,000 2,700,000 3,600,000 Sub total 15,701,436 29,302,872 54,064,308 77,620,944 Grand Total UGX 118,589, ,834, ,305, ,310,944 S/ N ITEM/PERIOD Sales Item Quantity expected to be sold (1month) Cash flow (Uganda Shs 000) Expected Total Sales (6 months) Expected Total Sales (12months) Expected Total Sales (18 months) Expected Total Sales (24months) 1. Soya flour 1kg ,000,000 98,000, ,000, ,800, Soya 1carton ,800,000 62,000,000 92,300, ,200, Soya cake small ,400, ,000, ,000, ,600, Soya cake , ,000, ,200, ,900,000 medium 5 Soya cake large 12 21,600,000 52,800,000 83,000, ,700,000 Grand total 229,800, ,800, ,500, ,200,000 MONTHS CASH IN Starting cash 3,150 8,359 32,211 45,375 85, , , , , , , ,412 Cash sales 18,300 23,200 29,379 45,510 53,100 60,311 46,990 47,686 41,687 46,391 48,065 48,204 Credit sales ,200 3,600 4,190 4,291 2,000 2,000 1,500 1,500 1,5000 1,500 Loan Grant/donation 71,180 14,000 13,00 13,000 12,000 9, Total cash in 92,630 46,459 64, , , , , , , , , ,116 CASH OUT Direct material cost 8,244 10,187 13,078 17,600 22,596 27,223 22,304 23,001 21,219 22,000 23,100 24,024 Direct labour Total indirect cost 2,417 2,481 2,497 2,619 2,736 2,912 2,246 2,356 2,170 2,236 2,310 2,310 Investment 73,030 1,000 3,250 1,000 1,000 1,000 10, ,000 - Loan repayment Total cash out 84,271 14,248 19,415 21,901 27,022 31,964 35,180 25,987 24,019 24,866 48,100 27,084 CASH AT END OF MONTH 8,359 32,211 45,375 85, , , , , , , , ,032

13 Investment budget Department Item Purpose Units Cost Total UGX Marketing & Sales Sales agent training Branded materials (stickers, flyers, etc.) Radio spot messages Sales agent uniform To train all sales agents on WEB Soya products and marketing strategy (average 60 people per training) Will detail information for sharing with potential customers and create awareness To advertise products to a wider community Easy identification & educated information about the products. 6 1,000,000 6,000, ,500,000 3,000, ,350,000 2,700, ,000 2,250,000 Website design Digital marketing of products 1 2,000,000 2,000,000 Delivery vehicle For delivering products to customers 1 22,000,000 22,000,000 Motorcycle Flour Production Backup generator/motor Delivering products, collecting data, recruitment of new customers To use the grinding machine when power is out 2 4,000,000 8,000, ,000,000 8,000,000 Grinding machine Grinding soya bean into flour 1 7,000,000 7,000,000 Weighing scale Measurement of both flour and raw materials 1 500, ,000 Packaging materials 1kg Packaging flour for 1 kg ,600,000 Packaging materials carton Packaging flour on carton ,000 Storage basins Storing flour during packaging 6 8,000 48,000 Preparation table For preparing both raw materials and flour 2 360, ,000 Soya bean roaster for roasting soya bean 1 3,200,000 3,200,000 Bakery Equipment training Gas oven Preparation table to help in technical training on soya flour production To bake cakes of the same quality every time For preparing both raw materials and baked cake 1 300, , ,700,000 3,400, , ,000

14 Cooling shelf To cool cake after baking 2 800,000 1,600,000 Storage case To store cake after baking 3 470,000 1,410,000 Packaging materials Baking tins (small, medium, large) Baking tray Electric mixer (large) Bakery training 50 kg of branded packages containing 60,000 individual packages 2 750,000 1,500,000 baking tin 320 2, ,000 Tray for putting baking tin during baking To help mix flour and other ingredients To help employees know the best practices on bakery 8 20, , ,000,000 5,000, ,000 1,800,000 Raw materials Raw materials flour Raw materials for making flour 3 5,640,000 16,920,000 Raw materials cakes Raw materials for making cake 3 10,320,000 30,960,000 Administrative Wages (flour and cake producers) Meals (flour and cake producers) Utilities Transport To pay flour and cake producers 6 2,290,000 13,740,000 To provide lunch for flour and cake producers For electricity to power the grinding machine For research, product delivery, and networking 6 180,000 1,080, , , ,000 1,500,000 Printing For office purposes 6 160, ,000 Total UGX 120,588,000 Total USD 33,497