I
c
Druk Organic Farm
Tingtibi
“Health, Fairness, Ecological Balance and Care.”
Submitted by:-
Chozang
(CID: 12001001364)
Contact: +97517510751 # Email ID: [email protected]
Venue of Training: TIM, Thimphu.
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I
c
Druk Organic Farm
Tingtibi
“Health, Fairness, Ecological Balance and Care.”
Submitted by:- Chozang (CID: 12001001364 ) Contact: + 975 17510751 # Email ID: [email protected] Venue of Training: TIM, Thimphu.
II Confidential Agreement Copyright© by Chozang The undersigned reader of Druk Organic Farming business plan hereby acknowledges that the information provided is completely confidential and therefore the reader agrees not to disclose anything found in the business plan without the express written consent of business owner. Acknowledgement In present world of competition there is a race of existence in which those are having will to come forward succeed. With this willing I come with this business. Therefore Without great support of Thimphu Institution of Management, it would be not possible to write this business plan proposal. It has always been very responsive in providing necessary information, and without their support plan would lack in accurate information on current developments. In addition, I am highly obliged in taking the opportunity to sincerely thanks to Mr. Bikram Gurung and all the staff members. At last but not the least I am thankful to all my teachers and friends who have been always helping and encouraging me. I have no valuable words to express my thanks, but my heart is still full of the favors received from every person.
Signature Name:- Chozang Date:19/05/
IV Project at glance Profile of project (Table 1.0: project profile) Profile of promoter Name of promoter Chozang Sex Male Age 23 Date of birth 21/02/ CID No. 12001001364 Contact No. 17510751 Permanent Address Village Digala Gewog Bardo Dzongkhag Zhemgang Academic Qualification 12 th Training Accounting and Financing Management Skills
- Computer skills, Communication skills, Office management skills Language
- Dzongkha
- English (Table 2.0: promoter profile) Proposed Name of Business Druk Organic Farm Nature of Business Organic vegetables Proposed location Tingtibi Business ownership Sole Proprietorship form of Business Mode of financing Debt Total Project Cost Promoter equity 0 Loan from Bank Nu. 2 ,00,000. Projected Total employees 3
V
Table of Contents EXECUTIVE SUMMARY......................................................... ………………………….……...iii Profile of the entrepreneur ......................................................... …………………………………iii
1. Introduction of the business i. Vision To be trustworthy and innovative leader by providing genuine, organic true wellness products. ii. Mission To become the leading provider of vegetables. To provide quality vegetable at fair prices to at list 50%. To economically empower the society. To protect the production of soil and ecosystem of the Bhutan. iii. Objectives To maintain and increase the long term fertility of the soil. To encourage and enhance biological system within the farming system involving microorganisms, soil flora and fauna, plant and animals. To interact in a constructive and life enhancing way with natural systems and cycles. To use renewable resources in locally organized production systems. To create a harmonious balance of crop production and animal husbandry. To minimize all forms of pollution. iv. Key to success: Maintaining Good working environment in business. Take prompt and effective decision on employees and customers feedback/ suggestions. Maintain long-term fertility of soils. Increment to employees as per their performance. Maintain effective communication system from top to down and vice versa. 2. SWOT ANALYSIS FRAMEWORK Strength Weakness Qualified Buffalo Relation with customers Good support from government First time in the business Lack of capital investment Opportunities Threats Expansion and diversification of business Multiplying customers Competitors Natural calamities ( Table 3.0: SWOT analysis)
Explanation: i. Strength a. Quality of staff, seeds and fertility of soils. The employees are having good experience. b. Relation with customers Good relation with customers is one of the aims, so I will communicate with customers politely and prices are quite low than other shops. c. Good support from government Due to strong support from government’s side, business will run successfully. ii. Weakness a. First time in business:- Since I am doing business for first time, I will be facing difficulties in managing business and compete with an existing business. b. Lack of capital investments:- Lack of capital to start business is main obstacles. For the establishment of business required certain capital investment in terms of furniture, equipment and for purchase of products. iii. Opportunities a. Expansion and diversification of business:- With increasing in number of students, trainees and other customers, there is great chance of expanding business within and beyond Gelephu. b. Multiplying number of customers:- With providing the good quality service and low price than competitors, the opportunity of increasing customers is high. iv. Threats a. Competitors:- With increasing in customers more competitors are coming in market. b. Natural calamities:- Don’t know when and where natural disasters will strike.
i. Description of products or services SL. No Name of products Products descriptions 1 Carrot Fresh and big size 2 Cabbage Fresh 3 Chillies Fresh, hotness and big size 4 Broccoli Fresh 5 Beans Fresh 6 Radish Fresh 7 Pumpkin Fresh 8 Cauliflower Fresh 9 Tomato Fresh ( Table 4.0: product description) ii. Pricing Strategy for my product/ services To reduce the cost of product/ services, Druk organic vegetable shop would purchase raw material in bulk which will eliminate the transportation expenses. With the research in the market following price were quoted as per the convenience of the customer. The price is recorded after meeting of break-even point. Sl. No. Product Name Price(Nu) Pricing strategy 1 Carrot 40 per kg - Price are quite low than competitors and affordable 2 Cabbage 35 per kg - Do 3 Chillies 45 per kg - Do 4 Broccoli 50 per kg - Do 5 Beans 80 per kg - Do 6 Radish 40 per kg - Do 7 Pumpkin 50 per kg - Do 8 Cauliflower 90 per kg - Do 9 Tomato 65 per kg - Do (Table 5.0: pricing strategy for product)
iii. My production quantity : Sl.No. Product/Service Unit Per week sales Per month sales Per year sales 1 Carrot Kg 70 280 3 , 360 2 Cabbage Kg 70 280 3 , 360 3 Chillies Kg 65 260 3, 4 Broccoli Bundles 70 280 3 , 360 5 Beans Kg 60 240 2, 6 Radish Kg 60 240 2 , 880 7 Pumpkin Kg 65 260 3, 8 Cauliflower Kg 60 240 2, 9 Tomato Kg 70 280 3 , 360 (Table 6.0: production quantity) Reason: Druk organic vegetable shop can produce as per the requirement in the market. With my survey I came to know that Tingtibi is rapidly developing with yearly increase in commercial business, schools. So as per that I have set the production quantity because we cannot over supply and under supply our product in market.
5. Channel of Distribution: i. Promotion: Type of customer How to reach to them Schools 1. Advertisement 2. Marketing 3. Social media Hotels 1. Advertisement 2. Marketing 3. Social media Restaurants 1. Advertisement 2. Marketing 3. Social media Vegetable sellers 1. Advertisement 2. Marketing 3. Social media (Table 7.0: promotion)
7. Competitor Analysis Name of competitor Strengths Weaknesses Indian vegetable sellers More land and can produce more products at cheaper rate. Not organic. High cost of transportation. Local farmers Have experience. Lack of technical farming. (Table 10.0: competitors Analysis) 8. Competitors pricing Analysis: Sl. No. Product Price of competitor 1 (Nu.) Price of competitor 2 (Nu.) 1 Carrot 55 per kg 50 per kg 2 Cabbage 85 per kg 75 per kg 3 Chillies 55 per kg 50 per kg 4 Broccoli 70 per kg 60 per kg 5 Beans 100 per kg 95 per kg 6 Radish 70 per kg 65 per kg 7 Pumpkin 70 per kg 60 per kg 8 Cauliflower 100 per kg 130 per kg 9 Tomato 80 per kg 70 per kg (Table 11.0: Competitors pricing analysis) 9. Sales Projection: i. Sales Projection for 1 year Sl. No. Product/Service Unit Price per unit(Nu) Per week sales(Nu) Per month sales(Nu) Per year sales (Nu) 1 Carrot Kg 40 2,800.00 11,200.00 134,400. 2 Cabbage Kg 35 2,450.00 9,800.00 117,600. 3 Chillies Kg 45 2,925.00 11,700.00 140,400. 4 Broccoli Bundles 50 3,500.00 14,000.00 168,000. 5 Beans Kg 80 4,800.00 19,200.00 230,400. 6 Radish Kg 40 2,400.00 9,600.00 115,200. 7 Pumpkin Kg (^50) 3,250.00 13,000.00 156,000. 8 Cauliflower Kg 90 5,400.00 21,600.00 259,200. 9 Tomato Kg 65 4,550.00 18,200.00 218,400. Total 32,075.00^ 128,300.00^ 1,539,600. (Table 12.0: Sales projections for 1 year) Explanation: The above table shows the minimum quantity of products that can be sold in the current market and there is better opportunity in near future.
ii. Sales Projection for 5 years: Sl.No. Product/Service 1 st^ year 2 nd^ year 3 rd^ year 4 th^ year 5 th^ year 15 % 15 % 15 % 15 % 1 Carrot 134,400.00 154,560.00 157,584.00 158,037.60 158,105. 2 Cabbage 117,600.00 135,240.00 137,886.00 138,282.90 138,342. 3 Chillies 140,400.00 161,460.00 164,619.00 165,092.85 165,163. 4 Broccoli 168,000.00 193,200.00 196,980.00 197,547.00 197,632. 5 Beans 230,400.00 264,960.00 270,144.00 270,921.60 271,038. 6 Radish 115,200.00 132,480.00 135,072.00 135,460.80 135,519. 7 Pumpkin 156,000.00^ 179,400.00^ 182,910.00^ 183,436.50^ 183,515. 8 Cauliflower 259,200.00 298,080.00 303,912.00 304,786.80 304,918. 9 Tomato 218,400.00 251,160.00 256,074.00 256,811.10 256,921. Total 1,539,600.00^ 1,770,540.00^ 1,805,181.00^ 1,810,377.15^ 1,811,156. (Table 13.0: Sales projection for 5 Years) 10. Production Plan Production plan / operational plan i. Business Process Map out (Figure 3.0: Business Process) As soon as raw materials like seeds, plastic bags etc. are purchased. We will convert all the raw material into finished product. We will supply as per the requirement in the targeted market. Vegetables will be supplied to schools, Hotels, Restaurants and vegetable sellers. There is no such service in Tingtibi. Druk organic farm will be located in the core of three Gewogs, where everyone accesses very easily. To provide the better service and quality all the works will be done by using quality materials and all the works are done by the experienced person. Druk Organic Farm Schools Bank (Loan) Supply of Raw materials Loan Repayment Vegetable sellers Suppliers Borrowing of loan Payments Customer Hotels Restaurants
11. Raw materials costing: i. Following are the cost of raw material for 1 year. Sl. No. Product Raw material required Unit Quantity required / month Price per unit (Nu) Monthly cost (Nu) Yearly cost (Nu) 1 Carrot Seeds Packet (^4 20 80 ) Livestock Manure Bags (^10 60 600) 7, Plastic Bags (^5 30 150) 1, 2 Cabbage Seeds Packets 4 25 100 1, Livestock Manure Bags 10 60 600 7, Plastic Bags 5 30 150 1, 3 Chillies Seeds Packets (^4 25 100) 1, Livestock Manure Bags 10 60 600 7, Plastic Bags 5 30 150 1, 4 Broccoli Seed Packets 4 155 620 7, Livestock Manure Bags (^10 60 600) 7, Plastic Bags 5 30 150 1, 5 Beans Seed Packets 4 15 60 720 Livestock Manure Bags 10 60 600 7, Plastic Bags 5 30 150 1, 6 Radish Seed Packets 4 20 80 960 Livestock Manure Bags 10 60 600 7, Plastic Bags 5 30 150 1, 7 Pumpkin Seed Packets 4 15 60 720 Livestock Manure Bags 10 60 600 7, Plastic Bags 5 30 150 1, 8 Cauliflower Seeds Packets 4 135 540 6, Livestock Manure Bags 10 60 600 7, Plastic Bags 5 30 150 1, 9 Tomato Seed Packets 4 15 60 720 Livestock Manure Bags 10 60 600 7, Plastic Bags 5 30 150 1, (Table14.0: Raw material cost for 1 year) Reason: I have estimated that number of manures and plastic require for each greenhouse vegetable are same within particular period.
ii. Detail cost of raw material for 5 year Sl. No. Raw material required Unit Yearly cost 2nd year 5% 3rd year (5%) 4th year (5%) 5th year (5%) Nu. Nu. Nu. Nu. Nu. 1 Seeds Packets 20,400.00 21,420.00 21,471.00 21,473.55 21,473. 2 Livestock Manure Bags 64,800.00 68,040.00 68,202.00 68,210.10 68,210. 3 Plastic Bags 16,200.00 17,010.00 17,050.50 17,052.53 17,052. Total 1,01,400.00 106,470.00 106,723.50 106,736.18 106,736. (Table 15.0: Cost of raw materials for 5 years) Explanation: Druk organic farm keep the minimum 5% increase in expenses because to maintain under stock and over stock by applying JIT (Just in Time) factor. There are chances of loss if there is less demand and high production. So keeping this in mind we will purchase the required units of raw materials and supply the product as per the demand in the market without wasting the resource. 12. Suppliers contact details; Sl. No. Types of raw materials Country 1 Seed Bhutan 2 Livestock Manure Bhutan 3 Plastic Bhutan (Table 16.0: supplier’s details) Reasons: Our main suppliers would be from Bhutan. Since all the raw materials are available within our country.
iii. Employment strategy: iv. Administrative Buffalo Expenses: Sl. No. Designation No. of Buffalo Salary per head Monthly Salary Yearly Salary 1 Diver cum sales person 1 15 ,000.00 15 ,000.00 1,80,000. 2 Labors 2 10 ,000.00 20 ,000.00 2,40,000. Total 35 ,000.00 4,20,000. (Table 18.0: Administrative Buffalo Expenses) b. Administrative Costing Sl. No. Particulars Total cost per month Total cost per year 1 Store rent 10,000.00 1,20,000. 2 Licensing fee 250.00 3,000. 3 Stationeries 1,250.00 15,000. 4 Telephone bill 500.00 6,000. 5 Electricity bill 1,000.00 12,000. 6 Water bill 300.00 3,600. TOTAL 13,300.00 1,59,600. (Table 19.0: Administrative Costing) Druk organic farm Advertisement BBS News papers (^) Social Medias Collect the Application from candidates who fulfill the criteria. Selected the candidates for interview Inform applicant for practical test and interview. Conduct practical test and interview. Applicant will be tested on experience, knowledge, Skills and Attitude. Appoint the applicant as employee as probation period for 6 months. After 6 months appoint the applicant as regular employee and give increment as per performance (Figure 6.0: Employment Strategy)
i. Office management: Types of file requirements: Sl. No. File name Coding Store details FI/ It contains details about store tools and equipment. finance details FI/ It contains details about tax returns and related documents. Sales detail FI/ It contains details about the vegetable sales. Office copy File FI/ It contains all the office copy documents Miscellaneous Expenses
FI/
It contains about the details of the office expenses. Leave details FI/ It will contain all the information regarding employees, like leave, salaries etc. (Table 20.0: Types of file requirements) ii. Risk management: (Table 21.0: Risk Management) Types of risk Factor contributing to the risk Impact of the risk Risk mgt. Strategy Financial risk No Loan/Low sale Incurring lose Proper collection of resources and effective mobilization of funds will be practiced. Market risk More competitors Less sales Computation of cost of goods sold and selling price. Organic production fails through pets, natural causes and other unforeseen circumstances. Thoroughly tested organic methods. Less production and income. Proper fencing and frequently weeding.