entrepreneural business plan
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Company Name:
BUTTERS
LOGO:
SLOGEN:
Life Betters with Butters
Companys Mission:
To combine aggressive strategic marketing with quality products
and services at competitive prices to provide the best insurance
value for consumers.
Companys Vision:
Helping people around the world eat and live better.
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Company Profile:
Form of Business: Partnership
Principals: M. Rahim Ejaz
Fahina Rasool
Imran Khan
Name of Business : BUTTERS
Start Date: 25 Dec, 2010
Business Operation: Full time venture
Monday to Friday
9:00 am to 5:00 pm
Business Description: Provider of a
Substitute to Desi Ghee
Location: Model Town, Block Z
D. G. Khan, PakistanCell: 03336474380
Email: www.butters.org
Business Advisors: Mr. Faran Ibrahim
Chartered Accountant
Mr. Omer Farooq
Marketing Specialist
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http://www.butters.org/http://www.butters.org/ -
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Confidentiality Agreement:
The undersigned reader acknowledges that the information
provided by the principals in this business plan is confidential;
therefore, reader agrees not to disclose the information.
It is acknowledged by reader that information to be furnished in thisbusiness plan is in all respects confidential in nature, other than
information which is in the public domain through other means and
that any disclosure or use of same by reader may cause serious
harm or damage to the business.
Upon request, this document is to be immediately returned to the
legal advisor.
Names of Principals
M. Rahim Ejaz ______________
Fahina Rasool ______________
Imran khan ______________
Date: 25 Dec, 2010
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Executive Summary:
When we talk about the future trends and outlook of the business
then we come to know that still it is untouched section in cooking oil
industry of Pakistan. We are the entrepreneurs and future of this
business is very bright. This industry is covering all the geographic
area and it is of great importance in the GDP.
Our core aim is to provide FMCG products to increase the value of
the customers. We will not distributors in our business because
more intermediaries increase cost and distance to the customer. We
will establish retail outlets to target our customers and make
availability of the products. One head office will be established in
the hometown to deal with the customers and suppliers of thebusiness.
It is a partner form of a business. It has three partners. They all
have equal responsibilities to run operate and investigate the entire
business operations.
We have no share holders. We will meet our financial requirements
from the bank loans. Principals have full authority in the business
and they have full right to investigate, audit and operate the
business in any nature. Management background is very important
in the organizational structure. High profile and high expertise
management personnel are hired to perform the duties and roles in
the business.
Our product is very unique in the market infect this type of product
has been never introduce in the market before. Our product is a
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cooking substance and it is first time that it is in the shape of a
cake. It is easily turned into edible oil
while cooking process. It is unique in nature one cake piece is
enough to fulfill the needs of a family of a one supper.
We are targeting people from all the segments of the market. We
have no differentiated segment to target. We are targeting the
whole market. Our special focus is on the low income people. Thepurchase cycle of our product will be low because one pack will
satisfies more then the expectations to the buyers.
Our product is unique and has no competitor in the market.
However large brands are threats to our company but we have an
edge of uniqueness of our product. Further more our competitor is
in the market for more then 50 years and we are entrepreneurs. Weare introducing low price as compare to our competitor. Our product
nature is totally different from the product nature of our competitor.
The operations of the business will be started from the purchase or
raw material from the suppliers. Our raw material is milk. After
purchasing the raw material from the supplies it is sent to the
production department. When the production process completes
then the product is sent to the packaging section. When the
packaging of the product is completed then inventory is handed
over to the marketing and sales department. They make the
availability of the product to the final customer.
The total finance that is required to start this venture is about 60
million. All the cost of business, assets and operating costs are
included in it. As well as projected income statements and projected
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balance sheet is given in the section of financial plan of this
business plan. 60% resources are managed by the entrepreneursand remaining 40% financial requirements are fulfilled the bank
loans.
Industry Overview:
When we talk about the future trends and outlook of the business
then we come to know that still it is untouched section in cooking oil
industry of Pakistan. We are the entrepreneurs and future of this
business is very bright. This industry is covering all the geographic
area and it is of great importance in the GDP.
Our product is environment friendly is does not harm the cultural
variable anymore. Our product is very flexible in terms of
technology development. When technology changes it would be
easy for us to upgrade our plant and machinery according to the
needs and wants of the market.
Our product is new and unique, so it is very important for us to
patent our brand and product from the patent office in order to save
our product from criminal use and for legal protection.
As we discussed earlier that high potential and high demand exists
in the market but they have no enough buying power to purchase
the product. There is no potential threat to our company because or
product is unique and no competitor lies in the market.
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Our product is FMCG natured and we have no segmented market,
we are targeting the whole market. There is a bright future of theedible oil industry of Pakistan and market is flourishing day by day.
The main barrier in this industry is the non availability of resources
for making the edible oil. Pakistan is importing 65% of raw edible oilin order to make it refined to place it for final consumption for the
target market.
Business Description:
This is a nationwide business. Our core aim is to provide FMCGproducts to increase the value of the customers. We will not
distributors in our business because more intermediaries increase
cost and distance to the customer. We will establish retail outlets to
target our customers and make availability of the products. One
head office will be established in the hometown to deal with the
customers and suppliers of the business. Computers, internet,
facsimiles, printers, office jets are used in the office equipments and
approximately 50 employees will work in he head office to handle
the entire venture.
Product Description:
Our product is very unique in the market infect this type of product
has been never introduce in the market before. Our product is a
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cooking substance and it is first time that it is in the shape of a
cake. It is easily turned into edible oil while cooking process. It isunique in nature one cake piece is enough to fulfill the needs of a
family of a one supper.
We are introducing different sizes in our product in order to enhance
the customer value and satisfaction. The different sizes are to fulfill
the demands of consumer having different income levels.
It will give benefit to the price conscious market. They will easily
purchase their desired product and fulfill their needs and wants. It is
easy to use and risk of loss and wastage is very much reduced.
Our product contained no competitor yet in the market, so it will be
easy for us to position our product in the minds of the customer. Weare trying to make available healthy cooking substance to the low
income people as high income people buy good quality cooking oils
at high price.
Target Market:
We are targeting people from all the segments of the market. We
have no differentiated segment to target. We are targeting the
whole market. Our special focus is on the low income people. The
purchase cycle of our product will be low because one pack will
satisfies more then the expectations to the buyers.
Our product will not affect the life style of the people. Mostly the
house wives will influence to purchase the product because product
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usage is economical, low purchasing cycle and competitive price will
influence and attract the people to buy and use the product.
Competitive Analysis:
Our product is unique and has no competitor in the market.
However large brands are threats to our company but we have an
edge of uniqueness of our product. Further more our competitor is
in the market for more then 50 years
and we are entrepreneurs. We are introducing low price as compare
to our competitor. Our product nature is totally different from the
product nature of our competitor.
The strength of our competitor is its large brand name but we will
compete to its brand. They are using high advertising campaigns as
compared to us.
Production Plan:
Basically BUTTERS is a dairy product which is created by removing
the moisture and the nonfat milk solids contained in butter. It is amilk fat-based dairy product in its purest form. In terms of a
packaged good, BUTTERS is an efficient and economical means of
edible usage.
Butterfat in milk is comprised of various types of fat lipids, each
fraction having its own particular melting point. The main fraction
consists of triglycerides of fatty acids. The melting point for milk fat
is 37.C; butter oil begins to solidify at temperatures of less than
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17.C. Butter oil is commonly stored in 200 kg drums and may be
stored at low temperatures.
Composition
Anhydrous milk fat products are manufactured in two common and
distinct varieties.
There two common techniques are:
1. Anhydrous Milk Fat:
Must contain at least 99.8 percent milk fat and be made from
fresh cream or butter;
No additives (for neutralization of free fatty acids) are
permitted.
2. Anhydrous Butter oil:
Must contain at least 99.8 percent milk fat but can be made
from cream or butter of different ages and must be kept below
17 C to solidify it.
Use of alkali (an additive) to neutralize free fatty acids is
permitted.
Typical composition of BUTTERS
Fat 99.6%
Moisture 0.3%Protein 0.1%
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Note: Anhydrous milk fat or anhydrous butter oil must contain less
than 0.2 percent moisture.
Various Uses
BUTTERS possesses a light yellow color and has a clean bland
taste, free from sour, bitter, rancid, oxidized or other objectionable
flavors. Intense heat treatment is not used in the manufacturing
process. Consequently, butter oil lacks heated butter flavors. In the
dairy products industry, it is used for recombination with skimmed
milk powder to produce liquid milk and other milk products. Lecithin
in butter oil is used to produce instant milk powder. In
baking, butter oil can be sprayed on cracker surfaces to enhance
gloss and appearance. It is also used in the chocolate manufacturing
industry.
The advantages of using BUTTERS are:
Increased puff for pastries and pie shells;
Aroma and flavors enhancement in bakery items;
Control of fat bloom in chocolate candy; and
Ease of melting, pumping and mixing with other food
ingredients.
Functional Properties
Milk fat has many functional properties which makes BUTTERS a
most valuable food ingredient. The most notable are the following:
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Air incorporation
ant staling (through moisture dispersion and retention) creaming
flavors
flavor carrier
gloss
layering
shortening
Milk fat is composed of triglycerides ranging from volatile low-
melting to high-melting fractions. Fractionation of butter oil through
various separation processes is based on different methods of
crystallization of triglycerides at different temperatures. These
fractions have specific functional properties and can be used in
various food products. For example, the high melting fractions may
be used as cocoa butter substitutes or as shortening for specialty
baked
goods such as Danish pastry. Also, the low-melting fractions with a
concentration of flavors, vitamins and pigments could be used for
production of a soft butter, spread able at refrigerator temperatures.
Operational Plan:
The operations of the business will be started from the purchase or
raw material from the suppliers. Our raw material is milk. After
purchasing the raw material from the supplies it is sent to the
production department. When the production process completes
then the product is sent to the packaging section. When thepackaging of the product is completed then inventory is handed
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over to the marketing and sales department. They make the
availability of the product to the final customer.
The suppliers of our company are basically dairy milk farmers. We
have decided to have a contract with them. They will provide us
milk on the daily basis according to needs and requirements. Our
milk collectors will collect
milk from these farmers on time and reach to the production plant
in time in order to run the production and operations.
Organizational Plan:
It is a partner form of a business. It has three partners. They all
have equal responsibilities to run operate and investigate the entire
business operations.
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Supplier
CustomerSatisfactio
n
Placement
Packaging
Production
Purchases
Operational Cycle
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We have no share holders. We will meet our financial requirements
from the bank loans. Principals have full authority in the businessand they have full right to investigate, audit and operate the
business in any nature. Management background is very important
in the organizational structure. High profile and high expertise
management personnel are hired to perform the duties and roles in
the business.
We will provide full safety and security to the employees of theorganization. All the facilities will be provided to the employees of
the organization. Health insurances are given to the employees.
Benefits, incentives and target achievement allowances will be
given to the employees of the company.
The environment of the organization will be kept clean and calm in
order to increase the high work efficiency. Especially at plant bestworking environment will be provided to workers to increase their
productivity.
Organizational Structure:
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Marketing Plan:
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ChiefExecutive
Officer
ChiefOperating
Officer
ChiefMarketing
Officer
ChiefProduction
Officer
ChiefFinanceOfficer
ManagerSales &
Distribution
PurchasersAssistantsAccountant
s
GeneralManager
Sales
Officers
PrincipalEngineer
Sub
Engineers
Distribution Officer
BusinessAdvisors
QualityController
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Promotion
Our promotional campaign includes advertisements in news papers,
magazines and televisions. Yellow pages, personal selling and bill
boards techniques are also used to create awareness among the
customers; different type of incentives, bonuses will be given to
both customers and distributors in order to enhance the sales of the
product. Sponsorship of different events will be done in order to
promote our brand.
Place
Place plays an important role in the business. Due to the FMCG
nature of our product we use intensive nature of placement of our
product. We will target each and every outlet of the market. We find
dense populated sales points in order to attract more and more
customers. Because dense populated areas are more potential
market for us, it will be more beneficial for us. Commercial and
residential areas will be targeted for the placement of the product.
Price
After assuming the cost occurring on labor, factory overhead and
materials, a reasonable price is determined of a product having a
profit margin low in order to increase the sales. Low price strategy
will be practiced in order to attract the low income customers. This
low price strategy helps to increase the market share of the product.
SWOT Analysis
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Strength:
Business will have longer hours and better prices as compared
to competitors.
Discounts are available for bundle buying.
Expertise in getting new products to the market quickly.
Expertise in providing good customer service.
Online selling could be a competitive edge over similar rivals.
Customization available for individual customers.
Weakness:
New in business as compare to rivals.
Huge capital required to start business as credit is not easily
available from supplier in start.
Marketing expense in the start will be huge, to establish brand
name required lot of advertising.
Opportunity:
It is a business that can be operated throughout the year.
Sector is growing fast in the country.
Threat:
Competition is high and big companies like Dalda and Habib
will easily penetrate in this new market opportunity.
People are more conscious for pricing due to inflation and
going for discounts
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Financial Plan:
Statement of Finance Needed:
(Amount in Million)
Plant and Machinery Rs. 20
Land Rs. 10
Building Rs. 06
Office Equipment Rs. 04
Hiring cost (management & labor) Rs. 05
Start-up Inventory Rs. 05
Sales & Marketing Rs. 07
Research & Development Rs. 03
Total Start-up Finance Needed Rs. 60
Projected Balance Sheet:
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Assets
Cash Rs. 10,000,000
Accounts Receivable Rs. 500,000
Inventory Rs. 100,000
Equipment Rs. 20,000,000
Land & Building Rs. 16,000,000
Furniture Rs. 180,000
Total Assets Rs.46,780,000
Liabilities
Suppliers Payable Rs. 100,000
Accounts Payable Rs. 1,500,000
Notes Payable Rs. 12,500,000
Total Liabilities Rs. 14,100,000
Owners Equity
Draws (Rs. 1,820,000)
Paid in Capital Rs. 26,000,000
Retained Earnings Rs. 8,500,000
Total Owners Equity Rs. 110,818,000
Total Liabilities and Owners Equity Rs. 46,780,000
Projected Income Statement:
Revenues
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Net Sales Rs. 50,000,000
Total Revenues Rs.50,000,000
Expenses
Wages Expense Rs. 1,550,000
Cost of Goods Sold Rs.5,000,000
Utilities Expense Rs. 2,500,000
Supplies expense Rs. 250,000
Total Operating Expenses Rs. 9,300,000
Profit/Loss before Tax Rs.
40,700,000
Profit/Loss after Tax Rs.32,763,500
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