businessplan template 1
TRANSCRIPT
TABLE OF CONTENTS
Your business plan is divided into the following sections:
Business Overview
Description of the business_______4
Major demographic, economic,
social and cultural factors________4
Major players (suppliers,
distributors, clients)____________4
Nature of the industry___________4
Trends in the industry:__________5
Government regulations_________5
Market segment _______________8
Products & services____________8
Pricing and distribution_________8
Market trends_________________8
Implications or risk factors_______8
Competitors and type of
competition___________________9
Competitors' strengths and
weaknesses___________________9
Competitive advantage__________9
Sales & Marketing Plan
Customers___________________10
Suppliers____________________10
Advertising & promotion_______11
Pricing & distribution__________11
Customer service policy________11
Operating Plan
Business location & requirements / advantages / lease details____________12
Equipment / technology / R&D / environmental aspects________________12
Human Resources Plan
Key employees________________13 Policies & procedures_________13
Action Plan
Action plan & timetable_________14
Executive Summary
A brief description of the project, the financing required, and additional
information that help explain the business plan_______________________15
PAGE 1
APPENDIX: Financial Plan
The company’s financial performance, both historical and projected.
Includes sales, cost of goods sold, expenses, income statement,
balance sheet, cash flow budget, financial requirements,
performance indicators, and personal status.
PAGE 2
LEGAL NAME Fruto Fibre Extractors
TRADING
NAME
Fruto Fibre Extractors
BUSINESS
ADDRESS
12 Vijayamangalam RS,
Vijayamangalam,
Perundurai-638052
PHONE 04256-2485716 FAX 04256-2485713
E-MAIL [email protected]
PAGE 3
DESCRIPTION OF
THE BUSINESS
Fruto banana fibres is an Eco friendly natural fibres based industry. It is a growing
company in the field of natural fibres . The company has successfully produced
natural fibres, especially fibres extracted from banana stem. The apparel produced
are more cost effective and environmental friendly. It also absorbs less heat. The
company is supported technically by the National Research Centre for Banana –
Trichy.
MAJOR
DEMOGRAPHIC,
ECONOMIC, SOCIAL
AND CULTURAL
FACTORS
Due to the relatively highcost of synthetic fibres and health hazards, it becomes
necessary to explore natural fibres. Banana fibre is a good alternative to this.
Banana fibre is eco friendly and chemical free. It is grease proof, water and fire
resistant and totally bio-degradable.
It will accepted by all segment of people and healthy conscious people.
It is cost effective when compared to other fibres.
MAJOR PLAYERS
(suppliers, distributors,
clients)
Suppliers-The farms are around sathyamangalam which covers a nearly 50 acres
those who are cultivating bananas.
Distributors-Self help groups, Environment friendly shops, Pomphukar.
Clients-The small-scale industries those who weaving clothes using banana fibres
and producing apparels.
NATURE OF THE
INDUSTRY
There are many natural fibres emerged in the world. They range from cotton, which
dominates world fibre production, to other, specialty fibres such as cashmere which,
though produced in far smaller quantities, have particular properties that place them
in the luxury textiles market.
PAGE 4
TRENDS IN
THE INDUSTRY
Bananas were originally found in South East Asia, mainly in India. They were
brought west by Arab conquerors in 327 B.C. and moved from Asia Minor to Africa
and finally carried to the New World by the first explorers and missionaries to the
Caribbean. The mass production of bananas started in 1834 and really started
exploding in the late 1880’s. The banana plant has long been a source of fiber for
high quality textiles. In Japan, banana cultivation for clothing and household use
dates back to at least the 13th century. In the Japanese system, leaves and shoots are
cut from the plant periodically to ensure softness. In South Indian state of Tamil
Nadu after harvesting for fruit the trunk (outer layer of the shoot) is made into fine
thread used in making of flower garlands instead of thread. Banana fiber is used in
the production of banana paper. Banana paper is used in two different senses: to
refer to a paper made from the bark of the banana plant, mainly used for artistic
purposes, or paper made from banana fiber, obtained with an industrialized process
from the stem and the non-usable fruits. The paper itself can be either hand-made or
in industrial processes.
GOVERNMENT
REGULATIONS
The company is registered under
Partnership Act 1932 .
The Cottage Industry Act of 2010
The plan is simple, consisting of the following steps:
1) At the State level, a Cottage Industries numbered license is issued for a nominal fee, perhaps $10.00. This license (and its number) is used for all aspects of the Act.
2) Under the license the holder is allowed to manufacture and sell whatever product they deem to be a marketable item of their own design, or pursue a part time calling. Manufacturing shall be defined as any endeavor such as (including but not limited to) arts and crafts, woodworking, metalworking, repair shops of any nature, and or part time contract work in any trade, etc.
3) The appropriate sales tax shall be paid on all raw materials purchased for such manufacturing. Upon selling
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an item, a sales tax equal to one half of the prevailing State sales tax rate shall be charged on the full purchase price.
4) At appropriate intervals, a simple form shall be filed with the State, remitting the sales tax and 10 percent of the profits made on sales. The State shall retain the sales tax collected, and one half of the 10 percent profitsremitted, forwarding the other half of the 10 percent profits to the Federal government.
5) Simple records of materials and sales shall be kept for a period of time from the time of filing, as follows:
A) A single page for each item manufactured, showing materials used and approximate cost. A new entry shall be added each time that an increase in cost is recorded. Recorded cost shall not at any time exceed50 percent of the selling price.
B) A ledger showing items sold, date, and amount of sale, cost, profit, and tax collected, and a simple receipt showing the same issued to the purchaser. The purchaser’s receipt will also show the license number.
C) A copy of each return filed.
D) Items A) and B) shall be kept for a period of 5 years, or 3 years beyond termination of license. Item C)shall be retained for a period of 3 years from date of filing.
6) Application for license shall be notarized and contain the name of the applicant and the physical address where industry is to occur.
7) States shall declare all income derived from such industry to be exempt from any further taxation at any level. The individual States shall cap the maximum income allowed under the act. A reasonable limit might be $20,000
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in total sales, or $10,000 in before tax income.
8) Congress shall pass legislation recognizing the Cottage Industries Act, and relegate all revenues received from the individual States to the general fund. This same legislation shall declare the income derived under this act free from further federal taxes of any nature, and shall not be counted as income under any other Federal program.
PAGE 7
THE MARKET
MARKET
SEGMENT
The market segment covers the manufacturers of products from banana fibres. It
mainly concentrate on the small scale industries , cottage industries, self-help
groups. Because a wide range of products can be produced, it can enjoy good
market in both rural and urban areas. It’s a potential boost to the tourism sector and
economy as a whole since many tourists like products from banana fibre. These
products are mainly made from Art and Craft Centres, Recreation Centres and
Tourist Camps.
PRODUCTS
& SERVICES
The pseudo stem of banana is extracted to get banana fibre. The banana fibres are
dyed into many different colors.
PRICING AND
DISTRIBUTION
The pseudo stems can be procured at Rs.25 per quintal.Production cost,including
other expenditures like advertisements which costs 500 Kg of undyed banana fibre
at Rs. 62/ Kg and 500 Kg of dyed banana fibre at Rs.66/ kg
MARKET
TRENDS
There are availability of many fibres but banana fibres is one of it which is
relatively low price when comparing with other fibres and can produce many
products with this banana fibres with less cost.So it attracts many handicrafts
manufacturers.
IMPLICATIONS
OR
RISK FACTORS
Implicating this industry in the society may cause risk factor like there would not
be immediate response for this product in the society and there can be continuous
supply of rawmaterials annually.
PLANNED
RESPONSE
Identification of new products using banana fibres.
Expansion of market globally.
PAGE 8
COMPETITION
COMPETITORS
AND TYPE OF
COMPETITION
Our competitor s are other natural fibre extractors and the people who produce
various products using various other fibres.
COMPETITORS'
STRENGTHS
AND
WEAKNESSES
Our competitor strength is already they got succeeded in the market and supplying
their fibres with the producers of natural fibres products.
COMPETITIVE
ADVANTAGE
We are providing good quality eco-friendly natural fibre at a low cost when
comparing with other natural fibres.
.
PAGE 9
CUSTOMERS NAME/ADDRESS TERM
S
PRODUCT/SERVICE
1 AGS Apparels
Tirupur
30 Undyed banana fibre
2 SGM Selfhelp groups,
Thudupathi,
Perundurai
30 Dyed banana fibre
3 Marutham handloom industries,
Erode
30 Dyed banana fibre
ADDITIONAL INFORMATION
SUPPLIERS NAME/ADDRESS TERM
S
PRODUCT/SERVICE
1 Annur goundar thottam,
Mettupalayam road,
Sathyamangalam
30 Cutted banana trees
2 SKS farms,
Nasiyanur,
Erode
30 Cutted banana trees
3 Mr.Natraj
Velu goundar thottam,
Uthukuli
30 Cutted banana trees
ADDITIONAL INFORMATION
PAGE 10
ADVERTISING
& PROMOTION
Initially it is distributed among self-help groups and word-of-mouth communication.
PRICING
&
DISTRIBUTION
The pseudo stems can be procured at Rs.25 per quintal.Production cost,including other
expenditures like advertisements which costs 500 Kg of undyed banana fibre at Rs. 62/ Kg
and 500 Kg of dyed banana fibre at Rs.66/ kg
CUSTOMER
SERVICE
POLICY
The way you feel about our products is very important to us so that is why we have
included information here for convenience about our products and services.
PAGE 11
LOCATION Vijayamangalam,Perundurai,Erode.
SIZE AND CAPACITY
400 sq.feet of building capacity
ADVANTAGES OR DISADVANTAGES
Vijayamangalam is a village which is famous for weaving.
It is surrounded around villages so there is frequent supply of rawmaterials.
LEASE OR OWNERSHIP DETAILS
It is a partnership firm under the partnership Act of 1932.
EQUIPMENT,
FURNITURE &
FIXTURES
2 banana fibre extraction machine. Knife , saw and other cutting equipments , Water
tank(1500 liter capacity,500 liter capacity )
FUTURE
EXPENDITURES /
TECHNOLOGY
REQUIREMENTS
The extraction machine which costs nearly about 90000.
RESEARCH AND
DEVELOPMENT
The company is also carrying out its R&D in the extraction of fibres from more
different natural fibres.
ENVIRONMENTA
L COMPLIANCE
It doesnot cause any environmental cause to the society since it is eco-friendly
PAGE 12
KEY
EMPLOYEES
NAME OR TITLE
(Nº OF POSITIONS)
KEY
RESPONSIBILITIESQUALIFICATIONS
1 Supervisors Supervision -
2 Workers(5) Production -
3
4
ADDITIONAL INFORMATION
POLICIES & PROCEDURES
HOURS OF
OPERATIONS
We work 10 hours per day.
NUMBER OF
EMPLOYEES
5 employees who evolved in production and 1 security men.
VACATION
PROGRAM
PERFORMANCE
ASSESSMENT
The performance of the workers are assessed on the basis of their production
capacity.
TRAINING &
DEVELOPMENT
The training is given for self-help groups for the future enhancement of our business.
REMUNERATION
AND BENEFITS
They will be awarded with additional benefits like incentives if they engaged in
additional production of the products.
PAGE 13
ACTION PLAN ACTION BY WHEN
1 Going to expand our in producing innovative products
from banana fibre By next year
2 Want to expand the production capacity with
Modernised equipments
Within
2 years
3
4
5
6
7
ADDITIONAL INFORMATION
PAGE 14
OBJECTIVES /
DESCRIPTION OF
THE PROJECT
Banana fibre was a chance discovery which led to the usage of ‘Vazhai Naaru’. Raw
fibre is cleaned by artisans through a simple bleaching method. Its fat content is then
removed. Each strand of the fibre is taken out and woven into fabrics after being
dyed in various colours. Banana fibre has an affinity to colours that makes it easier to
weave attractive designs from it. The process maybe cumbersome but the six yard
wonders fabricated from this fibre is very comfortable and in much demand.
BUSINESS
HISTORY /
NATURE OF
OPERATIONS
As we all living in a competitive world, new inventions and creation are arising day
by day but still all these developments concern to certain sector of the people. Due to
the increases of Chemical Industries and Multi National Companies, our own
traditional industries are fading.
PRODUCTS AND
SERVICES
The pseudo stems can be procured at Rs.25 per quintal.Production cost,including
other expenditures like advertisements which costs 500 Kg of undyed banana fibre
at Rs. 62/ Kg and 500 Kg of dyed banana fibre at Rs.66/ kg
PROJECT
FINANCING
The project financing is done by all our partners itself which we contribute equally.
MANAGEMENT /
ADVISORSDirector 1
C.Prabhu(Managing Director)
Director 2
K.Prabhakaran
RISK
ASSESSMENT &
CONTINGENCY
PLAN
Since it is new innovative product emerging into the industry there may be risk in
case of acceptance of the product in the industry.
PAGE 15
FINANCIAL
INSTITUTION
Financial institution which involved in financial assistance of our business is
North Eastern Development Finance Corporation Limited (NEDFi)
SUPPORTING
DOCUMENTS
The supporting documents for the financial assistance for our business is our land
document.
PAGE 16
APPENDIX
FINANCIAL PLAN
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