Emmanuel Adewole

6/11/2020 THE GREENCART FARMS AND AGRO-ALLIED LIMITED COMPANY Business Plan ALARAPE DAMILARE FOUNDER AND MANAGING DIRECTOR Table of Contents NON-DISCLOSURE AND CONFIDENTIALITY AGREEMENT ............................................ 2 EXECUTIVE SUMMARY ..................................................................................................................... 3 COMPANY SUMMARY ........................................................................................................................ 9 PRODUCT AND SERVICES ............................................................................................................. 12 MARKET ANALYSIS .......................................................................................................................... 14 STRATEGY AND IMPLEMENTATION ........................................................................................ 20 ORGANIZATION AND MANAGEMENT ..................................................................................... 25 WEB PLAN SUMMARY ..................................................................................................................... 28 FINANCIAL SUMMARY .................................................................................................................... 29 1 NON-DISCLOSURE AND CONFIDENTIALITY AGREEMENT The undersigned, hereby agrees that all financial and other information that is, has, and will receive concerning Greencart Farms is confidential and will not be disclosed to any other individual or entity without prior written consent. The Information shall remain the property of Greencart farms and shall be returned to the Greencart farms promptly at its request together with all copies made thereof. It is acknowledged by reader that information to be furnished in this business 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 Greencart Farms. Recipient acknowledges that no remedy of law may be adequate to compensate Greencart Farms for a violation of this Agreement and Recipient hereby agrees that in addition to any other legal or other rights that may be available in the event of a breach hereunder, Greencart Farms may seek equitable relief to enforce this agreement in any court of competent jurisdiction. __________________ ____________________ Date Signature of Recipient ___________________________ Name of Recipient This is a business plan. It does not imply an offering of securities. 2 EXECUTIVE SUMMARY The Greencart Farms and Agro Allied Limited Company is a multipurpose agricultural establishment specializing on food cultivation, Livestock farming, agro-business product distribution, food delivery and agricultural education services. The Greencart Farms is established in Nigeria with headquarters in Ibadan, Oyo State, with the responsibility of providing high quality breed of food crops and livestock products in diverse and dynamic ways at the fastest and most-friendly means to every local down town area. Greencart Farms is working hard to become a leading producer of organic food products and agro-allied services in the agricultural and food sector of the Nigerian economy. By leveraging a well thought out business plan and processes executed by a skilled management team with hands-on experience, Greencart Farms will generate over 9 million by year three in sales. With the growing population of the Nigerian and African community, and the recent eating lifestyle, the Greencart Farms will thrive on offering a well packaged solution to a long-term problem of the community with our one-for-all business strategy. The picture of our company is based on three concepts, feeding the African populace with organic, healthy and nutritional foods, revolutionizing local agriculture business, while delivering all our services and products at the fastest rate. We will have a comprehensive marketing, advertising, and promotion campaign that will maximize word-of-mouth marketing, network marketing and will consist of broadcasting channels, printed materials, social media, billboards and discounts. Intense market research, feasibility studies, and target market evaluation suggest that the Greencart Farms is ideally situated to cater to an unfulfilled market segment. Moreover years of operational and marketing experience have been organized and documented to create a comprehensive blueprint for success. Products and Services Greencart farms and Agro Allied Limited Company will be a world class commercial organic farm based in Africa that is committed to cultivating improved organic crops, livestock, and offering agro-business services such as packaging and deliveries, training, and consultation in the Nigerian and the global market. We are in business to produce organic and healthy food and raw materials for people and food-related commercial industries in massive quantities. The Market Nigeria’s agriculture contribution to GDP makes it the largest sector in the country. Crop production accounts for a huge chunk of activities in the sector representing 88% of total industry size with livestock, forestry and fishing accounting for the balance of 12%. The sector achieved GDP of US$113.64 billion in 2014, the highest in the last five years (2013 – 2017). Since then, the sector’s contribution has been declining due to low agriculture yields, conflicts such as terrorism and the herdsmen crisis, as well as the 3 impact of climate change. Agriculture contribution to Nigeria’s GDP dropped by 31% from US$113.64 billion in 2013 to US$78.45 billion in 2017. There are currently national bills promoting and supporting local agro-product promotion alongside massive business input from farmers and external forces which aids the growth of the Nigerian Agricultural sector for the coming years. The agricultural sector is bound to grow due to the massive population explosion that will be witnessed in Nigeria and Africa at large over the next 30 years. This positions us for an advantage in the Nigerian and African consumer market. Entry into this market isn’t easy; the industry is highly competitive, with periodic overcapacity, low margins, and low entry/exit barriers. In addition, there are a large number of substitutes, and the suppliers to this market have a great deal of power. So, we have carefully planned out our entry strategy with much explanation justice in the strategy section of the plan, with consideration for the suppliers and every form of market controller. Unique Selling Proposition In today’s highly competitive environment, it is vital to differentiate ourselves from every other agro-business in the country. We will be the premier farm and agrocompany specializing in relating with all the business chains in the agricultural sector. We will be an agricultural company that sees to the food operation chain from the very first stage of production to the delivery, while representing our brand in every other farms around us. We will do this while recognizing that the concept of food upon our company is formed is mostly perceived in relations to family. So, we will deliver our services through a well packaged family theme as we incorporate all our workers, partners, and customers into one big family and community. In short, the Greencart Farms will be a food community where people from all spheres of life can enjoy organic and healthy food choices as well as do so in a loving and family setting. Apart from offering variety and forms of foods and agro-business products, we offer convenient service to encourage frequent brand interaction through timely and excellent delivery service, consultation and, training and mentoring sessions. We emphasize on raising awareness of healthy eating habit and spreading the message through a profitable and sustainable business. Pricing There are two kinds of companies, those that work to try to charge more and those that work to acquire more customers and brand loyalist; we will be the second. The company has planned to offer its products and at a cost-friendly price than that of its competitors. This will generate a great customer database, while yielding higher revenue at the longrun, which is the ultimate chain of our operations. 4 Our selling price will be set at a relatively low margin. We will confine our operating expenses at a reasonable range by employing adequate but not excessive staff, fully maximizing word-of-mouth marketing, encourage resourceful partnerships, and sometimes utilizing free advertising platforms in order to achieve this through the community and membership system, we will be able to retain existing customers as this is vital to us in the long run. Management The Greencart Farms and Agro Allied Limited Company will be led by Alarape Damilare. Damilare brings a wealth of agro business and project management skills to the company. While working over the past few years, Damilare has successfully executed diverse agricultural projects ranging from crop production to animal husbandry. He possesses a Bachelor’s degree in Agriculture form the Obafemi Awolowo University, Ileife in Nigeria. Having a sound operational plan allows the management to focus on building sales and wide customer base rather than just profit. The managing partners have an extremely high degree of confidence that the systems and controls incorporated in the business plan will yield a meaningful calculated return for a given sales of volume. Proven marketing techniques and operational systems will allow management to be proactive rather than reactive to the conditions and obstacles associated with the starting processes of a new food company. Financial Plan The Greencart Farms is no longer a new business with no financial experience about agro-business in Nigeria. Over the last few years, we have worked out and understood the major bugs of production and distribution. Additionally, we are hungry to succeed with our integration of new age agricultural practices and expansion objectives. To finance our expansion and full-time production, we need to finance a long list of expenses and asset acquisition. To that end, we are seeking an investment of 5 million Naira, having projected sales revenue and net profit conservatively to be respectively 3.8 million and 1.4 million in the first year, 6.5 million and 3.7 million in the second year, rising to 9 million and 5.5 million in the third year. 5 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Year 1 Year 2 Revenue Year 3 Net Profit Keys to Success Greencart Farms will adhere to 9 keys that will be instrumental in its success: Strict Financial Controls: We will create procedures, policies, and means to monitor and control the direction, allocation, and usage of our financial resources. This will be done through thorough budgeting, projection, timely updating, and overlap and anomaly detection. Healthy Food Choices: We will continually promote healthy food products by ensuring all our foods meet up with health standards and organically certified. Our foods will be pesticides free, chemical free, and with no preservatives. Superlative Communication: We will keep our members current on all aspects of the farm through monthly newsletters and website updates. We will also promote members feedback and input to ensure the development of super business processes. Timely Delivery Services: Greencart Farms will establish weekly delivery times that are convenient for our customers. This saves customers time and cost, ensuring customer’s maximum satisfaction, while also eliminating wastage in the business. Convenience is highly important in today’s market, and we need to be close to our customers. Excellent leadership and People Management: We will implement an excellent leadership trait in every of our business processes, making every member of the company understand their roles and importance through transparent and exemplary leadership, which will help improve our relationship with customers, suppliers, partners and merchants. Improved Crop breeds: We will dominate the agro product market with our improved crop breeds that give customers more satisfaction than the common crop products, for a reasonable price. 6 Excellent Services and Fine reputation: We will promote goodwill of the company to achieve word-of-mouth advertising through consistent heartfelt services at our farms, stores and delivery points. Quality Farm Management: There is a tested and proven management system established to drive the goals and objectives of our farm. This will ensure wastage reduction and maximum efficiency of tools, labor and land. Excellent Marketing Program: We will constantly update our marketing efforts to get ahead of the ever competitive market, in order to possess a fair share of the end consumers in the agriculture business chain. Mission Statement To flood every nook and crannies of Africa with our healthy food products by providing improved crop breeds and quality services at fair prices while exceeding customer’s expectations. Vision Statement To become a household name in the commercial healthy farm products and food packaging brand not just in Nigeria, but also on the global stage. Objectives The Greencart Farms has identified several objectives for the company: Become a leading supplier of organic and healthy food products in Nigeria. Attain sustainable profitability in few years. Exciting Return on Investments for founder-owner with buoyant income multiplication possibilities. Work-life balance for founders, managers and employees. Check List Business Name Availability check: Completed/Not Business Incorporation: Completed or Not Opening of Corporate Bank Accounts: Completed/Not Opening Online Payment Platforms: In Progress Application for business license and permit: In progress Leasing of farm land and preparing the farm land in Ogun State: In progress Conducting Feasibility Studies: Completed/Not Start–up Capital Generation: In progress Business Plan Writing: Completed Drafting of Employee’s Handbook: Not done 7 Design of The Company’s Logo: Completed Graphic Design and Printing of Packaging, Marketing/Promotional Materials: Not done Recruitment of employees: In progress Building/construction of farm house, fence, security post, et al: Not Done Purchase of the needed farm cultivating tools, machines and equipment: In progress Creating Official Website for the Company: In Progress Brand Awareness: In progress Establishing business relationship with vendors and key players in the industry (agriculture farm produce merchants, seedling suppliers and transport/haulage companies, hotels, restaurants, and grocery stores et al): In Progress Milestones Cash flow self-sufficiency by the end of the first twenty-four months. Local presence and availability in nothing less than 4 states by the end of thirty months. Repay all forms of debt from original financing by the end of a twenty-six months duration. Sales of over three million naira in the first year. Sales of more than nine million by the end of the third year. 8 COMPANY SUMMARY What is The Greencart farms? The Greencart Farms and Agro Allied Limited Company is a multipurpose agricultural establishment specializing on food cultivation, Livestock farming, agro-business product distribution, food delivery and agricultural education services. The Greencart Farms is established in Nigeria with headquarters in Ibadan, Oyo State, with the responsibility of providing high quality breed of food crops and livestock products in diverse and dynamic ways at the fastest and most-friendly means to every local down town area. Variety of Products and services We will serve the Nigerian and African population at large with several agriculture products, food products, and agro-allied services. We will offer most of our customers a one-stop solution for all their agriculture and food needs, which will provide customers, clients and end consumers with the option of feeding healthy only on our brand. We will also constantly improve our services to fit the growing African market, which will enable us to evolve with the consumer’s market. Convenience We believe in building a customer-centric brand that is focused on customer’s needs and satisfaction through industry-leading convenience services. We will ensure this though a digital integration and delivery services to get close to our customers rather they moving long distance to reach us. Our brick and mortar store will be open six times in a week, while our online store will functions and serve customers 24/7. We will also provide a friendly customer-support and consultancy service to serve our customers better while retaining them as brand loyalists. Budget-Friendly Theme We will establish a budget-friendly brand that promotes healthy eating for all. We will serve more people while focusing on building a large customer database rather than instant profit, which in turns generate massive revenues which translates to long-term profitability and sustainability. Healthy Eating Promotion We will relentlessly promote fresh organic food products through a successful brand which cares and relates with the end consumers. This in conjunction with convenience and our improved crop breeds will encourage customers to conduct regular transactions with our brand. Expansion Summary Expansion costs and required financing are shown on the following table. Expansion Requirements 9 Expansion Expenses (Naira) Incorporation 100,000 Insurance covers 300,000 Office & Stationery. 50,000 Land Lease & Acquisition (2 acres) 400,000 Land Clearing and Preparation 150,000 Seedling and Livestock Acquisition 500,000 Agro-products for re-sale 200,000 Working tools and equipment 250,000 Security and Fencing 150,000 Operational Cost for first 6 months (Transport, fuel, etc.) 200,000 Digital Presence launch 100,000 Workers salary and wages (6 months) 700,000 Brand transport and mobility (Fuel Inclusive) 550,000 Animal Feeds (6 months) 400,000 Water Resources 100,000 Farm Structures 400,000 PR, Marketing and branding 150,000 General Maintenance and Miscellaneous 100,000 Cash required 200,000 Total Requirements 5,000,000 Our farms and outlets will be open 6 days a week with hours as follows: Monday 9:00 am – 5:00 pm Tuesday 9:00 am – 5:00 pm 10 Wednesday 9:00 am – 5:00 pm Thursday 9:00 am – 5:00 pm Friday 9:00 am – 5:00 pm Saturday 9:00 am – 6:00 pm Company Ownership The Greencart is a strategically established as a limited liability company to generate adequate financing and operational strength for its expansion and brand objectives. The company’s largest shares is currently owned by the Founder; Alarape Damilare, with openness to external investors, corporate organizations who are interested in becoming stakeholders and business partners. Legal Form The Greencart farms will be registered with the Corporate Affairs Commission of Nigeria as a limited liability company with full capability to take as much as stakeholders as desired. 11 PRODUCT AND SERVICES Greencart farms and Agro Allied Limited Company will be a world class commercial organic farm based in Africa that is committed to cultivating improved organic crops, livestock, and offering agri-business services such as packaging and deliveries, training, and consultation in the Nigerian and the global market. We are in business to produce organic and healthy food and raw materials for people and food-related commercial industries in massive quantities. This will also be supported by our future objective of operating a standard organic food processing and packaging as a complimentary business to boost our sales, reduce product wastage, increase revenue, and promote brand to the end consumers. We are into agri-business to create wealth, and we will ensure that we do all that is permitted by the law of Nigeria and every other African countries we reach, to achieve our business goals and objectives. These are the following areas we will concentrate on in our commercial organic farms, which is subject to addition over the years; Product Lines Agriculture: This will serve as our major source of revenue which will come majorly from the largest percentage of our target market. We will offer food products and livestock to agricultural shops and stores all over the nation, and as well through our brand outlets which will be strategically placed to cater for the local market in downtown areas. Agro-allied Products: Our Agro-allied product catalogue will serve neighboring farmers and generally rural farmers around. We will provide relatively cheap agro-allied products for local farmers to boost their production. This will include products like improved seeds, fertilizers, improved and cross-breed livestock among many others. Cereals: We will consistently serve feed mills, retailers, and companies that base on cereals raw materials for their production. We will cultivate a special cereal product catalogue that will cater for this industry. These products include maize, sorghum, wheat, etc. Animal husbandry: We will offer an improved livestock and meat market for the general public through business channels like the local markets, restaurants, bars and clubs, individuals, partnered and registered distributors, retailers, meat labs, frozen food stores, and ceremonial functions. Farm consultancy: There is currently a growing market for agriculture consultancy in the country. Many elites, rich and educated fellows are interested in the agriculture business with little or no technical knowledge. We will leverage on this market by providing a top notch agriculture consultancy service to the general public. We will be available to answer all questions on agriculture through our dedicated and assigned staffs to each business or individual in need of consultation. Training/mentorship: We will constantly train and mentor people in our line pf business which will serve majorly as our Corporate Service responsibility. This will be focused on youths and graduates that are passionate about agriculture. This service 12 catalogue will be used majorly to promote our brand locally, and as well train adequate staffs that can help grow the business. This service will be further propagated through our seasonal internship programs. Future Services The Greencart Farms also has plans to venture into fruit juice production, packaging and distribution in the nearest future. We will also develop with the market taste, providing needed products and services with time. This could potentially become a large portion of gross sales. We are targeting the end of year 2 and at that point, a sales agent would be hired to directly market the products for daily delivery or catered functions. 13 MARKET ANALYSIS Industry Overview In spite of the Nigerian oil boom, agriculture remains the base of the Nigerian economy, providing the main source of livelihood for most Nigerians. The sector faces many challenges, notably an outdated land tenure system that constrains access to land (1.8 ha/farming household), a very low level of irrigation development (less than 1 percent of cropped land under irrigation), limited adoption of research findings and technologies, high cost of farm inputs, poor access to credit, inefficient fertilizer procurement and distribution, inadequate storage facilities and poor access to markets have all combined to keep agricultural productivity low (average of 1.2 metric tons of cereals/ha) with high postharvest losses and waste. Nigeria’s agriculture contribution to GDP makes it the largest sector in the country. Crop production accounts for a huge chunk of activities in the sector representing 88% of total industry size with livestock, forestry and fishing accounting for the balance of 12%. The sector achieved GDP of US$113.64 billion in 2014, the highest in recent years. Since then, the sector’s contribution has been declining due to low agriculture yields, conflicts such as terrorism and the herdsmen crisis, as well as the impact of climate change. Agriculture contribution to Nigeria’s GDP dropped by 31% from US$113.64 billion in 2013 to US$78.45 billion in 2017. Even though agriculture still remains the largest sector of the Nigerian economy and employs two-thirds of the entire labor force, the production hurdles have significantly stifled the performance of the sector. Over the past 20 years, value-added per capita in agriculture has risen by less than 1 percent annually. It is estimated that Nigeria has lost USD 10 billion in annual export opportunity from groundnut, palm oil, cocoa and cotton alone due to continuous decline in the production of those commodities. Food (crop) production increases have not kept pace with population growth, resulting in rising food imports and declining levels of national food self-sufficiency (FMARD, 2008). Livestock development is an important component of Nigeria agriculture with abundant social and economic potentials. About 60 percent of the ruminant livestock population is found in the country’s semi-arid zone and mostly managed by pastoralists. Domestic production of livestock products is far below the national demand, resulting in large imports of livestock and livestock products. Except for eggs, the domestic production of animal products is less than half the demand for beef mutton and goat meat, while for milk and pork products it is less than quarter the demand (NV20:2020, 2009). About 30 percent of live animals slaughtered in Nigeria are imported from neighboring countries. There are quite many challenges facing livestock development in Nigeria, which requires urgent attention and policies. However, the market is ripe for opportunity-seeking farmers who are ready to leverage on the supply and demand gap. The livestock sector can create new opportunities for farmers and provide more affordable and healthier diets for future generations. 14 Industry Challenges Outdated land tenure system Low irrigation development Limited adoption of research findings and technologies High cost of farm inputs Poor access to finance and support Inefficient fertilizer procurement and distribution Inadequate agricultural extension services Poor transportation network Consistent inflation Rain-fed agriculture reliance Smallholder land holding Low productivity due to poor crop breeds Poor access to markets Inadequate storage facilities Terrorism and Insecurity Market Tests For the past 3 years, the founder of the Greencart Farms has been in the agro-business sector, with lots of market experiences up his sleeve. This experience has helped him create a standard and unique business model of a one-stop-shop for agricultural needs, having studied the buying pattern in the market through personal open-field experience. He has over time built a lasting relationship with many policy makers, customers, merchants, suppliers, and major stakeholders in the agricultural sector in the Nigerian economy. The Greencart Farms has been subjected to many industrial and commercial tests, over the years, which has helped developed a working model for the farm. The Greencart Farms has been tested for sustainability, productivity, profitability, recognition and market acceptance, and as well as qualifying to beat basic industrial challenges in the country. Market Trends Locally sourced meats and seafood, Locally grown produce, Organic Food products Chemical-free and preservative-free foods Locally made and distributed agro-products Cash crops for export Fresh Fruit Sales and processing Health related processed foods Local market food sourcing Stores and malls shopping 15 Target Market We have the following main markets; Geographically: Lagos; 40% Oyo State; 7% Ogun State; 8% Other Southwestern States 10% South Southern States 13% South Eastern States 12% Neighboring African countries 10% TARGET MARKET African countries South-east Lagos South-south Southwest Ogun Oyo Demographically Grocery Stores Supermarkets Neighboring and rural farmers Feed mills, companies and retailers of cereals Local shopping advocates Eco-conscious and fresh food seekers Restaurants and Bars Meat labs and Frozen food stores Hotels, Motels and Guest Houses Local Meat Markets and retailers Outdoor caterers Ignorant farmers Industry passionate youths. 16 Each of these market segments consists of people who either work in the downtown area or flow through this area during the normal work week and weekends. As such, there will be an undetermined percentage of each market that will be seeking fresh foods and meats, agro-products for their local and home farms, consultancy, delivery services, and trainings; all in a friendly environment. Positioning Consumers believe that organic meals are healthier and more nutritional than chemically processed foods. There is currently a growing market for fresh foods in Nigeria, as more people in the country stay woke to their health status. We will strategically position ourselves to serve this growing market by offering a one-stop-shop solution and delivery services that helps consumers eat fresh foods from the farm right after the harvest without any preservatives or chemically dangerous elements. There is also a growing need for agricultural consultancy services in Nigeria, as more people are willing and eager to venture into the industry without adequate knowledge. We will position ourselves as the friend of individuals and organizations who are interested in venturing into the agricultural sector, by offering training and early free consultant services. There is a current market for agro products needed by rural farmers and the growing population of home farmers in every downtown area. We will position ourselves by offering frequent promotional offers, and consultancy alongside the sales to present our brand as a, agricultural expert sent to help drive people’s agricultural desires. Market Growth There are no specific indication of market growth in this pulverized and diffused market due to low availability of statistical data for the local food industry in Nigeria. However, studies shows that there is a current boom in our Target market’s population index, and an upsurge in demand for organic foods and agro-allied products and services due to upshot interest in agriculture. Competition and Buying Patterns Location is critical to success. Proximity to end consumers is very important in the industry. So also is convenience in the cities and developing regions. Pricing in the market is very sensitive. It should never be too high in order to keep the largest percentage of the Nigerian populace, and never too low because many target customers mistrust ridiculously low price in food and any product business. 17 Quality and breed of food matters. When the price isn’t too high, and the food is of high quality, then there is a guaranteed growth through repeat business. Focus is an advantage; focusing on locally available foods will draw customers from some competitors. Neighboring Competitions Naffins farm, ogunniya area, egbeda, Ibadan, Oyo Nigeria Hiaw farms, Ido Local govt. Ibadan, Oyo Debowale farms limited, Olorunsogo idiaba, Abeokuta, ogun Bankinson and sow limited. 2, opeja Road, along old igboora road, Ogun state Obasanjo farms nig limited Wasimi farms Our Competitive Advantage It is easier to find entrepreneurs and opportunist flocking towards an industry that is known to generate consistent income, which is why there are more farmers in Nigeria than any other employing sector. There are hundreds of thousands farms in Nigeria as of today, as many local households are known to possess a small farm or family farmland. These goes to show that there are an appreciable number of farmers both subsistence and commercial in Nigeria. However, this doesn’t translate yo stiff competition in the industry, since a larger percentage of the farms are subsistence in nature with little productivity and economic impact. The Greencart Farms and agro allied Limited company is fully aware that there are competitions when it comes to the agricultural sector all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in Nigeria and in other parts of Africa. We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable organic farming processes that can help us sell our organic farm produce at competitive prices, good network and excellent relationship management. Another competitive advantage that we are bringing to the industry is that we have designed our business in such a way that we will operate an all – round standard commercial organic farm that will be involved in organic livestock farming. With this, we will be able to take advantage of all the available opportunities within the industry. Lastly, our employees will be well taken care of and their welfare package will be among the best within our category in the industry meaning that they will be more than willing 18 to build the business with us, help deliver our set goals and achieve all our aims and objectives. Business Participants The food industry is "pulverized", which means, it consists of an almost infinite number of operators – from small establishment to mega companies, to retailers and vendors, suppliers, and local farmers for strictly family provision. The industry is overloaded and full of diverse business participants as it is the highest employing sector in the country. 19 STRATEGY AND IMPLEMENTATION The main thrust of strategy is to lever our ideal location and specialized product and service options into higher profits through sales volume, budget-friendly prices and larger customer base. We will strategically position ourselves to serve the market by offering a one-stop-shop solution and delivery services that helps consumers eat fresh foods from the farm right after the harvest without any preservatives or chemically dangerous elements. We will position ourselves as the friend of individuals and organizations who are interested in venturing into the agricultural sector, by offering training and early free consultant services. We will also position ourselves by offering frequent promotional offers, and consultancy alongside the sales to present our brand as a, agricultural expert sent to help drive people’s agricultural desires. At the Greencart Farms, we believe that our outlets, delivery channel and production stage will provide job opportunities both for the entry level applicant as well as for the part-time worker searching for flexibly in job hours. We will pay our employees a competitive salary and believe we can do so by meticulously keeping our records, including weekly review of the Prime Cost Report, and utilize Cost Accounting Systems, to prevent inventory shortfalls. We will be proactive with our employees by scheduling regular performance reviews, and provide bonuses and other incentives to motivate our staff. We will also provide our employees with the most current training programs regarding best agricultural practices and safe food handling. We will also remain current with current industry marketing trends. In addition to a website with our menu, map and driving directions, we will also have a Facebook page and utilize other social media such as Twitter, WhatsApp etc. We will offer a loyalty club and special promotional offers which recent reports indicate increases earnings as much as 15%. Marketing Strategy and Positioning We realize the success of the Greencart Farms will have to be achieved by doing more than providing organic foods and agro-allied products and services. We will utilize a marketing plan to build customer traffic. At the Greencart Farms we will continually strive to win more customers by being proactive rather than reactive in our marketing efforts and stay current with popular industry trends. We will achieve these goals by using the following: We will build a large customer base, continually generate and convert leads through diverse institutions, local groups, online participants, and rural communities. We will constantly offer a loyalty program and promotional offers to take advantage of repeat business and seasonal buying respectively. We will as well promote an active local workteam to the local community through sponsorships, participations, contributions, donations, and trainings. We will strive to build a lasting relationship with businesses 20 over time, generating large buying customers through product and service sampling and roll-out proposals. Promotion Strategy Mailers and flyers will be used to advertise sales promotions that will help bring in customers. Major news platforms will be used to advertise and promote our product. The use of social media to create anticipation, and awareness will also be fully employed in order to get the technological inclined ones which are mostly youths. One fortunate aspect of the food business is that once a potential customer steps into the establishment, the chances of purchase are very high. So the promotional plan will be to draw and engage potential customers and then seek to provide them with a superior purchase experience. Pricing Strategy At the Greencart Farms, cost accounting is important, since the profitability of individual products can vary significantly and will initially determine the cost of the menu items. We will take advantage of our excellent credit terms with our suppliers and will also update our menu to take advantage of seasonality for example in local produced items. We will also closely monitor the Prime Cost Report which focuses on the controllable expenses of Cost of Goods Sold and Labour. As a new start-up we can currently control employee cost by hiring committed people who will work for low and reduced wages. The Nigerian agricultural sector is mostly characterized by unskilled and cheap labor, which we are strategically going to leverage on. Our pricing strategy will focus on providing high quality, healthy foods, top-notch services and agro-allied products in a timely delivery system. Because of this, we expect to be able to charge averagely for our products compared to other stores, as long as the customers agree that the products and services are top-notch, hereby generating larger customer base which aids expansion, revenue and gross-profit generation. Sales Strategy It will be our goal to provide healthy-focused products and agro-boosting products and services with superior customer experience. Training programs will include teaching materials to train our employees about service attitudes, customer perception and how to handle complaints. The Management team will conduct periodic staff meetings intended to review policy, increase guest satisfaction and to keep a general line of communication between staff and management. All complaints will be acknowledged by the staff and referred to management. Programs will be in place for all types of complaints. More serious complaints will be documented and kept on file. Customer feedback will be accomplished by customer surveys or the use of mystery shoppers. 21 We need to offer fast service at peak times. The key is a good product offering and delivery balance, so that we don’t over keep products that can lead to gross wastage or reduce the freshness quality before arriving the market. Our delivery lines have to keep moving and moving fast. Our most important sales strategy is develop repeat business. Every customer who comes in contact with our brand must want to do continuous transactions with us, as well as recommend us. To that end, we will offer some of the more established sales strategies such as discount cards, promo coupons, special seasons and days offering and a consistently updated product menu. We intend to keep accurate track of what types of products sell well and to create a program of customer feedback through surveys. With this information we will be able to streamline our product line to match the local tastes and encourage more people to buy our brand. Finally we have a home/business delivery system that will allow for the dropping off of products within 6 hours after the order is made to insure the best possible freshness and organic experience and high customer churn rate. Sales Forecast The sales forecast indicates that growth will be slow and steady. Growth will be slow because of the time and effort needed to develop the customer database. Our production won’t be the slowing element, but external market factors. There are a few risks that could have a negative impact on sales. They are weather, poor growing season. Pest and disease invasion; which we have developed a planting system to combat, and lastly market inflation and economic instability. The following table and charts illustrate the sales forecast. We're sure this is a manageable forecast. Sales Year 1 (Naira) Year 2 (Naira) Year 3 (Naira) Crop Lines 1,850,000 2,700,000 3,400,000 Livestock 1,200,000 2,000,000 2,500,000 Agro-allied 450,000 1,100,000 2,000,000 Consultancy 200,000 400,000 500,000 Future Product Nil 100,000 300,000 Training & Mentorship 100,000 200,000 300,000 TOTAL 3,800,000 6,500,000 9,000,000 22 Sales Forecast- Year 1 Crop Lines Year 2 Livestock Agro-allied Year 3 Consultancy Future product Training Competitive Edge Our most important competitive edge is the diversity in our product and service offering coupled with budget friendly-pricing system. In addition we are closer to our potential customers than any other through our timely delivery and digital transaction services. Our competitive edge is in the people. We also truly believe that your business is not only as good as your products but the quality of your staff as well. Our staff is a reflection of us. Our long term goal is to hire team members that are truly hand selected and have the same honest to goodness family values we do. Unique Selling Proposition In today’s highly competitive environment, it is vital to differentiate ourselves from every other agro-business in the country. We will be the premier farm and agrocompany specializing in relating with all the business chains in the agricultural sector. We will be an agricultural company that sees to the food operation chain from the very first stage of production to the delivery, while representing our brand in every other farms around us. We will do this while recognizing that the concept of food upon our company is formed is mostly perceived in relations to family. So, we will deliver our services through a well packaged family theme as we incorporate all our workers, partners, and customers into one big family and community. In short, the Greencart Farms will be a food community where people from all spheres of life can enjoy organic and healthy food choices as well as do so in a loving and family setting. Apart from offering variety and forms of foods and agro-business products, we offer convenient service to encourage frequent brand interaction through timely and excellent delivery service, consultation and, training and mentoring sessions. We emphasize on 23 raising awareness of healthy eating habit and spreading the message through a profitable and sustainable business. Current Milestones Milestone Bar 9 million sales 3Million sales Debt repayment Local presence-4 states Cashflow sufficiency 0 5 10 Column2 15 Column1 20 25 30 35 40 Months Business Strengths We are committed to produce quality food crops on our farms at affordable prices and through our search quality department, we better the lives of rural farmers. We are able to give really good customer care through our online platform as the current small amount of work mean we have quality of time to devote to devote to ……… Business Opportunities Governmental and national attention and support towards the agricultural sector. Current governmental policies fostering and encouraging SMEs Easy adaptation to technical knowledge and technology opportunities in the market. 24 ORGANIZATION AND MANAGEMENT The Greencart Farms is still a growing business in need of few, effective and dedicated employees to work with – farmers, growers, laborers, delivery personnel, and sales rep. We assume 10 workers total; the founding team and four growers and farmers, two laborers, one delivery personnel, one security personnel, and one sales and marketing rep. The Management team has adopted an effective interview process designed to staff the company with highly qualified people for each position. Each applicant will be rated and evaluated according to a pre-defined set of standards designed for each position. Background checks will be utilized for designated positions as recruiting effort will be based on referrals. The founding team will be in attendance during normal business hours. In addition, specific other employees will have supervisory roles for times when the founding team is not able to be present. Personnel Plan Founder: The founder will oversee all operations and transactions of the company as the Chief executive officer and the managing director of the farm. He will oversee operations including vendor and merchant relations, accounting, and agricultural process responsibilities. He will supervise and schedule plant production, livestock acquisition, feeding and treatment schedule, harvesting system and schedules, crop selection, fertilizer selection and application schedules, irrigation system development, and pest control. He will also see to sales, marketing and delivery of the brand’s products and services. Growers: The founder will make use of the assistance of four full-time growers and Livestock farmers in order to allow him drive company goals. Laborers: The laborer positions will be seasonal as there is more work required in some certain seasons, however, there will be a laborer on staff throughout the year. Some of their job description is to till, distribute compost, plant collections, harvest, move farm equipment and feeds, and assist generally with other heavy farm projects. Delivery Personnel: The delivery personnel will be fully responsible for delivery of our final products, maintaining our transport channel under the oversight of the founding team. Sales and marketing Rep: The sales and marketing representative will help propagate the brand’s image, boost our product sales, and work alongside the founding team to build a quality business portfolio. Personnel Plan Year 1 Year 2 Year 3 Founder N60,000 N150,000 N300,000 Growers and Farmers N500,000 N710,000 N1,100,000 25 Laborers N260,000 N420,000 N700,000 Delivery Personnel N240,000 N360,000 N500,000 Sales and Marketing Rep N140,000 N260,000 N400,000 Total People 10 15 25 Total Payroll N1,200,000 1,900,000 3,000,000 Payroll Representation- Founder Growers & Farmers Laborers Year 1 Year 2 Delivery Personnel Sales & Mkt Rep Year 3 Management Controls The Management team will ensure the practice of sound management procedures in order to control costs, insure quality of product and provide friendly customer service. The following systems will be used by management: Order Guide: We will use an item specific order guide to track order history and maintain designated levels of product in inventory. Weekly Inventory: Management will conduct a weekly inventory to determine valuation for use in the preparation of weekly profit and loss reports. Daily Inventory Tracking: Daily inventory will be taken on specific items. Movement will be compared to sales data to ensure designated products have been properly accounted for. 26 Staff Monitoring: The dedication and efficiency of our staff will be monitored often to ensure maximum efficiency and Return on Investment on every staff. Updated product and Service Catalog: The management will ensure that our product and services list stay updated and monitored 27 WEB PLAN SUMMARY In this age of communication more and more customers look to a web platform for information and assistance in purchasing products and getting the best satisfactory services. We will be part of that great communication tool used by everyone every day in order to drive home our set vision. Website Marketing Strategy Marketing in an Internet retail business depends on recognition for expertise. It starts with our existing store front customer base, informing them of our Internet presence and encouraging their word-of-mouth recommendations to others. Our local customers can come to our site for a more local and specified order and personal assistance for their needs. We will develop and maintain a database of our loyalty Frequent Buyer customers. From there the website will serve the following needs: Provide local information about our outlet locations to the local community New customers can sign up for our special programs and rewards Customers can check their Frequent Buyer points online Production information and contacts provided Give updates on our work in progress With an admin password, the management team can monitor all farm schedule on a moment's notice. Book special deliveries with us Purchase retail items online and have them shipped as gifts Employment information online Companywide promotions and new store openings Promotional coupons online Raise funds for new business entry and expansion needs. 28 FINANCIAL SUMMARY 29