Business Plan

Agro Business Consult Plantain

Processing
Providing High Quality Plantain Products

This business plan is intended solely for informational purposes to assist in

determining if you with a due-diligence investigation of this project. The information
contained herein is believed to be reliable, but the management team makes no
representations or warranties with respect to this information. The financial
projections that are part of this plan represent estimates based on extensive
research and on assumptions considered reasonable, but they are of course not
guaranteed. The contents of this plan are confidential and are not to be reproduced
with express written consent.
CONTACT INFORMATION :

Company: Agro Business Consult Plantain Processing

Company

Address: Owerri, Imo State.

Phone: 09083199945

Email: agrobusiness101@gmail.com
Table of Contents
1.0 Executive Summary .................................................................................................................... 5
1.1 Objectives.................................................................................................................................... 6
1.2 Mission .......................................................................................................................................... 7
1.3 Keys to Success ........................................................................................................................ 7
2.0 Company Summary ..................................................................................................................... 7
2.2 Company Ownership ............................................................................................................... 8
2.3 Location and facilities ............................................................................................................. 8
2.4 Start-Up Summary .................................................................................................................. 8
2.4.2 Required Funds ................................................................................................................. 8
3.0 Product Description ..................................................................................................................... 9
3.1 Future Products ....................................................................................................................... 10
4.0 Market Analysis Summary ...................................................................................................... 10
4.1 Market Segmentation ........................................................................................................... 11
4.2 Target Market Segment Analysis ..................................................................................... 11
4.3 Industry Analysis .................................................................................................................... 12
4.4 Challenges Facing the Plantain Flour Industry ........................................................... 12
4.5 SWOT Analysis ........................................................................................................................ 13
4.6 External Environmental Analysis ...................................................................................... 13
4.7 Competition and Buying Patterns .................................................................................... 13
4.7.1 Main Competitors ........................................................................................................... 14
4.8 Sales Strategy ............................................................................................................................. 14
4.8.1 Sales Forecast...................................................................................................................... 15
5.0 Production Summary ................................................................................................................ 15
5.1 Suppliers ......................................................................................................................................... 16
5.2 Receiving ........................................................................................................................................ 16
5.3 Storage ............................................................................................................................................ 16
5.4 By-Products..................................................................................................................................... 16
5.5 Production process................................................................................................................. 17
6.0 Strategy and Implementation Summary .......................................................................... 17
6.1 Competitive Edge ................................................................................................................... 18
6.2 Marketing Strategy .................................................................................................................... 18
6.3 Web Plan Summary ............................................................................................................... 18
6.4 Website Marketing Strategy ............................................................................................... 19
6.5 Development Requirements ............................................................................................... 19
7.0 Management Summary ............................................................................................................ 19
7.1 Organizational Structure ..................................................................................................... 19
7.2 Management Team ................................................................................................................ 19
7.3 Personnel Plan ......................................................................................................................... 20
Table: Salaries and Wages ..................................................................................................... 20
8.0 Financial Plan ............................................................................................................................... 20
8.1 Important Assumptions ....................................................................................................... 20
8.2 Break-even Analysis .............................................................................................................. 21
 Table: Break-even Analysis.................................................................................................... 21
8.3 Projected Profit and Loss ..................................................................................................... 22
Table: Profit and Loss 3 years summary .......................................................................... 23
Table: Profit and Loss First Year .......................................................................................... 25
Chart: Profit and Loss Second Year .................................................................................... 26
Chart: Profit and Loss Third Year......................................................................................... 27
8.4 Projected Cash Flow .............................................................................................................. 27
Chart: Cash Flow ........................................................................................................................ 28
Table: Cash Flow Year Two .................................................................................................... 29
Table: Cash Flow Year Three ................................................................................................. 29
8.5 Projected Balance Sheet ...................................................................................................... 30
Table: Balance Sheet Year One ............................................................................................ 31
Table: Balance Sheet Year Two ........................................................................................... 31
Table: Balance Sheet Year Three......................................................................................... 33
Table: Fixed Operating Expenses ........................................................................................ 34
8.6 Long-term Plan ........................................................................................................................ 35
1.0 Executive Summary

Plantain processing in Nigeria is a highly lucrative venture which is yet to gain the attention
of many agro-investors due to lack the knowledge required to set up a plantain plantation.
Hence, missing out on the profitability of this business; aside from the lucrativeness the
cultivation and maintenance process is also easy due to the plants rapid growth which
makes the yield increase more and more over time.

Agro Business Plantain Company is a start-up organization that processes freshly grown
plantain into chips and flour. The processed plantains are further fortified with carbohydrate,
protein and pro-vitamin A which makes our product stand out.

Agro Business is based in Owerri, Imo State and we have identified our target customers
within Imo State and the neighbouring state and will grow into a business with outstanding
sales by year three.

Nigeria is blessed with more than one climate zone, many soil types which are favourable
for growing crops like plantain all year round for local consumption, processing and
exportation. Plantain is a perishable product which requires processing for the purpose of
preservation and availability in the local markets. Nigeria is currently the 5th largest plantain
producer in the world with about 2.8 metric tonnes per annum; a figure which is on
exponential increase as the years go by. Irrespective of the rank globally, Nigeria still has a
lot to do when it comes to production and trade both locally and internationally because
most of the grown farm produce is majorly targeted at the domestic food market.

Her production methods are primarily subsistence in nature and therefore unable to support
industrial level demands.

Global demand for plantain is on the increase due to its high nutrient value, and as a key
player in the Plantain industry globally Nigeria can aid in boosting production with a weather
condition that if favourable for the growth of plantains. Hence increasing our output and
meeting demands both in the local markets and internationally which in return brings about
high revenue and investors from other parts of the world.

Products
Currently, Agro Business has two main products. There are plantain flour and starch. Agro
Business’s products are well-processed and packaged, hygienic and of great quality. In other
to ensure that our product stands out from our competitors, we employ the best production
technique and equipment to ensure quality flours that is fortified with vitamin A. Agro
Business Company’s products are produced to meet standard organization of Nigeria and
international standards and our products will be approved by NAFDAC.

Competitive Edge
The company boasts of three competitive edges that will ensure strong growth rates which
will bring about an increase in market penetration. The first edge is quality; Agro business
prides themselves on the production of high quality plantain products which is fortified with
essential vitamins and minerals with an attractive package that depicts the high standard of
the products. The second edge is the freshness, we ensure that we make use of freshly
harvested plantains so as to retain the fresh taste. The harvested plantains are then
inspected and processed in a hygienic environment and any plantain that doesn’t meet the
high standards set by the company is rejected as imperfects. These measures are put in
place to ensure that our consumers get maximum satisfaction from our products. The third
edge is affordability. Affordable will be the driving force behind generating interest and
sales. What also makes us unique is that we delivery on time at our customer’s location
helping them to save time and money.

Management

Agro Business is led by Benard James. Benard James initially picked interest in this industry
while working at Yelps group of companies. He studied mechanical Engineering from Federal
University of Technology, Owerri (FUTO). He also did training in entrepreneurship
development.

Benard James work experience and entrepreneurship program provided him with requisite
details and skills to develop his own plantain processing company with the needed
managerial skills.

The plan is based on more than 3 years of experience in in the industry. It is highly focused
and promises to follow a path of prosperity for its owners and staff. The projections
contained herein are authentic and will be used as the budget for the business. Agro
Business will show a profit within 12 months, and will increase sales and profits each year
thereafter.

The marketing research and tailored marketing strategy described in this business plan will
result in after-tax profits of N12,981,576 in Year one and increasing to nearly N 24,048,957
in after-tax profits within three years.

To achieve these goals, Agro Business needs funding for capital equipment and operational
expenses. This fund will enable us to acquire new equipment and increase our capacity to
meet demands and also reach more potential customers beyond our current location.

1.1 Objectives

We have identified the following objectives to pursue in the upcoming years:

1. Become a major player in the industry

2. Develop a product-based company whose goal is to exceed customer's expectations
3. Increase production efficiency by 10% a year
4. Maintain tight control of cost and operation during expansion.
5. Reach profitability within 12 months.
6. Expand our customer base through direct referrals and aggressive direct sales.
7. Get more investors into the Plantain industry
1.2 Mission

Agro Business’s mission is as follows:

1. Quality: Our products are of the highest quality and standard...because we will
accept nothing less.
2. Innovative: Our products will always be in the forefront of the health. Innovative
products, state of the art manufacturing, quality assurance and industry expertise
are the bases for our past and future successes.
3. Integrity: Our customers depend on the quality of our products. Our commitment to
the highest standard is the foundation of our customer's trust in Agro
Business. Delivering high quality vitamin A fortified products depends on extensive
cooperation and mutual reliance between supplier and retailer. We stand behind our
product, our service and our word.

1.3 Keys to Success

Our keys to making this venture a success are:

1. Finance: Fund is one of the major success factors here. Without enough fund we can
do much.
2. Quality plantain product that is odourless and colourless at all time.
3. Expertise is key to successfully manage the business. Owner has well over 3 years of
experience
4. Maintain low operating costs.
5. Constant research of industry to keep knowledgeable of market needs.

2.0 Company Summary

The company is a start-up that will be located in Owerri, Imo State. The factory will be
situated in an area with high population and nearness to the market.

The company is in the process of incorporating with Corporate Affairs Commission of

Nigeria as Agro Business plantain Processing Company.

The company offers two different products namely plantain flour and chips.

The team has spent, in total, hundreds of man hours in the research and study of the
business and the method of processing high quality plantain product that will bring high
ROI.

To date we have studied and understand the best process to produce vitamin A fortified
flour to ensure that our customers derive maximum satisfaction from enjoying our flour
and other products.

The team will largely compose of personnel who are experienced and educated in the
field and together we form a powerful unit.
2.2 Company Ownership

The company is 100% own by Agro Business.

2.3 Location and facilities

The factory is will be located in Owerri, Imo State

We are trading from this spot because is it a great place to reach our target market. We
think the population base is large enough for our business and it has a stable economic
base that ensures healthy environment for the products. Also we think it is a spot that
could tap a healthy workforce. We also considered pedestrian traffic and we think a
large percentage of them are potential customers. The location will help us reach
customers in major local government in Imo, Anambra, Enugu, Abia and Rivers.

Our facilities include Grater, Presser, Dryer, Pin mill and Stitching machine and the
capacity of 50MT.

The factory has a production volume of 100 bags of 50KG of plantain flour and 200
cartons of plantain chips.

2.4 Start-Up Summary

This section of the plan shows projected start-up costs.

Start-up expenses for Agro Business Company include initial insurance payments
covering both general liability and product liability, pre-launch marketing to cover flyers,
a direct mail campaign, and advertisements in local papers, the development of
a website for customer interaction, and the normal legal expenses for consultation and
permitting. Other current assets include office and store furniture, shelving, a computer,
phone system, and tools. Long-term assets include the land, building, equipment,
delivery van among others.

2.4.2 Required Funds

Required Start-Up Funds Amount Totals

Fixed Assets
₦
Farm-Land 600,000.00

Buildings 1,500,000

Leasehold Improvements -

Equipment 3,895,000

Furniture and Fixtures 350,000

Vehicles 2,500,000

Other Fixed Assets 500,000

Total Fixed Assets 9,345,000

 Operating Capital

Pre-Opening Salaries and Wages 1,555,000

Prepaid Insurance Premiums 250,000

Inventory 100,000

Legal and Accounting Fees 100,000

Rent Deposits -

Utility Deposits 100,000

Supplies 300,000

Advertising and Promotions 500,000

Licenses 350,000

Other Initial Start-Up Costs 400,000

Working Capital (Cash On Hand) 2,500,000

Total Operating Capital 6,155,000

₦
Total Required Funds 15,500,000.00

Sources of Funding Amount Totals

Owner's Equity 3.30% 500,000

Outside Investors 96.70% 15,000,000

Additional Loans or Debt

Commercial Loan 0.00% (1,680,000)

Commercial Mortgage 0.00% 1,680,000

Credit Card Debt 0.00% -

Vehicle Loans 0.00% -

Other Bank Debt 0.00% -

₦
Total Sources of Funding 100.00% 15,500,000.00

3.0 Product Description

Agro Business offers the following products:

1. Agro Business Plantain Chips

Our seasoned plantain chips with its high nutrient will be uniquely processed and
 well-packaged to be sold to local markets and retail shops. The high standard of
production ensures that our product gives a great taste and remains fresh for
longer.
With our product we ensure no or low concentration of cyanogenic glucosides.

We maintain excellent moisture to give long shelve life.

2. Plantain Flour
Our well-processed flour will undergo state of the art production process to
ensure that it is free of dirt, has low calories and high fiber content which makes
our consumer feel fuller compared to regular flour. It will be well-packaged for
bakeries, biscuit companies and flour mill companies. Our flour purity is suitable
for use both for industrial and home use.

All our products pass through series of quality checks to ensure that our products meet
NAFDAC standard, SON standard and our own standard, this makes our products one of
the most acceptable flour in the market.

Our distinctive unique selling point of providing vitamin A fortified flour with zero
cyanagenic glucosides and high purity unique packaging distinguish our products from
our competitors.

We offer all of the above great products, while evaluating the desire and need by our
customers for improvement and other products.

3.1 Future Products

While we offer great products, we constantly evaluate customer’s desires and tastes and
also follow market trend to remain viable in the market. We are researching to acquire
the required knowledge to enhance our products.

4.0 Market Analysis Summary

Nigeria is the 5th largest producer of plantain in the world and has a world share of 8.1%.
Plantain is a popular staple food in Nigeria and is consumed by all tribes across the country,
growth is favoured by tropical climates where the temperature is warm with bright sunshine
and with a well suitable moisture for desired growth. It is rated as the tenth most significant
staple food that is eaten by people of all race globally. Unripe plantain has a flavour similar
to that of a potato as well as similar texture.

With the increase in the cost of wheat in the market bakers are currently searching for an
alternative means that meet the required standard for baking. Hence, bakers are switching
to plantain flour due to its high nutrient value and fine texture it gives to baked products.

We want to be highly technical niche player offering strong products that is in great
demand. We have identified that our target market are the flour mills, bakeries and
companies that make use of improved plantain products and distributors who have
established good presence and channels to get our products to final consumers.
We will market our products to the following groups: wholesale distributors, flours mills and
bakeries.

4.1 Market Segmentation

Plantain marketing is an important source of income to rural households in

Nigeria. Considerable income is also generated from plantain processing. Women are
actively involved in the planting and growing of plantain, and are major actors in its
processing and marketing. Thus, plantain provides women with an income-earning
opportunity, enabling them to purchase commodities, which can contribute to household
food security.

The plantain market in Nigeria can be classified into two broad categories based on the
nature of demand namely: the traditional food-oriented market and the industrial
market. The former refers to the demand for food consumption by individuals and
households while the latter is the demand for plantain for industrial purposes.

We have identified the following segments which make up our target market:

1. Flour Mills Companies: Since our major sales objective is business to business, we
will sell more to flour mills companies. Flour mills companies include plantain flour in
wheat flour. Federal Government gave directive that 20% plantain flour should be
included in wheat flour. This segment has a 100% growth rate with 4 potential
companies.

2. Bakeries and confectionery companies: this segment is growing at 65% and there
currently are 20 potential customers.
3. Distributors/Individuals: Most of the distributors will buy from us and take it to the
final consumers. We have established an excellent relationship with them. This
segment has a 100% growth rate with 10 potential customers.

4.2 Target Market Segment Analysis

Flour Mills Companies:

In 2006, in an attempt to conserve the huge foreign exchange that goes into importation
of wheat flour. However, the market for flour in Nigeria is still dominated by wheat flour.
This is driven by the wheat millers‘ preference to mill just wheat, and the consumers’
preference for finished product manufactured just from wheat.

In 2010, Nigeria‘s import of wheat was valued at about 800million dollars with the
bulk of it going to the flour milling firms and presently, Nigeria import wheat worth more
than N636 billion annually.

Bread Bakeries and Confectionery companies:

In the 1990s, after the depreciation of the value of naira, the high cost of wheat almost
sent bakers out of operation, thus compelling them to look for an alternative. To face
 this challenge, measures are being put in place by different companies to develop a
more reliable and suitable option to wheat for baking. After series of tests in baking and
confectionaries industries and it was concluded that plantain flour is a more favourable
alternative to cut down cost.

Sales efforts to snack food and biscuit companies have grown this market segment and
are expected to continue to grow as these producers adjust their processes to include
more plantain flour to achieve greater cost savings.

Distributors/Individuals:

This is potentially our greatest market opportunity. Distributors buy in bulk and supply
to those that needs them.

4.3 Industry Analysis

Plantain is one of the staple crops grown in Nigeria and is among the foremost sources
of carbohydrate; it has 24.5% CHO, 2% protein, 2% fat, 0% cholesterol and 6% fibre.
Due to it health benefits plantains are being considered as one of the most important
food sources in the world. And being a major staple food in Nigeria, It has exponential
increase in its yield over the years and the increase continues to grow due to the level of
awareness of its health benefits, implying the existence of market potential but increase
production in the country and Foraminifera Market Research seeks to expose the
financial viability of producing plantain flour from raw plantain in Nigeria.
Plantain flour has many uses apart from being a substitute for plantain flakes (Garri) and
is recommended for diabetic patients, it can also be used in the baking of cakes, small
chops, biscuits, bread and pancakes.
The various products that can be gotten from plantain flour in addition to its
nutritional/medicinal effects makes it a highly soughed after product. Plantain flour also
serves as an affordable source of Vitamins; Vitamin A (37.5%), Vitamin C (31%),
Vitamin E (1%) and Vitamin K (1%), it also contains various vital minerals; Calcium
(0.5%), Iron (7.5%), Magnesium (9%), Phosphorus (5%) and Zinc (1%). The products
can be distributed to the local markets, hotels, restaurants, bookers and supermarkets.
The demand is high in Nigeria and the plantains can be easily grown due to the
favourable weather condition in the country.
To achieve the company’s set target the management shall employ adequately skilled
staffs to ensure that operations shall run smoothly.

4.4 Challenges Facing the Plantain Flour Industry

Plantain processing business in Nigeria has some challenges that need to be attended to
with vigour. Below are some of the common challenges that are faced by producer:

1. Lack of fund to purchase high quality processing equipment

2. poor access to credit

3. Poor availability of input supplies

 4. Fragmented marketing, etc), addressing the needs of the processors to supply
the processed food and industrial market needs coordinated strategies.

5. Poor implementation of government policies

4.5 SWOT Analysis

Strengths Weaknesses

 Consistent quality: We will constantly  Lack of funding: Lack of fund has been
produce plantain with high quality. hindering our expansion.
 Experience: The owner is highly  No reputation yet: We haven’t established
experience with over 5years in the ourselves as a reputable firm yet
industry
 Saleable products: We produce a high
ratio saleable products
Opportunities Threats

 Customer Loyalty: Customers are looking  Similar size firm: firms with similar capacity
company that produces quality products have being in business and are competing
 Growing market: with us
 Contamination: If our product is
contaminated, this will affect us adversely.
It can lead to ban and also reduce the
patronage and revenue

4.6 External Environmental Analysis

Socio-cultural –habits of our consumers will definitely affect our business.

Technological - A good technical infrastructure would lead to better production and hence lower costs.
Technology will also mean more effective business marketing.

Economic – economic trends such as demand and supply will determine the sustenance and profitability
of the business. Also inflation rates will affect the way we pay our employees and the price of the
product.

Political – this will include government policies concerning inspection by the ministry of health and
agencies like NAFDAC.

4.7 Competition and Buying Patterns

There has been a strong demand (sellers' market) for our products for several years.
Traditional buying patterns in this industry are based on quality, price, reputation of the
producer, delivery times and proximity to markets. During such a sellers' market, buying
patterns are often more influenced by availability.
 The buying patterns of the different customers are typically based on these variables:

 Price
 Availability
 Ability to deliver consistently on long-term contracts
 Consistency.

4.7.1 Main Competitors

There are various competitors and will be grouped in three categories: Local farmer using
non-mechanized method, small scale processing firms and established/large scale
processing firms. The competition is not that strong as the demand of the product is high
and the market is buoyant.

Some of the competitors are

Local farmer using non-mechanized method:

These are local plantain farmers based in the rural area and process plantain immediately
they are harvested to various plantain products like plantain chips, flour among others.

Small scale processing firms:

These are small scale processing firms that are registered with Corporate Affairs
Commission and are using mechanized processing method.

1) Adubab Farm and Product

2) Cassali Nigeria Ltd
3) Endurance Nigeria Ltd

We consider competitors in this section as our major competitors because there are very
common.

Established/large scale processing firms:

These are established plantain processing firms that process thousands of Metric Tons of
plantain every day. The have the financial muscle and are technical okay.

1) Thai Farm International

2) Akudo Farm

4.8 Sales Strategy

We will use direct sales strategy. We will approach members of our target markets via
phone and with direct visits. We will tell them about our current products and services,
and then ask them clearly what we need to do to earn their business. We will listen to
 their desires and individual goals. We will then mirror back to them what they have said;
to be sure we understand their needs. Finally, we will create an individualized sales
proposal with their specific needs (products, volumes, frequency, price, other services)
included.

We will present the proposal as a written agreement ready for signature by both parties
to begin doing business.

Details for each order will be entered into our customer database. Deliveries will be
automatically scheduled through our point of sale/delivery database or base on
customer’s specific requirement. Each customer price grid, conditions and all specific
comments will be clearly maintained for all to review and to guarantee complete
customer satisfaction. Each order will be reviewed by one of the owners prior to delivery
to guarantee quality, accuracy and completeness. Terms for payment will be COD and an
invoice for each shipment will be faxed or called to each customer the day prior to
delivery to ensure payment is ready at the time of delivery. (This will all be part of the
agreement terms.)

Follow up calls will go to each customer within 24 hours of each delivery to ensure
satisfaction. If for any reason there is an issue, it will be handled immediately by one of
the owners directly with the customer.

4.8.1 Sales Forecast

The sales forecast indicates that growth will be slow but steady. Growth will be slow
because of the time and effort needed to develop the customers and build good
customer base. The premier element to our financial plan is initiating, maintaining, and
improving the factors that create, stabilize and increase our cash flow

Table

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Income
Flour 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000
Product2 - - - - - - - - - - - - -
-
-
Total Income 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000

Cost of Sales
Flour 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000
Product2 - - - - - - - - - - - - -
-
-
Total Cost of Sales 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000

5.0 Production Summary

Our production system shall strive to attain service excellence in addition to manufacturing
safe, quality products. This shall be undertaken through the engagement of modern
production techniques using up-to-date assembly technology. This will also result in low
production costs being attained by the company. We also intend to ensure that the suppliers
we engage are committed and reliable so as not to let down the final consumer in terms of
the quality of the product and time of delivery.

In order to improve productivity in our plants we intend to reduce waste and duplication in
our processing plant by streamlining administrative functions and promoting and instilling a
business culture that focuses on the teamwork rather than individual productivity. By the
undertaking the above we will optimize our productivity given our available resources.

5.1 Suppliers
The company will establish a plantain farm where it will plant the plantain and harvest once
it is ready. We intend to engage local farmers/suppliers for the supply of healthy suckers to
ease growth on our farms. However as we are committed to fair terms of trade and
promotion of local business we intend to engage local suppliers. Hence raw materials are
sourced from local communal and commercial farmers avoiding intermediaries so as to
minimize costs, ultimately benefiting the final consumer. The major advantages of doing so
being higher margins, faster payments and lower risks of payment default. Through the use
of economies of scale we aim to maintain low input and production costs. This may be
undertaken through (discussion removed for confidentiality).

Hence we intend to establish good rapport with all our suppliers and hence long mutually
beneficial business relationships. This shall be undertaken through working closely with
suppliers to ensure uninterrupted deliveries.

5.2 Receiving
Recognizing that the receiving of our raw materials is an essential element in our entire
business, we intend to ensure that it is done by responsible persons who will be present
during off-loading to check the quantity and condition of the consignment. During the actual
off-loading the receiving bay personnel will mass check on at least 70% of the consignment.
Non-confirming raw materials in terms of quality will only be approved with the consent of
the managing director who would have undertaken further analysis of it.

5.3 Storage
It shall be the policy of the company to ensure that all harvested plantains are stored in a
secure, clean and pest free environment. Stock takes and reconciliations shall be
undertaken on a regular basis, initially done at least once a week. The stock principle of
First In First Out (FIFO) shall be implemented. Whenever stock is taken out it shall be
recorded on a separate stock or bin card, with reconciliations of raw materials issued to the
brewery, issued to production, losses, opening and closing stock taken. Should any
deviations arise these must be explained.

5.4 By-Products
We intend to utilize every resource it has to the fullest possible extent. We realize that there
shall be a lot of by-products that will be produced from our production of the main product
lines. However not wanting to pollute the environment, and our community at large, we
plan to utilize by-products whenever possible. This will ensure that our resources are fully
utilized.
5.5 Production process

6.0 Strategy and Implementation Summary

Emphasize customer service

We will differentiate ourselves with CUSTOMER SERVICE! We will establish our
business as a clear and viable alternative for our target market, from the scores of
competitors known for "do-it yourself," "no we don't offer that product," and "no delivery
available."

Customer service is paramount in our business and our business plan. The management
team will accomplish this goal by training employees and by providing encouragement.

The new management team of Agro Business Company’s believes that an employee who
is happy at work will enjoy working. It is always easier to please customers with staff
that cares, a facility that is clean and equipment that is kept in proper working order.

Agro Business Company will also work toward establishing community involvement
 programs that will demonstrate how the business can contribute to a better quality of
community life. Community project groups such as

Build a relationship-oriented business

Build long-term relationships with customers, not single-visit deals. Become their "palm
dealer of choice." Teach them the value of the relationship.

Focus on target markets

We need to focus our offerings on specific population groups as the key market segment
we should own. We definitely want to be able to sell to smart, quality conscious
customers.

6.1 Competitive Edge

Agro Business Company has two competitive edges that will help them maintain strong
growth rates, increasing their market penetration. The first edge is quality. Agro
Business Company prides themselves on the high quality plantain flour that is well-
processed with modern techniques and well-packaged. The products are produced from
facility that is hygienic and any flour that do not meet Agro Business high standards of
quality are rejected as imperfects. Agro Business's second competitive edge is their
affordability. Affordable will be the driving force behind generating interest and sales.
What also makes us unique is that we delivery on time at our customer’s location
helping them to save time and money.

6.2 Marketing Strategy

Agro Business Flour will implement the following Marketing Strategies upon the business
transfer in the following order:

1. Direct Marketing: we will personally market (sell face to face) our products to various
palm oil dealers, companies etc

2. Customer Referral: we will provide customer incentives for direct referrals, in the
form of price discounts.

3. Website Marketing: we will implement our web plan and review the outcome to
determine the efficiency it has on our customer base.

4. Event Marketing: we will visit area agro events to hand out flyers, business cards,
and product catalogs, and to meet potential customers face to face.

Through marketing our products in these ways, we project that Agro Business flour’s will
almost double its business within the first 2 years of new ownership.

6.3 Web Plan Summary

Agro Business's website will enable us to offer customers current information on special
sales, promos, new product releases, events, and public service announcements. We
also plan on utilizing the Web to sell and market our products and services. An e-store
 will also be implemented into our web design, allowing customers to place orders for the
feed they need right on our website. We will be able to accept and process check and
credit card orders immediately online. Our customers will still have the options of paying
by cash, check or money order as well.

6.4 Website Marketing Strategy

Our website will be promoted through the use of sponsor listings and affiliate
memberships. Our site will be registered with all of the major search engines. We will
also share links with our distributors and manufacturers.

6.5 Development Requirements

Agro Business's website will be initially developed with few internal technical resources

7.0 Management Summary

The company's management is highly experienced and qualified, with seasoned

investors. The company strives to hire qualified people who take pride in their work. The
company's management philosophy is based on responsibility and mutual respect. Agro
Business’s Plantain Flour Company maintains an environment and structure that
encourages productivity and respect for customers and fellow employees.

The following subtopics outline both the management team, and its team of employees.

7.1 Organizational Structure

The Organizational Structure of Agro Business is planned to be a simple and traditional

one. All production and manufacturing operations will report to the COO. All
administrative and finance functions will report to the CFO. Both the COO and CFO will
report to the CEO, who will also have the responsibility for Sales and Marketing.

7.2 Management Team

Agro Business Team: Chief Executive Officer:

As the top manager, the CEO, he is responsible for the entire operations of the
company. It is his responsibility to implement decisions and initiatives and to maintain
the smooth operation of the company, with the assistance of the management team

Mrs Team- Chief Financial Officer:

Also reporting directly to the CEO, she is responsible for analyzing and reviewing
financial data, reporting financial performance, preparing budgets and monitoring
expenditures and costs. The CFO routinely checks the corporation's financial health and
integrity.
 7.3 Personnel Plan

Agro Business Consult is responsible to its employees, the men and women who work
with the company throughout the state. At Agro Business, everyone is considered as an
individual, the company respects their dignity and recognizes their merit. Employees are
encouraged to have a sense of security and pride in their jobs. Additionally, employees
are free to make suggestions and complaints. The company affords equal opportunity
for employment, development, and advancement for those qualified

Table: Salaries and Wages

Salaries and Related Expenses # Assumptions Wage Base Monthly Year One Year Two Year Three

Percent Change 3.00% 3.00%

Salaries and Wages

Owner's Compensation 1 ₦ 30,000.00 360,000 370,800 381,924
Salaries 2 20,000 240,000 247,200 254,616
Wages
Full-Time Employees 2 39,000 468,000 482,040 496,501
Estimated Hours Per Week 40.00
Estimated Rate Per Hour ₦ 112.50
Part-Time Employees - - - -
Estimated Hours Per Week 20.00
Estimated Rate Per Hour ₦ 70.00
Independent Contractors - - - -
Total Salaries and Wages 5 89,000 1,068,000 1,100,040 1,133,041

Payroll Taxes and Benefits

PAYE 2.20% 1,958 23,496 24,201 24,927
Medicare 1.45% 1,291 15,486 15,951 16,429
Federal Unemployment Tax (FUTA) 0.80% - - - -
State Unemployment Tax (SUTA) 2.70% - - - -
Employee Pension Programs 10.00% 8,900 106,800 106,800 106,800
Worker's Compensation 0.00% - - - -
Employee Health Insurance 0.50% 445 5,340 5,500 5,665
Other Employee Benefit Programs 4.00% 3,560 42,720 44,002 45,322
Total Payroll Taxes and Benefits 16,154 193,842 196,453 199,143

Total Salaries and Related Expenses 105,154 1,261,842 1,296,493 1,332,184

8.0 Financial Plan

8.1 Important Assumptions

This business plan was developed for Agro Business assuming the following:

 Steady growth from good management, barring any unforseen local or national
disasters such as...
 An adequate loan amount to allow for initial implementation of plans.
 Competition and buying patterns remain similar to those used for forecasting.
 Existing customer base maintained.
  Market research is on target and current (received from different state
organizations).
 New customers will be gained through direct sales and advertising.
 VAT is 5%.

8.2 Break-even Analysis

Break-even is based on fixed costs of approximately…

Table: Break-even Analysis

AgroBusiness Consult
Breakeven Analysis

Breakeven Analysis Dollars Percent

₦
Annual Sales Revenue 34,146,000.00 100.00%

Cost of Sales 17,073,000 50.00%

Gross Margin 17,073,000 50.00%

Salaries and Wages 2,405,061

Fixed Operating Expenses 7,721,429

Total Fixed Business
Expenses 10,126,490

Breakeven Sales Calculation 10,126,490

50.00%

₦
Breakeven Sales in Naira 20,252,979.94
8.3 Projected Profit and Loss

Outlined below and in the following table and chart, are some of the intrinsic facets of
the projected profit and loss for Agro Business

Cost of sales reflects our cost to manufacture the feed and purchase all other non-
manufactured products. Gross margin will continue to rise at a steady pace throughout
the years forecasted.

Payroll expenses currently includes income for the one owner. As forecasted, additional
employees will be brought aboard as required to keep up with the growing pace of Agro
Business Further details are available in our Personnel table (above).

Advertising and marketing expenses (news ads, magazine ads, etc.) are projected to
increase as net profits increase and positive results are accomplished as a direct result
of the same marketing and advertising. All direct sales and marketing is performed
by dedicated sales rep. Commissions are not paid to him as a result of a gained
customer as he is one of the two major owners of the corporation.

Depreciation forecasted includes normal wear and mechanical tune-ups on trucks and all
equipment in the plant.

Fuel costs are projected to grow as the amount of sales made that require delivery
increase. This projected expense includes fuel for the trucks, generator, etc.

Utilities are projected to increase year to year. The current market prices for utilities will
change as the years past.

Payroll taxes include social security, unemployment and workers compensation, etc.
Feed dealers permit and state sales tax license is projected to be paid in one annual
instalment in the month of January. Agro Business’s anticipates paying sales taxes
monthly and income tax quarterly, as required by law.

All website expenses are listed below, from initial development, to hosting, to account
management for our e-commerce transactions.
Table: Profit and Loss 3 years summary
AgroBusiness Consult
Year End Summary

Year One % Year Two % Year Three %

Income
Flour 34,146,000 42,682,500 53,353,125
Product2 - - -
- - -
- - -
Total Income 34,146,000 100.00% 42,682,500 100.00% 53,353,125 100.00%

Cost of Sales
Flour 17,073,000 21,341,250 26,676,563
Product2 - - -
- - -
- - -
Total Cost of Sales 17,073,000 50.00% 21,341,250 50.00% 26,676,563 50.00%

Gross Margin 17,073,000 50.00% 21,341,250 50.00% 26,676,563 50.00%

Total Salary and Wages 2,405,061 7.04% 2,471,106 5.79% 2,539,133 4.76%

Fixed Business Expenses

Advertising 1,200,000 1,236,000 1,273,080
Car and Truck Expenses 600,000 618,000 636,540
Bank & Merchant Fees 120,000 123,600 127,308
Contract Labor - - -
Conferences & Seminars 180,000 185,400 190,962
Customer Discounts and Refunds - - -
Dues and Subscriptions 60,000 61,800 63,654
Miscellaneous 600,000 618,000 636,540
Insurance (Liability and Property) 250,000 257,500 265,225
Licenses/Fees/Permits 350,000 360,500 371,315
Legal and Professional Fees 120,000 123,600 127,308
Office Expenses & Supplies 600,000 618,000 636,540
Postage and Delivery - - -
Rent (on business property) - - -
Rent of Vehicles and Equipment 240,000 247,200 254,616
Sales & Marketing 600,000 618,000 636,540
Taxes-Other 240,000 247,200 254,616
Telephone and Communications 360,000 370,800 381,924
Travel 600,000 618,000 636,540
Utilities 300,000 309,000 318,270
Total Fixed Business Expenses 6,420,000 18.80% 6,612,600 15.49% 6,810,978 12.77%

Operating Income (before Other Expenses) 8,247,939 24.15% 12,257,544 28.72% 17,326,452 32.48%
[EBITDA]

Other Expenses
Amortized Start-up Expenses 1,185,000 1,185,000 1,185,000
Depreciation 1,301,429 1,301,429 1,301,429
Interest
Commercial Loan - - -
Commercial Mortgage - - -
Line of Credit - - - -
Credit Card Debt - - -
Vehicle Loans - - -
Other Bank Debt - - -
Taxes 694,651 1,095,611 1,602,502
Total Other Expenses 3,181,080 9.32% 3,582,040 8.39% 4,088,931 7.66%

Net Income 5,066,859 14.84% 8,675,503 20.33% 13,237,521 24.81%

 Table: Profit and Loss First Year

AgroBusiness Consult
Projected Income Statement - Year One

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Income
Flour 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000
Product2 - - - - - - - - - - - - -
-
-
Total Income 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000

Cost of Sales
Flour 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000
Product2 - - - - - - - - - - - - -
-
-
Total Cost of Sales 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000

Gross Margin 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000

Total Salary and Wages 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 2,405,061

Fixed Business Expenses

Advertising 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000
Car and Truck Expenses 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Bank & Merchant Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Contract Labor - - - - - - - - - - - - -
Conferences & Seminars 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000
Customer Discounts and Refunds - - - - - - - - - - - - -
Dues and Subscriptions 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Miscellaneous 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Insurance (Liability and Property) 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 250,000
Licenses/Fees/Permits 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 29,167 350,000
Legal and Professional Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Office Expenses & Supplies 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) - - - - - - - - - - - - -
Rent of Vehicles and Equipment 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
Sales & Marketing 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Taxes-Other 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
Telephone and Communications 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
Travel 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
Utilities 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Total Fixed Business Expenses 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 6,420,000

Other Expenses
Amortized Start-up Expenses 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 1,185,000
Depreciation 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 1,301,429
Interest
Commercial Loan - - - - - - - - - - - - -
Commercial Mortgage - - - - - - - - - - - - -
Line of Credit - - - - - - - - - - - - -
Credit Card Debt - - - - - - - - - - - - -
Vehicle Loans - - - - - - - - - - - - -
Other Bank Debt - - - - - - - - - - - - -
Taxes - - - - 13,213 40,713 59,613 90,663 95,613 118,113 136,113 140,613 694,651
Total Other Expenses 207,202 207,202 207,202 207,202 220,415 247,915 266,815 297,865 302,815 325,315 343,315 347,815 3,181,080

Net Income (402,624) (267,624) 6,876 92,376 196,163 267,663 437,763 717,213 761,763 964,263 1,126,263 1,166,763 5,066,859
 Chart: Profit and Loss Second Year

AgroBusiness Consult
Projected Income Statement - Year Two

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Income
Flour 1,350,000 1,687,500 2,373,750 2,587,500 2,880,000 3,127,500 3,600,000 4,376,250 4,500,000 5,062,500 5,512,500 5,625,000 42,682,500
Product2 - - - - - - - - - - - - -
-
-
Total Income 1,350,000 1,687,500 2,373,750 2,587,500 2,880,000 3,127,500 3,600,000 4,376,250 4,500,000 5,062,500 5,512,500 5,625,000 42,682,500

Cost of Sales
Flour 675,000 843,750 1,186,875 1,293,750 1,440,000 1,563,750 1,800,000 2,188,125 2,250,000 2,531,250 2,756,250 2,812,500 21,341,250
Product2 - - - - - - - - - - - - -
-
-
Total Cost of Sales 675,000 843,750 1,186,875 1,293,750 1,440,000 1,563,750 1,800,000 2,188,125 2,250,000 2,531,250 2,756,250 2,812,500 21,341,250

Gross Margin 675,000 843,750 1,186,875 1,293,750 1,440,000 1,563,750 1,800,000 2,188,125 2,250,000 2,531,250 2,756,250 2,812,500 21,341,250

Total Salary and Wages 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 2,471,106

Fixed Business Expenses

Advertising 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 1,236,000
Car and Truck Expenses 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Bank & Merchant Fees 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 123,600
Contract Labor - - - - - - - - - - - - -
Conferences & Seminars 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 185,400
Customer Discounts and Refunds - - - - - - - - - - - - -
Dues and Subscriptions 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 61,800
Miscellaneous 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Insurance (Liability and Property) 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 257,500
Licenses/Fees/Permits 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 360,500
Legal and Professional Fees 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 123,600
Office Expenses & Supplies 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) - - - - - - - - - - - - -
Rent of Vehicles and Equipment 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 247,200
Sales & Marketing 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Taxes-Other 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 247,200
Telephone and Communications 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 370,800
Travel 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Utilities 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 309,000
Total Fixed Business Expenses 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 6,612,600

Other Expenses
Amortized Start-up Expenses 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 1,185,000
Depreciation 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 1,301,429
Interest
Commercial Loan - - - - - - - - - - - - -
Commercial Mortgage - - - - - - - - - - - - -
Line of Credit - - - - - - - - - - - - -
Credit Card Debt - - - - - - - - - - - - -
Vehicle Loans - - - - - - - - - - - - -
Other Bank Debt - - - - - - - - - - - - -
Taxes - - 10,934 42,832 57,457 69,832 93,457 132,270 138,457 166,582 189,082 194,707 1,095,611
Total Other Expenses 207,202 207,202 218,137 250,035 264,660 277,035 300,660 339,472 345,660 373,785 396,285 401,910 3,582,040

Net Income (289,178) (120,428) 211,763 286,740 418,365 529,740 742,365 1,091,677 1,147,365 1,400,490 1,602,990 1,653,615 8,675,503
 Chart: Profit and Loss Third Year

Projected Income Statement - Year Three

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Income
Flour 1,687,500 2,109,375 2,967,188 3,234,375 3,600,000 3,909,375 4,500,000 5,470,313 5,625,000 6,328,125 6,890,625 7,031,250 53,353,125
Product2 - - - - - - - - - - - - -
-
-
Total Income 1,687,500 2,109,375 2,967,188 3,234,375 3,600,000 3,909,375 4,500,000 5,470,313 5,625,000 6,328,125 6,890,625 7,031,250 53,353,125

Cost of Sales
Flour 843,750 1,054,688 1,483,594 1,617,188 1,800,000 1,954,688 2,250,000 2,735,156 2,812,500 3,164,063 3,445,313 3,515,625 26,676,563
Product2 - - - - - - - - - - - - -
-
-
Total Cost of Sales 843,750 1,054,688 1,483,594 1,617,188 1,800,000 1,954,688 2,250,000 2,735,156 2,812,500 3,164,063 3,445,313 3,515,625 26,676,563

Gross Margin 843,750 1,054,688 1,483,594 1,617,188 1,800,000 1,954,688 2,250,000 2,735,156 2,812,500 3,164,063 3,445,313 3,515,625 26,676,563

Total Salary and Wages 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 2,539,133

Fixed Business Expenses

Advertising 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 1,273,080
Car and Truck Expenses 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Bank & Merchant Fees 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 127,308
Contract Labor - - - - - - - - - - - - -
Conferences & Seminars 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 190,962
Customer Discounts and Refunds - - - - - - - - - - - - -
Dues and Subscriptions 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 63,654
Miscellaneous 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Insurance (Liability and Property) 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 265,225
Licenses/Fees/Permits 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 371,315
Legal and Professional Fees 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 127,308
Office Expenses & Supplies 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) - - - - - - - - - - - - -
Rent of Vehicles and Equipment 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 254,616
Sales & Marketing 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Taxes-Other 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 254,616
Telephone and Communications 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 381,924
Travel 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Utilities 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 318,270
Total Fixed Business Expenses 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 6,810,978

Other Expenses
Amortized Start-up Expenses 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 1,185,000
Depreciation 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 1,301,429
Interest
Commercial Loan - - - - - - - - - - - - -
Commercial Mortgage - - - - - - - - - - - - -
Line of Credit - - - - - - - - - - - - -
Credit Card Debt - - - - - - - - - - - - -
Vehicle Loans - - - - - - - - - - - - -
Other Bank Debt - - - - - - - - - - - - -
Taxes - 12,318 59,597 72,956 91,237 106,706 136,237 184,753 192,487 227,643 255,768 262,800 1,602,502
Total Other Expenses 207,202 219,520 266,799 280,158 298,440 313,908 343,440 391,955 399,690 434,846 462,971 470,002 4,088,931

Net Income (142,628) 55,991 437,619 557,853 722,385 861,603 1,127,385 1,564,025 1,633,635 1,950,041 2,203,166 2,266,447 13,237,521

8.4 Projected Cash Flow

The cash flow projection for Agro Business shows that provisions for ongoing expenses
are adequate to meet the needs of the company, as the business generates sufficient
cash flow to support operations and future expansions.

Cash flow projections are critical to our success. The monthly cash flow is shown in the
illustration, with one bar representing the cash flow per month and the other
representing the monthly balance. The annual cash flow figures are included here and in
 our Cash Flow table. Detailed monthly numbers are included in the Appendix.

Cash Flow shows the purchase of long-term assets as follows:

 N1,500,000 for a delivery truck

 Land N1,600,000
 N3,000,000 for equipment etc

Chart: Cash Flow

Projected Cash Flow Statement - Year One

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Beginning Cash Balance 2,500,000 2,277,578 2,190,156 2,377,235 2,649,813 3,039,391 3,474,044 4,151,622 5,139,700 5,931,391 7,193,969 8,636,547

Cash Inflows
Income from Sales 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 1,080,000 1,350,000 1,899,000 2,070,000 2,304,000 2,502,000 2,880,000 3,501,000 3,600,000 4,050,000 4,410,000 4,500,000 34,146,000

Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - - - - - - -
Inventory Addition to Bal.Sheet - - - - - - - - - - - - -
Cost of Sales 540,000 675,000 949,500 1,035,000 1,152,000 1,251,000 1,440,000 1,750,500 1,800,000 2,025,000 2,205,000 2,250,000 17,073,000
Operating Activities
Salaries and Wages 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 200,422 2,405,061
Fixed Business Expenses 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 6,420,000
Taxes - - - - - 53,926 - - 245,888 - - 394,838 694,651
Financing Activities -
Loan Payments 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 324,000
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 1,302,422 1,437,422 1,711,922 1,797,422 1,914,422 2,067,347 2,202,422 2,512,922 2,808,310 2,787,422 2,967,422 3,407,260 26,916,712

Cash Flow (222,422) (87,422) 187,078 272,578 389,578 434,653 677,578 988,078 791,690 1,262,578 1,442,578 1,092,740 7,229,288

Operating Cash Balance 2,277,578 2,190,156 2,377,235 2,649,813 3,039,391 3,474,044 4,151,622 5,139,700 5,931,391 7,193,969 8,636,547 9,729,288

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 2,277,578 2,190,156 2,377,235 2,649,813 3,039,391 3,474,044 4,151,622 5,139,700 5,931,391 7,193,969 8,636,547 9,729,288
 Table: Cash Flow Year Two

Projected Cash Flow Statement - Year Two

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Beginning Cash Balance 9,729,288 9,620,312 9,680,087 10,072,052 10,581,826 11,237,851 11,847,504 12,863,528 14,267,678 15,369,518 17,116,792 19,089,067

Cash Inflows
Income from Sales 1,350,000 1,687,500 2,373,750 2,587,500 2,880,000 3,127,500 3,600,000 4,376,250 4,500,000 5,062,500 5,512,500 5,625,000 42,682,500
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 1,350,000 1,687,500 2,373,750 2,587,500 2,880,000 3,127,500 3,600,000 4,376,250 4,500,000 5,062,500 5,512,500 5,625,000 42,682,500

Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - - - - - - -
Inventory Addition to Bal. Sheet - - - - - - - - - - - - -
Cost of Sales 675,000 843,750 1,186,875 1,293,750 1,440,000 1,563,750 1,800,000 2,188,125 2,250,000 2,531,250 2,756,250 2,812,500 21,341,250
Operating Activities
Salaries and Wages 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 205,926 2,471,106
Fixed Business Expenses 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 6,612,600
Taxes - - 10,934 - - 170,122 - - 364,184 - - 550,372 1,095,611
Financing Activities -
Loan Payments 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 324,000
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 1,458,976 1,627,726 1,981,785 2,077,726 2,223,976 2,517,847 2,583,976 2,972,101 3,398,160 3,315,226 3,540,226 4,146,847 31,844,568

Cash Flow (108,976) 59,774 391,965 509,774 656,024 609,653 1,016,024 1,404,149 1,101,840 1,747,274 1,972,274 1,478,153 10,837,932

Operating Cash Balance 9,620,312 9,680,087 10,072,052 10,581,826 11,237,851 11,847,504 12,863,528 14,267,678 15,369,518 17,116,792 19,089,067 20,567,220

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 9,620,312 9,680,087 10,072,052 10,581,826 11,237,851 11,847,504 12,863,528 14,267,678 15,369,518 17,116,792 19,089,067 20,567,220

Table: Cash Flow Year Three

Victor Cassava Company
Projected Cash Flow Statement - Year Three

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Beginning Cash Balance 4,854,658 4,890,751 5,004,968 5,203,273 5,473,741 5,744,208 6,008,919 6,513,762 7,081,104 7,503,628 8,086,595 8,739,875

Cash Inflows
Income from Sales 843,750 984,375 1,195,313 1,265,625 1,265,625 1,406,250 1,687,500 1,800,000 1,828,125 1,828,125 1,954,688 2,109,375 18,168,750
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 843,750 984,375 1,195,313 1,265,625 1,265,625 1,406,250 1,687,500 1,800,000 1,828,125 1,828,125 1,954,688 2,109,375 18,168,750

Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - - - - - - -
Inventory Addition to Bal.Sheet - - - - - - - - - - - - -
Cost of Sales 375,000 437,500 531,250 562,500 562,500 625,000 750,000 800,000 812,500 812,500 868,750 937,500 8,075,000
Operating Activities
Salaries and Wages 111,015 111,015 111,015 111,015 111,015 111,015 111,015 111,015 111,015 111,015 111,015 111,015 1,332,184
Fixed Business Expenses 302,357 302,357 302,357 302,357 302,357 302,357 302,357 302,357 302,357 302,357 302,357 302,357 3,628,278
Taxes - - 33,100 - - 83,881 - - 160,444 - - 192,475 469,900
Financing Activities -
Loan Payments 19,286 19,286 19,286 19,286 19,286 19,286 19,286 19,286 19,286 19,286 19,286 19,286 231,429
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 807,658 870,158 997,008 995,158 995,158 1,141,539 1,182,658 1,232,658 1,405,601 1,245,158 1,301,408 1,562,633 13,736,791

Cash Flow 36,092 114,217 198,305 270,467 270,467 264,711 504,842 567,342 422,524 582,967 653,280 546,742 4,431,959

Operating Cash Balance 4,890,751 5,004,968 5,203,273 5,473,741 5,744,208 6,008,919 6,513,762 7,081,104 7,503,628 8,086,595 8,739,875 9,286,617

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 4,890,751 5,004,968 5,203,273 5,473,741 5,744,208 6,008,919 6,513,762 7,081,104 7,503,628 8,086,595 8,739,875 9,286,617
8.5 Projected Balance Sheet

The Balance Sheet shows healthy growth of net worth, and strong financial position. The
monthly estimates are included in the Appendix. The balance sheet for Agro Business is
quite solid. We do not project any trouble meeting our debt obligations. Our
management is strong enough and more than capable of keeping the business on track
for total repayment of any obligations (loans).

Our major capital asset (the property and affixed buildings) is valued at about.

Our projected balance sheet is presented in the table below.

Table: Balance Sheet Year One

Balance Sheet - Year One

Base Period End of Year One

Assets
Current Assets
Cash 2,500,000 9,729,288
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 3,155,000 2,103,333
Other Current 400,000 266,667
Total Current Assets 6,155,000 12,199,288

Fixed Assets
Farm-Land 600,000 600,000
Buildings 1,500,000 1,500,000
Leasehold Improvements - -
Equipment 3,895,000 3,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 2,500,000 2,500,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 9,345,000 9,345,000

Less: Accumulated Depreciation - 1,301,429

Total Assets 15,500,000 20,242,859

Liabilities and Owner's Equity

Liabilities
Accounts Payable - -
Loan Payable (1,680,000) (1,920,000)
Mortgage Payable 1,680,000 1,596,000
Credit Card Debt - -
Vehicle Loans - -
Other Bank Debt - -
Line of Credit Balance - -
Total Liabilities - (324,000)

Owner's Equity
Common Stock 15,500,000 15,500,000
Retained Earnings - 5,066,859
Dividends Dispersed - -
Total Owner's Equity 15,500,000 20,566,859

Total Liabilities and Owner's Equity 15,500,000 20,242,859

Statement Balances Statement Balances

Table: Balance Sheet Year Two

Balance Sheet - Year Two

End of Year One End of Year Two

Assets
Current Assets
Cash 9,729,288 20,567,220
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 2,103,333 1,051,667
Other Current 266,667 133,333
Total Current Assets 12,199,288 21,852,220

Fixed Assets
Farm-Land 600,000 600,000
Buildings 1,500,000 1,500,000
Leasehold Improvements - -
Equipment 3,895,000 3,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 2,500,000 2,500,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 9,345,000 9,345,000

Less: Accumulated Depreciation 1,301,429 2,602,857

Total Assets 20,242,859 28,594,362

Liabilities and Owner's Equity

Liabilities
Accounts Payable - -
Notes Payable (1,920,000) (2,160,000)
Mortgage Payable 1,596,000 1,512,000
Credit Card Debt - -
Vehicle Loans - -
Other Bank Debt - -
Line of Credit Balance - -
Total Liabilities (324,000) (648,000)

Owner's Equity
Common Stock 15,500,000 15,500,000
Retained Earnings 5,066,859 13,742,363
Dividends Dispersed - -
Total Owner's Equity 20,566,859 29,242,363

Total Liabilities and Owner's Equity 20,242,859 28,594,362

Statement Balances Statement Balances

Table: Balance Sheet Year Three

Projected Cash Flow Statement - Year Three

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Beginning Cash Balance 20,567,220 20,604,794 20,853,305 21,458,809 22,269,820 23,263,644 24,141,257 25,585,081 27,514,061 29,006,908 31,364,795 34,003,931

Cash Inflows
Income from Sales 1,687,500 2,109,375 2,967,188 3,234,375 3,600,000 3,909,375 4,500,000 5,470,313 5,625,000 6,328,125 6,890,625 7,031,250 53,353,125
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 1,687,500 2,109,375 2,967,188 3,234,375 3,600,000 3,909,375 4,500,000 5,470,313 5,625,000 6,328,125 6,890,625 7,031,250 53,353,125

Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - - - - - - -
Inventory Addition to Bal.Sheet - - - - - - - - - - - - -
Cost of Sales 843,750 1,054,688 1,483,594 1,617,188 1,800,000 1,954,688 2,250,000 2,735,156 2,812,500 3,164,063 3,445,313 3,515,625 26,676,563
Operating Activities
Salaries and Wages 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 211,594 2,539,133
Fixed Business Expenses 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 6,810,978
Taxes - - 71,915 - - 270,899 - - 513,477 - - 746,212 1,602,502
Financing Activities -
Loan Payments 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 324,000
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 1,649,926 1,860,863 2,361,684 2,423,363 2,606,176 3,031,762 3,056,176 3,541,332 4,132,153 3,970,238 4,251,488 5,068,012 37,953,176

Cash Flow 37,574 248,512 605,503 811,012 993,824 877,613 1,443,824 1,928,980 1,492,847 2,357,887 2,639,137 1,963,238 15,399,949

Operating Cash Balance 20,604,794 20,853,305 21,458,809 22,269,820 23,263,644 24,141,257 25,585,081 27,514,061 29,006,908 31,364,795 34,003,931 35,967,169

Line of Credit Drawdowns - - - - - - - - - - - - -

Ending Cash Balance 20,604,794 20,853,305 21,458,809 22,269,820 23,263,644 24,141,257 25,585,081 27,514,061 29,006,908 31,364,795 34,003,931 35,967,169
Table: Fixed Operating Expenses

Fixed Operating Expenses

Fixed Operating Expenses Monthly Year One Year Two Year Three

Percent Change 3.00% 3.00%

Expenses
Advertising ₦ 100,000.00 1,200,000 1,236,000 1,273,080
Car and Truck Expenses 50,000 600,000 618,000 636,540
Bank & Merchant Fees 10,000 120,000 123,600 127,308
Contract Labor - - - -
Conferences & Seminars 15,000 180,000 185,400 190,962
Customer Discounts and Refunds - - - -
Dues and Subscriptions 5,000 60,000 61,800 63,654
Miscellaneous 50,000 600,000 618,000 636,540
Insurance (Liability and Property) 20,833 250,000 257,500 265,225
Licenses/Fees/Permits 29,167 350,000 360,500 371,315
Legal and Professional Fees 10,000 120,000 123,600 127,308
Office Expenses & Supplies 50,000 600,000 618,000 636,540
Postage and Delivery - - - -
Rent (on business property) - - - -
Rent of Vehicles and Equipment 20,000 240,000 247,200 254,616
Sales & Marketing 50,000 600,000 618,000 636,540
Taxes-Other 20,000 240,000 247,200 254,616
Telephone and Communications 30,000 360,000 370,800 381,924
Travel 50,000 600,000 618,000 636,540
Utilities 25,000 300,000 309,000 318,270
Total Expenses 535,000 6,420,000 6,612,600 6,810,978

Other Expenses
Depreciation 108,452 1,301,429 1,301,429 1,301,429
Interest
Commercial Loan - - - -
Commercial Mortgage - - - -
Line of Credit - - - -
Credit Card Debt - - - -
Vehicle Loans - - - -
Other Bank Debt - - - -
Total Other Expenses 108,452 1,301,429 1,301,429 1,301,429

Total Fixed Operating Expenses 643,452 7,721,429 7,914,029 8,112,407

8.6 Long-term Plan
Agro business is expected to grow at a steady pace. In conversations with other