A Detailed Business Plan About Prianka- Agro Organic Farming Venture

Executive Summary

Food contamination is vital because it keeps diseases from spreading and secures food safety. Chickens and other poultry are good crop protectors because they naturally keep against pests and their excrement makes organic fertilizer. Changing to chemical-free organic farming improves produce’s nutrients while having a smaller negative impact on the environment. By giving existing disabled people employment possibilities, this strategy also benefits neglected communities and contributes to society. In general, organic farming encourages environmentally friendly and human health-promoting sustainable practices.

Company description

Prianka Agro Firm is a development-oriented company that focuses on the production of vegetables, Fruits, chicken, and fish which is 100% organic. For this project, the land requirement is 66 Sotangsha, equivalent to 44 Katha or 2 Bigha, and the capital needed is Tk. 1,25,00,000. The key competitive strategy is market niche involvement with premium products, which means that it focuses on creating a difference by presenting high-quality organic products. Incorporating the business, I propose to operate it as a partnership business with five partners. Equity: This will be in the ratio of 80:20 where the partners will be contributing 16% each and the remaining 20% will be obtained from a loan from Eastern Bank Ltd.

1. Uniqueness of the Business:

To actualize our organic farm, we will

• Use hens around crops and pest traps as insect killer
• Use waste from hens and cows as fertilizer in the crops.
• Use wheat, rice, and mustered bran as fish feed in the fisheries.
• Use crop weeds as food for cows.

Therefore, we can avoid chemical fertilizers, insecticides, and artificial feeds.

2. Vision:

To establish organic farming to contribute to a sustainable healthy nation & remove poverty by creating employment.

3. Mission:

• Producing organic food at minimum cost and providing consistent supply in the consumer market.
• Improve food quality based on nutrition.
• Ensure the presence of multivitamins, minerals, protein, iron, and fiber.
• Creating awareness about organic food among the mass population.

4. Product & Services:

Fish, Egg, Chicken, Banana, jackfruit, Mango, Papaya and so on. Seasonal vegetables like Potato, Cauliflower, Carrot, Bean, Pumpkin, Tomato, Brinjal, Cucumber, Multi greens and others. We will have an MOU (Memorandum of Understanding) with local chain shops like (Agora, Meena Bazar, Shawpno) to whom we will sell our products in bulk quantity. They will buy our organic products because our price will be the same as the market price of normal products.

Business Analysis

1. Business Form and Partners:

Our business will be formed and conducted by the Bangladesh Partnership Act-1932 (General Partnership). The number of partners is 5. All partners contribute 80% (16% for each partner) 20% will be loaned from Eastern Bank Ltd. in the capital. Five (5) Partners are: 

• Prianka Das
• Puja Das
• Bankim Rakshit
• Punnata Rakshit
• Amit Dey

2. Financial Budget:

Total Capital Budget Tk. 1,25,00,000. The full amount will be collected from 5 partners.

• Prianka Das Tk. 20,00,000
• Puja Das Tk. 20,00,000
• Bankim Rakshit Tk. 20,00,000
• Punnata Rakshit Tk. 20,00,000
• Amit Dey Tk. 20,00,000
• Bank Loan Tk. 25,00,000

Total: Tk. 1,25,00,000

3. Location: Hinganagar, Deldure, Tangail.

Market Analysis

1. External Environment Analysis:

Our external environment analysis has been designed on the General environment, Industry environment, and Competitors’ environment. These three external environmental factors have a great influence on our business performance.

General Environment: The general environment is the external environment of any industry over which the industry has control, but the general environmental factors have a great impact on any business.

1. Economic Segment: The inflation rate in Bangladesh is 6 percent. 84%, Unemployment rate 4. 5%. This installment is an aspect of the overall Personal Savings in Bangladesh where it has been observed to rise to a value of 1771. In the year 2012, the total imports worth was 53 BDT Billion whereas, in the year 1973, the total imports worth was 1536. In the year 2011, its total turnover was 82 BDT Billion, which is the highest record in its business operation. The gross domestic product growth rate is six., the poverty rate is 12%, and the per capita income is 1190s.
2. Socio-cultural Segment: Bangladesh is transitioning to a secular society where men and women increasingly work, study, and participate together, with women excelling in several sectors. Health awareness is growing, leading to a rise in gym-goers and a gradual shift in food habits focused on nutrition
3. Global Segment: Bangladesh maintains its global communication with other countries through FDI, exporting, and importing businesses. Bangladesh’s government encourages FDI, so many countries trading here and increasing competition in every industry.
4. Technological Segment: Bangladesh is a developing country having less contribution in technological innovation, but the usage of technology is so high in Bangladesh. Nowadays television is available in most houses. Mobile phone subscribers are 11.5cr and internet subscribers are 441cr. Facebook users are also 30,352,680 in Bangladesh.
5. Demographic Segment: Demographically we will achieve a significant advantage in the case of the number of customers. Bangladesh is a small country, but its population is very high.

Industry Environment Analysis: To analysis our fast-food industry we on Michael Porter’s 5 forces model.

Competitor Environment Analysis: No business has the existence of competition. This competition may be more or less. If we think from 100% organic point of view, we may face very little competition. On the other hand, if we don’t consider Organic products, then the number of competitors is comparatively high. But we can adjust to this competition because we will supply our organic products at the same price as non-organic products.

SWOT Analysis

Opportunities:

• Single Taxation Facilities. (As our business is a partnership business, only the owners will pay tax on their income and no corporate tax on our business)
• As we are providing organic food at the same price it will be chain shops as they have conscious customers who will be interested in buying organic products, they will make it their promotion factor and will like the publicity for organic food.
• Growing demand for organic foods for health-conscious people.
• Opportunity for promotional activity online (Almost every person uses a mobile phone among them the young generation also uses the internet for educational and professional purposes, and they are also active on Facebook. So, we can advertise on Facebook).
• High number of customers the population in Dhaka is 15.39 million.
• Living standards are improving and people are getting more health conscious so we can easily convince them to get close to them.

Threats:

• Most of the customers are unaware of nutrition, organic farming, and foods.
• Attaining proper attention from the customer as it is a very new concept
• Obtaining the faith of the customer about the authenticity of the organic product.

Strengths:

• Ability to attract health-conscious customers and super shops who want to make their business sustainable by providing healthy organic foods to their customers.
• Low cost in production due to avoiding the use of chemical fertilizers and insecticides
• Our products will be 100% organic. So, we can publicize our products as green rather than greenwashing.

Weaknesses:

• No brand image as we are starting initially.
• Unable to contribute heavily to the market share alone by a single firm. But as our target is social empowerment our success will be greater if other farmers and unemployed persons start organic farming to make Bangladesh a healthy nation.

Marketing Plan

1. Marketing Activity:

Our primary focus is establishing strong B2B relationships with major chain shops like Shwapno, Agora, and Meena Bazar, targeting 3to 6 key partners with extensive branches across Dhaka. Mass advertising is unnecessary; instead, we will use direct communication to build these relationships. To convince them to purchase our organic products, we will highlight the growing consumer demand for organic options, our competitive pricing, and our commitment to quality and reliable supply. In the case of marketing our Organic products, we have 2 strong weapons,

• Quality assurance (100% Organic)
• Low Price: We will provide a guarantee for our product quality at the same market price as compared with non-organic products. We are sure that if anybody gets organic products at the same price of non-organic products, he/she will buy our product. To establish a brand image as an organic farmer among consumers, we will do some sort of promotional activities.

 Promotional Activities:

• We will open a social networking page in Facebook, YouTube, Twitter, etc., and share our process of growing organic vegetables and fruits by which we will be able to capture the attention of people in social networking sites. We will also record the harvesting procedure of vegetables and will show the benefits of naturally grown foods by video footage. We can share the videos on Facebook, YouTube, Twitter, etc.
• We will also take the help of our customers to spread the business by giving leaflets
• Hash (#) tag process to influence customers to share the benefits of organic foods.
• We will insert a small promotional sticker to each product like egg, banana, and other sticker insertable vegetables, where we will entitle our farm address, contact address (Mobile Number, E-mail Address) for further information.
• Partnering with market leaders like Shwapno, Agora, and Meena Bazaar will provide a competitive advantage and significant breakthrough for Prianka Agro. These chains will promote our organic products through their customer brochures, boosting our brand visibility. Establishing this connection at the start of our business is crucial for our success.

Steps of Delivering Products to Chain Shops:

1. Our first Step is direct communication by our marketing division with Chain shops operating in Dhaka city and showing them our whole process of farming to assure quality.
2. Taking initial orders from them.
3. Delivering order with due time.
4. For further orders we will continue communication with them through mobile phone and e-mail.

Management Team

1. Management Structure Plan:

Operation Plan:

1. Strategy Formulation (Business Level Strategy):

• Reason for Choosing Narrow Scope Differentiation:

Our business strategy focuses on Narrow Differentiation rather than cost leadership due to our lack of experience and the established dominance of cost leaders in the market. We prioritize high-quality, organic food as an alternative to medicine, ensuring no compromise on quality. Our unique value proposition lies in producing food products from organically farmed vegetables, dairy, and fish, emphasizing nutrition and health benefits. This approach aligns with our vision to provide superior organic food to our customers.

• Differentiation in using raw materials:

Our fish, chicken, and cow feed will be 100% organic, chickens will eat vegetable pests, cows will eat weeds, and cow manure will be used as fish feed, supplemented with wheat and rice bran. Chicken waste around crop fields will serve as fertilizer. This integrated system ensures sustainable and organic practices across all farming activities.

• Differentiation in stuffing:

Our vision is to remove poverty by creating employment for the underprivileged so we will hire local underprivileged people. We will employ beggars who couldn’t find any job and will train them in our farming process. We can also create employment for the handicapped like the deaf and dumb who cannot find any job.

• Differentiation in Production:

The “Prianka Agro” project will utilize 2 Bigha (66 Sotansho) of land for organic farming and fishery. Out of this, 10 Sotansho will be dedicated to a fishery, cultivating 5000 koi annually. Allowing for a 2000 fish loss, this will yield approximately 3624 kg of fish each year. One full-time employee will manage the fishery. The remaining land will be divided into eight plots of 10 Sotansho each for growing seasonal vegetables and fast-growing fruits. The plan is to harvest 3-4 times a year, avoiding insecticides by using hens around the gardens to control pests and their waste as fertilizer. With 38,400 square feet of land, and an average yield of 1 kg per 3.5 square feet, each harvest should produce around 10,000 kg, totaling 40,000 kg annually.

For poultry, eight hen houses will be constructed, each housing 20 hens, for a total of 160 hens, including 16 cocks. After six months, approximately 120 hens will begin laying eggs, producing 21,600 eggs annually. 95% of these will be sold, while the remainder will be used for reproduction. Banana trees will be planted around the farm as a natural boundary, with an initial 500 saplings expected to produce bananas within a year, adding additional revenue and reducing boundary costs. Eight full-time employees will be hired to manage the plots and hens, working 3-4 times daily. A large storage house for agricultural equipment and materials will also be built. All produce, including vegetables, fruits, and poultry, will be sold to large chain stores like Shawpno, Agora, and Meena Bazar. These stores cater to customers seeking organic products and will buy at the same price as non-organic items, based on a memorandum of understanding. A survey indicated 100% of consumer willingness to buy organic products if priced within their regular budget, ensuring a market for Prianka Agro’s produce. This partnership will also help reduce costs and provide insights for future production expansion.

2. Action Plan Overview:

• Capital Allocation.
• Finding unused land.
• Set up the farm.
• Buying live stocks of vegetables, seeds, and other initial requirements
• Recruiting employees.
• Training the employees
• Implementing business plan
• Promoting the farm through social media
• Getting authorization from Govt
• Contacting with our clients
• Harvesting crops and collecting products from live stocks.
• Finally delivering our products to them

Financial Projection

Financial Plan:

For any kind of business, it is used as an indicator to decide whether we will invest or not. This plan provides the entire expenditure outline, and possible outflows will be generated from the business.

Projected Salary Sheet for Two Years.

We will need to employ a total of 14 employees for this whole project

Employee segmentation:

Guard………………………………………. = 2 Employees (Full Time)

For Fishery…………………………………. = 2 Employees (Part-time)

For 8 (vegetable+ Fruit) segments…………. = 8 Employees (Part-time)

Auditor………………………………………  = 1 Employee (Part-time)

Accountant………………………………….  = 1 Employee (Part-time)

Total                                                                 = 14 Employees

Salary will increase 10% each year, according to this way salary expense will be in the third year

= 1018160 x (1.10) =1119976

So, the total salary expense for three years will be =925600+1018160+1119976=3063736

Salaries will be increased by 10% each year if the business runs profitably. (Authority has the right to change any decision)

Yearly Salary Per employee= Monthly salary per employee x 12+ Festival Bonus

Total Salary for 14 employees= Yearly salary per employee x No. of employee

Projected Initial Investment Amounts:

Advance (Security) for the land budget is Tk. 100000 (For 8 years Contract)

When we get back this amount (at a 7% discount rate) the Present value will be (100000)/ (1+0.07)⁸ =Tk. 58200

So, here cost for advance (for 8 years) is =1000000-58,200 =Tk. 41800

Cost for advance as security for each year (41800/8) =Tk. 5225

Projected Starting Balance Sheet 1^st year:

Other Overhead Budgets:

Initial land makeup cost                                       30000

Fishery Digging costs                                           70000

Boundary with Banana tree, gate                          15000

Electricity connection and bills for 1 year            24000

Overhead expense budget for 1 year                     50000

Promotion                                                              50000

Total                                                                      239000

Projected revenue statement for 3 years

Break-even Point Analysis

Here, Time Period used 3 years = (3 x 365) = 1095 days,

Total sales revenue for 3 years is (1538520+2298870+278964) = 6627030

So, Sales per day = Tk. 6,052

We found, Projected payback period = 2.72 years or (365 x 2.72) = 993 days

Projected discounted payback period = 2.98 years or (365 x 2.98) = 1088 days.

Projected Break-even sales (Per day sales x PBP days) = (6,052x 993) = Tk. 6,009,717

Projected Discounted Break-even sales = (Per day sales x Discounted PBP days)

= (6,052 x 1088) Tk. 6,584,576

Plan for Further Expansion:

In the 3rd year, our sales revenue is projected at Tk. 2,789,640, with a net income of Tk. 1,139,347, yielding a 40.82% rate of return. This rate is expected to increase due to economies of scale, and we aim to boost revenue by 10% annually through enhanced production.

Projected sales revenue:

– 4th year: (2,789,640 x 1.10) = Tk. 3,068,604

– 5th year: (3,068,604 x 1.10) = Tk. 3,375,464

Assuming the rate of return remains at 40.82% for the 4th and 5th years, the net income will be:

– 4th year: (3,068,604 x 0.4082) = Tk. 1,252,604

– 5th year: (3,375,464 x 0.4082) = Tk. 1,377,864

Total net income over these two years will be Tk. 2,630,468.

Given our initial startup capital of Tk. 1,608,300, we can open new firms every two years using the net income generated after achieving the break-even point.

Conclusion

This business plan serves as a comprehensive guideline for operations aimed at generating superior value through organic food farming, a novel concept in our target market. Our goals include contributing to national nutrition requirements and creating employment for the underprivileged. The plan anticipates a high long-term profit, with a projected return on investment. Extensive profitability tests indicate strong potential, benefiting both the business and its valued customers. We seek support from all stakeholders to establish this venture as a successful, sustainable enterprise promoting healthy, green food for future generations.