Business Plan for A & N Organic Fertiliser Manufacturing Co.

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Business Plan for A & N Organic Fertiliser Manufacturing Co.

1. Business Plan Summary

A & N Organic Fertiliser Manufacturing Co. Founded by Ahmed Ali and Alnourani, Will be form as a manufacturing company to produce organic fertilizer, using the waste of animals like , chicken, caws, camels, Slaughterhouses, Fishmarket waste, vegetable market waste, Works to convert these residues after mixing well and make the appropriate fermentation process to let bacteria work to raise nitrogen levels in addition to other elements that feed the arable land and raise its production of different type of corps like fruits, vegetables, wheat dates.

Ahmed and Alnourani are share to provide an initial investment towards start-up cost, 60% use as business start-up expenses while the remains keep in the company account as working capital.

The firm will specialize in manufacturing of organic fertilizer in a manner of granule, powder, and liquid with different packaging size.

2. The Business

Business Name: A&N organic Fertilizer Manufacturing Company
Business structure: Partnership Company
Business location: KSA-Jeddah
Date established:10-10-2019
Business owner(s): Ahmed Humaid, AlnouraniAlzebair

Relevant owner experience:

The wonders Mr. Ahmad Ali23 years of experience in the production field, and an award of PMP and many software program quality management as he a production manager, with intensive experiences in Saudi Arabia market especially the western Region of Saudi Arabia.

Mr. Alnourani Elrasheed is a senior Mechanical Engineer, with 14 years of industrial and construction field, and awarded of many software program designers as he works as a design engineer on the structural system in many factories. also work on many construction field and was awarded of many codes and standards, and he has experience on Private companies as he was a partner of TROY building and construction company based on Sudan-Khartoum, so he become more value in the position of GM.

3. Product/ Services

The company will based on the manufacturing of organic fertilizer with different packaging sizes state of solid and liquid, that will fit the different customer requirements. Where the market demand is estimated to rich 500,000 metric ton.

4. The Market

We sell our products organic fertilizer to organic farms, inorganic farms, gardeners, organic fertilizer retailers shop, it`s used for arable land fertility

4.1Target Market :

The target we design our business for is 624 ton per month for the first 6 month and then increase to 1000 ton in the 2nd half of the year.

A& N company product is demanded because of that the soil organic matter plays an important role in long-term soil conservation and/or restoration by sustaining its fertility, and hence in sustainable agricultural production, due to the improvement of physical, chemical and biological properties of soils (Sequi, 1989).

4.2 Marketing Strategy

We will need to create a unique and attractive profile for our company on popular social networking websites.

We can post different creative flyers on different places such as community bulletin boards in stores.

We will Follow-up the workshops and events related to agricultural activities, which are held under the auspices of the Saudi Ministry of Agriculture to try through these activities marketing our products and highlight their advantages.and will be aligned with below technique :

4.2.1 Marketing and Advertising

Advertising is a rapidly expanding business in the Kingdom and is crucial in gaining retail sales and market share.

4.2.2 Product Pricing

Financing has become a leading consideration in purchasing, especially for investment goods and repeat orders. As leveraged transactions are becoming the norm, Saudis have come to understand that an attractive financial package can be more desirable than a low up-front price.

4.2.3 Customer Support/Service

Saudi Arabia has an open and competitive market. As a result, above-average sales service and customer support are important factors in winning and maintaining new clients

5. The Future

5.1 Vision Statement :

We provide our services to customers in a template that carries the side of advice and develop solutions that contribute to the solutions of the environment while achieving profits through waste recycling and treatment of soil problems through the manufacturing of high-quality and low-cost organic fertilizer.

5.2 Goals /Objectives

Our short terms: for 6 month to one year

Initially, our goal for the first 6 months may be to achieve a product-awareness level of 10 percent of all consumers or businesses in the area, through advertising and measure the results through marketing research surveys.

Establishing a customer base is another short-term business goal. Initially, we should try to get as many people to order our products or services as possible. Distribute fliers or coupons, and offer special deals on various products.

One of our immediate short-term business goals should be getting into profit as soon as possible.

Another important short-term goal should be to establish rapport with suppliers and agencies. We may have to work with various agencies, such as marketing research and advertising agencies.

Our long terms: for 2 years to 5 years

Our long-term view that includes a more moderated approach to generating profit, we can motivate employees and build a stable and enduring culture that lasts.

We will take corporate social responsibility by balancing a business approach where we seek to earn profit while also meeting social, ethical and environmental responsibilities.

Maximizing revenue and maximizing profit are typically our competing goals. Revenue maximization means we emphasize attracting as many customers as possible and generating as many sales as possible.

6. The Finances :

The total agricultural land in Saudi Arabia is estimated 80.78% of arable land 3502000 Hectare this calculate to be 2,828,915.5 Hectare whereas one hectare need 242.24 kg, the total demand of the Saudi Arabia market to the organic fertilizer calculate to 685,276metric ton. (Tradingeconomics.com) the excepted maximum range of the market whereas;
The area In Saudi Arabia is 251,000 farms with total area about 835,000 ha.
Fertilizer consumption (kilograms per hectare of arable land) in Saudi Arabia was 242.24 as of 2014. The estimated demand is 202,270 metric ton. This is the market demand.
According to our short terms we will keep small margin of 10%
The upfront money required is
The upfront capital will funded partnership between Ahmed Ali &Alnourani Elrasheed and share with 58% &42% Accordingly.

7. The Business :

7.1 Products/ Services :

The A & N Company produce organic fertilizer are made of fresh chicken and animals manure, vegetable market waste, and animals slaughter waste without any chemical composition. Organic Fertilizer 4-3-3Natural Fertilizer provides nitrogen, phosphorus and potassium (N-P-K) is a well-known 100% Organic Fertilizer pellet, ecologic and hygienic. It can be packed under different brand names. Our product in this excellent, natural plant Fertilizer contains mostly humic acid structures, humic acids benefit soils in facilitating its nutrient availability, they release gradually the minerals present in the ground and therefore, minerals become more available for absorption by the roots of plants.(Fermofeed.com,2018)

7.2 Registration details

Business Name: Not registered yet but the proposed business name is A&N Organic Fertilizer Manufacturing Co.
Trading name(s): A&N Organic
Date registered: Not yet registered
Location(s) registered: KSA-Jeddah
Business structure: Partnership company
ABN:[NO.]
ACN: [NO.]
GST: [No]
Domain names: Not yet registered
Licenses & permits: [In process]

7. Business Premises

Business location :

Our company is located on Jeddah 3rd Industrial area north of Jeddah, it`s 62 Km from Jeddah Red Sea port, 35 Km from Slaughterhouse Al KHommra, 10 Km from waste collection and recycling company.
Buy/Lease: currently, we plan to rent one Hanger with area of 5000m2, is available in this area by yearly rent rate of USD 15000. This satisfy our requirements to install our production line in area of 300m2 and the administration office beside the store for both compost and finished goods.

Our retail-like direct orders from farmers, gardeners and fertilizer retail shops

8. Management & ownership

Names of Owners: Mr.Ahmed Ali Hemaid and Mr.Alnourani Elrasheed

8.1 Details of management & ownership:

As seen from organization chart Ahmed Humaid is owner of the company, running the business.
Responsible for general management roles, strategic and tactical responsibility for implementing manufacturing strategy and strategic operational goals to exceed customer expectations for product quality, cost and delivery, maximising efficiency, optimizing production levels and driving operational excellence.
The company will establish as a partnership by 52% for Ahmed Ali and 48% for Alnourani Elrasheed.

8.2 Experience:

Production-focused manufacturing professional with 23 years of experience in the production field and a proven record in leading teams, improving daily operations, monitoring quality and productivity.
Driven by the agricultural background as an activity and profession of my father Ali hemaid where he owns large areas of farms in Sudan and always looking to use modern techniques for irrigation and fertility.
Where my background experiences are in different fields, I work in Saudi Basic Technology for fabricated products as a production manager, Saudi Sudanese Metal Industries Co. Ltd, Leader Technology for Engineering Products as production manager, Civil Project ~ Irrigation and Excavation as a maintenance & traffic manager, and some other companies like Kenana Sugar Factory and Nujaidi Rajihi factory. And now work in Omega Company for Luminaries, Poles, And Galvanizing.

Mr. Alnourani Elrasheed is a senior Mechanical Engineer, with 14 years of industrial and construction field, and awarded of many software program designer as he work as a design engineer on the structural system in many factories. also, work on many construction field and was awarded of many codes and standard, and he have experience on a Private company as he was a partner of TROY building and construction company based on Sudan-Khartoum, so he become more value on the position of GM.

8.3 Key Personnel

Current staff:

The CEO responsible for management leading and directing is Ahmed Hemaid, the production and inventory management will manage by Alnourani Elrasheed.

Sales representation, QC, finance manager, production manager, and the feeding and packing worker to be hired.

Required staff:

Financial manager:

He will analyze and provide solutions to cater to client requirements and develop networks accordingly.
Administer finances and ensure the protection of all the company assets and identify current growth opportunities.
Perform analysis on all financial activities and make recommendations for the financial security of the company
Develop customer relationships and prepare effective strategies to interpret all recommendations
Monitor all company’s interests and enhance client service base to ensure satisfaction
Provide masterly services and maintain product portfolios for finances and analyze same